>> Live from Boston, Massachusetts, it's The Cube, covering AWS re:Inforce 2019. Brought to you by Amazon web services and its ecosystem partners. >> Hey, welcome back everyone. It's The Cube's live coverage here in Boston, Massachusetts for AWS re:Inforce. This is Amazon web services' inaugural security conference around Cloud security. I'm John Furrier. My host Dave Vellante. We've got special guest, we've got another CSO, Dan Meacham, VP of Security and Operations at Legendary Entertainment. Great to see you. Thanks for coming on The Cube. >> Oh, thank you. It's a very pleasure to be here. >> We had some fun time watching the Red Socks game the other night. It was the best night to watch baseball. They did win. >> Was it ever. >> Always good to go to Fenway Park, but we were talking when we were socializing, watching the Red Socks game at Fenway Park about your experience. You've seen a lot of waves of technology you've been involved in. >> Yes, yes. >> Gettin' dirty with your hands and gettin' coding and then, but now running VP of Security, you've seen a lot of stuff. >> Oh. >> You've seen the good, bad, and the ugly. (laughing) >> Yeah, fun business. >> It is. >> You guys did Hangover, right? >> Yes. >> Dark Knight. >> Yes. >> Some really cool videos. >> Good stuff there, yeah. And it's just amazing cause, you know, how much technology has changed over the years and starting back out in the mid-eighties and early nineties. Sometimes I'm just like, oh, if I could only go back to the IPXSX days and just get rid of botnets and things like that. (laughing) That'd be so much easier. Right? >> The big conversation we're having here, obviously, is Amazon's Security Conference. What's your take on it? Again, security's not new, but their trying to bring this vibe of shared responsibility. Makes sense because they've got half of the security equation, but you're seeing a lot of people really focusing on security. What's your take of, so far, as an attendee? >> Well, as we look and, cause I like to go to these different things. One, first to thank everybody for coming because it's a huge investment of time and money to be at these different shows, but I go to every single booth to kind of take a look to see where they are cause sometimes when we look at some of the different technology, they may have this idea of what they want the company to be and they're maybe only a couple years old, but we may see it as a totally different application and like to take those ideas and innovate them and steer them in another direction that kind of best suits our needs. But a lot of times you see a lot of replay of the same things over and over again. A lot of folks just kind of miss some of the general ideas. And, um, this particular floor that we have, there's some interesting components that are out there. There's a lot of folks that are all about configuration management and auto correction of misconfigured environments and things like that. Which is good, but I think when we look at the shared responsibility model and so forth, there's some components that a lot of folks don't really understand they really have to embrace in their environment. They think, oh it's just a configuration management, it's just a particular checklist or some other things that may fix something, but we really got to talk about the roots of some of the other things because if it's not in your data center and it's out somewhere else, doesn't mean you transfer the liability. You still have the ownership, there's still some practice you got to focus on. >> Take us through the Cloud journey with Legendary. You put some exchange service out there. Continue. >> Yes, and so as we started bringing these other different SaaS models because we didn't want to have the risk of if something went down we lost everything, but as we did that and started embracing Shadow IT, because if this worked for this particular department, we realized that there wasn't necessarily a applicable way to manage all of those environments simultaneous. What we mean after the standpoint, like we mentioned before, the MFA for each of these different components of the Cloud applications. So that naturally led us into something like single sign-on that we can work with that. But as we started looking at the single sign-on and the device management, it wasn't so much that I can't trust you devices, it's how do I trust your device? And so that's when we created this idea of a user-centric security architecture. So it's not necessarily a zero trust, it's more of a, how can I build a trust around you? So, if your phone trusts you based off of iometrics, let me create a whole world around that, that trust circle and build some pieces there. >> Okay, so, let me just interrupt and make sure we understand this. So, you decided to go Cloud-First. You had some stuff in colo and then said, okay, we need to really rethink how we secure our operations, right? So, you came up with kind of a new approach. >> Correct. >> Cloud approach. >> Absolutely. And it's Cloud and so by doing that then, trying to focus in on how we can build that trust, but also better manage the applications because, say for example, if I have a collaboration tool where all my files are, I may want to have some sort of protection on data loss prevention. Well, that Cloud application may have its own piece that I can orchestrate with, but then so does this one that's over here and this one over here and so now I've got to manage multiple policies in multiple locations, so as we were going down that piece, we had to say, how do we lasso the security around all these applications? And so, in that particular piece, we went ahead and we look forward at where is the technology is, so early on, all we had were very advanced sims where if I get reporting on user activity or anomalies, then I had limited actions and activities, which is fine, but then the CASB world ended up changing. Before, they were talking about Shallow IT, now they actually do policy enforcement, so then that allowed us to then create a lasso around our Cloud applications and say, I want to have a data loss prevention policy that says if you download 5,000 files within one minute, take this action. So, before, in our sim, we would get alert and there were some things we could do and some things we couldn't, but now in the CASB I can now take that as a piece. >> So more refined >> Exactly. >> in policy. Now, did you guys write that code? Did you build it out? Did you use Cloud? >> We work with a partner on help developing all this. >> So, when you think about where the CASBs were five years ago or so, it was all about, can we find Shadow IT? Can we find where social security numbers are? Not necessarily can I manage the environment. So, if you were take a step back to back in the old days when you had disparate in network architecture equipment, right? And you wanted to manage all your switches and firewalls, you had to do console on each and every one. Over time as it progressed, we now had players out there that can give you a single console that can get in and manage the entire network infrastructure, even if it's disparate systems. This is kind of what we're seeing right now within the Cloud, where on the cusp of it, some of then are doing really good and some of them still have a lot of things to catch up to do, but we're totally stoked about how this is working in this particular space. >> So, talk about, like, um, where you are now and the landscape that you see in front of you. Obviously, you have services. I know you. We met through McAfee, you have other, some fenders. You have a lot of people knocking on your doors, telling you stuff. You want to be efficient with your team. >> Yes. >> You want to leverage the Cloud. >> Yes. >> As you look at the landscape and a future scape as well, what're you thinking about? What's on your mind? What's your priorities? How're you going to navigate that? What're some of the things that's driving you? >> (sighing) It's a cornucopia of stuff that's out there. (laughing) Depending on how you want to look at it. And you can specialize in any particular division, but the biggest things that we really want to focus on is we have to protect out data, we have to protect our devices, and we have to protect our users. And so that's kind of that mindset that we're really focused on on how we integrate. The biggest challenges that we have right now is not so much the capability of the technology, because that is continually to evolve and it's going to keep changing. The different challenges that we have when we look in some of these different spaces is the accountability and the incorporation and cooperation because a incident's going to happen. How are you going to engage in that particular incident and how are you going to take action? Just because we put something in the Cloud doesn't mean it was a set and forget kind of thing. Because if it was in my data center, then I know I have to put perimeter around it, I know I got to do back-ups, I know I got to do patch management, but if I put it in the Cloud, I don't have to worry about it. That is not the case. So, what we're finding a lot is, some of these different vendors are trying to couch that as, hey we'll take care of that for you, but in fact, reality is is you got to stay on top of it. >> Yeah. And then you got to make sure all the same security practices are in there. So, the question I have for you is: what's the security view of the Cloud versus on premise (muttering) the data's in the perimeter, okay that's kind of an older concept, but as your thinking about security in Cloud, Cloud security versus on premise, what's the difference? What's the distinction? What's the nuances? >> Well, if we go old-school versus new-school, old-school would say, I can protect every thing that's on prem. That's not necessarily the case that we see today because you have all this smart technology that's actually coming in and is eliminating your perimeter. I mean, back in the day you could say, hey, look, we're not going to allow any connections, inbound or outbound, to only outside the United States cause we're just a U.S.-based company. Well, that's a great focus, but now when you have mobile devices and smart technology, that's not what's happening. So, in my view, there's a lot of different things that you may actually be more secure in the Cloud than you are with things that are on prem based off of the architectural design and the different components that you can put in there. So, if you think about it, if I were to get a CryptoLocker in house, my recovery time objective, recovery point objective is really what was my last back-up. Where if I look at it in the Cloud perspective, it's where was my last snapshot? (stuttering) I may have some compliance competes on there that records the revision of a file up to 40 times or 120 times, so if I hit that CryptoLocker, I have a really high probability of being able to roll back in the Cloud faster than I could if I lost something that was in prem. So, idly, there's a lot more advantages in going with the Cloud than on prem, but again, we are a Cloud-First company. >> Is bad user behavior still your biggest challenge? >> Is it ever! I get just some crazy, stupid things that just happen. >> The Cloud doesn't change that, right? >> No! (laughing) No, you can't change that with technology, but a lot of it has to be with education and awareness. And so we do have a lot of very restrictive policies in our workforce today, but we talk to our users about this, so they understand. And so when we have things that are being blocked for a particular reason, the users know to call us to understand what had happened and in many cases it's, you know, they clicked on a link and it was trying to do a binary that found inside of a picture file of all things on a web browser. Or they decided that they wanted to have the latest Shareware file to move mass files and then only find out that they downloaded it from an inappropriate site that had binaries in it that were bad and you coach them to say, no this is a trusted source, this is the repository where we want you to get these files. But my favorite though is, again, being Cloud-First, there's no reason to VPN into our offices for anything because everything is out there and how we coordinate, right? But we do have VPN set up for when we travel to different countries with regards to, as a media company, you have to stream a lot of different things and, so, if we're trying to pitch different pieces that we may have on another streaming video-on-demand service, some of those services and some of those programmings may not be accessible into other countries or regions of the world. So, doing that allows us to share that. So, then, a lot of times, what we find is we have offices and users that're in different parts of the world that will download a free VPN. (laughing) Because they want to to be able to get to certain types of content. >> Sounds good. >> And then when you're looking at that VPN and that connection, you're realizing that that VPN that they got for free is actually be routed through a country that is not necessarily friendly to the way we do business. They're like, okay, so you're pushing all of our data through that, but we have to work through that, there's still coaching. But fortunately enough, by being Cloud-First, and being how things are architected, we see all that activity, where if was all in prem, we wouldn't necessarily know that that's what they were doing, but because of how the user-centric piece is set-up, we have full visibility and we can do some coaching. >> And that's the biggest issue you've got. Bigtime, yes? Visibility. >> What's a good day for a security practitioner? >> (laughing) A good day for a security practitioner. Well, you know, it's still having people grumpy at you because if they're grumpy at you, then you know you're doing you job, right? Because if everybody loves the security guy, then somebody's slipping something somewhere and it's like, hey, wait a minute, are you really supposed to be doing that? No, not necessarily. A good day is when your users come forward and say, hey, this invoice came in and we know that this isn't out invoice, we want to make sure we have it flagged. And then we can collaborate and work with other studios and say, hey, we're seeing this type of vector of attack. So, a good day is really having our users really be a champion of the security and then sharing that security in a community perspective with the other users inside and also communicating back with IT. So, that's the kind of culture we want to have within out organization. Because we're not necessarily trying to be big brother, we want to make it be able to run fast because if it's not easy to do business with us, then you're not going to do business with us. >> And you guys have a lot of suppliers here at the re:Inforce conference. Obviously, Amazon, Cloud. What other companies you working with? That're here. >> That're here today? Well, CrowdStrike is a excellent partner and a lot of things. We'll have to talk on that a little bit. McAfee, with their MVISION, which was originally sky-high, has just been phenomenal in our security architecture as we've gone through some of the other pieces. We do have Alert Logic and also Splunk. They're here as well, so some great folks. >> McAfee, that was the sky-high acquisition. >> That is correct and now it's MVISION. >> And that's the Cloud group within McAfee. What do they do that you like? >> They brought forth the Cloud access security broker, the CASB product, and one of the things that has just been fascinating and phenomenal in working with them is when we were in evaluation mode a couple of years ago and were using the product, we're like, hey, this is good, but we'd really like to use it in this capacity. Or we want to have these artifacts of this intelligence come out of the analytics and, I kid you not, two weeks later the developers would put it out there in the next update and release. And it was like for a couple of months. And we're like, they're letting us use this product for a set period of time, they're listening to what we're asking for, we haven't even bought it, but they're very forward-thinking, very aggressive and addressing the specific needs from the practitioner's view that they integrated into the product. It was no-brainer to move forward with them. And they continue to still do that with us today. >> So that's a good experience. I always like to ask practitioners, what're some things that vendors are doing that either drive your crazy or they shouldn't be doing? Talk to them and say, hey, don't do this or do this better. >> Well, when you look at your stop-doing and your start doing list and how do you work through that? What really needs to be happening is you need your vendor and your account manager to come out on-site once a quarter to visit with you, right? You're paying for a support on an annual basis, or however it is, but if I have this Cloud application and that application gets breached in some way, how do I escalate that? I know who my account manager is and I know the support line but there needs to be an understanding and an integration into my incidents response plan as when I pick up the phone, what' the number I dial? And then how do we engage quickly? Because now where we are today, if I were to have breach, a compromised system administrator account, even just for 20 minutes, you can lose a lot of data in 20 minutes. And you think about reputation, you think about privacy, you think about databases, credit cards, financials. It can be catastrophic in 20 minutes today with the high-speed rates we can move data. So, my challenge back to the vendors is once a quarter, come out and visit me, make sure that I have that one sheet about what that incident response integration is. Also, take a look at how you've implemented Am I still on track with the artchitecture? Am I using the product I bought from you effectively and efficiently? Or is there something new that I need to be more aware of? Because a lot of times what we see is somebody bought something, but they never leveraged the training, never leveraged the support. And they're only using 10% of the capability of the product and then they just get frustrated and then they spend money and go to the next product down the road, which is good for the honeymoon period, but then you run into the same process again. So, a lot of it really comes back to vendor management more so than it is about the technology and the relationship. >> My final question is: what tech are you excited about these days? Just in general in the industry. Obviously security, you've got the Cloud, you're Cloud-First, so you're on the cutting edge, you've got some good stuff going on. You've got a historical view. What's exciting you these days from a tech perspective? >> Well, over the last couple of years, there's been two different technologies that have really started to explode that I really am excited about. One was leveraging smart cameras and facial recognition and integrating physical stock with cyber security stock. So, if you think about from another perspective, Cameras, surveillance today is, you know, we rewind to see something happen, maybe I can mark something. So, if somebody jumped over a fence, I can see cause it crossed the line. Now the smart cameras over the last three or four or five years have been like, if I lost a child in a museum, I could click on child, it tells me where it is. Great. Take that great in piece and put it in with your cyber, so now if you show up on my set or you're at one of our studios, I want the camera to be able to look at your face, scrub social media and see if we can get a facial recognition to know who you are and then from that particular piece, say okay, has he been talking trash about our movies? Is he stalking one of our talent? From those different perspectives. And then, moreover, looking at the facial expression itself. Are you starstruck? Are you angry? Are you mad? So, then that way, I know instantly in a certain period of time what the risk is and so I can dispatch appropriately to have security there or just know that this person's just been wandering around because they're a fan and they want to know something. So, maybe one of those things where we can bring them a t-shirt and they'll move on onto their way and they're happy. Versus somebody that's going to show up with a weapon and we have some sort of catastrophic event. Now, the second technology that I'm really pretty excited about. Is when we can also talk a little about with the Five G technology. So, when everybody talk about FIJI, you're like, oh, hey, this is great. This is going to be faster, so why are we all stoked about things being super, super fast on cellular? That's the technical part. You got to look at the application or the faculty of things being faster. To put it into perspective, if you think about a few years ago when the first Apple TV came out, everybody was all excited that I could copy my movies on there and then watch it on my TV. Well, when internet and things got faster, that form factor went down to where it was just constantly streaming from iTunes. Same thing with the Google Chrome Cast or the Amazon Fire Stick. There's not a lot of meat to that, but it's a lot of streaming on how it works. And so when you think about the capability from that perspective, you're going to see technology change drastically. So, you're smartphone that holds a lot of data is actually probably going to be a lot smaller because it doesn't have to have all that weight to have all that stuff local because it's going to be real-time connection, but the fascinating thing about that, though, is with all that great opportunity also comes great risk. So, think about it, if we were to have a sphere and if we had a sphere and you had the diameter of that sphere was basically technology capability. As that diameter grows, the volume of the technology that leverages that grows, so all the new things that come in, he's building. But as that sphere continue to grow, what happens is the surface is your threat. Is your threat vector. As it continue to grow, that's going to continue to grow. (stuttering) There's a little but of exponential components, but there's also a lot of mathematical things on how those things relate and so with Five G, as we get these great technologies inside of our sphere, that threat scape on the outside is also going to grow. >> Moore's law in reverse, basically. >> Yeah. >> Surface area is just balloon to be huge. That just kills the perimeter argument right there. >> It does. >> Wow. And then we heard from Steve and Schmidt on the keynote. They said 90% of IOT data, thinking about cameras, is HTTP, plain text. >> Exactly. And it's like, what're you-- >> Oh, more good news! >> Yeah. (laughing) >> At least you'll always have a job. >> Well, you know, someday-- >> It's a good day in security. Encrypt everywhere, we don't have time to get into the encrypt everywhere, but quick comment on this notion of encrypting everything, what's your thoughts? Real quick. (sighing) >> All right, so. >> Good, bad, ugly? Good idea? Hard? >> Well, if we encrypt everything, then what does it really mean? What're we getting out? So, you remember when everybody was having email and you had, back in the day, you had your door mail, netscape navigator and so forth, and thought, oh, we need to have secure email. So then they created all these encryption things in the email, so then what happens? That's built into the applications, so the email's no longer really encrypted. >> Yeah. >> Right? So I think we're going to see some things like that happening as well. Encryption is great, but then it also impedes progress when it comes to forensics, so it's only good until you need it. >> Awesome. >> Dan, thanks so much here on the insights. Great to have you on The Cube, great to get your insights and commentary. >> Well, thank you guys, I really appreciate it. >> You're welcome. >> All right, let's expecting to steal is from noise, talking to practitioner CSOs here at re:Inforce. Great crowd, great attendee list. All investing in the new Cloud security paradigm, Cloud-First security's Cube's coverage. I'm John Furrier, Dave Vellante. Stay tuned for more after this short break. (upbeat music)

>> Live, from Las Vegas! It's theCube! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back everyone, it's theCube's live coverage in Las Vegas for VMworld 2018, it's theCube. We got two sets, 24 interviews per day, 94 interviews total. Next three days, we're in day two of three days coverage. It's our ninth year of covering VMworld. It's been great. I'm John Furrier with Dave Vellante, next guest, Cube alumni, number one in the leading boards right now, Sanjay Poonen did a great job today on stage, keynote COO for VMware. Great to have you back. Thanks for coming on. >> John and Dave, you're always so kind to me, but I didn't realize you've been doing this nine years. >> This is our ninth year. >> That's half the life of VMware, awesome. Unreal. Congratulations. >> We know all the stories, all the hidden, nevermind, let's talk about your special day today. You had a really, so far, an amazing day, you were headlining the key note with a very special guest, and you did a great job. I want you to tell the story, who was on, what was the story about, how did this come about? Tech for good, a big theme in this conference has really been getting a lot of praise and a lot of great feedback. Take us through what happened today. >> Well listen, I think what we've been trying to do at VMware is really elevate our story and our vision. Elevate our partnerships, you've covered a lot of the narrative of what we've done with Andy Jessie. We felt this year, we usually have two 90 minute sessions, Day One, Day Two, and it's filled with content. We're technical company, product. We figured why don't we take 45 minutes out of the 180 minutes total and inspire people. With somebody who's had an impact on the world. And when we brainstormed, we had a lot of names suggested, I think there was a list of 10 or 15 and Malala stood out, she never spoke at a tech conference before. I loved her story, and we're all about education. The roots of VMware were at Stamford Campus. Diane Greene, and all of that story. You think about 130 million girls who don't go to school. We want to see more diversity in inclusion, and she'd never spoken so I was like, you know what, usually you go to these tech conferences and you've heard somebody who's spoken before. I'm like, lets invite her and see if she would come for the first time, and we didn't think she would. And we were able to score that, and I was still a little skeptical 'cause you never know is it going to work out or not. So thank you for saying it worked, I think we got a lot of good feedback. >> Well, in your first line, she was so endearing. You asked her what you thought a tech conference, you said too many acronyms. She just cracked the place up immediately. >> And then you heard my response, right? If somebody tells me like that, you tell VMotion wrong she looked at me what? >> Tell them about our story, real quick, our story I want to ask you a point in question. Her story, why her, and what motivated you to get her? >> Those stories, for any of you viewers, you should read the book "I'm Malala" but I'll give you the short version of the story. She was a nine year old in the Pashtun Area of the Swat Valley in Pakistan, and the Taliban setted a edict that girls could not go to school. Your rightful place was whatever, stay at home and become a mom with babies or whatever have you. You cannot go to school. And her father ran a school, Moster Yousafzai, wonderful man himself, an educator, a grandfather, and says know what, we're going to send you to school. Violating this order, and they gave a warning after warning and finally someone shot her in 2012, almost killed her. The bullet kind of came to her head, went down, and miraculously she escaped. Got on a sort of a hospital on a plane, was flown to London, and the world if you remember 2012, the world was following the story. She comes out of this and she's unscathed. She looks normal, she has a little bit of a thing on the right side of her face but her brains normal, everything's normal. Two years later she wins the Nobel Peace Prize. Has started the Malala Fund, and she is a force of nature, an amazing person. Tim Cook has been doing a lot with her in the Malala Fund. I think that actually caught my attention when Tim Cook was working with her, and you know whatever Apple does often gets a little bit of attention. >> Well great job selecting her. How's that relevant to what you guys are doing now, because you guys had a main theme Tech for Good? Why now, why VMware? A lot of people are looking at this, inspired by it. >> There are milestones in companies histories. We're at our 20 year birthday, and I'm sure at people's birthday they want to do big things, right? 20, 30, 40, 50, these decades are big ones and we thought, lets make this year a year to remember in various things we do. We had a 20 year anniversary celebration on campus, we invited Diane Greene back. It was a beautiful moment internally at Vmware during one of our employee meetings. It was a private moment, but just with her to thank her. And man, there were people emotional almost in tears saying thank you for starting this company. A way to give back to us, same way here. What better way to talk about the impact we're having in the community than have someone who is of this reputation. >> Well we're behind your mission 100%, anything you need. We loved the message, Tech for Good, people want to work for a mission driven company. People want to buy >> We hope so. >> from mission driven companies, that stated clear and the leadership you guys are providing is phenomenal. >> We had some rankings that came out around the same time. Fortune ranked companies who are changing the world, and VMware was ranked 17th overall, of all companies in the world and number one in the software category. So when you're trying to change the world, hopefully as you pointed out it's also an attractor of talent. You want to come here, and maybe even attractor of customers and partners. >> You know the other take-away was from the key note was how many Cricket fans there are in the VMworld Community. Of course we have a lot of folks from India, in our world but who's your favorite Cricketer? Was it Sachin Tendulkar? (laughs) >> Clearly you're reading off your notes Dave! >> Our Sonya's like our, >> Dead giveaway! >> Our Sonya's like our Cricket Geek and she's like, ask him about Sachin, no who's your favorite Cricketer, she wants to know. >> Sachin Tendulkar's way up there, Shayuda Free, the person she likes from Pakistan. I grew up playing cricket, listen I love all sports now that I'm here in this country I love football, I love basketball, I like baseball. So I'll watch all of them, but you know you kind of have those childhood memories. >> Sure >> And the childhood memories were like she talk about, India, Pakistan games. I mean this was like, L.A. Dodgers playing Giants or Red Socks, Yankee's, or Dallas Cowboys and the 49ers, or in Germany playing England or Brazil in the World Cup. Whatever your favorite country or team rivalry is, India Pakistan was all there more, but imagine like a billion people watching it. >> Yeah, well it was a nice touch on stage, and I'd say Ted Williams is my favorite cricketer, oh he plays baseball, he's a Red Sock's Player. Alright Sanjay, just cause your in the hot seat, lets get down to business here. Great moment on stage, congratulation. Okay Pat Gelsinger yesterday on the key note talked about the bridges, VMware bridging, connecting computers. One of the highlights is kind of in your wheelhouse, it's in your wheelhouse, the BYOD, Bring Your Own Device bridge. You're a big part of that. Making that work on on the mobile side. Now with Cloud this new bridge, how is that go forward because you still got to have all those table stakes, so with this new bridge of VMware's in this modern era, cloud and multicloud. Cluely validated, Andy Jassy, on stage. Doing something that Amazon's never done before, doing something on premise with VMware, is a huge deal. I mean we think it's a massive deal, we think it's super important, you guys are super committed to the relationship on premises hybrid cloud, multicloud, is validated as far as we're concerned. It's a done deal. Now ball's in your court, how are you going to bring all that mobile together, security, work space one, what's your plan? >> I would say that, listen on as I described in my story today there's two parts to the VMware story. There's a cloud foundation part which is the move the data center to the cloud in that bridge, and then there's the desk job move it to the mobile. Very briefly, yes three years of my five years were in that business, I'm deeply passionate about it. Much of my team now that I put in place there, Noah and Shankar are doing incredible jobs. We're very excited, and the opportunity's huge. I said at my key note of the seven billion people that live in the world, a billion I estimate, work for some company small or big and all of them have a phone. Likely many of those billion have a phone and a laptop, like you guys have here, right? That real estate of a billion in a half, maybe two billion devices, laptops and phones, maybe in some cases laptop, phone, and tablets. Someone's going to manage and secure, and their diverse across Apple, Google, big option for us. We're just getting started, and we're already the leader. In the data center, the cloud world, Pat, myself, Raghu, really as we sat three years ago felt like we shouldn't be a public cloud ourselves. We divested vCloud Air, as I've talked to you on your show before, Andy Jassy is a friend, dear friend and a classmate of mine from Harvard Business School. We began those discussions the three of us. Pat, Raghu, and myself with Andy and his team and as every quarter and year has gone on they become deeper and deep partnerships. Andy has told other companies that VMware Amazon is the model partnership Amazon has, as they describe who they would like to do business more with. So we're proud when they do that, when we see that happen. And we want to continue that. So when Amazon came to us and said listen I think there's an opportunity to take some of our stack and put it on premise. We kept that confidential cause we didn't want it to leak out to the world, and we said we're going to try'n annouce it at either VMworld or re:Invent. And we were successful. A part with these projects is they inevitably leak. We're really glad no press person sniffed it out. There was a lot of speculation. >> Couldn't get confirmation. >> There was a lot of speculation but no one sniffed it out and wrote a story about it, we were able to have that iPhone moment today, I'm sorry, yesterday when we unveiled it. And it's a big deal because RDS is a fast growing business for them. RDS landing on premise, they could try to do on their own but what better infrastructure to land it on than VMware. In some cases would be VMware running on VxRail which benefits Dell, our hardware partners. And we'll continue doing more, and more, and more as customers desire, so I'm excited about it. >> Andy doesn't do deals, as you know Andy well as we do. He's customer driven. Tell me about the customer demand on this because it's something we're trying to get reporting on. Obviously it makes sense, technically the way it's working. You guys and Andy, they just don't do deals out of the blue. There's customer drivers here, what are those drivers? >> Yeah, we're both listening to our customers and perhaps three, four, five years ago they were very focused on student body left, everybody goes public cloud. Like forget your on premise, evaporate, obliterate your data centers and just go completely public. That was their message. >> True, sweep the floor. >> Right, if you went to first re:Invent I was there on stage with them as an SAP employee, that's what I heard. I think you fast forward to 2014, 2015 they're beginning to realize, hey listen it's not as easy. Refactoring your apps, migrating those apps, what if we could bring the best of private cloud and public cloud together enter VMware and Amazon. He may have felt it was harder to have those cultivations of VMware or for all kinds of reasons, like we had vCloud Air and so on and so forth but once we divested that decision culminations had matured between us that door opened. And as that door opened, more culminations began. Jointly between us and with customers. We feel that there are customers who want many of those past type of services of premise. Cause you're building great things, relational database technology, AI, VI maybe. IoT type of technologies if they are landing on premise in an edge-computing kind of world, why not land on VMware because we're the king of the private cloud. We're very happy to those, we progress those discussion. I think in infrastructure software VMware and Amazon have some of the best engineers on the planet. Sometimes we've engineers who've gone between both companies. So we were able to put our engineering team's together. This is a joint engineering effort. Andy and us often talk about the fact that great innovation's built when it's not just Barny go to Marketing and Marketing press releases this. The true joint engineering at a deep level. That's what happened the last several months. >> Well I can tell you right now the commitment I've seen from an executive level and deep technology, both sides are deep and committed to this. It's go big or go home, at least from our perspective. Question I want to ask you Sanjay is you're close to the customer's of VMware. What's the growth strategy? If you zoom out, look down on stage and you got vSAN, NSX at the core, >> vSANjay (laughs) >> How can you not like a product that has my name on it? >> So you got all these things, where's the growth going to come from, the merging side, is the v going to be the stable crown jewels at NSX? How do you guys see the growth, where's it going to come from? >> Just kind of look at our last quarter. I mean if you peel back the narrative, John and Dave, two years ago we were growing single digits. Like low single digits. Two, three percent. That was, maybe the legacy loser description of VMware was the narrative everyone was talking about >> License revenue was flattish right? >> And then now all of sudden we're double digits. 12, 15 sort of in that range for both product revenue. It's harder to grow faster when you're bigger, and what's happened is that we stabilize compute with vSphere in that part and it's actually been growing a little bit because I think people in the VMware cloud provider part of our business, and the halo effect of the cloud meant that as they refresh the servers they were buying more research. That's good. The management business has started to grow again. Some cases double digits, but at least sort of single digits. NSX, the last few order grew like 30, 40%. vSAN last year was growing 100% off a smaller base, this year going 60, 70%. EUC has been growing double digits, taking a lot of share from company's like Citrix and MobileIron and others. And now, also still growing double digits at much bigger paces, and some of those businesses are well over a billion. Compute, management, end-user computing. We talked about NSX on our queue forming called being a 1.4 billion. So when you get businesses to scale, about a billion dollar type businesses and their sort of four, training five that are in that area, and they all get to grow faster than the market. That's the key, you got to get them going fast. That's how you get growth. So we focus on those on those top five businesses and then add a few more. Like VMware Cloud on AWS, right now our goal is customer logo count. Revenue will come but we talked on our earnings call about a few hundred customers of VMware Cloud and AWS. As that gets into the thousands, and there's absolutely that option, why? Because there's 500,000 customers of VMware and two million customers of Amazon, so there's got to be a lot of commonality between those two to get a few thousand. Then we'll start caring about revenue there too, but once you have logos, you have references. Containers, I'd like to see PKS have a few hundred customers and then, we put one on stage today. National Commercial Bank of Jamaica. Fantastic story of PKS. I even got my PKS socks for this interview. (John laughs) >> So that give you a sense as to how we think, there will be four, five that our businesses had scale and then a few are starting to get there, and they become business to scale. The nature of software is we'll always be doing this show because there will be new businesses to talk about. >> Yeah, hardware is easy. Software is hard, as Andy Patchenstien said on theCUBE yesterday. Congratulations Sanjay and all the success, you guys are doing great financially. Products looking really good coming out, the bloom is rising from the fruit you guys have harvested, coming together. >> John if I can say one last thing, I shared a picture of a plane today and I put two engines behind it. There's something I've learned over the last years about focus of a company, and I joked about different ways that my name's are pronounced but at the core of me there's a DNA. I said on stage I'd rather not be known as smart or stupid but having a big heart. VMware, I hope is known by our customers as having these two engines. An engine of innovation, innovating product and a variety of other things. And focused on customer obsession. We do those, the plane will go a long way. >> And it's looking good you guys, we can say we've been to Radio Event, we've been doing a lot of great stuff. Congratulations on the initiative, and a great interview with you today on doing Tech for Good and sharing your story. Getting more exposure to the kind of narratives people want to hear. More women in tech, more girls in tech, more democratization. Congratulations and thanks so much for sharing. >> Thank you John and Dave. >> Appreciate you being here. >> Sanjay Poonen, COO of VMware. Friend of theCUBE, Cube Alumni, overall great guy. Big heart and competitive too, we know that from his Twitter stream. Follow Sanjay on Twitter. You'll have a great time. I'm John Furrier with Dave Vellante, stay with us for more coverage from day two live, here in Las Vegas for VMware 2018. Stay with us. (tech music)

>> Announcer: Live from Las Vegas. It's theCube! Covering Dell Technologies World 2018. Brought to you by Dell EMC and it's ecosystem partners. >> Welcome back to theCube's coverage of Day One of Dell Technologies World. I'm Lisa Martin with Dave Vellante in Las Vegas. Excited to welcome back to theCube one of our alumni Chhandomay Mandal, the Director of Marketing at Dell EMC. Chhandomay, nice to see you again. >> Happy to be here. >> We had a exciting keynote this morning, Michael Dell was talking about number one in market share for servers and storage, expecting when the 2018 calendar numbers, came out the first quarter to gain shares. What's going on with storage with All-Flash? >> We are excited about our storage All-Flash portfolio. We are going to have a couple of surprising announcements tomorrow, I cannot give away all of this. But all of our portfolio is going to continue to innovate based on all the things Michael touched upon, ranging from artificial intelligence, machine learning, all of those things. We have a complete portfolio of All-Flash products covering different market segments, customers. Ranging from the Max All-Flash, XtremIO, Unity accessories. So we are really excited about the face of innovations we are doing, the way we are capturing a market. So it's a great time to be in All-Flash storage. >> Chhandomay, I wonder if we can talk about how we got here. So the first modern instantiation of Flash, and there were a lot of SSD's and battery backed up memories in the past, but it was, I think it was EMC, dropped a flash drive into a Symmetrix way back when, and that began to change things. But people soon realized, the controller architecture's not going to support that, so we need All-Flash architectures. And then people quickly realized, oh wow, it's taken us decades to build this rich stack of services. Now fast forward basically a decade plus, where are we today in terms of All-Flash capabilities and adoption? >> In the enterprises today, you see All-Flash getting adopted at a very high rate. In fact, of the storage that we ship, almost 80% of it is All-Flash storage, and again, We have different products for different segments. And as you mentioned, we started from dropping SSD's into the enterprise arrays, a whole thing through the process. Now if you look at us, we have modern purpose-built All-Flash arrays like XtremIO and then All-Flash arrays like VMAX All-Flash and some announcements where you are going to see the maturity level over the last decade, all the data services that got brought in, and the very high-performance, low latency with mission critical availability that we are able to deliver, across the platform for all of our enterprise products. >> So Flash everywhere. And then we've made the observation a lot that, and it sounds trite, but I'll put it out there anyways, historically, when you think about storage it was all about persisting data. And you'd try to make it go as fast as you could, but it was mechanical. Now with Flash, it's all about doing stuff faster, real-time, low latency, massive IOPS, we're shifting the bottlenecks around. What's your take on that dynamic? >> Flash is a fast media, so having great performance is really, it will stay. That is not really the differentiator so to speak, but it needs to be coupled with advanced data services. You need to have very high resiliency. The customers can rely on you with five lines, six lines of availability day in and day out. As well as, you need to do the business solutions, transforming IT, helping businesses transform in their digital transformation process. Let me give you some quick examples. Lets take XtremIO for example. It started out as a purposeful, modern, leading All-Flash array. And it is built upon a unique architecture taking the advantage of Flash Media. It is content error, metadata-centric, active-active controller architecture that helps us deliver very high performance hundreds of thousands to millions of IOPS with very low, consistent latency. No matter how much you have written to that, what loads you are running, what are the system load, etc. But again, that's the first layer. The second layer of it is the advanced data services always on inline reducing the data space. So for example, the inline, the duplication, compression, and making sure we are not writing the duplicate data to the SSD's. Thereby increasing the longevity of the SSD media, as well as reducing the capacity footprint. And driving down costs. Speaking of that. You wrap it around into a very simple, modern UI that's very easy to manage. No tuning needed. That's where today's IT could go from the tactical day to day operations to strategic innovations. How they can do the IT transformation. Get into the digital transformation. Get ahead of their competition. Not only today but for tomorrow. >> And the content awareness and the metadata-centricity are what you just explained? Is that right? Can you connect those? >> Uh sure. Suppose when the data is being written, right? It might have duplicate data. Say for example you are running a video environment. Right? For your tens of thousands of users everybody has their Windows VM. Probably the same data across all the laptops. When you look at it in the XtremIO metadata-centric, always in memory architecture, the request comes in, you try to look it up. Now when you need to do that your metadata is always in memory and you are doing data reduction based on a unique fingerprinting algorithm, checking whether you have seen the data before. If you haven't seen the data before then only you only write it doing other data services on top of it. But if you have seen the data before then you you update the metadata in memory and acknowledge the right. You get a very fast, alright performance that is actually at memory speed, not even at the SSD speed. So this metadata-centric architecture that has all the metadata all the time in memory helps you accelerate the process especially in the case where a lot of duplicate data is present. >> It's a memory speed? Because you somehow eliminated an IO? Or is that NVMe? Or, or..? >> When you access data, right? An application says I want to access block XYZ. Any controller will need to have the metadata for it. And then based on the metadata it needs to do the access. It's like, when you go to a library, you want to find a book from a bookshelf. First you need to know the control number. And then based one the control number, which shelf, which rack, you go and fetch it. Storage controllers of every type works in the same way. If you cannot have your metadata in memory, then the first step the controller has to do is go down to the array, fetch the metadata, and then based on the metadata you fetch the data and solve the IO request. If you have the metadata always in memory, then that step is always eliminated. You can guarantee that your metadata is there and all you need to do is look up and solve the IO request. That's the key of delivering consistent performance. Okay? In other arrays if the metadata is not in memory you'll not get that consistency. But here we can deliver day in, and day out, 90% full or 10% full, whether it's OLTP or VDI, That high performance with very minimal latency. That's the key here. >> High performance, low latency. You've given us some really good overview into the potential that the technology can make to help IT-innovate. And as Michael Dell even said this morning that IT innovation is key. IT can be a profit center of an organization, really as a catalyst for digital transformation. Talk to us about some of the business benefits. That if a business is really wrapping their head around IT as a profit center, and as a driver of business strategy. What are some of the business benefits that All-Flash array can deliver to an organization? Any examples come to mind? >> Yes, I'll answer your question with one of the customer examples. Let's see how they have been doing it. It's my favorite example of Boston Red Socks. I'm from the Boston area. >> You're a fan, right? >> Absolutely. All the Boston sports teams. When Boston Red Socks was in the digital transformation journey, they had to transform a lot of things. First of all, the experiences of the spectators like us, who are in the field living to the moment, whether it's the jumbotrons, or getting the experience digitally on the smartphones. That's one aspect. The other aspect is there are a lot of analytics on all the players across MLB. To get the competitive advantage in terms of, which pitch or which batter? Who has what capabilities or deficiencies that they can go after the right player or when they are against them, how to take advantage of them. And then there are a lot of the business applications in a virtualized environment. As you look, ranging from better spectator experience, ranging to the coaches getting competitive advantage from the opposing players or the scouting department. And running the general back office applications, like Exchange and (mumbling), whatever need might be. Now they were able to consolidate all of these things into the XtremIO All-Flash array platform. And the ability to deliver this performance as well as getting a data reduction of almost seven is to one, was a key for Red Socks' digital transformation journey. >> So the business impact to Lisa's point is lower cost obviously, simpler management. But also faster time to result? How did they turn that into a competitive advantage? >> If they could run... Those analytics previously used to take ten hours. Now they can do it in two hours. That's an 80% faster turnaround time. Right? Previously if they could support 10,000 spectators on one particular wireless network. Now they have 80,000. It's the experience that's transformative for folks who are enjoying the game. It's the number of applications they are running. It's how they are running. They're viewing IT as a strategic investment. As opposed to something that's needed to run the operations. >> Well baseball games are like five hours now, cause you can even do an in game at that speed. How 'about the data services? When Flash first came out, All-Flash architectures they were not very rich in terms of data services. That's evolved. I mean the industry in general, and Dell EMC specifically, has put a lot of effort into that. Maybe you could describe some of the data. What do we mean by data services? Let's talk about copy services, migration services, snapshotting, etc. What are the important ones that we should know about? >> The important data services are thin provisioning, the data reduction technologies, the duplication, compression. Then you have your data protection in forms of various types of array technologies. The most important one I'll put out as how matter your snapshot surfaces, as well as what you can do for your data protection, business continuity, disaster recovery. Those are very critical for any businesses that needs to rely upon having their systems up and running 365 days 24 seven. Having those type of data surfaces is a key. And not only having, but also having a maturity. For example, taking VMAX All-Flash in this particular case, right? It's upon two (mumbling) of reliability, where SRDF is the gold standard in industry, in terms of resiliency, right? Six-ninths of ability. Those... Somebody coming up with brand new array on Day One cannot have it. We have seen that evolution with folks who originally had very fast storage. But then there was no data services. Right? It's the evolution of having the performance as well as the right data surfaces. That helps the customer transform their journey, both in terms of modernizing the IT infrastructure, as well as having the digital transformation to be competitive today and tomorrow. >> And the positioning of XtremIO, just to clarify for our audience, cause you got All-Flash VMAX, you got XtremIO. It's really... It's the high end of the midrange. Is that how we should think about that? >> We have a lot of... As you said the IMAX All-Flash, XtremIO, they're all important, and effectively we have the portfolio because with one product you cannot solve each and every customer needs. So picking on your very specific example, XtremIO is great for mixed workload consolidation, virtualized applications, VDI, as well as situations where you have lots of copies. So for example, you have a database, you need to create (mumbling) copies. You have copies for your backup, sandboxing. In these type of scenarios XtremIO is extremely good. And kind of like is the sweet spot. We are going to... We are having new XtremIO X-Bricks that are even lower priced point than the previous generation. Literally 55% better price entry point. Now this enterprise plus capabilities of XtremIO will be also available in the mid-market, at the mid-range price. >> Well Chhandomay, thanks so much for stopping by, and not only expanding on the customer awards that we saw this morning, by sharing with us the impact that the Boston Red Socks were making. But also sharing with us what's new with XtremIO and All-Flash. >> Thank you. >> And speaking between two Bostonians... >> Big night tonight. You got Bruins. We got Celtics. Red Socks take a back seat for awhile. But they'll be back. >> We want to thank you for watching theCUBE. We are live at Day One of Dell Technologies World. I'm Lisa Martin with Dave Vellante. Thanks for watching. Stick around, we'll be right back after a short break.