>> From The Cube Studios in Palo Alto and Boston, bringing you data driven insights from The Cube at ETR. This is "Breaking Analysis" with Dave Vellante. >> The reverse momentum in tech stocks caused by rising interest rates, less attractive discounted cash flow models, and more tepid forward guidance, can be easily measured by public market valuations. And while there's lots of discussion about the impact on private companies and cash runway and 409A valuations, measuring the performance of non-public companies isn't as easy. IPOs have dried up and public statements by private companies, of course, they accentuate the good and they kind of hide the bad. Real data, unless you're an insider, is hard to find. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR. In this "Breaking Analysis", we unlock some of the secrets that non-public, emerging tech companies may or may not be sharing. And we do this by introducing you to a capability from ETR that we've not exposed you to over the past couple of years, it's called the Emerging Technologies Survey, and it is packed with sentiment data and performance data based on surveys of more than a thousand CIOs and IT buyers covering more than 400 companies. And we've invited back our colleague, Erik Bradley of ETR to help explain the survey and the data that we're going to cover today. Erik, this survey is something that I've not personally spent much time on, but I'm blown away at the data. It's really unique and detailed. First of all, welcome. Good to see you again. >> Great to see you too, Dave, and I'm really happy to be talking about the ETS or the Emerging Technology Survey. Even our own clients of constituents probably don't spend as much time in here as they should. >> Yeah, because there's so much in the mainstream, but let's pull up a slide to bring out the survey composition. Tell us about the study. How often do you run it? What's the background and the methodology? >> Yeah, you were just spot on the way you were talking about the private tech companies out there. So what we did is we decided to take all the vendors that we track that are not yet public and move 'em over to the ETS. And there isn't a lot of information out there. If you're not in Silicon (indistinct), you're not going to get this stuff. So PitchBook and Tech Crunch are two out there that gives some data on these guys. But what we really wanted to do was go out to our community. We have 6,000, ITDMs in our community. We wanted to ask them, "Are you aware of these companies? And if so, are you allocating any resources to them? Are you planning to evaluate them," and really just kind of figure out what we can do. So this particular survey, as you can see, 1000 plus responses, over 450 vendors that we track. And essentially what we're trying to do here is talk about your evaluation and awareness of these companies and also your utilization. And also if you're not utilizing 'em, then we can also figure out your sales conversion or churn. So this is interesting, not only for the ITDMs themselves to figure out what their peers are evaluating and what they should put in POCs against the big guys when contracts come up. But it's also really interesting for the tech vendors themselves to see how they're performing. >> And you can see 2/3 of the respondents are director level of above. You got 28% is C-suite. There is of course a North America bias, 70, 75% is North America. But these smaller companies, you know, that's when they start doing business. So, okay. We're going to do a couple of things here today. First, we're going to give you the big picture across the sectors that ETR covers within the ETS survey. And then we're going to look at the high and low sentiment for the larger private companies. And then we're going to do the same for the smaller private companies, the ones that don't have as much mindshare. And then I'm going to put those two groups together and we're going to look at two dimensions, actually three dimensions, which companies are being evaluated the most. Second, companies are getting the most usage and adoption of their offerings. And then third, which companies are seeing the highest churn rates, which of course is a silent killer of companies. And then finally, we're going to look at the sentiment and mindshare for two key areas that we like to cover often here on "Breaking Analysis", security and data. And data comprises database, including data warehousing, and then big data analytics is the second part of data. And then machine learning and AI is the third section within data that we're going to look at. Now, one other thing before we get into it, ETR very often will include open source offerings in the mix, even though they're not companies like TensorFlow or Kubernetes, for example. And we'll call that out during this discussion. The reason this is done is for context, because everyone is using open source. It is the heart of innovation and many business models are super glued to an open source offering, like take MariaDB, for example. There's the foundation and then there's with the open source code and then there, of course, the company that sells services around the offering. Okay, so let's first look at the highest and lowest sentiment among these private firms, the ones that have the highest mindshare. So they're naturally going to be somewhat larger. And we do this on two dimensions, sentiment on the vertical axis and mindshare on the horizontal axis and note the open source tool, see Kubernetes, Postgres, Kafka, TensorFlow, Jenkins, Grafana, et cetera. So Erik, please explain what we're looking at here, how it's derived and what the data tells us. >> Certainly, so there is a lot here, so we're going to break it down first of all by explaining just what mindshare and net sentiment is. You explain the axis. We have so many evaluation metrics, but we need to aggregate them into one so that way we can rank against each other. Net sentiment is really the aggregation of all the positive and subtracting out the negative. So the net sentiment is a very quick way of looking at where these companies stand versus their peers in their sectors and sub sectors. Mindshare is basically the awareness of them, which is good for very early stage companies. And you'll see some names on here that are obviously been around for a very long time. And they're clearly be the bigger on the axis on the outside. Kubernetes, for instance, as you mentioned, is open source. This de facto standard for all container orchestration, and it should be that far up into the right, because that's what everyone's using. In fact, the open source leaders are so prevalent in the emerging technology survey that we break them out later in our analysis, 'cause it's really not fair to include them and compare them to the actual companies that are providing the support and the security around that open source technology. But no survey, no analysis, no research would be complete without including these open source tech. So what we're looking at here, if I can just get away from the open source names, we see other things like Databricks and OneTrust . They're repeating as top net sentiment performers here. And then also the design vendors. People don't spend a lot of time on 'em, but Miro and Figma. This is their third survey in a row where they're just dominating that sentiment overall. And Adobe should probably take note of that because they're really coming after them. But Databricks, we all know probably would've been a public company by now if the market hadn't turned, but you can see just how dominant they are in a survey of nothing but private companies. And we'll see that again when we talk about the database later. >> And I'll just add, so you see automation anywhere on there, the big UiPath competitor company that was not able to get to the public markets. They've been trying. Snyk, Peter McKay's company, they've raised a bunch of money, big security player. They're doing some really interesting things in developer security, helping developers secure the data flow, H2O.ai, Dataiku AI company. We saw them at the Snowflake Summit. Redis Labs, Netskope and security. So a lot of names that we know that ultimately we think are probably going to be hitting the public market. Okay, here's the same view for private companies with less mindshare, Erik. Take us through this one. >> On the previous slide too real quickly, I wanted to pull that security scorecard and we'll get back into it. But this is a newcomer, that I couldn't believe how strong their data was, but we'll bring that up in a second. Now, when we go to the ones of lower mindshare, it's interesting to talk about open source, right? Kubernetes was all the way on the top right. Everyone uses containers. Here we see Istio up there. Not everyone is using service mesh as much. And that's why Istio is in the smaller breakout. But still when you talk about net sentiment, it's about the leader, it's the highest one there is. So really interesting to point out. Then we see other names like Collibra in the data side really performing well. And again, as always security, very well represented here. We have Aqua, Wiz, Armis, which is a standout in this survey this time around. They do IoT security. I hadn't even heard of them until I started digging into the data here. And I couldn't believe how well they were doing. And then of course you have AnyScale, which is doing a second best in this and the best name in the survey Hugging Face, which is a machine learning AI tool. Also doing really well on a net sentiment, but they're not as far along on that access of mindshare just yet. So these are again, emerging companies that might not be as well represented in the enterprise as they will be in a couple of years. >> Hugging Face sounds like something you do with your two year old. Like you said, you see high performers, AnyScale do machine learning and you mentioned them. They came out of Berkeley. Collibra Governance, InfluxData is on there. InfluxDB's a time series database. And yeah, of course, Alex, if you bring that back up, you get a big group of red dots, right? That's the bad zone, I guess, which Sisense does vis, Yellowbrick Data is a NPP database. How should we interpret the red dots, Erik? I mean, is it necessarily a bad thing? Could it be misinterpreted? What's your take on that? >> Sure, well, let me just explain the definition of it first from a data science perspective, right? We're a data company first. So the gray dots that you're seeing that aren't named, that's the mean that's the average. So in order for you to be on this chart, you have to be at least one standard deviation above or below that average. So that gray is where we're saying, "Hey, this is where the lump of average comes in. This is where everyone normally stands." So you either have to be an outperformer or an underperformer to even show up in this analysis. So by definition, yes, the red dots are bad. You're at least one standard deviation below the average of your peers. It's not where you want to be. And if you're on the lower left, not only are you not performing well from a utilization or an actual usage rate, but people don't even know who you are. So that's a problem, obviously. And the VCs and the PEs out there that are backing these companies, they're the ones who mostly are interested in this data. >> Yeah. Oh, that's great explanation. Thank you for that. No, nice benchmarking there and yeah, you don't want to be in the red. All right, let's get into the next segment here. Here going to look at evaluation rates, adoption and the all important churn. First new evaluations. Let's bring up that slide. And Erik, take us through this. >> So essentially I just want to explain what evaluation means is that people will cite that they either plan to evaluate the company or they're currently evaluating. So that means we're aware of 'em and we are choosing to do a POC of them. And then we'll see later how that turns into utilization, which is what a company wants to see, awareness, evaluation, and then actually utilizing them. That's sort of the life cycle for these emerging companies. So what we're seeing here, again, with very high evaluation rates. H2O, we mentioned. SecurityScorecard jumped up again. Chargebee, Snyk, Salt Security, Armis. A lot of security names are up here, Aqua, Netskope, which God has been around forever. I still can't believe it's in an Emerging Technology Survey But so many of these names fall in data and security again, which is why we decided to pick those out Dave. And on the lower side, Vena, Acton, those unfortunately took the dubious award of the lowest evaluations in our survey, but I prefer to focus on the positive. So SecurityScorecard, again, real standout in this one, they're in a security assessment space, basically. They'll come in and assess for you how your security hygiene is. And it's an area of a real interest right now amongst our ITDM community. >> Yeah, I mean, I think those, and then Arctic Wolf is up there too. They're doing managed services. You had mentioned Netskope. Yeah, okay. All right, let's look at now adoption. These are the companies whose offerings are being used the most and are above that standard deviation in the green. Take us through this, Erik. >> Sure, yet again, what we're looking at is, okay, we went from awareness, we went to evaluation. Now it's about utilization, which means a survey respondent's going to state "Yes, we evaluated and we plan to utilize it" or "It's already in our enterprise and we're actually allocating further resources to it." Not surprising, again, a lot of open source, the reason why, it's free. So it's really easy to grow your utilization on something that's free. But as you and I both know, as Red Hat proved, there's a lot of money to be made once the open source is adopted, right? You need the governance, you need the security, you need the support wrapped around it. So here we're seeing Kubernetes, Postgres, Apache Kafka, Jenkins, Grafana. These are all open source based names. But if we're looking at names that are non open source, we're going to see Databricks, Automation Anywhere, Rubrik all have the highest mindshare. So these are the names, not surprisingly, all names that probably should have been public by now. Everyone's expecting an IPO imminently. These are the names that have the highest mindshare. If we talk about the highest utilization rates, again, Miro and Figma pop up, and I know they're not household names, but they are just dominant in this survey. These are applications that are meant for design software and, again, they're going after an Autodesk or a CAD or Adobe type of thing. It is just dominant how high the utilization rates are here, which again is something Adobe should be paying attention to. And then you'll see a little bit lower, but also interesting, we see Collibra again, we see Hugging Face again. And these are names that are obviously in the data governance, ML, AI side. So we're seeing a ton of data, a ton of security and Rubrik was interesting in this one, too, high utilization and high mindshare. We know how pervasive they are in the enterprise already. >> Erik, Alex, keep that up for a second, if you would. So yeah, you mentioned Rubrik. Cohesity's not on there. They're sort of the big one. We're going to talk about them in a moment. Puppet is interesting to me because you remember the early days of that sort of space, you had Puppet and Chef and then you had Ansible. Red Hat bought Ansible and then Ansible really took off. So it's interesting to see Puppet on there as well. Okay. So now let's look at the churn because this one is where you don't want to be. It's, of course, all red 'cause churn is bad. Take us through this, Erik. >> Yeah, definitely don't want to be here and I don't love to dwell on the negative. So we won't spend as much time. But to your point, there's one thing I want to point out that think it's important. So you see Rubrik in the same spot, but Rubrik has so many citations in our survey that it actually would make sense that they're both being high utilization and churn just because they're so well represented. They have such a high overall representation in our survey. And the reason I call that out is Cohesity. Cohesity has an extremely high churn rate here about 17% and unlike Rubrik, they were not on the utilization side. So Rubrik is seeing both, Cohesity is not. It's not being utilized, but it's seeing a high churn. So that's the way you can look at this data and say, "Hm." Same thing with Puppet. You noticed that it was on the other slide. It's also on this one. So basically what it means is a lot of people are giving Puppet a shot, but it's starting to churn, which means it's not as sticky as we would like. One that was surprising on here for me was Tanium. It's kind of jumbled in there. It's hard to see in the middle, but Tanium, I was very surprised to see as high of a churn because what I do hear from our end user community is that people that use it, like it. It really kind of spreads into not only vulnerability management, but also that endpoint detection and response side. So I was surprised by that one, mostly to see Tanium in here. Mural, again, was another one of those application design softwares that's seeing a very high churn as well. >> So you're saying if you're in both... Alex, bring that back up if you would. So if you're in both like MariaDB is for example, I think, yeah, they're in both. They're both green in the previous one and red here, that's not as bad. You mentioned Rubrik is going to be in both. Cohesity is a bit of a concern. Cohesity just brought on Sanjay Poonen. So this could be a go to market issue, right? I mean, 'cause Cohesity has got a great product and they got really happy customers. So they're just maybe having to figure out, okay, what's the right ideal customer profile and Sanjay Poonen, I guarantee, is going to have that company cranking. I mean they had been doing very well on the surveys and had fallen off of a bit. The other interesting things wondering the previous survey I saw Cvent, which is an event platform. My only reason I pay attention to that is 'cause we actually have an event platform. We don't sell it separately. We bundle it as part of our offerings. And you see Hopin on here. Hopin raised a billion dollars during the pandemic. And we were like, "Wow, that's going to blow up." And so you see Hopin on the churn and you didn't see 'em in the previous chart, but that's sort of interesting. Like you said, let's not kind of dwell on the negative, but you really don't. You know, churn is a real big concern. Okay, now we're going to drill down into two sectors, security and data. Where data comprises three areas, database and data warehousing, machine learning and AI and big data analytics. So first let's take a look at the security sector. Now this is interesting because not only is it a sector drill down, but also gives an indicator of how much money the firm has raised, which is the size of that bubble. And to tell us if a company is punching above its weight and efficiently using its venture capital. Erik, take us through this slide. Explain the dots, the size of the dots. Set this up please. >> Yeah. So again, the axis is still the same, net sentiment and mindshare, but what we've done this time is we've taken publicly available information on how much capital company is raised and that'll be the size of the circle you see around the name. And then whether it's green or red is basically saying relative to the amount of money they've raised, how are they doing in our data? So when you see a Netskope, which has been around forever, raised a lot of money, that's why you're going to see them more leading towards red, 'cause it's just been around forever and kind of would expect it. Versus a name like SecurityScorecard, which is only raised a little bit of money and it's actually performing just as well, if not better than a name, like a Netskope. OneTrust doing absolutely incredible right now. BeyondTrust. We've seen the issues with Okta, right. So those are two names that play in that space that obviously are probably getting some looks about what's going on right now. Wiz, we've all heard about right? So raised a ton of money. It's doing well on net sentiment, but the mindshare isn't as well as you'd want, which is why you're going to see a little bit of that red versus a name like Aqua, which is doing container and application security. And hasn't raised as much money, but is really neck and neck with a name like Wiz. So that is why on a relative basis, you'll see that more green. As we all know, information security is never going away. But as we'll get to later in the program, Dave, I'm not sure in this current market environment, if people are as willing to do POCs and switch away from their security provider, right. There's a little bit of tepidness out there, a little trepidation. So right now we're seeing overall a slight pause, a slight cooling in overall evaluations on the security side versus historical levels a year ago. >> Now let's stay on here for a second. So a couple things I want to point out. So it's interesting. Now Snyk has raised over, I think $800 million but you can see them, they're high on the vertical and the horizontal, but now compare that to Lacework. It's hard to see, but they're kind of buried in the middle there. That's the biggest dot in this whole thing. I think I'm interpreting this correctly. They've raised over a billion dollars. It's a Mike Speiser company. He was the founding investor in Snowflake. So people watch that very closely, but that's an example of where they're not punching above their weight. They recently had a layoff and they got to fine tune things, but I'm still confident they they're going to do well. 'Cause they're approaching security as a data problem, which is probably people having trouble getting their arms around that. And then again, I see Arctic Wolf. They're not red, they're not green, but they've raised fair amount of money, but it's showing up to the right and decent level there. And a couple of the other ones that you mentioned, Netskope. Yeah, they've raised a lot of money, but they're actually performing where you want. What you don't want is where Lacework is, right. They've got some work to do to really take advantage of the money that they raised last November and prior to that. >> Yeah, if you're seeing that more neutral color, like you're calling out with an Arctic Wolf, like that means relative to their peers, this is where they should be. It's when you're seeing that red on a Lacework where we all know, wow, you raised a ton of money and your mindshare isn't where it should be. Your net sentiment is not where it should be comparatively. And then you see these great standouts, like Salt Security and SecurityScorecard and Abnormal. You know they haven't raised that much money yet, but their net sentiment's higher and their mindshare's doing well. So those basically in a nutshell, if you're a PE or a VC and you see a small green circle, then you're doing well, then it means you made a good investment. >> Some of these guys, I don't know, but you see these small green circles. Those are the ones you want to start digging into and maybe help them catch a wave. Okay, let's get into the data discussion. And again, three areas, database slash data warehousing, big data analytics and ML AI. First, we're going to look at the database sector. So Alex, thank you for bringing that up. Alright, take us through this, Erik. Actually, let me just say Postgres SQL. I got to ask you about this. It shows some funding, but that actually could be a mix of EDB, the company that commercializes Postgres and Postgres the open source database, which is a transaction system and kind of an open source Oracle. You see MariaDB is a database, but open source database. But the companies they've raised over $200 million and they filed an S-4. So Erik looks like this might be a little bit of mashup of companies and open source products. Help us understand this. >> Yeah, it's tough when you start dealing with the open source side and I'll be honest with you, there is a little bit of a mashup here. There are certain names here that are a hundred percent for profit companies. And then there are others that are obviously open source based like Redis is open source, but Redis Labs is the one trying to monetize the support around it. So you're a hundred percent accurate on this slide. I think one of the things here that's important to note though, is just how important open source is to data. If you're going to be going to any of these areas, it's going to be open source based to begin with. And Neo4j is one I want to call out here. It's not one everyone's familiar with, but it's basically geographical charting database, which is a name that we're seeing on a net sentiment side actually really, really high. When you think about it's the third overall net sentiment for a niche database play. It's not as big on the mindshare 'cause it's use cases aren't as often, but third biggest play on net sentiment. I found really interesting on this slide. >> And again, so MariaDB, as I said, they filed an S-4 I think $50 million in revenue, that might even be ARR. So they're not huge, but they're getting there. And by the way, MariaDB, if you don't know, was the company that was formed the day that Oracle bought Sun in which they got MySQL and MariaDB has done a really good job of replacing a lot of MySQL instances. Oracle has responded with MySQL HeatWave, which was kind of the Oracle version of MySQL. So there's some interesting battles going on there. If you think about the LAMP stack, the M in the LAMP stack was MySQL. And so now it's all MariaDB replacing that MySQL for a large part. And then you see again, the red, you know, you got to have some concerns about there. Aerospike's been around for a long time. SingleStore changed their name a couple years ago, last year. Yellowbrick Data, Fire Bolt was kind of going after Snowflake for a while, but yeah, you want to get out of that red zone. So they got some work to do. >> And Dave, real quick for the people that aren't aware, I just want to let them know that we can cut this data with the public company data as well. So we can cross over this with that because some of these names are competing with the larger public company names as well. So we can go ahead and cross reference like a MariaDB with a Mongo, for instance, or of something of that nature. So it's not in this slide, but at another point we can certainly explain on a relative basis how these private names are doing compared to the other ones as well. >> All right, let's take a quick look at analytics. Alex, bring that up if you would. Go ahead, Erik. >> Yeah, I mean, essentially here, I can't see it on my screen, my apologies. I just kind of went to blank on that. So gimme one second to catch up. >> So I could set it up while you're doing that. You got Grafana up and to the right. I mean, this is huge right. >> Got it thank you. I lost my screen there for a second. Yep. Again, open source name Grafana, absolutely up and to the right. But as we know, Grafana Labs is actually picking up a lot of speed based on Grafana, of course. And I think we might actually hear some noise from them coming this year. The names that are actually a little bit more disappointing than I want to call out are names like ThoughtSpot. It's been around forever. Their mindshare of course is second best here but based on the amount of time they've been around and the amount of money they've raised, it's not actually outperforming the way it should be. We're seeing Moogsoft obviously make some waves. That's very high net sentiment for that company. It's, you know, what, third, fourth position overall in this entire area, Another name like Fivetran, Matillion is doing well. Fivetran, even though it's got a high net sentiment, again, it's raised so much money that we would've expected a little bit more at this point. I know you know this space extremely well, but basically what we're looking at here and to the bottom left, you're going to see some names with a lot of red, large circles that really just aren't performing that well. InfluxData, however, second highest net sentiment. And it's really pretty early on in this stage and the feedback we're getting on this name is the use cases are great, the efficacy's great. And I think it's one to watch out for. >> InfluxData, time series database. The other interesting things I just noticed here, you got Tamer on here, which is that little small green. Those are the ones we were saying before, look for those guys. They might be some of the interesting companies out there and then observe Jeremy Burton's company. They do observability on top of Snowflake, not green, but kind of in that gray. So that's kind of cool. Monte Carlo is another one, they're sort of slightly green. They are doing some really interesting things in data and data mesh. So yeah, okay. So I can spend all day on this stuff, Erik, phenomenal data. I got to get back and really dig in. Let's end with machine learning and AI. Now this chart it's similar in its dimensions, of course, except for the money raised. We're not showing that size of the bubble, but AI is so hot. We wanted to cover that here, Erik, explain this please. Why TensorFlow is highlighted and walk us through this chart. >> Yeah, it's funny yet again, right? Another open source name, TensorFlow being up there. And I just want to explain, we do break out machine learning, AI is its own sector. A lot of this of course really is intertwined with the data side, but it is on its own area. And one of the things I think that's most important here to break out is Databricks. We started to cover Databricks in machine learning, AI. That company has grown into much, much more than that. So I do want to state to you Dave, and also the audience out there that moving forward, we're going to be moving Databricks out of only the MA/AI into other sectors. So we can kind of value them against their peers a little bit better. But in this instance, you could just see how dominant they are in this area. And one thing that's not here, but I do want to point out is that we have the ability to break this down by industry vertical, organization size. And when I break this down into Fortune 500 and Fortune 1000, both Databricks and Tensorflow are even better than you see here. So it's quite interesting to see that the names that are succeeding are also succeeding with the largest organizations in the world. And as we know, large organizations means large budgets. So this is one area that I just thought was really interesting to point out that as we break it down, the data by vertical, these two names still are the outstanding players. >> I just also want to call it H2O.ai. They're getting a lot of buzz in the marketplace and I'm seeing them a lot more. Anaconda, another one. Dataiku consistently popping up. DataRobot is also interesting because all the kerfuffle that's going on there. The Cube guy, Cube alum, Chris Lynch stepped down as executive chairman. All this stuff came out about how the executives were taking money off the table and didn't allow the employees to participate in that money raising deal. So that's pissed a lot of people off. And so they're now going through some kind of uncomfortable things, which is unfortunate because DataRobot, I noticed, we haven't covered them that much in "Breaking Analysis", but I've noticed them oftentimes, Erik, in the surveys doing really well. So you would think that company has a lot of potential. But yeah, it's an important space that we're going to continue to watch. Let me ask you Erik, can you contextualize this from a time series standpoint? I mean, how is this changed over time? >> Yeah, again, not show here, but in the data. I'm sorry, go ahead. >> No, I'm sorry. What I meant, I should have interjected. In other words, you would think in a downturn that these emerging companies would be less interesting to buyers 'cause they're more risky. What have you seen? >> Yeah, and it was interesting before we went live, you and I were having this conversation about "Is the downturn stopping people from evaluating these private companies or not," right. In a larger sense, that's really what we're doing here. How are these private companies doing when it comes down to the actual practitioners? The people with the budget, the people with the decision making. And so what I did is, we have historical data as you know, I went back to the Emerging Technology Survey we did in November of 21, right at the crest right before the market started to really fall and everything kind of started to fall apart there. And what I noticed is on the security side, very much so, we're seeing less evaluations than we were in November 21. So I broke it down. On cloud security, net sentiment went from 21% to 16% from November '21. That's a pretty big drop. And again, that sentiment is our one aggregate metric for overall positivity, meaning utilization and actual evaluation of the name. Again in database, we saw it drop a little bit from 19% to 13%. However, in analytics we actually saw it stay steady. So it's pretty interesting that yes, cloud security and security in general is always going to be important. But right now we're seeing less overall net sentiment in that space. But within analytics, we're seeing steady with growing mindshare. And also to your point earlier in machine learning, AI, we're seeing steady net sentiment and mindshare has grown a whopping 25% to 30%. So despite the downturn, we're seeing more awareness of these companies in analytics and machine learning and a steady, actual utilization of them. I can't say the same in security and database. They're actually shrinking a little bit since the end of last year. >> You know it's interesting, we were on a round table, Erik does these round tables with CISOs and CIOs, and I remember one time you had asked the question, "How do you think about some of these emerging tech companies?" And one of the executives said, "I always include somebody in the bottom left of the Gartner Magic Quadrant in my RFPs. I think he said, "That's how I found," I don't know, it was Zscaler or something like that years before anybody ever knew of them "Because they're going to help me get to the next level." So it's interesting to see Erik in these sectors, how they're holding up in many cases. >> Yeah. It's a very important part for the actual IT practitioners themselves. There's always contracts coming up and you always have to worry about your next round of negotiations. And that's one of the roles these guys play. You have to do a POC when contracts come up, but it's also their job to stay on top of the new technology. You can't fall behind. Like everyone's a software company. Now everyone's a tech company, no matter what you're doing. So these guys have to stay in on top of it. And that's what this ETS can do. You can go in here and look and say, "All right, I'm going to evaluate their technology," and it could be twofold. It might be that you're ready to upgrade your technology and they're actually pushing the envelope or it simply might be I'm using them as a negotiation ploy. So when I go back to the big guy who I have full intentions of writing that contract to, at least I have some negotiation leverage. >> Erik, we got to leave it there. I could spend all day. I'm going to definitely dig into this on my own time. Thank you for introducing this, really appreciate your time today. >> I always enjoy it, Dave and I hope everyone out there has a great holiday weekend. Enjoy the rest of the summer. And, you know, I love to talk data. So anytime you want, just point the camera on me and I'll start talking data. >> You got it. I also want to thank the team at ETR, not only Erik, but Darren Bramen who's a data scientist, really helped prepare this data, the entire team over at ETR. I cannot tell you how much additional data there is. We are just scratching the surface in this "Breaking Analysis". So great job guys. I want to thank Alex Myerson. Who's on production and he manages the podcast. Ken Shifman as well, who's just coming back from VMware Explore. Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our editor in chief over at SiliconANGLE. Does some great editing for us. Thank you. All of you guys. Remember these episodes, they're all available as podcast, wherever you listen. All you got to do is just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me to get in touch david.vellante@siliconangle.com. You can DM me at dvellante or comment on my LinkedIn posts and please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for Erik Bradley and The Cube Insights powered by ETR. Thanks for watching. Be well. And we'll see you next time on "Breaking Analysis". (upbeat music)

>> From the SiliconANGLE Media Office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hello everyone and welcome to this week's episode of theCUBE Insights, powered by ETR. In this Breaking Analysis I want to lay out my 2020 predictions using insights gleaned from theCUBE blended with ETR spending data. You know, 2019 marked our 10th year of doing theCUBE. Over that time we've had the pleasure of covering nearly 1000 events and milestones, including the exit from the great softness of 2008 and 2009. You know theCUBE has extensively tracked a 10 year bull market. We've covered the era of data. We saw the rise and profitless prosperity of the big data and opensource Hadoop movement, where we predicted the practitioners, not vendors, would benefit the most from big data. We've covered many dozens of acquisitions including the 60 billion dollar chess move made by Michael Dell acquiring EMC, and a launch of hundreds of startups in flash, hyper-converged, big data, AI, blockchain, crypto, security and SaaS. There'll be other days to talk about theCUBE and review that, today's all about predicting the future, using spending data and insights from the thousands of interviews we've done on theCUBE. So let's get right into the ETR data and start with the high-level spending. Remember in October, ETR released its survey results and stated that we're coming out of a multiyear investment cycle in digital transformation. Enterprise IT buyers have learned what works, and on which technologies they're going to double down. They're now narrowing their investments on emerging technologies, picking those winners for the next gen tech, and at the same time, they're cutting redundancies from legacy players that they were keeping on as a hedge. Buyers are picking bundled suites from a handful of mega vendors, and solidifying their investments. We're seeing a multi-generational dynamic repeat itself, where buyers are creating a balance between the convenience of packaged offerings, i.e. bundles, and leveraging best of breed technologies to drive innovation. So on balance, the ETR data shows that a contraction in spending and tepid CIO sentiment is impacting both emerging vendors as well as traditional players, and these trends are most pronounced in the very largest organizations, which have always been the best bellwether in ETR's data sets. Let me share with you what one IT executive said recently that I think really sums up the situation quite well. He said, "ETR's findings mirror what we're doing today, "in that we spend most of 2018 bringing in "a lot of the new, core technology. "I believe what you're seeing now is not a lull in spend, "but an operationalization of what we've already purchased. "We're not spending on what's next yet, "because we're still rolling out what we just bought." This is from a VP of global IT at a large public manufacturing company, I said he, it could be a she as well. I think that she's summing it up correctly, and it reflects many of what customers on theCUBE tell us. Now, let's take a look at the macroeconomy. GDP growth is going to come in at about 2.3% this year, give or take. It's not going to hit the Trump administration's goal of 3% plus, but consumers are clearly powering steady growth. At least for now. IT spending should grow at about a point or two above GDP, so let's put that at, say, 4%. We're right in the middle of a Santa Claus rally, and the S&P is above 3200 today. Tech has been a powerful tailwind for stocks, and I think stocks, tech stock's going to take a breath in early 2020, but I expect continued strong growth in the economy and tech spending after a Q1 pause. I could see the S&P flirting with 3700 or even higher in 2020, and I think the tech sector will be a benefactor of that momentum, providing an impetus for continued growth. Here's my thinking on that. So much of 2020 is going to be about the election, and to me the election is going to be really about the economy. And I predict the economy is going to remain steady. And as the IT leader I quoted earlier said, customers will be operationalizing what's been previously purchased. Here's what's different in 2020. Tech projects have historically been very risky investments, and have required higher internal rates of return, IRRs, to get approved by CFOs. But the cloud has altered two factors. One, is that it's allowed more experimentation for way less money. The second is cloud, by shifting CAPEX to OPEX, allows for much more incremental, lower risk investments. So I think you'll see continued steady growth, powered by the cloud, which allows experimentation, and importantly higher hit rates of success. These successful projects will throw off cash for companies, and CFOs are getting on board because they realize it's driving innovation. They also realize that IT does matter, maybe not in the form that Nick Carr envisioned, but a new generation of IT that creates competitive advantage. This brings me to my first main prediction, which is the growth of cloud computing is going to moderate, but the cloud will continue to steal significant share from on-prem spending. Now the narrative that the pendulum is swinging back in my view, is a false narrative. Rather, the pendulum has swung, and the cloud is the underpinning of innovation. Now having said that, I do think we're seeing a bit of an equilibrium in spending, where buyers have identified those workloads that are going to remain on-prem, which is why you see, for example, AWS, Azure, and Google making moves in hybrid. Hybrid slash on-prem offerings. What this chart here shows from ETR, so from 2010 through October '19 survey on cloud spending, I had to block out the 2020 survey as it's currently in the field, I'm not allowed to show that data. The yellow line is market share, which in ETR parlance, as you remember, is pervasiveness, or mentions in their survey. The blue line is spending momentum, measured as net score, which essentially subtracts the percent of customers spending less from those spending more. The long, steady march of cloud, as you can see, continues, and there's no indication that it's going to abate. That said, the penetration of cloud has become much more meaningful, so share gains will be more hard-fought for the cloud guys. Now, you may see this as a non-prediction, or a hedge. It's not, let me be clear. Cloud will continue to steal share from on-prem, but share gains for the cloud vendors will be more difficult. Which brings me to part B of this prediction. What I'm showing in this chart is market share from ETR's January 2016 survey through October '19. And I'm showing spending for three on-prem vendors within AWS, Azure, and Google Cloud accounts. And I'm picking on Oracle, IBM, and Dell EMC as three prominent on-prem proxies, and you can see the steady decline in market share for these companies. And even though there's a bit of an uptick in October, I don't see this as a reversal. What's going to happen is that traditional on-prem vendors are going to step up their cloud strategies. Specifically with multicloud management. This is going to be the case with Dell, who's going to leverage VMware, and in the case of IBM, they'll try to take advantage of Red Hat in that multicloud game. Now both IBM and Oracle, who each have public clouds are going to dig their heels in, they're going to get customers in a headlock, and provide big financial incentives for them to use their captive clouds. All right, so with the high-level spending comments that I made earlier, and that cloud discussion that we just had as a backdrop, the question is, which companies will do well in the coming year? I'm going to call out five companies, that I want to highlight where the ETR data intersects what we're seeing on theCUBE. The prediction is these five players will do well in 2020, they're going to power through any downturn in spending, and they're going to thrive in the face of the cloud share shift. So the chart here shows data from the ETR October 2019 survey, and it lays out net score or spending momentum for these companies, that I am predicting will be winners in 2020 and beyond. And the five companies are UIPath, Snowflake, Databricks, HashiCorp, and Rubrik. Let me start with UIPath. They are the leader in robotic process automation. I think RPA is going to do well even in a downturn, because more companies will be looking to automate and save money, even in a softer climate. Automation Anywhere is another player in this space, they're doing pretty well, and I predict that UIPath will come out on top of this space, but both UIPath and Automation Anywhere can thrive. Next company is Snowflake, they are changing the analytic database market, and I've covered them before in previous Breaking Analysis segments. They are going to continue to grow nicely in my view. They are 100% cloud-based, and they participate in all popular cloud platforms. Now ironically, they compete with AWS RedShift, who continues to copy some of the innovations that Snowflake has popularized. But AWS and Snowflake are strong partners, so there's room for both companies to thrive. Snowflake especially, as they play in clouds other than just AWS. Which brings me to Databricks. We're seeing a new type of workload emerge in the cloud for modern analytic databases, where organizations are taking all this data that they have, lots of it in the cloud, and they're structuring it within a Snowflake database, or RedShift, and they're bringing Databricks tooling to the equation to be able to query and visualize the data in near real time. Now of course, as I say, AWS plays here with RedShift, and they're selling a lot of EC2, so they love Snowflake. All major cloud players are seeing this type of workload enter the mix, and it's going to be a strong area of growth in 2020 and beyond. Next thing I want to talk about is HashiCorp. HashiCorp is capitalizing on this trend toward cloud-native computing. The company provides opensource tooling for developers, and is all about simplifying application deployment independent of the underlying platform, whether it's virtual, container, or cloud. Five years ago, the players in the space that got all the attention on theCUBE were Chef, Puppet, Ansible and Salt, and today, especially again on theCUBE, you hear the most about Hashi and Ansible, and in fact we were at AnsibleFest with theCUBE, and we heard lots about HashiCorp, so they both complement and compete with the older players. To me, this reminds me of Spark within the Hadoop ecosystem. Hashi has raised about 174 million in VC, and as you can see they have very strong spending momentum in the ETR dataset, with a net score, as shown, of 63%. Now finally, I want to talk about Rubrik, which has been a consistent performer in the ETR dataset. They're trying to transform backup into data management as a discipline. They compete with established players in the data protection space, guys like Veritas, Dell EMC, IBM and CommVault. Now Rubrik is not the only new or newish player here, that's doing very well, Cohesity, who's relatively new, Veeam, which has been around for a decade, both doing very well and showing up strong in ETR surveys, especially Veeam, but Rubrik has been a consistently strong performer and has been outpacing the others, so I want to call them out. Look for these five to do very well in 2020, and into the next decade. So that brings me to my next prediction, I want to talk about Kubernetes. This prediction is twofold. Kubernetes is going to continue its strong showing as this data from ETR shows. This is Kubernetes' market share in the October 2019 survey, so Kubernetes spend had a 76% net score. So very very strong. But the other part of the prediction is that Kubernetes will become embedded into virtually every platform, and people will stop thinking about it as a separate market. Already today, there's little discussion of the idea of a Kubernetes distro, I mean Anthos is an example of a Kubernetes stack, but it can be run in the cloud, it can be run on-prem, anywhere. VMware Tanzu, Microsoft Azure Arc are other examples, they're really not stacks, but they're management platforms that can manage anyone's Kubernetes instances. I like to think of this as kind of like flash. You remember when everyone looked at flash storage as a separate market, well today it's just embedded everywhere. And that's kind of what's happening with Kubernetes. So spending momentum is going to continue to be strong, but by 2023, Kubernetes will be ubiquitous, and not really thought of as a separate entity. All right, for my next prediction, I want to talk about cybersecurity. I did a Breaking Analysis earlier this year on security, and I showed this slide. And as you can see, I've added a little something in the red stars for my prediction. So what this chart shows is two views of net score, the left-hand side shows the ranking by net score, and you can see CrowdStrike, Okta, Shape Security, which was just, by the way, bought by F5, that was an announcement. Twistlock, which is now Palo Alto Networks, and you can see the others down that list. On the right-hand side is net score, but it's ranked by shared N, which is a measure of pervasiveness in the ETR dataset. What I've added is the four star companies, that is those companies that have both spending momentum and are pervasive in the ETR survey. So the prediction is 2020 we'll see the four star companies maintain their position and gain strength in 2020. These include established players with portfolios where they can bundle like Microsoft, Cisco, Palo Alto Networks, Splunk, Proofpoint, Fortinet, and CyberArk Software. And then the newer companies like Okta and CrowdStrike are going to continue to gain share faster than the larger players. Now you also may see companies like SailPoint, Illumio, and SentinelOne emerge as four star companies over the next 24 months. Now the one company that's not on this list that is a major player in security is AWS. AWS is the cloud security leader, and is in a category all by itself in many ways. As I said in my security segment earlier this year, the market is incredibly fragmented, and it's going to stay that way. Each year we look back and say "Did we spend more on security?" and "Are we more safe?" And every year the answer is yes, and no. And 2020 will be no different. Now if you look at the various data sources, we spend approximately 120 billion dollars annually on cybersecurity. The worldwide economy is about 85 trillion in dollar terms, so on balance, we spend about .14% on securing our economy, so we're barely scratching the surface. The market is going to remain highly fragmented, the rich will get richer if they have four stars, new players will continue to enter the space, and M&A will continue to be robust. Now if you exclude my long shot that the S&P will break through 3700 next year, that makes nine predictions. For my 10th and final prediction, I don't have hard data from ETR, but I have a strong opinion on this, and that is that the edge will be won by developers, you've heard me talk about this before. Specifically, platforms like Outposts, which are essentially programmable infrastructure which bring a cloud development platform to the edge, is how that space will evolve. It won't be won by shoving traditional servers and storage boxes out to the edge. Rather, it will grow by coders being able to build new applications and workloads on top of infrastructure as code. Okay, that wraps up my 2020 predictions. I'd very much like to hear your opinion, so you can leave your thoughts or your own predictions in the comments sections of this video, or go to my LinkedIn posts. You can reach me @DVellante on Twitter, love to hear your thoughts. And don't forget, this series is available on iTunes, Spotify, and other podcast platforms for your listening pleasure. I'd like to wish everyone a safe and restful holiday season and a prosperous, healthy 2020. Enjoy your families, enjoy this time, this is Dave Vellante, signing out from the latest episode of theCUBE Insights powered by ETR, thanks for watching, everybody. We'll see you next time. (techno music)

>> Live from London, England, it's theCUBE. Covering .NEXT Conference Europe, 2018. Brought to you by Nutanix. >> Welcome back, I'm Stu Miniman, my cohost Joep Piscaer, and you're watching theCUBE here at Nutanix .NEXT, London, 2018. Happy to welcome back to the program the co-founder, CEO, and chairman of Nutanix, Dheeraj Pandey. Dheeraj, thanks so much. Congratulations on 3500 people here at the third annual European show, and thanks so much for having theCUBE. >> Thank you, my pleasure. >> All right. So, Dheeraj, first of all, you got a lot going on. Big company event here, last night you announced the Q1 2019 earnings. I guess, step back for a second. Nutanix is now, nine years since the founding, you've been public now for a little while, you got to be feeling good. The company's reached a certain size, very respected in the marketplace. So how are you and the team feeling? >> Yeah, well, I tell people that it's actually fun to be a public company. And obviously there is a cost to being a public company, because you're on a quarterly treadmill, in some sense. But Wall Street also keeps you honest. Just like Main Street keeps you honest on quality of product and customer service, Wall Street keeps you honest on spend and what does it really mean to grow at scale. So I like the fact that there is two good streets that are keeping the company honest. And it's really fun to think about capital allocation, one of the big things as you grow. I mean, you're going to spend more than a billion dollars this year alone. How do you allocate capital wisely is something that I think a lot about in (mumbles). >> Yeah. So, at this show, you kind of change some of the positioning of the portfolio. It's the Core, Essentials, and Enterprise, and right, that asset allocation, when I look at Essential, Xi Cloud, there's all these different pieces, some of them through acquisition, some of them created internally. You need to be careful that you don't over-commit, but when do you decide to kill stuff or keep it going, so you got a lot of plates to spin now, a lot more than you did a year or two ago. >> Yeah, absolutely, and it's not just product development. It's also marketing and sales and G&A. I mean, there's other departments we need to think hard about. Like, how do you create brand awareness for these new things? How do you do demand generation? How do you have a specialty sales force? All those things have to be considered, so, nine years, it's been a journey, but it still looks like it's nothing. And we're still a very small company, and we need to think hard about the next five years, in some sense. >> Yeah. So, one of the metrics you gave Wall Street to be able to look at is, what percentage of customers are using more than just the Core? So the Essentials or the Enterprise. And if I got it right, it's up to 19% from 15%, the quarter before. I wonder, is the packaging, how much of that is for Wall Street? Somebody cynically might look and be like, hey, is the Core market slowing down? And therefore you need to expand. We've all seen public companies that need to go into adjacencies, and shouldn't you stick to your knitting? You've got a great solid product with leadership in the marketplace. >> Yep, absolutely. Also, look, we are not bundling them in SKUs so we cannot force customers to actually buy them. We're not doing financial engineering of dollars, because these not SKUs or bundles. This is a journey which is mostly advisory, in some sense. This is how you should start, this is how you should go, and this is advisory for our sellers and our buyers and our channel people. Everybody needs to say, look, have the customer go through the journey. If you had to do what he just said, probably would've bundled them in SKUs and then allocated capital to one or the other. I think, to your other comment about just sticking to the core, Juniper stuck to the core. And many companies out there which just stayed as a single-box company, they stayed at the core. And eventually you realize the market has moved faster than your core itself. So there's this business school thinking, they call it the Icarus Effect. The Icarus Effect is all about, I'm so good at what I do that I can fly to the sun and nothing will happen. But you don't realize that Icarus, the wings were actually pasted using wax. And you go to the sun, and the sun actually melts the wax. So companies like FGI and SUN, Norca, many companies just stuck to one thing. And they couldn't evolve, actually. >> Obviously you're not sticking to the core alone, right? You're expanding the portfolio, I mean, you're not just an infrastructure company anymore. You do so much on top of the infrastructure on-prem. You have so many SAP services, so how do you manage the portfolio in terms of the customer journey? Because there's so much to tell to a customer. How do you sell it? How do you convince a customer to go from Core to Essentials to Enterprise? >> The most important thing is leverage. Is Essentials going to leverage Core, and is the Enterprise going to leverage Essentials and Core itself? Case in point, Files is completely built on top of Core. So every time somebody's using Files, they're also using Core. If you think about Flow, it uses AHV underneath. Frame, and case in point. When it's going to deliver desktops, it's going to use Files because every desktop needs a filer as well. And then when Frame delivers desktops on-prem, it's going to use all the Core. So the important thing is how they don't become disparate things, like they're all going in their own direction, is there a level of progressiveness where you say, well, if you're using the Enterprise features, a lot of them actually go in and drag in the Core as well as Essentials. So how do we build that progressive experience for the customer, where each of these layers are actually being utilized, is the important piece. >> Dheeraj, so, we're talking a lot about the expansion beyond the Core. But there was a pretty significant activity that your team did on Core itself. So the first time I heard about it, it basically said, we're doing an entire file system rewrite. Think of it almost as AoS 2.0. Now, from a product name, I believe it's 5.10, so I might have trouble remembering which release it was, but talk about what went involved in that. Obviously a lot has changed in the nine years since you created it, so. >> Absolutely. Yeah, yesterday in the earnings call I talked about it too, that people scoff at Core infrastructure. Like, oh, it's going to be a commodity because it's good enough infrastructure. But then I argue that there's no such thing as good enough infrastructure. And companies struggle when they don't focus on infrastructure itself. It's like food, shelter, clothing in the Maslow's hierarchy of needs. If you don't get that, then there's no point self-actualizing it. So, Core infrastructure completely destroys network insecurity. You got to get it right. I mean, look at Oracle, how it's struggling with IaaS. And look at Google, they're trying to figure out how to make it relevant for the Enterprise. Azure has like three or four different stacks for infrastructure. One for old 265, one for Azure DB, one for Azure, and now they're rewriting it for Azure itself. VMware has three different infrastructure stacks. One for three tier, where they are very happily, they're saying, look, let EMC, their NetApps actually are underneath, and Cisco's, and stuff like that. And then they have this software-defined infrastructure with commodity servers. And finally, they have VMware-enabled AWS which is going to use AWS services. So now you have three different forks of your core base, in some sense. And for us, what's important is how we use a single core base for everything. So architecture matters. I was arguing yesterday in the earnings call that good enough infrastructure is an oxymoron. You need to get core right before you can go and try to live the other layers of the Maslow's hierarchy of needs, actually. And that's why we went back and thought about, as the workloads were growing and increasing, and we had mission-critical stuff in memory databases, what do we need to really do about the way we lay out the data and lay out the metadata? So as you know, metadata is at the core of anything in systems, and especially storage systems. And the metadata of our erstwhile system was actually very completely distributed. And then we realized that some things can be local, and some things can be distributed, and that's better scale. Again, going back to this understanding of what things can be represented locally for a certain disk versus what things need to be global so that you can go and say, okay, where is this data really located? What drive? But once you go to the drive, you can actually get more metadata. So, again, you're getting more progressive scanning. So at the end of the day, our engineers are constantly thinking about performance and scalability, and how do you change the wings of the plane at 35,000 feet? It's a very big challenge. >> So that's one of the issues, right? So you're still focusing on your own infrastructure layer, right? But many customers do already have presence in a different hardware stack, or the public cloud, or some service provider. So not everything runs on your platform. So how are you planning to deliver the services ensemble to customers that don't necessarily run on AoS? >> So that's the multi-cloud journey, which is basically the enterprise journey of our customers. I said this yesterday in the earnings call as well, that all our services should be available both on-prem and off-prem. This idea of a VPC, that is multi-location, is what hybrid cloud is all about. So how do you get a virtual private cloud to really span multiple clouds in multiple locations? I think you saw from the demos today of how you're really running all of AoS on top of GCP virtual infrastructure. And in the course of the coming year or two, you'll see us do the same thing, BEM at Amazon, BEM at Azure. Because they deliver servers in their data centers and that's leverage for them because they've already gone and spent so much money on data centers that it's easy for them to deliver a physical server that our software can run on top of. And if people are not using AoS, they'll still want to use things like Frame and Beam and COM and other such things like that. >> Yep, Dheeraj, what are you hearing from customers and how do you think of hybrid, as it were? You know, a lot of attention gets played to things like Azure Stack from Microsoft from VMware on AWS, I know you've got some view points on this. >> Yeah, no, in fact, so if you go back five years, hyperconvergence had become a buzz word maybe three, four years ago. And there were a lot of companies doing hyperconvergence. And only one or two have survived and it's us and VMware, basically have survived that. Everybody else has a checkbox because the customers said well, what about that? Will we have a check box? But, it's really about operating system sort of hyperconvergence. And it has to be honest. And it has to really blur the lines between compute and storage and networking and security. I think hybrid needs to be honest and one of the killer things that hybrid needs is blurring the lines between networks, blurring the lines on storage so you can do one click replication and one click fail over. So a lot of those things have required a lot of innovations from us. That's why we were delayed in Xi. We didn't want to just put up data centers and just like that. I mean, if you go back in time to many hardware companies were putting open stack data centers and calling it their new cloud in response to Amazon. And VMware tried vCloud Air. And they had a charter to go spend money. They weren't going to spend a ton of money on hardware. Without even knowing that the cloud is not about data centers. Cloud is about an experience. It's about eCommerce and computing coming together. And you have to be passionate about a catalog. You know, the marketplace, the catalog so that people can really go and consume things from a catalog. I think that's what our experience has been that. Look, if you don't think of it like a retail giant or retail customer, which is what Amazon has done such a good job of. You know, they've thought about computing as an eCommerce problem as opposed to as a compute storage networking problem itself. And those are the lessons that we have learned about hybrid just as much >> Alright, you did a nice job on the keynote, laying out that Nutanix, like your customers, you're going through a journey. The crawl-walk-run, if you will. We got a tease in the keynote this morning about something cloud native. Where you're going. Final question for you is as you look at the company, you said it's still young, where are your customers going, where are some of the things they need to work on, and that Nutanix will mature with them as we look to move forward? >> Well, I mean, look. I think everybody knows where customers are headed. They're questioning who fulfills the promise because the requirements are all the same. They all want to go and use next generation infrastructure, they want to modernize their data centers, the infrastructure. They want to use some things that they want to own, some things they want to rent. The question is, where is the best experience possible? And by that, I mean not just systems experience of hybrid clouds but also customer service and having an ever-growing catalog and being able to deliver things for developers and devops. And technology will come and go. Two, three years ago, the Puppet and Chef were the hottest thing on, now today, it's Kubernetes. Tomorrow, it's going to be something else. It's the fact that what you see is what you do. And what you do is what you say. In our business, it's about integrity. I was arguing about this yesterday in the earnings call, as well, that building business software is a little bit easier. I shouldn't trivialize it as much but if people use business software, they can work around weaknesses of business software. But if you are in the business of infrastructure, applications cannot work around weaknesses of infrastructure. So integrity matters a lot in our space, actually, and that is about great products, great customer service, fast innovation, recovering fast, being resilient. Those are the things that we focus a lot on. >> Alright, well, Dheeraj, thanks again, always. We didn't even get to talk about the width part, the fourth H that you've been talking about for the honest, humble, and hungry. So, thank you. Congratulations to the team and always appreciate you having on our program. >> My pleasure. >> Alright, for Joep Piscaer, I'm Stu Miniman. Stay with us. Two days live of wall to wall coverage. Thanks for watching theCUBE. (light music) >> I have been in the software and technology industry for over 12 years now. And so I've had the opportunity as a marketer.

>> Announcer: Live, from Las Vegas, It's the cube, covering VMWorld 2017, brought to you by VMWare and its ecosystem partners. (techno music) >> Welcome back, I'm Stu Miniman, joined by Keith Townsend, welcome back to the program, a multi-time cube-along. Patrick Osborne, who's the senior director of product management with Hewlett-Packard Enterprise. Patrick, great to see you. >> Great to be back, thanks for having me. >> Yeah, uh, what number VMWorld is this for you? >> Oh gosh, uh, it's, it's, I can't count it at this point, too many. >> Yeah, it's like I've been working with VMWare for 15 years, it's the eighth one of these for me. Keith, I know you've been few, so what's your take so far, the show? Big ecosystem, a lot of news going on. What do you think so far? >> Yeah so I mean, from my perspective, VMWare has been such a huge ecosystem partner for HP for forever, y'know? It covers everything from, y'know, from our perspective on the compute networking, storage side, certainly services. So um, y'know for me it's always good to catch up with, y'know, old colleagues and kind of understand what's going on in the industry. A lot of talk today around private cloud, multi-cloud, y'know, what people are doing around automation. Y'know certainly a lot of things around software defined, software defined networks, software defined storage, so uh, a lot of good topics, um, it's always good to see the customers here too, as well. >> Yeah uh, the joke a few years ago was VMWorld became storage world, so uh, y'know, in your space of availability, and data protection, y'know, and I walk through the show floor, HP's got a big boot but I see a lot of companies that are attacking different angles of that. You brought up the cloud being a, y'know increasing piece. >> What's top of mind, of a customers that are coming to you, and what sort of things are you working on these days? >> Yeah so, um, from our perspective on the storage and data management landscape, I think that you see a lot of vendors in the space right now. Some of them are certainly part of our ecosystem, you see folks like Veem and, y'know, other folks that we partner with out on the floor. There is an increased look from the customer perspective on availability. It's, the segment's changing, the requirements are changing. I don't think people are tackling availability in the same way as sort of traditional data protection architectures. So we see customers, especially when they're looking for certain inflection points in their infrastructure, like, I'm going to go to all flash, or y'know, deploy some new storage. They're definitely rethinking the way they're doing availability from an application standpoint. So we're uh, we're trying to y'know, meet those market demands through our own technologies, as well as having a pretty robust ecosystem here that we barter with. >> So a lot of talk, not just at this show, but at previous HP shows about hybrid IT. It's obvious the data center isn't going anywhere for the majority of customers, but we have the complexity of cloud. How does cloud impact, practically, data protection, data availability. >> Yeah so uh, from our perspective it's certainly an opportunity, right, to help customers out. We have a, we've, y'know, from a strategy standpoint, we've put a couple solutions and things into market that we hope address some of these cases. So y'know, when you talk about Nimble cloud volumes, right, being able to have your data in a co-located facility very close to, y'know, public clouds so you can do some compute arbitrage, and ultimately be able to, y'know, control your data. And then we do other things for example, Store one's cloud bay, being able to back up to the cloud, which is a pretty established use case. I think from our perspective, helping customers make that move in terms of, um, y'know, you can set up the data path, and make the bits move, but when we talk to mid-size, especially large enterprise customers, the governance around that, I think is really important, And the user experience, to make sure that what you're sending out to the cloud is certainly protected, it's audited. We've even had customers coming to us, we just had a big customer that you've had on here before, 21st Century Fox, right, a big customer of HPE talk last week about, I want to back up workloads that are in the cloud to the cloud, right? There's not a lot of great tools for that today, and I want that audited, and I want y'know, a paper trail around that for their own internal uh, capabilities. So I think there's a lot of opportunities in the space. It's very nascent. >> Yeah, Patrick I think you're bringing up a great point. We were talking a lot at this show, kind of the multi-cloud world. I've got my maturation of what's happening in my data center, deploying a bunch of sass on one or multiple public clouds. And there's certain things like security or y'know, data protection availability. I need to get my arms around all of it. HPE's looking to fill some of those y'know, gaps, and help customers, y'know. What's the overriding story in y'know how you're not one of the big three public cloud providers, but why does HP have a position in this discussion, and maybe you can help us kind of round out that story a little. >> Yeah so, we have a position in that discussion because of, y'know, we are very large infrastructure provider to a lot of customers, right? In terms of providing on-prem, hybrid IT experiences. From a public cloud perspective, we're very sort of, public in our strategy of not having a public cloud within HPE, but we certainly partner with folks and we've got a very long standing partnership with Microsoft. We come to market with things like Azure Stack, and we have a number of integrations we do with things like Nimble, and um, in that area we resell y'know, Azure, from an HPE standpoint. So we're really looking to provide y'know, a full experience for customers in that space. And y'know, the other day, like you said before, people are still going to buy and deploy in their data center, right? But, they want to buy and deploy in their data center with the thought that um, y'know multi-cloud is going to be a possibility, and they want to have the infrastructure that's going to allow them to do that. So what we're doing is incrementally, in our product portfolio, I care about storage, right, is to be able to provide those experiences. I buy a 3PAR all flash, I want to be able to tier that or back that up to the cloud. I have Nimble, right, I want to be able to replicate that to a co-located provider that provides Nimble cloud volumes, and then assign compute to and from the cloud, right. So a bunch of things that we want to get customers ready for, and make it easier for them. >> So can we talk a little bit more about that Nimble story? Y'know, the 3PAR, we understand it. It is, covers a great depth of use cases in enterprise, where does Nimble fit in the strategy? Yeah, um so we're super excited to have Nimble in the portfolio for three reasons. They have a great team, number one, they bring a really good go to market engine, and the sales team, y'know, with that, and they have great products. So from the product angle, which we're very interested in, is a couple different areas. Infosite, predictive analytics, right, is something that we want to apply to our entire product line, hands down. So the things that they do around VM Vision, right, with um, with VMWare, we want to apply that to 3PAR, right, and essentially give the people the simplicity that it takes to manage a very large virtualized environment. They have a lot of things that they've done that are very unique. I mentioned Nimble cloud volumes before, that's a use case for primary storage, but could easily be extended to backup, data protection, object storage, right, as not only just a technology provider, but as a way to price it, consume that type of storage. And then they also bring a number of things around, in the availability space, which we find is very interesting. Secondary flash, right. So you think, all flash as high performance maybe a higher cost, right? But certainly is going to help you with that application acceleration. They just, we just released the Nimble secondary flash array for workloads that are tech-dev cloned workloads, y'know, things you can automate, and that you need some performance on it. But it's more performance than your backup storage, not as much cost and not as much storage as your primary. So think about secondary flash as flash for secondary workloads. Very cost optimized. More performance, maybe a little bit more expensive than your backup tier. So there's a lot of things that they bring to the table from a technology standpoint that we want to take advantage of. >> Patrick, HPE's got a broad portfolio, but still to meet all the needs of the customers, especially in like, the divergals niche ecosystem, acquires a lot of partnerships. Where are the, kind of the deep integrations that your team's been doing, where are the places where customers have been asking you to kind of pull things in, and any solutions that you want to highlight specifically? Yeah so, um, I think more and more what you start to see is portfolio vendors, like HPE, they bring great technology that we build organically, or that we go and acquire. I think one of the big things that customers rely on us as well, that doesn't get a lot of air play is that we bring in a vetted ecosystem to a customer. Y'know, so the whole kit and caboodle, from compute networking storage, services to bring that all together, and an ecosystem that's supported, and we basically HPE stamp of quality and support behind that so, y'know when it comes to VMWare, obviously this has a huge ecosystem. So we do a lot with, y'know, innovating with VMWare. I mentioned Nimble, VM Vision, things we're doing there to make hypervisor environments quite a bit more easy to implement for customers from a storage angle. You talked to Jessie from the SimpliVity standpoint. We do a lot around data protection, with certain things, with 3PAR, Nimble. So there's a lot on integrations that we do in, for VMWare specifically, and then in other areas of the portfolio, especially automation, right. So we've got fully supported solutions, I think we've got one of the best docker implementations for storage with Nimble. Huge partnerships with Puppet and Kubernetes, and Sheb, all these great things around the automation side. So when we go out and partner with somebody, we're going to go provide a whole solution, a complete solution to a customer that's vetted, RA's, supported, so from my perspective, partnering is actually one of the most important things we do at HPE. >> So, from a customer's perspective, HPE hugely important, key industry player for most CIO's, you guys are still very very trusted in that area, you have a huge ecosystem, huge portfolio, what should CIO's, CTO's, high level architects be focused on at this point? What's like, the consistent theme that you're telling your customers you really need to pay atttention to this part of the industry? >> So, from a corporate perspective, we've got a couple of things that we're working on, right. So we talk about hybrid IT, right. And that sort of transformation from, I would call it established methodologies of application and development to y'know, sort of new style. And we're definitely helping customers along that journey, and a lot of it is around bringing this vetted portfolio and ecosystem along with the services. So the services I think is one thing that, um, y'know HP is very unique in the fact that we've got a very very broad set of services, in terms of, y'know, we can go and help CIO's and CFO's and CTO's understand y'know, where are you along that journey, right. All the way to implementation, I think one of the things that we're going to be very very focused on over the next couple of years, is providing everything in our portfolio as consumption based pricing, right. So all the things that you like about the cloud, right, the things that are implied there are elasticity, right, agility, consumption based. You're moving from a cap-ex to an op-ex model, making that more predictable. So we want to be able to model that, and provide those experiences. Definitely one of the things that we're really focused on in HPE is IOT in the edge, right, so, that's a very fundamental part of our business that we're going to be looking at to make a lot of investments in big data. Certainly, some of the assets are on Edgeline and Aruba, and all the implications around security for that. So those are some of the key areas that we are, y'know, we talk to CIO's every day about. >> Patrick, from an availability and data protection standpoint, what does something like IOT mean? I have to think, we're not going to store all the data, lots of it's just going to be processed at the edge, we're talking a lot about edge so, I'm curious, what are the things that you're looking at, maybe start there, I think about like, containers, or a lot of times going to be something that is going to fit at that kind, maybe even serverless at the edge, so y'know, I seem to think back, y'know, when we talk about like oh, we're going to go to object store and therefore the way I do everything changes. So y'know, are we going to, couple years from now, is this going to be a very different discussion? >> Well I think, yeah, it's an interesting topic, right. When you talk about that volume of data, right, and the fact that it's very dispersed, right, being able to do, apply traditional availability techniques to something like that is um, it's difficult, it's next to impossible, right? So, um, y'know what we see is customers buying, in these type of ecosystems, you're not buying along horizontal lines, right. You're not buying a specific server vendor, or a networking vendor, or y'know, a storage vendor, and then going best of breed, trying to integrate that yourself. A lot of these things are vertically oriented now in terms of you're buying a stack, y'know, from a portfolio vendor or going to a service, y'know, an integrator. And I think with he volume of data that it takes to, to do some of these implementations, so we have very large customers, autonomous cars, y'know big, big implementations of Hadoop and analytics. I mean a lot of that stuff is built in. I think one thing you're starting to see is that, those types of deployments are outstripping or outpacing, y'know running away from the support of the traditional IT folks. So we have customers that are operationalizing, very large Hadoop customers for example, who don't have methodologies for backing that up and replicate it, so I think there's a lot of technology that needs to catch up with some of these implementations, we see it all the time. So, y'know, I think there's different techniques from a technology standpoint. Y'know, when we try to approach these from a customer perspective, we want to provide a full stack for edge, IOT, um, and but, from a data protection availability standpoint, that's a difficult problem to solve. >> Stu: Well Patrick Osborne, always a pleasure to catch up with you, thanks for all the updates here. Looking forward to tracking some of those, y'know, emerging areas that you were just-- >> Yeah, I look forward to talking to you guys in Discover in Madrid. >> Absolutely, so The Cube, so many events, check out siliconangle.tv, or actually thecube.net is where you're going to be able to see everything. Nice shorter url, you're going to keep the branding of The Cube, for Keith Townsend, I'm Stu Miniman, stay with us, watch more coverage here still to come. VM World 2017, you're watching The Cube. (techno music)

>> Voiceover: Live from San Francisco, it's The Cube covering DevNet Create 2017, brought to you by Cisco. >> Welcome back everyone. We're live here in San Francisco, The Cube's exclusive coverage of Cisco's inaugural event DevNet Create. I'm John Furrier with SiliconANGLE. My cohost Peter Burris, general manager of wikibon.com research. Next guest is Damon Edwards, co-founder of Rundeck. He's been on the crowd chats and does event DevOps and the enterprise, the content chair, co-founder of Rundeck, welcome to The Cube. >> Thank you. >> Great to meet you. >> First and we've >> Good to be here. been in line chatting away. Quick though from you, Cisco getting into DevOps, the conversation's pretty straight forward. We think it's awesome that they're doing this. >> Damon: Yeah. >> Good direction, right in line with DevOps, things looking good, middle of the fairway. What do you do next? >> Damon: Yeah, I mean ... >> Where does Cisco take the ball from here and take it home? >> You know, I think it's just more of the same. I think that you can't underestimate the split that's happened in the DevOps have and have nots, that sounds kind of odd, but a lot that we talk about are the unicorns, the high flying special built organizations that really grew up with this in the last five to 10 years. I think where Cisco really plays is in the other 99% of commerce of the world, which is the core classic enterprises. DevOps really hasn't made that deep of a dent yet into that, I guess we call it dark IT, right? The rest of the world the people have to deal with 30 years of, in some places, different technology, skills, acquisitions, mismatches, all the legacy, all the bureaucracy of large organizations, and Cisco has a path into that and a voice of authority into that. So happy to see they're putting such emphasis on these DevOps and Agile ideas and help to drive them into that. >> And they got the app dynamics things going down too, that big acquisition. Their slogan is Where Apps Meet Infrastructure. We always just talk about infrastructure as code. They're talking about programmable networking, which is the same thing. We want more programmable. >> Damon: Right. So how do they make that transition to this new operational model? I mean, networks used to be very fragile, set in stone. >> Damon: Yeah. Someone used to joke, "Hey, they're called NoOps," because they would say no to everything from a developer standpoint. >> Damon: Sure. >> How do they transition from NoOps to a new operational model that's agile and adding value? >> The bigger issue here is that Ops is getting squeezed, right, so it's an existential crisis for them. The reason why they were always the no folks is because they're always spending their time protecting that capacity because they're overrun, they're always outnumbered, first of all, then they're being overrun with all these tickets of new stuff coming in plus incidents happening in the middle, the capacity has always been an issue. Now with this new DevOps, and really digital transformation inspired pressure, it's go, go, go faster, open things up. At the same time the same business folks are saying from the other direction lock things down, don't be the next hack. Don't be the next breach. Don't be the next major outage, right? >> John: It's really a lot of pressure It's a pressure cooker. >> Right. >> So they're squeezed. So the biggest with crisis, how do we relieve that, how do we relieve that pressure? And the key technique is to be able to actually allow other people to participate in what traditionally was only operations tasks. If you allow me to go one step ... >> John: Democratization of operations in a way. >> It is, and what they're doing, you see the organizations that really nailed this, they're dividing up the idea of an operations procedure. It used to be everything was in operations. You defined it, you ran it, and you have all security and management audit control over it. In these new ways what they're doing is they're breaking it up into three pieces to say the ability to define these automated procedures, the ability to execute them, and the ability to have that management control and oversight, let's make those in three discrete parts and let's move that to where the labor capacity makes the most sense. By doing that, operations can free up those bottlenecks, start to decouple more, allow the rest of the organization to move a lot quicker and not be in that horrible position of being squeezed to death and having to tell everybody no. >> There's a number of reasons why it's happening. Sorry. One of the key ones is that, and it brings us back to the Cisco conversation we're asking about this, is that is used to be that operations was tied to a particular asset. The server more often than not. And so a single individual could pool all those things together because a single individual, or single group, had control over virtually all the resources >> Damon: Right. >> that were a part of that. Now we're talking about applications that are inherently distributed, and so we can't look at the process of operations in the same way. This comes back to Cisco. Does the world need to think more discreetly about these new highly distributed, deeply distributed, applications differently, and is that going to catalyze the diffusion of more of these high quality DevOps principals? What do you think? >> Yeah, it has to. If you look at the business driver, which is this digital transformation, a lot of people scoff at because it's like wait, is this 1999? You need a website? What are we talking about, right? But you realize what it is is saying all these disparate systems we used to have, right. I could get my cable bill, but it's just online, it's just a PDF of what they send to the printers, right. But now on it, everything I could do when I call up the customer service agent, I want to do it through my phone or I want to do it on my laptop, and that means all those formerly distinct systems that lived in different windows on a customer service agents desktop and after the little things to check the router status blew up, well I'll just talk past it, right. But now it's really going to matter in this digital world. The business is driving that integration, so where things don't live in isolation anymore, and because of that the complexity and this distributed nature of these services is rising. >> John: Yeah. >> And when that that happens, that makes the operations inherently more difficult and just contributes to that squeeze even more and we got to find a way to relieve that. >> Great point and great analysis. That just picked off what we were talking about on our intro package of the redefinition of what a full stacked developer is. >> Damon: Yeah. >> Now full stack implies you're talking about a distributed application model where there's no isolation anymore so you could almost argue that that's going to be obsolete. It's a full horizontal developer. >> Well logic used to be full stack, but how they connect will be different. >> Which just brings up the notion of, okay, things were in isolation >> Right. >> built to the database, now I go down the network, now a whole new developer category potentially is emerging. Do you feel the same way? >> Damon: Yeah. >> I mean, we're speculating. We don't actually know. >> Sure. I mean, if you are Netflix, who prides itself on it's ability to go out, pay top of market, which means they are the top of market, and attract the best talent, only one can win that game. For everybody else in the world, this idea of we're going to have these polyglot, super human, I-know-everything engineers, it's never going to happen. We have to find a way to use our systems and our processes to allow that kind of integration to happen, and allow those people to define the control procedures and policies for the things that they know about, and then allow that all to integrate to where then we can have other folks operate it and run it. Again, that idea of moving those part around to where we can best take advantage of the labor, otherwise you're just ... You're never going to find it. Go to any conference, NASA DevOps Conference, and ask people how many LinkedIn spam messages do you get a day because the word DevOps is in your profile? >> Yeah. >> Everybody just laughs because it's dozens. You're never going to have that idea so you have to build the systems to recreate that full stack capability. >> And have people that have access to be one, rather than super human that becomes democratized at that level. >> Damon: Yeah. >> It's interesting. One of the things that you guys did at the DevOps Enterprise Summit, I know you were in the content chair. >> Damon: Sure. >> I made a note here for my ... Make sure I get this question to you, was I like this thing you guys touched upon. Is DevOps best left to grow organically or is there a growing need slash desire for an agile manifesto? (laughs) The top down, do the manifesto, or organic ... Thoughts? >> Yeah, I'd say no, because what DevOps is is a series of problem state- It's an umbrella over a bunch of problem statements and a bunch of solutions that keeps evolving. This is why the Devs conferences are so interesting because it's practitioners talking about what's worked for them. I feel like at the highest level, if you really need to have a definition, go ahead and read the Phoenix project or the DevOps handbook. They've done a great job of collating all of that, but at the end of the day it's not one thing. It's not a single practice. There's no single thing you can do to say I'm going to transform a major global financial services company into a fast, nimble operation. There is no one thing. It's a series of things that you have to try over and over again. Look at DevOps as a movement where you can learn from practitioners, apply it to your own organization, see what happens, report back, try some new stuff, and so on and so forth. >> So you could basically have a manifesto, but it's really just more of marching orders. Organically, it has to form on its own. That's basically the same. >> I think there already is. >> You could say hey we have a manifesto, but it's not like this is the playbook. You can get >> Damon: There is >> the handbook to learn. >> no playbook. >> Exactly. Okay, cool. Well, appreciate the insight. Let's talk about your business. What do you guys do? >> Damon: Sure. >> What are some of the things that Rundeck's doing that you're the co-founder of? Share a little bit about the company. >> Yeah, Rundeck is at the what is it, it's an orchestration and scheduling platform and it's used by operations organizations. Generally from large startups, but also large DevBox unicorns, but also a lot of large enterprises. What they're using it for is for defining and improving their operations procedures. What happens after deployment? Where do we define all the procedures to manage all these disparate systems, all these islands of automation. Chef and Puppet was the hottest thing around three years ago and now it's Docker and Kubernetes and everything else, and now we still have our old power shelf stuff, our late logic over there, some OpSquare stuff over there, so what are we going to do? We need a way to define the procedures, expand all those and allow people to participate in that operations world so they can relieve that crunch. We see a lot for automating the creative standard operating procedures like classic Runbook automation, with a next generation twist, we'll say, but we also see a lot of self service operations, meaning that let's let other people participate. Let's let developers define these procedures as Rundeck jobs, and then let operations vet them ... >> That's where you're talking about the operational being relieved a bit. >> Yeah, you have to. You can't just say there's one little group here that's going to deploy and run all of these things in this world. We have to let other people participate in that. Not just for deployment, which is big in the DevOps world, but for what happens after deployment that nobody wants to talk about. All the escalations, all the interruptions, all those problems, Rundeck really plays in that area help people to get that under control. >> Damon, thanks so much for sharing your insight. Congratulations on your startup and great to meet you in person. >> Yeah. >> We've had great chats in our crowd chat. You guys have been awesome with Gene Kim and the community that you're involved with with DevOps for the Enterprise Summit, practitioners sharing. That's a great ethos >> Damon: It's a pretty >> That really aligns >> awesome bet, yeah. >> with what's going on in the industry. Congratulations. More Cube coverage here exclusive of Cisco's inaugural event called DevNet Create, an extension of their DevNet core classic network and developer systems at Cisco. This is an open source one. This is out in the community. Not all Cisco, all part of the community. And of course we're bringing it to you with live coverage. I'm John for Peter Burris. Stay with us. (upbeat music) >> Hi. I'm April Mitchell, and I'm the senior director ...

>> Announcer: Live from San Francisco it's The Cube covering Oracle OpenWorld 2016 brought to you by Oracle. Now here's your host, John Furrier and Peter Burris. >> Hey welcome back everyone. We are live in San Francisco at Oracle OpenWorld 2016. This is SiliconANGLE, the key of our flagship program. We go out to the events, extract a signal from the noise. I'm John Furrier, Co-CEO of SiliconANGLE with Peter Burris, head of Research at SiliconANGLE as well as the General Manager of Wikibon Research, our next guest is Siddhartha Agarwal, Vice-President of Product Management and Strategy of Oracle Cloud Platform. Welcome back to the Cube, good to see you. >> Yes, hi John. Great to be here. >> So I've seen a lot of great stuff. The core messaging from the corporate headquarters Cloud Cloud Cloud, but there's so much stuff going on in Oracle on all the applications. We've had many great conversations around the different, kind of, how the price are all fitting into the cloud model. But Peter and I were talking yesterday in our wrap-up about, we're the developers. >> Siddhartha: Yeah. >> Now and someone made a joke, oh they're at JavaOne, which is great. A lot of them are at JavaOne, but there's a huge developer opportunity within the Oracle core ecosystem because Cloud is very developer friendly. Devops, agile, cloud-native environments really cater to, really, software developers. >> Yeah, absolutely and that's a big focus area for us because we want to get developers excited about the ability to build the next generation of applications on the Oracle Cloud. Cloud-native applications, microservices-based applications and having that environment be open with choice of programming languages, open in terms of choice of which databases they want, not just Oracle database. NoSQL, MySQL, other databases and then choice of the computeship that you're using. Containers, bare metal, virtual environments and an open standard. So it's giving a very open, modern easy platform for developers so that they'll build on our platform. >> You know, one of the things that we always talk about at events is when we talk to companies really trying to win the hearts and minds of developers. You always hear, we're going to win the developers. They're like an object, like you don't really win developers. Developers are very fickle but very loyal if you can align with what they're trying to do. >> Siddartha: Yeah. >> And they'll reject hardcore tactics of selling and lock-in so that's a concern. It's a psychology of the developers. They want cool but they want relevance and they want to align with their goals. How do you see that 'cause I think Oracle is a great ecosystem for a developer. How do you manage that psychology 'cause Oracle has traditionally been an enterprise software company, so software's great but... Amazon has a good lead on the developers right now. You know, look at the end of the day you have to get developers realizing that they can build excellent, fun creative applications to create differentiation for their organizations, right, and do it fast with cool technologies. So we're giving them, for example, not just the ability to build with Java EE but now they can build in Java SE with Tomcat, they can build with Node, they can build with PHP and soon they'll be able to do it with Ruby and Daikon. And we're giving that in a container-based platform where they don't necessarily have to manage the container. They get automatic scalability, they get back up batching, all of that stuff taken care of for them. Also, you know, being able to build rich, mobile applications, that's really important for them. So how they can build mobile applications using Ionic, Angular, whatever JavaScript framework they want, but on the back end they have to be able to connect these mobile apps to the enterprise. They have to get location-based inside and to where the person is who's using the mobile app. They need to be able to get inside and tell how the mobile app's been used, and you've heard Larry talk about the Chatbot platform, right? How do you engage with customers in a different way through Facebook Messenger? So those are some of the new technologies that we're making very easily available and then at the end of the day we're giving them choice of databases so it's not just Oracle database that you get up and running in the Cloud and it's provision managed, automated for you. But now you can ask for NoSQL databases. You can have Cassandra, MongoDB run on our IaaS and MySQL. We just announced MySQL enterprise edition available as a service in the Public Cloud. >> Yeah one of the things that developers love, you know, being an ex-developer myself in the old days, is, and we've talked to them... They're very loyal but they're very pragmatic and they're engineers, basically they're software engineers. They love tools, great tools that work, they want support, but they want distribution of their product that they create, they're creators, so distribution ultimately means modernization but developers don't harp too much on money-making although they'd want to make money. They don't want to be abandoned on those three areas. They don't want to be disloyal. They want to be loyal, they want support and they want to have distribution. What does Oracle bring to the table to address those three things? >> Yeah, they're a few ways in which we're thinking of helping developers with distributions. For example, one is, developers are building applications that they exposing their APIs and they want to be able to monetize those APIs because they are exposing business process and a logic from their organization as APIs so we're giving them the ability to have portals where they can expose their APIs and monetize the APIs. The other thing is we've also got the Oracle Cloud Marketplace where developers can put their stuff on Oracle Cloud Marketplace so others can be leveraging that content and they're getting paid for that. >> How does that work? Do they plug it into the pass layer? How does the marketplace fit in if I'm a developer? >> Sure, the marketplace is a catalog, right, and you can put your stuff on the catalog. Then when you want to drag and drop something, you drop it onto Oracle PaaS or onto Oracle IaaS. So you're taking the application that you've built and then you got it to have something that-- >> John: So composing a solution on the fly of your customer? >> Well, yeah exactly, just pulling a pre-composed solution that a developer had built and being able to drop it onto the Oracle PaaS and IaaS platform. >> So the developer gets a customer and they get paid for that through the catalog? >> Yes, yes, yes and it's also better for customers, right? They're getting all sorts of capability pre-built for them, available for them, ready for them. >> So one of the things that's come up, and we've heard it, it was really amplified too much but we saw it and it got some play. In developer communities, the messaging on the containers and microservers as you mentioned earlier. Huge deal right now. They love that ability to have the containerization. We even heard containers driving down into the IaaS area, so with the network virtualization stuff going on, so how is that going to help developers? What confidence will you share to developers that you guys are backing the container standards-- >> Siddhartha: Absolutely. >> Driving that, participating in that. >> Well I think there are a couple of things. First of all, containers are not that easy in terms of when you have to orchestrate under the containers, you have to register these containers. Today the technology is for containers to be managed, the orchestration technology which is things like Swarm, Kubernetes, MISO, et cetera. They're changing very rapidly and then in order to use these technologies, you have to have a scheduler and things like that. So there's a stack of three or four, relatively recent technologies, changing at a relatively fast pace and that creates a very unstable stack for someone who create production level stuff for them, right? The docker container that they built actually run from this slightly shaky stack. >> Like Kubernetes or what not. >> Yeah yeah and so what we've done is we're saying, look, we're giving you container as a service so if you've already created docker containers, you can now bring those containers as is to the Oracle Public Cloud. You can take this application, these 20 containers and then from that point on we've taken care of putting the containers out, scaling the containers up, registering the containers, managing the containers for you, so you're just being able to use that environment as a developer. And if you want to use the PaaS, that's that IaaS. If you want to use the PaaS, then the PhP node, JavaSE capability that I told you was also containerized. You're just not exposed to docker there. Actually, I know he's got a question, but I want to just point out Juan Loaiza, who was on Monday, he pointed out the JSON aspect of the database was I thought was pretty compelling. From a developer's standpoing, JSON's very really popular with managing APIs. So having that in the database is really kind of a good thing so people should check out that interview. >> Very quickly, one of the historical norm for developers is you start with a data model and then you take various types of tools and you build code that operates against that development for that basic data model. And Oracle obviously has, that's a big part of what your business has historically been. As you move forward, as we start looking at big data and the enormous investment that businesses are making in trying to understand how to utilize that technology, it's not going as well as a lot folks might've thought it would in part because the developer community hasn't fully engaged how to generate value out of those basic stacks of technology. How is Oracle, who has obviously a leadership position in database and is now re-committing itself to some of these new big data technologies, how're you going to differentially, or do you anticipate differentially presenting that to developers so they can do more with big data-like technologies? >> They're a few things that we've done, wonderful question. First of all, just creating the Hadoop cluster, managing the Hadoop cluster, scaling out the Hadoop cluster requires a lot of effort. So we're giving you big data as a service where you don't have to worry about that underlying infrastructure. The next problem is how do you get data into the data lake, and the data has been generated at tremendous volume. You think about internet of things, you think about devices, et cetera. They're generating data at tremendous volume. We're giving you the ability to actually be able to use a streaming, Kafka, Sparc-based serviced to be able to bring data in or to use Oracle data intergration to be able to stream data in from, let's say, something happening on the Oracle database into your big data hub. So it's giving you very easy ways to get your data into the data hub and being able to do that with HDFS, with Hive, whichever target system you want to use. Then on top of that data, the next challenge is what do you visualize, right? I mean, you've got all this data together but a very small percentage is actually giving you insight. So how do you look at this and find that needle in the haystack? So for that we've given you the ability to do analytics with the BI Cloud service to get inside into the data where we're actually doing machine learning. And we're getting inside from the data and presenting those data sets to the most relevant to the most insightful by giving you some smart insights upfront and by giving you visualizations. So for example, you search for, in all these forms, what are the users says as they entered in the data. The best way to present that is by a tag cloud. So giving you visualization that makes sense, so you can do rich discovery and get rich insight from BI Cloud service and the data visualization cloud service. Lastly, if you have, let's say, five years of data on an air conditioner and the product manager's trying to get inside into that data saying, hey what should I fix so that that doesn't happen next time around. We're giving you the big data discovery cloud service where you don't have to set up that data lab, you don't have to set up the models, et cetera. You could just say replicate two billing rows, we'll replicate it in the cloud for you within our data store and you can start getting insight from it. >> So how are developers going to start using these tools 'cause it's clear that data scientists can use it, it's clear that people that have more of analytic's background can use it. How're developers going to start grabbing a lot of these capabilities, especially with machine learning and AI and some of the other things on the horizon? And how do you guys anticipate you're going to present this stuff to a developer community so that they can, again, start creating more value for the business? Is that something that's on the horizon? >> You know it's here, it's not on the horizon, it's here. We're helping developers, for example, build a microservice that wants to get data from a treadmill that one of the customers is running on, right? We're trying to get data from one of the customers on the treadmills. Well the developer now creates a microservice where the data from the treadmill has been ingested into a data lake. We've made it very easy for them to ingest into the data lake and then that microservice will be able to very easily access the data, expose only the portion of the data that's interesting. For example, the developer wants to create a very rich mobile app that presents the customer running with all the insight into the average daily calorie burn and what they're doing, et cetera. Now they can take that data, do analytics on it and very easily be able to present it in the mobile platform without having to work through all the plumbing of the data lake, of the ingestion, of the visualization, of the mobile piece, of the integration of the backend system. All of that is being provided so developers can really plug and play and have fun. >> Yeah, they want that fun. Building is the fun part, they want to have fun-- >> They want relevance, great tools and not have to worry about the infrastructure. >> John: They want distribution. They want their work to be showcased. >> Peter: That's what I mean about relevance, that's really about relevance. >> They want to work on the cool stuff and again-- >> And be relevant. >> Developers are starting to have what I call the nightclub effect. Coding is so much fun now, there's new stuff that comes out. They want to hack with the new codes. They want to play with some that fit the form factor with either a device or whatnot. >> Yeah and one other thing that we've done is, we've made the... All developers today are doing containers delivery because they need to release code really fast, right. It's no longer about months, it's about days or hours that they have to release. So we're giving a complete continuous delivery framework where people can leverage Git for their code depository, they can use Maven for continuous integration, they can use Puppet and Chef for stripping. The can manage the backlog of their task. They can do code reviews, et cetera, all done in the cloud for them. >> So lifestyles, hospitality. Taking care of developers, that's what you got to do. >> Exactly, that's a great analogy. You know all these things, they have to have these tools that they put together and what we're doing is we're saying, you don't have to worry about putting together those tools, just use them. But if you have some, you can plug in. >> Well we think, Wikibon and SiliconeANGLE, believe that there's going to be a tsunami of enterprise developers with the consumerization of IT, now meaning the Cloud, that you're going to see enterprise development, just a boom in development. You're going to see a lot more activity. Now I know it's different in development by it's not just pure Cloud need, it's some Legacy, but it's going to be a boom so we think you guys are very set up for that. Certainly with the products, so my final question for you Siddhartha is, what's your plans? I mean, sounds great. What're you going to do about it? Is there a venture happening? How're you guys going to develop this opportunity? What're you guys going to do? >> So the product sets are already there but we're evolving those products sets to a significant pace. So first of all, you can go to cloud.oracle.com/tryit and try these cloud services and build the applications on it, that's there. We've got a portal called developer.oracle.com where you can get resources on, for example, I'm a JavaScript developer. What's everything that Oracle's doing to help JavaScript developers? I'm a MySQL developer. what's everyone doing to help with that? So they've got that. Then starting at the beginning of next year, we're going to roll out a set of workshops that happen in many cities around the world where we go work with developers, hands on, and getting them inside an experience of how to build these rich, cloud-native, microservices-based applications. So those are some of the things and then our advocacy program. We already have the ACE Program, the ACE Directive Program. Working with that program to really make it a very vibrant, energetic ecosystem that is helping, building a sort of sample codes and building expert knowledge around how the Oracle environment can be used to build really cool microservices-based, cloud-native-- >> So you're investing, you're investing. >> Siddhartha: Oh absolutely. >> Any big events, you're just more little events, any big events, any developer events you guys going to do? >> So we'll be doing these workshops and we'll be sponsoring a bunch non-Oracle developer events and then we'll be launching a big developer event of our own. >> Great, so final question. What's in it for the developer? If I'm a developer, what's in it for me? Hey I love Oracle, thanks for spending the money and investing in this. What's in it for me? Why, why should I give you a look? >> Because you can do it faster with higher quality. So that microservices application that I was talking about, if you went to any other cloud and tried to build that microservices-based application that got data from the treadmill into a data lake using IoT and the analytics integration with backend applications, it would've taken you a lot longer. You can get going in the language of your choice using the database of your choice, using standards of your choice and have no lock-in. You can take your data out, you can take your code out whenever you want. So do it faster with openness. >> Siddhartha, thanks for sharing that developer update. We were talking about it yesterday. Our prayers were answered. (laughing) You came on The Cube. We were like, where is the developer action? I mean we see that JavaOne, we love Java, certainly JavaScript is awesome and a lot of good stuff going on. Thanks for sharing and congratulations on the investments and to continuing bringing developer goodness out there. >> Thank you, John. >> This The Cube, we're sharing that data with you and we're going to bring more signal from the noise here after this short break. You're watching The Cube. (electronic beat)