>> Presenter: theCUBE presents Ignite '22, brought to you by Palo Alto Networks. >> Hey guys and girls. Welcome back to theCube's live coverage at Palo Alto Ignite '22. We're live at the MGM Grand Hotel in beautiful Las Vegas. Lisa Martin here with Dave Vellante. This is day one of our coverage. We've been talking with execs from Palo Alto, Partners, but one of our most exciting things is talking with Founders day. We get to do that next. >> The thing is, it's like I wrote this weekend in my breaking analysis. Understanding the problem in cybersecurity is really easy, but figuring out how to fix it ain't so much. >> It definitely isn't. >> So I'm excited to have Nir here. >> Very excited. Nir Zuk joins us, the founder and CTO of Palo Alto Networks. Welcome, Nir. Great to have you on the program. >> Thank you. >> So Palo Alto Networks, you founded it back in 2005. It's hard to believe that's been 18 years, almost. You did something different, which I want to get into. But tell us, what was it back then? Why did you found this company? >> I thought the world needed another cybersecurity company. I thought it's because there were so many cybersecurity vendors in the world, and just didn't make any sense. This industry has evolved in a very weird way, where every time there was a new challenge, rather than existing vendors dealing with a challenge, you had new vendors dealing with it, and I thought I could put a stop to it, and I think I did. >> You did something differently back in 2005, looking at where you are now, the leader, what was different in your mind back then? >> Yeah. When you found a new company, you have really two good options. There's also a bad option, but we'll skip that. You can either disrupt an existing market, or you can create a new market. So first, I decided to disrupt an existing market, go into an existing market first, network security, then cyber security, and change it. Change the way it works. And like I said, the challenges that every problem had a new vendor, and nobody just stepped back and said, "I think I can solve it with the platform." Meaning, I think I can spend some time not solving a specific problem, but building a platform that then can be used to solve many different problems. And that's what I've done, and that's what Palo Alto Networks has done, and that's where we are today. >> So you look back, you call it now, I think you call it a next gen firewall, but nothing in 2005, can it be next gen? Do you know the Silicon Valley Show? Do you know the show Silicon Valley? >> Oh! Yeah. >> Yeah, of course. >> You got to have a box. But it was a different kind of box- >> Actually. >> Explain that. >> Actually, it's exactly the same thing. You got to have a box. So I actually wanted to call it a necessary evil. Marketing wouldn't go for that. >> No. >> And the reason I wanted to call it a necessary evil, because one of the things that we've done in order to platform our cyber security, again, first network security now, also cloud security, and security operations, is to turn it into a SaaS delivered industry. Today every cyber security professional knows that, when they buy cyber security, they buy usually a SaaS delivered service. Back then, people thought I was crazy to think that customers are going to send their data to their vendor in order to process, and they wanted everything on premise and so on, but I said, "No, customers are going to send information to us for processing, because we have much more processing power than they have." And we needed something in the infrastructure to send us the information. So that's why I wanted to call it the necessary evil. We ended up calling it next generation firewall, which was probably a better term. >> Well, even Veritas. Remember Veritas? They had the no hardware agenda. Even they have a box. So it is like you say, you got to have it. >> It's necessary. >> Okay. You did this, you started this on your own cloud, kind of like Salesforce, ServiceNow. >> Correct. >> Similar now- >> Build your own data centers. >> Build your own data center. Okay, I call it a cloud, but no. >> No, it's the same. There's no cloud, it's just someone else's computer. >> According to Larry Ellison, he was actually probably right about that. But over time, you've had this closer partnership with the public clouds. >> Correct. >> What does that bring you and your customers, and how hard was that to navigate? >> It wasn't that hard for us, because we didn't have that many services. Usually it's harder. Of course, we didn't do a lift and shift, which is their own thing to do with the cloud. We rebuild things for the cloud, and the benefits, of course, are time to market, scale, agility, and in some cases also, cost. >> Yeah, some cases. >> In some cases. >> So you have a sort of a hybrid model today. You still run your own data centers, do you not? >> Very few. >> Really? >> There are very, very few things that we have to do on hardware, like simulating malware and things that cannot be done in a virtual machine, which is pretty much the only option you have in the cloud. They provide bare metal, but doesn't serve our needs. I think that we don't view cloud, and your viewers should not be viewing cloud, as a place where they're going to save money. It's a place where they're going to make money. >> I like that. >> You make much more money, because you're more agile. >> And that's why this conversation is all about, your cost of goods sold they're going to be so high, you're going to have to come back to your own data centers. That's not on your mind right now. What's on your mind is advancing the unit, right? >> Look, my own data center would limit me in scale, would limit my agility. If you want to build something new, you don't have all the PaaS services, the platform as a service, services like database, and AI, and so on. I have to build them myself. It takes time. So yeah, it's going to be cheaper, but I'm not going to be delivering the same thing. So my revenues will be much lower. >> Less top line. What can humans do better than machines? You were talking about your keynote... I'm just going to chat a little bit. You were talking about your keynote. Basically, if you guys didn't see the keynote, that AI is going to run every soc within five years, that was a great prediction that you made. >> Correct. >> And they're going to do things that you can't do today, and then in the future, they're going to do things that you can't... Better than you can do. >> And you just have to be comfortable with that. >> So what do you think humans can do today and in the future better than machines? >> Look, humans can always do better than machines. The human mind can do things that machines cannot do. We are conscious, I don't think machines will be conscious. And you can do things... My point was not that machines can do things that humans cannot do. They can just do it better. The things that humans do today, machines can do better, once machines do that, humans will be free to do things that they don't do today, that machines cannot do. >> Like what? >> Like finding the most difficult, most covert attacks, dealing with the most difficult incidents, things that machines just can't do. Just that today, humans are consumed by finding attacks that machines can find, by dealing with incidents that machines can deal with. It's a waste of time. We leave it to the machines and go and focus on the most difficult problems, and then have the machines learn from you, so that next time or a hundred or a thousand times from now, they can do it themselves, and you focus on the even more difficult. >> Yeah, just like after 9/11, they said that we lack the creativity. That's what humans have, that machines don't, at least today. >> Machines don't. Yeah, look, every airplane has two pilots, even though airplanes have been flying themselves for 30 years now, why do you have two pilots, to do the things that machines cannot do? Like land on the Hudson, right? You always need humans to do the things that machines cannot do. But to leave the things that machines can do to the machines, they'll do it better. >> And autonomous vehicles need breaks. (indistinct) >> In your customer conversations, are customers really grappling with that, are they going, "Yeah, you're right?" >> It depends. It's hard for customers to let go of old habits. First, the habit of buying a hundred different solutions from a hundred different vendors, and you know what? Why would I trust one vendor to do everything, put all my eggs in the same basket? They have all kind of slogans as to why not to do that, even though it's been proven again and again that, doing everything in one system with one brain, versus a hundred systems with a hundred brains, work much better. So that's one thing. The second thing is, we always have the same issue that we've had, I think, since the industrial revolution, of what machines are going to take away my job. No, they're just going to make your job better. So I think that some of our customers are also grappling with that, like, "What do I do if the machines take over?" And of course, like we've said, the machines aren't taking over. They're going to do the benign work, you're going to do the interesting work. You should embrace it. >> When I think about your history as a technology pro, from Check Point, a couple of startups, one of the things that always frustrated you, is when when a larger company bought you out, you ended up getting sucked into the bureaucratic vortex. How do you avoid that at Palo Alto Networks? >> So first, you mean when we acquire company? >> Yes. >> The first thing is that, when we acquire companies, we always acquire for integration. Meaning, we don't just buy something and then leave it on the side, and try to sell it here and there. We integrate it into the core of our products. So that's very important, so that the technology lives, thrives and continues to grow as part of our bigger platform. And I think that the second thing that is very important, from past experience what we've learned, is to put the people that we acquire in key positions. Meaning, you don't buy a company and then put the leader of that company five levels below the CEO. You always put them in very senior positions. Almost always, we have the leaders of the companies that we acquire, be two levels below the CEO, so very senior in the company, so they can influence and make changes. >> So two questions related to that. One is, as you grow your team, can you be both integrated? And second part of the question, can you be both integrated and best of breed? Second part of the question is, do you even have to be? >> So I'll answer it in the third way, which is, I don't think you can be best of breed without being integrated in cybersecurity. And the reason is, again, this split brain that I've mentioned twice. When you have different products do a part of cybersecurity and they don't talk to each other, and they don't share a single brain, you always compromise. You start looking for things the wrong way. I can be a little bit technical here, but please. Take the example of, traditionally you would buy an IDS/IPS, separately from your filtering, separately from DNS security. One of the most important things we do in network security is to find combining control connections. Combining control connections where the adversaries controlling something behind your firewall and is now going around your network, is usually the key heel of the attack. That's why attacks like ransomware, that don't have a commanding control connection, are so difficult to deal with, by the way. So commanding control connections are a key seal of the attacks, and there are three different technologies that deal with it. Neural filtering for neural based commanding control, DNS security for DNS based commanding control, and IDS/IPS for general commanding control. If those are three different products, they'll be doing the wrong things. The oral filter will try to find things that it's not really good at, that the IPS really need to find, and the DN... It doesn't work. It works much better when it's one product doing everything. So I think the choice is not between best of breed and integrated. I think the only choice is integrated, because that's the only way to be best of breed. >> And behind that technology is some kind of realtime data store, I'll call it data lake, database. >> Yeah. >> Whatever. >> It's all driven by the same data. All the URLs, all the domain graph. Everything goes to one big data lake. We collect about... I think we collect about, a few petabytes per day. I don't write the exact number of data. It's all going to the same data lake, and all the intelligence is driven by that. >> So you mentioned in a cheeky comment about, why you founded the company, there weren't enough cybersecurity companies. >> Yeah. >> Clearly the term expansion strategy that Palo Alto Networks has done has been very successful. You've been, as you talked about, very focused on integration, not just from the technology perspective, but from the people perspective as well. >> Correct. >> So why are there still so many cybersecurity companies, and what are you thinking Palo Alto Networks can do to change that? >> So first, I think that there are a lot of cybersecurity companies out there, because there's a lot of money going into cybersecurity. If you look at the number of companies that have been really successful, it's a very small percentage of those cybersecurity companies. And also look, we're not going to be responsible for all the innovation in cybersecurity. We need other people to innovate. It's also... Look, always the question is, "Do you buy something or do you build it yourself?" Now we think we're the smartest people in the world. Of course, we can build everything, but it's not always true that we can build everything. Know that we're the smartest people in the world, for sure. You see, when you are a startup, you live and die by the thing that you build. Meaning if it's good, it works. If it's not good, you die. You run out of money, you shut down, and you just lost four years of your life to this, at least. >> At least. >> When you're a large company, yeah, I can go and find a hundred engineers and hire them. And especially nowadays, it becomes easier, as it became easier, and give them money, and have them go and build the same thing that the startup is building, but they're part of a bigger company, and they'll have more coffee breaks, and they'll be less incentive to go and do that, because the company will survive with or without them. So that's why startups can do things much better, sometimes than larger companies. We can do things better than startups, when it comes to being data driven because we have the data, and nobody can compete against the amount of data that we have. So we have a good combination of finding the right startups that have already built something, already proven that it works with some customers, and of course, building a lot of things internally that we cannot do outside. >> I heard you say in one of the, I dunno, dozens of videos I've listened to you talked to. The industry doesn't need or doesn't want another IoT stovepipe. Okay, I agree. So you got on-prem, AWS, Azure, Google, maybe Alibaba, IoT is going to be all over the place. So can you build, I call it the security super cloud, in other words, a consistent experience with the same policies and edicts across all my estates, irrespective of physical location? Is that technically feasible? Is it what you are trying to do? >> Certainly, what we're trying to do with Prisma Cloud, with our cloud security product, it works across all the clouds that you mentioned, and Oracle as well. It's almost entirely possible. >> Almost. >> Almost. Well, the things that... What you do is you normalize the language that the different cloud scale providers use, into one language. This cloud calls it a S3, and so, AWS calls it S3, and (indistinct) calls it GCS, and so on. So you normalize their terminology, and then build policy using a common terminology that your customers have to get used to. Of course, there are things that are different between the different cloud providers that cannot be normalized, and there, it has to be cloud specific. >> In that instance. So is that, in part, your strategy, is to actually build that? >> Of course. >> And does that necessitate running on all the major clouds? >> Of course. It's not just part of our strategy, it's a major part of our strategy. >> Compulsory. >> Look, as a standalone vendor that is not a cloud provider, we have two advantages. The first one is we're security product, security focused. So we can do much better than them when it comes to security. If you are a AWS, GCP, Azure, and so on, you're not going to put your best people on security, you're going to put them on the core business that you have. So we can do much better. Hey, that's interesting. >> Well, that's not how they talk. >> I don't care how they talk. >> Now that's interesting. >> When something is 4% of your business, you're not going to put it... You're not going to put your best people there. It's just, why would you? You put your best people on 96%. >> That's not driving their revenue. >> Look, it's simple. It's not what we- >> With all due respect. With all due respect. >> So I think we do security much better than them, and they become the good enough, and we become the premium. But certainly, the second thing that give us an advantage and the right to be a standalone security provider, is that we're multicloud, private cloud and all the major cloud providers. >> But they also have a different role. I mean, your role is not the security, the Nitro card or the Graviton chip, or is it? >> They are responsible for securing up to the operating system. We secure everything. >> They do a pretty good job of that. >> No, they do, certainly they have to. If they get bridged at that level, it's not just that one customer is going to suffer, the entire customer base. They have to spend a lot of time and money on it, and frankly, that's where they put their best security people. Securing the infrastructure, not building some cloud security feature. >> Absolutely. >> So Palo Alto Networks is, as we wrap here, on track to nearly double its revenues to nearly seven billion in FY '23, just compared to 2020, you were quoted in the press by saying, "We will be the first $100 billion cyber company." What is next for Palo Alto to achieve that? >> Yeah, so it was Nikesh, our CEO and chairman, that was quoted saying that, "We will double to a hundred billion." I don't think he gave it a timeframe, but what it takes is to double the sales, right? We're at 50 billion market cap right now, so we need to double sales. But in reality, you mentioned that we're growing the turn by doing more and more cybersecurity functions, and taking away pieces. Still, we have a relatively small, even though we're the largest cybersecurity vendor in the world, we have a very low market share that shows you how fragmented the market is. I would also like to point out something that is less known. Part of what we do with AI, is really take the part of the cybersecurity industry, which are service oriented, and that's about 50% of the cybersecurity industry services, and turn it into products. I mean, not all of it. But a good portion of what's provided today by people, and tens of billions of dollars are spent on that, can be done with products. And being one of the very, very few vendors that do that, I think we have a huge opportunity at turning those tens of billions of dollars in human services to AI. >> It's always been a good business taking human labor and translating into R and D, vendor R and D. >> Especially- >> It never fails if you do it well. >> Especially in difficult times, difficult economical times like we are probably experiencing right now around the world. We, not we, but we the world. >> Right, right. Well, congratulations. Coming up on the 18th anniversary. Tremendous amount of success. >> Thank you. >> Great vision, clear vision, STEM expansion strategy, really well underway. We are definitely going to continue to keep our eyes. >> Big company, a hundred billion, that's market capital, so that's a big company. You said you didn't want to work for a big company unless you founded it, is that... >> Unless it acts like a small company. >> There's the caveat. We'll keep our eye on that. >> Thank you very much. >> It's such a pleasure having you on. >> Thank you. >> Same here, thank you. >> All right, for our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live emerging and enterprise tech coverage. (upbeat music)

>>Hello, brilliant humans and welcome back to Las Vegas, Nevada, where we are live from the AWS Reinvent Show floor here with the cube. My name is Savannah Peterson, joined with Dave Valante, and we have a very exciting conversation with you. Two, two companies you may have heard of. We've got AWS and Red Hat in the house. Manu and Joel, thank you so much for being here. Love this little fist bump. Started off, that's right. Before we even got rolling, Manu, you said that you wanted this to be the best segment of, of the cubes airing. We we're doing over a hundred segments, so you're gonna have to bring the heat. >>We're ready. We're did go. Are we ready? Yeah, go. We're ready. Let's bring it on. >>We're ready. All right. I'm, I'm ready. Dave's ready. Let's do it. How's the show going for you guys real quick before we dig in? >>Yeah, I think after Covid, it's really nice to see that we're back into the 2019 level and, you know, people just want to get out, meet people, have that human touch with each other, and I think a lot of trust gets built as a functional that, so it's super amazing to see our partners and customers here at Reedman. Yeah, >>And you've got a few in the house. That's true. Just a few maybe, maybe a couple >>Very few shows can say that, by the way. Yeah, it's maybe a handful. >>I think one of the things we were saying, it's almost like the entire Silicon Valley descended in the expo hall area, so >>Yeah, it's >>For a few different reasons. There's a few different silicon defined. Yeah, yeah, yeah. Don't have strong on for you. So far >>It's, it's, it is amazing. It's the 10th year, right? It's decade, I think I've been to five and it's, it grows every single year. It's the, you have to be here. It's as simple as that. And customers from every single industry are here too. You don't get, a lot of shows have every single industry and almost every single location around the globe. So it's, it's a must, must be >>Here. Well, and the personas evolved, right? I was at reinvent number two. That was my first, and it was all developers, not all, but a lot of developers. And today it's a business mix, really is >>Totally, is a business mix. And I just, I've talked about it a little bit down the show, but the diversity on the show floor, it's the first time I've had to wait in line for the ladies' room at a tech conference. Almost a two decade career. It is, yeah. And it was really refreshing. I'm so impressed. So clearly there's a commitment to community, but also a commitment to diversity. Yeah. And, and it's brilliant to see on the show floor. This is a partnership that is robust and has been around for a little while. Money. Why don't you tell us a little bit about the partnership here? >>Yes. So Red Hand and AWS are best friends, you know, forever together. >>Aw, no wonder we got the fist bumps and all the good vibes coming out. I know, it's great. I love that >>We have a decade of working together. I think the relationship in the first phase was around running rail bundled with E two. Sure. We have about 70,000 customers that are running rail, which are running mission critical workloads such as sap, Oracle databases, bespoke applications across the state of verticals. Now, as more and more enterprise customers are finally, you know, endorsing and adopting public cloud, I think that business is just gonna continue to grow. So a, a lot of progress there. The second titration has been around, you know, developers tearing Red Hat and aws, Hey, listen, we wanna, it's getting competitive. We wanna deliver new features faster, quicker, we want scale and we want resilience. So just entire push towards devs containers. So that's the second chapter with, you know, red Hat OpenShift on aws, which launched as a, a joint manage service in 2021 last year. And I think the third phase, which you're super excited about, is just bringing the ease of consumption, one click deployment, and then having our customers, you know, benefit from the joint committed spend programs together. So, you know, making sure that re and Ansible and JBoss, the entire portfolio of Red Hat products are available on AWS marketplace. So that's the 1, 2, 3, it of our relationship. It's a decade of working together and, you know, best friends are super committed to making sure our customers and partners continue successful. >>Yeah, that he said it, he said it perfectly. 2008, I know you don't like that, but we started with Rel on demand just in 2008 before E two even had a console. So the partnership has been there, like Manu says, for a long time, we got the partnership, we got the products up there now, and we just gotta finalize that, go to market and get that gas on the fire. >>Yeah. So Graviton Outpost, local zones, you lead it into all the new stuff. So that portends, I mean, 2008, we're talking two years after the launch of s3. >>That's right. >>Right. So, and now look, so is this a harbinger of things to come with these new innovations? >>Yeah, I, I would say, you know, the innovation is a key tenant of our partnership, our relationship. So if you look at from a product standpoint, red Hat or Rel was one of the first platforms that made a support for graviton, which is basically 40% better price performance than any other distribution. Then that translated into making sure that Rel is available on all of our regions globally. So this year we launched Switzerland, Spain, India, and Red Hat was available on launch there, support for Nitro support for Outpost Rosa support on Outpost as well. So I think that relationship, that innovation on the product side, that's pretty visible. I think that innovation again then translates into what we are doing on marketplace with one click deployments we spoke about. I think the third aspect of the know innovation is around making sure that we are making our partners and our customers successful. So one of the things that we've done so far is Joe leads a, you know, a black belt team that really goes into each customer opportunity, making sure how can we help you be successful. We launched and you know, we should be able to share that on a link. After this, we launched like a big playlist, which talks about every single use case on how do you get successful and running OpenShift on aws. So that innovation on behalf of our customers partners to make them successful, that's been a key tenant for us together as >>Well. That's right. And that team that Manu is talking about, we're gonna, gonna 10 x that team this year going into January. Our fiscal yield starts in January. Love that. So yeah, we're gonna have a lot of no hiring freeze over here. Nope. No ma'am. No. Yeah, that's right. Yeah. And you know what I love about working with aws and, and, and Manu just said it very, all of that's customer driven. Every single event that we, that he just talked about in that timeline, it's customer driven, right? Customers wanted rail on demand, customers want JBoss up in the cloud, Ansible this week, you know, everything's up there now. So it's just getting that go to market tight and we're gonna, we're gonna get that done. >>So what's the algorithm for customer driven in terms of taking the input? Because if every customers saying, Hey, I this a >>Really similar >>Question right up, right? I, that's what I want. And if you know, 95% of the customers say it, Jay, maybe that's a good idea. >>Yeah, that's right. Trends. But >>Yeah. You know, 30% you might be like, mm, you know, 20%, you know, how do you guys decide when to put gas on the fire? >>No, that, I think, as I mentioned, there are about 70,000 large customers that are running rail on Easy Two, many of these customers are informing our product strategy. So we have, you know, close to about couple of thousand power users. We have customer advisory booths, and these are the, you know, customers are informing us, Hey, let's get all of the Red Hat portfolio and marketplace support for graviton, support for Outpost. Why don't we, why are we not able to dip into the consumption committed spend programs for both Red Hat and aws? That's right. So it's these power users both at the developer level as well as the guys who are actually doing large commercial consumption. They are the ones who are informing the roadmap for both Red Hat and aws. >>But do, do you codify the the feedback? >>Yeah, I'm like, I wanna see the database, >>The, I think it was, I don't know, it was maybe Chasy, maybe it was Besos, that that data beats intuition. So do you take that information and somehow, I mean, it's global, 70,000 customers, right? And they have different weights, different spending patterns, different levels of maturity. Yeah. Do you, how do you codify that and then ultimately make the decision? Yeah, I >>If, I mean, well you, you've got the strategic advisory boards, which are made up of customers and partners and you know, you get, you get a good, you gotta get a good slice of your customer base to get, and you gotta take their feedback and you gotta do something with it, right? That's the, that's the way we do it and codify it at the product level, I'm sure open source. That's, that's basically how we work at the product level, right? The most elegant solution in open source wins. And that's, that's pretty much how we do that at the, >>I would just add, I think it's also just the implicit trust that the two companies had built with each other, working in the trenches, making our customers and partners successful over the last decade. And Alex, give an example. So that manifests itself in context of like, you know, Amazon and Red Hat just published the entire roadmap for OpenShift. What are the new features that are becoming over the next six to nine to 12 months? It's open source available on GitHub. Customers can see, and then they can basically come back and give feedback like, Hey, you know, we want hip compliance. We just launched. That was a big request that was coming from our >>Customers. That is not any process >>Also for Graviton or Nvidia instances. So I I I think it's a, >>Here's the thing, the reason I'm pounding on this is because you guys have a pretty high hit rate, and I think as a >>Customer, mildly successful company >>As, as a customer advocate, the better, you know, if, if you guys make bets that pay off, it's gonna pay off for customers. Right. And because there's a lot of failures in it. Yeah. I mean, let's face it. That's >>Right. And I think, I think you said the key word bets. You place a lot of small bets. Do you have the, the innovation engine to do that? AWS is the perfect place to place those small bets. And then you, you know, pour gas on the fire when, when they take off. >>Yeah, it's a good point. I mean, it's not expensive to experiment. Yeah. >>Especially in the managed service world. Right? >>And I know you love taking things to market and you're a go to market guy. Let's talk gtm, what's got your snow pumped about GTM for 2023? >>We, we are gonna, you know, 10 x the teams that's gonna be focused on these products, right? So we're gonna also come out with a hybrid committed spend program for our customers that meet them where they want to go. So they're coming outta the data center going into a cloud. We're gonna have a nice financial model for them to do that. And that's gonna take a lot of the friction out. >>Yeah. I mean, you've nailed it. I, I think the, the fact that now entire Red Hat portfolio is available on marketplace, you can do it on one click deployment. It's deeply integrated with Amazon services and the most important part that Joel was making now customers can double dip. They can drive benefit from the consumption committed spend programs, both from Red Hat and from aws, which is amazing. Which is a game changer That's right. For many of our large >>Customers. That's right. And that, so we're gonna, we're gonna really go to town on that next year. That's, and all the, all the resources that I have, which are the technology sellers and the sas, you know, the engineers we're growing this team the most out that team. So it's, >>When you say 10 x, how many are you at now? I'm >>Curious to see where you're headed. Tell you, okay. There's not right? Oh no, there's not one. It's triple digit. Yeah, yeah. >>Today. Oh, sweet. Awesome. >>So, and it's a very sizable team. They're actually making sure that each of our customers are successful and then really making sure that, you know, no customer left behind policy. >>And it's a great point that customers love when Amazonians and Red Hats show up, they love it and it's, they want to get more of it, and we're gonna, we're gonna give it to 'em. >>Must feel great to be loved like that. >>Yeah, that's right. Yeah. Yeah. I would say yes. >>Seems like it's safe to say that there's another decade of partnership between your two companies. >>Hope so. That's right. That's the plan. >>Yeah. And I would say also, you know, just the IBM coming into the mix here. Yeah. I, you know, red Hat has informed the way we have turned around our partnership with ibm, essentially we, we signed the strategic collaboration agreement with the company. All of IBM software now runs on Rosa. So that is now also providing a lot of tailwinds both to our rail customers and as well as Rosa customers. And I think it's a very net creative, very positive for our partnership. >>That's right. It's been very positive. Yep. Yeah. >>You see the >>Billboards positive. Yeah, right. Also that, that's great. Great point, Dave. Yep. We have a, we have a new challenge, a new tradition on the cube here at Reinvent where we're, well, it's actually kind of a glamor moment for you, depending on how you leverage it. We're looking for your 32nd hot take your Instagram reel, your sizzle thought leadership, biggest takeaway, most important theme from this year's show. I know you want, right, Joel? I mean, you TM boy, I feel like you can spit the time. >>Yeah. It is all about Rosa for us. It is all in on that, that's the native OpenShift offering on aws and that's, that's the soundbite we're going go to town with. Now, I don't wanna forget all the other products that are in there, but Rosa is a, is a very key push for us this year. >>Fantastic. All right. Manu. >>I think our customers, it's getting super competitive. Our customers want to innovate just a >>Little bit. >>The enterprise customers see the cloud native companies. I wanna do what these guys are doing. I wanna develop features at a fast clip. I wanna scale, I wanna be resilient. And I think that's really the spirit that's coming out. So to Joel's point, you know, move to worlds containers, serverless, DevOps, which was like, you know, aha, something that's happening on the side of an enterprise is not becoming mainstream. The business is demanding it. The, it is becoming the centerpiece in the business strategy. So that's been really like the aha. Big thing that's happening here. >>Yeah. And those architectures are coming together, aren't they? That's correct. Right. You know, VMs and containers, it used to be one architecture and then at the other end of the spectrum is serverless. People thought of those as different things and now it's a single architecture and, and it's kind of right approach for the right job. >>And, and a compliments say to Red Hat, they do an incredible job of hiding that complexity. Yeah. Yes. And making sure that, you know, for example, just like, make it easier for the developers to create value and then, and you know, >>Yeah, that's right. Those, they were previously siloed architectures and >>That's right. OpenShift wanna be place where you wanna run containers or virtual machines. We want that to be this Yeah. Single place. Not, not go bolt on another piece of architecture to just do one or the other. Yeah. >>And hey, the hybrid cloud vision is working for ibm. No question. You know, and it's achievable. Yeah. I mean, I just, I've said unlike, you know, some of the previous, you know, visions on fixing the world with ai, hybrid cloud is actually a real problem that you're attacking and it's showing the results. Agreed. Oh yeah. >>Great. Alright. Last question for you guys. Cause it might be kind of fun, 10 years from now, oh, we're at another, we're sitting here, we all look the same. Time has passed, but we are not aging, which is a part of the new technology that's come out in skincare. That's my, I'm just throwing that out there. Why not? What do you guys hope that you can say about the partnership and, and your continued commitment to community? >>Oh, that's a good question. You go first this time. Yeah. >>I think, you know, the, you know, for looking into the future, you need to look into the past. And Amazon has always been driven by working back from our customers. That's like our key tenant, principle number 1 0 1. >>Couple people have said that on this stage this week. Yeah. >>Yeah. And I think our partnership, I hope over the next decade continues to keep that tenant as a centerpiece. And then whatever comes out of that, I think we, we are gonna be, you know, working through that. >>Yeah. I, I would say this, I think you said that, well, the customer innovation is gonna lead us to wherever that is. And it's, it's, it's gonna be in the cloud for sure. I think we can say that in 10 years. But yeah, anything from, from AI to the quant quantum computing that IBM's really pushing behind that, you know, those are, those are gonna be things that hopefully we show up on a, on a partnership with Manu in 10 years, maybe sooner. >>Well, whatever happens next, we'll certainly be covering it here on the cube. That's right. Thank you both for being here. Joel Manu, fantastic interview. Thanks to see you guys. Yeah, good to see you brought the energy. I think you're definitely ranking high on the top interviews. We >>Love that for >>The day. >>Thank >>My pleasure >>Job, guys. Now that you're competitive at all, and thank you all for tuning in to our live coverage here from AWS Reinvent in Las Vegas, Nevada, with Dave Valante. I'm Savannah Peterson. You're watching The Cube, the leading source for high tech coverage.

(upbeat music) >> Welcome back friends. It's theCUBE LIVE in Las Vegas at the Venetian Expo, covering the first full day of AWS re:Invent 2022. I'm Lisa Martin, and I have the privilege of working much of this week with Dave Vellante. >> Hey. Yeah, it's good to be with you Lisa. >> It's always good to be with you. Dave, this show is, I can't say enough about the energy. It just keeps multiplying as I've been out on the show floor for a few minutes here and there. We've been having great conversations about cloud migration, digital transformation, business transformation. You name it, we're talking about it. >> Yeah, and I got to say the soccer Christians are really happy. (Lisa laughing) >> Right? Because the USA made it through. So that's a lot of additional excitement. >> That's true. >> People were crowded around the TVs at lunchtime. >> They were, they were. >> So yeah, but back to data. >> Back to data. We have a couple of guests here. We're going to be talking a lot with customer challenges, how they're helping to overcome them. Please welcome Kevin Zawodzinski, VP of Sales Engineering at COMMVAULT. >> Thank you. >> And Paul Meighan, Director of Product Management at AWS. Guys, it's great to have you on the program. Thank you for joining us. >> Thanks for having us. >> Thanks for having us. >> Isn't it great to be back in person? >> Paul: It really is. >> Kevin: Hell, yeah. >> You cannot replicate this on virtual, you just can't. It's nice to see how excited people are to be back. There's been a ton of buzz on our program today about Adam's keynote this morning. Amazing. A lot of synergies with the direction, Paul, that AWS is going in and where we're seeing its ecosystem as well. Paul, first question for you. Talk about, you know, in the customer environment, we know AWS is very customer obsessed. Some of the main challenges customers are facing today is they really continue this business transformation, this digital transformation, and they move to cloud native apps. What are some of those challenges and how do you help them eradicate those? >> Well, I can tell you that the biggest contribution that we make is really by focusing on the fundamentals when it comes to running storage at scale, right? So Amazon S3 is unique, distributed architecture, you know, it really does deliver on those fundamentals of durability, availability, performance, security and it does it at virtually unlimited scale, right? I mean, you guys have talked to a lot of storage folks in the industry and anyone who's run an estate at scale knows that doing that and executing on those fundamentals day after day is just super hard, right? And so we come to work every day, we focus on the fundamentals, and that focus allows customers to spend their time thinking about innovation instead of on how to keep their data durably stored. >> Well, and you guys both came out of the storage world. >> Right. >> Yeah, yeah. >> It was a box world, (Kevin laughs) and it ain't no more. >> Kevin: That's right, absolutely. >> It's a service and a service of scale. >> Kevin: Yeah. So architecture matters, right? >> Yeah. >> Yeah. >> Paul, talk a little bit about, speaking of innovation, talk about the evolution of S3. It's been around for a while now. Everyone knows it, loves it, but how has AWS architected it to really help meet customers where they are? >> Paul: Right. >> Because we know, again, there's that customer first focus. You write the press release down the road, you then follow that. How is it evolving? >> Well, I can tell you that architecture matters a lot and the architecture of Amazon S3 is pretty unique, right? I think, you know, the most important thing to understand about the architecture of S3 is that it is truly a regional service. So we're laid out across a minimum of 3 Availability Zones, or AZs, which are physically separated and isolated and have a distance of miles between them to protect against local events like floods and fires and power interruption, stuff like that. And so when you give us an object, we distribute that data across that minimum of 3 Availability Zones and then within multiple devices within each AZ, right? And so what that means is that when you store data with us, your data is on storage that's able to tolerate the failure of multiple devices with no impact to the integrity of your data, which is super powerful. And then again, super hard to do when you're trying to roll your own. So that's sort of a, like an overview of the architecture. In terms of how we think about our roadmap, you know, 90% of our roadmap comes directly from what customers tell us matters, and that's a tenant of how we think about customer obsession at AWS and it really is how we drive a roadmap. >> Right, so speaking of customers Kevin, what are customers asking you guys- >> Yeah. >> for, how does it relate to what you're doing with S3? >> Yeah, it's a wonderful question and one that is actually really appropriate for us being at re:Invent, right? So we got, last three years we've had customers here with us on stage talking about it. First of all, 3 years ago we did a virtual session, unfortunately, but glad to be back as you mentioned, with Coca-Cola and theirs was about scale and scope and really about how can we protect hundreds of thousands of objects, petabyte to data, in a simple and secure way, right. Then last year we actually met with a ACT, Inc. as well and co-presented with them and really talked about how we could protect modern workloads and their modern workloads around whether it was Aurora or as well as EKS and how they continue to evolve as well. And, last but not least it's going to be, this year we're talking with Illinois State University as well about how they're going to continue to grow, adapt and really leverage AWS and ourselves to further their support of their teachers and their staff. So that is really helping us quite a bit to continue to move forward. And the things we're doing, again, with our customer base it's really around, focused on what's important to them, right? Customer obsession, how are we working with that? How are we making sure that we're listening to them? Again, working with AWS to understand how can we evolve together and really ultimately their journeys. As you heard, even with those 3 examples they're all very different, right? And that's the point, is that everybody's at a different point in the journey. They're at a different place from a modernization perspective. So we're helping them evolve, as they're helping us evolve as well, and transform with AWS. >> So very mature COMMVAULT stack, the S3 bucket and all the other capabilities. Paul, you just talked about coming together- >> Right. >> Dave: for your customers. >> Yeah, yeah, absolutely. And just, you know, we were talking the other day, Paul and I were talking the other day, it's been, you know, we've worked with AWS, with integration since 2009, right? So a long time, right? I mean, for some that may not seem like a long time ago, but it is, right? It's, you know, over a decade of time and we've really advanced that integration considerably as well. >> What are some of the things that, I don't know if you had a chance to see the keynote this morning? >> Yeah, a little bit. >> What are some of the things that there was, and in fact this is funny, funny data point for you on data. One of my previous guests told me that Adam Selipsky spent exactly 52 minutes talking about data this morning. 52 minutes. >> Okay. >> That there's a data point. But talk about some of the things that he talked about, the direction AWS is going in, obviously new era in the last year. Talk about what you heard and how you think that will evolve the COMMVAULT-AWS relationship. >> Yeah, I think part of that is about flexibility, as Paul mentioned too, architecture matters, right? So as we evolve and some of the things that we pride ourselves on is that we developed our systems and our software and everything else to not worry about what do I have to build to today but how do I continue to evolve with my customer base? And that's what AWS does, right? And continues to do. So that's really how we would see the data environment. It's really about that integration. As they grow, as they add more features we're going to add more features as well. And we're right there with them, right? So there's a lot of things that we also talk about, Paul and I talk about, around, you know, how do we, like Graviton3 was brought up today around some of the innovations around that. We're supporting that with Auto Scale right now, right? So we're right there releasing, right when AWS releasing, co-developing things when necessary as well. >> So let's talk about security a little bit. First of all, what is COMMVAULT, right? You're not a security company but you're an adjacency to security. It's sort of, we're rethinking security. >> Kevin: Yep. >> including data protection, not a bolt-on anymore. You guys both have a background in that world and I'm sure that resonates. >> Yeah. >> So what is the security play here? What role does COMMVAULT play? I think we know pretty well what role AWS plays, but love to hear, Paul, your thoughts as well on security. >> Yeah, I'll start I guess. >> Go on Paul. >> Okay. Yeah, so on the security side of things, there's a quite a few things. So again, on the development side of things, we do things like file anomaly detection, so seeing patterns in data. We talked a lot about analytics as well in the keynote this morning. We look at what is happening in the customer environment, if there's something odd or out of place that's happening, we can detect that and we'll notify people. And we've seen that, we have case studies about that. Other things we do are simple, simple but elegant. Is with our security dashboard. So we'll use our security dashboard to show best practices. Are they using Multi-Factor Authentication? Are you viewing password complexity? You know, things like that. And allows people to understand from a security landscape perspective, how do we layer in protection with their other systems around security. We don't profess to be the security company, or a security company, but we help, you know, obviously add in those additional layers. >> And obviously you're securing, you know, the S3 piece of it. >> Mmmhmm. >> You know, from your standpoint because building it in. >> That's right. And we can tell you that for us, security is job zero. And anyone at AWS will tell you that, and not only that but it will always be our top priority. Right from the infrastructure on down. We're very focused on our shared responsibility model where we handle security from the hypervisor, or host operating system level, down to the physical security of the facilities in which our services run and then it's our customer's responsibility to build secure applications, right. >> Yeah. And you talk about Graviton earlier, Nitro comes into play and how you're, sort of, fencing off, you know, the various components of the system from the operating system, the VMs, and then that is designed in and that's a new evolution that it comes as part of the package. >> Yeah, absolutely. >> Absolutely. >> Paul, talk a little bit about, you know, security, talking about that we had so many conversations this year alone about the threat landscape and how it's dramatically changing, it's top of mind for everybody. Huge rise in ransomware attacks. Ransomware is now, when are we going to get hit? How often? What's the damage going to be? Rather than, are we going to get hit? It's, unfortunately it's progressed in that direction. How does ensuring data security impact how you're planning the roadmap at AWS and how are partners involved in shaping that? >> Right, so like I said, you know, 90% of our roadmap comes from what customers tell us matters, right? And clearly this is an issue that matters very much to customers right now, right? And so, you know, we're certainly hearing that from customers, and COMMVAULT, and partners like COMMVAULT have a big role to play in helping customers to secure and protect their applications, right? And that's why it's so critical that we come together here at re:Invent and we have a bunch of time here at the show with the COMMVAULT technical folks to talk through what they're hearing from customers and what we're hearing. And we have a number of regular touch points throughout the year as well, right? And so what COMMVAULT gets from the relationship is, sort of, early access and feedback into our features and roadmap. And what we get out of it really is that feedback from that large number of customers who interface with Amazon S3 through COMMVAULT. Who are using S3 as a backup target behind COMMVAULT, right? And so, you know, that partnership really allows us to get close to those customers and understand what really matters to them. >> Are you doing joint engineering, or is it more just, hey here you go COMMVAULT, here's the tools available, go, go build. Can you address that? >> Yeah, no, absolutely. There's definitely joint engineering like even things around, you know, data migration and movement of data, we integrate really well and we talk a lot about, hey, what are you, like as Paul mentioned, what are you seeing out there? We actually, I just left a conversation about an hour ago where we're talking about, you know, where are we seeing placement of data and how does that matter to, do you put it on, you know, instant access, or do you put it on Glacier, you know, what should be the best practices? And we tell them, again, some of the telemetry data that we have around what do we see customers doing, what's the patterns of data? And then we feed that back in and we use that to create joint solutions as well. >> You know, I wonder if we could talk about cloud, you know, optimization of cloud costs for a minute. That's obviously a big discussion point in the hallways with customers. And on your earnings call you guys talked about specifically some customers and they specifically mentioned, for example, pushing storage to lower cost tiers. So you brought up Glacier just then. What are you seeing in the field in that regard? How are customers taking advantage of that? And where does COMMVAULT play in, sort of, helping make that decision? >> You want to take part one or you want me to take it? >> I can take part one. I can tell you that, you know, we're very focused on helping customers optimize costs, however necessary, right? And, you know, we introduced intelligent hearing here at the show in 2019 and since launch it's helped customers to reduce costs by over $750 million, right? So that's a real commitment to optimizing costs on behalf of customers. We also launched, you know, later in 2020, Glacier Deep Archive, which is the lowest cost storage in the cloud. So it's an important piece of the puzzle, is to provide those storage options that can allow customers to match the workloads that are, that need to be on folder storage to the appropriate store. >> Yeah, and so, you know, S3 is not this, you know, backup and recovery system, not an archiving system and, you know, in terms of, but you have that intelligence in your platform. 'Cause when I heard that from the earnings call I was like, okay, how do customers then go about deciding what they can, you know, when it's all good times, like yeah, who cares? You know, just go, go, go. But when you got to tighten the belt, how do you guys? >> Yeah, and that goes back to understanding the data pattern. So some of that is we have intelligence and artificial intelligence and everything else and machine learning within our, so we can detect those patterns, right? We understand the patterns, we learn from that and we help customers right size, right. So ultimately we do see a blend, right? As Paul mentioned, we see, you know, hey I'm not going to put everything on Glacier necessarily upfront. Maybe they are, it all depends on their workloads and patterns. So we use the data that we collect from the different customers that we have to share those best practices out and create, you know, the right templates, so to speak, in ways for people to apply it. >> Guys, great joint, you talked about the joint engineering, joint go to market, obviously a very strong synergistic partnership between the two. A lot of excitement. This is only day one, I can only imagine what's going to be coming the next couple of days. But I have one final question for you, but I have same question for both of you. You had the chance to create your own bumper sticker, so you get a shiny new car and for some reason you want to put a bumper sticker on it. About COMMVAULT, what would it say? >> Yeah, so for me I would say comprehensive, yet simple, right? So ultimately about giving you all the bells and whistles but if you want to be very simple we can help you in every shape and form. >> Paul, what's your bumper sticker say about AWS? >> I would say that AWS starts with the customer and works backwards from there. >> Great one. >> Excellent. Guys- >> Kevin: Well done. >> it's been a pleasure to have you on the program. Thank you- >> Kevin: Thank you. >> for sharing what's going on, the updates on the AWS-COMMVAULT partnership and what's in it for customers. We appreciate it. >> Dave: Thanks you guys. >> Thanks a lot. >> Thank you. >> All right. For our guests and Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage. (upbeat music)

>>Hello everyone. Welcome back to the Cube's Live coverage. I'm John Fur, host of the Cube. We got two sets here, three sets total. Another one in the executive center. It's our 10th year covering AWS Reinvent. I remember 2013 like it was yesterday. You know, now it's a massive of people buying out restaurants. 35,000 people now it's 55,000, soon to be 70,000 back. Great event. Continuing to set the standard in the industry. We had an amazing guest here, Leah Bibo, vice President of Product Marketing. She's in charge of the messaging, the product, overseeing how these products gonna market. Leah, great to see you. Thanks for joining me on the Cube today. >>Absolutely. It's great to be here. It's also my 10 reinvent, so it's, it's been a wild ride. >>Absolutely. Yeah. You and I were talking before we came on camera, how much we love products and yes, this is a product-centric company, has been from day one and you know, over the years watching the announcements, the tsunami of announcements, just all the innovation that's come out from AWS over the years has been staggering to say the least. Everyone always jokes about, oh my God, 5,000 new announcements, over 200 services you're managing and you're marketing them. It's pretty crazy right now. And Adam, as he comes on, as I called them, the solutions CEO on my piece I wrote on Friday, we're in an era where solutions, the products are enabling more solutions. Unpack the messaging around this cuz this is really big moment for aws. >>Absolutely. Well, I'll say first of all that we are a customer focused company that happens to be really good at innovating incredible products and services for our customers. So today the, the energy in the room and what Adam talked about, I think is focused on a few great things for customers that are really important for transformation. So we talked a lot about best price performance for workloads and we talked about extreme workloads, but if you think about the work that we've been doing to innovate on the silicon side, we're really talking about with Graviton all your workloads and getting really great price performance for all of them. You know, we came out with graviton three 25% faster than graviton two, also 60% more energy efficient. We talked about something that is emerging that I think is gonna be really big, which is simulation and really the ability to model these complex worlds and all the little interactions, which I think, you know, in the future as we have more complex environments like 3D simulation is gonna be a bigger part of every, every business's >>Business. You know, just as an aside, we were talking on the analyst segment that speeds and feeds are back and the old days and the data center days was like, we don't wanna talk about speeds and feeds about solutions and you know, the outcomes when you get the cloud, it was like, okay, get the workloads over there, but people want faster and lower cost performance workloads gotta be running at at high performance. And, and there's a real discussion around those. Let's unpack security data performance. What, what does that mean for customers? Because again, I get the workloads run fast. That's great. What else is behind the curtain, so to speak from a customer standpoint? >>Absolutely. Well I think if you're gonna move all your workloads to the cloud, you know, security is a really big area that's important. It's important to every one of our enterprise companies customers. Actually it's important to all of our customers and we've been working, you know, since the beginning of AWS to really create and build the most secure global infrastructure. And you know, as our customers have moved mission critical workloads, we've built out a lot more capabilities and now we have a whole portfolio of security services. And what we announced today is kind of game changing. The service called Security Lake, which brings together, you know, an ecosystem of security data in a format that's open. So you can share data between all of these sources and it's gonna give folks the opportunity to really be able to analyze data, find threats faster, and just kind of know their security posture. And I think, you know, as we talked about today, you don't wanna think about the cloud as unfathomable, the unfathomable, you really need to know that security. And I think that like a lot of things we discussed, security is a data opportunity, right? And I think we, we had a section on on data, but really if you look at the keynote across security, across solutions, across the purpose built things we made, it's all, it all comes down to data and it's really the, the transformational element that our customers >>Are. I mean the data secured is very integral part good call out there. And I, I wanna just double down on that real quick because I remember in 2014 I interviewed Steven Schmidt when he was the CSOs and back then in 2014, if you remember the conversation was this, the clouds not secure, gotta be on premises. Now in today's keynote, Adam says, and he laid out the whole global security footprint. There's a lot going on that Amazon has now become more secure than on-prem. He actually made that statement. So, and then plus you got thousands of security partners, third party partners, you got the open cyber security framework which you guys co-found with all the other, so you got securities not as a team sport, this is what they, they said yes, yes. What does that mean for customers? Because now this is a big deal. >>Well I think for customers, I mean it means nothing but goodness, right? But all of these thousands of security partners have really innovated and created solutions that our customers are using. But they all have different types of data in different silos. And to really get a full picture bringing all that data together is really important. And it's not easy today. You know, log data from different sources, data from detection services and really what customers want is an easier way to get it all together. Which is why we have the open OCS F and really analyze using the tools of their choice. And whether that's AWS tools for analytics or it's tools from our partners, customers need to be able to make that choice so that they can feel like their applications and their workloads are the most secure on aws. >>You know, I've been very impressed with guard duty and I've been following Merit Bear's blogs on online. She's in the security team, she's amazing. Shout out to her. She's been pushing guard duty for a long time now there's big news around guard duty. So you got EKS protection, you know, at Coan this was the biggest cloud native issue, the runtime of Kubernetes and inside the container and outside the container detection of threats, right? As a real software supply chain concern. How are you guys marketing that? This is a huge announcement. EKS protection I know is very nuanced but it's pretty big deal. >>It is a big deal. It is a big deal. And guard duty has been kind of like a quiet service that maybe you don't hear a lot about, but has been really, really popular with our customers. Adam mentioned that 85% of, you know, our top 2000 customers are using guard duty today. And it was a big moment. We launched EKS protection, you know, a little bit earlier and the customer uptake on that has been really incredible. And it is because you can protect your Kubernetes cluster, which is really important because so many customers are, you know, part of their migration to the cloud is containers. Yeah. And so we're pretty excited that now we can answer that question of what's going on inside the container. And so you have both, yeah, right. You know that your Kubernetes pluses are good and you know what's going on inside the container and it's just more threats that you can detect and protect >>Yourself from. You know, as an aside, I'm sure you're watching this, but you know, we go to a lot of events, you know, the C I C D pipeline as developers are getting higher velocity coding, it has moved in because of DevOps on the cloud into the C I C D pipeline. So you're seeing that developer takes some of those IT roles in the coding workflow, hence the, the shift left and or container security, which you guys now, now and are driving towards. But the security and the data teams are emerging as a very key element inside the organizational structure. When I sat down with Adam, one of the things he was very adamant about in my conversation was not just digital transformation, business transformation, structural organizational moves are making where it's not a department anymore, it is the company, a technology is the company when you transform. Absolutely. So digital is the process, business is the outcome. This is a really huge message. What's your reaction to that? What's, what can you share extra cuz that's, this is a big part of the thing. He hit it right outta the gate on the front end of the keynote. >>Absolutely. Absolutely. I mean I think, you know, companies have been migrating to the cloud for a while, but I think that this time that we're going through has really accelerated that migration And as part of that, you know, digital transformation has become real for a lot of companies. And it is true what Adam said there is technology transformation involved, there's data transformation involved, but it, it is transforming businesses. And I think if you look at some of the things that Adam talked about, you know, aws, supply chain, security Lake, aws clean rooms, and Omic, aws, omic, you know, those are all examples of data and the ability to work with data transforming different lines of business within a company, transforming horizontal processes like contact centers and like supply chain and also, you know, going into vertical specific solutions. So what it means is that as technology becomes more pervasive, as data becomes more pervasive, businesses are transforming and that means that a lot more people are going to use the cloud and interact with the cloud and they might not want to or be able to kind of use our building blocks. And so what's really exciting that what we're able to do is make cloud more accessible to lines of business folks to analysts, to security folks. So >>It's, yeah, and that's, and that's why I was calling my this this new trend I see as Amazon Classic, my words, not your words, I call the, hey there was classic cloud and then you got the next gen clown, the new next generation. And I was talking with Adrian Cockcroft, former aws, so he's now retired, he's gonna come on later today. He and I were talking, he use this thing of you got a bag of Legos aka primitives or a toy that's been assembled for you glued together, ones out of the box, but they're not mutually exclusive. You can build a durable application and foundation with the building blocks more durable. You can manage it, refine it, but you got the solution that breaks. You don't have as much flexibility but you gotta replace it. That's okay too. So like this is now kind of a new portfolio approach to the cloud. It's very interesting and I think, I think, I think that's what I took away from the keynote is that you can have both. >>Yes, absolutely. You can do both. I mean, we're gonna go full throttle on releasing innovations and pushing the envelope on compute and storage and databases and our core services because they matter. And having, you know, the choice to choose from a wide range of options. I mean that's what, that's what customers need. You know, if you're gonna run hpc, you're gonna run machine learning and you're gonna run your SAP applications or your Windows applications, you need choice of what you know, specific type of instance and compute capabilities. You need to get the price performance. It's, it's definitely not a one size fits all. It's a 600 instance type. Size fits all maybe. >>Exactly. And you got a lot of instance and we'll get to that in a second. Yeah, I love the themes. I love this keynote themes you had like at first space, but I get the whole data, then you look at it, you can look at it differently. Really good metaphor, the ocean one I love with the security because he mentioned you can have the confidence to explore go deep snorkeling versus scuba and knowing how much oxygen you have. I mean, so really cool metaphor made me think very provocative. So again, this is kind of why people go to AWS because you now have these, these abilities to do things differently, depend on the context of what products you're working with. Yes. Explain why that was the core theme. Was there any rationale behind that? Was it just how you guys saw it? I mean that was pretty clever. >>Well, I think that, you know, we're, we're talking about environments and I think in this world, you know, there's uncertainty in a lot of places and we really feel like all of us need to be prepared for different types of environments. And so we wanted to explore what that could look like. And I think, you know, we're fascinated by space and the vastness and it is very much like the world of data. I don't know about you, but I actually scuba dive. So I love the depths of the ocean. I loved working on that part. There's extremes, extreme workloads like hpc, extreme workloads like machine learning with the growing models and there's an imagination, which is also one of my favorite areas to explore. >>Yeah. And you use the Antarctica one for about the whole environment and extreme conditions. That's good in the performance. And I love that piece of it. And I want to get into the, some of the things I love the speeds and fee. I think the, the big innovation with the silicon we've been covering as, you know, like a blanket. The, he's got the GRAVITON three 25% faster than GRAVITON two, the C seven GN network intense workloads. This is kind of a big deal. I mean this is one of those things where it might not get picked up in the major press, but the network use cases are significant. Nira has been successful. Share your thoughts on these kinds of innovations because they look kind of small, but they're not, they're >>Big, they're not small for sure, especially at the scale that our customers are, are, are running their applications. Like every little optimization that you can get really makes a huge difference. And I think it's exciting. I mean you hit on, you kind of hit on it when we've been working on silicon for a while now we know that, you know, if we're gonna keep pushing the element, the envelope in these areas, we had to, we had to go down to the silicon. And I think that Nitro has really been what's kind of been a breakthrough for us. You know, reinventing that virtualization layer, offloading security and storage and networking to special purpose chips. And I think that it's not just in the area of network optimization, right? You saw training optimized instances and inference optimized instances and HPC optimized instances. So yeah, we are kind of looking at all the extremes of, of what customers want to do. >>I know you can't talk about the future, but I can almost connect the dots as you're talking. It's like, hmm, specialized instances, specialized chips, maybe programmability of workload, smart intelligence, generative AI, weaving in there. A lot of kind of cool things I can see around the corner around generative AI automation. Hey, go to this instance with that go here. This is kind of what I see kind of coming around the corner. >>And we have some of that with our instance optimizers, our cost optimizer products where, you know, we wanna help customers find the best instance for their workload, get the best utilization they possibly can, you know, cut costs, but still have the great performance. So I don't, I don't know about your future, John, it sounds great, but we have, you know, we're taking steps in that direction today. >>Still look in this code that's gonna be on this code. Okay. Any, okay, I wanna give you one final question. Well, well two questions. One was a comment Adam made, I'd love to get your reaction if you want to tighten your bell, come to the cloud. I thought that was a very interesting nuance. A lot of economic pressure. Cloud is an opportunity to get agile, time to value faster. We had Zs carve cube analyst who's with us earlier said, the more you spend on the cloud, the more you save. That was his line, which I thought was very smart. Spending more doesn't mean you're gonna lose money, means you can save money too. So a lot of cost optimization discussions. Absolutely. Hey, your belt come to the cloud. What does he mean by that? >>Well I think that in, in times where, you know, there's uncertainty and economic conditions, it is, it's really, you know, you sometimes wanna pull back kind of, you know, batten down the hatches. But the cloud really, and we saw this with C you know, if you, if you move to the cloud, not only can you cut costs, but you put yourself in this position where you can continue to innovate and you can be agile and you can be prepared for whatever environment you're in so that you know when things go back or you have a customer needs that and innovation that goes off like you, you can accelerate back up really, really quickly. And I think we talked about Airbnb, that example of how, you know, in, in that really tough time of covid when travel industry wasn't happening so much, you know, they were able to scale back and save money. And then at the same time when, you know, Airbnb's kind of once again travel came back, they were in a position to really, really quickly change with the, the customer needs. >>You know, Lee, it's always great talking with you. You got a lot of energy, you're so smart and we both love products and you're leading the product marketing. We have an Instagram challenge here on the cube. I'm gonna put you on the spot here. Oh my gosh. It's called Instagram. We called a bumper sticker section. We used to call it what's the bumper sticker for reinvent. But we kind of modernized that. If you were gonna do an Instagram reel right now, what would be the Instagram reel for reinvent Keynote day one. As we look for, we got Verner, we'll probably talk about productivity with developers. What's the Instagram reel for reinvent? >>Wow. That means I have to get short with it, right? I am, I'm not always, that's still wrong answer. Yeah, well I think, you know, this is really big day one, so it's excitement, it's, we're glad to be here. We have a lot coming for you. We're super excited. And if you think about it, it's price, performance, it's data, it's security and it's solutions for purpose-built use cases. >>Great job. Congratulations. I love the message. I love how you guys had the theme. I thought it was great. And it's great to see Amazon continue to innovate with, with the, with the, with the innovation on the product side. But as we get into transformation, starting to see these solutions and the ecosystem is thriving and looking forward to hearing the, the new partner, chief Aruba tomorrow. Absolutely. See what she's got a new plan apparently unveiling. So exciting. Everyone's pretty excited. Thanks for coming >>On. Great. Great. Thanks for having >>Me. All right. Leah, here in the cube. You are the cube, the leader in tech coverage. I'm John Fur, your host. More live coverage after the short break. We'll be right back here. Day two of the cube, day one of reinvent. Lot of great action. Three, four days of wall to wall coverage. We'll be right back.

(soft techno upbeat music) >> Hi there. Welcome back to Las Vegas. This is Dave Villante with Paul Gillon. Reinvent day one and a half. We started last night, Monday, theCUBE after dark. Now we're going wall to wall. Today. Today was of course the big keynote, Adam Selipsky, kind of the baton now handing, you know, last year when he did his keynote, he was very new. He was sort of still getting his feet wet and finding his guru swing. Settling in a little bit more this year, learning a lot more, getting deeper into the tech, but of course, sharing the love with other leaders like Peter DeSantis. Tomorrow's going to be Swamy in the keynote. Adrian Cockcroft is here. Former AWS, former network Netflix CTO, currently an analyst. You got your own firm now. You're out there. Great to see you again. Thanks for coming on theCUBE. >> Yeah, thanks. >> We heard you on at Super Cloud, you gave some really good insights there back in August. So now as an outsider, you come in obviously, you got to be impressed with the size and the ecosystem and the energy. Of course. What were your thoughts on, you know what you've seen so far, today's keynotes, last night Peter DeSantis, what stood out to you? >> Yeah, I think it's great to be back at Reinvent again. We're kind of pretty much back to where we were before the pandemic sort of shut it down. This is a little, it's almost as big as the, the largest one that we had before. And everyone's turned up. It just feels like we're back. So that's really good to see. And it's a slightly different style. I think there were was more sort of video production things happening. I think in this keynote, more storytelling. I'm not sure it really all stitched together very well. Right. Some of the stories like, how does that follow that? So there were a few things there and some of there were spelling mistakes on the slides, you know that ELT instead of ETL and they spelled ZFS wrong and something. So it just seemed like there was, I'm not quite sure just maybe a few things were sort of rushed at the last minute. >> Not really AWS like, was it? It's kind of remind the Patriots Paul, you know Bill Belichick's teams are fumbling all over the place. >> That's right. That's right. >> Part of it may be, I mean the sort of the market. They have a leader in marketing right now but they're going to have a CMO. So that's sort of maybe as lack of a single threaded leader for this thing. Everything's being shared around a bit more. So maybe, I mean, it's all fixable and it's mine. This is minor stuff. I'm just sort of looking at it and going there's a few things that looked like they were not quite as good as they could have been in the way it was put together. Right? >> But I mean, you're taking a, you know a year of not doing Reinvent. Yeah. Being isolated. You know, we've certainly seen it with theCUBE. It's like, okay, it's not like riding a bike. You know, things that, you know you got to kind of relearn the muscle memories. It's more like golf than is bicycle riding. >> Well I've done AWS keynotes myself. And they are pretty much scrambled. It looks nice, but there's a lot of scrambling leading up to when it actually goes. Right? And sometimes you can, you sometimes see a little kind of the edges of that, and sometimes it's much more polished. But you know, overall it's pretty good. I think Peter DeSantis keynote yesterday was a lot of really good meat there. There was some nice presentations, and some great announcements there. And today I was, I thought I was a little disappointed with some of the, I thought they could have been more. I think the way Andy Jesse did it, he crammed more announcements into his keynote, and Adam seems to be taking sort of a bit more of a measured approach. There were a few things he picked up on and then I'm expecting more to be spread throughout the rest of the day. >> This was more poetic. Right? He took the universe as the analogy for data, the ocean for security. Right? The Antarctic was sort of. >> Yeah. It looked pretty, >> yeah. >> But I'm not sure that was like, we're not here really to watch nature videos >> As analysts and journalists, You're like, come on. >> Yeah, >> Give it the meat >> That was kind the thing, yeah, >> It has always been the AWS has always been Reinvent has always been a shock at our approach. 100, 150 announcements. And they're really, that kind of pressure seems to be off them now. Their position at the top of the market seems to be unshakeable. There's no clear competition that's creeping up behind them. So how does that affect the messaging you think that AWS brings to market when it doesn't really have to prove that it's a leader anymore? It can go after maybe more of the niche markets or fix the stuff that's a little broken more fine tuning than grandiose statements. >> I think so AWS for a long time was so far out that they basically said, "We don't think about the competition, we are listen to the customers." And that was always the statement that works as long as you're always in the lead, right? Because you are introducing the new idea to the customer. Nobody else got there first. So that was the case. But in a few areas they aren't leading. Right? You could argue in machine learning, not necessarily leading in sustainability. They're not leading and they don't want to talk about some of these areas and-- >> Database. I mean arguably, >> They're pretty strong there, but the areas when you are behind, it's like they kind of know how to play offense. But when you're playing defense, it's a different set of game. You're playing a different game and it's hard to be good at both. I think and I'm not sure that they're really used to following somebody into a market and making a success of that. So there's something, it's a little harder. Do you see what I mean? >> I get opinion on this. So when I say database, David Foyer was two years ago, predicted AWS is going to have to converge somehow. They have no choice. And they sort of touched on that today, right? Eliminating ETL, that's one thing. But Aurora to Redshift. >> Yeah. >> You know, end to end. I'm not sure it's totally, they're fully end to end >> That's a really good, that is an excellent piece of work, because there's a lot of work that it eliminates. There's are clear pain points, but then you've got sort of the competing thing, is like the MongoDB and it's like, it's just a way with one database keeps it simple. >> Snowflake, >> Or you've got on Snowflake maybe you've got all these 20 different things you're trying to integrate at AWS, but it's kind of like you have a bag of Lego bricks. It's my favorite analogy, right? You want a toy for Christmas, you want a toy formula one racing car since that seems to be the theme, right? >> Okay. Do you want the fully built model that you can play with right now? Or do you want the Lego version that you have to spend three days building. Right? And AWS is the Lego technique thing. You have to spend some time building it, but once you've built it, you can evolve it, and you'll still be playing those are still good bricks years later. Whereas that prebuilt to probably broken gathering dust, right? So there's something about having an vulnerable architecture which is harder to get into, but more durable in the long term. And so AWS tends to play the long game in many ways. And that's one of the elements that they do that and that's good, but it makes it hard to consume for enterprise buyers that are used to getting it with a bow on top. And here's the solution. You know? >> And Paul, that was always Andy Chassy's answer to when we would ask him, you know, all these primitives you're going to make it simpler. You see the primitives give us the advantage to turn on a dime in the marketplace. And that's true. >> Yeah. So you're saying, you know, you take all these things together and you wrap it up, and you put a snowflake on top, and now you've got a simple thing or a Mongo or Mongo atlas or whatever. So you've got these layered platforms now which are making it simpler to consume, but now you're kind of, you know, you're all stuck in that ecosystem, you know, so it's like what layer of abstractions do you want to tie yourself to, right? >> The data bricks coming at it from more of an open source approach. But it's similar. >> We're seeing Amazon direct more into vertical markets. They spotlighted what Goldman Sachs is doing on their platform. They've got a variety of platforms that are supposedly targeted custom built for vertical markets. How do successful do you see that play being? Is this something that the customers you think are looking for, a fully integrated Amazon solution? >> I think so. There's usually if you look at, you know the MongoDB or data stacks, or the other sort of or elastic, you know, they've got the specific solution with the people that really are developing the core technology, there's open source equivalent version. The AWS is running, and it's usually maybe they've got a price advantage or it's, you know there's some data integration in there or it's somehow easier to integrate but it's not stopping those companies from growing. And what it's doing is it's endorsing that platform. So if you look at the collection of databases that have been around over the last few years, now you've got basically Elastic Mongo and Cassandra, you know the data stacks as being endorsed by the cloud vendors. These are winners. They're going to be around for a very long time. You can build yourself on that architecture. But what happened to Couch base and you know, a few of the other ones, you know, they don't really fit. Like how you going to bait? If you are now becoming an also ran, because you didn't get cloned by the cloud vendor. So the customers are going is that a safe place to be, right? >> But isn't it, don't they want to encourage those partners though in the name of building the marketplace ecosystem? >> Yeah. >> This is huge. >> But certainly the platform, yeah, the platform encourages people to do more. And there's always room around the edge. But the mainstream customers like that really like spending the good money, are looking for something that's got a long term life to it. Right? They're looking for a long commitment to that technology and that it's going to be invested in and grow. And the fact that the cloud providers are adopting and particularly AWS is adopting some of these technologies means that is a very long term commitment. You can base, you know, you can bet your future architecture on that for a decade probably. >> So they have to pick winners. >> Yeah. So it's sort of picking winners. And then if you're the open source company that's now got AWS turning up, you have to then leverage it and use that as a way to grow the market. And I think Mongo have done an excellent job of that. I mean, they're top level sponsors of Reinvent, and they're out there messaging that and doing a good job of showing people how to layer on top of AWS and make it a win-win both sides. >> So ever since we've been in the business, you hear the narrative hardware's going to die. It's just, you know, it's commodity and there's some truth to that. But hardware's actually driving good gross margins for the Cisco's of the world. Storage companies have always made good margins. Servers maybe not so much, 'cause Intel sucked all the margin out of it. But let's face it, AWS makes most of its money. We know on compute, it's got 25 plus percent operating margins depending on the seasonality there. What do you think happens long term to the infrastructure layer discussion? Okay, commodity cloud, you know, we talk about super cloud. Do you think that AWS, and the other cloud vendors that infrastructure, IS gets commoditized and they have to go up market or you see that continuing I mean history would say that still good margins in hardware. What are your thoughts on that? >> It's not commoditizing, it's becoming more specific. We've got all these accelerators and custom chips now, and this is something, this almost goes back. I mean, I was with some micro systems 20,30 years ago and we developed our own chips and HP developed their own chips and SGI mips, right? We were like, the architectures were all squabbling of who had the best processor chips and it took years to get chips that worked. Now if you make a chip and it doesn't work immediately, you screwed up somewhere right? It's become the technology of building these immensely complicated powerful chips that has become commoditized. So the cost of building a custom chip, is now getting to the point where Apple and Amazon, your Apple laptop has got full custom chips your phone, your iPhone, whatever and you're getting Google making custom chips and we've got Nvidia now getting into CPUs as well as GPUs. So we're seeing that the ability to build a custom chip, is becoming something that everyone is leveraging. And the cost of doing that is coming down to startups are doing it. So we're going to see many, many more, much more innovation I think, and this is like Intel and AMD are, you know they've got the compatibility legacy, but of the most powerful, most interesting new things I think are going to be custom. And we're seeing that with Graviton three particular in the three E that was announced last night with like 30, 40% whatever it was, more performance for HPC workloads. And that's, you know, the HPC market is going to have to deal with cloud. I mean they are starting to, and I was at Supercomputing a few weeks ago and they are tiptoeing around the edge of cloud, but those supercomputers are water cold. They are monsters. I mean you go around supercomputing, there are plumbing vendors on the booth. >> Of course. Yeah. >> Right? And they're highly concentrated systems, and that's really the only difference, is like, is it water cooler or echo? The rest of the technology stack is pretty much off the shelf stuff with a few tweets software. >> You point about, you know, the chips and what AWS is doing. The Annapurna acquisition. >> Yeah. >> They're on a dramatically different curve now. I think it comes down to, again, David Floyd's premise, really comes down to volume. The arm wafer volumes are 10 x those of X 86, volume always wins. And the economics of semis. >> That kind of got us there. But now there's also a risk five coming along if you, in terms of licensing is becoming one of the bottlenecks. Like if the cost of building a chip is really low, then it comes down to licensing costs and do you want to pay the arm license And the risk five is an open source chip set which some people are starting to use for things. So your dis controller may have a risk five in it, for example, nowadays, those kinds of things. So I think that's kind of the the dynamic that's playing out. There's a lot of innovation in hardware to come in the next few years. There's a thing called CXL compute express link which is going to be really interesting. I think that's probably two years out, before we start seeing it for real. But it lets you put glue together entire rack in a very flexible way. So just, and that's the entire industry coming together around a single standard, the whole industry except for Amazon, in fact just about. >> Well, but maybe I think eventually they'll get there. Don't use system on a chip CXL. >> I have no idea whether I have no knowledge about whether going to do anything CXL. >> Presuming I'm not trying to tap anything confidential. It just makes sense that they would do a system on chip. It makes sense that they would do something like CXL. Why not adopt the standard, if it's going to be as the cost. >> Yeah. And so that was one of the things out of zip computing. The other thing is the low latency networking with the elastic fabric adapter EFA and the extensions to that that were announced last night. They doubled the throughput. So you get twice the capacity on the nitro chip. And then the other thing was this, this is a bit technical, but this scalable datagram protocol that they've got which basically says, if I want to send a message, a packet from one machine to another machine, instead of sending it over one wire, I consider it over 16 wires in parallel. And I will just flood the network with all the packets and they can arrive in any order. This is why it isn't done normally. TCP is in order, the packets come in order they're supposed to, but this is fully flooding them around with its own fast retry and then they get reassembled at the other end. So they're not just using this now for HPC workloads. They've turned it on for TCP for just without any change to your application. If you are trying to move a large piece of data between two machines, and you're just pushing it down a network, a single connection, it takes it from five gigabits per second to 25 gigabits per second. A five x speed up, with a protocol tweak that's run by the Nitro, this is super interesting. >> Probably want to get all that AIML that stuff is going on. >> Well, the AIML stuff is leveraging it underneath, but this is for everybody. Like you're just copying data around, right? And you're limited, "Hey this is going to get there five times faster, pushing a big enough chunk of data around." So this is turning on gradually as the nitro five comes out, and you have to enable it at the instance level. But it's a super interesting announcement from last night. >> So the bottom line bumper sticker on commoditization is what? >> I don't think so. I mean what's the APIs? Your arm compatible, your Intel X 86 compatible or your maybe risk five one day compatible in the cloud. And those are the APIs, right? That's the commodity level. And the software is now, the software ecosystem is super portable across those as we're seeing with Apple moving from Intel to it's really not an issue, right? The software and the tooling is all there to do that. But underneath that, we're going to see an arms race between the top providers as they all try and develop faster chips for doing more specific things. We've got cranium for training, that instance has they announced it last year with 800 gigabits going out of a single instance, 800 gigabits or no, but this year they doubled it. Yeah. So 1.6 terabytes out of a single machine, right? That's insane, right? But what you're doing is you're putting together hundreds or thousands of those to solve the big machine learning training problems. These super, these enormous clusters that they're being formed for doing these massive problems. And there is a market now, for these incredibly large supercomputer clusters built for doing AI. That's all bandwidth limited. >> And you think about the timeframe from design to tape out. >> Yeah. >> Is just getting compressed It's relative. >> It is. >> Six is going the other way >> The tooling is all there. Yeah. >> Fantastic. Adrian, always a pleasure to have you on. Thanks so much. >> Yeah. >> Really appreciate it. >> Yeah, thank you. >> Thank you Paul. >> Cheers. All right. Keep it right there everybody. Don't forget, go to thecube.net, you'll see all these videos. Go to siliconangle.com, We've got features with Adam Selipsky, we got my breaking analysis, we have another feature with MongoDB's, Dev Ittycheria, Ali Ghodsi, as well Frank Sluman tomorrow. So check that out. Keep it right there. You're watching theCUBE, the leader in enterprise and emerging tech, right back. (soft techno upbeat music)

from the cube studios in Palo Alto in Boston bringing you data-driven insights from the cube and ETR this is breaking analysis with Dave vellante the ascendancy of AWS under the leadership of Andy jassy was marked by a tsunami of data and corresponding cloud services to leverage that data now those Services they mainly came in the form of Primitives I.E basic building blocks that were used by developers to create more sophisticated capabilities AWS in the 2020s being led by CEO Adam solipski will be marked by four high-level Trends in our opinion one A Rush of data that will dwarf anything we've previously seen two a doubling or even tripling down on the basic elements of cloud compute storage database security Etc three a greater emphasis on end-to-end integration of AWS services to simplify and accelerate customer adoption of cloud and four significantly deeper business integration of cloud Beyond it as an underlying element of organizational operations hello and welcome to this week's wikibon Cube insights powered by ETR in this breaking analysis we extract and analyze nuggets from John furrier's annual sit-down with the CEO of AWS we'll share data from ETR and other sources to set the context for the market and competition in cloud and we'll give you our glimpse of what to expect at re invent in 2022. now before we get into the core of our analysis Alibaba has announced earnings they always announced after the big three you know a month later and we've updated our Q3 slash November hyperscale Computing forecast for the year as seen here and we're going to spend a lot of time on this as most of you have seen the bulk of it already but suffice to say alibaba's cloud business is hitting that same macro Trend that we're seeing across the board but a more substantial slowdown than we expected and more substantial than its peers they're facing China headwinds they've been restructuring its Cloud business and it's led to significantly slower growth uh in in the you know low double digits as opposed to where we had it at 15 this puts our year-end estimates for 2022 Revenue at 161 billion still a healthy 34 growth with AWS surpassing 80 billion in 2022 Revenue now on a related note one of the big themes in Cloud that we've been reporting on is how customers are optimizing their Cloud spend it's a technique that they use and when the economy looks a little shaky and here's a graphic that we pulled from aws's website which shows the various pricing plans at a high level as you know they're much more granular than that and more sophisticated but Simplicity we'll just keep it here basically there are four levels first one here is on demand I.E pay by the drink now we're going to jump down to what we've labeled as number two spot instances that's like the right place at the right time I can use that extra capacity in the moment the third is reserved instances or RIS where I pay up front to get a discount and the fourth is sort of optimized savings plans where customers commit to a one or three year term and for a better price now you'll notice we labeled the choices in a different order than AWS presented them on its website and that's because we believe that the order that we chose is the natural progression for customers this started on demand they maybe experiment with spot instances they move to reserve instances when the cloud bill becomes too onerous and if you're large enough you lock in for one or three years okay the interesting thing is the order in which AWS presents them we believe that on-demand accounts for the majority of AWS customer spending now if you think about it those on-demand customers they're also at risk customers yeah sure there's some switching costs like egress and learning curve but many customers they have multiple clouds and they've got experience and so they're kind of already up to a learning curve and if you're not married to AWS with a longer term commitment there's less friction to switch now AWS here presents the most attractive plan from a financial perspective second after on demand and it's also the plan that makes the greatest commitment from a lock-in standpoint now In fairness to AWS it's also true that there is a trend towards subscription-based pricing and we have some data on that this chart is from an ETR drill down survey the end is 300. pay attention to the bars on the right the left side is sort of busy but the pink is subscription and you can see the trend upward the light blue is consumption based or on demand based pricing and you can see there's a steady Trend toward subscription now we'll dig into this in a later episode of Breaking analysis but we'll share with you a little some tidbits with the data that ETR provides you can select which segment is and pass or you can go up the stack Etc but so when you choose is and paths 44 of customers either prefer or are required to use on-demand pricing whereas around 40 percent of customers say they either prefer or are required to use subscription pricing again that's for is so now the further mu you move up the stack the more prominent subscription pricing becomes often with sixty percent or more for the software-based offerings that require or prefer subscription and interestingly cyber security tracks along with software at around 60 percent that that prefer subscription it's likely because as with software you're not shutting down your cyber protection on demand all right let's get into the expectations for reinvent and we're going to start with an observation in data in this 2018 book seeing digital author David michella made the point that whereas most companies apply data on the periphery of their business kind of as an add-on function successful data companies like Google and Amazon and Facebook have placed data at the core of their operations they've operationalized data and they apply machine intelligence to that foundational element why is this the fact is it's not easy to do what the internet Giants have done very very sophisticated engineering and and and cultural discipline and this brings us to reinvent 2022 in the future of cloud machine learning and AI will increasingly be infused into applications we believe the data stack and the application stack are coming together as organizations build data apps and data products data expertise is moving from the domain of Highly specialized individuals to Everyday business people and we are just at the cusp of this trend this will in our view be a massive theme of not only re invent 22 but of cloud in the 2020s the vision of data mesh We Believe jamachtagani's principles will be realized in this decade now what we'd like to do now is share with you a glimpse of the thinking of Adam solipsky from his sit down with John Furrier each year John has a one-on-one conversation with the CEO of AWS AWS he's been doing this for years and the outcome is a better understanding of the directional thinking of the leader of the number one Cloud platform so we're now going to share some direct quotes I'm going to run through them with some commentary and then bring in some ETR data to analyze the market implications here we go this is from solipsky quote I.T in general and data are moving from departments into becoming intrinsic parts of how businesses function okay we're talking here about deeper business integration let's go on to the next one quote in time we'll stop talking about people who have the word analyst we inserted data he meant data data analyst in their title rather will have hundreds of millions of people who analyze data as part of their day-to-day job most of whom will not have the word analyst anywhere in their title we're talking about graphic designers and pizza shop owners and product managers and data scientists as well he threw that in I'm going to come back to that very interesting so he's talking about here about democratizing data operationalizing data next quote customers need to be able to take an end-to-end integrated view of their entire data Journey from ingestion to storage to harmonizing the data to being able to query it doing business Intelligence and human-based Analysis and being able to collaborate and share data and we've been putting together we being Amazon together a broad Suite of tools from database to analytics to business intelligence to help customers with that and this last statement it's true Amazon has a lot of tools and you know they're beginning to become more and more integrated but again under jassy there was not a lot of emphasis on that end-to-end integrated view we believe it's clear from these statements that solipsky's customer interactions are leading him to underscore that the time has come for this capability okay continuing quote if you have data in one place you shouldn't have to move it every time you want to analyze that data couldn't agree more it would be much better if you could leave that data in place avoid all the ETL which has become a nasty three-letter word more and more we're building capabilities where you can query that data in place end quote okay this we see a lot in the marketplace Oracle with mySQL Heatwave the entire Trend toward converge database snowflake [ __ ] extending their platforms into transaction and analytics respectively and so forth a lot of the partners are are doing things as well in that vein let's go into the next quote the other phenomenon is infusing machine learning into all those capabilities yes the comments from the michelleographic come into play here infusing Ai and machine intelligence everywhere next one quote it's not a data Cloud it's not a separate Cloud it's a series of broad but integrated capabilities to help you manage the end-to-end life cycle of your data there you go we AWS are the cloud we're going to come back to that in a moment as well next set of comments around data very interesting here quote data governance is a huge issue really what customers need is to find the right balance of their organization between access to data and control and if you provide too much access then you're nervous that your data is going to end up in places that it shouldn't shouldn't be viewed by people who shouldn't be viewing it and you feel like you lack security around that data and by the way what happens then is people overreact and they lock it down so that almost nobody can see it it's those handcuffs there's data and asset are reliability we've talked about that for years okay very well put by solipsky but this is a gap in our in our view within AWS today and we're we're hoping that they close it at reinvent it's not easy to share data in a safe way within AWS today outside of your organization so we're going to look for that at re invent 2022. now all this leads to the following statement by solipsky quote data clean room is a really interesting area and I think there's a lot of different Industries in which clean rooms are applicable I think that clean rooms are an interesting way of enabling multiple parties to share and collaborate on the data while completely respecting each party's rights and their privacy mandate okay again this is a gap currently within AWS today in our view and we know snowflake is well down this path and databricks with Delta sharing is also on this curve so AWS has to address this and demonstrate this end-to-end data integration and the ability to safely share data in our view now let's bring in some ETR spending data to put some context around these comments with reference points in the form of AWS itself and its competitors and partners here's a chart from ETR that shows Net score or spending momentum on the x-axis an overlap or pervasiveness in the survey um sorry let me go back up the net scores on the y-axis and overlap or pervasiveness in the survey is on the x-axis so spending momentum by pervasiveness okay or should have share within the data set the table that's inserted there with the Reds and the greens that informs us to how the dots are positioned so it's Net score and then the shared ends are how the plots are determined now we've filtered the data on the three big data segments analytics database and machine learning slash Ai and we've only selected one company with fewer than 100 ends in the survey and that's databricks you'll see why in a moment the red dotted line indicates highly elevated customer spend at 40 percent now as usual snowflake outperforms all players on the y-axis with a Net score of 63 percent off the charts all three big U.S cloud players are above that line with Microsoft and AWS dominating the x-axis so very impressive that they have such spending momentum and they're so large and you see a number of other emerging data players like rafana and datadog mongodbs there in the mix and then more established players data players like Splunk and Tableau now you got Cisco who's gonna you know it's a it's a it's a adjacent to their core networking business but they're definitely into you know the analytics business then the really established players in data like Informatica IBM and Oracle all with strong presence but you'll notice in the red from the momentum standpoint now what you're going to see in a moment is we put red highlights around databricks Snowflake and AWS why let's bring that back up and we'll explain so there's no way let's bring that back up Alex if you would there's no way AWS is going to hit the brakes on innovating at the base service level what we call Primitives earlier solipsky told Furrier as much in their sit down that AWS will serve the technical user and data science Community the traditional domain of data bricks and at the same time address the end-to-end integration data sharing and business line requirements that snowflake is positioned to serve now people often ask Snowflake and databricks how will you compete with the likes of AWS and we know the answer focus on data exclusively they have their multi-cloud plays perhaps the more interesting question is how will AWS compete with the likes of Specialists like Snowflake and data bricks and the answer is depicted here in this chart AWS is going to serve both the technical and developer communities and the data science audience and through end-to-end Integrations and future services that simplify the data Journey they're going to serve the business lines as well but the Nuance is in all the other dots in the hundreds or hundreds of thousands that are not shown here and that's the AWS ecosystem you can see AWS has earned the status of the number one Cloud platform that everyone wants to partner with as they say it has over a hundred thousand partners and that ecosystem combined with these capabilities that we're discussing well perhaps behind in areas like data sharing and integrated governance can wildly succeed by offering the capabilities and leveraging its ecosystem now for their part the snowflakes of the world have to stay focused on the mission build the best products possible and develop their own ecosystems to compete and attract the Mind share of both developers and business users and that's why it's so interesting to hear solipski basically say it's not a separate Cloud it's a set of integrated Services well snowflake is in our view building a super cloud on top of AWS Azure and Google when great products meet great sales and marketing good things can happen so this will be really fun to watch what AWS announces in this area at re invent all right one other topic that solipsky talked about was the correlation between serverless and container adoption and you know I don't know if this gets into there certainly their hybrid place maybe it starts to get into their multi-cloud we'll see but we have some data on this so again we're talking about the correlation between serverless and container adoption but before we get into that let's go back to 2017 and listen to what Andy jassy said on the cube about serverless play the clip very very earliest days of AWS Jeff used to say a lot if I were starting Amazon today I'd have built it on top of AWS we didn't have all the capability and all the functionality at that very moment but he knew what was coming and he saw what people were still able to accomplish even with where the services were at that point I think the same thing is true here with Lambda which is I think if Amazon were starting today it's a given they would build it on the cloud and I think we with a lot of the applications that comprise Amazon's consumer business we would build those on on our serverless capabilities now we still have plenty of capabilities and features and functionality we need to add to to Lambda and our various serverless services so that may not be true from the get-go right now but I think if you look at the hundreds of thousands of customers who are building on top of Lambda and lots of real applications you know finra has built a good chunk of their market watch application on top of Lambda and Thompson Reuters has built you know one of their key analytics apps like people are building real serious things on top of Lambda and the pace of iteration you'll see there will increase as well and I really believe that to be true over the next year or two so years ago when Jesse gave a road map that serverless was going to be a key developer platform going forward and so lipsky referenced the correlation between serverless and containers in the Furrier sit down so we wanted to test that within the ETR data set now here's a screen grab of The View across 1300 respondents from the October ETR survey and what we've done here is we've isolated on the cloud computing segment okay so you can see right there cloud computing segment now we've taken the functions from Google AWS Lambda and Microsoft Azure functions all the serverless offerings and we've got Net score on the vertical axis we've got presence in the data set oh by the way 440 by the way is highly elevated remember that and then we've got on the horizontal axis we have the presence in the data center overlap okay that's relative to each other so remember 40 all these guys are above that 40 mark okay so you see that now what we're going to do this is just for serverless and what we're going to do is we're going to turn on containers to see the correlation and see what happens so watch what happens when we click on container boom everything moves to the right you can see all three move to the right Google drops a little bit but all the others now the the filtered end drops as well so you don't have as many people that are aggressively leaning into both but all three move to the right so watch again containers off and then containers on containers off containers on so you can see a really major correlation between containers and serverless okay so to get a better understanding of what that means I call my friend and former Cube co-host Stu miniman what he said was people generally used to think of VMS containers and serverless as distinctly different architectures but the lines are beginning to blur serverless makes things simpler for developers who don't want to worry about underlying infrastructure as solipsky and the data from ETR indicate serverless and containers are coming together but as Stu and I discussed there's a spectrum where on the left you have kind of native Cloud VMS in the middle you got AWS fargate and in the rightmost anchor is Lambda AWS Lambda now traditionally in the cloud if you wanted to use containers developers would have to build a container image they have to select and deploy the ec2 images that they or instances that they wanted to use they have to allocate a certain amount of memory and then fence off the apps in a virtual machine and then run the ec2 instances against the apps and then pay for all those ec2 resources now with AWS fargate you can run containerized apps with less infrastructure management but you still have some you know things that you can you can you can do with the with the infrastructure so with fargate what you do is you'd build the container images then you'd allocate your memory and compute resources then run the app and pay for the resources only when they're used so fargate lets you control the runtime environment while at the same time simplifying the infrastructure management you gotta you don't have to worry about isolating the app and other stuff like choosing server types and patching AWS does all that for you then there's Lambda with Lambda you don't have to worry about any of the underlying server infrastructure you're just running code AS functions so the developer spends their time worrying about the applications and the functions that you're calling the point is there's a movement and we saw in the data towards simplifying the development environment and allowing the cloud vendor AWS in this case to do more of the underlying management now some folks will still want to turn knobs and dials but increasingly we're going to see more higher level service adoption now re invent is always a fire hose of content so let's do a rapid rundown of what to expect we talked about operate optimizing data and the organization we talked about Cloud optimization there'll be a lot of talk on the show floor about best practices and customer sharing data solipsky is leading AWS into the next phase of growth and that means moving beyond I.T transformation into deeper business integration and organizational transformation not just digital transformation organizational transformation so he's leading a multi-vector strategy serving the traditional peeps who want fine-grained access to core services so we'll see continued Innovation compute storage AI Etc and simplification through integration and horizontal apps further up to stack Amazon connect is an example that's often cited now as we've reported many times databricks is moving from its stronghold realm of data science into business intelligence and analytics where snowflake is coming from its data analytics stronghold and moving into the world of data science AWS is going down a path of snowflake meet data bricks with an underlying cloud is and pass layer that puts these three companies on a very interesting trajectory and you can expect AWS to go right after the data sharing opportunity and in doing so it will have to address data governance they go hand in hand okay price performance that is a topic that will never go away and it's something that we haven't mentioned today silicon it's a it's an area we've covered extensively on breaking analysis from Nitro to graviton to the AWS acquisition of Annapurna its secret weapon new special specialized capabilities like inferential and trainium we'd expect something more at re invent maybe new graviton instances David floyer our colleague said he's expecting at some point a complete system on a chip SOC from AWS and maybe an arm-based server to eventually include high-speed cxl connections to devices and memories all to address next-gen applications data intensive applications with low power requirements and lower cost overall now of course every year Swami gives his usual update on machine learning and AI building on Amazon's years of sagemaker innovation perhaps a focus on conversational AI or a better support for vision and maybe better integration across Amazon's portfolio of you know large language models uh neural networks generative AI really infusing AI everywhere of course security always high on the list that reinvent and and Amazon even has reinforce a conference dedicated to it uh to security now here we'd like to see more on supply chain security and perhaps how AWS can help there as well as tooling to make the cio's life easier but the key so far is AWS is much more partner friendly in the security space than say for instance Microsoft traditionally so firms like OCTA and crowdstrike in Palo Alto have plenty of room to play in the AWS ecosystem we'd expect of course to hear something about ESG it's an important topic and hopefully how not only AWS is helping the environment that's important but also how they help customers save money and drive inclusion and diversity again very important topics and finally come back to it reinvent is an ecosystem event it's the Super Bowl of tech events and the ecosystem will be out in full force every tech company on the planet will have a presence and the cube will be featuring many of the partners from the serial floor as well as AWS execs and of course our own independent analysis so you'll definitely want to tune into thecube.net and check out our re invent coverage we start Monday evening and then we go wall to wall through Thursday hopefully my voice will come back we have three sets at the show and our entire team will be there so please reach out or stop by and say hello all right we're going to leave it there for today many thanks to Stu miniman and David floyer for the input to today's episode of course John Furrier for extracting the signal from the noise and a sit down with Adam solipski thanks to Alex Meyerson who was on production and manages the podcast Ken schiffman as well Kristen Martin and Cheryl Knight helped get the word out on social and of course in our newsletters Rob hoef is our editor-in-chief over at siliconangle does some great editing thank thanks to all of you remember all these episodes are available as podcasts wherever you listen you can pop in the headphones go for a walk just search breaking analysis podcast I published each week on wikibon.com at siliconangle.com or you can email me at david.valante at siliconangle.com or DM me at di vallante or please comment on our LinkedIn posts and do check out etr.ai for the best survey data in the Enterprise Tech business this is Dave vellante for the cube insights powered by ETR thanks for watching we'll see it reinvent or we'll see you next time on breaking analysis [Music]

>>Hi, I'm John Ferry with the Cube. We're here for a special exclusive conversation with David Geria, the CEO of Mongo MongoDB. Well established leading platform. It's been around for, I mean, decades. So continues to become the platform of choice for high performance data. This modern data stack that's emerging, a big part of the story here at a reinvent 2022 on top of an already performing a cloud with, you know, chips and silicon specialized instances, the world's gonna be getting faster, smaller, higher performance, lower cost specialized. Dave, thanks for taking the time with me today, >>John. It's great to be here. Thank you for having me. >>Do you see yourself as a ISV or you just go with that, because that's kind of a nomenclature >>When, when I think of the term isv, I think of the notion of someone building an end solution for customer to get something done. Or what we're building is essentially a developer data platform and we have thousands of ISVs who build software applications on our platform. So how could we be an isv? Because by definition I, you know, we enable people to do so many different things and you know, they can be the, you know, the largest companies of the world trying to transform their business or startups who are trying to disrupt either existing industries or create new ones. And so that's, and, and that's how our customers view MongoDB and, and the whole Atlas platform basically enables them to do some amazing things. The reason for that is, you know, you know, we believe that what we are enabling developers to do is be able to reduce the friction and the work required to build modern applications through the document model, which is really intuitive to the way developers think and code through the distributed nature of platforms. >>So, you know, things like charting no other company on the planet offers the capabilities we do to enable people to build the most highly performant and scalable applications. And also what we also do is enable people to, you know, run different types of workloads on our platform. So we have obviously transactional, we have search, we have time series, we enable people to do things like sophisticated device synchronization from Edge to the back end. We do graph, we do real time analytics. So being able to consolidate all that with developers on one elegant unified platform really makes, you know, it attractive for developers to build on long >>Db. You know, you guys are a feature partner of aws and I would speculate, I don't know if you can comment on this, but I would imagine that you probably produce a lot of revenue for Amazon because you really can't turn off EC two when you do a database work. So, you know, you kind of crank it all the time. You guys are a top partner. How long have you guys been a partner with aws? What's the relationship? >>The relationship's been strong, actually, Amazon spoke at one of our first user conferences in 2013. And since then we've been working together. We've been at reinvent since essentially 2015. And we've been a premier partner, an Emerald sponsor for the last Nu you know, I think four or five years. And so we're very committed to the relationship and I think there's some things that we have a lot, we have a lot of things in common. We care a lot about customers and for us, our customers, our developers, we care a lot about removing friction from their day to day work to move, be able to move fast and be able to, in order to seize new opportunities and respond to new threats. And so consequently, I think the partnership, obviously by nature of our, our common objectives has really come together. >>Talk about the journey of Mongo. I mean, you look back at the history, I, you go back the old lamp stack days, right? So you know, the day developer traction is just really kind of stuck at the none. I mean, it's, it's really well known. And I remember over the conversations, Dave Mongo doesn't scale. I mean, every year we heard something along those lines cuz it just kept scaling. I heard the same thing with AWS back in 2013 timeframe. You, oh, it's just, it's really not for a real prime time. It's, it's for hobbyists, not so much builders, maybe startup cloud, but that developer traction is translated. Can you take us through the journey of Mongo where it is now and, and kinda look back and, and, and take us through what's the state of the art now, >>Right? So just for those of you who, who, those, you know, those in your audience who don't know too much about Mon Be I'll just, you know, start with the background. The company was astounded by developers. It was basically the CTO and some key developers from Double Click who really saw the challenges and the limitations of the relational database architecture because they're trying to serve billions of ads per day and they constantly need to work on the constraints and relational database. And so they essentially decided, why don't we just build a database that we'd want to use? And that was a catalyst to starting MongoDB. The first thing they focused on was, rather than having a tabler data structure, they focused on a document data structure. Why documents? Because there's much more natural and intuitive to work with data and documents in terms of you can set parent child relationships and how you just think about the relationship with data is much more natural in a document than trying to connect data in a, you know, in hundreds of different tables. >>And so that enabled developers to just move so much faster. The second thing they focused on was building a truly distributed architecture, not kind of some adjunct, you know, you know, architecture that maybe made the existing architecture a little bit more scalable. They really took from the ground up a truly distributed architecture. So where you can do native replication, you can do charting and you can do it on a global basis. And so that was the, the other profound, you know, thing that they did. And then since then, what we've also done is, you know, the document model is truly a super set of other models. So we enabled other capabilities like search you can do joins, so you can do very transaction intensive use case among be where fully asset compliant. So you have the highest forms of data guarantees you can do very sophisticated things like time series, you can do device synchronization, you can do real time analytics because we can carve off read only nodes to be able to read and query data in real time rather than have to offload that data into a data warehouse. >>And so that enables developers to just build a wide variety of, of application longing to be, and they get one unified developer interface. It's highly elegant and seamless. And so essentially the cost and tax of matching multiple point tools goes away when, when I think of the term isv, I think of the notion of someone building an end solution for a customer to get something done. Or what we're building is essentially a developer data platform and we have thousands of ISVs who build software applications on our platform. So how could we be an isv? Because by definition I, you know, we enable people to do so many different things and you know, they can be the, you know, the largest companies in the world trying to transform their business or startups or trying to disrupt either existing industries or create new ones. And so that's, and and that's how our customers view MongoDB and, and the whole Atlas platform basically enables them to do some amazing things. >>Yeah, we're seeing a lot of activity on the Atlas. Do you see yourself as a ISV or you just go with that because that's kind of a nomenclature? >>No, we don't view ourselves as ISV at all. We view ourselves as a developer data platform. And the reason for that is, you know, you know, we believe that what we are enabling developers to do is be able to reduce the friction and the work required to build modern applications through the document model, which is really intuitive to the way developers think and code through the distributed nature of platforms. So, you know, things like sharding, no other company on the planet offers the capabilities we do to enable people to build the most highly performant and scalable applications. And also what we also do is enable people to, you know, run different types of workflows on our platform. So we have obviously transactional, we have search, we have time series, we enable people to do things like sophisticated device synchronization from Edge to the back end. We do graph, we do real time analytics. So being able to consolidate all that with developers on one elegant unified platform really makes, you know, it attractive for developers to build on long ndb. >>You know, the cloud adoption really is putting a lot of pressure on these systems and you're seeing companies in the ecosystem and AWS stepping up, you guys are doing great job, but we're seeing a lot more acceleration around it, on staying on premise for certain use cases. Yet you got the cloud as well growing for workloads and, and you get this hybrid steady state as an operational mode. I call that 10 of the classic cloud adoption track record. You guys are an example of multiple iterations in cloud. You're doing a lot more, we're starting to see this tipping point with others and customers coming kind of on that same pattern. Building platforms on top of aws on top of the primitives, more horsepower, higher level services, industry specific capabilities with data. I mean this is a new kind of cloud, kind of a next generation, you knows next gen you got the classic high performance infrastructure, it's getting better and better, but now you've got this new application platform, you know, reminds me of the old asp, you know, if you will. I mean, so are you seeing customers doing things differently? Can you share your, your reaction to this role of, you know, this new kind of SaaS platform that just isn't an application, it's, it's more, it's deeper than that. What's going on here? We call it super cloud, but >>Like what? Yeah, so essentially what what, you know, a lot of our customers doing, and by the way we have over 37,000 customers of all shapes and sizes from the largest companies in the world to cutting edge startups who are building applications among B, why do they choose MongoDB? Because essentially it's the, you know, the fastest way to innovate and the reason it's the fastest way to innovate is because they can work with data so much easier than working with data on other types of architecture. So the document model is profoundly a breakthrough way to work with data to make it very, very easy. So customers are essentially building these modern applications, you know, applications built on microservices, event driven architectures, you know, addressing sophisticated use cases like time series to, and then ultimately now they're getting into machine learning. We have a bunch of companies building machine learning applications on top of MongoDB. And the reason they're doing that is because one, they get the benefits of being able to, you know, build and work with, with data so much easier than any other platform. And it's highly scale and performant in a way that no other platform is. So literally they can run their, you know, workloads both locally and one, you know, autonomous zone or they can basically be or available zone or they could be basically, you know, anywhere in the world. And we also offer multicloud capabilities, which I can get into later. >>Let's talk about the performance side. I know I was speaking with some Amazon folks every year it's the same story. They're really working on the physics, they're getting the chips, they wanna squeeze as much energy out of that. I've never met a developer that said they wanna run their workload on a slower platform or slower hardware. We know said no developer, right? No one wants to do that. >>Correct. >>So you guys have a lot of experience tuning in with Graviton instances, we're seeing a lot more AWS EC two instances, we're seeing a lot more kind of integrated end to end stories. Data is now security, it's tied into data stacks or data modern kind of data hybrid stack. A lot going on around the hardware performance specialization, the role of data, kind of a modern data stack emerging. What, what's your thoughts on the that that Yeah, >>I, I think if you had asked me, you know, when the cloud started going vogue, like you know, the, you know, the, the later part of the last decade and told me, you know, sitting here 12, 15 years later, would you know, would we be talking about, you know, chip processing speeds? I'd probably thought, nah, we would've moved on by then. But what's really clear is that customers, to your point, customers care about performance, they care about price performance, right? So AWS's investments in Graviton, we have actually deployed a significant portion of our at fleet on Amazon now runs on Graviton. You know, they've built other chip sets like train and, and inferential for like, you know, training models and running inferences. They're doing things like Nitro. And so what that really speaks to is that the cloud providers are focusing on the price performance of their, as you call it, their primitives and their infrastructure and the infrastructure layer that are still very, very important. >>And, and you know, if you look at their revenue, about 60 to 70% of the revenue comes from that pure infrastructure. So to your point, they can't offer a second class solution and still win. So given that now they're seeing a lot of competition from Azure, Azure's building their own chip sets, Google's already obviously doing that and and building specialized chip sets for machine learning. You're seeing these cloud providers compete. So they have to really compete to make their platform the most performant, the most price competitive in the marketplace. Which gives us a great platform to build on to enable developers to build these incredibly highly performant applications that customers are now demand. >>I think that's a really great point. I mean, you know, it's so funny Dave, because you know, I remember those, we don't talk speeds and feeds anymore. We're not talking about boxes. I mean that's old kind of school thinking because it was a data center mentality, speeds and feeds and that was super important. But we're kind of coming back to that in the cloud now in distributed architecture, as you put your platforms out there for developers, you have to run fast. You gotta, you can't give the developer subpar or any kind of performance that's, they'll, they'll go somewhere else. I mean that's the reality of what developers, no one, again, no one says I wanna go on the slower platform unless it's some sort of policy based on price or some sort of thing. But, but for the most part it's gotta run fast. So you got the tail of two clouds going on here, you got Amazon classic ias, keep making it faster under the hood. >>And then you got the new abstraction layers of the higher level services. That's where you guys are bridging this new, new generational shift where it's like, hey, you know what? I can go, I can run a headless application, I can run a SAS app that's refactored with data. So you've seen a lot more innovation with developers, you know, running stuff in, in the C I C D pipeline that was once it, and you're seeing security and data operations kind of emerging as a structural change of how companies are, are are transforming on the business side. What's your reaction to that business transformation and the role of the developer? >>Right, so I mean I have to obviously give amazing kudos to the, you know, to AWS and the Amazon team for what they've built. Obviously they're the ones who kind of created the cloud industry and they continue to push the innovation in the space. I mean today they have over 300 services and you know, obviously, you know, no star today is building anything not on the cloud because they have so many building blocks to start with. But what we though have found from our talking to our customers is that in some ways there is still, you know, the onus is on the customer to figure out which building block to use to be able to stitch together the applications and solutions they wanna build. And what we have done is taken essentially an opinionated point of view and said we will enable you to do that. >>You know, using one data model. You know, Amazon today offers I think 17 or 18 different types of databases. We don't think like, you know, having a tool for every job makes sense because over time the tax and cost of learning, managing and supporting those different applications just don't make a lot of sense or just become cost prohibitive. And so we think offering one data model, one, you know, elegant user experience, you know, one way to address the broadest set of of use cases is that we think is a better way. But clearly customers have choice. They can use Amazon's primitives and those second layer services as you as you described, or they can use us. Unfortunately we've seen a lot of customers come to us with our approach and so does Amazon. And I have to give obviously again kudos and Amazon is very customer obsessed and so we have a great relationship with them, both technically in terms of the product integrations we do as well as working with 'em in the field, you know, on joint customer opportunities. >>Speaking of, while you mentioned that, I wanna just ask you, how is that marketplace relationship going with aws? Some of the partners are really seeing great economic and joint selling or them selling your, your stuff. So there's a real revenue pop there in that religion. Can you comment on that? >>So we had been working the partner in the marketplace for many years now, more from a field point of view where customers could leverage their existing commitments to AWS and leverage essentially, you know, using Atlas and applying in an atlas towards their commits. There was also some sales incentives for people in the field to basically work together so that, you know, everyone won should we collectively win a customer? What we recently announced is as pay as you Go initiative, where literally a customer on the Amazon marketplace can basically turn up, you know, an Alice instance with no commitment. So it's so easy. So we're just pushing the envelope to just reduce the friction for people to use Atlas on aws. And it's working really very well. The uptake has been been very strong and and we feel like we're just getting started because we're so excited about the results we're >>Seeing. You know, one of the things that's kind of not core in the keynote theme, but I think it's underlying message is clear in the industry, is the developer productivity. You said making things easy is a big deal, self-service, getting in and trying, these are what developer friendly tools are like and platform. So I have to ask you, cuz this comes up a lot in our kind of business conversation, is, is if you take digital transformation concept to its completion, assuming now you know, as a thought exercise, you completely transform a company with technology that's, that is the business transformation outcome. Take it to completion. What does that look like? I mean, if you go there you'd say, okay, the company is the app, the company is the data, it's not a department serving the business, it's the business. And so I think this is kind of what we're seeing as the next big mountain climb, which is companies that do transform there, they are technology companies, they're not a department like it. So I think a lot of companies are kind of saying, wait a minute, why would we have a department? It should be the company. What's your your your view on this because this >>Yeah, so I I've had the for good fortune of being able to talk to thousand customers all over the world. And you know, one thing John, they never tell me, they never tell me that they're innovating too quickly. In fact, they always tell me the reverse. They tell me all the obstacles and impediments they have to be able to be able to be able to move fast. So one of the reasons they gravitate to MongoDB is just the speed that they wish they can build applications to, to your point, developer productivity. And by definition, developer productivity is a proxy for innovation. The faster you can make your developers, you know, move, the faster they can push out code, the faster they can iterate and build new solutions or add more capabilities on the existing applications, the faster you can innovate either to, again, seize new opportunities or to respond to new threats in your business. >>And so that resonates with every C level executive. And to your point, the developers not some side hustle that they kind of think about once in a while. It's core to the business. So developers have amassed enormous amount of power and influence. You know, their, their, their engineering teams are front and center in terms of how they think about building capabilities and and building their business. And that's also obviously enabled, you know, to your point, every software company, every company's not becoming a software company because it all starts with softwares, software enables, defines or creates almost every company's value proposition. >>You know, it makes me smile because I love operating systems as one of my hobbies in college was, you know, systems programming and I remember those network kind of like the operating systems, the cloud. So, you know, everything's got specialized capabilities and that's a big theme here at Reinvent. If you look at the announcements Monday night with Peter DeSantis, you got, you got new instances, new chips. So this whole engine kind of specialized component is like an engine. You got a core and you got other subsystems. This is gonna be an integral part of how companies architect their platform or you know, Adam calls it the landing zone or whatever they wanna call it. But you gotta start seeing a new architectural thinking for companies. What's your, can you share your experience on how companies should look at this opportunity as a plethora of more goodness on the hardware? On hardware, but like chips and instances? Cause now you can mix and match. You've got, you've got, you got everything you need to kind of not roll your own but like really build foundational high performance capabilities. >>Yeah, so I I, so I think this is where I think Amazon is really enabling all companies, including, you know, companies like Mon db, you know, push the envelope and innovation. So for example, you know, the, the next big hurdle for us, I think we've seen two big platform shifts over the last 15 years of platform shifts, you know, to mobile and the platform shift to cloud. I believe the next big platform shift is going from dumb apps to smart apps, which you're building in, you know, machine learning and you know, AI and just very sophisticated automation. And when you start automating human decision making, rather than, you know, looking at a dashboard and saying, okay, I see the data now, now I have to do this. You can automate that into your applications and make your applications leveraging real time data become that much more smart. And that ultimately then becomes a developer challenge. And so we feel really good about our position in taking advantage of those next big trends and software leveraging the price performance curves that, you know, Amazon continues to push in terms of their hardware performance, networking performance, you know, you know, price, performance and storage to build those next generation of modern applications. >>Okay, so let me get this straight. You have next generation intelligent smart apps and you have AI generative solutions coming out around the corner. This is like pretty good position for Mongo to be in with data. I mean, this is what you do, you're in that exactly of the action. What's it like? I mean, you must be like trying to shake the world and wake up. The world's starting to wake up now through this. So what's, what's it like? >>Well, I mean we're really excited and bullish about the future. We think that we're well positioned because we know as to your point, you know, we have amassed amazing amount of developer mindshare. We are the most popular modern data platform out there in the world. There's developers in almost every corner of the planet using us to do something. And to your point, leveraging data and these advances in machine learning ai. And we think the more AI becomes democratized, not, you know, done by a bunch of data scientists sitting in some corner office, but essentially enabling developers to have the tools to build these very, very sophisticated, smart applications will, you know, will position as well. So that's, you know, obviously gonna be a focus for us over the, frankly, I think this is gonna be like a 10 year, 10 15 year run and we're just getting started in this whole >>Area. I think you guys are really well positioned. I think that's a great point. And Adam mentioned to me and, and Mike interviewed, he said on stage talk about it, the role of a data analyst kind of goes away. Everyone's a data analyst, right? You'll still see specialization on, on core data engineering, which is kind of like an SRE role for data. So data ops and data as code is a big deal making data applications. So again, exciting times and you guys are well positioned. If you had to bumper sticker the event this week here at Reinvent, what would you, how would you categorize this this point in time? I mean, Adam's great leader, he is gonna help educate customers how to use technology to, for business advantage and transformation. You know, Andy did a great job making technology great and innovative and setting the table, Adam's gotta bring it to the enterprises and businesses. So it's gonna be an interesting point in time we're in now. What, how would you categorize this year's reinvent, >>Right? I think the, the, the tech world is pivoting towards what I'd call rationalization or cost optimization. I think people obviously in, you know, the last 10 years have, you know, it's all about speed, speed, speed. And I think people still value speed, but they wanna do it at some sort of predictable cost model. And I think you're gonna see a lot more focus around cost and cost optimization. That's where we think having one platform is by definition of vendor consolidation way for people to cut costs so that they can basically, you know, still move fast but don't have to incur the tax of using a whole bunch of different point tools. And so we think we're well positioned. So the bumper sticker I think about is essentially, you know, do more for less with MongoDB. >>Yeah. And the developers on the front lines. Great stuff. You guys are great partner, a top partner at AWS and great reflection on, on where you guys been, but really where you are now and great opportunity. David Didier, thank you so much for spending the time and it's been great following Mongo and the continued rise of, of developers of the on the front lines really driving the business and that, and they are, I know, driving the business, so, and I think they're gonna continue Smart apps, intelligent apps, ai, generative apps are coming. I mean this is real. >>Thanks John. It's great speaking with >>You. Yeah, thanks. Thanks so much. Okay.

(upbeat music) >> Hello everyone, welcome to this CUBE Showcase, accelerating business transformation with VMware Cloud on AWS. It's a solution innovation conversation with two great guests, Fred Wurden, VP of Commercial Services at AWS and Narayan Bharadwaj, who's the VP and General Manager of Cloud Solutions at VMware. Gentlemen, thanks for joining me on the showcase. >> Great to be here. >> Great. Thanks for having us on. It's a great topic. >> We've been covering this VMware cloud on AWS since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. What's this mean? And the press were not really on board with the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for AWS and it continues two years later and I want to just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to re:Invent, which is only a couple weeks away Feels like tomorrow. But as we prepare, a lot going on. Where are we with the evolution of the solution? >> I mean, first thing I want to say is October 2016 was a seminal moment in the history of IT. When Pat Gelsinger and Andy Jassy came together to announce this. And I think John, you were there at the time I was there. It was a great, great moment. We launched the solution in 2017 year after that at VMworld, back when we called it VMworld. I think we have gone from strength to strength. One of the things that has really mattered to us is we've learned from AWS also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we built a service offering now five years old. Pretty remarkable journey. In the first years we tried to get across all the regions, that was a big focus because there was so much demand for it. In the second year, we started going really on enterprise great features. We invented this pretty awesome feature called Stretched Clusters, where you could stretch a vSphere cluster using vSAN and NSX-T across to AZs in the same region. Pretty phenomenal four nines of availability that applications started to get with that particular feature. And we kept moving forward, all kinds of integration with AWS Direct Connect, Transit Gateways with our own advanced networking capabilities. Along the way, Disaster Recovery, we punched out two new services just focused on that. And then more recently we launched our Outposts partnership. We were up on stage at re:Invent, again, with Pat and Andy announcing AWS Outposts and the VMware flavor of that, VMware Cloud and AWS Outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >> That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And this has been the theme for AWS, man, since I can remember from day one, Fred. You guys do the heavy lifting as you always say for the customers. Here, VMware comes on board. Takes advantage of the AWS and just doesn't miss a beat. Continues to move their workloads that everyone's using, vSphere, and these are big workloads on AWS. What's the AWS perspective on this? How do you see it? >> Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's evolving quickly and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the customers. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and responding to what customers want. So pretty excited about just seeing the transformation and the speed that which customers can move to while at VMC. >> That's a great value proposition. We've been talking about that in context to anyone building on top of the cloud. They can have their own supercloud, as we call it, if you take advantage of all the CapEx and investment Amazon's made and AWS has made and continues to make in performance IaaS and PaaS, all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options in the market? What makes it different? What's the combination? You mentioned jointly engineered. What are some of the key differentiators of the service compared to others? >> Yeah. I think one of the key things Fred talked about is this jointly engineered notion. Right from day one we were the early adopters of the AWS Nitro platform. The reinvention of EC2 back five years ago. And so we have been having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software-defined data center, compute storage networking on EC2, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally on AWS EC2 global regions. Now the other thing that's a real differentiator for us, what customers tell us about is this whole notion of a managed service. And this was somewhat new to VMware. But we took away the pain of this undifferentiated heavy lifting where customers had to provision rack stack hardware, configure the software on top, and then upgrade the software and the security patches on top. So we took away all of that pain as customers transitioned to VMware cloud in AWS. In fact, my favorite story from last year when we were all going through the Log4j debacle. Industry was just going through that. Favorite proof point from customers was before they could even race this issue to us, we sent them a notification saying, we already patched all of your systems, no action from you. The customers were super thrilled. I mean, these are large banks. Many other customers around the world were super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >> Narayan, that's a great point. The whole managed service piece brings up the security. You kind of teasing at it, but there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. Fred, we were commenting before we came on camera more bits than ever before and at the physics layer too, as well as the software. So you never know when there's going to be a zero-day vulnerability out there. It happens. We saw one with Fortinet this week. This came out of the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me, we see the value when we talk to customers on theCUBE about this. It was a real easy understanding of what the cloud means to them with VMware now with the AWS. But the question that comes up that we want to get more clarity on is how do you guys handle support together? >> Well, what's interesting about this is that it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like SAP, we'll go end-to-end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where we're improving reliability in as a first order of principle between both companies. So from availability and reliability standpoint, it's top of mind and no matter where the particular item might land, we're going to go help the customer resolve that. It works really well. >> On the VMware side, what's been the feedback there? What are some of the updates? >> Yeah, I think, look, I mean, VMware owns and operates the service, but we work phenomenal backend relationship with AWS. Customers call VMware for the service or any issues. And then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The key management that we jointly do. All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution, do complex things like cloud migration, which is much, much easier with the VMware Cloud in AWS. We're presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >> You had mentioned, I've got list here of some of the innovations. You mentioned the stretch clustering, getting the geos working, advanced network, Disaster Recovery, FedRAMP, public sector certifications, Outposts. All good, you guys are checking the boxes every year. You got a good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in? What's on the list this year? What items will be next year? How do you see the new things, the list of accomplishments? People want to know what's next. They don't want to see stagnant growth here. They want to see more action as cloud continues to scale and modern applications cloud native. You're seeing more and more containers, more and more CI/CD pipelining with modern apps, put more pressure on the system. What's new? What's the new innovations? >> Absolutely. And I think as a five year old service offering, innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explore. First of all, our new platform i4i.metal. It's isolate based. It's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and AWS at this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally and separate that from compute. So two different storage offerings there. One is with AWS FSx with NetApp ONTAP, which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well. And the second storage offering called VMware Cloud Flex Storage. VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware Cloud Flex Compute where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware Cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the vCPU memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that we are launching in the market this year. And then last but not least, top of ransomware. Of course it's a hot topic in the industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware Cloud DR solution. A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Northstar. Our ability to have layer four through layer seven, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers is sort at the heart of our (faintly speaking). >> The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better faster, networking more options there. The Flex Compute is interesting. If you don't mind me getting a quick clarification, could you explain the resource-defined versus hardware-defined? Because this is what we had saw at Explore coming out, that notion of resource-defined versus hardware-defined. What does that mean? >> Yeah, I mean I think we have been super successful in this hardware-defined notion. We we're scaling by the hardware unit that we present as software-defined data centers. And so that's been super successful. But customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally. Lower the cost even more. And so this is the part where resource-defined starts to be very, very interesting as a way to think about, here's my bag of resources exactly based on what the customers request before fiber machines, five containers. It's size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. That's a whole different service offering that adds value and customers are comfortable. They can go from one to the other. They can go back to that host based model if they so choose to. And there's a jump off point across these two different economic models. >> It's cloud flexibility right there. I like the name. Fred, let's get into some of the examples of customers, if you don't mind, let's get into some of the, we have some time. I want to unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on theCUBE is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like feels great. It's just like we're running VMware on AWS and then they start consuming higher level services. That adoption next level happens and because it's in the cloud. So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple use cases? >> Sure. Well, there's a couple. One, it's pretty interesting that like you said, as there's more and more bits, you need better and better hardware and networking. And we're super excited about the i4 and the capabilities there in terms of doubling and or tripling what we're doing around lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanzu or with any other container and or services within AWS. So there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is allowed to then consume and use things, for example, with Textract or any other really cool service that has monthly and quarterly innovations. So there's things that you just could not do before that are coming out and saving customers money and building innovative applications on top of their current app base in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too many here. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >> Narayan, what's your perspective from the VMware side? 'Cause you guys have now a lot of headroom to offer customers with Amazon's higher level services and or whatever's homegrown where it's being rolled out 'cause you now have a lot of hybrid too. So what's your take on what's happening in with customers? >> I mean, it's been phenomenal. The customer adoption of this and banks and many other highly sensitive verticals are running production-grade applications, tier one applications on the service over the last five years. And so I have a couple of really good examples. S&P Global is one of my favorite examples. Large bank, they merge with IHS Markit, big conglomeration now. Both customers were using VMware Cloud and AWS in different ways. And with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated 1000 workloads to VMware Cloud and AWS in just six weeks. Pretty phenomenal if you think about everything that goes into a cloud migration process, people process technology. And the beauty of the technology going from VMware point A to VMware point B. The lowest cost, lowest risk approach to adopting VMware Cloud and AWS. So that's one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe, but constantly entering new markets with a limited number of regions and progressing our roadmap. >> It's great to see. I mean, the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. Congratulations. >> One of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're seeing those benefits. If you're running really inefficiently in your own data center, that is not a great use of power. So the actual calculators and the benefits to these workloads are pretty phenomenal just in being more green, which I like. We just all need to do our part there and this is a big part of it here. >> It's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issue is another one. You see that constraints. I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security. I mean, I remember interviewing Steven Schmidt with that AWS and many years ago, this is like 2013 and at that time people were saying, the cloud's not secure. And he's like, listen, it's more secure in the cloud on-premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot, the stay current on the isolation there is hard. So I think the security and supply chain, Fred, is another one. Do you agree? >> I absolutely agree. It's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them more efficiently. And then like you said on the security point, security is job one. It is the only P1. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >> And Narayan, your point earlier about the managed service patching and being on top of things is really going to get better. All right, final question. I really want to thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I want to end with a curve ball and put you eyes on the spot. We're talking about a new modern shift. We're seeing another inflection point. We've been documenting it. It's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and innovation in the infrastructure side. So the question is for you guys each to answer is, what's the same and what's different in today's market? So it's like we want more of the same here, but also things have changed radically and better here. What's changed for the better and what's still the same thing hanging around that people are focused on? Can you share your perspective? >> I'll tackle it. Businesses are complex and they're often unique, that's the same. What's changed is how fast you can innovate. The ability to combine managed services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about, that's elastic. You could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a rate that most people can't even comprehend and understand the set of services that are available to them. It's really fascinating to see what a one pizza team of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only going to continue to accelerate that. That's my take, Narayan. >> You got a lot of platform to compete on. With Amazon, you got a lot to build on. Narayan, your side. What's your answer to that question? >> I think we are seeing a lot of innovation with new applications that customers are constantly (faintly speaking). I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly build on the agility that developers desire and build all the security and the pipelines to energize that production quickly and efficiently. I think we are seeing, we are at the very start of that sort of journey. Of course, we have invested in Kubernetes, the means to an end, but we're so much more beyond that's happening in industry and I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >> Well, gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on solving these complexities with distractions, whether it's higher level services with large scale infrastructure. At your fingertips, infrastructure as code, infrastructure to be provisioned, serverless, all the good stuff happen and Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator again, being a cloud operator and developer. So the developer ops is kind of, DevOps is changing too. So all for the better. Thank you for spending the time and we're seeing again that traction with the VMware customer base and AWS getting along great together. So thanks for sharing your perspectives. >> We appreciate it. Thank you so much. >> Thank you John. >> This is theCUBE and AWS VMware showcase accelerating business transformation, VMware Cloud on AWS. Jointly engineered solution bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Furrier, your host. Thanks for watching. (gentle music)

>>Hi everyone. Welcome to the Cube special presentation here in Palo Alto, California. I'm John Foer, host of the Cube. We've got two great guests, one for calling in from Germany, our videoing in from Germany, one from Maryland. We've got VMware and aws. This is the customer successes with VMware cloud on AWS showcase, accelerating business transformation here in the showcase with Samir Candu Worldwide. VMware strategic alliance solution, architect leader with AWS Samir. Great to have you and Daniel Re Myer, principal architect global AWS synergy at VMware. Guys, you guys are, are working together. You're the key players in the re relationship as it rolls out and continues to grow. So welcome to the cube. >>Thank you. Greatly appreciate it. >>Great to have you guys both on, As you know, we've been covering this since 2016 when Pat Geling, then CEO and then then CEO AWS at Andy Chasy did this. It kind of got people by surprise, but it really kind of cleaned out the positioning in the enterprise for the success. OFM workloads in the cloud. VMware's had great success with it since, and you guys have the great partnerships. So this has been like a really strategic, successful partnership. Where are we right now? You know, years later we got this whole inflection point coming. You're starting to see, you know, this idea of higher level services, more performance are coming in at the infrastructure side. More automation, more serverless, I mean, and a, I mean it's just getting better and better every year in the cloud. Kinda a whole nother level. Where are we, Samir? Let's start with you on, on the relationship. >>Yeah, totally. So I mean, there's several things to keep in mind, right? So in 2016, right, that's when the partnership between AWS and VMware was announced, and then less than a year later, that's when we officially launched VMware cloud on aws. Years later, we've been driving innovation, working with our customers, jointly engineering this between AWS and VMware day in, day out. As far as advancing VMware cloud on aws. You know, even if you look at the innovation that takes place with a solution, things have modernized, things have changed, there's been advancements, you know, whether it's security focus, whether it's platform focus, whether it's networking focus, there's been modifications along the way, even storage, right? More recently, one of the things to keep in mind is we're looking to deliver value to our customers together. These are our joint customers. So there's hundreds of VMware and AWS engineers working together on this solution. >>And then factor in even our sales teams, right? We have VMware and AWS sales teams interacting with each other on a constant daily basis. We're working together with our customers at the end of the day too. Then we're looking to even offer and develop jointly engineered solutions specific to VMware cloud on aws, and even with VMware's, other platforms as well. Then the other thing comes down to is where we have dedicated teams around this at both AWS and VMware. So even from solutions architects, even to our sales specialists, even to our account teams, even to specific engineering teams within the organizations, they all come together to drive this innovation forward with VMware cloud on AWS and the jointly engineered solution partnership as well. And then I think one of the key things to keep in mind comes down to we have nearly 600 channel partners that have achieved VMware cloud on AWS service competency. So think about it from the standpoint there's 300 certified or validated technology solutions, they're now available to our customers. So that's even innovation right off the top as well. >>Great stuff. Daniel, I wanna get to you in a second. Upon this principal architect position you have in your title, you're the global a synergy person. Synergy means bringing things together, making it work. Take us through the architecture, because we heard a lot of folks at VMware explore this year, formerly world, talking about how the, the workloads on it has been completely transforming into cloud and hybrid, right? This is where the action is. Where are you? Is your customers taking advantage of that new shift? You got AI ops, you got it. Ops changing a lot, you got a lot more automation edges right around the corner. This is like a complete transformation from where we were just five years ago. What's your thoughts on the >>Relationship? So at at, at first, I would like to emphasize that our collaboration is not just that we have dedicated teams to help our customers get the most and the best benefits out of VMware cloud on aws. We are also enabling US mutually. So AWS learns from us about the VMware technology, where VMware people learn about the AWS technology. We are also enabling our channel partners and we are working together on customer projects. So we have regular assembled globally and also virtually on Slack and the usual suspect tools working together and listening to customers, that's, that's very important. Asking our customers where are their needs? And we are driving the solution into the direction that our customers get the, the best benefits out of VMware cloud on aws. And over the time we, we really have involved the solution. As Samia mentioned, we just added additional storage solutions to VMware cloud on aws. We now have three different instance types that cover a broad range of, of workload. So for example, we just added the I four I host, which is ideally for workloads that require a lot of CPU power, such as you mentioned it, AI workloads. >>Yeah. So I wanna guess just specifically on the customer journey and their transformation. You know, we've been reporting on Silicon angle in the queue in the past couple weeks in a big way that the OPS teams are now the new devs, right? I mean that sounds OP a little bit weird, but operation IT operations is now part of the, a lot more data ops, security writing code composing, you know, with open source, a lot of great things are changing. Can you share specifically what customers are looking for when you say, as you guys come in and assess their needs, what are they doing? What are some of the things that they're doing with VMware on AWS specifically that's a little bit different? Can you share some of and highlights there? >>That, that's a great point because originally VMware and AWS came from very different directions when it comes to speaking people at customers. So for example, aws very developer focused, whereas VMware has a very great footprint in the IT ops area. And usually these are very different, very different teams, groups, different cultures, but it's, it's getting together. However, we always try to address the customers, right? There are customers that want to build up a new application from the scratch and build resiliency, availability, recoverability, scalability into the application. But there are still a lot of customers that say, well we don't have all of the skills to redevelop everything to refactor an application to make it highly available. So we want to have all of that as a service, recoverability as a service, scalability as a service. We want to have this from the infrastructure. That was one of the unique selling points for VMware on premise and now we are bringing this into the cloud. >>Samir, talk about your perspective. I wanna get your thoughts, and not to take a tangent, but we had covered the AWS remar of, actually it was Amazon res machine learning automation, robotics and space. It was really kinda the confluence of industrial IOT software physical. And so when you look at like the IT operations piece becoming more software, you're seeing things about automation, but the skill gap is huge. So you're seeing low code, no code automation, you know, Hey Alexa, deploy a Kubernetes cluster. Yeah, I mean, I mean that's coming, right? So we're seeing this kind of operating automation meets higher level services meets workloads. Can you unpack that and share your opinion on, on what you see there from an Amazon perspective and how it relates to this? >>Yeah, totally. Right. And you know, look at it from the point of view where we said this is a jointly engineered solution, but it's not migrating to one option or the other option, right? It's more or less together. So even with VMware cloud on aws, yes it is utilizing AWS infrastructure, but your environment is connected to that AWS VPC in your AWS account. So if you wanna leverage any of the native AWS services, so any of the 200 plus AWS services, you have that option to do so. So that's gonna give you that power to do certain things, such as, for example, like how you mentioned with iot, even with utilizing Alexa or if there's any other service that you wanna utilize, that's the joining point between both of the offerings. Right off the top though, with digital transformation, right? You, you have to think about where it's not just about the technology, right? There's also where you want to drive growth in the underlying technology. Even in your business leaders are looking to reinvent their business. They're looking to take different steps as far as pursuing a new strategy. Maybe it's a process, maybe it's with the people, the culture, like how you said before, where people are coming in from a different background, right? They may not be used to the cloud, they may not be used to AWS services, but now you have that capability to mesh them together. Okay. Then also, Oh, >>Go ahead, finish >>Your thought. No, no, I was gonna say, what it also comes down to is you need to think about the operating model too, where it is a shift, right? Especially for that VS four admin that's used to their on-premises at environment. Now with VMware cloud on aws, you have that ability to leverage a cloud, but the investment that you made and certain things as far as automation, even with monitoring, even with logging, yeah. You still have that methodology where you can utilize that in VMware cloud on AWS two. >>Danielle, I wanna get your thoughts on this because at at explore and, and, and after the event, now as we prep for Cuban and reinvent coming up the big AWS show, I had a couple conversations with a lot of the VMware customers and operators and it's like hundreds of thousands of, of, of, of users and millions of people talking about and and peaked on VM we're interested in v VMware. The common thread was one's one, one person said, I'm trying to figure out where I'm gonna put my career in the next 10 to 15 years. And they've been very comfortable with VMware in the past, very loyal, and they're kind of talking about, I'm gonna be the next cloud, but there's no like role yet architects, is it Solution architect sre. So you're starting to see the psychology of the operators who now are gonna try to make these career decisions, like how, what am I gonna work on? And it's, and that was kind of fuzzy, but I wanna get your thoughts. How would you talk to that persona about the future of VMware on, say, cloud for instance? What should they be thinking about? What's the opportunity and what's gonna happen? >>So digital transformation definitely is a huge change for many organizations and leaders are perfectly aware of what that means. And that also means in, in to to some extent, concerns with your existing employees. Concerns about do I have to relearn everything? Do I have to acquire new skills? And, and trainings is everything worthless I learned over the last 15 years of my career? And the, the answer is to make digital transformation a success. We need not just to talk about technology, but also about process people and culture. And this is where VMware really can help because if you are applying VMware cloud on a, on AWS to your infrastructure, to your existing on-premise infrastructure, you do not need to change many things. You can use the same tools and skills, you can manage your virtual machines as you did in your on-premise environment. You can use the same managing and monitoring tools. If you have written, and many customers did this, if you have developed hundreds of, of scripts that automate tasks and if you know how to troubleshoot things, then you can use all of that in VMware cloud on aws. And that gives not just leaders, but but also the architects at customers, the operators at customers, the confidence in, in such a complex project, >>The consistency, very key point, gives them the confidence to go and, and then now that once they're confident they can start committing themselves to new things. Samir, you're reacting to this because you know, on your side you've got higher level services, you got more performance at the hardware level. I mean, lot improvement. So, okay, nothing's changed. I can still run my job now I got goodness on the other side. What's the upside? What's in it for the, for the, for the customer there? >>Yeah, so I think what it comes down to is they've already been so used to or entrenched with that VMware admin mentality, right? But now extending that to the cloud, that's where now you have that bridge between VMware cloud on AWS to bridge that VMware knowledge with that AWS knowledge. So I will look at it from the point of view where now one has that capability and that ability to just learn about the cloud, but if they're comfortable with certain aspects, no one's saying you have to change anything. You can still leverage that, right? But now if you wanna utilize any other AWS service in conjunction with that VM that resides maybe on premises or even in VMware cloud on aws, you have that option to do so. So think about it where you have that ability to be someone who's curious and wants to learn. And then if you wanna expand on the skills, you certainly have that capability to do so. >>Great stuff. I love, love that. Now that we're peeking behind the curtain here, I'd love to have you guys explain, cuz people wanna know what's goes on in behind the scenes. How does innovation get happen? How does it happen with the relationship? Can you take us through a day in the life of kind of what goes on to make innovation happen with the joint partnership? You guys just have a zoom meeting, Do you guys fly out, you write go do you ship thing? I mean I'm making it up, but you get the idea, what's the, what's, how does it work? What's going on behind the scenes? >>So we hope to get more frequently together in person, but of course we had some difficulties over the last two to three years. So we are very used to zoom conferences and and Slack meetings. You always have to have the time difference in mind if we are working globally together. But what we try, for example, we have reg regular assembled now also in person geo based. So for emia, for the Americas, for aj. And we are bringing up interesting customer situations, architectural bits and pieces together. We are discussing it always to share and to contribute to our community. >>What's interesting, you know, as, as events are coming back to here, before you get, you weigh in, I'll comment, as the cube's been going back out to events, we are hearing comments like what, what pandemic we were more productive in the pandemic. I mean, developers know how to work remotely and they've been on all the tools there, but then they get in person, they're happy to see people, but there's no one's, no one's really missed the beat. I mean it seems to be very productive, you know, workflow, not a lot of disruption. More if anything, productivity gains. >>Agreed, right? I think one of the key things to keep in mind is, you know, even if you look at AWS's and even Amazon's leadership principles, right? Customer obsession, that's key. VMware is carrying that forward as well. Where we are working with our customers, like how Daniel said met earlier, right? We might have meetings at different time zones, maybe it's in person, maybe it's virtual, but together we're working to listen to our customers. You know, we're taking and capturing that feedback to drive innovation and VMware cloud on AWS as well. But one of the key things to keep in mind is yes, there have been, there has been the pandemic, we might have been disconnected to a certain extent, but together through technology we've been able to still communicate work with our customers. Even with VMware in between, with AWS and whatnot. We had that flexibility to innovate and continue that innovation. So even if you look at it from the point of view, right? VMware cloud on AWS outposts, that was something that customers have been asking for. We've been been able to leverage the feedback and then continue to drive innovation even around VMware cloud on AWS outposts. So even with the on premises environment, if you're looking to handle maybe data sovereignty or compliance needs, maybe you have low latency requirements, that's where certain advancements come into play, right? So the key thing is always to maintain that communication track. >>And our last segment we did here on the, on this showcase, we listed the accomplishments and they were pretty significant. I mean go, you got the global rollouts of the relationship. It's just really been interesting and, and people can reference that. We won't get into it here, but I will ask you guys to comment on, as you guys continue to evolve the relationship, what's in it for the customer? What can they expect next? Cuz again, I think right now we're in at a, an inflection point more than ever. What can people expect from the relationship and what's coming up with reinvent? Can you share a little bit of kind of what's coming down the pike? >>So one of the most important things we have announced this year, and we will continue to evolve into that direction, is independent scale of storage. That absolutely was one of the most important items customer asked us for over the last years. Whenever, whenever you are requiring additional storage to host your virtual machines, you usually in VMware cloud on aws, you have to add additional notes. Now we have three different note types with different ratios of compute, storage and memory. But if you only require additional storage, you always have to get also additional compute and memory and you have to pay. And now with two solutions which offer choice for the customers, like FS six one, NetApp onap, and VMware cloud Flex Storage, you now have two cost effective opportunities to add storage to your virtual machines. And that offers opportunities for other instance types maybe that don't have local storage. We are also very, very keen looking forward to announcements, exciting announcements at the upcoming events. >>Samir, what's your, what's your reaction take on the, on what's coming down on your side? >>Yeah, I think one of the key things to keep in mind is, you know, we're looking to help our customers be agile and even scale with their needs, right? So with VMware cloud on aws, that's one of the key things that comes to mind, right? There are gonna be announcements, innovations and whatnot with outcoming events. But together we're able to leverage that to advance VMware cloud on AWS to Daniel's point storage, for example, even with host offerings. And then even with decoupling storage from compute and memory, right now you have the flexibility where you can do all of that. So to look at it from the standpoint where now with 21 regions where we have VMware cloud on AWS available as well, where customers can utilize that as needed when needed, right? So it comes down to, you know, transformation will be there. Yes, there's gonna be maybe where workloads have to be adapted where they're utilizing certain AWS services, but you have that flexibility and option to do so. And I think with the continuing events that's gonna give us the options to even advance our own services together. >>Well you guys are in the middle of it, you're in the trenches, you're making things happen, you've got a team of people working together. My final question is really more of a kind of a current situation, kind of future evolutionary thing that you haven't seen this before. I wanna get both of your reaction to it. And we've been bringing this up in, in the open conversations on the cube is in the old days it was going back this generation, you had ecosystems, you had VMware had an ecosystem they did best, had an ecosystem. You know, we have a product, you have a product, biz dev deals happen, people sign relationships and they do business together and they, they sell to each other's products or do some stuff. Now it's more about architecture cuz we're now in a distributed large scale environment where the role of ecosystems are intertwining. >>And this, you guys are in the middle of two big ecosystems. You mentioned channel partners, you both have a lot of partners on both sides. They come together. So you have this now almost a three dimensional or multidimensional ecosystem, you know, interplay. What's your thoughts on this? And, and, and because it's about the architecture, integration is a value, not so much. Innovation is only, you gotta do innovation, but when you do innovation, you gotta integrate it, you gotta connect it. So what is, how do you guys see this as a, as an architectural thing, start to see more technical business deals? >>So we are, we are removing dependencies from individual ecosystems and from individual vendors. So a customer no longer has to decide for one vendor and then it is a very expensive and high effort project to move away from that vendor, which ties customers even, even closer to specific vendors. We are removing these obstacles. So with VMware cloud on aws moving to the cloud, firstly it's, it's not a dead end. If you decide at one point in time because of latency requirements or maybe it's some compliance requirements, you need to move back into on-premise. You can do this if you decide you want to stay with some of your services on premise and just run a couple of dedicated services in the cloud, you can do this and you can mana manage it through a single pane of glass. That's quite important. So cloud is no longer a dead and it's no longer a binary decision, whether it's on premise or the cloud. It it is the cloud. And the second thing is you can choose the best of both works, right? If you are migrating virtual machines that have been running in your on-premise environment to VMware cloud on aws, by the way, in a very, very fast cost effective and safe way, then you can enrich later on enrich these virtual machines with services that are offered by aws. More than 200 different services ranging from object based storage, load balancing and so on. So it's an endless, endless possibility. >>We, we call that super cloud in, in a, in a way that we be generically defining it where everyone's innovating, but yet there's some common services. But the differentiation comes from innovation where the lock in is the value, not some spec, right? Samir, this is gonna where cloud is right now, you guys are, are not commodity. Amazon's completely differentiating, but there's some commodity things. Having got storage, you got compute, but then you got now advances in all areas. But partners innovate with you on their terms. Absolutely. And everybody wins. >>Yeah. And a hundred percent agree with you. I think one of the key things, you know, as Daniel mentioned before, is where it it, it's a cross education where there might be someone who's more proficient on the cloud side with aws, maybe more proficient with the viewers technology, but then for partners, right? They bridge that gap as well where they come in and they might have a specific niche or expertise where their background, where they can help our customers go through that transformation. So then that comes down to, hey, maybe I don't know how to connect to the cloud. Maybe I don't know what the networking constructs are. Maybe I can leverage that partner. That's one aspect to go about it. Now maybe you migrated that workload to VMware cloud on aws. Maybe you wanna leverage any of the native AWS services or even just off the top 200 plus AWS services, right? But it comes down to that skill, right? So again, solutions architecture at the back of, back of the day, end of the day, what it comes down to is being able to utilize the best of both worlds. That's what we're giving our customers at the end of the >>Day. I mean, I just think it's, it's a, it's a refactoring and innovation opportunity at all levels. I think now more than ever, you can take advantage of each other's ecosystems and partners and technologies and change how things get done with keeping the consistency. I mean, Daniel, you nailed that, right? I mean, you don't have to do anything. You still run the fear, the way you working on it and now do new things. This is kind of a cultural shift. >>Yeah, absolutely. And if, if you look, not every, not every customer, not every organization has the resources to refactor and re-platform everything. And we gave, we give them a very simple and easy way to move workloads to the cloud. Simply run them and at the same time they can free up resources to develop new innovations and, and grow their business. >>Awesome. Samir, thank you for coming on. Danielle, thank you for coming to Germany, Octoberfest, I know it's evening over there, your weekend's here. And thank you for spending the time. Samir final give you the final word, AWS reinvents coming up. Preparing. We're gonna have an exclusive with Adam, but Fry, we do a curtain raise, a dual preview. What's coming down on your side with the relationship and what can we expect to hear about what you got going on at reinvent this year? The big show? >>Yeah, so I think, you know, Daniel hit upon some of the key points, but what I will say is we do have, for example, specific sessions, both that VMware's driving and then also that AWS is driving. We do have even where we have what I call a chalk talks. So I would say, and then even with workshops, right? So even with the customers, the attendees who are there, whatnot, if they're looking for to sit and listen to a session, yes that's there. But if they wanna be hands on, that is also there too. So personally for me as an IT background, you know, been in CIS admin world and whatnot, being hands on, that's one of the key things that I personally am looking forward. But I think that's one of the key ways just to learn and get familiar with the technology. Yeah, >>Reinvents an amazing show for the in person. You guys nail it every year. We'll have three sets this year at the cube. It's becoming popular. We more and more content. You guys got live streams going on, a lot of content, a lot of media, so thanks, thanks for sharing that. Samir Daniel, thank you for coming on on this part of the showcase episode of really the customer successes with VMware Cloud Ons, really accelerating business transformation withs and VMware. I'm John Fur with the cube, thanks for watching. Hello everyone. Welcome to this cube showcase, accelerating business transformation with VMware cloud on it's a solution innovation conversation with two great guests, Fred and VP of commercial services at aws and NA Ryan Bard, who's the VP and general manager of cloud solutions at VMware. Gentlemen, thanks for joining me on this showcase. >>Great to be here. >>Hey, thanks for having us on. It's a great topic. You know, we, we've been covering this VMware cloud on abus since, since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. It's what's this mean? And depress work were, we're kind of not really on board with kind of the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for a D and it continues two years later and I want just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to reinvent, which is only a couple weeks away, feels like tomorrow. But you know, as we prepare a lot going on, where are we with the evolution of the solution? >>I mean, first thing I wanna say is, you know, PBO 2016 was a someon moment and the history of it, right? When Pat Gelsinger and Andy Jessey came together to announce this and I think John, you were there at the time I was there, it was a great, great moment. We launched the solution in 2017, the year after that at VM Word back when we called it Word, I think we have gone from strength to strength. One of the things that has really mattered to us is we have learned froms also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we build a service offering now five years old, pretty remarkable journey. You know, in the first years we tried to get across all the regions, you know, that was a big focus because there was so much demand for it. >>In the second year we started going really on enterprise grade features. We invented this pretty awesome feature called Stretch clusters, where you could stretch a vSphere cluster using VSA and NSX across two AZs in the same region. Pretty phenomenal four nine s availability that applications start started to get with that particular feature. And we kept moving forward all kinds of integration with AWS direct connect transit gateways with our own advanced networking capabilities. You know, along the way, disaster recovery, we punched out two, two new services just focused on that. And then more recently we launched our outposts partnership. We were up on stage at Reinvent, again with Pat Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >>That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And, and this has kind of been the theme for AWS since I can remember from day one. Fred, you guys do the heavy lifting as as, as you always say for the customers here, VMware comes on board, takes advantage of the AWS and kind of just doesn't miss a beat, continues to move their workloads that everyone's using, you know, vSphere and these are, these are big workloads on aws. What's the AWS perspective on this? How do you see it? >>Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the, the skill set that they're familiar with and the advanced capabilities that they've been using on Preem and then overlay it on top of the AWS infrastructure that's, that's evolving quickly and, and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the, for the customer. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and, and responding to what customers want. So pretty, pretty excited about just seeing the transformation and the speed that which customers can move to bmc. Yeah, >>That's what great value publish. We've been talking about that in context too. Anyone building on top of the cloud, they can have their own supercloud as we call it. If you take advantage of all the CapEx and and investment Amazon's made and AWS has made and, and and continues to make in performance IAS and pass all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options on the market? What makes it different? What's the combination? You mentioned jointly engineered, what are some of the key differentiators of the service compared to others? >>Yeah, I think one of the key things Fred talked about is this jointly engineered notion right from day one. We were the earlier doctors of AWS Nitro platform, right? The reinvention of E two back five years ago. And so we have been, you know, having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software defined data center or compute storage networking on EC two, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally, right on aws EC two global regions. Now the other thing that's a real differentiator for us that customers tell us about is this whole notion of a managed service, right? And this was somewhat new to VMware, but we took away the pain of this undifferentiated heavy lifting where customers had to provision rack, stack hardware, configure the software on top, and then upgrade the software and the security batches on top. >>So we took, took away all of that pain as customers transitioned to VMware cloud and aws. In fact, my favorite story from last year when we were all going through the lock for j debacle industry was just going through that, right? Favorite proof point from customers was before they put even race this issue to us, we sent them a notification saying we already patched all of your systems, no action from you. The customers were super thrilled. I mean these are large banks, many other customers around the world, super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >>Nora, that's a great, so that's a great point. You know, the whole managed service piece brings up the security, you kind of teasing at it, but you know, there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. You know, Fred, we were commenting before we came on camera, there's more bits than ever before and, and at at the physics layer too, as well as the software. So you never know when there's gonna be a zero day vulnerability out there. Just, it happens. We saw one with fornet this week, this came outta the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me we see the value when we, when we talk to customers on the cube about this, you know, it was a real, real easy understanding of how, what the cloud means to them with VMware now with the aws. But the question that comes up that we wanna get more clarity on is how do you guys handle support together? >>Well, what's interesting about this is that it's, it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like sap, we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where, where we're improving reliability in, in as a first order of, of principle between both companies. So from an availability and reliability standpoint, it's, it's top of mind and no matter where the particular item might land, we're gonna go help the customer resolve. That works really well >>On the VMware side. What's been the feedback there? What's the, what are some of the updates? >>Yeah, I think, look, I mean, VMware owns and operates the service, but we have a phenomenal backend relationship with aws. Customers call VMware for the service for any issues and, and then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The BASKE management that we jointly do, right? All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution. Do complex things like cloud migration, which is much, much easier with VMware cloud aws, you know, we are presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >>You know, you had mentioned, I've got a list here, some of the innovations the, you mentioned the stretch clustering, you know, getting the GOs working, Advanced network, disaster recovery, you know, fed, Fed ramp, public sector certifications, outposts, all good. You guys are checking the boxes every year. You got a good, good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in what's on the lists this year? What items will be next year? How do you see the, the new things, the list of accomplishments, people wanna know what's next. They don't wanna see stagnant growth here, they wanna see more action, you know, as as cloud kind of continues to scale and modern applications cloud native, you're seeing more and more containers, more and more, you know, more CF C I C D pipe pipelining with with modern apps, put more pressure on the system. What's new, what's the new innovations? >>Absolutely. And I think as a five yearold service offering innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explorer. First of all, our new platform i four I dot metal, it's isolate based, it's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and aws. At this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally, right? And you know, separate that from compute. So two different storage offerings there. One is with AWS Fsx, with NetApp on tap, which brings in our NetApp partnership as well into the equation and really get that NetApp based, really excited about this offering as well. >>And the second storage offering for VMware cloud Flex Storage, VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware cloud Flex Compute, where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the V C P memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that that we are launching in the market this year. And then last but not least, talk about ransomware. Of course it's a hot topic in industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware cloud DR solution. >>A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Knot star for ability to have layer flow through layer seven, you know, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers and sort of at the heart of our office, >>The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better, faster networking, more, more options there. The flex computes. Interesting. If you don't mind me getting a quick clarification, could you explain the Drew screen resource defined versus hardware defined? Because this is kind of what we had saw at Explore coming out, that notion of resource defined versus hardware defined. What's the, what does that mean? >>Yeah, I mean I think we have been super successful in this hardware defined notion. We we're scaling by the hardware unit that we present as software defined data centers, right? And so that's been super successful. But we, you know, customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally, right? Lower their costs even more. And so this is the part where resource defined starts to be very, very interesting as a way to think about, you know, here's my bag of resources exactly based on what the customers request for fiber machines, five containers, its size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. It's a whole different service offering that adds value and customers are comfortable. They can go from one to the other, they can go back to that post based model if they so choose to. And there's a jump off point across these two different economic models. >>It's kind of cloud of flexibility right there. I like the name Fred. Let's get into some of the examples of customers, if you don't mind. Let's get into some of the ex, we have some time. I wanna unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on the cube is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like, feels great. It's just like we're running VMware on AWS and then they would start consuming higher level services, kind of that adoption next level happens and because it it's in the cloud, so, So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started, and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple of use cases? >>Sure. There's a, well there's a couple. One, it's pretty interesting that, you know, like you said, as there's more and more bits you need better and better hardware and networking. And we're super excited about the I four and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on a, on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The, the options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanu or with any other container and or services within aws. >>So there's, there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is, is allowed to then consume and use things, for example, with tech extract or any other really cool service that has, you know, monthly and quarterly innovations. So there's things that you just can't, could not do before that are coming out and saving customers money and building innovative applications on top of their, their current app base in, in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too, too many here. Yeah. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >>Nora, what's your perspective from the VMware sy? So, you know, you guys have now a lot of headroom to offer customers with Amazon's, you know, higher level services and or whatever's homegrown where's being rolled out? Cuz you now have a lot of hybrid too, so, so what's your, what's your take on what, what's happening in with customers? >>I mean, it's been phenomenal, the, the customer adoption of this and you know, banks and many other highly sensitive verticals are running production grade applications, tier one applications on the service over the last five years. And so, you know, I have a couple of really good examples. S and p Global is one of my favorite examples. Large bank, they merge with IHS market, big sort of conglomeration. Now both customers were using VMware cloud and AWS in different ways. And with the, with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated thousand 1000 workloads to VMware cloud AWS in just six weeks. Pretty phenomenal. If you think about everything that goes into a cloud migration process, people process technology and the beauty of the technology going from VMware point A to VMware point B, the the lowest cost, lowest risk approach to adopting VMware, VMware cloud, and aws. So that's, you know, one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe that constantly entering new markets with the limited number of regions and progressing our roadmap there. >>Yeah, it's great to see, I mean the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. So congratulations. One >>Of other, one of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're, they're seeing those benefits. If you're running really inefficiently in your own data center, that is just a, not a great use of power. So the actual calculators and the benefits to these workloads is, are pretty phenomenal just in being more green, which I like. We just all need to do our part there. And, and this is a big part of it here. >>It's a huge, it's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issues. Another one you see that constrains, I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security, right? I mean, I remember interviewing Stephen Schmidt with that AWS and many years ago, this is like 2013, and you know, at that time people were saying the cloud's not secure. And he's like, listen, it's more secure in the cloud on premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot you gotta to stay current on, on the isolation there is is hard. So I think, I think the security and supply chain, Fred is, is another one. Do you agree? >>I I absolutely agree. It's, it's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and, and have the resources that are available and run them, run them more efficiently. Yeah, and then like you said on the security point, security is job one. It is, it is the only P one. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >>And naron your point earlier about the managed service patching and being on top of things, it's really gonna get better. All right, final question. I really wanna thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I wanna kind of end with kind of a curve ball and put you eyes on the spot. We're talking about a modern, a new modern shift. It's another, we're seeing another inflection point, we've been documenting it, it's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and, and innovation in the infrastructure side. So the question is for you guys each to answer is what's the same and what's different in today's market? So it's kind of like we want more of the same here, but also things have changed radically and better here. What are the, what's, what's changed for the better and where, what's still the same kind of thing hanging around that people are focused on? Can you share your perspective? >>I'll, I'll, I'll, I'll tackle it. You know, businesses are complex and they're often unique that that's the same. What's changed is how fast you can innovate. The ability to combine manage services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about that's elastic. You, you could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a, at a rate that most people can't even comprehend and understand the, the set of services that are available to them. It's really fascinating to see what a one pizza team of of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only gonna continue to accelerate that. That's my take. All right. >>You got a lot of platform to compete on with, got a lot to build on then you're Ryan, your side, What's your, what's your answer to that question? >>I think we are seeing a lot of innovation with new applications that customers are constant. I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly, you know, build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently. I think we, we are seeing, you know, we are at the very start of that sort of of journey. Of course we have invested in Kubernetes the means to an end, but there's so much more beyond that's happening in industry. And I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >>Yeah. Well gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on, you know, solving these complexities with distractions. Whether it's, you know, higher level services with large scale infrastructure at, at your fingertips. Infrastructures, code, infrastructure to be provisioned, serverless, all the good stuff happen in Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator, again, being a cloud operator and developer. So the developer ops is kind of, DevOps is kind of changing too. So all for the better. Thank you for spending the time and we're seeing again, that traction with the VMware customer base and of us getting, getting along great together. So thanks for sharing your perspectives, >>I appreciate it. Thank you so >>Much. Okay, thank you John. Okay, this is the Cube and AWS VMware showcase, accelerating business transformation. VMware cloud on aws, jointly engineered solution, bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Fur, your host. Thanks for watching. Hello everyone. Welcome to the special cube presentation of accelerating business transformation on vmc on aws. I'm John Furrier, host of the Cube. We have dawan director of global sales and go to market for VMware cloud on adb. This is a great showcase and should be a lot of fun. Ashish, thanks for coming on. >>Hi John. Thank you so much. >>So VMware cloud on AWS has been well documented as this big success for VMware and aws. As customers move their workloads into the cloud, IT operations of VMware customers has signaling a lot of change. This is changing the landscape globally is on cloud migration and beyond. What's your take on this? Can you open this up with the most important story around VMC on aws? >>Yes, John. The most important thing for our customers today is the how they can safely and swiftly move their ID infrastructure and applications through cloud. Now, VMware cloud AWS is a service that allows all vSphere based workloads to move to cloud safely, swiftly and reliably. Banks can move their core, core banking platforms, insurance companies move their core insurance platforms, telcos move their goss, bss, PLA platforms, government organizations are moving their citizen engagement platforms using VMC on aws because this is one platform that allows you to move it, move their VMware based platforms very fast. Migrations can happen in a matter of days instead of months. Extremely securely. It's a VMware manage service. It's very secure and highly reliably. It gets the, the reliability of the underlyings infrastructure along with it. So win-win from our customers perspective. >>You know, we reported on this big news in 2016 with Andy Chas, the, and Pat Geling at the time, a lot of people said it was a bad deal. It turned out to be a great deal because not only could VMware customers actually have a cloud migrate to the cloud, do it safely, which was their number one concern. They didn't want to have disruption to their operations, but also position themselves for what's beyond just shifting to the cloud. So I have to ask you, since you got the finger on the pulse here, what are we seeing in the market when it comes to migrating and modern modernizing in the cloud? Because that's the next step. They go to the cloud, you guys have done that, doing it, then they go, I gotta modernize, which means kind of upgrading or refactoring. What's your take on that? >>Yeah, absolutely. Look, the first step is to help our customers assess their infrastructure and licensing and entire ID operations. Once we've done the assessment, we then create their migration plans. A lot of our customers are at that inflection point. They're, they're looking at their real estate, ex data center, real estate. They're looking at their contracts with colocation vendors. They really want to exit their data centers, right? And VMware cloud and AWS is a perfect solution for customers who wanna exit their data centers, migrate these applications onto the AWS platform using VMC on aws, get rid of additional real estate overheads, power overheads, be socially and environmentally conscious by doing that as well, right? So that's the migration story, but to your point, it doesn't end there, right? Modernization is a critical aspect of the entire customer journey as as well customers, once they've migrated their ID applications and infrastructure on cloud get access to all the modernization services that AWS has. They can correct easily to our data lake services, to our AIML services, to custom databases, right? They can decide which applications they want to keep and which applications they want to refactor. They want to take decisions on containerization, make decisions on service computing once they've come to the cloud. But the most important thing is to take that first step. You know, exit data centers, come to AWS using vmc or aws, and then a whole host of modernization options available to them. >>Yeah, I gotta say, we had this right on this, on this story, because you just pointed out a big thing, which was first order of business is to make sure to leverage the on-prem investments that those customers made and then migrate to the cloud where they can maintain their applications, their data, their infrastructure operations that they're used to, and then be in position to start getting modern. So I have to ask you, how are you guys specifically, or how is VMware cloud on s addressing these needs of the customers? Because what happens next is something that needs to happen faster. And sometimes the skills might not be there because if they're running old school, IT ops now they gotta come in and jump in. They're gonna use a data cloud, they're gonna want to use all kinds of machine learning, and there's a lot of great goodness going on above the stack there. So as you move with the higher level services, you know, it's a no brainer, obviously, but they're not, it's not yesterday's higher level services in the cloud. So how are, how is this being addressed? >>Absolutely. I think you hit up on a very important point, and that is skills, right? When our customers are operating, some of the most critical applications I just mentioned, core banking, core insurance, et cetera, they're most of the core applications that our customers have across industries, like even, even large scale ERP systems, they're actually sitting on VMware's vSphere platform right now. When the customer wants to migrate these to cloud, one of the key bottlenecks they face is skill sets. They have the trained manpower for these core applications, but for these high level services, they may not, right? So the first order of business is to help them ease this migration pain as much as possible by not wanting them to, to upscale immediately. And we VMware cloud and AWS exactly does that. I mean, you don't have to do anything. You don't have to create new skill set for doing this, right? Their existing skill sets suffice, but at the same time, it gives them that, that leeway to build that skills roadmap for their team. DNS is invested in that, right? Yes. We want to help them build those skills in the high level services, be it aml, be it, be it i t be it data lake and analytics. We want to invest in them, and we help our customers through that. So that ultimately the ultimate goal of making them drop data is, is, is a front and center. >>I wanna get into some of the use cases and success stories, but I want to just reiterate, hit back your point on the skill thing. Because if you look at what you guys have done at aws, you've essentially, and Andy Chassey used to talk about this all the time when I would interview him, and now last year Adam was saying the same thing. You guys do all the heavy lifting, but if you're a VMware customer user or operator, you are used to things. You don't have to be relearn to be a cloud architect. Now you're already in the game. So this is like almost like a instant path to cloud skills for the VMware. There's hundreds of thousands of, of VMware architects and operators that now instantly become cloud architects, literally overnight. Can you respond to that? Do you agree with that? And then give an example. >>Yes, absolutely. You know, if you have skills on the VMware platform, you know, know, migrating to AWS using via by cloud and AWS is absolutely possible. You don't have to really change the skills. The operations are exactly the same. The management systems are exactly the same. So you don't really have to change anything but the advantages that you get access to all the other AWS services. So you are instantly able to integrate with other AWS services and you become a cloud architect immediately, right? You are able to solve some of the critical problems that your underlying IT infrastructure has immediately using this. And I think that's a great value proposition for our customers to use this service. >>And just one more point, I want just get into something that's really kind of inside baseball or nuanced VMC or VMware cloud on AWS means something. Could you take a minute to explain what on AWS means? Just because you're like hosting and using Amazon as a, as a work workload? Being on AWS means something specific in your world, being VMC on AWS mean? >>Yes. This is a great question, by the way, You know, on AWS means that, you know, VMware's vse platform is, is a, is an iconic enterprise virtualization software, you know, a disproportionately high market share across industries. So when we wanted to create a cloud product along with them, obviously our aim was for them, for the, for this platform to have the goodness of the AWS underlying infrastructure, right? And, and therefore, when we created this VMware cloud solution, it it literally use the AWS platform under the eighth, right? And that's why it's called a VMs VMware cloud on AWS using, using the, the, the wide portfolio of our regions across the world and the strength of the underlying infrastructure, the reliability and, and, and sustainability that it offers. And therefore this product is called VMC on aws. >>It's a distinction I think is worth noting, and it does reflect engineering and some levels of integration that go well beyond just having a SaaS app and, and basically platform as a service or past services. So I just wanna make sure that now super cloud, we'll talk about that a little bit in another interview, but I gotta get one more question in before we get into the use cases and customer success stories is in, in most of the VM world, VMware world, in that IT world, it used to, when you heard migration, people would go, Oh my God, that's gonna take months. And when I hear about moving stuff around and doing cloud native, the first reaction people might have is complexity. So two questions for you before we move on to the next talk. Track complexity. How are you addressing the complexity issue and how long these migrations take? Is it easy? Is it it hard? I mean, you know, the knee jerk reaction is month, You're very used to that. If they're dealing with Oracle or other old school vendors, like, they're, like the old guard would be like, takes a year to move stuff around. So can you comment on complexity and speed? >>Yeah. So the first, first thing is complexity. And you know, what makes what makes anything complex is if you're, if you're required to acquire new skill sets or you've gotta, if you're required to manage something differently, and as far as VMware cloud and AWS on both these aspects, you don't have to do anything, right? You don't have to acquire new skill sets. Your existing idea operation skill sets on, on VMware's platforms are absolutely fine and you don't have to manage it any differently like, than what you're managing your, your ID infrastructure today. So in both these aspects, it's exactly the same and therefore it is absolutely not complex as far as, as far as, as far as we cloud and AWS is concerned. And the other thing is speed. This is where the huge differentiation is. You have seen that, you know, large banks and large telcos have now moved their workloads, you know, literally in days instead of months. >>Because because of VMware cloud and aws, a lot of time customers come to us with specific deadlines because they want to exit their data centers on a particular date. And what happens, VMware cloud and AWS is called upon to do that migration, right? So speed is absolutely critical. The reason is also exactly the same because you are using the exactly the same platform, the same management systems, people are available to you, you're able to migrate quickly, right? I would just reference recently we got an award from President Zelensky of Ukraine for, you know, migrating their entire ID digital infrastructure and, and that that happened because they were using VMware cloud database and happened very swiftly. >>That's been a great example. I mean, that's one political, but the economic advantage of getting outta the data center could be national security. You mentioned Ukraine, I mean Oscar see bombing and death over there. So clearly that's a critical crown jewel for their running their operations, which is, you know, you know, world mission critical. So great stuff. I love the speed thing. I think that's a huge one. Let's get into some of the use cases. One of them is, the first one I wanted to talk about was we just hit on data, data center migration. It could be financial reasons on a downturn or our, or market growth. People can make money by shifting to the cloud, either saving money or making money. You win on both sides. It's a, it's a, it's almost a recession proof, if you will. Cloud is so use case for number one data center migration. Take us through what that looks like. Give an example of a success. Take us through a day, day in the life of a data center migration in, in a couple minutes. >>Yeah. You know, I can give you an example of a, of a, of a large bank who decided to migrate, you know, their, all their data centers outside their existing infrastructure. And they had, they had a set timeline, right? They had a set timeline to migrate the, the, they were coming up on a renewal and they wanted to make sure that this set timeline is met. We did a, a complete assessment of their infrastructure. We did a complete assessment of their IT applications, more than 80% of their IT applications, underlying v vSphere platform. And we, we thought that the right solution for them in the timeline that they wanted, right, is VMware cloud ands. And obviously it was a large bank, it wanted to do it safely and securely. It wanted to have it completely managed, and therefore VMware cloud and aws, you know, ticked all the boxes as far as that is concerned. >>I'll be happy to report that the large bank has moved to most of their applications on AWS exiting three of their data centers, and they'll be exiting 12 more very soon. So that's a great example of, of, of the large bank exiting data centers. There's another Corolla to that. Not only did they manage to manage to exit their data centers and of course use and be more agile, but they also met their sustainability goals. Their board of directors had given them goals to be carbon neutral by 2025. They found out that 35% of all their carbon foot footprint was in their data centers. And if they moved their, their ID infrastructure to cloud, they would severely reduce the, the carbon footprint, which is 35% down to 17 to 18%. Right? And that meant their, their, their, their sustainability targets and their commitment to the go to being carbon neutral as well. >>And that they, and they shift that to you guys. Would you guys take that burden? A heavy lifting there and you guys have a sustainability story, which is a whole nother showcase in and of itself. We >>Can Exactly. And, and cause of the scale of our, of our operations, we are able to, we are able to work on that really well as >>Well. All right. So love the data migration. I think that's got real proof points. You got, I can save money, I can, I can then move and position my applications into the cloud for that reason and other reasons as a lot of other reasons to do that. But now it gets into what you mentioned earlier was, okay, data migration, clearly a use case and you laid out some successes. I'm sure there's a zillion others. But then the next step comes, now you got cloud architects becoming minted every, and you got managed services and higher level services. What happens next? Can you give us an example of the use case of the modernization around the NextGen workloads, NextGen applications? We're starting to see, you know, things like data clouds, not data warehouses. We're not gonna data clouds, it's gonna be all kinds of clouds. These NextGen apps are pure digital transformation in action. Take us through a use case of how you guys make that happen with a success story. >>Yes, absolutely. And this is, this is an amazing success story and the customer here is s and p global ratings. As you know, s and p global ratings is, is the world leader as far as global ratings, global credit ratings is concerned. And for them, you know, the last couple of years have been tough as far as hardware procurement is concerned, right? The pandemic has really upended the, the supply chain. And it was taking a lot of time to procure hardware, you know, configure it in time, make sure that that's reliable and then, you know, distribute it in the wide variety of, of, of offices and locations that they have. And they came to us. We, we did, again, a, a, a alar, a fairly large comprehensive assessment of their ID infrastructure and their licensing contracts. And we also found out that VMware cloud and AWS is the right solution for them. >>So we worked there, migrated all their applications, and as soon as we migrated all their applications, they got, they got access to, you know, our high level services be our analytics services, our machine learning services, our, our, our, our artificial intelligence services that have been critical for them, for their growth. And, and that really is helping them, you know, get towards their next level of modern applications. Right Now, obviously going forward, they will have, they will have the choice to, you know, really think about which applications they want to, you know, refactor or which applications they want to go ahead with. That is really a choice in front of them. And, but you know, the, we VMware cloud and AWS really gave them the opportunity to first migrate and then, you know, move towards modernization with speed. >>You know, the speed of a startup is always the kind of the Silicon Valley story where you're, you know, people can make massive changes in 18 months, whether that's a pivot or a new product. You see that in startup world. Now, in the enterprise, you can see the same thing. I noticed behind you on your whiteboard, you got a slogan that says, are you thinking big? I know Amazon likes to think big, but also you work back from the customers and, and I think this modern application thing's a big deal because I think the mindset has always been constrained because back before they moved to the cloud, most IT, and, and, and on-premise data center shops, it's slow. You gotta get the hardware, you gotta configure it, you gotta, you gotta stand it up, make sure all the software is validated on it, and loading a database and loading oss, I mean, mean, yeah, it got easier and with scripting and whatnot, but when you move to the cloud, you have more scale, which means more speed, which means it opens up their capability to think differently and build product. What are you seeing there? Can you share your opinion on that epiphany of, wow, things are going fast, I got more time to actually think about maybe doing a cloud native app or transforming this or that. What's your, what's your reaction to that? Can you share your opinion? >>Well, ultimately we, we want our customers to utilize, you know, most of our modern services, you know, applications should be microservices based. When desired, they should use serverless applic. So list technology, they should not have monolithic, you know, relational database contracts. They should use custom databases, they should use containers when needed, right? So ultimately, we want our customers to use these modern technologies to make sure that their IT infrastructure, their licensing, their, their entire IT spend is completely native to cloud technologies. They work with the speed of a startup, but it's important for them to, to, to get to the first step, right? So that's why we create this journey for our customers, where you help them migrate, give them time to build the skills, they'll help them mo modernize, take our partners along with their, along with us to, to make sure that they can address the need for our customers. That's, that's what our customers need today, and that's what we are working backwards from. >>Yeah, and I think that opens up some big ideas. I'll just say that the, you know, we're joking, I was joking the other night with someone here in, in Palo Alto around serverless, and I said, you know, soon you're gonna hear words like architectural list. And that's a criticism on one hand, but you might say, Hey, you know, if you don't really need an architecture, you know, storage lists, I mean, at the end of the day, infrastructure is code means developers can do all the it in the coding cycles and then make the operations cloud based. And I think this is kind of where I see the dots connecting. Final thought here, take us through what you're thinking around how this new world is evolving. I mean, architecturals kind of a joke, but the point is, you know, you have to some sort of architecture, but you don't have to overthink it. >>Totally. No, that's a great thought, by the way. I know it's a joke, but it's a great thought because at the end of the day, you know, what do the customers really want? They want outcomes, right? Why did service technology come? It was because there was an outcome that they needed. They didn't want to get stuck with, you know, the, the, the real estate of, of a, of a server. They wanted to use compute when they needed to, right? Similarly, what you're talking about is, you know, outcome based, you know, desire of our customers and, and, and that's exactly where the word is going to, Right? Cloud really enforces that, right? We are actually, you know, working backwards from a customer's outcome and using, using our area the breadth and depth of our services to, to deliver those outcomes, right? And, and most of our services are in that path, right? When we use VMware cloud and aws, the outcome is a, to migrate then to modernize, but doesn't stop there, use our native services, you know, get the business outcomes using this. So I think that's, that's exactly what we are going through >>Actually, should actually, you're the director of global sales and go to market for VMware cloud on Aus. I wanna thank you for coming on, but I'll give you the final minute. Give a plug, explain what is the VMware cloud on Aus, Why is it great? Why should people engage with you and, and the team, and what ultimately is this path look like for them going forward? >>Yeah. At the end of the day, we want our customers to have the best paths to the cloud, right? The, the best path to the cloud is making sure that they migrate safely, reliably, and securely as well as with speed, right? And then, you know, use that cloud platform to, to utilize AWS's native services to make sure that they modernize their IT infrastructure and applications, right? We want, ultimately that our customers, customers, customer get the best out of, you know, utilizing the, that whole application experience is enhanced tremendously by using our services. And I think that's, that's exactly what we are working towards VMware cloud AWS is, is helping our customers in that journey towards migrating, modernizing, whether they wanna exit a data center or whether they wanna modernize their applications. It's a essential first step that we wanna help our customers with >>One director of global sales and go to market with VMware cloud on neighbors. He's with aws sharing his thoughts on accelerating business transformation on aws. This is a showcase. We're talking about the future path. We're talking about use cases with success stories from customers as she's thank you for spending time today on this showcase. >>Thank you, John. I appreciate it. >>Okay. This is the cube, special coverage, special presentation of the AWS Showcase. I'm John Furrier, thanks for watching.

(upbeat music) >> Hey everyone, welcome back to Chicago theCUBE is live on the floor at AnsibleFest 2022, the first in-person Ansible event that we've covered since 2019. Lisa Martin here with John Furrier. John, great to be here. There's about 1400 to 1500 people here in person, the partner ecosystem is growing and evolving, and that's going to be one of the themes of our next conversation. >> CloudScale is continuing to change the ecosystem, and this segment with AWS is going to be awesome. >> Exactly, we've got one of our alumni back with us, Stefanie Chiras joins us again, senior vice president, partner ecosystem success at Red Hat. and Manasi Jagannatha is also here Global Alliance Manager at AWS. Ladies, welcome to the program. >> Both: Thank you. >> Manasi: Nice to be here. >> Stefanie: Yeah. >> So some exciting news that came out. First of all was great to see you on stage. >> Thank you. >> In front of a live audience. The community is, you talked about this before we went live. The Ansible is nothing, if not the community. So I can only imagine how great that felt to be on stage in front of live bodies announcing the next step with Ansible and AWS. Tell us about that. >> I mean, you can't compete with the energy that comes from a live event. And I remember the first AnsibleFest I came to, it's just this electric feeling born out of the community, born out of collaboration and getting together feeds that collaboration in a way that like nothing else. >> Lisa: Can't do it by video alone. >> You cannot. And so it was so fun cuz today was big news. We announced that Ansible will be available through the AWS marketplace, the next step in our partnership journey. And we've been hearing like most of our announcements, we do these because customers ask for them. And that's really what is key. And the combination of what Red Hat brings to the table and what AWS brings to the table. That's what underpins this announcement this morning. >> Talk about it from a customer demand perspective and how you are not only meeting customers where they are, but you're speaking their language. >> Manasi: Yeah. >> Yeah, there's a couple of aspects and then I want to pass it to Manasi because nothing speaks better than a customer experience. But the specifics I think of what come together is this is where technology, procurement, experience, accessibility all come together. And it took both of us in order to do that. But we actually talked about a great example today, the TransUnion. >> So we have TransUnion, they are a credit reporting company and they're a giant customer. They use RHEL, they use AWS services. So while they were transitioning to the cloud, the first thing they wanted to know was compliance, right? Like, how do we have guardrails around compliance? That was a key feature for them. And then the other piece was how do we scale without increasing the complexity? And then the critical piece was being able to integrate with the depth of AWS services without having to do it over and over again. So what TransUnion did was they basically integrated Ansible automation platform with the AWS Cloud Control API that gave them the flexibility To basically integrate with what, 200 plus services? And it's amazing to see them grow over time. >> What's interesting is that Amazon, obviously cloud has been awesome. We've been covering it since the beginning. DevOps infrastructures code was the dream. Now it's app says code, you have configuration code before that. As cloud goes next level here, we're starting to see a lot more higher level services on AWS being adopted by customers. And so I want to get into how the marketplace deal works. So what's in it for the customer? Because as they bring Ansible across the enterprise and edge, now we're seeing that develop. If I'm the customer, am I buying it through the marketplace? What's the mechanics of the deal? Can I just tap into the bill, explain the marketplace workflow or how it works? >> Yeah, I'd love to do that. So customers come to the marketplace for three key benefits, right? Like one is the consumption based model, pay as you go, you can get hourly, annual, and spot instances. For some services you even get per second billing, right? Like, that's amazing, that's one. And then the other piece is John and Stefanie, as you know, customers would love to draw down on their EDPs, right? Like they want a single- >> EDPs, explain that with acronym. >> It's enterprise discount program. So they want a single bill where they can use third party services and AWS services and they don't have to go through the hustle of saying, "Hey, let me combine all these different pieces." So combining that, and of course the power of Ansible, right? Like customers love Ansible, they've built playbooks. The beauty of it is whatever you want to build on AWS, there is most likely a playbook or a module that already exists. So they can just tap into that and build into- >> Operationally it's a purchasing through marketplace. >> And you know, I mean, being an engineer myself, we always often get caught up in the technology aspect. Like what's the greatest technology? And everyone, as Manasi said, everyone loves the technology of Ansible, but the procurement aspect is also so important. And this is where I think this partnership really comes together. It is natively, Ansible is now, natively integrated into AWS billing. So one bill, you go and you log in. Now you have a Red Hat subscription, you get all the benefits from Red Hat that comes along with that subscription. But the like Ansible is all about simplicity. This brings simplicity to that procurement model and it allows you to scale within your AWS cloud environment that you have set up. And as Manasi mentioned, pull in those other native services from AWS. It's Great. >> It's interesting one of the things that buzzword Lisa and I were just talking as in the industry is the word multiplayer. I've heard people say that's multiplayer software, kind of a gaming analogy. But what you guys are doing is setting up, once they go with Ansible in the marketplace, they're just buying as things get more collaborative off the marketplace. So it kind of streamlines, if I get this right. >> Stefanie: Yep. >> The purchasing process. So they're already in, they just use it's on the bill. Is that kind of how it works? >> Yep. >> Absolutely done, yeah. >> So it the customer has a partnership with us more on the technology side and this particular case and with AWS and the procurement side, it brings that together. >> So multiplayer software, is it multiplayer software? >> We like to talk about multi-partner solutions and I think this provides a new grounding for other partners to come in and build upon that with their services capabilities, with their other technology capabilities. So well clearly in my world, we talk about multi-partner. (both laughs) >> Well, what you're doing is empowering the developers. I know that Red Hat is one of its goals is let's make things much more seamless, much smoother for the developers as the buyer's journey has changed. And John, you've talked about that quite a bit. You're empowering those buyers to actually have a much simpler, streamlined process and to be able to start seeing automation become democratized across organizations. >> Yeah, and one of the things I love about the announcement as well is it pulls in the other values of Ansible automation platform in that simplicity model that you mentioned with like things like certified collections, certified collections that have been built by partners. We have built certified collections, to go along with this offering as well as part of the AWS offering that pulls in these other partner engagements together. And as you said, democratizes not only what we've done together, but what we've done with other partners together. >> Lisa: Right. >> Yeah. >> Can you kind of talk kind of about the depths of the partnership, the co-engineering, and sort of the evolution and the customer involvement in the expansion of the partnership? >> Yeah, I'd love to walk you through that. So we've had a longstanding partnership coming up on 15 years now Stefanie, can you believe it? >> Stefanie: Yeah. (laughs) >> 15 years we've been building, to give you some historical context, right? In back in 2008 we launched RHEL and in 2015 we supported SAP workloads on RHEL. And then the list goes on, right? Like we've been launching Graviton instances, Arm instances, Nitro. The key to be noted here is that every new instance Launch, RHEL has always been supported on day one, right? Like that's been our motto. So that's one. And then in 2021, as you know, we launched Rosa Red Hat OpenShift service on AWS. And that's helped customers with their modernization journey to AWS. So that's been context historically around where we were and where we are today. And now with Ansible, it just gives customer another tool in their arsenal, right? And then the goal is to make sure we meet customers where they are, give them all the Red Hat products that they love using on their hybrid workloads. >> Sounds like a lot is coming maybe at re:Invent too, coming up. >> Yeah. >> What's next? >> This is the beginning, right? We'll continue to grow and based upon not only laying the building blocks for what customers can build with, and you mentioned Lisa, right? We follow this journey that Manasi talked about because of what customers ask for. So it's always a new adventure to determine what'll come next based upon what we hear from our joint customers. >> On that front though, Stefanie, talk about the impact of the broader ecosystem that this is just scratching the surface. >> One of the things, and we've been going through a whole transformation at Red Hat about how we engage with the ecosystem. We've done organizational shifts, we've done a complete revamp of how we engage with the ecosystem. One of our biggest focus is to make sure that the partnerships that we have with one partner bring value to the rest of our partners. No better example than something like this when we work with AWS to create accessibility and capability through a procurement model that we know is important to customers. But that then serves as a launch point for other partners to build certified collections around or now around validated content, which we talked about today at AnsibleFest, that allows other partners to engage. And we're seeing a huge amount in services partners, right? Automation is so pervasive now as customers want to go out and scale. We're seeing services partners really come in and help customers go from, it's always challenging when you have a broad set of IT. You have cloud native over here, you have bare metal over here, you have virtual, it's complex. >> John: Yeah. >> There's sometimes an energy activation barrier to get over that initial automation. We're seeing partners come in with really skilled services capabilities to help customers get over that hump to consolidate with an automation plan. It gets them better equipped to do day one automation and day two automation. And that's where Ansible automation platform is going. It's not just about configuration management, it's about day two management as well. >> Talk about those barriers a little bit more and how Ansible and AWS together are helping customers really knock those out of the park. Another baseball reference for you. We see that a lot of organizations, the skills gap, which we've talked about already on the conversation today, but Ansible as being a facilitator of helping organizations to attract talent, to retain talent, but also customers that maybe don't know where to start or don't know how to determine the ROI that automating processes will bring. How can this partnership help customers nock those out of the park? >> So I'll start and then I'll pass it to Manasi here. But I think one of the key things in this particular partnership is just plain old accessibility. Accessibility, which public cloud has taught the world a new way to get fast access that consumption based pricing. Right you can get your hands on it, you can test it out, you can have a team go in and test it out, and then you can see it's built for scale. So then you can scale it as far as you want to go forward. We clearly have an ecosystem of services partners, so does AWS to help people then sort of take it to the next level as they want to build upon it. But to me the first step is about accessibility, getting your hands dirty. You can build it into those committed spend programs that you may have with AWS as well to try new things. But it's a great test bed. >> Absolutely. And then to add to what Stefanie said, together Red Hat and AWS, we have about a hundred thousand partners combined, right? Like resellers, sis, GSI, distributors. So the reach the combined partnership has just amplifies. >> Yeah, it's huge news. I think it's a big deal because you operationalize the heavy lifting of procurement for all your joint customers and the scale piece is huge. So congratulations. I think it's going to make a lot of money for Ansible. So good call there. My question is, as we hear here, the next level's edge. So AWS has been doing a ton of hybrids since outpost announcement years ago. Now you got all kinds of regional expansions, you've got local zones, you've got all kinds of new edge activity. So are there dots connecting here with the edge with Red Hat Ansible? >> Do you want- >> Yeah, so I think we see two trends with our customers, right? Like mainly I'm specifically talking about our RHEL customer base on AWS. We have almost hundreds to thousands of customers using RHEL on AWS. These are 90% of fortune 500 companies use RHEL, right? So with that customer base, they are looking to expand your point into the edge. There's outposts, there are so many hybrid environments that they're trying to expand in. So just adding Ansible, RHEL, Rosa, OpenShift, that entire makes, just gives customers that the plethora of products they need to run their workloads everywhere, right? Like we have certifications outpost, we have certifications with OpenShift, right? So it just completes the puzzle, if you- >> So it's a nice fit. >> Yeah. >> It is a really nice fit. And I love Edge and Edge once you start going distributed, this automation aspect is key for all the reasons, for security reasons to make sure you do it the same way every single time. It's just pervasive in it. But things like the Cloud Control API allow it to bridge into things like Outpost. It allows a simple way, one clean way to do API and then you can expand it out and get the value. >> So this is why you are on stage and you said that Ansible's going to expand the scope to be more enterprise architecture. >> Stefanie: That's right. >> That's essentially what you're getting at. This is now a distributed computing fabric at cloud scale on AWS. >> Stefanie: That's right. >> Did I get that right? >> Yep, and it touches all the different deployments you may have, on-prem, virtual, cloud native, you name it. >> So how do the people turn into architects? Cuz this is, again, we had this earlier conversation with Tom, multi-tool players, a baseball analogy I used. It's like signifies the best player, your customers are becoming multiple tool players or operators. The new operator is now the top talent. They got to run Ansible, they got to automate, they got to provide services to the cloud native developers. So this new role is emerging, it's not a cloud architect but it's, if it's going to be system architecture wide, what's this new person look like that's going to run all this? >> I think it's an interesting question. We were talking yesterday, actually, Tom and I were talking with the partners. We had Partner Day, the first ever at AnsibleFest yesterday, which was great. We got a lot of insight. They talked a lot about this platform focus, right? Customers are looking to create that platform so that the developers can come in and build upon it without compromising what they want to do. So I do think there's a move in that direction to say how do you create these platforms at a company that no compromises, but it provides that consistency. I would say one thing in partnerships like this, I think customer expectations on the partner ecosystem to have it be trusted is increasing. They expect us as we've done to have our engineers roll up their sleeves together to come to the table together. That's going to show up in our curated content. It's going to show up in our validated content. Those are the places I think where we come up from the bottom through our partnership and we help bridge that gap. >> John: Awesome. >> And trust was brought up a number of times this morning during the keynote. We're almost out of time here, but I think it's one of those words that a lot of companies use. But I think what you're showing is really the value in it from Ansible's perspective from AWS's perspective and ultimately the value in it for the customer. >> Stefanie: Yes. >> So I got to ask you one final question. >> Stefanie: Absolutely. >> And maybe as as reinvent is around the corner, what's next for the partnership? Obviously big news today, Manasi, looking down down the pipe- >> Stefanie: Big news today. >> What are some of the things that you think are going to become next that you can share? >> I mean at this point, and I'll pass it to Manasi to close us out, but we are continuing to follow, to meet our customers where they want to be. We are looking across our portfolio for different ways that customers want to consume within AWS. We'll continue to look at the procurement models through the partner programs that Manasi and the team have had. And to me the next step is really bringing in the rest of the ecosystem. How do we use this as a grounding step? >> Yeah, absolutely. So we are always listening to customer feedback and they want more Red Hat products in the marketplace. So that's where we'll be. >> In the marketplace. >> Congratulations great deal. >> Yes great work there guys. And customers always want more. That's the thing. But that's what keeps us going. So we love it. >> Absolutely. >> Thank you so much for joining John and me on the program today. It's been great to have you. And congratulations again. >> It's a pleasure. >> Thank you. >> For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE Live from Chicago at AnsibleFest 2022. This is only day one of our coverage. We'll be back after a short break for more. (upbeat music)

foreign [Music] welcome to this Cube showcase accelerating business transformation with VMware Cloud on aw it's a solution Innovation conversation with two great guests Fred Ward and VP of Commercial Services at AWS and Narayan bardawaj who's the VP and general manager of cloud Solutions at VMware gentlemen thanks for uh joining me on the Showcase great to be here hey thanks for having us on it's a great topic you know we we've been covering this VMware Cloud on AWS since since the launch going back and it's been amazing to watch The Evolution from people saying oh it's the worst thing I've ever seen what's this mean uh and depressed we're we're kind of not really on board with kind of the vision but as it played out as you guys had announced together it did work out great for VMware it did work out great for a divs and it continues two years later and I want to just get an update from you guys on where you guys see this has been going obviously multiple years where is the evolution of the solution as we are right now coming off VMware Explorer just recently and going in to reinvent uh which is only a couple weeks away uh this feels like tomorrow but you know as we prepare a lot going on where are we with the evolution of the solution I mean the first thing I want to say is you know October 2016 was a seminal moment in the history of I.T right when bad girls singer and Andy jassy came together to announce this and I think John you were there at the time I was there it was a great great moment we launched the solution in 2017 the year after that at vmworld back when we called it vmworld I think we've gone from strength to strength one of the things that has really mattered to us is we've learned from AWS also and the process is this notion of working backwards so we're really really focused on customer feedback as we build the service offering now five years old pretty remarkable Journey uh you know in the first years we tried to get across all the regions you know that was a big Focus because there was so much demand for it in the second year we started going really on Enterprise great features we invented this pretty awesome feature called stretch clusters where you could stretch a vsphere cluster using vsan NSX across two azs in the same region pretty phenomenal for lines of availability that applications start started to get with that particular feature and we kept moving forward all kinds of integration with AWS direct connect Transit gateways with our own Advanced networking capabilities uh you know along the way Disaster Recovery we punched out you need two new Services just focused on that and then more recently we launched our outposts partnership we were up on the stage at reinvent again with Pat and Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts I think it's been significant growth in our federal sector as well the federal Empire certification more recently so all in all we're super excited we're five years old the customer momentum is really really strong we are scaling the service massively across all GEOS and industries that's great great update and I think one of the things that you mentioned was how the advantages you guys got from that relationship and this has kind of been the theme for AWS man since I can remember from day one Fred you guys do the heavy lifting as as it's always say for the customers here VMware comes on board takes advantage of the AWS and kind of just doesn't miss a beat continues to move their workloads that everyone's using you know vsphere and these are these are Big workloads on AWS what's the AWS perspective on this how do you see it yeah uh it's pretty fascinating to watch how fast customers can actually transform and move when you take the the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's that's evolving quickly and and building out new hardware and new instances we'll talk about uh but that combined experience between both of us on a jointly engineered solution uh to bring the best security and the best features that really matter for those workloads uh drive a lot of efficiency and speed for the for the customer so it's been well received and the partnership is stronger than ever from an engineering standpoint from a business standpoint and obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and and responding to what customers want so pretty pretty excited about just seeing the transformation and the speed that which customers can move to uh BMC yeah that's a great value probably we've been talking about that in context to anyone building on top of the cloud they can have their own super cloud as we call it if you take advantage of all the capex and investment Amazon's made and AWS is made and and continues to make in performance I as and pass all great stuff I have to ask you guys both as you guys see this going to the next level what are some of the differentiations you see around the service compared to other options on the market what makes it different what's the combination you mentioned jointly engineered what are some of the key differentias of the service compared to others yeah I think one of the key things red talked about is this jointly engineered notion right from day one we were the earlier doctors of the AWS Nitro platform right the reinvention of ec2 back five years ago and so we've been you know having a very very strong engineering partnership at that level I think from uh we have a customer standpoint you get the full software-defined data center compute storage networking on ec2 bare metal across all regions you can scale that elastically up and down it's pretty phenomenal just having that consistency Global right on AWS ec2 Global regions now the other thing that's a real differentiator for us customers tell us about is this whole notion of a managed service right and this was somewhat new to VMware this undifferentiated heavy lifting where customers are to provision rack stack Hardware configure the software on top and then upgrade the software and the security patches on top so we took away all of that pain as customers transition to VMware cloud and AWS in fact my favorite story from last year when we were all going through the lock for Jay debacle the industry was just going through that right favorite proof point from customers was before they could even race uh this issue to us we sent them a notification saying uh we already patched all of your systems no action from you the customers were super thrilled I mean these are large Banks many other customers around the world super thrill they had to take no action for a pretty incredible industry challenge that we were all facing that's a great point you know the whole managed service piece brings up the security and you're kind of teasing at it but you know there's always vulnerabilities that emerge when you're doing complex logic and as you grow your Solutions there's more bits you know Fred we were commenting before we came on cameras more bits than ever before and and at the physics layer too as well as the software so you never know when there's going to be a zero day vulnerability out there just it happens we saw one with Fortinet this week um this came out of the woodwork but moving fast on those patches is huge this brings up the whole support angle I wanted to ask you about how you guys are doing that as well because to me we see the value when we when we talk to customers on the cube about this you know it was a real real easy understanding of how what the cloud means to them with VMware now with the AWS but the question that comes up that we want to get more clarity on is how do you guys handle the support together well what's interesting about this is that it's it's done mutually we have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer including all the way up into the app layer as you think about some of the other workloads like sap we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them uh and on top of that we look at where where we're improving reliability in as a first order of principle between both companies so from an availability and reliability standpoint it's it's top of mind and no matter where the particular item might land we're going to go help the customer resolve that works really well on the VMware side let's spend the feedback there what's the what's some of the updates same scene yeah yeah I think uh look I mean VMware owns and operates the service will be a phenomenal back in relationship with AWS customers call VMware for the service for any issues and then we have a awesome relationship with AWS in the back end for support issues for any hardware issues capacity management that we jointly do right all the hard problems that customers don't have to worry about uh I think on the front end we also have a really good group of solution Architects across the companies that help to really explain the solution do complex things like Cloud migration which is much much easier with VMware on AWS we're presenting that easy button to the public cloud in many ways and so we have a whole technical audience across the two companies that are working with customers every single day you know you had mentioned a list here some of the Innovations the you mentioned the stretch clustering you know getting the GEOS working Advanced Network disaster recovery um you know fed fed ramp public sector certifications outposts all good you guys are checking the boxes every year you got a good good accomplishments list there on the VMware AWS side here in this relationship the question that I'm interested in is what's next what uh recent Innovations are you doing are you making investments in what's on the list this year what items will be next year how do you see the the new things the list of the cosmos people want to know what's next they don't want to see stagnant uh growth here they want to see more action you know as as uh Cloud kind of continues to scale and modern applications Cloud native you're seeing more and more containers more and more you know more CF CI CD pipelining with with modern apps putting more pressure on the system what's new what's the new Innovations absolutely and I think as a five-year-old service offering uh Innovation is top of mind for us every single day so just to call out a few recent innovations that we announced in San Francisco at VMware Explorer um first of all uh our new platform i4i dot metal it's isolate based it's pretty awesome it's the latest and greatest uh all the speeds and beats that you would expect from VMware and AWS at this point in our relationship we announced two different storage options this notion of working from customer feedback allowing customers even more price reductions really take off that storage and park it externally right and you know separate that from compute so two different storage offerings there one is with AWS FSX NetApp on tap which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well and the second storage offering called VMware Cloud Flex story vmware's own managed storage offering beyond that we've done a lot of other Innovations as well I really wanted to talk about VMware Cloud Flex compute where previously customers could only scale by hosts you know host is 36 to 48 cores give or take but with VMware cloudflex compute we are now allowing this notion of a resource defined compute model where customers can just get exactly the vcpu memory and storage that maps to the applications however small they might be so this notion of granularity is really a big innovation that that we are launching in the market this year and then last but not least topper ransomware of course it's a Hot Topic in the industry we are seeing many many customers ask for this we are happy to announce a new ransomware recovery with our VMware Cloud VR solution a lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots backups are actually safe to use so there's a lot of differentiation on that front as well a lot of networking Innovations with project North Star the ability to have layer 4 through layer seven uh you know new SAS services in that area as well keep in mind that the service already supports managed kubernetes for containers it's built in to the same clusters that have virtual machines and so this notion of a single service with a great TCO for VMS and containers is sort of at the heart of our option the networking side certainly is a hot area to keep innovating on every year it's the same same conversation get better faster networking more more options there the flex computes interesting if you don't mind me getting a quick clarification could you explain the address between resource defined versus Hardware defined because this is kind of what we had saw at explore coming out that notion of resource defined versus Hardware defined what's that what does that mean yeah I mean I think we've been super successful in this Hardware defined notion where we're scaling by the hardware unit uh that we present as software-defined data centers right so that's been super successful but we you know customers wanted more especially customers in different parts of the world wanted to start even smaller and grow even more incrementally right lower the cost even more and so this is the part where resource defined starts to be very very interesting as a way to think about you know here's my bag of resources exactly based on what the customer's requested it would be for fiber machines five containers its size exactly for that and then as utilization grows we elastically behind the scenes were able to grow it through policies so that's a whole different dimension it's a whole different service offering that adds value when customers are comfortable they can go from one to the other they can go back to that post-based model if they so choose to and there's a jump off point across these two different economic models it's kind of cloud flexibility right there I like the name Fred let's get into some of the uh examples of customers if you don't mind let's get into some of these we have some time I want to unpack a little bit of what's going on with the customer deployments one of the things we've heard again on the cube is from customers is they like the clarity of the relationship they love the cloud positioning of it and then what happens is they lift and shift the workloads and it's like feels great it's just like we're running VMware on AWS and then they start consuming higher level Services kind of that adoption Next Level happens um and because it's in the cloud so so can you guys take us through some recent examples of customer wins or deployments where they're using VMware Cloud on AWS on getting started and then how do they progress once they're there how does it evolve can you just walk us through a couple use cases sure um there's a well there's a couple one it's pretty interesting that you know like you said as there's more and more bids you need better and better hardware and networking and we're super excited about the I-4 uh and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds but what customers are doing with it like the college in New Jersey they're accelerating their deployment on a on onboarding over like 7 400 students over a six to eight month period and they've really realized a ton of savings but what's interesting is where and how they can actually grow onto additional native Services too so connectivity to any other services is available as they start to move and migrate into this um the the options there obviously are tied to all the Innovation that we have across any Services whether it's containerized and with what they're doing with tanzu or with any other container and or services within AWS so so there's there's some pretty interesting scenarios where that data and or the processing which is moved quickly with full compliance whether it's in like health care or regulatory business is is allowed to then consume and use things for example with text extract or any other really cool service that has you know monthly and quarterly Innovations so there's things that you just can't could not do before that are coming out uh and saving customers money and building Innovative applications on top of their uh their current uh app base in in a rapid fashion so pretty excited about it there's a lot of examples I think I probably don't have time to go into too many here yeah but that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform now Ryan what's your perspective from the VMware psychics you know you guys have now a lot of head room to offer customers with Amazon's you know higher level services and or whatever's homegrown what is being rolled out because you now have a lot of hybrid too so so what's your what's your take on what what's happening and with customers I mean it's been phenomenal the customer adoption of this and you know Banks and many other highly sensitive verticals are running production grade applications tier one applications on the service over the last five years and so you know I have a couple of really good examples SNP Global is one of my favorite examples large Bank the merch with IHS Market big sort of conglomeration now both customers were using VMware cloud and AWS in different ways and with the uh with the use case one of their use cases was how do I just respond to these Global opportunities without having to invest in physical data centers and then how do I migrate and consolidate all my data centers across the globe of which there were many and so one specific example for this company was how they migrated thousand one thousand workloads to VMware cloud and AWS in just six weeks pretty phenomenal if you think about everything that goes into a cloud migration process people process technology and the beauty of the technology going from VMware point a to VMware point B the the lowest cost lowest risk approach to adopting we have our cloud in AWS so that's uh you know one of my favorite examples there are many other examples across other verticals that we continue to see the good thing is we're seeing rapid expansion across the globe we're constantly entering new markets uh with a limited number of regions and progressing our roadmap it's great to see I mean the data center migrations go from months many many months to weeks it's interesting to see some of those success stories so congratulations another one of the other uh interesting uh and fascinating uh uh benefits is the sustainability Improvement in terms of being green so the efficiency gains that we have both in current uh generation and New Generation processors and everything that we're doing to make sure that when a customer can be elastic they're also saving power which is really critical in a lot of regions worldwide at this point in time they're they're seeing those benefits if you're running really inefficiently in your own data center that is just a not a great use of power so the actual calculators and the benefits to these workloads is are pretty phenomenal just in being more green which I like we just all need to do our part there and and this is a big part of it here it's a huge it's a huge point about sustainability for everyone glad you called that out the other one I would say is supply chain issues another one you see that constrains I can't buy hardware and the third one is really obvious but no one really talks about it it's security right I mean um I remember interviewing Steven Schmidt with that AWS and many years ago this is like 2013 and um you know at that time people saying the Cloud's not secure and he's like listen it's more secure in the cloud than on premise and if you look at the security breaches it's all about the on-premise data center vulnerabilities not so much Hardware so there's a lot you gotta the the stay current on on the isolation there is hard so I think I think the security and supply chain threat is another one do you agree I I absolutely agree uh it's it's hard to manage supply chain nowadays we put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them run them more efficiently yeah and then like you said on the security Point Security is job one it is it is the only P1 and if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers there's nothing more important and Narayan your point earlier about the managed service patching and being on top of things is really going to get better all right final question I really want to thank you for your time on this showcase it's really been a great conversation uh Fred you had made a comment earlier I want to kind of end with the kind of a curveball and put you guys on the spot we're talking about a modern a new modern shift it's another we're seeing another inflection point we've been documenting it it's almost like Cloud hitting another inflection point um with application and open source growth significantly at the app layer continue to put a lot of pressure and innovation in the infrastructure side so the question is for you guys each to answer is what's the same and what's different in today's market so it's kind of like we want more of the same here but also things have changed radically and better here what are the what's what's changed for better and where what's still the same kind of thing hanging around that people are focused on can you share your perspective I'll I'll tackle it um you know uh businesses are complex and they're often unique uh that that's the same uh what's changed is how fast you can innovate the ability to combine manage services and new Innovative services and build new applications is so much faster today leveraging world-class Hardware uh that you don't have to worry about that's elastic you could not do that even five ten years ago to the degree you can today especially with the Innovation so Innovation is accelerating uh at a rate that most people can't even comprehend and understand the the set of services that are available to them it's really fascinating to see what a one pizza team of of Engineers can go actually develop in a week it is phenomenal so super excited about this space and it's only going to continue to accelerate that that's my take there I am you got a lot of platform to compete on with Amazon I got a lot to build on the memory which then you're right on your side what's your what's your answer to that question I think we're seeing a lot of innovation with new applications that customers [Music] I think uh what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly uh you know build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently I think we are seeing uh you know we're at the very start of that sort of uh of Journey um of course we have invested in kubernetes means to an end but it's so much more Beyond that's happening in the industry and I think we're at the very very beginning of this Transformations Enterprise transformation that many of our customers are going through and we're inherently part of it yeah well gentlemen I really appreciate that we're seeing the same things more the same here on you know solving these complexities with abstractions whether it's you know higher level services with large-scale infrastructure um at your fingertips infrastructure is code infrastructure to be provisioned serverless all the good stuff happening Fred with AWS on your side and we're seeing customers resonate with this idea of being an operator again being a cloud operator and developer so the developer Ops is kind of devops is kind of changing too so all for the better thank you for spending the time we're seeing again that traction with the VMware customer base and it was getting getting along great together so thanks for sharing your perspectives they appreciate it thank you so much okay thank you John okay this is thecube and AWS VMware showcase accelerating business transformation VMware Cloud on AWS jointly engineered solution bringing Innovation to the VMware customer base going to the cloud and Beyond I'm John Furrier your host thanks for watching [Music]

(bright music) >> Welcome back everyone. theCube's live coverage here. Day two, of two sets, three days of theCube coverage here at VMware Explore. This is our 12th year covering VMware's annual conference, formerly called VM World. I'm John Furrier, with Dave Vellante. We'd love seeing the progress and we've got great security comes Tom Gill, senior vices, president general manager, networking and advanced security business group at VMware. Great to see you. Thanks for coming on. >> Thanks. for having me. >> Yeah, really happy we could have you on. >> I think this is my sixth edition on the theCube. Do I get frequent flyer points or anything? >> Yeah. >> You first get the VIP badge. We'll make that happen. You can start getting credits. >> Okay, there we go. >> We won't interrupt you. Seriously, you got a great story in security here. The security story is kind of embedded everywhere, so it's not called out and blown up and talked specifically about on stage. It's kind of in all the narratives in the VM World for this year. But you guys have an amazing security story. So let's just step back and to set context. Tell us the security story for what's going on here at VMware and what that means to this supercloud, multi-cloud and ongoing innovation with VMware. >> Yeah, sure thing. So probably the first thing I'll point out is that security's not just built in at VMware. It's built differently. So, we're not just taking existing security controls and cut and pasting them into our software. But we can do things because of our platform, because of the virtualization layer that you really can't do with other security tools. And where we're very, very focused is what we call lateral security or East-West movement of an attacker. 'Cause frankly, that's the name of the game these days. Attackers, you've got to assume that they're already in your network. Already assume that they're there. Then how do we make it hard for them to get to the stuff that you really want? Which is the data that they're going after. And that's where we really should. >> All right. So we've been talking a lot, coming into VMware Explore, and here, the event. About two things. Security, as a state. >> Yeah. >> I'm secure right now. >> Yeah. >> Or I think I'm secure right now, even though someone might be in my network or in my environment. To the notion of being defensible. >> Yeah. >> Meaning I have to defend and be ready at a moment's notice to attack, fight, push back, red team, blue team. Whatever you're going to call it. But something's happening. I got to be able to defend. >> Yeah. So what you're talking about is the principle of Zero Trust. When I first started doing security, the model was we have a perimeter. And everything on one side of the perimeter is dirty, ugly, old internet. And everything on this side, known good, trusted. What could possibly go wrong. And I think we've seen that no matter how good you make that perimeter, bad guys find a way in. So Zero Trust says, you know what? Let's just assume they're already in. Let's assume they're there. How do we make it hard for them to move around within the infrastructure and get to the really valuable assets? 'Cause for example, if they bust into your laptop, you click on a link and they get code running on your machine. They might find some interesting things on your machine. But they're not going to find 250 million credit cards. >> Right. >> Or the script of a new movie or the super secret aircraft plans. That lives in a database somewhere. And so it's that movement from your laptop to that database. That's where the damage is done and that's where VMware shines. >> So if they don't have the right to get to that database, they're not in. >> And it's not even just the right. So they're so clever and so sneaky that they'll steal a credential off your machine, go to another machine, steal a credential off of that. So, it's like they have the key to unlock each one of these doors. And we've gotten good enough where we can look at that lateral movement, even though it has a credential and a key, we're like wait a minute. That's not a real CIS Admin making a change. That's ransomware. And that's where you. >> You have to earn your way in. >> That's right. That's right. Yeah. >> And we're all kinds of configuration errors. But also some user problems. I've heard one story where there's so many passwords and username and passwords and systems that the bad guys scour, the dark web for passwords that have been exposed. >> Correct. >> And go test them against different accounts. Oh one hit over here. >> Correct. >> And people don't change their passwords all the time. >> Correct. >> That's a known vector. >> Just the idea that users are going to be perfect and never make a mistake. How long have we been doing this? Humans are the weakest link. So people are going to make mistakes. Attackers are going to be in. Here's another way of thinking about it. Remember log4j? Remember that whole fiasco? Remember that was at Christmas time. That was nine months ago. And whoever came up with that vulnerability, they basically had a skeleton key that could access every network on the planet. I don't know if a single customer that said, "Oh yeah, I wasn't impacted by log4j." So here's some organized entity had access to every network on the planet. What was the big breach? What was that movie script that got stolen? So there wasn't one, right? We haven't heard anything. So the point is, the goal of attackers is to get in and stay in. Imagine someone breaks into your house, steals your laptop and runs. That's a breach. Imagine someone breaks into your house and stays for nine months. It's untenable, in the real world, right? >> Right. >> We don't know in there, hiding in the closet. >> They're still in. >> They're watching everything. >> Hiding in your closet, exactly. >> Moving around, nibbling on your cookies. >> Drinking your beer. >> Yeah. >> So let's talk about how this translates into the new reality of cloud-native. Because now you hear about automated pentesting is a new hot thing right now. You got antivirus on data is hot within APIs, for instance. >> Yeah. >> API security. So all kinds of new hot areas. Cloud-native is very iterative. You know, you can't do a pentest every week. >> Right. >> You got to do it every second. >> So this is where it's going. It's not so much simulation. It's actually real testing. >> Right. Right. >> How do you view that? How does that fit into this? 'cause that seems like a good direction to me. >> Yeah. If it's right in, and you were talking to my buddy, Ahjay, earlier about what VMware can do to help our customers build cloud native applications with Tanzu. My team is focused on how do we secure those applications? So where VMware wants to be the best in the world is securing these applications from within. Looking at the individual piece parts and how they talk to each other and figuring out, wait a minute, that should never happen. By almost having an x-ray machine on the innards of the application. So we do it for both for VMs and for container based applications. So traditional apps are VM based. Modern apps are container based. And we have a slightly different insertion mechanism. It's the same idea. So for VMs, we do it with a hypervisor with NSX. We see all the inner workings. In a container world we have this thing called a service mesh that lets us look at each little snippet of code and how they talk to each other. And once you can see that stuff, then you can actually apply. It's almost like common sense logic of like, wait a minute. This API is giving back credit card numbers and it gives five an hour. All of a sudden, it's now asking for 20,000 or a million credit cards. That doesn't make any sense. The anomalies stick out like a sore thumb. If you can see them. At VMware, our unique focus in the infrastructure is that we can see each one of these little transactions and understand the conversation. That's what makes us so good at that East-West or lateral security. >> You don't belong in this room, get out or that that's some weird call from an in memory database, something over here. >> Exactly. Where other security solutions won't even see that. It's not like there algorithms aren't as good as ours or better or worse. It's the access to the data. We see the inner plumbing of the app and therefore we can protect the app from. >> And there's another dimension that I want to get in the table here. 'Cause to my knowledge only AWS, Google, I believe Microsoft and Alibaba and VMware have this. >> Correct >> It's Nitro. The equivalent of a Nitro. >> Yes. >> Project Monterey. >> Yeah. >> That's unique. It's the future of computing architectures. Everybody needs a Nitro. I've written about this. >> Yeah. >> Right. So explain your version. >> Yeah. >> It's now real. >> Yeah. >> It's now in the market, right? >> Yeah. >> Or soon will be. >> Here's our mission. >> Salient aspects. >> Yeah. Here's our mission of VMware. Is that we want to make every one of our enterprise customers. We want their private cloud to be as nimble, as agile, as efficient as the public cloud. >> And secure. >> And secure. In fact, I'll argue, we can make it actually more secure because we're thinking about putting security everywhere in this infrastructure. Not just on the edges of it. Okay. How do we go on that journey? As you pointed out, the public cloud providers realized five years ago that the right way to build computers was not just a CPU and a graphics process unit, GPU. But there's this third thing that the industry's calling a DPU, data processing unit. And so there's kind of three pieces of a computer. And the DPU is sometimes called a Smartnic. It's the network interface card. It does all that network handling and analytics and it takes it off the CPU. So they've been building and deploying those systems themselves. That's what Nitro is. And so we have been working with the major Silicon vendors to bring that architecture to everybody. So with vSphere 8, we have the ability to take the network processing, that East-West inspection I talked about, take it off of the CPU and put it into this dedicated processing element called the DPU and free up the CPU to run the applications that Ahjay and team are building. >> So no performance degradation at all? >> Correct. To CPU offload. >> So even the opposite, right? I mean you're running it basically Bare Metal speeds. >> Yes, yes and yes. >> And you're also isolating the storage from the security, the management, and. >> There's an isolation angle to this, which is that firewall, that we're putting everywhere. Not just that the perimeter, but we put it in each little piece of the server is running when it runs on one of these DPUs it's a different memory space. So even if an attacker gets to root in the OS, they it's very, very, never say never, but it's very difficult. >> So who has access to that resource? >> Pretty much just the infrastructure layer, the cloud provider. So it's Amazon, Google, Microsoft, and the enterprise. >> Application can't get in. >> Can't get in there. Cause you would've to literally bridge from one memory space to another. Never say never, but it would be very. >> But it hasn't earned the trust to get. >> It's more than barbwire. It's multiple walls. >> Yes. And it's like an air gap. It puts an air gap in the server itself so that if the server is compromised, it's not going to get into the network. Really powerful. >> What's the big thing that you're seeing with this supercloud transition. We're seeing multi-cloud and this new, not just SaaS hosted on the cloud. >> Yeah. >> You're seeing a much different dynamic of, combination of large scale CapEx, cloud-native, and then now cloud-native drills on premises and edge. Kind of changing what a cloud looks like if the cloud's on a cloud. >> Yeah. >> So we're the customer, I'm building on a cloud and I have on premise stuff. So, I'm getting scale CapEx relief from the hyperscalers. >> I think there's an important nuance on what you're talking about. Which is in the early days of the cloud customers. Remember those first skepticism? Oh, it'll never work. Oh, that's consumer grade. Oh, that's not really going to work. Oh some people realize. >> It's not secure. >> Yeah. It's not secure. >> That one's like, no, no, no it's secure. It works. And it's good. So then there was this sort of over rush. Let's put everything on the cloud. And I had a lot of customers that took VM based applications said, I'm going to move those onto the cloud. You got to take them all apart, put them on the cloud and put them all back together again. And little tiny details like changing an IP address. It's actually much harder than it looks. So my argument is, for existing workloads for VM based workloads, we are VMware. We're so good at running VM based workloads. And now we run them on anybody's cloud. So whether it's your east coast data center, your west coast data center, Amazon, Google, Microsoft, Alibaba, IBM keep going. We pretty much every. >> And the benefit of the customer is what. >> You can literally VMotion and just pick it up and move it from private to public, public to private, private to public, Back and forth. >> Remember when we called Vmotion BS, years ago? >> Yeah. Yeah. >> VMotion is powerful. >> We were very skeptical. We're like, that'll never happen. I mean we were. This supposed to be pat ourselves on the back. >> Well because alchemy. It seems like what you can't possibly do that. And now we do it across clouds. So it's not quite VMotion, but it's the same idea. You can just move these things over. I have one customer that had a production data center in the Ukraine. Things got super tense, super fast and they had to go from their private cloud data center in the Ukraine, to a public cloud data center out of harm's way. They did it over a weekend. 48 hours. If you've ever migrated a data center, that's usually six months. Right. And a lot of heartburn and a lot of angst. Boop. They just drag and dropped and moved it on over. That's the power of what we call the cloud operating model. And you can only do this when all your infrastructures defined in software. If you're relying on hardware, load balancers, hardware, firewalls, you can't move those. They're like a boat anchor. You're stuck with them. And by the way, they're really, really expensive. And by the way, they eat a lot of power. So that was an architecture from the 90's. In the cloud operating model your data center. And this comes back to what you were talking about is just racks and racks of X86 with these magic DPUs, or smart nics, to make any individual node go blisteringly fast and do all the functions that you used to do in network appliances. >> We just had Ahjay taking us to school, and everyone else to school on applications, middleware, abstraction layer. And Kit Culbert was also talking about this across cloud. We're talking supercloud, super pass. If this continues to happen, which we would think it will happen. What does the security posture look like? It feels to me, and again, this is your wheelhouse. If supercloud happens with this kind of past layer where there's vMotioning going on. All kinds of spanning applications and data across environments. >> Yeah. Assume there's an operating system working on behind the scenes. >> Right. >> What's the security posture in all this? >> Yeah. So remember my narrative about the bad guys are getting in and they're moving around and they're so sneaky that they're using legitimate pathways. The only way to stop that stuff, is you've got to understand it at what we call Layer 7. At the application layer. Trying to do security to the infrastructure layer. It was interesting 20 years ago, kind of less interesting 10 years ago. And now it's becoming irrelevant because the infrastructure is oftentimes not even visible. It's buried in some cloud provider. So Layer 7 understanding, application awareness, understanding the APIs and reading the content. That's the name of the game in security. That's what we've been focused on. Nothing to do with the infrastructure. >> And where's the progress bar on that paradigm. One to ten. Ten being everyone's doing it. >> Right now. Well, okay. So we as a vendor can do this today. All the stuff I talked about, reading APIs, understanding the individual services looking at, Hey, wait a minute this credit card anomalies, that's all shipping production code. Where is it in customer adoption life cycle? Early days 10%. So there's a whole lot of headroom for people to understand, Hey, I can put these controls in place. They're software based. They don't require appliances. It's Layer 7, so it has contextual awareness and it's works on every single cloud. >> We talked about the pandemic being an accelerator. It really was a catalyst to really rethink. Remember we used to talk about Pat as a security do over. He's like, yes, if it's the last thing I do, I'm going to fix security. Well, he decided to go try to fix Intel instead. >> He's getting some help from the government. >> But it seems like CISOs have totally rethought their security strategy. And at least in part, as a function of the pandemic. >> When I started at VMware four years ago, Pat sat me down in his office and he said to me what he said to you, which is like, "Tom," he said, "I feel like we have fundamentally changed servers. We fundamentally change storage. We fundamentally change networking. The last piece of the puzzle of security. I want you to go fundamentally change it." And I'll argue that the work that we're doing with this horizontal security, understanding the lateral movement. East- West inspection. It fundamentally changes how security works. It's got nothing to do with firewalls. It's got nothing to do with Endpoint. It's a unique capability that VMware is uniquely suited to deliver on. And so Pat, thanks for the mission. We delivered it and it's available now. >> Those WET web applications firewall for instance are around, I mean. But to your point, the perimeter's gone. >> Exactly. >> And so you got to get, there's no perimeter. so it's a surface area problem. >> Correct. And access. And entry. >> Correct. >> They're entering here easy from some manual error, or misconfiguration or bad password that shouldn't be there. They're in. >> Think about it this way. You put the front door of your house, you put a big strong door and a big lock. That's a firewall. Bad guys come in the window. >> And then the windows open. With a ladder. >> Oh my God. Cause it's hot, bad user behavior trumps good security every time. >> And then they move around room to room. We're the room to room people. We see each little piece of the thing. Wait, that shouldn't happen. Right. >> I want to get you a question that we've been seeing and maybe we're early on this or it might be just a false data point. A lot of CSOs and we're talking to are, and people in industry in the customer environment are looking at CISOs and CSOs, two roles. Chief information security officer, and then chief security officer. Amazon, actually Steven Schmidt is now CSO at Reinforce. They actually called that out. And the interesting point that he made, we had some other situations that verified this, is that physical security is now tied to online, to your point about the service area. If I get a password, I still got the keys to the physical goods too. >> Right. So physical security, whether it's warehouse for them or store or retail. Digital is coming in there. >> Yeah. So is there a CISO anymore? Is it just CSO? What's the role? Or are there two roles you see that evolving? Or is that just circumstance. >> I think it's just one. And I think that the stakes are incredibly high in security. Just look at the impact that these security attacks are having on. Companies get taken down. Equifax market cap was cut 80% with a security breach. So security's gone from being sort of a nuisance to being something that can impact your whole kind of business operation. And then there's a whole nother domain where politics get involved. It determines the fate of nations. I know that sounds grand, but it's true. And so companies care so much about it they're looking for one leader, one throat to choke. One person that's going to lead security in the virtual domain, in the physical domain, in the cyber domain, in the actual. >> I mean, you mention that, but I mean, you look at Ukraine. I mean that cyber is a component of that war. I mean, it's very clear. I mean, that's new. We've never seen. this. >> And in my opinion, the stuff that we see happening in the Ukraine is small potatoes compared to what could happen. >> Yeah. >> So the US, we have a policy of strategic deterrence. Where we develop some of the most sophisticated cyber weapons in the world. We don't use them. And we hope never to use them. Because our adversaries, who could do stuff like, I don't know, wipe out every bank account in North America. Or turn off the lights in New York City. They know that if they were to do something like that, we could do something back. >> This is the red line conversation I want to go there. So, I had this discussion with Robert Gates in 2016 and he said, "We have a lot more to lose." Which is really your point. >> So this brand. >> I agree that there's to have freedom and liberty, you got to strike back with divorce. And that's been our way to balance things out. But with cyber, the red line, people are already in banks. So they're are operating below the red line line. Red line meaning before we know you're in there. So do we move the red line down because, hey, Sony got hacked. The movie. Because they don't have their own militia. >> Yeah. >> If their were physical troops on the shores of LA breaking into the file cabinets. The government would've intervened. >> I agree with you that it creates tension for us in the US because our adversaries don't have the clear delineation between public and private sector. Here you're very, very clear if you're working for the government. Or you work for an private entity. There's no ambiguity on that. >> Collaboration, Tom, and the vendor community. I mean, we've seen efforts to try to. >> That's a good question. >> Monetize private data and private reports. >> So at VMware, I'm very proud of the security capabilities we've built. But we also partner with people that I think of as direct competitors. We've got firewall vendors and Endpoint vendors that we work with and integrate. And so coopetition is something that exists. It's hard. Because when you have these kind of competing. So, could we do more? Of course we probably could. But I do think we've done a fair amount of cooperation, data sharing, product integration, et cetera. And as the threats get worse, you'll probably see us continue to do more. >> And the government is going to trying to force that too. >> And the government also drives standards. So let's talk about crypto. Okay. So there's a new form of encryption coming out called processing quantum. >> Quantum. Quantum computers have the potential to crack any crypto cipher we have today. That's bad. Okay. That's not good at all because our whole system is built around these private communications. So the industry is having conversations about crypto agility. How can we put in place the ability to rapidly iterate the ciphers in encryption. So, when the day quantum becomes available, we can change them and stay ahead of these quantum people. >> Well, didn't NIST just put out a quantum proof algo that's being tested right now by the community? >> There's a lot of work around that. Correct. And NIST is taking the lead on this, but Google's working on it. VMware's working on it. We're very, very active in how do we keep ahead of the attackers and the bad guys? Because this quantum thing is a, it's an x-ray machine. It's like a dilithium crystal that can power a whole ship. It's a really, really, really powerful tool. >> Bad things will happen. >> Bad things could happen. >> Well, Tom, great to have you on the theCube. Thanks for coming on. Take the last minute to just give a plug for what's going on for you here at VMWorld this year, just VMware Explore this year. >> Yeah. We announced a bunch of exciting things. We announced enhancements to our NSX family, with our advanced load balancer. With our edge firewall. And they're all in service of one thing, which is helping our customers make their private cloud like the public cloud. So I like to say 0, 0, 0. If you are in the cloud operating model, you have zero proprietary appliances. You have zero tickets to launch a workload. You have zero network taps and Zero Trust built into everything you do. And that's what we're working on. Pushing that further and further. >> Tom Gill, senior vices president, head of the networking at VMware. Thanks for coming on. We do appreciate it. >> Thanks for having us. >> Always getting the security data. That's killer data and security of the two ops that get the most conversations around DevOps and Cloud Native. This is The theCube bringing you all the action here in San Francisco for VMware Explore 2022. I'm John Furrier with Dave Vellante. Thanks for watching. (bright music)

>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

>>Welcome back everyone Cube's live coverage here. Day two, two sets, three days of cube coverage here at VMware Explorer. This is our 12th year covering VMware's annual conference, formally called world I'm Jean Dave ante. We'd love seeing the progress and we've got great security comes Tom Gill, senior rights, president general manager, networking and advanced security business group at VMware. Great to see you. Thanks for coming on. Thanks >>For having me. Yeah, really happy we could have you on, you know, I think, I think this is my sixth edition on the cube. Like, do I get freaking flyer points or anything? >>Yeah, you get first get the VIP badge. We'll make that happen. You can start getting credits. >>Okay. There we go. >>We won't interrupt you. No, seriously, you got a great story in security here. The security story is kind of embedded everywhere, so it's not like called out and, and blown up and talked specifically about on stage. It's kind of in all the narratives in, in the VM world for this year. Yeah. But you guys have an amazing security story. So let's just step back into set context. Tell us the security story for what's going on here at VMware and what that means to this super cloud multi-cloud and ongoing innovation with VMware. Yeah, >>Sure thing. So, so probably the first thing I'll point out is that, that security's not just built in at VMware it's built differently, right? So we're not just taking existing security controls and cut and pasting them into, into our software. But we can do things because of our platform because of the virtualization layer that you really can't do with other security tools and where we're very, very focused is what we call lateral security or east west movement of an attacker. Cuz frankly, that's the name of the game these days. Right? Attackers, you gotta assume that they're already in your network. Okay. Already assume that they're there, then how do we make it hard for them to get to what the, the stuff that you really want, which is the data that they're, they're going after. Right. And that's where we, >>We really should. All right. So we've been talking a lot coming into world VMware Explorer and here the event about two things security as a state. Yeah. I'm secure right now. Yeah. Or I, I think I'm secure right now, even though someone might be in my network or in my environment to the notion of being defensible. Yeah. Meaning I have to defend and be ready at a moment's notice to attack, fight, push back red team, blue team, whatever you're gonna call it, but something's happening. I gotta be a to defend. Yeah. >>So you, what you're talking about is the principle of zero trust. So the, the, when we, when I first started doing security, the model was we have a perimeter and everything on one side of the perimeter is dirty, ugly, old internet and everything on this side known good, trusted what could possibly go wrong. And I think we've seen that no matter how good you make that perimeter, bad guys find a way in. So zero trust says, you know what? Let's just assume they're already in. Let's assume they're there. How do we make it hard for them to move around within the infrastructure and get to the really valuable assets? Cuz for example, if they bust into your laptop, you click on a link and they get code running on your machine. They might find some interesting things on your machine, but they're not gonna find 250 million credit cards. Right. Or the, the script of a new movie or the super secret aircraft plans, right. That lives in a database somewhere. And so it's that movement from your laptop to that database. That's where the damage is done. Yeah. And that's where VMware shines. If they don't >>Have the right to get to that database, they're >>Not >>In and it's not even just the right, like, so they're so clever. And so sneaky that they'll steal a credential off your machine, go to another machine, steal a credential off of that. So it's like they have the key to unlock each one of these doors and we've gotten good enough where we can look at that lateral movement, even though it has a credential and a key where like, wait a minute, that's not a real CIS admin making a change. That's ransomware. Yeah. Right. And that's, that's where we, you have to earn your way in. That's right. That's >>Right. Yeah. And we're all, there's all kinds of configuration errors. But also some, some I'll just user problems. I've heard one story where there's so many passwords and username and passwords and systems that the bad guy's scour, the dark web for passwords that have been exposed. Correct. And go test them against different accounts. Oh one hit over here. Correct. And people don't change their passwords all the time. Correct? Correct. That's a known, known vector. We, >>We just, the idea that users are gonna be perfect and never make mistake. Like how long have we been doing this? Like humans with the weakest link. Right. So, so, so people are gonna make mistakes. Attackers are gonna be in here's another way of thinking about it. Remember log for J. Remember that whole ago, remember that was a Christmas time. That was nine months ago. And whoever came up with that, that vulnerability, they basically had a skeleton key that could access every network on the planet. I don't know if a single customer that was said, oh yeah, I wasn't impacted by log for J. So seers, some organized entity had access to every network on the planet. What was the big breach? What was that movie script that got stolen? So there wasn't one. Right? We haven't heard anything. So the point is the goal of attackers is to get in and stay in. Imagine someone breaks into your house, steals your laptop and runs. That's a breach. Imagine someone breaks into your house and stays for nine months. Like it's untenable, the real world. Right, right. >>We don't even go in there. They're still in there >>Watching your closet. Exactly. Moving around, nibbling on your ni line, your cookies. You know what I mean? Drinking your beer. >>Yeah. So, so let's talk about how this translates into the new reality of cloud native, because now know you hear about, you know, automated pen testing is a, a new hot thing right now you got antivirus on data. Yeah. Is hot is hot within APIs, for instance. Yeah. API security. So all kinds of new hot areas, cloud native is very iterative. You know, you, you can't do a pen test every week. Right. You gotta do it every second. Right. So this is where it's going. It's not so much simulation. It's actually real testing. Right. Right. How do you view that? How does that fit into this? Cuz that seems like a good direction to me. >>Yeah. It, it, it fits right in. And you were talking to my buddy AJ earlier about what VMware can do to help our customers build cloud native applications with, with Zu, my team is focused on how do we secure those applications? So where VMware wants to be the best in the world is securing these applications from within looking at the individual piece parts and how they talk to each other and figuring out, wait a minute. That, that, that, that, that should never happen by like almost having an x-ray machine on the ins of the application. So we do it for both for VMs and for container based applications. So traditional apps are VM based. Modern apps are container based and we, and we have a slightly different insertion mechanism. It's the same idea. So for VMs, we do it with the hypervisor, with NSX, we see all the inner workings in a container world. >>We have this thing called a service me that lets us look at each little snippet of code and how they talk to each other. And once you can see that stuff, then you can actually apply. It's almost like common sense logic of like, wait a minute. You know, this API is giving back credit card numbers and it gives five an hour. All of a sudden, it's now asking for 20,000 or a million credit card that doesn't make any sense. Right? The anomalies stick out like a sore thumb. If you can see them. And VMware, our unique focus in the infrastructure is that we can see each one of these little transactions and understand the conversation. That's what makes us so good at that east west or lateral >>Security. Yeah. You don't belong in this room, get out or that that's right. Some weird call from an in-memory database, something over >>Here. Exactly. Where other, other security solutions won't even see that. Right. It's not like there algorithms aren't as good as ours or, or better or worse. It's that, it's the access to the data. We see the, the, the, the inner plumbing of the app. And therefore we can protect >>The app from, and there's another dimension that I wanna get in the table here, cuz to my knowledge only AWS, Google, I, I believe Microsoft and Alibaba and VMware have this, it nitro the equivalent of a nitro. Yes. Project Monterey. Yeah. That's unique. It's the future of computing architectures. Everybody needs a nitro. I've I've written about this. Yeah. Right. So explain your version. Yeah. Project. It's now real. It's now in the market right. Or soon will be. Yeah. Here. Here's our mission salient aspects. Yeah. >>Here's our mission of VMware is that we wanna make every one of our enterprise customers. We want their private cloud to be as nimble, as agile, as efficient as the public cloud >>And secure >>And secure. In fact, I'll argue, we can make it actually more secure because we're thinking about putting security everywhere in this infrastructure. Right. Not just on the edges of it. So, so, so, okay. How do we go on that journey? As you pointed out, the public cloud providers realized, you know, five years ago that the right way to build computers was not just a CPU and a GPU graphics process, unit GPU, but there's this third thing that the industry's calling a DPU data processing unit. So there's kind of three pieces of a computer. And the DPU is sometimes called a smart Nick it's the network interface card. It does all that network handling and analytics and it takes it off the CPU. So they've been building and deploying those systems themselves. That's what nitro is. And so we have been working with the major Silicon vendors to bring that architecture to everybody. So, so with vSphere eight, we have the ability to take the network processing that east west inspection. I talked about, take it off of the CPU and put it into this dedicated processing element called the DPU and free up the CPU to run the applications that AJ and team are building. >>So no performance degradation at all, correct. >>To CPU >>Offload. So even the opposite, right? I mean you're running it basically bare metal speeds. >>Yes, yes. And yes. >>And, and, and you're also isolating the, the storage right from the, from the, the, the security, the management. And >>There's an isolation angle to this, which is that firewall that we're putting everywhere. Not just that the perimeter, we put it in each little piece of the server is running when it runs on one of these DPU, it's a different memory space. So even if, if an attacker gets to root in the OS, they it's very, very, never say never, but it's very difficult. >>So who has access to that? That, that resource >>Pretty much just the infrastructure layer, the cloud provider. So it's Google Microsoft, you know, and the enterprise, the >>Application can't get in, >>Can't get in there. Cause it, you would've to literally bridge from one memory space to another, never say never, but it would be very, very, >>It hasn't earned the trust >>To get it's more than Bob wire. It's, it's, it's multiple walls and, and >>It's like an air gap. It puts an air gap in the server itself so that if the server's compromised, it's not gonna get into the network really powerful. >>What's the big thing that you're seeing with this super cloud transition we're seeing, we're seeing, you know, multicloud and this new, not just SAS hosted on the cloud. Yeah. You're seeing a much different dynamic of combination of large scale CapEx, cloud native. And then now cloud native develops on premises and edge kind of changing what a cloud looks like if the cloud's on a cloud. So rubber customer, I'm building on a cloud and I have on-prem stuff. So I'm getting scale CapEx relief from the, from the cap, from the hyperscalers. >>I, I think there's an important nuance on what you're talking about, which is, is in the early days of the cloud customers. Remember those first skepticism? Oh, it'll never work. Oh, that's consumer grade. Oh, that's not really gonna work. And some people realize >>It's not secure. Yeah. >>It, it's not secure that one's like, no, no, no, it's secure. It works. And it, and it's good. So then there was this sort of over rush. Like let's put everything on the cloud. And I had a lot of customers that took VM based applications said, I'm gonna move those onto the cloud. You gotta take 'em all apart, put 'em on the cloud and put 'em all back together again. And little tiny details, like changing an IP address. It's actually much harder than it looks. So my argument is for existing workloads for VM based workloads, we are VMware. We're so good at running VM based workloads. And now we run them on anybody's cloud. So whether it's your east coast data center, your west coast data center, Amazon, Google, Microsoft, Alibaba, IBM keep going. Right. We pretty much every, and >>The benefit of the customer is what you >>Can literally vMotion and just pick it up and move it from private to public public, to private, private, to public, public, back and forth. >>Remember when we called VMO BS years ago. Yeah, yeah, yeah. >>We were really, skeptic is >>Powerful. We were very skeptical. We're like, that'll never happen. I mean, we were, I mean, it's supposed to be pat ourselves on the back. We, well, >>Because it's alchemy, it seems like what you can't possibly do that. Right. And so, so, so, and now we do it across clouds, right? So we can, you know, it's not quite VMO, but it's the same idea. You can just move these things over. I have one customer that had a production data center in the Ukraine, things got super tense, super fast, and they had to go from their private cloud data center in the Ukraine to a public cloud data center outta harm's way. They did it over a weekend, 48 hours. If you've ever migrated data, that's usually six months, right? And a lot of heartburn and a lot of angst, boom. They just drag and drop, moved it on over. That's the power of what we call the cloud operating model. And you can only do this when all your infrastructure's defined in software. >>If you're relying on hardware, load, balancers, hardware, firewalls, you can't move those. They're like a boat anchor. You're stuck with them. And by the way, really, really expensive. And by the way, they eat a lot of power, right? So that was an architecture from the nineties in the cloud operating model, your data center. And this goes back to what you were talking about is just racks and racks of X 86 with these magic DPU or smart necks to make any individual node go blisteringly fast and do all the functions that you used to do in network appliances. >>We just said, AJ taking us to school and everyone else to school on applications, middleware abstraction layer. Yeah. And kit Culver was also talking about this across cloud. We're talking super cloud, super pass. If this continues to happen, which we would think it will happen. What does the security posture look like? It has. It feels to me. And again, this is, this is your wheelhouse. If super cloud happens with this kind of past layer where there's B motioning going on, all kinds of yeah. Spanning applications and data. Yeah. Across environments. Yeah. Assume there's an operating system working on behind the scenes. Right. What's the security posture in all this. Yeah. >>So remember my narrative about like VA guys are getting in and they're moving around and they're so sneaky that they're using legitimate pathways. The only way to stop that stuff is you've gotta understand it at what, you know, we call layer seven at the application layer the in, you know, trying to do security, the infrastructure layer. It was interesting 20 years ago, kind of less interesting 10 years ago. And now it's becoming irrelevant because the infrastructure is oftentimes not even visible, right. It's buried in some cloud provider. So layer seven, understanding, application awareness, understanding the APIs and reading the content. That's the name of the game in security. That's what we've been focused on. Right. Nothing to do with >>The infras. And where's the progress bar on that, that paradigm early one at the 10, 10 being everyone's doing it >>Right now. Well, okay. So we, as a vendor can do this today. All the stuff I talked about about reading APIs, understanding the, the individual services looking at, Hey, wait a minute. This credit card anomalies, that's all shipping production code. Where is it in customer adoption life cycle, early days, 10%. So, so there's a whole lot of headroom. We, for people to understand, Hey, I can put these controls in place. There's software based. They don't require appliances. It's layer seven. So it has contextual awareness and it's works on every single cloud. >>You know, we talk about the pandemic. Being an accelerator really was a catalyst to really rethink. Remember we used to talk about pat his security a do over. He's like, yes, if it's the last thing I'm due, I'm gonna fix security. Well, he decided to go try to fix Intel instead, but, >>But, but he's getting some help from the government, >>But it seems like, you know, CISOs have totally rethought, you know, their security strategy. And, and at least in part is a function of the pandemic. >>When I started at VMware four years ago, pat sat me down in his office and he said to me what he said to you, which is like Tom, he said, I feel like we have fundamentally changed servers. We fundamentally changed storage. We fundamentally changed networking. The last piece of the puzzle of security. I want you to go fundamentally change it. And I'll argue that the work that we're doing with this, this horizontal security understanding the lateral movement east west inspection, it fundamentally changes how security works. It's got nothing to do with firewalls. It's got nothing to do with endpoint. It's a unique capability that VMware is uniquely suited to deliver on. And so pat, thanks for the mission. We delivered it and available >>Those, those wet like web applications firewall for instance are, are around. I mean, but to your point, the perimeter's gone. Exactly. And so you gotta get, there's no perimeter. So it's a surface area problem. Correct. And access and entry, correct. They're entering here easy from some manual error or misconfiguration or bad password that shouldn't be there. They're >>In. Think about it this way. You put the front door of your house, you put a big strong door and a big lock. That's a firewall bad guys, come in the window. Right. And >>Then the window's open and the window with a ladder room. Oh my >>God. Cause it's hot, bad user behavior. Trump's good security >>Every time. And then they move around room to room. We're the room to room people. Yeah. We see each little piece of the thing. Wait, that shouldn't happen. Right. >>I wanna get you a question that we've been seeing and maybe we're early on this, or it might be just a, a false data point. A lot of CSOs and we're talking to are, and people in industry in the customer environment are looking at CSOs and CSOs, two roles, chief information security officer, and then chief security officer Amazon, actually, Steven Schmidt is now CSO at reinforced. They actually called that out. Yeah. And the, and the interesting point that he made, we've had some other situations that verified. This is that physical security is now tied to online to your point about the service area. If I get a password, I still at the keys to the physical goods too. Right. Right. So physical security, whether it's warehouse for them is, or store or retail digital is coming in there. Yeah. So is there a CSO anymore? Is it just CSO? What's the role or are there two roles you see that evolving or is that just, >>Well, >>I circumstance, >>I, I think it's just one. And I think that, that, you know, the stakes are incredibly high in security. Just look at the impact that these security attacks are having on it. It, you know, companies get taken down, Equifax market cap was cut, you know, 80% with a security breach. So security's gone from being sort of a nuisance to being something that can impact your whole kind of business operation. And then there's a whole nother domain where politics get involved. Right. It determines the fate of nations. I know that sounds grand, but it's true. Yeah. And so, so, so companies care so much about it. They're looking for one liter, one throat to choke, you know, one person that's gonna lead security in the virtual domain, in the physical domain, in the cyber domain, in, in, you know, in the actual, well, it is, >>I mean, you mentioned that, but I mean, mean you look at Ukraine. I mean the, the, that, that, that cyber is a component of that war. I mean, that's very clear. I mean, that's, that's new, we've never seen >>This. And in my opinion, the stuff that we see happening in the Ukraine is small potatoes compared to what could happen. Yeah, yeah. Right. So the us, we have a policy of, of strategic deterrents where we develop some of the most sophisticated cyber weapons in the world. We don't use them and we hope never to use them because the, the, our adversaries who could do stuff like, oh, I don't know, wipe out every bank account in north America, or turn off the lights in New York city. They know that if they were to do something like that, we could do something back. >>I, this discuss, >>This is the red line conversation I wanna go there. So >>I had this discussion with Robert Gates in 2016 and he said, we have a lot more to lose, which is really >>Your point. So this brand, so I agree that there's the, to have freedom and Liberty, you gotta strike back with divorce and that's been our way to, to balance things out. Yeah. But with cyber, the red line, people are already in banks. So they're addresses are operating below the red line, red line, meaning before we know you're in there. So do we move the red line down because Hey, Sony got hacked the movie because they don't have their own militia. Yeah. If they were physical troops on the shores of LA breaking into the file cabinets. Yeah. The government would've intervened. >>I, I, I agree with you that it creates, it creates tension for us in the us because our, our adversaries don't have the clear delineation between public and private sector here. You're very, very clear if you're working for the government or you work for an private entity, there's no ambiguity on that. And so, so we have different missions in each department. Other countries will use the same cyber capabilities to steal intellectual, you know, a car design as they would to, you know, penetrate a military network. And that creates a huge hazard for us on the us. Cause we don't know how to respond. Yeah. Is that a civil issue? Is that a, a, a military issue? And so, so it creates policy ambiguity. I still love the clarity of separation of, you know, sort of the various branches of government separation of government from, >>But that, but, but bureau on multinational corporation, you then have to, your cyber is a defensible. You have to build the defenses >>A hundred percent. And I will also say that even though there's a clear D mark between government and private sector, there's an awful lot of cooperation. So, so our CSO, Alex toshe is actively involved in the whole intelligence community. He's on boards and standards and we're sharing because we have a common objective, right? We're all working together to fight these bad guys. And that's one of the things I love about cyber is that that even direct competitors, two big banks that are rivals on the street are working together to share security information and, and private, is >>There enough? Is collaboration Tom in the vendor community? I mean, we've seen efforts to try to, that's a good question, monetize private data, you know? Yeah. And private reports and, >>And, you know, like, so at VMware, we, we, I'm very proud of the security capabilities we've built, but we also partner with people that I think of as direct competitors, we've got firewall vendors and endpoint vendors that we work with and integrate. And so cooperation is something that exists. It's hard, you know, because when you have these kind of competing, you know, so could we do more? Of course we probably could, but I do think we've done a fair amount of cooperation, data sharing, product integration, et cetera, you know, and, you know, as the threats get worse, you'll probably see us continue to do more. >>And the governments is gonna trying to force that too. >>And, and the government also drives standards. So let's talk about crypto. Okay. So there's a new form of encryption coming out called quantum processing, calling out. Yeah. Yeah. Quantum, quantum computers have the potential to crack any crypto cipher we have today. That's bad. Okay. Right. That's not good at all because our whole system is built around these private communications. So, so the industry is having conversations about crypto agility. How can we put in place the ability to rapidly iterate the ciphers in encryption? So when the day quantum becomes available, we can change them and stay ahead of these quantum people. Well, >>Didn't this just put out a quantum proof algo that's being tested right now by the, the community. >>There's a lot of work around that. Correct. And, and, and this is taking the lead on this, but you know, Google's working on it, VMware's working on it. We're very, very active in how do we keep ahead of the attackers and the bad guys? Because this quantum thing is like a, it's a, it's a x-ray machine. You know, it's like, it's like a, a, a di lithium crystal that can power a whole ship. Right. It's a really, really, really powerful >>Tool. It's bad. Things will happen. >>Bad things could happen. >>Well, Tom, great to have you on the cube. Thanks for coming. Take the last minute to just give a plug for what's going on for you here at world this year, VMware explore this year. Yeah. >>We announced a bunch of exciting things. We announced enhancements to our, our NSX family, with our advanced load balancer, with our edge firewall. And they're all in service of one thing, which is helping our customers make their private cloud like the public cloud. So I like to say 0, 0, 0. If you are in the cloud operating model, you have zero proprietary appliances. You have zero tickets to launch a workload. You have zero network taps and zero trust built into everything you do. And that's, that's what we're working on and pushing that further and further. >>Tom Gill, senior vices president head of the networking at VMware. Thanks for coming up for you. Appreciate >>It. Yes. Thanks for having guys >>Always getting the security data. That's killer data and security of the two ops that get the most conversations around dev ops and cloud native. This is the queue bringing you all the action here in San Francisco for VMware. Explore 2022. I'm John furrier with Dave, Alan. Thanks for watching.

(upbeat music) >> Welcome back to San Francisco, "theCUBE" is live, our day two coverage of VMware Explore 2022 continues. Lisa Martin with Dave Nicholson. Dave and I are pleased to welcome Jason Collier, principal member of technical staff at AMD to the program. Jason, it's great to have you. >> Thank you, it's great to be here. >> So what's going on at AMD? I hear you have some juicy stuff to talk about. >> Oh, we've got a ton of juicy stuff to talk about. Clearly the Project Monterey announcement was big for us, so we've got that to talk about. Another thing that I really wanted to talk about was a tool that we created and we call it, it's the VMware Architecture Migration Tool, call it VAMT for short. It's a tool that we created and we worked together with VMware and some of their professional services crew to actually develop this tool. And it is also an open source based tool. And really the primary purpose is to easily enable you to move from one CPU architecture to another CPU architecture, and do that in a cold migration fashion. >> So we're probably not talking about CPUs from Tandy, Radio Shack systems, likely this would be what we might refer to as other X86 systems. >> Other X86 systems is a good way to refer to it. >> So it's interesting timing for the development and the release of a tool like this, because in this sort of X86 universe, there are players who have been delayed in terms of delivering their next gen stuff. My understanding is AMD has been public with the idea that they're on track for by the end of the year, Genoa, next gen architecture. So can you imagine a situation where someone has an existing set of infrastructure and they're like, hey, you know what I want to get on board, the AMD train, is this something they can use from the VMware environment? >> Absolutely, and when you think about- >> Tell us exactly what that would look like, walk us through 100 servers, VMware, 1000 VMs, just to make the math easy. What do you do? How does it work? >> So one, there's several things that the tool can do, we actually went through, the design process was quite extensive on this. And we went through all of the planning phases that you need to go through to do these VM migrations. Now this has to be a cold migration, it's not a live migration. You can't do that between the CPU architectures. But what we do is you create a list of all of the virtual machines that you want to migrate. So we take this CSV file, we import this CSV file, and we ask for things like, okay, what's the name? Where do you want to migrate it to? So from one cluster to another, what do you want to migrate it to? What are the networks that you want to move it to? And then the storage platform. So we can move storage, it could either be shared storage, or we could move say from VSAN to VSAN, however you want to set it up. So it will do those storage migrations as well. And then what happens is it's actually going to go through, it's going to shut down the VM, it's going to take a snapshot, it is going to then basically move the compute and/or storage resources over. And once it does that, it's going to power 'em back up. And it's going to check, we've got some validation tools, where it's going to make sure VM Tools comes back up where everything is copacetic, it didn't blue screen or anything like that. And once it comes back up, then everything's good, it moves onto the next one. Now a couple of things that we've got feature wise, we built into it. You can parallelize these tasks. So you can say, how many of these machines do you want to do at any given time? So it could be, say 10 machines, 50 machines, 100 machines at a time, that you want to go through and do this move. Now, if it did blue screen, it will actually roll it back to that snapshot on the origin cluster. So that there is some protection on that. A couple other things that are actually in there are things like audit tracking. So we do full audit logging on this stuff, we take a snapshot, there's basically kind of an audit trail of what happens. There's also full logging, SYS logging, and then also we'll do email reporting. So you can say, run this and then shoot me a report when this is over. Now, one other cool thing is you can also actually define a change window. So I don't want to do this in the middle of the afternoon on a Tuesday. So I want to do this later at night, over the weekend, you can actually just queue this up, set it, schedule it, it'll run. You can also define how long you want that change window to be. And what it'll do, it'll do as many as it can, then it'll effectively stop, finish up, clean up the tasks and then send you a report on what all was successfully moved. >> Okay, I'm going to go down the rabbit hole a little bit on this, 'cause I think it's important. And if I say something incorrect, you correct me. >> No problem. >> In terms of my technical understanding. >> I got you. >> So you've got a VM, essentially a virtual machine typically will consist of an entire operating system within that virtual machine. So there's a construct that containerizes, if you will, the operating system, what is the difference, where is the difference in the instruction set? Where does it lie? Is it in the OS' interaction with the CPU or is it between the construct that is the sort of wrapper around the VM that is the difference? >> It's really primarily the OS, right? And we've not really had too many issues doing this and most of the time, what is going to happen, that OS is going to boot up, it's going to recognize the architecture that it's on, it's going to see the underlying architecture, and boot up. All the major operating systems that we test worked fine. I mean, typically they're going to work on all the X86 platforms. But there might be instruction sets that are kind of enabled in one architecture that may not be in another architecture. >> And you're looking for that during this process. >> Well usually the OS itself is going to kind of detect that. So if it pops up, the one thing that is kind of a caution that you need to look for. If you've got an application that's explicitly using an instruction set that's on one CPU vendor and not the other CPU vendor. That's the one thing where you're probably going to see some application differences. That said, it'll probably be compatible, but you may not get that instruction set advantage in it. >> But this tool remediates against that. >> Yeah, and what we do, we're actually using VM Tools itself to go through and validate a lot of those components. So we'll look and make sure VM Tools is enabled in the first place, on the source system. And then when it gets to the destination system, we also look at VM Tools to see what is and what is not enabled. >> Okay, I'm going to put you on the spot here. What's the zinger, where doesn't it work? You already said cold, we understand, you can schedule for cold migrations, that's not a zinger. What's the zinger, where doesn't it work? >> It doesn't work like, live migrations just don't work. >> No live, okay, okay, no live. What about something else? What's the oh, you've got that version, you've got that version of X86 architecture, it-won't work, anything? >> A majority of those cases work, where it would fail, where it's going to kick back and say, hey, VM Tools is not installed. So where you would see this is if you're running a virtual appliance from some vendor, like insert vendor here that say, got a firewall, or got something like that, and they don't have VM Tools enabled. It's going to fail it out of the gate, and say, hey, VM Tools is not on this, you might want to manually do it. >> But you can figure out how to fix that? >> You can figure out how to do that. You can also, and there's a flag in there, so in kind of the options that you give it, you say, ignore VM Tools, don't care, move it anyway. So if you've got less, some VMs that are in there, but they're not a priority VM, then it's going to migrate just fine. >> Got It. >> Can you elaborate a little bit on the joint development work that AMD and VMware are doing together and the value in it for customers? >> Yeah, so it's one of those things we worked with VMware to basically produce this open source tool. So we did a lot of the core component and design and we actually engaged VMware Professional Services. And a big shout out to Austin Browder. He helped us a ton in this project specifically. And we basically worked, we created this, kind of co-designed, what it was going to look like. And then jointly worked together on the coding, of pulling this thing together. And then after that, and this is actually posted up on VMware's public repos now in GitHub. So you can go to GitHub, you can go to the VMware samples code, and you can download this thing that we've created. And it's really built to help ease migrations from one architecture to another. So if you're looking for a big data center move and you got a bunch of VMs to move. I mean, even if it's same architecture to same architecture, it's definitely going to ease the pain of going through and doing a migration of, it's one thing when you're doing 10 machines, but when you're doing 10,000 virtual machines, that's a different story. It gets to be quite operationally inefficient. >> I lose track after three. >> Yeah. >> So I'm good for three, not four. >> I was going to ask you what your target market segment is here. Expand on that a little bit and talk to me about who you're working with and those organizations. >> So really this is targeted toward organizations that have large deployments in enterprise, but also I think this is a big play with channel partners as well. So folks out there in the channel that are doing these migrations and they do a lot of these, when you're thinking about the small and mid-size organizations, it's a great fit for that. Especially if they're kind of doing that upgrade, the lift and shift upgrade, from here's where you've been five to seven years on an architecture and you want to move to a new architecture. This is really going to help. And this is not a point and click GUI kind of thing. It's command line driven, it's using PowerShell, we're using PowerCLI to do the majority of this work. And for channel partners, this is an excellent opportunity to put the value and the value add and VAR, And there's a lot of opportunity for, I think, channel partners to really go and take this. And once again, being open source. We expect this to be extensible, we want the community to contribute and put back into this to basically help grow it and make it a more useful tool for doing these cold migrations between CPU architectures. >> Have you seen any in the last couple of years of dynamics, obviously across the world, any industries in particular that are really leading edge for what you guys are doing? >> Yeah, that's really, really interesting. I mean, we've seen it, it's honestly been a very horizontal problem, pretty much across all vertical markets. I mean, we've seen it in financial services, we've seen it in, honestly, pretty much across the board. Manufacturing, financial services, healthcare, we have seen kind of a strong interest in that. And then also we we've actually taken this and presented this to some of our channel partners as well. And there's been a lot of interest in it. I think we presented it to about 30 different channel partners, a couple of weeks back about this. And I got contact from 30 different channel partners that said they're interested in basically helping us work on it. >> Tagging on to Lisa's question, do you have visibility into the AMD thought process around the timing of your next gen release versus others that are competitors in the marketplace? How you might leverage that in terms of programs where partners are going out and saying, hey, perfect time, you need a refresh, perfect time to look at AMD, if you haven't looked at them recently. Do you have any insight into that in what's going on? I know you're focused on this area. But what are your thoughts on, well, what's the buzz? What's the buzz inside AMD on that? >> Well, when you look overall, if you look at the Gartner Hype Cycle, when VMware was being broadly adopted, when VMware was being broadly adopted, I'm going to be blunt, and I'm going to be honest right here, AMD didn't have a horse in the race. And the majority of those VMware deployments we see are not running on AMD. Now that said, there's an extreme interest in the fact that we've got these very cored in systems that are now coming up on, now you're at that five to seven year refresh window of pulling in new hardware. And we have extremely attractive hardware when it comes to running virtualized workloads. The test cluster that I'm running at home, I've got that five to seven year old gear, and I've got some of the, even just the Milan systems that we've got. And I've got three nodes of another architecture going onto AMD. And when I got these three nodes completely maxed to the number of VMs that I can run on 'em, I'm at a quarter of the capacity of what I'm putting on the new stuff. So what you get is, I mean, we worked the numbers, and it's definitely, it's like a 30% decrease in the amount of resources that you need. >> That's a compelling number. >> It's a compelling number. >> 5%, 10%, nobody's going to do anything for that. You talk 30%. >> 30%. It's meaningful, it's meaningful. Now you you're out of Austin, right? >> Yes. >> So first thing I thought of when you talk about running clusters in your home is the cost of electricity, but you're okay. >> I'm okay. >> You don't live here, you don't live here, you don't need to worry about that. >> I'm okay. >> Do you have a favorite customer example that you think really articulates the value of AMD when you're in customer conversations and they go, why AMD and you hit back with this? >> Yeah. Actually it's funny because I had a conversation like that last night, kind of random person I met later on in the evening. We were going through this discussion and they were facing exactly this problem. They had that five to seven year infrastructure. It's funny, because the guy was a gamer too, and he's like, man, I've always been a big AMD fan, I love the CPUs all the way since back in basically the Opterons and Athlons right. He's like, I've always loved the AMD systems, loved the graphics cards. And now with what we're doing with Ryzen and all that stuff. He's always been a big AMD fan. He's like, and I'm going through doing my infrastructure refresh. And I told him, I'm just like, well, hey, talk to your VAR and have 'em plug some AMD SKUs in there from the Dells, HPs and Lenovos. And then we've got this tool to basically help make that migration easier on you. And so once we had that discussion and it was great, then he swung by the booth today and I was able to just go over, hey, this is the tool, this is how you use it, here's all the info. Call me if you need any help. >> Yeah, when we were talking earlier, we learned that you were at Scale. So what are you liking about AMD? How does that relate? >> The funny thing is this is actually the first time in my career that I've actually had a job where I didn't work for myself. I've been doing venture backed startups the last 25 years and we've raised couple hundred million dollars worth of investment over the years. And so one, I figured, here I am going to AMD, a larger corporation. I'm just like, am I going to be able to make it a year? And I have been here longer than a year and I absolutely love it. The culture at AMD is amazing. We still have that really, I mean, almost it's like that underdog mentality within the organization. And the team that I'm working with is a phenomenal team. And it's actually, our EVP and our Corp VP, were actually my executive sponsors, we were at a prior company. They were one of my executive sponsors when I was at Scale. And so my now VP boss calls me up and says, hey, I'm putting a band together, are you interested? And I was kind of enjoying a semi-retirement lifestyle. And then I'm just like, man, because it's you, yes, I am interested. And the group that we're in, the work that we're doing, the way that we're really focusing on forward looking things that are affecting the data center, what's going to be the data center like three to five years from now. It's exciting, and I am having a blast, I'm having the time of my life. I absolutely love it. >> Well, that relationship and the trust that you will have with each other, that bleeds into the customer conversations, the partner conversations, the employee conversations, it's all inextricably linked. >> Yes it is. >> And we want to know, you said three to five years out, like what? Like what? Just general futurist stuff, where do you think this is going. >> Well, it's interesting. >> So moon collides with the earth in 2025, we already know that. >> So we dialed this back to the Pensando acquisition. When you look at the Pensando acquisition and you look at basically where data centers are today, but then you look at where basically the big hyperscalers are. You look at an AWS, you look at their architecture, you specifically wrap Nitro around that, that's a very different architecture than what's being run in the data center. And when you look at what Pensando does, that's a lot of starting to bring what these real clouds out there, what these big hyperscalers are running into the grasps of the data center. And so I think you're going to see a fundamental shift. The next 10 years are going to be exciting because the way you look at a data center now, when you think of what CPUs do, what shared storage, how the networking is all set up, it ain't going to look the same. >> Okay, so the competing vision with that, to play devil's advocate, would be DPUs are kind of expensive. Why don't we just use NICs, give 'em some more bandwidth, and use the cheapest stuff. That's the competing vision. >> That could be. >> Or the alternative vision, and I imagine everything else we've experienced in our careers, they will run in parallel paths, fit for function. >> Well, parallel paths always exist, right? Otherwise, 'cause you know how many times you've heard mainframe's dead, tape's dead, spinning disk is dead. None of 'em dead, right? The reality is you get to a point within an industry where it basically goes from instead of a growth curve like that, it goes to a growth curve of like that, it's pretty flat. So from a revenue growth perspective, I don't think you're going to see the revenue growth there. I think you're going to see the revenue growth in DPUs. And when you actually take, they may be expensive now, but you look at what Monterey's doing and you look at the way that those DPUs are getting integrated in at the OEM level. It's going to be a part of it. You're going to order your VxRail and VSAN style boxes, they're going to come with them. It's going to be an integrated component. Because when you start to offload things off the CPU, you've driven your overall utilization up. When you don't have to process NSX on basically the X86, you've just freed up cores and a considerable amount of them. And you've also moved that to where there's a more intelligent place for that pack to be processed right, out here on this edge. 'Cause you know what, that might not need to go into the host bus at all. So you have just alleviated any transfers over a PCI bus, over the PCI lanes, into DRAM, all of these components, when you're like, but all to come with, oh, that bit needs to be on this other machine. So now it's coming in and it's making that decision there. And then you take and integrate that into things like the Aruba Smart Switch, that's running the Pensando technology. So now you got top of rack that is already making those intelligent routing decisions on where packets really need to go. >> Jason, thank you so much for joining us. I know you guys could keep talking. >> No, I was going to say, you're going to have to come back. You're going to have to come back. >> We've just started to peel the layers of the onion, but we really appreciate you coming by the show, talking about what AMD and VMware are doing, what you're enabling customers to achieve. Sounds like there's a lot of tailwind behind you. That's awesome. >> Yeah. >> Great stuff, thank you. >> It's a great time to be at AMD, I can tell you that. >> Oh, that's good to hear, we like it. Well, thank you again for joining us, we appreciate it. For our guest and Dave Nicholson, I'm Lisa Martin. You're watching "theCUBE Live" from San Francisco, VMware Explore 2022. We'll be back with our next guest in just a minute. (upbeat music)

welcome back everyone to thecube's live coverage in san francisco for vmware explorer 2022 formerly vmworld i'm john furrier david live dave 12 years we've been covering this event formerly vmware first time in west now it's explore we've been in north we've been in south we've been in vegas multi-cloud is now the exploration vmware community is coming in john siegel svp at dell cube alumni dave mccraw vp at vmware guys thanks for coming back both cube alumni it's great to see you very senior organizations senior roles in the organizations of vmware and dell one year since the split great partnership continuing i mean some of the conversations we've been having over the past few years is that control plane the management layer making everything work together it's essentially been the multi-cloud hybrid cloud story what's the update what's how's the partnership look yeah i you know i just to start off i mean i would say i don't think our partnership's been any has ever been any better um if you look at you mention our vision very much a shared vision in terms of the multi-cloud world and i don't think we've ever had more joint innovation projects at one time i think we have over 40 now dave that are going on across multi-cloud ai cyber security uh modern applications and and uh you know here just at you just vmworld vmware explorer we have over 30 uh vmware sessions that are featuring dell um and this is i think more than we've ever had so look i think um there's a lot of momentum there and we're really looking forward to what's to come so you guys obviously spent a lot of time together when vmware was part of dell and then you've been it's been a year since the spin and then you codified i think it was a five-year agreement you know so you had some time to figure that out and then put it into paper so you just kind of quantified some of the stuff that's going on but now we're entering a yet another phase so that that that that agreement's probably more important than ever now i mean list in terms of getting it documented and an understanding right yeah that agreement really defines a framework for solution development and for go to market so we've been doing it and refining it for the last five years so now you know putting and codifying it into a written signed agreement it basically is instantiating what we've been doing that we know works uh where we can drive uh solution development we can drive deep architectural co-innovation together as well and as john said across multiple you know project and solution areas so we we've been talking to years to you know a lot of these strat guys guys like matt baker about things like you know you see aws do nitro and then of course project monterey and and i know that you guys have had a you know a big sort of input into that and so now to see it come to fruition is is huge because you know from our view it's the future of computing architectures how do you handle you know data rich applications ai applications that's what are your thoughts on here i couldn't agree more uh project monterey is a great example of how we're innovating together we just talked about i mean first of all it's all so we have vxrail which let's let's start there right we have over 19 000 joint customers right now we continue to innovate more and more on the vxrail architecture great example of that as our partnership with project monterey and taking essentially vsphere 8 and running it for the first time on an hci system directly on the dp used itself right on the dpus ability now to offload nsxt from from the cpus to the dpus uh hope you know in the short term first of all great benefits for customers in terms of better performance but as you just mentioned it's game changing in terms of laying the foundation for the future architectures that we plan on together helping out customers there's one other dynamic for you on is um and it's not unique to dell but dell's the biggest you know supply supplier partner etc but you're able to take vmware software and drive it through your business and and that enables you to get more subscription revenue and makes it stickier and that's a really important change from you know 10 years ago yeah and it's it's a combination as you know of dell software and vmware software together absolutely and i think what's with this is a game-changing innovation that you can run on top of our joint system vxrail if you will um and now what our customers can expect is life cycle automation of now you know the dpus as well as tanzu as well as everything else we layer on top of that core foundation that we have over 19 000 customers running today so i mean like that 19 000 number i want to get back up to the vx rail and you mentioned vsphere that's big news here this year vsphere 8 big release a lot of going on what's the hci angle you mentioned that what's in it for the customer what does that mean for the folks here because let's face it the vsphere aids got everyone in that they've all the v-sections are going going crazy right another vsphere release getting training they have the labs here what's it mean for the customers what's the value there with that hci solution with the gpus well first of all vsphere 8 as we know it has a lot of goodies in it but you know what what i think to me what's been most powerful about this is the ability to run vsphere 8 uh and and specifically on the dpus now you can run it it is open up all new possibilities now and so that nsxt that i mentioned you know running that on gpus opens up a whole new uh architecture now for our customers going forward and now really sets us up for modern distributed architecture for the future so like edge okay yeah and vsphere 8 brings in you know cloud connectivity as well so you know customers can run in a cloud disconnected mode they can run in a cloud connected mode so you know that's going to bring in the ability to do specialized things on security cycle management there's a whole series of services that can now be added as well as you know leveraging you know vcenter management capabilities so what's happening at the edge we had i think it was lows on hotel tech world right okay good not the other one um but so so that's got to be exploding now with that with that because it just changes the game for for these stores there's i mean retail uh manufacturing maybe you can give us an update on there's so much happening on the edge side as you know i mean that's where most of the a lot of the innovations happening right now is at the edge and a lot of the companies we talked to 8x right 8x expectation of increase in uh edge workloads over the next and the data challenge too and the data challenge is huge so you heard about the innovations with vsphere 8. in addition to that we just introduced today as well the smallest vx rail for the edge ever this thing is it's like think picture a couple eight and a half by 11 notebooks not much not much you know maybe a little wider than that but not much more um you know these these are stacked on top of each other these are you can rack and stack and mount these things anywhere and it also is the first aci system that has you know a built-in hardware witness so this helps set it up for environments that are you know network bandwidth constrained or have high high latency no longer an issue next gen app is going to want to have a local data server at the edge right and with compute there right high performance right right so now you're getting it across the wire yes you get racket stack a couple of these small things i mean they can they can fit into like a you know clark kent's briefcase right these things are so small um you want to do the analytics on site and return responses back you don't want to be moving massive data payloads off the egg so you got to have the right level of compute to run machine learning algorithms and and do the analytics type work that you want to do to make local decisions yeah i mean we just had david lithimon who was one of the keynote speakers here at the event and we've been talking about super cloud and multi-cloud meta cloud all the different versions of what we see as this next-gen and this brings up a point of like his advice to young people learn how multi-cloud learn about system architecture because if you can figure out how to put it together you're going to have to make more money anyway that this whole edge piece opens up huge challenges and opportunities around how do you configure these next-gen apps what does the ai look like what's the data architecture this is not like get some training curriculum online and you get you know 101 and you're getting a job no this is more complicated but with the hardware you guys make it easier so where's the complexity shift between having a powerful edge device like the vxrail with the vsphere what's the ec button on that like how do you guys what's the vision because this is going to be a major battleground this whole edge piece yeah it's going to be huge well i think when you look at the innovation that dell is bringing to market with technologies like outlander and then designing that into vxrail and then you combine that with our tonzu capabilities to manage development and deployment of applications this is about heterogeneous deployment and management at scale of applications with technologies like tons of mission control then deploying service mesh right for security being able to use sassy to be able to secure you know with cloud security over the wire so it's bringing together multiple technologies to deliver simplicity to the customer the ability to go one to many you know in terms of being able to deploy and manage and update whether that's a security patch or an application update and do that very rapidly at a low cost so the benefit with this solution now just putting this together is i can ship a box small and or stack them and essentially it's done remotely it's that's provision the provisioning issues not a truck roll as they say or professional services enabled you can just drop that out there and this is where the customers need to be yeah that absolutely is that the vision don't get that right exactly you don't you don't need the you don't need the skills yeah you don't need the specialized skills you don't need a lot of space you don't need you know high network bandwidth all these things right all these innovations that we're talking about here um really combined into really enabling a whole new whole new future here for edge is are you doing apex now is that i think thickest part sure part of yours okay so um is apex fitting into the to the edge how does it fit yeah i mean well first of all you know a lot of what we talked with apex is really about a consumption a way to ensure there's a common cloud experience wherever the data is and where the applications are and so absolutely edge fits into this as well and so we have we have common ways to consume our infrastructure today our joint infrastructure whether it's in the data center at the edge um or you know uh in the cloud usain ragu when he was on i said it was great keynote loved it one of the things that i didn't think there was enough of was security and he's like yeah we only had so much time but vmware is a very strong security story we heard a really strong security story at dell tech world i mean half the innovations and the new you know storage products were security and the new os's and it was impressive what what's how are you guys working together on security is that one of those let me give you a few key things you know our teams are working together at the engineer to engineer level you know reference architectures for zero trust as an example being able to look you know hardware root of trust up into the application layer right so we're looking at really defense in depth here you know i mentioned what we're doing with sassy right with cloud security capabilities so you really have to look at this from the edge to the core with the you know from a networking perspective getting the network the insights on things that maybe anomalies that may be happening on the network so using our network insight technology you know uh nsx and then being able to ultimately uh have a secure development pipeline as well i mean you we all know about the supply chain attacks that happen right and so being able to have a you know secure pipeline for development is critical for both of our companies working together i think the tan zoo and you mentioned the developer self-service that experience combined with kind of the power of the dell you know let's face it the boxes are awesome hardware matters and software matters so bringing that expertise together michael daley always used to say on thecube better together in respect to vmware and dell a lot of fruit has been born from that labor right specifically around and now when you add the tan zoo and you get vsphere you got the operational excellence you got the you got the performance and scale with the dell boxes and hardware and software and now you've got the tan zoo what's missing or is it all there now i mean where how would you how would you guys peg the progress bar is it like it's all rocking right now or or i'd say you're never done first of all but i you know i look at some of the innovations that we've brought to market recently where we've are combining and stacking these technologies into a more defense in-depth like solution you know bringing nsx onto vxrail so that you can flip a switch easily and light up the firewall the new plug-in yeah that's a great example simple simple um carbon black workload another example where we're taking carbon black technology that was typically on endpoints you know on pcs bringing that into the data center right and leveraging all the analytics and insights around you know being able to identify anomalies and then remediate those anomalies so we're seeing very good traction with those and the cloud native developers containers they're all native container working with compute and container storage object store in the cloud kubernetes we've embraced it yeah i mean yeah containers running containers and vms on the same infrastructure common way to manage it all i mean that that's been a big part of it as well obviously a lot of the focus that dell's bringing here as well is is the inability to run that stack easily right you heard the announcement on uh tanzu for kubernetes operators right earlier today tko we call it uh you know that running on vxrail now is really targeted at the i.t operator in allowing them to easily stand up a self-service developer devops environment on vxrail going forward and then a piece that might be invisible to them is back to monterey isolation right encryption and data moving you know absolutely storage the security the compute right the management right that's that's a complete and it's about reducing attack services as well right the security perspective as well when you when you're moving nsxt onto a dpu you're doing that as well so there's it takes the little things right at the end of the day security is a mindset up across both companies in terms of how we approach our architectures um and it's the you know a lot of times it's the little things as well that we make sure right so shared vision working at the engineering levels together for many many years know that you guys are validating more of that coming what's next take us through okay we're here 2022 we got super cloud multi-cloud hybrid full throttle right now it's hybrid's a steady state that's cloud operations infrastructure as code has happened it's happening what's next for you guys in the relationship can you share a little bit that you can if you can what we can expect what you see uh with monterrey is the start of a re-architecting of i.t infrastructure not just in the data center but also at the edge right these technologies will move out and be pervasive you know across i think edge to colo to core data center to cloud right and so that's a starting point now we're looking at memory tiering right i think we talked last time about capitola and memory tiering and you know being able to bring that forward uh being able to do more with confidential computing as an example right secure enclaves and confidential computing so you know a lot of this is focused around simplicity and security going forward and ease of management around take the heavy lifting away from the customer abstract that in offer the power and performance that's right and it's going to come down to delivering time to value for our customers you know can we cut that time to value by 25 50 percent so they can be in production faster yeah i think project monterey is something we'll be building on for a long time right i mean this is the start of a major new future architecture of these companies so if you had to pick one we have 40 initiatives that are joined together real literally project monterey is one of my favorites for sure in terms of what it's going to do not just for that common cloud experience but for the edge and and we talked a lot about the edge today and where that's headed you think it's going to explode up new apps i really do think so well it's going to put you in a new it's going to put in curve yeah absolutely right and operationally uh security wise um from a modern apps perspective i mean all it checks all the boxes and it's going to allow us to to help and take our existing customers on that journey as well what's great about this conversation we've been following both you guys for a long time and your companies and and technology upgrades and and the business impact and open source and all doing all this for customers but the wave that's coming we're seeing the expo hall here i mean it's people are really excited they're enthused they're committed highly confident that this this wave is coming they kind of see it people kind of seeing the fog lift they're seeing money making value creation people kind of feeling more comfortable but still a little nervous around you know what's coming next because it's still uncertainty but pretty good ecosystem i'd have to say that's pretty pretty interesting yeah a lot of them are excited about you know what they can do at the edge and how they can differentiate their businesses i mean that's right well congratulations guys thanks for coming on thecube and sharing the update thank you it more innovation it's not stopping here at vmware explorer dell and vm we're continuing to have that kind of relationship joint engineering it's all coming together and you can mix and match this and the stack but it's ultimately going to be cloud operations edge is the action of course hybrid cloud as well it's thecube thanks for watching [Music] you