>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. Okay, we're now going >>to explore what it's like to be the CEO of a fast paced growth company in Silicon Valley. And how the cloud, however, you wanted to find the cloud public cloud on Prem Hybrid, etcetera. How it supported that growth. And with me is Kathy Southwick, who is the CEO of pure storage. Kathy is really deep experience. Managing technology organizations spent a number of years overseeing A T and T s cloud planning and engineering and another few years overseeing a team of a Couple 1000 network and I T engineers working to break the physical stranglehold of fossilized telco networks, implementing network functions, virtualization and a software defined methodology for the company. And, of course, you spent the last couple of years is the CEO of Pure. So Cathy, it's great to see you again. Thank you for coming on the program. >>Thanks for having me. It's good to be here. >>You're very welcome. And so so >>given your >>experience with cloud, you know, dating back to really the early part of last decade. How did you look at cloud back then and how How is it evolved from your point of view? >>You know, it's Ah, it's an interesting question because I think that we've there's some things that have moved very fast and there's some some things that are very much the same as they were even a decade ago. I think that all companies are very focused on How do you think about Cloud? Do you think about it as on Prem? And when I started, we really were focused on an on Prem solution, and I'm in building an on Prem private cloud to help modernize our business. So I think that, you know, with that all companies are still in that same mindset of how do I want to think about Cloud? And how do I want to think about that on Prem versus Public versus, you know, combination or some type of hybrid solution? So I think all of us around that journey, it just seems like it's taken. It's probably a bit longer than most of us probably thought from beginning. >>So as a CEO thinking about that evolution, how has that informed the way you think about applying specifically the public cloud to pure business. >>You know, I think that we've been a for pure ourselves. I think we're in a really unique position. We were essentially born in the cloud. So we're, you know, company. That's 10 11 years old. And if I If I give the contrast of that of 18 t being, you know, 130 year old company Onda having a lot of applications that have, you know, lived historically on prim. There's very different issues and challenges that you have pure has had that. I think the advantage just like many other companies that were born in the cloud who have can see what advantages are very quickly. And we made decisions early on that said that we were gonna actually do both. We were gonna look to say, How do I put those applications in that in that data, whether it was on public or in on Prem and be able to do that both in the i t. Side as well as within the product side? So how we build our products now, >>as I mentioned up front, you have obviously a lot of experience managing large technology teams. My question is. When you first saw the emergence of the modern cloud, how did you communicate with your team members? I mean, you mentioned you were kind of building your own private cloud, so I guess that's less threatening to people. But what was it like? You know, Was there a concern? You know, with the eager to jump in? What was that dynamic like? And how did you manage >>it? You know, it's really it's a different depending on the different part of the organization. So I'll give you kind of two things I learned one of them was that our teams in the operation side, they saw it as a huge advantage. They saw it as an opportunity to really modernized to really get themselves both their own individual skill sets advanced, as well as provide a better level of service for our internal, you know, customer, so to speak. Our application in our data partners that we had to work with, um, they thought is an opportunity to bring agility to their applications quicker speed to market, um, or currency of their applications. So they actually got some benefits that they weren't. Actually, I'll call planning for they were they had the opportunity toe get investment in their applications without having to put the that investment on themselves. I would tell you the thing I learned from the teams, this is probably might be a little bit surprised. But often, you know, leaders believe like, you gotta have all the answers. You're gonna drive everything you're gonna let make sure everyone knows what needs to get done and what I actually found. This was actually one of my big moments, I think, was our Our individuals are employees are teams. They're so brilliant and so bright on driving change. And a lot of times leaders, I think, get in the way that so for cloud and adoption, it was really about me getting out of the way. It was really about setting that north star for where we want to go from the ability to deliver fast and quick for our business. And they get out of the way and let our teams actually drive. So it was a great, um, it was we actually actually saw the reverse. I saw more employees wanting to drive, and I needed to, like, back out and just say, Here's what we need to go. Let them drive us there. >>Alright, So I gotta ask you don't Please don't hate me for asking this question, but was your your gender and advantage was at a disadvantage. It wasn't really irrelevant in that regard. >>It was a relevant um, I think that it was I actually I truly believe it's irrelevant. I think it was literally recognizing that leaders need to set vision and what we want to achieve and let our letter of teams help us drive to get there. And I think that that is, you know, gender neutral. I think it's really about, you know, kind of checking your ego and everything else out to the side. And it's really about empowering people in our teams. Thio help drive us there. >>So thinking about that that learning specifically are there any similar tectonic shifts that you're you're seeing today where you can apply that experience? I'm just like, for instance, new modes of application development and requiring new skill sets are, or maybe another that you can think of. >>Yeah, I think I think honestly, it traverse is everything that we that we have to do as a you know, as a leader of a technology team, and whether you're in a high growth company like Pure or you're in a company that's trying to take costs out of your business or trying to, you know, do things. I think that it, um it really is a matter of leaders needing to set the stage. And so if we're trying to drive, you know, changing the business, it's really making sure that we're doing I'll calm or more empowering of our employees and they because they will see the way that we can get there. It's just a matter of, you know, letting them have that ability to do it. >>So you joined pure around two years ago and obviously growing very quickly. I love pandemic has changed the trajectory of that growth, but still good outlook. Um, but Silicon Valley fast paced company, you know, I kind of put it in the camp of the the work days, and the service now is that could have similar similar cultural patterns there. So you talked a little bit about this, but I wonder if we could come back and more specifically how you're leveraging cloud, how you're thinking about it, you know, on Prem Hybrid, Now the edge. And how did that contribute Thio Puros growth? >>Yeah, that za great question because I think that why I shared earlier, you know, we were essentially born in the cloud. I think that what it's really driven us is to be thinking more forward about where customers were going and what their challenges are. So whether it's for the I t. Teams on what we're trying to do to deliver for our business and, you know, innovation, they're obviously trying to make sure they can hit their revenue goals and all those things that important that every business deals with. But we also have that same mindset on how we develop our products. So it's really all driven by where the customer is going that they need data mobility. They need application mobility. They need really portability so that the moment that you have that ability where you can kind of control your destiny and define it, and you only could get that by having, you know, applications that are portable and data that is mobile and secure, that you have that kind of flexibility. So I think for pure we've been definitely in a great position to drive for our customers or drive where our customers are going. And so we have to find our entire product set. So not just how we operate as a business and run our business. But then how we define for our customers Same mindset is if our customers are going to the cloud that we need, have products that can help them to be in the cloud or be, you know, on print and let them decide what that looks like. Well, >>it's interesting you mentioned that and I hearken back to the The Port Works acquisition, which is an attempt to really change the way application development has done is another sort of approach Thio in a sort of modern data architecture, you, as the CEO of a technology company, most CEO, is that I know inside the tech companies that they're sort of the dog Fuding or champagne drinking, you know, testing. So So had you already started to sort of use that tech? Are you starting to, you know, Does it support that vision that you just put forth? Maybe you could talk a little bit about that. >>Yeah, It does. So we eso We had not been using port works as a za product. We were just starting down that path of looking at How do we do container ization for the applications that we do have on Prem? That's both in our engineering side as well as within I t. And so But we quickly have recognized, just like you know, And part of that acquisition is applications or companies won't have the ability to have that portability of their applications and have that flexibility that they're all striving for unless they've done things like containerized or applications made them that they're able to move them across different cloud environments, whether that's on Prem or off Prem or some hybrid eso for ourselves. You know, Port Works was a really critical acquisition, will help us on our own journey of doing the application, modernization and putting that keep those capabilities in place. But it will also enable our customers to have that same flexibility. So, again, going back to the we've adopt, these things aren't like a this is for this group, and this is for you know, this customer. It's really about how we operate both internally and then what we are providing for our customers so that portability and being able to have control of your own destiny, that's that's really to me what hybrid cloud is all about. And you can't really achieve that If you don't have some of these capabilities within your, you know, within kind of your toolbox. >>Great. Thank you for that. So I'm interested in is the head of, ah technology group at a tech company? And what are the meaningful differences? I mean, a lot of differences, but relative to CEO of a large telco or or other incumbent, you know, what are some of the good, the bad? And, uh, you know, the ugly, the differences. >>Yeah, you know, it's I meet with a lot of CEOs across Silicon Valley and we kind of joked that when you are working in a company that is a technology based company, you know, everybody knows how to dio, you know, because you do you have a brilliant engineers and and that they do know. I think the difference that you start to see is that you know, I t is, um is required to make sure that availability is their inherent in what you're doing on immediate roll out with like, you know, an application that's occurring. That's very different than how you do product lifecycle management. Um, what what we've what I've seen, actually, though, is more similarities. I know that's probably surprised to you, but coming out of a T and T, what I have been working on those last couple of years was actually doing the combination of engineering and I t into one organization and that you do have a lot of benefits for, for how you can then develop, how you can manage and the skill sets. There's a lot of similarities. So there's there's actually probably more similarities between companies and on what they're trying to achieve than than you would probably think there would be just because we're all trying to make sure that we can develop quickly. How about is >>it relates to cloud Cathy? I mean, I remember the early days of cloud, a lot of the big banks that we could build our own cloud. We can essentially compete at scale with with Amazon, where you know the big bank on. Then I think they quickly realized well, the economics actually don't favor us necessarily. Do you think there's a different perception about the use of cloud between sort of traditional incumbents and a tech company in Silicon Valley? And if so, how? >>So now I think that the if you are, you know, a bank is you refer to, and having it really is where you're starting from. If you have a very large infrastructure footprint and application footprint, your applications probably not born in the cloud. There's a lot of modernization that has to be done with those applications so that they could operate as efficiently in a public cloud as an example. And I think that's something that sometimes gets overlooked is there are enormous benefits going to public cloud. But there's also cost if your applications or your data doesn't really fit as well in that type of environment. So I think that for large enterprises like the banks, some of the telcos they've got very large footprints of infrastructure. Already, those investments have been made, and what they're really looking for is how doe I increase my ability to, you know, whether it's agility or its speed, or it's lower cost or it's all those things, and I think that's the That's a different path of different journey that they're on. So they're trying to balance all those equations of, you know, the economics as well as the ability to have, you know, no more investment or minimal investment in that infrastructure. For companies like Pure, where we started off of those investments are decision and kind of. The decision tree that we use is if it makes sense. And I don't have to make that investment on Prem for whatever reason, that I should go ahead and make that investment in a public cloud strategy or a hybrid cloud strategy kind. Differentiate that because I think that it's different depending on the company. You are, um, and so it really kind of depends on where you're starting from then. It also depends on what you're trying to achieve if you're just trying to achieve an economic solution. If you're trying to achieve a strategic solution, if you're trying to get agility. Andi, I think it is different for companies, and it's different depending where you're at in your kind of journey. So for a Silicon Valley company whose you know hyper growth, you know, one. We're very focused on abilities. You know everything from scale, because we've got to scale quickly. And those are things that we don't wanna have to start going and building all these data centers to go do that. We don't have those embedded investments. So it's Ah, it's a real difference in where your starting point is. And I think there I think there's value in in all those different type of approaches, >>right? And it's a real advantage for you that you don't have to shell out all that cap ex on Data Center. >>That's right. Um, as you look >>back at the last 10 years of cloud, you know, it was largely about eliminating the heavy lift of infrastructure deployment and SAS if I ng you know the business, what do you see? Going forward? What do you think the was gonna unfold in the 2020 is? Is it gonna be more of the same? Or do you expect meaningful differences? >>I think that we're going to get better as, um as you know, technology leaders on how to quickly make decisions. Um, and not its have it less political. And I think Kobe is actually taught us a lot about that around companies more willing to make. I'll call it a A you know, a faster decision and remove some of the red tape. I've heard this from many of my peers that things that might have taken them months and months to get approved. Um, it's nowadays if even if they even have to go get approval. So I think that what we're going to see is we'll see the continuance of, um, you know, a public and I'll call really hybrid cloud type of solutions. And I think it will be more purposeful about what goes there and how. How that can help us toe, you know, I'll call it enable us much faster than we've been able to do it before. I think that's been our challenges. We've, you know, we get mired into some of the you know, the details of some of these things that maybe it would be easier for us to just make the decision to move forward than Thio. Keep going around around on what's the right way to do it. Yeah, >>so that's interesting. You're saying about the fast decisions? I felt like, ah, lot of 2020 was very tactical. Okay, go deal with the work from home, etcetera. Although you you definitely see I t spending, uh, suppressed in 2020. Our forecast was minus 4% but we're saying it's gonna grow. We actually see a decent snapback. You know, what are you seeing? Generally, Not even necessarily pure. But when you talk to some of your colleagues, you obviously in the technology business, it's good to be in the technology business these days. But to use do you see spending, you know, generally coming back And maybe the timing first half, maybe a little soft second. What are you seeing >>there? Yeah, almost identical wage that. I think that we'll see, you know, a little bit of, ah tendency toe, not really hold back, but really kind of see what's happening in the first quarter of the year. There's a lot, you know, going on with companies and everyone's having to kind of balance at what that looks like. I do see. And what I'm hearing from several of my peers is that, you know, it's not necessarily budget cuts. It might be budget re directions. It might be rude prioritization, but definitely technology investments are still there, and it's still important for businesses to keep on their journeys on. But we do see that even at pure as a way to differentiate ourselves in the market as well, do you? What >>about the work from home piece? I mean, prior to co vid, I think the average was about 15 or 16% of employees work from home. You know, now it's gotta be, you know, well, over in the high seventies, Onda CEO is that we've talked to suggest that, you know, that's gonna come down in the first half, maybe down toe, still pretty high 50 60%. But then eventually is gonna settle at a higher rate than it was pre pre covert. Maybe double that rate may be in the 30 35 maybe even 40%. You know? What are you expecting >>Something probably very similar. I think that what companies have recognized and I actually tell you CEO have thought this many of them for many years that there is a huge value value and having some type of hybrid model. There's value in having, you know, both from a business perspective as well as a personal perspective. So employees work life balance and trying to balance that. So I think that, you know, we a pure and myself, As you know the CEO hugely expect that we will see some type of you know, I'll call leveling off, figure out what's the right for the right group. And I think what we don't want to get into is, you know, Chris prescriptive that says, You know, this is what the company will look like as a whole. I think it really is going to come down to certain certain types of work are more conducive to a more work, remote environment others need to have. And I always kind of uses term of individual, you know, productivity versus team. You know, productivity. We've seen, you know, great advances and or individual productivity. A team productivity is still a challenge when you're still trying to do very collaborative, you know, brainstorming sessions. And so we are looking at capabilities to be able to enable our employees to do that. But there there's some things you just can't replace. The human interaction and ability to very quickly inter actively, you know, five minutes catch someone to do that. So I think we'll see. We'll see both. We'll see some leveling off, and I think we'll see some areas of businesses that have once thought You can't do that remote. They might actually say, Hey, that is work that commute remote So I think we'll see a combination of both. That's an >>interesting perspective on productivity. And what's the What's the old saying is You could go go faster alone. But further as a team and and not a lot of folks have been talking about that team productivity, we we clearly saw the hit the positive hit on productivity, especially in the in the technology business. So So my question then is so you expect? You know H Q doesn't go away. Maybe it gets, you know, maybe it gets smaller, Uh, but so is their pent up demand for technology spending at the headquarters. Because you've been you've been, you know, pushing tech out out to the edge out to the remote workers. Securing those remote workers figuring out better ways to collaborate is their pent up demand at H. Q. >>Um, absolutely. We've been, you know, we've been actually exploring different technologies. We've been uh, looking at what are things that you know could help create a different kind of experience, eh? So I do think it will be some different types of technology. Those would be the things that maybe aren't even out there developed yet on Have you create some of those comparable experiences. So I think that the notion of you know individuals will continue to thrive, but we've got to start working on How do we continue to enhance that? That team, um, collaborative productivity environment that looks and feels different than what it might look like today. Yeah. >>They got to leave it there. Great as always. Having you in the Cube. Thanks so much for participating in Cuban Cloud. >>Great. It's great to be here. Thank you. >>Keep it right there. Back more content right after this short break. >>Yeah.

(upbeat music) >> Announcer: It's theCUBE covering the virtual Vertica Big Data Conference 2020 brought to you by Vertica. >> Welcome back to the Vertica Virtual Big Data Conference, BDC 2020. You know, it was supposed to be a physical event in Boston at the Encore. Vertica pivoted to a digital event, and we're pleased that The Cube could participate because we've participated in every BDC since the inception. Rich Gaston this year is the global solutions architect for security risk and governance at Micro Focus. Rich, thanks for coming on, good to see you. >> Hey, thank you very much for having me. >> So you got a chewy title, man. You got a lot of stuff, a lot of hairy things in there. But maybe you can talk about your role as an architect in those spaces. >> Sure, absolutely. We handle a lot of different requests from the global 2000 type of organization that will try to move various business processes, various application systems, databases, into new realms. Whether they're looking at opening up new business opportunities, whether they're looking at sharing data with partners securely, they might be migrating it to cloud applications, and doing migration into a Hybrid IT architecture. So we will take those large organizations and their existing installed base of technical platforms and data, users, and try to chart a course to the future, using Micro Focus technologies, but also partnering with other third parties out there in the ecosystem. So we have large, solid relationships with the big cloud vendors, with also a lot of the big database spenders. Vertica's our in-house solution for big data and analytics, and we are one of the first integrated data security solutions with Vertica. We've had great success out in the customer base with Vertica as organizations have tried to add another layer of security around their data. So what we will try to emphasize is an enterprise wide data security approach, where you're taking a look at data as it flows throughout the enterprise from its inception, where it's created, where it's ingested, all the way through the utilization of that data. And then to the other uses where we might be doing shared analytics with third parties. How do we do that in a secure way that maintains regulatory compliance, and that also keeps our company safe against data breach. >> A lot has changed since the early days of big data, certainly since the inception of Vertica. You know, it used to be big data, everyone was rushing to figure it out. You had a lot of skunkworks going on, and it was just like, figure out data. And then as organizations began to figure it out, they realized, wow, who's governing this stuff? A lot of shadow IT was going on, and then the CIO was called to sort of reign that back in. As well, you know, with all kinds of whatever, fake news, the hacking of elections, and so forth, the sense of heightened security has gone up dramatically. So I wonder if you can talk about the changes that have occurred in the last several years, and how you guys are responding. >> You know, it's a great question, and it's been an amazing journey because I was walking down the street here in my hometown of San Francisco at Christmastime years ago and I got a call from my bank, and they said, we want to inform you your card has been breached by Target, a hack at Target Corporation and they got your card, and they also got your pin. And so you're going to need to get a new card, we're going to cancel this. Do you need some cash? I said, yeah, it's Christmastime so I need to do some shopping. And so they worked with me to make sure that I could get that cash, and then get the new card and the new pin. And being a professional in the inside of the industry, I really questioned, how did they get the pin? Tell me more about this. And they said, well, we don't know the details, but you know, I'm sure you'll find out. And in fact, we did find out a lot about that breach and what it did to Target. The impact that $250 million immediate impact, CIO gone, CEO gone. This was a big one in the industry, and it really woke a lot of people up to the different types of threats on the data that we're facing with our largest organizations. Not just financial data; medical data, personal data of all kinds. Flash forward to the Cambridge Analytica scandal that occurred where Facebook is handing off data, they're making a partnership agreement --think they can trust, and then that is misused. And who's going to end up paying the cost of that? Well, it's going to be Facebook at a tune of about five billion on that, plus some other finds that'll come along, and other costs that they're facing. So what we've seen over the course of the past several years has been an evolution from data breach making the headlines, and how do my customers come to us and say, help us neutralize the threat of this breach. Help us mitigate this risk, and manage this risk. What do we need to be doing, what are the best practices in the industry? Clearly what we're doing on the perimeter security, the application security and the platform security is not enough. We continue to have breaches, and we are the experts at that answer. The follow on fascinating piece has been the regulators jumping in now. First in Europe, but now we see California enacting a law just this year. They came into a place that is very stringent, and has a lot of deep protections that are really far-reaching around personal data of consumers. Look at jurisdictions like Australia, where fiduciary responsibility now goes to the Board of Directors. That's getting attention. For a regulated entity in Australia, if you're on the Board of Directors, you better have a plan for data security. And if there is a breach, you need to follow protocols, or you personally will be liable. And that is a sea change that we're seeing out in the industry. So we're getting a lot of attention on both, how do we neutralize the risk of breach, but also how can we use software tools to maintain and support our regulatory compliance efforts as we work with, say, the largest money center bank out of New York. I've watched their audit year after year, and it's gotten more and more stringent, more and more specific, tell me more about this aspect of data security, tell me more about encryption, tell me more about money management. The auditors are getting better. And we're supporting our customers in that journey to provide better security for the data, to provide a better operational environment for them to be able to roll new services out with confidence that they're not going to get breached. With that confidence, they're not going to have a regulatory compliance fine or a nightmare in the press. And these are the major drivers that help us with Vertica sell together into large organizations to say, let's add some defense in depth to your data. And that's really a key concept in the security field, this concept of defense in depth. We apply that to the data itself by changing the actual data element of Rich Gaston, I will change that name into Ciphertext, and that then yields a whole bunch of benefits throughout the organization as we deal with the lifecycle of that data. >> Okay, so a couple things I want to mention there. So first of all, totally board level topic, every board of directors should really have cyber and security as part of its agenda, and it does for the reasons that you mentioned. The other is, GDPR got it all started. I guess it was May 2018 that the penalties went into effect, and that just created a whole Domino effect. You mentioned California enacting its own laws, which, you know, in some cases are even more stringent. And you're seeing this all over the world. So I think one of the questions I have is, how do you approach all this variability? It seems to me, you can't just take a narrow approach. You have to have an end to end perspective on governance and risk and security, and the like. So are you able to do that? And if so, how so? >> Absolutely, I think one of the key areas in big data in particular, has been the concern that we have a schema, we have database tables, we have CALMS, and we have data, but we're not exactly sure what's in there. We have application developers that have been given sandbox space in our clusters, and what are they putting in there? So can we discover that data? We have those tools within Micro Focus to discover sensitive data within in your data stores, but we can also protect that data, and then we'll track it. And what we really find is that when you protect, let's say, five billion rows of a customer database, we can now know what is being done with that data on a very fine grain and granular basis, to say that this business process has a justified need to see the data in the clear, we're going to give them that authorization, they can decrypt the data. Secure data, my product, knows about that and tracks that, and can report on that and say at this date and time, Rich Gaston did the following thing to be able to pull data in the clear. And that could be then used to support the regulatory compliance responses and then audit to say, who really has access to this, and what really is that data? Then in GDPR, we're getting down into much more fine grained decisions around who can get access to the data, and who cannot. And organizations are scrambling. One of the funny conversations that I had a couple years ago as GDPR came into place was, it seemed a couple of customers were taking these sort of brute force approach of, we're going to move our analytics and all of our data to Europe, to European data centers because we believe that if we do this in the U.S., we're going to violate their law. But if we do it all in Europe, we'll be okay. And that simply was a short-term way of thinking about it. You really can't be moving your data around the globe to try to satisfy a particular jurisdiction. You have to apply the controls and the policies and put the software layers in place to make sure that anywhere that someone wants to get that data, that we have the ability to look at that transaction and say it is or is not authorized, and that we have a rock solid way of approaching that for audit and for compliance and risk management. And once you do that, then you really open up the organization to go back and use those tools the way they were meant to be used. We can use Vertica for AI, we can use Vertica for machine learning, and for all kinds of really cool use cases that are being done with IOT, with other kinds of cases that we're seeing that require data being managed at scale, but with security. And that's the challenge, I think, in the current era, is how do we do this in an elegant way? How do we do it in a way that's future proof when CCPA comes in? How can I lay this on as another layer of audit responsibility and control around my data so that I can satisfy those regulators as well as the folks over in Europe and Singapore and China and Turkey and Australia. It goes on and on. Each jurisdiction out there is now requiring audit. And like I mentioned, the audits are getting tougher. And if you read the news, the GDPR example I think is classic. They told us in 2016, it's coming. They told us in 2018, it's here. They're telling us in 2020, we're serious about this, and here's the finds, and you better be aware that we're coming to audit you. And when we audit you, we're going to be asking some tough questions. If you can't answer those in a timely manner, then you're going to be facing some serious consequences, and I think that's what's getting attention. >> Yeah, so the whole big data thing started with Hadoop, and Hadoop is open, it's distributed, and it just created a real governance challenge. I want to talk about your solutions in this space. Can you tell us more about Micro Focus voltage? I want to understand what it is, and then get into sort of how it works, and then I really want to understand how it's applied to Vertica. >> Yeah, absolutely, that's a great question. First of all, we were the originators of format preserving encryption, we developed some of the core basic research out of Stanford University that then became the company of Voltage; that build-a-brand name that we apply even though we're part of Micro Focus. So the lineage still goes back to Dr. Benet down at Stanford, one of my buddies there, and he's still at it doing amazing work in cryptography and keeping moving the industry forward, and the science forward of cryptography. It's a very deep science, and we all want to have it peer-reviewed, we all want to be attacked, we all want it to be proved secure, that we're not selling something to a major money center bank that is potentially risky because it's obscure and we're private. So we have an open standard. For six years, we worked with the Department of Commerce to get our standard approved by NIST; The National Institute of Science and Technology. They initially said, well, AES256 is going to be fine. And we said, well, it's fine for certain use cases, but for your database, you don't want to change your schema, you don't want to have this increase in storage costs. What we want is format preserving encryption. And what that does is turns my name, Rich, into a four-letter ciphertext. It can be reversed. The mathematics of that are fascinating, and really deep and amazing. But we really make that very simple for the end customer because we produce APIs. So these application programming interfaces can be accessed by applications in C or Java, C sharp, other languages. But they can also be accessed in Microservice Manor via rest and web service APIs. And that's the core of our technical platform. We have an appliance-based approach, so we take a secure data appliance, we'll put it on Prim, we'll make 50 of them if you're a big company like Verizon and you need to have these co-located around the globe, no problem; we can scale to the largest enterprise needs. But our typical customer will install several appliances and get going with a couple of environments like QA and Prod to be able to start getting encryption going inside their organization. Once the appliances are set up and installed, it takes just a couple of days of work for a typical technical staff to get done. Then you're up and running to be able to plug in the clients. Now what are the clients? Vertica's a huge one. Vertica's one of our most powerful client endpoints because you're able to now take that API, put it inside Vertica, it's all open on the internet. We can go and look at Vertica.com/secure data. You get all of our documentation on it. You understand how to use it very quickly. The APIs are super simple; they require three parameter inputs. It's a really basic approach to being able to protect and access data. And then it gets very deep from there because you have data like credit card numbers. Very different from a street address and we want to take a different approach to that. We have data like birthdate, and we want to be able to do analytics on dates. We have deep approaches on managing analytics on protected data like Date without having to put it in the clear. So we've maintained a lead in the industry in terms of being an innovator of the FF1 standard, what we call FF1 is format preserving encryption. We license that to others in the industry, per our NIST agreement. So we're the owner, we're the operator of it, and others use our technology. And we're the original founders of that, and so we continue to sort of lead the industry by adding additional capabilities on top of FF1 that really differentiate us from our competitors. Then you look at our API presence. We can definitely run as a dup, but we also run in open systems. We run on main frame, we run on mobile. So anywhere in the enterprise or one in the cloud, anywhere you want to be able to put secure data, and be able to access the protect data, we're going to be there and be able to support you there. >> Okay so, let's say I've talked to a lot of customers this week, and let's say I'm running in Eon mode. And I got some workload running in AWS, I've got some on Prim. I'm going to take an appliance or multiple appliances, I'm going to put it on Prim, but that will also secure my cloud workloads as part of a sort of shared responsibility model, for example? Or how does that work? >> No, that's absolutely correct. We're really flexible that we can run on Prim or in the cloud as far as our crypto engine, the key management is really hard stuff. Cryptography is really hard stuff, and we take care of all that, so we've all baked that in, and we can run that for you as a service either in the cloud or on Prim on your small Vms. So really the lightweight footprint for me running my infrastructure. When I look at the organization like you just described, it's a classic example of where we fit because we will be able to protect that data. Let's say you're ingesting it from a third party, or from an operational system, you have a website that collects customer data. Someone has now registered as a new customer, and they're going to do E-commerce with you. We'll take that data, and we'll protect it right at the point of capture. And we can now flow that through the organization and decrypt it at will on any platform that you have that you need us to be able to operate on. So let's say you wanted to pick that customer data from the operational transaction system, let's throw it into Eon, let's throw it into the cloud, let's do analytics there on that data, and we may need some decryption. We can place secure data wherever you want to be able to service that use case. In most cases, what you're doing is a simple, tiny little atomic efetch across a protected tunnel, your typical TLS pipe tunnel. And once that key is then cashed within our client, we maintain all that technology for you. You don't have to know about key management or dashing. We're good at that; that's our job. And then you'll be able to make those API calls to access or protect the data, and apply the authorization authentication controls that you need to be able to service your security requirements. So you might have third parties having access to your Vertica clusters. That is a special need, and we can have that ability to say employees can get X, and the third party can get Y, and that's a really interesting use case we're seeing for shared analytics in the internet now. >> Yeah for sure, so you can set the policy how we want. You know, I have to ask you, in a perfect world, I would encrypt everything. But part of the reason why people don't is because of performance concerns. Can you talk about, and you touched upon it I think recently with your sort of atomic access, but can you talk about, and I know it's Vertica, it's Ferrari, etc, but anything that slows it down, I'm going to be a concern. Are customers concerned about that? What are the performance implications of running encryption on Vertica? >> Great question there as well, and what we see is that we want to be able to apply scale where it's needed. And so if you look at ingest platforms that we find, Vertica is commonly connected up to something like Kafka. Maybe streamsets, maybe NiFi, there are a variety of different technologies that can route that data, pipe that data into Vertica at scale. Secured data is architected to go along with that architecture at the node or at the executor or at the lowest level operator level. And what I mean by that is that we don't have a bottleneck that everything has to go through one process or one box or one channel to be able to operate. We don't put an interceptor in between your data and coming and going. That's not our approach because those approaches are fragile and they're slow. So we typically want to focus on integrating our APIs natively within those pipeline processes that come into Vertica within the Vertica ingestion process itself, you can simply apply our protection when you do the copy command in Vertica. So really basic simple use case that everybody is typically familiar with in Vertica land; be able to copy the data and put it into Vertica, and you simply say protect as part of the data. So my first name is coming in as part of this ingestion. I'll simply put the protect keyword in the Syntax right in SQL; it's nothing other than just an extension SQL. Very very simple, the developer, easy to read, easy to write. And then you're going to provide the parameters that you need to say, oh the name is protected with this kind of a format. To differentiate it between a credit card number and an alphanumeric stream, for example. So once you do that, you then have the ability to decrypt. Now, on decrypt, let's look at a couple different use cases. First within Vertica, we might be doing select statements within Vertica, we might be doing all kinds of jobs within Vertica that just operate at the SQL layer. Again, just insert the word "access" into the Vertica select string and provide us with the data that you want to access, that's our word for decryption, that's our lingo. And we will then, at the Vertica level, harness the power of its CPU, its RAM, its horsepower at the node to be able to operate on that operator, the decryption request, if you will. So that gives us the speed and the ability to scale out. So if you start with two nodes of Vertica, we're going to operate at X number of hundreds of thousands of transactions a second, depending on what you're doing. Long strings are a little bit more intensive in terms of performance, but short strings like social security number are our sweet spot. So we operate very very high speed on that, and you won't notice the overhead with Vertica, perse, at the node level. When you scale Vertica up and you have 50 nodes, and you have large clusters of Vertica resources, then we scale with you. And we're not a bottleneck and at any particular point. Everybody's operating independently, but they're all copies of each other, all doing the same operation. Fetch a key, do the work, go to sleep. >> Yeah, you know, I think this is, a lot of the customers have said to us this week that one of the reasons why they like Vertica is it's very mature, it's been around, it's got a lot of functionality, and of course, you know, look, security, I understand is it's kind of table sticks, but it's also can be a differentiator. You know, big enterprises that you sell to, they're asking for security assessments, SOC 2 reports, penetration testing, and I think I'm hearing, with the partnership here, you're sort of passing those with flying colors. Are you able to make security a differentiator, or is it just sort of everybody's kind of got to have good security? What are your thoughts on that? >> Well, there's good security, and then there's great security. And what I found with one of my money center bank customers here in San Francisco was based here, was the concern around the insider access, when they had a large data store. And the concern that a DBA, a database administrator who has privilege to everything, could potentially exfil data out of the organization, and in one fell swoop, create havoc for them because of the amount of data that was present in that data store, and the sensitivity of that data in the data store. So when you put voltage encryption on top of Vertica, what you're doing now is that you're putting a layer in place that would prevent that kind of a breach. So you're looking at insider threats, you're looking at external threats, you're looking at also being able to pass your audit with flying colors. The audits are getting tougher. And when they say, tell me about your encryption, tell me about your authentication scheme, show me the access control list that says that this person can or cannot get access to something. They're asking tougher questions. That's where secure data can come in and give you that quick answer of it's encrypted at rest. It's encrypted and protected while it's in use, and we can show you exactly who's had access to that data because it's tracked via a different layer, a different appliance. And I would even draw the analogy, many of our customers use a device called a hardware security module, an HSM. Now, these are fairly expensive devices that are invented for military applications and adopted by banks. And now they're really spreading out, and people say, do I need an HSM? Well, with secure data, we certainly protect your crypto very very well. We have very very solid engineering. I'll stand on that any day of the week, but your auditor is going to want to ask a checkbox question. Do you have HSM? Yes or no. Because the auditor understands, it's another layer of protection. And it provides me another tamper evident layer of protection around your key management and your crypto. And we, as professionals in the industry, nod and say, that is worth it. That's an expensive option that you're going to add on, but your auditor's going to want it. If you're in financial services, you're dealing with PCI data, you're going to enjoy the checkbox that says, yes, I have HSMs and not get into some arcane conversation around, well no, but it's good enough. That's kind of the argument then conversation we get into when folks want to say, Vertica has great security, Vertica's fantastic on security. Why would I want secure data as well? It's another layer of protection, and it's defense in depth for you data. When you believe in that, when you take security really seriously, and you're really paranoid, like a person like myself, then you're going to invest in those kinds of solutions that get you best in-class results. >> So I'm hearing a data-centric approach to security. Security experts will tell you, you got to layer it. I often say, we live in a new world. The green used to just build a moat around the queen, but the queen, she's leaving her castle in this world of distributed data. Rich, incredibly knowlegable guest, and really appreciate you being on the front lines and sharing with us your knowledge about this important topic. So thanks for coming on theCUBE. >> Hey, thank you very much. >> You're welcome, and thanks for watching everybody. This is Dave Vellante for theCUBE, we're covering wall-to-wall coverage of the Virtual Vertica BDC, Big Data Conference. Remotely, digitally, thanks for watching. Keep it right there. We'll be right back right after this short break. 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>> Narrator: Live from Washington, D.C. It's the CUBE. Covering Boomi World 19. Brought to you by Boomi. >> Welcome to the CUBE, about the leader in live tech coverage. I am Lisa Martin with John Furrier. We're at Boomi World 19 in Washington, D.C. Please welcome one of Boomi's award winners to the program from Gilead Sciences we have the Director of IT, Murali Anakavur. Welcome Murali and congratulations on Gilead being the 2019 Change Agent Award winner for North America. >> Thank you so much Lisa. It's good to receive the award. Lot of efforts have been put in place by our folks. I'm very honored and privileged to receive this award. >> Fantastic. So give our audience an overview of Gilead Sciences. What you guys do and then we'll start getting into the IT infrastructure and all of the great things that you have done with Boomi. >> Definitely. Gilead has been in the forefront of meeting an aspect of medical needs of patients worldwide. Clearly, it's the company, if you recollect, solve the (mumbles) problem in the world. There were the cured from the cure for it that started the company originally to come up to where they are today. They are in the forefront of science and R and D and technology when putting therapeutics for inflammatory infectious, and recently in big cancer treatments and other treatments. So the world is opening up big time. Our focus is to resolve and make medical needs. The company is so focused and they want to provide the cure for all these and it's so passionately too. So all kinds of R and D going on. I'm so honored to be working for a company which is doing this great need for humanity, frankly. >> Absolutely. So the cure for Hepatitis C, that's huge. Whenever we talk about technology where it impacts every single person on this planet, infectious diseases, cancer as you mentioned, it's really... It's pulverizing people understand it. It's--there's a lot of gravity around it. Talk to us about what you needed to implement, from a technology infrastructure perspective, to connect all of these different data sources, so that the next cure for all these different diseases has a foundation from which providers can actually link data. >> Obviously. >> Talk about it. There are some backing sources company, any company needs, let's say ERP system, need some CRM system. Those are good. But our company has the complexity of manufacturing system that needs to make medicines. Company's complexity is the lab systems, R and D systems, product life cycle management systems where things originated in a little molecule for the compound they call it, and it expands into what they say clinical studies on a medicine. So you can imagine the plethora of system that make this happen. So what happens in this environment is now people bring up systems for what they need and ERP does what they need. All of the sudden, "I can't do without customer data." "I can't do without my patient data." "I can't do without my item data." "How do we get the data?" So it becomes--begs the question like, "Oh my gosh, okay we got all these complex systems in place, how are you going to share the data? Who's the master? Where's the source of truth? So all those sort of begging question is that, kind of start up the landscape of integration. So that's where we are. Launched that previous legacy systems for SOA that we have currently. Mostly call it the SD enterprise service. that shares data within the premises. Guess what today? They want, "Hey I've got this Cloud system that I'm accessing. I'm going to buy this sales force commercial systems that could enable me to launch my commerce market better. How do we deal with these guys? How do we reach out to those folks? How do I make my engagement app on the events for doctors? How do I connect with my patients? All these are big question that've been asked. There was a need for system that'll kind of take care of all these diverse platforms in the Cloud on Prim, connect them together, so the data sharing happens. That was the biggest challenge that we have kind of solve right now. And then with Boomi coming on to our platform since a couple of years from in the past, we have matured into a place where we're going to launch a lot of things on Boomi and we are looking forward to it eagerly to consolidate all those legacy innovation platforms into the Boomi world infrastructure. So i's exciting. >> Talk about the IT landscape in your company. What's going on there? How is the structure? What are some of the environment look like? Is it transforming the roles of the people? Stacking and wrecking, is it Cloud, Hybrid, what? Talk about your environment. >> Fantastic. I think the very question getting into our pillars or what we do in IT, right? Our pillars are very simple. First thing is core services, you've got to make it--keep the lights on you've got to sure things are working fine. The next thing we adhere to is people. Who do we need to make all this happen? ITs people, acknowledged management, retain people, the best talent, get the best talent. The third pillar we have is the enabling of technology. And that's where some of us come in to enables. How do we migrate Cloud? Let's say we have a big data platform on an infrastructure, adopt infrastructure, tear down infrastructure on-prem. And you what, it's a plan's base. So the data growth, it's enormous these days. So we are talking about Cloud. We are already have plans, we already have infrastructure in Cloud that we are moving to. So if you look at it, the company's so focused not only on technology which is required to, in this day and age, to talking about data, talking about expansion, elasticity and a computing power you need, yeah, here we are with opting we'll be multicloud recipient and beneficiary, but at the same time we're also focusing on people and the core services we provide as IT. IT is technical, non-technical-- >> So you have multiple Clouds right now? >> Exactly. >> Amazon, Azure. >> Yup, we will have a multi Cloud eventually. Not that everything is online and in perfection, but our plan is to have a multi Cloud strategy going forward because the amount of things that coming to our landscape. >> You're on classic hybrid right now, you've got it all on premises. >> Yes. >> Some Cloud going on. >> Absolutely, absolutely. >> So let's talk about business transformation, digital transformation. You did a great job of articulating the business challenge, the challenges that you needed to solve. From an IT perspective, you have all the hybrid multi Cloud environment. Where did the digital transformation initiative come from? Was it the business saying, "We have so much data and desperate systems. We want to be solving more real world problems. Hi, IT, help us build the foundation that allows that." >> It's fantastic. If you look at our company, our sheer full task is digital transformation. Not just IT or COO. CEO talks about our digital transformation. So everybody, in fact, it was questioned. "Hey, we want to be digital." What does it mean to be digital? Because thing comes up. So in the landscape of ITVR, we are going to be a digital-enabled company. We're going to define what it means. To me personally, digital-enabled means, "Hey, I need to share a piece of data across the landscape, whoever needs it, whenever they need it or where they need it." That's called the digital transformation if you ask me because that enables other systems to consume it, and then provide the care and attention it needs. Be at our customers. Customers are patients. Be at our hospitals that we work with. They're our customers. Employ our customers and turn that, it could be your portal. So we are attacking it from multiple points of view. You want to make sure the technology enablement moving forward in innovation. We care for all these areas of customers where we can really digitally enable them. So focus is not just one point of digitalization, it's customers and patients. How can we give them access? How can we get the feedback? All of them fall into 360 degrees of data enablement. It's so focused and we're so thrilled to have such (mumbles) that can pay a lot of attention to all these things. I think it'll be transforming our company a big time in the next few years with the digitalization that we're looking forward to. Mobile applications. All kinds of things are coming up. >> So why Boomi? Boomi is a Cloud native platform. We saw the video and if you saw that technical keynote this morning that the first videos started up with a few minutes of all the areas in which they were first. But they took this big bet back in 2007 when they were found that they are this single instance multi technic Cloud application. What differentiated Boomi when you guys were looking for the right partner with which is standardized? >> It's interesting because we like the Cloud part. Same time being (mumbles) country and industry, they said, " I can't (mumbles) put it on the Cloud." I mean this was about four years back. Remember, things were not really stable at that time. Or people are wondering, "What? Cloud?" "Where can I put my data?" We chose the Boomi hybrid model which is awesome because it gave us the benefit of both, of material that's in Cloud, I'm taking care of anything that you need to do material, I'm taking care of my processing on site. So that key was that bang say, "Oh wow, that's a fantastic option to have. It's a (mumbles) infrastructure. People can build things faster on Prim, run your case, data cases on Prim, but you have all Cloud metadatas protecting you (mumbles) Everything is easy, (mumbles) SHA. So all those were factors when we decided to go in to Boomi. But we see among others as full. But then the speed of market, less call framework, and also the roadmap they'll have for them. That's very important for us. I mean first thing in technology I want to go for next five years, ten years. Are you welcome with me in the technology? Are you making insights as we talked about today? (laughs) I'm just paraphrasing it. But those all things matter to us. In words, mine is protected. We don't end up with some debt, right? Like they model this platforms to be up to date. So those were our key factors in moving forward with Dell Boomi. >> And so let's talk about some of the business outcomes. You've mentioned a few. But let's look at them kind of categorically. If we look at kind of this over this polarizing industry, being able to study different aspect of man diseases and identify cures for them hopefully, what are some of the business outcomes that you guys are achieving so far with them. You're a Change Agent Award winner, so give us some of those really big wins that you've seen to dates? >> How to be proactive, right? It's a game, it's a data game these days. The more data you have aboard the decision you can make, you're going to differentiate in solving problems, and mean competitive as well. We are trying to see these aspects in the data that we can collect from all places. Now once you have the data, you need some kind of integration that needs to happen to process the data, to share the data to people who need them. That's why integration comes in. Obviously there are other areas where we do big data processing. We need to have some kind of a cluster to compute them and cue some analytics for scientist to see, "Hey, I've got this data. This was inference." And now we can introduce that integration to cue them all the data that they need. What does it take? In my opinion, days and months too can infer through these files and files of data, takes less than 10 minutes for people to now infer. >> Dramatic speed of (mumbles) here. Wow, elaborate on that a little bit. >> And what happens is when you get this huge epidemiology data on the world, you've got thousands and thousands tera bytes of data. Without proper computing and the resources and the modern platform, it's tough for you to count those data to come out with some analytic that people can use. You can ask queries like, "Hey, this disease happens in this area. Tell me the percentage that is relevant to this disease in this area that I need to concentrate on solving the problem." You want to solve big problems and you want to make sure the population benefits from that. So this kind of data gives you inferences that people can research on and say, "Hey, I'm going to focus on this area. It's very predominant." And let's say Africa nation, population is almost about 3 billion, 4 billion people in the world. So let's focus on that disease that gives some traction going on. And that's how you solve the world's problem, one by one, one step at a time. I'm so happy to be involved in that kind of enablement because I'm a very very minuscule part of the whole deal because we work with scientists who are fantastic, who are biologists, who are researchers. Our act in this helps them get to what they need to do. We are completely at their service for what they need and then we just want to enable things for them, make things faster, make the hope comes for them to an R and D, to be more clearer. So that's where we come in. It's more like a service, but industry aspect within the company, but then we are fully fortunate to work for a company that cures diseases and we are part of that journey that they're going through. >> You've just articulated beautifully why you guys won in the Change Agent category. Morally that was outstanding. Congratulations on what you've achieved so far. I'm sure, I'm excited to hear next year where the business goes. We appreciate your time. >> Thanks a lot, Lisa. Nice to talk to you guys today. >> Likewise, thank you. >> For John Furrier, I'm Lisa Martin. You're watching the CUBE from Boomi World 19. (lively music)

>> From New York City, it's theCube covering New Relic Feature Stack 2019. Brought to you by New Relic. >> Stu: Hi, I'm Stu Miniman and this is theCube's first year of coverage at the seventh year of New Relic's Futurestack 2019 here in New York City and happy to welcome back to the program two Cube alumni. So, Todd Osborne is the GVP of Alliances and Channel with New Relic and Dave McCann is the Vice President of Migration Services, Marketplace and Control Services with AWS. Gentlemen, thanks so much for joining us. >> Dave: Great seeing you again, Stu. >> Todd: Thanks for having us. >> Allright, um, Todd, let's start with you uh, you know, quite a bit of a relationship with, between New Relic and AWS. I know we've had Lou on our program at the AWS shows a couple of times. So, set us up with the, the partnership and how it's been evolving. >> Todd: Yeah, it's been a, uh an unbelievable partnership, um, for many, many years we've worked together starting with technology integrations, we've got dozens of them that, that natively monitor a bunch of different AWS services but the most exciting thing of late ah, really came to life middle of last year when we started working with, uh, a bunch of different folks at AWS. Our, basically, our biggest thing that we need help with is migrations. We know we have this massive opportunity, uh, to, for more and more applications more and more workloads to move to the cloud. There's lots of different ways in which customers, partners and Amazon needed help in doing that. They brought us several different challenges related to that and we responded by, ah, at Reinvent Launch last year, launching what we call the Cloud Adoption Solution. That really was how, um, a process that linked up with the Amazon Migration Acceleration Program and used New Relic as the platform to help with migrations from beginning to end. So, starting with the planning, uh, phase of the process, getting the information you need to have a successful migration and design a successful migration, troubleshooting that may, of anything tat may occur during the migration and then post migration, really helping to optimize the performance and cost of how that migration, uh, or that post migration, ah, optimization and run phase. So, it started with that. It's really evolved. What's been really amazing, just since we launced last November December at Reinvent, the whole, we've seen a massive shift already, just the last nine months, where it's not about just simple lift and shift anymore, almost all customers that are migrating now, are also thinking about modernizing their software stack, running on containers, using kubernetes, running micro services, which is New Relic's sweet spot, really, at the application space. So, as we've evolved, starting with migration, evolving into modernization, it's been an amazing partnership working with AWS. >> Stu: So, Dave, migration services, obviously something we hear a lot about from AWS. Every time I go on one of these shows, it's one of the key steps that gets thrown out. Uh, you have a very broad ecosystem, the marketplace, uh, you know is, is the closest I call to the kind of the enterprise app store, uh, of today. Tell us what's, you know, special and, really, you know the effort that goes together between AWS and New Relic here. >> Dave: So, I think, from a migration point of view, um, you know we've spent a lot of time in AWS designing a migration methodology. Our professional services team, let by Tom Weatherby is really delivering a playbook directly to our customers on how to migrate. And, also, we've certified over fifty consultant partners who are certified to do the migration. But all the migrations hinge on a customer knowing what they have and whether they want to migrate it. And, so, to necessarily know what you have, you have to go through application discovery. So, if you've got a larger server fleet, you've got four or five thousand instances, you have a thousand apps, you've actually got to discover and analyze what you have. And, clearly New Relic's tool is widely installed. So they actually have the visibility to a lot of the installed apps. So, last year, at the end of last year, we bought a Canadian company called TSO Logic. And TSO Logic is a business case tool from building the business case on whether to move an application running on PRIM. What would it look like on The Cloud? So, we need to have that data in the tool. And, so, New Relic's been a great partner, integrating New Relic into TSO Logic, so we cal actually take the instrument in visibility that New Relic brings to the table and pop it right into the tool. And, so, the New Relic, TSO tool integration is a great new mechanism that we have. And we just acquired TSO in Q1 of 2019. So that we're now giving the TSO tool to all of our solution architects and all of our consulting partners and New Relic feeds the data right into the TSO tool. So that's a huge, um, uh, mechanism for accelerating migration. >> Okay, uh, can, can you speak to, you know, how, are you, who and what customers and how are you targeting them, uh, for, for this solution? >> So, first of all, customer are moving to AWS. You know, thousand of enterprises are moving applications. I think you have to assume that most enterprises are moving to The Cloud. And the question is, "At what speed?" So, as our sales teams engage with the customer, the sales team have a notion to discuss migration we run migration methodology. And so, as we engage with the teams, the solution architect brings TSO to the tool, to the discussion. And that's happening all around the world. And we've trained our solution architects on TSO. And as we've done that, the second thing we've done is, you know, New Relic engineered engine marketplace over two years ago. But we've launched a new capability called Private Offers. And Private Offers is where the customer, while they're planning the migration, may also need to license more New Relic and New New Relic. And, so, how do we make licensing really easy? And, so, New Relic worked with us on, the, what we call the Private Offers Workflow. And that Private Offer Workflow allows a New Relic sales executive to generate the quote right in the marketplace portal. And you, an AWS customer, and you receive that private quotation right in your AWS account. So not only are we business casing on TSO, but New Relic is quoting through marketplace. So that's happening into lots of large customers. >> Stu: Yeah, uh, you know, what if you talk about the adoption of Cloud we need to make it simpler for customers to move those. And the financial piece has always been one of the promises of Cloud, but things like this Private Offer, it sounds like it helps accelerate, uh, that simplicity, and, and you know, reduces any, you know, perceived barriers there are between some of the software vendors and what you're offering. >> Dave: Well, it flows the New Relic software supply right through marketplace and more and more large companies are using marketplace for software supply. And, so, New Relic's in there. It means that our sales teams are working together So, we talked this morning at the conference with the VP of Cloud architecture who was in the conversation. And so, Chris has been working with the AWS team and with the New Relic team and we're joined at the hip as they expand their use of New Relic. And they announced this morning that they've now moved over thirty percent of all of the Cox application onto the AWS Cloud. And New Relic's been the center of that visibility. >> Stu: All right, so, Todd, a lot of announcements at the show, especially uh, you know, the capital p platform as Lou talked about in the keynote this morning. Well, you know, AWS is one of the largest platforms out there today. Help us understand how these fit together, both platforms as well as just, just the announcements in general as to how they work with AWS. >> Yeah, what every single thing we announced today had some sort of AWS tie to it. So, I mean first of all with New Relic, one, being a platform, it's open, connected, and, um, and, and programmable. And, so, the open part of that means that not only can we just inject data with New Relic agents, now we, we now are an observability platform that will take date from all kinds of sources, so think of what that opens up in working with AWS and AWS's other partners and getting data from a bunch of different sources, to then make the observability even better. We announce a log in solution. We're already connected with AWS, uh, cloud watch logs and, and, uh, working on some other new feature solutions in the log in space. And then from a programmability perspective, um, we can now take what we have, we can write all kinds of applications on top of the New Relic platform. And some of the initial couple of, of the dozen application that have already been opensource, one is a cost optimization play which looks at Amazon data, uh, both utilization performance data, some other sources of data that New Relic has, and then pulls in the Amazon cost data, can actually look at, in the New Relic platform, as a free opensource application, how do I optimize my cost in the AWS environment? And the second one, which we didn't talk about too much this morning but it's out there, but we can take some of VienMore data and some of the on PRIM data that we have visibility to today and help design that landing zone to help migrations do better, So, it's just two really quick examples of how we can take data from all these different sources and program it, write new applications on top of it, create an awesome customer use case and work with Amazon and, uh, help migrations and optimization along the way. >> Stu: All right, Dave, I'm wondering if you have any customer examples that might highlight some of the joint work that's being worked on between New Relic and AWS. >> Dave: Also, You Know, obviously I've just made some Cox We stood on stage this morning with the press where Cox has said that they've now got nine thousand work loads under New Relic visibility. And so that nine thousand work loads is across hundreds of development teams and, I think, Cox is just an illustration of many customers that we have in common. Um, you know, we're, AWS has got thousands of enterprises, so does New Relic. I think you've said you have over one hundred thousand five hundred enterprises using you. So, some large number. So there's a high overlap in many customers at this conference. And as we sat in the room this morning, um, I would say more than half the room held up their hands when I said, "Who in this room is using AWS?" Half of the audience here are AWS customers and New Relic customers. >> Todd: If I could maybe just add on the Cox story a little bit, because I've been very involved with that one. The beauty of the partnership we have there was multiple, on multiple phases. First, Cox has been a customer of ours for a number of years. Both on PRIM and in the cloud as they have accelerated their cloud, we've helped a lot with that. What was great about that partnership was that our field teams got together and, and actually really sat down and, and mapped out the migration, multiple migration scenarios. We had data on a bunch of on PRIM stuff that was valuable to AWS. AWS was the standard on a couple of divisions on cloud that we weren't monitoring all the applications there. So the teams really worked really well together and then at the end of the day, we came together and said, um, there's a bunch of benefits for the customer, for AWS and us, if the, if uh, if a transaction, the last transaction we did there, went though the marketplace, which was a significant transaction that we did with, ah, on the marketplace. So it was just such a win, win, win that tied together the, uh, all the aspects of the strategic nature-natureship, nature of our partnership. >> Stu: All right, so, you know, it's clear you're teams have been working close tother, iterating and adding a lot of the last kind of year, year or two or so. Give us a little bit look forward. What more should we expect of, a, from, from this partnership? >> Dave: So the area I think I would talk about next, that I think all customers are paying attention to, is spam management. So, you migrate your application to the cloud, you establish a could operating modem, um, we license out software through marketplace, you're now running it, at last week we have another product that I run called Service Catalog. And last week what we launched in Service Catalog was a new ability, and Service Catalog is a library of templates, so those templates are launched as Jason Templates using something called cloud formation and we've versioned the templates and what we launched last week was an integration between Service Catalog and another tool our customers have called AWS Budgets. So now what you actually want to do is you want to grant the team access to a resource and on the tag of the template, you actually want to give that resource template a budget. So that is actually under an API, so there's an AWS Budget API, there's a Service Catalog API, Lou's team today announced a whole raft of New Relic tools. But one of the things that they announced was the ability to essentially build these new widgets, using a React widget, and pull data from other sources. So that's the area some of the customers are looking at as far as taking your spam widget and connecting it into both AWS Budgets and Service Catalog. I don't know if you want to give us your thoughts on that. >> Todd: I, I already talked a little bit about it but it's, it's, it's where we can go. Like the future if almost, almost, uh, infinity right now. What we can go do together. We are trying to align to several of the programs Dave mentioned around Service Catalog, Migration Hub, focus on a couple different use cases of what, um, ever migration has a bunch of nuances and every optimization story has a bunch of nuances. But how can we create the right application, which are a starting point, opensource, put, put the repository up on get up and then allow customers and partners to go and fork that, do what they want to match, kind of of standard use case and maybe eighty percent of the way there. But then it needs a little but of tweak, a little bit of customization basesd on whatever that customer's situation is. We've enabled the entire, uh, community of millions apps that are going to migrate to the AWS cloud over the next couple of years. We've enabled that with what we've launched today. So, the, uh, the future is, is infinity and beyond. >> Stu: All right, well, Todd and Dave, thank you so much for the update. We look forward to seeing what gets announced at AWS Reinvent, which, of course, it'll be our seventh year of having theCube there. Big presence, uh, please reach out if you want to talk to us ahead of time. And check out theCube.net, of course, where you can see, uh, where we will be, including, of course, AWS Reinvent, uh, in December, uh, in Las Vegas. So, This is theCube at Future Stack 2019. I'm Stu Miniman. Thanks for watching theCube.

>> from Austin, Texas. It's Theo Cube covering your storage accelerate 2019. Brought to you by pure storage. How >> do you all how to do Dave Great Legal garden with you? Yes, I am Lisa Martin with David Lantana. And can you guess we're in Texas were at pure Accelerate 2019 Day one of our coverage here and the Buzzy Expo Hall. Pleased to welcome one of Pierre's customers to the Q B of Jason Thomas, the CEO of Coal, Scott Hussein or C. S K Legal Jason. Welcome to the program. So talk to us a little bit about si es que legal. You're based out of Florida. You're CEO. Give us a little bit of a picture of the law firm, your I T environment and your role. ISS leader of information >> So cold, Scott is saying, >> has been around >> 20 plus years. I joined about three and 1/2 years ago, Um, and we have now this one. We have 13 officers. We just opened up 13th office. We're the largest law firm in Florida currently, and only in Florida. Interestingly enough, I actually live and work out of Boston, but you know, these days there's no reason why you can't work remote. I go, they're off enoughto needed. >> You can avoid the hurricanes by living in >> a snowstorm over >> hurting any >> day because I've been a >> good pro sports in Boston. Better, better college sports in Florida. >> Yeah, No one cares about college sports. >> Best of both worlds. All right, so we're here Appear. You guys have been appear customer for a while. But give us this This picture of the legal landscape from a data volume perspective, I could imagine tons of documentation. I think you guys have hundreds of attorneys. What were some of the challenges three years ago when you were looking for the ideal long? You know, storage service is that you were really looking to four companies like your help eliminate and allow you to really deliver on the business needs. >> So we're heavy, heavy volume, business tons and tons of documents. Um, And when I came on board 39 years ago, the ever start of iron was basically a lot of physical servers, a lot of local storage which, quite frankly, scared me. I came from my previous company. I was that I came from a nap shop And that was when my first initiatives was bringing in a sand into the firm and centralizing all the storage on also setting up D r a cz. Well, along with that. So it started evaluation process pretty much within a few months, coming on board the firm. >> So you knew Netapp. Sorry, Dave. You knew Net up your pure customer perspective. Of what? For some of those things that you were looking for that when you found pure was, like, checks all the boxes. >> I can tell you what I wasn't looking for. It was I wasn't looking to hire a storage admin. So I want to find something super simple demand something that I could manage or any of the guys could manage any this this admits, could manage. So that was like starting point of the evaluation. >> So you had a bunch of sounds like discreet Dad asked direct access storage, and he said that concern you, presumably because it was hard to manage to get a handle on. So you wanted to consolidate >> way had if we had our sequel No sequel box go down down for a day, and, uh, do you ever stole from backups in previous night. Not really a good set up at the time >> in our most of your attorneys century, located in one location. Are they distributed there? >> They're spread out all across up and down floors. So we have 13 offices. So between there, they're all over the place. But a lot of work remote down, too. So that's becoming a big thing as well. So the >> reason I asked you to get the pendulum swinging right, you had almost ass, and then you went to a sin. And now this. You got the head you get cloud. I don't know if you're taking advantage of cloud, are you? >> Uh, we are actually we a lot of our software now that we've slowly start to move a lot of our main main line products to the cloud or a cloud edition of this product. So I would say we're probably 50 to 60% cloud now. >> Yes. So you were tied up in the keynotes this morning, but one of the things we heard in the key notice you could have the pure management experience. No matter where your data lives, bring the the pure cloud experience to your date on Prim and the public cloud hybrid. Is that something that's appealing to you? Is that resonate? Yeah. >> Absolutely. Absolutely. It makes it. Look, I can I can actually blogging appear one of my phone if I want to, you know, and check the room. Not that I ever do. Quite. I'll say I never really need to look at >> it. Well, your c i o. Right. I mean, you got other things to worry about. Get my I would like >> to be involved with fingers in it. >> It's interesting. So I mean, you know, a lot of time CEOs, they don't they let, but your tech I love your technical. See a lot of that. A lot of technical CEOs as well, but But also, you don't want to hire a storage admin. Correct. So you want general is to be able to deal this stuff. Okay, so you know your question. Why? Why pure? What would you look at? And >> so we looked at, um, way looked at HP street power. Big name. Um, we looked at fewer and we looked at 10 tree and I pretty much especially with three part I knew that would be management heavy so that when I toss that one out pretty quickly, not that it's not a great product. But it just wasn't for me or what I was >> the right fit. >> You're not right for us. So we came down the pier and 10 tree. I had a had a buddy who worked at another law firm, and he's like and he was like, Look, just don't even waste time just go pure And it's a phrase that I use Sometimes I stole from him, but he he's like, Dude, this is like storage crack. You'll love it. >> Storage crack. Wow, They need a T shirt. That first >> first hit's free. Okay, so that was the right fit for you. It was your peer was appear that that enticed you. That's obviously take a bit. I presume you take a lot of hair advice. >> Lot appeared, but we didn't even do a POC. >> Wow, this is this is a good period that you obviously trust. >> All right, how to >> see was the interface yet you showed me the interface on a phone call one time, and he's like, this is it. I'm like, That's it. >> What did you actually bring in. What are you using? >> I'm sorry, >> What products That you're actually using, What? Or with pure >> Oh, so I'm sorry. Um Exchange sequel. Um, that our main line, our bookkeeping time, time and building. All that that that's that's the meaning of >> all the legal absent all the legal dated the data stores. Which product from pure is that? Do you know a fan? Is it? Uh, it's the all flash array. Yeah. >> I'm sorry. Yes, it's the FBI. >> Yeah. Okay. And so, thinking about before and after hell kind of a as is and the to be how would you compare and contrast two when you brought it in the pre in the post >> your environment. >> Oh, for your business. >> That's Ah, good question. I felt more comfortable sleeping at night. You know why? Just the reliability of the ease of management. You know, if we need to bring up a volume or expanded volume, we could do it very quickly. It doesn't. It doesn't take a rocket science to do it. And from everyone I spoke to I mean, I can't I'm not I can't speak to it, but I can't. I don't I don't believe I've ever talked anybody that's had an outage or whether you raise gone down. In fact, it seems that they tell me before we even know if there's, you know, an issue. Andi. They jump on it right away. So we've never had never had now has never had an issue, never had an issue with an upgrade. It's been fantastic. That supports awesome. >> No need for a rocket scientist or a storage admin, >> and you're sleeping better. This is very, very good thing so far this interview. So in terms of the traditional storage model that you're well familiar with, as you said, you know, being very familiar with netapp it a previous role, the whole every three years. Allies like it. We've got to switch things out, disrupting operations here, comes along with the Evergreen model, and we go, How much of that is marketing and how much of that really actually means? And I know you're a big >> you're in my mind. So yeah, I was like, Oh, so I'm pre paying for support or, you know, But you know what? One side. Once I understood what it really waas and the advantages of of it inmate sentence. We didn't. We didn't I didn't think we would upgrade as much as we have already. We've already gone through to storage up, raising two controller upgrades. So that's really where where it really makes sense is when you're doing storage controller upgrade. So if you want to start our small, which we do is start a little bit small in the beginning. And then then our business grew like crazy and our storage needs expanded. So we went through at least two upgrades for years. >> So you you bring in a rare you paying basically perpetual license up front boom. And then and then you're doing the evergreen model. And then now you're on a subscription in perpetuity, is that correct? Okay, so you you essentially go from cap Ex Op X over the life cycle, and then when you add capacity, you're paying for that capacity, and then >> you just like you return the equipment, you get your money back, and then, uh, you get new equipment >> is truly non disruptive. >> We've been through to upgrades and to control operates with your major upgrades and, um, both of them we did at 5 p.m. Just not that the firm close. If I were anything but, you know, just to feel comfortable. I don't know how you do it at five, and it's okay because you know, if anything goes down from five and if no one's working right, so But here, obviously, we're always attorneys are always on and know they're really smooth. No problems. Every I mean, they got a great strategy and method to the upgrades way stayed up the entire time. >> I mean, it is a big issue for practitioners. We we've done some quantification over the years, and it was like the minimum to migrate. Honore was $50,000. When you add it all in people's time, the cost of the array, the complexity and you're saying first of all, sound reasonable, right kind of number, right? I mean, that's probably gonna make room for the conservative right. Is that essentially been eliminated? I mean, it gives you some planning, I guess are >> pretty much. And as far as the planning goes, you know, these these guys take care of all that. So when we're ready to make the switch, they just log in and do their thing, and then it's done, >> and in terms of training for yourself or your team. When you've done these two upgrades that what's that process been like? >> Log in and figure it out. I mean, >> it sounds pretty simple. >> There's not much to it. Yeah. >> So what's on the C I ose mind these days? Obviously, you don't stay awake at night now thinking about story. >> I stay awake for security, for >> talk about that data >> breach security seems like every every week. Now it it seems I'm on my Twitter feed and this is there's a new breech home. It just it's It's almost got to the point where, you know, it's just another thing that happens. >> So what's your challenge there? Is it managing all these tools? Is it knowing what to respond to it? Is it the skill sets all of the above? My >> biggest thing is, I believe in lots of redundancy. So, um, so one. Starting with the pure we have, we have a second array in another data center outside the state, so we replicate the to raise between each other. That's that's what we started with that side. We also running, you know, regular backups. We run rubric for that. And we also now have just oh, establishing cloud strategy for backups. Immutable. Um, long, long retention. So we also send our backup to the cloud as well. So now I'm feeling like I can sleep. Probably can sleep late now. I just gotta wait for somebody for something to happen, I guess, and makes sure, and hopefully your strategy is pretty solid here. >> Okay, so D r and backup are part of that overall data protection and security strategy that extends obviously into the perimeter device, etcetera, etcetera. So you have a SEC ops team. How do you weigh? >> Don't have a dedicated no. See. So, >> Well, you're the C cell. >> I'm exactly exactly so. Sher Sher bulls with a small group of us that are also the security team. And we've got a pretty I think we've got at this point a pretty solid security sack. Always room for improvement. Always looking at the new stuff. What's out there? I mean, there's all kinds of cool tech out there. Sometimes I get a little overboard with the team, gets a little upset with me because, you know, I just want to see I want to do another POC, and they're like we have three running. >> Okay, Like you guys have a pretty solid foundation running on pure that you stone to me, like, kind of appear customer for life. So they should at least give you a T shirt. Um, Adam, >> give me atleast >> a T shirt. >> I'll tell you one what really sold me within the first year was we had a We had a B m that wouldn't wouldn't boot up and we couldn't figure out what was going on. So we thought initially thought was a V m where issue and so we call support and you can really figure out. They said it was a pure issue. We call so decide to call Pure. One night I was 89 o'clock at night and decide to give it a shot, and the guy got on the phone and come to find. Now there was some issue with the data stores of'em where it was crossed, her data stores and one was deleted. Oh, apparently maybe me had deleted a small data store that had nothing on it, but apparently it was linked to the data store. This b m for some unknown reason known. Behold, bmr issue. But the guy on the line actually knew of resource within pure. That was That was a big bm weren't guy and he came in. He actually logged in and help us unlinked to data stores. So totally not appear issue. But, you know, he went the extra mile to help us recover that GM gotta back up the same night. >> You know, we got to go, But I ask you a question. You work. You have a lot of vendors you've experienced. What, Avengers do that really tick you off? That they should stop doing? How's your chance? >> I don't like the term road map. >> Really? >> Any time I hear road map, it means, you know >> we don't have it. You >> don't have >> yet, >> But we're gonna look into that so don't do business with people that have no road. >> Jason, thank you so much for share your candor with David. Me on the key. We appreciate it. Congratulations on all your success. >> Thank you >> for David. Dante. I'm Lisa Martin. You're watching the Cube at pure accelerate 19. Thanks for watching

>> Presenter: Live from San Francisco, celebrating 10 years of high tech coverage, it's the Cube. Covering vmworld 2019. Brought to you by vmware and its ecosystem partners. >> So good to have you here with us on the first day of three days of live coverage here in San Francisco as The Cube continues its 10th year of coverage at vmworld 2019. Along with John Troyer, I'm John Walls, glad to have you with us. We're joined now by Bina Hallman who is the vice president of storage at IBM. Bina good to have you with us with this afternoon. >> Thanks for having me. >> You bet. You know, your everyday assignment is keeping so many people up at night and that's how do we defend ourselves, cyber. How do we develop these resilient networks, resilient services. Let's take a step back for a second and try to paint the scope of the problem in terms of what you're seeing at IBM in terms of cyber intrusions, the nature of those attacks and the areas where those are happening. >> I'll tell you from a client industry perspective, right touch on that a little bit. But cyber resiliency, cyber security it's a huge topic. This is something that every business is thinking about, is talking about. It's not just a discussion in the different departments, it's at the C Suite level, the board level. Because if you think about it, cyber crimes as frequent as they are and as impactful as they are, they can really affect the overall company's revenue generation. The cost of recovering from them can be very expensive. >> We're talking about more than just breeches here. Every week we hear ransomware is very interesting, it's very prevalent, it's here. I honestly hear a lot of government small town governments, or state governments, municipal governments maybe because they have reporting requirements. I don't know what goes on underneath in the private sector, but does it seem like that is one things? >> That's right that's right. We hear it in the news a lot. We hear about ransomware quite a bit as data breeches, as other types of things. When you look at some of the analyst statistics and what they say about the frequency of these types of events, and the likelihood of a business getting affected, the likelihood of a business getting affected by a cyber event is 1 in 3. It used to be 1 in 4 a couple years ago, now 1 in 3 over the next two years. Ransomware itself is increasing frequency. I think it was like every 14 seconds there is a ransomware attack somewhere in the world. The cost of this is tremendous. It's in the trillions of dollars. Both from recovering from that attack, the loss in business and revenue generation and actually the impact to the company's reputation. Again, not just ransomware, it's happening in many industries. You talked about government, it's in manufacturing, it's in financial, it's in health, it's in transportation. When you step back and say, how is it so broad, when you think about every organization to some extent is going through some level of transformation. There's digital transformation. They're leveraging capabilities like hybrid multi cloud, having resources on prim, workloads on prim some services in the cloud. They've got team members that are using mobile devices. Some companies depending on their business might have IOT. So when you look at all of those entry points, these are new ways that the bad guys can get into an organization. That creates the scale and complexity, just gets very large. It used to be that you have a backup. The traditional way for business resiliency used to be you do a backup, you have the data on an external system, you restore it if something happened. And then there was the business continuity. You would have a secondary infrastructure that in the case of an accident or some kind of a natural disaster, which didn't happen very often, you would have somewhere, a secondary infrastructure. All of those were designed with the likelihood being very low of happening. Then the recovery times and the disruption to business was somewhat tolerable. These days, with all of the dynamics we're talking about, and the potential areas of entry you need more of an end to end solution. That's a cyber resiliency strategy that is really comprehensive and that's what a lot of the businesses are thinking about today. How do I make sure I have a complete solution and a strategy that allows me to survive through and come up very quickly after an attack happens. I think most people recognize that they're going to get impacted at some point. It's not if, but it's when and when it does how do I quickly recover. >> You said it with the statistic, that 1 in 3 every two years. So my math tells me in six years time, I'm going to get hit by that standard. But it tells me that it's not if, it is when. So in terms of the strategies that companies are adopting, what do you recommend? What do you suggest now? You paint a realistically grim picture that there's so many different avenues, different opportunities and it's hard to put your fingers in all those holes. >> There's a lot happening in this space and I think that, you know, there are different standards, a lot of regulations but one that has been accepted and being leveraged in the US is around a framework and some guidance the NIST organization, National Institute of Standards in Technology. It's a framework that they put in place, a guidance on how do you plan for, how do you detect and then recover from these types of situations. I'll talk about it a little bit, but it's a very good approach. It starts with an organization needs to start by identifying what are some of the critical business services that their business is dependent on. What are they, what are the systems, what are the workloads, what are the applications. They identify and then what's the tolerance level. How quickly do you need to come up. What's the RPO, RTF. Based on that, develop and prioritize a plan. That plan has to be holistic. It involves from the CIO to the CSA, security office to the operations to the business continuity, to the data owners, the line of business. And then in this environment, you've got partners, you've got services you're leveraging. All of that has to be encompassing for those key services that you identify and prioritize as a client that you need up and running. And up and running very quickly. One of the examples of a client, financial institution. They determined they had 300 services they needed up and running within 24 hours in case there was an attack or in case something happened to their data or their environment. That they defined as what their requirement was. Then you go about working with them to do a few things. You identify and then there are other phases around that I can talk about that as well. >> I was going to go over to IBM a little bit in that obviously, you're with IBM and we're talking about storage, people may not realize how integral storage is now in security, but IBM brings to the table a lot more than just storage. >> Absolutely. >> So can you talk a little bit about that portfolio and IBM's approach? >> Sure, so when I talk about the NIST framework and I talk about the identify stage, there's also things around protection, protecting the environment and those services and those systems. The infrastructure, we do a lot in that space. It's around detection. So now that you've got the protection, and protection might include things like having identity management, having access control, just making sure that the applications are at the latest code levels. Often times that's when the vulnerability comes in when you don't have those security patches installed. Data protection and when it comes to that segment, we've got a very rich portfolio of data protection capabilities with our Spectrum Protect offerings. From a protection perspective, going into an encryption, having capabilities where the infrastructure is designed to have multiple types. You can have physical separation, so you can have an air gap, things like tape are ideal for that because it's physically separated. Tiering to the cloud. You can have technologies like write once read many where they're immutable, you can't change those. You can read them but you can't change them. We've done a lot of work in innovation around what we call safeguarded copies. This is making snapshots, but those snapshots are not deletable, they're access controlled, they're read-only. That allows you to very quickly bring up an environment. >> I think people don't realize that, I see some patterns of, sometimes these things hide. They'll be in there and they will be innocuous so you can't just restore the last backup. >> That's right. >> They may try to rewrite the backup so you may have to go back and find a good one. >> Absolutely, and detection is very important. Detecting that as early as possible is the best way to reduce the cost of recovering from these kinds of events. But like you said, I think I want to say 160 days, your environment might be exposed for 160 days before you detect it. So having capabilities in a portfolio in our offerings, and we do a lot working with a research team our security team on things like our data protection where we have algorithms built in where we look for patterns and we look for anomalies. As soon as we see the patterns for malware, ransomware, we alert the operator so you don't allow it to be resident for that period of time. You quickly try to identify it. Another example is in our infrastructure management software. You can see your whole heterogeneous storage environment. You typically start out by base lining a normal environment, similar to the backup piece but then it looks for anomalies, and are there certain things happening in the network, the storage that warns the operator. >> I almost get the feeling that sometimes it's almost like termites. You don't realize you have a problem until it's too late because they haven't been visible. In a 160 day window, whatever it might be, you might be passed that but because whatever that attack was, it was malicious and as clandestine enough that you didn't find it and it does cause problems so as we're wrapping up here, what kind of confidence do you want to share with the end users with people to let them know that there are tools that they can deploy. That it's not all grim reaper. But it is difficult. >> It is difficult, it's very real. But it's absolutely something that every business can have under control, have a plan around. From an IBM perspective, we are number one leader in security, we're the leader in security. Our focus is not just at a software level, it's starting from the chips we design to the servers we deliver to the storage, the flash core modules, FIPS 140 compliance, the storage software, the data protection, the storage management software all the way through the stack. All the way through our cloud infrastructure. Having that comprehensive end to end security and we have those capabilities, we also have services. Our services and security organization work with clients to establish these, evaluate the environment, establish these strategies and interim plans. It's really about creating the plan, prioritizing it and implementing it, making sure the whole organization is aware and educated on it. >> You got to prepare no doubt about that. Thanks for the time Bina, we appreciate that. And it's not all doom and gloom but it is tough. Tough work and very necessary work. Back with more here on The Cube. You're watching our coverage from vmworld 2019, Here in San Francisco.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by the M Wear and its ecosystem partners. >> I am Stew Minimum and my co host, Justin Warren. And you're watching The Cube live from VM World 2019 here in Moscow North. Actually, the 10th year that we've had the cubit this event joining me on the program, I have Brad Anderson and Keith Norby, both with Netapp. Brad is an executive vice president, and Keith is director of strategic alliances. Gentlemen, thanks so much for joining us. >> Thank you. So, Brad, I've had >> the pleasure of working with the, um where since 2002 it's one of the highlights of my career in Tech has been watching that growth of virtual ization a company that, you know. It was about 100 people when I first started watching them. And that wave, a virtualization that had ripples throughout the industry, was really impressive. But >> I didn't actually >> get to come to this show until 2010 Asai said. Our 10th year of the show, you were one of the few that were at the inaugural event that it's the 16th year of it. So >> just give us a >> little bit of ah ah, look back in. You know what you've seen changing Netapp, of course. You know, long longtime partner of ah of Via Mers. >> Absolutely. He was like 3 4000 for it was at a hotel in San Diego. And there's probably about 1000 people there, but I don't think they were planning 1000. So is the longest kind of room. And we had people that were just kind of a mile down. And finally, uh uh, the comment was, Hey, could we knock down a wall and kind of get people a little bit closer? So, no, that was a long time ago. And in fact, it was Diane Mendel. I had an opportunity of Aquino, and I think there was another key note from IBM. >> Yeah, well, you know, I'm sorry they didn't invite you back on stage this morning, but, you know, >> a little big, bigger show today. >> A little bigger. I think we're somewhere the ballpark. 20 thousands. What? This show's been for about the last five years. Conversations very different today. As I made commentary were in the post VM era. Today, V EMS are no longer the center of the conversation. And you know, multi cloud is something that they put out there, which is the story I've been hearing from net out for many years software company, living in all of these cloud environment. So talk to us a little bit about how that relationship with VM wear and what we're not upsets in the ecosystem is >> changing. I mean, you know, Veum, where has never happened, then where has been a great partner for a long, long time? And, uh, and net have strategies Clearly hybrid multi cloud. When you think about private clouds today, VM where has a huge footprint in that space, So they continue be super important. We probably have a more expansive definition of hybrid to us. Hybrid is private cloud and public cloud in all kinds of combinations. And but we also so strongly believe the multi cloud and so we are. You know, we're driving very hard for the hybrid multi cloud, letting customers basically start anywhere they want to with any cloud provider on Prem in the cloud, and have that you know that control of data irrespective of and move at their own pace. >> Yes, sir. Vienna, Where has long been one of those places where everybody can meet? So you mentioned knocking down walls. VM. Where is one of the few companies that actually succeeded in doing that and having people be able to work with partners in other eras? There was often a lot of fighting between different vendors, or it's here. It's whatever you as a customer wants to do, we will be there to do that with you. And that's another one of those companies. All right, if you have some data, we will help you manage it, no matter where it is. So what tell it tells about something that what are you doing right now in this Is New World, where a stew mentions it's a post of'em world. So in this post of'em world, how do you manage your data in that post VM world? >> Well, it's it's it's Ah, it's managing first of all, I mean, we really strongly believe place, and so we're gonna manage, you know, you know the data and start where the customer starts. I mean, we're not advocating that they have to start in cloud. They have to be on prim. There's an orderly path because depending on the customer, they're all going to take a very different path. And and so what we want to do is give him control. Their data, irrespective of the path, allow them to move on that path. But we're seeing at Netapp that it's it's the but the data is beyond the data that's increasingly about applications. And so, you know, you heard a little bit about Ah Kubernetes. That's That's something we've strongly feel as well on providing a set of tools to provide choice where, you know, you know, independent the cloud, you know, same kubernetes service, same different tools, same tool set. Same service is on prim or in the cloud. >> Yeah, Ned has a strong cloud. President's summer things like cloud volumes. Some of the other acquisitions that you've made that help you with the cloud journey, like some of them have sufferings, are really strong, >> know very much so. And and we think we can provide Ah ah, the superior customer experience. But then, if the customer wants to use, you know, a variety interesting set of tools we support that as well. We are supporting the customer on his journey with the tools as they ah determined. >> So, Keith, tell us about some of the strategic partnerships that helped net up. To be able to partner with these different customers and to bring different vendors together to help themselves. Customer problems? >> Yeah, well takes a lot of them. Thio, meet the customer needs, as you saw today in the landscape folks that are on the solutions exchange floor. It takes not just a partnership between net up and VM wear, but net up in Vienna, where plus v m net up in Vienna, where plus ah ton of other folks, Cisco has an example longtime partner of ours and flex pot. Then you know the fact that we're doing memory accelerator flex pod takes, you know, something that has had a long tradition of the, um where excellence with Cisco and is now the order of magnitude faster than anything you want for APS that need scale, performance, all the service capabilities of on tap for things like Metro Cluster and beyond. >> So you remember back years ago it was you know, you know who has the most integrations and with the M wear. And you know, if you know all the A I and Viv balls and all of those pieces and netapp always, you know, was right at the top of the list. You know, working in those environments may be brought if you want to enter this. But, you know, today, how do you give us some examples That kind of that joint engineering work that goes on between Netapp and VM, where obviously there's bundle solutions like flex pod, that's, you know, the sphere plus netapp in there. But you know that engineering level, you know, where does rubber with road? >> Yeah, it's funny because I've been at every vehicle except to, And so I've been with you. In the sense I've seen the landscape of these innovations where Steve Haired and some others would talk about the movie previews of things like the aye aye and bossy providers all coming. And that was the big thing you'd focus on. Now it's less about that, and I think it's more about what Brad is kind of brought to net happened in the focus on simplicity. Now the funny part about simplicity is that to deliver simplicity, much like the engineering detail to deliver Tesla or an iPhone is extraordinary, so the work isn't less. In fact, the work is Maur and you pre configuring or pre what you were wearing as much as possible. The work we started to do over a year ago between George Curry in our CEO and Sanjay Poon got together. We started planning on some multi cloud plans, and, uh, that's where you see a lot of our persistence and cloud volumes on VMC. You see us having a view more vow, didn't design Aneta Page C. I for your Private Cloud VD I solutions. And these air meant to draw NSX a kn and when his net I've ever had in NSX immigration all said, Now we have had a sex and integrations to make that easier to bring on board. We have the realized integration so you could build a self serve portal catalog just like it talked about today, and the list goes on and on, so it's funny how it's less. The features are important. But what's more important is trying to make this a simple it's possible for you to consume and then for the folks that need things like scale of maps and service is or they need the same cloud volumes in this data fabric on any one of the hyper scale er's. We have really the only end in story on that, and that's what makes the via More plus net up thing worked really well. >> So how do you balance the flexibility of being able to solve multiple customer problems? And they all have different needs. How do you balance the simplicity with that? With that complexity? And it was mentioned by Pat, make a note as well that you've got this kind of tension between. I need to be able to do everything flexibly, but that can sometimes lead the complexity. So how do you change that? To become simple for customers to use? >> I mean, I think the biggest thing it Z it's a design input. I mean, if if you start out with just trying to make the technology all it can be with a end of you know, one particular cloud or one particular partner, then it becomes very difficult. As he tried to expand it to multiple partners and because it's about choice. We're kind of think about that right up front. And so if it's a design input, it puts, it puts, as he said, to put some burden on the technical team. But it is a much more powerful solution if we if you can pull it off, and that's been a big part, and I think it kind of starts with this mentality that you know, it's about choice, and we gotta make simplicity. And now part of the value proposition, rather than after for thought as it has, may be historically has been. What if >> we could talk a little bit about customers? Because, you know the message I hear this morning is you know, you talk multi cloud, a cloud native. There's a lot of change in the industry, you know, I'm participating in couple of career advice events because remember back 10 years ago, it was Oh, my gosh, if I'm a server admin, I need to learn to be virtualization than it was cloud. You know, architects, but way know that change in the industry is constant. So, you know, what are some of the key drivers when you're talking to customers in general and specifically when you talk about in engaging in part with the M where, >> Yeah, I mean, I I think it starts with people just recognizing. Even if people haven't moved the cloud today, that tends to be their primary strategy. In a recent survey, I think we found 98% of the customers, said Cloud is her strategy. However, 53% said still on Prem is their primary compute centers. So you know they're not there yet. And so But because that's their strategy, then you know we have to respect that. And so So, uh, you know, increasingly you're seeing at Netapp Waleed with clout, even though we know customers aren't quite ready there. But we align to that long term vision. But then our strange made up helping the modernize What they have currently on prim helping build private clouds for the same service is they have him public cloud, and then let them have the complete absolute choice. What public cloud or multiple public clouds they want and designed with with, you know, that full spectrum in mind, knowing they could start anywhere on that on that scale. >> Yeah, the customers ultimately are gonna dictate to the market What Israel and I think over time, Pios sort of vet who is right on this stuff. And so history's a great lesson teacher of all those things, you know, for me, it seems less less about how many different things you can offer. And as you see whether we're at Veum World or at Red Hat Summit were made obvious. Reinvent or, um, coup con every every every vector, turn of the customers. Prism on this will say something different. But I think in general, categorically, if you look at it, you could start to just, you know, glean what you think are the real requirements. And by the way, the rule carpets are not all technical. You know, I think what what gets lost on folks is that there is a lot of operational political factors, probably political factors, a lot more than what a lot of people think. You know, they're just talking about what the what The speed is to re factor APs or to migrate APS. Frankly, there's just a lot of politics that goes with that. There's a lot of just stuff to work through, >> and that's where I think simplicity is so important because of those non technical reason. Simplicity resonates across the board. >> But I would say you have to have simplicity with capabilities. >> I mean, just one of the things you talk about, right? If I modernize some application, well, the people that were using that application, they were probably complaining about that old one. But at least they do have to relearn >> that. Have that that new one. So we're gonna have some exciting announcements tomorrow. So I'm kind of check out tomorrow's stuff that will announce with VM, where with Netapp tomorrow We're here at the show floor will be showcasing some of those things. We can't give away too much of that today. But, you know, we think the future is bright and together with with Veum Or, you know, this partnership, I think, has a lot of upside. Like you said, we've had We've had a 17 year history with, you know, hundreds of thousands of customers together and installed base that goes back to like you said to be very beginning. Um, I remember back to the very beginning of the ecosystem. Net up was one of the strongest players in that market on dhe Since then, it's evolved beyond just NFS. >> Well, hopefully bread. We can get you on a keynote for in another 10 years. Waken Knock that wall down Exactly. Exactly. >> All right, great. Want to give you both the final word? You know, so so many big themes going on, you know, takeaways that you want people to have from the emerald 2019 bread >> I think the biggest takeaway is that just like the show today you didn't hear a whole lot about virtualization. It's moving to contain her eyes and and we had netapp view that, you know, we support all virtualized environments on from across the cloud, moving to supporting all containerized application environments on premises and cloud. And it's about choices in combinations of both, but keeping data control. >> Yeah, I'd say for me, it's it's really the power of the of of the better together, you know, to me, it's nobody's great apart. It takes really an ecosystem of players to kind of work together for the customer benefit and the one that we've demonstrated of'em. Where with that plus Veum, where has been a powerful one for well, well over 17 years and the person that putting in terms of joint customers that have a ton of loyalty to both of us, and they want us just to work it out. So you know, whether you're whether your allegiance on one side of the Cooper natty criminals battle or another or you're on one side of anyone's stores. Choice or another. I think customers want Netapp on via mortar work. It's out and come up with solutions that we've done that. And now what? We wait for the second act of this to come out. We'll start that tomorrow. Teeth and >> Brad, thank you so much if you couldn't tell by the sirens on the street. We are live here at San Francisco at Mosconi, north of lots more coverage. Three days wall to wall coverage for Justin Warren. I'm stew. Minimum is always thank you for watching the cue

>> From our studios in the heart of Silicon Valley, Palo Alto, California. This is a CUBE Conversation. >> Hello everyone, welcome to this special CUBE Conversation here in Palo Alto California, theCUBE headquarters. I'm John Furrier, host of theCUBE. We're here with Dheeraj Pandey CEO and Founder of Nutanix. Great guest, been with us for 10 years. Was on the cube in 2010 when we first started doing theCUBE coverage of events was at VMworld, Dheeraj, great to see you. >> Pleasure. >> Thanks for coming in. >> Thank you. >> You've had such a great journey. I've been so impressed with you as an entrepreneur, the hustle, the early days when you were misunderstood to the growth and going public and continuing to compete. Congratulations to you and your team. It's been great. >> Thank you, no, it's been a journey and it's going to continue to be a journey. >> A lot of competitive pressure. A lot of cloud happening, a lot of server dynamics in the marketplace with On-Premise now getting validated as a part of this multi-cloud hybrid equation, certainly not going away, but still growth of the cloud has been huge. What's the big focus, 'cause you have your Nutanix Next conference coming up in May. I'll be there with theCUBE, what's the focus, what is the theme of the event? What's the big focus? >> Yeah, no, in fact we complete 10 years this September, so it's a decade since the beginning of time for Nutanix. And we are focusing on the things that we're good at. We are good at what I call the three D's. So it's a three D view of the company. The first D's data, we are really good at data. And we're doubling down on data. We're very good at design, we've done a very good job of simplification making elegant consumer grade and taking clicks away rather than things taking months, how can it be done in seconds and hours, and we're very good at delivery, you know, the third D being delivery, you know, it's not just delivery of our software through all different form factors and our appliance and software and subscription and other servers, but also customer support, customer success, which has really endeared us to our customers. So if you think about what this conference is all about, obviously it's about the customers and as the power of social proof, the fact that they learn from each other and we learn from them. But it's really about reinforcing the three D's. Data, design, and delivery. >> And the theme is invisible clouds. Period, visible IT, invisible cloud, so I'm assuming that's, make that, abstract that away, multi-cloud in there, probably a theme. Visible IT, that's supposed to be invisible too, but what does that mean? I get the invisible cloud 'cause you want to make it seamless, multi-cloud, hybrid cloud. But what's visible IT, how do those words play? What's the play on words there? >> Yeah, I mean, you know, we, first of all the word invisible is really powerful and we use it a lot and it's very unique to Nutanix, you know, not everybody uses the word invisible as much as we do, but the idea is that machines should become invisible. Software and systems and tools and those things should become invisible. And then humans should become visible and by the way, there's this really good antithesis, sort of the polar opposites of machines versus humans that goes on in many other walks of life, I mean zero trust when it comes to security. Machines should not trust each other. But full trust, when people need to trust people. So when it's an organization of people you need to be the opposite of zero trust. Same thing is true for invisible machines invisible clouds with visible people visible careers and I think what's happening is that as the cloud hype cycle actually matures, CIOs are talking about cloud cloud cloud, but the grassroots is basically saying like do you even know the legacy apps of the last 20 years? Do you understand the challenges of what we call the laws of the land? Data compliance and regulations, laws of physics which is the gravity of data and the gravity of people and operations and laws of economics, owning and renting. So I think what's happening is that the cloud revolution is really being dug like a Eurotunnel, from two sides. Top down from C-level people are saying let's go transform ourselves to the cloud. And we are helping the grassroots really go and translate that, say look, this is only possible by doing these things because we have to be respectful of data sovereignty, data gravity, and applications and the economics of that. So, in really helping the CIOs build trust with the grassroots. As opposed to-- So essentially, you're operational as a cloud 'cause I can hear. We've interviewed a lot of CXOs on theCUBE as you know, take that hill, go to the cloud, move everything to the cloud. Wait a minute, we got, we're closing a pin. So to make sense of that vision, it's got to be operationalized, that's kind of what you're getting at. >> Absolutely, absolutely. And then finally there's a, I mean look what happens in computing, we make things smaller all the time, you know, we started with mainframes and we ended up with serverless. And along the way we had obviously Unix and x86 and container, VMs and containers and so on. Same thing with personal computing. We started with desktops and we ended up with wearables. So the fact that there's a billion dollar data center is the new mainframe. The fact that there's going to be a big cloud data center only two places in a big country is actually quite the antithesis of computing, we have to make cloud be everywhere and make it about software. To operationalizing the cloud and making it into a half a trillion dollar market will be about software. >> This whole mainframe is in the cloud or mainframe distributing computing. Software industry kind of come back in vogue. It doesn't go away, it's all the same game. It's just distributed out around in different formats, that's kind of what's going on here. >> Absolutely, I mean go back in time to distribution. Apple was a vertically integrated stack. So how does Microsoft come and really compete against Apple, they said look PC is about software, they said look PC's not about hardware, it's about software and the market becomes 10 times larger because they really bring in other partners who make money with the Windows Operating System. >> That's just more enabling. There's more demand, there's more growth. >> Absolutely, and the same thing happens again 15 years later with iOS versus Android. So Apple says smartphone is about vertically integrated stack, and Google comes and says no, to make the market 10 times larger, Android is about software. And then other handset manufacturers come and make money, so cloud is at this juncture where to take it beyond, 50, 60 billion dollars to half a trillion dollars, it has to be about software. >> Dheeraj, one of the things that I'm impressed with with you as an entrepreneur and your team is you fit the profile of the classic big idea. Be different, have good product leadership and pick a way that's going to have a big, totally adjustable market. You did that and you didn't waver, so I reviewed your analyst meeting from Wikibon and involved third party analysts. A hundred billion dollar addressable market. So big market, check, private cloud trend which you called early and Stu Miniman also called that on Wikibon is not going away, you have a stack for that. Large customer base, you have what 12 thousand customers plus and growing. Great revenue, strong revenue, and you got refreshes coming because the technology continues to shift in the wave that you're on. So, congratulations, that's good health meters. But there's now competitive pressure. The genie's out of the bottle. People know what you're doing. They figured it out and they're going to try to compete with you. This economy of scale that you have there's economy of scales others have specifically Dell, Dell EMC, VMware have been highly competitive with you. How are you responding to that and what's the landscape look like? >> Yeah, look, we've always been about disrupting ourselves, and that's the way we've actually grown our company. Very contrarian way of thinking about it but if we go back in time four, five years ago we're an appliance company, and we said we're going to do an OEM relationship with Dell and then Lenovo and others. All of a sudden people started competing with yourself, and for us it was like the more we compete with ourselves the better it is, today I think if you think about where the company's real response to any competition is to really compete with ourselves. I typically don't get wavered or changed by what's out there, we don't compete with anybody else, if we can keep competing with ourselves and get better in solving our customers and those three D's I talked about being even deeper in data, that VMware can't even touch us on simply because they have to compete with EMC on that and I don't know whether they actually have the gumption to do that, we do actually. We have to be better at design. Make the control plane even simpler. Understand what it means to virtualize the cloud. And get better at delivery, so if we can keep getting better in the three D's and we can keep competing with ourselves. We just did a really good announcement at HPE where we're going to compete with ourselves one more time because-- >> Talk about that announcement 'cause I think this is different. So HPE bought Nimble Storage so they already got the storage piece. They've got tons of servers, they also compete with Dell, what's your position with HPE, what's the announcement? What's the partnership? >> Yeah, so we're going to do a two-way relationship where we're going to be able to our sellers can quote HP servers and their sellers can actually quote our operating system. We have this rainbow which we call core essentials enterprise, Nutanix Core which is about hyper-convergence. Modernize your infrastructure. Nutanix Essential which is how we build a private cloud, and then Nutanix Enterprise which is really about navigating and simplifying the multi-cloud journey of the customer. And HP's going to take this stack to its customers. Again, we started to compete with ourselves because our appliance business was not based on HP, but now it will. Similarly, they will compete with themselves. And that's how companies transform themselves. When they compete with themselves rather than somebody else. >> And it's always the old expression, eat your own before your competition does. That's a cannibalization, kind of MBA concept. You guys are aggressive on that. You don't mind doing that and taking that risk. >> No, in fact if you don't do it, someone else will. It's better to do it in the controlled way ourselves. >> Got great, great management styles. So let's talk about, you mentioned control plane earlier, you have a quote on your deck that says, that I reviewed, it says control plane matters, this speaks to some of the product leadership. What does that actually mean, the control plane message, 'cause we hear this a lot come up in multi-cloud hybrid, and certainly within the data conversation around data control planes, control planes. For you guys, what does that mean? Control plane matters? >> Well if you take back like 10 years ago. We were very bold and audacious. We were the only company to say look we will not be building a tab in vCenter. Contrarian, highly contrarian. Most people said you'll lose a lot of deals because you are not adjunct to vCenter. You're not a tab in vCenter, every hardware renderer was really bending over backwards to please VMware because that was the only way to the heart of the virtualization administrator. We took a very different stance. Prism was the control plane, they said if you do a really good job at Prism make it a distributed scale out platform. Make it consumer grade one click delight. Then customers will actually look at this as a very powerful thing, and then we virtualized the hypervisor. So Prism was a multi hypervisor platform. It worked for Vmware, it worked for Hyper-V and it worked for Nutanix AHV. So over time, we just kept doing more of it. So now we have a control plane for multi-cloud. We were saying look, the world does need an automation orchestration engine. That is multi-cloud come is that thing for us. We've taken Prism to the next level with Prism Pro which is about ML and AI and what does it mean to really do operations management and capacity planning and security and analytics. So, we've doubled down on design which is the second D that I talked about with these control planes and going forward and as you see us getting to multi-cloud desktop delivery, we acquired a company almost a year ago, which is really about a cloud native desktop delivery solution where, now the control plane of desktops could belong in the cloud but the desktop itself could be running on prem. And that's a very powerful concept that you can have these cloud enabled cloud holstered cloud serviced control planes but the data place could actually be anywhere. It could be running-- This is the invisible cloud concept you're talking about. Absolutely, yeah. In fact the fact that the controller could be running anywhere, and the thing it controls could be running someplace else. >> The question, that's great stuff and that's great product leadership and again, invisible cloud, people don't want to deal with multiple code bases They want to have seamless operations. So with that I got to ask you your cloud positioning because every enterprise now because it's from the top end. Now it's top comparative, what's the cloud positioning because we now see on premise, super important a-du-is-ca outpost. The data's going to reside on premise in the cloud, it's all going to move around. What is the cloud positioning that you talk to your customers about when they say hey, we like Nutanix but we got to go to cloud, what's the positioning? >> Well our positioning is that cloud has to be about software. It has to seep everywhere, it has to be injected everywhere, our software should run no just on prim but in an AWS bare metal. There's a bare metal service and our software should run there. There will be an Azure bare metal. We already run in GCP metal so our software can run on top of GCP as well. Of course it is on prem and we are already working on our own disaster recovery as a service, desktop as a service where we become the service provider for many of these hybrid services that customers actually need from us. So cloud is about ubiquity, it's about portability, I mean the strength of any software company is portability. If we can make ourselves available in every server, every hypervisor, and every cloud, I think we've done a very good job. >> My final question I want to ask you is when you go to your event coming up invisible clouds, visible IT, you got to give the customer the 20 mile stare. You got to show 'em the 20 mile vision and the bridge to the future that they want to cross with you, that's the main value every company has to do as CEO. What is that story, what's the pitch to the customer saying we've got you covered today as you're organically building that operational cloud path, but I really want to know that I have a partner for the next generation, what's that story that you tell them? >> Yeah, I mean, even as I said before. Any big project, whether it's Panama Canal Suez Canal, Eurotunnel, you have to dig it from both sides and then you eventually shake hands and it becomes a historic picture, which is what we've known about the way the English side and the French side met. I think the way CIOs are talking about the cloud, the way grassroots is perceiving more of the cloud as you called it operationalizing. I think we really have to do it from both sides. And we really don't talk about the three D's. Data, we've done so well in data. We've done so well in design, we've done so well in delivery, and then at times we've actually screwed up like in the last two, three, four years, we might have gotten more complicated, we might have gotten more complex, so we go and even ask for forgiveness and open ourselves up, talk about the evaluability of the company and people like that, they didn't want to connect to an auto machine, but they wanted to connect to humans on this other side. As a business, we are not machines. We're actually humans, and that's what resonates in the conference. >> Dheeraj, thanks for coming in and sharing your insight, great to see you again, congratulations on the business performance, we'll see you at Nutanix Next in May, May 7th, thanks for coming in. >> Thank you, my pleasure. >> I'm John Furrier here in Palo Alto for CUBE Conversation, thanks for watching. (jazz music)

>> Live from Barcelona, Spain. It's the cue covering Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. >> Hi, everybody. Welcome back to Barcelona. This is Cisco Live. I'm Dave a lot with stew Mina, man. And you're watching the Cube. The leader >> in live tech coverage. We go out to the events, we extract the signal from the noise. Dr. Thomas Shearer's here is the chief architect of tle Indus looks onboard and David Cope is back. He's a senior director of marketing development for the Cisco Cloud Platform and Solutions Group. Gentlemen, welcome to the Cube. Thank you. Thanks. So you're very welcome. So tell Indus. Tell us about Delinda. >> So Telindus, we are actually an integrator, a cloud operator, and a tech company. And we're partnering over the years with Cisco, with all the products that they have notably, and lately we are moving also into the public cloud. We have private cloud offering, but we see our first appetite coming up with our customers in the public cloud, which are heavily regulated industries. And there we are working notably with the team off Dave to have an offering there that enables them to move into the clouds. >> So these guys are a customer or a partner? >> Well, you know, what's special about them. They're actually both. So they're a big customer of Cisco offerings, Cloud Center and other offerings. The Cisco Container Platform. But they also use those to provide services to their customers. Expect so there are a great sounding board about what the market needs and how our products are working. >> So Thomas telling has been around since. If I saw right. Nineteen seventy nine. So you know, we weren't talking multi cloud back then, but it is a big discussion point here at the show. You said private public, you're using Cloud Center, maybe explain to us what multi cloud means to you and your customers today. >> I would say most customers that we have a large organizations we manage the IT infrastructure. We're also doing integration projects, but those customers they are normally not really technology companies, you know, they are searching to work with us because we deal with the good part off their IT operations. So at these companies they come from a private infrastructure, they have there these days. They're VMWare installation their private clouds and I think also, it will stay like this for for a good amount of time. So there's no good reason to just go into the cloud because it's fancy or because there is something that you cannot have certainly there is. But that's stable progress that they are following. So what we need is actually to catch the low hanging fruits that exist in a public cloud for our customers. But in such a way that it satisfies their day today IT operations and sometimes it's our IT operations who is doing that since we are managing this. So for us, actually, hyper cloud, to say short, is actually the standard, or multicloud. >> So I wonder we're almost two years into GDP, are one year into the owner's finds. How has GDP are affected? You and your customers and What's it like out there these days? >> GDPR is for me not the main reason for public, private, multicloud installations for us and that involves GDPR is the regulation that we are in, so our customers are notably from the financial sector, and they're very strict on conservative security. rules for good because their main business is they're selling trust. There is not much more business where you trust that much than a bank. They know everything about you, and that's something they cannot sacrifice. Now, in Europe, we have the advantage. Data is that strict regulation which puts kind of standards. And that involves obviously also the GDPR thing. But if I look into that standards, that regulation imposes its very technical, they say. For example, please make sure if you move into the clouds then avoid a lock-in, be confident on what will be your exit cost. What will be your transition cost, and don't get married to anyone. And that's where Dave's team comes into the game because that they provide that solution, actually. >> I mean, that's music to your ears, I would think. I mean, I have to be honest. If I were a public cloud provider, I'd say no, don't do multi cloud. We have one cloud, does it all, But no customer speaks like that. >> You're right. And I think to me what I love about Linda's in the way they use the product is they work in such a highly regulated environment, where policies managing common policies across very different environments becomes critical. So how do I manage access control and security profiles and placement policies all across very different multiplied environments? That's hard, and that's been one of the cornerstones that we've focused on in Cloud Centre. >> Yeah, so look, double click on that. We're talking Teo, a guest earlier, and I was asking them, sort of poking it. There's >> a lot of people who want that business because it's a huge >> business opportunity. It's, um, some big, well established companies. Cisco's coming at it from a position of strength, which course? Network, But I'll ask you the same question. What gives you confidence that Cisco is in the best position for customers? Two urn, right? Tio manage their multi cloud data environment? >> I think it's I think it's a great question. I mean, for my perspective and I love our customers perspective. But if you think about Cisco's heritage around the network and security, I think most people would agree. They're very strong there. It's a very natural extension to have Cisco be a leader and multicloud because after all, it's how do I securely connect very diverse environments together. And now a little further. Now, how do I help customers manage workloads, whether they be existing or new cloud native workloads, So we find it's a very natural extension to our core strength and through both development and acquisition Cisco's got a very, very broad and deep portfolio to do that. >>So your thoughts on that? >> Yes, Cisco is coming from a network in history. But if your now look into the components there is, actually, yeah, the Networking Foundation, there is CUCS, which we have, for example, in our infrastructure, there is hyperflex there are then solutions like CCP that you can run a DevOps organization can combine it with Cloud Center to make it hybrid. And just today I learned a new thing, which is Kubeflow. I just recognized Cisco is the first one that is coming up with a platform as a service enabled Private Cloud. So if you go private Cloud usually talk about running VM's. But now with With With a CCP and it's open source projects Kubeflow which I think will be very interesting to see in conjunction with CCPN I heard that it's going to happen. You're actually Cisco is the first one delivering such a solution to the markets. So it's growth that just have >> a thing for the cnc es eso que >> bernetti slow way Don't have to send a cease and desist letter, right? >> CCP that Francisco Container platform Ryan out sad Some while ago on Prim Cooper. Nettie Stack. Right. >> So, Thomas, you know, with the update on Cloud Center suite now containerized, You got micro services. It's built with communities underneath and using cube flow. I'm guessing that's meaningful to you. There's a lot of things in this announcement that it's like, Okay, it sounds good, but in the real world, you know what? What do you super excited for? The container ization? You know, I would think things like the action orchestrator and the cost Optimizer would have value, but, you know, police tell us yourself >> The CloudCenter was already valuable before, you know, we a did investigation about what kind of cloud brokering and cloud orchestrations solutions exist back in those days when it was called CliQr CloudCenter and me and my colleagues know that CliQr team back then as well as now at Cisco we appreciated that they they became one family now. For me, CloudCenter fulfills certain requirements that I simply have to fulfill for our customer. And it's a mandatory effect that I have to feel for them, like being able to ensure and guarantee portability. Implementing policies, segregation of duties were necessary, things like that. I have to say now that it becomes containerized. That's a lot of ease in managing CloudCenter as a solution by itself, and also you have the flexibility to have it better. Also, migratable. It's an important key point that CloudCloud eyes a non cloud centric product that you can run it on-prem that your orchestration that you don't have to log in on the orchestration there and have it on-prem but now can easily move it on things such a GKE because it's it's a container based solution. But I think also there's a SaaS option available so you can just subscribe to it. So you have full range of flexibilities so that a day to day management work flow engine doesn't become a day to day management thing by itself. >> So I wonder if you could paint a picture for us of your environment around since nineteen seventy nine. So you must have a lot of a lot of stuff, a lot of it that you've developed over the years. But you mentioned that you're starting to look a public clouds. You just mentioned your customer base, largely financial services. So they're highly regulated and maybe a little nervous about the cloud. But so paint a picture of your Maybe not for certain workloads. Paint a picture of your environment tunnel where you want to go from. From an architecture and an infrastructure perspective. >> We have our own what we call private managed cloud. That's a product we call U-flex which is  FlexPod reference architecture that's Cisco was networking NetApp storage. Cisco UCS in conjunction with the ember, as a compute. This we use since many years and as I already have said, the regulated market started opening up towards public cloud. So what does it mean? European Banking Authority. So EBA, who's the umbrella organization on European level. They send out a recommendation. Dear countries, please, your financial institution. If they go into the cloud that have to do ABC. The countries I have put in place those regulations they have put in place those controls and for them, they are mostly now in that let's investigate what its influence in the public they come from their private infrastructure. They are in our infrastructure, which is like private infrastructure virtualized and managed by us, mainly VM based. And now the news things on top that they investigate are things like big data, artificial intelligence and things like that which you mostly don't have in private infrastructure. So in that combination is what we have to provide to our customers but their mostly in and investigative mode. >> and okay. And and Cisco is your policy engine management engine across all those clouds, is that right? >> Yes we are able to manage those workloards with CloudCenter. Sometimes it depends also on the operating model. The customer himself is the one using CloudCenter, you know, so it depends, since we are in integrator, cloud operator and also offer our services in the public cloud. It's always the question about who has to manage what. >> One of the things, if I could just add on that we see people providing our products as a service. We're just talking about Kubernetes. Customers today are starting to move Kubernetes just from being like development now into production. And what we're seeing is that these new Kubernetes based applications have non containerized dependencies reach out to another traditional app, reach out to PaaS, a database. And what we try to do is to say, how do you give your customers the ability to get the new and the old working together? Because it'll be that way for quite some time. And that's a part of sort of the new cloud center capabilities also. >> That's that's a valid reason. So you have those legacy services and you don't want just to You cannot just replace them now. Now let's go all in. Let's be cloud native. So you have always thes interoperability things to handle and yeah, that's true. Actually, you can build quite some migration path using containerization. >> Yeah, I mean, you can't customer can't just over rotate to all the new fun buzz words. They got a business to run. Yeah, so this >> And how do I apply security policies and access control and to this very mixed environment now, common policies and that becomes challenging. >> But it's also part of our business. Yes, there have there, for example, financial institution than not a nineteen company. That's where we come in as a for Vita Toe. It's such an industry daddy, via highly value the partnership with Cisco Heavy Cat build new services together. We had that early adopters program, for example, regarding CCP. So Cisco is bringing a service provider into the loop to build what's just right for the customer for them on their behalf. Yes, you describe that is very challenging, is it's In some cases, it's chaos. But that's the opportunity I heard this morning that you guys are going after pretty hard. >> No, it's right. And you've got one set of desires for developers, but now we move into production. Now I t cops gets involved, the sea so gets involved. And how do we have then well thought out integrations into security and network management? Those air all of the things that we're trying to really focus on. >> Well, anywhere the definite zone. So you you were surrounded by infrastructures code. Is there a fits and club? Guys, Thanks so much for coming to Cuba and telling your story. Really appreciate it. Thank you. Enjoyed. Thank you. Alright, Keep it right there, buddy. Stupid him and Dave. Alon. Today we're live from Cisco Live Barcelona. You watching the cube right back?

>> Live from Barcelona, Spain. It's the cue covering Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. >> Hi, everybody. Welcome back to Barcelona. This is Cisco Live. I'm Dave a lot with stew Mina, man. And you're watching the Cube. The leader in live tech coverage. We go out to the events, we extract the signal from the noise. Dr. Thomas Shearer's here is the chief architect of tle Indus looks onboard and David Cope is back. He's a senior director of marketing development for the Cisco Cloud Platform and Solutions Group. Gentlemen, welcome to the Cube. Thank you. Thanks. So you're very welcome. So Telindus. Tell us about Telindus. >>So Telindus we are actually an integrator, a cloud operator, and a tech company. And, uh, we're partnering over the years with Cisco with all the products that they have notably, we are moving also into the public cloud. We have private cloud offering, but we see a first appetite coming up with our customers in the public cloud, which are heavily regulated industries. And there we are working notably with the team of Dave to have an offering there that enables them to move into the clouds. >> So these guys are a customer or a partner? >> Well, you know what's special about them, they're actually both. So they're a big customer of Cisco offerings, cloud center. and other offerings. The Cisco container platform, but they also use those to provide services to their customers. So they are a great sounding board about what the market needs and how our products are working. So Thomas telling has been around since. If I saw right. Nineteen seventy nine. So you know, we weren't talking multi cloud back then, but it is a big discussion point here at the show. You said private public, You're using Cloud Center, maybe explain to us what multi cloud means to you and your customers today. >> I would say most customers that we have a large organizations >> B >> managed dalati infrastructure. We're also doing integration projects. But those customers down, I'm really not really technology companies, you know, date. There are searching to work process because we deal with the good part off their operations. So at this, cos they come from a private infrastructure, they have there these days. They're bm vary installation there, private clouds and and I think also, it will stay like this for for a good amount of time. So there's no good reason to just go into the cloud because it's fancy because there is something that you cannot have certainly days. But that's it, stable progress that they're following. So what we need is actually tow catch the low hanging fruit that exist in a public cloud for our customers. But in such a way that it satisfies their day today I T operations and sometimes it's our operations. Who is doing that since we are managing this? So for us, actually, hyper cloud, to say short, is actually just end up >> so our mighty close. So I wonder we're almost two years into GDP are one year into the owner's finds. How has GPR affect you and your customers? And Ted? What's it like out there these days? >> Gpr. It's for me. Not the main reason for public private mighty cloud installations for us and that involves GDP are it is the regulation that so our customers are notably from the financial sector, and that's they're very strict on conservative security Woods for good because their main business is they are selling trust. There is not much more business where you trust that much. Then a bank I know everything about you, and that's something they cannot sacrifice now. In Europe, we have the advantage. Data is that strict regulation which puts kind of standards and that involves obviously also the GDP arcing. But if I look into that standards, that regulation imposes its very technical, they say. For example, please make sure if you move into the clouds that avoid a locket, be confident on what will be your exit costs. What will be a transition because and don't get married to anyone. And that's where Dave Steam comes into the game because that they provide that solution. Actually, that's >> music to your ears. I would think. I mean, have to be honest. If I were a public cloud provider, I'd say No, don't do multi cloud. We have one cloud, does it all? But no customer speaks like that. No, >> you're right. And I think to me what I love about Linda's in the way they use the product is they work in such a highly regulated environment, where policies managing common policies across very different environments becomes critical. So how do I manage access control and security profiles and placement policies all across very different multiplied environments. That's hard, and that's been one of the cornerstones that we've focused on in Cloud Centre. >> Yeah, so look, double click on that fucking Teo a guest earlier and I was asking them, sort of poking it. There's a lot of people who want that business because it's a huge business opportunity. It's, um, some big, well established companies. Cisco's coming at it from a position of strength, which is course network. But I'll ask you the same question. What gives you confidence that Cisco is in the best position for customers? Two. Urn, The right tio manage their multi cloud data and environment. >> I think it's I think it's a great question. I mean, for my perspective of action, love our customer's perspective. But if you think about Cisco's heritage around the network and security, I think most people would agree. They're very strong there. It's a very natural extension. Tohave Sisko Be a leader and multi cloud because, after all, it's how doe I securely connect very diverse environments together. And now a little further. Now, how do I help customers manage workloads, whether they be existing or new cloud native workloads, So we find It's a very natural extension to our core strengths and through both development and acquisition system has got a very, very broad and deep portfolio to do that. So your >> thoughts on that? Yeah, Yes, sister is coming from a network in history. But if your now leg look into the components days actually, yeah, Networking foundation s U. C s, which we have, for example, in our infrastructure, this hyper flex there are there solutions like CCP that you can run a deaf ops organization, can combine it with Cloud Center to make it high pret. And just today I learned a new thing, which is cute flow. I just recognized Cisco. It's the first one that is coming up with a platform is a service in Able Private Cloud. So if you go private, Cloud usually talk about running the M's. But now, with with With a CCP and it's Open sauce Project cute flow, which I think Ah, bee, very interesting to see in conjunction with C. C. P. And I heard that it's going to happen. You're actually Cisco is to first one delivering such a solution to the markets. So it's It's gross that just have >> a thing for the cnc es eso >> que bernetti Slow way Don't have to send a cease and desist letter, right? >> Ccp that Francisco Container platform. Ryan out sad. Some while ago on Prim Cooper. Nettie Stack. Right. So, Thomas, you know, we were the update on Cloud Center. Sweet. Now it's containerized. You got micro services. It's built with communities underneath and using cube flow. I'm guessing that's meaningful to you. There's a lot of things in this announcement that it's like, Okay, it sounds good, but in the real world, you know what? What do you super excited for? The container ization? You know, I would think things like the action orchestrator and the cost Optimizer would have value. But, you know, police tell us yourself, >> like Cloud Center was already variable before, you know, be a did investigation about what kind of flout brokering cloud orchestrations solutions exist big in those days when it was called Clicker Cloud Center. And I'm me and my colleagues know that click a team back then as well as now as assist. Greatly appreciated that, David, they became one family now for me, cloud center for face, certain requirements that I simply have to fulfill for our customer. And it's a mandatory effect that I have to feel for them, like being able to ensure and guarantee portability. Implementing policies, segregation of duties were necessary, things like that. I have to say now that it becomes containerized, that's a lot off ease and managing Cloud Center as a solution by itself, and also you have the flexibility to have it better. Also, my credible It's an important key point that Cloud Santa eyes a non cloud centric products that you can run it on. Prem that the orchestration that you don't have to log in on the orchestration there and have it on now can easily move it on such a cheeky because it's it's a container by solution. But I think also there's a sass option available so you can just subscribe to it. So you have full range off flexibilities so that day to day management work for engine doesn't become a day to day management things by itself. >> So I wonder if you could paint a picture for us of your environment. Bronson since nineteen seventy nine so You must have a lot of a lot of stuff A lot of you developed over the years, but you mentioned that you're starting to look a public clouds. You just mentioned your customer base, largely financial services, so they're highly regulated and maybe a little nervous about the cloud. But so paint a picture of your Maybe not for certain workloads. Paint a picture of your environment kind of where you want to go from. From an architecture in an infrastructure >> perspective, we haven't own what we call private. Manage cloud. That's a product recall. You flex witches, flex port reference architecture. That's Cisco that working. Get up storage. Cisco, UCS in conjunction with, we embarrass completely. It's the use since many years and as I already have said, the regulated market started opening up towards public law. So what does it mean? European Banking Authority. So Ebba, who's the umbrella organization on European level days, send out a recommendation. Dear countries, place your financial institution if they go into the cloud that have to do a B C. The country's I have put in place those regulations they have put in place those controls and for them. What They're mostly now in that let's investigate what its influence in the public they come from their private infrastructure. They are in our infrastructure, which is like private infrastructure virtualized and managed by us, mainly v m base. And now the news thing on top that they investigate at things like big data, artificial intelligence and things like that which you mostly don't have a private infrastructure. So in that combination is what we have to provide our customers but their most in and investigative >> okay. And okay. And Cisco is your policy engine management engine across all those clouds that the >> yes, we are able to managed our struggles with cloud centre. Sometimes it depends also on the operating modern. The customer himself is the one using cloud center, you know? So so it depends Since we are in integrate icloud operate and also off our services in the public cloud. It's always the question about who has to manage one and one >> of the things that I just had on that we see people providing our products as a service. We're just talking about Cooper Netease. Customers today are starting to move you, Burnett. He's just from being like development now into production. And what we're seeing is that these new communities based applications have non containerized dependencies reach out to another traditional app, reach out to pass a database. And what we try to do is to say, How do you give your customers the ability to get the new and the old working together? Because it'll be that way for quite some time. And that's a part of sort of the new cloud center capabilities. Also, >> that's that's a valid reason. So you have those legislate services and you don't want just do it. You can't just replace them now. Now >> let's go all >> in. Let's be cloud native. So you have always sees interoperability things to handle. And And, yeah, that's true. Actually, you can quite some my creation path using content or ization. I >> mean, you can't customer cancers over rotate to all the new fun buzz words. They've got a business to run. So what? >> This And how do I apply security policies and access control and to this very mixed environment now common policies and that becomes challenging. >> But that's also part of our business. Yes, there have there, for example, financial institution than not a ninety company. That's where we come in as a provida towards such an industry and daddy. Here I highly value the partnership with Cisco Heavy Cat Build new services together. We had that early adopters program, for example, regarding CCP. So Cisco is bringing a service provider into the loop bill. What's just right for the customer For them? >> Yes, you describe that is very challenging, is it's In some cases, it's chaos. But that's the opportunity I heard this morning that you guys are going after pretty hard, right? Oh, >> it's right. And you've got one set of desires for developers, but now we move into production. Now I t cops gets involved, the sea so gets involved. And how do we have then well thought out integrations into security and network management. Those air, all of the things that we're trying to really focus on. >> Well, where's the definite zone? You were surrounded by infrastructures code and it fits and cloud. Well, guys, thanks so much for coming in Cuba and telling your story. Really appreciate it. Thank you. Enjoyed it. Thank you. Alright, Keep it right there, buddy. Stupid and Dave. Alon. Today we're live from Cisco Live Barcelona. You watching the Cuba >> booth?

>> Narrator: Live from Nashville, Tennessee, it's theCUBE covering COMMVAULT GO 2018 brought to you by COMMVAULT. >> Welcome back to Nashville, Tennessee. This is COMMVAULT GO and you're watching theCUBE. I'm Stu Miniman with my co-host Keith Townsend. Happy to welcome to the program Lauren Nelson who's a principal analyst with Forrester. Thank you so much for joining us. >> My pleasure! >> Alright, our first time doing theCUBE in Nashville. COMMVAULT goes third year at the show. Have you been to the COMMVAULT shows in the past? >> I have. Not last year but the year prior, first year. >> So you skipped a year. From two years ago, just from my own knowledge COMMVAULT's changed quite a bit. I mean, they had some pressures on them. They've been going through a lot of pricing models. What's your take on what COMMVAULT's been doing in the last couple years? >> Yeah, a lot of focus on the show on pricing model changes, packages changes, emphasis on selling through partners and how to try and foster that in the actual village space. So, how do you bring partners into conversations early on and in a smoother way and just looking around, you've got white boards on tables, you've got spaces very changed in terms of collaborative space right in the middle of the booths rather than around the perimeter. So, very very interesting layout. >> Alright, so Lauren, your research, one of the things that you focus on is cloud and cloud migrations which is, of course, one of the key messages COMMVAULT talks about. When I talk to users, the multi-cloud strategy that they're figuring out, as I say, the ink's still drying and it's one of those things that's revisited quite often. What are you hearing from customers? What's your research showing of the state of cloud and how cloud migration fits in to it? >> Yeah, so you've got two really big topics right now on the cloud space. You've got the migration side and you've got the multi-cloud side and they are the conversations going on right now. First of all, you've got migration which is not SAS migration but migrating an app to an infrastructure as a service environment and that is something that is difficult. And a lot of companies that are talking about cloud migration don't always recognize that. They sum it up to SAS migration and often find that they are going to have higher performance when they move. They don't look at the challenges or the architectural changes from moving to vertical scaling to horizontal scaling and it's this conversation where, well, if we hear one company doing it, then maybe that should be our entire cloud strategy, And for a number of organizations, it is. Especially if you look at small mid-size organizations, they're looking at cloud migration as a data center replacement method. If you look at the average enterprise, that's not the typical story unless they're in a unique moment of change. Typically, what they're looking at is a few apps typically driven by location or app specific support that they're planning to get from their service provider of choice and they're moving this app for specific reasons. If you look holistically at our latest stats, survey taken in August, shows that 69 percent of enterprises in North America and Europe are actually migrating workloads to the cloud. If you then ask about how, they're methods are all over the map, the number of total apps they're moving is far less than what we're made to believe, in some of the more sensationalized or exaggerated stories or kind of unique use cases. When you look at the other side of that, you've got the multi-cloud story which is, all of a sudden with this migration topic, you get organizations questioning, "Should I be multi-cloud? "Am I doing this wrong? Am I adding needless complexity?" And we saw a bit of a drop in 2016, after GE presented at Amazon Re: Event, on associating with the term multi-cloud, that that was their specific strategy. And we've actually seen that come back in spades. In fact, we've seen a number of organizations actually say they are multi-cloud and then they have various definitions of what multi-cloud means for them. Multi-cloud is either public and private, private and some public cloud usage, multiple public, non cloud plus cloud. It's all over the map. And so, I think organizations are starting to take a step back, starting to think about, "How does my cloud strategy map to my larger organizational values?" Should seem obvious that should've been done that way from the start but for a lot of organizations it's a unique step that they're doing this year of being more pragmatic on how they should approach cloud. Not trying to force fit deployment models and look at the real opportunities that are there. And that includes all of these things. It includes private cloud and your on-prime data center for using it for specific workloads, for use cases that it just does not make sense to have that much change at once or to force the economics. The other side, you do see cloud migration. That is very much a real thing. It is not the most exciting use case to cloud. You're moving an app that you're not changing at all in terms of customer experience to an environment that is not meant to handle it that may suffer from performance. So it tends to be the less sexy side of the cloud strategies that we see today but very much apart. And it is the use of infrastructures of service for just that cheap infrastructure rather than some of it's more compelling past services. So it's an interesting time! All of those conversations are emerging, in fact, I can't tell you how many research reports we have on queue on these very topics around just the one-on-one level which I think is what we've primarily covered. Just the grazing the surface versus some of the latest conversations around, how do we have cloud neutral pass services that are obstructed from the underlying platform. Who will deliver those? What technologies will be standardized beneath that? How will we leverage kubernetes and the many different types. So, It's an interesting thing that I'm pretty passionate about as you can see. >> Well Lauren, let's talk about that step to when I'm out talking to customers about multi-cloud. One, multi-cloud or even cloud migration, that you're absolutely right, I see the same thing. They need to answer the why question like, "why are we even considering that?" And for multi-cloud I think customers are starting to look back and really wonder, "do I need that complexity?" "Is it really worth the effort?" But the second thing that I think customers underestimate the complexity of is having a data strategy unique to cloud versus their data strategy on PRIM. Are you seeing the same, that customers are realizing, wow, that I can't just take wholesale of my data strategy, my own PRIM data strategy and take that to the cloud. >> Yup, and it's the classic analyst response is, it depends. There's some organizations that are literally creating two different data hubs where they're having different access levels and different apps that you're allowed to connect to based on what classification is for that particular data. It's this theme of zero trust model of, how do you secure from the data out? And simply put, some data sets are more valuable than others. Some have security requirements that are far more expensive to meet and when you try and problem solve for this, some people try and think, well, is the easiest way just to completely segment the two, and be able to have control of how you access these two, Or, is it more complex than that? Do we need different databases that we're leveraging? Do we need to look at migrating some days or replicating some data to avoid data out fees from some of the major service providers? Do we leverage a third party like a collocation provider that can provide some ease for us in terms of movement of data? So, I think that's one of the big topics in the upcoming year is if I'm going to to multi-cloud, if I'm going to take on that effort, why am I doing that? You know, why am I taking on this as an important app? Is it because of fear of lock-in and flexibility long term? And if I do that, what are the implications in terms of data both security wise and cost wise. And a lot of organizations' challenge is, you know, you write out your cloud security, or your actual cloud strategy map and you don't really understand the proof points or where that strategy breaks until you start getting in to the details, testing out and trying to do this to try and figure out what are the actual costs of this scenario. So it's a challenging problem but it's one that I think organizations are going to be facing for the next few years. >> Yeah, it's interesting and I'm thinking through some of this. A lot of what we're talking about is infrastructure. And it's like, my private cloud, how do I modernize it? How do I simplify it? The reason we have infrastructure is to run my applications and the most important piece there is the data. How much does the cloud strategies that the data companies are working on look at data and how they are going to take advantage of data even more in the future? >> Yeah, it's a great question and there's so many different sides of this. There's one, you've got GDPR which is making them think about data in a whole new level just from a security and compliance perspective and how quickly they can react to requests that are put in by a particular citizen about their knowing what's on file for them as well as requesting it to be deleted and being held accountable for ability to complete that. On the other hand, you've got organizations that are trying to draw insights that are trying to change customer experience, design new products, market to their organizations more effectively leveraging data that they don't know where it is, they don't know how to use it or even how to start thinking about it together. They have a shortage of data scientists. They have a shortage of ... tools and solutions that can help them try and piece together this challenge. So, I would say companies have done very little of this so far. It is something that's on the road map. You get some organizations that are in the lead, that are testing the waters right now but if you look at the average organizations, they haven't even gotten to this. They're trying to use public cloud for very low end use cases at this point. >> Alright. So, I want to ask you when you talk about your research, of course, it depends. The customer by customer what they're having, but what differentiates a customer that can really start kind of moving up the stack, being more strategic, having IT really answering to the business and doing things with their data versus the laggards out there? Is there anything that you're finding in your research as to what separates those leaders from laggards? >> There's a few things and I'm not the first. A lot of vendors look for changes in executive boards. So, typically new folks coming in trying to change the way things are being done. Kind of, fresh innovative talent. That's a good flag that they're ready for it. Other organizations, there's the classic, they're threatened by others in their industry or believe they'll be threatened soon. For some organizations, it happens to be the right place, the right time. They have a leader they can trust that they believe will head this cloud strategy and that can tackle some of these challenges. For a lot of organizations, there's the desire, there is some action but often times the action is delayed. They face very stagnant cloud strategies. They face very stagnant data problems cause they're either missing cash, they're missing the ear of their executive board, or they have the wrong individuals that are trying to take the torch forward. So it takes a lot of critical self reflection as an organization that isn't easy. >> So let's talk a little about that (mumbles) within organizations. A lot of times, I'm seeing multi-cloud, cloud migration, cloud efforts being driven by, not just IT but infrastructure organizations within IT. Are you seeing successful efforts being driven from, I call that bottom up, versus whether if it's evens some VP or above, driving the effort from a business perspective? >> I think it varies. So, there some organizations where it's, our VPs are bringing a cloud first policy to our organization and then you have to figure out what that means to that particular executive. It may mean, we are going to go AWS completely all now! For a lot of organizations, it's a progress of, we're going to include all things that could be possibly labeled as cloud technologies, which, doesn't really describe much. If it does anything, it's to describe change is on the horizon. We are going to do things differently than we previously did. For a lot of companies, they have been tasked by their executives of, you need to tell me what to do for the cloud strategy and so they're trying to figure out, how do we problem solve for cloud from our perspective. I think that's been on of the biggest problems of the cloud industry for the last seven years, is this bottom up approach or top down approach with very little thinking about where's the value. So, bottom up, typically you get folks thinking about how to we have more efficient infrastructure, how do we modernize, how do we add in automation and build the best private cloud in the world? And often times over spending, often times delaying and having no self service access for developers for five years into their strategy. From that you see a lot of organizations trying to redesign their cloud strategies to deliver real business value up front early on and then look to see, how do they modernize, how do they mature, to help support and scale that effort, where as, top down approaches are very froofie, high level, shiny objects and so a lot of organizations that are trying to change that are trying to get individuals in the same room together, figure out, let's start from our business strategy and work our way in to how cloud serves that greater purpose. >> Lauren, when Forrester talks to customers, this space of data protection, secondary storage, whatever you call it, is pretty crowded. Are there specific things that, customers are calling out or that Forrester gives advices to how to differentiate in the market place or what they're looking for? And along those lines, what're customers looking for down the road to even expand more and get more value from vendors in the future? >> Yeah, I tend to focus on the cloudy questions. So, when I'm looking at data protection, I'm looking at it as a module of, how you manage multiple clouds. And when you look at the hyper cloud management space, it's a very busy space. It tends to focus on orchestration, template building, occasionally some compliance and policy, tags that can be applied, and then cost optimization. Very little has been done on the security side so far and very little has been done on data production side. So, when you look at, how do you differentiate, there's not a lot of players in this market yet. For as many security players as there are, it has not been aggressively tackled as heavily as the classic management providers have been attacking other management challenges. You look at the cloud costs optimization space, it's done very well. It's the first cloud challenge that organizations are trying to solve is, how much am I spending? Who's spending it? How do I integrate with my billing system? The next challenge is, how do I problem solve for data. They see that as a potentially huge cost escalator if they don't get this under control for many reasons, compliance, from data out costs. So, that's the next beach head. So, I would actually argue that there's not a lot that's been done specifically around cloud in this space yet. >> Lauren Nelson, we really appreciate you sharing your insight in customer views with us. >> My pleasure! Thank you. >> Alright, for Keith Townsend, I'm Stu Miniman, we'll be back with more coverage here from COMMVAULT GO, in Nashville, Tennessee, Thanks for Watching theCUBE.

>> Announcer: Live from Orlando, Florida, it's theCUBE, covering .conf2018. Brought to you by Splunk. >> Welcome back to .conf2018 everybody, this is theCUBE the leader in live tech coverage. I'm Dave Vellante with Stu Miniman, wrapping up day one and we're pleased to have Bina Khimani, who's the global head of Partner Ecosystem for the infrastructure segments at AWS. Bina, it's great to see you, thanks for coming on theCUBE. >> Thank you for having me. >> You're very welcome. >> Pleasure to be here. >> It's an awesome show, everybody's talking data, we love data. >> Yes. >> You guys, you know, you're the heart of data and transformation. Talk about your role, what does it mean to be the global head Partner Ecosystems infrastructure segments, a lot going on in your title. >> Yes. >> Dave: You're busy. (laughing) >> So, in the infrastructure segment, we cover dev apps, security, networking as well as cloud migration programs, different types of cloud migration programs, and we got segment leaders who really own the strategy and figure out where are the best opportunities for us to work with the partners as well as partner development managers and solution architects who drive adoption of the strategy. That's the team we have for this segment. >> So everybody wants to work with AWS, with maybe one or two exceptions. And so Splunk, obviously, you guys have gotten together and formed an alliance. I think AWS has blessed a lot of the Splunk technology, vice versa. What's the partnership like, how has it evolved? >> So Splunk has been an excellent partner. We are really joined hands together in many fronts. They are fantastic AWS marketplace partner. We have many integrations of Splunk and AWS services, whether it is Kinesis data, Firehose, or Macy, or WAF. So many services Splunk and AWS really are well integrated together. They work together. In addition, we have joined go to market programs. We have field engagement, we have remand generation campaigns. We join hands together to make sure that our customers, joint customers, are really getting the best value out of it. So speaking of partnership, we recently launched migration program for getting Splunk on prem, Splunk Enterprise customers to Splunk Cloud while, you know, they are on their journey to Cloud anyway. >> Yeah, Bina let's dig into that some, we know AWS loves talking about migrations, we dig into all the databases that are going and we talk at this conference, you know Splunk started out very much on premises but we've talked to lots of users that are using the Cloud and it's always that right. How much do they migrate, how much do they start there? Bring us instead, you know, what led to this and what are the workings of it. >> So what, you know if you look at the common problems people have customers have on prem, they are same problems that customers have with Splunk Enterprise on prem, which is, you know, they are looking for resiliency. Their administrator goes on vacation. They want to keep it up and running all the time. They help people making some changes that shouldn't have been made. They want the experts to run their infrastructure. So Splunk Cloud is run by Splunk which is, you know they are the best at running that. Also, you know I just heard a term called lottery proof. So Splunk Cloud is lottery proof, what that means the funny thing is, that you know, your administrator wins lottery, you're not out of business. (laughs) At the same time if you look at the the time to value. I was talking to a customer last night over dinner and they were saying that if they wanted to get on Splunk Enterprise, for their volume of data that they needed to be ingested in Splunk, it would take them six months to just get the hardware in place. With Splunk Cloud they were running in 15 minutes. So, just the time to value is very important. Other things, you know, you don't need to plan for your peak performance. You can stretch it, you can get all the advantages of scalability, flexibility, security, everything you need. As well as running Splunk Cloud you know you are truly cost optimized. Also Splunk Cloud is built for AWS so it's really cost optimized in terms of infrastructure costs, as well as the Splunk licensing cost. >> Yeah it's funny you mentioned the joke, you know you go to Splunk cloud you're not out of a job, I mean what we've heard, the Splunk admins are in such high demand. Kind of running their instances probably isn't, you know a major thing that they'd want to be worrying about. >> Yes, yes, so-- >> Dave: Oh please, go. >> So Splunk administrators are in such a high demand and because of that, you know, not only that customers are struggling with having the right administrators in place, also retaining them. And when they go to Cloud, you know, this is a SAS version, they don't need administrators, nor they need hardware. They can just trust the experts who are really good at doing that. >> So migrations are a tricky thing and I wonder if we can get some examples because it's like moving a house. You don't want to move, or you actually do want to move but it's, you have be planful, it's a bit of a pain, but the benefits, a new life, so. In your world, you got to be better, so the world that you just described of elastic, you don't have to plan for peaks, or performance, the cost, capex, the opex, all that stuff. It's 10 X better, no debate there. But still there's a barrier that you have to go through. So, how does AWS make it easier or maybe you could give us some examples of successful migrations and the business impact that you saw. >> Definitely. So like you said, right, migration is a journey. And it's not always easy one. So I'll talk about different kinds of migration but let me talk about Splunk migration first. So Splunk migration unlike many other migration is actually fairly easy because the Splunk data is transient data, so customers can just point all their data sources to Splunk Cloud instead of Splunk Enterprise and it will start pumping data into Splunk Cloud which is productive from day one. Now if some customers want to retain 60 to 90 days data, then they can run this Splunk Enterprise on prem for 60 more days. And then they can move on to Splunk Cloud. So in this case there was no actual data migration involved. And because this is the log data that people want to see only for 60 to 90 days and then it's not valuable anymore. They don't really need to do large migration in this case it's practically just configure your data sources and you are done. That's the simplest part of the migration which is Splunk migration to Splunk Cloud. Let's talk about different migrations. So... you have heard many customers, you know like Capital One or many other Dow-Jones, they are saying that we are going all in on AWS and they are shutting down their data centers, they are, you know, migrating hundreds of thousands of applications and servers, which is not as simple as Splunk Cloud, right? So, what AWS, you know, AWS does this day in and day out. So we have figured it out again and again and again. In all of our customer interactions and migrations we are acquiring ton of knowledge that we are building toward our migration programs. We want to make sure that our customers are not reinventing the wheel every time. So we have migration programs like migration acceleration program which is for custom large scale migrations for larger customers. We have partner migration programs which is entirely focused on working with SI partners, consulting partners to lead the migrations. As well as we're workload migration program where we are standardizing migrations of standard applications like Splunk or Atlassian, or many of their such standard applications, how we can provide kind of easy button to migrate. Now, when customers are going through this migration journey, you know, it's going to be 10 X better like you said, but initially there is a hump. They are probably needing to run two parallel environments, there is a cost element to that. They are also optimizing their business processes there is some delay there. They are doing some technical work, you know, discovery, prioritization, landing zone creations, security, and networking aspects. There are many elements to this. What we try to do is, if you look at the graph, their cost is right now where this and it's going to go down but before that it goes up and then goes down. So what we try to do is really provide all the resources to take that hump out in terms of technical support, technical enablement, you know, partner support, funding elements, marketing. There are all types of elements as well as lot of technical integrations and quick starts to take that hump out and make it really easy for our customers. >> And that was our experience, we're Amazon customer and we went through a migration about, I don't know five or six years ago. We had, you know, server axe and a cage and we were like, you know, moving wires over and you'd get an alert you'd have to go down and fix things. And so it took us some time to get there, but it is 10 X better now though. >> It is. >> The developers were so excited and I wanted to ask you about, sort of the dev-ops piece of it because that's really, it became, we just completely eliminated all the operational pieces of it and integrated it and let the developers take care of it. Became, truly became infrastructure as code. So the dev-ops culture has permeated our small organization, can't imagine the impact on a larger company. Wonder if you could talk about that a little bit. >> Definitely. So... As customers are going through this cloud migration journey they are looking at their entire landscape of application and they're discovering things that they never did. When they discover they are trying to figure out should I go ahead and migrate everything to AWS right now, or should I a refactor and optimize some of my applications. And there I'm seeing both types of decisions where some customers are taking most of their applications shifting it to cloud and then pausing and thinking now it is phase two where I am on cloud, I want to take advantage of the best of the breed whatever technology is there. And I want to transform my applications and I want to really be more agile. At the same time there are customers who are saying that I'm going to discover all my workload and applications and I'm going to prioritize a small set of applications which we are going to take through transformation right now. And for the rest of it we will lift and shift and then we will transform. But as they go through this transformation they are changing the way they do business. They are changing the way they are utilizing different technology. Their core focus is on how do I really compete with my competition in the industry and for that how can IT provide me that agility that I need to roll out changes in my business day in day out. And for that, you know, Lambda, entire code portfolio, code build, code commit, code deploy, as well as cloud trail, and you know all the things that, all the services we have as well as our partners have, they provide them truly that edge on their industry and market. >> Bina, how has the security discussion changed? When Stu and I were at the AWS public sector summit in June, the CIO of the CIA stood up on stage in front of 10,000 people and said, "The cloud on my worst day from a security perspective "is better than my client server infrastructure "on a best day." That's quite an endorsement from the CIA, who's got some chops in security. How has that discussion changed? Obviously it's still fundamental, critical, it's something that you guys emphasize. But how has the perception and reality changed over the last five years? >> Cloud is, you know, security in cloud is a shared responsibility. So, Amazon is really, really good at providing all the very, very secure infrastructure. At the same time we are also really good at providing customers and business partners all of the tools and hand-holding them so that they can make their application secure. Like you said, you know, AWS, many of the analysts are saying that AWS is far more secure than anything they can have within their own data center. And as you can see that in this journey also customers are not now thinking about is it secure or not. We are seeing the conversation that, how in fact, speaking of Splunk right, one customer that I talked to he was saying that I was asking them why did you choose Splunk cloud on AWS and his take was that, "I wanted near instantaneous SOA compliant "and by moving to Splunk cloud on AWS "I got that right away." Even I'm talking to public sector customers they are saying, you know, I want fair DRAM I want in healthcare industry, I want HIPPA Compliance. Everywhere we are seeing that we are able to keep up with security and compliance requirements much faster than what customers can do on their own. >> So they, so you take care of, certainly from the infrastructure standpoint, those certifications and that piece of the compliance so the customer can worry about maybe some of the things that you don't cover, maybe some of their business processes and other documentation, ITIL stuff that they have to do, whatever. But now they have more time to do that presumably 'cause that's check box, AWS has that covered for me, right? Is that the right thinking? >> Yes, plus we provide them all the tools and support and knowledge and everything so that they, and even partner support who are really good at it so that not only they understand that the application and infrastructure will come together as entire secure environment but also they have everything they need to be able to make applications secure. And Splunk is another great example, right? Splunk helps customer get application level security and AWS is providing them infrastructure and together we are working together to make sure our customers' application and infrastructure together are secure. >> So speaking about migrations database, hot topic at a high level anyway, I wonder if you could talk about database migrations. Andy Jassy obviously talks a lot about, well let's see we saw RDS on Prim at VMworld, big announcement. Certainly Aurora, DynamoDB is one of the databases we use. Redshift obviously. How are database migrations going, what are you doing to make those easier? >> So what we do in a nutshell, right for everything we try to build a programatic reputable, scalable approach. That's what Amazon does. And what we do is that for each of these standard migrations for databases, we try to figure out, that let's take few examples, and let's figure out Play Books, let's figure out runbooks, let's make sure technical integrations are in place. We have quick starts in place. We have consulting partners who are really good at doing this again and again and again. And we have all the knowledge built into tools and services and support so that whenever customers want to do it they don't run into hiccups and they have really pleasant experience. >> Excellent. Well I know you're super busy thanks for making some time to come on theCUBE I always love to have AWS on. So thanks for your time Bina. >> Thank you very nice to meet you both. >> Alright you're very welcome. Alright so that's a wrap for day one here at Splunk .conf 2018, Stu and I will be back tomorrow. Day two more customers, we got senior executives coming on tomorrow, course Doug Merritt, always excited to see Doug. Go to siliconangle.com you'll see all the news theCUBE.net is where all these videos live and wikibon.com for all the research. We're out day one Splunk you're watching theCUBE we'll see you tomorrow. Thanks for watching. >> Bina: Thank you. (electronic music)

>> Live from Times Square in New York City, it's theCUBE, covering IBM's Change the Game, Winning with AI, brought to you by IBM. >> Hi everybody, welcome back to theCUBE's special presentation. We're here at the Western Hotel and the theater district covering IBM's announcements. They've got an analyst meeting today, partner event. They've got a big event tonight. IBM.com/winwithAI, go to that website, if you're in town register. You can watch the webcast online. You'll see this very cool play of Vince Lombardy, one of his famous plays. It's kind of a power sweep right which is a great way to talk about sort of winning and with X's and O's. So anyway, Daniel Hernandez is here the vice president of IBM analytics, long time Cube along. It's great to see you again, thanks for coming on. >> My pleasure Dave. >> So we've talked a number of times. We talked earlier this year. Give us the update on momentum in your business. You guys are doing really well, we see this in the quadrants and the waves, but your perspective. >> Data science and AI, so when we last talked we were just introducing something called IBM Club Private for data. The basic idea is anybody that wants to do data science, data engineering or building apps with data anywhere, we're going to give them a single integrated platform to get that done. It's going to be the most efficient, best way to do those jobs to be done. We introduced it, it's been a resounding success. Been rolling that out with clients, that's been a whole lot of fun. >> So we talked a little bit with Rob Thomas about some of the news that you guys have, but this is really your wheelhouse so I'm going to drill down into each of these. Let's say we had Rob Beerden on yesterday on our program and he talked a lot about the IBM Red Hat and Hortonworks relationship. Certainly they talked about it on their earnings call and there seems to be clear momentum in the marketplace. But give us your perspective on that announcement. What exactly is it all about? I mean it started kind of back in the ODPI days and it's really evolved into something that now customers are taking advantage of. >> You go back to June last year, we entered into a relationship with Hortonworks where the basic primacy, was customers care about data and any data driven initiative was going to require data science. We had to do a better job bringing these eco systems, one focused on kind of Hadoop, the other one on classic enterprise analytical and operational data together. We did that last year. The other element of that was we're going to bring our data science and machine learning tools and run times to where the data is including Hadoop. That's been a resounding success. The next step up is how do we proliferate that single integrated stack everywhere including private Cloud or preferred Clouds like Open Shift. So there was two elements of the announcement. We did the hybrid Cloud architecture initiative which is taking the Hadoop data stack and bringing it to containers and Kubernetes. That's a big deal for people that want to run the infrastructure with Cloud characteristics. And the other was we're going to bring that whole stack onto Open Shift. So on IBM's side, with IBM Cloud Private for data we are driving certification of that entire stack on OpenShift so any customer that's betting on OpenShift as their Cloud infrastructure can benefit from that and the single integrated data stack. It's a pretty big deal. >> So OpenShift is really interesting because OpenShift was kind of quiet for awhile. It was quiest if you will. And then containers come on the scene and OpenShift has just exploded. What are your perspectives on that and what's IBM's angle on OpenShift? >> Containers of Kubernetes basically allow you to get Cloud characteristics everywhere. It used to be locked in to kind of the public Cloud or SCP providers that were offering as a service whether PAS OR IAS and Docker and Kubernetes are making the same underline technology that enabled elasticity, pay as you go models available anywhere including your own data center. So I think it explains why OpenShift, why IBM Cloud Private, why IBM Club Private for data just got on there. >> I mean the Core OS move by Red Hat was genius. They picked that up for the song in our view anyway and it's really helped explode that. And in this world, everybody's talking about Kubernetes. I mean we're here at a big data conference all week. It used to be Hadoop world. Everybody's talking about containers, Kubernetes and Multi cloud. Those are kind of the hot trends. I presume you've seen the same thing. >> 100 percent. There's not a single client that I know, and I spend the majority of my time with clients that are running their workloads in a single stack. And so what do you do? If data is an imperative for you, you better run your data analytic stack wherever you need to and that means Multi cloud by definition. So you've got a choice. You can say, I can port that workload to every distinct programming model and data stack or you can have a data stack everywhere including Multi clouds and Open Shift in this case. >> So thinking about the three companies, so Hortonworks obviously had duped distro specialists, open source, brings that end to end sort of data management from you know Edge, or Clouds on Prim. Red Hat doing a lot of the sort of hardcore infrastructure layer. IBM bringing in the analytics and really empowering people to get insights out of data. Is that the right way to think about that triangle? >> 100 percent and you know with the Hortonworks and IBM data stacks, we've got our common services, particularly you're on open meta data which means wherever your data is, you're going to know about it and you're going to be able to control it. Privacy, security, data discovery reasons, that's a pretty big deal. >> Yeah and as the Cloud, well obviously the Cloud whether it's on Prim or in the public Cloud expands now to the Edge, you've also got this concept of data virtualization. We've talked about this in the past. You guys have made some announcements there. But let's put a double click on that a little bit. What's it all about? >> Data virtualization been going on for a long time. It's basic intent is to help you access data through whatever tools, no matter where the data is. Traditional approaches of data virtualization are pretty limiting. So they work relatively well when you've got small data sets but when you've got highly fragmented data, which is the case in virtually every enterprise that exists a lot of the undermined technology for data virtualization breaks down. Data coming through a single headnote. Ultimately that becomes the critical issue. So you can't take advantage of data virtualization technologies largely because of that when you've got wide scale deployments. We've been incubating technology under this project codename query plex, it was a code name that we used internally and that we were working with Beta clients on and testing it out, validating it technically and it was pretty clear that this is a game changing method for data virtualization that allows you to drive the benefits of accessing your data wherever it is, pushing down queries where the data is and getting benefits of that through highly fragmented data landscape. And so what we've done is take that extremely innovated next generation data virtualization technology include it in our data platform called IBM Club Private for Data, and made it a critical feature inside of that. >> I like that term, query plex, it reminds me of the global sisplex. I go back to the days when actually viewing sort of distributed global systems was very, very challenging and IBM sort of solved that problem. Okay, so what's the secret sauce though of query plex and data virtualization? How does it all work? What's the tech behind it? >> So technically, instead of data coming and getting funneled through one node. If you ever think of your data as kind of a graph of computational data nodes. What query plex does is take advantage of that computational mesh to do queries and analytics. So instead of bringing all the data and funneling it through one of the nodes, and depending on the computational horsepower of that node and all the data being able to get to it, this just federates it out. It distributes out that workload so it's some magic behind the scenes but relatively simple technique. Low computing aggregate, it's probably going to be higher than whatever you can put into that single node. >> And how do customers access these services? How long does it take? >> It would look like a standard query interface to them. So this is all magic behind the scenes. >> Okay and they get this capability as part of what? IBM's >> IBM's Club Private for Data. It's going to be a feature, so this project query plex, is introduced as next generation data virtualization technology which just becomes a part of IBM Club Private for Data. >> Okay and then the other announcement that we talked to Rob, I'd like to understand a little bit more behind it. Actually before we get there, can we talk about the business impact of query plex and data virtualization? Thinking about it, it dramatically simplifies the processes that I have to go through to get data. But more importantly, it helps me get a handle on my data so I can apply machine intelligence. It seems like the innovation sandwich if you will. Data plus AI and then Cloud models for scale and simplicity and that's what's going to drive innovation. So talk about the business impact that people are excited about with regard to query plex. >> Better economics, so in order for you to access your data, you don't have to do ETO in this particular case. So data at rest getting consumed because of this online technology. Two performance, so because of the way this works you're actually going to get faster response times. Three, you're going to be able to query more data simply because this technology allows you to access all your data in a fragmented way without having to consolidate it. >> Okay, so it eliminates steps, right, and gets you time to value and gives you a bigger corporate of data that you can the analyze and drive inside. >> 100 percent. >> Okay, let's talk about stack overflow. You know, Rob took us through a little bit about what that's, what's going on there but why stack overflow, you're targeting developers? Talk to me more about that. >> So stack overflow, 50 million active developers each month on that community. You're a developer and you want to know something, you have to go to stack overflow. You think about data science and AI as disciplines. The idea that that is only dermained to AI and data scientists is very limiting idea. In order for you to actually apply artificial intelligence for whatever your use case is instead of a business it's going to require multiple individuals working together to get that particular outcome done including developers. So instead of having a distinct community for AI that's focused on AI machine developers, why not bring the artificial intelligence community to where the developers already are, which is stack overflow. So, if you go to AI.stackexchange.com, it's going to be the place for you to go to get all your answers to any question around artificial intelligence and of course IBM is going to be there in the community helping out. >> So it's AI.stackexchange.com. You know, it's interesting Daniel that, I mean to talk about digital transformation talking about data. John Furrier said something awhile back about the dots. This is like five or six years ago. He said data is the new development kit and now you guys are essentially targeting developers around AI, obviously a data centric. People trying to put data at the core of the organization. You see that that's a winning strategy. What do you think about that? >> 100 percent, I mean we're the data company instead of IBM, so you're probably asking the wrong guy if you think >> You're biased. (laughing) >> Yeah possibly, but I'm acknowledged. The data over opinions. >> Alright, tell us about tonight what we can expect? I was referencing the Vince Lombardy play here. You know, what's behind that? What are we going to see tonight? >> We were joking a little bit about the old school power eye formation, but that obviously works for your, you're a New England fan aren't you? >> I am actually, if you saw the games this weekend Pat's were in the power eye for quite a bit of the game which I know upset a lot of people. But it works. >> Yeah, maybe we should of used it as a Dallas Cowboy team. But anyways, it's going to be an amazing night. So we're going to have a bunch of clients talking about what they're doing with AI. And so if you're interested in learning what's happening in the industry, kind of perfect event to get it. We're going to do some expert analysis. It will be a little bit of fun breaking down what those customers did to be successful and maybe some tips and tricks that will help you along your way. >> Great, it's right up the street on the west side highway, probably about a mile from the Javis Center people that are at Strata. We've been running programs all week. One of the themes that we talked about, we had an event Tuesday night. We had a bunch of people coming in. There was people from financial services, we had folks from New York State, the city of New York. It was a great meet up and we had a whole conversation got going and one of the things that we talked about and I'd love to get your thoughts and kind of know where you're headed here, but big data to do all that talk and people ask, is that, now at AI, the conversation has moved to AI, is it same wine, new bottle, or is there something substantive here? The consensus was, there's substantive innovation going on. Your thoughts about where that innovation is coming from and what the potential is for clients? >> So if you're going to implement AI for let's say customer care for instance, you're going to be three wrongs griefs. You need data, you need algorithms, you need compute. With a lot of different structure to relate down to capture data wasn't captured until the traditional data systems anchored by Hadoop and big data movement. We landed, we created a data and computational grid for that data today. With all the advancements going on in algorithms particularly in Open Source, you now have, you can build a neuro networks, you can do Cisco machine learning in any language that you want. And bringing those together are exactly the combination that you need to implement any AI system. You already have data and computational grids here. You've got algorithms bringing them together solving some problem that matters to a customer is like the natural next step. >> And despite the skills gap, the skill gaps that we talked about, you're seeing a lot of knowledge transfer from a lot of expertise getting out there into the wild when you follow people like Kirk Born on Twitter you'll see that he'll post like the 20 different models for deep learning and people are starting to share that information. And then that skills gap is closing. Maybe not as fast as some people like but it seems like the industry is paying attention to this and really driving hard to work toward it 'cause it's real. >> Yeah I agree. You're going to have Seth Dulpren, I think it's Niagara, one of our clients. What I like about them is the, in general there's two skill issues. There's one, where does data science and AI help us solve problems that matter in business? That's really a, trying to build a treasure map of potential problems you can solve with a stack. And Seth and Niagara are going to give you a really good basis for the kinds of problems that we can solve. I don't think there's enough of that going on. There's a lot of commentary communication actually work underway in the technical skill problem. You know, how do I actually build these models to do. But there's not enough in how do I, now that I solved that problem, how do we marry it to problems that matter? So the skills gap, you know, we're doing our part with our data science lead team which Seth opens which is telling a customer, pick a hard problem, give us some data, give us some domain experts. We're going to be in the AI and ML experts and we're going to see what happens. So the skill problem is very serious but I don't think it's most people are not having the right conversations about it necessarily. They understand intuitively there's a tech problem but that tech not linked to a business problem matters nothing. >> Yeah it's not insurmountable, I'm glad you mentioned that. We're going to be talking to Niagara Bottling and how they use the data science elite team as an accelerant, to kind of close that gap. And I'm really interested in the knowledge transfer that occurred and of course the one thing about IBM and companies like IBM is you get not only technical skills but you get deep industry expertise as well. Daniel, always great to see you. Love talking about the offerings and going deep. So good luck tonight. We'll see you there and thanks so much for coming on theCUBE. >> My pleasure. >> Alright, keep it right there everybody. This is Dave Vellanti. We'll be back right after this short break. You're watching theCUBE. (upbeat music)

(instrumental music) >> Hi everybody, this is Dave Velante. Welcome to the special wikibon community event. VMware, VMworld 2018, strong momentum but still choppy waters. How can you say that Dave? How can you say strong momentum but still choppy waters? The data center is on fire. We just came back from VMworld 2018, the eco system is exploding, revenues are up, profits are up, all looks good. Well we agree in general, but theCUBE was there. We had two sets. We interviewed over 100 guests. 75 segments on theCUBE and right now what we want to do in this special community event is share with you our community and hear from you what you thought of the event, what we thought of the event and let's collaborate and come up with some conclusions. So, what were the key points made on theCUBE by Michael Dell, Pat Kellsinger, Ray Ofarell, Andy Bechtelshtein and number of other folks, customers, practitioners, technologists and eco system partners on theCUBE? What did they say and what does it mean for users? AWS and VMware, a big theme on theCUBE last week was is the AWS VMware partnership a one way trip to the Hotel Cloudifornia or is it a boon for the data center? What about AWS with RDS, the data base, on prim, what does that mean? How effective will that be? What does it say about AWS's strategy and what does it mean for VMware and the eco system? What's VMware's play at the edge? What about containers? Containers are supposedly going to kill VMware or hurt VMware's momentum. What does the community think about that? And what about Dell's new capital structure? Dell is going public again. It's taking an 11 billion dollar dividend out of VMware's 13 billion dollars of cash. Is that the best use of VMware's cash? And is VMware constrained in terms of it's RND going forward? We're going to address these and other items with the following format. We're going to show you now highlights from VMworld 2018 from theCUBE and then we're going to come back in the crowd chat and discuss. So thanks for watching everybody. Take a look at these video clips and these statements from senior leaders and then we'll go into the crowd chat. >> Welcome back to theCUBE, I'm Lisa Martin with Dave Velante, John Furrier, Stu Miniman at the end of day two of our continuing coverage guys of VMworld 2018, huge event. 25,000 plus people here. 100,000 plus expected to be engaging with the on demand, the live experiences, our biggest show, right. 94 interviews in the next three days, two of them down. >> And evolving over the years. I mean at VMworld's core, it is a technical conference. Right, so I would say that the base of the volume of the program is still catered towards a real hands on, technical practitioner and middle management but we are seeing more business executives come. They want to know what their teams are exploring. They want to understand vision and I think VMware you know, value proposition to enterprises is growing and therefore, it's starting to be more of a business conversation. So that is a segment of the audience that is growing. >> A few questions, I think first of all the Amazon news is already on VMware on premises is earth shattering news at many levels. One, Amazon's never done it before. Two, I think people are starting to understand this downstream a little bit later. But it's going to have a significant impact on the opportunities in multi cloud. So, I think Amazon's relationship with VMware is very deep at the level of technology and stay cold is at the top of both companies. Andy Jaci and Pat Gelsinger are both in this to win it together. It's obvious and anyone who says otherwise really isn't really informed. They're deep in the technical side, they have management at the top approving this, they're going to market together in the field. There is a legit synergy and they're going to win the long game. Gelsinger's making the big bet and remember, three years ago Pat Gelsinger was the gun. What's his role going to be? People were nervous about their cloud. Look it, VMware boxed the cloud and they're kicking ass right now with cloud. So they made the right moves. They steered the ship away from the rocks, they're out in the clear sailing. Love their strategy, Keno with Gelsinger was very specifically around the generational shift around VMware and the industry. He went through the bridging and I love the cleverness of the story telling, bridging tech trends of VMware ethos. He talked about the history, servers ESX, BYOD workspace, network NSX, cloud migration, that was their kind of initial private cloud, but right now its multi cloud and profit and people doing tech for good. So I think Gelsinger's laying down the generational shift that Vmware's going for and their making the huge bet on AWS, so it makes the question. What about Asher, what about Google? Is VMware going to be a one cloud game? Are they going to bridge to other clouds? That's going to be a very interesting tell sign 'cause the relationship on stage with Andy Jaci in fact Gelsinger is pretty significant. I think it's going to be a hard thing to go in to other clouds and say, I want to dig you too. >> Last year Pat said that networking has the potential to be the next decade bigger than what virtualization was for the wave and we are seeing good movement. I think I said it on our intro this morning but when Asira was acquired, the promise that we as a networking industry felt that they could be that inter weaving kind of glue for multi cloud and it kind of got hidden for a few years while they built that intersect, they made it really enterprise ready. They did really well with adoption. But now that vision is kind of back in full and that is what VMware can ride. Not to just be virtualization. V spheres great, they'll drive that for awhile, but the networking and security pieces is why VMware has the right to sit at the table in this multi cloud discussion. Now it was funny, I interviewed Keith Townsen and he said VMware, you know, he's now a VMware employee, VMware is the best position to help customers do that transformation. I said, hey Keith, I hear ya, but Microsoft and Amazon and a whole bunch of other management people might kind of step up and say, we've got a right to be at the table too. >> Of course all the legacy guys are trying to figure out, okay, their cloud strategies. But now all the major cloud guys are betting on Prim. We saw Google next, the on Prim strategy was certainly Assure with Assure Stack. Oracle has bets in cloud and with cloud customers got bets for On Prem. Now AWS throws its Admuring. James Kobielus, you sat in the analyst sessions all day. What did you learn? What were your big take aways? What do we need to know? >> Well first of all it's clear that AWS partnership VMware's all in with them. Look at the past year since they announced the customer adoption, partner enablement. They share variety and depth of the integrations that these partners have put together including today. It's pretty serious in terms of VMware's investment in that relationship, deepening that to the point where, there are no splashy Google partnership announcements or IBM or anybody else. It's clear that they're really, they're each others hybrid cloud partner par excolons. I don't think either of them, or I don't think the VMware is going to go anywhere near as deep with the other public club providers any time soon. But really my take away today from the analysis session was that VMware is going seriously to the edge and it's really interesting, they're building an appliance to take their entire stack and bring it down to edge deployment and distribute that around and then manage that for customer on a global basis with automation, there's going to be AI and machine learning built in so that if VMware will be able as a managed service to drive the software defined data center all the way out to the edges for its clients. And they're putting themselves in a position where they could actually, that could be there next major revenue producing business. As the traditional hypervisor VMworld begins to wane in terms of putting cube and server less and so forth on an appliance. Putting that in the clients sight and managing it for them. And then white boxing it potentially to other cloud providers to provide to their customers. This could be in the future coming in the next year or two. Something that can propel VMware to the next stage where they are everybody's preferred multi cloud management, edge management partner. >> Provide a slightly different version of one of the things you said. I definitely agree. I think what VMware hopes to do, I think they're not alone is to have AWS look like an appliance to their console, to have Assure look like an appliance to their console. So through free VMware, you can get access to whatever services you need including your VMware machines your VM's inside those clouds but that increasingly their goal is to be that control point, that management point for all of these different resources that are building and it is very compelling. I think that there's one area that I still think we need more from. As analysts we always got to look through what's more required. And I hear what you say about broad dimensions but I think that the edge story still requires a fair amount of work. >> Oh yeah. >> It's a project in place, but that's going to be an increasingly important focus of how architectures get laid out, how people think about applications in the future, how design happens, how methodologies for building software works. David, what do you think? When you look out, what is more is needed for you? >> So I think there are two things that give me a small concern. The edge, that's a long term view. So they have a lot of time to get that right. But the edge view is very much an IT view top down. And they are looking to put into place everything that they think the OT people should fit in with. I think that is personally not going to be a winning strategy. You have to take it from the bottom up. The world is going to go towards devices, very rich devices and sensors, lots of software, right on that device, the inference work on those devices. And the job of IT will be to integrate those devices. It won't be those devices taking on the standards of IT. It will be IT that has to shape itself to look after all those devices there. So that's the main viewpoint I think that needs adjustment and it will come I'm sure over time. >> But as you said, there's a lot of computer science, it's going to be an enormous amount of new partnerships are going to be fabricated. >> Exactly. >> Once you make this happen... >> I want to see the road map for Kuhernettys and server less. Last year they made an announcement of a server less project, I forgot what the code name is. Didn't hear a whole lot about it this year but they're going up the app stack. They got a coop distribution. They need a developer story. I mean developers are building functional apps and so forth. And they're also containerized. They need developer story and they need a server less story and they need to bring us up to speed on where they're going in that regard, because AWS, they're predominant partner, I mean they've got LAM dysfunctions and all that stuff. That's the development platform of the present and future and I'm not hearing an intersection of that story with VMware's story yet. >> Actually before VMware's was server installation it was work station. >> Work station, that's right. >> And we were an investor of VMware and we thought that was cool. Anyway, so fast forward to 2013, we go private. 2014, Joe Tuchi and I restart the discussion that we'd had earlier back in 2009 about combining together. 2015 we announced it and we thought that if we could combine everything together, that customers would really like it. And thankfully, as we found that that's been true, it's been more true then we thought. And the innovation engines are cranking on high. 12.8 billion dollars in RND invested in the last three years. And you see here at VMworld and in Dell technologies world the strength of the road maps. And so every turn of the crank, we're just getting stronger and stronger. We never believed that everything was going to go one place or the other. It's actually great that the edge is booming. Now if you said, did you know that five or ten years ago? No, I didn't really know, but you can kind of see some things starting to happen. But look, distributed computing will be even more distributed in the future. >> For your commentary, people at the convention of wisdom on that deal was it was a one way trip to the Hotel Cloudifornia and it's become a boon for the data center. Why the misconceptions? Why are you confident that it continues to be a boon for both companies? >> Yeah, and hey we got to go prove it. At the end of the day we have to go prove it. So, but the analysts were sort of viewing hey, there's this big sucking sound in the public cloud where everything congregates. You know point one, and three years ago that was the prevailing wisdom. Right, so that was going to be the case. Now everybody, you know, and like I had the big CIO who basically said, hey I've got 200 apps. I tried to move them to the public cloud. I got two done. I can build new things there, but this moving was really hard until we had the VMC service. So this ability to move things to the cloud and from the cloud, I call the three laws. The laws of physics, the laws of economics and the laws of the land. The laws of physics, hey if need 500 millisecond round trip to the cloud and the robotic arm needs a decision in 200 milliseconds. You know physics, economics. I'm not going to send every surveillance picture of the cat to the cloud. Ban would still cost, right. And then laws of the land right, where people say, government issues, GDPR, other things. So because of that we see this hybrid world and particularly as edge and IOT becomes more prominent, we fully expect that there's going to be more of that not less and as I showed in my key note last year, this pendulum of centralization and decentralization has been swinging through the industry for 40 years and we don't see that stopping and Edge will be a force of more data and compute pushing to the edge and that's obviously part of our key note as well. >> Yeah John, you know, we sat here analyzing this VMware AWS relationship. Is this a one way move to the public cloud? Is Amazon just going to take those 500,000 VMware customers and get them all to migrate? Even in the start of Andy and Pat up on stage you know, Andy goes, the number on use case is migrating our applications to the public cloud and Pat's like, and the number two use case is you know, bursting and on demand and things like that. So it's an interesting dynamic between what we call, you know, you got the gorilla in the data center of VMware and you've got the 800 pound gorilla in the cloud. Fast as the cheetah as Dave Velante says in AWS. But RDS on premises, this is a big deal. I tell you, I'm surprised, most people here are surprised with the discussion. We were at some shows recently when they're spanning the snowball use case. Snowballs great, it's edge, it's helping to migrate things to the data center. This is an Amazon service running into VMware on premise. Didn't think that we would be seeing this from Amazon who's goal was, we thought to get 100 percent of things in the public lap. >> Decisions on cloud. Okay, Andy Jaci comes on stage. You're personally involved with Andy on the Amazon analysis which is, I think people don't know how big that's going to be. But VMware and Amazon are seriously deep in a partnership. This is a big deal. This feels like a little wind tail kind of easy synergies across the board. >> Well you know, in some ways we'll say number one in public coming together with number one in private. That's a big deal. And you know, yesterday's announcement of RDS on premise to me sort of finishes this strategic picture that we were trying to paint where it really is a hybrid world, where we're taking workloads and giving people the access to this phenomenal rapidly growing public cloud. But we're also demonstrating that we can seamlessly connect to the private cloud and now we're bringing services back from the public cloud onto the private and neuron data center. And that's so profound because now customers can say, oh, I like the RDS API. I like the RDS management model. I can put the data wherever I need it for my business purposes and that hybrid bi directional highway is something that we're uniquely building with Amazon and hey, obviously we're working with other cloud providers. But they're our preferred partner and we're pretty thrilled. >> How are customers going to deal with the multiple clouds? I mean is there an infra ability framework coming? Do you see a real disruptive technology enable that'll have that kind of impact that TCP spawn massive opportunity and wealth creation and start ups and functionality? Is there a moment coming? >> So, TCP of course was the proper layering of an interact between the physical layer, you know layer one, layer two and the routing or the internet layer was just layer three. And without that, you know, this is back to the old internal argument, we wouldn't have what we have today on the internet. That was the only rational way to build a architecture that would actually. And I'm not sure if people had a notion in 1979 when TCP was started, that it would become that big. They probably would of picked a bigger adverspace if they had known. But it was, not just a longevity but the impact it had was just phenomenal, right. Now and that applied in terms of connectivity and how many things shift to interact between point a to point b. The NSX level of network management is a little different because it's much higher level. It's really a management plan, back to the point I made earlier about management plans, that allows you to integrate a cloud on your premise with one of Amazon or IBM or the future Google and so on in a way that you can have full visibility and you see, you know exactly what's going on, all the security policies. But this has been a dream for people to deliver but it requires to actually have a reasonable amount of cold in each of these places, both on user. It's not just a protocol, it's an implementation of accountability right. And VMware is the best solution that's available and I can see for that use case which is going to be very important to a large number of enterprises, many of which will want to have a small connection between on premise and off premise and in the future, to Edge, Telcol, and other things that will run a VM environment today but that will allow them to be fully securely linked >> I think, so we are seeing lots of customer energy around what we're doing in storage. There's huge momentum behind product like Vsend and our customers are truly embracing ACI in very mainstream use cases and we've seen customer after customer have gone all in meaning they're taking ACI and made a determination to run that for all of their virtualized workload. It's a very exciting time. But what's more interesting is their expanded view on what ACI is about. You know, certainly, we started was virtualizing computer and storage together on servers. But we're seeing rapid expansion of that definition. You know, we've been believer that HCI is a software architecture. I think now there's more recognition that. And it's also going from just computer storage to the full stack of the entire software defined data center is expanding into the cloud as you see from VMCIWS. It's expanding to the edge, expanding from just traditional apps to cloud native apps. You know we've announced Beta 4, you know V send to become the storage platform for Cupernetis NEV sphere environment. So lots of exciting expansion around how customers want to see HCI and if you look at HCI, hybrid cloud, SDDC the boundary among these three is not very clear. I think they're all converging to work something that's very common. >> That's been proposed. Dell came out a while ago and sort of floated this idea of a reverse merger. Street puked all over it. And then all of a sudden they came up with this other idea of I called it the independence vig. Okay, VMware is having to pay a 11 billion dollar dividend. Nine billion of that is going to go to DVMT shareholders to clean that up. And you're going to get cash or prorata shares and the new Dell. Okay, so the question on the table is will that constrict VMware in anyway in terms of its ability to fund RND? My quick thoughts are short term no, long term, Dell has to walk a fine line between taking VMware cash, paying down it's debt and funding the future. Your thoughts. >> Yes, so here are my thoughts on this. So, I think that, first let's explain to the people what you just talked about, I'll translate. What you described is Michael Dell's going private, 60 billion dollars. That number was debt deal he did to buy Dell DMC so he has all this debt. Debt is like heroin, you get addicted to it, hard to get straight from that. So you gotta pay down the debt. He's been knockin' down the debt and big bag of money called Vmware's sitting there. As long as Vmware's thrown off cash flow that's going to be a key consideration. So, the independent vig as long as this cash flow's coming in, I think is fine. It's not going to really hurt it. But I think Dell's been brilliant in this because he's been essentially land grabbing the computer industry on the infrastructure side and he's going to make more money than ever before. He's going to pull it off and the only thing that could hurt him is either some side of force major or downturn or revenue not coming in from the sources whether either it's a public offering, acquisitions he's trying to sell off, and or VMware sputters which I don't think it will. Now with VM is on, even if they just go all in on Amazon and pull off all the other clouds, they'll still make a boat load of cash. >> I think it goes down in history as one of the greatest trades ever. I mean it's just phenomenal. >> Look, I mean Dave, we talked about when EMC bought VMware it was one of the greatest acquisitions of all time. >> 635 million. >> Right but. >> Now it's 60 billion value evaluation. >> Dell buying EMC, most people were like, I'm not sure what's going to happen but Michael will make a lot of money. VMware is doing so well that they can now fund Dell going public again based on this deal. So it's been one of those fascinating financial orchestration pieces to be out there. >> You ever feel constrained writing an 11 billion dollar dividend? Do you ever feel constrained in terms of your ability to fund the RND necessary to do some of those things? >> No. >> Rio said the same thing off camera but I ask you on camera. >> Yeah, generally I mean, am I constrained at how much RND I can do? Well hey, I've got a budget, we build a PNL, we communicate it to the street and everyday possible I'm pushing the growth of business faster so I can shove more dollars into one of two places. More dollars into RND or more dollars into sales and customer facing. Right and if Robin Matlock is here, I keep giving her the table scraps at the end of those things. But build products that are innovated, radical and break through. Sell products and support our customers using them. That's the two thing... >> And I think it's a really interesting point that after a lot of conversations with a lot of folks saying AWS is all going to go up to the cloud and wondering whether that also is a one way street for VMware customers. But now we're seeing it's much more of a bilateral relationship. >> It's moving it to the right place. And that's the second thing. The embracing of multi cloud by everybody. One cloud is not going to do everything. There's going to be fast clouds, there's going to be multiple places where people are going to put certain workloads because that's the best strategic fit for it. And the acceptance in the market place that that is where it's going to go. I think that gain is a major change. The hybrid cloud and multi cloud environments. And then the third thing is I think the richness of the eco system is amazing. The going on the floor and the number of people that have come to talk to us with new ideas really fascinating ideas is something I haven't seen at all for the last three, four years. >> Alright, we've heard from some of our guests on theCUBE and you've heard our teams initial analysis of the news from VMworld. Now we want to hear from you. Please hop into the crowd chat below, give us your feedback, want a community discussion and let's hear about what everybody thinks about VMware and VMworld 2018. Once again, thanks so much for joining us and look forward to the conversation.

>> Live, from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit 2018, brought to you by Amazon Web Services and it's ecosystem partners. >> Welcome back to the District, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with my cohost, Stu Miniman. Day two of the AWS Public Sector Summit. We saw Teresa Carlson yesterday, a lot of keynotes, we saw the CIA. Todd Osbourne is here, he's the Vice President of Alliances of New Relic, a company that's been smokin' hot, six billion dollar market cap, and really is takin' the world by storm. He's joined by Scott Drossos, who's the president of Infiniti, who is a public sector consultancy. Gentleman, welcome to theCUBE, good to see you. >> Thanks, good to be here. >> Thank you. >> So Todd, you heard me, I mean really, everybody's talkin' about New Relic, stocks been smoking, I read an article recently, "it's got to cool off, it's too hot." So why so hot, what's goin' on, why the appeal of New Relic? >> Well as our CEO Lew Cirne has been on a couple of times talking to you about, every business is becoming a software business in the public sector, which we're here representing at the Amazon public sector event. It's the same thing with agencies and all the digital experiences that are happening across all the government and whether it's education, higher ed, healthcare, any of the DOD or other agencies, there's always some sort of digital experience that folks are having with the citizens that all the agencies and organizations are tryin' to support, and New Relic's right there, right there at the forefront of every one of those digital experiences. Everyone's running software that's modern software, or shifting to that with modern software running microservices, running containers, shifting to the cloud, and anyone deploying that type of software needs to have New Relic as part of their engagement to monitor what's happening at the citizen or the customer level, what's going on in the back end, on through the infrastructure. And New Relic, whether it's a large enterprise that we're out there, like Dunkin' Donuts or Dominos, monitoring their applications and their eCommerce sites, or it's an agency in the public sector space, you got to have New Relic as part of those engagements. >> So Scott, when AWS services first came out, 2006 timeframe, we looked at it, we said okay, this is the future, but as much as it potentially simplifies lives, it brings a lot of new complexities. So you know, Stu and I used to talk about, look, the AWS is awesome, we're big fans, but the ecosystem has to grow. Consultancies have to come out of the woodworks, and help customers really, adopt. So that's really exactly what's happened. I presume that's how Infiniti got started, maybe you could tell us a little bit about the company, and what your value is. >> Sure, thanks Dave, so Infiniti is a 15 year old company. We're originally founded in public sector IT consulting, and we realized several years ago that the world was changing and that we needed to make the shift from IT consulting to cloud services. And so we dove in headfirst with AWS, and we really tried to move to the top of the curve very quickly, and so we were a little bit ahead of our market in public sector, being a public sector focused organization, but we felt it was important to get ahead of the market because now the market really is smokin' hot. But we thought it was important that if we're going to move into the cloud, we wanted to move to the top of the curve, and deal with things like DevOps, migrations, even machine learning, predictive analytics, so we kind of pride ourselves on having some of the largest public sector contracts in the US, even though we're, right now, predominantly California based, California focused. >> And what's your head count? >> We're about a hundred people. >> I mean this is the thing, we're seeing this trend toward a lot of, you know, smaller specialists, are really doing super. Why is that, or how are you able to differentiate from these big global SIs that have tens of thousands, hundreds of thousands of employees, vertical expertise, why are you guys winning? >> Well, first of all, I think we're able to be nimble and shift our focus pretty quickly to serve our market, to serve our customers, I think more successfully. But one of the thing's that's changed when the cloud arrived, is the cloud really let smaller organizations like us, act like big organizations, so we didn't need to go deploy millions of dollars of capital to go set up a massive data center, we can build an environment on the fly, as you know, in the cloud, and we can have access to world-class platform tools like New Relic, and we can help a customer, a large customer, perform just as well as if we were a large multi-billion dollar services organization. >> Todd, one of the interesting things to talk to customers about is their journey, and where are they, and the cloud migration and how do they do this, reinvent? A year ago or two I heard there were like seven or nine ARS to get there, anything from the full refactoring and building cool new stuff with server lists and things like that, to just the re-platforming. Lift and shift, is that a good thing, isn't that? Walk us through how New Relic with Infiniti, how are you involved in some of those migrations? There's no typical customer, but give us some examples. >> Yeah absolutely, so Infiniti, just like many of the integrators that we work with are all delivering services generally in a couple different areas. One is typically a cloud adoption, or cloud migration practice. So working with Amazon, how do we get more and more of customer's workloads shifted to the cloud? Usually those projects are also going on with something in the refactoring world or application space. Usually they're also developing or shifting to some sort of DevOps practice, and that's also part of our sweet spot, what's happening in the application there, whether it's on the cloud yet or not, we're going to provide that visibility to that. And then the third piece is, there's usually something else happening with that, as I was mentioning before, the customer experience or the citizen experience, so what's the browser impact, what's the user experience on that, what's the, if it's on a mobile app, what's the user experience on there? So while Infiniti's delivering all those services for the clients, New Relic's part of all those services, so our whole model that we're tryin' to do with all of our partners is embed ourselves into all of those services, such that we can help Infiniti be more successful, deliver those projects on time, and really resolve any issues that may come up during those migration issues. >> Scott, I'd love to hear especially, I know I hear DevOps talked about a lot in New Relic's customers, is it pervasive around the agencies that you work with and please do add some color there too. >> So in the public sector, it's a range of readiness, but we're seeing a real wave building, we believe. We worked with New Relic on a very large DevOps, SysOps, very complex cloud services engagement, largest higher education cloud services engagement in the US, and in that case, just like Todd was referencing, when we implemented the migration of the legacy platform to the cloud, first of all we had to do, make choices around refactory, host, rearchitect and so forth, but then when we're managing that environment, and there's millions of users hitting that environment, we need to be able to make sure that we can monitor the application to make sure the application's performing well, and if there's an issue, we want to see the line of code that's causing the problem as quickly as possible so we can keep the environment up all the time. Even though public sector may not be driven by the same financials as say, commercial, they still expect to be up all the time. They still want to take advantage of the benefits of the cloud and so New Relic allows us to do that, but then, as we're looking at the users interface with the application environment, New Relic's browser and mobile, they let us monitor how that experience is going, and we can proactively get at the performance issues there that the application may not tell us, if there's an issue there. And then, we can do things like test middleware with synthetics and make sure that the whole environment's working, and then obviously on the infrastructure side, it lets us make sure that we're optimizing the environment for our clients. One of the cool thing is, when you in the past, you'd set up an EC2 instance, you may not see that you don't need as much CPU as you're using, and so you can size that appropriately, and allow your environment to still run at a high performance, 100% up time, but give them the cost efficiencies at the same time. So we use New Relic across board to help support the entire environment. >> I wonder if we could talk about the marketplace a little bit, generally and then specifically, the public sector? So Scott, I presume you're obviously public sector focused, but are you exclusive to AWS, no, you probably do some other stuff, is that right, is that fair? >> Well we are both AWS and Azure Gold, in terms of partner, but we do more of our work in AWS for sure. >> Okay, so we'll come back to that. And New Relic, of course you're a software company, so you want everybody to love your software, so if there's a cloud that a customer wants to use, you want your software to be on that cloud, fair enough? >> Sure, and also on PRIM, I mean a lot of our... >> On PRIM too. >> A lot of our applications we monitor are still on PRIM, and there's a tremendous amount of value there regardless of... >> I would just add, Infiniti is a trusted advisor, we like to see ourselves as a trusted advisor, so we do feel like we have to be multi-cloud and have an objective perspective. >> And New Relic is presumably the same way, I mean let the customers decide, so, and it's a hybrid world, folks, despite what Amazon wants, it's a hybrid world, and they even recognize that. My question is, there's a lot of discussion in the industry about Amazon as an infrastructure service provider and their lead or relative lead on the competition. It's our sense that there's still a lead there, what's your sense? >> Well AWS is still the leading cloud services provider in the marketplace. They lead in innovation, they lead in disruption, they lead in market share, they lead in so many metrics, and because they have that lead, and that's where we started, we've benefited from that, and we've invested heavily, and in the same way, we see New Relic, when we made a choice around who we were going to pick as a platform to support our customers, we wanted something that was cloud-born, didn't come out of on-premise and get sort of bootstrapped into the cloud, and we wanted something that was a complete platform. So New Relic was really a clear choice for us. It was not a, we looked at the entire market when we made that choice. >> So the narrative in the market used to be, oh, security in the cloud, now we hear the CIA say hey, security on the worst day in Amazon's cloud is way better than I ever saw with client server. It was a pretty powerful statement, so let's assume security, people are relatively comfortable with security these days, even though I'm sure there's still some issues with regard to corporate edicts, and flexibility, and audits, let's put that aside. SLAs is another big one. People often criticize the public cloud SLAs, and cost, oh it's so expensive, I can do it cheaper on PRIM. Are those myths, are those realities, is it a it depends? What's your sense? >> I mean they're all, they're all factors that all of our customers are looking into. I would say what we're hearing a lot about right now, is how do we help provide more visibility to everything that's happening, so if you've got a developer now that has the ability to write code, put it on any cloud they want, spin up containers, spin down containers, go try out server-less base of architectures, they've got a lot of flexibility to do what they want. Government agencies, as well as customers, one of the things they're looking for is what's actually happening? Who's doing what? The governance piece is a big piece and I think New Relic plays right into that in terms of helping control all that. One of the things that we're, is one of our sweet spots, is as you move to DevOps and a truly microservices architecture, one of the whole values of that is speed, keeping up with how fast the whole market is moving, and customers and agencies, what they want out of that, is to deploy applications where they're releasing multiple times a day. You have to have visibility into everything you're doing across the stack to be successful in that, and that's really New Relic's sweet spot in terms of doing that. So providing that visibility, instrumenting the applications in the infrastructure before, and then helping provide visibility to things like governance, things that other, not necessarily our sweet spot, but other companies in the industry are doing things throughout the DevOps life cycle in the governance realm, things like that. So we're part of that ecosystem that's helping Amazon and the other cloud providers be very successful, helping customers and agencies be very successful deploying modern applications. >> It's all about that visibility. >> Scott, one of the things, when we look at any rollout of new technology or migration, once it's up and running, then what, so wondering how your firm's involved in, you know, is there re-training, is there things go on, once this is in place, now what? >> Well Infiniti, what we found in public sector is that everybody wants to take advantage of the cost efficiencies and the benefits, and most public sector isn't going to reduce cost, they're just going to want to re-use cost more wisely. So some of the confusion around cost savings is that they're getting way more for their dollar in the future state, and the choices you have to make around how fast you want to get to the cloud, and what you want to get out of the cloud when you're there, those all effect the equation in terms of what you're actually outcomes are immediately and in the long term. So we often see that in public sector, some of the legacy applications, they may not naturally or easily move all at once, and so you have to make a choice, are you going to do some refactory and architecting before you get it there, are you going to get in the cloud now, and then do it afterwards. Either way, there's benefits, but you have to make choices about what, how you want to approach it. >> Yeah, when you talk about, after I've rolled this in, I've heard from some customers, they're like, after I've gotten a cloud, I love it, but I had to dedicate an engineer for financial architecting because there's all of these things we need to do. Are we still in that state? And once again, do you help with some of the training as to, okay, or is it plugging them into the Amazon ecosystem and how do they get certified and ready to use all of this. >> So Infiniti works with clients differently, we work with some in a more episodic, lighter capacity, and we work with some in a wholistic capacity where we are that engine for them, where we provide them the complete cloud services team to do everything from migrations, architecture, DevOps, SysOps, SecOps, machine learning and all the way through. And so when we're providing those services, we're doing those kind of things, we're making sure that the next improvement is worked into the architecture. Last year, the customer I was referencing earlier, we did just under a hundred releases, so that's a hundred releases that we're using the New Relic platform and our architectural solution, our solution architects, rather, to make sure that it's faultless, that the process is efficient, it's effective, it's secure, and that we're driving efficiencies wherever possible. So it really depends on what the customer wants. If the customer wants to hone the environment, they may have to go a little slower to account for their learning, their learning curve, and we'll help them, if that's what they want, but if they want to go faster, and they want to take advantage of our expertise, we make that available, and we're happy to do that. >> We had the former CTO of the NSA on yesterday, who now works for Accenture, and we were asking about sort of, federal versus commercial, are we sort of still taking, learning lessons from commercial and bringing it to federal, or is it because federal has so much interesting technology around analytics, does it go the other way, and he said, "it's funny, when you're on the inside, you think all the innovation is goin' on outside, now that I'm on the outside I say wow, there's a lot of interesting stuff going on in federal." We heard Teresa yesterday talk about Aurora, she talked about the VM wear partnership, so things that were announced a while ago and actually being adopted in commercial coming in to federal. So how does it work? Is it more of a two-way than it used to be 20 years ago and I wonder if you could comment? >> Yeah, from Infiniti's perspective, absolutely. We work with clients to understand the problems and where they want to get to, and then we innovate with them. You're pretty dependent on the subject matter expertise of the organization. I think our customers like that, they like that they're part of the solution, but then they need the expertise that we bring to create the next generation solution. We just created something in the higher ed space called, a college called Architecture Builder, and it was after teaming with a specific college, and working in that space for a long time, but we wanted to create a way for colleges to rapidly implement a complete architecture integrated with all the different things, including New Relic, quickly and successfully, and that was done in partnership with them, so we did the work, but we couldn't have done it without them. >> Todd, New Relic obviously, you're a believer, you drink the Koolaid every day. Why New Relic relative to the competition? How do you guys differentiate? Pitch me. >> So it's really all about being successful in that modern software space, again, as I've mentioned, and so New Relic is the only SAS only platform, so we're not going to put anything on PRIM. We've got ourselves one of the biggest and best DevOps team that develops our software, we roll code everyday, and our customers get the benefit of us being a pure SAS platform. Part of that is scalability. What we can do at scale is unbelievable. There was a customer that was just talked about on the news today that I can't mention, but they just went from basically zero to $100 million on an application just in the past 90 days. It's one of our customers and we've scaled, we have no problem scaling with customers that are doing things like that, and again, the full platform value that we have now, looking at everything from the front end on the browser and mobile applications, through the application, which is core to us, it's where we provide that code-level visibility, the ability to trace across all the different microservices that are happening, connected back to that infrastructure. That full platform now provides such tremendous value up and down the stack, but not only to the technology leaders but also to those folks that are business leaders, chief marketing officers, heads of practices at the consultants we work with, all these folks are all getting value out of New Relic. >> What would that customer who should not be named say about the value contribution of New Relic to that scale? >> The value's unbelievable. That's a commercial customer, but their business is taking off like so many of our customer's businesses are at an unbelievable scale. They can't be hamstrung by having to do a server upgrade, or having to go back, working with a release of code from a couple weeks ago, they have to be as fast as possible 'cause their business is moving so fast, their agencies are moving so fast, they need a provider that's going to provide that visibility to that at the speed with which they're moving. >> Awesome so, you got one more? >> No, we've got to run. >> Yeah, we've got to go. So this is the last question, so impressions of AWS Public Sector Summit? I presume you guys, like we did, had to register yesterday. There were some logistic issues, but other than that, maybe you could give us your last word on the summit? >> Well Infiniti is very committed to public sector, so we really enjoy coming to the Public Sector Summit. It's great to connect with our partners, like New Relic and others, and it's great to see the latest innovations coming out from AWS. >> Yeah and I've been to, I don't know, 10 or so summits around the world so far this year. It is unbelievable the excitement and the amount of people that are now excited about what's happening in the clouded option world, and Amazon's piece in that, and what's happening here in D.C. this week is no exception. >> I would second that. It's been a while since I've been at summits. Stu, you go all the time, and they are just exploding and growing, and this is one of the best that's out there. So thanks guys, for comin' on theCUBE, we really appreciate it. >> Thanks very much. >> Thank you for the opportunity. >> You're welcome. Alright, keep it right there everybody, Stu and I will be back with our next guest after this short break. John Furrier's here, you're watchin' theCUBE live, from AWS Public Sector Summit. We'll be right back. (upbeat music)