>>Hey guys. Good morning. And welcome back to the cube. Lisa Martin here with John furrier. This is the Cube's third day of Wal Dal coverage of VMware Explorer. We're very pleased to welcome one of our alumni back to the program. Chris Wolf joins us chief research and innovation officer at VMware. Chris, welcome back to the >>Cube. Yeah. Thanks Lisa. It's always a pleasure. >>This has been a great event. We, we, the key note was standing room only on Tuesday morning. We've had great conversations with VMware's ecosystem and VMware of course, what are some of the, the hot things going on from an R and D perspective? >>Yeah, there's, there's a lot. I mean, we're, we have about four or five different priorities. And these look at this is looking at sovereign clouds and multi-cloud edge computing, modern applications and data services. We're doing quite a bit of work in machine learning as well as insecurity. So we're, we're relatively large organization, but at the same time, we really look to pick our bets. So when we're doing something in ML or security, then we wanna make sure that it's high quality and it's differentiated and adds value for VMware, our partners and our customers. >>Where are our customers in the mix in terms of being influential in the roadmap? >>Very, very much in the mix. What we, what we like to do is in early stage R and D, we want to have five to 10 customers as design partners. And that really helps. And in addition to that, as we get closer to go to market, we look to a lineup between one and three of our SI partners as well, to really help us, you know, in a large company, sometimes your organic innovations can get lost in the shuffle. Yeah. And when we have passionate SI that are like, yes, we want to take this forward with you together. That's just awesome. And it also helps us to understand at a very early stage, what are the integration requirements? So we're not just thinking about the, the core product itself, but how would it play in the ecosystem equally important? >>We had hit Culbert on CTO, great work. He's dealing with the white paper and cross cloud, obviously vSphere, big release, lot of this stuff. Dave ante had mentioned that in the analyst session, you had a lot of good stuff you were talking about. That's coming around the corner. That's shipping coming outta the oven and a big theme this year is multi-cloud cloud native. The relationship what's one's ahead. Bleed dog. No one, you kinda get a feel for multi-cloud. It's kind of out front right now, but now cloud native's got the most history what's coming out of the oven right now in terms of hitting the market. That's not yet in this, in the, in the, in the numbers, in terms of sales, like there's, there's some key cloud native stuff coming out. Where's the action. Can you share what you've shared at the analyst meeting? >>Yeah. So at the analyst meeting, what I was going through was a number of our new innovation projects or projects. And, and these are things that are typically close to being product or service at VMware, you know, somewhere in the year out timeframe. Some, some of these are just a few months out. So let me just go through some of them, I'll start with project keek. So keek is super exciting because when you think about edge, what we're hearing from customers is the, the notion of a single platform, a single piece of hardware that can run their cloud services, their containers, their VMs, their network, and security functions. Doing all of this on one platform, gives them the flexibility that as changes happen, it's a software update. They don't have to buy another piece of hardware, but if we step back, what's the management experience you want, right? >>Simple get ops oriented, simple life cycle and configuration management, very low touch. I don't need technical skills to deploy these types of devices. So this is where keek comes in. So what keek is doing is exposing a Kubernetes API above the ESXi hypervisor and taking a complete, get op style of management. So imagine now, when you need to do an update for infrastructure, you're logging into GitHub, you're editing a YAML file and pushing the update. We're doing the same thing for the applications that reside. I can do all of this through GitHub. So this is very, I would say, even internally disruptive to VMware, but super exciting for our customers and partners that we've shared this with. >>What else is happening? What else on the cloud native side Tansu Monterey those lot areas. >>Oh, there's so much. So if we look at project Monterey, I had a presentation within Invidia yesterday. We're really talking through this. And what I'm seeing now is there's a couple of really interesting inflection points with DPU. The first thing is the performance that you're getting and the number of cores that you can save on an X 86 host is actually providing a very strong business case now to bring DPU into the servers, into the data center. So that's one. So now you have a positive ROI. Number two, you start to decouple core services now from the X 86 host itself. So think about a distributed firewall that I can run on a PCI adapter. Now that's DEC coupled, physically from the server, and it really allows me to scale out east west security in a way that I could not do before. So again, I think that's really exciting and that's where we're seeing a lot of buzz from customers. >>So that DPU, which got a lot of buzz, by the way, Lisa, I never, you had trouble interviews on this. I had to the Dell folks too, V X RS taking the advantage of it, the performances, I see the performance angle on that and deep user hot. Can you talk about that security east west thing? Cuz Tom Gillis was on yesterday talking about that's a killer advantage for the security side. Can you touch on that real >>Quick? Yeah. A hundred percent. So what I can now do is take a, a firewall and run it isolated from the X 86 host that it's trying to protect. So it's right next to the host. I can get line rate speeds in terms of analytics and processing of my network and security traffic. So that's also huge. So I'm running line rate on the host and I'm able to run one of these firewall instances on every host in my data center, you cannot do that. You can never afford it with physical appliances. So to me, this is an inflection point because this is the start of network and security functions moving off of hardware appliances and onto DPU. And if you're the ecosystem vendors, this is how they're going to be able to scale some of their services and offerings into the public >>Cloud. So a lot of good stuff happening within the VMware kind of the hardware, low level atoms and the bits as well as the software. The other thing I wanna get your thoughts on relative to the next question is that takes to the next level is the super cloud world we're living in is about cloud native developers, which is DevOps dev security ops and data ops are now big parts of the, the challenges that the people are reigning in the chaos that that's being reigned in. How does VMware look at the relationship to the cloud providers? Cause we heard cloud universal. We had the cloud. If you believe in multi-cloud, which you guys are saying, people are agreeing with, then you gotta have good tight couple coupled relationships with the cloud services, >>A hundred percent. >>We can be decoupled, but highly cohesive, but you gotta connect in via APIs. What's the vision for the VMware customers who want to connect say AWS, for instance, is that seamless? What makes that happen? What's that roadmap look like for taking that VMware on premises hybrid and making it like turbo charging it to be like public cloud hybrid together? >>Yeah, I think there's some lessons that can be learned here. You know, an analogy I've been using lately is look at the early days of virtualization when VMware had vCenter, right? What was happening was you saw the enterprise management vendors try to do this overlay above virtualization management and say, we can manage all hypervisors. And at the end of the day, these multi hypervisor managers, no one bought 'em because they can do 20% of the functionality of a tool from VMware or Microsoft. And that's the lesson that we have to take to multi-cloud. We don't have to overlay every functionality. There's really good capabilities that the cloud providers are offering through their own tooling and APIs. Right? But you, you, if you step back, you say, well, what do I wanna centralize? I wanna have a centralized, secure software supply chain and I can get that through VMware tan zoo and, and where we're going with Kubernetes. When you're going with native cloud services, you might say, you know what, I wanna have a central view of, of visibility for compliance. So that's what we're doing with secure state or a central view of cost management. And we're doing that with cloud health. So you can have some brokering and governance, but then you also have to look from a surgical perspective as to what are the things that I really need to centralize versus what do I not need to centralize? >>One of the themes that we heard on the keynote on Tuesday was the, the different phases and that a lot of customers are still in the cloud chaos phase. We talked a lot about that in the last couple days with VMware, with its partner ecosystem. And, but the goal of getting to cloud smart, how does the R and D organization, how do, how are you helping customers really navigate that journey from the chaos that they're in, maybe they've inherited multi-cloud environment to getting to cloud smart. And what does cloud smart mean from your perspective >>Cloud? Smartt from my perspective means pragmatism. It means really thinking about what should I do here first, right? I don't want to just go somewhere because I can, right. I want to be really mindful of the steps I'm going to take. So one ex one example of this is I've met with a customer this morning and we were talking about using our vRealize network insight tool, because what that allows 'em to do is get a map of all of their application dependencies in their data center. And they can learn like, well, I can move this to the cloud or maybe I can't move this cuz it has all these other dependencies and it would be really difficult. So that's that's one example. It also means really thinking through issues around data sovereignty, you know, what do I wanna hold onto a customer? I just met with yesterday. They were talking about how valuable their data is and their services that they want to use via SA in the cloud. But then there's also services, which is their core research. They wanna make sure that they can maintain that in their data centers and maintain full control because they see researchers will leave. And now all of a sudden, so that intellectual property has actually gone with the person and they need to, they need to have, you know, better accountability there. >>Yeah. One of the things about that we discovered at our super cloud event was is that, you know, we kind didn't really kind of put too much structure on other than our, our vision. It's, it's not just SaaS on cloud and it's not just, multi-cloud, it's a new kind of application end state or reality that if you believe in digital transformation, then technology is everywhere. And like it in the old days, it powered the back office and then terminals and PCs and whatnot, wasn't powering the boardroom obviously or other business. But if, if it happens like that digital transformation, the company is the app, the app is the company. So you're all digital. So that means the operating expenses has to drive an income statement and the CapEx handled by the cloud provides a lot of goodness. So I think everyone's gonna realize that AWS and the hyperscalers are providing great CapEx gifts. They do all the work and you only pay when you've made your success. So that's a great business model. >>Absolutely >>That's and then combine that with open source, which is now growing so fast, going next level, the software industry's open source. That's not even a debate Mo in some circles, maybe like telco, cloud's got the CapEx. The new operating model is this cloud layer. That's going to transform the companies finally in a hundred percent. Okay. That's super cloud. If that's the case, does it really matter who provides the electricity or the power? It's the coders that are in charge. It's the developers that have to make the calls because if the application is the core, the developers are, are not only the front lines, they are the company. This is really kind of where the sea change is. So if, if we believe that, I'm sure you, you agree with that generally? >>Yeah, of >>Course. Okay. So then what's the VMware customer roadmap here. So to me, that's the big story here at the show is that we're at this point in time where the VMware customers are, have to go there >>A hundred percent, >>What's that path. What is the path for the VMware customer to go from here to there? And what's this order of operations or is there a roadmap? Can, can you share your thoughts on >>That? Yeah, I think part of it is, is with these disruptive technologies, you have to start small, you know, whether it's in your data center, into cloud, you have to build the own institutional knowledge of your team members in the organization. It's much easier than trying to attract outside talent, for least for many of our customers. So I think that's important. The other part of this when with the developer and control, like in my organization, I want my innovators to innovate any other noise around them. I don't want them to have to worry about it. And it's the same thing with our customers. So if your developers are building the technologies that is really differentiating your company, then things like security and cryptography shouldn't have to be things they worry about. So we've been doing a lot of work. Like one of the projects we announced this week was around being able to decouple cryptography from the applications themselves. And we can expose that through a proxy through service mesh. And that's really exciting because now it ops can make these changes. Our SecOps teams can make these changes without having to impact the application. So that's really key is focusing the developers on innovation and then really being mindful about how you can build the right automation around everything else. And certainly open source is key to all >>That. So that's so, so then if you, if that's happening, which I'm, I'm not gonna debate that then in essence, what's really going on here is that the companies are decomposing their entire businesses down to levels that are manageable completely different than the way they did them 20, 30 years ago. >>Absolutely. You, you, you could take a modular approach to how you're solving business problems. And we do the same thing with technology, where there might be a ML algorithms that we've developed that we're exposing as SA service, but then all of the interconnects around that service are open source and very flexible so that the businesses and the customers and the VMware partners can decide what's the right way to build a puzzle for a given problem. >>We were talking on day one, I was riffing with an executives. It was Ragu and Victoria. And the concept around cross cloud was if you get to this Nirvana state, which is we, people want to get to this or composability mode, you're not coding, you're composing cuz coding's kinda happening open source and not the old classic, write some code and write that app. It's more orchestrate, compose and orchestrate. Do you, what's your thoughts on >>That? Yeah, yeah. Yeah. I, I agree. And it's it's I would add one more part to it too, which is scope. You know, I think sometimes we see projects fail because the, the initial scope is just too big. You know, what is the problem that you need to solve, scope it properly and then continuously calibrate. So even like our customers have to listen to their customers and we have to be thinking about our customers' customers, right? Because that's really how we innovate because then we can really be mindful of a holistic solution for them. >>You know, Lisa, when we had a super cloud event, you know, one of the panels was called the innovators dilemma with a question mark. And of course everyone kinds of quotes that book innovators dilemma, but one of the panelists, Chris ho beaker on Twitter said, let's change the name from the innovator's dilemma to the integrator's dilemma. And we all kind of got chuckled. We all kind of paused and said, Hey, that's actually a good point. Yeah. If you're now in a cloud and you're seeing some of the ecosystem floor vendors out there talking in this game too, they're all kind of fitting in snapping in almost like modular, like you said, so this is a Lego game. Now it feels like, it feels like, you know, let's compose, let's orchestrate, let's integrate. Now I integrations API driven. Now you're seeing a lot more about API security in the news and we've been covering at least I've probably interviewed six companies in the past, you know, six months that are doing API security, who would've thought API, that's the link, frankly, with the web. Now that's now a target area for hackers. >>Oh. And that's such an innovation area for VMware, John. Okay. >>There it is. So, I mean, this is, again, this means the connected tissue is being attacked yet. We need it to grow. No one's debating that is wrong, but it's under siege. >>Yes. Yes. So something else we introduced this week was a project. We called project Trinidad. And the way, the way you can think about it is a lot of the anomaly detection software today is looking at point based anomalies. Like this API header looks funny where we, where we've gone further is we can look at full sequence based anomalies so we can learn the sequences of transactions at an application takes and really understand what is expected behavior within those API calls within the headers, within the payloads. And we can model legitimate application behavior based on what those expectations are. So like a, like a common sequence might be doing an e-commerce checkout, right? There's lots of operations that happen logging into the site, searching, finding a product, going through the cart. Right. All of those things. Right. So if something's out of sequence, like all of a sudden somebody's just trying to do a checkout, but they haven't actually added to the cart. Right. This just seems odd. Right. So we can start to, and that's a simplistic example, but we're able now to use our algorithms to model legitimate application behavior through the entire sequence of how applications behave and then we can start to trap on anomalies. That's very differentiating IP and, and we think it's gonna be really important for the industry. Yeah. >>Because a lot of the hacks, sometimes on the API side, even as a example, are not necessarily on the API, it's the business logic in them. That's what you're getting at here. Yes. The APIs are hard. Oh our APIs are secure. Right. Well, yeah, but you're not actually securing the business logic internally. That's what you're getting at. If I read >>That right. Or exactly. Exactly. Yeah. Yeah. And it, it's the thing it's right. It's great that you can, you can look at a header, but what's the payload, right? What is what's, what's the actual data flow, right. That's associated with the call and that's what we want to really hone in on. And that's just a, it's, it's a, it's a far different level of sophistication in being able to understand east west vulnerabilities, you know, log for JX voice and these kind of things. So we have some real, it's interesting technology >>There. Security conversations now are not about security there about defense ability because security's a state of time, your secure here, you're not secure or someone might be in the network or in the app, but can you defend yourself from, and in >>That's it, you know, our, our, our malware software, right. That we're building to prevent and respond has to be more dynamic than the threats we face. Right. And this is why machine learning is so essential in, in these types of applications. >>Let me ask you a question. So just now zooming out riffing here since day, three's our conversational day where we debate and just riff more like a podcast style. If you had to do a super cloud or build a NextGen cloud multi-cloud with abstraction layer, that's, you know, all singing and dancing and open everyone's happy hardware below it's working ISAs and then apps are killed. Can ass what's in that. What does it look like to you if you had to architect the, the ultimate super cloud enabler, that something that would disrupt the next 10 years, what would it look like and how does, and assuming, and trying to do where everybody wins go, you have 10 seconds. No, >>Yeah, yeah. So the, you know, first of all, there has to be open source at all of the intersections. I think that's really important. And, and this is, this goes from networking constructs to our database, as a service layers, you know, everything in between, you know, the, the, the participants should be able to win on merit there. The other part of super cloud though, that hasn't happened that I probably is the most important area of innovation is going to be decoupled control planes. We have a number of organizations building sovereign cloud initiatives. They wanna have flexibility in where their services physically run. And you're not going to have that with a limited number of control planes that live in very specific public cloud data centers. So that's an area, give >>An example of what a, a, a, a narrowly defined control plane is. >>Yeah, sure. So my database as a service layer, so the, the, the actual portal that the customer is going into to provision databases, right. Rep managed replication, et cetera. Right. I should be able to run that in a colo. I should be able to run that somewhere in region that is guaranteed, that I'm going to have data stay physically in region. You know, we still have some of these challenges in networking in terms of being able to constrain traffic flows and be able to predict and audit them within a particular region as well. >>It's interesting. You bring up region again, more complexity. You know, you got catalogs here, catalogs different. I mean, this is where the chaos really comes down. I mean, it's, it's advancing, but it's advancing the state of functionality, but making it hella complex, I mean, come on. Don't you think it's like pretty amazingly hard to reign in that? Well, or is it maybe you guys making it easier? I just think I just, my mind just went, oh my God, I gotta, I gotta provision to that region, but then it's gotta be the same over there. And >>When you go back to modular architecture constructs, it gets far easier. This has been really key for how VMware is even building our own clouds internally is so that we have a, a shared services platform for the different apps and services that we're building, so that you do have that modularized approach. Like I said, the, the examples of innovation projects I've shared have been really driven by the fact that, you know, what, I don't know how customers are gonna consume it, and I don't have to know. And if you have the right modular architecture, the right APIs around it, you don't have to limit a particular project or technology's future at the time you build >>It. Okay. So your super would have multiple control planes that you can move, manage with that within one place. I get that. What about the data control plane? That seems to be something that used to be the land grab in, in conversations from vendors. But that seems to be much more of a customer side, cuz if I'm a customer, I want my control plane data plane to be, you know, mine. Like I don't want to have anyone cuz data's gotta move around, gotta be secure. >>Oh exactly. >>And that's gonna be complicated. How does, how do you see the data planes emerging? >>Yeah. Yeah. We, we see an opportunity really around having a, a centralized view that can give me consistent indexing and consistent awareness of data, no matter where it resides. And then being able to have that level of integration now between my data services and my applications, because you're right, you know, right now we have data in different places, but we could have a future where data's more perpetually in motion. You know, we're already looking at time sensitive fabrics where we're expecting microservices to sometimes run in different cell towers depending on the SLA that they need to achieve. So then you have data parts that's going to follow, right? That may not always be in the same cloud data center. So there's, this is enormously complicated, not just in terms of meeting application SLAs, but auditing and security. Right. That makes it even further. So having these types of data layers that can give me a consistent purview of data, regardless of where it is, allow me to manage and life cycle data globally, that's going to be super important, I believe going forward. >>Yeah. Awesome. Well, my one last question, Lisa, gonna get a question in here. It's hard. Went for her. I'm getting all the, all the questions in, sorry, Lisa that's okay. What's your favorite, most exciting thing that you think's going on right now that people should pay attention to of all the things you're looking at, the most important thing that that's happening and maybe something that's super important that people aren't talking about or it could be the same thing. So the, the most important thing that you think that's happening in the industry for cloud next today and, and maybe something that you think people should look at and pay more attention to. >>Okay. Yeah, those are good questions. And that's hard to answer because there's, there's probably so much happening. I I've been on here before I've talked about edge. I still think that's really important. I think the value of edge soft of edge velocity being defined by software updates, I think is quite powerful. And that's, that's what we're building towards. And I would say the industry is as well. If you look at AWS and Azure, when they're packaging a service to go out to the edge it's package as a container. So it's already quite flexible and being able to think about how can I have a single platform that can give me all of this flexibility, I think is really, really essential. We're building these capabilities into cars. We have a version of our Velo cloud edge device. That's able to run on a ruggedized hardware in a police car today. We're piloting that with a customer. So there is a shift happening where you can have a core platform that can now allow you to layer on applications that you're not thinking about in the future. So I think that's probably obvious. A lot of people are like, yeah. Okay. Yes. Let's talk about edge, big deal. >>Oh it's, it's, it's big. Yes. It's >>Exploding, but >>It's complicated too. It's not easy. It's not obvious. Right. And it's merging >>There's new things coming every day. Yeah. Yeah. And related to that though, there is this kind of tension that's existing between machine learning and privacy and that's really important. So an area of investment that I don't think enough people are paying attention to today is federated machine learning. There's really good projects in open source that are having tangible impact on, in a lot of industries in VMware. We are, we're investing in a, in a couple of those projects, namely fate in the Linux foundation and open FFL. And in these use cases like the security product I mentioned to you that is looking at analyzing API sequence API call sequences. We architected that originally so that it can run in public cloud, but we're also leveraging now federated machine learning so that we can ensure that those API calls and metadata associated with that is staying on premises for the customers to ensure privacy. So I think those intersections are really important. Federated learning, I think is a, an area not getting enough attention. All right. All >>Right, Chris, thanks so much for coming on. Unfortunately we are out of time. I know you guys could keep going. Yeah. Good stuff. But thank you for sharing. What's going on in R and D the customer impact the outcomes that you're enabling customers to achieve. We appreciate your >>Insights. We're just getting started >>In, in early innings, right? Yeah. Awesome. Good stuff for guest and John furrier. I'm Lisa Martin. You're watching the cube live from VMware Explorer, 2022. Our next guest joins us momentarily. >>Okay.

(bright intro music) >> Welcome back everyone to VMware Explore '22. I'm John Furrier, host of the key with David Lante, our 12th year covering VMware's user conference, formerly known as VM-World now rebranded as VMware Explore. You got two great Cube alumni coming on the Cube. Ricky Cooper, SVP worldwide partner commercial VMware. Great to see you, thanks for coming on. >> Thank you. >> We just had a great chat-- >> Good to see you again. >> At HPE discover. And of course, Joseph George, Vice President of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys, this year is very curious, VMware, a lot going on. The name change of the event. Big move, Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference... Kind of people were wondering what would be the barometer of the event. We were reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. I mean, this is not a show that's looking like it's going to be, you know, going down. This is clearly a wave. We're calling it super cloud, multi-cloud's their theme. Clearly the cloud's happening. Not to date ourselves, but 2013 we were discussing on the-- >> We talked about that, yeah. >> HPE Discover about DevOps infrastructure as code. We're full realization now of that. This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because the customers are refactoring, they are looking at cloud native, the whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. What's going on? >> Yeah absolutely, we're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up all the way up the stack and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and applications. Customers want to live in that sort of a cloud environment. And so we're seeing a renewed interest, a lot of conversations we're having with customers now, a lot of customers committing to that model, where they have applications and workloads running at the edge in their data center and in the public cloud in a lot of cases. But having that mobility, having that control, being able to have security in their own control. There's a lot that you can do there. And obviously partnering with VMware. We've been partners for so long. >> 20 years, at least. >> At least 20 years. Back when they invented stuff. They were inventing way-- >> VMware's got a very technical culture, but Ricky, I got to say that we commented earlier when Ragu was on the CEO now CEO, I mean legendary product guy, set the trajectory to VMware, everyone knows that. I can't know whether it was VMware or HP, HP before HPE coined Hybrid. Cause you guys were both on, I can't recall Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. (men chuckle) >> Hybrid Cloud I had a big thing with Pat Gelsinger, Dave. Remember when he said he got in my grill on theCube, live, but now you see. >> You focus on that multi-cloud aspect. So you've got a situation where our customers are looking at multi-cloud and they're looking at it, not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors, you're seeing a whole seed change. You're seeing partners now looking at this. So look at the OEMs, the ones that have historically been vSphere customers and now saying they're coming in, drove saying, okay, what is the next step? Well, how can I be a multi-cloud partner with you? How can I look at other aspects that we're driving here together? So GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be right. Let's make sure that we've got the agreements in place that support this Sasson subscription motion going forward. And then the sky's the limit for us. >> You're plugging that right into. >> Well, here's why, here's why, so customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to an on-premise, you've got the hardware, you've got the software, you've got the guys on board to maintain this through its life cycle. I mean, this is complicated stuff. Now we've got a situation where you can say, Hey, we can get an SLA on premise. >> And I think what you're seeing is it's very analogous to having a financial advisor, just manage your portfolio. You're taking care of just submitting money. That's really a lot of what a lot of the customers have done with the public cloud. But now a lot of these customers are getting savvy. They have been working with VMware technologies and HPE for so long. they've got expertise. They know how they want their workloads architected. Now we've given them a model where they can leverage the cloud platform to be able to do this, whether it's on premise, the edge or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself. What are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing last time we talked at HPE discover. We talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems on-prem is a phenomenal idea for all these customers. And they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners such as HPA, using other partners for various areas of the services implementation as well. So that's another phenomenon. You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too. I mean the digital modernization that's going on, the transformation whatever you want to call it, is complicated, that's clear. One of the things I liked about the keynote today was the concept of cloud chaos, because we've been saying quoting Andy Grove, Next Intel, let chaos rain and rain in the chaos. And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it and kicks the inflection point, that's up and to the right. >> So prime idea right here. So. >> GreenLake is, well. >> Also look at the distribution model and how that's changed a couple of points on a deal. Now they're saying I'll be your aggregator. I'll take the strain and I'll give you scale. I'll give you VMware scale for all of the various different partners, et cetera. >> Yeah. So let's break this down because this is, I think a key point. So complexity is good, but the old model in the enterprise market was, you solve complexity with more complexity and everybody wins. Oh yeah, we're locked in. That's not what the market wants. They want self- service, they want as a service, they want easy, developer first security data ops. DevOps is already in the cycle. So they're going to want simpler, easier, faster. >> And this is kind of why I I'll say for the big announcement today here at VMware Explorer around the VMware vSphere distributed services engine, project Monterey that we've talked about for so long, HPE and VMware and AMD with the Pensando DPU actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake. >> We invested in Pensando right, we are investors. >> What's the benefit of that. That's a great point. You made what's the value to the customer bottom line, that deep, co-engineering, co-partnering, what is it deliver that others don't do? >> Yeah. Well, I think one example would be a lot of vendors can say we support it. >> Yep. That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car. And that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando as well as the business work to make that simple and easy that transaction to work. And then to be able to make it available as a service is really what made, that's why it's such a winner here... >> But, it's also a lower cost out of the box. Yes. So you get in whatever it's called a 20%. Okay. But there's nuance because you're also on a new technology curve and you're able to absorb modern apps. We use that term as a promo, but when I say modern apps, I mean data, rich apps, things that are more AI driven. Not the conventional, not that people aren't doing, you know, SAP and CRM, they are. But, there's a whole slew of new apps that are coming in that traditional architectures aren't well suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of going to the next stage, which is the go to market between the two organizations that before at the moment, HPE is running off doing various different things. We were running off to. Again, that chaos that you're talking about in cloud chaos, you got to go to market chaos, but by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake and be known in the marketplace for these solutions? Then you get an organization that's really behind the go to market. You can help with sales, activation, the enablement. And then we benefit from the scale of HPE. >> Yeah. What are those solutions, I mean... Is it just, is it IS? Is it compute storage? Is it specific SAP? Is it VDI? What are you seeing out there? >> So right now for this specific technology, we're educating our customers on what that could be. And at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with project Monterey. And this is now allowing customers to think about where are their use cases. So I'm rather than going and say, use it for this. We're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level? That could be somewhere else like networking as a great example, and allowing more of those compute cycles to be available. So where there are performance requirements for an application where there are timely response that's needed for results to be able to take action on, to be able to get insight from data really quick. Those are places where we're starting to see the services moving onto something like a DPU. And that's where this makes a whole lot more sense. >> Okay, so to get this right? You got the hybrid cloud, right? You got GreenLake and you got the distributed engine. What's that called? >> It's HPE Proliant Proliant with the VMware, VSphere. >> VSphere. That's the compute distributed. Okay. So does the customer, how do you guys implement that with the customer all three at the same time or they mix and match? How's that work? >> All three of those components. So the beauty of the HP Proliant with VMware vSphere distributed services engine also now is project Monterey for those that are keeping notes at home. Again already pre-engineered so we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware. And because if you're familiar and comfortable with all the things that HP Proliant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular solution. >> Sumit Dhawan had a great quote on theCube just a hour or so ago. He said you have to be early to be first. Love that quote. Okay. So you were first, you were probably a little early, but do you have a lead? I know you're going to say yes. Okay. Let's just assume that okay. Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah, if you lead, if you're the best. >> We go to the source of the truth, which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early, we're keeping our lead. What are the things that you look at, as indicators? >> I'll say it this way. We've been in a lot of businesses where we do compete head-to-head in a lot of places and we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well let me go shop around. It is HP GreenLake, let's talk about how we actually build this solution. >> And I can tell you from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign. Is that, Hey, we need to see this partnership come together in GreenLake. >> Yeah. Okay. So you would concur with that? >> Absolutely. So third party validation. >> From Switzerland. Yeah. >> Bring it with you over here. >> We're talking about this earlier on, I mean, of course with I mentioned earlier on there's some contractual things that you've got to get in place as you are going through this migration into Sasson subscription, et cetera. And so we are working as hard as we can to make sure, Hey, let's really get this contract in place as quickly as possible, it's what the customers are asking us. >> We've been talking about this for years, you know, see containers being so popular. Now, Kubernetes becoming that layer of bringing people to bringing things together. It's the old adage that Amazon used to coin and Andy Jassy, they do the undifferentiated, heavy lifting. A lot of that's now that's now cloud operations. Underneath is infrastructure's code to the developer, right. That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake. Which is why there's no objections probably. >> Right absolutely. >> What's the choice. What do you even shop? >> Yeah. There's nothing to shop around. >> Yeah, exactly. And then we've, that is really icing on the cake that we've, we've been building for quite some time. There is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Times are tough right now, supply chain issues, all that stuff, we've talked about it. But at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We get a great use case, the storage team, they were provisioning with containers. Storage is a service, instantly. We're seeing with you guys with VMware, your customers bringing in a lot of that into the mix as well. I got to ask. Cause every event we talk about AI and machine learning, automation and DevOps are now infiltrating in with the Ci/CD pipeline security and data become a big conversation. >> Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on green. I've been a big fan from day one. Now it's got maturity on it. I know it's going to get a lot more headroom to do there. It's still a lot of work to do, but directionally it's pretty accurate. It's going to be going to be success. There's still concerns about security, the data layer. That's agnostic of environment, private cloud hybrid, public and edge. So that's important and security has got a huge service area. These are a work in progress. How do you guys view those? >> I think you've just hit the nail on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here. And I don't think anybody is really emerging as a true leader. It's just a continuation of trying to get that right. Because it is what is the most important thing to our customers. And the industry is really sort of catching up to that. >> And when you start talking about privacy and when you... It's not just about company information, it's about individuals information. It's about information that if exposed actually could have real impact on people. So it's more than just an IT problem. It is actually, and from HP's perspective, security starts from when we're picking our suppliers for our components. There are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing, my golf swinging. I slice, right lik you wouldn't believe. But when I go to the golf pros, they start me back at the mechanics, the foundational pieces, here's where the problems are and start working on that. So my view is our view is if your infrastructure is not secure, you're going to have troubles with security as you go further up. >> Stay in the sandbox, so to speak, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick. Because you mentioned supply chain on the hardware side, you're seeing a lot of open source and supply chain in software trusted software. How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah, security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions. And we're looking at it from the infrastructure all the way up to the actual service itself. And that's the beauty of having something like HP GreenLake, we don't have to pick is the infrastructure or the middle where, or the top of stack application, we can look at all of it. Yeah. It's all of it. That matters. >> Question on the ecosystem posture, so, I remember when HP was one company and then the GSIs were a little weird with HP because of EDS, you know, had data protector. So we weren't really chatting up Veeam at the time. And as soon as the split happened, ecosystem exploded. Now you have a situation where your Broadcom is acquiring VMware. You guys big Broadcom customer, has your attitude changed or has it not because, oh, we meet where the customers are. You've always said that, but have you have leaned in more? I mean, culturally is HPE, HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. >> So I would some first of all, VMware and HPE, we've got a variety of different partners, we always have. If well, before any Broadcom announcement came along. We've been working with a variety of partners and that hasn't changed and that hasn't changed. And if your question is, has our posture toward VMware changed that all the answers absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware, and we're going to continue to work with VMware and partner with you. >> And of course we had to spin out ourselves in November of last year, which I worked on the whole Dell, whole Dell piece. >> But, you still had the same chairman. >> But since then, I think what's really become very apparent. And it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast. And we need to rely on each other to help us solve the customer problems that are out there. So there's a willingness to overlook some things that in the past may have been barriers. >> But it's important to note also that it's not that we have not had history, right? Over... We've got over 200,000 customers join. >> Hundreds of millions of dollars of business. >> 100,000, over 10,000 or a 100,000 channel partners that we have in common. Numerous , numerous... >> And independent of the whole Broadcom overhang there, there's the ecosystem floor. Yeah, the expo floor. I mean, it's vibrant. I mean, there's clearly a wave coming. Ricky, we talked about this briefly at HPE Discover. I want to get an update from your perspective, both of you, if you don't mind weighing in on this, clearly the wave we calling it super cloud. Cause it's not just, multi-cloud completely different looking successes, >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs. I think every vertical will have its own power law of cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX has to go to in fund statement. CapEx goes to thanks for the cloud. All that's good, but there's a wave coming and we're trying to identify it. What do you guys see as this wave cause beyond multi-cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece? That's a whole nother story and that's what everyone's fighting for. But everyone out in that ecosystem, it's a big wave coming. They got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think the multi-cloud is obviously at the epicenter. If you look at the results that are coming in, a lot of our customers, this is what's leading the discussion. And now we're in a position where we've brought many companies over the last few years, they're starting to come to fruition. They're starting to play a role in how we're moving forward. Some of those are a bit more applicable to the commercial space. We're finding commercial customers are never bought from us before never hundreds and hundreds are coming through our partner networks every single quarter. So brand new to VMware, the trick then is how do you nurture them? How do you encourage them? >> So new logos are coming in? >> New logos are coming in all the time, all the time from across the ecosystem. It's not just the OEMs, it's all the way back. >> So the ecosystem's back for VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that partner connect 2.0. When I talk to you about multi-cloud and multicardt the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, etc. And the use of other partners to do other services deployment or this stuff is becoming prevalent. Then you've got the distributors that I talked about were there. Then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and debt, it's a points based system we've put in place now. >> It's a big pie. That's developing the market's getting bigger. >> It's getting so much bigger and then help. >> You agree obviously with that. >> Yeah, absolutely, in fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question now it's everything. Yes. And what I think that what we're seeing in the ecosystem is people are finding the spots where they're going play. Am I going to be on the edge? Am I going to be an analytics play? Am I going to be a cloud transition play? A lot of players are now emerging and saying, we now have a place, a part to play. And having that industry view, not just of a commercial customer at that level, but the two of us are looking at Telco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into it? >> ... is lifting, everyone can see their position there. >> We're now being asked for simplicity and talk to me about partner profitability. How do I know where to focus my efforts? Am I've spread too thin? And my advice that a partner ecosystem out there is, Hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is good example of that. >> Sounds like composability to me, but not to go back guys. Thanks for coming on. I think there's a big market there. I think the fog is lifted, people seeing their spot there's value there. Value creation equals reward. Yeah. Simplicity, ease of use. This is the new normal great job. Thanks for coming on sharing. Okay. Back live coverage after this short break with more day one coverage here from the blue set here in Moscone.

>>Hey everyone. It's the cube live at VMware Explorer, 2022. We're at Mascone center and lovely, beautiful San Francisco. Dave Volante is with me, Lisa Martin. Beautiful weather here today. >>It is beautiful. I couldn't have missed this one because you know, the orange and the pure and VA right. Are history together. I had a, I had a switch sets. You >>Did. You were gonna have FOMO without a guest. Who's back. One of our longtime alumni V Stewart, VP of global technology alliances partners at pure storage one. It's great to have you back on the program, seeing you in 3d >>It's. It's so great to be here and we get a guest interviewer. So this >>Is >>Fantastic. Fly by. Fantastic. >>So talk to us, what's going on at pure. It's been a while since we had a chance to talk, >>Right. Well, well, besides the fact that it's great to see in person and to be back at a conference and see all of our customers, partners and prospects, you know, pure storage has just been on a tear just for your audience. Many, those who don't follow pure, right? We finished our last year with our Q4 being 41% year over year growth. And in the year, just under 2.2 billion, and then we come outta the gates this year, close our Q1 at 50% year over year, quarter quarterly growth. Have you ever seen a storage company or an infrastructure partner at 2 billion grow at that rate? >>Well, the thing was, was striking was that the acceleration of growth, because, you know, I mean, COVID, there were supply chain issues and you know, you saw that. And then, and we've seen this before at cloud companies, we see actually AWS as accelerated growth. So this is my premise here is you guys are actually becoming a cloud-like company building on top of, of infrastructure going from on-prem to cloud. But we're gonna talk about that. >>This is very much that super cloud premise. Well, >>It is. And, and, but I think it's it's one of the characteristics is you can actually, it, you know, we used to see companies, they go, they'd come out of escape velocity, and then they'd they'd growth would slow. I used to be at IDC. We'd see it. We'd see it. Okay. Down then it'd be single digits. You guys are seeing the opposite. >>It's it's not just our bookings. And by the way, I would be remiss if I didn't remind your audience that our second quarter earnings call is tomorrow. So we'll see how this philosophy and momentum keeps going. See, right. But besides the growth, right? All the external metrics around our business are increasing as well. So our net promoter score increased right at 85.2. We are the gold standard, not just in storage in infrastructure period. Like there's no one close to us, >>85. I mean, that's like, that's a, like apple, >>It's higher than apple than apple. It's apple higher than Tesla. It's higher than AWS shopping. And if you look in like our review of our products, flash rate is the leader in the gardener magic quadrant for, for storage array. It's been there for eight years. Port works is the leader in the GIGO OME radar for native Kubernetes storage three years in a row. Like just, it's great to be at a company that's hitting on all cylinders. You know, particularly at a time that's just got so much change going on in our >>Industry. Yeah. Tremendous amount of change. Talk about the, the VMware partnership from a momentum of velocity perspective what's going on there. And some of the things that you're accelerating. >>Absolutely. So VMware is, is the, the oldest or the longest tenured technology partner that we've had. I'm about to start my 10th year at pure storage. It feels like it was yesterday. When I joined, they were a, an Alliance partner before I joined. And so not to make that about me, but that's just like we built some of the key aspects around our first product, the flash array with VMware workloads in mind. And so we are a, a co-development partner. We've worked with them on a number of projects over years of, of late things that are top of mind is like the evolution of vials, the NV support for NVMe over fabric storage, more recently SRM support for automating Dr. With Viv a deployments, you know, and, and, and then our work around VMware ex extends to not just with VMware, they're really the catalyst for a lot of three way partnerships. So partnerships into our investments in data protection partners. Well, you gotta support V ADP for backing up the VMware space, our partnership within Nvidia, well, you gotta support NVA. I, so they can accelerate bringing those technologies into the enterprise. And so it's it, it's not just a, a, a, you know, unilateral partnership. It's a bidirectional piece because for a lot of customers, VMware's kind of like a touchpoint for managing the infrastructure. >>So how is that changing? Because you you've mentioned, you know, all the, the, the previous days, it was like, okay, let's get, make storage work. Let's do the integration. Let's do the hard work. It was kind of a race for the engineering teams to get there. All the storage companies would compete. And it was actually really good for the industry. Yeah, yeah. Right. Because it, it went from, you know, really complex, to much, much simpler. And now with the port works acquisition, it brings you closer to the whole DevOps scene. And you're seeing now VMware it's with its multi-cloud initiatives, really focusing on, you know, the applications and that, and that layer. So how does that dynamic evolve in terms of the partnership and, and where the focus is? >>So there's always in the last decade or so, right. There's always been some amount of overlap or competing with your partnerships, right. Something in their portfolios they're expanding maybe, or you expand you encroach on them. I think, I think two parts to how I would want to answer your question. The retrospective look V VMware is our number one ISV from a, a partner that we, we turn transactions with. The booking's growth that I shared with you, you could almost say is a direct reflection of how we're growing within that, that VMware marketplace. We are bringing a platform that I think customers feel services their workloads well today and gives them the flexibility of what might come in their cloud tomorrow. So you look at programs like our evergreen one subscription model, where you can deploy a consumption based subscription model. So very cloud-like only pay for what you use on-prem and turn that dial as you need to dial it into a, a cloud or, or multiple clouds. >>That's just one example. Looking forward, look, port works is probably the platform that VMware should have bought because when you look at today's story, right, when kit Culbert shared a, a cross cloud services, right, it was, it was the modern version of what VMware used to say, which was, here's a software defined data center. We're gonna standardize all your dissimilar hardware, another saying software defined management to standardize all your dissimilar clouds. We do that for Kubernetes. We talk about accelerating customers' adoption of Kubernetes by, by allowing developers, just to turn on an enable features, be its security, backup high availability, but we don't do it mono in a, you know, in a, in a homogeneous environment, we allow customers to do it heterogeneously so I can deploy VMware Tansu and connect it to Amazon EKS. I can switch one of those over to red head OpenShift, non disruptively, if I need to. >>Right? So as customers are going on this journey, particularly the enterprise customers, and they're not sure where they're going, we're giving them a platform that standardizes where they want to go. On-prem in the cloud and anywhere in between. And what's really interesting is our latest feature within the port works portfolio is called port works data services, and allows customers to deploy databases on demand. Like, install it, download the binaries. You have a cus there, you got a database, you got a database. You want Cassandra, you want Mongo, right? Yeah. You know, and, and for a lot of enterprise customers, who've kind of not, not know where to don't know where to start with port works. We found that to be a great place where they're like, I have this need side of my infrastructure. You can help me reduce cost time. Right. And deliver databases to teams. And that's how they kick off their Tansu journey. For example. >>It's interesting. So port works was the enabler you mentioned maybe VMware should above. Of course they had to get the value out of, out of pivotal. >>Understood. >>So, okay. Okay. So that, so how subsequent to the port works acquisition, how has it changed the way that you guys think about storage and how your customers are actually deploying and managing storage? >>Sure. So you touched base earlier on what was really great about the cloud and VMware was this evolution of simplifying storage technologies, usually operational functions, right? Making things simpler, more API driven, right. So they could be automated. I think what we're seeing customers do to today is first off, there's a tremendous rise in everyone wanting to do every customer, not every customer, a large portion of the customer bases, wanting to acquire technology on as OPEX. And it, I think it's really driven by like eliminate technical debt. I sign a short term agreement, our short, our shortest commitment's nine months. If we don't deliver around what we say, you walk away from us in nine months. Like you, you couldn't do that historically. Furthermore, I think customers are looking for the flexibility for our subscriptions, you know, more from between on-prem and cloud, as I shared earlier, is, is been a, a, a big driver in that space. >>And, and lastly, I would, would probably touch on our environmental and sustainability efforts. You saw this morning, Ragu in the keynote touch on what was it? Zero carbon consumption initiative, or ZCI my apologies to the veer folks. If I missed VO, you know, we've had, we've had sustainability into our products since day one. I don't know if you saw our inaugural ESG report that came out about 60 days ago, but the bottom line is, is, is our portfolio reduces the, the power directly consumed by storage race by up to 80%. And another aspect to look at is that 97% of all of the products that we sold in the last six years are still in the market today. They're not being put into, you know, into, to recycle bins and whatnot, pure storage's goal by the end of this decade is to further drive the efficiency of our platforms by another 66%. And so, you know, it's an ambitious goal, but we believe it's >>Important. Yeah. I was at HQ earlier this month, so I actually did see it. So, >>Yeah. And where is sustainability from a differentiation perspective, but also from a customer requirements perspective, I'm talking to a lot of customers that are putting that requirement when they're doing RFPs and whatnot on the vendors. >>I think we would like to all, and this is a free form VO comment here. So my apologies, but I think we'd all like to, to believe that we can reduce the energy consumption in the planet through these efforts. And in some ways maybe we can, what I fear in the technology space that I think we've all and, and many of your viewers have seen is there's always more tomorrow, right? There's more apps, more vendors, more offerings, more, more, more data to store. And so I think it's really just an imperative is you've gotta continue to be able to provide more services or store more data in this in yesterday's footprint tomorrow. A and part of the way they get to is through a sustainability effort, whether it's in chip design, you know, storage technologies, et cetera. And, and unfortunately it's, it's, it's something that organizations need to adopt today. And, and we've had a number of wins where customers have said, I thought I had to evacuate this data center. Your technology comes in and now it buys me more years of time in this in infrastructure. And so it can be very strategic to a lot of vendors who think their only option is like data center evacuation. >>So I don't want to, I, I don't wanna set you up, but I do want to have the super cloud conversation. And so let's go, and you, can you, you been around a long time, your, your technical, or you're more technical than I am, so we can at least sort of try to figure it out together when I first saw you guys. I think Lisa, so you and I were at, was it, when did you announce a block storage for AWS? The, was that 2019 >>Cloud block store? I believe block four years >>Ago. Okay. So 20 18, 20 18, 20 18. Okay. So we were there at, at accelerate at accelerate and I said, oh, that's interesting. So basically if I, if I go back there, it was, it was a hybrid model. You, you connecting your on-prem, you were, you were using, I think, priority E C two, you know, infrastructure to get high performance and connecting the two. And it was a singular experience yeah. Between on-prem and AWS in a pure customer saw pure. Right. Okay. So that was the first time I started to think about Supercloud. I mean, I think thought about it in different forms years ago, but that was the first actual instantiation. So my, my I'm interested in how that's evolved, how it's evolving, how it's going across clouds. Can you talk just conceptually about how that architecture is, is morphing? >>Sure. I just to set the expectations appropriately, right? We've got, we've got a lot of engineering work that that's going on right now. There's a bunch of stuff that I would love to share with you that I feel is right around the corner. And so hopefully we'll get across the line where we're at today, where we're at today. So the connective DNA of, of flash array, OnPrem cloud block store in the cloud, we can set up for, for, you know, what we call active. Dr. So, so again, customers are looking at these arrays is a, is a, is a pair that allows workloads to be put into the, put into the cloud or, or transferred between the cloud. That's kind of like your basic building, you know, blocking tackling 1 0 1. Like what do I do for Dr. Example, right? Or, or gimme an easy button to, to evacuate a data center where we've seen a, a lot of growth is around cloud block store and cloud block store really was released as like a software version of our hardware, Ray on-prem and it's been, and, and it hasn't been making the news, but it's been continually evolving. >>And so today the way you would look at cloud block store is, is really bringing enterprise data services to like EBS for, for AWS customers or to like, you know, is Azure premium disc for Azure users. And what do I mean by enterprise data services? It's, it's the, the, the way that large scale applications are managed, on-prem not just their performance and their avail availability considerations. How do I stage the, the development team, the sandbox team before they patch? You know, what's my cyber protection, not just data protection, how, how am I protected from a cyber hack? We bring all those capabilities to those storage platforms. And the, the best result is because of our data reduction technologies, which was critical in reducing the cost of flash 10 years ago, reduces the cost of the cloud by 50% or more and pays for the, for pays more than pays for our software of cloud block store to enable these enterprise data services, to give all these rapid capabilities like instant database, clones, instant, you know, recovery from cyber tech, things of that nature. >>Do customers. We heard today that cloud chaos are, are customers saying so, okay, you can run an Azure, you can run an AWS fine. Are customers saying, Hey, we want to connect those islands. Are you hearing that from customers or is it still sort of still too early? >>I think it's still too early. It doesn't mean we don't have customers who are very much in let's buy, let me buy some software that will monitor the price of my cloud. And I might move stuff around, but there's also a cost to moving, right? The, the egress charges can add up, particularly if you're at scale. So I don't know how much I seen. And even through the cloud days, how much I saw the, the notion of workloads moving, like kind of in the early days, like VMO, we thought there might be like a, is there gonna be a fall of the moon computing, you know, surge here, like, you know, have your workload run where power costs are lower. We didn't really see that coming to fruition. So I think there is a, is a desire for customers to have standardization because they gain the benefits of that from an operational perspective. Right. Whether they put that in motion to move workloads back and forth. I think >>So let's say, let's say to be determined, let let's say they let's say they don't move them because your point you knows too expensive, but, but, but, but you just, I think touched on it is they do want some kind of standard in terms of the workflow. Yep. You you're saying you're, you're starting to see demand >>Standard operating practices. Okay. >>Yeah. SOPs. And if they're, if they're big into pure, why wouldn't they want that? If assuming they have, you know, multiple clouds, which a lot of customers do. >>I, I, I I'll assure with you one thing that the going back to like basic primitives and I touched it touched on it a minute ago with data reduction. You have customers look at their, their storage bills in the cloud and say, we're gonna reduce that by half or more. You have a conversation >>Because they can bring your stack yeah. Into the cloud. And it's got more maturity than what you'd find from a cloud company, cloud >>Vendor. Yeah. Just data. Reduction's not part of block storage today in the cloud. So we've got an advantage there that we, we bring to bear. Yeah. >>So here we are at, at VMware Explorer, the first one of this name, and I love the theme, the center of the multi-cloud universe. Doesn't that sound like a Marvel movie. I feel like there should be superheroes walking around here. At some point >>We got Mr. Fantastic. Right here. We do >>Gone for, I dunno it >>Is. But a lot of, a lot of news this morning in the keynote, you were in the keynote, what are some of the things that you're hearing from VMware and what excites you about this continued evolution of the partnership with pure >>Yeah. Great point. So I, I think I touched on the, the two things that really caught my attention. Obviously, you know, we've got a lot of investment in V realize it was now kind of rebranded as ay, that, you know, I think we're really eager to see if we can help drive that consumption a bit higher, cuz we believe that plays into our favor as a vendor. We've we've we have over a hundred templates for the area platform right now to, you know, automation templates, whether it's, you know, levels set your platform, you know, automatically move workloads, deploy on demand. Like just so, so again, I think the focus there is very exciting for us, obviously when they've got a new release, like vSphere eight, that's gonna drive a lot of channel behaviors. So we've gotta get our, you know, we're a hundred percent channel company. And so we've gotta go get our channel ready because with about half of the updates of vSphere is, is hardware refresh. And so, you know, we've gotta be, be prepared for that. So, you know, some of the excitements about just being how to find more points in the market to do more business together. >>All right. Exciting cover the grounds. Right. I mean, so, okay. You guys announce earnings tomorrow, so we can't obviously quiet period, but of course you're not gonna divulge that anyway. So we'll be looking for that. What other catalysts are out there that we should be paying attention to? You know, we got, we got reinvent coming up in yep. In November, you guys are obviously gonna be there in, in a big way. Accelerate was back this year. How was accelerate >>Accelerate in was in Los Angeles this year? Mm. We had great weather. It was a phenomenal venue, great event, great partner event to kick it off. We happened to, to share the facility with the president and a bunch of international delegates. So that did make for a little bit of some logistic securities. >>It was like the summit of the Americas. I, I believe I'm recalling that correctly, but it was fantastic. Right. You, you get, you get to bring the customers out. You get to put a bunch of the engineers on display for the products that we're building. You know, one of the high, you know, two of the highlights there were, we, we announced our new flash blade S so, you know, higher, more performant, more scalable version of our, our scale and object and file platform with that. We also announced the, the next generation of our a I R I, which is our AI ready, AI ready infrastructure within video. So think of it like converged infrastructure for AI workloads. We're seeing tremendous growth in that unstructured space. And so, you know, we obviously pure was funded around block storage, a lot around virtual machines. The data growth is in unstructured, right? >>We're just seeing, we're seeing, you know, just tons of machine learning, you know, opportunities, a lot of opportunities, whether we're looking at health, life sciences, genome sequencing, medical imaging, we're seeing a lot of, of velocity in the federal space. You know, things, I can't talk about a lot of velocity in the automotive space. And so just, you know, from a completeness of platform, you know, flat flash blade is, is really addressing a need really kind of changing the market from NAS as like tier two storage or object is tier three to like both as a tier one performance candidate. And now you see applications that are supporting running on top of object, right? All your analytics platforms are on an object today, Absolut. So it's a, it's a whole new world. >>Awesome. And Pierce also what I see on the website, a tech Fest going on, you guys are gonna be in Seoul, Mexico city in Singapore in the next week alone. So customers get the chance to be able to in person talk with those execs once again. >>Yeah. We've been doing the accelerate tech tech fests, sorry about that around the globe. And if one of those align with your schedule, or you can free your schedule to join us, I would encourage you. The whole list of events dates are on pure storage.com. >>I'm looking at it right now. Vaon thank you so much for joining Dave and me. I got to sit between two dapper dudes, great conversation about what's going on at pure pure with VMware better together and the, and the CATA, the cat catalysis that's going on on both sides. I think that's an actual word I should. Now I have a degree biology for Vaughn Stewart and Dave Valante I'm Lisa Martin. You're watching the cube live from VMware Explorer, 22. We'll be right back with our next guest. So keep it here.

>>Okay, welcome back everyone. There's the cubes coverage of VMware Explorer, 22 formerly world. We've been here since 2010 and world 2010 to now it's 2022. And it's VMware Explorer. We're here at the CEO, regular writer. Welcome back to the cube. Great to see you in person. >>Yeah. Great to be here in person, >>Dave and I are, are proud to say that we've been to 12 straight years of covering VMware's annual conference. And thank you. We've seen the change in the growth over time and you know, it's kind of, I won't say pinch me moment, but it's more of a moment of there's the VMware that's grown into the cloud after your famous deal with Andy jazzy in 2016, we've been watching what has been a real sea change and VMware since taking that legacy core business and straightening out the cloud strategy in 2016, and then since then an acceleration of, of cloud native, like direction under your leadership at VMware. Now you're the CEO take us through that because this is where we are right now. We are here at the pinnacle of VMware 2.0 or cloud native VMware, as you point out on your keynote, take us through that history real quick. Cuz I think it's important to know that you've been the architect of a lot of this change and it's it's working. >>Yeah, definitely. We are super excited because like I said, it's working, the history is pretty simple. I mean we tried running our own cloud cloud air. We cloud air didn't work so well. Right. And then at that time, customers really gave us strong feedback that the hybrid they wanted was a Amazon together. Right. And so that's what we went back and did and the andjay announcement, et cetera. And then subsequently as we were continue to build it out, I mean, once that happened, we were able to go work with the Satia and Microsoft and others to get the thing built out all over. Then the next question was okay, Hey, that's great for the workloads that are running on vSphere. What's the story for workloads that are gonna be cloud native and benefit a lot from being cloud native. So that's when we went the Tansu route and the Kubernetes route, we did a couple of acquisitions and then we started that started paying off now with the Tansu portfolio. And last but not the least is once customers have this distributed portfolio now, right. Increasingly everything is becoming multi-cloud. How do you manage and connect and secure. So that's what you start seeing that you saw the management announcement, networking and security and everything else is cooking. And you'll see more stuff there. >>Yeah know, we've been talking about super cloud. It's kinda like a multi-cloud on steroids kind a little bit different pivot of it. And we're seeing some use cases. >>No, no, it's, it's a very great, it's a, it's pretty close to what we talk about. >>Awesome. I mean, and we're seeing this kind of alignment in the industry. It's kind of open, but I have to ask you, when did you, you have the moment where you said multicloud is the game changer moment. When did you have, because you guys had hybrid, which is really early as well. When was the Raghu? When did you have the moment where you said, Hey, multicloud is what's happening. That's we're doubling down on that go. >>I mean, if you think about the evolution of the cloud players, right. Microsoft really started picking up around the 2018 timeframe. I mean, I'm talking about Azure, right? >>In a big way. >>Yeah. In a big way. Right. When that happened and then Google got really serious, it became pretty clear that this was gonna be looking more like the old database market than it looked like a single player cloud market. Right. Equally sticky, but very strong players all with lots of IP creation capability. So that's when we said, okay, from a supplier side, this is gonna become multi. And from a customer side that has always been their desire. Right. Which is, Hey, I don't want to get locked into anybody. I want to do multiple things. And the cloud vendors also started leveraging that OnPrem. Microsoft said, Hey, if you're a windows customer, your licensing is gonna be better off if you go to Azure. Right. Oracle did the same thing. So it just became very clear. >>I am, I have gone make you laugh. I always go back to the software mainframe because I, I think you were here. Right. I mean, you're, you're almost 20 years in. Yeah. And I, the reason I appreciate that is because, well, that's technically very challenging. How do you make virtualization overhead virtually non-existent how do you run any workload? Yeah. How do you recover from, I mean, that's was not trivial. Yeah. Okay. So what's the technical, you know, analog today, the real technical challenge. When you think about cross cloud services. >>Yeah. I mean, I think it's different for each of these layers, right? So as I was alluding to for management, I mean, you can go each one of them by themselves, there is one way of Mo doing multi-cloud, which is multiple clouds. Right. You could say, look, I'm gonna build a great product for AWS. And then I'm gonna build a great product for Azure. I'm gonna build a great product for Google. That's not what aria is. Aria is a true multi-cloud, which means it pulls data in from multiple places. Right? So there are two or three, there are three things that aria has done. That's I think is super interesting. One is they're not trying to take all the data and bring it in. They're trying to federate the data sources. And secondly, they're doing it in real time and they're able to construct this graph of a customer's cloud resources. >>Right. So to keep the graph constructed and pulling data, federating data, I think that's a very interesting concept. The second thing that, like I said is it's a real time because in the cloud, a container might come and go like that. Like that is a second technical challenge. The third it's not as much a technical challenge, but I really like what they have done for the interface they've used GraphQL. Right? So it's not about if you remember in the old world, people talk about single pan or glass, et cetera. No, this is nothing to do with pan or glass. This is a data model. That's a graph and a query language that's suited for that. So you can literally think of whatever you wanna write. You can write and express it in GraphQL and pull all sorts of management applications. You can say, Hey, I can look at cost. I can look at metrics. I can look at whatever it is. It's not five different types of applications. It's one, that's what I think had to do it at scale is the other problem. And, and >>The, the technical enable there is just it's good software. It's a protocol. It's >>No, no, it's, it's, it's it's software. It's a data model. And it's the Federation architecture that they've got, which is open. Right. You can pull in data from Datadog, just as well as from >>Pretty >>Much anything data from VR op we don't care. Right? >>Yeah. Yeah. So rego, I have to ask you, I'm glad you like the Supercloud cuz you know, we, we think multi-cloud still early, but coming fast. I mean, everyone has multiple clouds, but spanning this idea of spanning across has interesting sequences. Do you data, do you do computer both and a lot of good things happening. Kubernetes been containers, all that good stuff. Okay. How do you see the first rev of multi-cloud evolving? Like is it what happens? What's the sequence, what's the order of operations for a client standpoint? Customer standpoint of, of multicloud or Supercloud because we think we're seeing it as a refactoring of something like snowflake, they're a data base, they're a data warehouse on the cloud. They, they say data cloud they'd they like they'll tell us no, you, we're not a data. We're not a data warehouse. We're data cloud. Okay. You're a data warehouse refactored for the CapEx from Amazon and cooler, newer things. Yeah, yeah, yeah. That's a behavior change. Yeah. But it's still a data warehouse. Yeah. How do you see this multi-cloud environment? Refactoring? Is there something that you see that might be different? That's the same if you know what I'm saying? Like what's what, what's the ne the new thing that's happening with multi-cloud, that's different than just saying I'm I'm doing SAS on the cloud. >>Yeah. So I would say, I would point to a, a couple of things that are different. Firstly, my, the answer depends on which category you are in. Like the category that snowflake is in is very different than Kubernetes or >>Something or Mongo DB, right? >>Yeah. Or Mongo DB. So, so it is not appropriate to talk about one multi-cloud approach across data and compute and so, so on and so forth. So I'll talk about the spaces that we play. Right. So step one, for most customers is two application architectures, right? The cloud native architecture and an enterprise native architecture and tying that together either through data or through networks or through et cetera. So that's where most of the customers are. Right. And then I would say step two is to bring these things together in a more, in a closer fashion and that's where we are going. And that is why you saw the cloud universal announcement and that's already, you've seen the Tansu announcement, et cetera. So it's really, the step one was two distinct clouds. That is just two separate islands. >>So the other thing that we did, that's really what my, the other thing that I'd like to get to your reaction on, cause this is great. You're like a masterclass in the cube here. Yeah, totally is. We see customers becoming super clouds because they're getting the benefit of, of VMware, AWS. And so if I'm like a media company or insurance company, if I have scale, if I continue to invest in, in cloud native development, I do all these things. I'm gonna have a da data scale advantage, possibly agile, which means I can build apps and functionality very quick for customers. I might become my own cloud within the vertical. Exactly. And so I could then service other people in the insurance vertical if I'm the insurance company with my technology and create a separate power curve that never existed before. Cause the CapEx is off the table, it's operating expense. Yep. That runs into the income statement. Yep. This is a fundamental business model shift and an advantage of this kind of scenario. >>And that's why I don't think snowflakes, >>What's your reaction to that? Cuz that's something that, that is not really, talk's highly nuanced and situational. But if Goldman Sachs builds the biggest cloud on the planet for financial service for their own benefit, why wouldn't they >>Exactly. >>And they're >>Gonna build it. They sort of hinted at it that when they were up on stage on AWS, right. That is just their first big step. I'm pretty sure over time they would be using other clouds. Think >>They already are on >>Prem. Yeah. On prem. Exactly. They're using VMware technology there. Right? I mean think about it, AWS. I don't know how many billions of dollars they're spending on AWS R and D Microsoft is doing the same thing. Google's doing the same thing we are doing. Not as much as them that you're doing oral chair. Yeah. If you are a CIO, you would be insane not to take advantage of all of this IP that's getting created and say, look, I'm just gonna bet on one. Doesn't make any sense. Right. So that's what you're seeing. And then >>I think >>The really smart companies, like you talked about would say, look, I will do something for my industry that uses these underlying clouds as the substrate, but encapsulates my IP and my operating model that I then offer to other >>Partners. Yeah. And their incentive for differentiation is scale. Yeah. And capability. And that's a super cloud. That's a, or would be say it environment. >>Yeah. But this is why this, >>It seems like the same >>Game, but >>This, I mean, I think it environment is different than >>Well, I mean it advantage to help the business, the old day service, you >>Said snowflake guys out the marketing guys. So you, >>You said snowflake data warehouse. See, I don't think it's in data warehouse. It's not, that's like saying, you >>Know, I, over >>VMware is a virtualization company or service now is a help desk tool. I, this is the change. Yes. That's occurring. Yes. And that you're enabling. So take the Goldman Sachs example. They're gonna run OnPrem. They're gonna use your infrastructure to do selfer. They're gonna build on AWS CapEx. They're gonna go across clouds and they're gonna need some multi-cloud services. And that's your opportunity. >>Exactly. That's that's really, when you, in the keynote, I talked about cloud universal. Right? So think of a future where we can go to a customer and say, Mr. Customer buy thousand scores, a hundred thousand cores, whatever capacity you can use it, any which way you want on any application platform. Right. And it could be OnPrem. It could be in the cloud, in the cloud of their choice in multiple clouds. And this thing can be fungible and they can tie it to the right services. If they like SageMaker they could tie it to Sage or Aurora. They could tie it to Aurora, cetera, et cetera. So I think that's really the foundation that we are setting. Well, I think, I >>Mean, you're building a cloud across clouds. I mean, that's the way I look at it. And, and that's why it's, to me, the, the DPU announcement, the project Monterey coming to fruition is so important. Yeah. Because if you don't have that, if you're not on that new Silicon curve yep. You're gonna be left behind. Oh, >>Absolutely. It allows us to build things that you would not otherwise be able to do, >>Not to pat ourselves on the back Ragu. But we, in what, 2013 day we said, feel >>Free. >>We, we said with Lou Tucker when OpenStack was crashing. Yeah. Yeah. And then Kubernetes was just a paper. We said, this could be the interoperability layer. Yeah. You got it. And you could have inter clouding cuz there was no clouding. I was gonna riff on inter networking. But if you remember inter networking during the OSI model, TCP and IP were hardened after the physical data link layer was taken care of. So that enabled an entire new industry that was open, open interconnect. Right. So we were saying inter clouding. So what you're kind of getting at with cross cloud is you're kind of creating this routing model if you will. Not necessarily routing, but like connection inter clouding, we called it. I think it's kinda a terrible name. >>What you said about Kubernetes is super critical. It is turning out to be the infrastructure API so long. It has been an infrastructure API for a certain cluster. Right. But if you think about what we said about VSE eight with VSE eight Kubernetes becomes the data center API. Now we sort of glossed over the point of the keynote, but you could do operations storage, anything that you can do on vSphere, you can do using a Kubernetes API. Yeah. And of course you can do all the containers in the Kubernetes clusters and et cetera, is what you could always do. Now you could do that on a VMware environment. OnPrem, you could do that on EKS. Now Kubernetes has become the standard programming model for infrastructure across. It >>Was the great equalizer. Yeah. You, we used to say Amazon turned the data center through an API. It turns, turns of like a lot of APIs and a lot of complexity. Right. And Kubernetes changed. >>Well, the role, the role of defacto standards played a lot into the T C P I P revolution before it became a standard standard. What the question Raghu, as you look at, we had submit on earlier, we had tutorial on as well. What's the disruptive enabler from a defacto. What in your mind, what should, because Kubernetes became kind of defacto, even though it was in the CNCF and in an open source open, it wasn't really standard standard. There's no like standards, body, but what de facto thing has to happen in your mind's eye around making inter clouding or connecting clouds in a, in a way that's gonna create extensibility and growth. What do you see as a de facto thing that the industry should rally around? Obviously Kubernetes is one, is there something else that you see that's important for in an open way that the industry can discuss and, and get behind? >>Yeah. I mean, there are things like identity, right? Which are pretty critical. There is connectivity and networking. So these are all things that the industry can rally around. Right. And that goes along with any modern application infrastructure. So I would say those are the building blocks that need to happen on the data side. Of course there are so many choices as well. So >>How about, you know, security? I think about, you know, when after stuck net, the, the whole industry said, Hey, we have to do a better job of collaborating. And then when you said identity, it just sort of struck me. But then a lot of people tried to sort of monetize private reporting and things like that. So you do you see a movement within the technology industry to do a better job of collaborating to, to solve the acute, you know, security problems? >>Yeah. I think the customer pressure and government pressure right. Causes that way. Yeah. Even now, even in our current universe, you see, there is a lot of behind the scenes collaboration amongst the security teams of all of the tech companies that is not widely seen or known. Right. For example, my CISO knows the AWS CSO or the Microsoft CSO and they all talk and they share the right information about vulnerability attacks and so on and so forth. So there's already a certain amount of collaboration that's happening and that'll only increase. Do, >>Do you, you know, I was somewhat surprised. I didn't hear more in your face about security would, is that just because you had such a strong multi-cloud message that you wanted to get, get across, cuz your security story is very strong and deep. When you get into the DPU side of things, the, you know, the separation of resources and the encryption and I'll end to end >>I'm well, we have a phenomenal security story. Yeah. Yeah. Tell security story and yes. I mean I'll need guilty to the fact that in the keynote you have yeah, yeah, sure time. But what we are doing with NSX and you will hear about some NSX projects as you, if you have time to go to some of the, the sessions. Yeah. There's one called project, not star. Another is called project Watchman or watch, I think it's called, we're all dealing with this. That is gonna strengthen the security story even more. Yeah. >>We think security and data is gonna be a big part of it. Right. As CEO, I have to ask you now that you're the CEO, first of all, I'd love to talk about product with you cuz you're yeah. Yeah. We just great conversation. We want to kind of read thet leaves and ask pointed questions cuz we're putting the puzzle together in real time here with the audience. But as CEO, now you have a lot of discussions around the business. You, the Broadcom thing happening, you got the rename here, you got multi-cloud all good stuff happening. Dave and I were chatting before we came on this morning around the marketplace, around financial valuations and EBIDA numbers. When you have so much strategic Goodwill and investment in the oven right now with the, with the investments in cloud native multi-year investments on a trajectory, you got economies of scale there. >>It's just now coming out to be harvest and more behind it. Yeah. As you come into the Broadcom and or the new world wave that's coming, how do you talk about that value? Cuz you can't really put a number on it yet because there's no customers on it. I mean some customers, but you can't probably some for form. It's not like sales numbers. Yeah. Yeah. How do you make the argument to the PE type folks out there? Like EBIDA and then all the strategic value. What's the, what's the conversation like if you can share any, I know it's obviously public company, all the things going down, but like how do you talk about strategic value to numbers folks? >>Yeah. I mean, we are not talking to PE guys at all. Right. I mean the only conversation we have is helping Broadcom with >>Yeah. But, but number people who are looking at the number, EBIDA kind of, >>Yeah. I mean, you'd be surprised if, for, for example, even with Broadcom, they look at the business holistically as what are the prospects of this business becoming a franchise that is durable and could drive a lot of value. Right. So that's how they look at it holistically. It's not a number driven. >>They do. They look at that. >>Yeah. Yeah, absolutely. So I think it's a misperception to say, Hey, it's a numbers driven conversation. It's a business driven conversation where, I mean, and Hawk's been public about it. He says, look, I look at businesses. Can they be leaders in their market? Yeah. Because leaders get, as we all know a disproportionate share of the economic value, is it a durable franchise that's gonna last 10 years or more, right. Obviously with technology changes in between, but 10 years or more >>Or 10, you got your internal, VMware talent customers and >>Partners. Yeah. Significant competitive advantage. So that's, that's really where the conversation starts and the numbers fall out of it. Got it. >>Okay. So I think >>There's a track record too. >>That culture >>That VMware has, you've always had an engineering culture. That's turned, you know, ideas and problems into products that, that have been very successful. >>Well, they had different engineering cultures. They're chips. You guys are software. Right. You guys know >>Software. Yeah. Mean they've been very successful with Broadcom, the standalone networking company since they took it over. Right. I mean, it's, there's a lot of amazing innovation going on there. >>Yeah. Not, not that I'm smiling. I want to kind of poke at this question question. I'll see if I get an answer out of you, when you talk to Hawk tan, does he feel like he bought a lot more than he thought or does he, did he, does he know it's all here? So >>The last two months, I mean, they've been going through a very deliberate process of digging into each business and certainly feels like he got a phenomenal asset base. Yeah. He said that to me even today after the keynote, right. Is the amazing amount of product capability that he's seeing in every one of our businesses. And that's been the constant frame. >>But congratulations on that. >>I've heard, I've heard Hawk talk about the shift to, to Mer merchant Silicon. Yeah. From custom Silicon. But I wanted to ask you when you look at things like AWS nitro yeah. And graviton and train and the advantage that AWS has with custom Silicon, you see Google and Microsoft sort of Alibaba following suit. Would it benefit you to have custom Silicon for, for DPU? I mean, I guess you, you know, to have a tighter integration or do you feel like with the relationships that you have that doesn't buy you anything? >>Yeah. I mean we have pretty strong relationships with in fact fantastic relationships with the Invidia and Intel and AMD >>Benon and AMD now. >>Yeah. Yeah. I mean, we've been working with the Pendo team in their previous incarnations for years. Right, right. When they were at Cisco and then same thing with the, we know the Melanox team as well as the invi original teams and Intel is the collaboration right. From the get go of the company. So we don't feel a need for any of that. We think, I mean, it's clear for those cloud folks, right. They're going towards a vertical integration model and select portions of their stack, like you talked about, but there is always a room for horizontal integration model. Right. And that's what we are a part of. Right. So there'll be a number of DPU pro vendors. There'll be a number of CPU vendors. There'll be a number of other storage, et cetera, et cetera. And we think that is goodness in an alternative model compared to a vertically integr >>And yeah. What this trade offs, right. It's not one or the other, I mean I used to tell, talk to Al Shugar about this all the time. Right. I mean, if vertically integrated, there may be some cost advantages, but then you've got flexibility advantages. If you're using, you know, what the industry is building. Right. And those are the tradeoffs, so yeah. Yeah. >>Greg, what are you excited about right now? You got a lot going on obviously great event. Branding's good. Love the graphics. I was kind of nervous about the name changed. I likem world, but you know, that's, I'm kind of like it >>Doesn't readily roll off your phone. Yeah. >>I know. We, I had everyone miscue this morning already and said VMware Explorer. So >>You pay Laura fine. Yeah. >>Now, I >>Mean a quarter >>Curse jar, whatever I did wrong. I don't believe it. Only small mistake that's because the thing wasn't on. Okay. Anyway, what's on your plate. What's your, what's some of the milestones. Do you share for your employees, your customers and your partners out there that are watching that might wanna know what's next in the whole Broadcom VMware situation. Is there a timeline? Can you talk publicly about what? To what people can expect? >>Yeah, no, we, we talk all the time in the company about that. Right? Because even if there is no news, you need to talk about what is where we are. Right. Because this is such a big transaction and employees need to know where we are at every minute of the day. Right? Yeah. So, so we definitely talk about that. We definitely talk about that with customers too. And where we are is that the, all the processes are on track, right? There is a regulatory track going on. And like I alluded to a few minutes ago, Broadcom is doing what they call the discovery phase of the integration planning, where they learn about the business. And then once that is done, they'll figure out what the operating model is. What Broadcom is said publicly is that the acquisition will close in their fiscal 23, which starts in November of this year, runs through October of next year. >>So >>Anywhere window, okay. As to where it is in that window. >>All right, Raghu, thank you so much for taking valuable time out of your conference time here for the queue. I really appreciate Dave and I both appreciate your friendship. Congratulations on the success as CEO, cuz we've been following your trials and tribulations and endeavors for many years and it's been great to chat with you. >>Yeah. Yeah. It's been great to chat with you, not just today, but yeah. Over a period of time and you guys do great work with this, so >>Yeah. And you guys making, making all the right calls at VMware. All right. More coverage. I'm shot. Dave ante cube coverage day one of three days of world war cup here in Moscone west, the cube coverage of VMware Explorer, 22 be right back.

(upbeat music) >> Welcome back everyone to theCUBE's continuous coverage of AWS re:Invent 2021. I'm John Furrier, your host of theCUBE. We're here with James Watters, CTO of Modern Applications at VMware here to talk about the big Tanzu cloud native application wave, the modernization's here. James, great to see you. Thanks for coming on. >> Hey John, great to have you back on. And really excited about re:Invent this year. And I've been watching your coverage of it. There's lots of exciting stuff going on in this space. >> Awesome. Well, James, you've been riding the wave of, I would call cloud 1.0, 2.0 what do you want to call it, the initial wave of cloud where the advent of replatforming is there. You know all these benefits and things are moving fast. Things are being developed. A lot of endeavors, things are tracking. Some are kicking, Kubernetes kicks in, and now the big story is over the past year and a half. Certainly the pandemic highlighted is this big wave that's hitting now, which is the real, the modernization of the enterprise, the modernization of software development. And even Amazon was saying that in one of our talks that the sovereign life cycles over it should be completely put away to bed. And that DevOps is truly here. And you add security, you got DevSecOps. So an entirely new, large scale, heavy use of data, new methodologies are all hitting right now. And if you're not on that wave your driftwood, what's your take? >> Oh, I think you're dead right, John, and you know, kind of the first 10 years of working on this for sort of proving that the microservices, the container, the declared of automation, the DevOps patterns were the future. And I think everyone's agreed now. And I think DevSecOps and the trends around app modernization are really around bringing that to scale for enterprises. So the conversations I tend to be having are, Hey, you've done a little Kubernetes. You've done some modern apps and APIs, but how do you really scale this across your enterprise? That's what I think is exciting today. And that's what we're talking about. Some of the tools we're bringing to Amazon to help people achieve faster, consumption, better scale, more security. >> You know, one of the things about VMware that's been impressive over the years is that on the wave of IT, they already had great operational install base. They did a deal with Amazon Ragu did that. I think 2016, that kind of cleared the air. They're not going to do their own cloud or they have cloud efforts kind of solidifies that. And then incomes, Kubernetes, and then you saw a completely different cloud native wave coming in with the Tanzu, the Heptio acquisition. And since then a lot's been done. Can you just take us through the Tanzu evolution because I think this is a cornerstone of what's happening right now. >> Yeah, that's a great question, John. I think that the emergence of Kubernetes as a common set of APIs that every cloud and almost every infrastructure agrees on was a huge one. And the way I talked to our clients about is that VMware is doing a couple of things in this space. The first is that we're recognizing that as an infrastructure or baking Kubernetes into every vSphere, be it vSphere on-prem, be it VMC on Amazon. You're just going to find Kubernetes is a big part of each year. So that's kind of a big step one, but it's in some ways the same way that Amazon is doing with EKS and Azure is doing with AKS, but like every infrastructure provider is bringing Kubernetes everywhere. And then that kind of unleashes this really exciting moment where you've got this global control plane that you can program to be your DevSecOps platform. And Kubernetes has this incredible model of extensibility where you can add CRDs and program, right against the Kubernetes APIs with your additional features and functions you want your DevSecOps pipeline. And so it's created this opportunity for Tanzu to kind of have then a global control plane, which we call Tanzu Mission Control to bring all of those Kubernetes running on different clouds together. And then the last thing that we'll talk about a little bit more is this Tanzu Application Platform, which is bringing a developer experience to Kubernetes. So that you're not always starting with what I like to say, like, oh, I have Git, I have Kubernetes, am I done? There's a lot more to the story than that. >> I want to get to this Tanzu Application Platform on EKS. I think that's a big story at VMware. We've seen that, but before we do that for the folks out there watching who are like, I'm now seeing this, whether they're young, new to the industry or enterprises who have replatforming or refactoring, trying to understand what is a modern application. So give us the definition in your words, what is a modern application? >> You know, John, it's a great question. And I tend to start with why and like, hey, how did we get here? And you, you and I both, I think, used to work for the bigger iron vendors back in the day. And we've seen the age of the big box Silicon Valley. I don't know, I worked at Sun just across the aisle here and basically we'd sell you a big box and then once or twice a year, you'd change the software on it. And so in a sense, like there was no chance to do user-oriented design or any of these things. Like you kind of got what you got and you hope to scale it. And then modern applications have been much more of the age of like what you might say, like Instagram or some of these modern apps that are very user-oriented and how you're changing that user interface that user design might change every week based on user feedback. And you're constantly using big data to adjust that modern app experience. And so modern apps to me are inherently iterative and inherently scalable and amenable to change. And that's where the 12 factor application manifesto was written, a blog was written a decade ago, basically saying here's how you can start to design apps to be constantly upgradable. So to me, modern apps, 12 of factors, one of them Kubernetes compatible, but the real point is that they should be flexible to be constantly iterated on maybe at least once a week at a minimum and designed and engineered to do that. And that takes them away from the old vertically scaled apps that kind of ran on 172 processors that you would infrequently update in the past. Those are what you might call like cloud apps. Is that helpful? >> Yeah, totally helpful. And by the way, those old iron vendors, they're now called the on-premise vendors and, you know, HPE, Dell and whatnot, IBM. But the thing about the cloud is, is that you have the true infrastructure as code happening. It's happened, it's happening, but faster and better and greater the goodness there. So you got DevSecOps, which is just DevOps with security. So DevSecOps is the standard now that everyone's shooting for. So what that means is I'm a developer, I just want to write code, the infrastructure got to work for me. So things like Lambda functions are all great things. So assuming that there's going to be this now programmable layer for developers just to do stuff. What is, in context to that need, what is the Tanzu Application Platform about and how does it work? >> Yeah, that's a great question, John. So once you have Kubernetes, you have this abundance of programmable, inner infrastructure resources. You can do almost anything with it, right? Like you can run machine learning workflows, you can run microservices, you can build APIs, you can import legacy apps to it, but it doesn't come out of the box with a set of application patterns and a set of controllers that are built for just, you know, modern apps. It comes with sort of a lot of flexibility and it expects you to understand a pretty broad surface area of APIs. So what we're doing is we're following in the footsteps of companies like Netflix and Uber, et cetera, all of which built kind of a developer platform on top of their Kubernetes infrastructure to say, here's your more templatized path to production. So you don't have to configure everything. You're just changing the right parts of the application. And we kind of go through three steps. The first is an application template that says, here's how to build a streaming app on Kubernetes, click here, and you'll get in your version control and we'll build a Kubernetes manifest for it. Two, is an automated containerization, which is we'll take your app and auto create a container for it so that we know it's secure and you can't make a mistake. And then three is that it will auto detect your application and build a Kubernetes deployment for it so that you can deploy it to Kubernetes in a reliable way. We're basically trying to reduce the burden on the developer from having to understand everything about Kubernetes, to really understanding their domain of the application. Does that make sense? >> Yeah, and this kind of is inline, you mentioned Netflix early on. They were one of the pioneers in inside AWS, but they had the full hyperscaler developers. They had those early hardcore devs that are like unicorns. No, you can't hire these people. They're just not many enough in the world. So the world's becoming, I won't say democratization, that's an overused word, but what we're getting to is if I get this right, you're saying you're going to eliminate the heavy lifting, the boring mundane stuff. >> Yeah, even at Netflix as is great of a developers they have, they still built kind of a microservices or an application platform on top of AWS. And I think that's true of Kubernetes today, which if you go to a Kubernetes conference, you'll often see, don't expose Kubernetes to developers. So tons of application platforms starts to really solve that question. What do you expose to a developer when they want to consume Kubernetes? >> So let's ask you, I know you do a lot of customer visits, that's one of the jobs that make you go out in the field which you like doing and working backwards on the customers has been in the DNA of VMware for years. What is the big narrative with the customers? What's their pain point? How else has the pandemics shown them projects that are working and not working, and they want to come out of it with a growth strategy. VMware is now an independent company. You guys got the platform, what are the customers doing with it? >> Well, I'll give you one example. You know, I went out and I was chatting with the retailer, had seen their online sales goes from one billion to like three billion during the pandemic. And they had been using kind of packaged shopping cart software before like a basic online store that they bought and configured. And they realized they needed to get great at modern apps to keep up with customer demand. And so I would say in general, we've seen the drive, the need for modern apps and digital transformation is just really skyrocketing and everyone's paying attention to it. And then I think they're looking for a trusted partner and they're debating, do we build it all in-house or do we turn to a partner that can help us build this above the cloud? And I think for the people that want an enterprise trusted brand, they'll have a lot of engineering talent behind it. There's been strong interest in Tanzu. And I think the big message we're trying to get out is that Tanzu can not only help you in your on-prem infrastructure, but it can also really help you on public cloud. And I think people are surprised by just how much. >> It's just in the common thread. I see that it's that point is right on is that these companies that don't digitize their business and build an application for their customer are going to get taken away by a startup. I mean, we've seen, it's so easy if you don't have an app for that, you're out of business. I mean, this is like, no, no, it's not like maybe we should do the cloud, let's get proactive. Pretty much it's critical path now for companies. So I'm sure you agree with that, but what's the progress of most of the enterprises? What percentage do you think are having this realization? >> I would say at least 70, 80%, if not more, are there now, and 10 years ago, I used to kind of have to tell stories, like, you know, some startups going to come along and they might disrupt you and people kind of give you that like, yeah, yeah, yeah. You know, I get it. And now it's sort of like, hey, someone's already in our market with an API. Tell me how to build API first apps we need to compete. And that's the difference in the strategic conversation kind of post pandemic and post, you know, the last 10 years. >> All right, final question for you 'cause this is right great thread. I've seen having a web interface it's not good enough, to your point. You got to have an application that they're engaging with, with all the modern capabilities, because the needs there, the expectation for the customers there. What new things are you seeing beyond mobile that are coming around the pike for enterprises, obviously web to mobile, mobile to what? What's next? >> I think the thing that's interesting is there is a bigger push to say more and more of what we do should be an API both internally, like, hey, other teams might want to consume some of these services as a well-formed API. I call it kind of like Stripe MB. Like you look at all these companies, they're like, Hey, stripes worth a hundred billion dollars now because they built a great API. What about us? And so I've seen a lot of industries from automotive to of course financial services and others that are saying, what if we gave our developers internally great APIs? And what if we also expose those APIs externally, we could get a lot, a more rat, fast moving business than the traditional model we might've had in the past. >> It's interesting, you know, commoditizing and automating a way infrastructure or software or capable workflows is actually normal. And if you can unify that in a way that's just better I mean, you have a lower cost structure, but the value doesn't go away, right? So I think a lot of this comes down to, beauty's in the eye of the beholder. I mean, that's how DevSecOps works. I mean, it's agile, it's faster, but you still have to achieve the value of the net is lower cost. What's your take on that? >> Well, I think you're dead right, John. And I think this is what was surprising about Stripe is it was possible before Stripe to go out as a developer and kind of pulled together a backend that did payments, but boy, it was hard. And I think that's the same thing with kind of this tons of application platform and the developer experience focus is people are realizing they can't hire enough developers. So this is the other thing that's happened during the pandemic and the great resignation, if you will, the war for talent is on. And you know, when I talked to a customer, like we might be able to help you, even 30% with your developer productivity, there's like one out of four developers. You might not have to be able to have to recruit they're all in. And so I think that API first model and the developer experience model are the same thing, which is like, it doesn't have to just be possible. It should be excellent. >> Well, great insight learning a lot. Of course, we should move to theCube API and we'll plug into your applications. We're here in the studio with our API, James. Great to have you on. Final word, what's your take this, the big story for re:Invent. If you had to summarize this year's re:Invent going in to 2022, what would you say is happening in this industry right now? >> You know, I'm just super excited about the EKS market and how fast it's growing. We're seeing EKS in a lot of places. We're super excited about helping EKS customers scale. And I think it's great to see Amazon adopting that standard API from Kubernetes. And I think that's going to be, just awesome to watch the creativity the industry is going to have around it. >> Well, great insight, thanks for coming on. And again, we'll work on that Cube API for you. The virtualization of theCUBE is here. We're virtual, which we could be in-person and hope to see you in-person soon. Thanks for coming on. >> You too John, thank you. >> Okay, Cube's coverage of alias re:Invent 2021. I'm John Furrier, your host. Thanks for watching. (upbeat music)

(upbeat intro jingle) >> 'Kay, welcome back everyone to theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host of theCUBE, with your Matt Morgan, Vice President of Cloud Infrastructure Business Group of VMware, CUBE alumni. Matt, great to see you. Can't wait to see you in person, but thanks for coming in remotely for the virtual now hybrid CUBE for re:Invent. >> It's good to see you too, John. Thanks for having us. You know, it's our ninth year covering re:Invented, Remember the first year we went there, it was all developers, right? >> Right. >> And reminds me of the story that you guys have with AWS, you know, VMware Cloud, and VMware with vSphere pioneered operations in IT, you know, vSphere workloads, but now you move that all in the cloud. I remember Ragu when he announced that deal with Pat Gelsinger and Andy Jassy, we covered it extensively. People were like "What are they doing here? This is interesting". Boy- >> Yeah, you- >> The pundits all get it wrong. Their relationship has been blossoming. It's been really powerful, take us through the history here. >> Thanks, John, I mean, you're absolutely right. We have a phenomenal relationship with Amazon Web Services. The value of our partnership has been realized by customers all over the world, in every industry, as they embrace the seamless hybrid cloud experience powered by VMware, vSphere, and of course VM-ware Cloud Stack. Of course, we've recently expanded our operations here, including Japan and the launch of the Soccer Regions. And we're fully open for business with the U.S. Federal Government with VMware Cloud on AWS Gov Cloud. There's strong alignment across the field with new go-to-market teams on both sides and a powerful resell agreement that enables AWS sellers to take VMware Cloud on AWS and all the associated VMware services, such as VMware cloud disaster recovery, NSX vRealize Cloud Management, to their enterprise customers. And we couldn't be doing better. >> Yeah, and you brought up a lot of things there. You mentioned Outpost, mentioned Gov Cloud, you mentioned Marketplace, which means you mentioned the acronym, which is basically, I think it's called EDP Credits, which essentially the enterprise, Amazon's Salesforce working together. So, essentially full business model and technical integrations with Amazon. So, success certainly being demonstrated there. So congratulations, that being said, there's still more to do. We got this whole big wave coming on, you see the edge, you seeing multicloud, you seeing hybrid becoming the operational model, both on premises and in the cloud. And so, customers really are asking themselves "Okay, I got VMware, I got AWS Cloud, I got to secure these clouds now. I got to start putting the business model together on top of the technical architecture". You know, microservices, Kubernetes, Tansu, all the things you guys are doing, but customers want to ask you "What about securing the cloud?", this is the number one question, what's your reaction to that? >> Yeah, it's a great topic, John, at the end of the day, this is about evolving the hybrid cloud. And if you think about it, originally, the hybrid cloud was about unifying both infrastructure and operations between the on-premises world, and the public cloud world. And now what's happening, is we are seeing people embrace that in spades, and as a result of that, their Tier 1 applications are running both on-premises and in the public cloud. And with our new announced local cloud capabilities with VMware Cloud on AWS Outpost, it's leading to this whole new enterprise architecture, which we call the distributed cloud. When you look at deploying enterprise applications in a distributed cloud environment, the conversation starts with consistent networking and importantly security. So, let's talk about that for a moment. Customers are asking us "How do we secure our data when we start having infrastructure in a variety of locations? Are our applications and networks... Are they really secure when they run in these completely different environments? And importantly, when we move an application, we take it from our on-premise data center, we move it to the public cloud are the security policies... Are they moving with it? Do I need to re-architect for that?". And the real question, all of this boils down to "Are we expanding that attack surface when we move to VMware Cloud on AWS?". And so we have to come back to what do we do here to really alleviate these concerns? With data security, it's all about encryption, universal insights. We have the super root capability within our platform to ensure that everything is measured, every message from an application, every data, it's great for Chain Of Custody, Audit. Of course we have backup DR Ransomware. On the application side, of course, segmentation is super important with application centric firewalls, VPNs, tunneling, EDR, IDS, IPS. And of course, none of that matters if you have to reset everything up every time an application moves. And this is a real unique value proposition for us, it's about portability. We deliver portable security. We can move an application, the APIs are standard. You can move it up to the public cloud, your policies, your integrations, even if it's third-party integrations, they're maintained. And that really delivers the ability to say "Look, we can make sure your attack surface is not expanding, it's a controlled environment for you". And that really shrinks the risk factors associated with moving to this distributed cloud environment. >> You know, that's the really, I think the key point, I think that you brought up this infrastructure, kind of, table stakes. Which keeps rising because security's, honestly is now there's no... There's a huge... There's no perimeter. It's huge surface area. Everything has to be secured and locked down. And the big theme at re:Invent this year is data, right? So, you know, data and security all go hand in hand. And so that brings up the aspect of the edge. The edge is now booming, you seeing 5G again, you're here hearing it here at reinvent again, more and more 5G. You mentioned local services, Outpost is evolving. This is kind of the new area, and certainly, attack factor as well. So, you mentioned this whole local services. Take me through that because this becomes interesting because this is an architectural issue for enterprises to figure out, "Okay, I got to distribute a computing architecture, it's called The Cloud and multiple clouds. Now, I've got this edge, whole 'nother opening opens up the case for the architecture conversation". What's the strategy? How do you guys view the case? How do you make the case for local services? >> So, we were super excited to announce VMware Cloud on AWS Outpost. This is a local cloud as a service offering. So, let me break that down a little bit. Of course, compute at the edge is nothing new, but the problem with traditional approaches is typically edge locations may lack IT excellence. Which means there's no one there to manage the service. VMware Cloud on AWS outposts is that local cloud as a service, meaning it's fully managed and at the edge, that's a perfect fit. It's hand in glove for those types of workloads that are out, pushed all the way out, whether it's part of an agricultural deployment or an energy production facility or retail store, where there isn't that typical IT excellence. VMware cloud on AWS outposts enables customers to deploy the same Cloud instance as they're running VMware Cloud on AWS, but be able to do it out at that edge environment. And when you look at the overall value of VMware Cloud on AWS Outpost, it's about delivering a simpler, cost effective, consistent cloud experience for those on-prem environments that matches the operating model of the public cloud. Think of the places that you really want to have cloud infrastructure, where it's critical. Going back to your point on data, getting real time insights on that data, to be able to process that, we call those perishable insights. The value is the immediacy understanding that value specific to the moment it's being captured. Think about the different types of sensor environments, where data's coming off expensive equipment, that's measuring temperature and speed. Understanding that value back to the operator - really, really important. You don't have time to pipe that data up to a cloud process and send the results back down. Edge environments require that real-time stuff. So, together with AWS, we jointly deliver a fully managed service right down to the AWS hardware on which we built the VMware cloud instance. We think about where we're seeing the most interest here. You can look across all kinds of industries and use cases, and we're seeing it specifically in healthcare, out of the hospital, manufacturing for equipment monitoring, government, higher education, where those end points are typically virtualized. There are others, but these are the big ones so far. >> You know, I was just talking to an AMD executive or product marketing person on the gaming side. And they're living this right now because they're putting all the virtual collaboration in the cloud, all the data, because they have so much data and they have so much need for these special instances, whether it's GPUs, and CPUs, a mix and match. So, as instances become more special purposed, that's going to enable them to have more productivity. But then, when you have that baseline in the cloud, the edge also has processing power. So, I think people are starting to see this notion of "Okay, I'm in the cloud, but I can also have that cloud edge without moving data back to the centralized cloud and processing it at the edge with software". >> Yeah, that's true. >> This is real. >> It's super real. And the one that really resonates with customers, is one that we all understand and that's healthcare. Anytime you're in a regional environment where you're at a hospital, think of an ICU, the criticality of that data being processed, providing the insights, this is more mission critical than any other environment, because we're dealing with human lives, think about the complex compute requirements of that environment. And then look at the beauty and elegance of this system, a cloud-based system on premises, doing that compute, providing those insights, giving reality back to the clinician, so they can make those decisions. Healthcare is super, super important. And we see customers across the spectrum, looking at what's happening at the edge and embracing it, whether it's healthcare or other industries. And again, it's a perfect fit for them. >> Yeah, real quick, before we move on to what's new, I'm want to get to that, the Tansu stuff as well. What other industries are popping out? Obviously, manufacturing. What can you talk with some industries and some verticals that are really primed for this local cloud service? >> So, let's talk about manufacturing for a moment. Manufacturing is another facility oriented compute requirement that is perfectly fit, from a system and solution way like VMware cloud on AWS Outposts. Within the manufacturing environment, there's tons of very critical machines. There's inventory management, there's a combination of time management, people management, bringing it all together to ensure that process lines are moving as required, that inventory is provided at the specific moment it's needed, and to make sure that everything, especially in today's supply chain world is provided when is required. This type of capability allows an organization to bring in that sensor data, bring in that inventory data, produce applications that manage that in real time, delivering that compute. And in the manufacturing floor, again, limited IT excellence. So, this provides that capability. Another one is energy production. Think about energy production that's out in the field in North Dakota, or out on an oil rig that might be in the Gulf of Mexico. Not only are you dealing with lack of IT excellence, you're also dealing with limited connectivity. This equipment needs to be monitored and censored and the data from those sensors help drive critical decisions. And with limited connectivity, I mean, you may not even have an LTE signal, the need to do that real time is paramount, local cloud provides that. >> Yeah, and I'd also just add, because we're going to move on, but higher ED is going to be completely transformed. Well, I think that's going to be kind of like a pleat revamp. Let's get into what's new on VMware Cloud on AWS give us the update on the new things that people should know about. That's important that they should review, take us through that, what's new? >> Yeah, absolutely. So, the first is the integration with the AWS console. This is a big thing that we're delivering because VMware Cloud on AWS is a native service of AWS. I have to kind of say that twice, it's a native service of AWS. And because of that, we get the same operational and commerce experience for VMware Cloud instances as customers do with traditional AWS services. This means customers now have a choice between AWS centric operating model, which is highly relevant to DevOps and developers, or VMware centric operating model, which is very relevant to traditional operators, and IT users. VMware Cloud on AWS Gov Cloud is expanded to the U.S., East Virginia Region, and achieved aisle five certification. This new region will make the service more relevant for the Eastern Seaboard where much of the Federal Government resides. And of course with aisle five, it opens up VMware Cloud on AWS to the U.S. military and defense contractors, which is huge because there's massive cloud transformation contracts currently in play. And of course, VMware Cloud on AWS Gov Cloud provides the most secure enterprise cloud for those DOD customers, especially when they focus on those critical Tier 1 workloads. >> It's been three years since the GA of the VMware cloud on AWS, has been earlier, since you announced it> You're pumping on all cylinders, as we had predicted, others didn't, just FYI for the folks watching. What's the final vibe? End the segment with your view of what's going on with VMware Cloud on AWS? What's the bumper sticker? >> So, at the end of the day, every customer is looking to migrate and modernize their workloads. And VMWare cloud gives them that capability to do it faster than anyone else. Customers take their applications, tier 1 applications, move it to that secure distributed cloud construct, that idea of having VMware Cloud on AWS, sharing all those security policies, all of that consistent infrastructure and operations. And then they can modernize those applications, using all of those cloud services and the ability to use Tansu to containerize where applicable. We're excited about these capabilities, and our customers are adopting it faster each and every year. And we're thrilled about the traction we're had. And we're thrilled about the partnership we have with Amazon Web Services. So, lots more to come in this space. >> Lot of great stuff, people moving up the stack on the cloud, you're seeing more refactoring in the cloud. Matt Morgan, great to see you. We've been talking 'about this for years on theCUBE. Great to come on and give some insights. All happening. Infrastructure is code. And everyone's winning with containers and microservices. So, great stuff. Thanks for coming on. >> Thanks a lot, John, take care. >> Okay, Matt Morgan, the VP of Cloud Infrastructure Business Group of VMware. This theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host. Thanks for watching. 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(upbeat intro jingle) >> 'Kay, welcome back everyone to theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host of theCUBE, with your Matt Morgan, Vice President of Cloud Infrastructure Business Group of VMware, CUBE alumni. Matt, great to see you. Can't wait to see you in person, but thanks for coming in remotely for the virtual now hybrid CUBE for re:Invent. >> It's good to see you too, John. Thanks for having us. You know, it's our ninth year covering re:Invented, Remember the first year we went there, it was all developers, right? >> Right. >> And reminds me of the story that you guys have with AWS, you know, VMware Cloud, and VMware with vSphere pioneered operations in IT, you know, vSphere workloads, but now you move that all in the cloud. I remember Ragu when he announced that deal with Pat Gelsinger and Andy Jassy, we covered it extensively. People were like "What are they doing here? This is interesting". Boy- >> Yeah, you- >> The pundits all get it wrong. Their relationship has been blossoming. It's been really powerful, take us through the history here. >> Thanks, John, I mean, you're absolutely right. We have a phenomenal relationship with Amazon Web Services. The value of our partnership has been realized by customers all over the world, in every industry, as they embrace the seamless hybrid cloud experience powered by VMware, vSphere, and of course VM-ware Cloud Stack. Of course, we've recently expanded our operations here, including Japan and the launch of the Soccer Regions. And we're fully open for business with the U.S. Federal Government with VMware Cloud on AWS Gov Cloud. There's strong alignment across the field with new go-to-market teams on both sides and a powerful resell agreement that enables AWS sellers to take VMware Cloud on AWS and all the associated VMware services, such as VMware cloud disaster recovery, NSX vRealize Cloud Management, to their enterprise customers. And we couldn't be doing better. >> Yeah, and you brought up a lot of things there. You mentioned Outpost, mentioned Gov Cloud, you mentioned Marketplace, which means you mentioned the acronym, which is basically, I think it's called EDP Credits, which essentially the enterprise, Amazon's Salesforce working together. So, essentially full business model and technical integrations with Amazon. So, success certainly being demonstrated there. So congratulations, that being said, there's still more to do. We got this whole big wave coming on, you see the edge, you seeing multicloud, you seeing hybrid becoming the operational model, both on premises and in the cloud. And so, customers really are asking themselves "Okay, I got VMware, I got AWS Cloud, I got to secure these clouds now. I got to start putting the business model together on top of the technical architecture". You know, microservices, Kubernetes, Tansu, all the things you guys are doing, but customers want to ask you "What about securing the cloud?", this is the number one question, what's your reaction to that? >> Yeah, it's a great topic, John, at the end of the day, this is about evolving the hybrid cloud. And if you think about it, originally, the hybrid cloud was about unifying both infrastructure and operations between the on-premises world, and the public cloud world. And now what's happening, is we are seeing people embrace that in spades, and as a result of that, their Tier 1 applications are running both on-premises and in the public cloud. And with our new announced local cloud capabilities with VMware Cloud on AWS Outpost, it's leading to this whole new enterprise architecture, which we call the distributed cloud. When you look at deploying enterprise applications in a distributed cloud environment, the conversation starts with consistent networking and importantly security. So, let's talk about that for a moment. Customers are asking us "How do we secure our data when we start having infrastructure in a variety of locations? Are our applications and networks... Are they really secure when they run in these completely different environments? And importantly, when we move an application, we take it from our on-premise data center, we move it to the public cloud are the security policies... Are they moving with it? Do I need to re-architect for that?". And the real question, all of this boils down to "Are we expanding that attack surface when we move to VMware Cloud on AWS?". And so we have to come back to what do we do here to really alleviate these concerns? With data security, it's all about encryption, universal insights. We have the super root capability within our platform to ensure that everything is measured, every message from an application, every data, it's great for Chain Of Custody, Audit. Of course we have backup DR Ransomware. On the application side, of course, segmentation is super important with application centric firewalls, VPNs, tunneling, EDR, IDS, IPS. And of course, none of that matters if you have to reset everything up every time an application moves. And this is a real unique value proposition for us, it's about portability. We deliver portable security. We can move an application, the APIs are standard. You can move it up to the public cloud, your policies, your integrations, even if it's third-party integrations, they're maintained. And that really delivers the ability to say "Look, we can make sure your attack surface is not expanding, it's a controlled environment for you". And that really shrinks the risk factors associated with moving to this distributed cloud environment. >> You know, that's the really, I think the key point, I think that you brought up this infrastructure, kind of, table stakes. Which keeps rising because security's, honestly is now there's no... There's a huge... There's no perimeter. It's huge surface area. Everything has to be secured and locked down. And the big theme at re:Invent this year is data, right? So, you know, data and security all go hand in hand. And so that brings up the aspect of the edge. The edge is now booming, you seeing 5G again, you're here hearing it here at reinvent again, more and more 5G. You mentioned local services, Outpost is evolving. This is kind of the new area, and certainly, attack factor as well. So, you mentioned this whole local services. Take me through that because this becomes interesting because this is an architectural issue for enterprises to figure out, "Okay, I got to distribute a computing architecture, it's called The Cloud and multiple clouds. Now, I've got this edge, whole 'nother opening opens up the case for the architecture conversation". What's the strategy? How do you guys view the case? How do you make the case for local services? >> So, we were super excited to announce VMware Cloud on AWS Outpost. This is a local cloud as a service offering. So, let me break that down a little bit. Of course, compute at the edge is nothing new, but the problem with traditional approaches is typically edge locations may lack IT excellence. Which means there's no one there to manage the service. VMware Cloud on AWS outposts is that local cloud as a service, meaning it's fully managed and at the edge, that's a perfect fit. It's hand in glove for those types of workloads that are out, pushed all the way out, whether it's part of an agricultural deployment or an energy production facility or retail store, where there isn't that typical IT excellence. VMware cloud on AWS outposts enables customers to deploy the same Cloud instance as they're running VMware Cloud on AWS, but be able to do it out at that edge environment. And when you look at the overall value of VMware Cloud on AWS Outpost, it's about delivering a simpler, cost effective, consistent cloud experience for those on-prem environments that matches the operating model of the public cloud. Think of the places that you really want to have cloud infrastructure, where it's critical. Going back to your point on data, getting real time insights on that data, to be able to process that, we call those perishable insights. The value is the immediacy understanding that value specific to the moment it's being captured. Think about the different types of sensor environments, where data's coming off expensive equipment, that's measuring temperature and speed. Understanding that value back to the operator - really, really important. You don't have time to pipe that data up to a cloud process and send the results back down. Edge environments require that real-time stuff. So, together with AWS, we jointly deliver a fully managed service right down to the AWS hardware on which we built the VMware cloud instance. We think about where we're seeing the most interest here. You can look across all kinds of industries and use cases, and we're seeing it specifically in healthcare, out of the hospital, manufacturing for equipment monitoring, government, higher education, where those end points are typically virtualized. There are others, but these are the big ones so far. >> You know, I was just talking to an AMD executive or product marketing person on the gaming side. And they're living this right now because they're putting all the virtual collaboration in the cloud, all the data, because they have so much data and they have so much need for these special instances, whether it's GPUs, and CPUs, a mix and match. So, as instances become more special purposed, that's going to enable them to have more productivity. But then, when you have that baseline in the cloud, the edge also has processing power. So, I think people are starting to see this notion of "Okay, I'm in the cloud, but I can also have that cloud edge without moving data back to the centralized cloud and processing it at the edge with software". >> Yeah, that's true. >> This is real. >> It's super real. And the one that really resonates with customers, is one that we all understand and that's healthcare. Anytime you're in a regional environment where you're at a hospital, think of an ICU, the criticality of that data being processed, providing the insights, this is more mission critical than any other environment, because we're dealing with human lives, think about the complex compute requirements of that environment. And then look at the beauty and elegance of this system, a cloud-based system on premises, doing that compute, providing those insights, giving reality back to the clinician, so they can make those decisions. Healthcare is super, super important. And we see customers across the spectrum, looking at what's happening at the edge and embracing it, whether it's healthcare or other industries. And again, it's a perfect fit for them. >> Yeah, real quick, before we move on to what's new, I'm want to get to that, the Tansu stuff as well. What other industries are popping out? Obviously, manufacturing. What can you talk with some industries and some verticals that are really primed for this local cloud service? >> So, let's talk about manufacturing for a moment. Manufacturing is another facility oriented compute requirement that is perfectly fit, from a system and solution way like VMware cloud on AWS Outposts. Within the manufacturing environment, there's tons of very critical machines. There's inventory management, there's a combination of time management, people management, bringing it all together to ensure that process lines are moving as required, that inventory is provided at the specific moment it's needed, and to make sure that everything, especially in today's supply chain world is provided when is required. This type of capability allows an organization to bring in that sensor data, bring in that inventory data, produce applications that manage that in real time, delivering that compute. And in the manufacturing floor, again, limited IT excellence. So, this provides that capability. Another one is energy production. Think about energy production that's out in the field in North Dakota, or out on an oil rig that might be in the Gulf of Mexico. Not only are you dealing with lack of IT excellence, you're also dealing with limited connectivity. This equipment needs to be monitored and censored and the data from those sensors help drive critical decisions. And with limited connectivity, I mean, you may not even have an LTE signal, the need to do that real time is paramount, local cloud provides that. >> Yeah, and I'd also just add, because we're going to move on, but higher ED is going to be completely transformed. Well, I think that's going to be kind of like a pleat revamp. Let's get into what's new on VMware Cloud on AWS give us the update on the new things that people should know about. That's important that they should review, take us through that, what's new? >> Yeah, absolutely. So, the first is the integration with the AWS console. This is a big thing that we're delivering because VMware Cloud on AWS is a native service of AWS. I have to kind of say that twice, it's a native service of AWS. And because of that, we get the same operational and commerce experience for VMware Cloud instances as customers do with traditional AWS services. This means customers now have a choice between AWS centric operating model, which is highly relevant to DevOps and developers, or VMware centric operating model, which is very relevant to traditional operators, and IT users. VMware Cloud on AWS Gov Cloud is expanded to the U.S., East Virginia Region, and achieved aisle five certification. This new region will make the service more relevant for the Eastern Seaboard where much of the Federal Government resides. And of course with aisle five, it opens up VMware Cloud on AWS to the U.S. military and defense contractors, which is huge because there's massive cloud transformation contracts currently in play. And of course, VMware Cloud on AWS Gov Cloud provides the most secure enterprise cloud for those DOD customers, especially when they focus on those critical Tier 1 workloads. >> It's been three years since the GA of the VMware cloud on AWS, has been earlier, since you announced it> You're pumping on all cylinders, as we had predicted, others didn't, just FYI for the folks watching. What's the final vibe? End the segment with your view of what's going on with VMware Cloud on AWS? What's the bumper sticker? >> So, at the end of the day, every customer is looking to migrate and modernize their workloads. And VMWare cloud gives them that capability to do it faster than anyone else. Customers take their applications, tier 1 applications, move it to that secure distributed cloud construct, that idea of having VMware Cloud on AWS, sharing all those security policies, all of that consistent infrastructure and operations. And then they can modernize those applications, using all of those cloud services and the ability to use Tansu to containerize where applicable. We're excited about these capabilities, and our customers are adopting it faster each and every year. And we're thrilled about the traction we're had. And we're thrilled about the partnership we have with Amazon Web Services. So, lots more to come in this space. >> Lot of great stuff, people moving up the stack on the cloud, you're seeing more refactoring in the cloud. Matt Morgan, great to see you. We've been talking 'about this for years on theCUBE. Great to come on and give some insights. All happening. Infrastructure is code. And everyone's winning with containers and microservices. So, great stuff. Thanks for coming on. >> Thanks a lot, John, take care. >> Okay, Matt Morgan, the VP of Cloud Infrastructure Business Group of VMware. This theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host. Thanks for watching. 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(upbeat music) >> Welcome back everyone to theCUBE's continuous coverage of AWS re:Invent 2021. I'm John Furrier, your host of theCUBE. We're here with James Watters, CTO of Modern Applications at VMware here to talk about the big Tanzu cloud native application wave, the modernization's here. James, great to see you. Thanks for coming on. >> Hey John, great to have you back on. And really excited about re:Invent this year. And I've been watching your coverage of it. There's lots of exciting stuff going on in this space. >> Awesome. Well, James, you've been riding the wave of, I would call cloud 1.0, 2.0 what do you want to call it, the initial wave of cloud where the advent of replatforming is there. You know all these benefits and things are moving fast. Things are being developed. A lot of endeavors, things are tracking. Some are kicking, Kubernetes kicks in, and now the big story is over the past year and a half. Certainly the pandemic highlighted is this big wave that's hitting now, which is the real, the modernization of the enterprise, the modernization of software development. And even Amazon was saying that in one of our talks that the sovereign life cycles over it should be completely put away to bed. And that DevOps is truly here. And you add security, you got DevSecOps. So an entirely new, large scale, heavy use of data, new methodologies are all hitting right now. And if you're not on that wave your driftwood, what's your take? >> Oh, I think you're dead John, and you know, kind of the first 10 years of working on this for sort of proving that the microservices, the container, the declared of automation, the DevOps patterns were the future. And I think everyone's agreed now. And I think DevSecOps and the trends around app modernization are really around bringing that to scale for enterprises. So the conversations I tend to be having are, Hey, you've done a little Kubernetes. You've done some modern apps and APIs, but how do you really scale this across your enterprise? That's what I think is excited today. And that's what we're talking about. Some of the tools we're bringing to Amazon to help people achieve faster, consumption, better scale, more security. >> You know, one of the things about VMware that's been impressive over the years is that on the wave of IT, they already had great operational install base. They did a deal with Amazon Ragu did that. I think 2016, that kind of cleared the air. They're not going to do their own cloud or they have cloud efforts kind of solidifies that. And then incomes, Kubernetes, and then you saw a completely different cloud native wave coming in with the Tanzu, the Heptio acquisition. And since then a lot's been done. Can you just take us through the Tanzu evolution because I think this is a cornerstone of what's happening right now. >> Yeah, that's a great question, John. I think that the emergence of Kubernetes as a common set of APIs that every cloud and almost every infrastructure agrees on was a huge one. And the way I talked to our clients about is that VMware is doing a couple of things in this space. The first is that we're recognizing that as an infrastructure or baking Kubernetes into every vSphere, be it vSphere on-prem, be it BMC on Amazon. You're just going to find Kubernetes is a big part of each year. So that's kind of a big step one, but it's in some ways the same way that Amazon is doing with EKS and Azure EKS, but like every infrastructure provider is bringing Kubernetes everywhere. And then that kind of unleashes this really exciting moment where you've got this global control plane that you can program to be your DevSecOps platform. And Kubernetes has this incredible model of extensibility where you can add CRDs and program, right against the Kubernetes APIs with your additional features and functions you want your DevSecOps pipeline. And so it's created this opportunity for Tanzu to kind of have then a global control plan, which we call Tanzu Mission Control to bring all of those Kubernetes running in different clouds together. And then the last thing that we'll talk about a little bit more is this Tanzu Application Platform, which is bringing a developer experience to Kubernetes. So that you're not always starting with what I like to say, like, oh, I have Kubernetes, am I done? There's a lot more to the story than that. >> I want to get to this Tanzu Application Platform on EKS. I think that's a big story at VMware. We've seen that, but before we do that for the folks out there watching who are like, I'm now seeing this, whether they're young, new to the industry or enterprises who have replatforming or refactoring, trying to understand what is a modern application. So give us the definition in your words, what is a modern application? >> You know, John, it's a great question. And I tend to start with why and like, hey, how did we get here? And you, you and I both, I think, used to work for the bigger iron vendors back in the day. And we've seen the age of the big box Silicon Valley. I don't know, I worked at Sun just across the aisle here and basically we'd sell you a big box and then once or twice a year, you'd change the software on it. And so in a sense, like there was no chance to do user-oriented design or any of these things. Like you kind of got what you got and you hope to scale it. And then modern applications have been much more of the age of like what you might say, like Instagram or some of these modern apps that are very user-oriented and how you're changing that user interface that user design might change every week based on user feedback. And you're constantly using big data to adjust that modern app experience. And so modern apps to me are inherently iterative and inherently scalable and amenable to change. And that's where the 12 factor application manifesto was written, a blog was written a decade ago, basically saying here's how you can start to design apps to be constantly upgradable. So to me, modern apps, 12 of factors, one of them Kubernetes compatible, but the real point is that they should be flexible to be constantly iterated on maybe at least once a week at a minimum and designed and engineered to do that. And that takes them away from the old vertically scaled apps that kind of ran on 172 processors that you would infrequently update in the past. Those are what you might call like cloud apps. Is that helpful? >> Yeah, totally helpful. And by the way, those old iron vendors, they're now called the on-premise vendors and, you know, HPE, Dell and whatnot, IBM. But the thing about the cloud is, is that you have the true infrastructure as code happening. It's happened, it's happening, but faster and better and greater the goodness there. So you got DevSecOps, which is just DevOps with security. So DevSecOps is the standard now that everyone's shooting for. So what that means is I'm a developer, I just want to write code, the infrastructure got to work for me. So things like Lambda functions are all great things. So assuming that there's going to be this now programmable layer for developers just to do stuff. What is, in context to that need, what is the Tanzu Application Platform about and how does it work? >> Yeah, that's a great question, John. So once you have Kubernetes, you have this abundance of programmable, inner infrastructure resources. You can do almost anything with it, right? Like you can run machine learning workflows, you can run microservices, you can build APIs, you can import legacy apps to it, but it doesn't come out of the box with a set of application patterns and a set of controllers that are built for just, you know, modern apps. It comes with sort of a lot of flexibility and it expects you to understand a pretty broad surface area of APIs. So what we're doing is we're following in the footsteps of companies like Netflix and Uber, et cetera, all of which built kind of a developer platform on top of their Kubernetes infrastructure to say, here's your more templatized path to production. So you don't have to configure everything. You're just changing the right parts of the application. And we kind of go through three steps. The first is an application template that says, here's how to build a streaming app on Kubernetes, click here, and you'll get in your version control and we'll build a Kubernetes manifest for it. Two, is an automated containerization, which is we'll take your app and auto create a container for it so that we know it's secure and you can't make a mistake. And then three is that it will auto detect your application and build a Kubernetes deployment for it so that you can deploy it to Kubernetes in a reliable way. We're basically trying to reduce the burden on the developer from having to understand everything about Kubernetes, to really understanding their domain of the application. Does that make sense? >> Yeah, and this kind of is inline, you mentioned Netflix early on. They were one of the pioneers in inside AWS, but they had the full hyperscaler developers. They had those early hardcore devs that are like unicorns. No, you can't hire these people. They're just not many enough in the world. So the world's becoming, I won't say democratization, that's an overused word, but what we're getting to is if I get this right, you're saying you're going to eliminate the heavy lifting, the boring mundane stuff. >> Yeah, even at Netflix as is great of a developers they have, they still built kind of a microservices or an application platform on top of AWS. And I think that's true of Kubernetes today, which if you go to a Kubernetes conference, you'll often see, don't expose Kubernetes to developers. So tons of application platforms starts to really solve that question. What do you expose to a developer when they want to consume Kubernetes? >> So let's ask you, I know you do a lot of customer visits, that's one of the jobs that make you go out in the field which you like doing and working backwards on the customers has been in the DNA of VMware for years. What is the big narrative with the customers? What's their pain point? How else has the pandemics shown them projects that are working and not working, and they want to come out of it with a growth strategy. VMware is now an independent company. You guys got the platform, what are the customers doing with it? >> Well, I'll give you one example. You know, I went out and I was chatting with the retailer, had seen their online sales goes from one billion to like three billion during the pandemic. And they had been using kind of packaged shopping cart software before like a basic online store that they bought and configured. And they realized they needed to get great at modern apps to keep up with customer demand. And so I would say in general, we've seen the drive, the need for modern apps and digital transformation is just really skyrocketing and everyone's paying attention to it. And then I think they're looking for a trusted partner and they're debating, do we build it all in-house or do we turn to a partner that can help us build this above the cloud? And I think for the people that want an enterprise trusted brand, they'll have a lot of engineering talent behind it. There's been strong interest in Tanzu. And I think the big message we're trying to get out is that Tanzu can not only help you in your on-prem infrastructure, but it can also really help you on public cloud. And I think people are surprised by just how much. >> It's just in the common thread. I see that it's that point is right on is that these companies that don't digitize their business and build an application for their customer are going to get taken away by a startup. I mean, we've seen, it's so easy if you don't have an app for that, you're out of business. I mean, this is like, no, no, it's not like maybe we should do the cloud, let's get proactive. Pretty much it's critical path now for companies. So I'm sure you agree with that, but what's the progress of most of the enterprises? What percentage do you think are having this realization? >> I would say at least 70, 80%, if not more, are there now, and 10 years ago, I used to kind of have to tell stories, like, you know, some startups going to come along and they might disrupt you and people kind of give you that like, yeah, yeah, yeah. You know, I get it. And now it's sort of like, hey, someone's already in our market with an API. Tell me how to build API first apps we need to compete. And that's the difference in the strategic conversation kind of post pandemic and post, you know, the last 10 years. >> All right, final question for you 'cause this is right great thread. I've seen having a web interface it's not good enough, to your point. You got to have an application that they're engaging with, with all the modern capabilities, because the needs there, the expectation for the customers there. What new things are you seeing beyond mobile that are coming around the pike for enterprises, obviously web to mobile, mobile to what? What's next? >> I think the thing that's interesting is there is a bigger push to say more and more of what we do should be an API both internally, like, hey, other teams might want to consume some of these services as a well-formed API. I call it kind of like Stripe MB. Like you look at all these companies, they're like, Hey, stripes worth a hundred billion dollars now because they built a great API. What about us? And so I've seen a lot of industries from automotive to of course financial services and others that are saying, what if we gave our developers internally great APIs? And what if we also expose those APIs externally, we could get a lot, a more rat, fast moving business than the traditional model we might've had in the past. >> It's interesting, you know, commoditizing and automating a way infrastructure or software or capable workflows is actually normal. And if you can unify that in a way that's just better I mean, you have a lower cost structure, but the value doesn't go away, right? So I think a lot of this comes down to, beauty's in the eye of the beholder. I mean, that's how DevSecOps works. I mean, it's agile, it's faster, but you still have to achieve the value of the net is lower cost. What's your take on that? >> Well, I think you're dead right, John. And I think this is what was surprising about Stripe is it was possible before Stripe to go out as a developer and kind of pulled together a backend that did payments, but boy, it was hard. And I think that's the same thing with kind of this tons of application platform and the developer experience focus is people are realizing they can't hire enough developers. So this is the other thing that's happened during the pandemic and the great resignation, if you will, the war for talent is on. And you know, when I talked to a customer, like we might be able to help you, even 30% with your developer productivity, there's like one out of four developers. You might not have to be able to have to recruit they're all in. And so I think that API first model and the developer experience model are the same thing, which is like, it doesn't have to just be possible. It should be excellent. >> Well, great insight learning a lot. Of course, we should move to theCube API and we'll plug into your applications. We're here in the studio with our API, James. Great to have you on. Final word, what's your take this, the big story for re:Invent. If you had to summarize this year's re:Invent going in to 2022, what would you say is happening in this industry right now? >> You know, I'm just super excited about the EKS market and how fast it's growing. We're seeing EKS in a lot of places. We're super excited about helping EKS customers scale. And I think it's great to see Amazon adopting that standard API from Kubernetes. And I think that's going to be, just awesome to watch the creativity the industry is going to have around it. >> Well, great insight, thanks for coming on. And again, we'll work on that Cube API for you. The virtualization of theCUBE is here. We're virtual, which we could be in-person and hope to see you in-person soon. Thanks for coming on. >> You too John, thank you. >> Okay, Cube's coverage of alias re:Invent 2021. I'm John Furrier, your host. Thanks for watching. (upbeat music)

>> Welcome back to the cubes, ongoing coverage of VMworld 2021 the second year in a row. We've done this virtually. My name is Dave Volante and long time VMware technologist and new CTO kit Colbert is here. Kit welcome good to see you again. >> Thanks Dave, super excited to be here. >> So let's talk about your new role, you've been at VMware. You've touched all the bases, so to speak and, you know, love the career evolution, you're ready for this job. So tell us about that role. >> Well, I hope so. I don't know. It's definitely a big step up been here at VMware for 18 years now, which if you're not Silicon valley, you know, that's a long time. It's probably like four or five normal Silicon valley lifetime in terms of stints at a company. But I love it. I love the company, I love the culture. I love the technology and I'm super passionate, super excited about it. And so, you know, the, the new role previously, I was CTO for one of our business groups and focused on a specific set of our products and services. But now as the corporate CTO, I really am overseeing all of VMware, R and D. In the sense of really trying to drive a whole bunch of core engineering transformations, right? Where we've talked a lot about our shift toward becoming a SAS company. So, you know, a cloud services company. And so there's a lot of changes. We got to make internally, technologies, platform services we need to build out, you know, the, the sort of culture aspects of it again. And so, you know, I'm kind of sitting at the center of that and it's, I'll be honest, it's big, there's a lot of stuff to go and do, but I am just super excited about it. Wake up every day, really excited to meet a whole bunch of new people across the organization and to learn all the cool things we're doing, it's just, well, you know, I'll say it again, like the level of innovation happening inside of VMware is just insane. And it's really cool now that I get kind of more of a front and center road to see everything that's happening. >> Well and when I was preparing for the interview with Ragu, I was thinking about, you know, I've been following VMware for a long time, and I sort of noted that it's like the fourth wave of executive management and sort of went back and said, okay, yes, we know it started with, you know, workstation. Okay, fine. But then really quickly went into really changing the way in which we think about servers, server utilization and driving. I remember the first time I ever saw a demo, I said, wow, this is going to be completely game changing. And really, and then, and then thought about the era of the software defined data center, fine tuning the cloud strategy. And then this explosion of innovation, whether it was the sort of NSX piece, the acquisitions you've made around security, again, more cloud expansion. And now you're laying out sort of this Switzerland from multi-cloud combined with this as you're pointing out this as a service model. So when you think about the technical vision of the company transforming into a cloud and subscription model, what does that mean from a sort of architectural standpoint or a mindset perspective? >> Oh yeah. Both great questions, both sort of key focus areas for me. And by the way, it's something I've been thinking about for quite a while, right? Yeah so you're right. Like we are on our third or fourth lap of the track depending on, on how you count. But I also think that this one that this notion of getting into multicloud of becoming a real cloud services company is going to be probably the biggest one for us. And the biggest transformation that we're going to have to make. You know, we, we did extend from core compute virtualization to network and storage, but the software defined data center. But now these things I think are a bit more fundamental. So, you know, how are we thinking about it? But we're thinking about it in a few different ways. I do think, as you mentioned, the mindset is definitely the most important thing. This notion that, you know, we no longer really have product teams purely. They should be thinking of themselves as service teams and the idea being that they are operating and accountable for the availability of their cloud service. And so this means we really need to step up our game. We have in terms of the types of tooling that we built, but really it's about getting these developers engaged with that, to know that, hey, like what matters most of all right now is that service availability. In addition to things like security compliance, et cetera, but we have monitoring systems to tell you, hey, there's a problem. And that you need to go jump on those things immediately. This is not like, you know, a normal bug that comes in, oh, I'll get to it tomorrow or whatever. It's like, no, no, no, you got to step up and really get there immediately. And so there is that big mindset shift. That's something we've been driving the past few years, but we need to continue to push there. And as part of that, you know, the other thing we're doing is that what we've seen is that a lot of our individual teams have gone out and build like really great cloud services. But what we really want to build to enable us to accelerate that is a platform, a true SaaS platform and leveraging all these great capabilities that we have to help all of our teams go faster. So it gets to things like standardization and really raising the bar across the board to allow all these teams to focus on what makes their products or services unique and differentiated rather than, you know, just doing the basic blocking and tackling. So those are a couple of things I'm really focused on both driving the mindset shift. You know, I think when I, you know, as I was taking on this role, I did a lot of reading on other CTOs and, you know, how do they view their roles within their companies? And one of the things I did hear there was that the CTO is kind of the I dunno, the keeper is the right word, but the keeper of the engineering culture, right. That you want to really be a steward for that to help take it forward in the right sort of directions that align with the strategic direction of the business. And so that's a big aspect for what I'm thinking about. And the second one, the SAS platform, one of the really interesting things about this reorg that we've done internally is that traditionally CTO has kind of focused, you know, outbound, maybe a little bit inbound, but typically don't have large engineering organizations, but here what we want to do, because this, this SAS platform is so important to us. We did centralize it within the office of the CTO. And so now, you know, my customers from an engineering standpoint are all the internal business units. So a lot of really big changes inside VMware, but I think this is the sort of stuff we need to do to help us really accelerate toward the multi-cloud vision that we're painting. >> Well, VMware has always had a super strong engineering culture. And I like the way you phrase that the steward of the engineering culture, when you think about a product mindset, when, of course correct me, if I'm off here, but when you're building a product and you're making that thing rock solid, you want more rich to talk about the hardened top, and so it seems to me that the services mindset expands the mind a little bit in terms of what other services can I integrate to make my service better. Whether that's a machine intelligence service or a security service, or, you know, the dozens of other services that you guys are now building the combination of that innovation is, has like a step function and a lever on top of the sort of traditional product mindset. >> Yeah, there is, I think you're absolutely right. There's a ton of like really fundamental mental mindset shifts, right? That are a part of that. And the integration piece, you mentioned super critical, but I also think it's, it's actually taking a step back and looking at the life cycle more holistically when you're thinking about a product you're thinking about, okay, I get the bits together, I'm going to ship it out, but then it's really up to the customer to go deploy that, to operate it and, you know, deal with problems and bugs that come up. And when you're delivering a cloud service, those are all problems that you, as the application creator have to deal with. And so you got to be on top of all those things. And, you know, if you design something in such a way that it becomes kind of hard to bug it runtime, well, that's going to directly impact your availability that might have, you know, contractual obligations with an SLA impact to a customer. So there's some really big implications there that I think traditionally product teams didn't always fully think through, but now that they sort of have to with a cloud service. The other point, I think that's really important, there is the notion of simplicity and ease of use experience is always important, right? Customer experience, user experience, but it gets even more magnified in a SaaS type of environment because the idea is that you shouldn't have to talk to anybody view, you as a user, should be able to go and call an API and start using this thing right and swipe a credit card and you're good to go. And so, you know, that sort of maniacal focus on how you just remove roadblocks, remove any unnecessary things between that customer and getting the value that they're looking for. So in general, the thing that I really love about SaaS and cloud services is that they really align incentives very well. What you want to do as an application builder, as a solution builder really aligns well with what customers are looking for. And you can get that feedback very, very rapidly, which allows for much quicker evolution of the underlying product and application. >> So one of the other things I learned from my interview with Ragu and I couldn't go deep into it. I did a little bit with summit, but I want to get your perspectives as well as I always talk about this obstruction layer across clouds, hybrid, multicloud edge extract, extracting, the complexity of the, you know, the underlying complexity, and Ragu was sort of it's nuance, but he said, okay, but the thing is, we're not trying to limit access to the primitives. We want to allow developers to go there to the extent they want to and my takeaway was okay, but the, the abstraction is you want to be that single management layer with access to the deep primitives and APIs of the respective clouds. But simplify to your point across those estates at the management layer, and maybe you could add some color to that. >> Yeah you know, it's a really interesting question. And but let me tell you about how we think about it because you're right. And that the, you know, the abstractions can sometimes find the underlying primitives and capabilities. And so Ragu is getting at, hey, like we don't necessarily force you one way or the other. And here's the way to think about it is that it's really about delivering optionality. And we do that through offering these abstractions at different layers. So to your point, Dave, like we have a management capabilities that can enable you to manage consistently across all types of clouds, public, private, edge, et cetera, irrespective of what that underlying infrastructure is. And so you look at things that are like our V realize suite of products or cloud health or tons, and tons of mission control is really focused on that one as well. But then we also have our infrastructure layer. That's what we're doing with VMware cloud and this notion of delivering consistent infrastructure. Now, even though, the core sort of IS layer is more consistent, you still get great flexibility in terms of the higher level services. If you want to use a database from one of the public clouds or messaging system or streaming services, you know, AI, whatever it is, you still got that sort of optionality as well. And so the reason that we offer these different things is because customers are just in different places. As a matter of fact, a single customer may have all of those different use cases, right? They may have some apps where they're moving from on-prem and the cloud, they want to do that very quickly. So, boom, we can just do it really fast with VMware cloud consistent infrastructure, we can vMotion that thing up in the cloud. Great. But for other ones, maybe a modern app they're building and maybe a team has chosen to use native AWS for that, but they want to leverage Kubernetes. So there you could put in a ton of mission control to give them that, you know, consistent management across sites or leverage cloud health to understand costs and to really enable the application teams to manage costs on their own. So I think, you know, I always go back to that concept of optionality, like we offer sort of these different levels of abstraction. And it really depends on what the use case is because the reality is especially for a complex enterprise, they're likely going to have all those use cases. >> You know. I want to stay on optionality for a moment because you're essentially becoming a cloud company. I'm expanding the definition of cloud and that's, which I think is appropriate because the cloud is expanding. It's going on, prem, it's going out to the edge hybrid connections across clouds, et cetera. And when you look at the public cloud players there, they all are deep into what I'll call data management. I'm not even sure what that term means anymore sometimes, but certainly they all own own databases, but they also offer databases from folks. You I go back to something Moritz said with the software mainframe that we want to be able to run any workload, you know, anywhere and, and have high reliability recovery, you know, lowest costs, et cetera. It doesn't seem as though you're going to run those, those workloads project Monterey is about supporting new workloads, but it doesn't seem like you have aspirations to, own sort of the database layer, for example, what's your philosophy around that? >> Not generally I mean, we do have some solutions like Greenplum, for instance, that play in that space, more of a data warehouse solution. But generally speaking, you're absolutely right. You know, VMware success was built through tight partnerships. We have a very, very broad partner network. And of course we see hyperscalers as great partners as well. And so, you know, I think if we get back to like, what's the core of VMware, it really is providing those powerful abstractions in the right places, at the infrastructure level, at the management level and so forth. But yeah, we're not trying to necessarily compete with everyone reinvent the world, what we're trying to do is, and by the way, if I just take a step back when we talk to customers, what really drives them toward multi clouds toward using multiple clouds is the fact that they want to get after these, what we call best of breed cloud services, that many of the different public clouds offer databases and AI and ML systems. And for each app team, the exact one that perfectly meets their needs, maybe different, right? Maybe on one cloud versus another cloud. And so that is really the optionality that we want to optimize for when we talk to those customers that they want the easiest way of getting that app onto that cloud. So we can take advantage of that cloud service, but what they worry about is the lack of consistency there. And that goes across the board. You know, if something fails at two AM, you have to wake up and go fix it. Do you have like the right sort of tooling in place, if it's fails on one cloud versus another, do you have to like, you know, scramble to figure out which tools to go use, how to go, you know, which dashboard to look at? I was like, no, they want kind of a consistent one. When you think about, from a security perspective, how do you drive a secure software supply chain? How do you prevent the types of attacks that we've seen in the past few years where people insert malicious code into your supply chain, and now you're running with hack code out there. And if you have different teams doing different things across different clouds, well, that's going to just open up sort of a can of worm, of different possibilities there for hackers to get in. So that's why this consistency is so important. And so, you know, if, I guess if we refine, the optionality a little bit, that point it's about getting optionality around cloud services and that those, like, those are the things that really differentiate. And so that, you know, we're not trying to compete with that. We're saying, hey, like we want to bring customers to those and give them the best experience that they can irrespective of whether that's in the public cloud or on prem or even at the edge. >> That's a huge technical challenge and amazing value for customers, I want to ask you, there's a lot of talk about ESG today. How does that fit into the CTO mindset? Is it a bolt-on, is it as it is fundamental component? >> Yeah the idea there is that if we look at the core values for VMware, this is something that's hugely important and something that we've actually been focused on for quite a while. We now have a whole team focused on this really being a force multiplier to help keep us honest across VMware, to help ensure equity and in many different ways that we have an air continue to increase. For instance, the amount of female representation within our organization or underrepresented minorities or communities ensuring that, you know, pay is equal across the company. You know, these different sorts of things, but also around sustainability. They actually have a number of folks working very closely with our teams to drive sustainability into our products. You know, vSphere is great because it reduces the amount of physical servers you need. So by definition reduces the carbon footprint there, but now, you know, I'm taking a step further. We have cloud partners that we're working with to ensure that they have net zero carbon emissions, you know, using a hundred percent renewables by 2030. And in fact, that's something that we ourselves have signed up for. As you know, today we are carbon neutral, but what we want to get to is to be net carbon zero by 2030, which is an absolutely huge lift. And that's, by the way, not just for VMware, our operations, our offices, but also for our supply chain as well. And so, you know, when you look across this, you know, as well as efforts around diversity and inclusion, this is something that is very core to what we do as a company, but it's also a personal passion of mine. The ESG office actually lives within my organization. And it does that because what I view the office of the CTO as being as really a force multiplier, as I said before, like, yes, the team is located here, but their purview is across all of engineering. And in fact, all of VMware. So I think, you know, when we look at this, it's about getting the best talent we have, very diverse talent increasing our ability to deliver innovative products, but also doing so in a way that's good for the planet that is sustainable and that is giving back to the community. But I think, you know, I'm looking at measuring success in a few different ways. First of all, as I said before, the ESG component and in diversity equity inclusion in particular, in terms of our workforce, extraordinarily important to me and something we're going to be really pushing hard on, you know, as we all know, you know, women, underrepresented minorities, not very well represented in general in Silicon valley. So something that we all need to step up on. And so we're going to be putting a lot of effort in there and that will actually help drive as I said before, all of these innovations, this fundamental shift in mindset, I mean that requires diverse perspectives. It requires pushing us out of our comfort zone, but the net result of that is, so what you're going to see is a much faster cadence of releases of innovation coming from VMware. So there's some just insanely exciting things that are happening in the labs right now that we're cooking up. But, you know, as we start making this shift, we're going to be delivering those faster and faster to our customers and our partners. >> You know, I'm interested to hear that it's a passion of yours. There was an article, I think it was last week in the wall street journal was this, it was an insert section on, on women in the workforce. And there was a stat in there, which I thought was pretty interesting. I'll run it by you see what you think it said that, you know, it's talking about COVID and post COVID and the stresses. And it's interesting to me because a lot of executives are, and you know, I'm, I'm with them is, hey, work from home. This is some beautiful thing. It's good for business too, because you know, everybody's more productive, but then you have this perpetual workday now it's like we never sleep. And then it goes bleeds in the weekends. And the stat from Qualtrics, which was published in the journal, said that, I think it said 30% of working women said that they, their mental health has declined since COVID. And that number was only 15% for working men, still notable but half. And so, you know, one has to question maybe that perpetual work week, and, you know, maybe there's a benefit from business productivity, but then there's the other side of that as well. And a lot of women have left the workforce, a lot of working previously working moms. And so there's a, there's an untapped labor pool there, and there's this huge labor shortage. And so these are important issues, but they're not easy ones to solve, are they? >> No, no, no. It's something we've been putting a lot of thought into at VMware. So we do have a flexible program that we're rolling out in terms of work. People can come into the office if they want to, of course, you know, where we have offices, where it's safe to do so where the government is allowed that our people can and people can have an actual desk there, or sometimes they can say, hey, I only want to come in once or twice a week. And then we say, okay, we'll have some floating desks that you can take. And others are saying, I want to be fully remote. So we give people a pretty broad range in terms of how they want to address that. But I do think to your point though, and this is something I've been really trying to do already is to create a more inclusive environment by doing a number of different things. And so it's being thoughtful around when you're sending emails 'cause like I do like the, my sort of schedule as I do tend to like fire off a lot of emails late at night after the kids are in bed and get a little quiet time, some thinking time, but I make it very clear that I'm not expecting an immediate response don't worry about it. I'm just, this is my work time. Doesn't have to be your work time. And so really setting those, I guess, boundaries very well explicitly and kind of the, the expectations name is a better term setting that explicitly trying to schedule meetings, not at times where you're going to have to drop the kids off at school or pick them to take over your life. And so we really try to emphasize boundaries and, and really studying those things appropriately. But honestly, it's something that we're still working on and I'm still learning and so I'd love to get feedback from folks, but those are some of the early thinkings. But I would say that we at VMware are taking it very, very seriously and really supporting our employees in terms of navigating that work-life balance. >> Well, okay. Congratulations on the new role and it's great to see you again I hope I hope next year we could be face-to-face always a pleasure to have you on the cube. >> Thanks, Dave. Appreciate it being here. >> Alright and thank you for watching the cubes continuous coverage of VMworld 2021, the virtual edition. Keep it right there for more right after this.

>>mm Welcome to VM World 2021 2 days of virtual discussions on innovation. Multi cloud application modernization, securing your data new ways to work transforming the network expanding to the edge and loads of content to help build your digital business. My name is Dave Volonte and you're watching the cube and with me today is Carol Carpenter who's the chief marketing officer of VM. Where carol Great to see you again. Welcome back to the program. >>Thank you Dave. It's great to be here. >>Okay, well, so when we last talked last year at VM World, I honestly thought we'd be back face to face this year. Seems like we learn more every day every week. Every month. How did this year's event come together? What were your priorities in shaping the program? >>You know, I'm with you. I really hoped we would be together in person this year and here we are, another year of virtual. We are primarily all virtual again, which has some really big benefits in that we're able to reach new audiences who in the past couldn't afford to fly, could afford to take the days And it's taught us a lot. So we really approached this year as how do we create a VM world experience that is filled with digestible bites. You know, the notion that any of us are going to sit still for 3-2 days, three days and pay attention full time. This is a pretty antiquated notion. You know, we all like to to take little bites and tastes of content here and there and so we really designed the whole program to do just that. And with this go ahead. >>No, please carry on. >>No, I was going to say one of the things we really wanted to do this year with the M world. The reason the theme is imagined that is we wanted to show the world that VM World is not about your parents, BM world that this is a company while we're very proud of our virtualization past, what we offer today really spans the gamut as you pointed out everything from networking to security to application development platforms. So it's a it's just a different different company with different products and solutions for customers. >>And I love the whole concept of digestible called stackable bites and love that. And you've put together a pretty impressive lineup. You got superstar names, you got, you got stars inside of our industry and then you you know the tech people might know but you've got well known celebrities. What are you looking forward to this year and you know especially around customer and partner engagements. >>Yeah and thank you for highlighting all of that. Like I am super excited about all the different luminaries who are speaking. I am most excited about the customers and partners. Every session will have a customer's part of it. Either a customer speaking or a customer story or customer quotes really speaking to the value and with that we have hundreds of customers presenting customers. Like some you might expect like Fedex to new sas based customers like toast who provides restaurant software and they just went public to companies like space ape games who provide online games. So a real boy, I think a real diversity of customers um, in terms of their transformations and how they're leveraging the VM ware solutions. And then our partner ecosystem really excited. This year we added a new level of sponsorship to bring in some of the um, I would say younger customers and younger partners, partners like, you know, Reddit and um, you know, couch face and others who are bringing new solutions to market. >>We have some great names, they're toast. I think the local boston company, we've, we've been following them so excited to to hear what they have to say. Now let's talk a little bit about the virtual world, This is your second virtual VM world. I'm interested in what you're doing differently. I want to talk about learning, but, but what are you looking forward to in in, in in that sense? And how has the event grown? >>Well, the event has definitely grown in terms of the platform. I think the expectations in terms of numbers of attendees were expecting, you know, over 100,000. Um, and even in this zoom fatigued world, we still expect high level of engagement. The biggest changes. We have made one the more stackable content that we've been talking about two. We focused this year on a high level of interactivity, so we have slack channels set up for almost every session. We expect both speakers, customers prospects to really engage. And and then third area that's different is we amped up all of the different activities. We know that people want to interact and network in other ways. So, you know, some of the usual things like the bourbon tasting, the wine tasting, but also yoga classes and opportunities to learn from a magician, Even golf tips for those of us who love golfing, um really trying to mix it up and create a higher level of interactivity. In addition to all of the platforms you expect for hands on, learning, hands on labs, practitioner classes, All that's still there. We just wanted to increase the level of engagement. >>That's super fun, really innovating in that regard. You're right. I mean it's so easy to just to multitask and get lost. But if I know like if I'm really into yoga or I want some golf tip, I'm gonna come back at that time and it'll, you'll re engage me. So I love that, you know, the cube, we have a unique privilege of participating in a very wide spectrum of events as you can imagine. And we were deeply integrated carol into one of the industry's first big hybrid events this year at mobile world Congress this >>summer. We thought >>that was like the light of the end of the tunnel, but of course we've seen a pullback of sorts but we're still doing some physical, we do a lot of virtual, we were doing these hybrid events. We've been involved in events where they, you know, the host and the guests are there with no audience. So I'm curious as to how you see the evolution of conferences in this post isolation era. What's the learnings? What's changed and what does the future look like for events? >>Yeah, I mean I've talked with a lot of my industry peers about this, including the folks over at Mobile World Congress. Um, I don't think the large, the monolithic event with hundreds of thousands of people um, is in the cards for our near future. And so we've been rethinking like what does a physical event look like or a set of physical events look like next year. That would have an online component. We're we've always had an online component. So we certainly are not. We won't be shedding that anytime soon. The ability to reach new audiences. New targets, new user groups, we absolutely will keep that. I think in terms of the physical presence is exactly what you said. It will be hybrid. Um, we are looking at a series, don't quote me on this because we haven't finalized, but we are considering a series of in person, more local, more regional events with smaller groups. People still want that engagement, customers still want a network and talk with each other. Our users want to talk to each other are vima groups are our new groups like our DEvoPS loop group. The deVOPS folks, they all still want a network, so we want to provide that. But in a smaller, safer, more localized setting. And I think that's the future for a lot of companies. It puts a bigger toll and, and makes more work for us as the company who's hosting, meaning you and you too Dave, you'll be hopefully traveling with us two more of these locations, but it creates a little more strain on the team who is posting. >>You know, it's funny as you well know when we first started doing virtual events, like I said, we've always been been virtual, but largely it was okay. Here are the keynotes, you know, come watch. Uh, and now you're like, say you gave great examples of how you're increasing the engagement, getting much more creative and, and, and it was a lot unknown last year, especially like class March. It was like, okay and virtual events are harder in many respects than physical events and so much of the process has changed different roles. And I think we're seeing the same thing now with with hybrid, there's a lot that's unknown and a lot of trial and error, a lot of experimentation and, but I think at the end of the day, you can actually have the best of both worlds. You can get your what you described, I would, I would call it a VIP locally. V. I. P. Event maybe even role based they have the technical folks, it used to have conferences within conferences, you have your C. I. O. Event, you'd have your event and so I see a kind of return to that maybe I could say smaller and and safer and then a a much much larger audience and in the case it's different in terms of you know converting those into loyal customers and so forth. But but I think overall it's a much much bigger pond ocean that we're playing in. >>Absolutely I think of it as we're going to bring the um world too our customers and prospects and partners and you know it's pretty amazing. The other part of this you asked earlier about like speakers and some of the luminaries the fact is getting everyone to travel to one place at one point in time always had its share of logistical challenges and being able to, you know, some of it can be recorded in advance some of it will be in person. Like one thing we did this year is we recorded our ceo Ragu with six other ceos of hyper scholars talking about the future of multi cloud and what it means and the role that VM ware plays in this. That's pretty hard to do. Like to get all six of them together in one place at the same time. You know how everyone's schedules so compacted so that's what virtual gives us an opportunity to do reach, have more interesting speakers, lots of different speakers who potentially couldn't all travel. >>You don't want to miss that, that event or replay. Um, let's talk about your role as chief marketing officer. You're obviously putting your fingerprints on this new ever you new era. You had no choice you could have entered in. Yeah. We always talked about digital now is like if you're not a digital business, you're out of business and you're, you're living it now. But but I'm interested in in your strategy for global marketing, the organization, The brand in the coming decade. Like you say, the next 10 years are going to be like the last 10 years. >>That's right. Well let's talk about the brand. So VM ware, The name itself is so tightly associated to virtualization and VMS, right, Which is an amazing history and the story of success. That was really what we like to talk about is chapter One, We pioneered server virtualization laying the foundation for what today is the cloud. And then chapter two, we went bigger and broader and we virtualize the entire data center and now here we are, we're in chapter three and this is the next phase of our brand and our promise to customers, which is really focused on customer based innovation and helping our customers innovate and multi cloud. We really believe it's the center of gravity for everything we do. It's in our DNA. It's what how we take constraints which is a very multi cloud can be complex. There are challenges of you know are for customers operating in a multi cloud world. How do we take that help them turn it into an asset, How do we help them take that and give them freedom and control? And that's what our brand is about. It's about the ant is that you can help your developers move faster and retain enterprise control. It's that you can have enterprise apps on any cloud and you can have control and cost savings and enterprise management. So that's what the brand is about. That power of aunt and um and um in terms of how our marketing team is evolving a big piece is exactly what you said. You know just digital everything digital first customers want to learn try buy online and as a company you know VM ware we're shifting our business model from on premise license software to more assassin subscription services And you can see that in our earnings and how we've been shifting and it's quite exciting because with assassin subscription based model you know it's all about customers getting full value in helping customers achieve their value and consumption. So for our marketing team we have shifted from okay we want to get you to the sale and one and done to how do we really drive a full life cycle with a customer, how do we help them land and expand and use the products and get value from them and have a meaningful relationship. It's much more um of a full life cycle. So we're really excited. We, we love what we're doing um particularly on the acquisition side, getting helping customers to learn try by more easily in a digital world and then being able to follow them through with some physical, physical engagement, uh events like the um world and really helping them get the most value out of the products. >>VM ware is really quite an amazing company I'm super excited for as one individual has been following this company for a long time to see the next chapter and the thing a couple of things you mentioned innovation and I see so many companies today, they may have a big customer base, they just, it's easy for them. Easy quotes to milk that customer base and put out new products that sort of lifecycle products. Multi cloud is challenging and one of the hallmarks of VM ware is it's always had a leader that deeply understands technology. You've done that again with with Ragu and so engineering and really drives that innovation. So when I think about cloud generally and you know, there was some start stops with VMware's cloud strategy but then you said, you know what the cloud is an opportunity, it's a gift, we're gonna lean in and then you develop some really interesting partnerships like you said, you got all the big cloud companies up up on stage here this year. And so multi cloud is going to require deep engineering in a vision to really bring that uh, together. And I think, you know, VM ware is, he's one of a handful, you know, small handful of companies that can actually pull that off. >>Well, thank you. Dave, we think so for sure. I mean, we have the history and the foundation and the relationships to be able to do that. I think that um what's what's hard sometimes is that, you know, people may or may not know all the different things we do this multi cloud chapter is really a, It's the reality, 75% of our customers are operating living in a multi cloud world. And if you look at some of the data, it looks like 80, are going that way. And so how do we help them simplify? How do we help customers simplify and innovate for the future? It's definitely in our DNA it's how we take constraints and turn them into an asset for our customers. We, we really believe that it shouldn't be so complex and that we want our customers to have flexibility and choice used to be able to pick which application for which cloud and at any point in time change your mind as well when there are new capabilities on those clouds. And for us, you know, you've hit it on the head, we did realize and we did learn that we don't really want to compete with the hyper scale ear's, what they're doing is pretty unique. What we want to do is help customers consume and accelerate their innovation faster. >>Well, I love the messages and and really appreciate carol your time explaining to our cube audience, going to your vision is the CMO. And you know, we look forward to an interesting chapter ahead with hybrid events, hybrid cloud, multi cloud and all the rest. Thanks so much for coming back in the cube. >>Absolutely. Thank you for having me. Dave >>You're very welcome and thank you for watching. Keep it right there for more great content to cubes coverage of VM World 2021. The virtual edition will be right back. >>Mhm

>>mm We're entering the fourth grade era of VM ware Executive management From its beginnings in the late 90s is a Silicon Valley startup. It's five founders quickly built the company and it ended up as one of the greatest acquisitions in the history of enterprise tech when EMC bought VM ware for $625 million as a public company. But still under EMC's governance, paul Maritz was appointed Ceo in 2000 and eight and set the company on a journey to build what he called at the time. The software mainframe meaning the company's platform would run any application at high performance with low overhead and world class recovery. Pat Gelsinger took over the Ceo reins in 2012 and through organic investments and clever m and a set of course for the software defined data center and after some early miscalculations in cloud, realigned the company strategy to successfully partner with hyper scale hours and position the company for the multi cloud future. The hallmarks of VM where over the course of its history have been great engineering that led to great products, loyal customers and a powerful ecosystem. The other telling attribute of VM where is it? CEOs have always had a deep understanding of technology and its latest Ceo is no different. It's our pleasure to welcome raghu Raghuram back to the cube the fourth Ceo of VM ware and yet another Silicon Valley Ceo graduated from the IIttie rgu, great to see you again and congratulations on your new role. >>Thanks. It's great to be here. >>Okay, five months in 1st 100 days what we have focused on that journey to become the Switzerland of multi cloud, tell us about your early experience as ceo >>it's been fantastic. Uh our customers, all our employees, all our partners have been very welcoming and of course I've given me great input. What we've been able to do in the last 100 days is to really crystallize the strategy and focus it around what I'm sure we're gonna be spending a lot of time talking about. And that's about the multi cloud era of computing that most enterprises are going to go through over the next decade. And so that's really what I've been up to and you'll see the results of that in next week's uh we involved and uh where we would be talking about the strategy and some product announcements that go along with the strategy and so it's a very exciting time to be at Vandenberg. >>Yeah, I mean, I referenced it in my intro, it's almost like the light bulb went off when VM ware realized, wow, this cloud build out is just an opportunity for us and that's really what you're doing with the multi cloud as you're building on top of all the infrastructure that the hyper cloud vendors are putting out there. Maybe you can talk about that, that opportunity and what customers are telling you. >>Yeah, it's uh here is how I describe what has happened in the industry. Right, and what will happen in the industry. So, if you look at the the past decade, as cloud became a mainstream thing, most customers pick the cloud, they built their first digital applications into it, the ones that serve their mobile users or end users with digital products and that worked great for them. Then they step back and say, okay, how many modernize everything that we're doing has become a digital company. And when you go from 10, of your portfolio, 100% of your application portfolio being modernized. What has to happen is you got to go from figuring out, okay, how am I gonna put everything in one cloud to what does the application need and how do I put it on the right place? I look at the same time, the industry has also evolved from being uh predominantly supplied by one cloud provider to multiple cloud providers. At the same time, the thanks to companies like IBM where the data center has been transformed into a private cloud. The edges growing up to be its own location for a cloud sovereign clouds are going. So truly what has happened is it's become a multi cloud world. And customers are saying in addition to just being cloud first, I want to be cloud smart. And so this distributed era of computing that we are entering is what we are seeing in the industry. And what the empire is trying to do is to say, look, let's provide customers with the fastest way of getting to this multi cloud era of computing so that they can go fast, they can spend less and most importantly, they can be free, in other words, choose the right application, right cloud for right applications and have control over how they deploy and use their applications and data. That really is a strategy that we are putting in place. This is something that we've been working towards in the last couple of years now. I'm accelerating that and making that the main piece of what we end, where is doing in order to do that, we have a great opportunity to take partner even better with all of our cloud provider partners and that's where the Switzerland of the industry comes in without impending spin, especially, we have great partnership with the cloud players, great partnerships with infrastructure players. We truly can be a neutral partner to the customers as they look at all these choices and make the right choices for their applications. >>So, I want to ask you about this multi cloud when when the early multi cloud narrative came out where I go, I was saying, look, multi cloud is really multi vendor, you you've got workloads and apps running on different, different clouds. And then increasingly, the promise and your promises, we're going to abstract the underlying complexity of those clouds and we're going to give you an experience whether it's on premise, hybrid into a cloud. Across clouds. Eventually out to the edge, it's gonna be a singular, substantially identical, if not identical experience and we're going to manage the whole kit and caboodle. And how where are we in that first of all? Is that the right way to think about it? Where are we in that sort of transition from plugging into any, you know, a cloud? I'm compatible with the cloud to it's a singular sort of VM ware cloud if you will. >>Yeah. So, um, so I wanna clarify something that he said because this tends to be very commonly confused by customers use the word abstraction. And usually when people think of abstraction, they think it hides capabilities of the uh, cloud providers. That's not what we are trying to. In fact, that's the last thing we're trying to do. What we're trying to do is to provide a consistent developer experience regardless of where you want to build your application so that you can use the cloud provider services if that's what you want to use. But the deficit cops toolchain, the runtime environment, which turns out to be Cuban aires and how you control the kubernetes environment. How do you manage and secure and connect all of these things. Those are the places where we are adding the value. Right. And so really the VM ware value proposition is you can build on the cloud of your choice but providing these consistent elements. Number one, you can make better use of us, your scarce developer or operator resources and expertise. Right. And number two, you can move faster and number three can spend less as a result of this. So that's really what we're trying to do, but not. So I just wanted to clarify the word abstraction in terms of their way, we're still, I would say in the early stages, so if you look at what customers are trying to do, they're trying to build these Greenfield applications and there is an entire ecosystem emerging around Campaneris. There is still kubernetes is not a developer platform. The developer experience on top of kubernetes is highly inconsistent. And so those are some of the areas where we are introducing new innovations with our towns, our application platform. And then if you take enterprise applications, what does it take to have enterprise applications running all the time, be entirely secure, etcetera, etcetera. That's where the we ever cloud assets that are traditionally this fear based come into play and we've got this now in all of the clouds but it's still in the early days from uh on Azure and google et cetera. How do you manage and secure those things again? We're in the early days. So that's where we are. I would say, >>yeah, thank you for that clarification, I want to sort of come back to that and just make sure we understand it. So for example, if I'm a developer and I want to take advantage of, let's say graviton uh and build an app on that, that so maybe it's some kind of data intensive app or whatever it is. I can do that. You won't restrict me from doing that at the same time. If I want to use the VM where management experience across all my clouds, I can do that as well. Is that the right way to think about it? >>Yeah, exactly. So the management experience by the way, and this is the other thing that gets missed in the remember dialogue because we've been so phenomenally successful with this fear. There's a misperception that everything we are doing atmosphere today works only on top. So everything we're doing at BM wear works only on top of the sphere. That's not the case. Take management, for example, our management portfolio is modular and independent of these, which means it can manage the Graviton application that you're building, right. It can manage a traditional, these fear based application, it can manage rage application, it can manage VM based applications, can manage computer based applications. Uh so it's truly uh, overall management layer. So that is really what we're trying to do. Same thing with our kubernetes example. Right, So our communities control plane allows you to control these kubernetes clusters. Whether the clusters are utilizing gravity and whether clusters are utilizing these fear based crew binaries environments. >>Okay, that's great. So it's kind of a set up question because my next question relates to project Monterey, Because, you know, I've always said when I write about about these things, when I saw Nitro, I saw Graviton, I saw project monitor, I said uh everybody needs a Nitro Nitro or a graviton because new workloads are coming. It's not just the X 86 can handle everything anymore asap whether it's sequel server, whatever we've got new workloads that are coming ai ml data intensive edge workloads, et cetera. Is that how we should think of? Project Monterrey. Where are you in Project Monterey? Why is it so important? Help people understand that? >>Yeah. Project mantra is super exciting for a couple of different reasons. One is uh in its first iteration and uh we announced project monitoring and last being well, we continue to build and we're making great progress along with the hardware partners that we are working with um in its first hydration it allows um um some of the functions that you would expect in the software defined data center to be offloaded into these montri processors. The smart nick processes. Right. So what that does, is it clears up the core CPU for other application functions. Right, so you get better scalability, more resource utilization, etcetera, etcetera. The second thing it does is because some of the software defined data center functions are done in the smart make um it gets accelerated as well. Because it takes advantage of the special accelerators that are there security functions, manageability functions, networking functions etcetera, etcetera. So that's that what you're alluding to is overall it's the v sphere, the sX Hyper Visor complimentary itself. That's moving into the specialized processors which allows the hyper Visor will be built into these smart mix, which means the main CPU can be an intel. CPU can be an M D C P. You can be an arm. CPU can be whatever it is you want in the future. So truly enables Monte CPU heterogeneous computing. So that's that's why this is exciting. And of course because it is the sphere, it can happen in the data centers, it can happen in Carlos. It can happen in Sovereign clouds. It can happen in the public clouds all over a period of time. And >>and potentially the Edge I would presume in the future. >>Sorry. Yeah, that's a great point. Thanks for pointing that out. In fact, the Edge is one of the most important places that will happen because we need these low latency applications such as in the telco case for example, right. Or we need these applications that have specialized processing the required. If you're setting up a cashier less store and you need to process and you need a lot of influence engines. So, Monterey helps with all of those things. >>I want to make sure our audience understands. It's because the software defined data center was awesome but but it also created waste in the sense that you have all these offload functions in storage and networking and security running on on x 86 processors which may not be the most efficient way. So emerging architectures around arm might be less expensive, maybe more cost effective, lower power. Uh maybe they do memory management differently. So there are these offload use cases. But as well you we talked about the edge there could be a lot of edge use cases that or whatever whether it's arm or in video etcetera. So now you're driving that optionality for customers so you can support more workloads of the future. >>Yeah, so this is exactly if you think about in europe when you talked about the embers evolution, the inverse core DNA has always been to master hydrogen. Itty right. And what we're seeing is this world of heterogeneous hardware coming alive. Right. You talked about Professor hydrogen Itty including GPU chips and so on. There is a memory architecture heterogeneous, their storage architecture heterogeneous. And so the idea is that regardless of what you use, how do you provide the best workload platform and a consistent way of managing all of these things and reducing the complexity while gaining the efficiency benefits and the other benefits that you talked about. >>So speaking of geniality that brings me to Tansu, you know early on people thought, oh wow containers, that's gonna kill VM where this is the opposite happened. You guys leaned in as as you have as a sign of great leadership these days. You don't get defensive, you just, you know, get the trend is your friend, as they say, give us the update on on Tan xue. Why is that so important to the future? >>Yeah. So if you look at any enterprises portfolio right, they are looking at it and saying look, there's a whole set of applications that I need to modernize. Now. The question becomes how do you modernize these applications in a way that it is essentially done with these microservices architectures and so on and so forth. In that context, how do I maximize the developer productivity and provide a great developer experience because there is not enough developers in the world to modernize every application that that's in every enterprise. Right. So, Tan xue is our answer to help enterprises modernize their applications and deliver in a way that the developed makes the developers very productive on the cloud of their choice. So that is really the strategic intent of Tancill and the core building block for Tan xue is of course kubernetes as you well know, Kubernetes has become the common infrastructure abstraction across clouds. So if you want portability for traditional VM based applications, he used this fear, if you want portability for traditional for containerized microservices applications, you assume kubernetes, that's how companies companies are thinking about it. And so that's the first thing that we did now. The second is you've got developers building applications all over the place. So now, just like you used to have physical server sprawl and now and then VM sprawl these days you have cluster sprawl, kubernetes, cluster sprawl and tons of mission control affects as a multi cloud, multi cluster kubernetes control plan works on the chaos and everything else that some of the Sun. The third point of Tanzania is the developer experience and we have introduced Andrew application platform, which is really focused on delivering a great developer experience on top of any Cuban Aires. So that's really how we're building out the towns of portfolio. And then of course we got Spring and uh as you well know a majority of enterprise applications today are java and if you want to modernize java, you use spring boot and so we had tremendous success with our uh spring boot technology and our startup, Springdale Ohio capabilities and so on and so forth. So that's the entirety of the towns of portfolio. It's multi cloud, it's kubernetes agnostic. Of course it runs great on this fear but it's really the approach making developers productive in the enterprise >>awesome. Thank you for that. I know we're tight on time but it's like speed dating with you raghu. So I'm gonna go on to another topic. Really important topic of security, you've made obviously some big acquisitions, there are things like carbon black, you've got a lot of stuff going on with, with, with endpoint, with end user computing, I'm first interested in sort of how you organize it looks like you're putting security and the networking piece together and then what's your swim lane? It seems like you're, you're focused obviously on your infrastructure. You're not trying to be all things to all people. Help us understand your strategy in that regard. >>Yeah, I mean security is a massive space, Right? And you covered very well. Hundreds and thousands of security problems that customers want to be solving. What we are focused on is how do we simplify the security problem for the customers? And we're doing it through three wells. The first one is we are baking security into the platforms that customers used ones. Right. But there are more obvious fear our workspace one, our container platform etcetera, etcetera. Right? Cloud platforms. So that's the first thing that we're doing. The second is we are putting um, bringing together, we're taking an end to end view of security, which is everything from an end user connecting from home to the corporate network or the sassy, sassy applications to the Windows devices they are using to the data center applications they're using to the club. Right? So we're taking a holistic view of security. So which means we want to combine our network security assets with our endpoint security assets with our workload security assets. That is why we bought all of those things together under one roof. And the third is we are instrumental in all of these and collecting signals from all of these and pulling it into the cloud and turning security into a machine learning and the data problem, right? And that is where the problem. Black cloud comes in and by doing that, we are able to provide a holistic view of where uh customer security posture, right? And these sensors can be on BMR platforms, on non BMR platforms etcetera. And so so that's really how we are approaching it. I mean there's the emerging industry term for a policy XDR. You might follow that. So that's really what we're trying to do. >>Outstanding. Last question and I know, I know we got to go. You mentioned the spin that's happening in november. That's an exciting time for a lot of reasons. I think the ecosystem, you know, emphasizing your independence but also gives you control of your balance sheet, regaining control of your balance sheet, tongue in cheek there. But it's important because all this, this cloud build out this multi cloud, exposing the primitives, leveraging the primitives and the A. P. I. S. Of these clouds making them identical across all these estates. That's not trivial and you're obviously gonna need resources to do that. So maybe you can talk about that and how you see the future playing out organic inorganic, maybe a little lemon A in there. What's your approach? How are you thinking about that? >>Yeah. So we are very excited with the impending spain, which like you said is on track to happen early november. Um and if you think about the spin, there are three aspects that we are excited about. The first aspect is uh we have a great relationship with Dell Tech, the company right. What we have done is we have codified that into a framework agreement that covers the gold market and technology collaboration and we are super excited by that and that baselines against what we do today and then as incentives on both sides to continue to grow that tremendously. So we're gonna continue being, doing that and that's going to continue being a great partner at the same time. From a partnership point of view, is truly going to be a Switzerland of the industry. So previously companies that were otherwise a little bit more competitive with dull now no longer have that reservation in partnering very deeply with us. I'm totally, like you said from a capital structure point of view, it gives us the flexibility to use to do em in a should we decide to do so in the future right? And use both equity and cash for them in a so so that's the capital structure, flexibility, the Switzerland positioning and the continuing great relationship with dull Those are the benefits of the spin >>love and the partner ecosystem has always been a source of, of innovation and it's a big part of the flywheel, the power of many versus the resources of one Ragu, Thanks so much for coming back in the queue. Best of luck. We're really excited for you and for the future of VM ware. >>Thank you and thanks for all the great work that you do and look forward to continuing to read your great research, >>appreciate that. And thank you for >>watching the cubes, continuous >>Coverage of VM World 2021. Keep it right there. >>Thank you. Mhm. Yeah.

(bright music) >> Announcer: From around the globe, it's theCUBE, with digital coverage of AWS re:Invent 2020. Special coverage sponsored by AWS Global Partner Network. >> Okay, welcome back everyone to theCUBE Virtual Experience here for re:Invent coverage 2020 virtual. Normally we're in person doing interviews face to face, but we're remote this year because of the pandemic. We're here for the APN partner experience, kickoff coverage with two great guests, Rima Olinger, of global lead for VMware cloud on AWS. And Aarthi Raju, Senior Manager Solutions Architecture for Amazon Web Services. Thanks for coming on, appreciate it. >> Good to be with you John, thank you. >> So I got, want to get it out there this partner network experience, it's really about the ecosystem. And VMware has been one of the biggest success stories. They've been around for a long time, and not one of the earliest ecosystem partners, but a big success. 2016, when that announcement happened, a lot of people were like, whoa, we VMware is giving into Amazon. And Amazon was like, no, that's not how it works. So turns out everyone was been proven wrong, it's been hugely successful beneficial to both. What's the momentum, share an update this year on the AWS VMware momentum. >> So John, as you know, we're into our third anniversary, and the relationship cannot be any stronger. We see customers are leaning into the service very heavily. We see great adoption across multiple industries. As some data points for you, if we look at October of this year to October prior year, we're seeing the number of active nodes, or the number of consuming host and active VMS, nearly doubled year over year. we also continue to see greater partner interest in the solution, we have over 300 ISVs that have validated the services on VMC. And we see over 600 plus partners that continue to take the competencies and build practices around it. So the momentum is very strong, for years still today. >> One of the comments I made when the naysayers were like kind of pooh-poohing the deal, I was like, no, no, the cloud growth is going to be a factor at that time, then, the trendy thing was software's eating the world, was a big trend there. If you look at the growth of cloud scale, and software innovation, and the operating side of it, 'cause VMware runs IT, they let operators running IT. There's no conflict because Amazon's growing and now the operator roles growing and changing. So you have two dynamics going on. I think this is a really nuanced point for the VMware, AWS relationship around, how they both fit together. Because it's a win win better together scenario, and it is on AWS, which is a distinction. Can you guys share your reaction to kind of that dynamic of operating software at scale, and how this translates for customers? >> Absolutely, we see a lot of benefits that this service is bringing to the customers. Because what it's doing is providing them with this consistent infrastructure and operations across hybrid cloud environments. And in this way, they have the choice of where to place their applications on-prem or in the cloud, specifically. And this is one of the reasons why AWS is a VMware's preferred cloud provider for all vSphere workloads. We see the customers gravitate towards it and be receptive to it specifically because they say I accelerate my path towards migrating and modernizing my application. It provides me with consistent as I mentioned, operations and infrastructure. And it also helps them with factoring, and helps us scale their business and very fast, very seamless fashion. Aarthi what is your perspective, maybe additional things. >> Yeah. >> Yeah, from a technical innovation perspective, the momentum, John has been very strong, especially, listening to what customers have been asking us the past couple of years. 2020 has been a big year for us in terms of launching some giant innovations. A couple of things to call out is, we launched the VMware Transit Connect. This was announced during VMworld this year and customers have been telling us, hey, we are migrating workloads from on premises to the cloud, we need a simplified way of connecting all these resources on-prem resources, resources on VMware cloud on AWS, and their AWS native resources as well. So, the VMware Transit Connect, uses the AWS transit gateway that we launched at re:Invent two years back to provide that simplified connectivity model for our customers. The next big thing this year was, we introduced a new instance type i3en.metal, So customers have been telling us they want denser nodes for especially storage heavy workload. So we launched this i3en, that comes with approximately, like 45 terabytes of storage per node. So that's a lot of storage for individual nodes. So customers have been taking advantage of these dense nodes as well. There was other areas that we kind of focused on from a lower entry point for our customers. When we initially started the service, John, you know that we had, the minimum entry point as four nodes, we've scaled that down to three, and now we've come to two nodes, giving the same production SLA for customers. The other big launch this year was the acquisition of Datrium by VMware and how we introduce the VMware cloud disaster recovery. Datrium uses the eight native AWS services like S3 and EC2, providing customers this low cost TR options. We're talking about the APN here and for partners, we launched the VMware cloud Director Service, which delivers multi-tenancy to our managed service providers, so that they can cater to small, to medium sized enterprises. >> What are some of the other use cases that are the key in these migrations, because this becomes a big benefit we're hearing, certainly, during the partner day, here at re:Invent, is, migration, cloud SaaSification, getting to a SaaS, but not losing the business model. Either was on premises or born in the cloud, this done new operating models, the key thing, what are some of the key use cases for partners? >> The most widely adopted use case that John, which you rightfully touched on, is really the cloud migration. We see around 41% of customers use the service just for cloud migrations. Now, this could be an application migration, like SAP, SQL server or Oracle Applications, or it could be a complete data center evacuation. And we see that with some customers who have a cloud mandate, or they have refresh cycles that are coming up, or maybe they're in a colo, and they're not happy with their SLA. I could use the example of William Hill, is one of the customers largest betting and gaming companies that are in the UK. And what's the use case was, a combination of a data center extension as well as a capacity expansion specifically. And what William Hill was able to do is, move 800 on-premise servers, and they decommission them in the first 12 months. And they also migrated 3000 VM. So that is cloud migrations is a big use case. The second big use case, as I mentioned earlier, is the data center extension that includes also VDI, the combination of both is around 42% of the use cases, with around 26%, I would say for data center extension and 16% for VDI. Why, customers want to expand their footprint, they want to go to a new region, and they want to meet on demand, cyclical capacity needs, or sometimes temporary needs for some events or some seasonal spikes. So we see that as a second big use case. A third one equally important, tend to be disaster recovery. Now, this is either to augment an existing DR. Replace a DR that is already in place, or start a new DR, and that constitutes around 17% of the use cases that we see. Because customers want to reduce their DR, avert some cost by moving to the cloud. And one example that comes to mind is Pennsylvania Lumbers Men's Mutual Insurance, it was a DR use Case. They worked with an external storage partner of ours faction in order to put that in place. So overall a great use cases across the board. And I know a big one is application modernization, Aarthi, I know you work with your teams on that, if there's any feedback from you on that. >> Yeah, the next generation applications or application modernization comes a lot. We talk to like AWS customers who are migrating from on-premises to the cloud using VMware cloud on AWS. And three or four years back as we were building the service and architecting, one thing was very evident, like we wanted to make sure that as we were building the service, we wanted to ensure that customers can take advantage of the native AWS services. We've got 175 plus services and new services launching at re:Invent, So we wanted to make sure that there is this, seamless mechanism and seamless path for customers to modernize using native AWS services. So what we've done as part of like onboarding for customers and as customers built on VMware cloud on AWS, is provide them both the network path and data path. So they can as your into the same availability zone or region, they're like, hey, I can use S3 for backups. I can use EFS, for file shares, etcetera. So we're seeing a wide range of next generation application use cases that customers are building on. >> Why would I get at the reasons why customers are continuing to adopt VMware cloud on AWS? Can you guys share an update, I'll show you the obvious reasons, the beginning was nice strategy for VMware, it's proven to be clear. But where's the innovation coming from? What's the key drivers for the adoption of VMware cloud on AWS? >> So one of the key patterns that we are seeing is, customers who used to be risk averse, customers will be invested a lot in VMware. And at the point, they did not want to move their workloads or applications to the cloud because of the risk involved, or sometimes they didn't want to refactor, or they were worried about the investment in tools, resources, they tend to gravitate towards this solution. The fact that you could provide your customers with this consistent infrastructure and operations across on premise, as well as on the cloud environment. The fact that you do not need to do an application refactoring. You could optimize your workload placement, based on your business needs, you could move your workloads bidirectionally, you could either leave it on-prem, or move it to the cloud, and vice versa. We've also noticed that there is a lower TCO associated with the use of the service. We know from a study that VMware commissioned Forrester in 2019, for that study, that 59%, there is a recurring savings in terms of infrastructure, and operational savings that is related to that. Customers tell us that, this consistency in infrastructure is translating it, into zero refactoring. This consistency in operations, is leading them to use their existing skill sets. And with the ability to relocate the workload skill into the environment that best suits them, that is providing customers with maximum flexibility. So I would say it is delivering on the promise of accelerating the migration and the modernization of our customers applications so that they can continue to respond to their business needs and continue to be competitive in the marketplace. >> Aarthi I want you to weigh in and get reaction to that. Because again, I've talked publicly and also privately with Ragu, for instance, at VMware, when this was all going down. It's a joint integration, so there's a lot of things going on under the hood that are important, what are the most important things that people should pay attention to around this partnership? Could you share your opinion? >> Yeah, sure, John. So one of the most common questions that we get from customers is, hey, this is giant integration, we can take use of make use of native AWS services, but what are some of the use cases that we should be targeting, right? As we talk to customers, some of the common use cases to think about is, it also depends on the audience. Remember, admin scoring example, who might not be familiar with the AWS side of services, they can start with something simple like backing up. So S3, which is our simple storage service, we see that use case way more often with our VMware cloud on AWS customers. This also ties with that Datrium integration that I talked about with the VCD or the VMware cloud disaster recovery, providing that low cost TR option. We are also starting to see customers offload database management, for example, with Amazon RDS, and taking advantage of the manage database service. As we talk to more customers, some of the use cases that comes up are like, hey, how do I build this data lake architecture? I've migrated to the cloud, I want to make use of the data that I have in the cloud now, how do I build my data lake architecture or perform analytics or build this operation resiliency across both these environments, their VMware cloud on AWS, as well as their native AWS environments? So we've got that seamless connectivity that they can take advantage of with VMware Transit Connect, we've got the cross account ENI model that we built, that they can take advantage of. And he talks about this one, and talks about the security is always job zero for us. And we're also seeing customers that take advantage of the AWS services like the web application firewall or shield, and integrating it with the VMware cloud on AWS environment. And that provides a seamless access right? You now have all these security services that AWS provides, that allows you to build a secure environment on VMware cloud on AWS. So providing customers the choice has always been a priority, right? We're talking about like infrastructure level services. As we move up the stack, and as customers are going through this modernization journey, like VMware provides containerization option using VMware Tanzu, that came out at VMworld. And then they also have the native options, we provide a EKS, which is our Kubernetes as a managed service. And then we also have other services that enables customers to take that jump into that modernization journey. One customer we've been working very recently with is PennyMac. They migrated their VDI infrastructure into VMware cloud on AWS. And that's allowed them to scale their environment for the remote workers. But what they are doing as part of their modernization journey, is now we're helping them build this completely serverless architecture, using Lambda on the AWS cloud. >> Yeah, that's really where they see that, the value is high level services, the old expression prima, they use the hockey from Wayne Gretzky skate to where the puck is going to be, or, get to where the ball will be in the field. This is kind of what's happening, and I'm kind of smiling, when Aarthi was talking because, I've been saying it's been, going to, IT operations, and IT serviceman's is going to change radically so years ago. But you're really talking about here is the operating side of IT coming together with cloud. VMware, I think is a leading indicator of, you still got to operate IT, you still got to operate stuff. Software needs to be operated apps need to be operated. So this new operating model is being shown here with cloud, this is the theme with and without IT. With automation, this is the big trend from re:Invent this year. Obviously AI machine learning, you still got to operate the stuff. It's IT, depends on, we got lammed in automation doesn't go away, the game is still the same, isn't it what's happening here? >> Absolutely, so what we're saying is, once there's that you're absolutely right about the fact that they needed to, worry about the operations, once they migrate their workloads, they're taking their data, they're saying, how do I make sure that I put in place operational excellence, and this is where, AWS comes in, and we provide them with the tools needed to do that. And then step number two, say, what can I do with this data? How do I translate it into a business benefit? And this is where the AI ML tools come in place, and so forth. And then the third step, which is all right, what can I do to modernize these applications further. So you're spot on, John, in saying that this is like a transformation, it is no longer a discussion about, migration anymore, it is more of a discussion about modernizing what you have in place. And this is, again, where this brilliancy between the collaboration, between VMware and AWS, is bringing to the table, sets of tools and framework for customers, whether it's security framework or networking framework, to make the pieces fit together. So I'm very excited about this partnership. And we continue to innovate, as you heard in prior discussions with our executives on behalf of our customers, we spoke about the RDS Amazon, relational database service on vSphere. We spoke about how to post on VMware cloud on AWS, to bring the cloud to the customers data center for specific needs that they have in spite. And we're not stopping here. We are continuing not to make more joint engineering and more announcements, hopefully in the future to come. >> That's great insight. And a lot of people who were commenting, three, four years ago, when this is all going down, they're on the wrong side of history, that the data is undeniable, refutable, it's a success. Aarthi give us the final word, modern applications, modern infrastructure, what does that mean, these days? What's the bottom line when you talk to people out there? When you're at a party or friends or on zoom, or a Jime, in conference? What do you tell people when they say, what's a modern application infrastructure look like? >> Yes, the word modern application, the good or bad thing is it's going to, what I said yesterday could be different from what I'm saying today. But in general, I think modern application is where we enable our customers to focus more on their business priorities using our services, versus worrying about the infrastructure or worrying about like, hey, should I be worrying about capacity? Should I be worrying about my operational needs or monitoring? I think we want to abstract all that. We want to take that heavy lifting off of customers and help them focus on their business. >> Horizontally scalable and leveraging software in the application, can't go wrong with that formula in the cloud. Thanks for coming on, and thanks for the awesome conversation. Thanks for coming on. >> Thank you John. >> Thank you >> Okay, it's theCUBE Virtual for re:Invent Experience 2020, this is virtual, not in person this year. I'm John Furrier, your host from the theCUBE, thanks for watching. (bright music)

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome to the Cubes coverage of VMRO 2020 Virtual this The Cube Virtual I'm John for your host, covering all the action for VM World not in person. This year it's virtual, so we're bringing you the virtual interviews remotely. We've got two great guest here. Marc Lemire, senior vice president general manager of the Cloud Services business unit at VM Ware and David Brown is the vice president for two at AWS Amazon Web services. Both Cube alumni's great to see you guys remotely Thanks. Coming on eso i first vm worlds not face to face. Usually it's great event reinvents Also gonna be virtual again. It's, you know, we're gonna get the content out there, but people still gotta know the news is gonna know what's going on. Um, I remember three years ago, I interviewed Pat Kelsey and Andy Jassy in San Francisco on the big announcement of AWS and VM Ware Uh, vm ware on a W s. Really? Since then, what a great partnership Not only has VM where have cleaned up their clarity around cloud. But the business performance mark has been phenomenal. Congratulations. All the data that we're reporting shows customers are leaning into it heavily Great adoption and super happy success. A US congratulations as well for great partnership. Mark three years, Uh, with the industry defining partnership. Ah, lot of people were skeptical. We're on the right side of history, I gotta say, we called >>it. That's right. It's an update. Yeah, No, look, we're super excited. Like you said, It's the third year anniversary of this game changing partnership and look, the relationship could not be stronger right across engineering the product teams to go to market teams really getting stronger and deeper every day. And at the end of the day, you know, of course, what it's about is innovating on behalf of our customers, delivering compelling new capabilities that allow them thio, migrate and modernize. And, you know, look, we're just really pleased with the partnership, right? And I think, as a result of that depth of joint engineering, building and delivering the service together, you know, we're proud to be able to say that it addresses are preferred public cloud partner for the Starbase workloads. >>You know, I remember at the time David talking to Terry Wise Ah, native West Side and Andy, of course on Ragu the architect for this vision of the partnership. And this changed how vm Ware has been doing partnerships on. I want to talk about that because I think that's a great use case of what I call the new cloud native reality that everyone's living in. But before we get there, Mark, there's some news tied around AWS and VM. Where could you take a minute to, uh, share the news around what's going on with VM World 10 0 You got connect. You got all kinds of enhancements. Just the update on the news. >>Yeah, sure. So you know, we continue Thio, listen closely to our customers and continue to deliver them new value, new capabilities and a few things we're gonna highlight at being world. The first is we've heard from many customers, you know, they love the ability to rapidly migrate their visa service workloads to the AWS Cloud and VMC on AWS is really a game changer. From that perspective on dso that continues to be really, really compelling use case for many customers. But what they've also said to us is, Look, it's not just about migrating to the cloud. It's also about migrating and then modernizing. And so, together with AWS, we have really brought together the richest set of tools for our customers to enable them to modernize those applications. Of course, we've talked about before. Customers have access to the full rich set of AWS services on Ben within VM or called on AWS. We're now announcing support for native kubernetes capabilities within VM Ware Cloud in eight of us taking advantage of the VM Ware Tansy Communities, good service. So we're really excited about bringing that that service in particular to our joint customers and then three other kind of key innovation that we're going to be talking about is around networking, right? And as our customer environments get larger and larger and they're looking to create a fairly sophisticated apologies between their on Prem Data Center between multiple VMC and AWS instances and between perhaps multiple native aws vpc s, we've done a lot of work together to really simplify the way that customers can connect all those environments together. Onda, maybe Dave wants toe talk a little about that. >>It did chime in. What's What's the news on your end to? What's the relationship and an update from the Amazon side for VM World? >>Yeah, absolutely. I mean, the partnership has just been incredible working with being where Right, Right? Right from four years ago, when we first started with the idea of what could be a W s and beyond where do together. I think we've seen really deep engineering engagement, but also leadership engagement on support from leadership on both sides was really set. Set us up for the partnership that we have today, which has been phenomenal. You know, Mark was just talking about the transit connect feature that beyond whereas adopting and what you really seen, there is years of innovation on the networking side of the sea to where we've really understood deeply what customers need from a network. Understood the fact that they're trying to recreate some of those large networked apologies that they're doing on premise on, then trying to support them in a cloud way of supporting them in a cloud about, like, way. And so, you know, transit gateways to service under the hood that we released about two years ago. It reinvent. And so what we've been doing with being where he's working out. What is Transit Gateway mean within the VM Ware environment? And so really bringing customers that that rich connectivity that they need? You know, whether it's between the BBC's between the VM Ware environments, even back to on Prem or between regions on DSO. That's what transit connect now on being where it's gonna be utilizing and bringing to customers we're pretty excited about. You know what that means for our customers? >>You know, one of the trends I see coming out all the announcements. David, I want to get your thoughts on it because we talked briefly a few months ago, uh, for your summit virtual. But I want you to kind of put it in context of VM Ware because you're seeing virtualization of physical things. You know, Nick's with Project Monterey and all that stuff with within video and software. You see to you guys have seen this vision not just compute, but you talk about networking. You know, you have the really the first time this convergence of physical own software virtual and This is not new to you guys. I know this is the premise of Amazon Cloud. First, you have the building blocks as three NBC too. But now a slew of other services. But this trend is gonna continue. Certainly with covert and work at home, there's mawr need firm or compute more different kinds of compute. You got the physical layer from the network of the devices. This isn't gonna go away. I mean, I would just need some interviews about Space Force, and they're talking about software to find, um, devices you can't do break fix in the space. So you know all this is gonna be done with software and this idea of the physical virtual coming together I mean, I know I love the Virtual Cube were not in person, which we were. But this virtualization trend around the hardware this is this'll is all about the sea, but the sea spinning for years. How does that relate >>to be inward customer? So, I mean, I think the VM ware customers experience which realization right long before ec2 was around as well. When being we're back in the day with being workstation, uh, it's it's kind of central to what they've been able to do, you know, being able to virtualized environments, being able to stand up environments ready very quickly on a physical machine is what the English board for the customer, Easy to started in a similar place. You know, the strength of the C two is being able to get a B m in a few minutes. Andi, you know, we've just grown the what we can support in a virtualized world. So you think about where we started with very simple machines, you know, today is supporting things like HPC and and advanced. You know, accelerators like GP use. And if p g A s and so we've already pushed the virtual world now, interestingly enough, you know, Vienna is obviously doing the same thing with their hyper visor. You know, many, many happy customers there. The really interesting thing it was through the innovation that we were doing on the easy to side to work out. How do we really get the most out of virtualization? Historically, virtualization is being played with things like jitter and just performance. You couldn't really get the network performance there with CPU would stall and those are sort of the old issues. The cloud in the innovation we've been doing is largely gotten rid of those. And so it's actually almost the the the ability to remove the virtualization from easy to. That really was the ingredient that enabled us to allow VM Ware to run on this. And so that's where it all started. Back in late 2016 we started to work with my team saying, You know, we've actually built the ability through our nitro system, um, to not require our virtualization layer. And then we could replace that virtualization with the VM Ware virtualization layer and that that set us up for what we have today, right? That that made VM ware on AWS a reality that gave the VM Ware customer you know, the full VM ware virtualization support, which is what the applications have been. Both Paul, that's what they've really come. Thio love. I don't want to change all of that when they moved to the cloud and so being able to move those workloads to the cloud for being where you know on on AWS and and get the benefit of great hardware design together with the great opera visor from being where obviously, it's a virtual the end of the day with a lot of innovation that we need to make him that >>mark. I wanna get your thoughts on this because I remember when we again years ago when we covered it again on the right side of history of the prediction, we said It's gonna be a great thing, afraid of us. And the end where some of the other commentary was at that time was Oh, my God. VM was lost at the capitulated Amazon is gonna suck all the thousands and thousands of VM where customers into the cloud and they're gonna eat him up in Vienna. Where is gonna be sitting there? Uh, you know, inside of the road. Okay. Not the case. Your business performance has been exceptional. Okay? The customers have been resonating with the offering. It's been a win win. Can you talk about the business momentum and how this continues to go? Because again, everyone got it wrong on that side. This has been exactly how you guys had heated up. I mean, a little bit here, and they're not exactly, But from a business perspective, it hit the mark. What's your thoughts? >>Yeah. No. Look, we've been incredibly pleased that the customer adoption that we've seen for the service, um, in fact, you know, the total workload count on the service has increased by over 140% versus this time last year, right? So clearly, customers are adopting the service at a large scale on growing rapidly. But I think you sort of feel that killed that back a little bit, right? It's It's really driven by three use cases and the value that we're able to deliver the customers right? And so if you're a customer, that's gotta be severe based workload in your own data center, and you want to move to the AWS Cloud. You know the fastest, lowest cost lowest Chris Way to move that workload is using VM Ware Cloud on AWS, right? And so it's that use case. It's powering a lot of that consumption. Another interesting use case that Xdrive in a lot of demand and that we continue to invest and expand is disaster recovery, right? So there's some customers that still want to run some more clothes in their own data centers, but they'd like to build leverage the public cloud as a target for disaster recovery. And you think about it you're talking about, you know, Cloud delivered as a service and the elasticity and all of those benefits. Those really playoff strongly in the d r use case where you Onley really want to spend up that capacity in the scenario where you actually need it, right in the case of a natural disaster. And so VM were recently acquired a company called Atrium and we're using that technology to enable a new service we call VM Ware. Cloud D are on top of the VMC on AWS offering, and this is a really powerful capability because it allows our customers to significantly reduce the cost of disaster recovery by taking advantage of AWS is low cost s three storage, combined with some unique capabilities in the day trip service that allows us to store the V M. D. K. Is very cost effectively on the next three storage. And then, in the case of a disaster, we can spin up those hosts. You know, they've talked about the nitro host. I've been spin up those bare metal host with the being more hyper visor on it and automatically restart those workloads without requiring any. VM conversion is because, of course, it's all all these fear based, right? So you know, it's so we're really pleased with the business performance, but you know, sort of behind that, of course, is the value that we can deliver to our joint customers together. >>You know, the integration thing is interesting again. I think the success is that there's a partnership at the highest levels and trickles down into engineering. David, talk about what's next for AWS because, you know, after cloud, you've got cloud native integrations. They're gonna be needed across more partners and more customers. Um, but they don't wanna do the heavy lifting, right? So So if I'm a customer like, hey, you know what? I just want Mawr Cloud scale. I want more cloud capabilities, but I don't want to do all this integration. How does how does Amazon view that conversation? Because again, that's one of the things that every interview, every reinvent every time I talk to Andy and the team. It's undifferentiated, heavy lifting what our customers asking for free from from you guys. VM, where customers and What's the What's your thoughts on this? What do you guys thinking about right now? >>Absolutely. I think market head on a couple of key points there as well or at the customer in this case, off. I have a workload today that I run in my data center or running a cola facility, whatever it might be. And I run it for many years, Um, in many cases working with customers in industries like healthcare and finance. You know, where they've actually had these thes applications qualified or certified? I'm to actually one on that hardware. And so, you know, requiring them to move to a different hyper visor is obviously a ready they'd lift and may slow down the ultimate migration to the cloud. Um And so having vm ware cloud on AWS and the ability to say to those customers, you know, just bring your application and you'll workload and and honestly the benefit of the entire ecosystem that VM Ware provides and come and enjoy that on AWS and burst into aws eso that's just been enormously beneficial for our in customer, For AWS is probably aware. I think that's the thing that really makes the partnership incredibly strong. And from there, you know, these customers can pivot. And so one of the things that we've been doing together with Vienna, where is ongoing innovation? Right. So we recently just launched, um, support for our I three n uh storage instance type, which offers up to 50% discount storage per gig with VM ware. And there's a lot that went into that behind the scenes to make sure that that instance type is perfectly tuned for what VM were needed for their end customer. We're very excited to get that out. There are many, many customers so excited about the benefit that that brings to them, right? So they're getting all the benefit of AWS innovation while they keep the benefits that they've been enjoying on the VM Ware side. Um, and you know, that speaks to the largest sort of approach that AWS has taken in in several industries across several industries. Right being where, I think is probably the best example of that. But if you look at many other areas like our networking products, customers will often come to us and say, you know, I love using a certain type of load balance. So I love using this firewall. Um, you know, within my environment. And we have great partnerships of all those companies to say if your customer, while joint customer, wants to use whatever appliance, whatever application, you know, we have a full market place full of thousands of applications that are all certified to run on us. We want to make sure we can meet those customers where they are and simplify the immigration story for them as much as we can. >>All right, So I gotta put you guys on the spot. Mark will start with you, but you can't get the same answer. Um, to the same question. The question is, what are the customers most happy with with the partnership from a feature perspective? What's the one? What? What would you say, Mark, um is the big Ah ha. This really is amazing. I'm so happy because of this feature capability. >>Yeah, yeah, I mean, a little bit back to the discussion we're having before, but I think you know the killer use case Really for the service today is that cloud migration use case I was talking about before. And if you think about what it might have taken them previously. Right? Uh, you know, expensive time consuming. Um, you know, it requires changes to their environment. In some cases, with with VM or cloud on AWS, we could take the cloud migration that would previously been taken them perhaps years, millions or tens of millions of dollars. And we can shrink that down toe literally months, right. We have some customers like m i t. That migrated hundreds of applications literally over a weekend. Right. And we're able to do that because it's the same core enterprise Class V, and where capabilities of the customers already optimized their application to run on in their own data centers that now we've enabled on AWS as a cloud service so that that cloud migration use case kind of combined with the fact that we're, um that were delivered to them as a service in the AWS cloud. I think is, uh, you know, one of the one of the use cases that a lot of customers find extremely attractive. >>Alright, David, your turn from an M. A w s perspective. What are people happy with you for on this partnership? What praises? Are you getting some your way When someone says, Hey, man, this partners has been great. Amazon really is awesome for this. What would you say to that? >>Eso, you know, watch book about the migration I was going to choose sort of, You know, once they're in aws, um, the benefits of the power brakes writes the ability to scale on the mind. E think one of the great things about the record in AWS that VM Ware did is already built it as a cloud native service. And so, you know, the customers are able to provision additional capacity very easily. We have that capacity available on AWS, and so they're able to meet any sort of unexpected demand of scale. Um, and then together with the breadth of services that we have on a diverse is Well, you know, you and we've we thought very carefully about how being were customer would want to consume those and to make sure that the whole system set up to allow that to happen. And so allowing them to to broaden what they're using over time, is there. Engineers and teams find other services that allow them to innovate faster and, you know, bold more interesting applications so that it integrates incredibly well between AWS and VMware and customers benefit from that. >>I wanna ask you guys, um, or in the industry side, um, to comment on cloud native, um, mainly because one we cover it into it's kind of important trend. Um, recently, snowflake went public with the largest i p on the history of the of Wall Street, and it's an enterprise company. Okay, Um, and I was using that as an example because actually being where was the second most popular, uh, Hypo happens to be another enterprise company if and I was commenting on this, and I want to get your reaction to it And that is, is that if you look at the mega trend that's going on now, of all the things people talk about, it's the cloud native That's the most interesting, because this is all the value. If you look at the modern applications all the way down to the networking, everything in between. It's all about cloud native, And it's not just about cloud public cloud. It's not about It's an operating model when we talk about that. But Cloud native is the big wave that people are on. And if you're on it, your modern. This is not just hand waving. It's legit. I mean, you're seeing benefits of it. You're seeing speed, time to value all the things that people talk about, it, the events. Could you guys comment on why Cloud native is so important today and why customers and developers should be really thinking through what that is for them. Um, David will start with you. >>Absolutely. So for us part native really means, you know, have you built your application in a way that takes advantage of the benefits of the cloud? And so are you able to scare the application horizontally? Are you able, Thio? You know, building away That's redundant Across multiple data centers. Are you able to utilize services that are provided by, you know, aws, the cloud provider Thio to not have your teams build that And so what it ultimately means is you're able to spend more time focused on on building stuff that really matters. You know, if your application So you mentioned Snowflake, you know there are a great AWS customer work very closely with them and and they're able Thio, have us around a lot of the infrastructure, all the infrastructure for them in the power. And they can really focus on building an absolutely incredible data, whereas in solution for their end customer and we innovate very closely with them. And so that's really what it means, you know. And I think organizations that have gotten themselves there ready get a lot of benefit. They're able to innovate faster. They're able Thio deliver more to the end customer. You know, we spent a lot of time with companies that you wouldn't say a cloud native today and as a cloud provider, azi exciting as it is to support the cloud native customer, it's also incredibly important that we find a way to support the company. That's on a journey towards adopting the cloud, right? They've got a long history. Maybe they've been around for many, many, many years. Andi, I've got a large application stack that they need to move. And so that's where our migration programs really support customers. You need to bring non card native applications and then we're able to work with them over time to make them, you know, more cloud native and get a lot of those benefits. And so it's a journey that I think many of companies on. Some started there, and some have a way to get their differently. Has a lot of benefit. >>Isn't Snowflake really in Just a example of value creation? I mean, it's not about that. They're on Amazon. You're happy about that. But it shows that you don't have to go a certain way. If you create value, speed, scale speaks for itself. So that's just that could be an enterprise. That could be startup. That could be the Cube. It could be anybody, right? I mean, don't you see it that way? >>Absolutely. Absolutely. I mean, they had a great use case that a customer need. It's in a really interesting area, obviously dealing with big data. And so I think you know, there's there's really no limit there, >>Mark. You guys are in the modern app. That's what you're hearing. It's one of the things that people gonna wanna come out of co vid. They're gonna wanna have a growth strategy. Cloud native. Why is it important? And what's your take on this? What's your reaction to the cloud native being the big wave? >>Yeah, I mean, I think. I think Dave said it. You know very well. I mean, when I talked to customers, you know, regardless of where they are in that journey, they all have some form of digital transformation agenda. Right? And at the end of the day, they wanna deliver better services to their end customers because they know that's what different is going to differentiate them. Or they want a better empower their employees, right? And as part of trying to deliver that value to their customers, their employees, you know, they want to focus their time and energy on the things that really differentiate them. Right? And, you know, for many of them that that means, you know, they don't wanna have to worry about, you know, upgrading some infrastructure software, right? That's not that's not delivering value to their to their customers. And so, you know, I think as they go down that journey, you know, we're really pleased to be ableto partner. What they did you ask to be able to create these, uh, you know, these powerful platforms together between VM ware and AWS that really deliver a lot of value to customers and allow them to focus on what's important their business, right? And, you know, by bringing together those enterprise class VM, or capabilities that hundreds of thousands of customers trust for their most mission critical workloads. Combining that with eyes, they have talked about the possibility of agility, the scalability of the dust cloud and then sort of, you know, not just those existing workloads, but also enabling a rich set of new services those customers can take advantage of to modernize. You know, whether it's VM Ware services like I talked about before with our native kubernetes capability built into BMC or whether it's the you know, hundreds and growing portfolio abated bus services, you know, giving them all, giving them the power of that full toolkit as a service so they can focus on building value on top. I mean, that's e think, really they want an equation. But that's why so many customers are moving down that path together with us. >>Well, congratulations. I want to say to you because David Lynch has been digging into the buyer behavior data, looking at the what the budget projections gonna be and VM ware on AWS has been strongly performing, and it's doing really well. Congratulations. And David. Great to have you back on. And you got reinvent less than 60 days away. Can you give us a little taste, teaser and taste of what you got going on? I know you can't reveal, but what kind of generally we're gonna be seeing at reinvent, uh, with E c two and your team >>absolutely reinvents a little different this year. It's It's obviously virtual on, so we're pretty excited about that. We think it will bring a new flavor. And so there's a lot of planning going on both in terms of product delivery. It was a It was a great time of year for us as we finish up a lot about big releases aimed at reinvent, then obviously working on content and presentations. And so, you know, a lot of interesting stuff for customers to think about is that >>they're not revealing anything. You just you know. Okay, you're gonna have some announcements. I'm sure you see two. That's a big announcements. Exactly. Hiding the ball, as they say. David Brown, vice president of Easy to it. Amazon Web services. AWS, Markle, Omar s v P. And GM. A cloud Service business unit at VM Ware. Um, great partnership. Congratulations. We'll be following it. Thanks for coming. I appreciate it. Thank >>you very much. >>Okay, I'm John. For with the Cube. We're here in Palo Alto. Remote for the Cube. Virtual for VM World 2020. Virtual couldn't be face to face. We're doing our best with our cube virtual to get you the content. Thanks for watching.

>>from around the globe. It's the Cube >>with digital coverage of VM World 2020 brought to you by VM Ware and its Ecosystem partners. Welcome back to the Cube. Virtual 2020. Coverage of VM Ware, VM World 2020 Virtual. I'm Sean for your host of the Cube. Join with Dave Alonso. We got a great guest. Carol Carpenter, Who's the chief marketing officer of VM Ware Cube Alumni move from Google Cloud to VM Ware. Carol, great to see you. And thanks for coming on the Cube for VM World 2020. Virtual coverage. Thank you. >>Yeah. Thank you both for having me here. Delighted to be here. >>So we've talked about many times before, but you're very in the cloud. Native space. You know the market pretty well. I gotta ask you what attracted you to come to the end? Where what was the What was the reason? Now you're heading up marketing for VM. Where what was the driving force? >>Well, a few things, you know, Number one. I've always had a passion for this space. I love the cloud. I was involved in an early stage company prior to Google Cloud that really had the promise of helping people get enterprises, get to the cloud faster. Um, and when I, you know, look around and I Look which kind of which companies are shaping the future of technology? VM ware, Certainly one of those companies. Second reason goes without saying the people in the culture, incredible leadership and empowerment all throughout Vienna, where and it's it's quite exceptional. And the third is I really think customers are on a really tough journey. Um, and having been at a hyper scaler, having worked at places where you know, cos air in a more traditional legacy environment, it makes it made me realize like this is a tough journey. And I think the, um where is uniquely positioned to help enterprises with what is a complex journey, and it's a multi cloud world. I'm sure you know that our customers know it. And how do you make all these disparate systems and tools work together to deliver the business results? I believe the M where is uniquely positioned Thio. >>It's interesting. VM Ware is going to a whole nother level. We've been commenting on our analysis segments around the business performance, obviously, and the moves they've made over the years. This is our 11th VM world. Keep started 10 years. 11 years ago. Um, we've been seeing the moves so great. Technology moves, product moves, business performance. The relationship with the clouds is all in place. But then Cove, it hits, okay? And then all that gets accelerate even further because you've got, you know, companies that I have to use this downtime to re modernized. And some people get a tailwind with modern application opportunities. So it's interesting time to be, you know, on this trajectory with VM ware and the clouds, what's your thoughts? Because you join right in the middle of all this and you're in and I of the storm. What's your view on this? Because this is a, uh, forcing function for companies to not only accelerate the transformation, but to move faster. >>Yeah, for sure. You know, it's been an incredibly challenging time, I think for everyone, and I hope everyone who's watching and listening is safe. Um, you know, we talk about decades of progress being made in two weeks, and I guess that's the silver lining. If there is one, which is this ultimate work? Remote work from home that we've enabled and the work anywhere. It's been completely liberating in so many ways. Um, you know, it's an area where I look at, there's how we lead our teams and how do we maintain relationships with customers, which obviously requires a different type of interaction, of different type of outreach? And and then there's what are the solutions at scale And you know, im I pleased to say, like there were absolute big lifts in certain areas of our business, particularly around, you know, remote work and our digital workspace solutions, you know, really enabling companies to get thousands of workers up and running quickly. That, combined with our security solutions and our SD wan solution to really enable all of these remote homes to become thousands of remote offices. So there's all of that, which is incredibly positive. And at the same time, you know, I have to tell you, I joke, but I still haven't figured out where the bathroom is, you know, free three plus months. So that way I miss the human connection. I miss being able to just see people and give people a hug now and then when you want Thio >>e mean, VM. Where? Carol, It's amazing. Company. You mentioned the culture before. It really started as a workstation virtualization company, right? And then so many challenges, you know, and use a computing. You guys do an acquisition bringing Sanjay Poon in all of a sudden, you're the leader there cloud, you know, fumbled a little bit, but all of a sudden, the cloud strategy kicking on all cylinders, we see that, you know, growing like crazy. The networking piece, the storage piece you mentioned security, which is a amazing opportunity. Containers. They're gonna kill kill VM ware. Well, I guess. Guess what? We're embracing them. It seems like culturally vm where it just has this attitude of if there's a wave, you know, we're gonna ride it, we're gonna embrace it and figure out how to deliver value to our customers. What's your thinking on that? >>Yeah. I mean, it's such a VM ware, such an innovative company. And that is another reason that attracted me on disability to look at what customers need. Like, this is an incredibly were an incredibly customer centric company, listening to customers, understanding their needs and providing a bridge to where they need to go while also providing them the resiliency and needs they have today. That is what thrills me. And I think we have such an incredible opportunity to continue to drive that future innovation while also being that bridge. Um, I have to tell you, you know, I've known VM Ware for a long time, and what appealed to me is this broader portfolio and this opportunity to actually tell a broader business value story to be able to actually tell that story about not just digital transformation but business transformation. So that's what that's. That's the journey we're on and it's it's happening. It's really I mean, you look at all the customers, whether it's, you know, JPMorgan Chase to, um, a nonprofit like feeding America to, you know, large companies like Nike. It's really incredible the impact and value we could bring. And I feel that my job and the marketing team's job is, I tell them like they're all these diamonds in the backyard. It's just some of them are a little dirty, and some are they're just not fully revealed, and it's our job, todo and you know, dust them off and tell the story to help customers and prospects understand the value we could bring. >>That's how should we be thinking? How should we be thinking about that? That business value, transformation, business transformation? You you? Certainly when you think of an application's company that there's easily connect the dots. But how should we be thinking about VM Ware in that value chain? You an enabler for that transformation? Can you provide some color there? >>Yeah, let me give you some specific examples like Look at, um, so the addition of Tan Xue to the portfolio is what enables us to have these discussions that, let's face it, the only reason people need or want infrastructure is because they want to deploy an application. They want to write an application. They want to move an application. And Tan Xue, which is our container based, kubernetes based orchestration solution and lots more to it. That's what how it is in simple terms that gives us the ability to work with companies, lines of business as well as developers around riel. Business transformation. So two quick examples one. I can't say the name quite yet, but I think very large pharmaceutical company who wants to launch and have a mobile app to help patients. People who are taking Cove in 19 tests get the results, understand the results, ask questions about the results and have one place to go that's really powerful. And to be able to develop an app that is scale built for scale, built for enterprise, built to be resilient when patients are trying to get information. Um, in four weeks, I mean, that's pretty. That's quite incredible. Another example is, you know, very large e commerce company that, you know, you mentioned Cove it and some of the challenges we know retail has certainly been kind of, ah, tale of two cities, right? Some companies with lots of lift and others with real struggle in the physical world. But anyway, large retailer who had to within weeks flip to curbside pickup, Um, being able to look customers being able to look at inventory on demand, those kinds of capabilities required ah, wholesale rewrite of many of their e commerce applications. Again, that's a place where we can go in and we can talk to them about that. And by the way, as you know, the challenge is it's one thing to write and deploy an app, and then it's another to actually run it at scale, which then requires the networking, scalability and flexibility it requires. The virtual, um, storage. It requires all the other elements that we bring to the table. So I think that is the That's kind of the landing spot. But it's not the ending spot when we talk to customers. >>Carol talk about the challenge of VM World 2020 this year. It's not in person. It's one of them. It's an industry event. It's been one every year. It's a place where there's deep community, deep technical demos, beep deep discussions. Ah, lot of face to face hallway conversations. That's not happening. It's virtual. Um, you came right in the middle of all this. You guys pulled it together. Um, got a You got keynote sessions and thanks for including the Cube. We really appreciate that as well. But you have all this content. How did you handle that? And how's that going and and share some, uh, color on what it took to pull it off. And what's your expectation? >>Yeah, So you know. Yes. VM world is considered the gold standard when it comes to industry events. I mean, from the outside in this is the canonical I t event. And so I feel, really, you know, honored that this franchise is now in my hands and have an incredible team of people who obviously have been working on it for prior to my joining. So I just feel honored to be part of it. Um, this is going to be the world's largest VM world. And on the one hand, miss the energy in the room, Miss seeing people, everything you talked about, the serendipitous interactions that the food line or coffee bar. Um, but going virtual has so many benefits. Some of the things we were talking about earlier, the ability to reach many, many more people. This event is going to be 5 to 6 times larger than our physical event. And that's not even including the VM world that we're running in Asia in China. And the other thing that makes me super happy is that over 65% of our registrants and of the attendees here are actually first time VM world attendees. So this ability to broad in our tent and make it easier I mean, let's face it. You know, being able to fly, whether it was Vegas or San Francisco is originally planned. Stay in these expensive hotels and take that time it was. It's a big ask. So by going virtual, we actually have expanded our audience tremendously. Three other thing I am really excited about is we have 800 plus content sessions. We are following the sun. We have live Q and A after every session. We have really the best mobile app for any events, so I encourage you to take a look at that which does enable the chat interaction as well as you know, path funding through the many channels we have of contact. Its's Look, we're learning, and I'd love to follow up with you later to hear what you've learned because I know you've also been doing a lot. Virtually, I think the world is going to move to something that's more hybrid, some combination of virtual and small group, you know, in person, some local events of some sort. Um, but this one I'm super excited about, we we really have seen high engagement, and I just think, Well, I look forward to hearing everyone's feedback. E >>I think one of the things that we've been hearing is is that I can now go to the M world. I can participate now virtually it's it's kind of I would call First Generation writes me the Web early days. But you're right. I think it's gonna open up the eyes to a bigger community, access a bigger pool of data, bigger pool of interactions and community. And when they do come back face to face, people be ableto fly and meet people they met online. So we think this is gonna be a real trend where it's like the r A. Y of this virtual space is tremendous. You could do demos. You conserve yourselves, you could consume a demo, but then meet people face to face. >>And by the way, we have, you know, a tremendous number of fun activities. Hopefully you've taken part in some of them. Everything from puppy therapy Thio magic shows to yoga Thio Um you know John Legend legend performing. So I agree. I think the level personalization and ability to self serve is going to be out of this world. So yeah, it's just the best. >>Your event, just some key things that we can share with the audience. Cloud City has over 60 solution Demos Uh, there's a VM World challenge That's fun. There's also an ex Ask the expert section where you got Joe Beta and Ragu and other luminaries there to ask the questions of the That's the top talent in the company all online. And of course, you get the CTO Innovation keynote with Greg Lavender. So you know you're bringing the big guns out on display on it. Z free access. Um, it's awesome. Congratulations. We're looking forward Toa see, with the day that looks like after, So what's the story line for you? If you had to summarize out the VM World 2020 this year, what's coming out from the data? What are you hearing? Is the key themes, Actually, the tagline. You know, uh, you know, possible together, Digital foundation, unpredictable world. But what are you hearing, uh, in the virtual hallways? >>Well, a few things, but I'd say the top take away is that VM where has spread its wings, has embraced mawr of the different ICTY audiences and is driving business transformation for companies in new and pretty unique ways. What and then obviously like slew of announcements, new partnerships, new capabilities, everything around multi cloud we have. As you know, every single cloud provider is a partner on the security front, intrinsic security built in throughout the entire stack. The the other part that I I think it's super exciting are these partnerships were announcing everything from what we're doing with and video to make a i mawr accessible for enterprises in production to what we're doing around sassy, secure access Service Edge. Being able to provide a holistic, secure, distributed environment so that every worker, no matter where they are, every endpoint, every remote office could be fully secured. >>You know, in VM where is the gold standard of Of of the Ecosystem and VM world? Of course, they're all in the showcase and it was hard fought. I mean, it took a long time to get there, and you know, the challenges of building that. And now you mentioned in video. You see all these new tail winds coming in and and then I've seen companies launch at VM World. And so you know that ecosystem is, as I say, it is very difficult to build. But then becomes a huge asset because this just gives you so much leverage. A zone organization, your company's your partners, your customers. >>Thank you, Dave. Yeah, we're super excited. And I should say that like the partner and the ecosystem here is unparalleled. And our challenge is how do we provide? And you know, this Like, how do we provide the strategic vision and that practitioner level content? So we're gonna you know, that's what we're committed. Teoh is making sure that our practitioners get everything they need in every every area of expertise, as well as making sure we're conveying our business story. >>Carol, thanks so much for coming on. Really appreciate the inside one final question for you as we get through this crisis soon hybrid comes back for events, certainly. But as the CMO the next gen story, you now have a chief customer officer. We interviewed him. Well, the n words go to the next level. What's your goals? What are you trying to accomplish? And you've got a lot of things going on. Certainly a big story to tell. A lot of ingredients. Toe kinda cook a great, great story here. What's your goals? See him over the next year. >>You know, my goal is to help drive the business transformation and you've heard it from Submit. You've heard it from others at this point. But really, you know, the company is going We're going through a dramatic transformation from being, you know, ah, license on Prem Company to being a multi cloud, modern SAS company. So my goal is to support that. And that means modernizing the way we do marketing which, you know, you say, Well, what does that mean? It means customer focus, customer lifecycle marketing. It means agility, being able to actually use data to drive how we interact with customers and users so that they have those great experiences and they continue to use the product and Dr Adoption and Growth. And the other part of it is, um, b two b marketing, as you may or may not have noticed, is incredibly boring and dull. And I know I'm guilty of this, too. We get caught up in a lot of but jargon and the language, and I am on a mission that we're going to do great B two B marketing that helps customers understand what we do and where we express the value simply clearly and in in differentiated way. >>That's awesome. >>Yeah, Why should the consumer guys have all the fun? Right? >>Right, Well, and that's part of being, by the way a SAS or subscription company is. Everything we do needs to be consumer simple at scale and with the secure ability and the reliability of what an enterprise means. >>Well, I got to tell you that the irony of all this virtual ization of the world with Covic virtual events e one of the big surprise is we're gonna be looking back at is how much it's opened up Thio Mawr audiences and new ways of modernizing and taking advantage of that. Certainly with content in community, you guys are well positioned. Congratulations for a great event. Thank you for coming on and sharing your insights, and we'll keep in touch. We'll try. We'll try to make it exciting, Mister Cube. Thank you. Appreciate >>it. Thank you. Awesome. Thank you. Thank you, John. >>I'm Jennifer David. Lot Cube. Coverage of the M 2020 Virtual. This is the Virtual Cube. Have now virtual sets everywhere. All around the world. It's global. Thanks for watching

(soft music) >> Announcer: From around the globe, it's theCUBE with digital coverage of VMworld 2020. Brought to you by VMware and its ecosystem partners. >> Hello everyone, welcome to theCUBE's coverage of VMworld 2020. This is a virtual conferences as theCUBE. I'm John Furrier, your host, with Stu Miniman,Dave Vellante. We are in theCUBE virtual studios in Palo Alto, California, as well as in the Boston area. Stu, Dave in 2010 was our first VMworld. This is now 2020. What an unpredictable world. In fact, day one summary here for VMworld. This is the theme, a digital foundation for an unpredictable world, What a run? And again let's do a quick summary of day one security multicloud AI machine learning, hybrid cloud, modern apps, and networking is the theme. Dave, your reaction to day one. >> Well, you know, as usual, VMware has a bunch of announcements at its big show. And I guess I would say that one of the top jobs of a CEO is time expansion. And if you look at these announcements, I mean, Pat Gelsinger said, you got to ride the waves or you going to be driftwood. And they have done a phenomenal job of translating engineering into new opportunities and delivering customer value around that. And if you look at networking, the acquisition of NYSERDA and the early part of last decade, you know, multi-cloud is a huge opportunity for them. They're clearly a big player in that space security with the acquisition of carbon black, they've made Kubernetes security, acquisitions and others, there are app defenses in there. So they're going after security. They haven't, you know, made the Mark that they want to make yet, you know, modern apps. It's all about, you know, keeping VMware relevant, you know, project Monterey in hybrid cloud. They're obviously going to be a leader in hybrid cloud. And then the partnership with Nvidia and machine learning AI, it's kind of a checkbox, but VMware is such a huge install base. Everybody wants to do business with them and everybody wants to do business with Nvidia. So to me again, excellent job of time expansion and delivering customer value. >> And Stu, I want to talk about the VM world, you know, with a part of the experience of being there in person this year, there is no VMworld it's virtual. Normally you have the hang space. Do you have the two cube sets here, we have a link to the cube assets. All of our interviews that we normally do at the two sets, go check out the main link but everything is laid out on the webpage. You got cloud city more than 60 solution demos. There's a ton of content So it's kind of an asynchronous, but trying to pick up but a big gap there for normally, which is a real robust expo floor hang space. It's all virtual. Now they got to ask the experts, some other things with Ragu and Joe Beta among other experts, but a different field this year Stu. >> Yeah, definitely. John. I mean, this is one of those must see shows for just a huge ecosystem. We've seen that collision of ecosystem for the last few years. Of course, the epic partnership of VMware and AWS really has dominated a lot of the discussion in the last few years in this ecosystem. So everybody's going to the cloud. We've seen big adoption of the VMware cloud not just on AWS, but Dave touched on some of the announcements here, like with Anjou it's GA with AWS, they're expanding with not only Microsoft Azure but even Oracle OCI. And John. One of the things we look at is, you know, who's driving that innovation change. We've seen a big push by VMware to go deep into cloud native and who's leading that? you know, Joe beta who've we known from the early days of Kubernetes. So much of theCUBE ecosystem is now part of VMware, Greg lavender, the CTO. He was most recently in industry helping transformation of some large companies. And that's the challenge that VMware has going from their dominant position in the data center to live in these cloud environments. We know from a technology standpoint. A VM container bare metal, you can use whatever makes sense, build your applications, go faster, go faster. So, a big change there and the community John, it is greatly distributed and in highly diverse, lots of pockets of interesting conversations, always you're right. So, you know, how do we replicate the hallway track? There's some good things we've seen this week and we're all learning here in the 2020 environment. >> Yeah, we normally we'd be like yelling over the bands and people trampling to see the concert. John legend is going to be playing really quickly in the next few minutes. Dave final word here because the innovation strategy of VMware has to be on full display in this unpredictable world, multicloud AI. It's crazy right now, huge opportunity, big tailwinds cloud native with the snowflake IPO and just ongoing surge. Your thoughts. >> Well, I'll just, tease some of the conversation we're going to have in our deeper analysis on the cube and the cube.net is really that hybrid that Stu talked about. And we're seeing VMware cloud on AWS, really rocket, and we're seeing VMware cloud foundation and the other foundational elements of VMware cloud it's showing up with the data is really having some traction. So that's something that I'm watching very closely. >> Guys. Thanks so much. I know we're part of a virtual program. Thank the VMworld for including us in the virtual program, thanks to the community for all the support of the past 10 years, 2010 was our first Cuba VMworld. Now it's 2020. Thanks for watching.