Right, welcome to the studios here in Palo Alto. I'm John Three cohost in the queue. We here for Special News Conversation with Prakash, dodgy general manager of the flash array business at pure storage, some exciting cloud news for pure storage. Great to see you prakash. Thanks for coming in. Thanks for having us. So you guys got some big news. So I'm excited by this because I've been ranting and raving about how cloud native has been impacting the enterprise. It's pretty well documented that everyone's going going cloud operations. You guys are announcing a kind of a historic milestone for pure storage in that you guys had been doing great on the storage side within covering new since inception, but now as you guys continue to grow, you now have a new offering that's in the cloud. This is new for you guys. Talk about this announcement. What does it mean? You're an on premises storage, has done great to grow. Has Been Amazing gun public that now with the cloud growth you have a cloud offering. What's going on? Well, interestingly people were looking at storage for performance, cost and reliability reasons. That's kind of the three holy grails that you know, everyone expects out of storage. We added a fourth dimension in simplicity. Storage didn't need to be hard, and that's kind of the brand of pier and as we took a look, there was a fifth dimension that we realized was somewhat missing. While we made things simple. We didn't have the agility that public cloud offered. So as we were taking a liquid like, okay, public cloud brings to this instant available capacity, agility model, but do you have to trade off on the other dimensions? Performance costs for liability or simplicity, and our goal to bring customer value was to avoid tradeoffs. So why would you have to trade off on any of those dimensions? And then the second piece was why do you have to choose? Why do you have to choose between on premises or public cloud? And if you make the wrong choice, how do you have freedom to move? So the problem set that we were trying to address was that unification across all those dimensions, the onboarding of agility and frankly the ability to avoid people having to choose between them and use the best of what's available. Where know, I think you nailed something important that I want to get into the why you guys are doing this little bit deeper, but this notion of tradeoffs is an old it kind of philosophy. I got to trade this off to get that. Whether it's, you know, I want compute and stability or flexibility, agility, but with cloud and cloud operations, the operating model now is you choose, as you said, so this cloud operations on premises and cloud has to look the same. This is what we're hearing from Ceos and practitioners, cloud architects, they're re architecting their enterprises now because you know, the, the three main of it, storage, networking and compute never go away. It's just changing. This is a critical, fundamental piece of the architecture of it operations. Why now? Why cloud was the customer demand? Was it a natural progression for you guys? Explain. Explaining the why now. Well, I'll start with not the storage computer networking, but what they're used for and fundamentally the world's using those three dimensions for long, one of two sites, either building applications or building automation. That's kind of the two major trends in the industry. Now if we take a look, if you are running an application, primarily you would choose am I running it on premises or in the public cloud and as as the journeys emerged like public cloud probably introduction of as around 15 years ago, but initially there was this enamored. Everything's going there and then people settled down to some things will go here and some things will go here, but we believe that's a middle state where people are actually trying to do is deliver applications that solve problems and we believe that future is a hybrid application. Now, what is a hybrid application today? If you've got an on premises finance system, should you be able to use ai algorithms from Google's cloud? They book journal Entries for month end close. Let me, because it's now not a choice of am I using pads for the. That doesn't mean the whole application needs to sit in platform as a service. You should be able to use the best capabilities of what's available, where the same way today, anyone who is selling anything and using salesforce crm needs to ensure that what you've sold is booked in a finance system. That could be an sap finance system on premises, so what is the APP? It's an APP without borders now and these are modern day hybrid applications now coming and bringing that down to compute storage and networking. Trying to bring that together and actually deliver that in a consistent and operational way is difficult. It's a difficult across your application architectures. There are different. It's different across your management, even your consumption and how you bill cap ex versus Opex, but the big difference is that the storage layer, because the application architecture on premises relies on your storage for your reliability, but in the cloud they've actually moved that reliability characteristic to the middle tier. You're sharding and doing scaleout distributed application because you can't rely on the same characteristics out of your storage and we found this as an opportunity to bring these two worlds together. We call it the cloud divide. Talk about the cloud device. I think that's important because one of the things we talked with a lot of the end user customers, your customers and others, their challenges again, to focus on the outcomes that they want, the application that's going to drive their and and the value, not so much what the infrastructure, they have them create an infrastructure to enable that. What is this cloud divide when it comes to storage? In your mind, what did you guys discover? What were the key pain points? What were the, what was the customer's telling you around what and what is the cloud divide? No. Uh, the cloud divided, coming back to it is how you deal with applications, how you deal with management and how you deal with storage different between the enterprise in the cloud. We like to say the enterprise is not very cloudy, meaning you don't have instant available capacity in the cloud is not very enterprisey. Now what does that mean? What do we call enterprise? And there's a how it works with the rest of my landscape, what the API is our, uh, what the reliability characteristics, our performance and cost characteristics are also different. So if you want to adopt public cloud, you have to go ahead and say, I got to do a hard left, right? Because you're kind of going down this way and you got to choose a different path. And if you choose that hard left, you're now stuck on that road. It's a one way road. And we're trying to do is say, you know what, what if we could bridge these environments, like let's dig into the application architecture on the cloud divide. Pretty much people are using scale up or scale out as application architectures and then they're deciding, you know, vms or containers yet a, that those are common application development paradigms. What if you could use either one anywhere, right? Those technologies. Now, if you look at what vm ware is doing with Vm ware cloud and you look at what kubernetes is doing across on premise and cloud, there is now a unification happening at application architecture across management. What if you could have a seamless api in a seamless pane of glass around how you manage your applications? That's emerging, but as we looked around, no one was unifying the storage paradigm and actually that was the hardest we we thought that to unify the hardware or the storage paradigm, you have to build a data centric architecture and that's what we've been focused on doing. We've introduced our concept of data centric architecture a year ago and we're now extending that concept to the public cloud. What I like about what you guys are doing here, and I want to get your thoughts on this because this is. I think the trend that's really big in here is that you guys have been great storage provider since again, since inception can been following you guys and you have hardware and hardware has been a rack and stack kind of enterprise paradigm enterprises. We've got gear, we protected, we secure, but now with public cloud becoming more secure and more mainstream and with the Dev ops application environment developing. You mentioned the ems, the containers and Guth Coobernetti's. You're now having an operating model that's changing. You guys are doing software, so it's not a boxer. You're not shipped boxes to Amazon. They have stores. You got s three right out of the services. You're now extending the software component of your business. I want you to take a minute to explain for the people that might not know the extent of the software business at pure and specifically the cloud component software piece. It's not hardware and software, but it works with on premises. Talk about that dynamic of software in the cloud and the impact of the on premise piece of it. Well, I'll rewind a little back intel. What peers been known for peers been known as kind of this all flash company, but if you unwind that. When I took a look at it as I've joined pier actually about six months ago, what I realized is the unique skill that peer has is software engineering. To get the best out of any infrastructure that you give it. The medium happened to be flash initially, so what we've built with our direct flash and NBME and a lot of the advancements in our software has been to deal with the flash medium, but the core skill in Ip we have is software development to get the best out of a medium. What we've introduced is another medium. This medium is infrastructure as a service. We treat that as another medium and we believe that we're uniquely qualified to get the most out of that medium, which is the cloud. Alright, so I want to get into the infrastructure piece. You guys are well known for being a cloud, a data infrastructure component or data infrastructure. You mentioned the history of flash storage has been a great place to store data on premises. When you get into the cloud, you guys call this cloud data services and I'm going to get in another video on that, on the details of that, but when you hear about cloud data services, but pops in my mind is more is coming. You need to store it somewhere. You have to manage that data for applications, hybrid applications. You need to store the protect that data. You need to make that data available. They'll be able to recover all the same things that get done with data in the past on storage has to happen at a whole nother level. Describe what is cloud data services mean? What does that mean to you guys at pure and what does it mean to your customers? If you back up a little bit where we started and where a lot of our initial customers were at where sas customers and what we delivered to them was what we called cloud data infrastructure. That cloud data infrastructure allowed some of the largest sas companies, either consumer or enterprise to go ahead and use peer to build their sass applications. Companies like service now workday, those types of companies, but what was missing was how do you get that same value on infrastructure as a service environments, aws, Azure and GCP. So what we realized was the consistency model was not the same. The apis were not the same and you had to choose or not. And so our cloud data services are a set of services that give you, for example, the same block storage that you had on premises in the public cloud, gives you the same Api. And from a management and operations standpoint, we have pure one which is a cloud data management solution where all of your data, wherever it sits, because as you said, data is growing. You can see all of your Ras. It was interesting as we built the software, uh, when we first built it internally, we realized that hey, we went into pier one and we see all these storage volumes, but we didn't know which ones were on premises or cloud because our software is the same. We actually had to do some engineering to make it look different. Like, Hey, let's color the cloud volumes different. Or we had to actually think about that because we started from the place of driving consistency. And then we've extended the cloud data services dead. Go ahead and say not only can we allow you to run in either place, but how do you extend that to data protection? Because today, as you mentioned earlier on premises, people have workflows for backup and data protection and initially those workflows could have been disk to disk to tape to truck and we see that there's now a more modern way where you can do flash to flash to cloud where you can have your primary mission critical applications and flash and if you want one hop for backup, people looked at backup as an insurance policy. What happens if something goes wrong, but what's really important is when something goes wrong, how quickly can you recover? So providing flash in that second medium and then third, extending the step for cost optimization by leveraging public cloud in s three allows us to drive a consistency model and we can drive that same workflow on premises or in the public cloud. So the consistency to me, I should maybe put you on the spot here. So and consistency. Are we talking about if I'm a pure customer and I'm running pure on premises and I'm using, I'm using all the management something pure one, all this other great stuff and I want to use cloud. Does my job change at all? Does it look the same? So as a dashboard into the storage and the data because I want, I want, I want persistent data, I want ai and I want analytics now. Now I've got cloud going on. There's a lot of things out there, sage maker, tensorflow on the AI side. Lot of things. Goodness out there. What changes for me or does it change and how do you guys solve that problem? Because what I don't want is I don't want to have to hire developers to go do an integration with Amazon and Azure and Google cloud. I want to have a single consistent environment. Do you guys provide that from a data standpoint? We do. So this is a journey because when you start, you need to ensure that your data consistency and management across all of those environments, aws, azure and Google and on premises is the same. So we're introducing our solution cloud data services on Amazon first, but we are planning on extending that to the azure and Google environments in the cloud standpoint. So let's take Amazon. So I said, hey, I want to use some of that cloud. I just go to Amazon. It's extensible, fully extensible as if I'm using pure cloud formation template on Amazon. You just go in, it's there, you can pick it up, you could choose it, use it, and then what really is the difference is your platform services at a higher layer, maybe a little bit different because some of the things you mentioned and the pads are Amazon specific. Yeah. So if you start using pads services, it could impact your application development architecture, but the good news is if your goal is to drive the ability to use, what's the best thing that's available where as you take a look at evolutions in Vm ware, cloud and Coobernetti's combined with our cloud data services, you're now able to put together a use. Best of what available wherever you guys. I mean that's the. That's the application side. So you guys are providing a consistent layer for the data and the storage. Absolutely. That's going to. If I'm building an Amazon as a developer, I'm going to use those anyway. So it's not like it's a dependency per se, it's just you're going to allow for those hybrid apps to run across premises and in cloud and all the data takes care of itself. Right? It's like they get that, right? Yeah, and what's great about it is we've learned some things along the way. For example, we've been trying to get the best out of the flash medium in the past by enhancing performance characteristics or efficiency characteristics for cost optimization. We can bring some of those same value props to the Amazon world. So if you need to aggregate iops, we can do that. If you need to go ahead and drive efficiency, we have techniques to drive efficiency around thin provisioning. Those types of opens up more use cases for the customer to add more policy based things to their application. It makes data programmable. Well, it's interesting. There was one customer that we were speaking to a as part of our alpha usage and it's a online education company. They do curriculum development and that type of thing and they brought this use case to us. They have their APP that they've built for their curriculum on Amazon and then they want to take a lot of snapshots. So what they. One of the technologies, we have his space saving snapshots so they're like, oh, that'd be great if I could use your cloud block store data service on Amazon that way. But then they thought about it and they're like, well, every time we develop a new curriculum we have to send a snapshot out to a different location and site and what we could do is set up a your hardware in a direct attached way to Amazon because your software is the same. And we have active synchronous replication technology where we can now synchronously replicated between the public cloud and this private hosted direct attached diversion. And then they can do work here or even take snapshots from here. And the reason they were doing it was go ahead and say, use that space saving snapshot to reduce their overall cost profile on exports. That's a great example of cloudifying being cloudified, but more options. This brings up the question about competition. How do you guys compare to the competition? So you guys are. It's the first move for you guys in the cloud, within this operating model, which is consistent, you know, pure on premises and the cloud, get the consistency, loved the agility of the ability for applications and get all that goodness. What about the competition? How do you guys stand versus the competition? Well, when we take a look at what was going on, I think a lot of people wanted to check the box on cloud. So let's throw something out there and you know, see how people use. As we've done this market introduction, we've been very careful about that because peer has a certain brand reputation around when we say we're going to deliver some of these characteristics, we deliver and deliver those characteristics. And we didn't want to lose the value proposition of simplicity and agility. So as we launched this, we didn't just say let's throw it out there and see what happens. We did it with the deliberate intent of saying we want to provide agility is a characteristic that people could use and we want to deliver that agility with the same simplicity that they've come to know and love with peer. So those are the principles that we're focused on and as we take a look at the competition, you know, they've thrown their software out there but we don't see that it's been broadly adopted and then they're still the tradeoffs of should I go on premises or public cloud so they're stuck in the divide and that they're in the storage or the cloud, divide on premise, different operating models. And our goal is to really enable that replicates those guys are stuck on the divide. Yeah, and if you think about these hybrid applications that we see the world moving to think about it this way, the world's evolving where you're going to have more application to application integration. Gone is the days where you're going to have one monolithic application doing everything. So what's evolved is the application to application integration is exponentially growing. Now, if you assume that if you need to do a production to Dev test copy, do you need to do it for one app or for that entire set of apps that you treat as one monolithic entity because now they're all connected. He otherwise you have to decide, okay, I'm snapshotting this one and then I got to choose this one and I got to choose that one. So you, there's now a need to go ahead and consolidate a lot of application workloads and treat the management and operations of that as a unique entity. So hybrid apps are actually making you rethink how you deal with management of compute networking and storage. Yeah, I think that's a great example. I think application to application integration and totally agree with you is going to be happening at a much accelerated rate, but it changed the role of data. The role of data is central to that because as you mentioned, that other example, if you're doing a financial app and you want to use some ai from a cloud over here, the best tool for the job needs to be integrated in seamlessly and storage. Should they be part of that conversation? It should just be stored somewhere. That's what you guys are doing with this announcement and you guys are bringing that to the table. Um, so I got to get. I guess I'll ask you the final question here because it's exciting news. You guys are cloudified it made it. He bridged the divide on the storage cloud storage divide. What's the bottom line for this announcement? As you look at this impact to customers, what's the impact to pure customers and what does it mean for prospects that aren't yet your customers? What's the bottom line? This announcement? Well, I'll give it to you. For me, each perspective for our existing customers, this adds the agility tool set to their bag of tricks they've got and it does it in a way where they can start, get that instant available capacity and if they want, they can go ahead and now start benchmarking across both environments without having to re architect because the kpis are the same and for net new customers and prospects. It's interesting. As we speak to customers, we find that people are on a different educated education journey in the public cloud. Some are already using the public cloud and as we've been discussing this with them, they're like, hey, this could improve on some of these characteristics. Either I have performance challenges, cost challenges, reliability or manageability challenges. So we find that the customers or the prospects that are most educated or the ones that have already leaped, right? They've jumped in the pool and now they realize, hey, you know what? The water's cold and I need something, and there's another set of customers that are still haven't jumped in that pool. And what we're saying is for those customers, you have to make a choice. Right now you have to decide between multiple public clouds, you have to decide between on premise and what we're doing is we're de-risking that choice by allowing them to get the best of what's available where and most importantly ensuring that if they've chosen, if they've chosen something but one of the other choices evolves or matures to be a better option for them, they have the ability to move and I think also the focus we hear from the practitioners that they are investing more and more of their time and energy on building applications, hybrid applications as you're calling them, ones that are going to be a in the cloud or on premises, but solving a problem. They want to shift their resources and attention from mundane storage admin like maintenance problems and make the storage invisible to them. So the developer that they said, I know my thing's working great in the cloud. One of my apps are productive. My developers are programming and the storage resources are invisible and it's never a headache. That's kind of what you guys are getting at here. You're making storage pervasive and important to the developers and the it so that it kind of goes away in their mind, isn't it the sleep better at night, Kinda well, take Kubernetes, for example, um, a lot of application developers using it, but storage is not necessarily transparent. We, six months ago we introduced a pure service orchestrator that made storage transparent, so you have a block file object interface you, you just call and use storage, spin it up, use it as you need and let go, but you should not have to worry about, let me go phone someone creative volume decider either. So you need that transparent and elasticity and we've been focused on delivering that and now few modernize were kind of application development is going, we can provide that. It's always on. It always works. It's globally consistent, it shared, and it's easy to manage from wherever you're saying progress. Thanks for coming in and sharing the news on the new hybrid cloud applications that are hitting the market. Of course, having the right solutions and having the cloud data services available from pure storage. I'm here percussion, just general manager of the flash of rapists and pure storage. This is a special cube conversation. I'm John Furrier. Thanks for watching.

(bright instrumental music) >> Hi everyone, I'm John Furrier. Here in the Cube Studios in Palo Alto, for a special Cube conversation on some big news from PureStorage. We're here with Chadd Kenney, who's the Vice President of Product and Solutions at PureStorage. Big Cloud news. A historic announcement from PureStorage. One of the fastest growing startups in the storage business. Went public, I've been following these guys since creation. Great success story in Silicon Valley and certainly innovative products. Now announcing a Cloud product. Cloud data services, now in market. Chadd, this is huge. >> It's exciting time. Thank you so much for having us. >> So you guys, obviously storage success story, but now the reality is changed. You know we've been saying in the Cube, nothing changes, you get storage computer networking, old way, new way in the Cloud. Game is still the same. Storage isn't going away. You got to store the data somewhere and the data tsunami is coming. Still coming with Edge and a bunch of other things. Cloud more important than ever. To get it right is super important. So, what is the announcement of Cloud Data Service. Explain what the product is, why you guys built it, why now. >> Awesome. So, a couple different innovations that are part of this launch to start with. We have Cloud Block Store which is taking Purity, which is our operating system found on-prem and actually moving it to AWS. And we spent a bunch of time optimizing these solutions to make it so that, we could actually take on tier one, mission critical applications. A key differentiator is that most folks were really chasing after test-dev and leveraging the Cloud for that type of use case. Whereas Cloud Block Storage, really kind of industry strength and ready for mission critical applications. We also took protection mechanisms from FlashArray on-premises and actually made it so that you could use CloudSnap and move and protect data into the public Cloud via portable snapshot technology. Which we can dig into a little bit later. And then the last part is, we thought it was really ripe to change data protection, just as a whole. Most people are doing kind of disc to disc, to tape, and then moving tape offsite. We believe the world has shifted. There's a big problem in data protection. Restoring data is not happening in the time frame that its needed, and SLAs aren't being met, and users are not happy with the overall solution as a whole. We believe that restorations from Flash are incredibly important to the business, but in order to get there you have to offset the economics. So what we're building is a Flash to Flash to Cloud solution which enables folks to be able to take the advantages of the economics of Cloud and be able to then have a caching mechanism of Flash on-premises. So that they can restore things relatively quickly for the predominant set of data that they have out there. >> And just so I get everything right here. You guys only been on-premises only, this is now a cloud solution. It's software. >> Correct. >> Why now? Why wait 'til now, is the timing right? What's the internal conversation? And why should customers know, is this the right time. >> So, the evolution of cloud has been pretty interesting as we've gone through it. Most customers went from kind of a 100% on-premises, the Cloud came out and said, hey, I'm going to move everything to the Cloud. They found that didn't work great for enterprise applications. And so they kind of moved back and realized that hybrid cloud was going to be a world with they wanted to leverage both. We're seeing a lot of other shifts in the market. VMware already having RDS in platform. Now it's true hybrid cloud kind of playing out there. Amazon running an AWS. It's a good mixture just to showcase where people really want to be able to leverage the capabilities of both. >> So it's a good time because the customers are re-architecting as well. >> It's all about- >> Hybrid applications are definitely what people want. >> 100% and the application stack, I think was the core focus that really shifted over time. Instead of just focusing on hybrid cloud infrastructure, it was really about how applications could leverage multiple types of clouds to be able to leverage the innovation and services that they could provide. >> You know, I've always been following the IT business for 30 years or so and it's always been an interesting trend. You buy something from a vendor and there's a trade-offs. And there's always the payback periods, but now I think with this announcement that's interesting is you got the product mix that allows customers to have choice and pick what they want. There's no more trade-offs. If they like cloud, they go to cloud. If they like on-premise, you go on-premises. >> It sounds like an easy concept, but the crazy part to this is the Cloud divide is real. They are very different environments. As we've talked to customers, they were very lost on how it was going to take and enterprise application and actually leverage the innovations within the Cloud. They wanted it, they needed it, but at the same time, they weren't able to deliver up on it. And so, we realized that the data layer, fundamentally was the area that could give them that bridge between those two environments. And we could add some core values to the Cloud for even the next generation developer who's developing in the Cloud to bring in, better overall resiliency. Management and all sorts of new features that they weren't able to take advantage of in traditional public cloud. >> You know Chugg wants to do minimal about the serviceless trend and how awesome that is. It's just, look at the resource pool as a serviceless pool of resource. So is this storageless? >> So it's still backed by storage, obviously. >> No, I was just making a joke. No wait, that you're looking at it as what serviceless is to the user. You guys are providing that same kind of storage pool, addressable through the application of, >> Correct >> as if it's storageless. And what's great about taking 100% software platform and moving it to the Cloud is, customer can spin this up in like minutes. And what's great about it is, they can spend many, many, many instances of these things for various different use cases that they have out there, and get true utility out of it. So they're getting the agility that they really want while not having to offset the values that they really come to love about PureStorage on-premises. Now they can actually get it all on the public cloud as well. >> I want to dig into the products a little bit. Before we get there, I want you to answer the question that's probably on people's minds. I know you've been at Pure, really from the beginning. So, you've seen the history. Most people look at you guys and say, well you're a hardware vendor. I have Pure boxes everywhere, you guys doing a great job. You've pioneered the Flash, speed game on storage. People want, kill latency as they say. You guys have done a great job. But wait a minute, this is software. Explain how you guys did this, why it's important. People might not know that this is a software solution. They might be know you for hardware. What's the difference? Is there a difference? Why should they care and what's the impact? >> So, great question. Since we sell hardware products, most people see us as a hardware company. But at the end of the day, the majority of vinge and dev is software. We're building software to make, originally, off the shelf components to be enterprise worthy. Over time we decided to optimize the hardware too, and that pairing between the software and hardware gets them inherently great values. And this is why we didn't just take our software and just kind of throw it into every cloud and say have it, to customers. Like a lot of folks did. We spent a lot of time, just like we did on our hardware platform, optimizing for AWS to start with. So that we could truly be able to leverage the inherent technologies that they have, but build software to make it even better. >> It's interesting, I interviewed Andy Bechtolsheim at VMworld, and he's a chairman of Arista. He's called, Les Peckgesem calls him the Rembrandt of motherboards. And he goes, "John, we're in the software business." And he goes, "Let me tell ya, hardware's easy. Software's hard." >> I agree. >> So everyone's pretty much in the software business. This is not a change for Pure. >> No, this is the same game we've been in. >> Great. Alright, let's get into the products. The first one is Cloud Block Store for AWS. Which is the way Amazon does the branch. So it's on Amazon, or for Amazon as they say. They use different words. So this is Pure software in the Cloud. Your company, technically Pure software. >> Yup. >> In the Cloud as software, no hardware. >> Yup. >> A 100% storage, API support, always encrypted, seamless management and orchestration, DR backup migration between clouds. >> Yup. >> That's kind of the core premise. So what does the product do, what's the purpose of the product. On the Amazon piece, if I'm a customer of Pure or a prospect for Pure, what does the product give me? What's the capabilities? >> Great. I would say that the biggest thing that customers get is just leverage for their application stack to be able to utilize the Cloud. And let me give you a couple of examples 'cause they're kind of fun. So first off, Cloud Block Storage is just software that sits in the Cloud that has many of the same utilities that run on-premises. Any by doing so, you get the ability to be able to do stuff like I want to replicate, as a DR target. So maybe I don't have a secondary site out there, and I want to have a DR target that spin up in the event of a disaster. You can easily set up bi-directional replication to the instance that you have running in the Cloud. It's the exact same experience. The exact same APIs and you get our cloud data management with Pure1 to be able to see both sites. One single pane of glass, and make sure everything is up and running and doing well. You could also though, leverage a test-dev environment. So let's saying I'm running production on-premises, I can then go ahead and replicate to the Cloud, spin up an instance for test-dev, and running reporting, run analytics. Run anything else that I wanted on top of that. And spin up compute relatively quickly. Maybe I don't have it on-prem. Next, we could focus on replicating for protection. Let's say for compliance, I want to have many instances to be able to restore back in the event of a disaster or in the event that I just want to look back during a period of time. The last part is, not just on-prem to the Cloud, but leveraging the Cloud for even better resiliency to take enterprise applications and actually move them without having to do massive re-architecture. If you look at what happens, Amazon recommends typically, that you have data in two different availability zones. So that when you put an application on top of it, it can be resilient to any sort of failures within an AZ. What we've done is we've taken our active cluster technology which is active-active replication between two instances, and made it so that you can actually replicate between two availability zones. And your application now doesn't need to be re-architected whatsoever. >> So you basically, if I get this right, you had core software that made all that Flash, on the box which is on-premise, which is a hardware solution. Which sounds like it was commodity boxes so this, components. >> Just like the Cloud. >> You take it to the Cloud as an amazing amount of boxes out there. They have tons of data centers. So you treat the Cloud as if it's a virtual device, so to speak. >> Correct. I mean the Cloud functionally is just compute and storage, and networking on the back end has been abstracted by some sort of layer in front of it. We're leveraging compute resources for our controllers and we're leveraging persistent storage media for our storage. But what we've done in software is optimize a bunch of things. An example just as one is, in the Cloud when you, procure storage, you pay for all of it, whether you leverage it or not. We incorporate de-dupe, compression, thin provisioning, AES 256 encryption on all data arrest. These are data services that are just embedded in that aren't traditionally found in a traditional cloud. >> This makes so much sense. If you're an application developer, you focus on building the app. Not worrying about where the storage is and how it's all managed. 'Cause you want persistent data and uni-managed state, and all this stuff going on. And I just need a dashboard, I just need to know where the storage is. Is it available and bring it to the table. >> And make it easy with the same APIs that you were potentially running on, on-premises. And that last part that I would say is that, the layered services that are built into Purity, like our snapshot technology and being able to refresh test-dev environments or create 10 sandboxes for 10 developers in the Cloud and add compute instances to them, is not only instantaneous, but it's space saving as you actually do it. Where as in the normal cloud offerings, you're paying for each one of those instances. >> And the agility is off the charts, it's amazing. Okay, final question on this one is, how much is it's going to cost? How does a customer consume it? Is it in the marketplace? Do I just click a button, spin up things? How's the interface? What's the customer interaction and engagement with the product? How they buy it, how much it costs? Can you share the interaction with the customer? >> So we're just jumping into beta, so a lot of this is still being worked out. But what I will tell you is it's the exact same experience that customers have come to love with Pure. You can go download the Cloud formation template into your catalog with an AWS. So you can spin up instances. The same kind of consumption models that we've built on-prem will be applied to cloud. So it will be a very similar consumption model, which has been super consumer friendly that customers have loved from us over the years. And it will be available in the mid part of next year, and so people will be able to beta it today, test it out, see how it works, and then put it into full production in mid part of next year. >> And operationally, in the work flows, the customers don't skip a beat. It's the same kind of format, languages and the words, the word flow. It feels like Pure all the way through. >> Correct. And not only are we a 100% built on a rest API, but all of the things we've built in with, Python libraries that automate this for developers, to PowerShell toolkits, to Ansible playbooks. All the stuff we've built on codeupyourstorage.com are all applicable to both sites and you get Pure1, our Cloud based management system to be able to see all of it in one single pane of glass. >> Okay, let's move on. So the next piece I think is interesting. I'll get your thoughts on this is that the whole protection piece. On-premises, really kind of held back from the Cloud, mainly to protect the data. So you guys got CloudSnap for AWS, what does this product do? Is this the protection piece? How does this work? What is the product? What's the features and what's the value? >> So, StorReduce was a recent acquisition that we did that enables de-duplication on top of an S3 target. And so it allows you to store an S3 de-duplicated into a smaller form factor and we're pairing that with both an on-premises addition which will have a flash plate behind it for super fast restores. So think of that as a caching tier for your backups, but then also be able to replicate that out to the public cloud and leverage store reduce natively in the public cloud as well. >> So that's the store reduce product. So store reduce on it is that piece. As an object store? >> It is, yes. And we pair that with CloudSnap which is natively integrated within FlashArray, so you can also do snapshots to a FlashBlade for fast restores for both NFS, and you can send it also to S3 in the public cloud. And so you get the inherent abilities to even do, VM level granularity or volume level granularity as well from a FlashArray directly, without needing to have any additional hardware. >> Okay so the data services are the; Block Storage, Store Reduce and CloudSnap on a four AWS. >> Correct. >> How would you encapsulate this from a product and solution standpoint? How would you describe that to a customer in an elevator or just a quick value statement? What's in it for them? >> Sure. So Pure's been seen by customers as innovation engine that optimized applications and allowed them to do, I would say, amazing things into the enterprise. What we're doing now, is we're evolving that solution out of just an on-premises solution and making it available in a very agile Cloud world. We know this world is evolving dramatically. We know people really want to be able to take advantage of the innovations within the Cloud, and so what we're doing is we're finally bridging the gap between on-premises and the Cloud. Giving them the same user experience that they've come to love with Pure and all of the Clouds that they potentially need to develop in. >> Okay so from the announcement standpoint, you guys got Cloud Block Storage limited public beta, right out of the gate. GA in mid 2019. CloudSnap is GA at announcement and Store Reduce is going into beta, first half of 2019. >> Correct, we're excited about it. >> So for the skeptics out there who are- Hey you know, Chadd, I got to tell ya. I love the Cloud, but I'm a little bit nervous. How do I test and get a feeling for- this is going to be simple, if I'm going to jump in and look at this. What should I look at first? What sequence, should I try this? Do you guys have a playbook, for them to either kick the tires or how should they explore to get proficient in the new solution. >> Good question. Right, so for one if you're a FlashArray customer, CloudSnap gives you the ability to be able to take this new entity, called a portable Snapshot. Which is data paired with metadata, and allow you to be able to move data off of a FlashArray. You can put it to an NFS target or you can send it to the Cloud. And so that's the most logical one that folks will probably leverage first because it's super exciting for them to be able to leverage the Cloud and spin up instances, if they'd like to. Or protect back to their own prem. Also, Cloud Block Storage, great because you can spin it up relatively quickly and test out applications between the two. One area that I think customers are going to be really excited about is you could run an analytics environment in the Cloud and spin up a bunch of compute from your production instance by just replicating it up into the Cloud. The last part is, I think backup is not super sexy. Nobody like to talk about it, but it's a significant pain point that's out there, and I think we can make some major in-roads in helping businesses get better SLAs. We're very, very interested to see the great solutions people bring with- >> So, I'm going to put you on the spot here and ask you, there's always the, love the cliche, is it a vitamin or is it an Asprin. Is there a pain point? So obviously backup, I would agree. Backup and recovery, certainly with the disaster, you see the wildfires going on here in California. You can't stop thinking about what the, disaster recovery plan and then you got top line growth with application developers. The kind of the vitamin, if you will. What are the use cases, low hanging fruit for someone to like test this out from a pain point standpoint. Is it backup and what's the growth angle? I wanted to test out this new solution, what should I look at first? What would you recommend? >> It's a very tough question. So, CloudSnap is obviously the easy one. I'd say Cloud Block Store is one that I think, people will. I look at my biggest, customers biggest challenges out there it's how do I get application portable. So I think Cloud Block Store really gives you the application portability. So I think it's finally achieving that whole, hybrid cloud world. But at the end of the day, backup is really big pain point that the enterprise deals with, like right this second. So there's areas where we believe we can add inherent values to them with being able to do fast restores from Flash. That meets SLA's very quickly and is an easy fix. >> And you guys feel good about the data protection aspect of this? >> Yes, very much so. >> Awesome. I want to get your personal take on this. You were early on in Pure. What's the vibe inside the company? This is Cloud and people love Cloud. There's benefits for Cloud, as well as on-premises. What's the mood like inside PureStorage? You've seen from the beginning, now you're a public company and growing up really, really fast. What's the vibe like inside PureStorage? >> It's funny, it hasn't really changed all that much, in the cultural side of the thing, of the business. I love where I work because of the people. The people bring so much fun to the business, so much innovation and we have a mindset that's heavily focused on customer first. And that's one of the things. I always tell this kind of story is, when we first started, we sat in a room on a whiteboard and wrote up, what is everything that sucks about storage. And instead of trying to figure out how we make a 2.0 version of some storage array, we actually figured out what are all the customer pain points that we needed to satisfy and then we built innovations to go do that. Not go chase the competition, but actually go alleviate customer challenges. And we just continue to kind of focus on customer first and so the whole company kind of, rallies around that. And I think you see a very different motion that what you do in most companies because we love hearing about customer results of our products. Engineering just will rally around when a customer shows up just to hear exactly their experience associated to it. And so with this, I think what they see is a continued evolution of the things we've been doing and they love seeing and providing customer solutions in areas that they were challenged to deal with in the past. >> What was some of the customer feedback when you guys started going, hey, you've got a new product, you're doing all of that early work. And you got to go talk to some people and knock on the, hey, what do you think, would you like the Cloud, a little bit of the Cloud. How would you like the Cloud to be implemented? What was some of the things you heard from customers? >> A lot of them said, if you can take your core tenets, which was simplicity, efficiency, reliability, and customer focus around consumption, and if you could give that to me in the Cloud, that would be the Nirvana. So, when we looked at this model, that's exactly what we did. We said, let's take what people love about us on-prem, and give 'em the exact same experience in the Cloud. >> That's great and that's what you guys have done. Congratulations. >> Thanks so much. >> Great to hear the Cloud story here Chadd Kenney, Vice President of Products and Solutions at PureStorage. Taking the formula of success on-premises with Flash and the success there, and bringing it to the Cloud. That's the big deal in this announcement. I'm John Furrier here in the Palo Alto studios, thanks for watching. (upbeat instrumental music)

>> Announcer: Live from Chicago, Illinois it's the CUBE, covering Veeamon 2018. Brought to you by Veeam. >> We're back in Chicago, Veeamon 2018, you're watching the CUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise. My name is Dave Vellante and I'm here with my co-host Stu Miniman. Day one of our two day coverage of Veeamon, On our second year. Vaughn Stewart is here who is the vice president of Technology at Pure Storage, Cube alum, good friend. Great to see you man. >> Good to see you Dave, Stu. >> Dave: Thanks so much for coming on. >> Vaughn: Great to be back. >> So Pure, you know, I remember when you joined Pure and you were like, "Dave, this is going to be the rocket ship of a lifetime." it's turned out to be the case. First company since NetApp to hit a billion dollars in the storage business. It's like independent storage companies are back. >> Yeah. (laughs) >> So give us the update, what's happening at Pure? >> So fantastic year. Wrapped up end of January, right. So first independent storage company to hit a billion dollars. Actually, we're kind of on the cusp of maybe being the the fastest infrastructure company, if not the fastest tied with being the fastest to hit a billion dollars. So the growth rates been great, the products, obviously, have been off the charts. Whether you're looking at it from an analyst's perspective, you know, the gardener reports, the IDC market scape, so if you look at from the customers perspective with the NPS scores, right. Just crushing in terms of the products, the customers stating that we're not overstating the capabilities, and we make some pretty bold statements. But when you kind of boil it back to where we're at now, I think our focus is helping customers adopt a data centric architecture as a part of their IT or data center modernization plans, right. This is, we've kind of gone through this phase of like virtualizing everything, now everything's in the cloud and now we're starting to mature a little bit and we're always looking at this tsunami of data that's being created and it's more around, where's your data going to reside? Because there's going to be some gravity around it and bring the compute to where the data should reside. And so our products and our strategy is to help customers again, this data-centric architecture, adopt new technologies that are going to help them radically shift how they operate, changing the cost of operations, changing the complexity to either let an existing storage team scale to a larger capacity per full-time, you know, FTE or to allow actually the application teams or the private cloud teams to just manage their infrastructure stack, right. We're seeing we're seeing kind of growth in both areas. I think beyond that, our technology with our evergreen storage as a subscription model has also been able to be transformative for Enterprise about how do they acquire, refresh, and introduce new technologies within the storage space. And so it's been pretty exciting. >> So let's talk about some of that. I remember, I've I've been around a long time Stu, as you know, so Al Shughart, the legend, once told me when I was just a pup trying to understand the business. He said, "Dave, the storage business is simple. The customers want it to be dirt cheap, rock solid, and lightning fast." >> Vaughn: Yeah. >> This is the days of spinning discs, which we're kind of dirt cheap, but they really weren't that rock solid and they really weren't that lightning fast. So you guys actually delivered on that promise but you added some other things. Simplicity, the business model of reduced friction. You mentioned Evergreen, so it's not, obviously, not just about flash, where we say, "oh, flash, Pure storage flash, we have flash too." It's so much more than that. The way you positioned it just now the company in terms of data centricity. And, as they say, the business model innovations have really worked well for you. You've been able to stay ahead of the competition. I wonder if you could comment. >> Sure. So I, for your audience, I think it's important to maybe back up a bit. Pure was born in in the the wave of a number of all flash arrays. >> Dave: Yeah. Right? And a fair amount of them were acquired by large existing storage vendors. And I think now that the dust has settled a bit, you know, we were kind of the phoenixes that rose through those ashes, if you will, within the storage space and I think, really, the key driver there was, it wasn't about performance. Flash makes everything faster. >> Dave: Right. It was about a combination of the business model, the operational simplicity, but also, what I would call, the Tier One Feature Sets, right. You had to deliver on six nines of greater availability. You had to have all the data management capabilities to plug into a large partner ecosystem like veeam, which, you know, we're at Veeam live and that was kind of what I would call Act one of Pure, which was, you know, flash ray based, you know, storage for your traditional enterprise apps. Last year we introduced flash blade, right. This was a radically different architecture. It was to scale out a scale out blade-based storage platform that scaled capacity and performance linearly. And the adoption in that space has been this next-generation apps, which... Are just..the sets are growing, you know, out of control and beyond what we would have ever expected with an Enterprise app. So whether it's AI, machine learning, deep learning, analytics, or this new use case we're seeing, which is rapid data recovery. The flash blade, because of the combination of its low latency and massive parallel throughput, has really been a big growth vector for us and it's kind of act two, if you will, of Pure Storage. >> Dave: Go ahead Stu. >> Yeah, Vaughn I'd love to hear more your thoughts on, kind of, an application proliferation. so I think back, you know, you and I lived through that wave of virtualization. While I love virtualization, one of the challenges I had with it was I could take my old application that was probably already too long in the tooth and stick it in a VM and then keep it for another five to ten years because it didn't care about the hardware, their OS, and all that standpoint. Today, talk about cloud native apps, talk about IOT and analytics and all of these micro services and everything like that. It's a huge impact on infrastructure and how we build things. It brings up to speed how we bridge from, kind of, the old world and the new world. >> Yeah, I'm glad that you asked this question. I wish you would be coming to our conference next week - >> Stu: Well, Dave will be there. >> because we'll have a session discussing this and it'll include an internal case study. And so that's all the details I can give right now. For a long time I think a lot of IT vendors, particularly, those who made hardware products, try to position this on-prem versus the cloud, right. and it was really the wrong mindset. Cloud is just one more deployment model for an organization to look at. The question that I think organizations have is, what fits where? And I think, to your point, if you're looking to build a new application or re-platform an existing, what you have today versus in the past was, you had a contained set of APIs and interfaces to work with, right. If you were building on, say, you know, a database vendor's enterprise business suite that was the tools that you got to use. Today you look at what's available, an open source or in the public cloud space, and you get to build a massively disaggregated application that's comprised of functions and and microservices, right. And it gets to leverage these notions of scaling on demand and being being very elastic. What I would share with you and what we discussed with customers is, your development team will want to go as fast as they can and leverage all these new tools and they're iterating very quickly, and the cloud is an ideal platform for that. But you need to plan and look forward to, around what's the the volume of data that you may be dealing with? What's the access requirements of that data over time? And where's it going to be a better position? Should it sit in the cloud? Should it sit on Prem? Should it sit in a private to public cloud hybrid type of architecture model and leverage, say, the compute and all the software agility within the cloud and yet still have stewardship over your data and not have to deal with with maybe unforeseen things like charges per, you know, API call or egress charges things of that nature. >> And Edge as the whole, >> And so I'm grossly simplifying a lot this. but these are the conversations that you get within the enterprise, which is where the sweet spot is. These are real considerations that that they have right there past the is cloud secure or, you know? They're past the data sovereignty type of concerns. They're more around how is this going to scale long-term because, for example, I'll give you an example. So we rolled out meta, which is our AI as part of our support for our products. This all getting ahead of the customers and predicting faults, getting them... This is what helps us achieve greater than six nines availability across the entire fleet for the last two and a half years, right. It's, it's getting ahead of the problems. When we work on looking at some of the AI that we create around meta and we want to test it, we have to download a year's worth of phone home data from the cloud. That takes 45 days to download today and it's not going to get any faster as the install base gets larger, right. And so those are challenges that you have to look at and say, maybe I started in the cloud but maybe I need to look at something in a hybrid model because it's going to impact my business agility. And so these are conversations that we can have and our architects have with customers based on whatever their criteria or forecast look like. >> So just about a year ago Scott Dietzen stepped down as CEO, brought in Charlie - >> Vaughn: Yeah >> new leader. It was kind of, kind of interesting, it was right on the heels of Frank Slootman doing something similar. Frank Slootman just stepped down as chairman and so how's the new leadership going? What, what has Charlie brought? I can't wait to interview him next week on the CUBE but give us your take as somebody who's been an industry observer and, obviously, a long-time Pure employee. >> So ,so a great question. So just for the audience to know, so Dietzen is still with us, right. He stepped down from being the CEO and is now the chairman of the board. and I owe a large gratitude of debt to Scott. Scott brought me into Pure and I'm always encouraged when, you know, every now and then you get that that direct email from him, you know, you know, keep, you know, keep being a thorn in someone's side and push this forward. That was a little self-serving, so I apologize. But what I like about Charlie is, and, and understand I was, I was with Ned F for 13 years, right. And so we did this large growth cycle, not as early as with Pure, but going through a lot of the same growth pains and and whatnot that we have today. But we did all that growth under Worman Joven before they changed over. What was nice about Scott is, he told me on day one that he didn't know how far he would take Pure but it was apparent to him that he had taken it as far as he could, he would find his, his, his heir and obviously Charlie was the choice. And what Charlie's brought in has been a lot of structure, right. The formation of business units, a lot of accountability, a lot of, what I would say, that maturation phase from startup, right. That's kind of grown to the, to the the maximum output of your current organizational structures, to looking forward into a structure that that is going to allow us to scale better over time, right. Continue to grow as well as.. I think Charlie be the first to tell ya, you know, Pure's on a trajectory to hit two billion dollars and can do that on inertia in the current products, right. Charlie's focus or one of Charlie's focuses over the last handful of months is, is, what are we going to become two years from now and what investments do we need to start making in the near term to get prepared for two years from now? >> So I, I brought up Frank Slootman who's in the service now because I know, I know Frank and Scott were close, right? There's some board action going on there over the years, they're part of the Silicon Valley mafia with the Mai Bucherii. But but I, and we can joke about that but there's a there's a culture of succession that has really taken hold in in certain parts of the valley and, and again, very similar to what we saw as service now, where was the new guy was brought in to take them to the next level. And the existing CEO, you know, mature enough, you know, maybe, maybe worked so hard for all these years too, maybe felt like they need a little break. but still mature enough to say, okay, I know my limitations and I want to bring somebody else in. So it's been sort of this new thing and I want to tie it back to something we were talking to before on the CUBE. I mean, you guys hit escape velocity. When you look back at the sort of the virtualization craze with Three Par and Isilon, Data Domain, Compelling. Yeah, they kind of hit a billion-dollar status you know, they hit unicorn, but they never hit billion dollar revenue. And, and so now, and then the other thing you talked about was some of the bigger players decided to buy up flash companies. >> Vaughn: Yeah. >> And they said, you know, rather than pay 2.5 billion dollars for a data domain or Three Par, we'll spend a billion dollars or, in some cases, hundreds of millions of dollars and then we'll organically grow that internally. Did it work? Yeah, maybe yeah, you know. Maybe some of it, maybe not. But, but you guys stayed the course and are now on track to do two billion. >> Vaughn: Yeah >> So here's my question, long-winded sort of narrative babble, sorry about that. I used to question Worman Joven all the time Tucci, even. Can you stay independent? Right? That was the big question. You know, because Converged is coming. But now it looks like being an independent is actually in vogue. Best-of-breed is actually still a viable business model. >> So obviously I'm not in on the inside of whatever the board decisions may be. >> Yeah, but you're an observer who know this business. We're kind of talking about Vaughn the prognosticator, analyst, if you will. >> What I think is different today, and Stu and I were talking about this because we ran into each other over in the corner with Duncan. You know, the emergence of all the flash vendors and them getting acquired and really what's happened by and large is just the same old products just got flash injected into them and, you know, got, you know, the the vendors hope to get another decade out of them. But okay, they're faster, but it doesn't fundamentally change your business model or your operations and sometimes that's a good thing, right. For some customers, right, their change averse. >> Right, they don't want that disruption. >> Yeah. For us, right, we're trying to usher in now this this next wave of shared accelerated storage and it's a disaggregated model, right. Start to look up it at what, you know, in a commercial sense, if you will. What are the enter.. what are the the hyper scalars, you know, delivering, you know? They're not running data direct attached storage. They're not doing HCI, right? They've got pools of compute and pools of storage and it's either disk and cold or it's flash flash and hot and, you know, they've got network and it's all over Ethernet, so it's greatly simplified. We're trying to help our customers with, with that type of architecture. Whether they're looking at simplifying their private cloud or extending the private cloud to the public cloud, or what's even more interesting, as they look at like their data pipelines, you know, a lot of, you know.. There's, there's AI and analytics in every organization of every size. They may or may not sit inside the IT department but they tend to follow that model of eighths and software. So I'm just going to do it on DAS and I'm going to build this siloed cluster. And, you know, it must be cheap regardless of whatever the efficiency I get out of it. And what we're trying to help large organizations look at is data pipelines and flow and the flexibility that you gain by separating compute from storage and not having to worry about the performance issues or constraints of disk-based systems from a decade ago because technologies like flash and now with non-volatile memory Express and non-volatile memory expressed over fabrics, right. You're getting direct memory to memory communications from the servers to the storage. So you're getting all the benefits of pooling and sharing your storage with all the benefits of it without a local bus in terms of speed and performance. And so it can change, particularly, a large volume of data. You can change your agility. >> So that that is certainly a tailwind for you but it was a tailwind for a lot of companies and you have the product. Let's assume best product just for sake of argument. I'm sure you would agree. But best product doesn't always win, right? So what I'm hearing is there was business model innovation. >> Vaughn: Yeah. >> Obviously very strong go to market. You guys knew where all the skeletons were buried with all the reps that you guys hired. But there were other factors involved in your ascendancy, which maybe is independent of the structure of the industry because the industry structure is changing. It's going from, you know, now remote cloud services into these digital, this digital matrix and somehow you have to fit into that digital matrix and participate in that. >> Yeah, it's.. I think you brought up two points,\. So I think if you if you're going to be a start-up, to be successful, it's not just technology. You've hit the head on the nail there. Pure had.. the technology had to deliver, Pure had that. The business model was innovative, the marketing was off the hook, right? For a start-up, you know, we were punching above our weight but you also have sales, have sales force execution and, you know, you never know what you get when you walk into a start-up. But you've got to.. If you don't hit on all four of those dimensions then you don't achieve escape velocity. In terms of shifting from startup to, you know, becoming mainstream. Not only did we achieve a billion dollars last year, we were cashflow positive for the year and we were profitable for Q4, right? So that puts a lot of wind in ourselves as we go forward. You know, with, at the end of last year, a half a billion dollars in the bank and now a billion dollars in the bank. You know, for us to go you know figure out what we're going to grow and go into. I think moving forward and being independent, I think we'll see, right? I think there's always a tick-tock in our industry, right? Things are distributed, they're centralized, their distributed, I want one throat to choke, I want best-of-breed. I think with all the distributed apps and all the analytics platforms that are going to start to become more important than what we're used to in the X83 space. I think best-of-breed is starting to rise up right now and so I think the runway for Pure to stay independent is there. Don't get me wrong, we're going to have to do our works with plugging into clouds, right? And all those those ecosystems because customers want a transparent experience. But we'll be sharing some news on that, I think next week. >> Well and excited to here that. The cartel will continue to suck up startups, no question about it. But, you know, we love companies like Pure, put Nutanix in that mix and it was sad to us to see all their run of the virtualization comers, they just disappeared. Because if it's just the cartel building new products, you're not going to have the level of innovation that you get with VC funded startups in the valley. you just, you're just not. >> Well, in the US you're seeing, I mean, you're, in the US you're seeing VC investment starting to diversify a bit, right? >> Dave: Yeah >> Colorado's getting hot, the Boston area is, it has been there for a while but it's getting hot. >> IOT and security. >> And, you know, that's been the great thing about, you know, about IT in the US, right, is we've been an innovative landscape. I think the barrier has probably forced some innovators out based on just the cost of living. So, you know, who knows what the mix will look like a decade from now, but yeah, we're still going to be Silicon Valley centric for the near-term. >> So I love talking you because we can have these conversations. We were joking off-camera, we could go for 90 minutes, which we easily could. We got to, we got to go soon but let's talk about Veeam, relationship with Veeam. You guys are kind of birds of a feather in a lot of ways but, but take us through that. >> Yeah, so the opportunity to partner with Veeam was a no-brainer. There were synergies there, right? Pure and Veeam both trying to just disrupt legacy markets, doing it through simplicity, right? Riding the wave of, you know, virtualization as a primary business focus but not exclusive. our Net Promoter scores with both companies are off the charts, right. Customers love it and, you know, we're multiples higher than any of our competitors. And so bringing the technologies together were real simple. So last month we announced, four or five weeks ago we announced and released a new set of solutions and integrations. It was comprised around three areas of benefit, right? Accelerating backups, increasing the speed at which you could recover data, and adding a new level of agility within your ecosystem. So delivering those three value props were based on us supporting their Universal API adapters. So now that they can offload some of the backup process to array-based snapshots and that preserves the performance, makes the window collapse faster. That's where when production data sits on the flash array. We've also certified putting the flash blade behind the Veeam servers as a backup data repository and the benefits of that from a backup window are faster data ingestion times across your real estate. Obviously, smaller footprint, lower cost within the data center. The bigger impact on both of these is on rapid data recovery. So with Veeam, through their explorer integrations, you can pull files, disks, VMs, applications, right out of the array snapshots. If the array is still online but someone's just munched the data, if the array is no longer there and you need to pull from the flash blade, flash blade gives them a capability that they never had with disk, which is they can start because, you know, how Veeam recovers, right? They actually start the data services and recover them from the backup repository and then live migrate it back to the production environment. With the live, with the back and the data repository being all flash, now they can bring up a significant, if not all of your data back online and then trickle restore it back to the production data sets. We had a customer with a large distributed database that was on a more traditional disk backup system that was really focused on ingest, right? Make the backup window not so much focused on the restore times. It took them in excess of 36 hours to put back their database and this was the mission critical database to the organization. We've come in and replaced that. 36 hours is now 30 minutes. So is all flashes as repository for your backup for everyone? Maybe not for every organization but we're seeing a big growth ramp on that in the enterprise. The last piece that we've brought to market together in integrations is, integrating with their data labs. That's their environment to be able to on-demand create, test, and DEV infrastructures for you and that pairs really well with all flash arrays and snapshots because it's instantaneous, consumes no new storage, and our automatic QOS preserves that, preserves the resources for the production environment from the lab. And so those are our three areas: accelerate backups, rapid restores, and give you some agility with your test DEV. >> Okay and the agility in the ecosystem is oftentimes underappreciated, right? >> I'm amazed at the customers that I.. Large enterprise customers, right? Revenues in the tens of billions of dollars that you still meet with today, where they've half staffs that their job is to restore, you know, an Oracle database to an Oracle developer and that's all the guy does 40, guy or gal, does 40 hours a week, it's amazing. >> Right, Vaughn, great to see you again. >> Dave, awesome. >> Thanks so much for coming to the CUBE. We'll see you next week Pure Accelerate at San Francisco. We're there Wednesday, I believe, we're broadcasting. So look for all the things that Vaughn teased. He showed a little leg on some stuff, so we'll be covering that next week. We're back here tomorrow. Stu and I will be kicking off at 9:30 with Peter MacKay, so don't miss that. We're out for today, Veeamon 2018 the CUBE. See you tomorrow (electronic music)

(upbeat music) >> We're back with Steve McDowell, the Principal Analyst for Data & Storage at Moor Insights and Strategy. Hey Steve, great to have you on. Tell us a little bit about yourself. You've got a really interesting background and kind of a blend of engineering and strategy and what's your research focus? >> Yeah, so my research, my focus area is data and storage and all the things around that, whether it's On-Prem or Cloud or, you know, software as a service. My background, as you said, is a blend, right? I grew up as an engineer. I started off as an OS developer at IBM. I came up through the ranks and shifted over into corporate strategy and product marketing and product management, and I have been doing working as an industry analyst now for about five years at Moor Insights and Strategy. >> Steve, how do you see this playing out in the next three to five years? I mean, cloud got it all started, it's going to snowballing. You know, however you look at it percent of spending on storage that you think is going to land in as a service. How do you see the evolution here? >> IT buyers are looking at as a service and consumption base is, you know, a natural model. It extends the data center, brings all of the flexibility all of the goodness that I get from public cloud, but without all of the downside and uncertainty on cost and security and things like that, right, that also come with the public cloud and it's delivered by technology providers that I trust and that I know, and that I worked with, you know, for, in some cases, decades. So, I don't know that we have hard data on how much adoption there is of the model, but we do know that it's trending up, you know and every infrastructure provider at this point has some flavor of offering in the space. So, it's clearly popular with CIOs and IT practitioners alike. >> So Steve, organizations are at a they're different levels of maturity in their, their transformation journeys, and of course, as a result, they're going to have different storage needs that are aligned with their bottom line business objectives. From an IT buyer perspective, you may have data on this, even if it's anecdotal, where does storage as a service actually fit in and can it be a growth lever? >> It can absolutely be a growth leader. It gives me the flexibility as an IT architect to scale my business over time without worrying about how much money I have to invest in storage hardware. Right? So I, I get kind of, again, that cloud like flexibility in terms of procurement and deployment, but it gives me that control by oftentimes being on site within my premise, and then I manage it like a storage array that I own. So, you know, it's beautiful for for organizations that are scaling and it's equally nice for organizations that just want to manage and control cost over time. So, it's a model that makes a lot of sense and fits and certainly growing in adoption and in popularity. >> How about from a technology vendor perspective? You've worked for in the tech industry for companies? What do you think is going to define the winners and losers in this space? If you running strategy for a storage company, what would you say? >> I think the days of of a storage administrator managing, you know, rate levels and recovering and things of that sort are over, right? What these organizations like Pure delivering but they're offering is simplicity. It's a push button approach to deploying storage to the applications and workloads that need it, right? It becomes storage as a utility. So, it's not just the, you know the consumption based economic model of as a service. It's also the manageability that comes with that or the flexibility of management that comes with that. I can push a button, deploy bites to you know a workload that needs it, and it just becomes very simple, right, for the storage administrator, in a way that, you know kind of old school On-Prem storage can't really deliver. >> You know, I want to, I want to ask you, I mean I've been thinking about this because again, a lot of companies are, are you know, moving, hopping on the as a service bandwagon. I feel like, okay, in and of itself, that's not where the innovation lives. The innovation is going to come from making that singular experience from On-Prem to the clouds across clouds maybe eventually out to the edge. Do you, where do you see the innovation in as a service? >> Well, there's two levels of innovation, right? One, is business model innovation, right? I now have an organizational flexibility to build the infrastructure to support my digital transformation efforts, but on the product side and the offering side, it really is as you said, it's about the integration of experience. Every enterprise today touches a cloud in some way, shape or form. Right, I have data spread, not just in my data center, but at the edge, oftentimes in a public cloud, maybe a private cloud. I don't know where my data is, and it really lands on the storage providers to help me manage that and deliver that manageability experience to to the IT administrators. So, when I look at innovation in this space, you know, it's not just a a storage array and rack that I'm leasing, right, this is not another lease model. It's really fully integrated, you know end to end management of my data and yeah and all of the things around that. >> Yeah, so to your point about a lease model is if you're doing a lease, you know, yeah. You can shift CapEx to OPEX, but you're still committed to you have to over provision, whereas here and I wanted to ask you about that. It's an interesting model, right, because you got to read the fine print. Of course the fine print says you got to commit to some level typically, and then if, you know, if you go over you you charge for what you use and you can scale that back down and that's got to be very attractive for folks. I wonder if you we'll ever see like true cloud like consumption pricing, that has two edges to it, right? You see consumption based pricing in some of the software models and you know yeah, people like it, the, the lines of business maybe because they're paying in by the drink, but then procurement hates it because they don't have predictability. How do you see the pricing models? Do you see that maturing or do you think we're sort of locked in on, on where we're at? >> No, I do see that maturing, right? And when you work with a company like Pure to understand their consumption base and as a service and you know, when you work with a company like Pure to understand their consumption base and as a service offerings, it really is sitting down and understanding where your data needs are going to scale. Right? You buy in at a certain level, you have capacity planning. You can expand if you need to. You can shrink if you need to. So, it really does put more control in the hands of the IT buyer than, well certainly then traditional CapEx based On-Prem, but also more control than you would get, you know working with an Amazon or an Azure. >> Well the next 10 years, it ain't going to be like the last 10 years. Thanks Steve! We'll leave it there for now. Love to have you back. Look at, keep it right there. You don't want to miss this next segment where we dig into the customer angle. You're watching theCube production of At Your Storage Service, brought to you by PureStorage. One more. Okay, thanks Steve! We'll leave it there for now. I'd love to have you back. Keep it right there, At Your Storage Service continues in a moment. You're watching theCube. (upbeat music)

(upbeat music) >> Hello, welcome to this CUBE conversation. I'm John Furrier your host of theCUBE here in our Palo Alto studio. We got a great conversation with the CEO of Lacework, David Hatfield. Who's in on theCUBE remote. David great to see you guys, a security platform at Lacework, you're at the helm as CEO. Welcome to theCUBE conversation. >> Thank you, John. Great to see you congrats to you and the team and all the success. I think what you guys are doing is really important so happy to be part of it. >> Great to have you in the community and you guys are doing great work. I know about Lacework I've done some due diligence on you guys. I love your business model, but for the folks who don't know what you guys do, take a minute to explain who is Lacework? What do you guys do? What's your positioning? And what's your focus? >> Yeah, well, we're a modern data security platform for the cloud. And so I think data science meets cloud security ultimately. The company has been around since 2015. We received one of the largest financing rounds that we're aware of I think in history in security business, $525 million in January. Led by Sutter Hill Ventures which many people may know about they founded PureStorage with the notion that we're going to go fundamentally change and revamp the ownership model for a high speed data storage using flash versus using spinning disc drives. I spent eight years with that company. Love with what we built there. Then Mike Speiser considered an investment in a company called Snowflake computing. I think you're aware of what Snowflake does which is bringing data warehousing into the cloud. And the third big investment that Sutter Hill made is really to help disrupt security, and that's in Lacework. So north of a billion dollar valuation a 300% year over year growth and have a ton of momentum. So at the core of what we do, it's really trying to merge, when we look at we look at security as a data problem, security and compliance the data problem. And when you apply that to the cloud, it's a massive data problem. you literally have trillions of data points across shared infrastructure that we need to be able to ingest and capture and then you need to be able to process efficiently and provide context back to the end-user. And so we approached it very differently than how legacy approaches have been in place, you know largely rules-based engines that are written to be able to try and stop the bad guys. And they miss a lot of things. And so our data-driven approach that we patented is called a polygraph. It's a, it's a security architecture and there are three primary benefits. It does a lot of things, but the three things that we think are most profound first is it eliminates the need for, you know dozens of point solutions. I was shocked when I, you know kind of learned about security. I was at Symantec back in the day. And just to see how fragmented this market is, it's one of the biggest markets in tech. $124 billion in annual spend growing at, to $300 billion in the next three years. And it's massively fragmented. And the average number of point solutions that customers have to deal with is dozens. Like literally 75 is the average number. And so we wanted to take a platform approach to solve this problem where the larger the attack surface that you put in the more data that you put into our machine learning algorithms the smarter it gets and the higher, the efficacy. So eliminating point solutions is his value proposition one. Point two is that we have to be 10 X better than everybody else in the business. Otherwise the merchant companies don't get a breakout and become long and during companies. And so there's a number of different dimensions. The first dimension that I think is probably the most important is efficacy, you know in anomaly detection or in, you know threat detection where you're trying to identify what risks we have in the business. It's, it's generally a very noisy activity. And so rules-based approaches on average will produce a hundred alerts to our one or two. Those, the signal to noise ratio, is, is, you know is a massive a 100x, but call it 10x a reduction. And so we're actually delivering the needle versus the haystack for security administrators and dev developers to actually solve the problem. So it's 10x, higher efficacy it's 10x faster to be able to resolve the problems. And obviously the ROI is, is a no-brainer because you're eliminating all these points which is in having to manage it. And the third, and probably the thing that I'm most excited about what we're doing and what our customers are already realizing is that we're transforming security and compliance teams from kind of compliance into business enablers. when you automate all these processes and you build it into, you know the CICD platforms for the developers you actually enable the developers to write code to differentiate their business, you know to create new customer experiences to get competitive advantage and drive revenue for their businesses. And, and you know that's not what security has done up to this point. We oftentimes, they're the ones we're the ones having to say, no, you know we're slow down or it's too risky, etc. But when you automate that and you increase the efficacy you can enable the developers to do their thing. And it allows the CSOs and allows the security professionals to up level their responsibility into selling and driving revenue. And that is increasingly going to become more and more important for supply chains and partners of these cloud native businesses of how secure am I working with you, etc. And so we think that that transformation of the role of security is going to be as, as meaningful as the technology that we're providing the business. So we're super excited about it. >> I could tell you have so much going on this investment team Sutter Hill, you mentioned big time players huge success track record. Just saw them written up in the wall street journal as one of the best venture capital firms and returns. It's just that the bets are all coming home, but their bet strategy is simple. Disrupting the market that's growing and changing PureStorage, you mentioned company you've worked for, you know people were saying, oh, they'll never get escape velocity. They disrupted an existing, boring storage market changed the game there, security, right for change. A lot of tools, a lot of people have buying tools off the shelf, you know and everyone fighting for the platform. That seems to be the conversation. So I have to ask you, you guys want to be the player that that platform you are, that platform what's different in this platform where everyone's trying to be a security platform, what's makes you different. >> Yeah. So I mean, I think the platform wars are, are clearly, upon us, you know I think what's different about our approach is that we were built on the cloud, for the cloud so we're a cloud native business that, you know runs our business on AWS and everything that we do. We don't have hardware, we don't own data centers. we don't have any of the legacy elements that are there. we use software run on the cloud to enable this. So that's point number one point number two is we did the hard work of mapping the data elements that are out there and adjusting them in and then have this polygraph, you know behavioral anomaly detection, that is it can be applied to today. It's being applied to vulnerability and discovery management and containers and Kubernetes. But over time we believe it extends very naturally to a larger part of the attack server. So we don't have to rewrite the data engine to develop solutions across broader attack services. We already have that, you know so I think our time to develop and innovate will be profound. And I think the third thing that we're seeing companies do and largely the legacy bigger companies is that they're just acquiring their way there. And, it's very, very difficult to acquire 8 to 10 to 20, 30 companies, 30 different CTOs 30 different code bases and try and integrate them to provide a delightful customer experience. And, the parallels, you know in the storage business are, are are pretty similar actually, Dell bought EMC, EMC bought a hundred companies. And, we went after a platform approach to be able to go attack them with a unified file system in a in a unified customer experience that was native for the media that we're working with. We're doing the same playbook here, you know which is you have to have the hard work of the foundation elements in place to be cloud native to deliver great outcomes, great efficacy and and a really great customer experience. So when we get head to head with any of these points coming out and trying to solve something for containers or Kubernetes, or just vulnerability discovery and management, etc, or we're competing with the legacy companies that have, a hodgepodge of acquisitions that they're trying to pull together we went North of 95% of the time. our POC win rates are phenomenal better than anything I've ever seen. We had a pretty good one to appear too. And the, the product and the experience and the efficacy kind of stand on their own once we're in those fights. So part of why we enjoy working with AWS and are really focused on building the partnership together is that it creates awareness of what could be and what possibilities all we want is a shot. And, our approach is such that you can be up and running in minutes, you know and every single one of our customers does a POC. So we'll stand behind our technology as our real differentiator compared to anybody else that's out there. >> Great. You guys had great traction going on with the company certainly saw the investment news that you mentioned earlier at the top. Why did you come on as CEO? And when did you come on and join the team? And what was the reason? What, what, what attracted you to join as the CEO of Lacework? >> Well, I've been involved in the company for since the beginning actually I invested in the early rounds participated on the board and I've always bought into this. The thesis that security is fundamentally a data problem. And if we can get the data problem and the data processing right, you know you can fundamentally change the industry but you need to have a major inflection. And that inflection is people moving to the cloud. And we all have seen it during the pandemic. things are accelerating. AWS just did their earnings yesterday. I think they increased their top-line guidance from 46 billion to 56 billion this year. I mean, it's a machine that is continuing to move forward. They have 30% market share. Azure's investing at 20% GCP still investing people are moving their businesses online aggressively. And as they shift to the cloud the rules-based approach just doesn't work. It doesn't scale. And so a new approach needs to be done. And so by being cloud native and best of breed and solving the thorny problem of this data processing problem first, you know it gives us an opportunity to use that to then extend and build a business, you know at an enduring level over the next 10 to 20 years. And that's Sutter's model, that's their playbook. They don't invest in 400 companies and kind of spray and pray, which is what most venture funds do. And I love them. They're great. And we appreciate the investment in tech, but Sutter's focus is find a really big market find a catalyst for change. In our case, it's moving to the cloud and then build a modern approach. that is 10x better in every dimension. And that attracted to me. I mean, it's, it's a, it's one of the biggest markets in tech and it's one of the most important things that we can do is a digital business is to ensure that we're secure and we're safe and the threats are becoming much more skilled much more deliberate, much better funded. And so the importance for us to ensure that company's security is really tight is, is increasingly critical. So the combination of those factors, and then as I dove back into it and talked to a bunch of customers and talk to partners and seeing the outcomes and enthusiasm that they had and the, the team is phenomenal. And so talking to them, and I just kind of got energized by the opportunity to go build a really important company that really delivers great outcomes. So I'm having a ball great to be back into it. >> Yeah. It's great to have leadership that has experienced that you have and go to the next level because this is classic next level. When you talk about Amazon's earnings and cloud scale and hybrid and edge right around the corner at scale as well. So you start to see that transformation really hit the tipping point, which is changing the landscape on the developer side, which I think is super valuable. I think you hit that. You mentioned core problem. You guys look at that through the lens of data problem. How does this trend of everything going hybrid and soon to be, you know edge core to edge impact your businesses of tailwind? How do you see you capturing that next level of scale from a business perspective for lease work? >> Well, I think that the trend, you know from core to edge, you know, hybrid and, you know ultimately cloud a hundred percent, there we've started with the cloud native businesses. Like, we've been focusing on those companies that are already there, you know and so now we're we just had finished a phenomenal record-breaking Q1 and multiple seven figure deals, you know with very complex global environments where they do have a hybrid environment and they are leveraging the edge. And we're perfect for that. I mean, as you think about what we deliver in its most simplistic context, you know we're effectively delivering a security solution from the container to control plane, right. You know we want to be able to have a granular understanding of operated trillions of data points coming in and those can be collected in the core. They can be collected on-prem. They can be collected in the cloud. Ultimately they need to be collected and then contextualized so, you know and this is where our behavioral polygraph technology transitions data into information that's useful via the polygraph. And so we think that, the complexity that's added with environments that are hybrid environments that are leveraging the edge environments that are leveraging the cloud native all need a control plane to run across that to deliver efficacy, you know, for our customers. And, we work with, you know AWS has their own security tools. Azure has some security tools UCPs security tools, but ultimately, our, our challenge and opportunity is to be best of breed to deliver incremental value on top of that and that horizontal value across it. so customers have choice but they know that their security posture is, is, is secure. And so we, we see it as a tailwind for our businesses as we go forward. >> I always said the companies that have the horizontal scalability with cloud and then have that vertical AI kind of vibe where you can get in the context of the data is there to win it all. And I think that you guys have a great solution potentially there. I want to get more information if you don't mind double clicking on that with me, this is kind of a different take on cloud security because you've got the scalability, which gives you the observation space. And then you got to get the context to get the right patterns or whatever magic you guys have in the, in the secret sauce. But you doing that on top of massive exponential velocity. >> Yeah. >> Where's that secret sauce? Is it in the compute? Is it in the software? What's different about what you guys have in security to give us a- >> It's all in the, it's all in the software. Ultimately, it's the intelligence of how you capture it how you ingest it, how you, you process it but then ultimately how you, how you contextualize it and then how you apply it to different problems. and so the attack surface area and security is a very broad, that's why there's so many point solutions that are out there. And so the breadth of solutions, you know we just want to continue to add solutions and capabilities on top of this polygraph security architecture that allows for the same kind of simple experience, the same kind of 10x value proposition, but, but, but wider. And so we can eliminate more and more of those of those point solutions. So, our, our thinking on it is that, you know we can participate once we have a customer the land and expand motion of what we have. We want to make it really really frictionless for customers to try our technology. And so that's why we do POC. That's why it only takes a couple of minutes and you can do it for just Kubernetes or just containers or just vulnerability discovery and managed like wherever your specific pain point is. We want to help identify what that is, you know give you a chance to try it. And then once we prove ourselves it's very easy to extend that across the board. So we get natural growth in velocity from people moving to cloud and just, you know more usage of, of compute and storage and sort of etc, but breadth of actually the security or posture or a tax service that they have as well. So, you know so I think we have an opportunity to benefit from, from both the depth and the breadth, you know but the value that we're delivering is ultimately the software that we're running on top of the infrastructure. And you mentioned observability, there's a number of companies that are leveraging the data and insights collected in different ways to converge security and observability over time. And, we see that, you know that ultimately there's a very very big security company that needs to be built. That really is best of breed, but the data and the insights that we're providing to our primary customer, which is really DevOps. I mean, it's really the development communities and the builders or who we're changing security for and enabling, in addition to the security teams, you know we think that we're going to continue to drive software that adds value on that data set and it can be applied to multiple problems in the future. So today security is a massive market. We're going to focus there, but it does. It does extend pretty naturally to other markets >> It's a hot market security. Everyone needs to have the latest and greatest and also has to be effective. I got to ask you specifically around startup transition to a rapidly growing company to now you're going to the next level where you're starting to having to get into some serious, big complex enterprise go to market sales motions. So what's in it for the customer. What's the, what's the pain point? What's the customer orientation. What do you marketing into as a solution? Is it the developer? Is it the CSO? Is it the CXO, what's in it for the enterprise? Why Lacework, why are they engaging? You guys get record numbers. What's the, what's in it for them. What's the, if I'm the customer what's in it for me? >> Ultimately efficacy, which is your security posture is it goes up significantly, simplicity, which is makes it easier for you to do your other jobs, you know and I'll have to look for those needles in a haystack and ROI, you know which is it's just compelling, and much, much more efficient than what, what you're doing today. So that that's a pretty universal value proposition and applies to cloud native businesses that are high growth that applies to government agencies. It applies to a large complex enterprises. We have a wonderful kind of go to market motion right now. I think Andy Byron and the team who've been here have really done a wonderful job of really making the customer buying experience and the journey really efficient, you know and help them quantify the impact and the risks and then deliver value. And I think, that that applies in sort of the commercial mid-market and cloud native space. And like I mentioned, we had, a number of deals in the quarter that were seven figure deals, you know in very complex organizations with massive demands. And, you know it ultimately selling is a team sport and, you know and still having the process and the rigor, that's there fine tuning that to make sure you have the people and the partnerships, you know, that deliver solutions in the way that customers want to buy them and then ultimately deliver a value proposition that is just unquestionably better. And I think we have all of those elements, you know we'll be entering the, the large enterprise very aggressively in the quarters to come. I that's where I've come from, you know running a multi-tool, you know, kind of go to market engines where you've got mid-market commercial enterprise large enterprise government across all geographies is, is really fun to expand. And, we're we're hiring as fast as we can maintain quality, you know? And so we're out of that startup phase now and entering into real scale. And, I think that, you know in the AWS marketplace I think we're the number one startup vendor. If I, if I got my facts, right. for, for private offers, we're one of the top security players and top 50 ISBs in the marketplace overall. And so in order for us to get the motion we need to make sure that we're delivering our value in the context of how companies want to buy it. And people want to use AWS credits, you know to apply to their solutions. And so it's really important for us to make that frictionless buying experience occur. And so we're excited about it. I think we've got a really nice start and it's the fun part of building companies, which is how do you attune things to make sure you're making it really really easy for the market to absorb your technology. And then once you're there, delight the hell out of them and just make sure that, that there's that they're excited in our, our net retention rates are the best I've seen in the marketplace. Our net promoter scores, you know, are in the high fifties low sixties, which, which is fantastic in this space. I think it's best in class by order of magnitude some players, big SIM players that are out there, you know have a customer in net promoter score of four. You know that means 96% of the people or 96 boats that says they wouldn't recommend the solution to their, to their peers. So, at pure, we've got this at scale. So from 70 to, in the, in the low eighties I think we have the opportunity to do the same thing here. So, combination of tailoring the motion that we have making it really easy for the buyer to buy what they want with whom they want from whom they want, you know and then just spreading a value proposition. That is a no brainer is, is I think the secret recipe >> If anything, it's interesting, you know you're so much experience in the enterprise and tech with cloud native you're basically laying out the success formula, which is if you have a value proposition you should be able to get it in quickly. You don't need the top down. win everything you can have a value proposition that can be enabled for usage and then grow rapidly when it's successful and that's cloud, that's the cloud business model. So it's not so much about organic versus this. It's really what the preferred motion is. >> It's speed, and I think developers in particular it's why the cloud happened, right? I.T wasn't delivering services in, in the speed and the efficacy that, that, that the developers wanted. And so in order to appeal to the developer community you need to deliver something that's frictionless and easy and fits into JIRA and fits into their workflow processes and speaks their language. And so we built our platform and our solutions for builders because that's where the money is. That's where the pain point is and that's and they want to build secure code. They just don't want to be told no. And so, we want to automate that process and make code secure and do that, you know in the build phase and then do it in the runtime. And then across the CICD pipeline we want to continuously be adding value across that. And, and the developers, candidly when pure bought the solution, many years ago and I introduced him to the company, it was it was the general manager of our software business unit that bought it not the security team. And I think that's a trend that is continuing that we're going to focus on. >> A lot of people realize that security and compliance and automation kind of all go together where you don't want to disrupt developers to kind of engineer something just to do an integration, for instance. So there's a real business model impact that you're hitting on here. That's not just a technical solution. It's really how the business is operating. And I think that to me is super interesting use case. What's your reaction to that? Do you see this as a, as a- >> No it's, that's that's that third part that I was talking about, you know which is that's most exciting is that, you know people are calling shift left, right. so moving, you know security into the development pipeline as it's happening and in integrating security architects as value added into the development organizations themselves and leveraging automated machine learning tools like ours to be able to simplify and automate the process versus slowing it down. So we think that shift left is, is super exciting and, and will continue. And we actually think we're the leaders in that space. We want to continue to be the leaders in that. >> Congratulations, great insight. Awesome to have you on and to hear from your experience and also the great venture that your scaling up and to the next level. Lacework, David thanks for coming on, but I'll give you the last minute to close us out. Give us a quick plug for the company vitals, what you're working on now, what you're looking for, you're obviously hiring give a quick plug for Lacework. What you, what are you working on? >> So, number one, we love our partnership with AWS. And so we're going to continue to invest, invest there. Two the businesses growing North of 300% year over year. That means that we've got record breaking growth and lots of hiring. So we're hiring across all functions. And three give us an opportunity. I, I think that, you know, you can fundamentally we want to be the bar of what you define all other security companies and all the technology companies. So it's a high bar. We want to make it frictionless, frictionless to try give us a shot, give us some feedback. And I'm grateful and privileged to be part of this, this wonderful team. So look forward to spending more time with you, John, in the future. >> Man, looking forward to a lot lots of talk about David Hatfield CEO of Lacework great company scaling up again. Another success story in cloud, cloud native as Po, COVID comes to a close, if you will for this phase and people get back to real life. The scale of cloud is going to be leading it and a new technology is going to be powering it. This is theCube conversation. I'm John Furrier. Thanks for watching. (soft music playing) (music fades)

>> From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. (intense music) >> Hi, everybody, this is Dave Vellante in theCUBE, and as you know, I've been doing a CEO series, and welcome to the isolation economy. We're here at theCUBE's remote studio, and really pleased to have Charlie Giancarlo, who is the CEO of PureStorage. Charlie, I wish we were face-to-face at Pure Accelerate, but this'll have to do. Thanks for coming on. >> You know, Dave, it's always fun to be face-to-face with you. At Pure Accelerate when we do it in person is great fun, but we do what we have to do, and actually, this has been a great event for us, so appreciate you coming on air with me. >> Yeah, and we're going to chat about that, but I want to start off with this meme that's been going around the internet. I was going to use the wrecking ball. I don't know if you've seen that. It's got the people, the executives in the office building saying, "Eh, digital transformation; "not in my lifetime," complacency, and then this big wrecking ball, the COVID-19. You've probably seen it, but as you can see here, somebody created a survey, Who's leading the digital transformation at your company? The CEO, the CTO, or of course circled is COVID-19, and so we've seen that, right? You had no choice but to be a digital company. >> Well, there's that, and there's also the fact that the CEOs who've been wanting to push a digital transformation against a team that wants to stick with the status quo, it gives the CEO now, and even within our own company in Pure, to drive towards that digital transformation when people didn't really take up the mantle. So no, it's a great opportunity for digital transformation, and of course, the companies that have been doing it all along have been getting ahead during this crisis, and the ones that haven't are having some real trouble. And you and I have had some really interesting conversations. Again, that's, I think, the thing I miss most, not only having you in theCUBE, but the side conversations at the cocktail parties, et cetera. And we've talked about IP, and China, and the history of the US, and all kinds of interesting things there, but one of the things I want to put forth, and I know you guys, Kix especially, has done a lot of work on Tech For Good, but the narrative pre-COVID, PC I guess we'd call it, was really a lot of vitriol toward big tech especially, but you know what? That tech lash... Without tech, where would we be right now? >> Well, just think about it, right? Where would we be without videoconferencing, without the internet, right? We'd be sheltered in place with literally nothing to do, and all business would stop, and of course many businesses that require in-person have, but thank God you can still get goods at your home. You can still get food, you can still get all these things that today is enabled by technology. We've seen this ourselves, in terms of having to make emergency shipments during our first quarter to critical infrastructure to keep things going. It's been quite a quarter. I was saying to my team recently that we had just gotten everyone together in February for our sales kickoff for the year, and it felt like a full year since I had seen them all. >> Well, I had interviewed, I think, is it Mike Fitzgerald, your head of supply chain. >> Yes. >> In March, and he was saying, "No. "We have no disruptions. "We're delivering for clients," and we certainly saw that in your results in the quarter. >> Yeah, no, we're very fortunate, but we had been planning for doing our normal business continuity disaster planning, and actually, once we saw COVID in Asia in January we started exercising all those muscles, including pre-shipping product around to depos around the world in case transportation got clogged, which it in fact did. So we were well-prepared, but we're also, I think, very fortunate in terms of the fact that we had a very distributed supply chain. >> Yeah, I mean you guys obviously did a good job. You saw in Dell's earnings they held pretty firm. HPE, on the other hand, really saw some disruption, so congratulations to you and the team on that. So as we think about exiting this isolation economy, we've done work that shows about 44% of CIOs see a U-shaped recovery, but it's very fragmented. It varies by industry. It varies by how digital the organizations are. Are they able to provide physical distancing? How essential are these organizations? And so I'm sure you're seeing that in your customer base as well. How are you thinking about exiting this isolation economy? >> Well, I've certainly resisted trying to predict a U- or a V-shape, because I think there are many more unknowns than there are knowns, and in particular, we don't know if there's a second wave. If there is a second wave, is it going to be more or less lethal than the first wave? And as you know, maybe some of your audience knows, I contracted COVID in March. So I've done a lot of reading on not just COVID, but also on the Spanish flu of 1918-1919. It's going to take a while before this settles down, and we don't know what it's going to look like the rest of the year or next year. So a lot of the recovery is going to depend on that. What we can do, however, is make sure that we're prepared to work from home, work in the office, that we make sure that our team out in the field is well-placed to be able to support our customers in the environment, and the way that we're incenting our overall team now has less to do with the macro than it does with our specific segment, and what I mean by that is we're incenting our team to continue to build market share, and to continue to outperform our competition as we go forward, and also on our customer satisfaction figure, which you know is our Net Promoter Score, which is the highest in the industry. So that's how we're incenting our team. >> Yeah, and we're going to talk about that, and by the way, yes, I did know, and it's great to see you healthy, and I'd be remiss if I didn't also express my condolences, Matt, the loss of Matt Danziger, your head of IR, terrible tragedy. Of course Matt had some roots in Boston, went to school in Maine. >> Yeah. >> Loved Cape Cod, and so really sad loss, I'm sure, for all of the Puritans. >> It's affected us all very personally, because Matt was just an incredible team member, a great friend, and so young and vital. When someone that young dies for almost unexplainable reasons. It turned out to be a congenital heart condition that nobody knew about, but it just breaks... It just breaks everyone's heart, so thank you for your condolences. I appreciate it. >> You're welcome. Okay, so let's get into the earnings a little bit. I want to just pull up one of the charts that shows roughly, I have approximately Q1 because some companies like NetApp, Dell, HPE, are sort of staggered, but the latest results you saw IBM growing at 19%. Now we know that was mainframe-driven in a very easy compare. Pure plus 12, and then everybody else in the negative. Dell, minus five, so actually doing pretty well relative to NetApp and HPE, who, as I said, had some challenges with deliveries. But let's talk about your quarter. You continue to be the one sort of shining star in the storage business. Let's get into it. What are your big takeaways that you want us to know about? >> Well, of course I'd rather see everybody in the black, right, everybody in the positive, but we continue to take market share and continue to grow 20 to 30% faster than the rest of the industry combined, and it's quarter after quarter. It's not just a peak in one quarter and then behind in another quarter. Every quarter we're ahead of the rest of the industry, and I think the reasoning is really quite straightforward. We're the one company that invests in storage as if it's high technology. You do hear quite often, and even among some customers, that storage is commoditized, and all of our competitors invest in it, or don't invest in it, as if it's a commoditized market. Our view is quite straightforward. The science and the engineering of computing and data centers continues to evolve, continues to advance, has to advance if we continue down this path of becoming more of a digital economy. As we all know, processors advance in speed and capability. Networking advances in terms of speed and capability. Well, data storage is a third of data center spend, and if it doesn't continue to advance at the same pace or faster than everything else, it becomes a major bottleneck. We've been the innovator. If you look at a number of different studies, year after year, now over six or seven years, we are the leader in innovation in the data storage market, and we're being rewarded for that by penetrating more and more of the customer base. >> All right, let's talk about that. And you mentioned in your keynote at Accelerate that you guys spend more on R&D as a percentage of revenue than anybody, and so I want to throw out some stats. I'm sorry, folks, I don't have a slide on this. HPE spends about 1.8 billion a year on R&D, about 6% of revenues. IBM, I've reported on IBM and how it's spending the last 10 years, spent a huge amount on dividends and stock buybacks, and they spent six billion perpetually on R&D, which is now 8% of revenue. Dell at five billion. Of course Dell used to spend well under a billion before the EMC acquisition. That's about 6% of revenue. And NetApp, 800 million, much higher. They're a pure play, about 13%. Pure spends 430 million last year on R&D, which is over 30% of revenue on R&D, to your point. >> Yeah, yeah, well, as I said, we treat it like it's high technology, which it is, right? If you're not spending at an appropriate level you're going to fall behind, and so we continue to advance. I will say that you mentioned big numbers by the other players, but I was part of a big organization as well with a huge R&D budget, but what matters is what percent of the revenue of a specific area are you spending, right? You mentioned Dell and VMware. A very large fraction of their spend is on VMware. Great product and great company, but very little is being spent in the area of storage. >> Well, and the same thing's true for IBM, and I've made this point. In fact, I made this point about Snowflake last week in my breaking analysis. How is Snowflake able to compete with all these big whales? And the same thing for you guys. Every dime you spend on R&D goes to making your storage products better for your customers. Your go-to-market, same thing. Your partner ecosystem, same thing, and so you're the much more focused play. >> Right, well I think it boils down to one very simple thing, right? Most of our competitors are, you might call them one-stop shops, so the shopping mall of IT gear, right? The Best Buy, if you will, of information technology. We're really the sole best of breed player in data storage, right, and if you're a company that wants two vendors, you might choose one that's a one-stop shop. If you have the one-stop shop, the next one you want is a best of breed player, right? And we fill that role for our customers. >> Look it, this business is a technology business, and technology and innovation is driven by research and development, period, the end. But I want to ask you, so the storage business generally, look, you're kind of the one-eyed man in the land of the blind here. I mean the storage business has been somewhat on the back burner. In part it's your fault because you put so much flash into the data center, gave so much headroom that organizations didn't have to buy spindles anymore to get to performance, the cloud has also been a factor. But look, last decade was a better decade for storage than the previous decade when you look at the exits that you guys had and escape velocity, Nutanix, if you can kind of put them in there, too. Much larger than say the Compellents or 3PARs. They didn't make it to a billion. So my question is storage businesses, is it going to come back as a growth business? Like you said, you wish everybody were in the black here. >> Right, well a lot of what's being measured, of course, is enterprise on-prem storage, right? If we add on-prem and cloud, it actually continues to be a big growth business, because data is not shrinking. In fact, data is still growing faster than the price reduction of the media underneath, right, so it's still growing. And as you know, more recently we've introduced what we call Pure as-a-Service and Cloud Block Store. So now we have our same software, which we call Purity, that runs on our on-prem arrays, also running on AWS, and currently in beta on Azure. So from our point of view this is a... First of all, it's a big market, about $30 to $40 billion total. If you add in cloud, it's another $10 to $15 billion, which is a new opportunity for us. Last year we were about 1.65 billion. We're still less than, as you know, less than 10% of the overall market. So the opportunity for us to grow is just tremendous out there, and whether or not total storage grows, for us it's less important right now than the market share that we pick up. >> Right, okay, so I want to stay on that for a minute and talk about... I love talking about the competition. So what I'm showing here with this kind of wheel slide is data from our data partner ETR, and they go out every quarter. They have a very simple methodology. It's like Net Promoter Score, and it's very consistent. They say relative to last year, are you adopting the platform, that's the lime green, and so this is Pure's data. Are you increasing spend by 6% or more? That's the 32%, the forest green. Is spending going to be flat? Is it going to decrease by more than 6%? That's the 9%. And then are you replacing the platform, 2%. Now this was taken at the height of the US lockdown. This last survey. >> Wow. >> So you can see the vast majority of customers are either keeping spending the same, or they're spending more. >> Yeah. >> So that's very, very strong. And I want to just bring up another data point, which is we like to plot that Net Score here on the vertical axis, and then what we call market share. It's not like IDC market share, but it's pervasiveness in the survey. And you can see here, to your point, Pure is really the only, and I've cited the other vendors on the right hand, that box there, you're the only company in the green with a 40% Net Score, and you can see everybody else is well below the line in the red, but to your point, you got a long way to go in terms of gaining market share. >> Exactly, right, and the reason... I think the reason why you're seeing that is really our fundamental and basic value is that our product and our company is easy to do business with and easy to operate, and it's such a pleasure to use versus the competition that customers really appreciate the product and the company. We do have a Net Promoter Score of over 80, which I think you'd be hard-pressed to find another company in any industry with Net Promoter Scores that high. >> Yeah, so I want to stay on the R&D thing for a minute, because you guys bet the company from day one on simplicity, and that's really where you put a lot of effort. So the cloud is vital here, and I want to get your perspective on it. You mentioned your Cloud Block Store, which I like that, it's native to AWS. I think you're adding other platforms. I think you're adding Azure as well, and I'm sure you'll do Google. >> Azure, Azure's in beta, yes. >> Yeah, Google's just a matter of time. Alibaba, you'll get them all, but the key here is that you're taking advantage of the native services, and let's take AWS as an example. You're using EC2, and high priority instances of EC2, as an example, to essentially improve block storage on Amazon. Amazon loves it because it sells Compute. Maybe the storage guys in Amazon don't love it so much, but it's all about the customer, and so the native cloud services are critical. I'm sure you're going to do the same thing for Azure and other clouds, and that takes a lot of investment, but I heard George Kurian today addressing some analysts, talking about they're the only company doing kind of that cloud native approach. Where are you placing your bets? How much of it is cloud versus kind of on-prem, if you will? >> Yeah, well... So first of all, an increasing fraction is cloud, as you might imagine, right? We started off with a few dozen developers, and now we're at many more than that. Of course the majority of our revenue still comes from on-prem, but the value is the following in our case, which is that we literally have the same software operating, from a customer and from a application standpoint. It is the same software operating on-prem as in the cloud, which means that the customer doesn't have to refactor their application to move it into the cloud, and we're the one vendor that's focused on block. What NetApp is doing is great, but it's a file-based system. It's really designed for smaller workloads and low performance workloads. Our system's designed for high performance enterprise workloads, Tier 1 workloads in the cloud. To say that they're both cloud sort of washes over the fact that they're almost going after two completely separate markets. >> Well, I think it's interesting that you're both really emphasizing cloud native, which I think is very important. I think that some of the others have some catching up to do in that regard, and again, that takes a big investment in not just wrapping your stack, and shoving it in the cloud, and hosting it in the cloud. You're actually taking advantage of the local services. >> Well, I mean one thing I'll mention was Amazon gave us an award, which they give to very few vendors. It's called the Well-Architected AWS Award, because we've designed it not to operate, let's say, in a virtualized environment on AWS. We really make use of the native AWS EC2 services. It is designed like a web service on EC2. >> And the reason why this is so important is just, again, to share with our audience is because when you start talking about multi-cloud and hybrid cloud, you want the same exact experience on-prem as you do in the cloud, whether it's hybrid or across clouds, and the key is if you're using cloud native services, you have the most efficient, the highest performance, lowest latency, and lowest cost solution. That is going to be... That's going to be a determinate of the winner. >> Yes, I believe so. Customers don't want to be doing... Be working with software that is going to change, fundamentally change and cause them to have to refactor their applications. If it's not designed natively to the cloud, then when Amazon upgrades it may cause a real problem with the software or with the environment, and so customers don't want that. They want to know they're cloud native. >> Well, your task over the next 10 years is something. Look it, it's very challenging to grow a company the size of Pure, period, but let's face it, you guys caught EMC off-guard. You were driving a truck through the Symmetrics base and the VNX base. Not that that was easy. (chuckling) And they certainly didn't make it easy for ya. But now we've got this sort of next chapter, and I want to talk a little bit about this. You guys call it the Modern Data Experience. You laid it out last Accelerate, kind of your vision. You talked about it more at this year's Accelerate. I wonder if you could tell us the key takeaways from your conference this year. >> Right, the key takeaway... So let me talk about both. I'll start with Modern Data Experience and then key takeaways from this Accelerate. So Modern Data Experience, for those that are not yet familiar with it, is the idea that an on-prem experience would look very similar, if not identical, to a cloud experience. That is to say that applications and orchestrators just use APIs to be able to call upon and have delivered the storage environment that they want to see instantaneously over a high speed network. The amazing thing about storage, even today, is that it's highly mechanical, it's highly hardware-oriented to where if you have a new application and you want storage, you actually have to buy an array and connect it. It's physical. Where we want to be is just like in the cloud. If you have a new application and you want storage or you want data services, you just write a few APIs in your application and it's delivered immediately and automatically, and that's what we're delivering on-prem with the Modern Data Experience. What we're also doing, though, is extending that to the cloud, and with Cloud Block Store as part of this, with that set of interfaces and management system exactly the same as on-prem, you now have that cloud experience across all the clouds without having to refactor applications in one or the other. So that's our Modern Data Experience. That's the vision that drives us. We've delivered more and more against it starting at the last Accelerate, but even more now. Part of this is being able to deliver storage that is flexible and able to be delivered by API. On this Accelerate we delivered our Purity 6.0 for Flash Array, which adds not only greater resiliency characteristics, but now file for the first time in a Flash Array environment, and so now the same Flash Array can deliver both file and block. Which is a unified experience, but all delivered by API and simple to operate. We've also delivered, more recently, Flash Array 3.0... I'm sorry, Purity 3.0 on FlashBlade that delivers the ability for FlashBlade now to have very high resiliency characteristics, and to be able to even better deliver the ability to restore applications when there's been a failure of their data systems very, very rapidly, something that we call Rapid Restore. So these are huge benefits. And the last one I'll mention, Pure as-a-Service allows a customer today to be able to contract for storage as a service on-prem and in the cloud with one unified subscription. So they only pay for what they use. They only pay for what they use when they use it, and they only pay for it, regardless of where it's used, on-prem or in the cloud, and it's a true subscription model. It's owned and operated by Pure, but the customer gets the benefit of only paying for what they use, regardless of where they use it. >> Awesome, thanks for that run through. And a couple other notes that I had, I mean you obviously talked about the support for the work from home and remote capabilities. Automation came up a lot. >> Yep. >> You and I, I said, we have these great conversations, and one of the ones I would have with you if we were having a drink somewhere would be if you look at productivity stats in US and Europe, they're declining-- >> Yes. >> Pretty dramatically. And if you think about the grand challenges we have, the global challenges, whether it's pandemics, or healthcare, or feeding people, et cetera, we're not going to be able to meet those challenges without automation. I mean people, for years, have been afraid of automation. "Oh, we're going to lose jobs." We don't have enough people to solve all these problems, and so I think that's behind us, right-- >> Yeah, I agree. >> The fear of automation. So that came up. Yeah, go ahead, please. >> I once met with Alan Greenspan. You may remember him. >> Of course. >> This is after he was the chairman, and he said, "Look, I've studied the economies now "for the last 100 years, "and the fact of the matter is "that wealth follows productivity." The more productive you are as a society, that means the greater the wealth that exists for every individual, right? The standard of living follows productivity, and without productivity there's no wealth creation for society. So to your point, yeah, if we don't become more productive, more efficient, people don't live better, right? >> Yeah, I knew you'd have some good thoughts on that, and of course, speaking of Greenspan, we're seeing a little bit of rational exuberance maybe in the market. (chuckling) Pretty amazing. But you also talked about containers, and persisting containers, and Kubernetes, the importance of Kubernetes. That seems to be a big trend that you guys are hopping on as well. >> You bet. It is the wave of the future. Now, like all waves of the future, it's going to take time. Containers work entirely differently from VMs and from machines in terms of how they utilize resources inside a data center environment, and they are extraordinarily dynamic. They require the ability to build up, tear down connections to storage, and create storage, and spin it down at very, very rapid rates, and again, it's all API-driven. It's all responsive, not to human operators, but it's got to be responsive to the application itself and to the orchestration environment. And again, I'll go back to what we talked about with our Modern Data Experience. It's exactly the kind of experience that our customers want to be able to be that responsive to this new environment. >> My last question is from John Furrier. He asked me, "Hey, Charlie knows a lot about networking." We were talking about multi-cloud. Obviously cross-cloud networks are going to become increasingly important. People are trying to get rid of their MPLS networks, really moving to an SD-WAN environment. Your thoughts on the evolution of networking over the next decade. >> Well, I'll tell you. I'm a big believer that even SD-WANs, over time, are going to become obsolete. Another way to phrase it is the new private network is the internet. I mean look at it now. What does SD-WAN mean when nobody's in the local office, right? No one's in the remote office; they're all at home. And so now we need to think about the fact... Sometimes it's called Zero Trust. I don't like that term. Nobody wants to talk about zero anything. What it really is about is that there is no internal network anymore. The fact of the matter is even for... Let's say I'm inside my own company's network. Well, do they trust my machine? Maybe not. They may trust me but not my machine, and so what we need to have is going to a cloud model where all communication to all servers goes through a giant, call it a firewall or a proxy service, where everything is cleaned before it's delivered. People, individuals only get, and applications, only get access to the applications that they're authorized to use, not to a network, because once they're in the network they can get anywhere. So they should only get access to the applications they're able to use. So my personal opinion is the internet is the future private network, and that requires a very different methodology for authentication for security and so forth, and if we think that we protect ourselves now by firewalls, we have to rethink that. >> Great perspectives. And by the way, you're seeing more than glimpses of that. You look at Zscaler's results recently, and that's kind of the security cloud, and I'm glad you mentioned that you don't like that sort of Zero Trust. You guys, even today, talked about near zero RPO. That's an honest statement-- >> Right. >> Because there's no such thing as zero RPO. (chuckling) >> Right, yeah. >> Charlie, great to have you on. Thanks so much for coming back in theCUBE. Great to see you again. >> Dave, always a pleasure. Thank you so much, and hopefully next time in person. >> I hope so. All right, and thank you for watching, everybody. This is Dave Vellante for theCUBE, and we'll see you next time. (smooth music)

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's The Cube, covering PureStorage Accelerate 2018. Brought to you by PureStorage. (upbeat electronic music) >> Man: Graduated ASU. >> Welcome back to PureStorage Accelerate 2018. I am Lisa Martin with The Cube, sporting the clong of Prince, formerly known as, today because we are at the Bill Graham Civic Auditorium, a really cool concert venue that's been here since 1950 and I'm joined by Dave The Who Vellante today. >> Play the toast and tea. (laughs) >> Pretty groovy T-shirt there. And we're joined by a couple of guys, next we've got Axel Streichart, the senior director of business application solutions from Pure and John Meng, senior director of IT operations at Simpson Strong-Tie. Hi guys! >> Hi. >> Lisa: Welcome to The Cube! >> Thank you. >> Thank you. >> So John, first question to you. Tell us about Simpson Strong-Tie. Who are you guys, obviously you're a Pure customer, but give us a little bit of an orientation to the business. >> Sure, so Simpson Strong-Tie, we're a public company based out of Pleasanton, California. We've been in business since about 1956, if I've got my history right, so we've been around for quite a long time. We're a manufacturing organization. Basically, if you're building a home or a deck or if you're needing to put two by fours together, our niche is that little connector, that bracket that connects those two by fours and we do pretty well in that business. Overall our revenue is just shy of a billion dollars, so a pretty decent sized organization. >> Dave: So Pure passed you. >> Yes, last year, you know. >> You okay with that or? >> I'm okay with that. (all laugh) >> So tell us about, from a business perspective, the need for PureStorage specifically with respect to your SAP journey. >> So a couple of years ago when I came on board, the business had made a decision that they were going to get off of their old ERP system onto a new ERP system. When I say old ERP system, I'm being a little respectful there. It's a homegrown application running on SQL which is basically, they lovingly called it Blue Screen because you go to fileshare and you double click on the executable that you need, for example, if you're doing accounts payable or accounts receivables or purchase orders or what have you, you double click on the executable you want, opens up a nice little blue screen and it's a DOS based blue screen and you tab around and enter all your information. They had been running on that application for about 30 years. >> Lisa: Is that all? (laughs) >> Yeah, so quite a while. >> Dave: It works. >> It works, right. If it ain't broke don't fix it, but it was developed by a single person and it was time that the company put on some bootstraps and hitched them up, so they went to market to decide on what ERP application they were going to move to and SAP won out. They had actually been running for a year on a test system hosted by SAP when I came on board, so the decision had already been made, the application wise from an ERP perspective, but the next step in our journey for Simpson, and my challenge, was how do we host this environment? Do we host it in a cloud, do we host it on-prem? And so as I took a, looking at our environment, a very distributed environment, I said, alright, well first and foremost, SAP is a centralized solution. Is there a way for us to create a single environment that our entire company could run on, not only for SAP but everything else, a mixed use environment? And I started having conversations with Pure. They actually let me talk to a couple of their existing customers who were very happy about their mixed use workload including ServiceNow who talked today, so definitely a shout out to them on the conversations we had back a couple of years ago. Anyways, Pure ended up being our foundation for currently our core tenant, which is SAP, but also the future tenant for everything else that we're going to throw on there. And it's been an incredible journey over these last couple of years with them. >> And why the decision to stay on-prem, versus go to the cloud? Was it a function of SAP really not being there in the cloud or your data, you didn't just want to shove your business into the public cloud? >> So there was definitely a lot of analysis that went into that. Just from a financial perspective, I worked with the CFO and we put together a 12 year ROI on cloud versus on-prem and just to kind of really give ourselves some understanding over time what the impact would be of renting versus owning and it was very clear that on-prem financially made sense. Then we had to talk about the business, what was the best for the business. We looked at it from a, when I came there, there was some, the project team looking at SAP had really already made their mind up. They wanted it off of IT. They wanted it in an environment that they trusted, so when I came on board I said, look this is something I've done before. We have experience, we have the in-house expertise, you just trust me that this is the right thing and let me show you how and that's where, honestly, a lot of the information that I was able to pull off of FlashStack, off of SAP, it's a certified solution, talking to ServiceNow I was able to prove to the business that look, hosting it internally made the most sense financially as well as for our business and what we were trying to achieve. >> Made you happy. >> Yeah and it's not just that, but this is a story we're hearing more often now. So customers actually trying this out in the cloud and realizing, number one, the cost, it's not that cost-efficient and effective as they were planning for and seeing, especially when you're making multiple copies of this SAP environments. The costs go through the roof and the other thing is also what a lot of customers then realize is how do you actually get your data and get your communication from your data center back to the cloud provider? You need a big pipe and this communication cost just to get the data out is huge, is sometimes huge. The other thing is SLAs. It sounds like a good thing, but in many cases, SLA's because they're not flexible, you're ending up quarter end you need help and they're saying, nope, talk to you in four days. It's not really acceptable. And the third one is, there's this whole concept around I don't really have to invest now into the knowledge, into the skill set, because I put it all in the cloud. It's not the reality. The reality, you still have to invest into the skills. Isn't that? >> Everything he has said is actually the conversations that we had in-house, absolutely. If you want to do a data migration from QA to Dev or Dev to Production or whatever your landscape is and how you want to move the data, oh, well, that's going to be a charge. Oh well, okay, well I need to spin up this extra project. Oh, well there's another charge. I mean, it's just constant nickel and diming and another key component that you hit on that I failed to mention was hosting it internally allowed us to control the end to end experience for our end users. When you're talking about hosting it in the cloud, your data is somewhere else and you can not control end to end. You can control it up to a certain extent, but then from there all you can rely on is the SLAs and, to his point, the SLAs are only what's on paper, they're not very flexible at all. >> So the business case didn't pan out for the cloud. >> Correct. >> But there's certainly attributes of the cloud that are attractive, so what are those attributes and how are you bringing those on-prem? >> So flexibility. Flexibility is huge for us, the ability to just quickly be able to spin things up and scale them back as needed. I kind of look of it as, look, there's a water line that you're going to use on a day in and day out basis for your organization. Maximize your investment there. On the peaks and valleys that you're going to have, that's where the cloud can really help and so, is cloud completely off the table for us? No, that's where we're going to be able to burst into that sort of scenario. If we need more compute, we need more spin cycles, whatever we need from the cloud, we can throw it up there and then bring it back down, so have much more controllable costs in our mind. >> So a major change in the application environment, migration, from an old platform. You had to freeze the app. Does that freeze the code? >> John: Yep. >> How long did you have to freeze the code for? >> So, when we're talking about, just making sure I understand your question. >> Your home-grown ERP, blue screen, C prompt to the SAP environment. >> Yeah, so the landscape as we have it today, we actually just went live on SAP early February and it's not company wide. It's only a certain branch. In its strength, the beauty of that previous application, it was very de-centralized and each branch where we have a high consolidation of users and workers, each branch had their own data center hosting their own ERP for their branch, so we could freeze their environment just during their time window. >> I see. >> Now the challenge for us today is as we start consolidating, those windows start to overlap, but that's honestly why we've invested in technologies like FlashStack and so forth that come with the redundancy built in so we can work on the environment without having to freeze it or bring it down. >> So you need the speed to compress those discontinuities. >> Yes, yes. >> Dave: In data. >> Absolutely. >> What about data protection? How do you, I know that's an area of expertise of yours. How do you approach data protection in this new environment? Are you doing anything differently? Where does Pure fit? >> It's actually a huge shift for us on how we do things. From a data protection standpoint, we're talking about disaster recovery, business continuity and so we have active passive data centers. We're utilizing what Pure has under the hood to be able to replicate in multiple ways. And that's the beauty of our setup that we've designed is the ability to replicate in multiple ways, because in a multi-tenant environment, yes, there are certain parts of the stack that one shoe will fit all sizes. I would say that PureStorage is that, but when you start getting to the details of each of the applications, they don't all play the same way when it comes to DR or it comes to replication or data protection and we will need to look at each one of those applications and design a data protection strategy around it as we import it in, so for SAP, we do have differencing of how we're going to protect that versus when we bring in our web servers, versus when we bring in SharePoint and other core applications to the business. >> So Axel, you mentioned, well actually it was John, you mentioned that you had the opportunity to talk to ServiceNow and maybe another customer of Pure as well when you were in this decision making process. I imagine ServiceNow's business is probably quite different from Simpson Strong-Tie, so what, Axel, I guess both of you, help us understand, what were some of the similar changes that, say, a ServiceNow faced that you were facing and then Axel, to your point, tell us a little bit about the SAP alliance that you have with Pure and how customers as big as ServiceNow and Simpson Strong-Tie are helping to evolve that relationship? >> Me first? >> Go for it. >> Alright, so one of the biggest strategies, the focus that I had when I was making the decision around hosting SAP, I really wanted to make sure I understood, did I have to go a siloed approach? Was I buying architecture specifically for SAP or could I do a multi-use workload? Multi-purpose was huge for me. I was really, I couldn't understand how, in 2016 when I was looking at this, I'm like, look, it's 2016, I know there's a solution out there that can solve this problem and so that's what I was challenging Pure and they're like, who do you want to talk to? And I said, "Well I want to talk to somebody "who's running SAP and I want to talk to somebody "who's running SAP in a mixed-workload environment." And that's where ServiceNow came into play. And when I was having conversations with them, I said, alright, so you're running mixed workload. Yes, okay, when you have an SAP performance problem, do you have to, is there a lot of effort to show that there's, where the problem in the performance is? And there was a pause on the phone and the guy actually giggled over the phone. I don't know how else to say it. And he's like, "Performance problems? "We don't have any." And so, when you hear that, especially when you're talking about SAP, which is a known beast of an application inside any environment and it will use whatever resource you throw at it and it won't play nice with other apps, when I heard that, I was like, okay, where do I sign? So it was basically that conversation that really said, alright, let's give this a try. The other thing, honestly, for us is SAP is our first tenant and as we start applying other applications to it, we already have our baseline established and we can watch as the other applications are thrown in and it's not impacting anything, SAP, or on their own. >> So FlashStack is going to be able to give you a foundation to not only scale your SAP infrastructure-- >> Absolutely. >> But also to expand to multiple workloads. >> Yeah, for example, some of our public web facing applications, we've already moved them in-house. We used to use a public service provider, a public cloud offering for this web service that I'm talking about. It would take, so you'd go out there and you'd say, you know what, I want a product catalog of all Simpson products and you hit the button. 45 minutes later, it's downloaded, 45 minutes. I took that workload and I put it in our data center. Three minutes. 45 minutes to three minutes. >> Lisa: Wow. >> And then another test was a web crawler, so we did a web crawler across that same web application to confirm when we moved it from one location to the other we didn't miss anything. In the old environment, running on a public cloud infrastructure, it took 20 minutes. 17 seconds on our own. And it was run from the same PC. There was no, it was pretty clear and honestly, when marketing felt that increase in performance and saw it and realized it, they bragged to the CFO and now the CFO's like, okay, when are we going to get this out of SAP? Well we have to get the whole company on SAP before we can really realize this investment, but they're very excited about the opportunities. >> And how long have you had the Pure infrastructure? >> We installed it probably about year and a half ago, because we had to get it prepared. We installed it about a year and a half ago. >> So you haven't had to do any upgrades yet. >> No, not major ones. We actually have our first major one this week. We're actually scheduling it, but one of the questions I was asked on an earlier panel was how due you handle outages with Pure and how has your experience been with support. Well, I'm sorry we haven't had to call support yet. I've heard great stories about it (Lisa laughs) and I know that our guys that are working with support right now to get our upgrades done, they've had nothing but praise, but honestly we haven't had a lot of interaction yet with their support, just because we haven't needed it yet. >> And you have an in-house development staff, application development team? >> Yes. >> Has their work flow changed at all in terms of being able to share data, share copies of data, are you there yet or? >> We're not there yet, but one of the goals of our environment, so we have two data centers and we have load balancers in front of the two data centers. When it comes to hosting our public web side of things, the goal is to have a green and a red environment where you develop on the red, green is your production and when it comes time, you just flip the switch and your development becomes your active. And so, basically, a lot of the nuances and strategies that you get out of public cloud, we're going to attain those using our private cloud infrastructure. >> Essentially use live data of the test environment-- >> Absolutely, absolutely. >> And then cutting over immediately. You couldn't have done that three, four, five years ago. >> Absolutely, absolutely. >> So Axel, we're just about out of time, but how common is John's story with Simpson Strong-Tie in terms of, we haven't had to call support yet. Are you hearing this resonate pretty pervasively in your SAP install base across industries? >> This is a very typical environment. I would call it almost green field, but most of the environments that we are dealing with are brown field, so customers are long-time SAP users and customers and they're going from, let's say, the Oracle environment into a HANA environment and the nice thing about this is that we are actually providing a platform that can help customers no matter where they are in their journey. If they are still in Oracle, they're already on HANA, they're moving onto AI, whatever it might be, they don't have to change anything on the infrastructure, per se, because there is no configuration or tuning necessary, whether it's Oracle, whether it's HANA, whether it's AI, so you're running it off the same platform. The other thing is that I want to mention is, because you asked me about our relationship with SAP. It's a very strong relationship, so we're actually working with SAP worldwide in their core innovation labs, so they have labs around the world where they develop new solutions together with hardware and software partners and they love to work with PureStorage because it is so simple and they're coming from a functional side. They don't care about the infrastructure at all. They're saying as long as it's simple and you can imagine they are pretty much the Switzerland of ERP. We actually recently published a white paper together with SAP around how to actually save license cost, SAP license cost, of up to 75%. Now you would ask yourself, why would SAP do that? Why would they promote something, push something, that actually cuts into their revenue? But for SAP it is more important to increase the adoption rate of HANA rather than the revenue that's behind it, so that's why we are publishing, and it's on the SAP website that you can download and you can see, together with PureStorage. It's an amazing story that we have. >> Let-- >> And honestly, that was part of why we chose Pure in the beginning, they're certified and now I didn't have to go to the business and try to convince them. It was all on paper for us. >> I can't help but notice that you brought a little kitty cat to the set, Axel. Tell us about this little stuffed animal. >> Maybe you heard it in the keynote this morning. We were talking about PureStorage is actually moving from their solution development towards engineered solutions. We want to actually put more application specific functionality and embed it directly into the array and one of the big challenges that a lot of customers have is how do I create copies, clones, and refreshes of my SAP environment? And we have customers it takes them sometimes nine days just for one copy, nine days. Why? Because it's a very complex and complicated end to end process, so we thought about why don't we take this entire process, automate this entire process, and embed it into our array, and we call this tool that we developed and that's available for everybody that, it's included in the maintenance. We call it Copy Automation Tool, CAT. >> The cat! >> That's the cat. (all laugh) >> And that's what we are, and so if people are asking, why is a cat, Copy Automation Tool. >> That's good. >> Very nice. >> I was like, where is this going? >> I like it. >> Brought it home, brought it home. >> Like you said. >> Do I get to keep this cat? Is this, oh. >> You can. >> Ah, very nice. >> This is pretty cool swag. Well Axel and John, thank you so much for stopping by and sharing with us the innovations that Pure and SAP are doing, how you are being successful, and now you are a reference customer for what you guys are achieving. >> Great story. >> Thank you. >> Thank you. >> Thanks guys, appreciate your time. >> Thank you. >> Yep. >> We want to thank you for watching The Cube. I'm Lisa Martin with Dave Vellante and cat. We are live from PureStorage Accelerate 2018. Stick around. Dave and I will be right back with our next guest. (upbeat electronic music)

>> Announcer: Live from San Fransisco It's theCUBE Covering PURE Accelerate 2017. Brought to you by PURESTORAGE. >> Welcome back to PURE Accelerate. This is theCUBE, the leader in live tech coverage. I'm Dave Vellante with my co-host Stu Miniman. This is PURE Accelerate. We're here at Pier 70. Brian McDaniel is here he's an infrastructure architect at the Baylor College of Medicine, not to be confused with Baylor University in Waco Texas, anymore. Brian Welcome to theCUBE. >> Thanks for having me appreciate it. >> You're very welcome. Tell us about the Baylor College of Medicine. >> So, Baylor College of Medicine is a, first and foremost, a teaching facility but also the leader in research and development for healthcare in the Texas Medical Center in Houston Texas. We currently employ roughly 1,500 physicians and so they occupy a multitude of institutions, not only at Baylor but other facilities and hospitals in and around the Texas Medical Center. >> So, it's kind of' healthcare morning here Stu. We've been talking about electronic medical records, meaningful use, the Affordable Care Act, potential changes there, HIPAA, saving lives. These are big issues. >> We're not at the HIMSS Conference Dave? >> We should be at HIMMS. So these are big issues for any organization in healthcare. It's just exacerbates the challenges on IT. So, I wonder if you can talk about some of the drivers in your business, compliance, and in new tech and maybe share with us some of the things that you're seeing. >> Absolutely so first and foremost, we are an Epic system shop. That's our EMR. So, from a enterprise and clinical operation, that is our number one mission critical application. It provides your electronic medical records to our staff, regardless of where they're physically located at. So that alone is a demanding type of solution if you will, the mobility aspect of it. Delivering that in a fast manner and a repeatable manner is upmost important to our physicians because they're actually seeing patients and getting to your records and being able to add notes and collaborate with other institutions if necessary. So, time to market is very important and accessibility is also up there. >> Right so, you mentioned that collaboration and part of that collaboration is so much data now, being able to harness that data and share it. Data explodes everywhere but in healthcare, there's so much data to the extent we start instrumenting things. What are you guys doing with all that data? >> Right now, it lives within the clinical application, right in Epic, but as you pointed out that is where the value is. that is where your crown jewels so to speak are at. That data is now being looked at as a possible access point outside of the clinical operation. So, it's environment is going to be even more important going forward, when you look to branch out into some of the basic sides in more of a research, to gain access to that clinical data. That historically has been problematic for the research to be done accessing that information. >> So, in the corporate we like to think of, from an IT perspective, you got to run the business, you got to grow the business, you got to transform the business. It's a little different in healthcare. You kind of got to comply. A lot of your time is spent on compliance and regulation changes and keeping up with that. And then there's got to be a fair amount that's at least attempting to do transformation and in kind of keeping up with the innovations. Maybe you could talk about that a little bit. >> Absolutely, particularly on the innovation side, we work closely with out partners at Epic and we work to decide roadmaps and how that fits into the Baylor world. Case in point, a year ago we were set to go to the new version of Epic, which was 2015. And Epic is nice enough to lay out requirements for you and say, here's what your system needs to meet in order to comply with Epic standards. So, they give you a seal of approval, so to speak. And there's monetary implications for not meeting those requirements. So it's actually dollars and cents. It's not just , we want you to meet this. If you do then there's advantages to meeting it. So, they provided that to us and went though the normal testing phases and evaluations of our current platform, both from compute and storage. And honestly we struggled to meet their requirements with our legacy systems. So the team was challenged to say well, what can we do to meet this? We have our historical infrastructures, so if we're going to deviate from that, let's really deviate and look at what's available to the market. So, Flash comes to mind immediately. So, there's a multitude of vendors that make Flash storage products. So we started meeting with all of 'em, doing our fact finding and our data gathering, meeting with all of 'em. First and foremost, they have to be Epic certified. That eliminated a couple of contenders right off the bat. Right? You're not certified. >> I would expect some of the startups especially. >> It did. Some of the smaller, Flash vendors, for example, one of 'em came in and we said, well, what do you do with Epic? And they said what's Epic. And you kind of scratch your head and say thank you. >> Thank you for playing. >> Here's the door. So, it eliminates people but then when we meet with PURE, and we talked to them and we meet 'em and you get to really know that the family and the culture that they bring with the technology. Yes it's got to be fast but Flash is going to be fast. What else can you do? And that's where you start learning about how it was born on Flash, how it was native to Flash and so you get added benefits to the infrastructure by looking at that type of technology, which ultimately led us there, where we're at running Epic on our Flash arrays. >> And Brian, you're using the Flash stack configuration of converge infrastructure. It sounds like it was PURE that lead you that way as opposed to Cisco? Could you maybe walk us through that? >> That's very interesting, so we're a UCS shop. We were before PURE. So when PURE came in, the fact that they had a validated design with the Flash stack infrastructure, made it all that more easier to implement the PURE solution because it just is modular enough to fit in with our current infrastructure. That made it very appealing that we didn't have to change or alter much. We just looked at the validated design that says, here's your reference architecture, how it applies to the Flash stack. You already have UCS. We love it, we're a big fan. And here's how to implement it. And it made the time to market, to get production work loads on it, very quick. >> And the CVD that you got from Cisco, that's Cisco plus PURE but was it healthcare Epic specific or was that the PURE had some knowledge for that that they pulled in? >> So, that was one of the value adds that we feel PURE brought was the Epic experience. And whether that's scripting, the backups, and if you're familiar with Epic, the environmental refreshes that they have to do. There's seven Epic environments. And they all have to refresh off of each other and play off of each other so, >> So you have a window that you have to hit right. >> And you do right? And historically that window's been quite large. And now, not so much which makes everybody happy. >> Hey, that's what weekends are for. >> Absolutely, yeah, our DBAs attest to that right? So, we would like to think we've made their world and life a little bit more enjoyable 'cause those weekends now, they're not having to babysit the Epic refreshes. Back to the point of Epic experience, that was instrumental in the decision makings from a support with the PURESTORAGE help desk, awareness of what it takes to run Epic on PURE, and then going forward knowing that there's a partnership behind Epic and PURE and certainly Baylor College of Medicine as we continue to look at the next versions of Epic, whether that's 2018 and on to 2020, whatever that decision is, we know that we have a solid foundation now to grow. >> And Brian I'm curious, you've been a Cisco shop for a while, Cisco has lots of partnerships as well as, they've got a hyper-converged offering that they sell themselves. What was your experience working with Cisco and do they just let you choose and you said, I want PURE and they're like, great? Do you know? What was that like? >> To your point, there's validated designs for many customers and Cisco is kind of at the hub of that, that core with the compute and memory of the blade systems, the UCS. They liked the fact that we went with PURE 'cause it does me a validated design. And they have others with other vendors. The challenge there is how do they really integrate with each other from tools to possibly automation down the road, and how do they truly integrate with each other. 'Cause we did bring in some of the other validated design architecture organizations and I think we did our due diligence and looked at 'em to see how they differentiate between each other. And ultimately, we wanted something that was new and different approach to storage. It wasn't just layering your legacy OS on a bunch of Flash drives and call it good. Something that was natively born to take advantage of that technology. And that's what ultimately led us to PURE. >> Well, PURE has a point of view on the so called hyper-converged space. You heard Scott Dietzen talking this morning. What's your perspective on hyper-convergence? >> Hyper-converge is one of those buzz words that I think gets thrown out of there kind of off the cuff if you will. But people hear it and get excited about it. But what type of workloads are you looking to take advantage of it? Is it truly hyper-converged or is it just something that you can say you're doing because it sounds cool? I think to some degree, people are led astray on the buzzwords of the technology where they get down to say, what's going to take advantage of it? What kind of application are you putting on it? If your application, in our case, can be written by a grad student 20 years ago that a lab is still using, it does it make sense to put it on hyper-converged? No, because it can't take advantage of the architecture or the design. So, in a lot of ways, we're waiting and seeing. And the reason we didn't go to a hyper-converged platform is a, Epic support and b, we were already changing enough to stay comfortable with the environment and knowing that come Monday morning, doctors will be seeing patients and we're already changing enough, that was another layer that we chose not to change. We went with a standard UCS configuration that everyone was already happy with. That made a significant difference from an operational perspective. >> Essentially, your processes are tightly tied to Epic and the workflow associated with that. So from an infrastructure perspective, it sounds like you just don't want it to be in the way. >> We don't. The last thing we want in infrastructure getting in the way. And quite frankly, it was in the way. Whether that was meeting latency requirements or IOPS requirements from the Cache database or the Clarity database within the Epic system, or if was just all of are just taking a little bit longer than they expect. We don't want to be that bottleneck, if you will, we want them to be able to see patients faster, run reports faster, gain access to that valuable data in a much faster way to enable them to go about their business and not have to worry about infrastructure. >> Brian, PURE said that they had, I believe it's like 25 new announcements made this morning, a lot of software features. Curious, is there anything that jumped out at you, that you've been waiting for and anything still on your to do list that you're hoping for PURE or PURE and it's extended ecosystem to deliver for you? >> Great question, so at the top of that list is the replication of the arrays, whether that's in an offsite data center or a colo and how that applies to an Epic environment that has to go through this flux of refreshes, and from a disaster or business continuity standpoint, we're actively pursuing that, and how that's going to fit with Baylor. So, we're very excited to see what our current investment, free of charge by the way, once you do the upgrade to 5.0, is to take advantage of those features, with replication being one of 'em. >> And then, I thought I heard today, Third Sight is a service. Right? So you don't have to install your own infrastructure. So, I'm not sure exactly what that's all about. I got to peel the onion on that one. >> To be determined right? When we look at things like that, particularly with Epic, we have to be careful because that is the HIPAA, PHI, that's your records, yours and mine, medical records right? You just don't want that, if I told you it's going to be hosted in a public cloud. Wait a minute. Where? No it's not. We don't want to be on the 10 o'clock news right? However, there's things like SAP HANA and other enterprise applications that we certainly could look at leveraging that technology. >> Excellent, we listen, thank you very much Brian for coming on theCUBE. We appreciate your perspectives and sort of educating us a little bit on your business and your industry anyway. And have a great rest of the show. >> Yeah, thank you very much. Appreciate it. >> You're welcome. Alright keep it right there everybody. This is theCUBE. We're back live right after this short break from PURE Accelerate 2017. Be right back.