from the cube studios in Palo Alto in Boston bringing you data-driven insights from the cube and ETR this is breaking analysis with Dave vellante over the past decade cloudflare has built a Global Network that has the potential to become the fourth us-based hyperscale class cloud in our view the company is building a durable Revenue model with hooks into many important markets these include the more mature DDOS protection space to other growth sectors such as zero trust a serverless platform for application development and an increasing number of services such as database and object storage and other network services in essence cloudflare could be thought of as a giant distributed supercomputer that can connect multiple clouds and act as a highly efficient scheduling engine at scale its disruptive DNA is increasingly attracting novel startups and established Global firms alike looking for Reliable secure high performance low latency and more cost-effective alternatives to AWS and Legacy infrastructure Solutions hello and welcome to this week's wikibon Cube insights powered by ETR in this breaking analysis we initiate our deeper coverage of cloudflare we'll briefly explain our take on the company and its unique business model we'll then share some peer comparisons with both the financial snapshot and some fresh ETR survey data finally we'll share some examples of how we think cloudflare could be a disruptive force with a super cloud-like offering that in many respects is what multi-cloud should have been cloudflare has been on our peripheral radar Ben Thompson and many others have written about their disruptive business model and recently a breaking analysis follower who will remain anonymous emailed with some excellent insights on cloudflare that prompted us to initiate more detailed coverage let's first take a look at how cloudflare seize the world in terms of its view of a modern stack this is a graphic from cloudflare that shows a simple three-layer Stack comprising Storage and compute the lower level and application layer and the network and their key message is basically that the big four hyperscalers have replaced the on-prem leaders apps have been satisfied and that mess of network that you see and Security in the upper left can now be handled all by cloudflare and the stack can be rented via Opex versus requiring heavy capex investment so okay somewhat of a simplified view is those companies on the the left are you know not standing still and we're going to come back to that but cloudflare has done something quite amazing I mean it's been a while since we've invoked Russ hanneman of Silicon Valley Fame on breaking analysis but remember when he was in a meeting one of his first meetings if not the first with Richard Hendricks it was the whiz kid on the show Silicon Valley and hanneman said something like if you had a blank check and you could build anything in the world what would it be and Richard's answer was basically a new internet and that led to Pied Piper this peer-to-peer Network powered by decentralized devices and and iPhones and this amazing compression algorithm that enabled high-speed data movement and low latency uh up to no low latency access across the network well in a way that's what cloudflare has built its founding premise reimagined how the internet should be built with a consistent set of server infrastructure where each server had lots of cores lots of dram lots of cash fast ssds and plenty of network connectivity and bandwidth and well this picture makes it look like a bunch of dots and points of presence on a map which of course it is there's a software layer that enables cloudflare to efficiently allocate resources across this Global Network the company claims that it's Network utilization is in the 70 percent range and it has used its build out to enter the technology space from the bottoms up offering for example free tiers of services to users with multiple entry points on different services and selling then more services over time to a customer which of course drives up its average contract value and its lifetime value at the same time the company continues to innovate and add new services at a very rapid cloud-like Pace you can think of cloudflare's initial Market entry as like a lightweight Cisco as a service the company's CFO actually he uses that term he calls it that which really must tick off Cisco who of course has a massive portfolio and a dominant Market position now because it owns the network cloudflare is a marginal cost of adding new Services is very small and goes towards zero so it's able to get software like economics at scale despite all this infrastructure that's building out so it doesn't have to constantly face the increasing infrastructure tax snowflake for example doesn't own its own network infrastructure as it grows it relies on AWS or Azure gcp and and while it gives the company obvious advantages it doesn't have to build out its own network it also requires them to constantly pay the tax and negotiate with hyperscalers for better rental rates now as previously mentioned Cloud Fair cloudflare claims that its utilization is very high probably higher than the hyperscalers who can spin up servers that they can charge for underutilized customer capacity cloudflare also has excellent Network traffic data that it can use to its Advantage with its Analytics the company has been rapidly innovating Beyond its original Core Business adding as I said before serverless zero trust offerings it has announced a database it calls its database D1 that's pretty creative and it's announced an object store called R2 that is S3 minus one both from the alphabet and the numeric I.E minus the egress cost saying no egress cost that's their big claim to fame and they've made a lot of marketing noise around about that and of course they've promised in our a D2 database which of course is R2D2 RR they've launched a developer platform cloudflare can be thought of kind of like first of all a modern CDN they've got a simpler security model that's how they compete for example with z-scaler that brings uh they also bring VPN sd-wan and DDOS protection services that are that are part of the network and they're less expensive than AWS that's kind of their sort of go to market and messaging and value proposition and they're positioning themselves as a neutral Network that can connect across multiple clouds now to be clear unlike AWS in particular cloudflare is not well suited to lift and shift your traditional apps like for instance sap Hana you're not going to run that in on cloudflare's platform rather the company started by making websites more secure and faster and it flew under the radar and much in the same way that clay Christensen described the disruption in the steel industry if you've seen that where new entrants picked off the low margin rebar business then moved up the stack we've used that analogy in the semiconductor business with arm and and even China cloudflare is running a similar playbook in the cloud and in the network so in the early part of the last decade as aws's ascendancy was becoming more clear many of us started thinking about how and where firms could compete and add value as AWS is becoming so dominant so for instance take an industry Focus you could do things like data sharing with snowflake eventually you know uh popularized you could build on top of clouds again snowflake is doing that as are others you could build private clouds and of course connect to hybrid clouds but not many had the wherewithal and or the hutzpah to build out a Global Network that could serve as a connecting platform for cloud services cloudflare has traction in the market as it adds new services like zero trust and object store or database its Tam continues to grow here's a quick snapshot of cloudflare's financials relative to Z scalar which is both a competitor and a customer fastly which is a smaller CDN and Akamai a more mature CDN slash Edge platform cloudflare and fastly both reported earnings this past week Cloud Fair Cloud flare surpassed a billion dollar Revenue run rate but they gave tepid guidance and the stock got absolutely crushed today which is Friday but the company's business model is sound it's growing close to 50 annually it has sas-like gross margins in the mid to high 70s and it's it it's got a very strong balance sheet and a 13x revenue run rate multiple in fact it's Financial snapshot is quite close to that of z-scaler which is kind of interesting which zinc sailor of course doesn't own its own network that's a pure play software company fastly is much smaller and growing more slowly than cloudflare hence its lower multiple well Akamai as you can see is a more mature company but it's got a nice business now on its earnings call this week cloudflare announced that its head of sales was stepping down and the company has brought in a new leader to take the firm to five billion dollars in sales I think actually its current sales leader felt like hey you know my work is done here bring on somebody else to take it to the next level the company is promising to be free cash flow positive by the end of the year and is working hard toward its long-term financial model or so working towards sorry it's a long-term financial model with gross margin Targets in the mid 70s it's targeting 20 non-gaap operating margins so so solid you know very solid not like completely off the charts but you know very good and to our knowledge it has not committed to a long-term growth rate but at that sort of operating profit level you would like to see growth be consistently at least in the 20 range so they could at least be a rule of 40 company or perhaps even even five even higher if they're going to continue to command a premium valuation okay let's take a look at the ETR data ETR is very positive on cloudflare and has recently published a report on the company like many companies cloudflare is seeing an across the board slowdown in spending velocity we've reported on this quite extensively using the ETR data to quantify the degree to that Slowdown and on the data set with ETR we see that many customers they're shifting their spend to Flat spend you know plus or minus let's say you know single digits you know two three percent or even zero or in the market we're seeing a shift from paid to free tiers remember cloudflare offers a lot of free services as you're seeing customers maybe turn off the pay for a while and going with the freebie but we're also seeing some larger customers in the data and the fortune 1000 specifically they're actually spending more which was confirmed on cloudflare's earnings call they did say everything across the board was softer but they did also indicate that some of their larger customers are actually growing faster than their smaller customers and their churn is very very low here's a two-dimensional graphic we'd like to share this view a lot it's got Net score or spending momentum on the vertical axis and overlap or pervasiveness in the survey on the horizontal axis and this cut isolates three segments in the etrs taxonomy that cloudflare plays in Cloud security and networking now the table inserted in that upper left there shows the raw data which informs the position of each company in the dots with Net score in the ends listed in that rightmost column the red dotted line indicates a highly elevated Net score and finally we posted the breakdown those colors in the bottom right of cloudflare's Net score the lime green that's new adoptions the forest green is we're spending more six percent or more the gray is flat plus or minus uh five percent and you can see that the majority of customers you can see that's the majority of the customers that gray area the pink is we're spending Less in other words down six percent or worse and the bright red is churn which is minimal one percent very good indicator for for cloudflare what you do to get etr's proprietary Net score and they've done this for many many quarters so we have that time series data you subtract the Reds from the greens and that's Net score cloudflare is at 39 just under that magic red line now note that cloudflare and zscaler are right on top of each other Cisco has a dominant position on the x-axis that cloudflare and others are eyeing AWS is also dominant but note that its Net score is well above the red dotted line it's incredible Palo Alto networks is also very impressive it's got both a strong presence on the horizontal axis and it's got a Net score that's pretty comparable to cloudflare and z-scaler to much smaller companies Akamai is actually well positioned for a reasonably mature company and you can see fastly ATT Juniper and F5 have far less spending momentum on their platforms than does cloudflare but at least they are in positive Net score territory so what's going to be really interesting to see is whether cloudflare can continue to hold this momentum or even accelerate it as we've seen with some other clouds as it scales its Network and keeps adding more and more services cloudflare has a couple of potential strategic vectors that we want to talk about and it'll be going to be interesting to see how that plays out Now One path is to compete more directly as a Cloud Player offering secure access Edge services like firewall as a service and zero Trust Services like data loss prevention email security from its area one acquisition and other zero trust offerings as well as Network Services like routing and network connectivity this is The Sweet Spot of the company load balancing many others and then add in things like Object Store and database Services more Edge services in the future it might be telecom like services such as Network switching for offices so that's one route and cloudflare is clearly on that path more services more cohorts at innovating and and growing the company and bringing in more Revenue increasing acvs and and increasing long-term value and keeping retention high now the other Vector is what we're just going to refer to as super cloud as an enabler of cross-cloud infrastructure this is new value uh relative to the former Vector that we were just talking about now the title of this episode is what multi-cloud should have been meaning cloudflare could be the control plane providing a consistent experience across clouds one that is fast and secure at global scale now to give you Insight on this let's take a look at some of the comments made by Matthew Prince the CEO and co-founder of cloudflare cloudflare put its R2 Object Store into public beta this past May and I believe it's storing around a petabyte of data today I think that's what they said in their call here's what Prince said about that quote we are talking to very large companies about moving more and more of their stored objects to where we can store that with R2 and one of the benefits is not only can we help them save money on the egress fees but it allows them to then use those object stores or objects across any of the different Cloud platforms they're that they're using so by being that neutral third party we can let people adopt a little bit of Amazon a little bit of Microsoft a little bit of Google a little bit of SAS vendors and share that data across all those different places so what's interesting about this in the super cloud context is it suggests that customers could take the best of each Cloud to power their digital businesses I might like AWS for in redshift for my analytic database or I love Google's machine learning Microsoft's collaboration and I'd like a consistent way to connect those resources but of course he's strongly hinting and has made many public statements that aws's egress fees are a blocker to that vision now at a recent investor event Matthew Prince added some color to this concept when he talked about one metric of success being how much R2 capacity was consumed and how much they sold but perhaps a more interesting Benchmark is highlighted by the following statement that he made he said a completely different measure of success for R2 is Andy jassy says I'm sick and tired of these guys meaning cloudflare taking our objects away we're dropping our egress fees to zero I would be so excited because we've then unlocked the ability to be the network that interconnects the cloud together now of course it would be Adam solipski who would be saying that or maybe Andy Jesse you know still watching over AWS and I think it's highly unlikely that that's going to happen anytime soon and that of course but but in theory gets us closer to the super cloud value proposition and to further drive that point home and we're paraphrasing a little bit his comments here he said something the effect of quote customers need one consistent control plane across clouds and we are the neutral Network that can be consistent no matter which Cloud you're using interesting right that Prince sees the world that's similar to if not nearly identical to the concepts that the cube Community has been putting forth around supercloud now this vision is a ways off let's be real Prince even suggested that his initial vision of an application running across multiple clouds you know that's like super cloud Nirvana isn't what customers are doing today that's that's really hard to do and perhaps you know it's never going to happen but there's a little doubt that cloudflare could be and is positioning itself as that cross-cloud control plane it has the network economics and the business model levers to pull it's got an edge up on the competition at the edge pun intended cloudflare is the definition of Edge and it's distributed platform it's decentralized platform is much better suited for Edge workloads than these giant data centers that are you know set up to to try and handle that today the the hyperscalers are building out you know their Edge networks things like outposts you know going out to the edge and other local zones Etc now cloudflare is increasingly competitive to the hyperscalers and those traditional Stacks that it depositioned on an earlier slide that we showed but you know the likes of AWS and Dell and hpe and Cisco and those others they're not sitting in their hands they have a huge huge customer install bases and they are definitely a moving Target they're investing and they're building out their own Super clouds with really robust stacks as well let's face it it's going to take a decade or more for Enterprises to adopt a developer platform or a new database Cloud plus cloudflare's capabilities when compared to incumbent stacks and the hyperscalers is much less robust in these areas and even in storage you know despite all the great conversation that R2 generated and the buzz you take a specialist like Wasabi they're more mature they're more functional and they're way cheaper even than cloudflare so you know it's not a fake a complete that cloudflare is going to win in those markets but we love the disruption and if cloudflare wants to be the fourth us-based hyperscaler or join the the big four as the as the fifth if we put Alibaba in the mix it's got a lot of work to do in the ecosystem by its own admission as much to learn and is part of the value by the way that it sees in its area one acquisition it's email security company that it bought but even in that case much of the emphasis has been on reseller channels compare that to the AWS ecosystem which is not only a channel play but is as much an innovation flywheel filling gaps where companies like snowflake Thrive side by side with aws's data stores as well all the on-prem stacks are building hybrid connections to AWS and other clouds as a means of providing consistent experiences across clouds indeed many of them see what they call cross-cloud services or what we call super cloud hyper cloud or whatever you know Mega Cloud you want to call it we use super cloud they are really eyeing that opportunity so very few companies frankly are not going after that space but we're going to close with this cloudflare is one of those companies that's in a position to wake up each morning and ask who can we disrupt today and very few companies are in a position to disrupt the hyperscalers to the degree that cloudflare is and that my friends is going to be fascinating to watch unfold all right let's call it a wrap I want to thank Alex Meyerson who's on production and manages the podcast as well as Ken schiffman who's our newest addition to the Boston Studio Kristen Martin and Cheryl Knight help us get the word out on social media and in our newsletters and Rob Hof is our editor-in-chief over at silicon angle thank you to all remember all these episodes are available as podcasts wherever you listen all you're going to do is search breaking analysis podcasts I publish each week on wikibon.com and siliconangle.com you can email me at david.velante at siliconangle.com or DM me at divalante if you comment on my LinkedIn posts and please do check out etr.ai they got the best survey data in the Enterprise Tech business this is Dave vellante for the cube insights powered by ETR thank you very much for watching and we'll see you next time on breaking analysis

(upbeat music) >> Welcome to the CUBE Conversation. I'm Lisa Martin. I'm talking next with Sanzio Bassini, the Head of High Performance Computing at Cineca, at DELL technologies customer. Sanzio, welcome to the CUBE. >> Thank you, it's a pleasure, it's a pleasure. >> Likewise, nice to see you. So tell us a little bit about Cineca. This is a large computing center, but a very large Italian nonprofit consortium. Tell us about it. >> Yes, Cineca been founded 50 years ago, from the university systems in Italy. For a statutory mission, which is to support, the scientific discovery, and the industry innovations, using the High Performance Computing and the correlated methodologies like a, Artificial Intelligence, which is one of the, you see the more, in a, in a adopted in those days, but together with the big data processing and and simulation. Yes, we are a consortium, which means that this is a private not-for-profit organizations. Currently, our member of the consortium, almost all the universities in Italy and also all the national agencies for those selected structures. Uh. The main quarter of Cineca is in Bologna, which is in the heart Nation, with the bunch of presence in Milan, in Rome and in Naples, so we are a consultation organization. >> And I also read that you were, are the top 10 out of the top 500 of the world's fastest super computers. That's a pretty big accomplishment. >> Yes. That is a part of our institutional missions, the last 10 to 15 years we have been to say, frequent flyers in the top 10. There been at least two, three systems that have been ranked at the top 10. Apart, the.., whatever would be the meaning of such an advance market, there's a lot of its criticalities. We are well aware. The idea is that we're enabling the scientific discovery, by means of providing the most advanced systems and the co-designing, the most advanced HPC systems to promote and support the, what is the, excellence in science. And that being part of European high-performance computing IT system. That is the case. >> Excellent. Now, talk to me about some of the challenges that Cineca is trying to solve in particular, the Human Brain Project. Talk to us a little bit about that and how you're leveraging high-performance computing to accelerate scientific discovery. >> Um, The Human Brain Project is one of the flagship project that has been co-founded by the European commission and that the participating member states. Is not as another situations that are undertaking, it's definitely a joint collaboration between members states and the European commission. There are two different right now, flagships together with another, that is in progress, which is that the quantum of flagship, the first two flagship abroad that that has been lost. The commission for operation with the participating states has been one on the digraph vein on which also we are participating in directly together with the CNR, is the national business counselor. And the second for which we are core partners of the HPC that is, the Human Brain Project. That, that is a big flagship, one million offer, of newer investment, co-founded by the participating states and that the European commission. The project it's going to set up, in what to do be the, third strategic grant agreement that they will go over the next three years, the good, the complete that the, the whole process. Then we see what is going to happen at Africa. We thought that their would be some others progress offer these big projects. It's project that would combine both the technology issues, like the designing the off high-performance computing systems that meet the requirements of the community and the big challenge, scientific challenges correlated to the physiological functions of the human brain center, including the different farm show survey to do with the behavior of the human brain. A from the pathological point of view, from the physiological point of view, that better understand the could be the way for, for a facing that. Let's say the pathology, some of those are very much correlated with respect to aging, and that it would impact the, the health, the public health systems. Some other that are correlating with what would be the support for the physiological knowledge of the, of the human brains. And finally that they, let me say, technological transfer stuff that represented the knowing off at the physiological, behavior of the human brain. Just to use a sort of metaphor to have happen from the point of view of there computational performance, the human brain is a, a, a, more than Exoscale systems, but with a energy consumption, which is very low, we are talking about some hundreds of Watts. So some hundreds of watts of energy, would provide a an extreme and computational performance. So if would could organized the technology of the high-performance computing in terms of interconnections now we're morphing the computing systems and exploitations of that kind of technologies, in I build a system that it might provide the computational power that would represent a tremendous and tremendous step ahead, in order to facing the big challenges of our base, like energies, personalized medicine, try not to change food for all those kinds of big socioeconomic challenges that we are facing. >> Yes I was reading that besides, sorry Sanzio I was reading that besides the Human Brain Project, there are other projects going on, such as that you mentioned, I'd like to understand how Cineca is working with Dell technologies. You have to translate, as you've mentioned a minute ago, the scientific requirements for discovery into high-performance computing requirements. Talk to me about how you've been doing that with partners like Dell technologies. >> Yes, in particularly in our computing architectures, we had the need to address the capability to facing the data processing involved with backed off the Human Brain Project and general speaking that is backed off the science vendor, that would combine the capability also to provide the cloud access to the system. So by main soft containers technologies and the capability also, to address what would be the creation of a Federation. So Piper problems with people proceeded in a new world. So at the end that the requirements and the terms of reference of the would matter will decline and the terms of a system that would be capable to manage, let's say, in a holistic approach, the data processing, the cloud computing services and the opportunity before for being integrated that in a Federation of HSBC system in Europe's, and with this backed off, that kind of thing, we manage a competitive dialogue procurement processor, I think I the sentence would share together with the different potential technology providers, what would be the visuals and those are the constraints (inaudible) and those other kinds of constraints like, I don't want to say, I mean, environmental kind of constraints and uh, sharing with this back of the technology provider what would it be the vision for this solution, in a very, let's say hard, the competitive dialogue, and at the end, results in a sort of, I don't want to say Darwinian processes, okay. So I mean, the survivors in terms of the different technology providers being Dell that shown the characteristics of the solution that it will be more, let's say compliant. And at the same time are flexible with respect of the combinations of very different constraints and requirements that has been the, the process that has been the outcomes of such a process. >> I like that you mentioned that Darwinian survival of the fittest and that Dell technologies has been, it sounds like a pretty flexible partner because you've got so many different needs and scientific needs to meet for different researchers. Talk to me about how you mentioned that this is a multi-national effort. How does Cineca serve and work with teams not only in Italy, but in other countries and from other institutes? >> Definitely the volume commitment that together with the, European member states is that by means of scientific merits and the peer review process, roughly speaking the arc of the production capacity, would be shared at the European level. That it's a commitment that, that there's been, that there's been a shared of that together with France, Germany, Spain, and, and with the London. So, I mean, our, half of our production capacity, it's a share of that at the European level, where also of course the Italian scientist can apply in the participates, but in a sort of offer emulations and the advanced competition for addressing what it would be the excellence in science. The remaining 50% of our production capacity is for, for the national community and, somehow to prepare and support the Italian community to be competitive on the worldwide scenario on the European and international scenario, uh that setting up would lead also to the agreement at the international level, with respect of some of the options that, that are promoted the progress in a US and in Japan also. So from this point of view, that mean that in some cases also the, access that it would come from researchers the best collaborations and the sharing options with the US researchers their or Japanese researchers in an open space. >> Open space for, it sounds like the Human Brain Project, which the HPC is powering, which has been around since 2013 is really facilitating global collaboration. Talk to me about some of the results that the high-performance computing environment has helped the Human Brain Project to achieve so far. >> The main outcomes that it will be consolidated in the next phase that will be need the by rural SPC that is the Jared undertaking um entities, that has been created for consolidating and for progressing the high-performance computing ecosystem in Europe. It represented by the Federations of high-performance computing systems at European level, there is a, a, an option that, that has been encapsulated and the elaborated inside the human brain flagship project which is called the FEHIPCSE that stand for Federation of a High-Performance Computing System in Europe. That uh provide the open service based on the two concepts on one, one is the sharing of the Heidi at a European level, so it means that the, the high demand of the users or researchers more properly. It's unique and Universal at the European level. That didn't mean better the same, we see identity management, education management with the open, and the access to the Cineca system, to the SARS system in France, to the unique system in, uh Germany to the, Diocese system in a Switzerland, to the Morocco System in a Spain. That is the part related to what will be the federated, the ID management, the others, et cetera, related to what will be the Federation off the data access. So from the point of view, again, the scientific community, mostly the community of Human Brain Project, but that will be open at other domains and other community, make sure that data in a seamless mode after European language, from the technological point of view, or let's say from the infrastructure point of view, very strong up, from the scientific point of view, uh what they think they may not, will be the most of the options is being supported by Cineca has to do with the two specific target. One is the elaboration of the data that are provided by the lands. The laws are a laboratory facility in that Florence. That is one of the four parts, and from the bottom view of the provisions of the data that is for the scattering, the, the data that would come from the mouse brains, that are use for, for (inaudible) And then the second part is for the Mayor scale studies of the cortex of the of the human brain, and that got add-on by a couple of groups that are believing that action from a European level their group of the National Researcher Counsel the CNR, that are the two main outcome on which we are in some out reference high-performance computing facilities for supporting that kind of research. Then their is in some situations they combinations of the performance a, capability of the Federation systems for addressing what will be the simulations of the overall human brain would take a lot of performance challenge simulation with bacteria that they would happen combining that they SPC facility as at European level. >> Right! So I was reading there's a case study by the way, on Cynic that Dell technologies has published. And some of the results you talked about, those that the HPC is facilitating research and results on epilepsy, spinal cord injury, brain prostheses for the blind, as well as new insights into autism. So incredibly important work that you're doing here for the Human Brain Project. One last question Sanzio, for you, what advice would you give to your peers who might be in similar situations that need to, to build and deploy and maintain high-performance computing environments? Where should they start? >> (coughs laughs) I think that at, at a certain point, that specific know how would became sort of a know how that is been, I mean, accumulated and then by some facilities and institutions around the world. There are the, the federal labs in US, the main nation model centers in Europe, the big facilities in Japan. And of course the, the big university facilities in China that are becoming, how do you say, evident and our progressively occupied increasing the space, that to say that that is somehow it, that, that, that the, those institutions would continues collaborate and sharing that there are periods I would expect off what to do, be the top level systems. Then there is a continuous sharing of uh knowledge, the experience best practices with respect off, let's say the technologies transfers towards productions and services and boosterism. Where the situation is big parenta, in the sense that, their are focused what it would be, uh the integration of the high-performance computing technology into their production workflow. And from the point of view, there is the sharing of the experience in order to provide the, a sort of, let's say, spreads and amplifications of the opportunity for supporting innovation. That is part of are solution means, in a Italy but it also, eh, er sort of um, see objective, that is addressed by the European options er supported by the European commission. I think that that sort of (inaudible) supply that in US, the, that will be coming there, sort of you see the max practice for the technology transfer to support the innovation. >> Excellent, that sharing and that knowledge transfer and collaboration. It seems to be absolutely fundamental and the environment that you've built, facilitates that. Sanzio thank you so much for sharing with us, what Cineca is doing and the great research that's going on there, and across a lot of disciplines, we appreciate you joining the program today. Thank you. >> Thank you, it's been a pleasure, thank you very much for the opportunity. >> Likewise, for Sanzio Bassini. I'm Lisa Martin. You're watching this cube conversation. (calming music)

>>the >>globe. It's the Cube with digital coverage of AWS >>reinvent 2020 >>sponsored by Intel, AWS and our community partners. Everyone welcome back to the cubes. Virtual coverage of AWS reinvent 2020 Virtual I'm John for your host. Got a great segment here with two analyst day Volonte and Zia's Carvell who's head principles of zk research dot com. Guys. Great to see you A W s Kino. Thanks for >>coming on. Let's be back in the cube. >>Welcome back. Great to see you guys. Wanna get your thoughts? Um, it's mainly you because we talked with the enterprise a lot. You are leading analyst. You cover a broad range from networking all the way up to the C suite for enterprise buyers and and technology trends. Um, Andy Jassy laid down, in my opinion, what was directionally his next 20 mile stare. The next conquest for Amazon. And that is global. I t spend they locked in the infrastructures of service pass kicking ass. There. Check check. Hello, Enterprise. Different ballgame. What's your thoughts? >>Yeah, they have so much in different areas, obviously. You know, they have dominated cloud instances right there. Mawr compute storage memory. You know insists that anybody but you can see him, um, spreading their wings now, right? I think one of the more interesting announcements was actually what they're doing with Amazon connect. That's their contact center platform. And this is something that I think, Even last year, a lot of people weren't really even sure if they'd be in a long primary in the pocket. People about this market, they were asking, If you really think Amazon's in this, there's something they're experimenting. But we're here to stay. And I think one of the interesting things that they bring to market is, you know, almost unprecedented scale with their cloud platform as well as all the machine learning algorithms. And I think if if you believe that machine learning artificial intelligence is changing, I t. Forever and that's everything from the infrastructure to the network through the applications, then they have an inherent advantage because they have all those machine learning albums built into this stuff that they dio and so they can constantly look at these different markets and disruptive, disruptive, disrupt and take more and more sharing that and that's what they've done. E think that's you know, the context and announcements were great example that they're not doing the telephony things, and, you know, they're kind of bare table stakes. They do that pretty well, but they've just unloaded a whole bunch of ai based features that >>Dave, what's your take on this context center? Because it's not just call centers. I mean, there was a whole industry around call center, unified communications. That whole world. This is about the contact. It's about the person. This is not just a nuanced thing like telephony or, you know, PBX is in the old days. Remember those days? Things is not about the call. It's about the contact. This is what Jazzy saying. >>I think that way had Diana or on early. And I said, I like the fact that their AWS specifically is going after these solutions because several years ago it was just sort of. Here's a bunch of tools. Go figure it out. I think the contact center is I mean, everybody can relate Thio the pains of going through getting rerouted, having to restate all your credentials, not knowing who you are. And so between machine learning, Alexa, Natural language processing, better work flows. I mean there's this huge opportunity toe reinvent the whole call center contact center. So, uh, yeah, I think you called it John. It's a no brainer for a W s toe Really disrupt that >>business. Well, it also puts him in a position. You know, news is breaking on the day of and yet his keynote here at reinvent that, uh, you got Salesforce spying slack for 27 close toe, $28 billion. That's a 55% premium over when they announced it. And that's like a 30 x or 50 x on on revenue. Massive number to confess the message board software. I mean, so So. So. If Amazon can come in and get the context center model, which is not just voice, it's chat, it's machine learning. It's bots. And the innovation to create a step function kind of brings it back into the that integration of user network compute. You know, I just think that it feels very edgy in the sense of edge computing, because if I'm a person, I'm mobile. If I'm a person at work or at home, so there's a whole redefinition Zs, what's your take on this edge? Play from Amazon in context toe the enterprise software landscape. That seems to be, you know, focus on buying companies like Salesforce. >>Well, I think edges really the next big foray for computing. If one of the things and you ask we talked about this, you know, was that the compute, the unit of Compute, has gotten smaller and smaller, Right? We went from data centers to servers to virtual machines, the virtual machines and clouds. Now we're talking about containers and containers on edges, and this requires, um if you if you believe in the world of distributed computing where we're gonna have mawr containers running in MAWR, places on MAWR edges, right. The value proposition where companies is now they can move their data closer to the customer. They could move data closer to the user. And so, if I'm a retailer and I'm trying to understand what a customer is doing, I could do that in store. If I'm Tesla and I'm trying to understand what the drivers doing, I could do that in car, right? If I'm a cellular provider, I could do it by cellular edge. So the edge, I think, is where a lot of the innovation is going to be at Amazon has the luxury of this massive global network. You know, they just announced the number another a number of other local nodes, including Boston and a few other places. So they've got the footprint in place. And this this is what makes Amazon's are difficult to compete with, right? They built this massive network and this all these, no doubt for their e commerce business. And now they're leveraging that deliver I t services. You can't just go build this from the ground up the variety, right? You have to be able to monetize it another way. And they've been doing that with the commerce for a long time. And so it makes them. It makes it very, very difficult for them to capture Google could with Daniel forget about the item. Oh, yeah, so good. Microsoft. Possibly. But they I think that the more distributed compute becomes the more favors Amazon, >>I would add to that if I could, John, I mean, look good. Look at the prevailing way in which many of the infrastructure the old guard is Andy. Jesse calls them. Companies have pursued the edge they've essentially taking, taking x 86 boxes and, you know, maybe made him rugged and throwing them over the fence to the edge. And that really is not gonna play the edges. Now there's not one edge. I mean, there's a very highly specific use cases and factories and windmills. And maybe maybe it's small retail organizations, and whatever it is that those are gonna be really unique situations. And I think the idea of putting a programmable infrastructure at the edge is gonna win. I also think that the edge architecture is gonna be different. It's going to require much more efficient processing to do a I Influencing a lot of the data is gonna be, uh, stay at the edge. A lot of it's not gonna be persisted. Some of it's gonna come back to the cloud. But I think most of it is actually gonna gonna either not be persisted or stay at the edge and be affected in real time. When you think of autonomous vehicles so totally different programming model, >>well, I think that's the point of what I was saying earlier Zeus was talking about Is that it's It's the edges is just different. I mean, you got purpose built stuff. I mean, they were talking by the way they have snowball. So they have, ah, hard edge device. And they got out outpost now in multiple flavors and sizes. But they also were talking about computer vision and machine learning. We're going together for that. The panoramic appliance. I think it was where there's all these different cases to your point, Dave, where it's just different. At the edge, you have the zones for five G. I mean, if you go to a five g tower, that's essentially an edge. Just there's equipment up to this. Radios is transceivers and other back haul equipment. So when you look at the totality of what it is, the diversity, I think that's why this whole idea of Lambda and Containers is interesting. Toe Zia's. When you were saying about the compute sizes being small, because if you could put compute at the edge on small pieces to match the form factor that becomes interesting. I think that's what this Lambda container announcement I found interesting because I see that playing directly into that your reaction to >>that. It actually, um, makes it. If not done correctly, it could make I t much more complex because, um, containers air interesting because they're not like virtual machines. First live in perpetuity. Containers you They're very ephemeral, right? You spin them up to 30 seconds, you spin them up for a couple of minutes that you deprecate them. So at any given point in time, you could have thousands of containers, a handful of containers, millions of containers, Right? But it necessitates a common management. Uh huh. Underlay that could be used to visualize where these containers are, what's running on them. And that's what AWS provides. You know, all the stuff they're doing Lambda and Eks and things like that that lends itself to that. So a customer can then go and almost create a container architecture that spans all their cloud's edges, even on Prem. Now, uh, when Amazon has but still be able to manage it and simplify it, I think somebody's trying to do it themselves. They're gonna find that the complexity almost becomes untenable. Unless you have a Nike organization the size of Amazon companies don't. So we're >>gonna here, we're gonna hear from Deepak singing in a few sessions. He did the eks anywhere. That's essentially kubernetes service on the data center. But look at what they did with eks anywhere and then CCS, which has a common control plane to your point, that's compelling. And so, you know, if you're a developer or you're an enterprise, you might not have If you want to go with this. I t world. We talked about earlier zeros before you came on on our last segment. Most I t is not that built out in terms of capabilities. So learning new stuff is hard, so operating Amazon might be foreign to most I t shops. This is a challenge. Did you agree with that? Or or how do you see that? >>Um, well, a lot of Amazon used, obviously just the interviews and numbers of fucked that right. Um, but I think the concept of in a world where you have that common operating layer that spans it's no longer geographically limited to a data center or to a server. You know, it's it's now distributed across your entire multi cloud or distributed cloud environment. And so one of the important things right people remember is the world is becoming more dynamic and or distributed, and your I t strategy has to follow that. If you're doing things that are counted that you're not only standing still, you're actually going backwards. And so what Amazon is doing is they're allowing companies to be is dynamic distributors. They need to be to be able to maintain that that common operating layer that actually makes it management, because without it, you just you wind up in a situation. Like I said, that's incredible. A lot of people facing that today. And that's why that's why there's this big divergence, right? This five native cos they're going fast and legacy companies that can. >>Guys, I want to spend the next 10 minutes we have getting into more of the business side from this keynote because because I know your research on digital transmission first. I know you know the networking side up and down the stack and all that good stuff, but you've been doing a lot of research around the digital transformation with the cloud. Dave, you just put out a great great breaking and else think your 55th, um, episode on digital transformation with the cloud. It's very clear that Jackie is basically preaching, saying, Hey, Clay Christensen is former professor who passed away. He brought up this whole innovator's dilemma kind of theme and saying, Hey, if you don't get the reality that you're in, you better wake up and smell the coffee. It's a wake up call. That's what he's basically saying That's my take away. This is really this business management lesson. Leadership thinking is super important, and I know we've We've talked about people process, technology. Uh, let's Covad eyes this real quick. Bottom line. What is the playbook? Do you agree with jazz? His point of view here? Um, he's pretty being hardcore. He's like, literally saying adapter die in his own way. What, you guys thoughts on this? This is a true forcing function. This cove, In reality, >>I mean I mean, if you talk about the business transformation, digital transformation, business transformation, you know, what does that mean? I, like, said earlier that the last 10 years about I t transformation, I think the next 10 is gonna be about business transformation, organizational industry transformation, and I think what that means is the entire operational stack is gonna get digitized. So your sales you're marketing your your customer support your logistics. You know you're gonna have one interface to the customer as opposed toe, you know, fragmented stovepipe siloed. You know, data sets all over the place, and that is a major change. And I think that's ultimately what a W. S is trying to affect with its model and has obviously big challenges in doing so. But But that, to me, is what digital transformation is ultimately all about. And I think you're going to see it unfold very rapidly over the next several >>years. What's your reaction? What's your view on on the on Jackie? >>And he talked about his eight steps toe reinvention. Um and e think what digital transformation to me is the willingness to re invent disruptive own business even in the face that it might look horrible for your business, right? But understanding he is there something that I think is true. And a lot of, um, business leaders don't fully by this that if something is good for your customer, they're going to do it, and you can either make it happen, or you gonna watch it happen and then have the market taken away from me because there's a lot of cases you look at how slow you know, A lot of the banks, you know, operated until you know, the a lot of these, uh, cloud native, uh, money exchange systems came around the cape. Alan Ben more and things like that, right? Even retailers Amazon completely disrupted that model. You could say that Amazon killed, you know, Toys R us, but 20 rescue Toys R Us E. And I think there's got to be this hard willingness to look at your business model and be willing to disrupt yourself. And what Kobe did, John, I think, is a taught us a lesson that you have to be prepared for anything because nobody saw this coming. And sure you can. And a lot of companies thrived out of this, and a lot of one's gone away, but that the ability to be agile has never been more important. But you're only is Angela's. Ike lets you be, and that's what that's what. The W. Is going to sell us the ability to do anything you want with your business. But the staff, you have to have the business because they're willing to do that. >>You know, that's a great point. That's so smart. It's crime that's worth calling out. And we were talking before we came on live about our business with the Cube. There's no virtual, there's no floor anymore. So we had to go virtual if we weren't in the cloud. If we weren't doing R and D and tinkering with some software and having our studio, we'd be out of business. Dave. Everyone knows it. Now Get the Cube virtual. We have some software were position, and this kind of speaks directly to what Andy Jassy said. He said. Quote. If you're not in the process of figuring out as a company, how you're going to reinvent your customer experience in your product and reinvent who you are, you are starting to unwind. You may not realize it, but you are. What he's saying is you better wake up and smell the coffee and I want to get your guys reacted. You, particularly you around your experience and research. I've noticed that some customers that had cloud going on did well with co vid and said ones that didn't are still struggling not to catch up. So you're kind of intense. You got some companies that were that were on the wave, Maybe kind of figuring it out, that we're in good position and some that were flat footed and are desperate. Um, seems to be a trend. Do you agree with that? And what's your view on this idea of being ready? What does that even mean to be? Have readiness or >>take, you don't get the data points that Andy threw up there, right? That 50% of the companies that were the global fortune $500.2000 or are no longer here, Right? That Zatz Pretty shocking statistic. And that does come, uh, you know, from the willingness to disrupt your business. And if you got you're right. The companies that had a good, solid class raging in place, we're able to adapt their business very quickly. You could you look at retailers. Some had a very strong online presence. They had online customer service set up those companies didn't find other ones, were really forced to try and figure out how to let people in the store had a mimic. You know, the in store experience, you know, through from, uh, you know, support interface or whatever. Those are the ones that really struggling. So you're right. I think companies that were on the offensive plug to Dover companies that were fully in the cloud really accelerated their business and ones that didn't buy into it. I think they're struggling to survive in a lot of They're gone. >>Yeah, and all that. John, When Jesus was talking about his view of digital transformation, I was just writing down some of the examples to your point. The folks that were sort of had were cloud ready, covert ready, if you will. And those that weren't But think about think about automobiles. You know, there's testily even a manufacturer of automobiles or they software company. Personal health has completely changed over the last nine months with remote. You know, uh, telehealth automated manufacturing. You think about digital cash, e commerce and retail is completely, you know, accelerated. Obviously toe online. Think about kids in college and kids in high school and remote learning farming. You know, we've done a great job in terms of mono crops and actually creating a lot of food. But now I think the next 10 years is gonna be how do we get more nutritious food to people and so virtually every industry is ripe for disruption, and the cloud is the underpinning of that disruption. >>Alright, guys, got a few more minutes left. I want to get your thoughts quickly on the keynote. What it means for the customers that we're watching again. This is not a sales and marketing conference as they talk about. But if you're sitting in the audience, you guys, we're watching and we're virtual um Did it hit home with you? If you're a customer, what did he what? Give us Give the grades. Where do you Where do you hit a home run? Where he missed. Did he leave anything out? What's your take Zia's? We'll start with you. >>Um, I thought it was actually really good Keynote. I thought you did a good job of making the case for AWS. They talked about the open. They have more instances than anybody. So you could do almost any kind of compute in their cloud. I think one of the important lessons variety to is the importance. You can't just do everything. The software right? Hardware Still important silicon still important that, and to meet the needs of very special he needs from things like machine learning and AI. Amazon's actually spending their own silicon very much like Athens doing with their computers. And so if you are going to be a customer service focused company, you need to think of the I T. Stack and everything from the silicon, the hardware through the software, and build that integrated experience to Amazon's giving a tools to do that Now E. Do I would like to see Amazon be a little more, um, a supposed the cloud competitive friendly. The one thing I hear from customers all the time is they love the Amazon tools. They love the optimization capabilities, but you know, if they are adopting some kind of multi cloud strategy, the Amazon tools don't work in Azure and the capital don't work in Amazon. The same with Google, and it would be well within the best interests of those three companies. They find a way to get together and allow their common framework to work across clouds. Amazon's already got a lead that they could do that, and I don't think it's gonna be, but that that is something I think that's still missing from this world is they make it very difficult for customers to move the multi cloud. >>Well, some would say some people are saying, saying that the number one in the cloud I mean, got cloud wars Bob Evans over there saying Microsoft is dominating number one position over everybody else, multiple quarters in a row Now he's looking at revenue and granted. You got a lot of propping up there you got. You know, Windows server and sequel. You got a bunch of professional services, But clearly the I as in past side of the market, Microsoft is, like, way behind um So, yeah, they've got the numbers little legacy in their Microsoft should, and they got a little base. If I'm Amazon, I'm not. I'm worried about Microsoft more than anybody. I think you know, I looking at the Civil War between the Seattle forces. I mean, this is really Microsoft's gotta greatest all base, and they could flip that license deals and >>the cloud is good enough. I mean, it's myself doing very, very well with its classic Microsoft. You know >>they your point. Microsoft is the king of good enough, right? They put out features. They market heavily to the I t pro on. They put out licensing packages, so you're almost foolish to not at least fry their products. And then they do roll it out. So it's good enough and then you live with it for a while. But ultimately, whenever people use Microsoft, they do have an alternative under in there for a very special case. But e don't wanna >>the king of good enough. That's a great line. I love that. I'm gonna use that. But this Babel fish thing for Aurora that is a huge dagger. Potentially, it's an escape valve for customers. They wanna leave Microsoft. But clearly, if Microsoft you're gonna get penalized by running your license on Amazon. >>If our CEO our i t c t, I'd say, Okay, I definitely want to do business with with Amazon. That's what I heard today from Jassy, and I would want to hedge my bets either with Microsoft, especially if I'm a Microsoft shop or with Google's from analytics heavy unquestionably. I'd want to hedge my bets and have some kind of 70 30 80 20 mix. >>Look, if you're Andy Jassy and he's told me my interview, do it directly. I asked this question. He was very forthright. He doesn't hide from the fact that, uh, customers have multiple clouds, but they have a primary and secondary, but they're not gonna have, like, five or six major clouds. Yeah, it's hard to get these teams trained at to begin with. So there's a hedge. There's a supplier leverage. I get that. He's totally gets that. But if you're Amazon, you're gonna have your annual conference. You really don't wanna be in the business of talking about the other guys cloud, you say hybrid, right? It's on my show. You know, like you're competing. This is there's definitely competition between Microsoft and A W s. So you gotta respect that. But yeah, of course. There's multiple clouds called hybrid eks everywhere. Uh, container service. I mean, >>especially global, right? Different cloud providers of different strengths in different regions. You know, Microsoft, very strong in the Gulf. AWS isn't you know. So if you're a global company, um, you know, then you almost by default, have to go multi cloud multiple cloud vendors because of geographic differences. Obviously, China, with its own set of cloud providers. So, you know, smaller midsize businesses could get away with one, but As soon as you become global, you have to use more. >>Well, I'm a big fan of distributed computing. I loved the large scale concept of distribute computing. You got regions. Now you've got local zones. You got I O t edge. You got cloud going on Prem Edge. It's really an edge game at this point. Greater now distributed hyper Put hyper next to anything hyper cloud on your sounds better Piper >>Cube. And the opportunities the cloud providers and Amazon, you know, certainly is leading. This is the ability to take this complex, hyper distributed world and use their management tools toe create a normalized operating simplify What would be an overly complex world about it? >>Okay, we got a break. Just quick plug. There's a big salesforce event coming up on December 10th. Check it out on the Amazon site that that plug in you watching the cube stay tuned for more coverage after this break

>>LA Las Vegas. It's the cube hovering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Hey, welcome back everyone. This is the cubes live covers Las Vegas anus. Re-invent. I'm John furrier with Dave Alante extracting the signal from the noise sponsored by Intel and AWS. They put the stage together, two big stages. Day two, we're here day Jew, I rapid fire a devil's execs coming on. Dave McCann, cube alumni, VP of ADAS migration marketplace and control services known most for the marketplace and a lot of stuff going on. That's exciting in the marketplace. It's where all the ecosystem actions happening. Congratulations on you six. I know you're busy, you've got new stuff, but the marketplace seems to be changing the procurement and the consumption of software and solutions, whether it's SAS or images and technology, your demand on the marketplace. So great to be back, Kimberly. It's another reinvent. This is my sixth. Um, so lots going on. Marketplace has got a lot bigger in the last year. >>We're up to 260,000 customers, so not substantial growth from last year. And we're adding thousands of customers every month. Um, big headline I have to start with is marketplace has been a marketplace for software for the last seven years. And two weeks ago we launched a marketplace for data and it's a new service that we call AWS data exchange. And instead of allowing you to point, click subscribe to software, and if you're a data consumer and a bank and you're an analyst or you're a researcher and a pharma company, you actually buy data from hundreds of companies, you know, you can go into the new console, find the product and market, please go over to this console called data exchange. And you can go buy research data or you can buy healthcare data from change healthcare. You can buy news data from Thomson Reuters, you can buy consumer data from Experian. >>And we've launched 1400 products from 19 data providers and we've made it available globally. So it's a whole new class of intellectual property data sources in there as well. There's some open source public sources as well. And we're adding literally dozens of products every day. So really easy API. And the cool thing is that after you subscribe, you copy it right into your S three bucket, moves into your VPC and then you move it into your project and you can actually create a Lambda function with the next version of the data. The next day gets updated and know the data just gets updated. And the use case here is like, if I'm a retail outlet, I could buy or go and get weather data and do some things. Is that kind of the model? Exactly. Right. I mean companies all over the world by $150 billion worth of data, but it's all delivered thousands of different EPA. >>Dave, we got cube data, we put all of our advanced data out there, which might be an opportunity. But seriously, Q three 65 is our new listing on the market place. So we have a Q cloud service, little plug for the cube cube three 65 on the marketplace and we're, we're happy. But I want to ask you because one of the things that's coming up is, um, from your team in the marketplace, the industry is this notion of buying through the marketplace. The trend is increasing private offers is a hot feature that you guys have put in place. And there's some news there. Could you explain how private offers is changing the game in the marketplace? I'd love to show you, if you think about it, a lot of our customers are developers and builders and they're working on something on test and it's a pilot and you use it for a few hours or a week. >>But once a company contracts for software and if you're contracting for a lot of software, procurement, one's best price, legal one's best terms, and there's going to be in negotiation and we call that negotiation of private offer. And so that involves salespeople. And so our top software vendors like a Splunk and new Relic of trend micro, uh, Palo Alto, their sales guys, or negotiate our sales ladies and negotiating with the customer for a couple hundred thousand dollars and there's a price and terms. When are you going to pay? What clauses do you agree? How many of you buying? Where are you going to deploy? All of that's negotiated and no, we have a portal for the sailor. We've had it for a year, we've made some really good changes and the central, they arose the seller to automate that price court rate into your account and then the buyer subscribes, and this is allowing our sailors to do quotations in the hundreds of thousands, the millions and sometimes in the tens of millions on a contract rate through marketplace, you're doing millions of dollars of business with with private offers today we've seen vendors write contracts for over $10 million, Peter over three years SAS contracts. >>So we've had that program available for the last year and we'd be working on a lot of features with the help of people at Splunk and new Relic today, we've made it available for all ISBNs and marketplace. You say all the iterations get to take place in the market place, so it's all those informations. I should just speak, just make sure I get it right before private offers were invite only kind of thing. Now you're making it available to all ASVs. Correct. We've got one. As of today, we've over 1,500 ASVs in the marketplace. You're one of them. And with those 1500 vendors within our go into marketplace, there's a new button and the seller portal and it says create Piper offer and any over ISV can note create a private. So I'm going to put my little seller hat on. I have a SAS application. Look at, I don't have a big Salesforce. >>How can you guys help me? How do I, how do I get more sales? Is there a, there's the money just following my bank account. Oh, are you overstaffed to do marketing? You have to do some discussions. You know, we had a company in the UK called Matilda MAF last year on, on the cube. Medallian Staffan was 17 engineers and new salespeople and now they're like 300 people, two runs of venture and everything's through marketplace. Big booth here. Well, congratulations to those guys. We love them. And to come Mytilene again, they engage rafted with you guys. It is all the sales and go to market through AWS complete everything goes through marketplace. Okay. We've made it available to 1,500 vendors today. Okay. So changing procurement. I love that trend. You kind of modernizing the procurement process with the marketplace. What about um, resellers? What's the update there? >>So the big update there is, you know, for the first six years of marketplace we couldn't handle the resaler. We didn't conceive of the VAR or the consulting partner and we got a lot of feedback that we had to do work. And so we've taken private offers and we've designed consulting partner, private offers and no, we've saved up over a hundred top consulting partner resellers, the likes of an OCT of an Ashi, a Rackspace in Europe computer center and Softcat and they were working with all of the world's top resellers and know if you are a Splunk or trend micro, you can authorize computer center to offer private prices to their customers and you can actually authorize a wholesale price from Splunk directly to computer and get paid for. Well, they could actually set the price. Mark it up. I got to ask you, Dave, what's your vision for marketplace? >>Because you're doing a great job. It seems like you're paddling as fast as you can constantly improving the service. I know you've got a big to do list, you want to make it easy or make it faster, all that good stuff, but what's the vision? Where do you see marketplace evolving? You know, Jeff Bezos says it's only day one. We're seven years old. We've barely scratched the surface. Global software is 450 billion growing 8% data is 150 billion growing at 3% you've got a $600 billion industry. Marketplace has not touched a tiny percentage. We want all of our customers to be able to find, discover, provision, and run all of their software and their data out of marketplace and it's gonna take us another 10 years and you get a lot of teen. How big is the team? We never publish JFK K but just let's say the Andy Jassy continues to invest in the business and as we add engineers and we add business people and development people, you know we work well with our partners. >>We cool market. Yeah, we grew up well, as Andy always says, you know, and you always say this, the customer needs come first. That's kind of a vetting process. Then working backwards documents, we know all about that history. What is the number one customer need that you're hearing, that you're addressing, that you see coming up around the corner, you're constantly working on and new potentially new requests that are coming in that are relevant to your business. There's two or three big customer needs. The number one is governance. So while engineers are going fast, innovating, legal, finance and procurement need to be confident that the contracts are being written well and is the spend under control. And so we're doing a lot of work around tagging or the resources so that it's tagged to the right project. Did you overspend on the project? And then on the contracting inside we launched this thing called enterprise contract and we're continuing to work with customers. >>We just integrated into the leading procurement system called ACP a Reebok and we launched that last week. And so we know have a procurement workflow that says procurement's happy it finances happy legal needs to be happy because the engineers want to go quick, but we can't leave the it finance legal professionals behind because they protect the risks for the kinda, the contracts too are all there. So you're modernizing procurement. We are transforming the supply chain for data and for software, you know big. You know I'm a big fan of what you do and I know you got a lot of hard work, a lot of demand, there's a lot of money to be made there, water customers to make happy and you know we've got great customers that BP or shell or Coca Cola, Coke industries that are using marketplace on a regular basis and we have customers now with over a foes and subscriptions from over 50 vendors and that's a single customer. >>Dave, thank you so much for coming on. I know you're super busy and making the time for wrestling the cube means a lot. You've been with us the entire journey for the Ravens, our seventh reinvent. You've been a great one. I missed one but usually patients man it's just you. You saw it working backwards and it's happening. It's working well and you know we learn from our customers and I'm having a dinner tonight with 40 more and I'm sure they'll hit us with more requirements. I'll check my email for the invite. I'm sure it's in there somewhere. Dave McKenna inside the cube. Good friend of the cube, hardworking, billable in the next generation, the next gen marketplace. Check it out. Of course, the cube three 65 our new offering is up there as of Monday. It's kind of a soft launch, but we're telling you now, I'm John Freud. Dave Volante. Thanks for watching back with more. Thanks and have a short break.

>> Live from San Diego, California It's the queue covering Sisqo Live US 2019 Tio by Cisco and its ecosystem barkers. >> Welcome back. It's the Cube here at Cisco Live, San Diego 2019 times. Two minute My co host is Day Volante. First, I want to welcome back custom dos Katie, who is the vice president. Product management with Cisco Compute. We talked with him a lot about Piper Flex anywhere in Barcelona. Wanna welcome to the program of first time guests Laura Crone, who's the vice president of sales and marketing group in NSG sales and marketing at Intel. Laura, thanks so much for joining us, All right, So since Katie has been our program, let let's start with you. You know, we know, you know. We've watched, you know, Cisco UCS and that compute, you know, since it rolled out for about a decade ago. Now on DH, you know Intel always up on stage with Cisco talking about the latest enhancements everywhere I go this year, people are talking about obtained and how technologies like envy me are baking in tow. The environment storage class memories, you know, coming there. So you know, let's start with kind of intel. What's happening in your world and you know your activities. Francisco live >> great. So I'm glad to hear you've heard a lot about octane because I have some marketing of my organization. So obtain is the first new memory architecture er in over 25 years. And it is different than Nanda, right? It is you, Khun, right? Data to the silicon that is programs faster and has greater endurance. So when you think of obtain its fast like D ram But it's persistent, like nay on three D now. And it has some industry leading combinations of capabilities such a cz high throughput, high endurance, high quality of service and low latent see. And for a storage device, what could be better than having fast performance and hi consistency. Oh, >> Laura's you say? Yeah, but 25 years since this move. You know, I remember when I when I started working with Dave, it was, you know, how do we get out of you know, the horrible, scuzzy stack is what we had lived on for decades there. And finally, Now it feels like we're coming through the clearing and there is just going to be wave after wave of new technologies that air free to get us high performance low latent c on the like. >> Yeah, And I think the other big part of that which is part of Cisco's hyper flex all in Vienna, is the envy me standards. So, you know, we've lived in a world of legacy satya controllers, which created a lot of bottlenecks and the performance Now that the industry is moving toe envy me, that even opens up it. Mohr And so, as we were developing, obtain, we knew we had Teo go move the industry to a new protocol. Otherwise, that pairing was not going to be very successful. >> Alright, so Katie all envy me, tell more. >> So we come here and we talk about all the cool innovations we do within the company. And then sometimes you come here and we talk about all the cool innovation we do with our partners, our technology partner, that intel being a fantastic technology partner, obviously being the server business, you've got a partner with intel on. We've really going away that across the walls ofthe two organizations to bring, uh, just do to life, right? So Cisco 80 I hyper flex is one of the products >> we >> talked about in the past. Hyper Flex, all in Miami that uses Intel's obtain technology is, well, it's Intel's three demand all envy me devices to power really the fastest workloads that customers want to put on this device. So you talked about free envy me. Pricing is getting to a point where it becomes that much more accessible to youth, ese for powering databases for par like those those work clothes required that leyton see characteristics and acquire those I ops on DH. That's what we've enabled with Cisco Hyper Flex collaborating with Intel of Envy Me portfolio. >> Remember when I started in the business, somebody was sharing with me to educate me on the head? A pyramid? Think of the period is a storage hierarchy. And at the top of it, was it actually an Intel solid state device, which back then was not It was volatile, right? So you had to put, you know, backup power supplies on it. Uh, so but any rate and then with all this memory architecture coming and flash towards people have been saying, well, it's going to flatten that pyramid. But now, with obtain. You're seeing the reemergence of that periods of that pyramid. So help us understand, sort of where it fits from a supplier standpoint and a no yam and ultimate customer. Because if I understand it, so obtain is faster than NAND, but it's going to be more expensive, but it's slower than D Ram, but it's cheaper, right? So where does it fit? What, the use cases? Where does it fit in that hierarchy? Maybe. >> Yeah. So if you think about the hierarchy at the very top is D RAM, which is going to be your fastest lowest Leighton see product. But right below that is obtained. Persistent memory, the dims and you get greater density because that's one of the challenges with the Ram is they're not dense enough, nor are they affordable enough, right? And so you get that creates a new tear in the store tire curry. Go below that and you have obtain assist ease, which bring even mohr density. So we go up to a 1.5 terabyte in a obtain sst, uh, and you that now get performance for your storage and memory expansion. Then you have three Dean and and then even below that, you have three thing and Q l c, which gives you cost effective, high density capacity. And then below that is the old fashioned hard disk drive. And then magnet. Yeah, you start inserting all these tears that give architects and both hardware and software an opportunity. Teo rethink how they wantto do storage. >> So the demand for this granularity obviously coming from your your buyers, your direct bars and your customers. So what does it do for you and specifically your customers? >> Yeah. So the name of the game is performance and the ability to have in a land where things are not very predictable, the ability to support any thing that the your end customers may throw at you if you're a 90 department. That may mean a bur internal of, uh, data scientist team are traditional architect off a traditional application. Now, what Intel and Cisco can do together is truly unique because we control all parts of the stack, everything from the sober itself to the to the storage devices to the distributed file system that sits on top ofit. So, for example, in Etienne, hyper flecks were using obtain as a cashing here on because we write the distributed file system. We can speak in a balance between what we put in the cash in care how it moved out data to the non cashing 3 90 year, as as Intel came out with their latest processors that support memory class torched last memory. We support that now we can engineer this whole system and to end so that we can deliver to customers the innovation that Intel is bringing to the table in a way that's consumable by their, uh, one more thing I'll throw out there. So technology is great, but it needs to be resilient because I D departments will occasionally yank out the wrong wire. They are barely yank out the wrong drive. One of the things that we work together with Intel What? How do we court rise into this? How to be with reliability, availability, serviceability? How do we prevent against accidental removal or accidental insertion on DH? Some of those go innovations have let Teo asked, getting out in the market a hyper flecked system that uses these technologies in a way that's really usable by teens in our customs. I'd >> love to double click on that in the context of envy. Envy? What you guys were talking about, You mentioned horrible storage deck. I think he called it the horrible, scuzzy stack. And Laura, you were talking about the You know, the cheap and deep now is a spinning disk. So my understanding is that you've got a lot of overhead in the traditional scuzzy protocol, but nobody ever noticed because you had this mechanical device. Now, with flash storage, it all becomes exposed. And VM e allows just a like a bat phone. Right? Okay, so correct me where I got that wrong, But maybe you could give us the perspective. You know what? Why Envy Emmy is important from your standpoint. And how are you guys using it? >> Yeah, I think envy and me is just a much faster protocol. And you're absolutely right. We have a graph that we show of the old world and how much overhead there is all the way down to when you have obtained in a dim solution with no overhead octane assist. E still has a tiny bit, but there's a graph that shows all of that Leyton C is removed when you deploy, obtain so envy me gives you much greater band with right. The CPU is not bottlenecked, and you get greater CPU efficiency when you have a faster interface like and >> and like hyper flexes taking advantage of this house. Oh, >> yeah? Let me give you a couple of examples. So anything performance, the first thing that comes to mind is databases. So for those kinds of workloads, this system gets about 25% better performance. Next thing that comes to mind is people really don't know what they're gonna put on the system. So sometimes they put databases, sometimes put mixed workloads. So when we look at mixed workloads way get about 65% or so better I ops, we get 37% better lately sees. So even in a mixed I opened Wyman wherever have databases you may have a Web theory may have other things. This thing is definite resilient to handle the workload. So it's it just opens up the splatter abuse cases. >> So any other questions I had was specific to obtain. D ram has consumer applications, as does Flash Anand was obtained. Have similar consumer applications can achieve that volume so that the prices, you can come down, not free, but continue to sort of drive the curves. >> Eso When we look at the overall tam, we see the tam growing out over time. I don't know exactly when it crosses. Over the volume are the bits of the ram, but we absolutely see it growing over time. And as a technology ramps, it'll have a you know, it costs ramping curves. Well, >> it'll follow that curve. Okay, good. >> Yeah, Just Katie. Give us a little bit. Broad view of hyper flex here. Att? The show, people, you know, play any labs with the brand new obtained pieces or what? What other highlights that you and the team have this week? >> Yeah, absolutely. So in in Barcelona, we talked about high, perfect for all that is live today. So in the show floor, people can look at the hyper flex at the edge combined with S t one. How do you control How did deploy thousands of edge locations from a centralized location to the part of the inner side which cloud based management too? So that whole experience is unable. Now, at the other end of the spectrum is how do we drive even more performance. So we were always, always the performance leader. Now we're comparing ourselves to ourselves to behavior 35% better than our previous all flash. With the innovation Intel is bringing to the table, some of the other pieces are actually use cases. So there's a big hospital chain where my kids go toe goto, get treated and look and see the doctor. There are lots of medical use cases which require epic the medical software company to power it, whether it is the end terminals or it is the back and database. So that epic hyperspace and happy cachet those have been out be invalidated on hyper flex, using the technology that we just talked about around update on doll in via me that can get me there is that much more power. That means that when my my doctor and the nurse pulls off, the records don't show up fast. But all the medical records, all of those other high performance seeking applications also run that much more streamlined, so I would encourage people little water solution. We've got a tremendous set off demos out there to go up there and check us out >> and there's a great white paper out on this, right? That e g s >> e g is made one of the a company that I've seen benchmarking Ah, a hyper flex. >> So whatever Elaborate where they do a lab report or >> it's what they do is they bench around different hyper converge infrastructure vendors. So they did this first time around and they and they said, Well, we could pack that much more We EMS on a on a hyper flex with rotating drives. And then they did it again And I said, Well, now that you got all flash Well, deacon, you got now the performance and the ladies see leadership and then they did it again and they said, Well, hang on, you you've kind of left the competition that does that. That's not going to make a pretty chart to show when we compare your all in Miami against your hyper so many. When you get that good, you compare against yourselves. We've been the performance theater on the estate has been doing the >> data obtained. The next generation added up, >> and this is what a database workload. OK, nowyou bringing obtain a little toast to the latest report >> has that measures >> measures obtain against are all flash report and then also ship or measure across vendors. So >> where can I get this? Is at some party or website or >> it's off all of this. All of this is off off the Cisco Hyper Flex website on artist go dot com. But F is the companies that want to go directly to their about getting a more >> I guess final final question for you is you know, I think back the early is ucs. It was the memory enhancements that they had that allowed the dentist virtual ization in the industry back when it started. It sounds like we're just taking that to the next level with this next generation of solutions. What what else would you out about? The relationship with Cisco and Intel? >> Eso, Intel and Cisco worked together for years right innovation around the CPU and the platform, and it's super exciting to be expanding our relationship to storage. And I'm even more excited that the Cisco hyper flex solution is endorsing Intel obtain and three thing and and we're seeing great examples of really use workloads where are in customers can benefit from this technology. >> Katie Laura. Thanks so much for the update. Congratulations on the progress that you've made so far for David Dante on Student, and we'll be back with more coverage here. It's just go live 2019 in San Diego. Thanks for watching the cue >> theme.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> Welcome back, everyone to the Cubes. Live coverage of Del Technologies World Here at the Sands Expo at the Venetian. I'm your host, Rebecca Knight, along with my co host Stew Minutemen. We have Sean Kinney joining the program. He is a senior director primary storage marketing at Delhi emcee Thank you so much. Thrilled to redirect from Boston, >> the home of the universe, >> it's indeed well, we would say so so and so lots of news coming out this morning yesterday. Talk about some of the mean. If you want to start with talking about the storage platform, the mid range storage market in general sort of lay the foundation What you're seeing, what you're hearing, and then how the new the new products fit in with what with what customers air needing. We'LL >> break that a couple pieces. I believe that the mid range of the storage market is the most competitive. They're the most players. There are different architectures and implementations, and it's the biggest part of the market. About fifty eight percent or so so that attracts a lot of investments in competition. So what we announced today, it was the deli emcee Unity X t Siri's and that built on all the momentous on the success we had with Unity, which we actually announce basically the same conference three years ago. So we've sold forty thousand systems Good nowhere market leader, and the first part is the external storage market. It's declined, continues to be exaggerated. One of the Ellis firms predicted it wasn't gonna grow it all last year. Well, crew sixteen percent actually grew three billion dollars. It's with unity. Its original design points like the sort of Day one engineering principles were really around a couple of things. One was a true, unified architecture being told to do. Block storage, file storage and VM. Where've evils that was built in, not bolted on like no gateways, no extra window licensing, no limitations on file system size. The second was around operational simplicity and making it easy for a customer to install easier for custom manage. He was a customer of use remotely manage, and then we took that forward by adding all inclusive software, making it easy to own like not him to worry about software contracts. So all of that goodness is rolling forward in the engineering challenge that we took on with E x t wass. You know, a lot of mid range systems switch of those that have an active, passive architectural design. It's hard to do everything at once. Process, application data run, data reduction, run data services like snapshots of replications, all without significantly impacting performance. And a lot of cases, our competitors and other platforms have to make compromises. They say. Okay, if you want performance turned this function off. What was that challenge that our engineers took on? And that's what we came up with. No compromise for midrange storage. That's unity. Extinct. >> Yeah, Shawn, it's it's really interesting you could I could probably do a history lesson on some of the space thing back to, you know, early days when you know we were first to DMC. It was like, Oh, the data general product line. You know, getting merged in very competitive landscape is, as you said, most companies had multiple solutions, you know, unity in the name of it was to talk about Dell and AMC coming together, but what I want you coming on is there was often, you know, okay, somebody came out with, like, a new a new idea, and they sold that as a product. And then it got baked into a feature, and we saw that happened again and again and again. And the storage market, what are some of those key drivers is toe. You know what customers look for? How you differentiate yourself. Are we past that? You know, product feature churn way in the platform phase. Now, you know, we always say it would be great if software was just independent of some of these. But there's a reason why we still have storage raise. Despite the fact that, you know, it's been, you know, it's been nibbled at by some of the other, you know, cloud and hyper converge. You know, talk applications. >> Yeah. Uh, let's say that a couple ways in that, especially in the mid range. Our customers expect the system to do everything you know. It has to do everything Well, it doesn't get to be specialized for a lot of our customers. It is thie infrastructure. It is that data capital, which is the lifeblood of their business. So the first thing is it has to do everything. The second thing I would say is that because it has to do everything and one feature isn't really gonna break through anymore. The architecture's the intelligence, the reliability, the resiliency that takes years of hardening. Okay, the new competitors has to start a ground zero all over again. So I would say that that's part of the second thing I would say is, it's about the experience inside the box from the feature function and outside the box. How do we get a better experience? And for us, that starts with Cloud I. Q. It's a storage, monitoring and analytics platform that you can really you have infrastructure insight in the palm of your hand. You're not tied to a terminal, and if you want to be, of course you can. But you can now remotely monitor your entire storage environment. Unity, Power Max SC Extreme Io. Today we announce connect trick support for sandwiches in VM support. So we're going broader and deeper, you know, as well as making its water. So it's hard to have one feature breakthrough when you need the first ten to even get in the game. >> Well, as you said, for for these customers, this infrastructure has to do it all. And and so how do you manage expectations? And how do you How do you work with your customers? Maybe who have unrealistic expectations about what it can do. >> Our customers are the best. I mean, everybody says it, but because they push us and they push the product and they want to see how far it can go and they want to test it. So I love them. I love because they push us to be better. They push us to think in new ways. Uh, but yeah, there are different architectures. Have differences. Thumbs Power Max is an enterprise. High end, resilient architecture. It's never going to hit a ten thousand dollar price point like the architecture wasn't designed. And so for our customers that wants all these high end features like an end to end envy me implementation. Well, that's actually why we have power, Max. So you don't want to build another Power Macs with unity. So while the new unit e x t, it is envy Emmy ready and that'LL give us a performance boost We're balancing the benefits of envy. Emmy with the economics, the price point that come with it. >> All right, So, Sean, talk about Get front from the user standpoint, you know, we've We've talked about simplicity for a long time. I remember used to be contest. It's like All right, well, you know, bring in the kids and has he how fast they can go through the wizard Or, you know, he had a hyper converts infrastructure. It should just be a button you press and I mean had clouded. Just kind of does it. When we look at the mid range, you know, where are we in that? You know, management. You talked about Cloud like you, you know, how do we measure and how to customers look at you know how invisible their infrastructure is? >> I think every I don't think any marketing person worth his salt would say, My product is hard to use. It's easy to use the word simplicity, but I think it's we're evolving. And again, it's that outside the box experience now, the element manager Unisphere for um, for unity is very easy to use with tons of tests and research. But it's going beyond that is how do we plug into the VM? Where tools. How do we plug? How do we support containers? How do we support playbooks with Ansel? Forget it. It's moving the storage. Management's out of storage. Still remember, twenty years ago, we helped create the concept of a storage admin. You know, things that coming full circle. And except for the biggest companies, you know that it's becoming of'em where admin that wants to manage the whole environment. >> Okay, I wonder if you could walk us up the stack a little bit. You know, when you talk about these environments at the keynote this morning, we're talking about a lot of new application. You're talking about a I and M l. What's the applications, Stace? That's the sweet spot for unity. And, you know, you know, you mentioned kind of container ization in there, you know, Cloud native. How much does that tie into the mid range today? >> Yeah, I think it goes back to that. All of the above. Its some database, some file sharing, some management and movement of work loads to the cloud. Whether be cloud tearing. What? Running disaster recovery As a service where you know you need the replication You just don't want to pay for and manage and owned that second sight in the cloud. We'Ll do that as a service. So I, uh I think it's again. It goes back to that being able to do everything and with the rise of the Internet of things with the rise of new workloads, new workload types, they're just more uses for data and data continues to be the light flooding of business. But it you need the foundation. You need the performance. And with X t now twice as fast as the previous generation, you need the data reduction with compression. Indeed, implication with extra that's now up to five to one. You need the overall system efficiency so the system doesn't have a ton of overhead, and you need multiple paths to the cloud For those customers that already ofwork loads in the cloud. No, they're going to go there in the next twelve months or know that they have to at least think about it and so that we future proof them across all boys. So you need those sort of foundational aspects and we believe we're basically best in class across all of them. But then you get more >> advanced. I want to get your thoughts on where this market is going. As you said that analysts that the news of its demise has been greatly exaggerated, analysts are just not getting it right. I mean, they said it wasn't gonna grow a gross. Sixty grew sixteen percent. Why are they getting it wrong? Are there and also do? What do you see as sort of the growth trajectory of this market? I'm not >> sure they're getting it wrong. And they may be underestimating the new use cases and the new ways customers using data What I think we should probably do a better job of as an industry is realize that there is a lot of space for both best of breed infrastructure and converged infrastructure and things like Piper converge. It's not an or conversation, it's an and conversation, and no one thinks that I love working about Del Technologies is we have the aunt, you know, for us, it's not one or the other, and that's all we could sell. We have the aunt, and that allows us to really better serve our customers because over eighty percent of our customers have both. >> So, Sean, you mentioned working for Del Technologies. There are a couple people that have been at this show for a while there. Like boy, they didn't spend a lot of time in the keynotes talking about storage. Bring us in a little bit. And inside there, you know, still a deli emcee. You got still a storage company. >> Still, you've seen the name isn't there very much. So you know that we wouldn't be spending all this time and R and D and you've heard about the investments we've made in our stores sales organization and our partner organization. You don't do those investments. If you're not committed to storage it, you know, way struggled for a while. We're losing share for awhile, but that ship has turned for the last four quarters. We've grown market share in revenue, but we're pretty good trajectory. I like our chances. >> I want to ask you about something else that was brought up in the keynote. And that is this idea of a very changing workforce. The workforce is now has five generations in it. Uh, it is a much younger workforce in a in a work first that wants to work in different ways. Collaborate in different ways. Uh, how are you personally dealing with that with your team, Maybe a dispersed team. How are you managing new forms of creativity and collaboration and innovation in the workforce? And then how are you helping your customers think about these challenges? >> You know, I, uh, maybe I can't write for the Harvard Business Review. For me personally, this is my approach that is one guy's opinion for me. It's about people like you want to manage the project, not the people I expected. I trust my staff, and they range from twenty two to sixty two to be adults in to get the job done and whether they do it in the office or at home, whether they do it Tuesday at two o'Clock or Tuesday at nine o'Clock. If it's due Wednesday, I'm gonna trust them to get it done. So it's, uh, there's a little of professionals. It does require sometimes more empathy and some understanding of flexibility. But I participate in that change to I don't want to miss my kid's game, and I wanna make sure I bring my daughter to the dentist, So I, uh, I think it's for the best, because we're blurring the lines of on and off. I could see again. I don't write for our business, really a time in the next few years where vacation time is no longer tracked. I don't think that far away >> a lot of companies don't even have it at all. I mean, it's >> just you >> get your work done, do what you need to do. >> So I love it because then we come back to being more of it. It's even more about, um, a meritocracy and performance and delivery and execution. So, uh, I think it's only the better and more productive employees, happier employees. It's actually reinforcing cycle. What I found, >> and that's good for business. That's a bottom line. >> Employees. You good >> for Harvard Business Review. >> So, Sean, last thing I wanted to get is for people that didn't make it to show. Give them a beginning of flavor about what's happening from a mid range to orange around the environment here and tell us, how much time have you been spending at the Fenway and, you know, pro Basketball Hall of Fame sex mons you know, in the Expo Hall there because I know what a big sports got. You >> are not enough is the first question, quite simply, the best mid range storage just got better now the market leader, when all the advantages, we have immunity. We just rolled them forward to a new, more efficient, better performing platform. So it's, ah, our customers are gonna love over bringing forward, and I think it's our sales. Guys will find it much easier to sell. So we're, uh, we're thrilled with today's announcements. Were thrilled with where the marketplaces were thrilled with our market position and best is yet to come. >> Well, we were thrilled to have you on the cute. So thank you so much for coming on. >> It's always a pleasure. >> I'm Rebecca Knight for Stew Minutemen. We will have much more of the cubes Live coverage from Del Technologies World coming up in just a little bit

(techy music) >> Live from Toronto, Canada, it's theCUBE covering Blockchain Futurist Conference 2018, brought to you by theCUBE. (techy music) >> Hello, everyone, and welcome back. This is the live CUBE coverage here in Toronto, Ontario here in Canada for the Untraceable Blockchain Futurist Conference. This is day two of wall-to-wall CUBE coverage. We've got great presentations going on, live content here on theCUBE as well as in the sessions, great networking, but more important all the thought leaders in the industry around the world are coming together to try to set the standards and set up a great future for cryptocurrency and blockchain in general. Our next two guests are very special guests for theCUBE and we're excited to have them on, the Honorable Wayne Caines, Minister of National Security for the government of Bermuda, and Kevin Richards, concierge on the Fintech business development manager, part of the Bermuda Business Development Agency. Thank you guys for coming on, really appreciate the time. >> Thanks very much. >> Thank you for having us. >> Why this is so important is that we heard your presentation onstage, for the folks, they can catch it online when they film it and record it, but the Bermuda opportunity has really emerged as a shining light around the world, specifically in the United States. In California, where I live, Silicon Valley, you guys are now having great progress in hosting companies and being crypto-friendly. Take a minute to explain what's happening, what's the current situation, why Bermuda, why now, what's developing? >> This has all happened over the last eight months. We were looking in November of 2017 to go in the space. In January we went to the World Economic Forum in Davos in Switzerland. When we went to Davos in Switzerland something very interesting happened. People kept coming up to us, I was like the Hound of the Baskerville, or the Pied Piper if you please, and so, so many people were coming up to us finding out more information about Bermuda. We realized that our plan that we thought we could phase in over 18 months, that it had to be accelerated. So, whilst we were at the World Economic Forum in Davos we said to people, "Listen, if you want to change the world, "if you want to help Bermuda to grow, if you're serious," this is a Thursday, "Meet us in Bermuda on the Monday morning." On the Monday morning there are 14 different people in the room. We sat in the room, we talked about what we wanted the world to be, how could Bermuda be in place, what are the needs in this industry, and by the Wednesday we had a complete and total framework, and so we split up into industries. Number one was ICOs, we wanted to look at how to regulate the ICO market. Number two, we wanted to look at digital asset exchanges or cryptocurrencies or how do we regulate security tokens and utility tokens and what do exchanges look like, how do we do exchanges in Bermuda, and then we wanted to talk about education and setting up incubators. And so, come fast forward to July, August, we have an ICO bill in place that allows us to look at setting up ICOs in Bermuda. We wanted to focus on the legal and the regulatory framework, so this is a nascent space. A number of people are concerned about the dark actors, and so we wanted to set up a jurisdiction that traded on our international reputation. Now, remember for the last 60 years reinsurance, finance, captives, hedge funds, people in the financial services market have been coming to Bermuda because that's what we do well. We were trading on the reputation of our country, and so we couldn't do anything to jeopardize that. And so, when we put in place the ICO legislation we had consultants from all over the world, people that were bastions and beasts in industry, in the ICO industry and in the crypto world came to Bermuda and helped us to develop the legislation around setting up an ICO. So, we passed the ICO legislation. The next phase was regulating cryptocurrencies, regulating digital assets, and we set up a piece of legislation called the Digital Asset Business Act, and that just regulates the digital asset space exchanges, and the last piece we wanted to do was a banking piece, and this is the last and we believe the most significant piece. We were talking to people and they were not able to open up bank accounts and they were not able to do, so we said, "Listen, "the Bermuda banking environment is very strong." Our banking partners were like, "Listen, "we love what you guys are doing, "but based on our corresponding banking relationships "we don't want to do anything to jeopardize that space," but how could we tell people to come to Bermuda, set up your company, and they can't open bank accounts? And so, we looked at, we just recently passed creating a new banking license that allows people to set up their business in Bermuda and set up banking relationships and set up bank accounts. That simply has to receive the governor's Royal Assent. As you know, Bermuda's still a British pan-territory, and financial matters have to get the okay of the Queen, and so that is in the final stages, but we're excited, we're seeing an influx, excuse me, a deluge of people coming to Bermuda to set up their companies in Bermuda. >> So, the first two pieces are in place, you have the legislation... >> Mm-hm. >> Mm-hm. >> You have the crypto piece, and now the banking's not yet, almost approved, right? >> It's there, it simply has to get the final sign-off, and we believe that it should take place within the next two weeks. So, by the time this goes to air and people see it we believe that piece will be in place. >> So, this is great news, so the historical perspective is you guys had a good reputation, you have things going on, now you added on a new piece not to compromise your existing relationships and build it on. What have you guys learned in the process, what did you discover, was it easy, was it hard, what are some of the learnings? >> What we've learnt is that KYC, know your customers, and the AML, anti-money laundering, and terrorist financing pieces, those are the critical pieces. People are looking in this space now for regulatory certainty, so when you're talking about people that are in the space that are doing ICOs of $500 million or exchanges that are becoming unicorns, a billion dollar entity in three months, they want a jurisdiction that has regulatory certainty. Not only do they want a jurisdiction with regulatory certainty, they want to open up the kimono. What has this country done in the past, what do they have to trade on? We're saying you can go to a number of countries in the world, but look at our reputation, what we're trading on, and so we wanted to create a space with regulatory certainty, and so we have a regulatory body in Bermuda called the Bermuda Monetary Authority, and they are an independent regulator that they penned the Digital Asset Business Act, and so the opportunity simply for people around the world saying, "Listen, we want to do an ICO, "we want to set up an exchange. "Where's a country that we can go to that has a solid reputation? Hold on, how many countries have law surrounding"-- >> Yeah. >> "The Digital Asset Business Act, how many ICO countries have laws. Guess what, Bermuda becomes a standout jurisdiction in that regard. >> Having a regulation signaling is really important, stability or comfort is one, but the one concern that we hear from entrepreneurs, including, you know, ourselves when we look at the market is service providers. You want to have enough service providers around the table so when I come in and domicile, say, in Bermuda you want to have the banking relationships, you want to have the fiduciary-- >> Yes. >> You want to have service providers, law firms and other people. >> Yes. >> How are you guys talking about that, is that already in place? How does that fit into the overall roadmap for your vision? >> I don't want to beat a horse (laughs) or beat a drum too much, that is what we do as a country. So, we have set up, whether it's a group of law firms and the Bermuda, excuse me, the Bermuda Monetary Authority, the Bermuda that's the register of companies that sets up the companies. We have Kevin, and Kevin will tell you about it, he leads our concierge team. So, it's one throat to choke, one person that needs, so when you come to really understand that the ease of business, a county that's business-friendly with a small country and with a small government it's about ease of reference. Kevin, tell us a little about the concierge team. >> It's like the Delaware of the glove, right? >> Absolutely. >> Come in, domicile, go and tell us how it works. >> I'll give you a little bit of background on what we do on the concierge side. So, one thing that we identified is that we want to make sure that we've got a structure and a very clearly defined roadmap for companies to follow so that process from when they first connect with the BDA in Bermuda to when they're incorporated and set up and moved to Bermuda to start running their business is a seamless process that has very clearly identifiable road marks of different criteria to get through. So, what I do as a concierge manager is I will identify who that company needs to connect with when they're on the ground in Bermuda, get those meetings set up for when they come down so that they have a very clearly mapped out day for their trip to Bermuda. So, they meet with the regulator, they meet with the government leaders, they meet with the folks who've put together legislation that, obviously you mentioned the service providers, so identifying who's the right law firm, corporate service provider, advisory firm on the ground in Bermuda, compliance company, and then making sure that depending on what that company wants to achieve out of their operation in Bermuda they've got an opportunity to connect with those partners on their first trip so that they can put that road map together for-- >> So, making it easy... >> Making it very easy to set up in Bermuda. >> So, walk me through, I want to come down, I want to do business-- >> Yeah. >> Like what I hear, what do I do? >> So, you send me an email and you say, "Listen, Wayne, we're looking at "doing an ICO launch in Bermuda. "I would like to meet with the regulator. "Can you put a couple law firms in place," in an email. I zip that over to Kevin or you go on our Fintech.bm website-- >> Yeah, I was going to say... >> Fintech.bm website, and Kevin literally organizes a meeting. So, when you come to Bermuda for your meeting you have a boardroom and all the key players will be in the boardroom. >> Got it. >> If you need somebody to pick you up at the airport, if you need a hotel, whatever you need from soup to nuts our team actually makes that available to you, so you're not running around trying to find different people to meet, everyone's there in the room. >> And the beauty of Bermuda is that, you know, the city of Hamilton's two square kilometers, so your ability to get a lot done in one day is, I think, second to nowhere else on the planet, and working with the BDA concierge team you're, you know, we connect with the client before they come down and make sure we identify what their needs are. >> The number one question I have to ask, and this is probably the most important for everyone, is do they have to wear Bermuda shorts? (laughs) >> When you come you tell us your size, you tell us what size and what color you want and we'll make sure, so the... I tell this story about the Bermuda shorts. The Bermuda shorts, Bermuda's always had to adapt and overcome. Bermuda, we have something called the Bermuda sloop and it's a sailing rig, and so we... The closest port to Bermuda is Cape Hatteras in North Carolina and we wanted to cut down the time of their voyage, so we created a sailing rig called the Bermuda rig or the Bermuda sloop. Over the years that has become the number one adopted rig on sailing boats. We've always had to adapt and become innovative. The Bermuda shorts were a way to adapt and to get through our very hot climate, and so if you look at just keep that in mind, the innovation of the Bermuda sloop and the Bermuda shorts. Now, this Fintech evolution is another step in that innovation and a way that we take what's going on in the world and adapt it to make it palatable for everyone. >> What's the brand promise for you guys when you look at when entrepreneurs out there and other major institutions, especially in the United States, again, Silicon Valley's one of the hottest issues around-- >> Yes. >> Startups for expansion, right now people are stalled, they don't know what to do, they hear Malta, they hear other things going on. What's the promise that you guys are making to the law firms and the people, entrepreneurs out there trying to establish and grow? >> The business proposition is this, you want a jurisdiction that is trading on years of solid regulation, a country and a government that understands business, how to be efficacious in business. When you come to Bermuda you are trading on a country that this is what we've done for a living. So, you don't have to worry about ethical government, is your money going to be safe. We have strong banking relationships, strong law firms, top tier law firms in Bermuda, but more importantly, we have legislation that is in place that allow you to have a secure environment with a clear regulatory framework. >> What should people look for as potentially might be gimmicks for other countries to promote that, you know, being the Delaware for the globe and domiciling, and what are some of the requirements? I mean, some have you've got to live there, you know, what are some of the things that are false promises that you hear from other potential areas that you guys see and don't have to require and put the pressure on someone? >> When you hear the people say, "We can turn your company around in the next day." That we don't require significant KYC and AML. Red flags immediately go up with the global regulatory bodies. We want when a person comes to Bermuda to know that we have set what we believe is called the Bermuda Standard. When you come to Bermuda you're going to have to jump through some legal and regulatory hoops. You can see regulation, the ICO regulation and the Digital Asset Business Act on BermudaLaws.bm. BermudaLaws.bm, and you can go through the legislation clause by clause to see if this meets your needs, how it will affect your business. It sets up clearly what the requirements are to be in Bermuda. >> What's the feedback from business, because you know, when you hear about certain things, that's why Delaware's so easy, easy to set up, source price all know how to do in a corporation, let's say in the United States-- >> We don't have the SEC handicaps that they have in America, going from jurisdiction to jurisdiction. You're dealing with a colony that allows you to be in a domicile that all of the key players finances... We have a number of the key elements that are Bermuda. We're creating a biosphere that allows a person to be in a key space, and this is, you have first move as advantage in Bermuda. We have a number of things that we're working on, like the Estonia model of e-residency, which we will call EID, that creates a space that you are in Bermuda in a space that is, it's protected, it's governed. We believe that when companies set up in Bermuda they are getting the most secure, the strongest business reputation that a country could have. >> The other thing I would add, I'll just say, you know, quality, certainty, and community is what that brand represents. So, you know, you've got that historical quality of what Bermuda brings as a business jurisdiction, you have the certainty of the regulation and that pathway to setting your company up and incorporating in Bermuda, and then the community piece is something that we've been working on to make sure that any of the players that are coming to Bermuda and connecting with Bermuda and setting up there, they feel like they're really integrated into that whole community in Bermuda, whether it be from the government side, the private sector side. You can see it with the companies that have set up that are here today, you know, they really have embraced that Bermuda culture, the Bermuda shorts, and what we're really trying to do as a jurisdiction in the tech space. >> What can I expect if I domicile in Bermuda from a company perspective, what do I have to forecast? What's the budget, what do I got to do, what's my expectation? Allocate resources, what's going to be reporting, can you just give us some color commentary? >> So, with reference, it depends what you're trying to do, and so there will be different requirements for the ICO legislation. For the ICO legislation a key piece of the document actually is the whitepaper. Within the whitepaper you will settle what your scope of business is, what do you want to do, what you know, everything, everything that you require will be settled in your whitepaper. After the whitepaper is approved and if it is indeed successful, you go to the Bermuda Monetary Authority and they will outline what they require of you, and very shortly thereafter you will able to set up and do business in Bermuda. With reference to the digital asset exchanges, the Digital Asset Business Act, such a clear guideline, so you're going to need to have a key man in Bermuda, a key woman in Bermuda. >> Yeah. >> You're going to need to have a place of presence in Bermuda, so there are normal requirements-- >> There's levels of requirements based upon the scope. >> Absolutely. >> So, if you run an exchange it has to be like ghosting there. >> Yeah, yeah, you need boots on the ground. >> And that's why the AML and the KYC piece is so important. >> Yeah. Well, I'm super excited, I think this is a great progress and this has been a big uncertainty, you know, what does this signal. People have, you know, cognitive dissonance around some-- >> Yes. >> Of the decisions they're making, and I've seen entrepreneurs flip flop between Liechtenstein, Malta, Caymans. >> Right. >> You know, so this is a real concern and you guys want to be that place. >> Not only, we will say this, Bermuda is open for business, but remember, when you see the requirements that we have some companies won't meet the standard. We're not going to alter the standard to accommodate a business that might not be what we believe is best for Bermuda, and we believe that once people see the standard, the Bermuda Standard, it'll cascade down and we believe that high tides raises all boats. >> Yeah. >> We have a global standard, and if a company meets it we will be happy for them to set up and do business in Bermuda. >> Well, I got to say, it's looking certainly that leaders like Grant Fondo in Silicon Valley and others have heard good things. >> Yeah. >> How's been the reaction for some of the folks on the East Coast, in New York and around the United States and around the world? What has been some of the commentary, what's been the anecdotal feedback that you've heard? >> We're meeting three and four companies every day of the week. Our runway is full of Fintech companies coming to Bermuda, from... We have insurtech companies that are coming in Bermuda, people are coming to Bermuda for think tanks, to set up incubators and to do exploratory meetings, and so we're seeing a huge interest in Bermuda the likes have not been seen in the last 20 years in Bermuda. >> Well, it's been a pleasure chatting with you and thanks for sharing the update and congratulations. We'll keep in touch, we're following your progress from California, we'll follow up again. The Honorable Wayne Caines, the Minister of National Security of the government of Bermuda, and Kevin Richards, concierge taking care of business, making it easy for people. >> Oh, yeah, oh, yeah. >> We'll see, I'm going to come down, give me the demo. >> We're open for business and we're looking forward to seeing everybody. (laughs) >> Thank you for the opportunity. >> Thank you very much. >> Thank you. >> Major developments happening in the blockchain, crypto space. We're starting to see formation clarity around, standards around traditional structures but not so traditional. It's not your grandfather's traditional model. This is what's great about blockchain and crypto. CUBE coverage here, I'm John Furrier, thanks for watching, stay with us. More day two coverage after this short break. (techy music)

>> Announcer: Live from Las Vegas, it's the Cube, covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. (techno music) >> Okay, welcome back everyone. We are here live in Las Vegas for the Cube's exclusive three-day coverage, we're on day two of HPE, Hewlett Packard Enterprise Discover 2017. I'm John Furrier, my cohost Dave Vellante. Our next guest is Susan Blocher, Vice President of Marketing, Data Center Infrastructure Group, part of Hewlett Packard Enterprise. Welcome back to the Cube, great to see you. >> Great to see you both again. >> So a lot of great stuff, so I want to just going to, a lot of buzz, Gen-10, a lot of new capabilities. Let's get right into it. Hard news, what's the update? What's going down at the show? >> We made the magic happen for this discoverer. It's just really exciting. So, hard news, we really focused on three areas for our customers: new levels of agility across their hybrid IT infrastructure, which means automation, better performance enhancements, taking things that used to be very manual and making them run sort of seamlessly, number one. Number two, security, and we're talking breakthrough security. So this is where we've been able to leverage some unique opportunities like the fact that we build our own silicane to put a silicane root of trust, or an immutable fingerprint, right into our silicane that can never be changed. That fingerprint will not let infected firmware startup. No matter, you know, as long as the firmware is the right firmware, it'll boot up seamlessly. If it's in any way been compromised you will, it will not let that server boot up. Super secure infrastructure. Last but not least, our customers were telling us economic control. We need economic control. We need cloud-like economics. We need pay-as-you-go. We need the ability to get capacity on demand. Those are the things that we really innovated on for this year. >> One of the things that's coming out, we had Bob Moran on the security thing. >> Yeah. >> And James Morrison >> Yes. >> I want to call him Jim Morrison >> Oh, exciting. >> I used to be >> I know. >> a big Doors fan. >> Yeah. >> I respect his name, I'm sure he gets that all the time. >> Yeah. The security on the silicane >> Yeah. >> is interesting to me because now you're seeing things like block changes, immutable environments wherevpeople have this trust relationship. That really hits the ransomeware side of things really in a big way. >> Susan: Yes. >> What else is that hitting? That is, to me, the big news, is that, is the security at the server-level because there's no perimeter anymore in this cloud-like environment, so this is kind of a cool way, explain more, just take minute to talk about the security piece because I think to me that's game-changer. >> It's super fascinating, and you know, I'm quoting somebody else, so I'm blatantly stealing somebody's line, but I was reading an article where somebody said firmware is a cesspool of Trojan horse opportunity for cyber attackers, and that took me aback because I was like, Boy, those are some strong words there, but really with all of the investment that companies have made over the years in data security, application security, network security, no one was focusing on the servers, and frankly, there's a million lines of code, and I'm sure Bob said that, there's a million lines of code booting up to get your servers up and running that no one has protected up until now. And so, we recognize about two years ago, that this was a huge threat, and increasing everyday, and boy, two years later, we're in the nick of time, to give customers really the peaace of mind of that security. >> One of the things that Wikibon just put out in terms of reports on research that I find fascinating that ties into this trend that I want to get your reaction on is, I think they're the only research firm that put this out actually, is they actually size the true private cloud market at about 260 billion, and that's not including the hybrid piece. That means, on-prem, cloud-like capabilities for on-premise data centers, which means, hey, that's not really going away, so it points to that narrative that, oh, data centers are moving to the cloud, so that's kind of probably not going to happen any time soon, but the cloud-like capabilities are there. But one of the interesting stats is that, is billions of dollars in cost-shift from labor, to hire differentiated, higher yield, or differentiated stuff inside the organization. So IT's not getting smaller, it's getting changing. >> Susan: That's right. >> So, how are you guys taking the Gen-10 and other things, and helping customers abstract away those tasks? >> Yeah, exactly. So look, all of our customers are really doing hybrid IT now, and so they're doing some things on-premise, they're doing some things off-premise, and frankly, it makes sense. But there's a tremendous amount of compromises that they have to make on both sides of the coin, and so what we've been talking about, a new compute experience, and that's really what we mean. It's not saying that you should have everything on-premise, or that you should move everything to the cloud. It's really saying, how do we give you the best end to end experience across agility, security, and economic control, so that the trade-offs that you're making, are not trade-offs on the pros or cons of those side loads of IT, but really looking at it from a what kind of business outcomes do I need to drive, and that's how I make my decisions. >> So, if you go back to around 2010, John, we were talking the Cube about a couple of observations. And it sort of coincided with the ascendancy of the public cloud. We said that the hyper-scale guys will spend time, engineering time, to save money, and then automate stuff, but the Enterprise guys, they'll spend money to save time. They don't have all of those engineering resources and we talked about that for a while, and it kind of got old and sort of boring. Fast-forward to 2017, and that's exactly what happened is vendors have put in a lot of effort to create cloud-like capabilities, and to John's point, is you're seeing a shift in staffing away from undifferentiated stuff, so talk about what that means for the data center infrastructure group, sort of how you position and how you talk to customers and message them about your role and how you add value. >> Yeah, absolutely. So look, first of all, we don't talk about just data center infrastructure. I think that's really where it starts because frankly, customers are talking about their data, they're talking about their applications, they're talking about how to bring intelligence to their hybrid IT experience, and so what we're talking to them about, is really how do we bring that together for them? We're talking about software-defined intelligence, how we're leveraging HPE One View to automate the deployment of applications across what could be a complex apology, but doing it absolutely in an automated seamless way. We're talking about how we're taking iLo and building the security in, but we're also doing things like intelligence system tuning where we're partnering with Intel and really figuring out how to take what is the Intel turbo-boost mode, from their processors, and make it even better. And so a lot of applications can't take advantage of the turbo-boost mode because there's a bit of when you hit that high frequency, you get a little bit of jitter, and that jitter creates latency, and so a lot of applications like core banking, video streaming, high frequency trading, they can't use turbo-mode because of that jitter that creates latency. We've been able to figure out, partnering with Intel, how to dampen a little bit of that speed, but still get turbo-mood and eliminate that jitter, so no latency. For the first time, these applications have been able to take advantage of turbo-mode. And what we figured out is even though we dampened it a little bit, they actually perform better with that little bit of dampening than they would've if we had shot them up with full turbo mode, right? So super exciting innovations with that. >> Sounds like Pied Piper. (laughter) >> But this is the kind of innovation that's going on in the systems world, and another observation we've seen on the Cube is, we go to a lot of events, is that systems is back. There's kind of an under current going on in the industry where hardware and operating systems folks are now part of big transformations, whether it's hyper-scale or in-service providor and Enterprise, so how are you guys looking at the compute differently if the notion of a server is shifting, and they're maybe consuming IT differently, where the channel partner might become a provider, and all these things are going on, how do you guys look at this new style of computer, our Meg says the changing landscape of compute. >> The changing landscape. It's all about really understanding our customers, and who they are, and how we can look at their unique needs and then segment our value and our portfolio toward them, so you talked about hyper-scale users, like service providers, cloud service providers, small and medium sized businesses, Enterprise customers, Telco environments, high-performance computing, super computing. What we realize is that one size does not fit all, and that's really what it comes down to, and that's one of the trade-offs of the public cloud environment, there's lots of good things about public cloud, but one of the trade-offs is it's kind of commodity hardware and one size fits all, but if you're trying to do any kind of mission critical applications, like I said, high frequency trading, you need super computing capabilities, you need deep analytics, machine-learning, whatever the case might be, it's not... You really need to specialize the infrastructure, and HPE is right there working with our customers regardless of their needs and their segments, we've got the solutions that will help them do that. >> So one of the things I'm inferring from some of your comments, I want to ask you about marketing. I always struggle with marketing. (laughter) You're shifting the message from product, product, product to business impact. >> Susan: Yes! >> Okay, that's clear. What else is working in marketing these days? It's never one silver bullet, but there's belly to belly, there's events like this, there's obviously old-school email marketing, there's social media. What are you finding as a marketing problem? >> We talk a lot about digital transformation for our customers, but digital transformation has come to marketing, so that's the biggest thing. We have made a huge shift at Hewlett Packard Enterprise in digital marketing. So everything that we're doing, even an event like this, which is physical, but it used to be kind of a one-off. We do all this prep, and then the week would go by, and it would disappear, and that would be the end of it. We're learning to build snackable content assets that have life after life after life, we're really embracing the social media, we've built a whole new digital marketing platform, we've shifted from what I would call traditional demand generation into really reaching our customers through digital marketing in every country globally. Huge, amazing metamorphosis, and frankly, with the announcement of the new HPE compute experience, and the Gen-10 platform, and the world's most secure industry-standard servers, it is the perfect timing of bringing all of this incredible innovation of technology to market at the same time that we're innovating around marketing, so the next 12 months, it's going to be super exciting. >> Eating your own innovations, if it were. >> That's right, that's right. >> Congratulations on the Gen-10 launch, and all the great goodness you guys got going on the security thing, a big deal. >> A big deal. >> Looking forward to following up on that further after the show, to keep it going. Certainly, there's digital aspects here in the Cube will be available on Youtube.com, slash and the name of course, the Cube Gems and highlights, all available. Thanks so much for joining us on the Cube, really appreciate it, more live coverage from HP Discover 2017. After this short break, stay with us. I'm John Furrier with my co-host Dave Vellante. We'll be right back. (techno music)

(energetic electronic music) >> From Phoenix, Arizona, the Cube, at Catalyst Conference. Here's your host, Jeff Frick. >> Hey, welcome back everybody, Jeff Frick here, with the Cube. We are on the ground in Phoenix Arizona at the Girls In Tech Catalyst Conference. We're really excited to return to Phoenix, ironically, it was two years ago, about this same time, we went to our first Grace Hopper conference that was here in Phoenix, and I don't know what it is with Phoenix, but it seems to be a great place for women in tech conferences. So, we're back, and we wanted to come down and talk to some of the people here that are giving keynotes, presentations, give you a flavor for what's going on, so if you got an opportunity to go next year, it'll be back in the Bay Area. You certainly want to sign up for that. So we're really excited, our first guest Yvonne Wassenaar, the CIO of New Relic, welcome. >> Thank you so much, it's great to be here, I love the Cube. >> Oh, thank you very much, that's right, you were at VMworld, or VMware, I always say world not ware, for years. And we've been doing, I think, the VMworld show for something like six years, or seven years. >> Yeah, super long time, and I watch you guys at reinvents, and a lot of other places. >> Oh great, well thank you for watching. So now you're at New Relic, so for the people that aren't familiar with New Relic, why don't you give them the quick 411. >> Yeah, so New Relic is is a software analytics company, and in the simplest terms, you don't bank in your retail branch, you bank on your phone. What matters is how your software's performing. Both from an application perspective, and a business perspective. So we help you understand what's going on. We're the best, first place to look to understand your digital business. >> It's really interesting, because we've got a premise that we're, at Wikibon, that it's all about, really, your digital engagement model. And you think about banking, how many times do you go into the bank, and actually interact with a teller? It's really moved to this electronic interface, in terms of your relationship. >> Exactly, it's not how warm the coffee is, or how long the teller line is, it's how performant is your application, and do you have the right feature functionality? >> Okay, so you're here, you had a keynote earlier in the week. >> This is the third day of the conference. So first of all, give us kind of what's the vibe been here for the last three days? >> It's phenomenal, and what I love about the Girl In Tech Conference, is that it brings together women of all types. I was speaking yesterday to a student at Stanford, who's here, who has her own non-profit, who's getting her degree to go out and change the world as an enterpreneur, to very, very seasoned executives who sit on boards. And everybody's here to understand what's the change going on, and how do I drive relevancy. And it's just phenomenal. >> Excellent, so your keynote was on how to stay relevant, and how to avoid extinction. >> Yeah. >> So why don't you give us some of the, I'm sure that was a well received one. >> Yeah, well, what's interesting is, change is the new constant. And it's actually riskier to not do something, than do something, today, but what do you do? And everybody says, "Oh, go out and be bold." and being bold's great, but fundamentally, it's hard. And it's easy to say, it's hard to do in practice. And so what my talk was really on, is, how do you address the unconscious fears? How do you say "Yeah, those bad things could happen, but you know what, if nothing bad happened, here's how I could change the world." And then just go after that vision. Free yourself from those kind of unconscious constraints, and really go after it wholeheartedly. >> And so is it more of a willingness to fail? Is it more of a willingness to, you know, look silly, if you feel? I mean, what are some of these unconscious fears, that if you consciously just address them, that will help you kind of overcome them, and be more proactive in your experimentation? >> Yeah, so for me it was very personal. It was some challenges that I had in my childhood, that really made me risk-averse, in ways that I didn't understand. And it's one of the things that they say, "Hey, women should lean in more." And I actually believe the reason that women don't lean in, is that they're trying to aim for a level of perfection, and don't realize it's a numbers game. Failure is not a reflection on you personally, failure is step towards your future successes. And so really it's a mindset change. >> Right, right, and I fundamentally feel too, as we try to innovate on the Cube, and do things different, if we're not failing sometimes, we're not really pushing the envelope enough, right? Everything shouldn't be successful. It's like the old economics newsboy model, right? If you come home with no newspapers, that means you could have sold a couple more probably, so it's not about perfection, it's about trying, and not being afraid to, "Mm, that didn't work out." >> You're spot on, and I led a workshop yesterday as well, on increasing your return on investment. And I literally told the women, I said, "If you are not failing, if everybody on your team's performing perfectly, you're a failed leader. You have to stumble, it's like skiing, if you don't fall, when you're skiing, you're not pushing yourself hard enough, you're not really doing it, so you need to let your team members fall, you have to fall yourself, and that's how you you're pushing the boundaries. >> So how is the reception then, of that message that you're trying to convey? Is it "You know, I know it, I just can't do it", is it, just, "Oh, there's just so many hurdles in the way"? How do you get over the, you know, here's this unconscious thing that you need to be thinking about, okay, now it's conscious, but to actually start to change behavior? What are some of the little behavioral changes and tips and tricks you give people? Because at the end of the day, a lot of times, it's do the behavior, not think about it too much. >> Exactly, I'd say it's a couple things, first off, you need role models, that can help prove to you and your subconcious, that, "My gosh, if those five amazingly successful people did this, and they're telling me, very specifically, the failures they had, and they're still that successful, maybe they're not lying."(laughs) The other thing is, I try to give really specific tips, so one of my favorites is, I'm an ex-consultant, so two by two, what's the business impact? What's your unique value? Throw all the things you're working on in there, you should have one to two that are high impact that you're uniquely skilled to do, hit those balls out of the park. You can get 20 guys to third base, doesn't matter. You got to get one person home. >> Got to get him home, that's great. I'm just curious, because you spent a long time at Accenture, before you jumped into the tech company world, so you probably saw a lot of different companies. What's your perspective at a macro view, of how this environment has changed over the years? I mean, do you see positive change? I know we have a long way to go, but what's your perspective from some of those early Accenture days? >> You know, it's never been a more exciting time. I mean, in some regards, I wish I was that Stanford student, just starting my career, because technology is changing how we do everything, in absolutely amazing ways. But, we need to bring the right level of social consciousness to how we apply it. And we need to figure out new engagement models. And I think those engagement models actually play to the strength of a lot of women we have in the room. You have to figure out how to fuse across different industries. So, the Apple Watch, it's designer, it's technology, like how do you bring those competencies together? You get better stuff done with partners than all internally. VCs are the new R&D innovation engines, so I think the change is really exciting. But you have to be open to new operating models, and new engagement styles, to take advantage of it. >> Right, okay I want to shift gears a little bit, because our audience might not know, but you're actually a very rare breed. >> (laughs) >> You're a woman on boards, and we hear over and over, I'm teasing you, because we hear over and over, there's just not near enough representation of women on corporate boards. You're on a couple of boards. So I'd like to get your perspective on, how did you get on the boards, how do we get more women on the boards? There's always a conversation, is it a pipeline problem? Are there just not enough, are they dropping out mid-career? What are some of the things you can see from your seat on a couple of boards? >> Yeah, so I'm on three boards, I'm on the board of Harvey Mudd, I'm on the board of Idiom, which is the series B start-up, and I'm on the board of the Athena Alliance. And the Athena Alliance is actually an organization, a non-profit focused on getting more women on boards, because I fundamentally believe it is not a pipeline problem, and I say that because there's many senior executive level women like myself, who just are waiting to check off the ten things on the list they think they need to be on a board. And it's studied time and time again, women set really high bars for themselves. So I don't think enough women are putting themselves forward. and I don't think that they're known well enough. We're not unicorns, we're really not. Like there are valleys where we all congregate, (laughs) and so what we need to do, is really help the men, who I think have amazing intention, and want to have greater diversity on their boards, understand how to make the connections, and find the right women with the right profiles to round out the organizations. >> So you think it's really more of a matching issue, the desire is there, but really just making the match when the timing is right, and it's a good fit. >> Yeah, exactly. >> All right, so I'm going to shift gears on you one more time, and talk about education, and specifically Harvey Mudd, because as I'd mentioned, two years ago, we were here interviewing Maria Klawe, still one of my all-time favorite interviews. She's got such phenomenal energy, she's the President at Harvey Mudd College, who are the Athenas, I don't know if you knew the Harvey Mudd gals' teams are the Athenas, boys are the Stags, but talk about education, and what Maria has done, I mean her thing in our interview, is she wants the intro CS, to be the best class you've ever taken. >> Yeah. >> Bar none, not the best computer science class, not the best science class, the best class ever, and I can tell you, my son's at Claremont, it's a really hard class to get into. Your perspective on education, and what somebody like Maria, with her kind of energy, point of view, enthusiasm, does to expanding computer science breadth in women specifically. >> Oh, it's phenomenal, I actually had the opportunity to sit in the intro CS class. And there's a couple really key things they've done. First off, is they've expanded and energized the CS team with new amazing talent, many women, but not just women, other diversity, to just round out perspective, so keeping it fresh. The second thing they've done, is they've realized that CS theory is interesting to some, but not to all, and a lot of women tend to be more purpose driven, so they've created classes like CS biology. Same core concepts, but now solving the problems in a field where they have questions. So they learn the same thing, but in a way that's more interesting. And the final thing is, they've restructured how they run the class. So they don't say, "Hey, here's a question," everybody goes, "Oh, I'll get that!" They say, "Here's a question I want you to think about. And talk to your partner, scribble some notes, and in a minute, let's discuss what you've come up with." and that allows people of all types to be more thoughtful and to get better, well-rounded answers coming out. So they've changed it on all dimensions, and it's just, it's an amazing place to go and be, and see the energy, and really see transformation in work in our education system, because that's where it all starts. >> That's really interesting, the way you say it, to phrase the question so people are forced to think a minute, because I have two daughters, they went to all-girls middle schools, and that's one of the classic plugs for going to all-girls, because the boys, they don't wait, right? >> (laughs) "Okay if I have the right answer, I'm going to get picked! >> "Pick me, I love the teacher, pick me, pick me!" >> You picked me, I win!" >> Right, "and then I'll figure it out," versus people that want to think about it a little bit, and contemplate, and noodle, and maybe try to get the right answer before they raise their hand, so great strategy. So before we let you go, unfortunately we're out of time, how do people get involved with the Athena Foundation, what are you up to, in terms of priorities for the next six months? >> Yeah, so it's the Athenaalliance.org, we're on the web, we're just starting, DLA Piper is one of our sponsors, getting our 501c3 status, there's information there in terms of membership, who we're working to connect with. If any of you listening have board seats and you want women, come to us. If you're a qualified woman, and you're looking to get on a board, reach out, we'd love to hear you, we know you're there, and we know that men want to put you on boards, so let's make it happen. >> What a great service really, doing that matching game, because it's always about the matching game. Well, Yvonne, thanks for taking a few minutes out of your busy day, and we look forward to seeing you again sometime in the Bay Area. >> Great, thank you so much, great stuff. >> Jeff Frick here at the Girls In Tech Catalyst Conference in Phoenix Arizona, we'll be back after this short break. Thanks for watching. (energetic electronic music)