>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. >>Hey, welcome back, everybody. Jeff Frick here with the Cube. We have a cube conversation today talking about an exciting announcement coming out of our friends over it at V M, where it's the second generation via VMware Cloud on Dell EMC. And to tell us more about it, we've got a couple Cube alumni that we're always happy to have on. First off, we're joined by Matt Morgan. He is the VP of marketing at VMware. Matt, Great to see you. Great CTO. And then Wei Wang, She's the product or director of product marketing of the VMware way. Great to see you as well. >>Nice to see you, Jeff. >>So, first off, hope you guys were getting through. Ah, the stay at home and work from home and family. Everything good >>thes air. Unprecedented times for sure, But we're fortunate and we're doing fine. I hope everything is going well with you and your family. >>Yeah, Thank you. I mean, we are lucky to be an IT space. So we can We can flip the digital much easier than some industries. Let's jump into this announcement. Second generation via VMware Cloud on Dell, EMC. You guys only announced this in production like a year ago. So, Matt, what? What kind of drove a second generation already know What were some of the drivers and what what is the essence of the second generation? >>Yeah, the space is moving really fast. As you know, Public Cloud has captured the imagination of practically every IT organization on the planet. Because the public cloud provides a new way of doing business. It allows you to consume technology on demand, allows you to have the elasticity, allows you to have op ex financial treatment. But more importantly, it takes you out of the core management business. No more hardware refreshes. No more operational control of the core infrastructure. This is all delivered as a service. The problem is, in order to get this value, you have to turn to the public cloud. You have to actually replace your workload in the data center that someone else managed, and that data center might be far away from the data that is being generated. And so in many cases, It's just simply not practical to move all of your workloads there. So on premise, technology is still going to be important. What VMware announced way back in 2000 and 18 I think it was August 2018 at VM World is Project Dimension, and the whole concept was about delivering the cloud to the data center but truly allowing you to run your data center or data center infrastructure in a truly manage, cloud centric way. We then commercialized it when we announced via VMware Cloud on Dell, EMC, the product and the uptake has been off the hook. We've seen industry analysts like you saw with Rick. We've seen our customers really embrace this technology, and we've got an enormous feedback and that feedback is also driven a new set of requirements. And the truth is, while we envisioned this technology to clearly be an edge play, our customers are telling us it's a data center play. They believe that they can reimagine their data center to operate just like a cloud, and by deploying via VMware cloud on Dell EMC. This facilitates their needs to do that, but they needed a new class of system something a lot more powerful than our first generation, something that could take on all of the workloads. In fact, there's a slide. If you want to pull it up, we kind of illustrate this. The second generation solution is all about turning the volume up to 11. We are enabling organizations to put two times as many VMS on this technology. They, in effect, can run twice as many workloads. More importantly, for a nightie architect, they can design a system that will take on the most demanding, most complex business critical applications with largest set of data and be able to manage that as a entity but in a cloud model on premises. >>Now, Matt I'm struck a little bit because, you know, first if you talk about edge and this was really, you know, kind of a response to growth of the edge and the anticipated growth of edge and I ot and then at the now you're saying really, you know, there's this great opportunity in the data center, and I think we had Rick on from IDC, talked about local cloud as a service, so that's spanning a pretty wide range of environments, workloads, all types of demand. So what are the real critical, you know, kind of functional capabilities of a local cloud as a service and specifically with VMware Cloud. >>So we partnered with Rick when he was defining this category. And if you look at what Rick's research, he sees this category growing. I think too close to $5 billion all in revenue, that all in revenue is coming in the next 2.5 years. That's a faster scale out than we saw HCI. And in his research he's finding the same information that we found when we did our early customer surveys. We have identified a real need at the edge, but let's not underplay that. If you look at a 5G cell tower, typically they need compute that's local. They're gonna be tons of these erected over the next few years, and they don't have on-premise IT infrastructure people to manage that technology, so there's an opportunity to have a managed approach where the compute is local, but it's managed as a cloud. Clearly, the solution is custom designed for that, but I can look at a dozen other IoT centric opportunity. Let's talk about energy production. An offshore oil rig. Again, no IT Staff. The need for compute lots of sensor data, the opportunity to deliver a managed approach gives you that capacity. Let's look at agriculture again, pushing out compute to the edge. So this edge component is another hyper growth area or information technology, and we have a great solution. Custom built for that. However, as I had mentioned right, the growth of use cases includes the most important, the most significant business critical apps that are really big gaps that live in the data center. This can include a variety of different use cases. Think about a hospital. They have data centers in each of the regions. That's all perfect fit for this. Talk about a technology base for virtualized desktop infrastructure. Think about having to deploy an SAP application. There's a dozen more I can think of right off the top of my head. But what we did with the second generations we listen >>to the customer. >>The customers wanted more power. They wanted more capacity. They wanted the opportunity to have a full rack that could beat their expectations on the capacity and power side so that they can fulfill their requirements, and that's what this >>is all about. >>So that's great, Matt way, you're You're a little bit more in the weeds in the product development. What are some of the things that you're excited about in this second gen offering that maybe people aren't as aware of or maybe is a little bit below the radar, >>Right? Okay, so let me first and talk about that. This is truly, as Matt pointed out, is not an insignificant release, right? This is not incremental. We, for example, that our customer we're rolling out a full 40 to argue rack that is support the traditional use cases and also that more than use cases and thinking about also a brand new eastern type that we call internal people Montt medium that in which we doubled not the sock account, but also the CPU moving from a to 24 CPUs to a 48 total and double our realm Rama 368 to 700 before and also doubling to introducing all flash like envy. MB based flash secondary storage for, um, 11 point half to 23 terabytes. And all these is really to honing in what might have pointed out that enterprise class. You know, the hi workloads, very density work clothes, right? You can put into the area 12 to 15. This kind of notes offer development and allows you to have that in the data center and to making sure that you have that kind of capacity for performance. We have that. The second thing I want to mention, as you can imagine, is the VD I I think virtual desktop infrastructure cannot be more important have this environment. Everybody is looking at it, and especially for the highly regulated industries like healthcare. So VMware right? We help for where the market leader with our offerings as a VM or horizon solution. So what happens in this release is we actually 35? We'll be certified on the VM or as horizon solution to making sure that we offer that enterprise distributed capacity to the industry that we really want to run up fast and also to making sure that they obviously cannot have actually support to have that capacity to offer the remote workers to front line healthcare workers and other business continuity type off use cases to that capacity for video. The last one is actually as you can imagine. Also in this environment is data backup and recovery. Right? The the enterprises are looking for a solution that in which they can not only backup protect and also search for search for the things that they can actually, for historical reasons. So in this release, we're actually certified to solutions for back up the 1st 1 of course, with our friends at Dell. Right, Dell data protect solution. The 2nd 1 is that's an industry leading solution right there. And the 2nd 1 is actually the beam, though so but with both solutions now, we can truly offer our customers who are looking for enterprise strength a backup solution to for the continuity and also for this to continue to operate in this environment. >>So I'm just curious. Before we let you go, you talked about this being a pretty significant release and we've talked about markets basis from edge back into the data center. Ah, and really kind of enterprise class heavy workloads, critical workloads, applications running this so as you look forward, you know, not give me any secrets out in terms of roadmap. But Where do you see this? This class of application evolving. >>So I think that you can imagine the week we talked to a variety of customers there different ways. We can actually expand this many off our retail customers has talked about their suggestions and 5G towers. Not only we can expand it to a data center, we probably will actually offer this type of solutions into, for example, a substantial retail shop or a back of pizza shop that's going small on one end. The other end is, I think, that many of our customers have expressed interest off off colocators, right. They're working with in other geographical areas that they're actually working with local providers that that they don't they don't own themselves. They do not even wanted to purchase right the cooling and managing the space. So they want us to provide an integrated solution with many of the large colocators, but as well as some of the niche colocators, so that we can offer that end to end and offer that together a city platform to our partners. So that's where we're going >>very exciting space, and you guys do. Move quick, Matt. I'll give you the last word before we sign out where people get more information. Wouldn't g A Or I guess, or is it is G. I think we are, Um, give us the last word. >>Yes, so yes, the services available. People can get more information BMR dot com And I think you know the truth of the matter is the cloud is an operating model. It's not an individual data center location, right? And the idea of a cloud. A cloud operating model that could be hybrid that can move from public cloud data centers to your own own data centers to the edge to everywhere in between, including MSC's VMware provides a great platform that standardizes across that on one of the things that is a driver for VMware customers is their ability to eat their existing workloads without having to modify re factor or rework the right. I have a workload that I sit in a data center in a public cloud of VM where simply V motion or use HC X to move that workload, and I could be up and running instantly on that consistency as a lot of flexibility, agility and, you know, it helps people do things faster. So I think those of my final comments it was really good to see you, Jeff. Thanks for having us. You >>do. Thanks for checking in. Ah, I think it's the first time we've done one of these, But certainly we've spent lots of time together around the Cube set. So Ah, I'm glad everybody's healthy and this to show passed. So keep working hard to keep delivering great products. And thanks again for stopping by. >>Thank you. >>Alright, He's Matt and way. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time. Yeah, yeah, yeah, yeah.

>> Announcer: Live from Las Vegas, it's theCUBE! Covering AWS re:Invent 2019. Brought to you by Amazon Web Services and Intel, along with its ecosystem partners. >> Good morning, welcome back to theCUBE's coverage of AWS re:Invent 19 from Las Vegas, Lisa Martin with Stu Miniman, Stu, this is day three of two sets of coverage for theCUBE, and this expo hall has not gotten any less busy, tons of people still here. >> Lisa, 65,000, I'm sure the throats are a little bit raw, the feet are tired, but there's so much good information, and yeah, excited to dig in with some more of our guests. >> Yep, so much good information, in fact we have Dell EMC back, yes, we had them yesterday, there's more to talk about today, please welcome a couple of guests, we've got Nick Brackney, senior consultant, cloud product marketing, welcome to theCUBE, your first time. >> Yeah, thank you, thanks for having me. >> Lisa: And Bob Ganley, I feel like it's been about 18 hours, maybe 20. Senior consultant cloud product marketing, welcome back. >> Thank you. >> So guys, lots of news. AWS news shot out of a cannon, one of the things, though, that you can't help but talk about at any event is multicloud. Organizations, CIOs tell us on theCUBE all the time, we have inherited a multicloud, sometimes Dave Vellante calls it a crime scene, right, for various reasons, it's not necessarily strategic, but it is becoming a reality. Talk to us about what Dell EMC is seeing with your customer base, with respect, sorry, that's for Nick, to multicloud, what are you seeing, how are you helping customers navigate this? >> Yeah, I think that there's a lot of diversity in needs with our customer base, and it's really challenging for any one vendor to provide all the solutions that they need, and so that's where it's really about being able to offer them choices and giving them support to be in the right cloud for their workload, and so as we talk about this idea of cloud in the state you said, if they're in one or more clouds, it's really important that they have consistency across those clouds, because otherwise, the crime scene turns into something that's a management headache for everyone. >> Nick, wonder if we could tease that out a little bit, because consistency's important, when I think about multi-vendor in the data center for years, VMWare did a pretty good job of extracting the certain layer. I'm a little worried that we're trying to recreate some of the silos of the past in giant cloud environment, so how do we make sure we learn from the past, and because skillsets are very different, the products underneath are very different, so while there might be certain point applications that I might need, the message here at Amazon is, they've got the broadest and deepest environments, they are, if you're doing multicloud, they're going to be doing one of them, so bring us inside your customers and how we make sure that we don't end up with that crime scene that they've talked about, and all the pieces. >> I think first off, you can't look at technology in a vacuum, you really have to be thinking about people and processes. What can a business actually consume? We run into a lot of talk about containers, and containers is a great path forward to go cloud-native, and that's really easy if you're starting from scratch. If you have 1000 apps, though, that currently sit on-premises, it's really challenging to make that move, and which ones do I replatform, which ones do I lift and shift, and so I think that's one of the things we're doing with our work with VMWare Cloud Foundation, is we have one platform that can handle both virtualization and containers, so you can have a orderly progression towards cloud-native. >> Talk about the people part of it, I think we talked about this a little bit yesterday, Bob, and that's actually something that has come up in a lot of our conversations, is it's not just about the technology, for many reasons. How do you help the people, 'cause part of that's cultural, and that's really a challenging change to undergo. >> You know, I think you have to meet them where they are, right, and that's, I read an article and someone said for analytics that most CEOs still are using Excel, there are all these other really advanced analytics things, but that's what they're most comfortable with. So when we're looking at the fact that all these organizations have really standardized on VMWare, that's a really easy move for them to make, because you can take your existing skillsets, the investments you've made in the software-defined data center, and now you can extend them to the cloud, and you can take the existing best practices that you have in your data center, and you can move those to the cloud, so you're not surprised when you get there with all of the configurations and all the management, all the security challenges. >> And I want to add to that, actually, because I think one of the underlooked aspects of this whole thing, is the idea that, like you said, if you have silos of operation, then you've got challenges, and so I like to say security, for example, begins with who are you, what do you have access to? So if you have different ways of doing that on-prem, than in cloud, you're by definition at a riskier state. Same thing for compliance, same thing for automation, if you've got multiple different tools to use, it's just harder to do. So I think the consistency thing is very, very important. >> Excellent, Bob, you're the straight man for my next question here, because if you listen to our hosts here of AWS, they don't use that multicloud word. Yet the biggest conversation of discussion that I've had across with AWS, with customers, and with the ecosystem here has been Outposts, and absolutely, Amazon might not even use the hybrid term, but absolutely, it is that extension between consistency, between the public cloud and in my data center, so I'd like to hear Dell's perspective, Outposts of course, hugely important. >> Sure, I think it'd be really easy or almost trite to say that "Oh, Amazon is justifying "the fact that there's on-prem infrastructure," right, I mean Andy comes out and says "97% of IT revenue is still on-prem." I think everybody understands that. I think it comes down to the following. Investment protection, trust, and choice. And investment protection is about, organizations today have a huge investment in the way they're doing business now, and clearly VMWare is the lion's share of on-prem virtualization today, so it makes sense to extend that investment toward hybrid cloud, and there's a very natural path to do that. From the perspective of trust, when you look at on-prem infrastructure, who better to work with than Dell EMC, I mean we're number one at HTI, number one in servers, number one in storage, we know how to do on-prem, and now with Dell Technologies Cloud, we're extending that to a very consistent hybrid cloud model with AWS. And the third thing is choice, which is, Outposts is interesting because it's a completely managed service. Some organizations want that managed service. What we bring to the table with Dell Technologies Cloud is either Dell Technologies Cloud Platform, which is you manage it the way you normally manage it, or, VMWare Cloud on Dell EMC, which is a completely managed service, so we have the data centers as a service offering, we have the you manage it, mister customer, which aligns with the way they're doing business, and I think last but not least is this whole idea of cloud economics, and this concept of allowing people to pay for things by the drink, which is something that we're helping organizations do with their on-prem. >> Bob, actually, just want to make sure I understand, when we talk about that managed service, the Outposts solutions with VMWare is expected in 2020, does that then roll under the Dell Technology Cloud offering on VMWare, I just want to make sure how that is expected to go. >> Yeah, so no it doesn't, because that's essentially the Amazon hardware with the VMWare stack on it, on-premises, and what we're offering for a data center as a service solution is VMWare Cloud on Dell EMC, formerly known as Project Dimension, which is the trusted Dell EMC hardware with the verified VMWare stack, very tightly integrated, so it's cloud-like operations on-prem. >> So similar consumption models, similar design points, but different hardware stacks. >> Well, multiple consumption models, which is, I think... >> Yeah, and I was going to say, one of the other things you have to look at, too, when you're thinking about, why now, why is this happening, and I think it's because people are starting to realize, something that we've been saying for a long time, which is that cloud isn't a place, it's an operating model, and so by being able to bring that into the data center, what you're doing is you're extending it to more workloads, and I think that's great for customers, that's what they want, and that's what we're trying to build, ourselves. >> What are some of the, Bob, a question for you, aligning with Stu's question, this week, since the announcement of Outposts, what Amazon is doing there, announced last year, coming to fruition now, what are some of the things that you're hearing around the event from Dell EMC customers, are they understanding what that opportunity is for them? >> Yeah, and we've been doing this for a while, right, so VMWare Cloud on Dell EMC has been general availability since VMworld of 2019, we announced it in 2018, we've got tons of customers that are very interested, thousands of customers running within VMWare Cloud on AWS, and now looking at this data center as a service solution, as an extension to that on-prem. The thing that's cool about it is, they don't have to touch the hardware, they don't have to touch the software, it all gets managed remotely, but it's used just like on-prem infrastructure, right? So it's a great solution. >> Nick, one of the things that always gets talked about here is, there's a big shift from CAPEX to OPEX at the show, one of the things that surprises me is customers get all excited, Amazon comes out with a new feature and they say, "Hey, we're going to give you Insights, "and we're going to save you 30% "over what you were paying last year, "just because you probably weren't configuring it great." In your world, if you came to a customer and said "Oh, hey, we oversold you stuff," and this there, they'd probably be walking you out the door, but Dell's been doing some interesting things, going more cloud-native with the economic model, maybe speak a little bit to that. >> I mean, I think it's something that's great, cloud economics makes it easy to get going with a small investment and scale out, and move more quickly, be more agile, and so what we wanted to do was bring that same agility and ability to kind of innovate and not have the cost be a barrier, by then extending that across our portfolio at Dell Technologies On Demand. So that's really about whether you want to do metered usage, whether you want a subscription or whether I want to purchase hardware up front, wait till I'm going to hit the switch and turn it on and then I'll start getting billed, but then I have the idea, the same thing as cloud, where it's this idea of unlimited capacity at your fingertips, right, it's not actually unlimited, we sometimes see that even some clouds run out of space, but you're able to move quicker, you don't have to wait those three, four, six weeks for the hardware to come in, because it's already sitting there. >> Legacy businesses don't have that much time, because there are invariably in every industry, there is a born in the cloud company that is moving faster, has a different mindset, and it's probably chomping at the bit right behind them, take over that business if that legacy enterprise isn't able to work fast enough. >> Absolutely, but what really makes this really interesting is that we're still offering you more choices, right, so the thing is, there are certain workloads that break cloud economics, whether it's massive storage that, I always tell people "You spin up and spin down VMs, "you never delete data because that is super valuable "to your business," or, we find certain workloads that are steady state, right, cloud is really great when you're scaling up, scaling down, when you're flipping off the switch of the lights when you leave the room. If you leave it on all the time, it can add up, and so what's really nice, not just about bringing the cloud economics into the data center, but by bringing that consistent experience across both the data center and your cloud, is now you can let the business requirements and the application requirements determine what the best place to put the workload is. >> Sorry, so Bob, one of the big themes at this show is transformation, you've got it on your hat. When we talk about the cloud-native space, we always said, "They were the cloud-native companies, "they were born in the cloud." We said, "There are many companies now "that are becoming born again in the cloud." Bring us inside a little bit, what you're seeing, the discussion point is you just can't incrementally get there, it requires executive management, involvement, and it is a radical change in the way you build your applications, and that has a ripple effect through everything that you do. >> It absolutely does. When you think about it, there is an evolution happening in application architectures, and that evolution is from physical to virtual, to now infrastructure's a service to add additional efficiency and automation, orchestration, now container as a service, as we see organizations moving toward cloud-native and containers, to platform as a service and function as a service. And when you think about that, organizations need to bring their existing investments and virtualized applications forward as they're adding on containers, as they're looking at this next generation cloud-native. So we believe the right solution is to preserve that investment and bring that forward so we've been adding cloud-native standard upstream Kubernetes distribution to our Dell Technologies Cloud Platform, and that allows organization to extend our investment, so that's one thing is that architectural evolution. The second thing is what I call the operational evolution that's happening as well. And the operational evolution is, cloud has revolutionized the way people look at IT because it's so easy to use. So what we're doing is bringing that operational evolution to the data center as well, where we're completely integrating the on-prem infrastructure so that you can life cycle manage it in a automated fashion, and we're doing that both for infrastructure as a service and now for container as a service for Kubernetes. So we're excited about both the architectural and operational evolution. >> And Nick, I'd be curious, your viewpoint of this show, it's really a interesting mix of, you've got enterprise, you've got developers, you've got everything in between and personas, so bring us inside some of the conversations you're having, how you have worked with some of those different personas. >> Well I think it's really interesting, 'cause the shift towards containers means a shift towards DevOps, and when you're looking at that, I think what's lost on the way is, when I talk to my friends who've spent a lot of time as ITOps folks, they think very differently than developers. When something goes wrong, their immediate reaction is, "Please roll it back." Whereas a developer thinks "Hold on, let me add some more "code to this, and we'll fix it that way." And so I think the challenge right now is, the burden is shifting, and it's shifting towards developers and one of the things, I think, with our solution and hopefully project-specific with VMWare, what's coming down the path, where they're injecting containers into vSphere, all of that, hopefully what's going to come out of that is, you're going to make the job a little bit easier for developers, 'cause when you start doing DevOps, or god forbid DevSecOps, and you're burdening these people with all these responsibilities, how are they still going to innovate? That's really a big challenge, and I think, when I'm at a show like this, I hear it from both sides, so it's really fascinating to hear the different perspectives, they're not necessarily aligned. >> Yeah, it just, the quick note on that, in Warner's keynote, he puts out the giant thing on the board, "Everything fails all the time." That's not what the enterprise was used to in the old world, and that's what that transformation is, a little bit uncomfortable for many of 'em. >> And speaking of being uncomfortable, Bob, you talked about cloud, especially next-gen cloud, brings up opportunity, a lot of opportunity, but with it comes architectural change, as you mentioned, operational change, but cultural change. Final questions and thoughts, Nick, from you, what are in the respect of the opportunity but those changes, what are some of the biggest mistakes that you're seeing enterprises make, and how can they avoid those? >> Yeah, so I mean the first thing is, I think that people having sweeping mandates. When people say cloud first as a mandate, I think what they're missing in that is, there's so much exuberance, they're not thinking through, what does the workload need, what does the business need, and cloud should absolutely be a big part of anyone's strategy moving forward, but you need to be thoughtful about what you do, and Pat Gelsinger talks about, there's three laws, the laws of physics, the laws of economics, and the laws of the land. I always joke around, we still haven't managed to find a way to travel faster than the speed of light, so latency is always an issue. And then the second thing is, around the shared responsibility model. When you move to infrastructure as a service, people think, "Wow, they're taking care of everything, "this is super easy." And what they haven't always figured out is that they're still on the hook for a lot of things from a security perspective, from a manageability perspective, from a data protection perspective, and if you fail to actually address those, then you might run into some problems down the line. >> Guys, good stuff, always so much to talk about, thank you both for joining Stu and me on the program today, Bob, I'll probably see you again at the airport tonight. >> No doubt. >> We appreciate you joining Stu and me. And, stick around on theCUBE, 'cause later today, Andy Jassy, AWS CEO is going to be on. But for now, I'm Lisa Martin for Stu Miniman, thanks for watching theCUBE. (techno music)

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back, everyone. Day three Q coverage here in San Francisco for V emerald. 2019. I'm just for a student, Um, in here with David Lan. Take days free kick off. We have two sets wall to wall coverage. Guys, this is the time where we get to take a deep breath two days under our belts look and reflect on all the news we've covered in a dark to last analysis sessions but also kind of riff on. We got two nights in hallway conversations we learned a lot of the party means do. I learned a lot last night. Dave. I know you. You learned a lots, do you, Thomas? When things that the chatter Certainly twittersphere hashtag the emerald. A lot of action on there, but it's the hallway conversations. It's the party that people have a few cocktails in them day that you start to hear the truth. The real deal comes out, >> No doubt. And and again Jon Stewart, there's real concern over from the from the practitioners we talked to about this acquisition spree. Are they going to be integrated? Are they going to just throw all this stuff at us and keep jamming products and service is down our throats? Or is this going to be a coherent set of solutions that solves our problem? We also had a little little interesting side conversation about, you know, Snowflake, Frank's lumens new company and how basically Frank is bringing back the Pirates from Data Domain and from service. Now Mike Scarpelli is over there. He's a rock star. CFO Beth White is eventually is back over there. And Frank's Lupin. He's the guy who takes companies from, you know, 100 million to a billion, so that's gonna be >> very serious money making him going on there. >> We have been following his career for a number of years now. We watched him take data domain. We watched him pull that that rabbit out of his hat with the sale with net app, and then the emcee swooped in. And then we saw what he did service. Now we've documented this is an individual to watch, you know, >> he's a world class management team member I mean, he's executes. >> Oh, yeah, no doubt. And >> he has >> a formula that's been proven and in time and time again. And to me, the biggest testament salute Min is the success of the continued success of Data Domain. After he left Hey, he really helped clean up the emcees data protection mess. Um, and then the second thing is, look at service now is performance after he left, I haven't missed a beat. And, yeah, John Donahoe, great executive and all, but it's because Frank's Lubin had everything in place and that was a really well run >> dry. And they got a nice little oracle like business model. >> Yeah. No, you're right. They kind of, you know, the big complaint now as well. Your price is too high that Oracle. >> What have you learned? What you hear in the hallways? I mean, a lot of chatter. >> Yes, John, we We've been reflecting back a lot. It's 10 years in 10th year of the Cube here and back here in San Francisco. The new Mosconi, our third show that I've been at this year in Mosconi and we always track year to year. But since it's been what 45 years since we were here for VM World. When I talked to the average vendor. When I talk to you know, the analysts here were like, Oh, thank goodness we're not in Vegas. When I talked to the average attendee, they're like, Oh my God, what happened to San Francisco since last time we were here? It is too expensive. And the experience walking around San Francisco has really not nearly as nice as it might have been five or 10 years ago. And many of them we were talking to, Ah, woman that runs an event that has been Vegas in San Francisco. And she said, Oh, we did in San Francisco and got tremendous feedback. Don't do it there again. Brings back to Vegas both for costs and the enjoyment of being around the environment. >> Where was a shit show here in San Francisco is horrible right now, I got to say to your right eye was walking this morning from my hotel. Literally. A homeless person passed out the middle of the sidewalk. Um, your smells like urine. It's P, and it's It's just I mean, it's really bad this tense now. I mean City of San Francisco is gonna do some. Mosconi, by the way, has been rebuilt. Awesome. So, you know, in terms of the new Mosconi stew, that's a serious upgrade. Hotel rooms are scarce and just the homeless problem. It's just ridiculous. I don't know what they're >> doing. So one of the other big things when I was reflecting coming into here two years ago when VM wear really started down right before the war on AWS announcement, they made a big announcement. IBM because they had sold off the cloud air toe Oh, VH And for two years Oh, VH was a big partner, Talked about that transition, said we handed off this great asset over h isn't here at the show. I was like, Oh, my gosh, you know, that was, you know, such a big story and other companies like New >> 12. That's good. One lets someone who's not at the show and why. Yeah, oh, VH wired to hear >> They aren't here because, well, they've got customers. More of them are in Europe That was supposed to be a big entry into the United States. Obviously, it wasn't as valuable for them to be here, even though I'm sure they're still part of that service provider ecosystem. They have other big one for us, and we've had on the Cube Nutanix. You know, we've had Dheeraj Pandey. First time we had him on was that this show is still the majority of Nutanix. Customers are VM where customers I've talked to lots of Nutanix customers at the event, even part of the analyst event. Some of the customers I talked to were like, Oh, yeah, my hardware stacks Nutanix and amusing NSX. And I'm using other things there. But they are not here. They're not allowed to be at the show. And I >> mean, they were blatantly told they can't come. >> They can't come here. They can't come to the regional things. They can't do the partner things. So that that that relationship is definitely >> from red hat. What kind of presence have you seen from Red s? >> So their number companies like red Hat that they're kept at a lower level of sponsorship. So they're here. They participate, you know. Open shift, of course, is you know, big enemy for cloud native. Lots of open shift runs on V sphere. So many of those companies that are part of the ecosystem, but not the ones that they want to celebrate and put front and forward. So it's always interesting kind of walk around on those. Even Microsoft is an interesting relationship for, you know, decades with the M wear. You know, of course, azure they partner with. But hyper V was long a competitors. So, you know, we understand those competitive relationships >> could be interesting. Stew and Dave on the ecosystem Jerry Chan Day when we just doing my interview yesterday on the other set mentioned that the ecosystem reinvents itself the community. The question now is with Delhi emceeing Del Technologies obviously heard Michael Dell essentially laying out his plan, which is he's got. He's trying to keep people distracted, but the bottom line is going to top people putting together the cloud right well service provider model. So you know, that's what he's gonna be a big impact. VM wear the crown jewel of Del Technologies certainly is looking more and more like It's >> well and yesterday remember the first VM world we did in 2010? It was It was del I mean course and see only the time Who's Del? It was H p Yes, the emcee was there, but it was net app. I mean, everybody could've had equal standing yesterday at the keynotes. It was Project Dimension of V M, where cloud on Delhi emcee and long keynotes >> data protection into the VM were >> also it's It's all very heavily, you know, Jeff Clarke has his his thumb on, you know, the the deli emcee folks pushing that through Veum where Michael is orchestrating the whole thing. Pat obviously is allowing it. I was sitting in the audience Next next, Some folks from Netapp they're like, you know, this kind of a bummer. Calvin Sito from h p e tweeted Wow how to stick it in the face of your ecosystem partners. He then later went on Facebook saying, Hey, I love this ecosystem, so sort of balancing it out because, you know, he wants to be a good, good citizen, but clearly the ecosystem partners who basically brought VM where you know, to the the position where it's in through distribution, our little ruffled. Right now you can't blame him, But at the same time, the mandate is clear. Michael Dell is driving his products and his solutions through VM were period the end. And, you know, if you don't like it, leave >> right. They had such great success with V San and VX rail in that joint product development and go to market. If they can replicate that with a number of other solutions, they get that the synergies. If >> you don't like it, don't leave. That leave is worse than that. They say you don't like it, you know, invited you. But >> how about what Pat said yesterday in the Cube about when they announced on Gwen heavily leaned into V san. He said publicly that Joe Tucci was pissed and I hate her. They were going at it so that so that shows you the change, right? I mean, so so so e m. C. When it owned VM where was very cautious about allowing Veum wears a software company to drive value somewhere Now is just acting like a software company. >> Well, I think I mean, I learned last night's do, um and you can appreciate this. I learned that the top executives of'em where are looking heavily and working hard at understanding and drive them kubernetes cloud native thing because this is not a throwaway deal. This is not a you know, far anything that they are investing. They get their top brass tech execs on kubernetes fto. Two big players job. Ada, Craig McCaw calumnies. We know interviews since day one, but I think the cloud native thing is going to be interesting. And I think it's gonna be evolution. I think there's gonna be a very dynamic road thing's gonna be a series, of course, corrections, but directionally they're all in on. They're going for it, they're not. >> And actually, I had a, you know, good discussion with Chad Attack. It's a good friend of the program now working at GM, where for the first time, but came from AMC worked at Pivotal. He said, culturally, such a gap between VM wear don't have to touch your app, you know, move everything along lifted shift is nice and easy versus pivotal, you know must go completely You know, dual programming, you know, agile everything there, so bridging those because there's multiple paths and the rail pharaoh announcement is that would be cloud native stuff that won't necessarily go to the EMS. We're going to retool V EMS to now be a platform for kubernetes so that they have a few passed to bridge or to build towards the future. Here's the >> answer strategy. Discussion That and Rayo Farrell was now running Cloud native. Think this is just really >> ties in the interesting discussion that I had with some folks was that you've essentially got well, Jerry Chen brought this up last time we had him on it and reinventing because >> we have >> a conversation all the time about this Amazon have to go up the stack. And Jerry Chen made a really he said, Look, it they're not They're not gonna become an e r peace offer company. What they're gonna do is give tools to the builders so that they can disrupt Europea. They can disrupt service. Now they can disrupt Oracle. That's their strategy, at least for now. Okay, so what does that say? I think the strategy discussion inside of'em were and and l is about by whatever clouds gonna be 35 to 50% of the market. Fine. And the cloud native abs. Great. But you got this mission critical. E r p is an example. Database saps that are on Prem. What we have to do is keep them there. So we're going to sell to the incumbents and we're going to give them cloud native tools, toe modernize. Those APS have build new acts on Prem, and that's the that is the collision course that's coming. So the big question is, can the cloud native guys and AWS disrupt that >> huge? I've always said I'm is on and like the way they're coming in, a tsunami is coming in. And who's gonna build that sea wall to stop it right? And that's essentially only hope that these guys have. You look at all the competitive strategy. Was Oracle. Whoever just gotta stop it? You can't like >> the sea >> wall. That's a great building. A sea wall I was, I would say, is Is that you know, they're only hope at this point is to, you know, get in the game because see Amazon is the stack. They're not really moving up the stack. You hear that from Cisco and Dale and other people? That's where it's a game of musical chairs. Right now, the music's you know, there's still a lot of shares left, but soon chairs getting pulled away and Cisco Deli emcee VM, where they're all fighting for these big chairs. And one >> thing >> we talked about yesterday is that VM wears very directional, product driven. Otherwise they pick a direction, is a statement of direction and don't really have a lot of meat on the bone. In the product side, Sister is actually in market with service providers there in market with NETWORKINGS to this no vapor there that's installed basis and incumbent business. You have developers Esso Baton talks about suffered to find data center, suffer defined networking. I mean, come on, Really. I mean, they're getting there, but it didn't have the complete solution. Cisco >> Coming into this week, I expected here a bit more about the progress and all the customers of'em wear on AWS and feel like Vienna actually downplayed the AWS. We know what a strong partnership it is at every Amazon show we go to, and we got a lot of them Now there's a big presence there, and I can talk to customers that are starting to roll out and move there, but it felt like it was David's. You pointed out there are some messaging differences when you talk about multi cloud and how they're positioning it. So, you know, put those >> here Amazon. If your Amazon you're not happy with Microsoft Dell Technologies World The big announcement that was positioned a cloud foundation Although it wasn't a joint engineering, But the press picked it up as though the Amazon deal has been replicated with Microsoft and Google. I mean, you gotta be gotta be hurt if your Amazon >> So I've I've just been taking notes this this event, there's I've noted at least five major points of difference between a W s what they're saying and their philosophy and the anywhere so eight of us. We know they they don't talk multi cloud. They've told their partners, If you're doing joint marketing with us, you cannot say multi cloud aws that reinforce John. We saw this. Steven Schmidt said that this narrative that security is broken doesn't help the industry. Security's not broken, you know, we're doing great. The state of the nation is wonderful. Aws Matt. Not really. I agree. By the way. Uh, that's not the case. I agree with Pat saying Security's broken. It's a do over VM where wants to be the best infrastructure and developer software company. Who's the best infrastructure and software development platform. Eight of us. The M one wants to be the security cloud. Who's the security cloud? Eight of us. And then, uh, they talked about 10,000 cloud data Listeners are those really cloud data centers at Vienna. And the last one was this was a little nuanced Veum was talking about We know about migrating, modernize, lifted ship shift and then modernize The empire's not talking about modernize and then migrate. If you want to. I totally in conflict >> as a collision course. That's got Look, look, look at the data center was Look, it looks like we're going. We're going away, right to the data center. Staying. That's music to Michael Dell's VM. Where's years they live in the Data City? Do you pointed out yesterday? Data Senate goes away. So does begin. Where's business? >> One of things. I'm surprised. I'm wondering you both have talked to some of the service fighter telco pieces of'em, where they're doing that project dimension, which is the VM where stack on del that looks just like outposts on. And I know they had deployments on this for months. If I was them, you know, it's everybody's hearing about Outpost to talk about it, being more like we're already doing it in. This has you in that Amazon ecosystem. It might be a little strong for the Amazon story, but have you been hearing any about that this week? >> I think they keep a lot of cards close to the chest, but it's clear from the announces that they're doing certainly del the VM, where on Delhi Emcee Cloud or whatever it's called, it's not a cloud but their their infrastructure that is essentially a managed service. That's gonna be really strong for I t. People, because I think that the value proposition of going toe i t and saying we have this, you don't need to do anything. It's very strong, I mean, because I didn't want him >> and justified because this the project to mention it is that single, that thinner stack like what we saw on Outpost in the Amazon video, as opposed to Veum, where cloud on AWS, which is the full C i r h d. I stack. >> I haven't heard anything still on >> well, but the conversation I had from from Vienna, where standpoint, they could make money on that manage service. That's why it's the preferred partnership, right? And so that's their part of their cloud play. If you don't have a public cloud, I said this yesterday, you have to redefine Cloud and you have to get into cloud service. And that's what's happening. And that's exactly what's happening. And what I like about what V M where is doing is they are transitioning their model to a sass based model. Now it's only 12 and 1/2 percent of the revenues today. But both pivotal and carbon black are gonna add, you know, ah, $1,000,000,000 next year to that subscription based $3 billion in year two. Um, and so you know, Pat said the other day, I think we could get to 50 50. I don't necessarily think in the near term we're gonna go beyond that. It's not the Adobe >> way could be critical. Critical of'em were in some areas, but I gotta tell you their core strength that they went to a software operators on the data center friend of prices. That's been a great strategy. Focusing on their core building from there is Jerry 10 point out adding other products so their software company, So I think they're really got a good solution. And you? The data shows that people are increasing their spending, John. Just one based on >> that. Because I had a couple of really good conversation with customers, customers that would deploy VCF So they've got the full stack on there. So using H C I, but not necessarily on Dell hardware, could be Cisco Hardware. Could be HB hardware in the like or they're buying NSX. But the virtual ization team owns it, and they get kind of put in. A box storage team says That's not the array I'm used to buy. Well, maybe I'll put a pure storage box and put it in between. The networking team says I'm refreshing my Cisco hardware. You know, we're like, but we have NSX, and it's great. Well, you can use NSX over there. We're going to use a C I over here. So the term I heard from a number of customers is organizations still have hardware to find roles, and they're trying to figure out how to move to that software world. Which hurts me, cause I spent years trying to get beyond silos and helping people you know, move through those environments. And still, in 2019 it's a big challenge. That organizational shift is we know how tough that is. >> So just couple points in the data, because you're right. There are some countervailing trends, though. So, yes, people are spending Maurin VM where in the second half. But at the same time, the data shows that cloud is hurting VM wear spend. So this that's kind of gets interesting. Our containers gonna kill VM where? No, there's no evidence that container's air hurting VM where spend. But there's clearly risks there, you know, as we've talked about who's best position of multi cloud. Well, it turns out three guys with the public cloud are best positioned in multi Google and Microsoft on, and so and then the pivotal thing is interesting, and ties ties all this in so that the data is actually really interesting. It's like you're seeing tugs at both sides, and I think your your notion about the seawall is dead on. That's exactly what they're doing. >> You see that with Oracle's trying to stop jet. I just want they can't win this one to stop Amazon just on the tracks gave great data. Great reporting, Stoop. Good observations. Get all the day that night and parties we're gonna certainly keep doing that. Day three of wall to wall coverage here. You bringing to the insights and interviews here live from the Emerald Twin 19. Stay with us for more after this short break.

>> Narrator: Live from San Francisco, celebrating 10 years of high tech coverage, it's theCUBE, covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Well, welcome back everyone. Live CUBE coverage here in San Francisco, California for VMworld 2019. I'm John Furrier, Dave Vellante, Dave 10 years continues, day one of three days of wall to wall coverage. Mark Lohmeyer, Senior Vice President, Cloud Platform Business Unit and general manager at the VMware, manage cloud for VMware. Great to see you again. >> Great to see you, yeah, thank you. >> So you got, you're managing all the VMware manage cloud on AWS and Dell EMC? >> Right. >> Which was a big part of today's keynote. Obviously a big part of your investments, so you know, you always look at someone's commitment to something. How they spend their resources and their time. So give us an update obviously a lot of resources on the VMware side. >> Mark: Right. >> To make this run, what customers want. Give us an update on what's going on. >> Yeah, yeah I mean so first of all VMware Cloud and AWS, I mean, we're really pleased with the momentum we're seeing for that in the marketplace. So, we compared what it looks like today versus a year ago. And we were talking about it, a year ago and we've increased the number of customers by 4x on the service. We've increased the numbers of VM's on the service by 9x. That's kind of interesting 'cause it shows you that you know, we're adding both new customers as well as existing customers are expanding their investment. So, that's great to see, right? And it's powered by a lot of the compelling Use Cases. You may have heard Pat or others talk about most notably, cloud migrations. You know from an investment perspective which is I think where you sort of started the question you know, significant investment from both VMware as well as AWS the end of the service. You know we say it's jointly engineered and that is absolutely the case. I mean we literally have hundreds of engineers that are optimizing the VMware software to be delivered as a service on top of the AWS infrastructure. >> And that's a lot just to get nuance on this point. Because in the press coverage, I've seen all the press coverage from the Microsoft and the Google. This is different than just Cloud Foundation because you're talking about something completely different. This is jointly engineered. These are specific, unique things. >> Yeah, I mean with the sort of distinction I would sort of articulate there is that in the case of VMware Cloud on AWS, it's a VMware managed, operated, supported, delivered service. Right, so it's our engineers that are pushing the bits into production in AWS. It's our engineers if there's an incident that deal with the you know, with the situation. You know, it's literally a service operated by us. In the case of what we're doing with Azure and GCP, you know first of all from a customer perspective what we heard them telling us is, I think many customers are using Azure, many customers are using GCP and they'd like to have the ability to have that same VMware consistent software stack on those clouds. But the operational model is different. So in those two cases there's a partner called CloudSimple. Who's a VCPP partner and they're taking our standard VMware Cloud Foundation software that customers use on Prem and they are operating and delivering that as a Cloud service on top of those Cloud platforms. >> Just to review so VMware Cloud on AWS and Outposts both your responsibility, there's two way street there? >> Yup. (laughing) >> Which is rare with Amazon usually it's a one way street. My words not yours. But so, and, so you manage both sides of that? Is that correct? >> Mark: Yeah, that's right, that's right. >> So you're happy to sell either one? >> Absolutely, yup. >> Right, and then the Dell EMC version is kind of the on Prem version of Outposts, if you will. Is that a fair characterization? >> Mark: Yeah, yeah, so. >> Without the public cloud. >> Yeah, I mean absolutely, I think one of the interesting things was you know, we've been in market now with the VMware Cloud on AWS for a couple years. And, you know it's going great but one of the things we've heard from customers was, "Hey, we sort of really like this VMware managed cloud model where you're taking all of the heavy lifting of worrying about the Lifecycle of the VMware software. Worrying about the you know upgrades to the hardware, you're taking that all off of our plate. But why can't we have that same cloud delivery model back on Prem?", right and so, that was the impetus for what we originally announced as Project Dimension and now we're launching this week as VMware Cloud on Dell EMC. >> So all the benefits go with the Dell infrastructure hardware? >> So, I got to ask you, so one are the attributes of those those solutions, is they're highly homogenous, right? And, Andy Jassy made a big deal about that same Control Plane, same Data Plane. >> Mark: Right. >> So my question is, help me square the circle with MultiCloud which is highly heterogeneous? (laughing) So, can I have my cake and eat it, too? Can I have this, you know unified vision of the world? This controlled, same compliance, government security, EDIx, management etc, and have all this heterogeneity? How does that? >> Yeah, so I think, I mean to me it starts from what the customer would like to do, right? And what we're seeing from customers is it's increasingly a MultiCloud world, right. That expands spans private cloud, public cloud and Ed. >> Dave: You're smiling when you say that. >> Mark: Yeah, now, now-- >> The chaos is an opportunity for VM. (laughing) >> Yeah, but it's a challenge for customers, right? And so, if you look at how VMware is trying to help there if you say sort of square the circle. I think that first piece is this idea of consistent operations, right. Then we have these management tools that you can use to consistently operate those environments, whether they're based on a VMware based infrastructure or whether they're based on a native cloud infrastructure. Right, so if you look at our cloud health platform for example, it's a great example where that service can help you under, get visibility to your cloud spend across different cloud platforms. Also B service platforms. It can help you reduce that spend over time. So that's sort of what we refer to as consistent operations. Right, which can span any cloud. You know what my team is responsible for is more in the consistent infrastructures base and that's really all about how do we deliver consistent compute network and storage service that spans on Prem, multiple public clouds and Edge. So that's really where we're bringing that same VMware Cloud Foundation stack to all those different environments. >> Mark, I want to get your thoughts on what Pat Gelsinger said on the keynote. He said, "modernize and migrate or migrate and modernize" he also mentioned live migrate as a big feature. >> Mark: Yes, yes. >> On the modernize and migrate and migrate then modernize, they basically pick one and people are doing both. >> Mark: Right, right, right. >> What's he mean by that give us some examples and then what's the impact to the customer? Is it just the behavior of the customer? >> Yeah, I mean, it varies a little bit based on what the customer's trying to accomplish. But you know the one thing I'll say is that, you know, historically it was a little bit tough to have that choice. Right, so you know the sort of the thought was, hey I have to like re-factor and re-platform everything upfront just to be able to get it to the public cloud. And then once it's there I can sort of start to modernize. I think in that can be a multi-year process, right? >> Yeah. >> I think one of the really interesting opportunities that we've opened up for customers with VMware Cloud on AWS is you don't necessarily have to re-factor everything just to be able to get to the public cloud. We could help them migrate to the public cloud very quickly without requiring any changes if they don't want to. And then when they're there, they can modernize at their own pace based on the needs of the business. All right, and so I think having that additional option is actually quite useful for customers that want to get to the cloud quickly and then from there begin to modernize. >> So two main paths with migration and modernize as the easiest one given the managed service. >> Yeah, yeah, and but you know that being said, I think also you see a set of customers that say "Look, sort of digital transformation and modernization is my primary goal." Right, and for them by enabling some of these things like Native Kupernetes as a service in vSphere and in VMware Cloud and AWS by enabling this AI and ML workloads with a Nivida partnership for that classic customers, they can also just start with the modernization piece, right? Directly on the-- >> So the migrate to modernize would be a lift in shift essentially and then modernize? >> Mark: Ah-hm. >> And that's what Amazon wants you to do? But, you're giving customers a choice, is what I'm-- >> Mark: We have, yeah no, I mean look at the end of the day I think both VMware and AWS believe strongly in understanding what customers are looking for and making sure we're delivering that value to them. And I think you know, this is one of the compelling new options that we've enabled for customers, I think with VMworld Cloud on AWS is that we could take a migration project that would have previously taken three years and we could do it in a few months. >> You know Mark I had a chance to talk to Carl Eschenbach two weeks ago before the show. He came in for an interview Sequoia Capital, Carl Eschenbach, former COO of VMware been there for years. He was part of the deal with AWS, graphing that deal. We were talking about the moment and time where your stock price started to move up this October 2016. That's right when the deal was announced. Since then the stock price has been up. For a lot of reasons, we've talked on theCUBE before. The question I have for you is, what have you learned? What surprises you from this relationship? Because one the clarity was easy, meet Cloud Air, no more. This is our cloud strategy. All on AWS and MultiCloud as it develops you certainly have had to clarify with customers. But now that you entered the managed service, what new things have popped up that might not have been on your radar? What did you expect? What are some surprises from this relationship from a customer behavior standpoint? >> Yeah, that's a real interesting question. So, I think you know in the early days we sort of had this concept of "Hey, let's enable the full VMware capabilities on AWS." And we were sort of talking about it as a tech, almost like a technical solution, right? And what, what we could enable. I think sort of what quickly became apparent is hey, sort of behind that technical approach there's actually some really compelling Use Cases here. And I think that, if I think back to two years ago, I don't think we fully anticipated how compelling this cloud migration Use Case would be. I mean I don't think we really realized internally within VMware how hard it was for customers before to do that. And, I think customers didn't realize sort of how much easier and faster and lower cost that we could make it for them with this type of service. So I think that one, although we were maybe talking about it a little bit in the early days. I think it surprised me at least at how sort of broad based the customer interest was in that type of capability. >> Any other broader market interest on things that were surprises or not surprises that are compelling? >> I mean, you know the other thing I wouldn't say it's a surprise per se, but I mean, I think the partnership with AWS has been fantastic. Right, I mean we sort of went into it, I think in the right way between Pat and Andy and focused on doing something meaningful together. The relationship has only gotten sort of deeper and deeper over time. And, one of the interesting things about it is that relationship spans not just engineering and product management and product strategy which is sort of my neck of the woods. But also the marketing organizations, the sales organizations, the support organizations. So it's, it's become I think a very deep partnership. We're able to speak to each other very openly and trying to solve together the, you know the problems that customers are putting in front of us. >> And what's with Outposts, what's the new update on Outposts? >> Yeah, yeah so you know no news on Outposts today obviously but we're working very closely with AWS to enable the VMware Cloud on AWS Outposts model second half of this year. And, the customer interest has just been fantastic, right. And in many ways it's basically the exact same value prop of VMC on AWS in terms-- >> In reverse. >> But, but in reverse and anywhere you want, right, at your door step, right, any Edge, any data center, so. >> I got to ask you, back to the AWS relationship. We were big fans of it always have been. Learned from both sides and believe in it. Having said that, EC2 is the bread and butter for Amazon despite it's hundreds and hundreds of services. That's where their revenue comes from, and compute, your compute business is you know, significant. So my question is, is it a zero some game long-term or when you look at the tam do you see all these other services that you can sell longer term providing you know, the growth engine for your respective companies? Or, does this whole you know, rising tide lift both boats, what are your thoughts on that? >> Yeah, I mean it's clearly rising tide lifts both boats. I mean, again I'll, I always bring it back to the customer right, 'cause that's the way I like to view the world and AWS-- >> And you've got some evidence now that's why I'm asking. >> Yeah and I mean what you're seeing is actually I mean if you take some of these customer examples. Let me give you one from the UK. So, Stagecoach. I don't know if you heard about these guys. But they're a major, so they provide transportation services in the UK, and other countries as well. So, they run a network of buses, trains and they're responsible for the transportation of three million commuters every day in the UK. So, they have this really mission critical application that they're building that is basically responsible for scheduling those buses and those trains and scheduling the conductors and the operators. So you can imagine this application is super mission critical for their business, right. And, they chose to run that application on VMware Cloud on AWS and one of the reasons they chose that is because we have a unique capability called stretch clustering. >> Sure. >> Which says "Hey, even if there's an issue in one AZ we can restart that application in a second AZ. So there's a really good reason for the customer to choose it. But now back to your question, right? If you think about the opportunity in that for both VM or in AWS, it's meaningful, right? You know, for us, we're selling the entire VMware Cloud on AWS service to that customer across those two AZ's for mission critical workload that's core to their business. For AWS, they're able to of course not only supply the infrastructure that we run on top of but also as that customer looks to do more interesting things they can attach an additional native AWS services, right? So, you know I think that's a great example where delivering value to the customer and if you focus on that the right things will kind of flow back to the companies that help make that possible. >> Good partnering helps you reduce friction and get to market faster. Thinking about the intense effort that both you know, Pat's described, Andy Jassy described, you've described in terms of that partnership, that deep engineering. Can you do multiples of those or is it that you don't because of the respect for the partnership or is it too intense and it's too resource intensive? How many of these types of partnerships can you actually have? >> Well I mean and I think Pat has said it pretty clearly, right? I mean AWS is our primary preferred partner, right. And, what we're doing with them is very unique, right? And it's something that we want to make sure that we have the right level of investment in and that we do an amazingly good job of, right. And I think they feel the same way. And so having that focus together between the two companies. I think is what, has allowed us to be you know, achieve some of the level of success we've had to date and we expect to do that going forward. >> Mark, final question for you. What's your objective this year in your business unit? What's your focus? What are some of the things that you're working on that people should know about? >> Yeah, so first of all. I had VMware Cloud VD but that's just to wrap that up I think the big thing we're focused on going forward is really this modernization kind of piece of the story. How do we enable Native Kupernetes in the service? How do we enable ML and AI workloads in this service? How do we do a better job of connecting to all of the AWS services? So, you're going to see a big kind of focus, there. Beyond VMware Cloud AWS, I mean we're really excited about bringing this VMC model back on Prem both with Dell and on top of AWS Outposts. I mean the customer interest has been, you know fantastic, right? And, you think about all the reasons that customers want to be able to run their applications, you know on Prem, data locality, latency, compliance, all sorts of really good reasons. We think that those services have really hit a sweet spot of that market. >> IT as a managed service, what an interesting idea, don't you think? (laughing) >> Mark: Yeah. >> Whole nother level same game, whole new ball game, right? >> Absolutely! >> Mark, thanks for sharing your insight. Congratulations on your success and we'll be following it. VMware Manage Solutions AWS certainly a big hit. Changed the game for the company and now they're bringing Dell EMC among other potential business model opportunities for customers. As Cloud 2.0 comes as theCUBE's coverage. Live at VMworld 2019, be right back with more from San Francisco after this short break. (bright music)

>> Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2019. Brought to you by Dell Technologies and it's ecosystem partners. >> Hey, welcome back to theCUBE. Lisa Martin with John Furrier coming to you live from Dell Technologies World 2019. This is our third day of coverage from two CUBE sets. What do you call that John? >> CUBE Cannon. >> CUBE Cannon of content. And guess who's back? One of our alumni Shannon Champion. >> Hello. >> Director of Product Marketing Dell EMC, Shannon thank you so much for joining us. >> A pleasure as always. >> Day three you still have a big smile on your face. >> I do do, it has been exhilarating, I'm completely exhausted but I'm thrilled to be here talking with you. >> You don't look exhausted but we're thrilled to have you. >> Thank you. >> So everything started, talking about cannons, Michael came out on Monday morning with all the gang, lots of news, lots of information that we've heard throughout the last three days, people are very excited about this. Excited about the deeper collaboration within the Dell Technologies companies. But something that you guys announced that we want to kind of really break through is Dell Technologies Cloud, VMware Cloud on Dell EMC, can you help me as a non-technologist understand those two differences, consumption model. >> Absolutely yeah, so it's all in a name really, Dell Technologies Cloud is the unification of the strategies between Dell EMC Cloud and VMware Cloud, one unified cloud strategy called Dell Technologies Cloud. Under that there are offers. So there's two categories of offers, one is the Data Center-as-a-Service, the fully managed, on-prem infrastructure where VxRail is the foundation. People know this as Project Dimension announced last year, it now has a formal, VMware Cloud on Dell EMC. So it's an offer underneath the category of Dell Technologies Cloud. >> And the VxRail components, explain VxRail for a minute, I think that's super important, it seems to be everywhere a key part of the architecture. >> It is yeah, so if you are here at the show, you've seen that VxRail is everywhere, it's on stage in lots of demos and it is the core foundation of our Dell Technologies Cloud offers. The collaboration between Dell EMC and VMware to bring VxRail to market kind of showcases the power of what this partnership can do. So it makes sense that this tightly integrated enterprise grade hyper-converged platform is the foundation of these Dell Tech Cloud offers. >> What's some of the use cases that was really driving the project, obviously multiple clouds was a key message here, but what was some of specific use cases you guys were really attacking? >> Sure, so when you look at the Data Center-as-a-Service offer, it's the fully managed capabilities. So customers are going to public cloud for the simplicity, agility, that cloud-like operations. But we started to see customers slowing down the adoption of that to some extent because they needed the security and the control of having infrastructure on premises and that's what we do with Data Center-as-a-Service, basically deliver the benefits of both, in a monthly subscription type model where they have all the infrastructure on premise but they get the benefit of a public cloud-like experience. >> And that's in beta, the announcement in the news was that Project Dimension, now Data Center-as-a-Service, which I love that name by the way, I think it's going to be great. But it's in beta, what does that mean beta? Select customers, preview, what's specific? >> Yeah, it's in beta phase, we have a couple customers that are running it today, so we're looking for customers to help shape the future, help us prioritize, you know, what are the key use cases that they're seeing a need for this technology. So we're looking for a few good companies still, so if anyone's out there interested, hit up our reps. Yeah, it'll be available in the market in the second half of this year, but currently in beta. >> It seems to be great for the edge, shipping a data center is almost like, okay with all this new technology, the bundling's literally nice, you guys did a good job on that. Shipping a data center, it almost was a dream years ago, We'll just ship a data center to the edge. That seems to be the the big use case that people are talking about, the edge of the network's going to have more capabilities, moving data around is not the answer, 'cause of latencies and as Pat Gelsinger would say laws of physics. This is identified as a big sweet spot. Michael Dell commented the edge in the next 10 years is going to be explosive, is that pretty much the core kind of direction? >> Yeah, it's interesting, you know it's called Data Center-as-a-Service and edge is a key use case for Data Center-as-a-Service, but also the core data centers when we are polling our customers they're actually telling us, they have a need for this in both locations, so both are key use cases, the edge obviously for the reasons you pointed out too. >> So talk to us about the customers involvement in the manifestation of Project Dimension. We've been hearing a lot the last three days, you really even felt it on stage from day one. Collaboration, not just within the Dell Technologies companies, we saw Microsoft. But where are the customers in terms of influencing Project Dimension now becoming a reality? >> Sure yeah, I mean this has been a collaboration with customers, but also between Dell EMC and VMware jointly with our joint customers going out to talk to them about the possibility and the promise and the capabilities that are being delivered. So certainly a joint effort from both companies along with our customers to give us feedback in terms of you know, where they see this as a key use case for them. >> Customers just looking for tighter integration, tighter collaboration, what are some of the business imperatives, where your customers are saying, hey guys, this is really the way to go here and here's why. >> Yeah I mean I touched on it a little bit in terms of like, the transparency, the security, the control, the data latency, improvements of having infrastructure on premises whilst still wanting sort of that agility and simplicity of a public cloud-like operating model, and that's essentially what's driving this new category of infrastructure consumption, Data Center-as-a-Service. And we have a whole nother side of Dell Tech Cloud, which is the Dell Technologies Cloud platform and we deliver that through VMware Cloud Foundation on VxRail, so I mentioned VxRail's kind of everywhere, that offer is available today for customers on premises. And with VxRail it's really the only VMware Cloud Foundation infrastructure offering that has full stack integration, we're calling it full stack integration because there is a set of software capabilities for VxRail that tie together what VMware does with the SDDC Manager automation together with the infrastructure management VxRail through RESTful APIs, through software that integrates the two. So for customers, they have a complete seamless all in one management experience with cloud foundation on VxRail. So, we're really excited about that and it's only been shipping for two weeks and already customers are willing to be reference customers for us, talking about the potential, the promise, wanting to work with us on what this could mean for their organizations. >> Was going to ask you about their reactions. >> Give us some feedback on the customer, I'd love to hear what they're saying, obviously demand, what's the main euphoria around it? >> Yeah so, hybrid cloud is part of every customer's strategy and really understanding how they can best get there, what's the simplest and the fastest way for them, has been what they're considering. And if you look at what we're doing with VMware Cloud Foundation on VxRail, we have a fast and simple way and they back by the promise of both Dell EMC and VMware working together to bring these two technologies in a unified way that's a seamless experience. So, you know the power of hyper-converged is to let businesses get out of the, maintaining the infrastructure so they can focus on business outcomes. The same is true for other use cases like hybrid cloud. So that's what customers are excited about there. >> Yeah Pat Gelsinger says "don't look down, look up." Meaning if you can take advantage of the modernizations of hyper-converged which you guys have been doing for a while, the packaging's more consumable and you bolt on the VMware piece. So then you got consistent cloud operations, but then can focus in on the software. This is the dream of software defined data center, this is what people had hoped for, I think two years ago, but it's kind of, come in now this is reality. >> This is reality, for sure. >> So it sounds like, you've got nearly what 5,000 VxRail customers, it's over a billion dollar run rate, are customers looking at VxRail as a foundational component of really accelerating their modernization of their IT and their data center. >> Yeah, that's been the core of what VxRail's delivered since the start, so it's three years old, as you mentioned nearly 5,000 customers to date. It's the fastest growing HCI system, thanks to that strong customer adoption. But really it's been a catalyst for data center modernization to date. And what we're talking about this week is how it's really going beyond an HCI appliance. So it's the foundation for hybrid cloud for the Dell Tech Cloud offers. And we're also offering up additional deployment options, so people think of VxRail as an appliance, but now they can get it as fully integrated rack with or without networking and if they choose Dell EMC Networking, they get the power of SmartFabric Services integration, for hyper-converged networking can be a pain point now it's fully automated, deployment, life cycle management as part of the full stack, so lots of options. >> Talk about the software innovation, 'cause we've been hearing and this has been happening, they've done a software transition, there's more software engineers than hardware engineers these days, you guys have the system software and some analytical software, how does that play in on the HCI side and where's that sit on the VxRail side, is it on the stacks, so where is your software piece? >> Yeah, thanks so there's really great software innovation from the PowerEdge side from the VMWare vSAN side, but we also have additional software innovation, specifically for VxRail that kind of ties those things together and that now includes VMware Cloud Foundations. So there's things like the RESTful APIs that I talked about that enable VMware Cloud Foundation full stack integration, that also have downstream connectors that allow networking automation. But now we're introducing another piece of software innovation that we're calling VxRail ACE. Analytical Consulting Engine, so you know, it's a marketing term, but what does this do, it's intelligent analytics to further simplify operations. We like to call it infrastructure machine learning for VxRail. So we're excited, we have a data lake, it has an analytics engine and historical data of how customers have been using VxRail to date. Now we're able to have enough data to apply machine learning to that and offer up customers insights into how to best optimize their configurations, forecast consumptions, I was just talking with some customers in a session before about how a few years back they would try and project their resource consumption over a five year period and now they can't even look six months ahead. So a tool like this can help them forecast it. At what point in time am I going to need to add more drives or add more nodes based on my current usage rates and that's pretty powerful technology. >> And with the consumption model changing too to the subscription, this gives them more agility on both sides, proactive planning and also understanding kind of what's going on. Not look back six months to a year like, well we should have bought or over-provisioning, the old days right? >> Yeah exactly yeah, that's good a point. >> So what's the future hold, tell us about where this is going to go next. Obviously selling like hot cakes, congratulations. >> Thanks. >> What's next, where's the next innovation coming, what's going on? >> Yeah I mean, like I said, we're seeing VxRail as more than just a catalyst for data center modernization, a lot of customers are going to keep choosing it for that turnkey simplicity. But we're now enabling fast and simple hybrid cloud and as edge use cases start to emerge, VxRail as a hyper-converged infrastructure has a lot of promise there too, so we really see it as a opportunity and a foundation for a wide range of use cases with our customers. >> So a lot of customers as we mentioned. Any favorite stories that really showcase how VxRail as a foundation for hybrid cloud, customer's cloud strategies, how it's really enabling them to unlock the data capital as it's been talking about here as obviously data has so much potential, but if you can't find it and you can't harness the insights. Any customer stories that really in your opinion speak to, this is really unlocking customer's data so that they can make better decisions, identify new revenue streams and ultimately deliver an awesome customer experience. >> Yeah definitely, I mean we have over 25 VxRail customers here at the show telling their stories throughout. It's hard for me to pick a single one. You know what's interesting is when we just had a session, we had two customers there and we asked them what are the business drivers that VxRail is enabling for you? They both, completely different industries, one is an insurance industry and one was a financial services industry, and they both came back to the same premise of I need to deliver IT services faster to my customer base and I can't spend time being in the business of maintaining the infrastructure, I just need automation that enables me to let my teams accelerate the pace of innovation and stay competitive. So, that's the role that it's playing. >> And in any industry, because as we know, every company these days, if they're not technology companies already, they need to be. >> Yeah that's true, yeah we were just talking about IT as a business, how IT leaders really need to work hand in hand with the CEOs, understand the business strategy and then create their own IT strategy. And really drive a culture around a business plan specifically for IT and technology. Which is a really interesting way to think about it. >> I was going to ask you about cultural change, as we all know that's very challenging to do. These two customers that you mentioned did they talk about that at all, like how it's actually enabling cultural change that drives the business forward. >> Yeah they did actually and you know, the core there is that people is harder to change than technology and tools and processes. Some of the tips that they had were really insightful, one of which is, a lot of people fear change. But if you can inspire them to fear obsolescence more than fearing change, then you can motivate them around that, but also creating a vision for them around what their role will be when they're not maintaining infrastructure will also help kind of inspire them to do things differently. So that was pretty cool to hear directly from customers around how their innovating, inspiring their people. >> Competition real quick, obviously HCI's been very competitive, new other vendors are out there, we know who they are, how do you guys fit in versus the competition, obviously the differentiators, the multiple piece parts of Dell Technologies. But where's the real innovation and competitive advantage that you guys are putting out there? >> Yeah, from a VxRail perspective it's easy. There's no deeper integration with VMware. All customers pretty much are VMware customers, a majority of them right? And being jointly engineered with VMware gives us inherent advantages and an experience that customers come to us and tell us, is superior to others that they're able to find, so we always go back to that and we get validation from our customers on that too. >> Okay Shannon as we wrap up here in the last few seconds. What are some the things you're personally going to be taking away as you hop on that red-eye tonight? >> Personally, I think Dell Technologies World is like the culmination of so much hard work of a ton of people, so I'm going to send a ton of thank you notes to all the people that made this happen, but really reflect on how exciting a time it is in technology, in what we're doing in hyper-converged that plays a role in everything that we've heard this week. And just be proud of what we're doing. >> Awesome, you should be proud, well Shannon thank you for joining John and me on theCUBE again this afternoon we appreciate your time. >> Thank you. >> Go get some rest. >> I will. (laughs) >> For John Furrier, I'm Lisa Martin you're watching theCUBE live from Dell Technologies World 2019. Thanks for watching. (upbeat techno music)

>> Live from Las Vegas. It's The Cube. Covering Dell Technologies World 2019. Brought to you by Dell Technologies and it's ecosystem partners. >> Welcome back to Las Vegas, here at the Sands Convention Center at Dell Technologies World 2019. I'm Stu Miniman, my cohost here is David Vellante. Two sets, five hosts, three days, wall to wall coverage. All of the action for Dell Technologies, all the component pieces. Happy to welcome back to the program Ashley Gorakhpurwalla, who's the president of the server and infrastructure services at Dell EMC. Ashley, thanks so much for joining us. >> Thanks for having me. >> Good to see you. >> Alright, so we actually had Sam Grocott on and we were talking about all the product lines. And he said he's the father of power going across the line. He did admit that the power line goes back to PowerEdge, which, of course, is your baby. >> That's right. >> Give us the update, lots of discussion at the keynote. Always change in your world, so give us the latest and greatest. >> Sure, we're about 25 years old now. So PowerEdge has lived on for quite a while. We've got to be over 30 million servers out there by now. So we had a really good Dell Technology World so far. More to come, but some of the lists, real quick, of announcements that we've had and we can talk a little bit more about them. In servers, we actually went a little bit early from Dell Technology World and lined up with Intel to launch Cascade Lake, bringing Optane into server class memory. I think the industry's been waiting for it. We're ready to deliver now. And so that was earlier this month. We've put quite a bit of advancements and enhancements in our open manage enterprise and in securing the platforms. We also this week talked about a PowerEdge that's not called a PowerEdge. So we call it the DSS 8440, and really a capstone product to our AI ML portfolio. So today we already support one, two, three, four accelerators per server. Now we can go up to 10. We can support the latest Nvidia B100 tensor core GPUs, and it's really a unique system within the industry. That's going to help customers scale their training loads further and further, faster performance, more mips, very, very intense box, but one that's going to be, I think, well received within the marketplace. >> Did you say bits? >> I said Mips. >> I like that term,. >> So actually, we've got a lot of pieces that your solutions fit, but you mentioned one item, that I wonder if you could just explain to our audience the importance of SEM, is something that how does that impact solutions, the applications. It's something that a lot of times get lost in the whole general storage discussion. So maybe explain the importance of SEM in the marketplace today. >> Sure. So it's a game changer, it really will be, but it'll have to go, in our mind, through the technology adoption curve that a game changer deserves. So it's been a long time coming. We've been working on it, the industry's been working on it. Intel has been working on it for more than a decade. And if you think through it, we see customers using it in two different ways. In memory mode, expanding the capacity within nodes to levels that you can't reach with DRAM today at almost DRAM-like levels and performance, is something that a lot of customers already have models for. They can think through TCO, they can think through their performance characteristics, and it really becomes something they can consider to enhance their portfolio today, at mode, a little bit different. As we think through software from the OS level: kernel, hypervisor, application, cache, log, database, all these levels, we're going to have software that has to catch up and allow this to be the game changer it is. But already, I'll tell you the demand for systems that we're providing customers to begin their evaluations, they proof of concepts, their software development has actually doubled what we thought it would be, and we were pretty ambitious. So I think the demand is there, and we're going to see that adoption curve when the software catches up. >> And any specific use cases you're seeing early on? >> Well like I said, memory mode, I think people can get their heads around already, is are they performance, or are they capacity bound by DRAM. Start to do the economics, does it make sense. At mode, caching for sure, putting log, changing kind of the structure of how you do logs, and database is really going to be the killer app when we get there. Across the different vendors already we've seen pretty significant increases in performance, and we're early still. But I think there's a few things that our customers want to get through, and we're trying to help them with. If you have persistence in the system, you have a new level of something you have to secure, and so we're spending a lot of time with our customers helping them develop technology methodologies to say wait a minute, information, I turned the machine off and there's still information besides the hard drive or the SSD. Also can I trust the data even though it's persistent? Or do I have to have storage services at that level that help me with things like replication or snapshot or archive. So we've got a long way to go, but we're really, we believe this is a game changer, and we're developing towards that. >> And cost-wise you're sayin' slightly more expensive than DRAM. >> Probably a little bit more than slightly. >> Yeah, okay, more expensive than DRAM, and relative to flash, obviously more expensive than flash, but much higher performance, right? >> Much higher performance, and so it's just a modeling exercise, but it'll reach levels we haven't had before. And then from a software developer point of view as you go forward, you can really think about scale out systems differently. If your application was bound by capacity of DRAM or memory, this changes it quite a bit. >> So you're talking about new programming model, essentially right, that's why it's going to take some time, but you would expect maybe uptake in financial services early on. Is that fair, Or not necessarily? Healthcare? >> All solid verticals. I think it's going to be where enhancement or performance can, you know, if you pay three, four, five x the cost, but you get three, four, or five x the capability, or even less, you have to think about it, but there's some applications where latency, where performance of the database are so sensitive, and such the bottleneck today, that it's well worth it. >> When you look at the innovation pie that's going on in servers, how much is architecture, hardware architecture, versus sort of software and management? Can you sort of, I know it's a sort of general question, but give us a sense. >> Sure, I think it's interesting, is we are investing as we go forward, I think into a brand new era. So I mentioned earlier we made it to 25 years old, what's going to happen over the next 25 years. So I think most of the architectures that we develop today are highly, highly optimized for bringing data into a processor, calculating, storing. And we have very balanced, efficient, high-performance systems for that today. What are we doing going forward? Well, we're not necessarily bringing the data, describing the rules, called software, and then getting the answers anymore, right? Now what we want to do in a lot of situations, we want to bring the data, which is the most valuable asset, we actually kind of know the answers already. We want it to calculate rules for us, and that's the output. That's a different architecture. That's a different way of computing, and that's why you're seeing these heterogeneous architectures starting to form, accelerators, a lot of technology going, and innovation, and venture capital, and talent going towards really building that new model going forward for the next two decades. >> Okay, actually we've had a lot about cloud this week. When I looked at many of the solutions underneath, I kept hearing the same answer. VxRail, VxRail, I've talked to some of the team, there is more than just VxRail and some of these solutions. Sammon looked at some of the other pieces, but VxRail has been a rocket ship for the last couple of years, and of course, you know, the servers underneath driving a lot of that. Can you talk about how that plays into your portfolio and some of the architectural discussion we were seeing. How does that bleed into the HCI and hyper cloud discussions? >> Sure, so if you think of the journey we're on, 10 years ago perhaps, maybe even more recently than that, customers really were making two different choices. As a matter of fact, you guys know as well. I was organized into two different organizations. One to deal with hyper-scale, and one to deal with enterprise capability, and customers can see that. They want to be able to operate in both domains, but even we were organized differently. And if you go maybe five years ago when people started talking about software defined and HCI we finally had a mechanism to say you can build scale out of architectures. We can automate this capability for you. You don't have to actually spend all your opexs, you administration, your talent, and your time, just keeping the infrastructure up and running. And so people broke out of IT by project by Gantt chart, and into flexible architectures, right. Next thing they said is but we still aren't really operating. We're operating in silos of very flexible architecture here in my data center, very flexible architecture in the colo, very flexible architecture in software defined or SAS or cloud. How do I bring it together? So we believe there's a consistency of platform and infrastructure that allows us to move to a consistency of operations. VxRail offers that today, because we uniquely can integrate with VMWare and V Cloud Foundation, to build where now we can take care of the automation, the lifecycle management of the hardware. VMWare together integrated now can take care of the lifecycle of the software stack, all the way up to the IAS layer or beyond, and now we have the ability to say you can look upwards, you can develop, you can build on that, and even more so, if you want to then stitch that together, and have that be the control plane, you can now build that out to other native public clouds, now you have the hybrid cloud. We can actually get there, we can actually organize around it, build it. I mean it's a breakthrough for our customers. And then add on that, some customers have come back to us and said, you have the expertise to do all this for us, can I just consume it? I don't actually need to control it. And in that case we can offer it as a service, and we previewed that as Project Dimension last year, and now the teams are really happy to bring it to fruition all the way to beta with customers today, and really give customers kind of that choice. >> So what's behind that? I mean you've got a team of people sort of monitoring everything, obviously a lot of automation. What's the customer conversation like? I mean it's the early days, but what do they want to know about, do they always just want to say hey you take care of it? Or do they want to peel the layers and say okay, I want to peek behind the curtain before I sign up for this. >> Yeah, so on the platform side, customers want to know how does the integration work. Really where do I have to spend time, energy? Can I really live at this IAS layer, can I live at the PAS layer with pivotal, can I live above that? How do my workflows get managed? And when you say, we're kind of in the environment and the methodologies you already use today with V Center and V Motion and PKS. Then I think you see a light bulb go off of okay, I can really lead the administration to the machines, and the automation. Then the customer who's interested in moving everything maybe to a consumption model, then they have the next question which is can I have consistency not only of infrastructure operation, but of consumption? And that's where as a service offering, really starts to highlight the fact that we can meet you on your journey wherever you are. Some customers aren't ready for that, some are just right there saying that's really the model I want to move to for digital transformation. >> Okay, you got roughly a 20 billion dollar business growing at almost 20 percent a year, so pretty good year last year. Give us the update on your business, why are you being so successful, and I got a follow up question on component, so the supply with. >> Okay sure. So we did have a pretty good year last year. We don't break out servers, but servers are networking as you said, but about 20 billion dollars growing at 28 percent. Why? Well I think we have one of the most capable portfolios of infrastructure. We're uniquely trying to make sure that we are operating within the Dell Technologies portfolio. And so most customers, Dave, have not come to us and said you know what I'd like to do, I'd like to have like 10 more of you guys come meet with me and talk to me about a portion of my business. They said why can't you come and provide all of my needs? But I don't want to compromise. I don't want to have one best of class, and then have to compromise across my other needs. So really building kind of number one all in one place, is that promise that you don't have to compromise. Really it's changed the dynamic with a lot of customers being able to say this is my essential IT infrastructure provider. They have what I need. So that's helped quite a bit. The nature of our business I think is that we are operating from the smallest customer, you need one, all the way up to customers who need a million servers, and we're able to operate in a consistent PowerEdge tenent across all of that space. Then the, I think, and you didn't mention it, but in hyper converged, we're seeing growth rates that kind of put the server business to shame, with we were 65 percent in Q4 in an industry that's growing 40 percent that's on fire. It's a new business model, it's still emerging, but customers, the demand for hyper converged continues to go forward, because that operating model, simplicity, elastic, scale out, automated, is extremely powerful. >> And component supply right now, component pricing, is a tail wind for you. For years it's been a head wind. Is that right, it's flipped? Or not so much >> Certainly, yeah certainly the last two years has been sort of an unprecedented rise in some of our commodities in terms of cost. We're seeing that be deflationary or stable at this point, so it's really changed a little bit of the dynamic of how customers were operating within their own budgets. So now I think we're more in what we're used to in the beginning 23 years as we go forward. >> So actually, last thing, you talked about you used to have kind of a hyper-scale business. Just give us the update. I saw a quote out there that Dell puts more gear out there in hyper-scale environments, than anyone. Can you just give us a little context as to what that means? >> Sure, you know as we go forward, I think we've seen others say that they don't operate in certain businesses, they don't want to be in tier one, and you won't hear that from us. I think where we can add value, and we have incredible assets in terms of engineering, modular data center capability, capability at the edge, real assets like software supply chain delivery, across the board. We want to be able to help customers build their infrastructures. And in the service provider community, I think we've already built up relationships, credibility, and technology, to help them compete. Our standard is if you do business with us, we want you to win in your segment. We want you to transform faster than your competition, and we think we can do that for people, and I think we continue to see quite a bit of success in the service provider's space. >> Well really appreciate the updates, and congratulations on all of the progress you've made Ashley. >> Thank you, great job thanks for having me guys. >> Alright, for Dave Vellante, I'm Stu Miniman, gettin' towards the end of day two, three days wall to wall coverage. Thank you as always for watching The Cube.

>> Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2019. Brought to you by Dell Technologies and its ecosystem partners. >> Hello everyone, welcome back to theCUBE's live coverage here in Las Vegas for Dell Technologies World 2019. I'm John Furrier, your host of theCUBE, with Dave Vellante, co-hostman Dave. Great keynote, day one of three days. Great event. We got two more days of coverage. Our next guest is Jeff Clarke, vice chairman of Dell Technologies, Master of Ceremonies on the stage with Michael Dell. Great to see you again, CUBE alumni, welcome back. >> Thanks for having me. >> So, you're pretty busy. I know you're super scheduled up, so thanks for spending the time to come on. >> My pleasure, looking forward to it. >> So, break down what's going on here, because a slew of announcements, some game-changing announcements. Some new partnerships with Microsoft, in the end-user area, pretty positive, once competing with VMware, now tied in. Dell Technologies under the coverage with a full portfolio of services, massive macroeconomic tailwind around people refreshing their infrastructure for the Cloud. You guys are in good position. >> Oh, I think we are. Thanks for having us. To me, the biggest takeaway from this morning's keynote is the level of integration and alignment across Dell Technologies and all of its assets. We built upon that and gave two very specific examples. Pat and I talked about, on the PC side, trying to address the needs of this new digital native workforce that's coming in to bear with no boundaries of how they want to work, where they want to work, and how to modernize the PC experience. And we introduced Dell Technologies Unified Workspace. And then the second announcement, which we're really excited about, is the alignment of our company around the Dell Technologies Cloud. And the fact that we announced a component of a platform, where VCF is integrated onto our VxRail products, and you can deploy that on-prem as a solution today. And then we talked about building on VMware's announcement late last year around Project Dimension, bringing Project Dimension into a reality, a data center as a service of the VMware Cloud on Dell EMC, Data Center as a service, backed by Dell Technologies. And then we expanded upon that with Azure Services on VMware. So, pretty busy morning for us. >> Yeah, Project Dimension, I want to ask you real quick about. I always said that that's a fantasy kind of project, because it was so radical, and early on, when you think about it, but it makes so much sense when you think, as a service, with software service, why wouldn't you want to have theCUBE as a service? Data Center? And everything is becoming a service, and that's now clear. But it's hard to do. That is an interesting product. I think that's certainly an edge product. You guys see that, clearly. But what's going to be the impact to customers? Because this is now kind of easier to manage when you think about deploying a data center. >> There's a couple things that I think are underway. One is, workloads are migrating back to on-prem. And those workloads come out of a public cloud, so the cloud operating model is something customers are familiar with. Now with our Data Center as a service product, we have a cloud-operating model that drives consistency and, ultimately, provides an operational hub from the edge to the private cloud reaching out to the public cloud. Then you can get that as a specific product, build out your own, or this managed service, as you just referred to, and we think that's a pretty compelling proposition to help customers, particularly in smaller deployments, whether it's on the edge, remote location, remote office. And it's a service fully backed by us, single price. And we think it has a huge advantage in the marketplace to help customers deal with fewer vendors or manufacturers to get a single solution from one, from the hardware to the software to the service and the support. >> So you talk about alignment across Dell Technologies. You were clear in the analysts' discussion today as to what your primary go-to-market is with regard to VMware on Dell. That was clear. And appreciate the concise, clarity answer. You also talked about barriers to integrating that you've removed. In some respects, you do a lot of things, and one of them is you're a fixer. What were some of those barriers, and what does that hold for the future in terms of momentum? >> I think the first barrier that I encountered when I began leading the ISG team, we fundamentally weren't aligned with VMware. We had a strategy, they had a strategy, and while we worked both for Dell Technologies, we saw the world differently. And Pat and I recognized that early on, and our working together, and we've began to wrestle with that. Quite honestly, Michael and I expected us to get that result, and we subsequently did. So now we have an alignment. We have the same strategy that we're deploying with the same common vision: how to make IT easier and simpler in this data era that we're in today. And then we built a technical framework of where we're going to collaborate. And quite honestly, we had to teach our teams how to collaborate, and what collaborate meant. It wasn't you met once a month and each went off in their corner, then came back and said, look what I did, look what I did, and maybe we had two different answers. We forced an operating cadence and mechanism where Pat and I get with the team on regularly scheduled meetings, essentially every other week, and drive technical collaboration across five key domains that we care about. That we think are most valuable to our customers. And we're leading by example and breaking down every barrier from go-to-market, to operational, to technical, who tests what, how do you define what the requirements are, what customers are retargeting, and align the teams along those vectors. >> One follow-up, if I may. I think we got tight on time, but I want to ask you about the client business. I want to get you on record on this. Very important part of your business, it's almost half of the business revenue. It's a lower margin business, but it's critical that you hold serve in the client business, because it absorbs a lot of corporate overhead. I wonder if you could talk about the importance of the client business to Dell Technologies and it enabling your ability to do all these other things that you want to do. >> Well, you talked about the financial components of why the PC business or client business is important to us. But let's not forget, customers want an end-to-end solution and one end of that solution is what's on the edge of the network, and the PC is still the primary productivity machine in business. I don't see that changing. So the ability to start from there, and then migrate across our stack to the core to the cloud, as you've heard us talk about that, is a difference-maker, a differentiator from us over every one of our competitors today, who may have this component, this component, or this component, we're in a unique position to bring that together. Then we can bring differentiated value by linking the seven assets of Dell Technologies together in a highly integrated way. We talked this morning about SecureWorks, Workspace ONE from VMware, RPCs, and then our total service offering around ProSupport and ProDeploy that stitches that together in a very differentiated way. That's what customers want, and we're able to do that. And that has components of the entire enterprise, per se. >> Jeff, I want to get your thoughts on the customer situation. Obviously, one of the keynote customers was Bank of America. I like how the CTO, how she said this. "It's not how we got here, it's how we go forward." This is really the digital transformation reality. The rules have changed a bit. Certainly, there's some tech that's coming to the table, that's going to be good for customers. But as you look at the trends, and it's pretty clear what we're seeing, you've got developers, and you've got operators. If you compartmentalize the different roles within the corporation, that seems to be the big ones within IT and operations. And then the workloads are the result of the developers that have to run on the operations. So, it seems that you guys have a clear view that you want to make that infrastructure be operationally consistent. That was one of the messages. >> Spot on. >> How are customers talking to you about this? Because, one anecdotal thing is Google, for instance, has their own cloud for their own search and everything else. They have SREs, Site Reliability Engineers, which kind of validates this notion that operations is highly critical with developers for those now multitude of workloads. Because Edge is going to spawn a huge amount of applications, we think. More workloads, small and big. So, existing workloads, new workloads are coming. How do you guys see the operation piece? 'Cause I think this is a real key point. >> Well, I think in simple terms, customers are asking us to help them drive out complexity in their operations, help simplify it so they can actually invest more in the types of technologies, the application, the development of things that differentiate their business. So, if you believe that to be the basis, which we do, then driving out complexity, having a consistent level of automation, a consistent operational model, a hub to be able to move workloads across any of those environments, we think is a real advantage, and it will lower their cost. They will have consistent infrastructure, a consistent software management stack, management or orchestration and automation, we think that's exactly what they're asking for. And the reality is, we just announced the ability to do it. >> And if you have the developers, you get revenue on top of it, so cost savings and revenue. Out of the customer conversations, could you stack rank the pattern of issues that come up that they're concerned about, that they're solving? Opportunities that are challenges today, opportunities tomorrow, what are some of the areas that are popping up to the top of these conversations? >> Cloud strategy. Security. How to do DevOps. Edge. And how to deal with all of this data. >> We've got a question from the crowd. Ask Jeff about sustainable innovation in Dell's work in transforming electronic waste into jewelry. I didn't know about that. And ocean plastic in the laptop packaging. That I did know about. I think the question came from somebody who works from you maybe. >> Maybe so. >> That's a good question. I didn't know, you're making jewelry? >> We've been on the forefront of what we call the circular economy, where you reuse materials that you introduced in the marketplace in new forms. Whether that's wheat straw, the byproduct of harvesting wheat and turning that into packaging. We announced at CES 15 months ago, recycling printed circuit boards, extracting the gold, and creating and providing that gold, in this case to a jeweler who made jewelry out of recycled printed circuit boards. Our commitment to use recycled plastics and to take all these plastic bottles and do something with the material, we have a high percentage of our products today that are built on recycled plastics. We have many examples, wonderful choices of PCs in front of you, has carbon fiber in it. The carbon fiber in the product is actually a waste out of the automotive industry that we reused to build out this product. So, we have a long tradition, and something that's very important to us, of building sustainable products, recycling materials, to be able to do that across our entire portfolio. >> Jeff, thanks for coming on theCUBE. I know you're tight on schedule. We appreciate the time. Final question, I'll give you the final word. What's the most important story here at Dell Technologies World this week in your opinion? >> Dell Technologies has a breadth of unique hardware, software, and services capability unlike anybody else across our seven strategically-aligned businesses that will help, ultimately, make customers' lives easier, simpler, and reduce complexity in their environments. >> And the numbers are showing its financial performance is looking good. Congratulations. >> Thanks, thanks for having me. >> Jeff Clarke, vice chairman of Dell Technologies, here inside theCUBE breaking it down, sharing his insight and commentary on the announcements and the event here at Dell Technologies. Stay with us for more live coverage. Day one of three days of two CUBE sets here on the ground floor of Dell Tech World. We'll be right back. (upbeat techno music)

>> Live, from Las Vegas, it's theCube! Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, And their ecosystem partners. >> Hey, welcome back everyone, live here, in Las Vegas, Amazon Web Services AWS re:Invent 2018. 52,000 people here. Two days. Second day of three days of wall to wall coverage here at theCUBE. I'm John, with Dave Vellante. Dave, six years, we've been doing theCUBE. We've been to all re:Invents except for the first year. We've been a customer, we've been following these guys. >> Plus the summits! >> Plus the summits. Great ecosystem. And VMware and VMworld, similar dynamic. I want to talk about that now, obviously the new announcement, on-premise, is huge. Want to dig in to it with our guest, Sanjay Poonen, who's the Chief Operating Officer of VMware. Sanjay, great to see you. Cube alumni, many times, thanks for coming back again. >> John and Dave, pleasure to be on your show. >> Thanks for coming on, great to see you. >> Congratulations on all this success, you've got a wonderful booth and presence here, and I think this is becoming like the Mecca of all IT events. >> You know, we have our new video cloud service on AWS, we're ingesting over 110 videos, we'll have 500 short video clips behind it. Tons of blog posts, tons of coverage. There's an insatiable appetite for Amazon Web Services content as Andy pointed out in my interview with him. And it's just the beginning. You guys at VMware really, I mean, talk about a seminal moment in the history of the computer industry, and VMware was, when you guys recognized the sea change of operators on IT and cloud developers coming together, you guys were very proactive two years ago. Raghu, yourself, and the team, Pat. We're going to, hey you know what? Let's just align. Culture's a fit with Amazon. Let's co-develop. Let's ride the wave together, and let's see where the chips fall. Which is basically, I'm oversimplifying, but that's kind of what's happened. So much has happened. I saw Raghu last night at the Greylock partner event. This is a historic moment. Good outcome so far, deep partnership, meaningful partnership. A lot of resonance in the marketplace, you guys are iterating and raising the bar. That's Amazon talk for success. How do you feel? >> Yeah, no, I think it's, absolutely, John. We, if you think about how this has evolved, you know five years ago when I joined VMware, I felt like cloud and containers, the two C's, were our big headwinds. We've turned those headwinds now into tailwinds, but it took some catharsis from us. We had vCloud Air, our own public cloud. We had to divest that. And I think the Amazon VMware coming together, when we announced it two and a half years ago, was like a Berlin Wall moment, where you had the US and the Soviet Union getting together. That was good for world peace. People were surprised, because these are two purported enemies now, and it really built trust. And step by step, launching VMware on AWS, announcing RDS on VMware, the beginning of on-premise, and then today, announcing Outposts, it's just an example of not just the validity of VMware as a hybrid cloud leader, but the strength of this partnership. We have a very special relationship with Andy, Pat, myself, Raghu, spent a lot of time together. Often, you can't tell, when our engineering teams meet, when an Amazon engineer and a VMware apart from each other. They're like finishing each other's sentences. That, we don't do, like, Mickey Mouse, Barney, you know press releases. It's real stuff. >> And the culture of, the engineering culture of VMware, which has been a core, cultural thing, the DNA of VMware is technical. Very community oriented. Amazon, technical, very operationally efficient, good community. This is good fit there. I got to get your perspective, though, on how that is going to evolve, specifically around on-premise. Because certainly Andy Jassy validates on-premises with the announcement that VMworld, which you guys covered, Pat Gelsinger uses words like dial tone, Kubernetes, you mentioned containers. Andy, when I asked him, "Andy, you know you told me "in theCUBE, five years ago, "that everything's going to the public cloud. "Change of tune? "You mind if I pin you down?" "No, John, you can pin me down all you want." He says good leaders are self-aware. He said "Our customers wanted this." And he's cool to it. And the partnership with VMware highlights that this is not going to happen overnight, he recognizes the duration, the role of on-premise. And then he also says that the data center's like a big Edge. So, if everything's cloud, what you guys basically announced with Outpost is, cloud, public cloud everywhere. So, just, there's no public, private, it's just cloud. This is a game changer, because-- >> Absolutely. >> Just, why wouldn't I want to buy this product? >> I mean, first off, congratulations on scoring that interview. Not many people have access to Andy that way, and you guys have built a very good relationship. I thought that interview you did with him was phenomenal. There was a special point in that, John, where you tried to get him to talk about Outposts, this was before he announced it, which is will Amazon go on-premise. So a couple of months ago, when Andy called us, and Matt Garman, to talk about this project under NDA, it was a continuation of those RDS type discussions where we basically said, if you want to do anything on-premise, you should do it with VMware, because you're going to have to go through this door called VMware. We are the de facto king of the on-premise private cloud world. Many of these customers are used to our tooling, vSphere, vMotion. They want anything to run on VMware. So from that became a sequence of discussions that really really evolved very quickly, and well, so we can announce this together. I mean, you know, Andy had three guests on stage, and only one partner, and that was VMware. And that's an indication of the strength of this partnership. Vice versa, of the 50,000 people here, probably all of them have VMware on-premise. So if Amazon's going to do more on premise, why not do it with the leader in that area, VMware. And we want to be in the software industry. The de facto standard for software-defined infrastructure. Right? And that's a special space that we can fill. >> Well, the amazing thing to me, is, here's VMware, no public cloud, Amazon wouldn't even say the word hybrid, or private cloud, doesn't use private cloud, but it wouldn't say hybrid before. You've now emerged as the tandem, de facto leader in hybrid cloud. Overnight. With an ecosystem that all wants to connect and partner with VMware and all wants to partner with AWS. Overnight. I mean, it feels that way anyway, 24 months. >> I think that's absolutely right. I mean, we were the first to start using the term hybrid, three or four years ago. As we did, then it took a while, because I think a lot of customers, and some of the public cloud vendors, felt it was going to be binary, all public cloud and no private cloud, but they began to realize you need both. But your point on the ecosystem, also surrounding, I just came back from meeting one of the top SIs in the world. They're betting big with us because they see this as the place for both of them, and they're also betting big with AWS. The System Integrators are all over this. The security vendors, all over this. Palo Alto Networks, Splunk, want to see. Often, many of these companies come to us and say, "You have cracked something special "in your relationship with Amazon. "How did you do that and how can we follow that model?" We're happy to share our playbook of how we think about ecosystems. So, we want to create a platform, just like Amazon's a platform, where everybody, SIs, tech vendors, software vendors, can all plug in to. >> And the other observation I make is, you know, previously the distance between infrastructure players and the guys who really are driving application value, the application developers, was quite a distance. And now it's closing, with infrastructure as code. And it's just so transformative for organizations. >> I think, and one of the things that's making that is microservices and containers. And as you know, since we last talked, we acquired Heptio. If you think about Heptio, they are the founders of Kubernetes, okay? They left Google, started their own company, Craig and Joe, and we're excited about that. That platform will augment PKS, which was our big bet in containers, and become something that could run on-premise, or in a public cloud environment like this. We acquired CloudHealth. CloudHealth is a multi-cloud management tool for costing resource management. That becomes something that could send, a lot of Amazon reps actually refer CloudHealth as the preferred way to get your insights. So we're beginning to see this now a lot more clearly than we did two years ago, thanks to this partnership. >> So, Sanjay, I know that Outposts, super exciting, it's been covered on Silicon Angle, there's a zillion stories on our site on this whole event. But, it's not going to be shipping for about a year. But you guys already have some working products now. What's the current track to that shipping because when that comes out, that'll be a game changer. Why would anyone want to buy hardware again? Michael Dell wins either way because he's got VMware. But others who sell hardware, this is a real, it could be a killer blow. But, I don't want to (laughs), you can comment on that if you want, but what's in-between that one year, you've got a product now, how do customers move along? >> Yeah, I think there's some very tangible things that, first off, VMware Cloud on AWS is, as you've described Dave, the best hybrid cloud option. You get the best of the on-premise world and the public cloud. You know, we announced hundreds of customers, we have a goal to get to thousands of customers, and then tens of thousands of customers. We're going to continue down that march. I want to have a significant number, over 500,000 customers. If Amazon has 40, 50 percent market share, based on some of the numbers that Andy shared today, a significant number of our customers have Amazon, we should get them onto VMC. VMware Cloud and AWS. Secondly, we do have, we announced Project Dimension, some Edge computing capabilities running on existing hardware players, so we are beginning this journey ourselves, in terms of cloud managed on-premise environment. Right? Project Dimension was announced before this, and that will run on Dell and Lenovo hardware, and that's well and good to go. They will have Edge IOT use cases. And then when Amazon comes and gets us ready, we would have learned a lot about this market. Which is really kind of this Edge computing market, cloud-managed. So we're not going to be, we're going to plan and do the other pieces. Much of the software components that VMware is building is not completely from scratch code. We're taking NSX. One of the most important components that VMware is adding to Outposts is NSX. We're not rewriting NSX, we're taking the NSX and applying this now, to a use case that's very much like that because we've adapted NSX now to be container-friendly, cloud-friendly. We've added NSX into the branch, VeloCloud. So those are the things that we're, you know, there's no rest for the weary anymore. >> And that gives you a consistent networking model, which is not trivial, as we've talked about. >> One of the things that I'm excited by, intrigued by, is, I know it's nuanced, but I see it as a key point, containers sometimes don't meet the security boundary issue. So, you guys can run a VM around a container, and run it under the covers. With Lambda. At super lightning speeds. It's not like a ten second instance to stand up. So that means there's more opportunities to create more abstractions around Kubernetes. And maintain security. There's so many benefits from this integrated kind of concept of consistency of operations for the software developer. >> John, you're absolutely right. Part of what we're trying to do is that word you talked about. Consistent infrastructure and operations. Consistent infrastructure and operations. And the container, if you've been seeing some of the ads in the San Francisco airport, we have some in London, and a few of the airports in New York, you'll see an ad that says "Containerware." It's playing on the word "ware", VMware. We want to be everyWARE, W-A-R-E. And if you think about the container being as pervasive as the vm in the future, I'm not going to say we're going to change the name of the company to be Containerware, but we want to be as pervasive as vm has been in VMware. So we have tens of millions of vms, in the twenty years we've had, maybe there'll be ten times as many containers. We want to become that de facto platform and containerware starts to take over. Right? What is that? Kubernetes-based. And we'll partner with the best. We've partnered with Google, we've partnered with Pivotal. Some of it would land on AWS, some of it will land on Azure. And you get a lot of the flexibility you have with that microservices platform. >> So, since you guys are on more of the software side, obviously Amazon's got software, but you guys actually are going to be much more broader, multiple clouds, as Amazon moves up the stack, I would imagine that as customers, I'm not going to buy in to only one cloud, there's other clouds out there, you guys should become a real strategic, traversal between clouds. So, we were debating, will customers have certain instances in, say, different clouds for specific, unique things, but yet run still horizontally, scalable on-premises, with VMware across multiple clouds. >> I think, you know John, it's going to be a lot like the hardware market was 20 years ago. It started to evolve into two or three major players. What's today Dell, HPE, Lenovo, at the time it was IBM, they divested to Lenovo, Cisco. In the storage place, two or three. I think the public cloud is not going to be three, five, ten. It's going to be two or three. Maybe four. And then maybe, in like China, Alibaba. So already, we have certain tools. Like CloudHealth's proposition is to manage costs and resources across multiple clouds. So we began to be already thinking about what is a multi-cloud world do? That said, in areas like this, which is a data center offer, we felt it was good for us to focus and get VMware Cloud and AWS to be the best hybrid cloud option. Give that a couple years, rather than trying to do everything and do it poorly, when you peanut butter your approach and try to do a lot of things with various different, so this is why we put a lot of special attention on VMware Cloud and AWS. We have an offering with IBM. We announced something with Alibaba. In due course VMware will need to have multiple cloud offerings. But I feel like this partnership and the specialness of this has really benefited both sides. >> Well, it's going to be very interesting, because IBM just made a 34 billion dollar validation of multi-cloud, so, and we talk about competition all the time. And it's evolving. >> We have a very good relationship with IBM. And listen, you have to be reasonably nuanced in your partnerships. So we're going to partner very heavily with IBM Global Services. We're going to partner very well with IBM Cloud. We're going to compete really hard with Red Hat! That's okay! Well, we'll compliment Linux. The bulk of their revenue's Linux. >> Of course, yeah. >> But make no mistake, we're going to compete hard with OpenShift. That's okay! That doesn't mean our IBM relationship is competitive. There's one piece of that, a very small part of the Red Hat revenue, OpenShift, that we overlap. The rest of it is complementary. We can be nuanced. It's sort of like walking and chewing gum. We can do both. And that's how we play. >> Before you wrap, now you know what we think of you, we think very highly of you, you're a superstar in our minds. However, you got to interview Sushmita, in India-- >> You know who Sushmita is? >> a true Bollywood superstar. Yes, an amazing actress, beautiful, talented. That must have been quite an experience. >> Well I got to tell ya, I was very intimidated. I opened-- >> I'll bet. >> Cause somehow I get assigned all these interviews to do. Malala, I'm usually on the opposite end. Your end. Malala, and Condoleezza Rice, and I told her I was really intimidated by her, and she said "Why?" I said, it's the first time that, I'm usually not tongue tied, but I did not know how to explain to my wife that I was going to be interviewing Ms. Universe. Okay, and she's like "What do you guys do at VMware? What the heck does Sushmita Sen have to do" But it was a good interview, I mean listen, for the India audience, we were celebrating our 20 year anniversary. She is an amazing woman who has achieved something that very few Indians have. And we wanted our Indian audience there to see that women can be successful. She's a big supporter of more women in business, fairness, equality, no prejudice, equal pay, all those things that we stand for. Which is part of our values. And if it weren't for the India audience she probably, I don't know if she would have worked at a Vmworld. We had Malala there, we had Condoleezza Rice at our last sales kickoff. We do these because we want to both teach our employees something, but also inspire them. And sometimes these speakers help with that cause. >> Sanjay, great to see you, thanks for coming on. I know you got to catch a flight. Big day today for you guys at VMware, congratulations. >> Thank you very much for having me. >> Thanks for all your support, great to see you. Great commentary, great insight. Sanjay Poonen, COO at VMware breaking down the announcement of Outposts, its relevance and impact on the market, and more importantly, the VMware AWS relationship. This is theCUBE bringing you all the action, day two of three days of wall-to-wall coverage. Two sets, hundreds of video assets coming, tons of posts on siliconangle.com, where all the coverage is. We'll be right back with more after this short break. (techno music)

>> From the SiliconANGLE media office in Boston Massachusetts, it's the CUBE. Now here's your host, Dave Vellante. >> Hi everybody, I'm Dave Vellante. Welcome to this special CUBE conversation. We're gonna be talking today about hyper conversion infrastructure. HCI really brought together compute, storage, and networking to simplify management and operations. But the networking piece has always been, you know, a little bit to the side, right? Because you bring your own network to HCI. And the integration has not always been there. So we're gonna talk today about simplifying cloud on VMWare and transforming the network. This week is VMWorld Europe. Chad Dunn is here. He's the vice president of product management for HCI at Dell EMC. Chad, thanks for coming on to talk about this. >> Hey Dave, always glad to be with you. >> So, HCI is hot, it's smoking. VxRail is a leader there. We're gonna talk about that. >> Yep. >> Based on some of the market numbers from IDC and others. So give us the update, what's new with VxRail? >> Well obviously for VxRail, the big new is, unless you've been under a rock, you know the market is growing like crazy. Now VxRail is now achieving a growth rate that's roughly twice the overall market. And so we've moved into this market leadership position. And now it's about how we start to differentiate the product even further, and pull further away from the pack. And that deeper integration with networking and some of the other VMWare components are keys for us to be able to achieve that. >> And that growth, those are IDC numbers, Gartner numbers. >> Those are IDC numbers if you look at the overall market growth rate. >> What do you attribute that growth from? You guys came out of nowhere to take the market leadership. Why? Where's that coming from? >> You know, it's a pretty easy question. When we look at who the market leader is in terms of the hypervisor, in terms of virtualization, it's clearly VMWare. And the value proposition to a customer is a very simple question. Are you a VMWare customer? Do you intend to continue to be a VMWare customer? Do you like the tools? Do you like the hypervisor? Do you like the ecosystem around it? And you know, nine and a half times out of ten, the answer is yes. And if it's time to go hyperconverged, we believe and I think most customers believe we have the best hyperconverged solution to be able to do that within the VMWare experience. >> So, Dell, obviously a huge portfolio. Since the merger, you guys have done a lot of work together. And now you're really focusing on network automation. What are you guys doing, specifically, and why is it important? >> Yeah. Well, the integration with Dell, I've become one of the biggest Dell fanboys there is at this point. Because, first of all, I started with a hyperconverged product that was not based on Dell. We became part of Dell. Now I have a world-class X86 portfolio to build on top of. But I also now have access to an amazing portfolio of open networking products. And so the next logical step, after integrating with Dell computers, is to integrate with Dell networking. And when we look at the challenges that people have in adopting and deploying hyperconverged infrastructure, a lot of times, it has to do with the network. So we said "what can we do between these two organizations, "to make it a lot easier for our customers" "to adopt hyperconverged." And that really means network automation. So that means that, in Dell OS10 enterprise-based switches, we've created an auto-detect and auto-configuration feature between VxRail and those switches. >> So let's break that down a little bit. So as I was saying at the top, hyperconverge really has been about bringing storage. And well actually in some cases, networking and compute together. And then sort of storage bringing in. Or storage and compute, and then the networking is "bring your own," right? Everything is "bring your own network." And then what, you put a top-of-rack switch in? >> Yep >> But so why is this simpler? What specifically are you guys automating? >> Well there's two things. One is organizational. So very often, in customers, we encounter the virtualization team, the server team, storage team, networking team, different organizations. Now, largely hyperconverge, and even before that, converge was sort of an excuse for many of those functions to come together. But networking is sort of the last one where those organizations are coming together with our customers. And that's really prompted by hyperconverge. But then at the technical level, how do you make that real for a customer? So at the risk of getting into the weeds, the way this works is if you take a Dell OS10 enterprise-based switch, and you have a single command to put it in VxRail mode, from then on the switches and VxRails will discover one another through an in-line protocol. VxRail manager will access the switch via API's. We'll configure all the ports. We'll configure all the VLANS. We'll configure the connection up to the customer's network. And then from there on out, we're able to detect new VxRails as they enter the network, automatically plumb those together with the existing cluster. So when we look at the steps that you would normally take to deploy hyperconverged just on the network side, it's about a 98% savings in terms of the number of steps that you have to go through to be able to stand that environment up. And then from there on out, we also wanna look at operational savings. So you will now be able to manage that switch also within vCenter. So we have a philosophy in VxRail that says every time a user has to leave the VMWare user experience, that's a bad thing and we want to minimize that. So as we implement the Dell networking portion of the solution, you'll be able to now manage that from vCenter just as you'll be able to manage VxRail from vCenter. >> Is this degree of networking automation unique in the marketplace? Are you guys ahead of the pack? Are you playing catch-up? >> We feel like we're ahead of the pack in this. I think that a lot of folks are certainly focusing on integration with software-defined networking. And in fact, we did that first. You know our integration with NSX. Both v, NSXv for infrastructures of service. And now increasingly NSX-T, especially when we're in a container, or cloud-native environments. So there's been a lot of focus there. But I think our focus on the configuration and management of the physical network, I think is unique. >> Talk more about the Dell, EMC, and VMWare relationship. Obviously, you guys are part of the same sort of company. Even though VMWare of course is a separate public company. But you guys work closer together. VMWare works with everybody. What's unique about what you guys are doing? Give us some double-click on that. >> Sure. If I think back previous to Dell, you know, we had our cousins at VMWare that we worked pretty closely with. And I think that our success is sort of born out the concept that we were able to collaborate more effectively than most other EMC and VMWare projects that we've done in the past. So, it's been very successful for both companies. Then along comes Dell, and Michael has a saying that says, "I'm happy but I'm not satisfied." So he looked at this. Jeff Clark looked at this. Pat Gelsinger looked at this, the collaboration that we have and said "We're happy. We're not satisfied. Do more of it." "Do it harder. Do it faster." And that's what we've done. And that top-down directive has really driven us to collaborate much more broadly and deeply with VMWare, and in fact Pivotal, than we have in the past. And I think that's shown a lot of benefits. Not just in the networking integration. But we're moving all of the graphical user interface out of VxRail manager into vCenter plug-ins. So our focus is really around robust API's that can be leveraged across different VMWare management properties as well as third party properties to give you the best possible VMWare user experience when you use VxRail. >> What does that mean for customers? Let's talk about the business impact. I mean you mentioned 98% time savings before. I mean, that's enormous. But let's talk a little bit about the customer impact. >> I think if you look at the customer impact that we're observing, the five-year TCO empirically is running about 600% in terms of ROI. So I think we're very successful in that. And the key to that success is not creating new panes of glass, or new management paradigms for a customer who is a VMWare customer. We want to be in lock-step with the way the VMWare develops. Not only the hypervisor, but certainly VSAN, and certainly the rest of the Vrealize assets as well as software-defined networking. To that end, one of the biggest changes that we made was something internally we call SimShip with VMWare. Now if you think about where we've come from, the lag time between when we would ship a new version of VMWare on VxRail versus when VMWare releases it was pretty variable, right? Could be three months, six months, nine months, it really depends on how the development schedules would align. And that was something that, quite frankly, to Michael and Pat and Jeff was not acceptable. If we want this to be the premier hyperconverged experience for a VMWare user, we need to be simultaneous with VMWare. And so now you're gonna see very regular tight integration between the release schedules of software on VxRail and the release of the underlying software from VMWare. So that's enabled us to shift a lot of that up-front development and engineering work left into VMWare so we can be much more quick to adopt new VMWare technology. >> So if I could, I'd like to stay on this business impact for a moment. You're talking about 600% ROI over a five-year period. I'm presuming that ROI comes predominately from the simplified infrastructure management and simplified labor costs. I'm not focused on heavy-lifting. I'm shifting to more strategic things, presumably. And there may also be some capex savings as well. But where is it coming from? >> I think it's primarily operational. I think, depending on what the competing solution might be, or the legacy solution might be, there may be some capex savings there. But it's really around operations. Now we have seen customers fundamentally shift from simple virtualization and consolidation of virtual machines onto hyperconverged like VxRail to implementing full infrastructures of service stacks right up through the Vrealize suite. But also platform and containers of service as well as we collaborate with Pivotal and VMWare. So it's that infrastructure as a service deployment methodology that I think leads to most of that capex saving, right? Three years ago, hyperconverged was all about VDI and sort of point applications, and islands of applications. Now it's predominately about infrastructures of service, containers of service, platforms of service. And that's where you really start to see those operational efficiencies shine through. >> Well, you know, in our experience the VDI, while nice, was largely a benefit for IT. Didn't really have a huge impact on the business. But when you start to talk about things like Pivotal, and the impact of moving from say Waterfall to an Agile environment. Now you're talking about business impact in terms of time to deployment and accelerating the time to value, which may or may not be in that 600%, I'm not sure. But those are oftentimes considered soft dollars. But to the business, it's not. It's competitive. >> Those are real dollars. Those are real resources working on those things. And just as we saw a shift in terms of constructing versus consuming IT resources, we see that up the stack. As VxRail automates things like software and firmware updates, our customers don't have to do that anymore. Now we look to see how can we can we drive those same kinds of benefits further up into the stack in terms of deployment, management of virtual machines, management of cloud-native workloads. >> So coming off of VMWorld U.S. a couple months ago, a lot of talk about VMWare Cloud Foundation, a lot of buzz about multi-cloud. That's kind of the hot topic right now. What's going on with VCF? We're hearing a lot of buzz leading up to VMWorld Europe. What's going on in that space? >> There's a lot going on between us and VMWare on the multi-cloud strategy. One thing that we heard in the last VMWorld was the integration between us and Cloud Assembly. This is a really important and strategic solution for us. Because what we found, especially with smaller customers who wanted to get those efficiencies of infrastructures of service, there is a fairly high upfront capital cost. Because you simply needed all the hardware to run the cloud management platform. And then you needed the tenant nodes to actually run the virtual machines. And very often, that was a high entry point, a high entry cost for those customers. What VMWare has done with Cloud Assembly is basically turn that cloud management platform into software as a service, so it lives in the cloud. And now with an agent that VxRail automatically installs, you can now point that CMP at your tenant nodes and start getting that infrastructure of service benefit. So that was one that we talked about at the last VMWorld. We also talked about our partnership with VMWare around Project Dimension, which basically takes the VMWare-managed cloud providers, The VMC providers, and extends that management paradigm, and that update paradigm to on-premises. So you have effectively got a cloud service that could run at a cloud provider but could simultaneously run on your premises. So are the two really good examples of how we're collaborating more broadly and deeply with VMWare to lower the overall operational cost, and in some cases, even the capital cost of implimenting infrastructure as a service. With respect to cloud foundation, in VxRack SDDC, which is the other product that I look after, we've had that partnership underway for over two years now and that's been very successful for us. And it tends to be the larger customers who want to buy everything as a fully-integrated system, a fully turn-key racked, stacked, cabled, and ready to deploy. But with regard to what you're teasing, I think where you're going is "well what's gonna be next?" and "what's unique about what we're doing" "with Cloud Foundation?" And there are a lot of dimensions to that. And I think the first one is what we've done around the VMWare validated design and the certified partner architecture. So if a customer wants to achieve a VMWare software-defined data center, the VMWare-validated design for VxRail gives them the exact prescription of how to get there. It can be delivered by us, can be delivered by VMWare, could be delivered by our channel partners who are certified to do so. And that gives you this nice consistent deployment architecture that we can continue to life-cycle manage as a customer moves forward. But it preserves all the VxRail value add in terms of our cluster management, our life-cycle management capability, all of that automation. Now as we move forward, we'll add more and more automation into the VVD deployment toolkit to make that even easier for customers. And so then the next logical question is VxRack and Cloud Foundation versus VxRail. We effectively have two hyperconverged solutions. That doesn't make a lot of sense. So what you'll start to see us do, and I think what some people have already started to see us do is to start to bring those solutions together, bring those products together. So in fact, even now, if you have a VxRack SDDC, if you open up that cabinet, well guess what. Those are VxRails inside there. And those software stacks will ultimately converge as well. So you can go from a build-to-consume continuum even within hyperconverged where you've got VxRails with VVD's. But the VVD basically defines deployment architecture that is compatible with Cloud Foundation. And just as we've preserved a lot of those value-add features for VxRail in the VVD, we'll be doing the same thing with Cloud Foundation. So, you know, stay tuned for that. But, as I mentioned a little bit earlier on, when we look at the management paradigm for VxRail, my directive to the product management team and the engineering team is "your first three priorities" "are API, API, and then user interface," right? So that's where we're placing a lot of that effort. And because, in may cases when we approach our collaboration with VMWare, we want to look for opportunities to be first best and only. I think as you see us bring VxRail and VCF together, that's gonna be one of those "best and only" sorts of solutions. But you have to stay tuned for further details on that. >> But that makes a lot of sense, simplifying that portfolio. But the big takeaway to me, Chad, and we've talked about this in the past, is what we call the "true private cloud" or even "true hybrid cloud" is bringing the cloud experience to your data no matter where it lives. Whether it's on PRIM in your private cloud. The VMWare AWS deal, obviously simplifies the sort of public cloud piece. Or you're in a service provider, and you've now got a homogenous experience that really is much more cloud-like than we've seen over the years. >> Well, you look at the old saying about cloud-native applications, "write it once," "and I don't care where it runs." Well as the multi-cloud strategy evolves, whether that's running in a VMC cloud provider, whether that's running on premise, our users shouldn't have to care. There may be things that they want to keep on premise for perfectly good reasons. There's may be things that they want to have in the cloud. Great example, we just got our certification for SAP HANA on VxRail. Now that's a workload that, just because of the latency requirements, and the kind of data they're processing, very likely that's gonna stay on premise for quite a while. So there are good reasons to have that construct where we don't necessarily care where the workload is. But we wanna provide a consistent user experience that really lowers that opex for customers. >> Great. How do people learn more about this? >> Come see us at VMWorld in Barcelona. We've got presence all over the show. And then hit us up on the cloud marketplace on dellemc.com, find out more about VxRail and VxRack SDDC as our primary cloud platforms. >> Alright Chad, you've been busy. Congratulations on the announcement. And thanks for watching everybody, Dave Vellante. We'll see you next time. (electronic music)

>> Live, from Las Vegas, it's theCUBE. Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back. This is theCUBE's coverage of VMworld 2018 here in Las Vegas. I'm Stu Miniman joined by my two guest hosts that have spent a bunch of time with us this week. John Mark Troyer and Justin Warren. Thank you, gentlemen for joining us for the wrap. >> Thanks for having us. >> Thanks for having us. >> We get to have a lot of fun. We get to hang out with community people, geek out on a lot of stuff. This is also a really good checkpoint for a lot of the IT industry. VMware, 800-pound gorilla in the data center. I put out one tweet that was like the 800-pound gorilla in the data center or the 800-pound gorilla in the cloud. The partnerships matured quite a bit, in my mind, for the last year. That was one of the big things that I've seen. RDS on-premises is definitely the thing that sticks out to me the most. John, let's start with you as to, checkpoint from last year. What impressed you? What are they making progress with? Let's start there. >> I think the RDS announcement was maybe even undersold here. We'll see in the coming months what actually happens and if everything works the way it's supposed to work. I think a lot of people who are putting chips down on various outcomes and scenarios in cloud world did not cover that one space in the roulette wheel. Cause that's actually pretty interesting. Stu, I kind of see this as a year of promises kept. Some promises that were made in years past are starting to come out. This multi-cloud world seems more real. VMware's relationships with various clouds and the hints that were thrown are there's more to come. It seems real. The cloud starting to come back on-prem. Both EBS on-prem and now Project Dimension with VMware being a service provider. I've talked to a number of vendors and you and I, Stu. Some are here on theCUBE. People starting to do more managed services from the cloud back into your data center. I see the multi-cloud world working and then this kind of blurring of on-prem and cloud even more. That's kind of what I'm seeing. >> Yeah, I've got to agree. It's that idea that cloud is a state of mind. It's not a location. >> We say it's an operating model at it's core, right? >> Right, yeah, and I think we're seeing a lot of those ideas come to fruition now that you can operate like a cloud on-site. It's how you run things, it's not where exactly you put it. With the multi-cloud world, like you said, we can have, some of it can be on-site, some of it can be in one cloud, another cloud, lots of different clouds. Some of it will be at the edge. We're seeing a lot of growth in edge computing, which is essentially just another way of doing on-site. Being able to use the same tools, and that, for me, is the idea around the RDS announcement. It's the same thing that you're used to in public cloud. Now I can do that on-site. We're seeing a real cross-pollination. You can take VMware and run that in cloud. You can take things from the cloud and now run it back on site. It's pretty exciting. >> This is awesome. We have an easy button. Customers just push a button. Any data, anywhere, moves all over the place. Laws of physics, throw them out. Come on, guys. I need some critical analysis here. The trope that I would have, always, when I became an analyst an eight years ago was like well, if it wasn't for management and security we would have this all sorted out. The multi-cloud world is made progress, but when I still look at it. RDS, super exciting. The thing that's most exciting about it? That's on-premises, it's doesn't have connection to Amazon, but I'm doing cool things with the exact same kind of bits there so I can do it here or there. Doesn't mean, necessarily here and there, or spread between there, because petabytes of data don't just float across the ether. We're still using things like the AWS Snowballs when we have to move a lot of data. Yes, it's matured, but when I look at the management of multi-cloud and how simple, there was a great comment from a company that's been around for a couple of decades on theCUBE and he said look, the new companies all say we're going to make this super easy. It's like well, because you don't have the trusted brand to set beside, simple would be nice but cloud isn't simple. Multi-cloud sure isn't simple. >> There was, probably, a surfeit of single panes of glass here at the show. Any app, any cloud, any whatever. Single pane of glass. We'll blueprint it, we'll manage it, we'll do it. That does seem like that probably isn't that real world. >> Multiple single panes of glass. >> Please, Justin, give me a touchpoint. When you talk to an administrator, how do they spell single pane of glass? >> Oh yes, P-A-I-N, yes, a single glass of pain. That's generally what it is. I think that the manageability and the operational side of things, that is where there's a lot more development required. Cloud is, yes it's a state of mind. It's a very different way of operating and a lot of the tools, particularly in the VMware community, a lot of what people are used to here is very much point and click. It's not really as automated as it would be in, say, developer land. I spend a lot of time with developers and a lot of what they're used to is all programmatic, it's driven from the API. We're seeing movement with things like PowerShell and VMware administrators are getting more comfortable with the idea of scripting and so on. But they're not programmers. They still need GUI tools. They still need things that are able to do point and click. Some things are better in that environment. I think we still have a long way to go with things around automation. The other thing that still has a long way to go, I think, is security. Security particularly around the networking of how you inter-connect with all of these things and do so securely at scale. There is a lot of invasion and work that's required to actually make that happen. >> Absolutely. John, do you have some comment there? >> I was going to say I think you're right. Especially on all those points. The community booth back here behind us this year had a VMware code section, which was jam-packed the whole time. For the first time. VMware's been trying to speak to developers for 10 years and not quite connecting. Now, these weren't developers back there, these were admins, and they're not going to ever be programmers, but they're going to start to learn more programmatic paradigms, automation, things like that. It was super popular this year. >> Luckily, we don't actually need programmers anymore, John, cause it's coding, which means you're really just coping, pasting, and modifying things and everything. Heck, I've even interviewed marketing people that are like oh, server-less, I can build with that stuff. Super easy. I don't think we need everybody to learn to even code, as it were. We bridged that gap. It's matured, it's become easier. They pulled over some of the, it was the EMC code team. It's half that team over there. They had some good gamification. >> Stu, I am an optimist and I think the glass is half full or 40% full at least. We've done some CUBE stuff, theCUBE's been all over the world here this spring, all through 2018. I've done a couple shows with you. The difference that I saw this year was that the use cases were real and the time to value was real. People are implementing cloud projects, multi-cloud projects, and they're getting to a good milestone within weeks or months. Admittedly, these are big, multi-national companies, so it's really at the top level where they have the army of people to do it, but sometimes these projects were very small and they were real. They weren't just marketing hokum up on stage. Of course, they're not the full enterprise in a couple of weeks, but that's the difference this year, I see, Stu. I'm 40% full. >> Absolutely, I'd say look. Energy level was up. Two years ago it kind of hit a nadir. It was doom and gloom. We were all over at the eye candy bar saluting the great run that VMware had and wondering who the next CEO was been. Now, energy level's back up. Investment in the ecosystem, oh my gosh. I don't think I've seen this many parties ever at a VMworld. We got to talk about something other than cloud so give me your non-cloud takeaways from the show. Areas that people should learn more about, things you saw in the ecosystem or from VMware or the community. >> I think that's one of the things I've noticed here at the show. Wandering around the show floor, unlike some of the other shows where it's we will have a storage show or we'll have a backup show. There's a lot more balance this year. There seems to be a good mix of some of everything. I think that it shows that in order to run a successful IT shop, you actually need to have a balance of, you need some backup, you need some data recovery, you need to have some software, you need some monitoring, you need to have security options. Go and have a look at all of the different vendors that are at a show like this to be able to make sure you have a portfolio approach to how you run things. >> Totally. I remember there were a couple of years, four or five years ago, it was like oh, it's VM storage world. >> Yeah. >> OK, yeah. John? >> There is a lot of storage here, but the storage is all connected to the cloud now. I think if you look at some of the big booths and some of the start-ups who have gotten funding recently. Large rounds. Cohesity, Datrium, Rubrik, folks like that, they're delivering on promises made in earlier years. Not particularly like oh wow, I never thought of, but this was the vision that we laid out and now we're delivering it this year. Big rounds of funding, big customer movement, connection to the cloud and solid, interesting DR as a service and data, as opposed to storage, ideas. I thought that was one of the more interesting aisles this year over there in the booths. >> To riff on what you said about developers and the bridge to the code idea, we see Puppet is here at the show, HashiCorp is here for the first time. >> Docker's there, of course. >> Docker's here. >> C & CF had a booth. >> Yep, C & CF had a booth. These are people that you wouldn't have expected to see at a VMware show in years past. >> One thing that struck me is companies with a mission for good. Pat Gelsinger kind of sets the bar. Talked about it in his keynote. Do better, do good, sets that example. He climbed Mt. Kilimanjaro for charity earlier this year. They had Malala up on stage with Sanjay Poonen. I did a couple of interviews here which were inspiring. Mission-driven companies and great to see the infrastructure in software companies being like hey, we're enabling and helping it. That was one to me. Takeaways from the community? Other things as we get to our wrap? >> I do wonder about that point. Just to add a little, slightly critical note on that. I think that there has been a bit of a tech lash, a bit of a backlash against tech companies. I wonder whether, I would like to see more from tech companies to show that this is real. That that social conscience is a real thing and it isn't just a bit of marketing that they've spray painted on to the front of the company. The fact that we had Malala here giving a keynote indicates that there is a commitment to it. I would want to see that carry through for the next couple of years, at least, to show that that sort of thing is real. And certainly, from the rest of the ecosystem, I expect that we're going to see a lot more. >> Diversity in the community, absolutely. I do realize we have three white guys of a certain age sitting here. We try to add diversity. I had my first European host on the program. Lisa's been on a lot this week. We're building out our bench, we're looking to add diversity. John, yeah, the community. >> Community, again, yeah, community was good this year. A lot of old faces have stayed around, which is really interesting but also people have left and come back. You saw people who have gone into the AWS and Microsoft ecosystems coming back in here. Again, some of those old faces. Also, new faces. Global diversity from the southern hemisphere and from other countries that you wouldn't expect are here today. That was super interesting. I do see a lot of energy, a lot of excitement about their careers going forward. I do see that tech needs to be, there was some symbolic do-good things here. But I mean, Justin is a little bit involved in your own home country about how the government has the power with technology to do good or bad. I think that may be an emerging thing that we see here now as you get a layer down of not only charity work but the impacts of technology. I bet we'll end up talking about that next year, Stu. >> Guys, we could start talking for a lot longer. The good news is I know how to get in touch with you. For our audience, by the way, you can hit us all up on Twitter, through various social channels. Jtroyer, jpwarren, I'm of course @stu. That's just S-T-U. Blue Cow is on Instagram. Follow the adventures of Blue Cow, showing where Justin's going all over the place. Thanks so much for joining us. Great coverage here. This community's where I get a lot of my guest hosts and still, it's like homecoming coming to this place. Thank you for watching theCUBE. (electronic tones)

>> Live from Las Vegas, it's theCUBE! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back to VMworld day three, continuing coverage for theCUBE, I'm Lisa Martin with Dave Vellante sporting this fantastic salmon tie, and what you can't see is the matching salmon pants. Dave- >> There ya go. I still have my voice. (laughs) >> The outfit game is on point, Dave. >> Thank you. >> So we've been here, this is our third day, this is a huge event, 25,000 or so people here, lots of great announcements. We're excited to welcome to theCUBE for the first time Mimi Spier the Vice President of the Internet of Things Business at Vmware, Mimi, it's great to have you! >> Thank you! I'm so happy to be here. >> Thanks for comin' on. >> Yeah, it's great. >> So, three action packed days, lot's of announcements, lots of momentum. You lead a team at VMware that launched the VMware IoT business about a year and a half ago, including, launching the product, the GTM strategy, the partner in marketing strategy. In the last year and a half, talk to us about the evolution of VMware IoT, the business challenges that you're helping customers to solve. >> Absolutely, so, this has been a journey for almost a couple years now, and, VMware saw a need to really start to look at what we'll call the edge or IoT use cases. Our customers started coming to us saying "Wait a minute, this is coming, I know my business units are starting to invest in IoT, I have no control over it, I have no exposure to it, what should I do?" And, we are really committed to being an infrastructure company, we knew that when started this journey, and we said "We really want to focus on infrastructure, but we want to help our customers go to the edge, really start to embrace this new opportunity in the industry, to be able to take advantage of this data." We call it, the data is the gold, how do you actually be able to take advantage of it? So, we're really excited, we just started the journey and now we've really this VMworld is where the momentum is starting to take off. >> How do you look at that opportunity? Because it's complicated, especially for a bunch of IT people, right? And now you're entering this world of operations technology. But how do you sort of look at the landscape of the market? >> I'm really glad you asked that, 'cause that's one of my favorite topics, so. I want our customers to think about, first of all, what are the mission critical objectives of their business? They shouldn't do IoT just to do IoT, they need to do what's right for their business; but I also think it's important that they look beyond that. So, if you look at some of the macro trends happening in the world today, there will need to be 70% more food that's created, and there's only 5% more land that it can be built on. There's going to be 300 million connected cars out on the roads There was a statistic that there will be two thirds of energy is consumed by cities, yet we still have very old ways of doing it, but it's in this very consolidated area; why would we not take advantage of that? So I think industries, whether you're in energy or you're in smart cities or you're in automotive, you have to really think about where is your industry going? And even IT people need to think about this, I think, and I'll explain why in a minute but, how can I actually create an industry and a company that can sustain in this future world, and also contribute to the future of what our world's going to be like. So I think, and the technology, and the way we set this up, and the architecture, is really the foundation to do that. So, that's where VMware comes in. >> Okay. And talk a little bit more about VMware's specific strategy as it relates to IoT. I mean I was at the big Dell announcement last fall. Okay, so you've got Dell sort of with existing relationships actually with a lot of the industrial giants. But now enter VMware, what's your strategy? >> So, first I want to say that Dell and VMware have come together into one big business unit to solve IoT and edge. And the beauty of that is we believe that our customers can really have a more simplistic way of achieving this infrastructure foundation, if we can offer these end-to-end solutions together; so I'll talk about how the Dell piece fits into the VMware strategy. But what VMware's trying to do is drastically simplify the complexity of the infrastructure and the foundation you'll need for IoT. So we want to extend what we're doing in the cloud and the multi-cloud, because we fundamentally believe most of our customers are actually in multiple clouds, private, public, multiple public, and actually be able to extend that down to whatever edge they need as well. Because of the amount of data that will be generated at the edge, there's going to be, I don't know, analysts say 50 to 75% of data will be generated at the edges of our business by 2020. And think about it, all of our applications today are in the cloud, so there must be edge computing that is local to be able to process that data. And there also needs to be, there's this heterogeneous set of devices that will need to be managed, monitored, secure, and collect that data; so this requires, it's complex, so we want to drastically simplify that and that's the overarching part of our strategy. But we also want to allow our customers to do it in a way that's secure, that's scalable, and that's manageable over time, so. >> So does that mean putting some, first of all the Dell partnership is interesting, and Alan Cohen one of our guest analysts this week said "Partnerships used to be like tennis, one-on-one, and now partnerships are like soccer." There's just so many parts of the ecosystem so that's sort of one observation, but. Are you sort of bringing VMware to the edge? Is that? >> We are, so we're bringing VMware to the edge, we announced a new portfolio of solutions called VMware Edge it will take advantage of the ability to do the compute edge which is the processing at the edge, and really extending our hyper-converge technology as a service, like we're doing for VMC on AWS, to the edge; and it includes our device edge, and there's a lot of things that is happening on the device edge, which is like gateways and things, that we want to help provide a more software-defined approach, as well as ensure that those can be managed, monitored, secure, across all the diverse set of devices. Now, you can't do that alone. The ecosystem you mentioned, I've never seen any in my history of my career the amount of collaboration that's going on across the ecosystem, because IoT is so hard; so, you really do need to collaborate. And we are collaborating with the IoT platform providers, the gateway and the thing providers, the hardware providers, the system integrators; it requires that to be successful. But what we want to do with Dell is do it in a way that we offer these end-to-end solutions so that it's just more simple, you can go to one place to consume it, to ensure that it gets deployed, and to actually support that solution, but offering it from a multitude of our partners, typically so. >> So let's dig into to simplicity because we hear that, Mimi, all the time, as you do too. Customers want choice, they want simplicity, right Dave? They want flexibility. >> They want it all! >> They want it all! We all want it all. But how is the VMware edge computing strategy, the technology level, actually facilitating simplicity, in what is inherently a complex world of multiple devices, multiple clouds, et cetera? Talk to us about the technology and the actual enablers of that simple approach they need. >> I'm so glad you asked me that! So, we've been saying very consistently, that we want to offer consistent infrastructure, consistent operations, but we want to give you the choice of your application platform or development platform. We're going to do the exact same thing at the edge. So everything that VMware customers experience in their private cloud, their SDDC solution, private cloud, public cloud, we are now going to offer as a service at the edge same infrastructure, same operational model as the HyperCloud model, but at the edge; with the choice of the application development tools that they would like, because, they might want Greengrass from Amazon, they might want the Azure, they might IoT Watson, whatever they want at the edge we want to be able to support that on our infrastructure, but still maintaining that simplicity of a consistent infrastructure no matter where you choose to run your applications. We want to just eliminate the even thought process, run your applications anywhere, on a consistent infrastructure, with the same management, the same operations, and move 'em around as much as you like. >> So is there an abstraction layer almost that this can enable so that that management of all of these different applications and development platforms can be really done seamlessly? >> Yeah, so Project Dimension we announced a tech preview, and, well we'll be launching it later this year, and it will have a management layer that allows you to move your infrastructure and be able to actually, actually it's a VMware managed solution, so we will do it for you, it's even more simple; but be able to choose where you want to run that appliance as a service or infrastructure, whether it be the public cloud, the private cloud or the data center, and the edge. So that is the new what you call extraction, it's almost a new dimension, no pun intended. >> Hence the name. >> Hence the name, of, across all of your different clouds, or edge. >> So the notes I had on dimension, a hybrid cloud control plane, and the end-to-end VMware stack, on-prem cloud at the edge. And I think I heard Lenovo, VMware, and Dell are the initial sort of platform providers. >> That's right, Lenovo, Dell is the hardware. >> And that, what's the consumption model, is that an as a service consumption model? >> So we'll start with as a service, and what that means is VMware will actually manage your hardware, your infrastructure, and your software, we will do it for you. Obviously with the collaboration of when to do it and if everything, because this could be at the edge running mission critical applications. We want to make sure the OT, it's really an opportunity for OT and IT to collaborate and ensure that it's meeting the OT needs as well. >> So it's bringing a cloud-like consumption model to the edge, which of course is huge for VMware, I think probably 10% of your business today is SaaS-based, and the trend is clear; and the trend is your friend as they say, but, it's not easy to necessarily get there. So that's exciting I think that you're delivering as a service. >> I think we got really lucky. We ended up with this hybrid cloud strategy, it was the right thing to do, it's absolutely where the market's gone, and we're now almost at a multi-cloud strategy. And that puts us at the perfect position because we have set up our customers to be flexible and be able to choose whatever cloud or private they want in a cloud, we are very easily able to extend that to the edge, so it puts us in a very good position. >> Talking about the ecosystem again, I mean IoT it's every industry, every sector, every size of company, and I want you to discuss an ISV piece of this it's a very complex situation. >> I would love to talk with ISVs. >> But there's so many ISVs it makes your eyes bleed when you look at the list of ISVs, hard to figure out, okay who's real, who's not, and who to partner with; how are you guys sorting all that out? >> Okay. So, we are the infrastructure, what is beautiful about that is we are not competing with ISVs at all, so they all want to work with us. And the ISVs in the IoT world consist of not only specific application providers, but also IoT platform providers. So it's the SAPs of the world, it's Microsoft, it's also the Bosch, the GE, everybody that wants to do something with that data and build applications it. Most of those are doing industry-specific things, so what we're going to do is take Project Dimension and we're going to offer appliances as a service for industry-specific use cases, and sometimes they're horizontal like building management, but we're going to pick the best ones that we think have the right solution that can scale to the level our customers need in a secure way, and doing the most rich experience with our data. In fact we have 15 different partners in our zone right now really showing what they can do across six different industries, and that's what we're going to do with them. We're also, with Pulse, so I need to talk a little bit about Pulse because it's my baby, we announced Pulse IoT Center 2.0. And what that is, is it's the ability to manage, monitor, and secure things, or IoT gateways. So, one example of that is surveillance, we are partnering with camera companies that also offer analytic applications for visualization and surveillance, and we offering an end-to-end solution. In fact we announced the Dell Technologies surveillance solution partnering with companies like Access Communications owned by Cannon, Pulse runs on the camera to ensure that that camera is working properly, hasn't been hacked into, can get patched, can get isolated, God forbid something happens; and we're doing the same thing across many of the device and thing providers as well, which really falls into that. >> Let's talk about- Sorry Mimi, let's talk about an actual customer. Where do they start in this conversation? Because as you were saying in the beginning, the world is going IoT, there's this proliferation of devices, companies are moving in this direction because they have no choice. We were talking with a school district yesterday and the proliferation of BYOD, all of the things. So where does the conversation start with a customer about VMware edge? Does it start with the business level leadership who need to be able to get a handle on this, and identify new revenue streams, new business models? Does it start with the technology folks who have to have the infrastructure to support it? What is that sort of, I'm a customer, maybe a hospital or what not, where do I start? >> Great question. So, it starts, it depends is the answer, it can start either way, even if it starts on the infrastructure side. What we always tell IT is that you really need to have a reason to do this. You need to work with your business, you need to prioritize, you need to understand the mission critical objectives of your business, the outcome you're trying to achieve; and then let's work together on a use case, and we can help solve it with your business. So, whether we go through IT and we really educate them on the importance of this digital foundation at the edge, and then we work with one of their businesses, maybe in security and surveillance, or maybe it's with a bank, the ATM group; actually there is a group that runs the ATMs and we're working with that group. It might be the bank of the future retail bank, and they're all different organizations with many different use cases, we'll work with all of them. The nice thing about starting with IT is IT understands the challenge that they're faced with, and they really want to have the impact that they've had on the IT organization now on the OT, OT's very siloed. So, anyway, it starts there, but, with our partners, and the beauty about working with partners like ISVs, it will start on the OT side, and it will start with a use case; and then they'll go to the IT side and say "Hey, what about VMware to solve this?" And the IT will say are you serious? That's a dream. So, it absolutely is both, but it has to have a business outcome. >> Mimi, how about the data model? I mean, we know from talking to IT people they understand data, they've lived data their whole lives. A lot of the operations side of the business is analog today, and it's becoming digital. What's the conversation like around data? >> So, okay, so my whole background is data, I started business intelligence and then analytics, and then big data, now IoT. The purpose of the data, so first of all it depends on the use case, so the one thing we like to educate our anyone we're talking to is that you are going to need deep learning, and you're going to need real-time analytics. And each use case will be unique, and depending on the use case, you will need a slightly different architecture. So we'll help support this foundation based on the data, it's always about the data, or actually even more importantly the insights you're trying to get from the data. Once you know your use case, then you can determine where am I getting this data? Although sometimes you already know. And what's the right analytic process? Am I doing machine learning, am I doing AI, am I doing just predictive analytics, do I want to do something quickly at the edge to determine something in real-time and then send it back to make that process smarter, that's actually what I think will ultimately happen, it will be a decision making loop that goes from the edge to the cloud and back. But that's the data conversation we have, and I could talk all day, just in that topic. (laughs) >> And I mean I know we're tight on time but, how prominent is the discussion around data ownership? I mean, does the factory own the data? Does the device manufacturer own the data? I mean yes and yes? I don't know. >> I mean, there is controversy there, but typically, I know the device manufacturers want to own the data, and often times they have access to that data. Every industry's slightly different, but at the end of the day, the customer should own the data, I mean they should at least have access to that data. And we will always say in our situation the customer, the data is yours. And we will work with the both of those organizations 'cause those will be our constituents to a use case, and we will do what's right for that use case, and hopefully everybody wins. It really does depend. If it's car manufacturer, they have to own the data, because they have to make sure that car's safe and secure, but there might need to be level of access that the consumers get as well, so. >> Mimi, thanks so much for stopping by. I can tell by your energy and your genuine passion for this, we're going to hear a lot more, Dave, about what VMware edge is doing and helping customers embrace the superpowers that Pat Gelsinger was talking about on Monday. Great to have you on the show, Mimi. >> Thank you for having me, have a great day. >> Thank you, for Dave Vellante, I'm Lisa Martin, you're watch theCUBE, continuing coverage of VMworld 2018, this is our third day, stick around, we'll be right back with our next guest. (bubbly music)

(soft music) - [Narrator] Live CUBE coverage at VMworld 2018 continues in a moment. Live from Las Vegas, it's theCUBE! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. - Hello everyone, and welcome to back to theCUBE, live coverage here in Las Vegas with VMworld 2018. This is our three days of exclusive wall-to-wall coverage, two sets, it's our ninth year covering VMworld, when Dave and I started theCUBE nine years ago, Paul Maritz was the CEO, he actually got referenced on stage by Pat Gelsinger. I'm John Furrier with Dave Vellante, our next guest Ray O'Farrel, CTO, Chief Technology Officer at VMware, keynote today on stage with Pat; great to see you again, thanks for coming on. - Really good to see you guys again. - So, reaction from the keynote was very positive. Probably, from a content standpoint, probably one of the most meatiest content pieces I've seen, mega news, serious announcement with Amazon, with Andy Jassy coming on stage releasing the Relational Database Service, RDS, on VMware, on-premises. Monster news. That is like, I don't think the world has yet felt the reverb for this thing yet. - But that was only one of the many stories. - [John] That was just one, that was just like (makes explosion noise). And then the CloudHealth acquisition, and you had tons of demos, pretty intense. - [Ray] Well, it's been- - Summarize what you did (laughs) in ten seconds. - Summarize all of that. So, you know, the key thing that we wanted to achieve with the keynote was obviously to make sure Pat drives the the vision that VMware has and, a lot of focus on that was focused on multi-cloud, this view of the world that you've now got multiple clouds emerging. And you know one of our key rules is to make sure that enterprises are able to work across all of those, networking, how we do management, how we work across all of these, and CloudHealth is a key part of that, making it easier to use cloud, in particular multi-cloud. You know as the CTO I get the fun part of tryna you know let our customers know all the cool work that the engineering teams are doing, so one of the things we want to do is make sure we put a lot of good demos in there. The feedback we get from our customers at VMworld over and over again is they want to see demos, they want to know that stuff is real. You can take a look for instance at the hands on labs. I came in here on Saturday night, walked down there about 6:30 am on Sunday morning, and there was people lining up to go in there and use those labs. So what did we talk through? Broadly speaking we spoke to how you can use VMC on AWS, and the easy way it is to migrate vSphere applications onto vSphere on AWS; we had some new features there around live migration. The next thing we spoke about was around RDS itself and what this project is about. Broadly speaking, at its most basic, it allows you to take the RDS components from Amazon but run them in your data center. With all of the implications of that in terms of how your developers work and they build those applications. We spoke about Project Dimension, which is also around a now delivery as a service, a cloud experience, but again, at your infrastructure, whether it's at the edge or whether it's your data center. And, you know we spoke about what we're doing in blockchain, some opensource components that we're doing over there. New features of Workspace ONE, particularly around the relationship with Dell, and how that will now be combined with some of their laptops And, oh and of course, what we did with some of the Nvidia GPUs, demonstrating the ability to be able to run the most sophisticated AI workloads on a vSphere environment. And I suspect I forgot something in that list, but- - [John] You're going to have to hit the pillow tonight and have a good nap, and crash. - [Dave] Project Magma. - [Ray] Project Magma which is a very future looking concept around basically where we think AI and ML is going to be used to drive a lot of the automation moving forward. - [Dave] Self-driving data center, - Self-driving data center. - [Dave] I think you'd call it (John laughs) Are they coinin' a new term there? - No it's great, we can reuse an old term, and you know rebrand it. - Auto pilot. Put your data center on auto pilot. I want to just drill down on one, on the Amazon relationship, because that was obviously the height, big news in there what you're talking about is the depth of the relationship is deep on the partnership side. I want to, and you guys, you pointed that out, I want to amplify that, but I also want to ask you around the RDS demand. You know, talkin' to some of the Amazon sources, they tell me that the demand for this was very strong, over multiple years. So, first on the RDS, the demand, some of the customer feedback, this is not just you guys in a room goin' hey, let's just do this; it makes sense, but it's customer driven. - Yeah, when you look at what VMC on AWS actually is, it's creating this bridge between the on-prem and the private cloud, sorry, and the public cloud on Amazon. But, initially most of that is really an I as relationship, yes we can move workloads, yes we can move VMs, yes we can manage networking, but one of the key things you want from a public cloud or from cloud in general is access to services. So, as we went down that first part of saying we'll give you this basic infrastructure, very quickly customers began to ask for some other things, some other aspects of that, and that of course was services. So after lots of discussions around what are services, one, that are appropriate to be able to put into this new type environment, but which had to demand RDS certainly rode very quickly to the top of that. In the end almost everybody has some form of database in their application, and so it's a very likely start for us to make them. - So I remember when customers first started wanting to run, to virtualize Oracle, with of course VMware; and Oracle, didn't really embrace that early on. They would say things, their sales guys would scare the customers, we're not going to certify it, but then some of the customers said "Dam the torpedoes, we're going to do it." it actually worked great. - [Ray] Right. - Now, I don't know if that's 'cause, just that's the inherent nature of VMware, or you guys had to do some work, so my question is: two fold, was that just the inherent nature of VMware, and what did you have to do or will you have to do to get RDS running the way that customers want it, trust it on AWS, I mean on VMware? - So, in the case of the Oracle situation, we didn't have to do a whole lot to make that happen, we were virtualizing in x86, Oracle runs on x86, and so you got that basic pattern and mix. In the case of RDS, the actual database that you're running on your VMware infrastructure, our database is such as my SQL, we run an enormous amount of those databases already, so that core aspect of getting the database running is not something that's fundamentally difficult for us to do The challenging part is, how do bridge all the management aspects of that? The RDS components, the APIs, that a developer wants to use, and which are used to using over on, with RDS on AWS, so that's where the work is involved. Now by the way, you're implying that maybe this is a future thing, right? A lot of that work has already occurred, in fact, you know the demo you're seeing is not based on this is what we could do at some possible time in the future, it is actually tied to some very close future releases. - [Dave] So recovery, I'm going to be co-, that's future release of recovery and all the things, if something goes wrong, I'm going to be comfortable as a customer that - [Ray] Correct, correct. - You're going to be backed. - Some of those things we still need to work true, because there's tons of features that you can begin to add onto this, disaster recovery, backup, all of those sort of things, and they're not all going to be there on day one, but you can expect us to continue to add all of that. - [Dave] And you'll have all of those? - Correct. - Now the other question I got to ask you is about migration. When I hear the term migration I go, ugh, you know IT practitioners they tighten up, but what I heard on stage today is we're going to make this really easy. But moving data, help me square that circle, Ray, because, you know data, people say data has gravity, speed of light, network bandwidth, proximity. What's the secret sauce that enables you guys to solve those problems? - So the core secret sauce there is if you're virtualized on VMware on-premise, and you're using VMC on AWS, the basic unit of execution is still that virtual machine, and that virtual machine encapsulates the storage, the networking, everything associated with that box, right? So virtual machines have that very core strength of encapsulating not just the application, or some aspect of the, even some aspect of a minimal piece of the operating system, it encapsulates everything which is tied into that box almost on a physical level. So when you say I'm going to move a virtual machine, you're moving the disk, you're moving the storage, you're doing all of those things. So now think of a database running in a virtual machine, it might not even be the applications, just the database, we're able to capture that and represent that as we moved the virtual machine, you're moving all of that as well. Now there's two aspects of that, one of them is moving the underlying storage, the disk, which might well be even a a virtual disk on NFS or something like that, that's slower task, and that's why we leverage vSphere replication for that. And then the final live part which is, it's always the cool part, but is in fact in this stage maybe not the most difficult part, and what we're describing here is moving the actual memory contents of a given VM and flipping it over to VMC on AWS. - [Dave] Okay, so the key there, you've got the replication piece, and then you just unhook the original and then you're up and running. - Correct. Traditional vMotion relies that both servers access the same disk, so I don't need to move the disk, in this case I need to actually move the disk, and that's what the replication does. - [John] Ray, I want to ask you about something that Pat Gelsinger kind of cheesed out on the keynote. You could tell he had so much confidence, he wanted to expand on this one section but he got a couple digs in on it but, he did point out that the telco piece was very big; and only, he had a percent, I think 10% or 20% is virtualized when enterprises are like 80, I forget what now, I forget the exact numbers but his point was: huge opportunity in telco. What was he referring to there? - So, broadly speaking, if you look across most of you know where workloads run, you look at your IT infrastructure, you look at most of the public clouds and private clouds, they're virtualized to an enormous extent. Now when you go into the telco side of things and begin to look at what's happening at the edge, what's happening in the large telco infrastructure, both, a little bit from a cloud point of view, but also from everything to do from all the services and so on that the run; much of that is not virtualized. Now we actually made a very distinct focus on that over the last few years, we created a, basically a product line and a mini business unit, focused on telco, and that's where you see products like the virtual network functions, all of those technologies coming from. But actually the key product from that area is actually VIO, VMware Incubated Openstack, that's because the telco providers, to a large degree, attempted to leverage Openstack, had some challenges of getting the reliability, the stability you need on that, so what we did was merged the hypervisor, the infrastructure of VMware, with the Openstack management APIs, produced VMware Incubated Openstack, and the telco providers are very aggressively taking that on - [Dave] Now, I got to ask ya, whaddya got against capex? (Dave and Ray laugh) Pat said "You should never spend capex for DR again." it was basically- - [Ray] Yep. So I mean, I think the key part of that solution is it is now so, I will use the word easy, the technology behind it is not easy, but it easy for an end user to be able to say: "I can connect my application from a private infrastructure to a public infrastructure, in a way which is very highly connected using NSX, which is easily replicated, which is easily moved; therefore, I now have a ready ability to be able to create DR scenarios leveraging the public cloud." It is easier than it's ever been before, so instead of building another data center to do that, leverage VMC on AWS, leverage those type of technologies to be able to do that. - Ray, can you clarify, or amplify the VMware Cloud Foundations, how does, trials and tribulations over the years has evolved, it's now front and center in the conversation. How has that evolved from a product standpoint, tech, is it integration layer, how are you guys looking at that, what is the role of VMware Cloud Foundation, and what does it mean for your partners and customers? - Yeah, so I think that, your comments about it having a a kind of an early mixed reaction or so on is actually partially because a naming challenge that we called right? VMware Cloud Foundation is a unified story where we basically take the core elements of the SDDC and we combine in management infrastructure with that, which is actually called SDDC Manager, we don't necessarily spell that out but it's combined into that. But that's the key aspect of this, and then we build architectures based on that; so VxRack is based on VMware Cloud Foundation. The infrastructure which runs in Amazon which we manage as part of the VMC on AWS is built on VMware Cloud Foundation. So it's an architectural and, it's an architectural statement as opposed to a product statement. Where the confusion arises, we also have products that people call VMware Cloud Foundation. One of the ones they're with now as an instance of that is for instance VxRack, right? Which is basically a rack of infrastructure, think of it as a really big VxRail, but it's got all of this management software combined with it as well. And actually, you know your comment about that having some mixed reaction, some of that is because of our renaming that - [John] Renaming. - we've done along the way. But that is actually growing, and quite successful product at this stage, so. - It's been getting a lot of good buzz. - It's getting a lot of good buzz, yes. - [John] And the value is what? Times in market on, on solution building, or pull out, what's the main value? - In some way it goes back to the core value of hyper-converged infrastructure, somebody else is taking care of making sure that the software components all blend together; somebody else is making sure that there's any easy way to update and manage all of these things together, and in many cases, making sure it's well integrated with underlying hardware. So it's all around making it easy to get that basic SDDC up and running. - [Dave] So I got to question on your architecture, and I honestly don't even know how to ask it, but, maybe you can help me as a technologist; you've got, you know the VMware architecture which was developed initially decades ago, and now you've got all this microservices, and Kubernetes, and containers comin' into the fore, and you see the quote unquote modern architectures, speed of deployment, software release is much faster, much more cloud-like, cloud first. How do you go from you know the historical architecture to that level, how do you bridge the two worlds? - So, as with any company, as these transitions have taken place, we've had to be able to make sure we invest in those new techniques and new technologies as well. So you see for instance VMC on AWS, you see for instance Project Tango the cloud-based VR realms product. All of those are cloud-based infrastructure using, you know those more, well I guess they're described new or modern ways of developing applications, microservices, containerized, leveraging Kubernetes and so on in the mix. So just like the rest of the industry, we've been doing the same as part of that broader sorry, that broader industry momentum. There isn't a conflict that you, I think might think is there. The bottom line is our primary purpose is to deliver enterprise software which is solid, stable, secure, easily connected to the rest of the infrastructure. And that might sound a little bit boring, but it is the thing that keeps most of the data centers running and safe. VMware's ESX architecture, VMware's VC architecture has been at the very heart of that. And while they've matured over the years, right, they're still at the very heart of that virtualization part of what we do, but all of these other things we do, what we do in terms of cloud monitoring, what we do in terms of Wavefront, what we do in terms of VMC on AWS, they're new code, new architectures, broadly expanding that story, leveraging microservices and the things you would expect in that space. - Well, and VMware has proven to the gold standard in that regard. Maybe it is boring, but it's super important. - [John] So you got some compliments on theCUBE today, for the work you guys are doing, Andy Bechtolsheim was on earlier, a well-documented career he's had he knows a thing or two about networks. He said "VMware as NSX is ..." this is a quote from today, "... is the best solution that's available today that I can use for a use case of the large numbers I have between smooth connection between on-premise and off-premise public cloud, into the future, to edge, and telco, and all other things cloud." - Yeah, I'm not going to argue with that quote. (laughs) - [John] So, instant testimonial. Okay, NSX has become really this, and Pat was giddy about this last year, he's all like, you watch more NSX, you know more goodness coming; it seems to be the center piece to the a lot of the VMware's connection strategies to cloud and other things including manageability. What's the big thing about NSX, what should people know about NSX? - I think the single biggest thing is software-defined networking had a promise, and the promise is this highly flexible, easily configured, and in many ways, automated, or policy-driven in some cases; networking infrastructure. So it's all around that flexibility and fluidity of software-defined networking. The key strength that NSX does, it delivers on that promise, so it's easy to say software-defined networking, it's not easy to build it, right? And that's where I think NSX is proving all of its strength, it is a very strong implementation; I would argue, obviously, the best implementation of software-defined networking. So that testimonial is an echo of that, it's delivering on all the things you expect from a software-defined network. - [John] And what is NSX enabling? - In terms of the cloud connectivity story which you just described a second ago, what it enables is, really in some ways, because it is not tied to a specific infrastructure, I'm able to run NSX on a public cloud infrastructure and on a private cloud infrastructure, or on a hyper-converged infrastructure, but it's essentially the same NSX. It's the same control plane, it's managed in the same way, all of those different instances know how to interoperate with each other. So what it's enabling is this massive ability to have these networks very quickly brought up, connect to each other, and reliably communicate with each other, and be managed in a unified fashion. - [John] And it's targeting one of the hardest things people are working on which is interoperability. - [Ray] Correct, it's also targeting security. I mean one of the things when we think about networking that you should never forget is this key aspect of security, and NSX is clearly targeting that as well. So some of the things, even the features you see around app defense, a combination of app defense and NSX gives you enormous power. Pat's made a good presentation today where he was talkin' about the adaptive micro-segmentation. You can only do that because you have a great NSX underlying that network. - What's interesting about the NSX, just want to get your reaction to is that that the people are talking about here on theCUBE and also in the industry is that by having the security at the application portion of it, when NSX plays, takes the pressure of the network teams; security teams can have comfort in their piece, and then, (laughs) you don't intertwine them. Is that true, or is that ...? - So I'm reluctant to say it's true because the bottom line is, everybody needs to be paranoid, right? (John laughs) So- - Well from a segmentation standpoint, form a cohesiveness, not this finger pointings, there's not a lot of, it's not thorny. - [Ray] Because it moves the networking layer up a level, and that level is closer to the application. But, when I really I looked at, I think the key strength there is because it's software-defined, because it's flexible, where you get a lot of the problems is when applications change, there's a new version of the application, or we're now popping up a new instance of the application; now because NSX is this software layer beneath that, it is able to react to that. So instead of, you know the finger pointing back to the security or networking person saying you didn't reconfigure the network to deal with my new application; instead, the application and the network are intimately bound together. Actually Pat used some phrase today where he said "I think the app is the network" and so, or something like that, he was talking a little bit differently about it, but broadly speaking that's what's going on there. It's all around the flexibility and the fluidity that you get from NSX. - [John] The application is a network! - [Ray] Correct, that's what he said, yes. - Was his word. - [Ray] Yep, yep. - Which I love, to think he's right on the money. Complex and if some services evolve, the service measure are right around the corner. - [Ray] Yeah, highly interconnected, you know what app, think of any application on your iPhone or your Android device, which doesn't rely on about 20 other applications or databases or cloud services. - [John] Well, Ray, we'll have to get you on a white board sometime, and have you do a deeper dive, love this conversation, congratulations. Final word I'm going to ask you, what is this VMworld all about on stage, if you could knot down the technical engineering successes that you've had this year, what's it about this year, what's the scene from your perspective? - So I think one of the key things is, we've got a lot of products, a lot of technologies under development for the last few years, a lot of them are now starting to see fruition and the light of day; you know, you know you spoke about NSX, NSX is now reaching a real strength right? But that's work we've had to start two and three and four years ago. So to me, that's probably the strongest thing here, products, ideas, research that we've done over the years, development we've done over the years is now becoming real, is getting out and making available to customers; and in the end, that's what we're about, tryna get those technologies to hand to customers. - [John] And we're going to do our job to share that, and we're going to be tracking the successes; and also thank you for inviting us to your radio event where you had your top scientists. - Oh yeah it was great, very good to see you guys there, thank you. - [John] Great to see the energy, and the engineering prowess of VMware continuing strong, technical team, community, and customer base. This is theCUBE, bringing you our hardcore tech coverage here at VMworld 2018, three days, we're in day one, stay with us for more after this short break. (bubbly music)

>> Live, from Las Vegas, it's theCUBE. Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back. This is theCUBE's coverage of VMworld 2018 here in Las Vegas. I'm Stu Miniman joined by my two guest hosts that have spent a bunch of time with us this week. John Mark Troyer and Justin Warren. Thank you, gentlemen for joining us for the wrap. >> Thanks for having us. >> Thanks for having us. >> We get to have a lot of fun. We get to hang out with community people, geek out on a lot of stuff. This is also a really good checkpoint for a lot of the IT industry. VMware, 800-pound gorilla in the data center. I put out one tweet that was like the 800-pound gorilla in the data center or the 800-pound gorilla in the cloud. The partnerships matured quite a bit, in my mind, for the last year. That was one of the big things that I've seen. RDS on-premises is definitely the thing that sticks out to me the most. John, let's start with you as to, checkpoint from last year. What impressed you? What are they making progress with? Let's start there. >> I think the RDS announcement was maybe even undersold here. We'll see in the coming months what actually happens and if everything works the way it's supposed to work. I think a lot of people who are putting chips down on various outcomes and scenarios in cloud world did not cover that one space in the roulette wheel. Cause that's actually pretty interesting. Stu, I kind of see this as a year of promises kept. Some promises that were made in years past are starting to come out. This multi-cloud world seems more real. VMware's relationships with various clouds and the hints that were thrown are there's more to come. It seems real. The cloud starting to come back on-prem. Both EBS on-prem and now Project Dimension with VMware being a service provider. I've talked to a number of vendors and you and I, Stu. Some are here on theCUBE. People starting to do more managed services from the cloud back into your data center. I see the multi-cloud world working and then this kind of blurring of on-prem and cloud even more. That's kind of what I'm seeing. >> Yeah, I've got to agree. It's that idea that cloud is a state of mind. It's not a location. >> We say it's an operating model at it's core, right? >> Right, yeah, and I think we're seeing a lot of those ideas come to fruition now that you can operate like a cloud on-site. It's how you run things, it's not where exactly you put it. With the multi-cloud world, like you said, we can have, some of it can be on-site, some of it can be in one cloud, another cloud, lots of different clouds. Some of it will be at the edge. We're seeing a lot of growth in edge computing, which is essentially just another way of doing on-site. Being able to use the same tools, and that, for me, is the idea around the RDS announcement. It's the same thing that you're used to in public cloud. Now I can do that on-site. We're seeing a real cross-pollination. You can take VMware and run that in cloud. You can take things from the cloud and now run it back on site. It's pretty exciting. >> This is awesome. We have an easy button. Customers just push a button. Any data, anywhere, moves all over the place. Laws of physics, throw them out. Come on, guys. I need some critical analysis here. The trope that I would have, always, when I became an analyst an eight years ago was like well, if it wasn't for management and security we would have this all sorted out. The multi-cloud world is made progress, but when I still look at it. RDS, super exciting. The thing that's most exciting about it? That's on-premises, it's doesn't have connection to Amazon, but I'm doing cool things with the exact same kind of bits there so I can do it here or there. Doesn't mean, necessarily here and there, or spread between there, because petabytes of data don't just float across the ether. We're still using things like the AWS Snowballs when we have to move a lot of data. Yes, it's matured, but when I look at the management of multi-cloud and how simple, there was a great comment from a company that's been around for a couple of decades on theCUBE and he said look, the new companies all say we're going to make this super easy. It's like well, because you don't have the trusted brand to set beside, simple would be nice but cloud isn't simple. Multi-cloud sure isn't simple. >> There was, probably, a surfeit of single panes of glass here at the show. Any app, any cloud, any whatever. Single pane of glass. We'll blueprint it, we'll manage it, we'll do it. That does seem like that probably isn't that real world. >> Multiple single panes of glass. >> Please, Justin, give me a touchpoint. When you talk to an administrator, how do they spell single pane of glass? >> Oh yes, P-A-I-N, yes, a single glass of pain. That's generally what it is. I think that the manageability and the operational side of things, that is where there's a lot more development required. Cloud is, yes it's a state of mind. It's a very different way of operating and a lot of the tools, particularly in the VMware community, a lot of what people are used to here is very much point and click. It's not really as automated as it would be in, say, developer land. I spend a lot of time with developers and a lot of what they're used to is all programmatic, it's driven from the API. We're seeing movement with things like PowerShell and VMware administrators are getting more comfortable with the idea of scripting and so on. But they're not programmers. They still need GUI tools. They still need things that are able to do point and click. Some things are better in that environment. I think we still have a long way to go with things around automation. The other thing that still has a long way to go, I think, is security. Security particularly around the networking of how you inter-connect with all of these things and do so securely at scale. There is a lot of invasion and work that's required to actually make that happen. >> Absolutely. John, do you have some comment there? >> I was going to say I think you're right. Especially on all those points. The community booth back here behind us this year had a VMware code section, which was jam-packed the whole time. For the first time. VMware's been trying to speak to developers for 10 years and not quite connecting. Now, these weren't developers back there, these were admins, and they're not going to ever be programmers, but they're going to start to learn more programmatic paradigms, automation, things like that. It was super popular this year. >> Luckily, we don't actually need programmers anymore, John, cause it's coding, which means you're really just coping, pasting, and modifying things and everything. Heck, I've even interviewed marketing people that are like oh, server-less, I can build with that stuff. Super easy. I don't think we need everybody to learn to even code, as it were. We bridged that gap. It's matured, it's become easier. They pulled over some of the, it was the EMC code team. It's half that team over there. They had some good gamification. >> Stu, I am an optimist and I think the glass is half full or 40% full at least. We've done some CUBE stuff, theCUBE's been all over the world here this spring, all through 2018. I've done a couple shows with you. The difference that I saw this year was that the use cases were real and the time to value was real. People are implementing cloud projects, multi-cloud projects, and they're getting to a good milestone within weeks or months. Admittedly, these are big, multi-national companies, so it's really at the top level where they have the army of people to do it, but sometimes these projects were very small and they were real. They weren't just marketing hokum up on stage. Of course, they're not the full enterprise in a couple of weeks, but that's the difference this year, I see, Stu. I'm 40% full. >> Absolutely, I'd say look. Energy level was up. Two years ago it kind of hit a nadir. It was doom and gloom. We were all over at the eye candy bar saluting the great run that VMware had and wondering who the next CEO was been. Now, energy level's back up. Investment in the ecosystem, oh my gosh. I don't think I've seen this many parties ever at a VMworld. We got to talk about something other than cloud so give me your non-cloud takeaways from the show. Areas that people should learn more about, things you saw in the ecosystem or from VMware or the community. >> I think that's one of the things I've noticed here at the show. Wandering around the show floor, unlike some of the other shows where it's we will have a storage show or we'll have a backup show. There's a lot more balance this year. There seems to be a good mix of some of everything. I think that it shows that in order to run a successful IT shop, you actually need to have a balance of, you need some backup, you need some data recovery, you need to have some software, you need some monitoring, you need to have security options. Go and have a look at all of the different vendors that are at a show like this to be able to make sure you have a portfolio approach to how you run things. >> Totally. I remember there were a couple of years, four or five years ago, it was like oh, it's VM storage world. >> Yeah. >> OK, yeah. John? >> There is a lot of storage here, but the storage is all connected to the cloud now. I think if you look at some of the big booths and some of the start-ups who have gotten funding recently. Large rounds. Cohesity, Datrium, Rubrik, folks like that, they're delivering on promises made in earlier years. Not particularly like oh wow, I never thought of, but this was the vision that we laid out and now we're delivering it this year. Big rounds of funding, big customer movement, connection to the cloud and solid, interesting DR as a service and data, as opposed to storage, ideas. I thought that was one of the more interesting aisles this year over there in the booths. >> To riff on what you said about developers and the bridge to the code idea, we see Puppet is here at the show, HashiCorp is here for the first time. >> Docker's there, of course. >> Docker's here. >> C & CF had a booth. >> Yep, C & CF had a booth. These are people that you wouldn't have expected to see at a VMware show in years past. >> One thing that struck me is companies with a mission for good. Pat Gelsinger kind of sets the bar. Talked about it in his keynote. Do better, do good, sets that example. He climbed Mt. Kilimanjaro for charity earlier this year. They had Malala up on stage with Sanjay Poonen. I did a couple of interviews here which were inspiring. Mission-driven companies and great to see the infrastructure in software companies being like hey, we're enabling and helping it. That was one to me. Takeaways from the community? Other things as we get to our wrap? >> I do wonder about that point. Just to add a little, slightly critical note on that. I think that there has been a bit of a tech lash, a bit of a backlash against tech companies. I wonder whether, I would like to see more from tech companies to show that this is real. That that social conscience is a real thing and it isn't just a bit of marketing that they've spray painted on to the front of the company. The fact that we had Malala here giving a keynote indicates that there is a commitment to it. I would want to see that carry through for the next couple of years, at least, to show that that sort of thing is real. And certainly, from the rest of the ecosystem, I expect that we're going to see a lot more. >> Diversity in the community, absolutely. I do realize we have three white guys of a certain age sitting here. We try to add diversity. I had my first European host on the program. Lisa's been on a lot this week. We're building out our bench, we're looking to add diversity. John, yeah, the community. >> Community, again, yeah, community was good this year. A lot of old faces have stayed around, which is really interesting but also people have left and come back. You saw people who have gone into the AWS and Microsoft ecosystems coming back in here. Again, some of those old faces. Also, new faces. Global diversity from the southern hemisphere and from other countries that you wouldn't expect are here today. That was super interesting. I do see a lot of energy, a lot of excitement about their careers going forward. I do see that tech needs to be, there was some symbolic do-good things here. But I mean, Justin is a little bit involved in your own home country about how the government has the power with technology to do good or bad. I think that may be an emerging thing that we see here now as you get a layer down of not only charity work but the impacts of technology. I bet we'll end up talking about that next year, Stu. >> Guys, we could start talking for a lot longer. The good news is I know how to get in touch with you. For our audience, by the way, you can hit us all up on Twitter, through various social channels. Jtroyer, jpwarren, I'm of course @stu. That's just S-T-U. Blue Cow is on Instagram. Follow the adventures of Blue Cow, showing where Justin's going all over the place. Thanks so much for joining us. Great coverage here. This community's where I get a lot of my guest hosts and still, it's like homecoming coming to this place. Thank you for watching theCUBE. (electronic tones)