(upbeat music) >> Welcome back to Vegas. Lisa Martin and Dave Vellante here with theCUBE live on the Venetian Expo Hall Floor, talking all things AWS re:Invent 2022. This is the first full day of coverage. It is jam-packed here. People are back. They are ready to hear all the new innovations from AWS. Dave, how does it feel to be back yet again in Vegas? >> Yeah, Vegas. I think it's my 10th time in Vegas this year. So, whatever. >> This year alone. You must have a favorite steak restaurant then. >> There are several. The restaurants in Vegas are actually really good. >> You know? >> They are good. >> They used to be terrible. But I'll tell you. My favorite? The place that closed. >> Oh! >> Yeah, closed. In between where we are in the Wynn and the Venetian. Anyway. >> Was it CUT? >> No, I forget what the name was. >> Something else, okay. >> It was like a Greek sort of steak place. Anyway. >> Now, I'm hungry. >> We were at Pure Accelerate a couple years ago. >> Yes, we were. >> When they announced Cloud Block Store. >> That's right. >> Pure was the first- >> In Austin. >> To do that. >> Yup. >> And then they made the acquisition of Portworx which was pretty prescient given that containers have been going through the roof. >> Yeah. >> So I'm sort of excited to have these guys on and talk about that. >> We're going to unpack all of this. We've got one of our alumni back with us, Venkat Ramakrishna, VP of Product, Portworx by Pure Storage. And Dan Kogan joins us for the first time, VP of Product Management and Product Marketing, FlashArray at Pure Storage. Guys, welcome to the program. >> Thank you. >> Hey, guys. >> Dan: Thanks for having us. >> Do you have a favorite steak restaurant in Vegas? Dave said there's a lot of good choices. >> There's a lot of good steak restaurants here. >> I like SDK. >> Yeah, that's a good one. >> That's the good one. >> That's a good one. >> Which one? >> SDK. >> SDK. >> Where's that? >> It's, I think, in Cosmopolitan. >> Ooh. >> Yeah. >> Oh, yeah, yeah, yeah. >> It's pretty good, yeah. >> There's one of the Western too that's pretty. >> I'm an Herbs and Rye guy. Have you ever been there? >> No. >> No. >> Herbs and Rye is off strip, but it's fantastic. It's kind of like a locals joint. >> I have to dig through all of this great stuff today and then check that out. Talk to me. This is our first day, obviously. First main day. I want to get both of your perspectives. Dan, we'll start with you since you're closest to me. How are you finding this year's event so far? Obviously, tons of people. >> Busy. >> Busy, yeah. >> Yeah, it is. It is old times. Bigger, right? Last re:Invent I was at was 2019 right before everything shut down and it's probably half the size of this which is a different trend than I feel like most other tech conferences have gone where they've come back, but a little bit smaller. re:Invent seems to be the IT show. >> It really does. Venkat, are you finding the same? In terms of what you're experiencing so far on day one of the events? >> Yeah, I mean... There's tremendous excitement. Overall, I think it's good to be back. Very good crowd, great turnout, lot of excitement around some of the new offerings we've announced. The booth traffic has been pretty good. And just the quality of the conversations, the customer meetings, have been really good. There's very interesting use cases shaping up and customers really looking to solve real large scale problems. Yeah, it's been a phenomenal first day. >> Venkat, talk a little bit about, and then we'll get to you Dan as well, the relationship that Portworx by Pure Storage has with AWS. Maybe some joint customers. >> Yeah, so we... Definitely, we have been a partner of AWS for quite some time, right? Earlier this year, we signed what is called a strategic investment letter with AWS where we kind of put some joint effort together like to better integrate our products. Plus, kind of get in front of our customers more together and educate them on how going to how they can deploy and build vision critical apps on EKS and EKS anywhere and Outpost. So that partnership has grown a lot over the last year. We have a lot of significant mutual customer wins together both on the public cloud on EKS as well as on EKS anywhere, right? And there are some exciting use cases around Edge and Edge deployments and different levels of Edge as well with EKS anywhere. And there are pretty good wins on the Outpost as well. So that partnership I think is kind of like growing across not just... We started off with the one product line. Now our Portworx backup as a service is also available on EKS and along with the Portworx Data Services. So, it is also expanded across the product lanes as well. >> And then Dan, you want to elaborate a bit on AWS Plus Pure? >> Yeah, it's for kind of what we'll call the core Pure business or the traditional Pure business. As Dave mentioned, Cloud Block Store is kind of where things started and we're seeing that move and evolve from predominantly being a DR site and kind of story into now more and more production applications being lifted and shifted and running now natively in AWS honor storage software. And then we have a new product called Pure Fusion which is our storage as code automation product essentially. It takes you from moving and managing of individual arrays, now obfuscates a fleet level allows you to build a very cloud-like backend and consume storage as code. Very, very similar to how you do with AWS, with an EBS. That product is built in AWS. So it's a SaaS product built in AWS, really allowing you to turn your traditional Pure storage into an AWS-like experience. >> Lisa: Got it. >> What changed with Cloud Block Store? 'Cause if I recall, am I right that you basically did it on S3 originally? >> S3 is a big... It's a number of components. >> And you had a high performance EC2 instances. >> Dan: Yup, that's right. >> On top of lower cost object store. Is that still the case? >> That's still the architecture. Yeah, at least for AWS. It's a different architecture in Azure where we leverage their disc storage more. But in AWS were just based on essentially that backend. >> And then what's the experience when you go from, say, on-prem to AWS to sort of a cross cloud? >> Yeah, very, very simple. It's our replication technology built in. So our sync rep, our async rep, our active cluster technology is essentially allowing you to move the data really, really seamlessly there and then again back to Fusion, now being that kind of master control plan. You can have availability zones, running Cloud Block Store instances in AWS. You can be running your own availability zones in your data centers wherever those may happen to be, and that's kind of a unification layer across it all. >> It looks the same to the customer. >> To the customer, at the end of the day, it's... What the customer sees is the purity operating system. We have FlashArray proprietary hardware on premises. We have AWS's hardware that we run it on here. But to the customer, it's just the FlashArray. >> That's a data super cloud actually. Yeah, it's a data super cloud. >> I'd agree. >> It spans multiple clouds- >> Multiple clouds on premises. >> It extracts all the complexity of the underlying muck and the primitives and presents a common experience. >> Yeah, and it's the same APIs, same management console. >> Dave: Yeah, awesome. >> Everything's the same. >> See? It's real. It's a thing, On containers, I have a question. So we're in this environment, everybody wants to be more efficient, what's happening with containers? Is there... The intersection of containers and serverless, right? You think about all the things you have to do to run containers in VMs, configure everything, configure the memory, et cetera, and then serverless simplifies all that. I guess Knative in between or I guess Fargate. What are you seeing with customers between stateless apps, stateful apps, and how it all relates to containers? >> That's a great question, right? I think that one of the things that what we are seeing is that as people run more and more workloads in the cloud, right? There's this huge movement towards being the ability to bring these applications to run anywhere, right? Not just in one public cloud, but in the data centers and sometimes the Edge clouds. So there's a lot of portability requirements for the applications, right? I mean, yesterday morning I was having breakfast with a customer who is a big AWS customer but has to go into an on-prem air gap deployment for one of their large customers and is kind of re-platforming some other apps into containers in Kubernetes because it makes it so much easier for them to deploy. So there is no longer the debate of, is it stateless versus it stateful, it's pretty much all applications are moving to containers, right? And in that, you see people are building on Kubernetes and containers is because they wanted multicloud portability for their applications. Now the other big aspect is cost, right? You can significantly run... You know, like lower cost by running with Kubernetes and Portworx and by on the public cloud or on a private cloud, right? Because it lets you get more out of your infrastructure. You're not all provisioning your infrastructure. You are like just deploying the just-enough infrastructure for your application to run with Kubernetes and scale it dynamically as your application load scales. So, customers are better able to manage costs. >> Does serverless play in here though? Right? Because if I'm running serverless, I'm not paying for the compute the whole time. >> Yeah. >> Right? But then stateless and stateful come into play. >> Serverless has a place, but it is more for like quick event-driven decision. >> Dave: The stateless apps. >> You know, stuff that needs to happen. The serverless has a place, but majority of the applications have need compute and more compute to run because there's like a ton of processing you have to do, you're serving a whole bunch of users, you're serving up media, right? Those are not typically good serverless apps, right? The several less apps do definitely have a place. There's a whole bunch of minor code snippets or events you need to process every now and then to make some decisions. In that, yeah, you see serverless. But majority of the apps are still requiring a lot of compute and scaling the compute and scaling storage requirements at a time. >> So what Venkat was talking about is cost. That is probably our biggest tailwind from a cloud adoption standpoint. I think initially for on-premises vendors like Pure Storage or historically on-premises vendors, the move to the cloud was a concern, right? In that we're getting out the data center business, we're going all in on the cloud, what are you going to do? That's kind of why we got ahead of that with Cloud Block Store. But as customers have matured in their adoption of cloud and actually moved more applications, they're becoming much more aware of the costs. And so anywhere you can help them save money seems to drive adoption. So they see that on the Kubernetes side, on our side, just by adding in things that we do really well: Data reduction, thin provisioning, low cost snaps. Those kind of things, massive cost savings. And so it's actually brought a lot of customers who thought they weren't going to be using our storage moving forward back into the fold. >> Dave: Got it. >> So cost saving is great, huge business outcomes potentially for customers. But what are some of the barriers that you're helping customers to overcome on the storage side and also in terms of moving applications to Kubernetes? What are some of those barriers that you could help us? >> Yeah, I mean, I can answer it simply from a core FlashArray side, it's enabling migration of applications without having to refactor them entirely, right? That's Kubernetes side is when they think about changing their applications and building them, we'll call quote unquote more cloud native, but there are a lot of customers that can't or won't or just aren't doing that, but they want to run those applications in the cloud. So the movement is easier back to your data super cloud kind of comment, and then also eliminating this high cost associated with it. >> I'm kind of not a huge fan of the whole repatriation narrative. You know, you look at the numbers and it's like, "Yeah, there's something going on." But the one use case that looks like it's actually valid is, "I'm going to test in the cloud and I'm going to deploy on-prem." Now, I dunno if that's even called repatriation, but I'm looking to help the repatriation narrative because- >> Venkat: I think it's- >> But that's a real thing, right? >> Yeah, it's more than repatriation, right? It's more about the ability to run your app, right? It's not just even test, right? I mean, you're going to have different kinds of governance and compliance and regulatory requirements have to run your apps in different kinds of cloud environments, right? There are certain... Certain regions may not have all of the compliance and regulatory requirements implemented in that cloud provider, right? So when you run with Kubernetes and containers, I mean, you kind of do the transformation. So now you can take that app and run an infrastructure that allows you to deliver under those requirements as well, right? So that portability is the major driver than repatriation. >> And you would do that for latency reasons? >> For latency, yeah. >> Or data sovereign? >> Data sovereignty. >> Data sovereignty. >> Control. >> I mean, yeah. Availability of your application and data just in that region, right? >> Okay, so if the capability is not there in the cloud region, you come in and say, "Hey, we can do that on-prem or in a colo and get you what you need to comply to your EDX." >> Yeah, or potentially moves to a different cloud provider. It's just a lot more control that you're providing on customer at the end of the day. >> What's that move like? I mean, now you're moving data and everybody's going to complain about egress fees. >> Well, you shouldn't be... I think it's more of a one-time move. You're probably not going to be moving data between cloud providers regularly. But if for whatever reasons you decide that I'm going to stop running in X Cloud and I'm going to move to this cloud, what's the most seamless way to do? >> So a customer might say, "Okay, that's certification's not going to be available in this region or gov cloud or whatever for a year, I need this now." >> Yeah, or various commercial. Whatever it might be. >> "And I'm going to make the call now, one-way door, and I'm going to keep it on-prem." And then worry about it down the road. Okay, makes sense. >> Dan, I got to talk to you about the sustainability element there because it's increasingly becoming a priority for organizations in every industry where they need to work with companies that really have established sustainability programs. What are some of the factors that you talk with customers about as they have choice in all FlashArray between Pure and competitors where sustainability- >> Yeah, I mean we've leaned very heavily into that from a marketing standpoint recently because it has become so top of mind for so many customers. But at the end of the day, sustainability was built into the core of the Purity operating system in FlashArray back before it was FlashArray, right? In our early generation of products. The things that drive that sustainability of high density, high data reduction, small footprint, we needed to build that for Pure to exist as a company. And we are maybe kind of the last all-flash vendor standing that came ground up all-flash, not just the disc vendor that's refactored, right? And so that's sort of engineering from the ground up that's deeply, deeply into our software as a huge sustainability payout now. And we see that and that message is really, really resonating with customers. >> I haven't thought about that in a while. You actually are. I don't think there's any other... Nobody else made it through the knothole. And you guys hit escape velocity and then some. >> So we hit escape velocity and it hasn't slowed down, right? Earnings will be tomorrow, but the last many quarters have been pretty good. >> Yeah, we follow you pretty closely. I mean, there was one little thing in the pandemic and then boom! It's just kept cranking since, so. >> So at the end of the day though, right? We needed that level to be economically viable as a flash bender going against disc. And now that's really paying off in a sustainability equation as well because we consume so much less footprint, power cooling, all those factors. >> And there's been some headwinds with none pricing up until recently too that you've kind of blown right through. You know, you dealt with the supply issues and- >> Yeah, 'cause the overall... One, we've been, again, one of the few vendors that's been able to navigate supply really well. We've had no major delays in disruptions, but the TCO argument's real. Like at the end of the day, when you look at the cost of running on Pure, it's very, very compelling. >> Adam Selipsky made the statement, "If you're looking to tighten your belt, the cloud is the place to do it." Yeah, okay. It might be that, but... Maybe. >> Maybe, but you can... So again, we are seeing cloud customers that are traditional Pure data center customers that a few years ago said, "We're moving these applications into the cloud. You know, it's been great working with you. We love Pure. We'll have some on-prem footprint, but most of everything we're going to do is in the cloud." Those customers are coming back to us to keep running in the cloud. Because again, when you start to factor in things like thin provisioning, data reduction, those don't exist in the cloud. >> So, it's not repatriation. >> It's not repatriation. >> It's we want Pure in the cloud. >> Correct. We want your software. So that's why we built CBS, and we're seeing that come all the way through. >> There's another cost savings is on the... You know, with what we are doing with Kubernetes and containers and Portworx Data Services, right? So when we run Portworx Data Services, typically customers spend a lot of money in running the cloud managed services, right? Where there is obviously a sprawl of those, right? And then they end up spending a lot of item costs. So when we move that, like when they run their data, like when they move their databases to Portworx Data Services on Kubernetes, because of all of the other cost savings we deliver plus the licensing costs are a lot lower, we deliver 5X to 10X savings to our customers. >> Lisa: Significant. >> You know, significant savings on cloud as well. >> The operational things he's talking about, too. My Fusion engineering team is one of his largest customers from Portworx Data Services. Because we don't have DBAs on that team, it's just developers. But they need databases. They need to run those databases. We turn to PDS. >> This is why he pays my bills. >> And that's why you guys have to come back 'cause we're out of time, but I do have one final question for each of you. Same question. We'll start with you Dan, the Venkat we'll go to you. Billboard. Billboard or a bumper sticker. We'll say they're going to put a billboard on Castor Street in Mountain View near the headquarters about Pure, what does it say? >> The best container for containers. (Dave and Lisa laugh) >> Venkat, Portworx, what's your bumper sticker? >> Well, I would just have one big billboard that goes and says, "Got PX?" With the question mark, right? And let people start thinking about, "What is PX?" >> I love that. >> Dave: Got Portworx, beautiful. >> You've got a side career in marketing, I can tell. >> I think they moved him out of the engineering. >> Ah, I see. We really appreciate you joining us on the program this afternoon talking about Pure, Portworx, AWS. Really compelling stories about how you're helping customers just really make big decisions and save considerable costs. We appreciate your insights. >> Awesome. Great. Thanks for having us. >> Thanks, guys. >> Thank you. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage. (upbeat music)

(upbeat music) >> Hello, and welcome to the special Cube conversation that we're launching in conjunction with Pure Accelerate. Prakash Darji is here, is the general manager of Digital Experience. They actually have a business unit dedicated to this at Pure Storage. Prakash, welcome back, good to see you. >> Yeah Dave, happy to be here. >> So a few weeks back, you and I were talking about the Shift 2 and as a service economy and which is a good lead up to Accelerate, held today, we're releasing this video in LA. This is the fifth in person Accelerate. It's got a new tagline techfest so you're making it fun, but still hanging out to the tech, which we love. So this morning you guys made some announcements expanding the portfolio. I'm really interested in your reaffirmed commitment to Evergreen. That's something that got this whole trend started in the introduction of Evergreen Flex. What is that all about? What's your vision for Evergreen Flex? >> Well, so look, this is one of the biggest moments that I think we have as a company now, because we introduced Evergreen and that was and probably still is one of the largest disruptions to happen to the industry in a decade. Now, Evergreen Flex takes the power of modernizing performance and capacity to storage beyond the box, full stop. So we first started on a project many years ago to say, okay, how can we bring that modernization concept to our entire portfolio? That means if someone's got 10 boxes, how do you modernize performance and capacity across 10 boxes or across maybe FlashBlade and FlashArray. So with Evergreen Flex, we first are starting to hyper disaggregate performance and capacity and the capacity can be moved to where you need it. So previously, you could have thought of a box saying, okay, it has this performance or capacity range or boundary, but let's think about it beyond the box. Let's think about it as a portfolio. My application needs performance or capacity for storage, what if I could bring the resources to it? So with Evergreen Flex within the QLC family with our FlashBlade and our FlashArray QLC projects, you could actually move QLC capacity to where you need it. And with FlashArray X and XL or TLC family, you could move capacity to where you need it within that family. Now, if you're enabling that, you have to change the business model because the capacity needs to get build where you use it. If you use it in a high performance tier, you could build at a high performance rate. If you use it as a lower performance tier, you could build at a lower performance rate. So we changed the business model to enable this technology flexibility, where customers can buy the hardware and they get a pay per use consumption model for the software and services, but this enables the technology flexibility to use your capacity wherever you need. And we're just continuing that journey of hyper disaggregated. >> Okay, so you solve the problem of having to allocate specific capacity or performance to a particular workload. You can now spread that across whatever products in the portfolio, like you said, you're disaggregating performance and capacity. So that's very cool. Maybe you could double click on that. You obviously talk to customers about doing this. They were in pain a little bit, right? 'Cause they had this sort of stovepipe thing. So talk a little bit about the customer feedback that led you here. >> Well, look, let's just say today if you're an application developer or you haven't written your app yet, but you know you're going to. Well, you need that at least say I need something, right? So someone's going to ask you what kind of storage do you need? How many IOPS, what kind of performance capacity, before you've written your code. And you're going to buy something and you're going to spend that money. Now at that point, you're going to go write your application, run it on that box and then say, okay, was I right or was I wrong? And you know what? You were guessing before you wrote the software. After you wrote the software, you can test it and decide what you need, how it's going to scale, et cetera. But if you were wrong, you already bought something. In a hyper disaggregated world, that capacity is not a sunk cost, you can use it wherever you want. You can use capacity of somewhere else and bring it over there. So in the world of application development and in the world of storage, today people think about, I've got a workload, it's SAP, it's Oracle, I've built this custom app. I need to move it to a tier of storage, a performance class. Like you think about the application and you think about moving the application. And it takes time to move the application, takes performance, takes loan, it's a scheduled event. What if you said, you know what? You don't have to do any of that. You just move the capacity to where you need it, right? >> Yep. >> So the application's there and you actually have the ability to instantaneously move the capacity to where you need it for the application. And eventually, where we're going is we're looking to do the same thing across the performance hearing. So right now, the biggest benefit is the agility and flexibility a customer has across their fleet. So Evergreen was great for the customer with one array, but Evergreen Flex now brings that power to the entire fleet. And that's not tied to just FlashArray or FlashBlade. We've engineered a data plane in our direct flash fabric software to be able to take on the personality of the system it needs to go into. So when a data pack goes into a FlashBlade, that data pack is optimized for use in that scale out architecture with the metadata for FlashBlade. When it goes into a FlashArray C it's optimized for that metadata structure. So our Purity software has made this transformative to be able to do this. And we created a business model that allowed us to take advantage of this technology flexibility. >> Got it. Okay, so you got this mutually interchangeable performance and capacity across the portfolio beautiful. And I want to come back to sort of the Purity, but help me understand how this is different from just normal Evergreen, existing evergreen options. You mentioned the one array, but help us understand that more fully. >> Well, look, so in addition to this, like we had Evergreen Gold historically. We introduced Evergreen Flex and we had Pure as a service. So you had kind of two spectrums previously. You had Evergreen Gold on one hand, which modernized the performance and capacity of a box. You had Pure as a service that said don't worry about the box, tell me how many IOPS you have and will run and operate and manage that service for you. I think we've spoken about that previously on theCUBE. >> Yep. >> Now, we have this model where it's not just about the box, we have this model where we say, you know what, it's your fleet. You're going to run and operate and manage your fleet and you could move the capacity to where you need it. So as we started thinking about this, we decided to unify our entire portfolio of sub software and subscription services under the Evergreen brand. Evergreen Gold we're renaming to Evergreen Forever. We've actually had seven customers just crossed a decade of updates Forever Evergreen within a box. So Evergreen Forever is about modernizing a box. Evergreen Flex is about modernizing your fleet and Evergreen one, which is our rebrand of Pure as a service is about modernizing your labor. Instead of you worrying about it, let us do it for you. Because if you're an application developer and you're trying to figure out, where should I put my capacity? Where should I do it? You can just sign up for the IOPS you need and let us actually deliver and move the components to where you need it for performance, capacity, management, SLAs, et cetera. So as we think about this, for us this is a spectrum and a continuum of where you're at in the modernization journey to software subscription and services. >> Okay, got it. So why did you feel like now was the right time for the rebranding and the renaming convention, what's behind? What was the thing? Take us inside the internal conversations and the chalkboard discussion? >> Well, look, the chalkboard discussion's simple. It's everything was built on the Evergreen stateless architecture where within a box, right? We disaggregated the performance and capacity within the box already, 10 years ago within Evergreen. And that's what enabled us to build Pure as a service. That's why I say like when companies say they built a service, I'm like it's not a service if you have to do a data migration. You need a stateless architecture that's disaggregated. You can almost think of this as the anti hyper-converge, right? That's going the other way. It's hyper disaggregated. >> Right. >> And that foundation is true for our whole portfolio. That was fundamental, the Evergreen architecture. And then if Gold is modernizing a box and Flex is modernizing your fleet and your portfolio and Pure as a service is modernizing the labor, it is more of a continuation in the spectrum of how do you ensure you get better with age, right? And it's like one of those things when you think about a car. Miles driven on a car means your car's getting older and it doesn't necessarily get better with age, right? What's interesting when you think about the human body, yeah, you get older and some people deteriorate with age and some people it turns out for a period of time, you pick up some muscle mass, you get a little bit older, you get a little bit wiser and you get a little bit better with age for a while because you're putting in the work to modernize, right? But where in infrastructure and hardware and technology are you at the point where it always just gets better with age, right? We've introduced that concept 10 years ago. And we've now had proven industry success over a decade, right? As I mentioned, our first seven customers who've had a decade of Evergreen update started with an FA-300 way back when, and since then performance and capacity has been getting better over time with Evergreen Forever. So this is the next 10 years of it getting better and better for the company and not just tying it to the box because now we've grown up, we've got customers with like large fleets. I think one of our customers just hit 900 systems, right? >> Wow. >> So when you have 900 systems, right? And you're running a fleet you need to think about, okay, how am I using these resources? And in this day and age in that world, power becomes a big thing because if you're using resources inefficiently and the cost of power and energy is up, you're going to be in a world of hurt. So by using Flex where you can move the capacity to where it's needed, you're creating the most efficient operating environment, which is actually the lowest power consumption environment as well. >> Right. >> So we're really excited about this journey of modernizing, but that rebranding just became kind of a no brainer to us because it's all part of the spectrum on your journey of whether you're a single array customer, you're a fleet customer, or you don't want to even run, operate and manage. You can actually just say, you know what, give me the guarantee in the SLA. So that's the spectrum that informed the rebranding. >> Got it. Yeah, so to your point about the human body, all you got to do is look at Tom Brady's NFL combine videos and you'll see what a transformation. Fine wine is another one. I like the term hyper disaggregated because that to me is consistent with what's happening with the cloud and edge. We're building this hyper distributed or disaggregated system. So I want to just understand a little bit about you mentioned Purity so there's this software obviously is the enabler here, but what's under the covers? Is it like a virtualizer or megaload balancer, metadata manager, what's the tech behind this? >> Yeah, so we'll do a little bit of a double tech, right? So we have this concept of drives where in Purity, we build our own software for direct flash that takes the NAND and we do the NAND management as we're building our drives in Purity software. Now ,that advantage gives us the ability to say how should this drive behave? So in a FlashArray C system, it can behave as part of a FlashArray C and its usable capacity that you can write because the metadata and some of the system information is in NVRAM as part of the controller, right? So you have some metadata capability there. In a legend architecture for example, you have a distributed Blade architecture. So you need parts of that capacity to operate almost like a single layer chip where you can actually have metadata operations independent of your storage operations that operate like QLC. So we actually manage the NAND in a very very different way based on the persona of the system it's going into, right? So this capacity to make it usable, right? It's like saying a competitor could go ahead name it, Dell that has power max in Isilon, HPE that has single store and three power and nimble and like you name, like can you really from a technology standpoint say your capacity can be used anywhere or all these independent systems. Everyone's thinking about the world like a system, like here's this system, here's that system, here's that system. And your capacity is locked into a system. To be able to unlock that capacity to the system, you need to behave differently with the media type in the operating environment you're going into and that's what Purity does, right? So we are doing that as part of our direct Flex software around how we manage these drives to enable this. >> Well, it's the same thing in the cloud precaution, right? I mean, you got different APIs and primitive for object, for block, for file. Now, it's all programmable infrastructure so that makes it easier, but to the point, it's still somewhat stovepipe. So it's funny, it's good to see your commitment to Evergreen, I think you're right. You lay down the gauntlet a decade plus ago. First everybody ignored you and then they kind of laughed at you, then they criticized you, and then they said, oh, then you guys reached the escape velocity. So you had a winning hand. So I'm interested in that sort of progression over the past decade where you're going, why this is so important to your customers, where you're trying to get them ultimately. >> Well, look, the thing that's most disappointing is if I bought 100 terabytes still have to re-buy it every three or five years. That seems like a kind of ridiculous proposition, but welcome to storage. You know what I mean? That's what most people do with Evergreen. We want to end data migrations. We want to make sure that every software updates, hardware updates, non disruptive. We want to make it easy to deploy and run at scale for your fleet. And eventually we want everyone to move to our Evergreen one, formerly Pure as a service where we can run and operate and manage 'cause this is all about trust. We're trying to create trust with the customer to say, trust us, to run and operate and scale for you and worry about your business because we make tech easy. And like think about this hyper disaggregated if you go further. If you're going further with hyper disaggregated, you can think about it as like performance and capacity is your Lego building blocks. Now for anyone, I have a son, he wants to build a Lego Death Star. He didn't have that manual, he's toast. So when you move to at scale and you have this hyper disaggregated world and you have this unlimited freedom, you have unlimited choice. It's the problem of the cloud today, too much choice, right? There's like hundreds of instances of this, what do I even choose? >> Right. >> Well, so the only way to solve that problem and create simplicity when you have so much choice is put data to work. And that's where Pure one comes in because we've been collecting and we can scan your landscape and tell you, you should move these types of resources here and move those types of resources there, right? In the past, it was always about you should move this application there or you should move this application there. We're actually going to turn the entire industry on it's head. It's not like applications and data have gravity. So let's think about moving resources to where that are needed versus saying resources are a fixed asset, let's move the applications there. So that's a concept that's new to the industry. Like we're creating that concept, we're introducing that concept because now we have the technology to make that reality a new efficient way of running storage for the world. Like this is that big for the company. >> Well, I mean, a lot of the failures in data analytics and data strategies are a function of trying to jam everything into a single monolithic system and hyper centralize it. Data by its very nature is distributed. So hyper disaggregated fits that model and the pendulum's clearly swinging to that. Prakash, great to have you, purestorage.com I presume is where I can learn more? >> Oh, absolutely. We're super excited and our pent up by demand I think in this space is huge so we're looking forward to bringing this innovation to the world. >> All right, hey, thanks again. Great to see you, I appreciate you coming on and explaining this new model and good luck with it. >> All right, thank you. >> All right, and thanks for watching. This is David Vellante, and appreciate you watching this Cube conversation, we'll see you next time. (upbeat music)

>> 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)

>> Live from Barcelona, Spain, it's theCUBE, covering Cisco Live Europe. Brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona, everybody. You're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante. I'm here with my cohost, Stu Miniman. This is day one of Cisco Live Barcelona. Katie Colbert is here. She's the vice president of alliances at Pure Storage, and she's joined by Kaustubh Das, otherwise known as KD, who's the vice president of computing systems at Cisco. Katie and KD, welcome to theCUBE, good to see you. >> Thank you. >> Thank you. >> Alright, so let's start off, KD2, if you could just tell us about the partnership. Where did it start, how did it evolve? We'll get into it. >> We just had a terrific partnership, and the reason it's so great is it's really based on some foundational things that are super compatible. Pure Storage, Cisco, both super technology-driven companies, innovating. They're both also super programmatic companies. They'll do everything via API. It's very modern in that sense, the frameworks that we work on. And then from a business perspective, it's very compatible. We're chasing common markets, very few conflicts. So it's been rooted in solid foundations. And then, we've actually invested over the years to build more and more solutions for our customers jointly. So it's been terrific. >> So, Katie, I hate to admit how long we talk about partnering with Cisco >> It's going to age us. >> So you and I won't admit how many decades it's been partnering with Cisco, but here we are, 2019, Cisco's a very different company than it was a decade or two ago. >> Absolutely. >> Tell me what it's like working with them, especially as a company that's primarily in storage and data at Pure, what it means to partner with them. >> Absolutely, you're right. So, worked with Cisco as a partner for many years at the beginning of my career, then went away for, I'd say, a good 10 years, and joined Pure in June, and I will tell you one of the most exciting reasons why I joined Pure was the Pure and Cisco relationship. When I worked with them at the beginning of my career, it was great and I would tell you it's even better now. I will say that the momentum that these two companies have in the market is very phenomenal. A lot of differentiation from our products separately, but both together, I think that it's absolutely been very successful, and to KD's point, the investment that both companies are making really is just astronomical, and I see that our customers are the beneficiaries of that. It makes it so much easier for them to deploy and use the technologies together, which is exciting. >> So we always joke about Barney deals, I love you, you love me, I mean, it's clear you guys go much much deeper than that. So I want to probe at that a little bit. Particularly from an engineering standpoint, whether it's validated designs or other innovations that you guys are working on together, can we peel the onion on that one a little bit? Talk about what you guys are doing below that line. >> I'll start there then I'll hand it over to the engineering leader from Cisco. But if you think about the pace of this, the partnership, I think, is roughly 3 or so years old. We've 16 Cisco-validated designs for our FlashStack infrastructure. So that is just unbelievable. So, huge amount of investment from engineers, product managers, on both sides of the fence. >> Yeah, totally second that. We start out with the... Cisco-validated designs are like blueprints, so we start out with the blueprints for the standard workloads: Oracle, SAP. And we keep those fresh as new versions come out. But then I think we've taken it further into new spaces of late. ACI, we saw in the keynote this morning, it's going everywhere, it's going multi-site. We've done some work on marrying that with the clustering service of Pure Storage. On top of that, we're doing some work in AI and ML, which is super exciting, so we got some CBDs around that that's just coming out. We're doing some work on automation, coupling Intersight, which is Cisco's cloud-based automation suite, with Pure Storage and Pure Storage's ability to integrate into the Intersight APIs. We talked about it, in fact, I talked about it in my session at the Cisco Live in the summer last year, and now we've got that out as a product. So tremendous amount of work, both in traditional areas as well as some of these new spaces. >> Maybe we can unpack that Intersight piece a bit, because people might look at it initially and say, "Okay, multi-cloud, on-prem, all these environments, "but is this just a networking tool?" And working we're working with someone with Pure, maybe explain a little bit the scope and how, if I'm a Pure administrator, how I live into this world. >> Absolutely, so let's start with what is Intersight, just for a foundational thing. Intersight is our software management tool driven from the cloud. So everything from the personality of the server, the bios settings, the WLAN settings, the networking and the compute pieces of it, that gets administered from the cloud, but it does more. What it does is it can deliver playbooks from the cloud that give the server a certain kind of personality for the workload that it's supporting. So then the next question that anyone asks is, "Now that we have this partnership, "well can it do the same thing for storage? "Can it actually provision that storage, "get that up and running?" And the answer is yes, it can, but it's better because what it can not only do is, not only can it do that, getting that done is super simple. All Pure Storage needed to do was to write some of those Intersight APIs and deliver that playbook from the cloud, from a remote location potentially, into whatever your infrastructure is, provisioning compute, provisioning networking, provisioning storage, in a truly modern cloud-driven environment, right? So I think that's phenomenal what it does for our customers. >> Yeah, I'd agree with that. And I think it'll even become more important as the companies are partnering around our multi-cloud solutions. So, as you probably saw earlier this year in February, sorry, the end of 2018, Pure announced our first leaning into hybrid cloud, so that's Pure Cloud Data Services. That enables us to have Purity, which is our operating system on our storage, running in AWS to begin with. So you can pretty easily start to think about where this partnership is going to go, especially as it pertains to Intersight integration. >> And just to bounce on that, strategically, you can see the alignment there as well. I mean, Cisco's been talking about multi-cloud for a bit now, we've done work to enable similar development environments, whether we're doing something on-prem or in the cloud, so that you can move workloads from one to the other, or actually you can make workloads on both sides talk to each other, and, again, combined with what Katie just said, it makes it a really really compelling solution. >> Like you said, you've got pretty clear swimming lanes for the two companies. There's very little overlap here. You can't have too many of these types of partnerships, right, I mean, you got 25 thousand engineers almost, but still, you still have limited resources. So what makes this one so special, and why are you able to spend so much time and effort, each of you? >> I could start, so from a Pure perspective, I think the cultures are aligned, you called it out there, there's inherently not a lot of overlap in terms of where core competencies are. Pure is not looking at all to become a networking company. And just a lot of synergies in the market make it one that our engineers want to invest in. We have really picked Cisco as our lean-in partner, truthfully, I run all of the alliances at Pure, and a lion's share of my resources really are focused at that partnership. >> Yeah, and if you look at both these companies, Pure is a relative youngster among the storage companies, a new, modern, in a good way, a new, modern company built on modern software practices and so forth. Cisco, although a pretty veteran company, but Cisco compute is relatively new as well as a compute provider. So we are very similar in how our design philosophies work and how modern our infrastructures are, and that gets us to delivering results, delivering solutions to our customers with relatively less effort from our engineers. And that pace of innovation that we can do with Pure is not something we can do with every other company. >> We had a session earlier today, and we went pretty deep into AI, but it's probably worth touching on that. I guess my question here is, what are the customers asking you guys for in terms of AI infrastructure? What's that infrastructure look like that's powering the machine and intelligence era? >> You want to start? >> You want to go, I'll go first. This is a really exciting space, and not only is it exciting because AI is exciting, it's actually exciting because we've got some unique ingredients across Pure and Cisco to make this happen. What does AI feed on? AI feeds on data. The model requires that volume of data to actually train itself We've got an infrastructure, so we just released the C4ATML, the UCC4ATML, highly powered infrastructure, eight GPUs, interconnected, 180 terabytes on board, high network bandwidth, but it needs something to feed it the data, and what Pure's got with their FlashBlade is that ability to actually feed data to this AI infrastructure so that we can train bigger models or train these models faster. Makes for a fantastic solution because these ingredients are just custom made for each other. >> Anything you can add? >> Absolutely I'd agree with that. Really, if you look at AI and what it needs to be successful, and, first of all, all of our customers, if they're not thinking about it, they should be, and I will tell you most of them are, is, how do you ingest that amount of data? If you can't ingest that quickly, it's not going to be of use. So that's a big piece of it, and that's really what the new Cisco platform, I mean, the folks over at Pure are just thrilled about the new Cisco product, and then you take a look at the FlashBlade and how it's able to really scale out unstructured data, object it and file, really to make that useful, so when you have to scrub that data to be able to use it and correlate it, FlashBlade is the perfect solution. So really, this is two companies coming together with the best of breed technologies. >> And the tooling in that world is exploding, open source innovation, it needs a place to run all the Kafkas and the Caffes and the TensorFlows and the Pythons. It's not just confined to data scientists anymore. It's really starting to seep throughout the organization, are you seeing that? >> Yeah. >> What's happening is you've got the buzzwords going around, and that leads to businesses and the leaders of businesses saying, "We've got to have an AI strategy. "We've got to hire these data scientists." But at the same time, the data scientists can get started on the laptop, they can get started on the cloud. When they want to deploy this, they need an enterprise class, resilient, automated infrastructure that fits into the way they do their work. You've got to have something that's built on these components, so what we provide together is that infrastructure for the ITTs so that the data scientists, when they build their beautiful models, have a place to deploy them, have a place to put that into production, and can actually have that life cycle running in a much more smooth production-grade environment. >> Okay, so you guys are three years in, roughly. Where do you want to take this thing, what's the vision? Give us a little road map for the future as to what this partnership looks like down the road. >> Yeah, so I can start. So I think there's a few different vectors. We're going to continue driving the infrastructure for the traditional workloads. That's it, that's a big piece that we do, we continue doing that. We're going to drive a lot more on the automation side, I think there's such a lot of potential with what we've got on Intersight, with the automation that Pure supports, bring those together and really make it simple for our customers to get this up and running and manage that life cycle. And third vector's going to be imparting those new use cases, whether it be AI or more data analytics type use cases. There's a lot of potential that it unleashes for our customers and there's a lot of potential of bringing these technologies together to partner. So you'll see a lot more of that from us. I don't know, will you add something? >> Yeah, no, I absolutely agree. And I would say more FlashStack, look for more FlashStack CVDs, and AI, I think, is one to watch. We believe Cisco, really, this step that Cisco's made, is going to take AI infrastructure to the next level. So we're going to be investing much more heavily into that. And then cloud, from a hybrid cloud, how do these two companies leverage FlashStack and all the innovation we've done on prem together to really enable the multi-cloud. >> Great, alright, well Katie and KD, thanks so much for coming to theCUBE. It was great to have you. >> Great. Thanks for having us. >> Thank you very much. >> You're welcome, alright. Keep it right there everybody. Stu and I will be back with our next guest right after this short break. You're watching theCUBE Live from Cisco Live Barcelona. We'll be right back. (techy music)

>> Live from Barcelona, Spain, it's The Cube, covering Cisco Live Europe. Brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona, everybody. You're watching The Cube, the leader in live tech coverage. My name is Dave Vellante. I'm here with my cohost, Stu Miniman. This is day one of Cisco Live Barcelona. Katie Colbert is here. She's the vice president of alliances at Pure Storage, and she's joined by Kaustubh Das, otherwise known as KD, who's the vice president of computing systems at Cisco. Katie and KD, welcome to The Cube, good to see you. >> Thank you. >> Thank you. >> Alright, so let's start off, KD2, if you could just tell us about the partnership. Where did it start, how did it evolve? We'll get into it. >> We just had a terrific partnership, and the reason it's so great is it's really based on some foundational things that are super compatible. Pure Storage, Cisco, both super technology-driven companies, innovating. They're both also super programmatic companies. They'll do everything via API. It's very modern in that sense, the frameworks that we work on. And then from a business perspective, it's very compatible. We're chasing common markets, very few conflicts. So it's been rooted in solid foundations. And then, we've actually invested over the years to build more and more solutions for our customers jointly. So it's been terrific. >> So, Katie, I hate to admit how long we talk about partnering with Cisco >> It's going to age us. >> So you and I won't admit how many decades it's been partnering with Cisco, but here we are, 2019, Cisco's a very different company than it was a decade or two ago. >> Absolutely. >> Tell me what it's like working with them, especially as a company that's primarily in storage and data at Pure, what it means to partner with them. >> Absolutely, you're right. So, worked with Cisco as a partner for many years at the beginning of my career, then went away for, I'd say, a good 10 years, and joined Pure in June, and I will tell you one of the most exciting reasons why I joined Pure was the Pure and Cisco relationship. When I worked with them at the beginning of my career, it was great and I would tell you it's even better now. I will say that the momentum that these two companies have in the market is very phenomenal. A lot of differentiation from our products separately, but both together, I think that it's absolutely been very successful, and to KD's point, the investment that both companies are making really is just astronomical, and I see that our customers are the beneficiaries of that. It makes it so much easier for them to deploy and use the technologies together, which is exciting. >> So we always joke about Barney deals, I love you, you love me, I mean, it's clear you guys go much much deeper than that. So I want to probe at that a little bit. Particularly from an engineering standpoint, whether it's validated designs or other innovations that you guys are working on together, can we peel the onion on that one a little bit? Talk about what you guys are doing below that line. >> I'll start there then I'll hand it over to the engineering leader from Cisco. But if you think about the pace of this, the partnership, I think, is roughly 3 or so years old. We've 16 Cisco-validated designs for our FlashStack infrastructure. So that is just unbelievable. So, huge amount of investment from engineers, product managers, on both sides of the fence. >> Yeah, totally second that. We start out with the... Cisco-validated designs are like blueprints, so we start out with the blueprints for the standard workloads: Oracle, SAP. And we keep those fresh as new versions come out. But then I think we've taken it further into new spaces of late. ACI, we saw in the keynote this morning, it's going everywhere, it's going multi-site. We've done some work on marrying that with the clustering service of Pure Storage. On top of that, we're doing some work in AI and ML, which is super exciting, so we got some CBDs around that that's just coming out. We're doing some work on automation, coupling Intersight, which is Cisco's cloud-based automation suite, with Pure Storage and Pure Storage's ability to integrate into the Intersight APIs. We talked about it, in fact, I talked about it in my session at the Cisco Live in the summer last year, and now we've got that out as a product. So tremendous amount of work, both in traditional areas as well as some of these new spaces. >> Maybe we can unpack that Intersight piece a bit, because people might look at it initially and say, "Okay, multi-cloud, on-prem, all these environments, "but is this just a networking tool?" And working we're working with someone with Pure, maybe explain a little bit the scope and how, if I'm a Pure administrator, how I live into this world. >> Absolutely, so let's start with what is Intersight, just for a foundational thing. Intersight is our software management tool driven from the cloud. So everything from the personality of the server, the bios settings, the WLAN settings, the networking and the compute pieces of it, that gets administered from the cloud, but it does more. What it does is it can deliver playbooks from the cloud that give the server a certain kind of personality for the workload that it's supporting. So then the next question that anyone asks is, "Now that we have this partnership, "well can it do the same thing for storage? "Can it actually provision that storage, "get that up and running?" And the answer is yes, it can, but it's better because what it can not only do is, not only can it do that, getting that done is super simple. All Pure Storage needed to do was to write some of those Intersight APIs and deliver that playbook from the cloud, from a remote location potentially, into whatever your infrastructure is, provisioning compute, provisioning networking, provisioning storage, in a truly modern cloud-driven environment, right? So I think that's phenomenal what it does for our customers. >> Yeah, I'd agree with that. And I think it'll even become more important as the companies are partnering around our multi-cloud solutions. So, as you probably saw earlier this year in February, sorry, the end of 2018, Pure announced our first leaning into hybrid cloud, so that's Pure Cloud Data Services. That enables us to have Purity, which is our operating system on our storage, running in AWS to begin with. So you can pretty easily start to think about where this partnership is going to go, especially as it pertains to Intersight integration. >> And just to bounce on that, strategically, you can see the alignment there as well. I mean, Cisco's been talking about multi-cloud for a bit now, we've done work to enable similar development environments, whether we're doing something on-prem or in the cloud, so that you can move workloads from one to the other, or actually you can make workloads on both sides talk to each other, and, again, combined with what Katie just said, it makes it a really really compelling solution. >> Like you said, you've got pretty clear swimming lanes for the two companies. There's very little overlap here. You can't have too many of these types of partnerships, right, I mean, you got 25 thousand engineers almost, but still, you still have limited resources. So what makes this one so special, and why are you able to spend so much time and effort, each of you? >> I could start, so from a Pure perspective, I think the cultures are aligned, you called it out there, there's inherently not a lot of overlap in terms of where core competencies are. Pure is not looking at all to become a networking company. And just a lot of synergies in the market make it one that our engineers want to invest in. We have really picked Cisco as our lean-in partner, truthfully, I run all of the alliances at Pure, and a lion's share of my resources really are focused at that partnership. >> Yeah, and if you look at both these companies, Pure is a relative youngster among the storage companies, a new, modern, in a good way, a new, modern company built on modern software practices and so forth. Cisco, although a pretty veteran company, but Cisco compute is relatively new as well as a compute provider. So we are very similar in how our design philosophies work and how modern our infrastructures are, and that gets us to delivering results, delivering solutions to our customers with relatively less effort from our engineers. And that pace of innovation that we can do with Pure is not something we can do with every other company. >> We had a session earlier today, and we went pretty deep into AI, but it's probably worth touching on that. I guess my question here is, what are the customers asking you guys for in terms of AI infrastructure? What's that infrastructure look like that's powering the machine and intelligence era? >> You want to start? >> You want to go, I'll go first. This is a really exciting space, and not only is it exciting because AI is exciting, it's actually exciting because we've got some unique ingredients across Pure and Cisco to make this happen. What does AI feed on? AI feeds on data. The model requires that volume of data to actually train itself We've got an infrastructure, so we just released the C4ATML, the UCC4ATML, highly powered infrastructure, eight GPUs, interconnected, 180 terabytes on board, high network bandwidth, but it needs something to feed it the data, and what Pure's got with their FlashBlade is that ability to actually feed data to this AI infrastructure so that we can train bigger models or train these models faster. Makes for a fantastic solution because these ingredients are just custom made for each other. >> Anything you can add? >> Absolutely I'd agree with that. Really, if you look at AI and what it needs to be successful, and, first of all, all of our customers, if they're not thinking about it, they should be, and I will tell you most of them are, is, how do you ingest that amount of data? If you can't ingest that quickly, it's not going to be of use. So that's a big piece of it, and that's really what the new Cisco platform, I mean, the folks over at Pure are just thrilled about the new Cisco product, and then you take a look at the FlashBlade and how it's able to really scale out unstructured data, object it and file, really to make that useful, so when you have to scrub that data to be able to use it and correlate it, FlashBlade is the perfect solution. So really, this is two companies coming together with the best of breed technologies. >> And the tooling in that world is exploding, open source innovation, it needs a place to run all the Kafkas and the Caffes and the TensorFlows and the Pythons. It's not just confined to data scientists anymore. It's really starting to seep throughout the organization, are you seeing that? >> Yeah. >> What's happening is you've got the buzzwords going around, and that leads to businesses and the leaders of businesses saying, "We've got to have an AI strategy. "We've got to hire these data scientists." But at the same time, the data scientists can get started on the laptop, they can get started on the cloud. When they want to deploy this, they need an enterprise class, resilient, automated infrastructure that fits into the way they do their work. You've got to have something that's built on these components, so what we provide together is that infrastructure for the ITTs so that the data scientists, when they build their beautiful models, have a place to deploy them, have a place to put that into production, and can actually have that life cycle running in a much more smooth production-grade environment. >> Okay, so you guys are three years in, roughly. Where do you want to take this thing, what's the vision? Give us a little road map for the future as to what this partnership looks like down the road. >> Yeah, so I can start. So I think there's a few different vectors. We're going to continue driving the infrastructure for the traditional workloads. That's it, that's a big piece that we do, we continue doing that. We're going to drive a lot more on the automation side, I think there's such a lot of potential with what we've got on Intersight, with the automation that Pure supports, bring those together and really make it simple for our customers to get this up and running and manage that life cycle. And third vector's going to be imparting those new use cases, whether it be AI or more data analytics type use cases. There's a lot of potential that it unleashes for our customers and there's a lot of potential of bringing these technologies together to partner. So you'll see a lot more of that from us. I don't know, will you add something? >> Yeah, no, I absolutely agree. And I would say more FlashStack, look for more FlashStack CVDs, and AI, I think, is one to watch. We believe Cisco, really, this step that Cisco's made, is going to take AI infrastructure to the next level. So we're going to be investing much more heavily into that. And then cloud, from a hybrid cloud, how do these two companies leverage FlashStack and all the innovation we've done on prem together to really enable the multi-cloud. >> Great, alright, well Katie and KD, thanks so much for coming to The Cube. It was great to have you. >> Great. Thanks for having us. >> Thank you very much. >> You're welcome, alright. Keep it right there everybody. Stu and I will be back with our next guest right after this short break. You're watching The Cube Live from Cisco Live Barcelona. We'll be right back. (techy music)

>> Announcer: Live from San Francisco, it's theCUBE. Covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome back to Pure Accelerate. We're here at Pier 70 in San Francisco, and this is theCUBE, the leader in live tech coverage. I'm Dave Vellante with my co-host David Floyer. Matt Kixmoeller is here, he's the Vice President of Product and Solutions at Pure Storage. Kix, welcome to theCUBE. >> Thanks for having me. My first time on theCUBe, I'm honored. >> That's awesome, well, we're honored to have you. Got to have a nickname on theCUBE. We had Dietz on earlier, Stu had to leave. You can call me V, if you want. You really don't have a nickname; we call him Floyer. (laughter) >> All right. >> So anyway, great job today on stage. You got a really engaged audience. You guys have a lot of fun. The orange shoes are cool. How do you feel? >> I feel great. You know, as we said today, this is the biggest year we've ever had in innovation at Pure, and it was fun to really take the focus back to software this release. You know, we spent the last year bringing out our next-gen cloud era all flash platforms, between FlashBlade and FlashArrayX, and this was an opportunity to really flex our muscles around software, flex our muscles around IoT and AI and that as well. So, it was a fun set of releases. >> Well, it's been interesting to sort of watch you guys and watch your product strategy evolve. And of course, coincident to that is your TAM expands. All right, so it started in the sort of you know, lower end of the spectrum, and then it went into the 20s and now it's in the 30s, and I was saying to David it used to be, well I buy EMC for block and I buy NetApp for file, and you guys are challenging that convention. >> Matt: Yeah. >> Maybe talk a little bit about your strategy and how your penetrating now new markets. >> Yeah, we think about our market opportunity in three buckets. So first off, we go after the top 500 cloud providers, and we see one of our biggest segments is really cloud providers and we see them increasingly not really looking at legacy options for storage. You know, they want a modern storage fabric, and part of why we're so excited in particular about the work we've done around NVMe is we feel like it helps us go after some of the more server DAS-centric workloads of the past, or of the next gen workloads, and we can talk a little bit more about that. A second key area that we're focusing on is really going after next generation data-driven applications, and AI, ML, all these areas are really driving amazing storage growth. It's even, I think, surprised us how quickly it's come up, and you had folks on theCUBE earlier today talking about FlashBlade, but one of the threads that units a lot of the next gen applications is they're designed to be scale-out and they're designed to really need a lot of parallelism from storage. And so what we're doing with FlashBlade is really designing a storage platform that's kind of parallel from the start, and can deliver that massive concurrency that you just can't get from a lot of legacy providers. And then yeah, I think the third thing we're obviously excited about is going in and ripping out the spinning rust of the past. We've made a lot of innuendos at this conference and how we're in this classic rusting building and maybe it's a nice metaphor for some of that-- >> Tear it down! (laughs) >> But yeah. But we are we're helping liberate the rest of the world, and I think one of the things that we're excited about today was to announce Purity Active Cluster. That's been that top of the reliability hill feature when people want metroclustered applications, active-active in two data centers, that's about as reliable as it gets, and that was a feature that we didn't have in FlashArray until now, and so we're excited to have that final area to go in and help liberate. >> Yeah, so it's not just the disk spinning rust replacement, it's, you talked this morning about SRDF, I remember well in the early 1990s when SRDF came out, it was game changing and it obviously has driven a lot of revenue for EMC, now Dell EMC, it helped a lot of customers, but there's no question it was the mother of all complexity and cost. So talk a little bit more about how you guys are going to approach that problem. >> Yeah, I mean, I think if you look at a lot of what we announced today, there continues to be a thread of simplicity throughout everything. You know, it's fun, I was employee number six up here, I've been in on the adventure from day one, right, and we always had a fundamental belief in simplicity. But as we started to shift products and started to get customer feedback, there was like this lightning rod within our team all throughout engineering where people really understood the power of simplicity. And it went from a belief to a religion, I would almost say. And we've just always tried to do that with new feature we come out with, and this felt like an area where there was such a vacuum of simplicity that there was a huge opportunity to rethink things. And so, with this feature it's totally built in, it's totally integrated, you could easily just stretch a volume across now two sites. And one of the problems we went to go solve was the third site mediator problem where you always need a third site witness in a stretch cluster to determine if there is a failure, who's the surviving side that you want to have actually process the application IO. And so we're delivering that as a service, as a SaaS service from our Pure One infrastructure, so it's just one more way that we take one more step and one more pain of the infrastructure away. >> So I'd like to drill in a little bit on the NVMe side of this. >> Matt: All right. >> We've done some research on the architecture which we think is coming up, which we're calling unigrip because it allows this very even access to data at very low latencies across there. And really, we'll start in our view, a different sort of applications, really very very different where you can combine legacy state applications with the AI applications and other things like that. How are you going to bring that to market? Who are you selling that to? >> Yeah, I mean, we're super excited about this transition, NVMe and we're trying to take a real leadership role here. And so much of it reminds us actually of the early days of Pure. When we started Pure, flash was expensive, it was exotic, you had a bunch of people trying to make it this 1% technology, and our whole idea was look, let's not make it a Ferrari, let's democratize it for all and we think everybody deserves flash. And we did a bunch of work to try to mainstream it. And we're trying to take a very similar approach with NVMe, where a lot of the early folks who approached NVMe built very specialized appliances, did exotic things. And our view is it should be mainstream. All flash arrays should be built on NVMe. And the real advantage is something you hinted at. It's just massively parallel. And so here you have flash, this inherently parallel medium on its own and we're talking through it through these legacy SCSI protocols that have been around forever. NVMe is a huge opportunity to open that up. But we had an initial insight, I believe, where when we approached this we didn't just say look, we should get an NVMe SSD. We realized that that whole architecture has to be optimized from software to hardware, and so we forgoed or forwent the SSD form factor. We built our own direct flash module, and the real magic of how we've approached this is not only shipping a device that's massively parallel, but building a bunch of software within Purity that knows how to take advantage of that, and brings all the flash management up to the software tier, so we can kind of take advantage of it end to end. And so, these are things we just don't see our competitors in the market doing right now. Maybe one more comment on your parallelism. I mean, I think you're right in that if you look at a wide range of next generation web-scale applications, whether they be more classic NoSQL databases on through analytics, on through to AI and ML. AI and ML are kind of maybe the most extreme examples, but they're all far more parallel scale out applications than we were used to before. And so they thrive in environments where you have storage that can marry that model. And what we're finding in particular in the AI world is that we're not up against other storage vendors. I mean, the alternative really is to go get a bunch of white-box DAS and build your own storage layer and maybe use some open source stuff, but that's cumbersome and that has all the issues that everyone's aware of, right? So we believe that as a commercialized product we have something pretty unique to offer these markets and it's been exciting to see it even push us. One of the things I think we surprised people with today was making FlashBlade 5x bigger. You know, we announced it last year, people thought it was pretty big and pretty fast to begin with, but it was these use cases and the early adopters that pushed us to make it larger. We saw people in the early adopter phase of FlashBlade buy in and deploy at much bigger scale than we were expecting. We were kind of used to our experience with FlashArray where people sort of started small, they got to use the technology, then they kind of grew. But I guess you don't do big data on a small scale. (Laughter) So people dived in. >> So I want to ask you about this whole big data, because it's probably the first time we've even used that term today. It's amazing how fast that came and went, even though big data's now mainstream. But, and you said, you made the point, Matt, that not a lot of storage competitors are going after that. Well, you'd think big data, storage, they would fit. But I think a lot of the competitors realized well, there's not a lot of money to be made there. And now it's just hitting its best stride. Here's my question. If you look at Hortonworks and Cloudera in particular, you're starting to see the cloud guys, Amazon with its data pipeline, certainly Google and Microsoft, are picking up a lot of action in the cloud with a full as-is service of the data pipeline. What do you see, and it's affecting some of the on-prem activity, what are you seeing with regard to cloud versus on-prem, and how does that affect your business? >> Yeah, I think you're right in the sense that if you looked at how you could have deployed big data technologies before, I think that there are basically two ways to do it. People that did it in the cloud, or they did it on-prem with white-box DAS, and they've got servers and put disks inside. So much of the first generation of big data was basically driven on Hadoop, which fairly low-cost and fairly focused at streaming workloads where you had this, frankly not much performance profile or need for performance on disk, and so what we found in the early days was, hey if you tried to put flash underneath it, didn't help that much. >> Dave: Didn't do much for it, right. But the thing that's changing now is people want to move away from those slow batch queries to much more interactive analysis, much more real time, and so Hadoop's given way to Spark, and so that's changed that discussion quite a bit. Back to the discussion though, around on-prem versus the cloud, I think this is an area where as people get more and more invested in their data, they're understanding it's a key control point. And so if I get all my data into one cloud provider, it's pretty hard to get it out of there. This is core to my business. Do I want that level of lock-in? Also, can I do better with my own dedicated solutions? And what we've found is that when we can bring FlashBlade to bear these big data workloads, we can outperform what people can do in the cloud handily, at a lower cost. And so there's a proclivity to want to own your own destiny, own your own infrastructure, and the ability for us to deliver a higher performance for a lower cost in the cloud we think is a pretty good connection. >> And of course, complexity is hurt, it isn't hurt, I mean, the market's growing very nicely, but it's actually hurt a lot of the practitioners' ability to absorb technology. I suppose Pure and its insane focus on simplicity helps a little bit, as does Spark, sort of simplify the whole Hadoop thing, but you've still got, you need a lot of smart people to make this stuff work. So it's going to be interesting to see, but what I'm hearing from you is you don't have a lot of storage competitors going hard after this. And so the guys that have done really well with Hadoop that have on-prem infrastructure you would think would be picking this up quite rapidly. Well, and look, we're having discussions with all of the Hadoop providers as well, because if we can help them deliver a higher customer satisfaction and a better outcome, it's upside for them as well. They don't want to be storage companies. >> Well, they need help, I mean the irony is that Cloudera is in the cloud era, and the cloud is eating away at its base, so they need somebody who's going to help them simplify, I mean, they're a software company, help us simplify the on-prem infrastructure. >> One of the things you said earlier that I think has been an additional learning for us, and FlashBlade as well, when we went into the FlashBlade experience, we kind of expected that people would buy and all they would care about is performance. And so we asked ourselves, well how much does this user base really care about simplicity? We found the total opposite to be true. Most of who we're selling FlashBlade to are not IT folk. They're data scientists, they're engineers, they're creatives, they're a line of business people. And they want nothing to do with managing infrastructure. And so the simplicity, oftentimes we're replacing what would have been racks and racks of disk that they didn't want to deal with to begin with. And so the simplicity value prop, shockingly, is actually more important, we're finding, for FlashBlade even than FlashArray. >> Makes a lot of, we have a saying in theCUBE that data is the new development kit. 'Cause it's like you say, it's data engineers, it's data science, even application developers are starting with the data, and so, and complexity has choked that whole industry, and so that's excellent. Okay, are you? >> Oh yeah, I was going to ask. One of the things you were saying very clearly here is that the drive of getting data up to the cloud to do this AI, or up to anywhere to do the processing, to create the models, is going to have to be ameliorated by reduction of that data. By reduction, I mean turning that data into informational tags or whatever it is as it's going up the line, very close to where the data is. >> Dave: I call it the needles in the hay stack. >> Yeah, extract the needles very early on. So can you talk a little bit more about what your vision is there, how are you going to do that, who are you partnering with to do that? >> Yeah, so I think that you hit on a very important problem, and I think everybody is starting to finally internalize how much faster devices and machines can generate data than humans. (Laughter) And so we're used to this human era of cognition of data creation, but this asymptote is happening. And, you know, I think it's becoming quite obvious that basically machines have the potential to generate data much faster than it can be stored, used, and especially sent back to the cloud. And so you need some level of local processing to analyze it, to send back more, you know, kind of per that metadata. The other challenge is that many of the use cases that people want to use at the edge are latency sensitive, and so you can't take the time to think about it, send it all back, think about it, send it back again-- >> Dave: Ogle it. >> And do some realtime control thing, right? My favorite anecdote that proves this is some of Amazon's infrastructure, where they build out dedicated data centers within their distribution facilities because they need to be able to realtime analyze the video feeds of everything that's going on, make decisions, right? And so if they can't send all the data to their cloud, they have to build they're own data center-- >> Dave: Nobody can! >> Inside there. (laughter) And so it's just indicative of a broader solution there, right? You'll see a demo that we're going to be doing tomorrow where we're doing a great coprocessing app where we're kind of collecting a bunch of data here at the show, analyzing it, and then sending part of it up to the cloud and partnering with Google to analyze it there, and showcasing an example use case of this. And so we think it's an area that's going to be important. Part of that also brings us to what we've done with our Purity run. So one of the things we've announced today was opening up our Purity platform to third party code, to developers. And we see a number of use cases for this. Many of our cloud customers have asked for this, where they want to kind of tie the storage more directly into their application, but the other use case we see is the edge. Where, if we can deploy a local Pure device on your oil rig, in your plane, in your factory, whatever, and have that processing capability happen there, and then to have that summarize the data and be able to send it back, that provides more of an all-in-one solution for that. And so, you know, we don't have dedicated products in this space yet, but this is our way of opening up the platform to be able to see how people develop on that how how they can start taking advantage of that. >> Okay so, we got to wrap, but you were telling us you were employee number six-- >> Matt: Yep! >> So that's quite a ride. I mean, so many companies just don't get to reach escape velocity, to use that term. You guys did. What's next for you, where do you want to take this thing? >> Yeah, I think we're all extraordinarily excited here at Pure. I mean, so much of this first generation of Pure's growth has been reshaping the existing storage environment. And, you know, we feel like we're through that mission. Yes, okay, only 20% or so of enterprise storage is flash, but the writing's on the wall, we're delivering the products. That is momentum now, right? >> Dave: Right. >> And so so much of our next generation of innovation is going after these new data-driven use cases, helping cloud providers, just going after what's next. And that opens up a much broader definition of what you can be as a data company. You know, we kind of stopped referring to ourselves as a storage company, we're going to have to get storage out of the name at some point, but you know, going after the broader problems around data is a much more exciting mission that we think powers the next decade, so, lots to do. >> Great, right, Kix, thanks very much for coming to theCUBE. >> Matt: Thank you guys! >> It's great to have you. >> Floyer: Thank you. >> Matt: Appreciate it. All right, keep right there, buddy, we'll be back to wrap up right after this short break. This is theCUBE, we're live from Pure Accelerate 2017. Right back. (upbeat electronic melody)

>> Announcer: Live from San Francisco, it's theCUBE! Covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome to Pier 70 in San Francisco, everybody. I'm Dave Vellante with my cohost Stu Miniman, and this is Pure Accelerate 2017. Pure Storage in 2009 started a big wave of flash migrations, and the company's strategy was to specifically go after the large EMC Install base of older Symmetrix, mainframe class storage, and even to a certain extent VNX and Clariion, if anyone remembers those terms, the Install base. Pure's ascendancy was really a function of shifting from spinning disk to flash. Fast forward seven, eight, nine years later, and Pure is talking about big data and AI and machine learning and IoT, and is really trying to completely transform not only the storage industry but itself as a leading player. The last time an independent storage company hit a billion dollars is about 20 years ago, a company called NetApp. Pure is trying to be the next to be a billion dollar company. Stu Miniman, lot of action goin' on here, used to be back in the day, I bought EMC for block, NetApp for file. Pure is trying to change that. >> Yeah, and Dave, you know storage, we've talked about it when Dell bought EMC. What did that mean to the whole storage industry? I wrote an article when it happened and said it's the end of the storage industry as we know it. When I came in here, it was like, oh, we're going to be talking about storage. You mentioned NetApp; I was at a NetApp event last week, and they said, "Storing is boring." It's really about the data, it's about the new applications. I really liked in the keynote they were talking about new use cases, new applications, how do they fit into that multi-cloud world, really interesting to hear Scott Dietzen, who we've known since this company was in stealth, laying out where the company is. They've got over 33 hundred customers, lot of SaaS applications, they're talking a lot about the machine learning and the AI pieces that are in here, but at the end of the day, I mean Dave, this is their primary business is a storage array replaces, as you said, the traditional EMC boxes that used to be sold. So how much of this is still kind of an update on what the legacy is doing, how much are they ready for the future? I'm excited to dig in with some real customers here. Pure has a good movement, good customer base, I've always had some good smart people with good tech, the Puritans as they call them, all wearing orange here. So, a cool venue and excited to dig in. >> Well, it's one of the fastest-growing companies in the storage business and in the IT business, and the way that Pure has gotten there isn't, you know, in its early days it never really talked much about so-called software-defined, it just did it. One of the problems that Pure attacks is the problem of migration. David Floyer and Wikibon have written extensively about the cost of migration, the pain of migration. It was almost just assumed, well you know, if I'm buying storage I'm going to have to migrate, and I'm going to spend 50, a hundred, sometimes many hundreds of thousands of dollars migrating my workloads from older arrays to newer arrays. Pure Storage has this Evergreen concept, where through the use of software and software-defined technologies, it's able to upgrade new customers quote-unquote seamlessly, there's that overused word again, but it's able to deliver essentially storage as a service even though you're putting an appliance on their site. So it's a radically different model. They've announced some things today, for instance like three site data replication, which is very very complicated. Trying to simplify that, so a lot of really novel ideas. Again I come back to their ascendancy. It was really based, Stu, upon attacking the slow, expensive spinning disk using its data reduction technology to create parity between the cost of spinning disk and the cost of flash, something David Floyer predicted back in 2009 would happen by 2014 for the high-spin speed. Now with FlashBlade, which is essentially the file-based system that Pure has, they're going after that same mantra with higher-capacity spinning disks, really going after the NetApp base. >> Yeah, and Dave, you mentioned that Pure could be the most recent billion dollar storage company. The company that might actually beat them to that is Nutanix. Now of course, Nutanix sells more than just storage. They're hyper-converged infrastructure, which means the compute that they're also selling, that's being used there, so it's not quite apples to apples, but the last quoter Nutanix had, about 10 million dollars more in revenue than Pure did; they also had IPOed. In that hyperconverge trend, one of the things that I saw early on on that, Dave, was attacking that migration cost. Hyperconverge, like what Pure does, a software layer, you create a pool of architectures, I can add in nodes, I can change configurations, I can update without the traditional way that we used to do it in storage, which was buy that box, take months to get it in there, load it up, transfer it over, retest it, you know all of those things that really kept your time-to-value on storage down, and that's something that Pure and all the hyper-converged players have been attacking, that kind of legacy mindset that we had in storage for so long. >> Yeah, and of course Pure's approach to converged is in partnership with Cisco and presumably others, I'm not actually sure about that, but Cisco's the main partner there with FlashStack, that's their converge play. They kind of do a knock on hyper-converged, kind of de-positioning it as sort of low-end, sort of contained, within small remote offices, whereas they're positioning FlashStack as the scalable internet infrastructure. Pure does very well with SaaS companies, they do, they're increasingly doing better with Fortune 500, they've still got a long way to go there. About 80% of their business is U.S., so there's a lot of upside internationally. We're talking about a company that'll be a billion dollars in their fiscal 2018, which is fundamentally the year we're in now, they've got about a 2.4 billion dollar market cap, they're growing at about 30% a year. And very interestingly, they had mid-60% gross margins at one point last year, they had like 69.6% gross margin, which is unheard of, you know, we haven't really seen this since back in the heydays of NetApp and EMC. The question is, is that sustainable? And of course the big question that we have today, and we're going to talk to Scott Dietzen, nickname Dietz, lot of nicknames here at Pure Storage, about is the concept of a large independent storage company. That concept is going away, it's like extinct except for one company really, NetApp is the only billion-dollar storage company left. It's been 20-plus years, maybe even 25 years since that's occurred. What are your thoughts on that, Stu? You know, I wrote a piece maybe eight years ago, Can EMC Remain Independent, recognizing that most of EMC's value was coming from Vmware and of course EMC could not remain independent. Do you think a company like Pure can unseat the leaders of Dell, EMC, HPE, IBM, and remain an independent storage company? >> Well, one of the things I always look at is what is, where are they going to hit their plateau? They're reaching towards billion dollars and they do continue to grow. I think that Pure still has plenty of headroom, but how long does it take them, Dave, to get to three or five billion dollars? The reason I throw out that number is that's probably how much storage Amazon's doing today. You know, look at Amazon, it's a 15 billion dollar company, somewhere between 15 and 30% of Amazon's business, and nobody in the storage business talks about that because it just ties to my applications. So I want to follow the applications, follow the data. It's good to hear that Pure is getting in with a lot of SaaS providers. From Wikibon data, 2/3 of the public cloud data, I'm sorry, of the public cloud revenue, is SaaS providers, so absolutely here come these like Pure, SolidFire sold, before when they were an independent company, sold to lots of service providers as well as SaaS providers. Kaminario, a Massachusetts-based flash company, sells to I believe it's about half of their business, is selling to the SaaS providers because these are companies that look at, okay I need to own how I scale my environment, own those economics, and need to grow that. And just one more piece on that economics, Dave. Look at that kind of multi- or hybrid cloud world. I bristle a little bit when I hear Scott Dietzen kind of almost say, public cloud, it's in the corner. about 20% of the use cases fit in that environment, yeah we'll do snaps to Amazon, we'll do some other things. But you don't put the public cloud in the corner and just say, oh, 20% of the market's there. 'Cause that's today, and it is still growing 50, 75, 100% depending on which public cloud you're talking about. We think that there's still plenty of upside, and when does that become a headwind that will slow the growth of what Pure's doing? You see a lot of the other software storage companies out there say how do they become software? When we were at the Veeam show, Dave, how did, they really were, we're going to live in Azure. We're going to partner with AWS, and they don't really care. Pure very much, their growth, their revenue, and their margins today are all built that they're going to be selling gear with that, yes they have the Purity 1 software and they have some cloud plays, but very much seems to be saying that public cloud's not the direction. I'm sure Scott will probably give us a little more nuance there, but you know, that legacy change to new distributed architectures has been a tailwind for Pure, and when will cloud be something that will push against their growth? >> Well, we're going to ask Scott Dietzen about that, and you're right on, I mean public cloud clearly is growing, I mean it's growing like crazy, particularly the SaaS component of that. Now of course, that can be a tailwind for Pure because they do sell to SaaS companies. They even, Scott even had a slide up there today showing Google, Uber, Facebook, AWS. Did you infer like I did that they were implying that they were selling to those companies, or? >> No, no no, I saw because in the last quarterly report they talked about basically the number four through a thousand. >> Dave: Four to a thousand. >> Dave: Right. >> So they're not selling to the top three, that they're clear on. >> So, okay, so the top three would be Amazon, Google, and Microsoft-- >> Right. >> But then there's Facebook, and Uber, possibly they could sell to those companies, Spotify is a SaaS company, so that SaaS part of the market is growing like crazy. Now the other point is, Wikibon released a study. We've been talking about it for the last couple of weeks in theCUBE around the true private cloud market forecast. True private cloud is an on-prem infrastructure that substantially mimics the public cloud at a much lower cost. We came up with this notion of true private cloud because there was so much cloudwashing going on, which really was virtualization. Now, the true private cloud is growing actually faster than any other cloud segment, now from a smaller base, granted. But we see about a 230 billion dollar TAM over the next 10 years evolving. Now, the most important part of this, and Scott Dietzen touched upon this in the morning, as did Hat, using some nicknames again, that companies are really focused on lowering their IT labor costs, and we see 150 billion dollars, approximately, of IT labor moving out of nondifferentiated heavy lifting, into what we sometimes call vendor R&D. In the form of cloud, or on-prem products, appliances, and other software frameworks that can automate and eliminate this low-value provisioning and patching and LUN management. So, Stu, you were very much involved in that true private cloud report, that market's exploding. I mean, to me, it's all about TAM expansion for Pure. They're a billion dollar company, roughly, they're participating in a 30 or 40 billion dollar market, so they have a long way to go. >> Yeah, absolutely. Because really, Dave, it's about the application. It is not a winner-takes-all environment. When you look at multicloud, it's what applications, and even we start teasing apart pieces of my applications and where they live. So, I look at, there was a nice logo slide that Pure put up, and you say okay, Hulu is a customer. Well, is Pure helping with their CDN? I really doubt it. You know, you look at Workday. Workday, up on stage at Amazon Reinvent talking about how they partnered with Amazon. So what applications is Pure winning, which ones are their customers using the public cloud for, and how does all of that sort out? Absolutely, true private cloud is really that reinvention of the data center, that flipping, if you will, of I mean Dave, you probably know better than me, that saying that IT spends 80 or 90 percent of their budget on keeping the lights on. How do we flip that so we can spend money on innovating, driving the business forward, stop spending on one of our favorite terms, undifferentiated heavy lifting and move to innovate and drive the business, and have IT serving those applications and serving the things that help me differentiate from the competition and move faster. Because, absolutely I'm sure something we'll hear this show, is it's that agility and that speed is what companies need, and Pure with their six nines of availability and that if you buy it today you're future-proof, if you will, is going to help customers say that they can have a platform that they buy today and know it's going to serve them well in the future. >> Well, Mark Benioff I think was the first that I heard said it, or it might've been Peter Burns, I can't remember, but basically there're going to be many more SaaS companies coming out of non-tech companies than tech companies. That to me, Stu, is a big, big tailwind for a company like Pure who's software first, software-defined, knows how to sell to SaaS companies. The other thing is, Pure's the latest company. They didn't say this but they certainly, one could infer it, the latest company to basically say tape is dead. So it used to be offsite backup the tape, now they're talking the flash to flash to cloud as the long-term retention. So a lot of really interesting things going on here. The venue is actually quite amazing, it's at Pier 70, this place is going to get torn down right after this show, it's a place that used to be an old steel mill that used to make battleships here, about two battleships a year during World War II. >> Yeah, the new Warriors facility is going to be here in Dogpatch soon, and I know everybody's super excited about that. >> Yeah, well, yeah, a lot of purple hats here, a lot of excited Warriors fans. >> All right, we'll be back, we've got day-to-day all day, wall-to-wall coverage of Pure Accelerate, #PureAccelerate. This is theCUBE, I'm Dave Vellante with Stu Miniman, we'll be right back with Scott Dietzen right after this short break. (upbeat electronic chords)