>> Viewers of our breaking analysis series know that we've been following the developments in cybersecurity for a number of years and of course, throughout the pandemic. Focusing on the permanent shifts that we see in cyber from remote work, distributed computing and technology advancements. We've reported how the adversaries are highly capable they're well-funded and they're motivated. And how they're constantly upping their game on defenders, island hopping, stealthily living off the land, planting self forming malware at various points in the digital supply chain, offering advanced ransomware as a service of the dark web to any disreputable individual with or without a high school diploma that may have access to a server and is brazen enough to steal from their company. We've also shared this chart from Optiv many, many times, it's a taxonomy of the cybersecurity landscape, and it is meant to make your eyes bleed, ask any CSO and they'll tell you they're drowning in fragmented tooling, technical debt, and their number one challenge is lack of talent. Not that their people aren't capable, they are, but CSOs just don't have enough of them. They can't hire fast enough or they can't retain qualified people with the talent war that's going on. Or they can't train people fast enough, or they just don't have the budget. Hello everyone, this is Dave Vellante and welcome to this video exclusive with Nick Schneider, president and CEO of Arctic Wolf Networks, Nick, so good to see you. Thanks for coming on the cube. >> Thanks for having me, Dave. >> That's our pleasure. So Arctic Wolf networks, let's talk about the company, the problem, you heard my little narrative upfront. What are you guys all about? >> Yeah, so at its core, we're a cybersecurity technology company. You know, it's our belief that we've really pioneered the first full scale cloud native security operations platform and at its core, what we're trying to do as a business is make security operations something that's fast, easy and economical for really a company of any size and scale to implement with really two key components, one we're agnostic to the technology and the landscape of the technology that they have already implemented within their environment, and two, we can feather into really any organization, regardless of the skill set they have from a cybersecurity standpoint in house. And really the problem that we're setting out to solve, I think you illustrated well at the beginning of the show here is that it's our belief that the cybersecurity industry in a sense has failed the end user or failed the customer by throwing, you know, a myriad of different tools at them. And it's really, you know, our mission here as a company to end cyber risk. And it's our belief that through the cloud native platform that we've bought in the cybersecurity security operations cloud that we've built, that we can deliver the outcomes that have been promised over time to these customers, which at the end of the day, is really just to be safe and have their customer and have their business protected. >> So you guys are the experts. You can kind of provide a white glove service that essentially plugs in to my business. Is that right? And how easy is that to do, what do I have to do to, to set it up? How complicated is that for me, the customer? >> Yeah, so it's, it's very straightforward. We can implement our security operations platform, you know, in as short as a week and generally speaking, you know, about a month and we plug in really to the infrastructure that the customer has in place. And for some of our customers, that's very little and for some of our customers, most of our customers, that's quite a bit of technology. And the beauty of the way that we've built the platform is that we're really agnostic to that tech. So, we can take feeds from kind of any technology that are in place, that helps to augment the platform that we've built. And then we feather in kind of the technologies that we've built within the platform, into their existing infrastructure. And at the end of the day, what we're trying to do is give the customer visibility, you know, into the tools that they have, the gaps that they might have as a result of the tools, you know, in some cases, the duplication of efforts that they have, you know, between these tools and then deliver a security outcome or a protection that maybe they haven't otherwise felt as a business. And then outside of kind of the technology platform, we add what we call our concierge security team as a layer to the deliverable that we give to the customer. And why that's important is that not all customers are created equal and with regard to the skillset that they have in house, in that that concierge security platform allows us to kind of work with a customer at any kind of, you know, point along their security journey, regardless of the in-house technology talent that they have. >> Now, so I got to ask you, our largest footprint for the cube is in the heart of Silicon Valley. We love the valley, but I also love stories of high growth companies that are outside of Silicon Valley. You guys are in the Midwest in Minnesota, it's got some Compellent DNA in there. And I remember my, so my business friends, Phil Soren, and Larry Yasmin, you know them, Phil used to tell me, Dave, this is actually an advantage for us to be in the middle of the part of the country. There's a talent war going on, which back then was a lot less than it is today, even. So how do you see that? Are there advantages to you and being in that part of the country, or does it not matter because you're so distributed around the world? >> Yeah, I mean, I would follow a similar tune to Phil, right. I, you know, obviously worked at Compellent early and, you know, historically I've worked at other Minneapolis based technology companies and the reality is there's a really strong technology ecosystem in Minneapolis. And a lot of the, of the talent, you know, is not just in sales and marketing or just on the technical side, but it's in building high growth technology companies kind of from the ground up into, you know, large scale. And now we've seen not only the fortune 500 kind of base that we have here in Minneapolis, but also a growing contingency of larger technology companies using Minneapolis as at least, you know, one of the spokes against their hub, if not the hub themselves. And clearly my pedigree in history was out of Minneapolis based tech, you know, and I've moved to other locations throughout the country, but as we started to build out, you know, Arctic Wolf and what we wanted Artic Wolf's culture to look like, and as we started to lay out the foundation for what we wanted our growth to look like, it became very clear to myself, you know, our chairman and co-founder Brian Nesmith, that Minneapolis would be a great home for us as Arctic Wolf. And then we would continue to invest in some of the locations that we have, you know, both across the country and now across the globe. >> So there are a lot of companies that are doing managed security services, but if I got it right, you guys specifically target smaller and midsize companies, is that correct? And why is that? >> Yeah, so I would say that that would be correct as of a few years ago, the dynamic has changed quite a bit. And I think it's a result of the dynamic of the market. First and foremost, we are a technology company. We have this concierge layer on top, which is really what the customers are looking for, but it's all powered by the platform. So the platform kind of allows us to do what we've done as a business, into both small organizations, which is, you know, where we probably got our start, but over the last few years, we've seen tremendous growth up market, you know, so for example, we as a business have grown, you know, over a hundred percent now for eight years in a row and now on a much larger denominator, but our upmarket business is growing at four to 500%. And I think that's a result of really two things. I think, A, customers of that size and scale have realized that cyber security and cybersecurity operations as a problem is something that's really hard to accomplish in-house regardless of your size and complexity. And then two, I think what happened over the past year, year and a half is that we saw a lot of organizations move from a centralized I.T or a centralized, you know, security function where they could all operate within an office and all operate in a centralized environment, all of a sudden becoming very disparate in their geography. And that led to a lot more interest in what we did with larger customers, because we could deploy a security operation effectively, remotely in a really short amount of time. And we could do it more effectively and economically than, than they could do on their own. And then we also solve for a component of the human aspect of what a security operation means, right. And what I mean by that is these larger organizations can take their highly skilled cybersecurity talent and focus them on the strategic initiatives within the company. Whereas a lot of the security work or risk is in kind of the day to day, right? The dieting that takes place within an organization. And that's where a lot of the breaches take place is in making sure that you're actually paying attention to, you know, the alerts that you're getting and paying attention to the telemetry and the tools that you've made investments in. And we augment that portion of a cybersecurity operation really, really well for larger organizations and for smaller organizations, we are that security operation. So it's kind of dependent on the way in which they're set up. >> Okay. So it's a mix of both well augmenting, and basically you take the whole thing and so, so your ideal customer profile, your ICP is anybody with a security problem. I mean, that's everybody, well, maybe you could describe paint a picture of your perfect customer, if you would. >> Yeah, so, and you, I know you said that somewhat jokingly, but it, but it is true. We have customers of all sizes, you know, so I, I bet our smallest customer is under 10 employees. Our largest customer is over 50,000 employees. We have customers in every vertical of the market, you know, mostly centralized in healthcare, financial organizations, manufacturing, but, you know, the largest swath of customers by industry would probably not top 10%. So, we service really any account that's looking to develop and invest in a security operation and has the support of their organization and the support of their board and their leadership teams to make that investment. And then where we, where we fall within the account is really dependent on the way in which their current operation is set up. And certainly, you know, the massive organizations that have, you know, 50 people within their cybersecurity team, and they have a hundred different tools. They're probably not the best target for us, but if they have security awareness, if they have a security as a top need or a top priority within their business, and they're looking for a way to build out a true security operation within their account, whether that be wholesale through a third-party or in part through a third-party, we're a perfect fit for all those accounts, which makes our addressable market massive. >> Yeah, so what's unique about you guys, I mean, this may be not the right analogy, but you're kind of like the easy button for cyber. I mean, there's nothing easy about cyber., I get that, but you, you do make it easy, especially for companies that don't have any cyber expertise to engage and get up to speed fast, and certainly be more protected. That's one aspect of your uniqueness. The other is, I think, is your tech stack. I'm hearing, you've got a platform. I know you're focused on network detection and fast response. Maybe you could talk a little bit about what's unique about Arctic Wolf. >> Yeah, so the platform itself is really what we founded the company on. So we spent the first few years of our organization in really building out this cloud scale, multitenant cloud, native platform, understanding that the volume of data and the amount of sophistication that we would need to deliver the security operation in the long run was going to be massive. So the platforms really kind of, you know, set on a few different founding principles. One, the platform needs to work for any organization regardless of their size, regardless of their underlying tech and regardless of the skill set within their account. And that's really important. A lot of the tools in the market today require certain things of the, of the customer. And it's our premise, regardless of the customer that we won't require anything from the customers themselves. It's up to them to tell us which portions of the experience they want to own, verse Artic Wolf owning. The second would be that we need to be able to ingest a vast amount of data, and we need to be able to make intelligent decisions with that data, in a short amount of time. And as we've built out our machine learning and our AR algorithms, what we've been able to do is leverage a tool set that allows us to ingest. I think we're up to now 1.5 approaching 2 trillion observations a week, right. Which might equate to a few hundred alerts within our SOC on a per customer basis. But we're only bringing one or two things to a customer on a weekly basis that really need attention. And that's all about the platform kind of curating, cultivating the vast amount of data that we've brought into it. And then, how do we explain and how do we sell that platform with this concierge later into the customer base is also important. And we've done that through what we call modules. So we kind of founded the company on MDR managed detection and response, but we are not a managed detection and response company. It's one of our modules. We've then added manage risk, which competes kind of in the vulnerability management space. We've added a SAS and IAS monitoring, which is really cloud security. We've added what we call log search, which is really our first foray into collaboration. And then we just recently launched a quarter ago, what we call managed security awareness training, which is, you know, training the human aspect of the company on the threats of cybersecurity. And we actually just announced another acquisition in the managed security space today with habituate, which is going to give us, you know, kind of a Hollywood style approach to content within managed awareness training. But tying all those together is very unique in the market. So generally speaking, you'll see a company focused on a specific attack surface, or a specific threat. And what we're trying to say is, look, you're not a hundred percent protected as a business, or you don't have a robust security operation unless you're bringing together all aspects of cybersecurity under one umbrella. And that's really our goal as a company. >> Okay. So you got all these different modules and you may not want to go here cause you're in the cyber business and you're, you're prudently secretive, but, but I'm interested in kind of what's underneath. I presume you're using best of breed tooling underneath, but unlike, you know, the hosting company of the past or those, you know, a big, you know, integrator who could do this, but they've got one of everything and it's sort of, kind of a mess. You're building a scalable business, but you're not, you're not developing, you know, best of breed, identity access products for the marketplace. You're I presume you're buying those in integrating them and working through whatever APIs and making it all work across your stack. Can you talk a little bit about your tech stack? >> Yeah, so the technology stack has been built from the ground up by Arctic Wolf. So certainly we're using, you know, various technologies or open source technologies from within the ecosystem, but the technology and the platform itself is Arctic Wolf. So we're not beholden to any third parties for what we deliver to the customer. And that makes us very nimble in a few areas. One, it makes us very nimble in the way that we price the solution to the customer, which for us is a very predictable model. And then two, it allows us to be nimble with customer needs as to what they want from us, both of the existing modules that we have, but also additional modules or, you know, additional solutions that we might bring to the market. So a lot of vendors that have historically kind of lived within the MDR space and certainly vendors that have lived in the managed, you know, the MSSP or MSP space, which we are certainly not, they're generally leveraging third-party technologies. They're generally buying and implementing or white labeling third-party technologies. And then they're layering kind of a services component on top. And we are not doing that. We've built the technology ourselves and don't get me wrong. That was a massive investment in both time and resources. But I think in the end, what it'll allow us to do is be very nimble with the market and most importantly, be very nimble with the customer's requirements and requests. >> Right. Okay. So let's talk about your market opportunity. I mean, the cyberspace, I mean, I got it well over a hundred billion, I don't know, maybe it's 110, 120 billion. That's kind of your tan, you may be not serving that entire market today. Although you said you started in small and mid-size, you're targeting now your enterprise, your higher end businesses growing, you talked about, I think you said a hundred percent growth, like eight quarters in a row. And so there's no shortage of opportunity for you. How do you think about your total available market? Maybe you could add some color to that. >> Yeah. Yeah. So it's been eight years of a hundred percent growth. >> Eight years, not eight quarter, I apologize. >> It's been going really well for us. And it's a reflection on the market itself and the approach we're taking. So in our view, security operations is really the opportunity to unify all these disparate markets in cybersecurity. And, when I walk into a customer account, if I had to use two words to describe how they're feeling, one would be confused, the other would be frustrated. Sometimes they're both. Sometimes they're only one, but generally speaking, one of those two words comes out of their mouth. And the reason for it is at the end of the day, they just want to be protected. They want the outcome. And all of these disparate markets are promising the same outcome, but they're just promising it on the endpoint or just on the network or just in cloud or just an IOT or just an OT, or just in fill in the blank. And it's our view that it's our opportunity as a company to really fill that void for the customer, which is to unify all of these different technologies and spaces into one security operation. And sometimes that means that we're delivering our own end point. And sometimes that means that we're leveraging an end point or an end point solution that the customer has in house. And we're ingesting that data into our platform and we're making sense of it to the end user. But when you put that market together, you know, it's a hundred, I think Gartner's recent numbers there are 150 plus billion dollar market. And in 2021, I think it's growing at, you know, 12 to 15%. And it's our view that we can service the majority of that market, you know, I think on a conservative measure, you know, 90 to a hundred billion is the, is the Tam that we're addressing. And we're now starting to go, not only scaling out from the number of products for the markets that we service, and you can see that through managed security awareness training, but also the geographies we service, the segments of the market we service, specialization within verticals. And, for us, that is the opportunity at the end here. >> I wonder if you could help us squint through some of the data you hear in the industry, some of the trends you see in the press, certainly this came up in the, in the solar winds hack. We were seeing, I mentioned upfront, the adversaries are very capable. They're able to get in, live off the land, live stealthily, they're island hopping into the supply chain. You know, oftentimes you don't know, more than often, you don't know they're there, I've heard stats like, and we look at the solar winds hack, we saw that it was, you know, 300 days or over a year that they were inside the company. And you've heard, you know, average statistics from, you know, whatever that it's hundreds of days are those, are you able to compress those? Can you talk about that a little bit in terms of where you see your customers and how you're helping them, you know, respond? >> Yeah, so at the end of the day, you know, cybersecurity, the industry is really about limiting the volume of incidents within a customer account and then limiting the impact. And what you're talking about is the impact. And the impact as these threat actors have become, you know, more sophisticated is larger as they're in the environment for a longer period of time. So the faster you can get to an attack or the faster you can detect an attack, the better off you'll be as a business. And that is the core of what we do as a company. And, and certainly, you know, managed detection response or MDR, our first offering was all about that. It's all about detecting early and responding early to a threat so that you can get anything that has gotten through your perimeter defenses out of your systems, as fast as humanly possible. And then we feathered in, you know, manage risk, which is more about the front end. So how do we make sure that we have everything configured properly? How do we make sure that we, you know, fill any holes that are in the current environment so that we don't even get to a point where we have to manage the time with which an attack has had to live within your environment? So, it's all about kind of those two things, reduce the frequency and reduce the impact. And we're, we're focused on both, both the, kind of the proactive measures, which would be more on the front end and then the reactive measures, which is what do you do and how can you act as quickly as possible within your environment to ensure that, you know, they're not getting into the crown jewels of the business. >> We've seen lately where the, the attackers have. I mean, it's really insidious, right Nick, they, they will exfiltrate, they'll get in they'll exfiltrate stealthily and they'll be ready to attack from a ransomware standpoint. And then they, you know, maybe they're hitting the bank and they're scouring to see what the Chief Information Officer is going to invest in. And they're actually making trades ahead of that. They're making more money, you know, snooping than from the ransomware. And then when the company realizes and they respond, then they get them in a headlock and say, okay, now, now that you're going to stop us from making all this money through exfiltration, we're going to hit you with ransomware. So it's just, it's a really awful situation. So my point being that, or we've said, organizations have to be stealthy in their response. Have you seen that as a trend? Am I overstating that? >> No, no. I mean, customers are, you know, good news, bad news customers are very aware of the threats in particular ransomware, data exfiltration and all the other trends in the market. And I think they become more sophisticated in the way in which they respond. And I think as a result, we've seen both changes in the way customers kind of set up their environment technologically, but we've also seen a pretty dramatic shift recently with the way in which they view insurance and the way in which, you know, carriers, view insurance, and how that plays a role in, you know, cybersecurity in their cybersecurity operation. And for a lot of customers, I think recent trends are that the carriers are struggling to, you know, make money on their cyber books. And the reason for that is because they need to make sure that the customer's environment is truly secure, or they're kind of flying blind on what their book looks like. And we've started to see that both on the end-user side, we've seen that through the carriers themselves, and that also has played an integral role in the way in which the customer views risk. And I think that dynamics changing. And I think what the result of that will be is that customers are going to be looking more and more towards how they solve this problem by alleviating risk in-house, as opposed to transferring some of that risk to an insurance carrier or a third party. And what I hope that means for customers is that they'll have the proper investment. They'll have the proper tooling, they'll have the proper operations around how to react and how to respond in the quickest possible manner, which at the end of the day, the faster you can react to an incident, the smaller the impact will be and the smaller of a financial burden it will be. And they'll do that through vendors like Arctic Wolf, you know, tools that are best of breed within their infrastructure. And then a really well thought out plan about how to respond to anything that, that you know, happens within their environment. >> Yeah. I mean, if I'm an insurance company, I give a discount to somebody who's got an alarm in their house and they use it. Maybe I'll give a discount if they're working with a company like Arctic Wolf. >> Exactly. >> What percent, do you have a census to what percent of enterprises actually have a SOC? >> Yeah, we actually did a, some homework here and there's kind of two stats that jump out. And these are through a few different surveys through very well-known organizations in the cybersecurity market. But one is that last year, which would have been, you know, 2020, about 60% of organizations said that they suffered some semblance of a breach, 60%, you know, think about how many tools and how much money these organizations are investing in protecting their businesses. And over half are suffering some semblance of a breach. When those same customers are asked whether or not they felt like they have a security operation, over 99% answered no. >> Wow. >> Right. So they have a bunch of tools they're investing a ton of money, but at the end of the day, when asked, hey, do you feel like you have an operation that can protect your business? Their answer is no. And that's really the void we're trying to. >> And you and I both know that 60%, okay. But then the other 40%, they've been hacked. They just don't know it. So, all right. Let's wrap with the sub stats on the company. I think you've raised nearly half a million, half a billion dollars to date $500 million to date. So that's, I can infer from that some pretty lofty numbers, but where are you in funding with that kind of growth? I got to believe IPO is and you and your future. What can you tell, what metrics can you share? What can you tell us about where you want to take this thing? >> Yeah, so I'll give you a few metrics on the platform and a few metrics on the company. So the platform itself, you know, we're observing over 1.5 trillion observations a week, we have 10,000 plus sensors in the field. You know, we're ingesting coming from a, you know, Compellent infrastructure guy. You know, we're in ingesting over a petabyte and a half a data week. I would have loved to have been that sales guy in the glory days, you know, but the platforms, you know, operating at massive scale, we've grown the business eight years in a row, over a hundred percent. We've talked about that. Our subscription gross margins are very software-like. We have over 2000 customers. You know, our customers are really happy with an NPS score, you know, approaching 70, you know, over a million licensed users. So we're, we're doing very, very well as a business. And as a result, we've raised money to invest in that growth, which is to the tune of about a half a billion dollars and our path here, and we've stated this publicly now is that, you know, next summer give or take a quarter is really the timeframe that we're marching towards for an IPO. If I'm being honest, given the metrics that we have as a business, we could be a publicly traded company today, especially with the way the market's operating in the valuations of some of the businesses that have gone out. There might be some, even some pressure to do so, but we want to make sure that we are ready to go from a systems and an operation standpoint to not just be, you know, a flashing the pan awesome IPO, but a company that's really kind of the backbone of cybersecurity for years to come. >> Well, obviously a hot space. What we've been covering for a couple of years now, Okta, CrowdStrike, Zscaler, we've seen what's happened in the action in the market there. I mean, what are your comps? I mean, I know, I think dark trace is getting ready to go. I don't think they've gone yet. I know Sentinel One went out. How should we think about you? You're not an Okta or I don't think well, CrowdStrike, but you know, those are pure play product companies. How should we think about you guys? >> Yeah, I mean, companies that were on a similar trajectory as us at our size, Sentinel One's a very good example. And you can kind of look across all the core business metrics on that. And clearly those will all be public here in under a year. CrowdStrike's a great example. If you go, you know, reel back the tape to when they were, you know, our size we're right in line with them Zscaler, Okta, you know, I joke with our board and investors and our CFO, that the number of companies that we benchmark ourselves against is starting to become a very small number, given you know, our growth at the scale that we're at. >> Well, that's an awesome story, Nick. We're really excited that you could make some time to come on the Cube and we want to follow your progress. Welcome you back anytime. Really appreciate your time. >> Yeah. Great. Thanks for having me, Dave, and looking forward to continuing the conversation at some point. >> Excellent and thank you for watching everybody. This is Dave Vellante for the Cube and we'll see you next time.

welcome back to vmworld live 2010 live at the cube in san francisco california Moscone Center at vmworld 2010 please welcome this morning's press conference with VM ware compelling technologies and their customers Heineken from the Netherlands speaking today our Todd is Todd Nielsen's chief operating officer of VMware Phil sore and CEO of Compellent technologies and from Heineken the Netherlands microbrews virtualization team lead lucien de konak project manager and now please welcome Todd Nielsen the chief operating officer of VMware it's a it's great to be here we'd like to welcome you to the Compellent vmware operands and i want to say a couple words about compelling technologies in our partnership with them as vmware they've been a great storage partner of ours have a number of customers together a number and we really like work with them to drive value to our overall customer the solution said the that we did announced yesterday at vmware at vm for every dollar of license revenue that vmware cells we are partners or our ecosystem is able to add on or to drag with that fifteen dollars of ecosystem revenue and the compellent folks are a great example of a partnership with vmware where our solutions work well together and we do some exciting things we're going to hear from for the president and CEO of compellent and one of their customers but before we do one of my favorites twist of this press conference is a differentiation of compellent is the fluid data architecture and I think it's somewhat ironic after last night's beer crawls at vmworld 2010 that Heineken happens to be the customer on stage so I'm sure there's a story there and I would like to introduce Phil Soren the president and CEO of compellent to tell us about the company and about the Heineken beer crawls great Todd thanks a lot we're just thrilled to be up here on stage with you being participated in the fantastic show you have in operation here at moscone in San Francisco and we're thrilled to have a joint announcement our customer heineken here and to have them for from the Netherlands to share the excitement with us but let me tell you a little about Compellent we're a data storage company with the fluid data architecture we've been really the innovator if you look at primary storage innovation over the last decade things like thin provisioning sub lund automated tiered storage tiering disk platters flexible volumes portable volumes then provision you look at all those types of innovations over the last decade that storages come out and compellent has been the leader in that whole space and I think we'd be able to get ahead of some of the incumbent vendors with our innovation and we're in really fast growing we grew about thirty eight percent year-over-year last year we're the one of the fastest growing sandbenders in the world and we're hoping to keep that growing about 2,100 customers in 34 countries Heineken being a good example in the Netherlands of those customers there they're running their mission-critical enterprise applications on us for their worldwide operations and I would say of the 2100 about 2090 of them are also running some form of VMware so this partnership with vmware is very very important to us and we're real excited about it talk a little bit about our patented technology we call it the fluid data architecture and we thought no better customer to do a joint press conference with on our fluid data architecture than Heineken so the ultimate fluid data architecture is the combination of heineken and compellent and our system is so easy to use that you can actually enjoy a Heineken while you're about storage administrator so we like that they're so Heineken Nell lenders are our customer we have microbrews in Lushan nakonec and we're real excited to hear about their story they're part of a global enterprise of customers we talked about we have customers in all industries verticals geographic areas we're announcing actually this week we're announcing our expansion of our Australian operations where we have dozens of customers already but we're now seeing the expanse of our Australian operations and now let's take it back to the Netherlands and let's hear a real customer story about how vmware Compellent can really cut the the total cost of ownership in a data center by more than fifty percent with the combination of our two efforts and also improve the operational efficiency of those data centers and let's hear Mike and Lucien to tell us a little bit about it okay thank you very much feel I guess I don't have to introduce any cancer company itself because we all know with the core business or for companies brewing beer not only the beer we grade to brew great beers and great brands and that makes us the number one brewer in Europe and the number three in volume in the complete worldwide we have over 200 regional and local beers and ciders in total and when we look at our breweries we have almost in every country we have a brewery or its Hank is deliverable when we look at the International Anakin international we're very large company almost in every country as I just said before and we have 130 140 breweries in more than 70 countries which is good for a group beer volume of 200 million hectoliters of beer a year as includes insiders when we look at the the Netherlands we have only three breweries that's where it all started we have 18 million hectoliters of total supply but we're not drinking at all ourselves the domestic market is only about five million hectoliters and the rest of the volume is going to USA so as all export for us and that's where all your beers coming from and I strategies that we've introduced a Heineken Light several years ago is especially made for the USA market because we don't drink it okay when we take a look at the virtualization roadmap for hanukkah we started about six years ago in 2004 VMware was the only real player in the market at the moment we introduced it when we were consolidating our data centers in our main location suit about we came from about 12 server rooms to one major data center which we used storage from HP at the moment and we used HP blades infrastructure and we decided to go for it with VMware for our DTI environments or the test and acceptance environment after several years it we grew outgrew our storage capacity and we needed to upgrade so we we change te va with a forklift upgrade some to another EPA and we also introduced a new version of vmware again we're later we thought everybody was ready to go to use protection so everyone used the dta and i was confident it should work on production also so we start with the bronze service that our servers are not mission critical for us those are great success and last year we start a new project to virtualize every gold and silver system we have that means every mission critical and priority system we use for brewing packaging and distribution just the latest news is that last weekend we migrated one of the last warehouse management systems there's also virtualized now and is running perfectly where are we going we are looking at the end of the year we're going to vsphere for of course the main thing and last year we decided to choose for another storage storage solution we chose component well this is something where elution comes in you can tell about the choice you ate and why we did it okay thank you well well tell you something about the project itself the migration and why we choose component in the first place well we really needed to look for other solutions because especially in the two main sites suta wild and divorce we had some serious problems especially the support costs because after three years you pay an enormous amount of money for support from HB also we had our capacity problems and also experienced severe performance issues in suit about us so that meant that we had to take action fast also we had we were stuck on the AEV a 5000 which didn't allow us to upgrade to a newer version of vmware and also we couldn't use windows server 2008 which was very high on us on our priority list furthermore business continuity is on a plan for early next year so we wanted to have a solution which could provide us that and also because heineken is as called a new but it's not really a project but Sequoia the hunt for cash within itn Anakin element meant that we we want to you reduce IT costs as much as possible so in another point problem was that we had a major issue with reporting from our currents and infrastructure why did you choose for component well it opera it operates with every operating system it is very very important it's one for the solution that fits really everything that's what we experience as well during the migration we could start with replication early next year that's also very important and we needed a high high performance solution but it eventually meant why we choose chose for a component that it's excellent value for money the fluid data concept we really was consecrated what we can can use and give us high flexibility and one of the major pros is that the accident reporting facilities is I've never seen a better reporting functionality inside a project such as propellant and what is also very important that we got 24 7 proactive support and that's something you will never get for free so okay well as a result we have at least certain sixty percent virtualized and actually like my except last week we went to 61 percent because we virtualize to more FM machines and the speed we are going now it it really looks that we are in 2012 we are going to for ninety percent and I think it's a really feasible the number of disks we significantly reduced which meant lowers I decided lower on the power lower on low on the rec space for example the evi 5000 cost us one and a half 19-inch rack and right now it's about 12 views so it's a real big difference the performance we see on all layers not only on the only windows servers also on ax systems we see an enormous improvement regarding performance with yet we did have to do some optimization but with the support of copilot in the in the last month we had a excellent result and we even have a much better performance that we ever had so and because yeah we are finally using solar state drives because we really needed that for a sequel a reporting server which is very business critical and indio on the old evi we reached performance for about twenty thirty five minutes for a report which needed to be ready before a certain time and now we even cut times under 20 minutes so you see how fast it really is so we are next week actually the final and virtual machine will be migrated from the OTV a two component and that will finalize our migration on both breweries and so far no disruption whatsoever so we're very pleased perfect so that's a that's our part of the presentation thank you somebody talks out of the sky now right any questions uh well the question the question was with all the savings he's gotten his data center can you lower the cost of heineken beer for everyone I knew a new kind of heineken light right yeah how we go do that let us not up to me we really want to thank you guys for sharing that story I mean it just hit all our bullets about you know the future built in performance flexibility fluid data VMware compellent working together and we're just really really excited and we appreciate you sharing your story with our viewers and our customers and our prospects out in the audience here okay thank you guys yeah okay