from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this breaking analysis this is Dave Volante and VMware announced yesterday its quarterly results and it also announced the acquisition of two companies pivotal which was the news was broken before of the earnings announcement but also carbon black a Walton Massachusetts based security company and you may be wondering what the hell is VM we are up to what are they doing and I want to sort of unpack that and explain it to you from my perspective so pivotal and carbon black are getting paid 2.7 billion and 2.1 billion dollar respectively is the value of those deals so VMware is paying an enterprise value to sales ratio of 3.8 and 7x respectively for pivotal and carbon black the motivation here in my view is really to clean up pivotal I'm going to explain that in a second and also to increase VMware's cloud multi cloud and recurring revenue contributions today the SAS business of VMware is only about 12% of the company's revenue so they want to increase that because they want to have a cloud like model and recurring revenue the challenge for a company like VMware who's largely based on perpetual license models upfront get paid for the whole license and then you do some maintenance is it's like a heroin injection you get the big rush of cash whereas with the recurring revenue model you're streaming out over and deferring it over a twelve or thirty six month or 24 month period and so the revenue impact is somewhat negative on the income statement and that's putting a little bit pressure on the stock but VMware management understands that that long term it's a much more predictable and attractive business model to be a SAS company than it is to be a traditional license based perpetual license based software company now the pivotal deal is somewhat complicated and of course when Michael Dell's involved we tend to have these complicated transactions as organization is very savvy in terms of from a financial standpoint we saw that remember when Michael Dell and Silverlake bought a EMC for 67 billion dollars they shelled out only only four billion dollars of their own cash now they took out a lot of debt but it was a very interesting and complicated financial transaction so part of this is cleaning up some of that transaction that all I'll explain in my opinion VMware is getting a pretty good deal for both pivotal and a decent deal for carbon black so so let me explain first of all Alex if you would bring up the the chart on pivotal let's take a look at it now you can see here you know pivotal did its IPO you know last year a when IPO is I think that we know close to a four billion dollar valuation and you can see the stock is not performed well subsequent to that it you know it was never able to get back to its IPO price it had a you know decent uptick you know in in March of this year as the market was running up and you can see the earnings miss in in the late spring early summer back in the June announcement date big hit there the company's been struggling in the marketplace you know it's got a lot of assets remember pivotal was originally put together as a collection of what I used to call misfit toys some of the EMC assets some of the VMware assets they put together at Palmer its you know created this entity to try to create a platform for application development Michael Dell saw this as an opportunity to take it public and actually you know create another asset in part of the Dell family but you can see here post June you know the the decline in the stock price and then you see the announcement from VMware or the rumor that came out actually was an announcement that came out in the press this week and the stock jumped over 70% on a day when the Dow dropped 800 points but you can see now the the today's price it was fourteen eighty eight when I took this snapshot about 50 cents on the dollar from the IPO price and so you can see that that VMware and Michael Dell are kind of doing the top cat they did the IP that pulled the coin back and now they're gonna repurchase the stock so kind of interesting but here's what the interesting part is VMware is only paying nine hundred million dollars in cash to the public shareholders how can that be so here's the deal vmware already owns about 15% of pivotal where dell owns about 70 percent of the company so what's happened l controls 95 percent of the voting shares which is why you know one of the reasons why this stock really never took off it's one of those one of those ownership structures and governance structures where you know a single individual really controls the stock so that often times keeps stock prices down but nonetheless Dells 70% is being exchanged for VMware stock for pivotal stocks that are owned by Dell so let me read you the statement Alex if you could bring up that statement from the earnings call this is from the VMware a CFO explaining the mechanics with regards to pivotal VMware has agreed to acquire a pivotal at a blended price per share of eleven dollars and 71 cents comprised of $15 per share in cash to public stockholders that's why the stock is trading at 14 dollars and 88 cents today and a little bit of arbitrage flowed in there and VMware's Class B common shares exchange for pivotal Class B common shares held by Dell technologies in an exchange rate of point zero five five VMware shares for each pivotal share the transaction has an excuse me enterprise value of 2.7 billion Dell technologies will receive approximately 7.2 million shares of VMware Class B common stock and now drew aggregate this results in an expected net cash payout for VMware of 0.8 billion I said I said point nine billion the impact of the equity issue to Dell technologies would increase its ownership stake in VMware by approximately 0.34 percentage points to a total of 81 0.09 percent based on the shares currently outstanding as it said VMware currently holds 15 percent of outstanding shares pivotal ones clothes will update blahblahblah so Michael Dell's buying VMware stock he's increasing his share of VMware which is also a kind of an interesting side note but now let's look at the pivotal fundamentals does this make strategic sense yes in my opinion why is that this is all about containers and it's all about next-generation application development for cloud it's also a hedge for VMware everybody said containers are gonna kill VMware well it's it's a hedge in the instance that that that containers start to impact VMware's traditional virtualization business now as I showed yesterday on the video where I was looking at ETR research there's no evidence today that it containers are slowing down the spending on VMware you deploy containers in many many ways certainly they're deployed in in bare metal and that's somewhat of a risk to a VMware but they're also they're also deployed on top of virtual machines on top of VMware so you know right now it's not been a negative for for VMware and by acquiring pivotal it can bring those synergies into the VMware mothership which is Dells a software mothership I call it and there's also synergies in sales and marketing and R&D and it kind of cleans up pivotal and consolidates the assets now let's look at carbon black this is a security play and it's really a different story than pivotal first you got to remember the Pat Gallagher told John Fourier in me several years ago in the cube that security is a do-over and I'll tell you right now Pat Gail singer and VMware are architecting a security do-over you've got on pram you've got hybrid you've got cloud you've got multi ply cloud traditional security models aren't gonna cut it so let's look at this clip by pat gyal singer and he'll it'll give you a sense of how he and VMware are thinking about the future watch this and we'll come back and talk about it Steve Herod on our Crouch at pre game on Friday with the hot opportunities are for startups he said security or mainly not getting caught at this perimeter basically what's your view on that well you know the krusty you know the hard crust the exterior and the soft gooey inside as I described it this morning my morning breakfast every day and you know with it right this whole idea of micro segmentation and nsx really redefines how you build networks and that's gonna allow us to refactor every aspect of security every aspect of routing and load balancing etc okay so what Pat was saying is he's talking about micro segmentation nsx the critical acquisition from nice Syrah refactoring security and everything security is a do-over okay Alex let's bring up the chart of carbon black I wanna I want to look at that and explain to our audience kind of what's going on there so you can see it's a it's a little bit of a different picture from from pivotal you've got that kind of bathtub look to it so you see at the IPO it was a hot company but it underperformed and and it was struggling there you know coming into at the end of last year and then into 2019 you could see it was kind of bouncing around at its lows and then what happened was you saw it earlier this year the company guided down so you can see that you know big drop after into February announced you big spike downwards they guided down the CFO resigned and there were several down grades from Wall Street analysts and that really crushed the stock but then you sort of bouncing back through May and then what happened is you know you had this growth company they've grown at 25 to 30% a year and they beat earnings estimates in May so they guide it down in in February but then they beat and you had a new CFO you just kind of had this new renewed emphasis on on the company and then this summer they hired morgan stanley and so the acquisition rumors started and that you can see you know into august it starts to pick up again so i have no doubt that this was a competitive bid of vmware wanted it so so here's another comment that i want to share with you from last year at VMworld and again it'll give you an additional insight as to how Pat Gallagher is thinking about the future go ahead and play the clip and then we'll come back what together into my application and in that sense the application is a network of these different services data sources etc and we believe in that you're bridging across silos isn't important it is essential to do that yeah because as you say security models across that you know how does the you know when that application isn't performing like I expect it to how do I go even debug it so think about what Pat said the application is a network of services services it's not as such it's not important it's essential that we deliver that in a consolidated model including security models okay so you got VMware looking to make its platform the place to run modern apps you got carbon black at 250 million dollar company trading at a discount of about 5.5 X revenue they got strong growth at the time but 25 to 30 percent of years it's consistent and then nearly 40 percent of its business is coming from the cloud and the cloud business is growing at 70 percent a year so VMware remember jettisoned its cloud business vCloud air but it still has a desire it covets participating in cloud at least in the form of multi cloud and on-prem cloud like experiences Carbon Black is a modern endpoint security company you heard John's question about the perimeter and you know you can't build moats anymore you you really endpoints are really the the new vulnerability especially when you start thinking about IOT so VMware is desirous of cloud revenue multi cloud and recurring revenue you got a growth company that's looking to sell they've got leading technology as I said this it was a competitive bid and VMware wanted it so now the other thing is VMware knows carbon black they've they've integrated carbon black into its app defense offering and VMware has been expanding its portfolio not so quietly lately app defense NSX has a you know with its micro segmentation is really a security use case AirWatch has a security component cloud choreo ee8 security was another acquisition bracket intrinsic was you know these little tuck-ins you sort of draw a picture of how Dell senior and VMware are starting to build out its portfolio again making vmware the software mothership security is a critical component of that it also gives VMware much more of a strategic entrance into the c-suite particularly with the chief information security officer we've talked many times on the cube that security is now a board level discussion to the extent that VMware can be the platform for multi cloud security and of course you know that's not assured right there battling cisco who's coming at it from a network position they're battling google who's coming you know announced anthos they're certainly battling Microsoft certainly IBM and Red Hat have similar designs and as we've said watch this space Amazon ultimately we think is going to get into this area but any rate VMware's making security a fundamental part of its platform it's bridging those silos is what what Pat Gayle singer talked about in the video and giving you access to sets of infrastructure so with pivotal it's building out you know in cloud native application development and and tooling container technology and that's clearly strategic to its multi cloud strategy helps VMware stay relevant VMware doesn't own a cloud so it's got to move fast and be first in this multi cloud space ok so let me summarize VMware's gonna spend 2.7 billion on two key acquisitions they're gonna add it's gonna add a billion dollars in two points of revenue growth that's largely in SAS and hybrid cloud and recurring revenue for VMware and three billion dollars in year two now let me do some Volante math for you VMware trades at about five to six times revenue so essentially they just added five to six billion dollars in market value in year one and by the way the stock is off eight percent today so because of these acquisitions so and it's got upside in my view assuming that you know there's not some big economic downturn but we're talking about 15 to 18 billion in market cap in year two so this acceleration VMware's transition to SATs ass it's a cash flow positive and the creative acquisitions in year two according to vmware vmware throws off nearly four billion dollars in annual and operating annually and operating cash flow to me this is a good use of cash balancing acquisitions and to continue growth and tuck in your ability to be that platform for cloud and multi cloud services and hybrid cloud is a good use of cash I like it better than stock buybacks frankly so a combination of stock buybacks organic Rd which VM was very strong engineering culture and acquisitions in this case using your stock as currency I like the deals we're gonna watch him very closely and we're gonna be talking about this this next week at vmworld so watch the cube at vmworld the cube net will be there myself john fourier stu minimun Jeff Rick the entire team celebrating our 10th year at vmworld if you have any questions on this or comments please tweet me at diva want a thanks for watching everybody we'll see you next week

from the VMware campus in Palo Alto California it's the Cuban covering women transforming technologies hi I'm Lisa Martin on the ground with the cube at VMware in Palo Alto at the third annual women transforming Technology event and we're here with a cube alumni Betsy Sutter SVP & chief people officer at V and we're so great to have you back on the cube thank you it's great to be here this is a very exciting day yes I love these types of events because you walk in and you just feel the sense of community and empowerment and and that's one of the great things that WT squared is in in and of itself its acronym of organizations that's right industry academia and nonprofits to help women connect learn from each other and support each other not just here in Silicon Valley but beyond and this is 30 annual this was sold out like within hours yes amazing amazing momentum that you guys have brought now to the third year great yeah we're really excited we're really excited and it's a new approach right it's creating as you said a consortium of companies to come together and just have real-time conversations about what's going on around gender equality and so yeah I'm really proud of this conference mostly because it just brings such a diverse set of people together men and women we have more men attending this year than ever before and so the conversations are just elevated they're fun yeah so you started at VMware when I was a startup with about a hundred people and here you were now managing this organization that of 20,000 people yeah big undertaking yeah talk to me about kind of the cultural change in shifts that you've seen and probably been able to drive from you know the last 15 years or so yeah you know the culture has been a pretty deliberate strategy from day one and I give the first CEO and founder Diane Greene a tremendous amount of credit for being really clear about what she wanted to build and she really wanted to build a sustainable company and a culture and she knew culture was the differentiator and even the current CEO today Pat Gallagher and I know that this is the single biggest differentiator that we can continue to strengthen in the company and then all the diversity inclusion and conversations are just part of that at this point in time but it was a deliberate regi plain and simple always keeping an eye on that and the values are at the core of that right and then the culture and the behavior reflect the values and so it's just been steadfast and stalwart on who we want to be over the past 20 years it's our 20th anniversary as a company and yeah I've been here for 17 of those but that's the work that I've really focused on it's been terrific that being deliberate is really key there yep so this third event inclusion in action is the theme yep how do you see that Bing how do you how do you live that and infiltrate that at VMware yeah well you know we are a company that has wanted to disrupt the tech space and so in order to do that we've had to stay focused on innovation innovation innovation and we really innovate in everything not just in our technology and our products but how we bring them to market how we support them but it also affects a lot of the work that I do in my space and in order to innovate you have to be inclusive of just a lot of different viewpoints and I like to say that we started out sort of in as an industrial research kind of company we were born out of Stanford a lot of computer science you know graduate students creating what we've now become and that's just been kind of the path is just collaboration even though we're 22,000 people now we still kind of take that approach to everything we do and speaking of Stanford big news out yes morning yeah gratulations thank you is investing 15 million dollars in a new women's leadership Innovation Lab that's right Danford that's amazing yeah we're thrilled we are so excited and Shelly Carell professor of sociology at Stanford we our partnership has been with Stanford since 2013 I think they've really helped us navigate everything that we've done in the inclusion and diversity space and so this is a new chapter and it's around women's leadership and it's around women's leadership and innovation and this lab I think is gonna reap some great results research based work is sort of at the heart and soul who we are right and so this is just more of that it's gonna be great to take progressive research groundbreaking research and put it into practice and so Shelley and I couldn't be more excited about what's next awesome well one of the interesting things is I was reading in the press release this morning that came out that according to McKinsey companies with diversity at the executive level 21 percent write more profitable that's right why aren't more companies even paying attention you know that that is a great question because most companies are about making money and wanting to be profitable yeah so it's it's perplexing that people aren't really honing in on what research is showing but you know suddenly it comes down to power and influence it's all about who has the power and who has the influence and so part of what we're doing with Stanford VMware Women's Leadership Innovation Lab is figuring out how to get women into more leadership positions and get them into more powerful and influential positions and that will be the thing that equalizes you know gender inequality so in the last six months we have had big movements me too yeah time's up yep growtopia there I'm Emily Chang published recently right how when you when you when that first came out with all the Harvey Weinstein stuff teachers say good we need to be able to get to leverage this moment and was that do you see that as being pulled into the tech industry and and helping to accelerate making this diversity change i I think things are getting accelerated and amplified because I think voices are being used and heard and I think there's a movement and I think women are coming together as a consortium around their gender and understanding that the real issues are around power and influence and tackling it head-on and the quality of the conversations around all of these movements is it's inspiring to me after spending 30 odd years in tech so I think things are really starting to change because women are using their voices yeah speaking of women using their voices you had Laila Ali as a keynote yeah that was so fantastic strong confident woman yeah who the daughter of Muhammad Ali who tried to talk her out of becoming a fighter right tried to - I love how she said he tried to actually kind of get me I think it was my idea to not go into it right so obviously a woman probably born with a lot of natural confidence but I loved how she kind of talked to all of us and said he sometimes that light goes out or its dimmed and I need to remind myself with you our best yeah so you probably see a good amount of females that have that sort of innate confidence that love engineering and I'm gonna do this how do you encourage those women to may be mentor some of the of the either younger or not other females who want to do something but are intimidated by you know maybe don't have that natural confidence how do you kind of facility at that empowerment yeah well I do think Leila's story is amazing and you know most importantly she's an entrepreneur and a businesswoman right I mean what she's done with her career with her foundation but what she's done with her career is most impressive and I love that digging deep and find that warrior from within yeah but I think for women today I think the difference is that we're able to have the conversation with each other and even with the opposite sex and I think companies are starting to understand that if you don't have diversity you're not going to have innovation and you're not going to win and most companies that I've worked for and VMware in particular we want to win we want to lead we want to disrupt and we want to impact the world and we want and need to make money as well but I think for women now the conversation is allowed I know that people are listening on both sides of the fence and we do a lot of VMware just to make sure that conversation is alive one of the things I'm really proud of it VMware and that I really believe is it's been the quality of the conversations since day one that have put us where we are in the world and in the industry and as a company and so the conversation shifting a little bit right we're talking more about this and it's those quality conversations that just keep it going and and that's sort of core to who we are so we'll just continue that trend and it's great being able to talk to the cube because you're allowing us to amplify the quality of the conversation so I'm grateful and we're happy to be a part of that so just just the about the event there are a number of tracks right also that was something that I was mentioned to you before we we started filming was I loved that when I walked in there was a jot yeah I love that and as well as a LinkedIn profile right resume clinic all of these you think minor things those can be really impact that's right if a woman has a great head challenge wow this is fantastic or somebody guiding her on what or what not to put on a LinkedIn profile just even providing some of these things that are foundational yep that's really huge it is really huge and it's also just a new platform for these conversations to continue whether it's just a visual because you're looking at my LinkedIn headshot or my Twitter feed or whatever it is but these are all really small things but matter really small things really matter yes and so building those up into people's psyches and their abilities is sort of what we're trying to do as part of the conference so in context of the third annual event the sold-out events and this great announcement of what VMware and Stanford are doing yeah what are some of those quick wins or exciting ones that you're looking forward to seeing the rest of 2018 yeah I think I love that question I think the key is continuing to join forces to continue to lock arms and continue the conversations and so a lot of what I love to do professionally and personally is create those platforms for people to do those kinds of things and that's what women transforming technology is about this year and has been about the last two years and I think we'll just continue to do that and people will tell us what we need to know and where we need to go awesome if you look back at your career would you have forecast your success being you know the chief people officer is c-level or would you yeah you know what was that yeah I met such that's it I'm just starting at this point in my career to really reflect on that no I never imagined having this amount of responsibility and privilege never in my wildest dreams it wasn't an aspirational goal I knew that I wanted as much influence as I could have to achieve results I'm a professional problem solver this is a pretty meaty problem that we're tackling but no I I didn't a dream it now I feel a huge amount of responsibility to start to talk about it I'm a I think I mentioned you I'm a behind-the-scenes kind of person I like to work back there understanding the problem diagnosing it coming up with a solution and then helping implement it but now it's time to kind of talk about what's happened and where we are and set course for the future with so many wonderful women last question for you yep because the attrition rate is so high for females in technology yeah what advice would you give to a woman who's on the cusp of leaving not to sort of family but just going I'm not sure I feel supported here what advice would you give her yeah I would give that person and I do give this advice on the right to go out and have lots of conversations and just start those conversations you just don't know what you don't know and I've had women come to me and at the end of 45 minutes to an hour tell me they're thinking about doing something else and it saddens me especially if they're at vmware because i don't want them to leave but go out and have those conversations and explore what's next don't be afraid of the conversation and sharing what's happening to you with you at your work and events like women transforming technology are only going to help continue to get more eyes and ears on every side of whatever gap we've got aware of this and help all of us become part of the solution that's right to accelerate diversity because as the data show companies could be far more profitable if they've got that thought diversity that's exactly right and it's just that simple but it's just that difficult exactly yeah it was that simple well Betsy thank you so much but a pleasure joining us and allowing us to be part of the voice and getting this away it's out there for women transforming technology as well as helping to hopefully empower and inspire all of the current and future generations yeah attack no I really appreciate you being here - thank you our pleasure yeah we want to thank you for watching the cube I'm Lisa Martin on the ground at women transforming Technology thanks for watching [Music]

hello everyone I'm John for with the cube we are here on the ground at VMware's corporate headquarters in beautiful Palo Alto for a special presentation I'm joined with Robyn Matlock who's the chief marketing officer of VMware good to see you hi John nice to see you to our special cube on the ground getting all the data was a lot closer to get to just a little walk yeah I love this campus you guys had the most amazing facility one that voted one of the best places to work so it's good parking is always a hassle play I'll ago that garage anyway um how are you doing great so 2016's come to a close had a great vacation I heard New Zealand amazon reinvent you guys had a big presence Pat Gelsinger was up on stage with Andy Jassy on a fireside chat keynote interesting world of that we live in as they say interesting times VMware and Amazon with a strategic relationship certainly has impacted the market market attention on VMware's cloud strategy now comes into picture how's that affecting how you guys are talking to customers you know I think it's just been a tremendous you know last several weeks and frankly of course we've been preparing for this for months and months but the market has been very responsive to the news of these two great companies coming together and the you know announced in 10 of how our technologies are going to work better and the feedbacks been so positive I think at the end of the day this just opens up many avenues for customers they love VMware they love Amazon helping make their experience as they integrate those worlds together is just a win-win for them so I person very excited about it and we're getting great feedback you know you you've always lived in this world with VMware and I always compare fiemme words like Facebook where whenever there's a changed is a revolt right as always it's always naysayers and also people complaining now when you guys did the deal with Amazon people are speculating but in reality it's the culture there's no clash there there's really a geek culture on both sides what's your thoughts on that do you see it the same way and what's your observation of you know the VMware culture because you know you do a lot of digging into the data you run vmworld is reinvent is being called a cloud version of vmworld kind of coming together those two cultures your thoughts on the two I mean I think there's a couple of different dimensions to that question from a cultural standpoint the two companies actually have very similar cultures in the sense that they really value engineering innovation these are disruptive companies and they also both I think we can say focus on the customer it's all about customer value customer impact and when you keep your customer at the forefront of all the decision-making that you do it's really easy to make the right choices because you're doing on the benefit of that customer and and hey change is a constant and that's the one thing we can count on and those of us in the industry that don't change usually don't have a great outcome in the end right changes part of delivering more value to our customers yeah Jay volante s2 I wasn't there at the Dell Dell world this year once at the Grace Hopper event was awesome awesome event but the dell event they asked Michael about vmware always we always like they ask michael dell vmware and also jeremy burton talked about the messaging around dell technologies which is simply just a holding company I guess I'm structure but the people are trying to get the message out on what Dell technologies and you guys out CR as Michael said the crown jewel of Dell technologies talk about the strategic alignment with Dell technologies how does that affect your job and has it affect the positioning of how vmware is visa videl technologies delhi MC but also your growing ecosystem sure so you know first of all we had a great relationship with Dell prior to this acquisition for you know well over a decade right so the two companies knew each other very well of course we have a rich history with emc you know for us strategically VMware's being run much like it was before it's an independent company michael has been very consistent about that his behavior is consistent his you know message of the market is consistent this message of customers and partners is consistent VMware remains an independent company our ecosystem is one of our crown jewels and Michael's been very consistent in making sure that that ecosystem is protected and knows that vmware is going to operate in the best interest of their customers and that ecosystem and so for us in a lot of ways it feels really comfortable of course we're looking for opportunity right we're looking for the upside and we are seeing tremendous opportunity with Dell technologies to make sure that our joint customers have a better together experience than ever before and we look at those as incremental opportunities and we're very committed to that but at the end of the day that's a really important part of our ecosystem is Dell technologies but it's not a replacement of you always had a good eye for marketing I see the way you guys do your events and vmware's ecosystem you're always tested people always going to hold your feet to the fire you had a very active community when you look at the changes that are going on with the Amazon we heard Pat Gelson around stage again Andy Jesse both reiterating the same ethos that you listen to customers and the customers are saying that they want to have some cloud the one put VMware in the cloud how is that gonna change how you mark it in position and talk to customers yeah well we you know we've been talking about hybrid cloud computing for a long time so you know for us this is really about how its evolving and becoming more tangible and more real you're probably very familiar with the fact that we've positioned our cross cloud architecture at vmworld and our story with Amazon is very supportive of what that whole architecture was about it's about hey I'm standing up a stack in my private you know datacenter and this is my private cloud and I want to run that stack as is in other cloud environments I want compatibility between the different cloud providers that I leverage and what I'm doing here within my firewall and that's all very consistent under our vision and strategy about this cross cloud architecture I mean for customers it shouldn't feel like very siloed separate experiences environments different tools different experiences different skill sets they should be able to leverage their resources to be able to deliver these workloads in whatever cloud environment they choose and that's really cornerstone to our cloud strategy and Amazon's a major option for customers to extend into the Amazon Cloud but we also have the IBM cloud that's available to them we have over 4,000 service providers that provide specialty cloud services that are available to our customers the whole idea is that we unify this and make this a seamless experience and that's what that crossed out architecture is all about that's a great point Sanjay poonen brought that up q But reinvent around connecting the digital Islands so how is that changing if anything or is it the game still the same on the digital transformation on those solutions is the unification cross cloud the fundamental piece of it is there more to the story what's the essence of this digital transformation yeah I mean I think first of all at the heart of digital transformation is software right that is enabling this kind of unified approach and so that's kind of one point the second point is really the value for customers in the end user is about applications and then the question is how do you deliver those apps in all types of apps right we need the new modern apps the stuff that works on our cell phones and our iPads we also need the ERP systems and the mission critical systems and all that needs to be delivered in a seamless experience what I T and enterprise need is more options about where to put those workloads what's the right place for those workloads based on whatever their requirements are geography service levels back up discovery you know disaster recovery whatever their requirements are they need flexibility but they also need control and governance and management in a really efficient way and so I think at the heart of it is how you deliver apps to users in a much more expedient fashion as we come down to the end of 2016 we're looking at 2017 what's the vibe internally at VMware and what's your outlook for 2017 now CVM world will be again a the big tent event not sure what your thoughts are that was probably working on right now but is there any thoughts can you share any color around how you guys see 2017 or what's the conversations between you jeremy burden the folks within the core teams around the outlook for 27 you know I think people are feeling really bullish on VMware we're exiting the year in a position of great strength it's been a great year from a revenue standpoint it's been a great year from a emerging technology standpoint we're getting critical mass in some of the you know smaller businesses like network virtualization and you know software-defined storage with virtual san and hyper converged infrastructure you're seeing a lot of great traction our customers are speaking that you know they're out on stage with us they're really advocating and evangelized and the value that they're getting from their VMware invest and you know the bottom line is is we're executing across the world we have really strong you know footprint across all the regions and everybody's performing so I feel like the momentum is really theme for theme emerging for 2017 that's sauteing around in your marketing brain in terms of what you might feel happening yeah you know John I'm not gonna debut that right here watching things up our sleeves but you know at the heart of it this notion of unifying clouds is gonna be centerpiece to our strategy in 2017 and we are working on some new interesting ways of packaging it that but the whole cross cloud architecture truly is a driving force for us in 2017 and how we keep delivering that to customers and new and fresh ways and our ecosystem as well making sure they can deliver that has anything about the Amazon of announcements on web service announcement because you had Pat Gallagher and Andy Jassy and that was really kind of a big shocker for everyone I think I mean you can get it now you look back but they both onstage and II Jesse never comes down to San Francisco to do a press event pretty big announcement for Amazon to stand on the stain stage as vmware and same for you guys this opens up a whole nother dimension any surprises anything that's changed in your world that you can share that's been positive or concerns or comments from customers that that this relationship has changed with you well I think you know what our Amazon relationship does is kind of solidify that our position in the cloud is you know very viable because at the end of the day these are the leader and private cloud and the leader in public cloud coming together to deliver more hybrid cloud value to our customers now remember we also had announcement with IBM earlier in the year and I think this is just kind of reiterating this notion that what we've done in the private cloud is very special adds a lot of value to customers but they want this in public cloud environments and the more that we can make that seamless and easy and consumable for our customers the more we can take the complexity out of it the easier it is for them to govern it you know the more value this is for customers obviously Amazon's the brand in public cloud and I think that relationship has just made everybody more relevant both VMware & M's I'm very customer centric to it turns out you guys operates not like a magical Doremi worked on it yeah what Sanjay and the team exactly well Robin thanks so much for come on our special on the ground here we are on the ground here the VMware head coach Robin Matlock the CMO of VMware here telling us her thoughts on 2017 looking back the momentum of 2016 I'm John furrier thanks for watching