absolutely I think if I were to net it out Jeff what I'm sensing is there is a whole movement to shift security left which is this whole idea of IT stepping up as the first line of defense reduce cyber exposure take care of patching multi-factor authentication reduce their tax surface intrinsic security right so you know DevOps active ops take care of it right up front with all the apps even get built right then there is another movement to shift things right which is take care of the new new aspects of the attack surface right what the hackers always take advantage of of other areas where in a sense we are unprepared and for a long time they've seen us being unprepared in terms of reducing the attack surface and then they go after the new aspects of the tak surface and what are those IT I ot ot data as as an attack surface and the edge right so so these are areas where there's a lot of activity a lot of innovation you know on the on the air on the floor here if you walk the corners shifting left shifting right as in all the new aspects of the tax F is I'm seeing a lot of conversations a lot of innovation in that area I think it also boils down to real-world examples we've been really understand the demographics that we're working for I think today it's the first time really in history that we have four generations working side-by-side in the workforce so we have to understand that people learn differently training should be adjusted to the type of people that we're teaching but phishing doesn't just oil down to clicking on links phishing teaches also it boils down to tricking somebody getting someone's trust and it can come in different forms for example think of social media how do people connect we're connecting across social media on many different platforms I'll give a very easy example LinkedIn LinkedIn is for business have form we're all connected on LinkedIn why we connect on LinkedIn because that's a social platform that people feel safe on because we're able to connect to each other in a business form I want to think of the person who's getting the first job with an organization their first job in maybe their project manager and they're working for Bank a excited to be working for Bank a hey I'm gonna list all the projects I'm working for so here's now my resume on LinkedIn I'm working on project ABCD and this is my manager I report to perfect there's some information sitting there on LinkedIn now what else I will tell you is that you might have somebody who's looking to get into that Bank what will they do let's look for the lowest hanging fruit who this new project manager oh I see they're working on these projects and they're reporting in to someone well I'm not a project manager I'm a senior project manager from a competing bank I'm gonna befriend them and tell them that I'm really excited about the work they're doing here there's social engineering their way into their friendship into the good graces into their trust once done the video becomes a trusted source people share information freely so people are putting too much information out there on social trusting too easily opening the door for more than a phishing attack and things are just rapidly going out of control right so my co-founder and I both came from the world of being practitioners and we saw how limited the space wasn't actually changing human behavior I was given some animated powerpoints that use this to keep the Russians out of your Network which is a practical joke unless your job is on the line I took a huge step back and I said there are other fields that have figured this out behavioral science being one of them they use positive reinforcement gamification marketing and advertisement has figured out how to engage this human element just look around the RSA floor and there are so many learnings of how we make decisions as human beings that can be applied into changing people's behaviors and security so that's what we did adventure so this is my first early stage company we're still seeking series a we're a young company but our mantras we are the data value company so they have had this very robust analytics engine that goes into the heart of data I can track it and map it and make it beautiful and Along Came McNeely who actually sits on our board Oh does he and they said we need someone who's this week it's all happening so they asked Scott McNealy who is the craziest person in privacy and data that you know and he said oh my god get the done any woman so they got the den of a woman and that's what I do now so I'm taking this analytics value engine I'm pointing it to the board as I've always said Grace Hopper said data value and data risk has to be on the corporate balance sheet and so that's what we're building is a data balance sheet for everyone to use to actually value data for me it starts with technology that takes look we've only got so many security practitioners in the company actually defend your email example we've got to defend every user from those kinds of problems and so how do I find technology solutions that help take that load off the security practitioners so they can focus on the niche examples that are really really well-crafted emails and and and help take that load off the user because users just you're not going to be able to handle that right it's not fair to ask them and like you said it was just poorly timed that helps protect it so how do we help make sure that we're taking that technology load off identify the threats in advance and and protect them and so I think one of the biggest things that Chris and I talk a lot about is how do our solutions help make it easier for people to secure themselves instead of just providing only a technology technology advantage so the virtual analyst is able to sit on premises so it's localized learning collector has to understand the nature of those strats collect to be able to look at the needles of the needles if you will make sense of that and then automatically generate reports based off of that right so it's really an assist tool that a network in min or a security analyst was able to pick up and virtually save hours and hours of time so we have this we call it a thread research group within the company and their job is to take all the data from the sensors we have I mean we have we look at about 25 petabytes of data every day all our solutions are cloud solutions as well as on forum so we get the benefit of basically seeing all the data's that are hitting our customers every day I mean we block about 1 million attacks every minutes like every minute 1 billion attacks every minute minute right we protect over 3 million databases and you know we've mitigated some of the largest DDoS attacks that's ever been reported so we have a lot of date right that we're seen and the interesting thing is that you're right we are having to always we're using that threat research data to see what's happening how the threat landscape is changing therefore guiding us on how we need to augment and add to our products to prevent that but interestingly we're also consuming AI and machine learning as well on our products because we're able to use those solutions to actually do a lot of attack analytics and do a lot of predictive and research for our customers that can kind of guide them about you know where things are happening because what's happening is that before a lot of the tacks were just sort of fast and furious now we're seeing a pattern towards snow snow and continuous if that makes sense we're seeing all these patterns and threats coming in so we're fighting against those technologies like AI Barossa using those technologies to help us soon you know decide where we need to continue to add capabilities to stop it you know the whole bad box thing wasn't a problem right a number of years ago and so it's it's ever-changing your world which frankly speaking makes it an interesting place to be yes who wants to be in a static in a boring place right well I mean we do you're a good package or a bad package you have to traverse the network to be interesting we've all you know put our phones in airplane mode at blackhat or events like that but we don't want to be on it they're really boring when they're offline but they're also really boring too attackers when they're offline as soon as you turn them on you have a problem or could have a problem but as things traverse the network what better place to see who and what's on your network and on the gear and end of the day we're able to provide that visibility we're able to provide that enforcement so as you mentioned 2020 is now the year of awareness for us so the threat aware network we're able to do things like look at encrypted traffic do heuristics and analysis to figure out should that even be on my network because as you bring it into a network and you have to decrypt it a there's privacy concerns of that in these times but also it's computationally expensive to do that so it becomes a challenge from a both a financial perspective as well as a compliance perspective so we're helping solve s even kind of offset that traffic and be able to ensure your network secure so when we started developing our cyber recovery solution about five years ago we used the NIST cybersecurity framework which is a very well known standard that defines really five pillars of how organizations can think about building a cyber resilience strategy a cyber resilience strategy really encompasses everything from perimeter threat detection and response all the way through incident response after an attack and everything that happens in between protecting the data and recovering the data right and critical systems so I think of cyber resilience is that holistic strategy of protecting an organization and its data from a cyberattack yeah I think the human element is the hardest part you know in mind of this conference and its theme the human element the hardest part about this job is that it's not just mechanical issues and routing issues and networking issues but is about dealing with all types of humans innocent humans that do strange and bad things unknowingly and it's in malicious people who do very bad things that is by design and so the research suggests that no matter what we do in security awareness training some four percent of our employee base will continually bail security awareness that's what we fished and actively and so one of the things that we need to do is use automation and intelligence so that you can comb through all of that data and make a better informed decision about what risks are going to mitigate right and for this four percent are habitually abusing the system and can't be retrained well you can isolate them right and make sure that they're separated and then they're not able to to do things that may harm the organization you

so it definitely fits into basic being able to automate the redundant main mundane types of tasks that anyone can do right so you if you think about it if you have a security operations center with five or ten analysts it might take one analyst to do a task make two comes two or three hours and where you can leverage a tool like Sansom any type of sort platform to actually create a playbook to do that tasks within 30 seconds so not only are you minimizing the amount of you know headcount to do that you're also you know using your consistent tool to make that folks should make the function of you know more I want to say enhanced so you can build playbooks around it you can basically use that on a daily basis whether it's for security monitoring or network operations reporting all that becomes and the impact of mine thank you so what we do is we are a data analytics and intelligence nonprofit dedicated to countering all forms of human trafficking whether it's labor trafficking sex King or any of the subtypes men women and children all over the world so when you think about that what that really means is that we interact with thousands of state across law enforcement government nonprofits academia and then the private sector as well and all of those essentially act as data silos for human trafficking data and when you think about that as trafficking as a data problem or you tackle it as a data problem what that really means is that you have to have a technology and data led solution in order to solve the problem so that's really our mission here is to bring together all of those stakeholders give them easy access to tools that can help improve their counterpose yeah so like a day to day or like kind of what our team does is we focus on like what's going on previously what are we seeing in the wild like what campaigns are happening and then my role within my team is focused on what's coming so what are what are red team's working on what are pen testers looking into take that information begin testing it begin building proof of concepts put that back into our product so that whether it's two weeks six months two years we have coverage for it no matter what so a lot of us a lot of our time is generating proof of concepts on what may be coming so there's a lot of you know very unique things that maybe in the wild today and then there's some things that we may never see that are just very novel and kind of once one Center once a time kind of thing I joined nine months ago and when I was interviewing for the role I remember Doug Merritt saying to me hey you know we might be the only two billion dollar enterprise software company that nobody's ever heard of he said I want to go solve for that right like the folks you know Splunk and our customers they love us our product is awesome and our culture is awesome but the world doesn't know about us yet and we haven't invested there so I want to go take the brand to the next level and I want the world to understand what data use cases are out there that are so broad and so vast leave that every problem ultimately can be solved through data are almost every problem and we wanted to set the stage for that with this new brand campaign about the product were you guys ad using Splunk and you putting data sensors out there you leveraging an existing data bulb take us through some of that you know the nuts and bolts of what's going on the price so part of it is building out some data sets so there are some data sets that don't exist but the government and the counties and the private sector have built out a huge ball of corpus of data around where the buildings are where the people are where the cell phones are where the traffic is so we're able to leverage that information as we have it today the technology we're using the Amazon stack it's easy for us to spin up databases it's easy for us to build out and expand as we grow and the response we're able to have a place for all this real-time data to land and for us to be able to build API is to pull it out very very simple when we say dated everything we really mean it it's really you know it's a personal story for me I am on the government affairs team here is blog so I manage our relationships with governor's and mayors and these are the issues that they care about right when the city is burning down the mayor cares about that the governor this is you know one of the governor and California's and major initiatives is trying to find solutions on wildfires you know I met charlie my hometown Orinda California art fire chief in that town was one of sort of the outside advisors working with Charlie on this idea and we ran I met him at a house party where the fire chief was telling me that trim my trees back and shrubs back and then I was at a conference three days later that same fire chief Dave Winokur was on a panel with like folks from a super computer lab and NASA and MIT I was like you know my fire chief's still the smartest guy in that panel I got to meet this guy a few weeks later we were literally in the field doing these proof of concepts with sensors and data super savvy folks some of the other folks from Cal Fire there you know dropping Cox was with us today here it's what my and you know we've we've just been collaborating the whole time and seeing you know that that Splunk can really put some firepower the power behind these guys and we just see like look they've got the trust of these customers and we need to make sure this idea happens it's a great idea and it's going to save lives yeah the little small nuance data to everything data time and the reason behind that was we believe you can bring and we can enable our customers to bring data to every question every decision and every action to create meaningful outcomes and the use cases are vast and enormous we talked about some of them before the show started but helping look global law enforcement get ahead of human trafficking fierce Punk and spelunking what's going on across all sorts of data sources right helping zone Haven which is our first investment from Splunk ventures which startup that's actually helping firefighters figure out burn burn patterns with pilot wildfires but also when temperatures and humidity change we're sensors are they can alert firefighters 30 to 45 minutes earlier than they would usually do that and then they can also help influence evacuation patterns I mean it's it's remarkable what folks are doing with data today and it's really at the core of solving some of the world's biggest issues so I'm glad you mentioned data right we're a data company and we're very proud that we actually pull star diversity inclusion number so we moved the needle 1.8% on gender last year year-on-year pride but not satisfied we understand that there's much more to diversity inclusion than just gender but our strategy is threefold for diversity inclusion so its workforce workplace marketplace the farces arranged is where I talk about is improving our representation so that these women are no longer the only czar in the minority they were much more represented and we're lucky we have three women on our board we have four women in our C suite so we're making good good progress but there's a lot more to do and as I say it's not just about gender we want to do we know that innovation is fueled by diversity so we want to attract you know folks of different race different ethnicity books who are military veterans people with disability one its plans to be successful the important thing thing is you know the things you mentioned the the vulnerability scanning the intrusion detection these are all still important in the cloud I think the key thing that the cloud offers is the fact that you have the ability to now automate and integrate your security teams more tightly with the things that you're doing and you can actually we always talk about the move fast and stay secure customers choose AWS for the self-service the elasticity of the price and you can't take advantage of those unless you're secure you can actually keep up with you so the fact that everything isn't based on an API you can define infrastructure as code you can actually enforce standards now whether they be before you write a line of code in your DevOps pipeline we're actually being able to detect and >> those things all through code and in a consistent way really allows you to be able to look in your security in a different way and take the kind of philosophy and mindset you've always had around security but actually do something with it and be able to maybe do the things you've always wanted to do that have never had a chance to do it so I think I think security can actually keep up with you and actually help you different you're different to your business the acquisition is really extremely you know exciting for us you know after meeting Marcus I've known of Marcus he's a very positive influence in the community but having worked with him the vision for threat care and the vision for alike rests really closely aligned so where we want to take the future of security testing testing controls making sure upstream controls are working where threat care wanted to go for that was very much with what we aligned war so it made sense to partner up so very excited about that and I think we will roll that in our gray matter platform as another capability we really see the product involving the same way that you see a lot of the portfolio overall so Doug has talked a lot about investigate monitoring and analyzing and right and so those same concepts apply to how you think about a process as well so right now we're really helping the investigation and monitoring but will also continue to extend across that spectrum lifetime a lot of cloud services and micro services observability a big part of all this yeah definitely and how we've built the product but also I think you can sit alongside some of the other things that you're also seeing in that so I think the thing to understand is correct we're not just a security company but we are number one in the security magic quadrant we're number one in both IDC and Gartner and so that's important but what happens is all of the data that you collect first security can also be used for all these other use cases so generally speaking whatever you're collecting for security is also valuable for IT operations and it's also valuable for many other use cases so I'll give you an example Domino's which is a great customer of ours there they've gone 65% of their orders now come in digitally ok and so they monitor the entire end-to-end customer experience what they monitor not only from an IT operations perspective that same data that they use for IT operations also tells them you know what's being ordered what special orders are being made and they use that data for promotions based upon volume in traffic and timing they actually create promotions so now you're talking about the same data that you collected for a security night operations you can actually use for promotions which is marketing it's a great intro on data is awesome but we all have data to get to decisions first and actions second what that in action there's no point in gathering data and so many companies been working their tails off to digitize her landscapes why well you want a more flexible landscape but why the flexibility because there's so much data being generated there you can get effective decisions and then actions that landscape can adapt very very rapidly which goes back to machine learning and eventual AI opportunity set so that is absolutely squarely where we've been focused is translating that data into value and into actual outcomes which is why our orchestration automation piece is so so important one big 18 factors that we felt as existed is for this plunk index it's only for this blank index the pricing mechanism mechanism has been data volume and that's a little bit contrary to the promise which is you don't know where the values could be within data and whether it's a gigabyte or whether it's a petabyte why shouldn't be able to put whatever day do you want in to experiment you

one thing i'd point out is well flashblade one of our products is scale out flasharray our first product is not scale out um you know scale out isn't a capability for a customer it's an architecture in how you build the product uh you know when i scale out i have more complicated software i have more components more components lead to more failures right if i have a piece of memory and it's going to fail at a certain annual failure rate and i have 10 pieces of memory i'm going to fail at 10 times that same rate so scale out introduces complexity it introduces more components and then you have to say what do you get from it so if our customers needed a lot more performance than we're delivering if they needed a lot more scale than we're delivering in the flash array product we then react to that and go build scale out where the flash array sells we don't see that as a major market need it's more of a niche where flashblade sells then there is much more of a need for that and that's why flashblade would scale out from day one the tam expansion really is following where solid state takes us you know we've gone from um a world that was where believe it or not most computers still had mechanical systems operating them it's sort of like having a mechanical calculator rather than an electronic calculator right we had mechanical disks in our computers literally spinning rust right and it's only been in the last decade where a semiconductor you know where solid state has taken uh the place of that called flash right well as that continues to get less expensive we now can bring not only flash performance into disk economics but more importantly now we can finally have modern software that is driving the need for having greater flexibility with our data as data grows it now we say it has gravity that is it gets heavy it gets hard to manage hard hard to move uh between different environments and now a lot of infrastructure operators are spending much more time managing their data managing the storage systems for their data than they are managing anything else in the data center environment we want to eliminate all that we want to automate all of that you know on the theme of decades two decades ago every application had its own individual communication stack there were dozens of different protocols and a dozen different networks in every company one decade ago ago every application had its own um custom hardware stack and and custom operating systems stack well today there's one network it's called the internet uh today everything every application every server is virtualized allowing mobility and yet storage is still static we we want this decade a bit to be about making storage and data dynamic and really responsive to the needs of the application environment sure so it's a it's a deep relationship that's only getting deeper and it's really at all levels it starts with the executive alignment you think about charlie giancarlo from cisco we've got a lot of just common cross-pollination there but now it extends certainly the field level tom and i are doing a lot of planning together in terms of having our teams go after common use cases but now it extends to engineering as well we had a ucs director plug-in that we've had for some time now uh but but pure is now first in terms of having integration into cisco intersight so we are first and only to have storage integration at the cisco intersight so that cisco and pure customers can really manage their uh environment from from one console so a lot of simplicity uh the single sas interface for managing everything tom why pure why first with that well you know nathan he articulated it well you can look at the executive level we talked about charlie but even you know all of our cisco executives but also to the engineering this the we started really strong uh with the field sales teams but even if you look at the little things that our customers notice but a lot of people may not like the internal development of validated design guides use cases we churn them out um with pure as uh you know our top ecosystem partner more than anybody and there's a lot of work being done our customers see that and it's really helped drive you know our go to market together it's really a very strong strategy and what is the type of data that's going to be the best fit for it there are a lot of common patterns for consumption in a.i uh speech recognition image recognition places where you have a lot of unstructured data or it's unstructured to a computer it's not unstructured to you when you look at a picture you see a lot of things in it that a computer can't see right because you recognize what the patterns are and the whole point about ai is it's going to help us get structure out of these unstructured data sets so the computer can recognize more things you know the speech and emotions that that we as humans just take for granted it's about having computers being able to process and respond to that in a way that they're not really capable of doing today absolutely absolutely yeah no i mean i think it's been a really exciting conference for us so far like you said a lot of payload coming out um you know as far as the building the bridge of the hybrid cloud this has been you know we this has been i would say a long time coming right we've been working down this path for uh for a couple years we started by bringing some of the cloud-like capabilities that customers really wanted and were able to achieve into the cloud back into the data center right so you saw us do this in terms of making our on-prem products easier to manage easier to use easier to automate you know but what working with customers over the last couple of years you know we realized is that as the cloud hype kind of subsided and people were taking a more measured view of where the cloud fits into their strategies what tools it brings you know we realized that we could add value in the in the public cloud environment the same types of enterprise capabilities the same type of features rich data services uh feature sets things like that that we do on premise in the cloud and so what we're looking to achieve is actually quite simple all right we want to give customers the choice whether whether customers want to run on premise or in the cloud that's just a choice of we wanted to we wanted to make an environmental choice we don't want to we don't want to put customers in a position where they have to make that choice and feel trapped in one location or another because of lack of features lack of capabilities um you know or or economics and so the way that we do that is by building the same types of capabilities that we do on-prem in the cloud giving customers the freedom and flexibility to be agile sure well we're a two-year-old uh startup uh headquartered out of bellevue washington and we really focus on two primary uh businesses we have a blockchain business and we have an ai business uh in blockchain we are one of the largest blockchain cryptocurrency hosting companies in north america uh we've got uh you know facilities uh uh four facilities in north carolina south carolina georgia and kentucky and you know really the the business there is helping companies to be able to take advantage of blockchain and then position them for uh the future you know um and then on the ai side of our business uh really you know we we operate that in two ways one is we can also co-locate and host people uh just like we do on the blockchain side but primarily we're focused on uh creating a public cloud focused on gpu-centric computing and artificial intelligence and we're there to help you know really usher in the new age of ai how does pure actually take that word simple from a marketing concept into reality for your customers yeah you know i i think i think simple is um the most underappreciated but biggest differentiator that pure has um i was recalling for someone you talked to cause earlier today i had a conversation about three weeks into the existence of pure excuse me with cause and we were just debating i mean this is before we wrote any code at all about what would be pure's long-term differentiator and i was kind of like i will be you know the flash people or high performance or whatever he's like no no we're going to be simple we are going to deliver a culture that drives some plus into our products and that will be game changing and i thought he was a little crazy at the time um but he's absolutely turned out to be right and if you if you look over the years that started with just an appliance experience a tent card install you know just a really easy environment but that's manifested itself into every product we create and it's really hard to reverse engineer that you know it's an engineering discipline thing that you have to build in the dna of the company so how do you see the partnership with splunk just in terms of supporting that tam expansion the next 10 years so analytics particularly log analytics have really taken off for us in the last year as we put more focus on it um we want to double down on our investments as we go through the end of this year and in the next year with with a focus on splunk um as well as other alliances um we think we are in a unique position because the uh rollout of smart store right customers are always on a different scale in terms of when they want to adopt a new architecture right it is a significant uh decision that they have to make and so we believe between the combination of flash array for the hot tier and flashblade for the cold is a nice way for customers with classic splunk architecture to modernize their platform leverage the benefits of data reduction to drive down some of the cost leverage the benefits of flash to increase the rate at which they can ask questions and get answers is a nice stepping stone and when customers are ready because flashblade is one of the few storage platforms in the market that is scale out bandwidth optimized for both nfs and object they can go through a rolling non-disruptive upgrade to smart store have you know investment protection and and if they can't repurpose that flash rate they can use pure as a service to have the flash raise the hots here today and drop it back off to us when they're done

absolutely now the and so we see upskilling and cross killing becoming more transdisciplinary so business people are becoming IT folks now and IT folks really business people you know we had this business IT divided for a long time it cracks me up I still go to big companies in the IT department teaching in its own building right but those days are going away and I was you know now is IT people over on the business side that lived there now right you know so we're seeing there's kind of this blending where digital is infusing everything and so you have to become digitally confident and this is where we have to make that simpler this is going back to the you know the the digital workplace the average user has had the number of applications they have to to learn double or triple in the light just the last five years right so it's a big challenge yeah well you know we ran our first customer conference our first engaged really three years ago and in Bellevue at a conference center attached to a hotel that's right next to our headquarters which is so super convenient and I think we had five seven hundred people there and it was it was a great start and then last year we doubled in size and we actually outgrew the facility in Bellevue and so when we planned for this year we said you know let's go big let's you know we felt this momentum building we had such great feedback from customers on what they learned and what they came away and could do after coming to engage that we felt we could we were ready to kind of take it to a big stage and so it was really exciting I spent before joining smartsheet two and a half years ago I spent five years at Amazon Web Services and I was fortunate enough to be there when they did their first reinvent in Las Vegas and it was roughly 5,000 people and I had a very interesting deja vu moment walking into the main auditorium here yesterday and and it just brought back all the memories of oh my gosh this is like the size of Bremen so in three years we should be roughly 25,000 we'll be in Vegas but we see a lot of interesting new technology trends and tooling that are allowing people to basically operationalize work in the seams between those legacy systems so lifting some of the data information and potentially workflow workload out of those systems and having them in a you know some of the new types of work platform that we're seeing you know which smart sheets a good example to actually operate in a much more agile way and we call that shift one from systems of record which we kind of understand to what we call systems of delivery so that two words will have a big gravitational effect on the way the rest of the business application landscape will evolve so didn't idea we know that the situation is pretty bleak right now that there are the statistics are horrible just in terms of the number of employees that are really checked out totally disengaged would would love to quit but they need the health insurance and so so we're already sort of starting from a from a pretty low place where in terms of people's engagement at work and I think a lot of the things that that drive people nuts about their work of course is a bad boss and not a great parking spot and everything but it's it's the it's the it's the little things that get in your way of doing your job and it's it's the things that just drive you nuts about some sort of process that takes forever and oh I have to keep doing this and I just already sent you that email and how come you're looking at this other version and it and it's all those impediments that really drive people crazy and that make people stressed out and and unhappy in their jobs so I do think that if you are a company like smartsheet and you have you realized this and you can slowly chip away at those impediments and the aggregate aggravate aggravations that people feel I think that's not a bad business model I think they're on to something right yeah the team is one Alliance is really figuring out how to take the cultural changes that are in flight right now and marrying those with the people and the technology and we think that it's important as things like concepts that are intimidating people ai and m/l worker replacement say whoa whoa whoa these are things where we actually think technology and people should work together as opposed to being a replacement for and I think there's a lot of Education that needs to take place so we plan on doing is doing research through this alliance and then publishing that work because I think a huge part of this is educating the market and giving them confidence to take that step you know it was interesting when I first got the call about smartsheet I had never heard of it and the way that it was positioned to me was super intriguing I realized it was one of those a category that's just not established but a category that has the potential to be the next big thing and we're not even the potential I mean it will be the next big thing and you know I met with that that was intriguing but then I met with the executive team and it was a perfect combination of a killer product but a killer company I can't tell you how special the leadership of this company is and their authenticity and their passion and their Drive and their belief it's so contagious there's no way you would not want to be a part of it so I'm and then the privilege to be able to tell this company's story I feel like it is the best-kept story not only in Seattle potentially the world and I plan to tell the story and what a gift but what a great opportunity as a marketer to have this type of opportunity you [Music]

we've made just tremendous progress over the last several years with Microsoft you know started back in 2015 where we you know cross certified hypervisors and that's kind of a basic you know let's work together over the last couple years it's truly blossomed into a really good partnership where you know I think they've and we both gotten over this you know Linux vs. Windows thing and you know I said we've gotten over I think we both recognized you know we need to serve our customers in the best possible way and that clearly means is two of the largest infrastructure software providers working closely together and what's been interesting as we've gone forward we find more and more common ground about how we can better serve our customers whether that's you know what might sound mundane that's a big deal sequel server on realm and setting benchmarks around that or dotnet running on our platforms now all the way to really being able to deliver a hybrid cloud with a seamless experience with openshift from you know on premise - - to Azure and I mean having to H Bank on States twenty five thousand containers running in production moving back and forth - sure and I think it's more building on what I talked to you about a year ago if I remember last May May of 2018 in San Francisco so I was exposing very heavily look the world's going to move towards containers the world is already embraced Linux this is the time to have a new architecture that enables hybrid much along the lines that gem and all of the clients as well as Ginni and Sasha we're talking about on stage yesterday so you put all that together and you say that is what we mentioned last year and we were clear that is where the world is going to go nice step forward a few months from there into October of 2018 and on 29th of October we announced that IBM intends to acquire Red Hat so then you say wow we put actually our money where amount was we were talking about the strategy we were talking about Linux containers openshift the partnership we announced last May was IBM software products together with OpenShift that is we already believed in that but now this allows us coming together it's it's more like a marriage then sort of loose partners passing each other in the middle of the night we are so excited and you know having put in all the time part of this is representing all the work the team has done and the communities have done when you think about all the work that goes into a Linux distribution it is everybody it's the community's it's the partners so we released the Red Hat Enterprise Linux eight beta in November mid-november we've had 40,000 downloads of that beta since November people who have provided feedback and comments suggestions all of that fed into what we've released today as the Red Hat Enterprise Linux eight general availability so it's a big day and part of it is we're just so proud of how we've done it and what we've done and we've really redefined what are not the value of an operating system with Red Hat Enterprise limits eight tech transformation started about ten years ago bean CI over the company about ten years and frankly the first five years were just fixing the basics so getting in place what we'd call world-class systems doing a bunch of stuff on resilience and security and all of that kind of stuff and the other thing and this is the dramatic change you know ten years ago when I joined the company we were 85% outsource to managed service vendors so I had technology people that basically were signing contractors and managing service agreements if we didn't have technology DNA and so you know over those five years and the full ten years actually we've been to not about just in sourcing and rebuilding our technical muscle if you like so now we're we've gone from 85% outsource to 90% in sourced so we run build and manage our own we're at word now a technology company yeah and and five years ago we had a real big shift and you know we were we were closest to what was going on in China and so probably saw this before many many of the other banks saw this around the world of what Alibaba was doing with ant financial and $0.10 and this whole just just complete disruption of how customers interact with the banking industry so we got an early lead on this digital transformation and really for the last five six years would be doubling down on building a pure digital offering and we see ourselves as a technology company providing banking services not as a bank with some technology department in the backend open source is the innovation model going forward period end of story full stop and I think as I said in my keynote yesterday you know leading up to the the biggest acquisition ever for a software company not an open source software coming a software company that happened to be an open source software company I don't think there's any doubt that that open source has one here here today it and it's because of the pace of innovation yeah our goal is to make sure we're supporting those upstream communities so all of all of Red Hat software is open source and we work with a whole community of individuals and companies and the upstream open source software and we want to make sure that we're not just contributing features that we want but that we're a good player or that we're helping to make sure those communities are healthy and so for a number of the projects that were involved in we actually assigned a full-time Community Manager a community lead to help make sure that project is healthy so we have someone on everything from Saif and Gloucester to fedora to kubernetes I'm just making sure the community does well yeah we do a little bit of both and so a lot of it is responding to the community and that's one of the areas that Red Hat is really excelled as taking what's popular what's working upstream and helping moving along make it a stable product or stable solution that developers can use but we also have a certain agenda or certain platforms that we want to present so we start from like various runtimes to actually contain our platforms and so we want to have to kind of drive some of that initiatives on our own to help drive fill that need because we hear it from customers a lot it's like things are doing are great but like there's all these projects that need to come together sort as a product or unified experience and so we spend a lot of our time trying to bring those things together as a way to help developers do those different tasks and also focus across like not just the Java runtimes which we hit a lot of Java so you might have baked security in right I mean we have a secure supply chain and you talk about difficult things for la right every package that we that comes in that is we totally refresh everything from upstream but when they come in we have to inspect all the crypto we have to run them through security scans vulnerability scanners we've got three different vulnerability scanners that we're using we run them through penetration testing so there's a huge amount of work that just comes just to inherit all that from the upstream but in addition to that we've put a lot of work into making sure that well our crypto has to be Fitz certified right which means you've got to meet standards we also have work that's gone in to make sure that you can enable a security policy consistently across the system so that no application that you load on can violate your security policy we've got enough tables in their new firewalling Network bound disk encryption that actually it kind of ties in with a lot of the system management work that we've done so a thing that I think differentiates rl8 is we put a lot of focus on making it easy to use on day one and easy to manage day two well we're not getting there were there what that allows us to do is to take the reference designs that we have and the testing that we've we've previously validated with Intel and Red Hat and be able to snap pieces together so it's just a matter of what's different and unique for the client in the client situation and their growth pattern what's great about trueskill is that in this model is that we can predictably analyze or consumption forward based on the business growth so for example if you're using open shipped and you start with a small cluster for say one or two lines of business as they adopt DevOps methodologies going from either waterfall or agile we can we can predictably analyze the consumption forward that they're going to need so they can plan years in advance as they progress and as such the other snap-ins say uh storage that they're going to need for data and motion or data at rest so it's it's actually smarter and what that ends up doing is obviously saving the money but it saves some time you know typical model is going back to IT and saying we need these servers we need the storage and the software and bolt it all together and the IT guys are you know hair on fire running around already so so they can you know as long as IT approves it they can sort of bypass that that big heavy lift we're trying to do is create role models for women and girls who would like to participate in technology but perhaps are not sure that that's the way that they can go and they don't see people that are like them so they're less tendency to join into this type of communities so with the community award winner we're looking at a professional who's been contributing to open source for a period of time and with our academic winner we're looking to spur more people who are in university to think about it and of course the big idea is you'll all be looking at these women as people that will inspire you to potentially do more things with open source and more things with technology we've been hearing for many many years that we definitely need to have more gender diversity in tech in general in an open source and Red Hat is kind of uniquely situated to focus on the open source community and so with our role is the open source leader we really feel like we need to make that commitment and to be able to foster that right so so Sierra's a supercomputer and what's unique about these systems is that we're solving there's lots of systems that network together maybe are bigger a number of servers than us but we're doing scientific simulation and that kind of computing requires a level of parallelism and it's very tightly coupled so all the servers are running a piece of the problem they all have to sort of operate together if any one of them is running slow it makes the whole thing go slow so it's really this tightly coupled nature of supercomputers that make things really challenging you know we talked about performance if if one server is just running slow for some reason you know everything else is going to be affected by that so we really do care about performance and we really do care about just every little piece of the hardware you know performing as it should so we thought okay let's take all of these best practices that we have and build more or less a methodology around it how to make this actually works like how to do this we really broke it down into like individual sprints do dissin sprint one the distance sprint do to really have the results within three months six months 12 months whatever the places that you want to run on and then we realize talking to customers this by itself isn't still enough so that's why we started to open up this to an entire ecosystem so we brought ecosystem partners along like working closely with red a lot of other companies but also system integrators who can help us we speak up projects because we as a company are software companies we're not a services or consulting company and we do support customers and some of those engagement but if you think of like a really fortune 500 company that's a multi-year project it will keep hundreds of busy people busy so to recap like built-in methodology we built the ecosystem to deliver on that promise at scale and now the last step was we as we were doing this we also built like a reference architecture for it and was just in an internal IDE so how do we like structure this bill that reference architecture and then realize okay I think it's kind of like super helpful for customers so that this way we then decided to open source this reference architecture is fabric as well to like the entire software community so they can also use it so technically these three pieces it's the methodology it's the ecosystem and it's like the reference architecture that you can work with to help you achieve you [Music]

absolutely build on some of Ben's comments because I think what he articulated is one of the killer use cases of VMware cloud on a to us that I think is driving that momentum right which is we think it's one of the best solutions in the marketplace and customers have told us this to enable them to migrate and modernize right so let's talk about the migrate piece first right you have customers that have these tremendous enterprise class applications running on vSphere and their data centers they're built on top of that platform they depend upon it for performance availability everything else with VMware Club a native us we can migrate those applications with zero downtime no refactoring no additional cost in a matter of weeks or months as opposed to if you had to refactor everything to take years and millions of dollars right so that cloud migration use case I would say is that is the killer for us and that's you know exactly what Ben was we're definitely seeing that and I think that's the thing that really got me excited about a year ago was watching enterprises make that transition and say you know what the center of gravity has gone from architectures inside the on-prem data center is now moved to in the cloud I mean that shift has happened it happened to people talked about it five years ago but they didn't mean it and now when you talk to enterprises they are actually moving into the cloud not just talking about it and they're saying where that is the center of gravity and what's interesting to me was I think even just the tone of Andy Jesse today and what he was talking about was it's once you define what your architecture is you push it everywhere so cloud 1.0 and 2.0 was really more about taking my architecture that was on prem and pushing it into the cloud so let me take virtual appliance a virtual router basically my hardware router packaged it up put it on the cloud that's not cloud native it's cloud naive as we talk right and so what's the chase has happened is now everybody realizes the center of gravity is in the cloud and you start seeing things like outposts you see things like wavelength you see things like you know tgw network manager things getting pushed out the architecture of the cloud now actually pushing out and extending out into on-premises I've been at it for a couple of decades so in the beginning there was a lot of evangelism that this is safe it's consumable by the enterprise it's not some kind of crazy idea to bring open-source you're not going to lose your intellectual property or things like that those days I mean I I'm sure you can find an exception but those days are largely over in this in the sense that open-source has gone mainstream so I would say open-source is one most large enterprises have an open-source strategy they consider open source as critical to not only how they source software from vendors but also how they build their own applications so the world has really really evolved and now it's really a question of where are you partnering with vendors to build infrastructure that's critical to your business but not your differentiator and where are you leveraging open-source internally for your to differentiate your business I think that's a more sophisticated view it's not the safety question it's not is it is it legally you know that you're bringing legal concerns into the picture it's really a much different conversation and people in the enterprise are looking how can we contribute to these projects so that's really it's pretty exciting actually both are a great place for startups right they're not meters cluesive so I think if you go horizontal the amount of data being created by your applications your infrastructure your sensors time series data ridiculously large amount right and that's not going away anytime soon I recent did investment ain't chronosphere did you guys covered over at coupon a few weeks ago that's talking about metrics and absorbedly data time series data so they're gonna handle that horizontal amount of data petabytes and petabytes how can it query this quickly deeply with a lot of insight that's one play right cheaper better faster at scale the next play like you said is vertical it's how do I own data or slice the data the more contacts they know as can have we talked about like the virtual cycle of data right this the system of the tile well bye own set of da to be healthcare government or self-driving car data that no one else has I can build a solution and to end and go deep and so either pick a lane or pick a geography you can go either way it's hard to do both though it's hard for start-up any big company it's very few companies can do two things well starves especially succeed by doing one thing very well I'm impressed they got two CEOs the CEO of goldman sachs david solomon the CEO of Cerner coming to the show that's kind of rare that the CEO of your customer comes to the show I guess the second thing I'd say is you know Amazon is not a rinse and repeat company at these shows although they are when it comes to shock and awe so they ticked the Box on shock and awe but you're right John they're talking a lot about transformation I would sort of think of it as a disruption here's what I would say to that Amazon has a dual disruption agenda one is its disrupting the horizontal technology stack and two it's disrupting industries it wants to be the platform of which startups in particular but also incumbents can disrupt industries and it's in their DNA because it's in Amazon's DNA and I think it's the last thing I'll say as Amazon is the retai Amazon retail is the you can buy anything here store and now to your point Justin Amazon Web Services is you can get AWS anywhere at the edge and a little mini data centers that they're built on outpost and of course in the cloud absolutely you know I'd say primarily were most kind of pleased with the variety of workloads and these cases the customers are bringing us into you know I think when we started out on this journey we saw a tremendous promise for the technology to really improve the aw psycho system and customer experience for people that wanted to consume block storage in the cloud what we learned as we started working with customers is that because of the way we've architected the product brought a lot of the same capabilities we deliver on our flash arrays today into AWS it's a lot of customers to take us into all the same types of workloads that they put flush arrays into right so that's their Tier one you know mission-critical environments there VMware workloads their Oracle workloads or safety workloads they're also looking at us from everything from you know to do lifts and shifts test and dev in the cloud as well as dr right and and that again i think you know speaks to a couple things it speaks to the durability the higher level of service that were able to deliver in AWS but also the compatibility with which we're able to deliver the same sets of features and you know have it operate in exactly the same way on prime in the cloud because it's look if you're gonna dr the last time you know the last point in time you want to discover that there's a caveat hey this feature doesn't quite work the way you expect is when you have a dr failover and so the fact that we set out with this mission in mind to create that exact level of sameness you know it's really paying dividends in the types of use cases the customers are bringing us into I think we're delighted you know Mike obviously and I've been friends for years he's had some connections with VMware in his past that that that certainly helped in setting up this partnership so we're grateful to Mike and Andy and the team for that and it's you know two and a half to three years now since we announced it tremendous amount of customer interest listen you know we said at the beginning of this when you take sort of the king of the public cloud and the king the private cloud together and don't force customers to say these have to be separate doors you can do them both together customers like that message and what we've been really doing over the course the last 12 18 months is perfecting use cases for this platform I think to us the key word is migrations cloud migrations when people are moving their workloads of an app off vmware vsphere or our cloud foundation we want this to be the best place for it to land we are more cloud and AWS for migration opportunity and anything short of that refactoring app would be you know not something that would be a good use of people's time and money because they should be then modernizing with all the wonderful services that Amazon's built once they've migrated so we've really perfected our message in the course the last six 12 months to two ms migrated and modernized migrated modernized so we could migrate you into this avenue and then modernized with a set of container and other services so that mess is working we put on stage at VMware and there are many of them here too big Amazon customers VMware cloud and Amazon Freddie Mac and IHS market and they were telling are tens of thousands customers at those shows and similarly many of them here that that's the best option to be able to do things yeah so if you know public sector public sector actually has a lot of Windows or Microsoft workloads in it and so we're seeing a lot of public sector customers looking to modernize their Windows workloads in fact we made several announcements just yesterday around helping more public sector customers modernize for example one is Windows Server 2003 and 2008 will go out of support and so we have a great new offering with technology that can help them to not refactor but actually abstract those layers and move quickly to 2016 and 2019 because both of those will go out of support in January and Dave mentioned you know cloud first strategies but we're also seeing a lot of movement around data you know data is really powerful Andy mentioned this as well yesterday but for example in our partner keynote where I just came from we had on stage Avis yeah hey this not public sector customer but what they're doing is the the gentleman said you know your car can now talk to you and that data is now being given to local state officials local city officials they can use it for emergency response systems so that public and private use of data coming together is also a big trend that we're seeing it's all about breaking down I mean if devops is all about breaking down silos between Devon operations and in other parts of the business Deb sack ops or secure dev ops or whatever we want to call it is just bringing more people into the fold and helping security join that party and get at things earlier in the cycle so we can catch it before it you know before before there's a breach that's in the news so you know I think there's going to continue to be convergence between Amazon business in AWS over time and in the marketplace we offer kind of a goods marketplace they offer a software marketplace and a services marketplace and so I think we're still working on how do we harmonize that experience better and we've got a lot of work to do there we have a saying at Amazon that it's always day one and that's a great example where we still have a lot of work to do but one of the things that is another one of our partners Koopa which is a procure-to-pay a platform and a longtime Amazon business partner we've done some pretty creative things to improve the user experience and make it easier for customers use both Koopa and Amazon business and in concert together Koopa announced a couple months ago they've built an integration to the AWS marketplace and so that's a pretty exciting opportunity where people who are provisioning services via AWS be a Dobis marketplace can have that that transaction flows seamlessly into their prepare to pay solution and let you know the user who's provisioning that focus on what they want to do which is developing new solutions to serve customers I mean the spectrum is massive so the our biggest challenge is keeping up with everything and continuing to innovate with all the things that are happening but again the benefits of the platform that we have enables us to do that and the enhancements we weight made this year this year now that our platform is is more open we can connect a collect data from multiple entities not just the New Relic agents that we've that we were built on so the concept of observability and being able to observe the entire application environment it is built on the fact that data's got to come from all these different places then we need to turn that around and curate it into the right experience in the right use case that the customer is looking for so all I can say is that our company's built on innovation we try and stay on the cutting edge of all that trying to stay current with that and meet the customers needs as as everyone here is innovating like crazy at scale well I mean there's a lot of a lot of the technology we build comes from things that we're doing ourselves you know and that we're learning ourselves it's kind of how we started thinking about microservices serverless - we saw the need we know we would have we would build all these functions that when some kind of object came into an object store we would spin up compute all those tasks would take like three or four hundred milliseconds then we spin it back down and yet we'd have to keep a cluster up in multiple availability zones because we needed that fault tolerance and it was we just said this is wasteful and that's part of how we came up with lambda and you know when we were thinking about land that people understandably said well if we build lambda and we build this serverless event-driven computing a lot of people were keeping clusters of instances aren't going to use them anymore it's going to lead to less absolute revenue for us but we we have learned this lesson over the last 20 years at Amazon which is if it's something it's good for customers you're much better off cannibalizing yourself and doing the right thing for customers and being part of shaping something and I think if you look at the history of technology you always build things and people say well that's going to cannibalize this and people are gonna spend less money what really ends up happening is they spend spend less money per unit of compute but it allows them to do so much more that they ultimately long-term end up being you know more significant customer look I mean the the SHA this show estate Volante says amazon always delivers with the shock and awe you know broadest and deepest so many pieces here you know I took a selfie with many people and the biggest celebrity of the show AWS outpost the rack it's over in the corner there and people asking me about all the gear inside I said you should stop asking about that because you will never touch it only AWS will so put a curtain around it it's managed as a service and that's what I think people are still trying to understand we've been talking about cloud for what 15 years now but Amazon's positioning on cloud is still different than everyone else's when I think back to some of the waves there's that buzzword and there's one or two that really architectural er different in deliver and Amazon laid out their strategy even more and through the geeky pieces and transformation was the theme you [Music]

I met with some CIOs yesterday from the state local government now that has been a super surprising market for me where I'm seeing them actually 2018 was a true change of the year for them massive workloads in the state Medicaid systems that are moving off of legacy systems on AWS justice and public safety systems moving off on AWS so that's where you're seeing news but you know what they shared with me yesterday and my theme as you saw today was removing barriers but they talked about acquisition barriers still that states still don't know how to buy cloud and they were asking for help can you help kind of educate and work with our acquisition officials so it's nice when they're asking us for help in areas that they see their own lockers Cyber Command cannot see today attacks on our country so they're left to try to go after the offense but all the offense has to do is hit over here they're looking at these sets of targets there you don't see the attacks so they wouldn't have seen the attack on Sony they don't see these devastating attacks they don't see the thefts so the real solution to what you bring up is make it visible make it so our nation can defend itself in cyber by seeing the attacks that are hitting us that should help us protect companies and sectors and help us share that information it has to be at speed so we talk about sharing but it's senseless for me to send you for air traffic control a letter that a plane is located at overhead you get it in the mail seven days later you think fighting blindfolded that's right I mean you can't do either and so what it gets you to is we have to create the new norm for visibility in cyberspace this does a whole host of things and you were good to bring out it's also fake news it's also deception it's all these other things that are going on we have to make that visible so what ground station is is it's a service that you can use like any other cloud service just pay for what you use on demand you can scale up you can scale down and we think that we're in the early stages of opening up innovations in this industry where an AWS announced a partnership in October 2016 and it really was the coming together of the best in the public cloud with the best of the private cloud for what we describe as the hybrid cloud opportunity in the past two and a half years coming up on three years pretty soon has been incredibly exciting we started off with some of the key industries that we fell for us public sectors are among our top three industries by financial services telco public sector healthcare manufacturing all the key industries technology we're looking for ways by which they could take their applique into the cloud without having to refactor Andry platform those applications that's a big deal because it's wasted work if you could lift and shift and then innovate and that's the value we brought to the public sector and some of our earliest customers were customers in the public sector like MIT schools about both of the regulated industries in the on-premise world were very strong in almost every civilian military the legislative branch the judicial branch the federal agencies all of them use us millions and millions of workloads the question really is how is they think about modernization and yet they get the best benefits of the public cloud while leveraging their VMware footprint at FINRA we have a very deliberate technology strategy and we constantly keep pace with technology in order to affect our business in the best possible way we always are looking for means to get more efficient and more effective and use our funding for the best possible business value so to that end we are completely in the cloud for a lot of our market regulation operations all the applications are in the cloud we in fact we were one of the early adopters of the cloud from that perspective all of our big data operations were fully operational in the cloud by 2016 itself that was itself a two-year project that we started in 2014 then from 2016 we have been working with machine language and recently over the past six months or so we've been working with neural networks so this was an opportunity for us to share what where we have been where we are coming from where we are going with the intent that whatever we do by way of principles can be adopted by any other enterprise we are looking to share our journey and to encourage others to adopt technology that's really I mean the problems that could be solved with technology now for good will I think will outweigh the technology for hill as Jay Carney calls it so right now when everyone's talking about Facebook and all this nonsense that happened with the elections I think is that's pretty visible that's painful for people to kind of deal with but then the reality is that never should have happened I think you're gonna see a resurgence of people that are going to solve problems and if you look at the software developer persona over the past 10 to 15 years it went from hire some developers build a product ship it market and make some money to developers being the front lines power players in software companies they're on the front lines they're making changes they're moving fast creating value I see that kind of paradigm hitting normal people where they can impact change like a developer would for an application in society I think you're gonna have younger people solving all kinds of crisis around whether it's hopefully crisis healthcare these problems will be solved at a-- will be a big catalyst a great example it would be when you think about all these siloed organizations within our community care you're unable to track any one one record and the record could be an individual or an organization so well what they're doing is they're moving all those disparate data silos into an opportunity to say let's do how many constituents do we have what type of services do they need how do we become proactive so when you take a look at someone who's moved into the community and their health record comes in what are the services that they need because right now they have to go find those services and if the county were to do things more proactively say hey these are the services that you need here's where you can actually go and get them and it's it's those individual personalized engagements that once you pull all that data together through all the different organizations from the beginning of a 911 for whatever reason through their health record to say this is the care that they need they these are the cares that they have and these are the services that they need and oh by the way they might be allergic to something or they might have missed a doctor's appointment let's go ensure that they're getting the health care there's one state that's actually even thinking about their senior care why don't we go put an Alexa in their house to remind them that these are the medications that you need you have a doctor's appointment at 2:00 o'clock do you want me to order a ride for you to get to your doctor's appointment on time that is proactive you walk around the expo floor here the booths are much smaller and I didn't understand that at first and then it quit for me if you want to sell services to government you don't buy a bigger booth you buy a congressperson and it turns out those are less expensive many technologies can be used for for good or for ill we we have a service at AWS a facial recognition service we're certainly not the only company that provides that service to customers thus far since Amazon recognition has been around we've had reports of thousands of positive uses - you know finding missing children breaking up human sex trafficking human trafficking rings assisting law enforcement in positive ways we haven't heard yet any cases of abuse by law enforcement but we certainly understand that that potential exists and we we encourage regulators and lawmakers to look closely at that we've put forth publicly guidelines that we think would be useful as they build a legislative or regulatory framework you

yeah I probably would use a sort of ever-changing I would say ever-expanding you know but you have to write because what we saw when we started off is roll around how to automate my datacenter how do I get a cloud experience in my data center what we see changing and okay Frank is driven by this whole app refactoring process that customers want to deploy apps maybe in the cloud maybe develop in the cloud and so they need an extension to the automated data center into the cloud and so really what you see from us is an expansion of that ACA concept you rangas point we actually really didn't change we just we're just extending it to container development platforms two different cloud environments what's the same area automate end-to-end network reach as well as the segmentation what is the right there right sorry security regime in this you know cloud era how is it evolving well I mean what we're doing is we're bringing tools like tetration which now runs on Prem and in the cloud things like stealthWatch which runs on from in the cloud and simply bringing them security frameworks that are very effective we're I think a very capable of well known security vendor but bringing them the capability to run the same capabilities in their on-prem environments and their data centers as well as in multiple public clouds and that just eliminates the seams that hackers could maybe get into it makes common policy Possible's they can define policy around an application once and have that apply across the vault environments which not only it's easier for them but it eliminates potential mistakes that they might make that might leave things open to a hacker so for us it's that simple bringing very effective common frameworks for security across all these cisco has embraced the idea of being a platform and not a siloed individual product line and so for a service provider like CenturyLink for us to be able to embrace that same philosophy of the platform of services what that means is that our engineering and field ops folks our Operations teams do all the hard work on the back end to make sure that we have established all of the right security the right network the reliability the global scalability of our specific platform of services and being that leader in telecommunications and then we're able to lay that cisco platform on top of it and what happens then from a product management level is once you've established that foundation it's really plug-and-play the customer calls and says I need calling I need meetings I need you know whatever it is they need and we build that solution and very quickly can put those components into play and get them to use the service right away so what we've done across the portfolio even in primary storage is made sure that we've done all sorts of things that help you against a ransomware a malware attack keep the data encrypted I think the key point and actually I think Silicon angle wrote about this is like some like 98% of all enterprises getting a broke it in two anyway so it's great that you've got security software on the edge with at the IBM or RSA or blue coat or checkpoint oh who cares who you buy the software from but when they're in there stealing and sometimes you know some accounts have told us they can track them down in a day but if you're a giant global fortune 500 datacenter look it may take you like a week so they can be stealing stuff right and left so we've done everything from we have right once technology right so it's immutable data you can't change it we've got encryption so if they steal it guess what they can't use it but the other thing we've done is real protection against ransomware now that's a great question in terms of modernization of infrastructure and there's some really interesting trends that I think are occurring and I think the one that's getting a lot of us is really edge computing and what we're finding is depending on the use case it can be an enterprise application where you're trying to get localization of your data it could be an IOT application where it's it's really critical for latency or bandwidth to keep compute and data close to the thing if you will or it could be mobile edge computing where you want to do thing like analytics and AI on a video stream before you tax the the bandwidth of the cellular infrastructure with that data stream so across the board I think edge is super exciting and you can't talk about edge with like I said talking about artificial intelligence another big trend whether it's running native running with an accelerator an FPGA I think we're seeing a myriad of use cases in that space but Security's in the end to your point right I've got software to find access I've got mobile access points I've got you know tetration I've got you know all of these products that are helping people that in the past they were just patching holes in the dike you know hey this happened let's put this software product here this happened let's put this in and we actually built the security practice like the last three or four years ago it's growing you know the number of people that are whether it's regulation compliance you know I got some real problem I think I've got a problem and I don't know what it is our ability to come back and sit down and say let's evaluate what your situation is so I was talking to the networking guys and so Wow enterprise networking it's up way up what's driving that the need to transform or is that you know what is it they're like a lot of times it's something are long security that's making them step back and reevaluate and then sometimes that transfer translates into an entire network refresh there are tools that people use and everybody's environments a little different so some might want to integrate in and use ansible terraform you know tools like that and so then you need code that will help integrate into that other people are using ServiceNow for tickets so if something happens integrate into that people are using different types of devices hopefully mostly Cisco but they may be other using others as well we can extend code that goes into that so it really helps to go in different areas and what's kind of cool is that our there's an amount of code that where people have the same problems you know and you know you start doing something everyone has to make the first few kind of same things in software let's get that into exchange and so let's share that there's places where partners are gonna want to differentiate keep that to yourselves like use that as your differentiated offer and then there's areas where people want to solve in communities of interest so we have we have someone who does networking and he wants to do automation he does it for power management in the utilities industry so he wants a community that will help write code that'll help for that area you know so people have different interests and you know we're hoping to help facilitate that because Cisco actually has a great community we have a great community that we've been building over the last 30 years there the network experts they're solving the real problems around the world they work for partners they work for customers and we're hoping that this will be a tool to get them to band together and contribute in a in a software kinda way they have the right reason to be afraid because so many automation was created a once user exactly was right and then you have the cost of traditional automation you have the complexity to create a network automation you guys realize that middle coordination you cannot have little automation only work on a portion of your needle you have to work on majority if not all of your needle right so that's became very complex just like a you wanna a self-driving car you can go buy a Tesla a new car you can drive on its own but if you wanna your 10 year order Toyota driving on its own richer feared that's a very complex well let's today Network automation how to deal with it you have to deal with multi vendor technology Marty years of technology so people spend a lot of money the return are very small they so they have a right to affair afraid of it but the challenge is there is what's alternative yeah I think that is one of the things that's very unique about the definite community is within the community we have technical stakeholders from small startups to really large partners or huge enterprises and when we're all here in the demo soon we're all engineers and we're all exchanging ideas kind of no matter what the scale so it becomes this great mixing of you know shared experiences and ideas and that is some of the most interesting conversations that I've actually heard this week is people talking about how maybe they're using one Cisco platform in these two very different environments and exchanging ideas about how they do that or maybe how they're using a Cisco platform with an open-source tool and then people finding value in thinking oh maybe I can do that in my environment so that part of the ecosystem and community is very interesting and then we're also helping partners find each other so we do a lot of work around you know here's a partner in the Cisco ecosystem who goes and installs Meraki networks right here's a software partner who builds mapping technology on top of indoor Wi-Fi networks and getting those two together because the software partner is not going to install the network and the network person may not write that application in that way and so bringing them together we've had a lot of really good information coming back from the community around kind of finding each other and being able to deliver those outcomes what are you guys doing Tom we'll start with you how are you guys working together to infuse and integrate security into the technologies and that from a customer's perspective those risks that dial down yeah so so we're in Cisco's integrating security across all of our product portfolio right and and that includes our data center portfolio all the way through our campus our when all those portfolios so we continue to look for opportunities to to integrate you know whether it's dual factor authentication or things like secure data center with a fire you know of highly scalable multi instance firewall in front of a data center things like that so we're we're definitely looking for areas and angles and opportunities for us to not only integrate it from a product standpoint but also ensure that we are talking that story with our customers so that they know they can they can leverage Cisco for the full architecture from a security standing on the storage of the data from an encryption perspective and as it gets moved or his mobile you know that that level of security and policy follows it you know wherever the data is secure of course enemy everybody always wants more performance they want lower cost security in many ways has begun to trump those other two attributes they've they've become table stakes security as well but security is really number one now ya talk about that talk about the major trends that you're seeing well of course of course security now is top of mine for everyone board level conversations executive level conversations all the time I think what ends up happening is in the past we would think about it as Network performance cost etc security as a tangent kind of side conversation now of course it's built into everything that we do [Music]

so at the starting at the Google level we have data centers in four continents so we're in North America South America Asia and Europe of course we have a probably one of the world's largest global private networks with you know 13 undersea cables that are our own and hundreds of thousands of miles of dark fiber and and lit fiber that we you know we operate like I said probably one of the world's largest networks we have in in Europe were in five countries in Europe we're in two countries in Asia were in one country in South America and that's at the Google and in North America of course we have many many many sites across all of North America that's at the Google level now cloud has 19 regions that they operate in and 58 zones so each region of course has multiple zones in it you know we cover Google has presence in over 200 countries worldwide so really it is truly global operations so AccuWeather has been running an API service for the past ten years and we have lots of enterprise clients but we started to realize we are missing a whole business opportunity so we partnered with a eg and we created a new self-serve API developer portal that allows developers to go in there sign up on their own and get started and it's been great for us as far as like basically unlocking new revenue opportunities with api's because as you said everything is api's we also say everything is impacted by the weather so why not have everyone use a cue other api's to fulfill their weather needs I think if you look at what's going on and I talk to a lot of customers and developers and IT teams and clearly I think they are overwhelmed with the different things which are going on in this space so how do you make it simple how do you make it open how do you make it hybrid so you have flexibility of choices becoming top of the mind for many of the users now the lock in which many vendors currently provide it becomes very difficult for many of this users people moving around and meet the business requirements so I think having a solution and technology stack which is really understanding that complexity around that and making it simple in after dock I think is important so the focus well there's a theme in a couple different levels the broad theme is a cloud like no other because we've introduced a lot of new different features and products and programs we introduced anthos this morning which was really revolutionary way of using containers broadly Multi cloud hybrid cloud so it's from a product standpoint but it's also a cloud like no other because it's about the community that's here and it's truly a partnership with our customers and our partners about building this cloud together and we see the community as a really key part of that it's really core to Google's values around openness open-source technology and really embracing the broader community to build the cloud together well you know I think it continues to be continues to cooperate in the technical community very well and a couple of data points right one is around kubernetes that started what four or five years ago and that's going really strong but more importantly you know as the industry matures there are what I would call special interest groups that are starting to emerge in the kubernetes community one thing that we are playing very close attention to is the storage sake which is the ability to federated storage across multiple clouds and how do you do it seamlessly within the framework of googan IDs as opposed to trying to create a hack or a one-off that some vendors attempted to do so we try to take a very holistic view of it and make sure I mean the industry we are in it's time to drive volumes and volumes drive standards so I think we play very very close I think one of the biggest things that I'm seeing in this entire conference to date has been almost a mind shift change I mean this is conferences called Google Next and for a long time that's been one of their biggest problems they're focusing on what's next rather than what is today and they're inventing the future - almost at the expense of the present I think the big messaging today was both about reassuring enterprises that they're serious about this and also building a narrative where they're now talking about coming at this from a position of being able to embrace customers where they are and speak their language I think that that's transformative for Google and it's something I don't think that we've seen them do seriously at least not for very long I think that there's no question that this is a data game and we said early on John and the cube that big data war was going to be one in the cloud the data was going to reside in the cloud and having now machine intelligence applied to that data is what's giving companies competitive advantage and scale and economics I was struck by the stats that Google gave at the beginning of the keynote today Google in the last three years has spent 47 billion dollars on capital expenditures this year to date alone they've spent 13 billion dollars in capex and data centers 13 billion it would take IBM three and a half years to spend that much in capex it would take Oracle six years so from an economic standpoint in a scale standpoint Google Microsoft and Amazon are gonna win that game there's no question in my mind I am a student of AI I did my masters and PhD in that and I went through that change in my career because we had to collect the data match it and now analyze it and actually make a decision about it and we had a lot of false positives in some cases know something of which you don't want that either and what happened is our modeling capabilities became much better and we with this rich data and you actually tap into that data like you can go in there the data is there and disparate data we can pull in data from different sources and actually remove the outliers and make our decision real time right there we didn't have the processing capability we didn't have a place like pops up where global can scan and bring in data at hundreds of gigabytes of data that's messaging that you want to deal with at scale no matter where it is and process that that wasn't available for us now it's a real it's like a candy shop for technologists all the technologies in our hands and we want all these things so if you look at that category of that repetitive work AI can play a really amazing role in helping alleviate that mundane repetitive work and so you know great example of that as smart composed which hopefully you've used yep and so what we look at is things like say a salutation in an email where you have to think about who are you addressing how do you want to address them how do you spell their name we can alleviate that and make your composition much faster so the exciting announcement that we had today was that we are leveraging the Google assistant so the assistant that you're used to using at home via your home devices or on your phone and we're connecting that to your Google Calendar and so you'll be able to ask your assistant what you have on your schedule you know know what's ahead of you during your day and be able to do that on the go so you know I think in general one of the unique opportunities that we have with G suite is not only AI for taking these products that consumers know in love and bringing them into the enterprise and so we see that that helps people adopt and understand the products if it also just brings that like consumer grade simplicity and elegance in the design into the enterprise which brings joy to the workplace yeah so we've been working we've been hard at work over the last eight months since our last next can you believe that it's only been eight months and we last last year we were here announcing gk on prem this year we've rebranded CSP to anthos and enlarged it and we've moved it to GA so that's the big announcements in our spotlight we actually walk through all the pieces and gave three live demos as well as had two customers on stage and really the big difference in the eight months is while we're moving to GA now we've been working throughout this time with a set of customers we saw unprecedented demand for what we announced last year and we've had that privilege of working with customers to build a product which is what's unique really yeah and so we had two of those folks up on stage talking about the transformation that anthos is creating in their companies yeah absolutely I think particularly most of the larger enterprise accounts tend to have a multi vendor strategy for almost every category right including cloud which typically is one of the largest pens and you know it's it's typically what we see is people looking at certain classes or workloads running on particular clouds so it may be transactional systems running on AWS you know a lot of their more traditional enterprise workloads that were running on Windows servers potentially running on this year we see a lot of interest in data intensive sorts of analytics workloads potentially running on GCP and so I think larger companies tend to kind of look at it in terms of what's the best platform for the use case that they have in mind but in general you know I they are looking at multiple cloud vendors [Music] you

it's gonna come from the expansion potential right none of our customers are more than one percent automated from an RPA perspective so that shows you the massive opportunity but back to the market site data size I Craig and I in the other annals we talk often about because I think the Tam views are very low you look at our markets here let's just get some real data out there right our market share in 2017 was 5% let's use Craig's linear data for now you know our market share this year's over 20% our market share applying and I don't get the exact numbers you don't provide guidance anymore it's substantially we're substantially gaining share now I believe that's the reality of the market I think because we know blue president's numbers we'd go four times faster than them every quarter Automation anywhere won't share their numbers but you know I can make some guesses but either way you know I think we're gaining share on them significantly I think you know Craig's not gonna want us to be 50% of the market two years he's just not and so he's gonna have to figure out how do we didn't have it brought more broadly about about that market trend he talked about it on stage today about how does he calculate the AI impact and the other piece is now the process mining now that we are integrating process mining into RP a right it strategic component of that how does that also involve the market so I think you have both the expansion in the product portfolio which tries and then you have the fact that customers are gonna add more automation at faster pace and more robots and that's where the expansion really kicks in them we often say you know look is up there's a company that you know one day will be public company our a our our number is very important we do openly transparently share that but you know the other big metric will be you know dollar base net expansion rate the shows really how customers are expanding I think that I know what our number is we haven't shared it yet I know all the SAS companies the top 10 I can tell you you know we're higher than all of them the market projections are low and I think he knows in what you were just saying - is that that the company's pitch is that we are freeing people we are liberating them from the mundane from the drudgery from the data entry and and as you as you pointed out rightfully a lot of the customers are saying oh no it's giving our time it's giving our employees time back to focus on the higher level tasks the more creative aspects of their job butBut I wonder if it is in fact what what it really is doing two jobs I mean I think that there's a really telling line in that Forex profile of Daniel Dinah's who is the CEO of this company's founder of this company the newly minted billionaire the first ever bot billionaire exactly where it was an MIT professor quoted saying you know we always say to the companies that we say give us your data and we'll tell you if it is in fact having this job-killing effect and he said the companies don't want to give that up so accelerate that accelerate we're one of the largest nice providers is the only thing that we do where process automation and AI company and our sole focus has been process automation since our inception in our past lives were generalists we did well and wanted to do it again so when we started accelerating we wanted to make sure that we focus on a very specific vertical niche and process automation was just starting up the optic about mid-2016 ish I think one of the big trends that's out there I mean our PA has come onto the scene I like how you phrase it Dave because you refer to it as rightly so automation is not new and so we sort of say the big question out there is is our pages flavor of the month art being is definitely not and I come from a firm we put out a blog earlier this year called our PA is dead long live automation and that's because when we look at our PA and when we think about when we think about what its impact is in the marketplace to us the whole point of automation in any form regardless of whether it's our PA whether it be a good old old-school BPM whatever it may be its mission is to drive transformation and so the HFS perspective and what all of our research shows and sort of justifies that the goal is what everyone is striving towards is to get to that transformation and so the reason we put out that piece the RP is dead long live integrated automation platforms is to make the point that if you're not because what is our PA allow it affords an opportunity for change to drive transformation so if you are not actually looking at your processes within your company and taking this opportunity to say what can I change what processes are just bad and we've been doing them I'm not even sure why for so long what can we transform what can we optimize what can we invent if you're not taking that opportunity as an enterprise to truly embrace the change and move towards transformation that's a missed opportunity so I always say our PA you can kind of couch it as one of many technologies but what RP has really done for the marketplace today it's given business users the leaders the realization that they can have a role in their own transformation and that's one of the reasons why it's actually become very important but a single tool in its own right will never be the holistic answer that's a very good question I think it's a question that has been very common throughout this entire conference I would say you know when I think about scaling what I've noticed over the past few years is that you know the actual bot development is about 25 percent of the work that you need to do right when it comes to scale there is everything outside of the actual development is the important part so how are you funneling opportunities into a pipeline how are you streamlining the entire process reengineering of you know fitting an RPA into an existing process you know what is what are the governance that what's the governance you have in place to make sure that the code of that development is clean and can be maintained long term and then more importantly I think that people overlook you know the people think of scale is being able to develop a lot of bots I think more importantly what scale is is being able to efficiently maintain a large portfolio bots and that's what I've realized this year we've got now about 300 automations in production and you know your reputation as an organization is really on how well you maintain those box because if your bots are consistently failing and you're not fixing them quick enough for your functional users to leverage them then you lose a lot of credibility so I think that's been a big learning for us as we reach how are you guys thinking about the way in which a user worker interacts with that that fog I think it's it's more like a dance and and less like a task manager right so you might think in classic automation you know click a button go do this thing click about and go do that thing that the automation is happening when you want it to the way that our platform is written the robot can listen to what you're doing it can monitor for when you click on a specific button or for when you move files to a folder so think about it less like a conscious effort to guide the robot and more as a a collaborative you know effort where where the robot is seeing what you're doing and taking action to help you and do things on your behalf and then letting you know when they're done so it's the paradigm is changing for work and when you have a robot on your computer it's gonna open up a new way of doing your daily act and and the enabler there is what machine learning machine intelligence it's a combination of things so think about machine learning and AI as just one tool that that robot has to use both CR as well you know we did a demo earlier this week where we took receipts moved him to a folder the robot sees that you've moved receipts into a folder can bounce it off an end point that and break apart those receipts using OCR load that all into excel and help you with your expense report so think about things like this you things you need to do you do what you would normally do put receipts in a folder and the robot takes care of the rest the most fascinating thing about RPA right now is that it's really highlighting the problems that organizations have all their accidents of history are really being brought up by RBA and then you've got these digital darlings that they're trying to compete with the greenfield site kind of people and some of those don't have beautiful back offices but let's not go there for a minute so it our PA is an opportunity for companies to link their digital dreams with their existing legacy nightmares I definitely think we're seeing less tech spending expected for q4 and I think that will spill into 2020 based on the ETR and enterprise technology research data that we see but I think it's actually a healthy pullback I kind of agree with guy on that front and I actually think it is good for our PA I think our PA is one of those sectors that you see in the EGR surveys that is gaining share relative to other tech spending and I think that will continue in any downturn so I expect softness you know however you define downturn I don't think it's going to be falling off the cliff or a disaster but I definitely think spending will be more tepid one of the nice things about our PA is you can take your software robots and apply them to an existing process and a lot of times changing processes not a lot sighs almost always changing processes is painful however we've talked to some customers that have said by applying our PA to our business it's exposed some really bad processes have you experienced that and can you maybe share that experience with us absolutely so for us one of the initial robots may apply to a customer facing process it was our field team trying to get back to our customer with with some information and we realized that the the cycle time was very long and the reason is there are four functions involved in answering the question and seven different applications are being touched all the way from Excel to ERP CRM so with it obviously bringing a strategic solution to fix the cycle time and reduce that to streamline the process was going to take us long so our PA was great help we'd reduce the cycle time by putting a robot and we were able to get back to ours please sales team in the field in matter of minutes what used to take hours was now being responded in minutes now that doesn't mean that process is perfect but that's unacceptable steam was in the field before you know streamlining and going into a bigger initiative anything you could share Christine coming from a software engineer background I at least I had the tendency to don't give enough credit to sales to marketing and not even to the customers we understand the customers in the so we build technology for the sake of technology so we were really fortunate to have some multi customers what we didn't understand how because I thought that customers should go to themselves to test and find the best technology out there and just go with it I I was really kind of I had a lot of blind spots on how this world operates but after I've started to visit customers and understand their pain points and their requests actually machine using our own technology because they use it in the real world so that message that that completely transform my thinking so I went back to my engineering teams tonight and I tell the guys from this day I don't wanna ever here we don't fix bugs and we do features and we do this when the customers say you do this you say thank you thank you for showing me the light I will do this that's that makes we create the better draw [Music]

I'd say for me it's called it's really the power of the of the better together you know to me it's nobody's great apart it takes really an ecosystem of players to kind of work together for the customer benefit and the one that we've demonstrated the VMware with NetApp plus VMware has been a powerful one for well well over 17 years and the person they're putting in terms of the joint customers that have a ton of loyalty to both of us and they want us just to work it out so you know whether you're whether your allegiance on one side of the kubernetes community's battle or another or you're on one side of anyone's you know storage choice or another and I think customers want NetApp and VMware to work this out and in como solutions and we've done that and now what we for the second activist to come out will start that tomorrow I mean to me it starts from what the customer would like to do right and what what we're seeing from customers is it's increasingly a multi cloud world right that expands spans private cloud public cloud and Ed you're smiling when I yeah now there's an opportunity yeah but it's a chance for customers right and so if you look at how VMware is trying to help their meso sort of square the circle I think the first piece is this idea of consistent operations right then we have these management tools that you can use to consistently operate those environments whether they're based on a VMware based infrastructure or whether they're based on a native cloud infrastructure right so if you look at our cloud health platform for example it's a great example where that service can help you under get visibility to your cloud spend across different cloud platforms also be store based platforms and can help you reduce that spend over time so that's sort of what we refer to as consistent operations right which can span any any cloud you know my team is responsible for is more in that consistent infrastructure space and that's really all about how do we deliver consistent compute network and storage service that spans on from multiple public clouds an edge so that's really where we're bringing that same VMware cloud foundation stacked all those different environments you know the networking folks and networking was always relegated to being the underlay or the plumbing now what's becoming important is that the application are making their intent aware to the network and the intent is becoming aware as the intern becomes aware we networking people know what to do in the Estevan layer which then shields all the intricacies of what needs to get done in the underlay so to put it in very simple terms the container is what really drives the need and what we're doing is we're building the outcome to satisfy that need now containers are critical because as Pat was saying you know all of the new digital applications are going to be built with containers in mind so the reason we call it client to cloud to containers because the containers can literally be anywhere you know we're talking about them in the private cloud and in the public cloud they could be right next to where the client is because of the edge cloud they could be in the telco network which is the telco cloud so between these four clouds you literally have a network of these containers and the underlying infrastructure that we are doing is to provide that Estevan layer that will get the containers to talk to one another as well as to talk to the clients that are getting access to those application yeah I mean more than McAfee I think you know you you it's sort of you think of the and the the analog analog to cloud Security's data center security where you think of this sort of Amazon Cloud living in an Amazon datacenter and you know how can we protect that you know the data and the egress access into those cloud and you know same technology sort of apply but to your point that you sort of just touched upon its that cloud is not living in isolation right first of all that Amazon Cloud is connected to a whole bunch of you know applications that are still sitting in a data center right so they may not they're potentially not moving the Oracle database today since they're moving some workloads to the cloud right that's what most most companies are hey guess what there's all these endpoints that are connecting they're connecting both the data center and the cloud you're not gonna proxy to the cloud to get to the data center so there is a gateways so to me cloud security can't be an isolated you know sort of technology that companies have to sort of think about now is there is there opportunity to leverage the cloud to manage security better and get visibility in their security environments to do security analytics absolutely so I think to me that's where it's going because security I think has been proven is no longer you know sort of one thing single thing it's just you have to do multiple things every time I go talk to CIA source they tell me they got this technology that I said he made a minute you you have 20 did you cut down any yeah we've cut down a few but you know they just nervous about cutting down too much because if that one piece of software gets Paul so look I mean I think we again we're kind of really evolving our strategic aims you know historically we've looked at how do we really virtual eyes an entire data center right this concept of the software-defined data center really automating all that and driving great speed efficiency increases and now as we've been talking about we're in this world where you kind of STD sees everywhere right on pram and the cloud different public clouds and so how do you really manage across all those and these are the things we've been talking about so the cloud marketplace fits into that whole concept in the sense that now we can get people one place to go to get easy access to both software and solutions from our partners as well as open source solutions and these are things that come from the bitNami acquisition that we recently did so the idea here is that we cannot make it super simple for customers to become aware of the different solutions to draw those consistent operations that exists on top of our platform with our partners and then make it really easy for them to consume those as well I think we've really broaden and expanded our reach over the last ten years it used to be we're known primarily for our sports programming so now we have inclusive education and health programs we're being able to bring together people with and without intellectual disabilities through those mediums so we've divided resources to schools and education and they run Special Olympics programming during the school day so educators wanna have us because we're improving school clamp campuses reducing bullying enhancing social-emotional learning and so the work that we're doing is so so critical with that community then the air if health we have inclusive health so now we've got health and medical professionals that are now providing health screenings for our athletes so some of the the younger volunteers that we get that are there wanting to make a career in in the medical field they're exposed to our population right and so they learn more about their specific health needs so it's really about changing people's attitudes and so this community of supporters volunteers health Vettel's education were really our goal is to change people's attitudes fundamentally worldwide about people with intellectual disabilities and really kind of produce inclusive mindsets we call it really promote understanding and so now that the the road map that was shared in terms of what VMware looks to do to integrate containers into the ESXi platform itself right it's you know managing VMs and containers Nextiva that's perfect in terms of not having customers have to pick or choose between which platform and where you're gonna deploy something allow them to say you can deploy on whichever format you want it runs in the same ecosystem and management and then that trickles down to the again your storage layer so we do a lot of object storage within the container ecosystems today a lot of high-performance objects because you know the the the file sizes of instances or applications is much larger than you know a document file that URI might create online so there's a big need around performance in that space along with again management at scale the whole multi cloud hybrid cloud movement what's going on out at the enterprise your perspective on kind of where we are in that shift if you will or that transformation and and what's what's driving it you know what's what's creating all the bang you get that question a lot right people ask me what inning are we in question you know it's a regular you know I would say a couple years ago you know as people said I don't think that I think the national anthem is still being played kind of thing you know and I think the game has probably started you know but but I still were think for very early innings and you know I think I'd actually bring it up to even a higher level and talk about what's happening in terms of how companies are thinking about digital transformation and it would I what I think is happening is it's becoming a board level priority for companies they can't afford to ignore it you know digital is changing the Commun obey suspended of advantage in most industries around the globe and so they're investing in digital transformation and I think they're going to do that frankly independent of whatever macroeconomic climate we operate in and so and I think you know the big driving force probably you know in digital transformation today the cloud and so and what we're seeing is there's a you know it's a particular architecture of choice that's emerging for customers yep and I think you know you hit the nail on the head networking has changed it's no longer about speeds and feeds it's about availability and simplicity and so you know Dell and VMware I think are uniquely positioned to deliver a level of automation where this stuff just works right I don't need to go and configure these magic boxes individually I want to just write you know a line of code where my infrastructure is built into the CI CD pipeline and then when I deploy a workload it just works I don't need an army of people to go figure that out right and and I think that's the power of what we're working together to unleash so that was pretty dramatic moment of truth when we deployed atrium and we started the imaging process and it was finished and to be honest I thought that is broken but it actually was that fast so gave us a tremendous amount of I mean ability to deploy and manage and do the work during the workday instead of working after hours and what we doing for data protection before date really we use variety of different solutions backups just to tape and variety of services that actually backed up are they still do or know we've given that a lot up the floor of all the legacy stuff it got rid of that did you have to change your processes or what was that like Wow info we have to we have to get rid of a lot of process they were focused on backup focus on a time that it took to manage backup with atrium date reom didn't have the backup from the day one this is something that they designed I think a second year and that was very different to see the company that deals with storage creating such an innovative vision for developing old I mean developing a roadmap that was actually coming true with every iteration of the software deployment so the second tier that we provisioned was the snapshot and the snapshots that were incredibly fast that didn't take a lot of space that was you know give us ability to restore almost instantly gave us a huge amount of you know focus on not focusing and on storage anymore well since we're here at vmworld right you know be immoral has about 70 million work I think it's actually bigger than the public cloud I you correct me if I'm wrong right uh yeah I mean the I look I'm premise way bigger than the public cloud I have no question exactly and and and what's happening of course is faster sorry but the line is blurring between you know what's a public cloud what's a you know hybrid cloud multi-cloud edge and so look our opportunity is to really make all that go away for customers and allow them to choose and express our unique value add in whatever form the customer wants to use it so you've seen us align with all the public clouds you know you're seeing us take steps in the edge we're continuing to improve the on-premise systems you know with project dimension now it's the VMware cloud on Dell EMC that we're managing for you and it's on demand its consumption and it's consumed just like a public cloud I spend about 50 percent of my time talking to these customers so we learn a lot and here are the four big challenges they're facing first is the explosion of data data is just growing so fast Gartner estimates they'll be a hundred and seventy-five zettabytes of data in 2025 if you cram that into iphone so you take two point six trillion iPhones and go to the Sun and back right it's an enormous amount of data second they're worried about ransomware it's not a question of if you'll be attacked it's when you'll be attacked look at what's happening in Texas right now with the 22 municipalities dealing with that what you want in that case is a resilient infrastructure you want to be the ripples to restore from a really good backup copy of data third they want the hybrid multi cloud world just like Pat Gelson juror has been talking about that's what customers want but they want to be able to protect their data wherever it is make it highly available and get insights in their data wherever it's located and then finally they're dealing with this massive growth in government regulations around the world because of this concern about privacy I was in Australia a few weeks ago and one of our customers she was telling me that she deals with 27 different regulatory environments another customer was saying that California Privacy Act will be the death of him and he's based in st. Louis right so our strategy is focused on taking away the complexity and helping the largest companies in the world deal with these challenges and that's why we introduced the enterprise data services platform and that's why we're here at VMworld talking kubernetes the technology enabler I mean tcp/ip was that in the old networking days it enabled a lot of shifts in the industry you were far that way yeah kubernetes that disruptive enabler yeah I really see it as one of those key transition points in the industry and as I sort of joked if my name was Scott and we were 20 years ago I'd be banging the table calling it Java and Java defined enterprise software development for two decades by the way Scott's my neighbor he's down the hill so I looked down on mr. McNeely I always liked but you know the you know it changed how people did enterprise software development for the last two decades and kubernetes has that same kind of transformative effect but maybe even more important it's not just development but also operations and I think that's what we're uniquely bring together with project Pacific really being able to bridge those two worlds together so you know and if we deliver on this you know I think it is you know that X decade or two will be the center of innovation for us how we bridge those two roles together and really give developers what they need and make it operator friendly out-of-the-box across the history to the future this is pretty powerful yes so this conference is is I think a refreshing return to form so VMware is as you say this is an operators conference and VMware is for operators it's not for devs there was a period there where cloud was scary and and it was all this cloud native stuff and VMware tried to appeal to this new market and I guess tried to dress up and as something that it really wasn't and it didn't pull it off and we didn't it didn't feel right and now VMware has decided that well no actually this is what VMware is about and no one can be more VMware than VMware so it's returning to being its best self and I think against software they know software they know software so the the addition of putting project hands are in and having kubernetes in there and and it's it's to operate the software so it's it's going to be in there and apps will run on it and they want to have kubernetes baked into vSphere so that now yeah we'll have new app new apps and yeah there might be sass ups for the people who are consuming them but they've got to run somewhere and now we could run them on vmware whether it's on site at the edge could be in the cloud your vmware on AWS steve emotions [Music] you

right so with kubernetes the history is we started off with only file systems block is something very new within the past couple releases that actually personally worked on the next piece that we're doing at Red Hat is leading the charge to create CRTs for object storage so it's defining those api's so customers can dynamically provision and manage their object storage with that in addition we recently acquired a company called nuba that does exactly that they're able to have that data mobility through object buckets across many clouds doing the sharding and replication with the ability to do and that's super important because it opens up for our customers to have image streams photos things like that that they typically use within an enterprise and quickly move the data and copy it as they as they need to so we notice that that more and more people want to try their workloads outside of the centralized one centralized data cluster so the big you know term for the last year was the hybrid cloud but it's not just hybrid cloud people coming from also from the iot user space wants to you know containerize their work clothes what wants to put the processing closer and closer to the devices that are actually producing and consuming those data in the users and there is a lot of use cases which should be tackled in in that way and as you all said previously like you Burnett is want developers hearts and minds so api's are stable everybody is using them it will be supported for decades so it's it's natural to try to bring all these tools and and all these platforms that are already you know available to developers try to tackle these new new challenges so that's why last year we reformed the kubernetes at the edge working group trying to you know start with the simple questions because when people come to you and say edge everybody thinks something different from somebody it's in IOT gateway for somebody it's a it's a full-blown you know kubernetes faster it's some telco providers so that's what we're trying to figure out all these and try to form a community because as we saw in the previous cell so for the IOT user space is that complex problems like these are never basically solved by single single company you need open source you need open standards you need the community around it so that people can pick and choose and build a solution to fit their needs yeah yeah so I care a lot about diversity in tech and women in tech more specifically one of the things that I I feel like this community has a lot of very visible women so when I actually looked at the number of contributors by by men and women I was really shocked to find out it was 3 percents it's kind of disappointing it's 3 percent of all the contributors to the all the projects in the CNCs it's only if you look at the 36 projects you look at the number of the people who've made issues commits comments pull requests it's 3 percent women and I think the CSUF has put a lot of effort into the for example of the diversity scholarships so bringing more than 300 people from underrepresented groups to cube corn including 56 here in Barcelona and it has a personal meaning to me because I really got my start through that diversity scholarship to keep calm Berlin two years ago and when I first came to keep on Berlin I knew nobody but just that little first step can go a long way into getting people into feeling like they're part of the community and they have something valuable to give back and then once you're in you're hooked on it and yeah then there's a lot of fun I think the ecosystem may finally be ready for it and this is I feel like it's easy for us to look at examples of the past you know people kind of shake their heads and OpenStack as a cautionary tale or sprawl and you know whatnot but this is a thriving which means growing which means changing which means a very busy ecosystem but like you're pointing out if your enterprises are gonna adopt some of this technology gee they look at it and everyone here was you know eating cupcakes or whatever for the kubernetes 5th birthday to an enterprise just because this got launched in 2014 you know ok June 2014 that sounds kind of new we're still running that mainframe that is still producing business value and actually that's fine I mean I think this maybe is one of the great things about a company like Microsoft is we are our customers like we also respect the fact that if something works you don't just Yolo a new thing out into production to replace it for what reason what is the business value of replacing it and I think for this that's why this kind of UNIX philosophy of the very modular pieces of this ecosystem and we were talking about how them a little earlier but there's also you know draft brigade you know etc like the porter the C NAB spec implementation stuff and this cloud native application bundles which that's a whole mouthful one of the things I like I've been a long history and open source too is if there are things that aren't perfect or things that are maturing a lot of times we're talking about them in public because there is a roadmap and you know people are working on it and we can all go to the repositories and you know see where people are complaining so at a show like this I feel like we do have some level of transparency and we can actually have realism here we I don't think we hear that as much anymore because there is no more barrier to getting the technology it's no longer I get this technology from vendor a and I wish somebody else would support the standard it's like I can get it if I want it I think the competition we typically have aren't about features anymore they're simply my business is driven by software let that's the way I interact with my customer that's the way I collect data for my customers whatever that is I need to do that faster and I need to teach my people to do that stuff so the technology becomes secondary like I have this saying it frustrates people so nice but I'm like there is not a CEO a CIO a CTO that you would talk to that wakes up and says I have a kubernetes problem they all go I have a I have this business problem I have that problem it happens to be software kubernetes is a detail sure I think the NSM is just a first step so the natural service is basically doing a couple of things one is it is simplifying networking so that the consumption paradigm is similar to what you see on the developer l7 layer so if you think SEO and how SEO is changing the game in terms of how you consume layer seven services think of bringing that down to the layer two layer three layer as well so the way a developer would discover services at the l7 layer is the same way we would want developers to discover networking endpoints or networking services or security capabilities that's number one so the language in which you consume needs to be simplified whereas it's whereby it becomes simple for developer to consume the second thing that I touched upon is we don't want developers to think about switches routers subnets BGP reacts van VLAN for me I want to take a little bit more into the idea of multi cloud I've been making a bit of a stink for the past year with a talk called the myths of multi cloud where it's not something I generally advise as a best practice and I'm holding to that fairly well but what I want to do is I won't have conversations with people who are pursuing multi-cloud strategies and figure out first are they in fact pursuing that the same thing that we're defining our terms and talking on the same page and secondly I want to get a little more context and insight into why they're doing that and what that looks like for them is it they want to be able to run different workloads in different places great that's fair the same workload run everywhere the lowest common denominator well let's scratch build a surface a bit and find out why that is bob wise and his team spent a ton of time working on the community and the whole the whole team does right for one of the the biggest contributors to @cd we're hosting birds of a feather we've committed we've contributed back to a fair amount of community projects and I think a lot of them are in fact around how to just make kubernetes work better on AWS and that might be something that we built because uks or it might be something like the like cluster autoscaler right which ultimately people would like to work better with with auto-scaling groups I think we we had the community involvement but I think it's about having a quiet community involvement right that it's it's about chopping wood and carrying water and being present and committing and showing up and having experts and answering questions and being present and things like say groups than it is necessarily having the biggest booth so Joe tremendous progress in five years look look forward for us a little bit you know what what what does you know kubernetes you know 2024 look like for us well you know a lot of folks like to say that you know in five years kubernetes is going to disappear and sometimes they come at this from the sort of snarky angle but other times I think you know it's gonna disappear in terms of like it's gonna be so boring so solid so assumed that people don't talk about it anymore I mean we're here at you know something that you know the the CNC F is part of the Linux Foundation which is great but you know how often do people really focus on the Linux kernel these days it is so boring so solid there's new stuff going on but like clearly all the exciting stuff all the action all the innovation is happening at higher layers and I think we're gonna see something similar happen with kubernetes over time exciting is being here if you rewind five years and tell me I'm ready in Barcelona with with 7,500 of my best friends I would think you were crazy or from Mars this is amazing and I thank everybody who's here who's made this thing possible we have a ton of work to do you know if you feel like you can't figure out what you need to work on come talk to me and we'll figure it out yet for me I just want to give a big thank you to all the maintain a nurse folks like Tim but also you know some other folks who you may not know their name but they're the ones slogging it out and to get up PRQ you know trying to just you know make the project's work in function day today and we're it not for their ongoing efforts we wouldn't have any of this you [Music]

I would say find a problem that you care about and find a mentor I would say sign up for Technovation because that really has all the elements and the support systems that you need focus is on kids with autism and we got to meet these meet individuals as part of our special education community and that's kind of when we saw our impact and it kind of clicked for us that this is actually making a difference and that's that's Anna it was an unbelievable experience [Music] in the future we want to make it available in many devices and you want to spread it to all be able to help them I want to say that Technovation gave us wings as I mentioned one year to fly in a world of endless opportunities and I would say that if you have that will do something good for the society technology look our best option you can go for an you can implement inspired me by showing me how it's very possible to make your own business and create your own and fight for what you want for what you believe in [Music]

like railroads and shipping in the 1800s and oil in the 1900s data really is the wealth creator of this century and so that creates a very nerve-wracking environment it also creates an environment a very agile and very important technological breakthroughs that enable those things to be turned into we believe everything is data-driven and in fact we would argue that data is more valuable than oil or diamonds or plutonium or platinum or silver or anything else it is the most valuable asset whether it be a global fortune 500 whether you be a midsize come here whether it be her songs firing drill we're in the business of doing helping customers do better with the data they have without I'm do not spend more whether it's on frame or on the cloud that sort of we want to help customers be comfortable getting more data under management now along with security and governance and the lower third TCO is flying it from Atlanta Georgia to London and you want to be able to make sure you really understand how well is that each component performing so that that point is going to need service when it gets there it doesn't miss the turn around and leave 300 passengers stranded or delayed right now with with our with our connect levers we have the ability to take every piece of data from every component that's generated and see that in real time and left with the airline's make [Music]

by moving the healthcare system to the cloud and leveraging artificial intelligence and helping things like oncology departments identify cancer that treat cancer better using technology I think is the next frontier for us I love your description of this as a celebration because really that's one of the things that we do is we celebrate customer success and so when you look at AWS around the world we've got customers that are delivering solutions for citizens to new solutions for healthcare great solutions to education all around the world there's a lot of requests for machine learning out of the tactical edge so we have our you know soldiers forward deployed how they take their imagery and analyze that and not have to wait 24 hours for someone to come back from the main data center and that's I mean that's real life saving game

want people to find their passion and purpose in life and achieve that because if you do what you love you know a lot of us do what we love some of us don't but if you do what you love you can be way more productive and happier right and then the end of day isn't that our goal okay bitchy it's okay to be cranky it's okay for anchor anger to fuel you it's okay to be aggressive and even if your male counterparts tell you otherwise or say wow that's unseemly I think it's just okay we don't have to be pure and perfect in order to be successful a plenty of mine she's the founder of Austen women magazine and she has this catchphrase that's fabulous because the female role models if you can't see it you can't be right so if I'm a 24 year old young lady just graduating I don't see anyone else who looks like I think it is really important that you know there's all those cliches around the fact that you know you've got to go through the windows sometimes or you know opportunities are masked and they really are and so just saying yes to everything and really being open to trying new things and learning new experiences will give you opportunity didn't even realize and now I've been in it long enough where someone I met a couple years ago who was just at a conference kind of dabbling took a course from girls in tech and is now in the career field and they're kind of introducing girls detecting other so it's amazing is what it it's no longer grassroots this is actually making

I literally retitled my PowerPoint presentation which was previously called smart packaging to find a way to get the word internet in and the way I do that was I wrote Internet of Things and I got my money and I founded a research center with Procter & Gamble's money and MIT just up the road here and basically took the PowerPoint presentation with me all over the world commits other people to get on board big people buying a lot of media and there's a lot of discussion in politics about whether or not you know billionaires buying media are problems and what that's gonna mean in terms of the message that's gonna be reported to people that's gonna always be an issue but I think even with that that's why it's even more empowering that the individuals are taking more control over their own narratives biggest sort of takeaway is to see and actually joy is to see companies from different walks of life working together you have robotics companies you have AI companies you have industrial companies all of them are coming up with solutions together and that's basically what we want to see is breaking the barriers and multiple companies working together to moving you [Music]

our mission is to help every company in the world find its relevance and really every person in the world certainly every person in our industry find their relevance people are searching for how to become relevant in this very hyper connected changing time first today one at all right they need to maintain investments extend investments that they have in traditional systems but they want to take advantage of these new really cool technologies like micro services like sort of data hub you know data aggregation and they don't want somebody knocking on their door and saying hey I'll sell you anything as long as you want to buy this I think the key thing is everyone's got to realize that whether you're in a private cloud hybrid cloud or public cloud configuration storage is that rock solid foundation you don't have a good foundation the building will fall right over and it's great you've got cloud with its flexibility its ability to transform the ability to modernize move data around but if what's underneath doesn't work the whole thing topples over and storage is equivalent you [Music]

my leg issues a plane through so many games in our media because we are a very defeatist mentality if you think about it we started as an industry as this coin off industry where we had to kill you off because we needed you to put another motor in the machine and but now we carry that trope with us even though we have people put 60 quarter $60 worth of quarters in the machine in advance right right we're still killing you off in the same way and so it's kind of crazy to me and so we really as an industry I do think need to think about that more face because you know when you consume content it's usually through news feed right worth one of your friends shares that content so we've seen a lot of creators come on board and have really heard our early 66 success with that in terms of like sharing content we're asking they're you know they're fans when they're on the stream like hey you know I'm live right now share this content with your friends right then they get instant exposure right which helps them grow what extensions are its developers they're created by outside developers and what they are is they add interactive functionality to broadcasters channel pages whether it's a widget underneath the screen or it's an overlay that goes on top of it and with these overlays you can just creating a more interactive experience for the viewers and that's where we see the future of gaming going which is that it's not a it's not a sit back experience it's the lean forward [Music]

first thing Trust is very human right you've gotta know they're walking into the situation as as a vendor and its customer but really as partners are you trying to solve a problem together because the reality is this transformation that companies are going through is first time in 40 years that this kind of transformations happen technology they start maybe in a small project or a small team but very quickly they see the potential impact of the solution and very quickly it's almost infectious inside the organization more and more teams want to jump on understand how they can use it to help with their applications their business to get impact in their operations and it just spreads spreads like wildfire you can never really call yourself a role model right it's that people I wanna I love showing people that there's a there's there's paths and detect that didn't start off with a computer science degree but there's tons of ways to participate and be part of the tech community because it's a great it's a great you

Phil McDermott always say data's now the currency well today he was saying now Trust is the currency which is completely truth - but from the data being the country currency perspective it's now the endgame for both of us we've kind of pulled in all companies have gone into the middle that that's kind of not only the Mint messaging but kind of central thing we're trying to develop to deliver a value on speaking with a customer early it's like you have an accountability to help me be innovative right and that's a very important responsibility a lot of that revolves around enterprise class security right a lot of that revolves around uptime right with Layton sees between those environments cuts my performance attribute and are you gonna be there with me forever right amazing thing that's going on it thinking about using drones for first responders they actually can know what's going on in the scene and when the other people are showing up they know what kind of area they're going into or for search and rescue drones can cover a lot of territory and detect a human faster than a human can right and if you can actually find someone within the first 24 hours chance of survival so much higher invest more heavily in the cloud in the second thing they want to do is enable digital transformation real digital transformation how did they monetize the wealth of the data that they've acquired through their relationships with their customers and then how do they leverage that for their customer benefit [Music]

kind of amazing inspire when I step back and look at what our customers are doing with our technology and you know we have hundreds of technical sessions here where we get in-depth you know as we've always done that historically you know he MC worlds but we're also taking a broader view and saying hey you know what's what's this really all about what's the impact on the world that the most creative of people from Leonardo da Vinci to Einstein Ben Franklin but Steve Jobs and Ada Lovelace whoever they may be all love of the humanities and the science they stand at that intersection of sort of liberal arts technology and that's so important in today's this country is a very special country to immigrants if you work hard and if you're willing to apply yourself and I'm a product of that hard work and now as an Indian American now living in California so I feel very fortunate for all that both the country and people who invested in me over the last many decades have helped me see the human progress is indeed possible through technology and this is the best showcase possible and when you can enable human progress which cuts across boundaries of nationality any other kind I think we are the winning streak service dog training program is built to have dogs help veterans in assimilation and help them with daily activities and post-traumatic stress all sorts of different things and they're different those are therapy dogs so those are dogs that will go everywhere with someone and really take care of them it's a beautiful beautiful donation and experience for the veterans to be able to have that [Music]

really is a unique piece of the VMware culture where the tech guys get together and they just geek out for a couple of days and you know to be to be awarded best the radio it's like oh man you're a god right I think culture is something that happens over time it is preserved over time and it's preserved through people it's not like anything you can write down right of course you can write it down but it won't be worth the paper it's written down unless it's practiced every day by the people about the future is about not only the applications and the the problems that technology can help solve but it's also about the nature of energy and the energy the grid makes the energy in the room is just phenomenal if people are they're really passionate about talking about their work and this people are they're wondering and you meet new people in fact for me in my role what I enjoy the most is of course getting to hear what you guys are doing but also helping them make connections [Music]

it comes to building a brand in a powerhouse brand enterprises really rely on customers to do that to really leverage the voice of customers to get the word out and to have customers go on record to talk about the power and the value of being because when customers go on record to talk about it there really is no better marketing than you everything is connected now and that data that's the value those are the data that the customer has is their crown jewels what beam is done really well is yeah they started off as a small virtualization player but as they've seen the market grow and evolved they've made adaptation to really be able to expand and stay with their customers as their needs have more been changed again in terms of the product design or we think customer pros make it easy for the customer and really seek to your core customer that that customer that is using your product every day so make it easy powerful and affordable that that was our four core principles in designing the product and the whole business model decided to be here the most exciting thing to me is is the recognition the conversations with customers with this journey towards intelligent data management as you as you said most customers are in stage 1 stage 2 but for us this is a partnership this is not just giving software this is talking to customers talking to partners making them success you [Music]

the problem people are trying to achieve is how to become a digital enterprise not just to automate but how do you create a digital enterprise you cannot become a digital enterprise unless your operations are digital you cannot make your operations digital unless your processes are digital and you cannot do that and let us say workforce is digital process automation helps get rid of the mundane and repetitive tasks but the ultimate goal is so that you can enable the humans to do more to enable a lot more creativity you're outside the box thinking we'll come up with new service models come up with new ways to solve things and this is only possible if you get rid of the repetitive mundane tasks which often block bounce down humans [Music] many more jobs we technically enable then will be eliminated by by technology there's gonna be some that are that are that are impacted more dramatically than others but I would I would actually say for most people the ability to have technology to help them do the day-to-day job is gonna have a much higher technology get adopted when you have to go and invest in it it takes passion you got to get people who believe people are committed people who want to go to do something come around like they have for all other things when computers came people had the same concern and Internet and ever I write I think in many ways this will help us help us improve our standard of living and take us to her [Music]