(soft music) >> From around the globe, It's theCube with digital coverage of VeeamON 2020 brought to you by Veeam. Hi buddy. Welcome to the cubes coverage of VeeamON 2020, (laughs) the virtual version of VeeamON. and I'm here with Justin Warren who's the chief analyst and managing director of Pivot Nine. Justin, Good to see you. How are things down under? >> Not too bad. It was a bit of a rough start to the year. But things are looking a little bit better here in the middle of the year. It's tough times. >> And of course Justin, you may, you guys may know, as a many times you post and of course our other almost daily CUBE host these days, Stu Minivan joining us to unpack the Veeam keynotes, the trends in the marketplace. How you doing Stu? >> I'm doing great, Dave. Yeah. As you said, rather than us flying all around the country, we're in doing remote interviews every day, Its different, 2020.(laughs) >> So this has been quite a year, obviously. Because of course it was from Veeam's perspective, started out with that blockbuster exit $5 billion exit to private equity slash VC, insight capital, insight partners which was just an awesome thing for the founders. And some of the employees and actually going forward now, I think the balance of the employees really they'll have an opportunity to grow the valuation of the company even further. I think that's what we've seen with insight. I mean they want exits, so it's like they used to talk about, Ratmir Used to talk about Act Two (laughs) well now we're going to see it play out guys. So just some high level stats, a billion dollars last year in bookings. They're really shifting to an ARR model in a big way, 375,000 customers, 160 countries, 4,200 employees. Justin, do you remember when you first ran into Veeam at like some VMUG somewhere, who are these guys? Wow. They've certainly made it. >> They really have. And it's honest surprising but also not . They've feeling when I first encountered Veeam was that it's like well, who is this people? Yeah. What are they doing? It was very much SMB. It was very much practitioner, a very technical focus and people who used it just loved the product because back then the informal tagline was, it just were. And in those days it really was amazing. That there was a product that was simple and easy to use and worked on it, all of the things that they needed it to do. And I had a very, very VM focused back in that time. Hence the name of the entire company was go Veeam. And to see it grow from that one even then was quite a broad base but a very much an SMB market and see it grow across the entire industry. It's pretty remarkable. There is no really any ... Not many other companies who've pulled off this kind of growth momentum. >> Yeah. I mean Justin I think you nailed it there. I think back it's a company that hasn't stayed at a steady state still though. In the virtualization community, there were ripple effects. When Veeam went beyond just doing VMware and started to do Microsoft. Then a few years ago, I remember after we were doing the Q bed at the show, there was such a real push forward to extend the relationship with Microsoft, to the cloud. One of the things that we think we see loud and clear at this show is that VMware relationship early strong and as VMware goes to various cloud environment, Veeam can go along with that so that the relationship stays strong, but they're also in a lot of the public clouds and expanding beyond what they're doing. Yep. They're moving into the enterprising and I think one of the things we'll dig into is how enterprising is Veeam today. But absolutely it could company that very different than they were two or three years ago. And Dave, as you correctly pointed out now there's not the, who is this weird privately held company? Who's the ownership? I think there's a little bit of a more of a understanding as to, they're a big player in the space. And a little bit more a understanding as to where things go going forward. >> Well, I want to get your take on sort of their, we're going to go through a lot today, but the vision, that Danny Allan laid out in his keynote. And I think it's quite interesting. I mean, given the energy and the VC money coming into the market behind Cohesity and Rubrik the noise that they're making, what he put up as their vision is the most trusted provider of backup solutions, that deliver cloud data management. So as you guys well know, Cohesity and Rubrik really pushing this notion of data management, which means a lot of things to a lot of people. It's interesting to note that Veeam, first of all, new management, new CEO, Danny Allan, and now CTO, and obviously in a strategy role. So he's putting forth this kind of back to basics a mentality but then leapfrogging and trying to leapfrogging the data management narrative into the cloud, bringing cloud into it, super-gluing and cloud and data management which I think is really smart because when you think about multicloud data management for data protection It's got to be about cloud native and it's got to be somebody who's got no agenda around hardware or even necessarily a public cloud agenda. And Veeam wants to the be that Company. What do you think of that messaging Justin? >> I think broadly speaking, I think Veeam can pull it off. I do have some concerns around the whole data management thought. On the first thing of just being able to pull this off across the industry, I think vein is well-placed because it's always been about software. And it's always been about partnership. Though Veeam has been channel , It has been a hundred percent channel back in the day, very, very little direction. If any, at all, they are very strong on partnerships. They will partner with anybody because basically they don't really mind who else you deal with. They just want your backup to be done through Veeam. And the backup is very strong. That is what they are great at. So the risks they may own the data management side is it we've seen this play before pretty much ever backup company at some point just to talk about, Hey, we have a couple of your data. It's kind of sitting there and not really doing anything. What if we would attend this into something else and start using it for other purposes? But it's never really paid off for anybody. No, One's really done anything with their backup data in it in a true sense because we haven't seen anyone else become very good at that and be known throughout the industry of OES. Once you've backed up your data to the scene, you can then do all of these others stuff with it. I can't name anyone who's actually been quite successful at that but I can name plenty of people who've grown. >> Well Commvault is certainly tried actually guys, once you bring up the good competitive slide I want to that's a good lead in Justin. So what this data from our data partner, ETR Enterprise Technology Research, those whose watch our breaking analysis every week you see that we use this data extensively. And basically what we're showing here is the fundamental methodology that ETR uses is this thing called net score, which is kind of like net promoter score. It basically asks customers, are you buying? Are you increasing spending or decreasing spending takes the less subtracted from the more, and then you get a net score. That's the vertical axis. And it's an indicator of spending velocity, the horizontal axis it's labeled market share. It's not like IDC counts market share. It's a measure of mark pervasiveness within the survey. Then it's calculated by the mentions of the vendor divided by the total number of mentions within that sector. Now what we're showing here is a comparison of pure play data protection vendors and you can see there's no Dell EMC there's no IBM because they're not pure plays. I can't cut the data by data protection. So I got put fourth the pure plays. But let's walk through this so you could see here is you've got the pervasive company in the upper left. You can see the net scores and they could see the so the shared ends. This is 1,269 survey respondents. And you can see the shared end is the presence of these companies within that 1269, then CIOs and IT practitioners. So you can see Commvault very high presence but then interestingly and I guess not surprisingly Veeam right there. And then it drops off Veritas, Rubrik and Cohesity, and you can see where the heat map is on the vertical axis Rubrik, One of the highest net score is in the data set, and you've got Cohesity also very high, not as great of a presence in the data set. You can see Veeam very respectable. This was a 15 year old company with a relatively high net score. Really, really respectable, as I say in the solidly in the mid thirties and then Commvault getting into the pink zone and then Veritas in the red zone, low net score. And not as great as you're great at presence, which some concerns there for Veritas. So that's guys, that's the horses on the track. Anything there surprise you? Was it Veritas's position, it doesn't really surprise me, but it is remarkable just how our wife and the rest of the players that they are. And certainly that matches in the conversations the way having here with customers and others in industry. The nine Veritas just does not come out in the way that it used to. It used to be, I would have say that it would be, it used to be neck and neck with Commvault. Now we really don't hear the name Vera Tasman at all. Which is as a long time participant in the industry, Veritas was very much part of my career very early on. They were a stand by name. They were very well respected. But say seeing that sort of thing happened to it a great company, like Veritas it's a bit sad. Really? >> Well, you mean look at you're right. The Veritas was always the gold standard of a company with no hardware agenda. Who's going to be the Veritas of X? You would always use that sort of line or phrase. But now Stu, when I think about the opportunities here, It seems like multicloud is going to within the data protection space, is going to be run by somebody who can do cloud native. So in other words, running cloud native on, Azure, AWS and Google, maybe Alibaba, but cloud native, being able to take advantage of those native services on the cloud. Somebody who's got an on-prem presence who can bring that cloud experience on-prem. Who actually can do it also across clouds, a very, very high performance, low latency, very efficient, low cost. So in thinking about that multi-cloud landscapes, do how do you assess the horses on the track? >> Yeah, well, you know, Dave, first of all, one of the things Justin said, Veeam is partner-driven. One of the conversations I'm having for VeeamON is with the partner Alliance team, they are a hundred percent partner driven. And also for so many years, we talk about one of the negatives about Veeam is, Oh, well, most of their customer base is SMB, well, if you look at the cloud, one of the knocks against cloud for a long time was, Oh, it's just the really small companies that are doing a lot of clouds. Well, my data managers whether I'm a small company or a big company, so a lot of these pieces come together, Veeam has really been able to move into that cloud environment. What they're doing, sans across them . Data protection seems to be one of those areas when you talk about, the mantras, the industry like Amazon and say, okay when are they going to eat your business? Well, you know, Amazon's got a strong storage team. But data protection. They've got some very basic functionality in there but there's a robust ecosystem and companies like Veeam, I can capitalize on. >> Well, you mentioned the there in the enterprise, of course we all know the story of there a couple of years ago, there was a big enterprise, of course, they brought in some executives from VMware, some really high quality folks. They struck relationships with companies like HPE and Cisco. I think HPE in particular is it's paid off quite well but everybody wants to do business with Cisco cause they're very partner friendly and it's interesting. They kind of pull back from that not kind of. They pull back on that major initiative, the high price, direct sales people. And I remember doing a breaking analysis when Veeam got acquired or maybe it was even previous to that and making the comment to that yeah. They had to pull back on that, but I dug into the ETR data. Veeam actually has quite a presence in large companies. Maybe it's division of a large company, or maybe it's shadow IT, I don't know. People who just you don't want the simple backup but they're VMware customers. And it seems to me they really have an opportunity to go up market. Maybe kind of to reset that enterprise strategy. What do you guys think? >> Yeah, I think that's was what they were trying to do a couple of years ago. So I think hotly, they just didn't succeed quickly as they had hoped. There was also a little bit of an issue, which is something I remember speaking to the Retina Mayor about some years ago. About the challenge of being able to serve these different markets, because what SMB wants is quite different to what an enterprise want. And being able to fulfill both of those needs simultaneously from one company it's really challenging because things that you do for enterprise annoy SMB, the things that around ran complexity to be able to deal with the inherently complex environments that are enterprise. SMB just doesn't have that issue. Whereas if you can only do things in SMB type ways that annoys the enterprise, being able to satisfy both of those markets in a way that they both happy with. And so that no one else feels neglected that's pretty much what they wish that were struggling with nothing. So the hot pivot to enterprise they existing customer base, which then was rolling mostly SMB. They started to feel a little bit neglected. No, it was just a bit of a stumble. I think it feels like they've reset now and understood how to do these in a slightly more gentle fashion. But we can call it that. So rather than going for that really aggressive push into enterprise, they are just following the natural momentum, which is people who've come from SMB. And some of those medium companies grow into very large companies and bring them with them and others just that people as they move through their career will grow from a small company to maybe a medium company. And then they'll end up in a division of an enterprise scale and they used to Veeam and they want to bring what they they know in like they want to bring that experience to the company that they now work at. That is a sort of natural flow there I think for them that is only now showing the fruit of what was actually laid down a few years ago. >> Well, and I think there was something else going on there too, which is, we now know the company was positioning for an exit that was up for sale. So enterprise is very expensive, it's time consuming. The ROI is often times very long. That's why you see enterprise startups raising gobs of money and they just ,i think weren't getting the ROI. And when you think about insight, this is one of the more forward thinking, great PE or VC firms they'll live with rule of 40, right, where a rule of 35 or 80 rule of 50, where it's not just about growth, it's about growth plus EBIT. And if you add those up and it adds the 40 or 45 or 35 or whatever their target is, I don't know exactly what Insights looking forward but that's the combination that drives value. So my guess is they wanted to dial up EBIT and give it or the sale. And they might've had specific targets, who knows. That were being negotiated but i think that probably had something to do with it. And as well as you're pointing out, Justin, it takes time but us to If we look into some of the things that we're hearing from the messaging, some of the announcements and we'll get into that. Big, big discussion around digital transformation. One of the first, if not the first to do a backup for office 365, another a new version of Veeam backup for AWS. Oh. So there were some enterprisey types of things that they were there were talking about, a little glimpse at version 11.Any thoughts there, Stu. >> Yeah. Well, David, it's interesting, Justin put up a really good point there when you opt digital transformation Dave. Well, one of the things we've been saying for years, the difference between a company before and after that is you're leveraging the data. So, If I look at Veeam and say, do I protect the data absolutely? Do I secure your data? I'm involved with that. Actually one of the leadership changes, they just hired their first CSO. So bigger push for security, that'll help them a lot in what they do with it, public sector, that's where the CSO actually came from the public by that will help them. But what I didn't, haven't heard as much yet, is okay. I'm a piece of that data. And if you're going to the cloud, I can manage, I can protected and secure it. But how do I help connect people to get more value out of the data and leverage that data? So I think Justin nailed it with that. So many pieces that are important about data that Veeam does do. But that the discussion we always have in AI is be able to take that raw data and converting it into insights and out facts. >> Well, to Justin's point earlier about data management. And I want to to pick up on what you were saying about security, obviously everybody's talking about ransomware, but to me, you're talking about the CSO. The role of the CSO is obviously of course evolving it's Al board level topic. CSO, oftentimes was off as a peer, I say off, but as a peer to the CIO on purpose, they didn't want the CSO to report to the CIO cause it would have been like the Fox watching the hen house. But i think cause it was this sort of failure equals fire mentality and they wanted the truth. But I think now people have transparent discussions at the board about security. Hey, we know we're going to get penetrated. It's all about our response. Obviously we have to deal with the layers, but we're exposed, everybody's exposed. So I think increasingly organizations are realizing that it's a team sport, you've got to get everybody involved, the lines of business, the users being responsible. And of course IT, my point is that security and data protection are now becoming two sides of the same point. Almost like privacy. We've shared that before. So when you think about digital transformation, you think about data protection as part of your security portfolio? Not just something that you bolt on as an afterthought. And I think in many respects, Justin, that's maybe a bigger market opportunity for a lot of these data protection companies and backup companies, than the so-called opaque data management that you're referring to before. >> Yeah. I'd agree with that because what I'm saying from the security side of the market, particularly within large enterprise is a change in mindset from a prevention to a resilient, that kind of mindset around it and how to deal with it. Though previously there was a lot of either we'll just ignore it cause there's not really a problem and it's not going to happen to us. Then it became a kind of a fear response of just, we want to prevent it ever happening to us. Now it's kind of we've gone to an acceptance. And when going through the Kubler Ross. A framework for dealing with grief. People aren't understanding that sooner or later bad things are going to happen to us. What we need to figure out is how we deal with it when it does. And that's the mindset that you need to have when you're talking about data protection. So it's the same kind of mindset that you need for security. And now people are starting to look at, okay, how do we firstly detect if we've actually got a problem, if there's a breach or if there's a risk, how do we notice that we know that that's happening? And then once we noticed that, what do we do about it? So that's things like catching it early so that when you you'll recovery is small, which is the same general idea around software development of fail fast. You want to just pick the failures early so that you can correct them all. Basically if you find yourself in a hole stop digging and then once you've figured that out, okay now how do we recover from this in a way that is minimally disruptive to the business. And that could be like recovering from ransomware, having grilly solid backup. So you can restore weekly, that's the best protection against ransomware that you can have. Then you can start trying to figure out, okay, we know we can recover if it happens to us now let's just try to reduce the number of times that this does actually happen. That's the general idea that I'm seeing come through. More often with CSOs, with CIOs and with board level conversation. >> I want to come back to Justin and then Stu with your final thoughts. Justin, what do you take on this Veeam universal license? Was this a case of, hey we had so much complexity across our portfolio like that you're going to the Italian restaurant, you're just here you want everything in the menu or there's too much to figure out just the order for me. And they're trying to clean that up or do you see this as sort of a more innovative licensing approach? That's more cloud friendly. What do you make of that? >> I think it's a bit of both. think it's part of VeeamON thoughts as well again, from back in the very early parts of the company, the idea was that it just works. It should be simple and easy to use. So it's completely on brand for Veeam to have a simple and easy to use licensing model. There's a lot of criticism from enterprise and particularly from medium and small business, well overly complicated licensing models. We see people wrestling daily with the billing system within AWS. We see people frustrated with the licensing approach of Oracle. We see them seemingly frustrated when you not figuring out exactly what have I lost since then, what happened and what am I not licensed for in, Microsoft ecosystem. So for them to have a simple and easy to use licensing approach, it just fits right in with the rest of what the company is doing. It does also simplify the way that they organize and operate their company, as they have to deal with lots and lots of different partners, having a complicated licensing system on top of all of those other complicated licensing systems would just make their own job much, much harder. So this way it actually works for them as well as for their customers. >> Yeah. Simplicity is the watch word there Stu and I get, I mean, I get the sense in speaking to the customers, partners, that Veeam well has basically has the philosophy make it easy to and we'll sell more. We're not going to try to micromanage, to maximize revenue. You heard this certainly from some of their big partners who said that Veeam made it transparent. Our sales people for commissions and their salespeople and really make it easy to do business with. So Stu I'll give you the last word here. >> Yeah. So I think, as you mentioned, Veeam also listening and seeing what their partners are doing. So we've watched companies like AWS, trying to make a little bit simpler as to if I'm choosing compute, I don't have to be locked into one model a aisle, pay those across the environment or pure storage and other partner of Veeams. If I stay a customer, I make it easy to be able to move from one generation the next though, that cloud like model absolutely is what we expect. And when you talk to customers today, we know the only constant is change. I actually loved in the keynote. There was a I believe it was Satya Nadella that they quoted and said that, we've seen more change in the last two months that we normally would see in a decade. So Veeam being agile, moving, listening to their customers, learning with their partners and making sure that they've got things in the modern consumption model. >> Well, guys, thanks for helping us break down the VeeamON 2020, some of the trends in the market place.Some of the commentary and the keynote. Justin Warren Stu Minivan. Appreciate your time. >> Thank you very much. >> Thanks Dave. >> I thank you for watching everybody. This is Dave Vellante for Stu and Justin and the entire cube team, people right there. We'll be back with our coverage of VeeamON 2020, right after this short break. (soft music)

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Hey, welcome back to the Cube. Lisa Martin at AWS Reinvent 19. This is Day three of the Cubes coverage. We have two sets here. Lots of cute content are joined by Justin Warren, the founder and chief analyst at Pivot nine. Justin. How's it going? Great, right? You still have a voice? Three days? >>Just barely. I've been I've been trying to take care of it. >>Impressed. And you probably have talked to at least half of the 65,000 attendees. >>I'm trying to talk to as many as I can. >>Well, we're gonna talk to another guy here. Joining us from data ICU is well, Novak, the solutions architect will be the Cube. >>Thanks for having me. >>You have a good voice too. After a three day is that you >>have been doing the best I can. >>Yeah, he's good. So did ICU. Interesting name. Let's start off by sharing with our audience. Who did a coup is and what you guys do in technology. >>Yes. So the Entomology of date ICU. It's like hi cooze for data. So we say we take your data and, you know, we make poetry out of it. Make your data so beautiful. Wow, Now, But for those who are unaware Day like it was an enterprise data science platform. Eso we provide a collaborative environment for we say coders and clickers kind of business analyst and native data scientists to make use of organizations, data bill reports and Bill productive machine learning base models and deploy them. >>I'm only the guy's been around around for eight years. Eight years. Okay, >>so start up. Still >>mourning the cloud, the opportunity there That data is no longer a liability. It's an asset or should be. >>So we've been server based from the start, which is one of our differentiators. And so by that we see ourselves as a collaborative platform. Users access it through a Web browser, log into a shared space and share code, can share visual recipes, as we call them to prepare data. >>Okay, so what customers using the platform to do with machine learning is pretty hot at the moment. I think it might be nearing the peak of the life cycle pretty hot. Yeah, what a customer is actually actually doing on the platform, >>you know, So we really focus on enabling the enterprise. So, for example, G has been a customer for some time now, and Sergey is a great prototypical example on that. They have many disparate use cases, like simple things like doing customer segmentation for, you know, marketing campaigns but also stuff like Coyote predicted maintenance. So use cases kind of run the gamut, and so did ICU. Based on open source, we're enabling all of G's users to come into a centralized platform, access their data manipulated for whatever purposes. Maybe >>nobody talked about marketing campaigns for a second. I'm wondering. Are, is their integration with serum technologies? Or how would a customer like wanting to understand customer segmentation or had a segment it for marketing campaign? How would they work in conjunction with a serum and data ICU, for example? >>It's a great question. So again, us being a platform way sit on a single server, something like an Amazon ec2 instance, and then we make connections into an organization's data sources. So if using something like Salesforce weaken seamlessly, pull in data from Salesforce Yuka manipulated in date ICU, but the same time. Maybe also have some excel file someone you know me. I can bring that into my data to work environment. And I also have a red shift data table. All those things would come into the same environment. I can visualize. I can analyze, and I can prepare the data. I see. >>So you tell you it's based on open source? I'm a longtime fan of over. It's always been involved in it for longer than I care to remember. Actually, that's an interesting way t base your product on that. So maybe talk us through how you how you came to found the company based on basic an open source. What? What led to that choice? What? What was that decision based on? >>Yeah, for sure. So you talked about how you know the hype cycle? A. I saw how hot is a I and so I think again, our founders astutely recognize that this is a very fast moving place to be. And so I'm kind of betting on one particular technology can be risky. So instead, by being a platform, we say, like sequel has been the data transformation language do jour for many days now. So, of course, that you can easily write Sequel and a lot of our visual data Transformations are based on the sequel language, but also something like Python again. It's like the language de jour for machine law machine learning model building right now, so you can easily code in python. Maintain your python libraries in date, ICU And so by leveraging open source, we figured we're making our clients more future proof as long as they're staying in date ICU. But using data ICU to leverage the best in breed and open source, they'll always be kind of where they want to be in the technological landscape by supposed to locked into some tech that is now out of date. >>What's been the appetite for making data beautiful for a legacy enterprise, like a G E that's been around for a very long time versus a more modern either. Born in the Cloud er's our CEO says, reborn in the cloud. What are some of the differences but also similarities that you see in terms of we have to be able to use emerging tech. Otherwise someone's gonna come in behind us and replace us. >>Yeah, I mean, I think it's complicated in that there's still a lot of value to be had in someone says, like a bar chart you can rely on right, So it's maybe not sexy. But having good reporting and analytics is something that both you know, 200 year old enterprise organizations and data native organizations startups needs. At the same time, building predicted machine learning models and deploying those is rest a p i n points that developers can use in your organization to provide a data driven product for your consumers. Like that's amore advanced use case that everyone kind of wants to be a part of again data. Who's a nice tool, which says Maybe you don't have developers who are very fluent in turning out flashed applications. We could give you a place to build a predictive model and deploy that predictive model, saving you time to write all that code on the back end. >>One of the themes of the show has been transformation, so it sounds like data ICU would be It's something that you can dip your toes in and start to get used to using. Even if you're not particularly familiar with Time machine learning model a model building. >>Yeah, that's exactly right. So a big part of our product and encourage watchers to go try it out themselves and go to our website. Download a free version pretrial, but is enablement. So if you're the most sophisticated applied math PhD there is, like, Who's a great environment for you to Code and Bill predictive models. If you never built the machine learning model before you can use data ICU to run visual machine learning recipes, we call them, and also we give you documentation, which is, Hey, this is a random forest model. What is a random forest model? We'll tell you a little bit about it. And that's another thing that some of these enterprises have really appreciated about date I could. It is helping up skill there user base >>in terms of that transformation theme that Justin just mention which we're hearing a lot about, not visit this show. It's a big thing, but we hear it all the time, right? But in terms of customers transformation, journey, whatever you wanna call it, cloud is gonna be an essential enabler of being able to really love it value from a I. So I'm just wondering from a strategic positioning standpoint. Is did ICU positioned as a facilitator or as fuel for a cloud transformation that on enterprise would undergo >>again? Yes, great point. So for us, I can't take the credit. This credit goes to our founders, but we've thought from the start the clouds and exciting proposition Not everyone is. They're still in 2019. Most people, if not all of them, want to get there. Also, people want too many of our clients want the multi cloud on a day. Like who says, If you want to be on prim, if you want to be in a single cloud subscription. If you want to be multi cloud again as a platform, we're just gonna give you connection to your underlying infrastructure. You could use the infrastructure that you like and just use our front end to help your analyst get value. They can. I >>think I think a lot of vendors across the entire ecosystem around to say the customer choice is really important, and the customers, particularly enterprise customers, want to be able to have lots of different options, and not all of them will be ready to go completely. All in on cloud today. They made it may take them years, possibly decades, to get there. So having that choice is like it's something that it would work with you today and we'll work with you tomorrow, depending on what choices you make. >>It's exactly right. Another thing we've seen a lot of to that day, like who helps with and whether it's like you or other tools. Like, of course, you want best in breed, but you also want particularly for a large enterprise. You don't want people operating kind of in a wild West, particularly in like the ML data science space. So you know we integrate with Jupiter notebooks, but some of our clients come to us initially. Just have I won't say rogues that has a negative connotation. But maybe I will say Road road data Scientists are just tapping into some day the store. They're using Jupiter notebooks to build a predictive model, but then to actually production allies that to get sustainable value out of it like it's to one off and so having a centralized platform like date ICU, where you can say this is where we're going to use our central model depository, that something where businesses like they can sleep easier at night because they know where is my ML development happening? It's happening in one ecosystem. What tools that happening with, well, best in breed of open source. So again, you kind of get best of both worlds like they like you. >>It sounds like it's more about the operations of machine learning. It is really, really important rather than just. It's the pure technology. Yes, that's important as well, and you need to have the data Sinus to build it, but having something that allows you to operationalize it so that you can just bake it into what we do every day as a business. >>Yeah, I think in a conference like this all about tech, it's easy to forget what we firmly believe, which is a I and maybe tech. More broadly, it's still human problems at the core, right? Once you get the tech right, the code runs corrected. The code is written correctly. Therefore, like human interactions, project management model deployment in an organization. These are really hard, human centered problems, but so having tech that enables that human centric collaboration helps with that, we find >>Let's talk about some of the things that we can't ever go to an event and not talk about. Nut is respected data quality, reliability and security. Understood? I could facilitate those three cornerstones. >>Yeah, sure. So, again, viewers, I would encourage you to check out the date. ICU has some nice visual indications of data quality. So an analyst or data scientists and come in very easily understand, you know, is this quality to conform to the standards that my organization has set and what I mean by standards that could be configured. Right? So does this column have the appropriate schema? Does it have the appropriate carnality? These are things that an individual might decide to use on then for security. So Data has its own security mechanisms. However, we also to this point about incorporating best Retek. We'll work with whatever underlying security mechanisms organizations organizations have in place. So, for instance, if you're using a W s, you have, I am rolls to manage your security. Did ICU comport those that apply those to the date ICU environment or using something like on prime miss, uh, duke waken you something like Kerberos has the technology to again manage access to resources. So we're taking the best in breed that this organization already has invested time, energy and resources into and saying We're not trying to compete with them but rather were trying to enable organizations to use these technologies efficiently. >>Yeah, I like that consistency of customer choice. We spoke about that just before. I'm seeing that here with their choices around. Well, if you're on this particular platform will integrate with whatever the tools are there. People underestimate how important that is for enterprises, that it has to be ahead. Virginia's environment, playing well with others is actually quite important. >>Yeah, I don't know that point. Like the combination of heterogeneity but also uniformity. It's a hard balance to strike, and I think it's really important, giving someone a unified environment but still choice. At the same time. A good restaurant or something like you won't be able to pick your dish, but you want to know that the entire quality is high. And so having that consistent ecosystem, I think, really helps >>what are, in your opinion, some of the next industries that you see there really right to start Really leveraging machine learning to transfer You mentioned g e a very old legacy business. If we think of you know what happened with the ride hailing industry uber, for example, or fitness with Saletan or pinchers with visible Serge, what do you think is the next industry? That's like you guys taking advantage of machine learning will completely transform this and our lives. >>I mean, the easy answer that I'll give because it's easy to say it's gonna transform. But hard to operationalize is health care, right? So there is structured data, but the data quality is so desperate and had a row genius s, I think you know, if organizations in a lot of this again it's a human centered problem. If people could decide on data standards and also data privacy is, of course, a huge issue. We talked about data security internally, but also as a customer. What day to do I want you know, this hospital, this health care provider, to have access to that human issues we have to result but conditional on that being resolved that staring out a way to anonymous eyes data and respect data privacy but have consistent data structure. And we could say, Hey, let's really set these a I M L models loose and figure out things like personalized medicine which were starting to get to. But I feel like there's still a lot of room to go. That >>sounds like it's exciting time to be in machine learning. People should definitely check out products such as Dead Rock you and see what happens. >>Last question for you is so much news has come out in the last three days. It's mind boggling sum of the takeaways, that of some of the things that you've heard from Andy Jassy to border This'll Morning. >>Yeah, I think a big thing for me, which was something for me before this week. But it's always nice to hear an Amazon reassures the concept of white box. Aye, aye. We've been talking about that a date ICU for some time, but everyone wants performance A. I R ml solutions, but increasing. There's a really appetite publicly for interpret ability, and so you have to be responsible. You have to have interpret belay I and so it's nice to hear a leader like Amazon echo that day like you. That's something we've been talking about since our start. >>A little bit validating them for data ICU, for sure, for sure. Well, thank you for joining. Just to be on the kid, the suffering. And we appreciate it. Appreciate it. All right. For my co host, Justin Warren, I'm Lisa Martin and your work to the Cube from Vegas. It's AWS reinvent 19.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in Came along with its ecosystem partners. >>Hey, welcome back to the Cube. Lisa Martin at AWS Reinvent in Vegas. Very busy. Sands Expo Center. Pleased to be joined by my co host this afternoon. Justin Warren, founder and chief analyst at Pivot nine. Justin, we're hosting together again. We are. >>It's great to be >>here. It's great to have you that. So. Justin Meyer, please welcome a couple of our cue ball. Um, back to the program. A couple guys from nut up. We have Anthony Lie, the S B, P and G m of the Cloud business unit. Welcome back at the >>very much great to be here >>and color coordinating with Anthony's Jandi Stephenson, Chief Technology officer and GPS Cloud. Welcome back. >>Thank you. Thank you >>very shortly. Dress, guys and very >>thank you. Thank you. It's, uh, the good news Is that their suits anymore. So we're not going to have to wear ties >>comfortable guys net up a w s this event even bigger than last year, which I can't even believe that 65,000 or so thugs. But, Anthony, let's start with you. Talk to us about what's new with the net up AWS partnership a little bit about the evolution of it. >>Yeah. I mean, you know, we started on AWS. Oh, my gosh. Must be almost five or six years ago now and we made a conscious effort to port are operating system to AWS, which was no small task on dhe. It's taken us a few years, but we're really starting to hit our stride Now. We've been very successful, were on boarding customers on an ever increasing rate. We've added more. Service is on. We just continue to love the cloud as a platform for development. We can go so fast, and we can do things in in an environment like aws that, frankly, you just couldn't do on premise, you know, they're they're complexity and EJ ineighty of on premise was always a challenge. The cloud for us is an amazing platform where we can go very, very fast >>and from a customer demand standpoint. Don't talk to me about that, Chief technologist. One of the thing interesting things that that Andy Jassy shared yesterday was that surprised me. 97% of I t spend is still on from So we know that regardless of the M word, multi cloud work customers are living in that multi cloud world. Whether it's by strategy, a lot of it's not. A lot of it's inherited right, but they have to have that choice, right? It's gonna depend on the data, the workload, etcetera. What can you tell us about when you're talking with customers? What what? How are they driving NetApp evolution of its partnership with public provider AWS? >>So actually, I don't know if it's the desired state to be running in a hybrid, mostly cloud fashion, but it's it's It's driven by strategy, and it's usually driven by specific workloads and on the finding the best home for your application or for your workers at any given time. Because it's it's ultimately unrealistic for on premise customers to try to compete with like a machine and keep learning algorithms and the rate of development and rate off basically evolution in the cloud. So you always have to be there to be able to stay competitive, so it's becoming a part of the strategy even though it was probably asked that developers that drove a lot off cloud adoption to begin with. Maybe, maybe not. Not in favor of the c i o r. You have, like a lot of Cloud Cloud sprawling, but there's no longer sprawling it. It's part of the strategy before every company in my way >>heard from any Jesse in the keynote yesterday about the transformation being an important thing. And he also highlighted a lot of enterprise. Nedda has a long history with enterprise, Yes, very solid reputation with enterprise. So it feels to me like this This is an enterprise show. Now that the enterprise has really arrived at with the cloud, what are you seeing from the customers that you've already had for a long time? No, no, no, I'm familiar with it. Trust Net up. We're now exploring the Clouded and doing more than just dipping their toe in the water. What are they actually doing with the cloud and and we'll get up together, you know, >>we see and no one ever growing list of workload. I think when people make decisions in the cloud, they're not making those traditional horizontal decisions anymore. They're making workload by workload by workload decisions and Internet EPPS history and I think, uh, performance on premises, given customers peace of mind now in the cloud, they sort of know that what's been highly reliable, highly scaleable for them on premise, they can now have that same confidence in the cloud. So way started. Like just like Amazon. We started off seeing secondary workloads like D r Back Up Dev ops, but now is seeing big primaries go A s, a p big database workloads, e commerce. Ah, lot of HBC high forming compute. We're doing very well in oil and gas in the pharmaceutical industries where file has been really lacking on the public cloud. I think we leaned in as a company years ago and put put, put a concerted effort to make it there. And I think now the workloads a confident that were there and we can give them the throughput. We give them the performance on the protocols and now we're seeing big, big workloads come over to the public clouds. >>And he did make a big deal about transformation being important. And a lot of that was around the operational model. Let's let's just the pure technology. But what about the operating model? How are you seeing Enterprises Transformer? There's a lot of traditionally just taken a workload, do a bit of lift and shift and put it to the cloud. Where are they now transforming the way they actually operate? Things because of >>cloud? Absolutely. I mean, they have to They have to adopt the new technologies and new ways of doing business. So I mean, I think they are actually celebrating that to answer point. I think this is not a partnership and we're partnering with. We have a very unique story. We're partnering with all of them and have really deep engineering relationship with all of them. And they are now able to go after enterprise type workloads that they haven't been gone. I've been able to go after before, so that's why it's such a strategic strategic relationship that we have with all of them. That sort of brings in in the freedom of choice. You can basically go everywhere anywhere. That, in my opinion, is that true hyper cloud story lot has always been really difficult. But with the data management capabilities of not top, it's really easy to move my greater replicate across on premise toe are hyper scaler off choice. >>I mean, I think you know, if you're in enterprise right now, you know you're a CEO. You're probably scared to death of, like, being uber, you know exactly on. Uh, you know, if you're you know, So speed has now become what we say. The new scale they used to be scaled is your advantage. And now, if you're not fast, you could be killed any day by some of these startups who just build a mobile app. And all of a sudden they've gotten between you and the customer and you've lost. And I think CEOs are now. How fast are we going? How many application developers do we have? And did a scientist do we have? And because of that, that they're seeing Amazon as a platform for speed on. So that's just that paranoia. I think digital transformation is driving everybody to the cloud. >>You're right. If we look at transformation if a business and Andy Jassy and John for your talked about this and that exclusive interview that they did the other day. And Andy, if you're and a legacy enterprise and you're looking at your existing market share segment exactly, and you're not thinking there's somebody else. What assisting on there on the side mirror? Objects in mirror are closer. Not getting ready for that. You're on the wrong. You're going to be on the wrong side of that equation. But if we look at cloud, it has had an impact on traditional story one of naps. Taglines is data driven. If we look at transformation and if we'll even look at the translation of cloud in and of itself, data is at the heart of everything. Yes, and they talk to us about net APS transformation as cloud is something that you're enabling on prime hybrid multi cloud as you talked about. But how is your advantage allowing customers to not only be data driven, but to find value in that data that gives them that differentiation that they need for the guy or a girl that's right behind them. I already did take over. >>Well, I think if you're you know, if you're an enterprise, you know, the one asset you have is data. You have history now >>a liability Now with an asset. >>Can they can they do anything with it. Do they know where it is? Do they know how to use it where it should be, you know, Is it secured? Is it protected all of those things? It's very hard for enterprise to answer those questions. What one end up, I think it's done incredibly well, is by leaning in as much as we did onto AWS way. Give our customers the absolute choice to leave our on premise business and a lot of people, I think years ago thought we were crazy. But because now we've expanded our footprint to allow customers to run anywhere without any fear of lock in, people will start to see us now not as a storage vendor but as a strategic partner, and that that that strategic partnership is really has really come about because of our willingness to let people move the data and manage the data wherever they needed to be. On that something our customers have said, you know, used to be a storage vendor on along with the other storage vendors and now all of a sudden that we're having conversations with you about strategy where the data should be, you know who's using it is. It's secured all of those kinds of conversations we're having with customers. >>You mentioned moving data, and that was something that again came up in the keynote yesterday. And he mentioned that Hey, maybe instead of taking the data to the computer, we should bring the computer's data. That's something that Ned Abbas has long actually talked about. I remember when you used to mention data fabric was something about We want to take your data and then make it available to where the computer is. I'd like you to talk it through that, particularly in light of like a I and ML, which is on the tip of everybody's tongue. It's It's a bit of I think, it's possibly reaching the peak of the hype cycle at the moment s o what our customers actually doing with their data to actually analyze it? Are they actually seeing real value from machine learning? And I are We still isn't just kicking the tires on that. >>I mean, the biggest problem with deep learning and machine learning is having our accumulating enough on being able to have the data or lessening that gravity by being able to move it then you can take advantage off states maker in AWS, the big Cleary and Google, whatever fits your needs. And then, if you want to store the results back on premise, that's what we enable. With it out of harbor having that free flowing work clothes migration has to count for data. It's not enough to just move your application that that that's the key for machine learning and thought the lakes and others, >>absolutely in terms of speed. Anthony mentioned that that's the new scale. How is flash changing the game >>with perspective, you know, flashes a media type, but it's just, you know, the prices have come down now that you know the price performance couple flashes an obvious thing. Um, and a lot of people are, I think now, making on premise decisions to get rid of spinning disc and replaced with Flash because the R. O. I is so good. Tco the meantime between failures, that's that's so many advantages that percent workloads. It's a better decision, of course. You know, AWS provides a whole bunch of media Onda again. It's just you like a kid in a candy store, you know, as a developer, you look at Amazon. You're like, Oh, my God. Back in the day, we had to make, like, an Oracle decision and everything was Oracle. And now you can just move things around and you can take advantage of all sorts of different utilities. And now you piece together an application very differently. And so you're able to sort of really think I think Dion sees point. People are telling us they have to have a date, a strategy, and then, based on the data strategy, they will then leverage the right storage with the right protocols. They'll then bring that to compute whatever compute is necessary. I think data science is, you know, a little fashion, you know, conscious. Right now, you know, everybody wants to say how many did a scientist they have on their teams? They're looking for needles in haystacks. Someone, they're finding them. Some of them are but not doing it, I think it is. Makes companies very, very nervous. So they're going the results, gonna trying as hard as they can to leverage that technology. >>And you'll see where is that data strategy conversation happening if we think about the four essentials that Andy Johnson talked about yesterday for transformation in one of the first things he said was, it has to be topped at senior level decision. Then it's going to be aggressively pushed down through the organization. Are you seeing this data strategy at the CEO level yet? >>Yeah, we are. But I'm also seeing it much lower. I mean, with the data engineers with the developers, because it's asked, is it is extremely important to be developing on top off production data, specifically if you're doing machine and deep learning. So I think it's both. I think the decision authority has actually moved lower in the company where the developers are the side reliability engineers are actually choosing more technology to use. That fits the product that they are actually creating off course. The strategy happens at the tall, but the influencer and the decision makers, in my opinion, has been moving lower and within the organization. So I'm basically contradicting what yes is a. But to me that is also important. The days off a C t o r C E o. Forcing a specific platform or strategy on to developers. Those days are hopefully gone. >>I think if you're a CEO and you know of any company in any industry you have to be a tech company, you know, it used to be a tech industry, and now every company in the world is now tech. Everyone's building APS. Everyone's using data. Everybody's, you know, trying to figure out machine learning. And so I think what's happening is CEOs are are increasingly becoming technically literate. They have to Exactly. They're dead if they're not. I mean, you know whether your insurance company, your primary platform, is now digital if you're a medical company or primary platform additional. So I think that's a great stat. I saw that about two and 1/2 years ago. The number of software engineering jobs in non tech surpassed the number of jobs in tech, so we used to have our little industry and all the software engineers came to work for tech companies. Now there are more jobs outside the tech segment for engineers, and there are in the text >>well, and you brought up uber a minute ago and I think of a couple of companies examples in my last question for you is real. Rapid is about industries. You look at uber for example, what the fact that the taxi cab companies were transitional. And we're really eager to, you know, AP, if I their organizations, and meet the consumer demand. And then you look at Airbnb and how that's revolutionized hospitality or pellet on how it's revolutionized. Fitness Last question, Jonesy, Let's go for you. Looking at all of the transformation that cloud has enabled and can enable what industry you mentioned when the gas. But is there any industry that you see right now that is just at the tipping point to be ableto blow the door wide open if they transform successfully? >>Well, I mean way are working with a lot off pharma companies and genome sequencing companies that have not actually working with sensitive data on if those companies, I mean, these are people's medical histories and everything, so we're seeing them moving now in close into the cloud so those companies can move to the cloud. Anybody can move to the cloud. You mean these sort of compliancy scaremongering? You cannot move to the cloud because of P. C. I or hip power. Those days are over because aws, Microsoft and Google, that's the first thing they do they have? Ah, stricter compliancy than most on premise Homemade tartar sentence. So I see. I see that industry really moving into the cloud. Now >>who knows what a ws re invent 2020 will look like Gentlemen I wish we had more time, but thank you. Both Young and Anthony were talking with Justin and me today sharing what's new with netapp. What? You guys are enabling customers. D'oh! In multiple. Same old way. We appreciate your time where my car is. Justin Warren, I'm Lisa Martin. You're watching the Cube from AWS or reinvent 19 from Vegas. Thanks for watching.