>>Live from Las Vegas. It's theCUBE. Covering Fortinet Accelerate 18. Brought to you by Fortinet. >> Welcome to Fortinet Accelerate 2018. I'm Lisa Martin with theCUBE and we're excited to be here doing our second year of coverage of this longstanding event. My cohost for the day is Peter Burris; excited to be co-hosting with Peter again, and we're very excited to be joined by the CEO, Founder, and Chief Chairman of Fortinet, Ken Xie, Ken welcome back to theCUBE. >> Thank you, Lisa, thank you, Peter. Happy to be here. >> It's great to be here for us as well, and the title of your Keynote was Leading the Change in Security Transformation, but something as a marketer I geeked out on before that, was the tagline of the event, Strength in Numbers. You shared some fantastic numbers that I'm sure you're quite proud of. In 2017, $1.8 in billing, huge growth in customer acquisitions 17.8 thousand new customers acquired in 2017 alone, and you also shared that Forinet protects around 90% of the Global S&P 100. Great brands and logos you shared Apple, Coca Cola, Oracle. Tell us a little bit more and kind of as an extension of your Keynote, this strength in numbers that you must be very proud of. >> Yeah, I'm an engineer background, always liked the number, and not only we become much bigger company, we actually has 25 to 30% global employment in a network security space. That give a huge customer base and last year sales grow 19% and we keeping leading the space with a new product we just announced today. The FortiGate 6000 and also the FortiOS 6.0. So all this changing the landscape and like I said last year we believe the space is in a transition now, they've got a new generation infrastructure security, so we want to lead again. We started the company 18 years ago to get into we called a UTM network firewall space. We feel infrastructure security is very important now. And that we want to lead in the transition and lead in the change. >> So growth was a big theme or is a big theme. Some of the things that we're also interesting is another theme of really this evolution, this landscape I think you and Peter will probably get into more the technology, but give our viewers a little bit of an extension of what you shared in your keynote about the evolution. These three generations of internet and network security. >> Yeah, when I first start my network security career the first company I was study at Stanford University, I was in the 20s. It was very exciting is that a space keeping changing and grow very fast, that makes me keeping have to learning everyday and that I like. And then we start a company call Net Screen when it was early 30s, that's my second company. We call the first generation network security which secured a connection into the trust company environment and the Net Screens a leader, later being sold for $4 billion. Then starting in 2000, we see the space changing. Basically you only secure the connection, no longer enough. Just like a today you only validate yourself go to travel with a ticket no longer enough, they need to see what you carry, what's the what's the luggage has, right. So that's where we call them in application and content security they call the UTM firewall, that's how Fortinet started. That's the second generation starting replacing the first generation. But compared to 18 years ago, since change it again and nowadays the data no longer stay inside company, they go to the mobile device, they go to the cloud, they call auditive application go to the IoT is everywhere. So that's where the security also need to be changed and follow the important data secure the whole infrastructure. That's why keeping talking from last year this year is really the infrastructure security that secure fabric the starting get very important and we want to lead in this space again like we did 18 years ago starting Fortinet. >> Ken, I'd like to tie that, what you just talked about, back to this notion of strength in numbers. Clearly the bad guys that would do a company harm are many and varied and sometimes they actually work together. There's danger in numbers Fortinet is trying to pull together utilizing advanced technologies, new ways of using data and AI and pattern recognition and a lot of other things to counter effect that. What does that say about the nature of the relationships that Fortinet is going to have to have with its customers going forward? How is that evolving, the idea of a deeper sharing? What do you think? >> Actually, the good guy also started working together now. We formed the they call it the Cyber Threat Alliance, the CTA, and Fortinet is one of the founding company with the five other company including Palo Alto Network, Check Point and McAfee and also feel a Cisco, there's a few other company all working together now. We also have, we call, the Fabric-Ready Program which has 42 big partners including like IBM, Microsoft, Amazon, Google, all this bigger company because to defend the latest newest Fabric threat you have to be working together and that also protect the whole infrastructure. You also need a few company working together and it's a because on average every big enterprise they deploy 20 to 30 different products from different company. Management cost is number one, the highest cost in the big enterprise security space because you have to learn so many different products from so many different vendor, most of them competitor and now even working together, now communicate together. So that's where we want to change the landscape. We want to provide how infrastructure security can work better and not only partner together but also share the data, share the information, share the intelligence. >> So fundamentally there is the relationship is changing very dramatically as a way of countering the bad actors by having the good actors work more closely together and that drives a degree of collaboration coordination and a new sense of trust. But you also mentioned that the average enterprise is 20 to 30 fraud based security products. Every time you introduce a new product, you introduce some benefits you introduce some costs, potentially some new threat surfaces. How should enterprises think about what is too many, what is not enough when they start thinking about the partnerships that needed put together to sustain that secure profile? >> In order to have the best protection today you need to secure the whole infrastructure, the whole cyberspace. Network security still the biggest and also grow very fast and then there's the endpoint and there's a like a cloud security, there's a whole different application, email, web and all the other cloud all the other IoT. You really need to make sure all these different piece working together, communicate together and the best way is really, they have to have a single panel of our management service. They can look at them, they can make it integrate together they can automate together, because today's attack can happen within seconds when they get in the company network. It's very difficult for human to react on that. That's where how to integrate, how to automate, this different piece, that is so important. That's where the Fabric approach, the infrastructure approach get very important. Otherwise, you cannot react quick enough, in fact, to defend yourself in a current environment. On the other side for your question, how many vendor do you have, I feel the less the better. At least they have to work together. If they're not working together, will make it even more difficult to defend because each part they not communicate and not react and not automate will make the job very, very difficult and that's where all this working together and the less vendor they can all responsible for all your security it's better. So that's where we see some consolidation in the space. They do still have a lot of new company come up, like you mentioned, there's close to 2,000 separate security company. A lot of them try to address the point solution. I mentioned there's a four different level engineer after engineer work there because I see 90% company they do the detection. There's a certain application you can detect the intrusion and then the next level is where they after you attack what are going to do about it. Is it really the prevention setting kick in automatic pull out the bad actor. After that, then you need to go to the integration because there's so many different products, so many different piece you need to working together, that's the integration. Eventually the performance and cost. Because security on average still cost 100 times more expensive under same traffic and also much slower compared to the routing switch in networking device. That's what the performance cost. Also starting in the highest level, that's also very difficult to handle. >> So, we're just enough to start with the idea of data integration, secure data integration amongst the security platform, so enough to do as little as possible, as few as possible to do that, but enough to cover all the infrastructure. >> Yes, because the data is all a whole different structure. You no longer does have to trust environment. Because even inside the company, there's so many different way you can access to the outside, whether it by your mobile device so there's a multiple way you can connect on the internet and today in the enterprise 90% connection goes to Wi-Fi now it's not goes to a wired network, that's also difficult to manage. So that's where we will hide it together and make it all working together it's very important. >> So, in the spirit of collaboration, collaborating with vendors. When you're talking with enterprises that have this myriad security solutions in place now, how are they helping to guide and really impact Fortinet's technologies to help them succeed. What's that kind of customer collaboration like, I know you meet with a lot of customers, how are they helping to influence the leading security technologies you deliver? >> We always want to listen the customer. They have the highest priority, they gave us the best feedback. Like the presentation they talked about there's a case from Olerica which is where they have a lot of branch office and they want to use in the latest technology and networking technology, SD-WAN. Are working together with security, that's ready the new trend and how to make sure they have all the availability, they have the flexibility software-defined networking there and also make sure to security also there to handle the customer data, that's all very important so that's what we work very closely with customer to response what they need. That's where I'm still very proud to be no longer kind of engineer anymore but will still try to build in an engineer technology company. Listen to the customer react quick because to handle security space, cyber security, internet security, you have to work to quickly react for the change, on internet, on application. So that's where follow the customer and give them the quick best solution it's very very important. >> On the customer side in Anaemia we talked about that was talked a little bit about this morning with GDPR are is around the corner, May 2018. Do you see your work coordinates work with customers in Anaemia as potentially being, kind of, leading-edge to help customers in the Americas and Asia-Pacific be more prepared for different types of compliance regulations? >> We see the GDPR as an additional opportunity, as a additional complement solution compared to all the new product technology would come up. They definitely gave us an additional business rate, additional opportunity, to really help customer protect the data, make the data stay in their own environment and the same time, internet is a very global thing, and how to make sure different country, different region, working together is also very important. I think it's a GDPR is a great opportunity to keeping expanding a security space and make it safer for the consumer for the end-user. >> So Ken as CEO Fortinet or a CEO was tough act, but as CEO you have to be worried about the security of your business and as a security company you're as much attacked, if not more attacked than a lot of other people because getting to your stuff would allow folks to get to a lot of other stuff. How do you regard the Fortinet capabilities inside Fortinet capability as providing you a source of differentiation in the technology industry? >> Yeah we keep security in mind as the highest priority within a company. That's where we develop a lot of product, we also internally use tests first. You can see from endpoint, the network side, the email, to the web, to the Wi-Fi access, to the cloud, to the IoT, it's all developing internally, it tests internally so the infrastructure security actually give you multiple layer protection. No longer just have one single firewall, you pass the fire were all open up. It's really multiple layer, like a rather the ransomware or something they had to pass multiple layer protection in order to really reach the data there. So that's where we see the infrastructure security with all different products and developed together, engineer working together is very important. And we also have were strong engineer and also we call the IT security team lead by Phil Cauld, I think you are being interview him later and he has a great team and a great experience in NSA for about 30 years, secure country. And that's where we leverage the best people, the best technology to provide the best security. Not only the portal side, also our own the internal security in this space. >> So, in the last minute or so that we have here, one of the things that Patrice Perce your global sales leader said during his keynote this morning was that security transformation, this is the year for it. So, in a minute or so, kind of what are some of the things besides fueling security transformation for your customers do you see as priorities and an exciting futures this year for Fortinet, including you talked about IoT, that's a $9 billion opportunity. You mentioned the securing the connected car to a very cool car in there, what are some of the things that are exciting to you as the leader of this company in 2018? >> We host some basic technology, not another company has. Like a built in security for a single chip. I also mentioned like some other bigger company, like a Google started building a TPU for the cloud computing and Nvidia the GPU. So we actually saw this vision 18 years ago when we start a company and the combine the best hardware and best technology with solve for all this service together. So, long term you will see the huge benefit and that's also like translate into today you can see all these technology enable us to really provide a better service to the customer to the partner and we all starting benefit for all this investment right now. >> Well Ken, thank you so much for joining us back on theCUBE. It's our pleasure to be here at the 16th year of the event, our second time here. Thanks for sharing your insight and we're looking forward to a great show. >> Thank you, great questions, it's the best platform to really promoting the technology, promoting the infrastructure security, thank you very much. >> Likewise, we like to hear that. For my co-host Peter Burris, I'm Lisa Martin, we are coming to you from Fortinet Accelerate 2018. Thanks for watching, stick around we have great content coming up.

>> (Narrator) Live from Las Vegas. It's theCUBE. Covering Fortinet Accelerate 18. Brought to you by Fortinet. >> Welcome to Fortinet Accelerate 2018. I'm Lisa Martin with theCUBE and we're excited to be here doing our second year of coverage of this longstanding event. My cohost for the day is Peter Burris; excited to be co-hosting with Peter again, and we're very excited to be joined by the CEO, Founder, and Chief Chairman of Fortinet, Ken Xie, Ken welcome back to theCUBE. >> Thank you, Lisa, thank you, Peter. Happy to be here. >> It's great to be here for us as well, and the title of your Keynote was Leading the Change in Security Transformation, but something as a marketer I geeked out on before that, was the tagline of the event, Strength in Numbers. You shared some fantastic numbers that I'm sure you're quite proud of. In 207, $1.8 in billing, huge growth in customer acquisitions 17.8 thousand new customers acquired in 2017 alone, and you also shared that Forinet protects around 90% of the Global S&P 100. Great brands and logos you shared Apple, Coca Cola, Oracle. Tell us a little bit more and kind of as an extension of your Keynote, this strength in numbers that you must be very proud of. >> Yeah, I'm an engineer background, always liked the number, and not only we become much bigger company, we actually has 25 to 30% global employment in a network security space. That give a huge customer base and last year sales grow 19% and we keeping leading the space with a new port out we just announced today. The FortiGate 6000 and also the FortiOS 6.0. So all this changing in the landscape and like I said last year we believe the space is in a transition now, they've got a new generation infrastructure security, so we want to lead again. We started the company 18 years ago to get into we called a UTM network firewall space. We feel infrastructure security is very important now. And that we want to lead in the transition and lead in the change. >> So growth was a big theme or is a big theme. Some of the things that we're also interesting is another theme of really this evolution, this landscape I think you and Peter will probably get into more the technology, but give our viewers a little bit of an extension of what you shared in your keynote about the evolution. These three generations of internet and network security. >> Yeah, when I first start my network security career the first company I was study at Stanford University, I was in the 20s. It was very exciting is that a space keeping changing and grow very fast, that makes me keeping have to learning everyday and that I like. And then we start a company call Net Screen when it was early 30s, that's my second company. We call the first generation network security which secured a connection into the trust company environment and the Net Screens a leader, later being sold for $4 billion. Then starting in 2000, we see the space changing. Basically you only secure the connection, no longer enough. Just like a today you only validate yourself go to travel with a ticket no longer enough, they need to see what you carry, what's the what's the luggage has, right. So that's where we call them in application and content security they call the UTM firewall, that's how Fortinet started. That's the second generation starting replacing the first generation. But compared to 18 years ago, since change it again and nowadays the data no longer stay inside company, they go to the mobile device, they go to the cloud, they call auditive application go to the IoT is everywhere. So that's where the security also need to be changed and follow the important data secure the whole infrastructure. That's why keeping talking from last year this year is really the infrastructure security that secure fabric the starting get very important and we want to lead in this space again like we did 18 years ago starting Fortinet. >> Ken, I'd like to tie that, what you just talked about, back to this notion of strength in numbers. Clearly the bad guys that would do a company harm are many and varied and sometimes they actually work together. There's danger in numbers Fortinet is trying to pull together utilizing advanced technologies, new ways of using data and AI and pattern recognition and a lot of other things to counter effect that. What does that say about the nature of the relationships that Fortinet is going to have to have with its customers going forward? How is that evolving, the idea of a deeper sharing? What do you think? >> Actually, the good guy also started working together now. We formed the they call it the Cyber Threat Alliance, the CTA, and Fortinet is one of the founding company with the five other company including Palo Alto Network, Check Point and McAfee and also feel a Cisco, there's a few other company all working together now. We also have, we call, the Fabric-Ready Program which has a 42 bigger partner including like IBM, Microsoft, Amazon, Google, all this bigger company because to defend the latest newest Fabric threat you have to be working together and that also protect the whole infrastructure. You also need a few company working together and it's a because on average every big enterprise they deploy 20 to 30 different products from different company. Management cost is number one, the highest cost in the big enterprise security space because you have to learn so many different products from so many different vendor, most of them competitor and now even working together, now communicate together. So that's where we want to change the landscape. We want to provide how infrastructure security can work better and not only partner together but also share the data, share the information, share the intelligence. >> So fundamentally there is the relationship is changing very dramatically as a way of countering the bad actors by having the good actors work more closely together and that drives a degree of collaboration coordination and a new sense of trust. But you also mentioned that the average enterprise is 20 to 30 fraud based security products. Every time you introduce a new product, you introduce some benefits you introduce some costs, potentially some new threat surfaces. How should enterprises think about what is too many, what is not enough when they start thinking about the partnerships that needed put together to sustain that secure profile? >> In order to have the best protection today you need to secure the whole infrastructure, the whole cyberspace. Network security still the biggest and also grow very fast and then there's the endpoint and there's a like a cloud security, there's a whole different application, email, web and all the other cloud all the other IoT. You really need to make sure all these different piece working together, communicate together and the best way is really, they have to have a single panel of our management service. They can look at them, they can make it integrate together they can automate together, because today's attack can happen within seconds when they get in the company network. It's very difficult for human to react on that. That's where how to integrate, how to automate, this different piece, that is so important. That's where the Fabric approach, the infrastructure approach get very important. Otherwise, you cannot react quick enough, in fact, to defend yourself in a current environment. On the other side for your question, how many vendor do you have, I feel the less the better. At least they have to work together. If they're not working together, will make it even more difficult to defend because each part they not communicate and not react and not automate will make the job very, very difficult and that's where all this working together and the less vendor they can all responsible for all your security it's better. So that's where we see some consolidation in the space. They do still have a lot of new company come up, like you mentioned, there's close to 2,000 separate security company. A lot of them try to address the point solution. I mentioned there's a four different level engineer after engineer work there because I see 90% company they do the detection. There's a certain application you can detect the intrusion and then the next level is where they after you attack what are going to do about it. Is it really the prevention setting kick in automatic pull out the bad actor. After that, then you need to go to the integration because there's so many different products, so many different piece you need to working together, that's the integration. Eventually the performance and cost. Because security on average still cost 100 times more expensive under same traffic and also much slower compared to the routing switch in networking device. That's what the performance cost. Also starting in the highest level, that's also very difficult to handle. >> So, we're just enough to start with the idea of data integration, secure data integration amongst the security platform, so enough to do as little as possible, as few as possible to do that, but enough to cover all the infrastructure. >> Yes, because the data is all a whole different structure. You no longer does have to trust environment. Because even inside the company, there's so many different way you can access to the outside, whether it by your mobile device so there's a multiple way you can connect on the internet and today in the enterprise 90% connection goes to Wi-Fi now it's not goes to a wired network, that's also difficult to manage. So that's where we will hide it together and make it all working together it's very important. >> So, in the spirit of collaboration, collaborating with vendors. When you're talking with enterprises that have this myriad security solutions in place now, how are they helping to guide and really impact Fortinet's technologies to help them succeed. What's that kind of customer collaboration like, I know you meet with a lot of customers, how are they helping to influence the leading security technologies you deliver? >> We always want to listen the customer. They have the highest priority, they gave us the best feedback. Like the presentation they talked about there's a case from Olerica which is where they have a lot of branch office and they want to use in the latest technology and networking technology. I see when I'm working together with security, that's ready the new trend and how to make sure they have all the availability, they have the flexibility software-defined networking there and also make sure to security also there to handle the customer data, that's all very important so that's what we work very closely with customer to response what they need. That's where I'm still very proud to be no longer kind of engineer anymore but will still try to build in an engineer technology company. Lesson to the customer react quick because to handle security space, cyber security, internet security, you have to be work quickly react for the change, on internet, on application. So that's where follow the customer and give them the quick best solution it's very very important. On the customer side in Anaemia we talked about that was talked a little bit about this morning with GDPR are is around the corner, May 2018. Do you see your work coordinates work with customers in Anaemia as potentially being, kind of, leading-edge to help customers in the Americas and Asia-Pacific be more prepared for different types of compliance regulations? >> We see the GDPR as an additional opportunity, as a additional complement solution compared to all the new product technology would come up. They definitely gave us an additional business rate, additional opportunity, to really help customer protect the data, make the data stay in their own environment and the same time, internet is a very global thing, and how to make sure different country, different region, working together is also very important. I think it's a GDPR is a great opportunity to keeping expanding a security space and make it safer for the consumer for the end-user. >> So Ken as CEO Fortinet or a CEO was tough act, but as CEO you have to be worried about the security of your business and as a security company you're as much attacked, if not more attacked than a lot of other people because getting to your stuff would allow folks to get to a lot of other stuff. How do you regard the Fortinet capabilities inside Fortinet capability as providing you a source of differentiation in the technology industry? >> Yeah we keep security in mind as the highest priority within a company. That's where we develop a lot of product, we also internally use tests first. You can see from endpoint, the network side, the email, to the web, to the Wi-Fi access, to the cloud, to the IoT, it's all developing internally, it tests internally so the infrastructure security actually give you multiple layer protection. No longer just have one single firewall, you pass the fire were all open up. It's really multiple layer, like a rather the ransomware or something they had to pass multiple layer protection in order to really reach the data there. So that's where we see the infrastructure security with all different products and developed together, engineer working together is very important. And we also have were strong engineer and also we call the IT security team lead by Phil Cauld, I think you are being interview him later and he has a great team and a great experience in NSA for about 30 years, secure country. And that's where we leverage the best people, the best technology to provide the best security. Not only the portal side, also our own the internal security in this space. >> So, in the last minute or so that we have here, one of the things that Patrice Perce your global sales leader said during his keynote this morning was that security transformation, this is the year for it. So, in a minute or so, kind of what are some of the things besides fueling security transformation for your customers do you see as priorities and an exciting futures this year for Fortinet, including you talked about IoT, that's a $9 billion opportunity. You mentioned the securing the connected car to a very cool car in there, what are some of the things that are exciting to you as the leader of this company in 2018? >> We host some basic technology, not another company has. Like a built in security for a single chip. I also mentioned like some other bigger company, like a Google started building a TPU for the cloud computing and Nvidia the GPU. So we actually saw this vision 18 years ago when we start a company and the combine the best hardware and best technology with solve for all this service together. So, long term you will see the huge benefit and that's also like translate into today you can see all these technology enable us to really provide a better service to the customer to the partner and we all starting benefit for all this investment right now. >> Well Ken, thank you so much for joining us back on theCUBE. It's our pleasure to be here at the 16th year of the event, our second time here. Thanks for sharing your insight and we're looking forward to a great show. >> Thank you, great questions, it's the best platform to really promoting the technology, promoting the infrastructure security, thank you very much. >> Likewise, we like to hear that. For my co-host Peter Burris, I'm Lisa Martin, we are coming to you from Fortinet Accelerate 2018. Thanks for watching, stick around we have great content coming up.