(upbeat music) >> Hey, welcome back everyone, live coverage here. Re:invent 2022. I'm John Furrier, host of theCUBE. Two sets here. We got amazing content flowing. A third set upstairs in the executive briefing area. It's kind of a final review, day three. We got a special guest for do a re:Invent review. Muddu Sudhakar CEO founder of Aisera. Former multi-exit entrepreneur. Kind of a CUBE analyst who's always watching the floor, comes in, reports on our behalf. Thank you, you're seasoned veteran. Good to see you. Thanks for coming. >> Thank you John >> We've only got five minutes. Let's get into it. What's your report? What are you seeing here at re:Invent? What's the most important story? What's happening? What should people pay attention to? >> No, a lot of things. First all, thank you for having me John. But, most important thing what Amazon has announced is AIML. How they're doubling down on AIML. Amazon Connect for Wise. Watch out all the contact center vendors. Third, is in the area of workflow, low-code, no-code, workflow automation. I see these three are three big pillars. And, the fourth is ETL and ELTs. They're offering ETL as included as a part of S3 Redshift. I see those four areas are the big buckets. >> Well, it's not no ETL to S3. It's ETL into S3 or migration. >> That's right. >> Then the other one was Zero ETL Promise. >> Muddu: That's right. >> Which there's a skeptical group out there that think that's not possible. I do. I think ultimately that'll happen, but what's your take? >> I think it's going to happen. So, it's going to happen both within that data store as well as outside the data store, data coming in. I think that area, Amazon is going to slowly encroach into the whole thing will be part offered as a part of Redshift and S3. >> Got it. What else are you seeing? Security. >> Amazon Connect Amazon Connect is a big thing. >> John: Why is that so important? It seems like they already have that. >> They have it, but what they're doing now is to automate AI bots. They want to use AI bot to automate both agent assist, AI assist, and also WiseBot automation. So, all the contact center Wise to text they're doubling down. I think it's a good competition to Microsoft with the Nuance acquisition and what Zoom is doing today. So, I think within Microsoft, Zoom, and Amazon, it's a nice competition there. >> Okay, so we had Adam's keynote, a lot of security and data, that was big. Today, we had Swami, all ML, 13 announcements. Adam did telegraph to me that he was going to to share the love. Jassy would've probably taken most of those announcements, we know that. Adam shared the love. So, Adam, props to you for sharing the love with Swami and some of those announcements. We had 13. So, good for him. >> Yes. >> And then, we had Aruba with the partners. What's your take on the partner network? A revamp? >> No, I think Aruba did a very good job in terms of partners. Look at these, one of the best stores that Amazon does. Even the companies like me, I'm a startup company. They know how to include the partners, drive more revenue with partners, sell through it, more expansion. So, Amazon is still one of the best for startup to mid-market companies to go into enterprise. So, I love their partnership angle. >> One of the things I like that she said that resonated with me 'cause, I've been working with those teams, is it's unified, clear roles, but together. But, scaling the support for partners and making money for partners. >> That's right. >> That is a huge deal. Big road ahead. She's focused on it. She says, no problem. We want to scale up the business model of the channel. >> Muddu: That's right. >> The resources, so that the ecosystem can make money and serve customers or serve customers and make money. >> Muddu: That's right. And, I think one thing that they're always good is Marketplace. Now, they're doing is outside of market with ISV, co-sell, selling through. I think Amazon really understood that adding the value so that we make money as a partners and they make money, incrementally. So, I think Aruba is doing a very good job. I really like it. >> Okay, final question. What's going on with Werner? What do you expect to hear tomorrow from a developer front? Not a lot of developer productivity conversations at this re:Invent. Not a lot of people talking about software supply chain although Snyk was on theCUBE earlier. Developer productivity. Werner's going to speak to that tomorrow we think. Or, I don't know. What do you think? >> I think he's going talk something called generative AI. Rumored the people are talking about the code will be returned by the algorithms now. I think if I'm Werner, I'm going to talk about where the technology is going, where the humans will not be writing code. So, I think AI is going to double down with Amazon more on the generative AI. He's going to try a lot about that. >> Generative AI is hot. We could have generative CUBE, no hosts. >> Muddu: Yes, that would be good. >> No code, no host >> Muddu: Have an answer, John Software. (both laugh) >> We're going to automate everything. Muddu, great to hear from you. Thanks for reporting. Anything else on the ecosystem? Any observations on the ecosystem and their opportunity? >> So, coming from my side, if I'd to provide an answer, today we have like close to thousand leads that are good. Most of them are financial, healthcare. Healthcare is still one of the largest ones I saw in this conference. Financials, and then, I'm started seeing a lot more on the manufacturing. So, I think supply chain, they were not so. I think Amazon is doing fantastic job with financial, healthcare, and supply chain. >> Where is their blind spot if you had to point that one? >> I think media and entertainment. Media and entertainment is not that big on Amazon. So, I think we should see a lot more of those. >> Yeah, I think they need to look at that. Any other observations? Hallway conversations that are notable that you would like to share with folks watching? >> I think what needs to happen is with VMware, and Citrix desktop, and Endpoint Management. That's their blind spot. So far, nobody's really talking about the Endpoints. Your workstation, laptop, desktop. Remember, that was big with VMware. Nope, that's not a thought of conversation in email right now. So, I think that area is left behind by Amazon. Somebody needs to go after that white space. >> John: And, the audience here is over 50,000. Big numbers. >> Huge. One of the best shows, right? I mean after Covid. It's by far the best show I've seen in this year. >> All right, if you'd do a sizzle reel, what would it be? >> Sizzle reel. I think it's going to be a lot more on, as I said, generative to AI is the key word to watch. And, more than that, low-code no-code workflow automation. How do you automate the workflows? Which is where ServiceNow is fairly strong. I think you'll see Amazon and ServiceNow playing in the workflow automation. >> Muddu, thank you so much for coming on theCube sharing. That's a wrap up for day three here in theCUBE. I'm John Furrier, Dave Vellante for Lisa Martin, Savannah Peterson, all working on Paul Gillan and John Walls and the whole team. Thanks for all your support. Wrapping it up to the end of the day. Pulling the plug. We'll see you tomorrow. (upbeat music)

>>Live from Atlanta, Georgia. It's the cube covering Ansible Fest 2019 brought to you by red hat. >>Welcome back. This is the cubes coverage of Ansible Fest 2019. I'm Stu Miniman. My cohost of the week is John farrier. And this is the cube insights where we share our independent analysis, break down what we're hearing from the community, what we've learned from all of our interviews. John, uh, you know, we knew community would be a big portion of what we did here. Uh, culture and collaboration were things that we talked a lot about that wasn't necessarily what I thought I would be hearing. Uh, you've been talking a lot about how observability and automation are the, the huge wave. We've seen, you know, acquisitions, we've seen IPOs, we've seen investments. So, you know, your, your, your take here as we're wrapping up. Sure, sure. Last to, um, as we said in our opening in the big scene here has been automation for all that's Ansible's kind of rap because they're, you know, they're announcing their main news ants, full automation platform. >>So that's the big news. But the bottom line is where this emerged from was configuration management and supple started out as a small little project that's solved a very specific problem. It solved configuring devices and all the automation around, you know, opening up ports and things that that were important beyond the basic static routing, the old web one. Dot. O web 2.0 model. And it grew into a software abstraction layer for automating because a lot of that stuff, the mundane tasks in configuring networks and servers frankly were boring and redundant. Everyone hated them patches. So easy ground to automate. And I think, um, it's evolved a lot into dev ops because with the cloud scale more devices, just because software's defining everything, it doesn't mean servers go away. So we know that is more servers is more storage, it's in the cloud, it's on premise, it's cloud operations. >>So automation I think, and I'm, my prediction is is that automation will be as big of a category as observability was. And remember we kinda missed observability we saw it as important. We've covered all those companies, but especially in network management on steroids with the cloud. But look what happened. Multiple companies when public big companies getting sold for billions of dollars, a lot of M and a activity observability is the most, one of the most important areas of cloud 2.0 it's not just some white space around network management. The data is super important. I think automation is going to grow into a highly competitive, highly relevant in the lucrative marketplace for companies and I think Ansible is in pole position to capture that with red hat and now red hat part of IBM. I think automation is going to be very big land grab. It's going to be where the value is created. >>I think observability and automation are going to go hand in hand and I think AI and data, those are the things programming infrastructure revolve around those two spheres. I think it is going to be super important. I think that's why the cube is here. We smelled it out, we sniffing it and we can see. We can touch it and the community here, they're doing it. They're there actually have proof points. Yup. These, this community is demonstrating that the process is going to be more efficient. The technology works and the people are transforming and that is a key piece with automation. People can work on other things and it's certainly changing the game. So all three aspects of digital transformation are in lockstep and, and, and, and expanding rapidly. >>Yeah. John, I would expect nothing less than a bold prediction from you on this space. You know, it's only $150 million acquisition, which is really small compared to a lot of the acquisitions that we see these as heck. You know, red hat Ansible didn't get talked about all that much when you know, IBM went and spent over $30 billion for red hat. But absolutely automation is so important that infrastructure is code movement that we've been tracking for quite a long time helps enable automation across the entire stack. A lot of discussion this week here, networking and security, two areas that we know need to make progress and we need to have, you know, less errors. We need to be able to make changes faster and cloud. We just as in the infrastructure space, that configuration management, we need to be able to simplify things. Absolutely. One of the things that will slow down the growth of cloud is that if we can't simplify those environments, so the same type of tooling and where Ansible is trying to, you know, span between the traditional environments and the cloud is to get this working in the containerization cloud native Kubernetes world that we're living in. >>Yeah, and it's still, you're right on, I mean this is the analysis and that it's spot on. I think one of the nuances in the industry landscape is a, when red hat got acquired by IBM for a massive amount of money, everyone's scratching their heads. But if you think about what red hat has done and you know I'm a real big fan of red hat, you are too. They're smart. They make great acquisitions, Ansible, not a big payout. They had coral West, they, they got open shifts there. They're the decouple their operating systems people. They get the notion of systems architecture. I think red hat is executed brilliantly in that systems mindset, which is perfect for cloud computing. I think Arvin Krishna at IBM really understood the impact of red hat and when I talked to him at red hat summit two years ago, right before the acquisition, he had the twinkle in his eye when I asked him about red at, because you can see them connecting the dots. Red hat brings a lot to the table and if IBM doesn't screw up red hat, then they're going to do well and we talk about red hat not screwing up Ansible and they didn't. Now part of it, if IBM doesn't screw up the red hat acquisition, let red hat bring that systems mindset in. I think IBM could use red has a beautiful way to bring a systems architecture into cloud, cloud native and really take a lot of territory down these new cloud native apps. >>John F automation is a force multiplier for customers and Ansible has that capability to be a force multiplier for red hat. When you look at the ecosystem they're building out here, the Ansible automation platform really helps it get customers more in lock steps. So you know, I was talking to the people and said, Oh, you know, AWS has an update. Oh we need to roll the entire core and put out another version. I can't wait for that. I need to be able to decouple the partner activity, which by the way, they talked about how the disk project is the six most popular in get hub decoupling collections might actually put them lower on the on the list, but that's okay because they're solving real customer problems. And it's interesting, John, we talk about the ecosystem here. One of, there's only a couple of other companies other than red hat that can commit without having to go through approval. Microsoft is one of them. So you talk about the, the collaboration, the ecosystem here where this can be, >>let's do the, the thing about Ansible is that it's a double edged sword. There value is also an Achilles heel. And one of the critical analysis that I have is, is that they're not broad enough yet. On and there and there. I won't say misunderstood the customers here in the community, they totally get it. Everyone here loves Ansible. The problem is is that in the global landscape of the industry, they're tiny red hat needs to bring this out faster. I think IBM has to get animal out there faster because they have all the elements kind of popping right now. You got community, very strong customer base, loyal and dynamic. You got champions developing. That's classic sign of success. They got a great product, perfectly fit for this glue layer, this integration layer, you know, below containers and maybe you can even sitting above containers depending on how you look at it. And then finally the ecosystem of partners. Not yet fully robust, but all the names are here. Microsoft, Cisco net app F five kind of feels like VMworld on a small scale. They have to up level it. I think that's the critical problem I see with with these guys is that it's almost too good and too small. >>Yeah. Uh, you know, when I look back at when red hat made the acquisition, there were a handful of companies, most of them embracing open source as to which configuration management tool you're going to do. Ansible did well against them and red hat helped make them the category leader in this space. There is a different competitive landscape today. Just public cloud. You know, Ansible can help, but there's some customers that would be like, Oh, I've got different tooling and it doesn't fit into what I'm doing today. So there's some different competitors in the landscape and we know John, every customer we've talked to, they've got a lot of tools. So how does Ansible get mind share inside the company? They had some great stories that we heard both on the Q from like ING and the Southern company as well as in the keynotes from JP Morgan where they're scaling out, they're building playbooks, they're doing this, but you know, this is not, you know, it's not just push a button to get all of this rolled out. >>The IBM marketing should help here. And if I'm, you know, um, uh, the marketing team at IBM, I'd be like all over this because this is a, a game changer because this could be a digital transformation ingredient. The people equation. The problem is, is that again, IBM to embrace this and Ansible has that glue layer integration. This could be great. Now the benefit to them, I think they're tailwind is they can solve a lot of problems. One nuance from the show that I learned was, okay, configuration management, dev ops, great. The network automation is looking good. Security is a huge opportunity because if you think about the basic blocking and tackling patches, configuration, misconfigurations, automation plays perfect role. So to get beachhead in the enterprise as an extraction layer is to own and dominate those basics. Because think about the big hacks. Capitol one, misconfigured firewall to an S three bucket, that wasn't Amazon's fault, but the data on Amazon, this is automation can solve a lot of these problems, patches, malware, vulnerabilities, the adversaries are going to be all over that. >>So I think the security piece, huge upside position, Ansible and red hat as an abstraction layer to solve those basic problems rather than overselling it could be a great strategy. I think they're doing a good job with that. Uh, it totally, you know, built on simplicity and modularity. Uh, this, this tooling is something that it can sit lots of places in the organization, uh, and help that cultural communication. Uh, I was a bit critical of, uh, you know, enterprise collaboration, uh, that, that top down push that you'd get. Um, but here, you know, you've got a tool that uh, as we, we just had on our final interview with, uh, Pirog, you know, developers, they didn't build this for developers, but developers are embracing it. The infrastructure people are embracing it. It gives a sense of some why we here to why we're here is I think Ansible fast as a community event, which we love. >>But two, I think this is early, you know, days in the Canadian, the coal mine and saying that the Ansible formula for automation is going to be a growth year. That's my prediction. And we have data to back it up. If you look at our our community and the folks out in the cube alumni know no that when we reach out to them and get some data. But here's what supports why I think the automation thing with Ansible and red hat is relevant because it applies what we just talked about. The number one thing that came back from the community stew was focused efforts on better results. Automation from time efficiency days, hours to minutes check. Security is absolutely a top driver for automation. That's a tailwind. The job satisfaction issue is not like a marketing feel. Good thing. People actually liked their jobs when they have to, don't have to come in on the weekends. >>So this automation does align with that. And finally infrastructure and developers re-skilling with new capabilities and new things. Is it just an uplift? So those are the drivers driving the automation. That's why RPA is so hot and this is a critical foundation in my opinion. So you know Ansible's is the leading the wave here in this new automation wave and I think it's going to be a big part because it's controlling the plumbing. Yeah, John wanted the machinery. Johnny is the, the, the future of work. We know that automation is going to be hugely important. You mentioned >>RPA, a huge one. I had an interview with the associate professor from Syracuse university or they're teaching this to education. It's not just, Oh Hey you got to go learn coding and learn this programming language. No, we need to have that. That combination of the business understanding and the technology and automation can sit right at that intersection. What's your big learning point? What did you take away? Yeah, so it is, it's that point here that this is not just to some, you know, cool little tool on the side. This is something you John, we've talked at many shows. Software can actually be a unifying factor inside companies to help build platforms and for customers to help them collaborate and work together. This a tool like Ansible isn't just something that is done tactically but strategically, you know, gets everyone on the same page enables that collaboration isn't just another channel of you know, some other thing that a, I don't want to have to deal with it. >>It helps me get my job better. Increases that job satisfaction. That's so hugely important as to if you think about the digital transformation form of the people, process technology, how many interviews have we done, how many interviews have we done, a companies we've talked to where they have the great product and on the process side to address the process. They have the tech but they fail on the people side. It's the cultural adoption, it's the, it's the real enablement and I think Ansible's challenge is to take the platform, the capabilities of their, of their, of their software, launch the platform and create value because if they're not enabling value out of the platform that does not cross check with what platforms are supposed to do, which is create value. And John, the thing I want to look for when we come back to this show next year is how much are they allowing customers delivered through data? >>When we heard from their engineering division here, okay, the platforms, the first piece, but how do I measure internally and how do I measure against our peers? We know that that people want to have, there's so much information out there. How am I doing? Am I, where am I on my the five, five step progression and adoption of automation and you know, Hey, am I doing good against my competition or are they smoking me? Well? That's the metrics with the insight piece and tying it to the rail. Now people can say, look, I just saved a bunch of money. I saved some time. That's the business impact and I think you know when you have the KPIs and you had the analysts to back it up, good things will happen. Students been great. All right, John, always a pleasure to catch up with you. We got lot more here toward the second half of 2019 a big thanks to the whole community for of course watching this here at antelopes Fest. Check out the cube.net for all the upcoming shows. Thank you to our whole production team and to our hosts. Red hat for giving this beautiful set right in the middle of the show. And thanks as always for watching the cube.

>> From the SiliconANGLE Media office, in Boston, Massachusetts, it's the CUBE. Now, here's your host, Stu Miniman. >> Hi, I'm Stu Miniman and welcome to a special presentation of CUBE Conversation here from our Boston area studio. Welcome back to the program from ClearSky Data, Ellen Rubin the CEO and Laz Vekiarides who is the CTO. Laz and Ellen, thanks so much for joining us. >> Us too, nice to be back. >> Hi, thanks for having us. >> All right, so, always good to talk to a local company, we talked about technology, I was actually in the Seaport district earlier, recently, and you know there's a lot happening in this space, as we know, it doesn't all happen, in Seattle for the cloud, Silicon Valley for all the VCs, so Ellen I've been speaking with your company since its early days-- >> Stealth mode, yeah. >> Stealth mode. First time I met you in person was at the Amazon reinvent shows, so still one of the focal points of the cloud and everything that happening there. But give us the update, you've got some new fundings, some new partnerships, tell us what's happening with ClearSky. >> Absolutely, I'm really happy to be back. So yeah, we've been, last night been building this company together, we started in 2013 with the, you know, sitting in a room with a white board but the company has really been actively funded and kind of building customers and our service offering since 2014. And we've just seen a tremendous amount of growth especially in the last year. So we're excited to be able to share that we are raising a 20 million funding round, and it includes some new investors, strategic investors as well as some of our existing investors from General Catalyst and Highland and Polaris. So it's very important for us but it's also great for our customers because it gives us a chance now to be in more places and have more people on our team to really grow and add to the support the operation of what we're doing. So that's kind of part A. And we're really looking forward to doing that. We've added a head of our sales organization, our chief revenue officer, Roger Cummings, and so we've really kind of filled out our team and our growing as a company overall. So that's kind of part A. >> So yeah congratulations on the numbers. The other piece, I think back to the first discussions we had when you talked about living in lots of environments and how do you help customers, there was somebody that you're partnering with now that I believe came up in that first discussion because they've got one of the largest global foot print on the planet that I'm aware of. >> Indeed, so yeah, also today we're announcing our partnership with Equinex and we've actually been working, we've been talking with Equinex since we were in stealth mode and we've been working with them over the past several years already in a couple of locations. And we can talk in a lot of detail about sort of where the great alignment fit is, but the news for us is that we're now gonna be able to really expand the reach of our service across the rest of the United States. So we're gonna triple the number of locations, and we're gonna be basically anywhere our customers need us to be, as you know we are a metro-based service so it's very important from a latency and access that we be in more locations. And we see it as basically a great jumping off for filling out the initial vision of being across United States and now it's starting to expand that side. >> Yes that's great. Laz, let's pull you in here. If you look at the data piece of it, we understand that latency is clearly important. That's the conversation we've had back in the storage world for a long time. Data has gravity, it's tough to move it, and having some locality is super important. So what are your, for people who aren't as familiar with the company, just give us the thumbnail, architecturally, and tell us what you've been seeing update wise, from a technology standpoint. >> Sure, so, our technology is really metro-based network, so we deliver caching services on the edge to make all of the resources, specifically the data management resources that are far away appear as if they're nearby. Now one of the problem is, as you know with the cloud, is that they are only in certain locations. So unless your nation is in Virginia or you happen to be in the Pacific Northwest, you have a latency problem. And so as a result, some certain types of applications aren't gonna work well. What we've built is really an edge-based data management network. We provide high performance file and block services. To systems at the edge that leverage the cloud for their back ends. And so as a result, you get all of the economics of the cloud and the flexibility that you get with those type of services. But you get the experience of enterprise class functionality and capability's and it's nearby. So you don't miss any of the things that you are kind of used to. >> All right, Laz I want you to help explain something, when you say edge, what does that mean to you and your customers because there are server providers edges, there are kind of the IO key end devices edges, there are some things in between there, so what specifically are you helping with? >> So this is true it's actually really interesting. So we have a very specific definition of edge, we call it the data center edge. And hence our alignment with Equinix, they are in this metro facilities when you look at our architecture we're either putting an edge appliance either in an Equinix facility or in a customer's facility and then tethering that into the Equinix facility. So that last hundred or so miles around an Equinix facility is our edge and that is gonna be our definition now. That could change over time, just like everything else in the cloud changes, because we basically have built software that can run in any type of Linux environment with some monocom activity but in our current market push, our edge is really the data center edge. >> Okay, Ellen I love that that really fit in into the discussions I've been having a lot over the last year or so. People talk about hybrid cloud when they talk about multicloud. It's, they're using lots of SAS, they're usually using more than one public cloud provider and then they have their own resources, and their data center often times has a rack in Equinix and leveraging things like direct connect from Amazon, the equivalent for Google and Microsoft, or expanding those definitions. Bring us inside what are you hearing from customers. I love to hear what you can share about specific customers or in general what's the need that they have and where you fit in into all of it. >> Yeah, no, you're totally on point for what we see everyday which is we deal with medium and large enterprises. So our customers are in health care, they're in financial services, they're in legal services and also in managed service providers now as a newer market for us. So we have customers that include companies like Partners HealthCare, Mass General Hospital, Nuance Communications. We've just added Unitas Global as a managed service provider. Special Olympics is a customer and some regional hedge firms and law services, like Miles and Stockbridge. So what you can kind of see is that we have this really nice set of experiences that are not just what is Facebook doing or what is Stage3 doing but we kind of have a broad range of what CIO and heads of IT are really struggling with. And it's exactly what you're saying which is the edge to a customer very much depends on how they're thinking about where their application are gonna run, and our philosophy is don't worry about it, we've got you covered, your data is gonna be high performance, low latency, you're totally protected and you can access it from wherever you need to. But for a lot of customers honestly we've seen everything. I won't embarrass anybody specifically but there are still some kind of scary, old data centers out there. There are server closets that are acting as data centers. People still have things in their buildings. And then you've got everything to like world class, Equinix, Colo, that is in Ashburn, or whatever. And then people are obviously trying to adapt multiple shades and flavors of public clouds. And I was just out at a customer's yesterday where the CIO was talking to us about the fact that they have grown through a tremendous amount of acquisition. So they've got one of everything. And then the cloud for them was a bunch of people did a bunch of things in Amazon five years ago. Then they decided to standardize on Azure. They don't really know why they standardize on Azure. And they realized that that was not actually answer for all their problems and then they started to think about how Google might actually be a much better fit because of some of the analytics works they're trying to do, and by the way they've got data centers all over the world. That is a very typical scenario that we see everyday and for the customers hedging their bets and not being locked into anything is really, really important to them, because the application keep evolving and new things are getting in some ways built for the cloud, but sometimes the edge actually is still critical, right? In terms of where the actual physical source systems are. >> Yeah, so, I would say the elephant in the room is that kind of how do I get my arms around this multi cloud environment and there's not one company that's gonna solve all of these issues. I've had everything-- >> And even if they did, would you really put everything in one cloud? Probably you wouldn't? >> Right, but it's the, okay, I've got all of these clouds out there and all of these things, I have licensing issues I have to worry about, I have identity management I have to worry about, there's the overall management of it. And it seems primarily it's the networking piece that you're helping with, maybe explain a little bit more, Laz it probably comes to you as to that elephant there, it's ClearSky data, we solve your networking challenge for multicloud and it's more than just that. >> Right, so, it's sometimes embarrassingly I actually started my career in the networking space and so a lot-- >> It's okay, I did, too, it's a training. >> So when Ellen and I started talking about what we wanted to do, we were really focused on networking. Maybe I had enough of storage. And so a lot of what we discovered was that the network is an extremely sort of undersold part of the overall cloud strategy of any company. If you really want to go to the cloud this is really about moving huge amount of data back and forth from these locations. And so we've built a very, very high performance one-hub network from our pops right to all of the various regions of the public clouds. So what this basically means for our customers is that they don't have to worry about the internet, they don't have to worry about the security that they need to set up in order to get into the cloud, and the amount of throughput that we can get through is really astonishing. So we've really built a system that can maximize this network pipes. So even our smallest customers can move in excess of 20 terabytes a day back and forward from the cloud. So this becomes a really really interesting solution if you have a lot of source system or you have a lot of data to move. We can outrun that Amazon truck. >> So I want you to, I think back five years ago, I heard Equinix, some of the other large data centers, they were like, "Oh we're just gonna give you "a cloud market place and there'll be all these services "and if you need to access something, we'll just be able to "throw a 10 gig wire between somebody's connections." It sounded really good but it sounds like you're helping fill a gap. Maybe explain what that is. >> Well so most of the networking pieces are actually very expensive, very complicated to set up, first of all. So you also have port charges and all sorts of high availability issues that you need to resolve with each one of the clouds. Additionally, although they are sort of on demand, you're not using all those bandwidths all the time and you don't know when you're gonna need it. What we've done on the network is to make it possible for you to utilize 40 gigabytes of throughput, our 40 gigabytes of throughput, into the clouds pretty much whenever you need it. So for example, latency from Boston to Amazon niche, for us 11 milliseconds. For most people if they don't have direct connect at some exuberant price they're gonna end up experiencing in the hundreds of milliseconds if they're going over the internet. So that and the bandwidth guarantee is you think you have a one gigabyte internet connection but that's not really what all the elements along your path are gonna provide you. So there's a lot of variability and we make that all go away we make the management go away, the security issues go away, and so it's totally seamless. You just need to connect into our network with our edge, it's as if the cloud really isn't there. And if you need to access your resources in the cloud, we can bring your data to EC2 and you can connect instances to it. So the whole process of moving things back and forth is so seamless and transparent, you don't just manage it. It's all sort of a byproduct of the architecture. >> I was just gonna add, Equinix invested early and bet early on becoming a cloud hub. This idea of having a cloud exchange and a lot of the other services that are plugged in, is a tremendous value to customers. But what we do see is that there is still a lot of customers out there and I'm sure this will persist for a while where there's still even yet further distributed last mile issues, and customers are moving into Equinix and Colocation sites for all the benefits that they bring and we take full advantage of that and help drive that from our side. But we also see that there are things that are just not moving and need to stay put and it's either because of legacy reasons, compliance reasons, they don't want to invest to re-platform things. There are a lot of reasons that are out there and because we both come from the enterprise infrastructure world, that does not scare us. So we understand that what you have to do is you have to meet the customers where they live, right? And you have to make it easy and accessible and as Laz has described in kind of a turn key situation where however your application wants to run and be best situated, we're gonna make sure that your data is available to you. >> Yeah you bring out some great points there. A line I used many times recently is there was the promise that cloud was going to be simple and cheap and it turned out to be neither of those. What do you see some of the biggest challenges, Ellen, we start with you maybe, what are your customers facing, what do you excited about that's actually made progress the last few years, and what do we still need to do as an industry as a whole? >> Well I always have to say this and of course it makes me just feel completely so old but I've been in the clouds since 2008, right? My last company's cloud switch was kind of that early, okay, there's a thing it's called the cloud, it happens to be Amazon but there'll be other clouds too. So you have to say fast-forwarding 10 years, a lot of really good progress has been made and it is for sure the case that now when you talk to enterprise customers and to the CIOs they're in the cloud, they've adopted the cloud, the cloud is in their mental picture of where things are gonna be, they've accepted the fact that they have developer groups are already in the cloud and have been for a very long time and it's part of their portfolio now, to make sure it's protected and highly available and compliant. So I think that is progress. The best thing that ever happened was, I don't have to convince people the cloud is more secure than what they're doing on Prem, because everybody kinda knows that, so that's good news. We don't have to have that conversation 20 times again et cetera. But what I do see that's surprising to me is that still some of the fundamental problems are still problems. Getting my data into the cloud. You think, c'mon we've got lots of solutions, tools, and toolkits and stuff like that. But it's still a very major problem. Networking of course still being a key issue for customers. I don't want to rollout a bunch of new lines, I don't want to have to hire a snowmobile, I don't want to- you know, rebuild everything form scratch. So that is still I think shows up more than I would have guessed. Right now what we see is there's a lot of focus on operational things, in terms of how to optimize what turned out to be the high cost of the cloud. Every one of our customers knows if that pull data back from the cloud that's not good. So they've learned that, they've found that out and they were kind of a little surprised the first time the bill came in and it was really high. So this idea of having tools that allow optimization of using the cloud more cost-effectively and figuring out which cloud is going to be more cost-effective based on the access patterns. There's more awareness of it but there's still a lot of struggling with that. >> Laz, would love your comments on that. >> Well there are, the whole notion of cost-optimization is deeply embedded in our technology. Every time we have a conversation with a customer the first thing they ask, they ask about egress fees, is it really just the same price no matter how much I use it? And they think about all these different, like things about IOPS for example. Because the cloud providers have sort of indoctrinated the market to think about what their IOPS needs are. In order to get them to the appropriate price point. So there's a lot of optimization there, that I still don't think that the customers really got. How many people really understand how many IOPS a particular application really needs? And how many should I buy and if I buy the wrong number oh my god everything is messed up. So the ability to solve those types of problems for people. In a way that it becomes a non-issue is still. Certainly we're doing it for storage but there are all sorts of issues just like that for compute, there are all sorts of issues like that for networking as well. So anyone who's trying to build an application on top of this platform really needs to think about those things. Thankfully our customers don't have to worry about a whole slew of things because we've actually arbitrized out all of the unusual aspects of terrace of network providers versus cloud providers, access fees and transaction fees et cetera. Anyone whose doing this need to think about this in a very analytical way, which I don't think IT has been used to up until now. They overbuy as you know, and they continue to overbuy and as long as there's no complaints about performance, and there's no complaints about excesses in cost everything is fine. That's not how the cloud works. I think we're getting to the point now where any serious move to the cloud now is going to require a lot more thinking and a lot more analysis. There's still a mentality that the cloud is cheaper, and then when people try it, they quickly realize "Oh my god look at this bill." And it's forever, it's not like you can just shut everything off. It's every month. It's not just like you spent forty thousand dollars in a month and you can shut it off. So it's a difficult problem and I don't think IT's prepared, in general. >> I think one of the things we've seen at ClearSky over the last several years is the willingness that customers have to use the cloud for data protection. I think when we started it was sort of, you know, everything's going to the cloud, the whole thing. Damn the torpedoes full speed ahead, right? I think a lot of what people are actually doing is archival back-up DR, those are comfortable, state of the industry is sort of there should be a connection between the, wherever the Prem is for the customer and then out to the cloud for things that are longer tail kinds of things. The problem is, what if you have to pull the data back? So these are thing we think about everyday. >> Right, Ellen want to give me the final word, 20 million dollar phrase, the partnership with Equinex that's going to increase availability. What's this mean to your customers and to the company ClearSky as we look forward. >> Well I think one of the things that's true about the fact that we are a network centric kind of company is that the power of the network is in how many access points you have. So what this means is that customers who are national, and then global will have more opportunity now to be able to access things with ClearSky. And to grow and expand with us, which is great. We've seen tremendous expansion business this year. Really like a huge percentage has already expanded at least once if not multiple times with us. And that begs a lot of questions, well that's great you're here with us in this metro how do we get across the rest of our locations. So I think that's very valuable and also obviously from our side making sure we can handle the care and support that our customers are expecting. We're fully managed 24 by 7. So the bar is high, right? This is not the, here's a toolkit in the cloud go figure it out, this is we take care of everything we're SLAU and that's it. And obviously the customer wants to see that scale. >> Well Ellen and Laz, congratulations on all the progress you've made and always great to catch up with you on all the updates. >> Great to see you. >> Yeah, great to see you. >> Alright and thank you so much for watching and be sure to check out The Cube .net for all of our coverage including. We're at all the cloud shows. Huge show at Amazon Reinvent at the end of November be sure to tune into that and everything else. Feel free to reach out if you've got questions for our team or teams that you'd like us to cover other events we should be at. I'm Stu Miniman and thank you for watching the CUBE.

(intense orchestral music) >> Hello everybody welcome to theCUBE, special announcement here, exclusive coverage. Covering Oracle NetSuite SuiteWorld with some special news, we're here with Jason Maynard, Sr. Vice President of Marketing and Strategy at Oracle NetSuite, and Jim McGeever, EVP, Second to Vice President at Oracle NetSuite. Thanks For joining this special CUBE coverage. >> Thanks... - Thank you. >> Great to be here. So we've got some exclusive news around SuiteWorld going on, so let's get down and dirty, so you got four major announcements goin' on: Oracle NetSuite global, vertical IntelligenceSuite, and new SuiteCommerce, let's get into the hard news. What's the big story around the news? >> The big story is we're going global, and in a big way, it's one of the big advantages of the Oracle acquisition, we could never have afforded to go to as many countries as fast as we can, and now with Oracle, we'll really be able to go really fast. And as a result, we're building a lot of new international features. So 2018, we've really turned the developmentship to build out deep localizations for most of the major economies around the world. >> NetSuite's had a great track record, obviously everyone kind of has well documented history, obviously now with Oracle. What's the stride look like, what's, what're you guys, you guys are hitting a stride. What's is look like, what's different about it, if anything, what's the big highlight here at SuiteWorld? >> Well, we've really put the foot on the gas petal, so we're actually growing much faster now than we were when we were independent. And a lot of it is due to the international growth, I mean, for example in China, China we didn't have a market presence, it's now our fourth biggest market after only a year. And that's just starting, it's amazing how fast that it's grown. >> Talk about the international global piece, because global has become kind of like a, a whitewash term for some, but it's hard to do. Especially China you mentioned that one, so you have China, and then the rest of international. There are issues with Cloud, you've got regions, you've got data privacy, obviously GDPR's on the horizon, and it's got some teeth to it I would argue, relatively, you know, sharp in some areas, not in others, but it's a challenging dynamic, but the upside is it's a very lucrative opportunity. What's different about international now, then say just five-six years ago? >> Oh, there's two major differences. So one is the data privacy rules, GDPR, I mean that's just amazing how, what an impact that has on businesses, and also the data residency rules. So we're having to build our data centers around the globe, which we never would've had to do before. Now this is, thankfully we have a company that has data centers around the world, so it's becoming a lot cheaper and easier for us to do that. But that's really tough for a business to be able to do that themselves. >> So, you know, the theme I want to get out there is, is that, you know people want to do more with less, that's a classic consolidation message. There's some consolidation going on, when you look at Cloud, how people are trying to figure out Cloud on premise in the, in Cloud. But it's not a consolidation market, it's a massive growth market. Jason what does more mean? I mean people want more, they might have to do with less, but there's an upside, growth component. How are you guys talking with that one challenge? Cuz there's challenges, and there's opportunities at the same time. >> You know, it's an interesting time, I think a lot of folks say it's easier than ever to start a business. But the flip side is, is it's harder than ever to actually scale and grow. So when we're out talking to our customers, and were getting, you know, into what they're trying to solve. The biggest issue they have, is how do I overcome this issue of breaking these barriers of growth. So, it could be going global, It could be doing more with less, right? How do I automate my business so I can reinvest into things that are going to make me more successful? Like acquiring new customers. Those are the type of challenges that we see out there, it's more with less, get me to where I need to be, and frankly, stop doing the things that are sort of counterproductive and inefficient, and really drive, top lane. >> I think that's one nuance that's missed a lot in the analysis is that, it's not so much more with less, it's more efficiency with Cloud, you get more leverage than software. That's always been the case with software economics. How does that translate to the business strategy for you guys as you guys go global? Talk about some of news around the, the verticals, vertical integration, cuz that's going to be a big part of it, with either the developer community and/or your partner ecosystems. >> Sure, so what we're seeing is, if you look at our product, what people use. When we looked at our customer base, customers who are international, customers who use vertical features grow much faster than customers who are single domestic. So we looked across the board, and so what we're really focused on is how we can help those companies grow even faster. So how do you go international quicker? But every business is not a generic business, so they all have these vertical features, some have inventory, some have projects. So what they really need is features that can help them execute their business better. So we go deep by vertical, and in fact, our whole company is organized vertically, our sales teams, our development teams, and so when we go to market we go vertically, and so we're doing some really cool stuff. Especially in the product-based area, uh, that's the new supply tower control center, which really helps enable people to get product to their customers on time. >> Well I'd like to get both of you to weigh in on the hard question, right? Bringin' the heat now. >> Jim: Okay. >> Jason: Alright. >> Everyone wants to know, okay, what's it like with Oracle? Is that helping you, is it hurting you? Oracle has a reputation, they're moving to the Cloud very quickly, but again they're an incumbent, okay in the old, in the Cloud way. So, you know hards pers putting up some numbers, you can talk to folks at amazon like whoa, you know, they're Oracle. So there's a lot of uncertainty around who's going to be the modern player. So the question is: How are you guys, working in that environment? Obviously Oracles numbers are up, they're moving to the Cloud model, they're stats are flying, at a pace that, they're moving as fast as they can. But you guys have always had a different perspective. How is the NetSuite/Oracle relationship working, and how do you talk to customers about that? >> Sure. So we're, they've run us really independently, so we're a global business unit inside of Oracle. So all sales, development, marketing, product, all report up through me, Evan, and Jason, and we report into the CEO of Oracle. So we're really run purely independently. The only other thing I'll add, so really not that much has changed, other than we get to leverage a lot of their global scale, and as Mark Hurd says, and try to avoid the negatives of the scale. But they are all in on Cloud, this is, when you're in a meeting with the senior leadership at Oracle, it's not a fake thing, it's a not a, a marketing message they truly believe at their core, that in the Cloud, or that everything's moving to the Cloud. So there's, we get the same incentives to sell to an Oracle owned premise customer as we do to an SAP owned premise customer. >> Jason to add to that, I want to get your perspective. We were talking before we came on around, the scale piece, that Jim just mentioned. Talk about the profile of the kind of customers that you guys have here as SuiteWorld. Is the profile of your customer changing? Take a minute to explain who is the NetSuite customer, cuz the global thing is interesting, if you're growing, soon to be multi-national, or you're already multi-national company, this matters. So, and then the scale matters as well, so, what is the profile of the customer, how does that help, how does that weave into the Oracle scale? >> So we have over 40 thousand organizations globally running NetSuite. It's a pretty interesting mix. Obviously a lot of small/mid-sized companies, and we have a few, you know, a good decent percentage of our base are multi-billion dollar companies. We see an interesting, I think, dynamic, which is: the most successful NetSuite customers, are the ones that have gone global. They grow faster like Jim said, than the domestic only. I think the one other hallmark that I would point out to the NetSuite customer, the customer base. You see sort of an innovative group of entrepreneurs. So we see all sorts of great stories with the customers, you know, in Jim's keynote, Kara Goldin, the founder of Hint, right? She started off with a mission to stop folks from drinking soda water and drink actual water. Started with, you know, 10 years ago, and is now on an amazing trajectory. So we find-- >> John: You guys get a lot of growth companies. >> Yeah, we get a lot of the growers, we get a lot of the, really kind of the entrepreneurs who start small with us, and then scale with us, all the way to becoming a multi-billion dollar company. >> And this is where the international piece matters, right? >> Oh yeah. >> So let's talk about that and then we'll move onto the the next set of news. So if I'm a growing company, and we're expanding crazy, I care about localization, I care about data in regions, certainly Cloud, as you mentioned Oracle's really serious about what they are, they care about regions, this is an issue. So talk about the benefits of me, a growing company, how do I take advantage of localization, what do you guys offer, what's the playbook? (laughing) >> It's, we just make it easy. I mean, our whole focus is: if you're a business, it's hard enough to go international, and figure out your value proposition, and what makes you unique and what makes you differentiated, the last thing you need to be worried about are your IT systems, and spending your time on infrastructure, and selling it all up. So our kind of job is, we'll just take care of that, if you want to go to Germany, you will literally flip a switch inside the system, and you have a German enabled application. >> And what's the alternative, if I don't go with you guys? >> You have to go find someone in Germany, to go buy an application, install it, then you implement it, then you integrate it. I mean that's a multi-month, if not year process. >> John: And expensive. >> Very expensive-- >> You've got to find people, you got to know the nuances, the local issues. (laughing) >> Right. And so you've got to learn all that. We come fully localized, and we don't do it just in a way that is, it's a starting point. We have all the German tax forms built-in to the system, when you log onto NetSuite and once you flip this switch, you go to page, all the German tax forms are there, and we will automatically fill them out for you. >> Jason, I want to get your perspective, because local marketing is a big deal. You guys are in hundreds of countries, I know that from, from doing the research and watching you guys grow. But where do you have actual presence and where does presence matter, can you just highlight, the NetSuite, cuz I think this is going to where, people going to want to know, okay, there's hundreds of countries out there, but where are you, where's the core going to be? >> So it's an interesting point because it's, I think it's not just about product, right? It's not just about having a product that's localized for a specific country, it's about having everything else, right? It's having, making sure the support is in the local language, it's making sure that we have people who speak the language, making sure we have facilities, sales, service people, having a localized data center-- >> John: You guys are committed to that. >> We are 100% committed, this is, you know you asked the question earlier about what, what has been the benefit of Oracle? I don't think, as a standalone company, we'd have been able to pull off what we're pulling off and announcing this week. Without the backing of, and the Oracle resources, because the have the global reach, that we can easily tap into. So when we do local now, we're doing it with everything that a customer needs to be successful. >> Okay, so the next set it is, I want to dive into the hard news is the, new SuiteCommerce kind of vibe, sweet success for SuiteCommerce. It's a new e-commerce solution that gives customers the freedom to grow and evolve their digital commerce business. So this is basically commerce, you're talking about like, doing business. What is this news about, gives us the quick summary, and let's discuss. So our previous commerce product was actually very advanced, we actually started at the top first. We enabled you to touch every pixel on the page, customizing in any way, shape, or form you wanted. What we've done with SuiteCommerce is now we've taken it, and came out with an entirely pre-packaged, pre-built websites. So you can be up and running, with a very complex, fully featured website, in 30 days or less. And it's point and click choose, and this is not going to a basic colors and theme choices, we have complex features that enable you to run your business. So you can come to us, and we will have you running, with commerce enabled, integrated with your back office, with less, in 30 days. >> Jason, I can see two use-cases for this, one is, you know, I need turnkey guys, here's the keys to the kingdom, build it for me, I'll give you all my raw materials, we're up and running, you know, classic turnkey. Then there's the more of the dev ops Cloud model, which is, hey I need access to APIs, I have my own development team. Okay, how do you talk to both those guys, and there's also hybrids in the intersection of both those. So there's two modes of use-cases, how do you guys address the developer? It's interesting, I think the way we look at it is, we can be the first system you buy, and we can also be the last system you'd ever buy, right? And that's that freedom to grow and evolve. So, you may want to start out with us because you're an emerging retailer, and you're launching just in the US. But as you evolve to six more countries in a year and a half because you've got the hit product or you're selling, and you want to start to then expand your sophistication, then we can migrate you to some of the more advanced capabilities, but. What we're delivering today is that ability to have a packaged, out of the Cloud, easier to use, on ramp, to get the value of of NetSuite. >> And the horizontally scalable Cloud is obviously, with developers like, what's the developer story here? Can you guys share the developer perspective for your customer, if I have a team of developers? >> So we use the exact same technology, so SuiteCommerce and SuiteCommerce advanced is the exact same technology. One, we've been the developer, and pre-packaged it, and delivered it to the customer. But if you start with that, you can instantly switch over, and take over the development yourself. So either stay with us, we'll work with you, we'll develop it. Or you can just take that as a starting point and develop it going forward. >> John: Awesome. >> Literally, I think something is 75-80% of our customers, literally customize NetSuite in some shape or form, so you can imagine-- >> John: So you guys are totally open to let developers completely develop them. >> Yeah, there's a platform as a service offering, inside of NetSuite, which is something, that as customers evolve and grow they tend to consume and use more of those platforming features. >> So one of the things I'm reading here in the news, that I want to dive into, that I like. You know I like... (stammering) I like new things. So the latest edition you guys are doing have this concept of micro verticals, that span a variety of industry. So that means data potentially could fly around, certainly. In cyber security we were covering at RSA just recently, the role of data sharing is huge, you obviously got the other end on the policy side of, you know the data protection. So you can't have, you got to have a combination of data sharing to make machine learning, and make, you know, some of these new AI capabilities work. At the same time, you got to have policies around that. But these micro verticals will have to operate in a new way. So, what does a micro vertical mean, and how are you helping customers saying you know, I played a little bit of media, I play a little bit in financial, you know have a lot of different requirements that may cross verticals. How do you guys handle that? >> Well we started off with industries, so we used to think of wholesale distribution as a whole series of vertical features, you need a warehouse, you need all the management, there's all these things that you needed in order to make that work. And now we're going into verticals within that, such as food and beverage, or health and beauty. Then we get down food and beverage, now you have cold storage, so that's where we get to the micro vertical level, and the requirements there are actually quite different than you may get from a generic health and beauty vertical. So what we build are those micro vertical features, to enable this business. >> So you guys drill down into the verticals and segment them down, and, rather than some general purpose solution that's, you know, tryin' to hit, so there's some requirements changes. >> And all the regulatory and compliance requirements that go with those micro verticals, those are engineered as part of the process. >> And what's the impact of the customers, talk about the customer impact, what's the benefit for them? They get better product, they're happier, they get it quicker, and they get it cheaper. So it's kind of the more we do, and the less you do, the happier the customer is going to be. >> Alright philosophical question now, this is really what customers want, they want to have, they want to feel like it's a personal experience customized for their business. How do you make that work in this new Cloud world, what's the secret sauce that you guys bring to the table to make customers get the flexibility, the agility, obviously the scale of Oracle helps, on the foundational level. But as you guys roll out the NetSuites next generation customer environment, what's the secret? >> Well we've always had a platform, a deep platform, and so people have always customized our product. So we're using the exact same customization technologies to deliver these micro verticals that customers and developers have been able to do for years so it's just about leveraging what everyone can do to make it a better solution for those customers. >> Final question now, I mentioned machine learning and AI before, so the IntelligenceSuite is news here. Let's get into that. If you're not doing AI you're not relevant these days, everyone's throwing AI around like it's like at, oh we're AI-ing this so it's machine learning. But this is real, I mean software has to drive efficiencies. There's scale involved in software. Machine learning and artificial intelligence is a great path to operationalize, and automate, and create insights. So what is IntelligenceSuite about, can you share the news there? >> Sure, so we're not building a generic AI tool, Oracle's got a massive investment in that, and I'm sure at some point we'll leverage it. We're actually looking at very specific use-cases within our application, that customers can use right now. And so we're actually taking solutions such as: what is the quickest way to get your inventory to your customer, and using some machine learning to help actually route, and pick the right inventory items, and the right location to get the quickest delivery time to your customer. So we're taking very specific use-cases, and we're building that intelligence in, around that. We're not coming out with a generic AI tool that will, solve all potential questions, answer all potential questions even if you don't know what the questions are, that will come a little bit later. But right now, this is really-- So you guys are taking the low-hanging fruit, drilling down in known use-cases for your customers, and bringing that kind of automation to the table? I think, we basically take the attitude of, machines and humans together are generally a better answer than either by themselves. So we'll give you all the choices, and give you the recommendations, and let you pick the way you want to go. >> Jason how do you market that to a customer? Cuz this is really, I think, a big point. Humans and machines clearly are involved, you look at all the success of machine learning. This is now becoming known, you look at Facebook in front of the United States lawmakers, you know, they don't even know how Facebook works so, you know, you've got an enterprise, they're learning about data, they want real answers and they need to have it digged out for them. >> Jason: I think AI and machine learning could perhaps be, you know, the new planking, the most overused, over-hyped, you know, thing out there right now, and every vendor has to come up with a, like a sort of a perceived AI strategy, so I think it's overwhelming for a lot of customers. Because at the end of the day, these customers are trying to figure out how do I solve really specific problems. They don't have AI problems, they have tangible business problems. And so we took this approach to build this from scratch, inside of NetSuite, we didn't acquire, you know, some random startup, and try and plug and graph that onto NetSuite, we built it with the same though process, around how do we solve that problem, make it more efficient, so. Our conversations with our customers are not about technology, they're about, hey how do we get you, you know, better turns on your inventory, how do we solve a specific business problem, and that resonates, that makes it a lot easier, cuz that's what they know. >> Yeah, there's a shiny new toy, kind of thing, hey look it we got some new tools, and there's a place for that kind of, from a developers standpoint I can see it being a great sandbox. But you guys are taking a different approach, add known customer problems, that you can automate away and create insights, is that right? >> That's it. >> Yeah, absolutely. >> To wrap up, I want to get the thoughts of SuiteWorld, what's going on here, what's the main conversations, what're you guys promoting, what's the message, what's some of the conversations, and what's next for NetSuite? >> You know the biggest conversation is customers talking to each other about how they grow and scale their business. And so we try and create an environment at SuiteWorld where these customers can learn from each other, they can talk to each other. Obviously we share our insights and perspectives, but it's really about them, and how they figure out, and really learn from other experiences to solve what they're trying to accomplish. >> Jim top level message to customers, next 10 years, what's the NetSuite 20 mile stair look like for you guys? >> You know the great thing about NetSuite, we've been around almost 20 years, we've been on the same mission, the same product, and we look at the confusion that's out there in the marketplace. I think people feel very grateful that we're on the path and we know where we're going, and we're delivering them real value, real deliverables, and we're not forcing them to change their business. We change for them, not the other way round. >> From a tech perspective, tech enablement, and outcome perspective, what's the main themes of the show this year. >> It's mostly about or international rollout, our new commerce products, our vertical features, our micro vertical features, and our intelligence assistance. >> Cloud, IOT, AI, software all powerin' this, guys thanks so much for the insight. Exclusive news coverage here on Oracle NetSuite SuiteWorld, big announcements here, this is theCUBE, thanks for watching. (intense orchestral music)

>> Narrator: New York City, it's the Cube covering CyberConnect 2017 brought to you by Centrify and the Institute for Critical Infrastructure Technology. >> Welcome back, everyone. This is the Cube's live coverage in New York City's Grand Hyatt Ballroom for CyberConnect 2017 presented by Centrify. I'm John Furrier, the co-host of the Cube with my co-host this week is Dave Vellante, my partner and co-founder and co-CEO with me in SiliconAngle Media in the Cube. Our next guest is James Scott who is the co-founder and senior fellow at ICIT. Welcome to the Cube. >> Thanks for having me. >> You guys are putting on this event, really putting the content together. Centrify, just so everyone knows, is underwriting the event but this is not a Centrify event. You guys are the key content partner, developing the content agenda. It's been phenomenal. It's an inaugural event so it's the first of its kind bringing in industry, government, and practitioners all together, kind of up leveling from the normal and good events like Black Hat and other events like RSA which go into deep dives. Here it's a little bit different. Explain. >> Yeah, it is. We're growing. We're a newer think tank. We're less than five years old. The objective is to stay smaller. We have organizations, like Centrify, that came out of nowhere in D.C. so we deal, most of what we've done up until now has been purely federal and on the Hill so what I do, I work in the intelligence community. I specialize in social engineering and then I advise in the Senate for the most part, some in the House. We're able to take these organizations into the Pentagon or wherever and when we get a good read on them and when senators are like, "hey, can you bring them back in to brief us?" That's when we know we have a winner so we started really creating a relationship with Tom Kemp, who's the CEO and founder over there, and Greg Cranley, who heads the federal division. They're aggressively trying to be different as opposed to trying to be like everyone else, which makes it easy. If someone wants to do something, they have to be a fellow for us to do it, but if they want to do it, just like if they want to commission a paper, we just basically say, "okay, you can pay for it but we run it." Centrify has just been excellent. >> They get the community model. They get the relationship that you have with your constituents in the community. Trust matters, so you guys are happy to do this but more importantly, the content. You're held to a standard in your community. This is new, not to go in a different direction for a second but this is what the community marketing model is. Stay true to your audience and trust. You're relied upon so that's some balance that you guys have to do. >> The thing is we deal with cylance and others. Cylance, for example, was the first to introduce machine learning artificial intelligence to get passed that mutating hash for endpoint security. They fit in really well in the intelligence community. The great thing about working with Centrify is they let us take the lead and they're very flexible and we just make sure they come out on top each time. The content, it's very content driven. In D.C., we have at our cocktail receptions, they're CIA, NSA, DARPA, NASA. >> You guys are the poster child of be big, think small. >> Exactly. Intimate. >> You say Centrify is doing things differently. They're not falling in line like a lemming. What do you mean by that? What is everybody doing that these guys are doing differently? >> I think in the federal space, I think commercial too, but you have to be willing to take a big risk to be different so you have to be willing to pay a premium. If people work with us, they know they're going to pay a premium but we make sure they come out on top. What they do is, they'll tell us, Centrify will be like, "look, we're going to put x amount of dollars into a lunch. "Here are the types of pedigree individuals "that we need there." Maybe they're not executives. Maybe they're the actual practitioners at DHS or whatever. The one thing that they do different is they're aggressively trying to deviate from the prototype. That's what I mean. >> Like a vendor trying to sell stuff. >> Yeah and the thing is, that's why when someone goes to a Centrify event, I don't work for Centrify (mumbles). That's how they're able to attract. If you see, we have General Alexander. We've got major players here because of the content, because it's been different and then the other players want to be on the stage with other players, you know what I mean. It almost becomes a competition for "hey, I was asked to come to an ICIT thing" you know, that sort of thing. That's what I mean. >> It's reputation. You guys have a reputation and you stay true to that. That's what I was saying. To me, I think this is the future of how things get done. When you have a community model, you're held to a standard with your community. If you cross the line on that standard, you head fake your community, that's the algorithm that brings you a balance so you bring good stuff to the table and you vet everyone else on the other side so it's just more of a collaboration, if you will. >> The themes here, what you'll see is within critical infrastructure, we try to gear this a little more towards the financial sector. We brought, from Aetna, he set up the FS ISAC. Now he's with the health sector ISAC. For this particular geography in New York, we're trying to have it focus more around health sector and financial critical infrastructure. You'll see that. >> Alright, James, I've got to ask you. You're a senior fellow. You're on the front lines with a great Rolodex, great relationships in D.C., and you're adivising and leaned upon by people making policy, looking at the world and the general layout in which, the reality is shit's happening differently now so the world's got to change. Take us through a day in the life of some of the things you guys are seeing and what's the outlook? I mean, it's like a perfect storm of chaos, yet opportunity. >> It really depends. Each federal agency, we look at it from a Hill perspective, it comes down to really educating them. When I'm in advising in the House, I know I'm going to be working with a different policy pedigree than a Senate committee policy expert, you know what I mean. You have to gauge the conversation depending on how new the office is, House, Senate, are they minority side, and then what we try to do is bring the issues that the private sector is having while simultaneously hitting the issues that the federal agency space is. Usually, we'll have a needs list from the CSWEP at the different federal agencies for a particular topic like the Chinese APTs or the Russian APT. What we'll do is, we'll break down what the issue is. With Russia, for example, it's a combination of two types of exploits that are happening. You have the technical exploit, the malicious payload and vulnerability in a critical infrastructure network and then profiling those actors. We also have another problem, the influence operations, which is why we started the Center for Cyber Influence Operations Studies. We've been asked repeatedly since the elections last year by the intelligence community to tell us, explain this new propaganda. The interesting thing is the synergies between the two sides are exploiting and weaponizing the same vectors. While on the technical side, you're exploiting a vulnerability in a network with a technical exploit, with a payload, a compiled payload with a bunch of tools. On the influence operations side, they're weaponizing the same social media platforms that you would use to distribute a payload here but only the... >> Contest payload. Either way you have critical infrastructure. The payload being content, fake content or whatever content, has an underpinning that gamification call it virality, network effect and user psychology around they don't really open up the Facebook post, they just read the headline and picture. There's a dissonance campaign, or whatever they're running, that might not be critical to national security at that time but it's also a post. >> It shifts the conversation in a way where they can use, for example, right now all the rage with nation states is to use metadata, put it into big data analytics, come up with a psychographic algorithm, and go after critical infrastructure executives with elevated privileges. You can do anything with those guys. You can spearfish them. The Russian modus operandi is to call and act like a recruiter, have that first touch of contact be the phone call, which they're not expecting. "Hey, I got this job. "Keep it on the down low. Don't tell anybody. "I'm going to send you the job description. "Here's the PDF." Take it from there. >> How should we think about the different nation state actors? You mentioned Russia, China, there's Iran, North Korea. Lay it out for us. >> Each geography has a different vibe to their hacking. With Russia you have this stealth and sophistication and their hacking is just like their espionage. It's like playing chess. They're really good at making pawns feel like they're kings on the chessboard so they're really good at recruiting insider threats. Bill Evanina is the head of counterintel. He's a bulldog. I know him personally. He's exactly what we need in that position. The Chinese hacking style is more smash and grab, very unsophisticated. They'll use a payload over and over again so forensically, it's easy to... >> Dave: Signatures. >> Yeah, it is. >> More shearing on the tooling or whatever. >> They'll use code to the point of redundancy so it's like alright, the only reason they got in... Chinese get into a network, not because of sophistication, but because the network is not protected. Then you have the mercenary element which is where China really thrives. Chinese PLA will hack for the nation state during the day, but they'll moonlight at night to North Korea so North Korea, they have people who may consider themselves hackers but they're not code writers. They outsource. >> They're brokers, like general contractors. >> They're not sophisticated enough to carry out a real nation state attack. What they'll do is outsource to Chinese PLA members. Chinese PLA members will be like, "okay well, here's what I need for this job." Typically, what the Chinese will do, their loyalties are different than in the west, during the day they'll discover a vulnerability or an O day. They won't tell their boss right away. They'll capitalize off of it for a week. You do that, you go to jail over here. Russia, they'll kill you. China, somehow this is an accepted thing. They don't like it but it just happens. Then you have the eastern European nations and Russia still uses mercenary elements out of Moscow and St. Petersburg so what they'll do is they will freelance, as well. That's when you get the sophisticated, carbonic style hack where they'll go into the financial sector. They'll monitor the situation. Learn the ins and outs of everything having to do with that particular swift or bank or whatever. They go in and those are the guys that are making millions of dollars on a breach. Hacking in general is a grind. It's a lot of vulnerabilities work, but few work for long. Everybody is always thinking there's this omega code that they have. >> It's just brute force. You just pound it all day long. >> That's it and it's a grind. You might have something that you worked on for six months. You're ready to monetize. >> What about South America? What's the vibe down there? Anything happening in there? >> Not really. There is nothing of substance that really affects us here. Again, if an organization is completely unprotected. >> John: Russia? China? >> Russia and China. >> What about our allies? >> GCHQ. >> Israel? What's the collaboration, coordination, snooping? What's the dynamic like there? >> We deal, mostly, with NATO and Five Eyes. I actually had dinner with NATO last night. Five Eyes is important because we share signals intelligence and most of the communications will go through Five Eyes which is California, United States, Australia, New Zealand, and the UK. Those are our five most important allies and then NATO after that, as far as I'm concerned, for cyber. You have the whole weaponization of space going on with SATCOM interception. We're dealing with that with NASA, DARPA. Not a lot is happening down in South America. The next big thing that we have to look at is the cyber caliphate. You have the Muslim brotherhood that funds it. Their influence operations domestically are extremely strong. They have a lot of contacts on the Hill which is a problem. You have ANTIFA. So there's two sides to this. You have the technical exploit but then the information warfare exploit. >> What about the bitcoin underbelly that started with the silk roads and you've seen a lot of bitcoin. Money laundering is a big deal, know your customer. Now regulation is part of big ICOs going on. Are you seeing any activity from those? Are they pulling from previous mercenary groups or are they arbitraging just more free? >> For updating bitcoin? >> The whole bitcoin networks. There's been an effort to commercialize (mumbles) so there's been a legitimate track to bring that on but yet there's still a lot of actors. >> I think bitcoin is important to keep and if you look at the more black ops type hacking or payment stuff, bitcoin is an important element just as tor is an important element, just as encryption is an important element. >> John: It's fundamental, actually. >> It's a necessity so when I hear people on the Hill, I have my researcher, I'm like, "any time you hear somebody trying to have "weakened encryption, back door encryption" the first thing, we add them to the briefing schedule and I'm like, "look, here's what you're proposing. "You're proposing that you outlaw math. "So what? Two plus two doesn't equal four. "What is it? Three and a half? "Where's the logic?" When you break it down for them like that, on the Hill in particular, they begin to get it. They're like, "well how do we get the intelligence community "or the FBI, for example, to get into this iphone?" Civil liberties, you've got to take that into consideration. >> I got to ask you a question. I interviewed a guy, I won't say his name. He actually commented off the record, but he said to me, "you won't believe how dumb some of these state actors are "when it comes to cyber. "There's some super smart ones. "Specifically Iran and the Middle East, "they're really not that bright." He used an example, I don't know if it's true or not, that stuxnet, I forget which one it was, there was a test and it got out of control and they couldn't pull it back and it revealed their hand but it could've been something worse. His point was they actually screwed up their entire operation because they're doing some QA on their thing. >> I can't talk about stuxnet but it's easy to get... >> In terms of how you test them, how do you QA your work? >> James: How do you review malware? (mumbles) >> You can't comment on the accuracy of Zero Days, the documentary? >> Next question. Here's what you find. Some of these nation state actors, they saw what happened with our elections so they're like, "we have a really crappy offensive cyber program "but maybe we can thrive in influence operations "in propaganda and whatever." We're getting hit by everybody and 2020 is going to be, I don't even want to imagine. >> John: You think it's going to be out of control? >> It's going to be. >> I've got to ask this question, this came up. You're bringing up a really good point I think a lot of people aren't talking about but we've brought up a few times. I want to keep on getting it out there. In the old days, state on state actors used to do things, espionage, and everyone knew who they were and it was very important not to bring their queen out, if you will, too early, or reveal their moves. Now with Wikileaks and public domain, a lot of these tools are being democratized so that they can covertly put stuff out in the open for enemies of our country to just attack us at will. Is that happening? I hear about it, meaning that I might be Russia or I might be someone else. I don't want to reveal my hand but hey, you ISIS guys out there, all you guys in the Middle East might want to use this great hack and put it out in the open. >> I think yeah. The new world order, I guess. The order of things, the power positions are completely flipped, B side, counter, whatever. It's completely not what the establishment was thinking it would be. What's happening is Facebook is no more relevant, I mean Facebook is more relevant than the UN. Wikileaks has more information pulsating out of it than a CIA analyst, whatever. >> John: There's a democratization of the information? >> The thing is we're no longer a world that's divided by geographic lines in the sand that were drawn by these two guys that fought and lost a war 50 years ago. We're now in a tribal chieftain digital society and we're separated by ideological variation and so you have tribe members here in the US who have fellow tribe members in Israel, Russia, whatever. Look at Anonymous. Anonymous, I think everyone understands that's the biggest law enforcement honeypot there is, but you look at the ideological variation and it's hashtags and it's keywords and it's forums. That's the Senate. That's congress. >> John: This is a new reality. >> This is reality. >> How do you explain that to senators? I was watching that on TV where they're trying to grasp what Facebook is and Twitter. (mumbles) Certainly Facebook knew what was going on. They're trying to play policy and they're new. They're newbies when it comes to policy. They don't have any experience on the Hill, now it's ramping up and they've had some help but tech has never been an actor on the stage of policy formulation. >> We have a real problem. We're looking at outside threats as our national security threats, which is incorrect. You have dragnet surveillance capitalists. Here's the biggest threats we have. The weaponization of Facebook, twitter, youtube, google, and search engines like comcast. They all have a censorship algorithm, which is how they monetize your traffic. It's censorship. You're signing your rights away and your free will when you use google. You're not getting the right answer, you're getting the answer that coincides with an algorithm that they're meant to monetize and capitalize on. It's complete censorship. What's happening is, we had something that just passed SJ res 34 which no resistance whatsoever, blew my mind. What that allows is for a new actor, the ISPs to curate metadata on their users and charge them their monthly fee as well. It's completely corrupt. These dragnet surveillance capitalists have become dragnet surveillance censorists. Is that a word? Censorists? I'll make it one. Now they've become dragnet surveillance propagandists. That's why 2020 is up for grabs. >> (mumbles) We come from the same school here on this one, but here's the question. The younger generation, I asked a gentleman in the hallway on his way out, I said, "where's the cyber west point? "We're the Navy SEALS in this new digital culture." He said, "oh yeah, some things." We're talking about the younger generation, the kids playing Call of Duty Destiny. These are the guys out there, young kids coming up that will probably end up having multiple disciplinary skills. Where are they going to come from? So the question is, are we going to have a counterculture? We're almost feeling like what the 60s were to the 50s. Vietnam. I kind of feel like maybe the security stuff doesn't get taken care of, a revolt is coming. You talk about dragnet censorship. You're talking about the lack of control and privacy. I don't mind giving Facebook my data to connect with my friends and see my thanksgiving photos or whatever but now I don't want fake news jammed down my throat. Anti-Trump and Anti-Hillary spew. I didn't buy into that. I don't want that anymore. >> I think millennials, I have a 19 year old son, my researchers, they're right out of grad school. >> John: What's the profile like? >> They have no trust whatsoever in the government and they laugh at legislation. They don't care any more about having their face on their Facebook page and all their most intimate details of last night's date and tomorrow's date with two different, whatever. They just don't... They loathe the traditional way of things. You got to talk to General Alexander today. We have a really good relationship with him, Hayden, Mike Rogers. There is a counterculture in the works but it's not going to happen overnight because we have a tech deficit here where we need foreign tech people just to make up for the deficit. >> Bill Mann and I were talking, I heard the general basically, this is my interpretation, "if we don't get our shit together, "this is going to be an f'd up situation." That's what I heard him basically say. You guys don't come together so what Bill talked about was two scenarios. If industry and government don't share and come together, they're going to have stuff mandated on them by the government. Do you agree? >> I do. >> What's going to happen? >> The argument for regulation on the Hill is they don't want to stifle innovation, which makes sense but then ISPs don't innovate at all. They're using 1980s technology, so why did you pass SJ res 34? >> John: For access? >> I don't know because nation states just look at that as, "oh wow another treasure trove of metadata "that we can weaponize. "Let's start psychographically charging alt-left "and alt-right, you know what I mean?" >> Hacks are inevitable. That seems to be the trend. >> You talked before, James, about threats. You mentioned weaponization of social. >> James: Social media. >> You mentioned another in terms of ISPs I think. >> James: Dragnet. >> What are the big threats? Weaponization of social. ISP metadata, obviously. >> Metadata, it really depends and that's the thing. That's what makes the advisory so difficult because you have to go between influence operations and the exploit because the vectors are used for different things in different variations. >> John: Integrated model. >> It really is and so with a question like that I'm like okay so my biggest concern is the propaganda, political warfare, the information warfare. >> People are underestimating the value of how big that is, aren't they? They're oversimplifying the impact of info campaigns. >> Yeah because your reality is based off of... It's like this, influence operations. Traditional media, everybody is all about the narrative and controlling the narrative. What Russia understands is to control the narrative, the most embryo state of the narrative is the meme. Control the meme, control the idea. If you control the idea, you control the belief system. Control the belief system, you control the narrative. Control the narrative, you control the population. No guns were fired, see what I'm saying? >> I was explaining to a friend on Facebook, I was getting into a rant on this. I used a very simple example. In the advertising world, they run millions of dollars of ad campaigns on car companies for post car purchase cognitive dissonance campaigns. Just to make you feel good about your purchase. In a way, that's what's going on and explains what's going on on Facebook. This constant reinforcement of these beliefs whether its for Trump or Hillary, all this stuff was happening. I saw it firsthand. That's just one small nuance but it's across a spectrum of memes. >> You have all these people, you have nation states, you have mercenaries, but the most potent force in this space, the most hyperevolving in influence operations, is the special interest group. The well-funded special interests. That's going to be a problem. 2020, I keep hitting that because I was doing an interview earlier. 2020 is going to be a tug of war for the psychological core of the population and it's free game. Dragnet surveillance capitalists will absolutely be dragnet surveillance propagandists. They will have the candidates that they're going to push. Now that can also work against them because mainstream media, twitter, Facebook were completely against trump, for example, and that worked in his advantage. >> We've seen this before. I'm a little bit older, but we are the same generation. Remember when they were going to open up sealex? Remember the last mile for connectivity? That battle was won before it was even fought. What you're saying, if I get this right, the war and tug of war going on now is a big game. If it's not played in one now, this jerry rigging, gerrymandering of stuff could happen so when people wake up and realize what's happened the game has already been won. >> Yeah, your universe as you know it, your belief systems, what you hold to be true and self evident. Again, the embryo. If you look back to the embryo introduction of that concept, whatever concept it is, to your mind it came from somewhere else. There are very few things that you believe that you came up with yourself. The digital space expedites that process and that's dangerous because now it's being weaponized. >> Back to the, who fixes this. Who's the watchdog on this? These ideas you're talking about, some of them, you're like, "man that guy has lost it, he's crazy." Actually, I don't think you're crazy at all. I think it's right on. Is there a media outlet watching it? Who's reporting on it? What even can grasp what you're saying? What's going on in D.C.? Can you share that perspective? >> Yeah, the people that get this are the intelligence community, okay? The problem is the way we advise is I will go in with one of the silos in the NSA and explain what's happening and how to do it. They'll turn around their computer and say, "show me how to do it. "How do you do a multi vector campaign "with this meme and make it viral in 30 minutes." You have to be able to show them how to do it. >> John: We can do that. Actually we can't. >> That sort of thing, you have to be able to show them because there's not enough practitioners, we call them operators. When you're going in here, you're teaching them. >> The thing is if they have the metadata to your treasure trove, this is how they do it. I'll explain here. If they have the metadata, they know where the touch points are. It's a network effect mole, just distributive mole. They can put content in certain subnetworks that they know have a reaction to the metadata so they have the knowledge going in. It's not like they're scanning the whole world. They're monitoring pockets like a drone, right? Once they get over the territory, then they do the acquired deeper targets and then go viral. That's basically how fake news works. >> See the problem is, you look at something like alt-right and ANTIFA. ANTIFA, just like Black Lives Matter, the initiatives may have started out with righteous intentions just like take a knee. These initiatives, first stage is if it causes chaos, chaos is the op for a nation state in the US. That's the op. Chaos. That's the beginning and the end of an op. What happens is they will say, "oh okay look, this is ticking off all these other people "so let's fan the flame of this take a knee thing "hurt the NFL." Who cares? I don't watch football anyway but you know, take a knee. It's causing all this chaos. >> John: It's called trolling. >> What will happen is Russia and China, China has got their 13 five year plan, Russia has their foreign influence operations. They will fan that flame to exhaustion. Now what happens to the ANTIFA guy when he's a self-radicalized wound collector with a mental disorder? Maybe he's bipolar. Now with ANTIFA, he's experienced a heightened more extreme variation of that particular ideology so who steps in next? Cyber caliphate and Muslim brotherhood. That's why we're going to have an epidemic. I can't believe, you know, ANTIFA is a domestic terrorist organization. It's shocking that the FBI is not taking this more serious. What's happening now is Muslim brotherhood funds basically the cyber caliphate. The whole point of cyber caliphate is to create awareness, instill the illusion of rampant xenophobia for recruiting. They have self-radicalized wound collectors with ANTIFA that are already extremists anyway. They're just looking for a reason to take that up a notch. That's when, cyber caliphate, they hook up with them with a hashtag. They respond and they create a relationship. >> John: They get the fly wheel going. >> They take them to a deep web forum, dark web forum, and start showing them how it works. You can do this. You can be part of something. This guy who was never even muslim now is going under the ISIS moniker and he acts. He drives people over in New York. >> They fossilized their belief system. >> The whole point to the cyber caliphate is to find actors that are already in the self-radicalization phase but what does it take psychologically and from a mentoring perspective, to get them to act? That's the cyber caliphate. >> This is the value of data and context in real time using the current events to use that data, refuel their operation. It's data driven terrorism. >> What's the prescription that you're advising? >> I'm not a regulations kind of guy, but any time you're curating metadata like we're just talking about right now. Any time you have organizations like google, like Facebook, that have become so big, they are like their own nation state. That's a dangerous thing. The metadata curation. >> John: The value of the data is very big. That's the point. >> It is because what's happening... >> John: There's always a vulnerability. >> There's always a vulnerability and it will be exploited and all that metadata, it's unscrubbed. I'm not worried about them selling metadata that's scrubbed. I'm worried about the nation state or the sophisticated actor that already has a remote access Trojan on the network and is exfiltrating in real time. That's the guy that I'm worried about because he can just say, "forget it, I'm going to target people that are at this phase." He knows how to write algorithms, comes up with a good psychographic algorithm, puts the data in there, and now he's like, "look I'm only going to promote this concept, "two people at this particular stage of self-radicalization "or sympathetic to the kremlin." We have a big problem on the college campuses with IP theft because of the Chinese Students Scholar Associations which are directly run by the Chinese communist party. >> I heard a rumor that Equifax's franchising strategy had partners on the VPN that were state sponsored. They weren't even hacking, they had full access. >> There's a reason that the Chinese are buying hotels. They bought the Waldorf Astoria. We do stuff with the UN and NATO, you can't even stay there anymore. I think it's still under construction but it's a no-no to stay there anymore. I mean western nations and allies because they'll have bugs in the rooms. The WiFi that you use... >> Has fake certificates. >> Or there's a vulnerability that's left in that network so the information for executives who have IP or PII or electronic health records, you know what I mean? You go to these places to stay overnight, as an executive, and you're compromised. >> Look what happened with Eugene Kaspersky. I don't know the real story. I don't know if you can comment, but someone sees that and says, "this guy used to have high level meetings "at the Pentagon weekly, monthly." Now he's persona non grata. >> He fell out of favor, I guess, right? It happens. >> James, great conversation. Thanks for coming on the Cube. Congratulations on the great work you guys are doing here at the event. I know the content has been well received. Certainly the key notes we saw were awesome. CSOs, view from the government, from industry, congratulations. James Scott who is the co founder and senior fellow of ICIT, Internet Critical Infrastructure Technology. >> James: Institute of Critical Infrastructure Technology. >> T is for tech. >> And the Center for Cyber Influence Operations Studies. >> Good stuff. A lot of stuff going on (mumbles), exploits, infrastructure, it's all mainstream. It's the crisis of our generation. There's a radical shift happening and the answers are all going to come from industry and government coming together. This is the Cube bringing the data, I'm John Furrier with Dave Vellante. Thanks for watching. More live coverage after this short break. (music)

live from San Francisco California it's the queue at vmworld 2014 brought to you by vmware cisco EMC HP and nutanix hi welcome back to San Francisco everybody this is dave vellante i'm with Wikibon organ this is silicon angles the cube cube is our live mobile studio we go out to the events we extract the signal from the noise and we're here at vmworld 2014 this is our fifth year at vmworld we're in moscone south of the lobby in the right hand side just before you get through the escalators stop by say hello fish motion is here is with HP cube alum you know I'm going to talk to your title you do so many things at HP technical background you do strategy you do product stuff so welcome back to the cube it's good to see you great thanks thanks Dave great to be here again we were we spent a lot of time together last week actually right we were in Boston yes doing the deep dive you had a bunch of analysts in kind of doing the kool-aid injection I thought it went really well you had a good crew there it was a very interactive session a lot of good feedback you know it was good i mean what you think yeah i thought it was great you know in my mind getting the perspective from folks outside a HP just to keep grounded and what the reality is i think is very key right and so we really enjoyed the interaction the feedback you guys provided us and the depth and time that we could spend on the topic yeah i was there only for the first day i told you i was out golf in the second day shut up but i got to hear the flash session and and then you know there was a little bit of discussion on software-defined but I think you guys went into that in more detail the second day so I want to start there sure the software-defined data center you know the what used to be called the software mainframe yeah don't use that term anymore the marketing guys took over from moretz and so we're now seeing that sort of instantiation what do you make of all that what's HP's sort of position on that yeah so Dave let me talk from our from a storage perspective right because the software-defined data center is a very broad area reservas networking so we look at storage there are two elements you want to think about in fact three elements you want to think about which software-defined data centers in storage the first element has to do with cost optimizations how do you get the lowest cost storage that's defined by software-defined storage that's hypervisor agnostic that's hardware independent and that is control orchestrated by industry standard offerings that's the first piece right then there is sort of like all performance optimized storage to deliver on a service level and instead of you know collecting masses of hardware to deliver that service level a lot of the optimizations are done in software so as an example priority optimization software to guarantee how much an application gets in terms of performance how do you solve the noisy neighbor problem or here's another one Pierre motion to move data between say a flash array and a tiered array for example right just because it's a different service level you want to accomplish with that without offering so so this notion of a service levels really key and the third piece Dave I think is this notion of orchestration right and I saw view OpenStack you had OpenStack announced but be aim where as well you know it's the tcp/ip of orchestration if I can use that term right you know you don't want to be able to orchestrate in a standard fashion just like you know we used to have decnet sna appletalk and then tcp/ip one out right I think we've got the same phase here with orchestration today right okay so the reliable approach to to orchestration that everybody can trust the trust everybody understands and and ok so now so so that's kind of the high-level what's your specific product strategy around software-defined sure so we can talk about two key products from a from a software-defined costs optimize we have the HP storevirtual VSA and the HP storeonce VSA right these are both virtual storage appliances that work on any story any hardware any server hardware right we of course will talk about HP servers but if you are running on a delta x only any x86 xne x86 right we announced support for 4 kb m on the store virtual we announced support for hyper-v install ones we also announced the store virtual offering being a part of the Helion HP Helion OpenStack distribution and if you recall he lien OpenStack is has both a community edition and enterprise edition right and so whichever edition that you get from Helion you essentially have now store but you'll be sa built into it ok so we know a little bit about helium we've had sargol I on a number of times on the cube and and we've seen HP's cloud strategy evolve so and we can come back and talk about that a little bit so relative to v san I got to get your take on on v san because there's so much confusion in the marketplace so Chuck also write a blog one day and you'll read it and say oh maybe sort of dissing the the competition and the next day it's like you know a lot of love and embracing but it's clear that one positioning for v san suu you guys are not just vmware it's more than just vmware but what's your take on visa and what does it mean for your for your strategy as an ecosystem partner that sells probably more vmware licenses than anybody i mean how do you yeah when you make it up that's a great question right so vmware continues to be a very close partner with us right i think the introduction of visa and evo rail i think it just continues to point to invalidate this notion of software-defined storage right in my mind Dave it's software defined and flash are the two key disruptors we saw that this year I think going into next year we'll see that sort of go even more mainstream right so you know I think it's great to see multiple offerings here validating what we've done actually with Software Defined before it was having cold software-defined right you look at if you look at store virtual and how we offered it right okay and and so just a natural progression of the ecosystem right and it's like VMware's the software vendor doing with software vendors do grabbing pieces of the stack and the hardware guys got to move fast you know hardware guys the two software got to move fast well I think it's going to be interesting right like like any sort of emerging technology as always a flourishing of offerings right mhm and I think that's the great thing about this it's it's choice you can say probably have different approaches and let's see which one wins out in the market in the end right all right let's talk about flash so you guys came out last summer flash announcement all-flash array based on three par and made the statement okay well we're not going to go buy a flash company we don't need to a lot of people myself included said well maybe don't need to but Meg Whitman said we're not doing any acquisitions certainly any major ones so you really have a choice so the question in my mind at the time was okay is this a bolt on a term that you guys used a lot when everybody was say no we have thin provisioning to you said that's a bolt on and you were largely correct and so I was skeptical and then when you came out with flash last summer the pricing was in my view not competitive now fast forward to this summer all of a sudden you're under two dollars a gigabyte your latency is down to best in class Wow okay what happened how do we get there so where are we with flash how all of a sudden did we go from really essentially a an okay product with a great stack that was really to your advantage as you had the stack to one that is now great stack competitive from performance and a price standpoint what happened yeah so David's been a great year for the last 12-18 months on flash right if I can roll back the clock a little bit and talk about some of the elements of change right I think to answer your question first what happened right there was a very big emphasis on flash we've had R&D developments over the last two to three years focusing on flash optimizations there were a lot of skeptics at first step said hey wait a minute you guys are a disk based architecture can you really do flash I think the proofs in the pudding right now right nine or thousand I ops 200 microseconds of latency write latency thinly duplication inline switch data services data mobility now you if you roll back and look at sort of what the rides been in December of 2013 we announce something called adaptive sparing right so we took now one very key flash optimization we took an 800 gig SSD drive and looked at how our provisioning was done unless it's do you drive and said wait a minute we can be a bit more intelligent village right adaptive sparing allowed you to reduce the over provisioning capacity that the drive takes so the net effect the customer was they got extra capacity at the same price because we treated the flash differently from say a traditional media right and so a lot of times i know i will tell folks hey you know if you're really flash optimized mr. vendor where's your adapter spearing right because here's a perfect example of how i can take it and rig a drive deliver our customer 920 gigs that's twenty percent more capacity free right that was back in december where we announce it after sparing this one of several optimizations we did then in june of 2014 we announced sort of flash for the mainstream right to gospel gigabyte we had ten deduplication teen clones 1.9 terabyte see mlc drives 460 terabyte raw capacity right five-year warranty on the drives 69 s guarantee we brought together a real collection of very very compelling i think features that allow customers to take flash to the mainstream right so far we've seen great uptake on that we'll talk about customers in a second we see not only just all flash deployments but people are the point traditional high nras like a monolithic v-max for example are we looking at that and saying wow you mean to tell me I can get the same performance same resiliency half the floor space may be less than half the floor space less power it's a very compelling proposition is that the competition vimax or is a competition other flash array well I think you got both IV about you got all the flash arrays you've got also high-end arrays and then you also have people that are looking for work load acceleration right consolidation so it is truly becoming mainstream because we're seeing multiple use cases mm-hmm right then fast forward to September it's just a couple of days ago we announced all flash 7200 starter kit for 35 thousand dollars average Street rice okay and you know if that was flashed on the mainstream this is now flash for the masses and my first flash array B let me use that term and here's where we're looking at that for Dave right so there are two kinds of buyers right one buyer says hey I have a limited absolute dollar budget Sam only got fifty thousand dollars alright so now you have an offering that gives you that that ability to go into flash they're also people that are saying wait a minute you know if I were to try out flash in my data center 35k is a very low risk invest right maybe it works great if it doesn't all right we'll move on right and so I think that's another very interesting approach to the way people are buying flash I you mentioned customers before so I was going to ask you how's the uptake have you seen you know since you've made the new announcements have you seen a big boost in in demand and you know get any proof points that you can share with us yeah Dave's we'd be seeing great up take lots of interest lots of the man let me talk about three customers today okay so let me start off with lattices lattices is a cloud service provider there are managed hosting provider and they were looking for high-performance storage to maintain SLA s right and in addition to sort of guaranteed high performance they needed the ability to ensure that they could offer customers a consistent and guaranteed performance level as well as a very performance level right I may come in with a bronze service level that I need and I want to pay for a bronze service level versus say a gold service level where I actually want to be able to offer that service so lattices put the three-part 7450 and and then this piece of software called priority optimization to do exactly that they also use three part because of its unique multi-tenancy features where you can run mixed workloads you can consolidate different types of customers on those workloads that was key for lattices and then what they said to me was provisioning now took hours instead of days orchestration was quick and and it was easy right that was the big thing for them it was simple to use number two Nuance Communications I don't even know the company yeah sure nuance they make dragon well the dragon speech recognition is off later there's a lot of Apple iPhone Siri local companies on the back end hello Pocoyo for ya so nuanced does speech recognition software and they actually help in the case of Apple iPhone Siri are non-native speakers right by recording their voice patterns and then helping recognize those watchbands right be especially with non-native speaker now they use that 7452 index those voicemails very quickly to deliver iPhone Siri service to improve improve recognition I mean you remember when I found first came out it was the Serie was awful you couldn't even use it and now it's so it's better over time right yeah that's great case use case their third one is exact target and you know exact target is a marketing demand generation company they they have a huge number of databases in fact some of the stats that they share with me was four trillion rose under management they do 21 billion rules that day 100 terabytes databases are not common uncommon in ExactTarget right and so they have multiple three power raised to to to store this data and and they deployed both cheering with flash as well as all-flash arrays right and the biggest thing for them was how do they adopt flash without ripping and replacing their infrastructure I have an existing infrastructure they want to be able to add flash to it to accelerate performance lower costs and then they also now viewing all flash for vdi right so exact target is a perfect example here of a three-part customer being able to extend an embrace flash without doing a lot of change 3par the gift that keeps on giving I always say all right there's we have to leave it there thanks very much for coming to the cube I was a great dump to you I keep track everybody will be back with our next guest this is the cube we're live from vmworld 2014 and we'll be right back you