>>from San Francisco. It's the queue covering our essay conference. 2020. San Francisco Brought to you by Silicon Angle Media's >>Welcome Back Around Here at the Cube. Coverage for our conference. Mosconi, South Floor. Bring you all the action day one of three days of cube coverage where the security game is changing, the big players are making big announcements. The market's changing from on premise to cloud. Then hybrid Multi cloud was seeing that wave coming. A great guest here. Barr, our VP of product strategy and co founder of the Mystery, was acquired by Palo Alto Networks. Worries employed now, Rishi. Thanks for coming on. Thank you. Absolutely happy to be here. So, first of all, great journey for your company. Closed a year ago. Half a 1,000,000,000. Roughly give or take 60. Congratulations. Thank you. Big accomplishments. You guys were taken out right in the growth phase. Now at Palo Alto Networks, which we've been following, you know, very careful. You got a new CMO over there, Jean English? No, we're very well. We're very bullish on Palo Alto. Even though that the on premise transitions happening cloud. You guys are well positioned. How's things going things are going fantastic. We're investing a lot in the next Gen security business across the board, as mentioned Prisma Cloud is big business. And then on the other side, which is what I'm part of the cortex family focused on the Security operations center and the efficiencies That's fantastic and, ah, lot off product innovations, investment and the customer pull from an operations perspective. So very excited. You guys had a big announcement on Monday, and then yesterday was the earnings, which really kind of points to the trend that we're seeing, which is the wave to the cloud, which you're well positioned for this transition going on. I want to get to the news first. Then we get into some of the macro industry questions you guys announced the X ore, which is redefining orchestration. Yes. What is this about? What's this news about? Tell us. >> So this news is about Mr was acquired about a year ago as well. This is taking that Mr Platform and expanding it on, expanding it to include a very core piece, which is Intel management. If you look at a traditional saw, what has happened is soccer teams have had the same dead and over the last few years acquired a sword platform such as a mystery security orchestration, automation and response platform. But the Edge Intel team has always been still separate the threat Intel feeds that came in with separate. With this, we are expanding the power of automation and applying doc to the threat intelligence as well. That is, thread intelligence, current state of the art right now. So the current state of the art of threat intelligence is are the larger organizations typically subscribe to a lot of faith, feeds open source feeds and aggregate them. But the challenge is to aggregate them the sit in a repository and nobody knows what to do with them. So the operationalization of those feeds is completely missing. >> So basically, that is going to have data pile. Corpus is sitting there. No one touches it, and then everyone has to. It's a heavy lift. It's a heavy lift, and nobody knows. Cisco sees the value coming out of it. How do you proactively hunt using those? How do you put them to protecting proactively to explain cortex X, or what is it? And what's the value? So the cortex X or as a platform. There are four core pieces, three off which for the core tenants of the misto since the big one is automation and orchestration. So today we roughly integrate with close to 400 different products security and I t products. Why are the FBI on let customers build these work flows come out of the box with close to 80 or 90 different workloads. The idea of these workloads is being able to connect to one product for the data go to another taken action there Automation, orchestration builds a visual book second s case management and this is very critical, right? I mean, if you look at the process side of security, we have never focused as an industry and the process and the human side of security. So how do you make sure every security alert on the process the case management escalation sl A's are all managed. So that's a second piece off cortex. Third collaboration. One of the core tenants of Mr Waas. We heard from customers that analysts do not talk to each other effectively on when they do. Nobody captures that knowledge. So the misto has an inbuilt boardroom which now Cortex X or has the collaboration war room on that is now available to be able to chat among analysts. But not only that charged with the board take actions. The fourth piece, which is the new expanded platform, is the personal management to be able to now use the power of orchestration, automation collaboration, all for threat intelligence feeds as well. Not only the alerts >> so and so you're adding in the threat. Intelligence feeds, yes. So is that visualize ai on the machine Learning on that? How is that being process in real time? How does that on demand work for that fills. So the biggest piece is applying the automation and intelligence to automatically score that on being able to customize the scoring the customer's needs. Customized confidence score perfect. And once you have the high fidelity indicators automatically go block them as an example. If you get a very high fidelity IOC from FBI that this particular domain is the militias domain, you would want to block that in. Your firewall is executed immediately, and that is not happening today. That is the core, and that's because of the constraint is I don't know the data the way we don't know the data and it's manual. Some human needs to review it. Some human needs to go just not being surfaced, just not. So let's get back into some of the human piece. I love the collaboration piece. One of things that I hear all the time in my cube interviews across all the hundreds of events we go to is the human component you mentioned. Yes, people have burnt out. I mean, like the security guys. I mean, the joke was CIOs have good days once in a while, CSOs don't have any good days, and it's kind of a job board pejorative to that. But that's the reality. Is that it works? Yes. We actually okay, if you have another job. Talking of jokes, we have this. Which is what do you call and overwork security analyst. A security analyst, because every one of them >>is over word. >>So this is a huge thing. So, like the ai and some of the predictive analytics trend Is tourist personalization towards the analyst Exactly. This is a trend that we're seeing. What's your view on this? What? You're absolutely We're seeing that trend which is How do you make sure analyst gets to see the data they're supposed to see at the right time? Right. So there's one aspect is what do you bring up to the analyst? What is relevant and you bring it up at the right time to be able to use it. Respond with that. So that comes in one from an ML perspective and machine learning. And our cortex. XDR suite of products actually does a fantastic job of bringing very rich data to the analyst at the right time. And then the second is, can we help analyst respond to it? Can we take the repetitive work away from them with a playbook approach? And that's what the cortex platform brings to that. I love to riff on some future scenarios kind of. I won't say sci fi, but I got to roll a little bit of a future to me. I think security has to get to like a multi player gaming environment because imagine like a first person shooter game, you know where or a collaborative game where it's fun. Because once you start that collaboration, yes, then you're gonna have some are oi around. I saw that already. Don't waste your time or you get to know people. So sharing has been a big part? Yes. How soon do you think we're gonna get to an environment where I won't say like gaming? But that notion of a headset on I got some data. I know you are your reputation. I think your armor, you're you're certifications. Metaphorically putting. I think way have a lot of these aspects and I think it's a very critical point. You mentioned right one of the things which we call the virtual war room and like sex or I was pointing out the fact that you can have analysts sit in front of a collaboration war room not only charge for the appears but charged with a boat to go take care of. This is equivalent to remember that matrix movie plugging and says, you know how to fly this helicopter data and now I do. That's exactly what it is. I think we need to point move to a point where, no matter what the security tool is what your endpoint is, you should not have to learn every endpoint every time the normalization off, running those commands via the collaboration War Room should be dead. I would say we're starting to see in some of the customers are topics or they're using the collaboration war room to run those commands intractably, I would say, though, there's a big challenge. Security vendors do not do a good job normalizing that data, and that is where we're trying to reach you. First of all, you get the award for bringing up a matrix quote in The Cube interview. So props to that. So you have blue teams. Red teams picked the pill. I mean, people are people picking their teams. You know what's what's going on. How do you see the whole Red Team Blue team thing happening? I think that's a really good stuff happening. In my opinion, John, what's going on is right now so far, if you see if I go back three years our adversaries were are committing. Then we started to see this trend off red teaming automation with beach automation and bunch of companies starting to >>do that >>with Cortex X or on similar products, we're starting to now automate the blue team side of things, which is how do you automatically respond how do you protect yourself? How do you put the response framework back there? I think the next day and I'm starting to see is these things coming together into a unified platform where the blue team and the team are part of the same umbrella. They're sharing the data. They're sharing the information on the threat Intel chair. So I see we are a very, very good part. Of course, the adversities. I'm not gonna sit idle like you said about the Dev ops mindset. Heavens, notion of knowledge coming your way and having sharing packages all baked out for you. She doesn't do the heavy lifting. That's really the problem. The data is a problem. So much demand so much off it. And you don't know what is good and what is not. Great. Great conversation again. The Matrix reference about your journey. You've been an entrepreneur and sold. You had a great exit again. Politics is world class blue chip company in the industry public going through a transition. What's it like from an entrepreneur now to the big company? What's the opportunity is amazing. I think journey has been very quick. One. We saw some crazy growth with the misto on. Even after the acquisition, it's been incredibly fast pace. It's very interesting lot of one of the doctors like, Hey, you must be no resting is like, No, the journey is amazing. I think he s Polito Networks fundamentally believe that. We need to know where it really, really fast to keep the adversaries out on. But that's been the journey. Um, and we have accelerated, in fact, some of our product plans that we hard as a start up on delivering much faster. So the journey has been incredible, and we have been seeing that growth Will they picked you guys write up? There's no vesting interesting going on when you guys were on the uphill on the upslope growth and certainly relevance for Palo Alto. So clearly, you know, you haven't fun. People vested arrest when they checked out, You guys look like you're doing good. So I got to ask you the question that when you started, what was the original mission? Where is it now? I mean this Is there any deviation? What's been the kind? Of course you know, this is very, very relevant questions. It's very interesting. Right after the acquisition, we went and looked at a pitch deck, which we presented overseas in mid 2015. Believe it or not, the mission has not changed, not changing iron. It had the same competent off. How do you make the life off a security person? A security analyst? Easy. It's all the same mission by automating more by applying AI and learning to help them further by letting them collaborate. All the aspects off case management process, collaboration, automation. It's not changed. That's actually very powerful, because if you're on the same mission, of course you're adding more and more capabilities. But we're still on the same path on going on that. So every company's got their own little nuanced. Moore's Law for Intel. What made you guys successful was that the culture of Dev ops? It sounds like you guys had a certain either it was cut in grain. I think I would say, by the way, making things easy. But you got to do it. You got to stay the course. What was that? I think that's a fundamental cultural feature. Yeah, there's one thing really stand by, and I actually tweeted about a few weeks ago, this which is every idea, is as good as good as its execution. So there's two things between really focus on which is customer focused on. We were really, really portable about customer needs to get the product needs to use the product, customer focus and execution. As we heard the customers loud and clear, every small better. And that's what we also did. You guys have this agile mindset as well, absolutely agile mindset and the development that comes with the customer focus because way kind of these micro payments customer wants this like, why do they want this? What is the end goal? Attributed learner. Move on to make a decision making line was on Web services Way debate argue align! Go Then go. And then once you said we see great success story again Startup right out of the gate 2015. Acquire a couple years later, conventions you and your team and looking forward to seeing your next Palo Alto Networks event. Or thanks for coming on. Great insight here on the cube coverage. I'm John Furrier here on the ground floor of our S e commerce on Mosconi getting all the signal extracting it from the noise here on the Cube. Thanks for watching. >>Yeah, yeah,

>> Narrator: Live from Las Vegas, it's theCUBE covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. >> Welcome back, I'm Stu Miniman here with my cohost, Justin Warren, and you are watching theCUBE SiliconANGLE Media's live production of AWS re:Invent 2017. Happy to welcome back to the program, Rishi Yadav, who is the CEO of Zettabytes, and Bart Hickenlooper, who is the SAP of client services. Thank you so much for joining us. >> Thank you, Stu. >> So Rishi, yesterday you on the other set with John Furrier and with Justin, and we were really excited to really launch Zettabytes, help you bring the company out. We've known Infoobjects and your company for a while, so of course we want people to go check out the other interview, but in today's hybrid multi-cloud world, we've seen Amazon kind of slowly moderating a little bit the way they discuss it, but why don't you bring us inside a little bit? What are you hearing from customers, and what kind of led to the creation of Zettabytes? >> What we are hearing from customers is that there is a lot of talk about the cloud and AWS. The challenges that what I discussed yesterday also was that how do I take those baby steps toward our option of the cloud? That is where the challenge comes. On one side and they say everything on prem is bad. Everything on cloud is good. Those kind of statements are okay, but somebody who has got billions of dollars of business running, for them it doesn't make any sense. They want to have logical steps, and they also want to have, with every step, what value they are adding. >> We always hear, right, we always take in and it's like all in on any one thing. Oh come on, you are using various SAS providers. You probably have multiple cloud providers. Yes, you've still got something sitting in the backend of your data center, where many things, and that migration takes time. What kind of strategy and tactics do you hear customers doing that gets Zettabyte engaged? >> What was in most enterprises is an effort to really modernize their applications. They want to make those so that they are cloud native leveraging the innovation that's taking place in the cloud. That application modernization is really what's driving an enterprise to do some things and move quickly to the cloud. It's no longer the economics of moving to the cloud, but that innovation engine that can be really egnited with those technologies. Getting there from their legacy platforms is a little tricky. They need a development cycle that works in a hybrid fashion to really go cloud native with those applications. >> When they're starting off on that journey, where do you find customers starting with? What are the applications that they do first, and what are the functions that they use from AWS, like are they going with just EC2 type things? Are they using S3 for storage? What do they start with? >> That's a good point that for the first phase of the cloud out option most of the work was on IES. Whatever you have on prem, you just put that on the cloud then obviously you go through your storage and things like that. That is where there was a lot of talk. If you remember a few years back, everybody was saying, "The cloud is not cheap, "the cloud is costly," and as Bart said, it's not about economics. Has always about convenience. It's always about the value-added, and especially when enterprises started getting into the cloud, started the all opt in cloud a few years back, that's where those things became very important because that is what they wanted. You just cannot save someone 20% in investiture cost and that may not even come and that it's worth the option of the cloud. >> We were talking yesterday about the 100 services, the number of services that you as an orginzation have to wrap your brain around and one of the things that Zettabytes helps with that is to give you some focus so again, what are the things that Zettabytes is focusing on that they find that customers actually really, really want from cloud. Amazon is so huge. Making sense of the whole thing is quite tricky. When you talk about application modernization, if you have a monolithic application, EC2 and S3 are great. If you are going to migrate it, you can do that. What we are seeing is really a switch to DevOps for application development, microservices development that leverage certain platform services from Amazon that are specific to enable an application, and those are things like Lambda, Kinesis, Elasticsearch, and you can write microservices that consume those services in addition to your traditional storage and compute, and really get cloud native. We've selected those services on our platform to help with that application modernization and really enable a customer to make applications with microservices enablement. >> WikiBon has been looking at many years really. What has happened with this transformation of the data center. The research that we put out a few years ago is what we call true private cloud because like you said, what was happening the virtualization plus. I love virtualization. I spent 15 years on that wave, but it wasn't enough, and even when we started simplifying with even some automation on there, that application journey, and how do we get ready for modern applications? I worked a lot on the HCI wave. It was, "Let's modernize our infrastructure, "and then we will worry about that application stuff later, "and maybe it's not a fit." What is different now? What are the toolings available? Why is now, can I put that stuff, I mean, the cloud native, isn't it? That should all live in a public cloud, no? What cannot live in many places? >> I think that's a great point. Three pieces of the puzzle, infrastructure, data, and the applications so there has been a lot of talk about infrastructure and not having infrastructure. Data, every other company in the Bay Area is a backup and restore company. Nobody is talking about applications. Yes, they are SAS players, right? We are like, okay, we will just host an application for you and you don't have to worry about anything else, but what about a lot of these legacy applications which have been built over the last 20 or 30 years? Nobody is talking about that. Everybody talks about greenfield applications. What about we start new? Everything is going to be the cloud. Is going to be cloud native. Everything is awesome, and then the clients say, "Yes "but I already invested $5 million in the applications "in the last 10 years." What's going to happen to them? >> To say that the first 80% of writing software is putting the bugs in, and then the second 80% of writing software is taking them out again, so if you have to completely start with these core business applications that are generating revenue, there's a lot of risk there in going to something brand-new. I know we've had Andy Jassy talking about if I was starting the company again today, I would go completely all serverless. And I think, really? Right now in 2017? Is it really that established and that great? What is your take on that? For an enterprise that have this investment already, should they be going completely all into serverless, or should they be picking off some of these other more mature services do you think? >> I would say it would be really application-specific. If it's traditional transactional, you may or may not want to go serverless because you've got that relational database really kind of structured around it. If it's a modern application and you are a company that has, for example, a brand-new mobile application, then you are going to want to leverage things like Lambda in those application development so you can trigger the correct service to spin up in that application. I think modernization is really specific to the use case. What we are seeing is a digital transformation in most companies where they are really requiring some newer applications to leverage past services like Lambda, Elasticsearch, Kinesis, and other things. >> Rishi, one of the things that we've heard from customers for many years is they so that they'd like to have the same in their data center as in the public cloud. We did a survey years ago and everybody, it was like 80% said that then said, "What do you have?" I've got VMware here and I've got an AWS there. Is it about having the whole stack? Are APIs enough? How much commonality do you need? How does Zettabytes look at this And had to help customers bridge this model? >> Yes absolutely, so number one is that the VMware type of solution is still pretty much, I like VMware but it's pretty much infrastructure as a service base. The second thing is the reason we have come up with our platform is that few core services and for few key workloads, IOT is being one of them, low intensive uploads being another of them, the workloads in which you need special type of security and governance which clients are used to from the last 20 years. Yes, AWS have amazing security and governance, no doubt about that, but still, part of the workload they may want to run locally, and they should at least have that freedom. Only those part of workloads are going to be run on Zettabytes plans, but the API compatibility will provide complete, so whether you want to run it on Zettabytes or on AWS, most of the workloads are going to work on AWS, and that you can run from our platform. >> I want to keep off the word you mentioned there. You mentioned appliances. We have seen lots of solutions over the last decade. You have done quite well as appliances. Talk about the HCI, talk about the backup recovery, lots of things there, but it's a software world now. Hex serverless, Andy Jassy says we will build serverless. Why an appliance? Talk a little bit about the go to market. What do people get today? How do they buy it? Why does that make sense for your customers? >> Yes absolutely, a value added more from the sales perspective but appliance, from the optimization perspective is perfect. In our case, yes, we have figured out a spec which is perfect perfectly optimized for tuning our software platform and we can provide to the clients. If they want to have a similar stack built themselves that is perfectly okay, but the idea is that hardware has an equally important role to play as software has. >> When you think about the platform services that we have like S3, RDS, and others, you definitely need hardware to support a real workload and for us to really standardize on something that someone can do, true development with that depth on the platform is really critical. You can go to GitHub and get open source S3 and work around it, but it's a mock. Really what you need is a platform to develop application, and the other thing is I worked for Cisco for 10 years, and the channel there is extremely powerful with companies like CDW, WWT, the routes to market there is really compelling for combined solution and I think part of the reason you are seeing success with those combined solutions is the customers are used to a service model where it's one throat to choke on those types of platforms, and the channel is a trusted advisor. It's a great way for us to go to market. >> Yeah, to just give my two cents on that, people conflate that we've had some commoditization of what's happening in infrastructure. It doesn't mean just grab stuff off of the shelf. I read an article 4 years ago. AWS infrastructure is hyper optimized. If you went to the Tuesday night's keynote, oh my gosh, they spent way more on hardware than anybody else in this ecosystem, I'm sure, and spent more as much, so it's not that you have IP in hardware. From my understanding it you are making sure you've got, your software is natural to package. If I can do it, somebody else can do it. >> Bart: Yeah, go ahead. >> Absolutely, I think that part is very, very important that one throat to choke, one company which supports everything. In our case, yes, if you want to have your own hardware, then you can do that, but in our case, if you take the whole appliance from us, that we are providing you complete support. Hardware, operating system, as well as the software. >> And in a certain sense, we are really trying to, l like you said, Stu, match the performance of those optimized environments on AWS for our clients so they get a similar experience from our platform that they would get on AWS. If they build something on Zettabytes and then deploy on AWS, they should get the same experience. >> I want to give you the last word. I'm sure you have lots of customers coming by our booth. It's not far from where you're sitting right now. What are some of the key things they are hearing? What is getting them excited, interested in, that they want to follow up with? >> I think most of the customers we've talked to we say, "Okay, are you using AWS?" they say, "Yes," because they are at re:Invent. I say, "Okay, how far you are in the AWS option?" that's where the devil comes in the details. These applications we have been able to migrate, these we have not been able to migrate. We are building our exponents around it and things like that, and then the question comes, "Do you really want to go too deep into figuring out "the problems which the vendors have solved, "or would you rather focus on your business problems?" that's what I would say. They would say one package, one platform when you get to focus on your business problems and we take care of the rest. >> Yeah, and I think in the keynote yesterday, Andy Jassy said it's all about the analytics and what we are hearing is we've given a lot of thought to putting together a platform that supports big data analytics in addition to the AWS abstraction that we've done, so those analytics workloads were really intriguing to people that are talking with us, our support of machine learning, converting what may be a traditional spark job into a Lambda function is really something people are raising their eyebrows about. >> Bart Hickenlooper, Rishi Yadav asking how deep you are into AWS? Well here at theCUBE we are about 60 interviews in which means we have a few more hours left of great interviews here, so for Justin Warren, I'm Stu Miniman. Thank you so much for watching theCUBE.

>> Announcer: Live from Las Vegas, it's The Cube, covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. Live here in Las Vegas, the Cube is covering exclusively the AWS re:Invent. We've got two sets. This is set one, set two behind me. We're here with a startup called Zettabytes, Rishi Yadav, Cube Alumni CEO, and Sudhir Janir, CTO. Hot new start-up, Zettabytes. Formerly, you're an entrepreneur, your other company's still going, Info Objects. Welcome back. >> Thanks for having us here. I dont know it's the seventh time, eighth time? I mean, we love Cube guys. Yes, so Info Objects is the mothership and doing really, really great, and today we are launching Zettabytes, which is our hybrid cloud, cloud integration platform. We are starting with AWS, and then it's going to have integration for the clouds. >> So start-ups are impacted, and we were talking yesterday about kind of a demarcation line between a point in time. I say 2012, maybe you can say 2014, if you were born before 2012 or 2014, you probably didn't factor the cloud as large scale as it is. But after that day, you're a new born start-up, you look at the cloud as a resource, an opportunity, so what's your perspective as an entrepreneur, a serial entrepreneur, you start a company, you look at the big beast in Amazon, opportunity, challenge, what's your view? >> So actually 2014 was an inflection point for two things. Number one is that the big data, big data, it started with the hyper scale companies, and at that time, you're talking about Facebook, and Yahoo and other places, but it was not enterprise-ready. And we suddenly saw the option. John, you have been following the big data directly from the, I think the cloud data basement days, right? So in 2014 it got a better option. And the things like security and governance, which were offered not much concern earlier, it became front and center. Another thing which happened was around 2014, 2015, timeframe, the public cloud, which were for eight, nine years, essentially AWS, that was about 70 start-ups about saving money for them. That also started getting an option, and the enterprise, and when you're talking about enterprise, there you cannot tell them that if you deploy 10 servers on AWS, it's going to save you $200,000. They would say you already have $500 million spent. We have these huge data centers, so they needed some more value than that. >> How about your company Zettabytes, so you're launching a new company, what is it, what does it do, why are you starting it? Take a minute to explain what you're doing. >> Yes, absolutely. So the Zettabytes idea came from this convergence of the big data, public cloud and IOT. And market is ripe for it, and the challenge was that we talked to a lot of customers, a lot of them have already started working in the cloud, and some of them were planning to start the journey in the cloud, and the challenge was that at the same time they also wanted to build a big data link, Andy talked about it a lot today, right, assuming the largest big data lake. So now the question was that do you really want to go the old school route in which you are using Hadoup and other services around it, and then you do lift and shift to AWS? And then you transform to PAS. So you spend one and a half, two years in doing Hadoup, and then you spend another one and a half, two years, doing the PAZ, that cloud-native transformation in a better way. And then realize that whether the clients are on AWS today, or they are going to be in one year, they need the same experience, the same cloud experience, the same AWS experience which they have on their AWS, they want on-prem. Now that includes the other cloud-native APIs, but also the agility and everything else. >> So let met ask Sudhir a question. So you're the CTO. I know you're technical too, so I have both of you. So the old days, I'm a developer, I have my local host, I'm banging away code, and then I go, okay I'm done. And I say, ship to the server for QA or whatever. And even the cloud. Businesses want that same kind of functionality on premise. They want to go to the cloud, so all the developers are changing, they want that local host like feel. They don't wanna have to write code, ship it to a server, put it through the cloud, they just want instant integration to Amazon. Is that what you're doing? >> Yeah. >> Did I get it right? 'Cause that seems what I think you're doing. >> Yes, you develop that seamless experience. So you have the same set of APIs, which you normally would do on AWS, so still use the same data, still use the same data blue CLI. Use all data blue APIs, we're accepted those APIs on this platform, build a good base, based on those APIs, now using Kubernetes, you decide where this workload will go. >> So one of the challenges of AWS though is that they release services like constantly. I think we had the announcer at the keynote today, it was like another hundred or so services that they were releasing. So how do you choose which ones? Do you support all of them, or do you focus on specific ones? >> No, first we are focusing on a few specific ones, which are mostly being used. We are starting with Lexi, for example, as three. Lamda, Kenesis, Kafka, and this bargain is DFS are there from day one also. And all of these are Lexi, we are doing Lexi, today official announcement, they have launched Kubernetes Now. Container management service. We have that flexibility from day one only. So we have that in our outlines, and using that, even for example, your workload says, some of the piece should run on that, on Lexi, on permalines. Some of the P should go to the cloud, that is also possible. >> So you're selling an appliance. >> Yeah, yeah. The one million Lexi, or Kubernetes million might run on the AWS, few of the menus might run on your uplines, you can easily Lexi's do the all the container management. >> This is model, they pay for the box, or is it a service? Or they get the box as part of a service? What's the business model? >> So we do both, so it's a (mumbles) format, as well as an appliance, so the beauty of appliances is that everything is already optimized for you, so that makes it very easy. But if a customer has a chosen hardware platform, and we can definitely deploy it on that also. And adding to the hunter services thing, I think that's a great point, that AWS has so many services now that can you really go and figure out which services are most optimized for your needs? So that's where you need a partner on prem-site, and that's what we are going to be, and another thing as Sudhir mentioned, the EKS which they announced today, Kubernetes, so you have Kubernetes on-prem, AWS is supporting Kubernetes, and we are also supporting Kubernetes, so if you want closer to that level, it's completely seamless. >> And you were saying before, your target is enterprise has been good, so the appliance delivery model and the simplicity of being able to manage a lot of different services. Clearly being able to manage things at scale is something that enterprisers are crying out for because otherwise I have to, AWS is great, if you wanna hand build everything yourself, it has all of those components that you can assemble like Lego, but if I'm an enterprise, I want to be able to do that at scale. Humans don't scale very well, so I need some technology to help with that. So it sounds like you are actually providing the leverage to get enterprise humans to be able to manage AWS. Is that a fair characterization? >> Absolutely, that is definitely a very important aspect of it, and another aspect of it is that if you do not want to have some workloads on AWS for one thing or another. IOT workloads by definition cannot be on AWS. Low intensive workloads. They cannot be on AWS. In the same way the workloads in which you need some actual level of security. So within your data center, as much as beat down the data center piece, you have your own security and governance. And you can do that, and that's coming back to your question that are we going to support all hundred services, yes, but the local execution we have only going to provide for some services, which by their very nature make more sense to learn on-prem. >> Yeah, keep the core services. >> Rishi: Core services. >> All right so how do you guys gonna sell this product, take us through the start-up situation, you're here, are you talking to customers? Why are they are buy you? What's the conversations like? When do they need you? Take us through your conversations here at re:Invent. >> Yeah, so before that, the AWS has been super successful for the green field applications. The new applications, the applications which are born in the cloud, but when it comes to transforming the existing application it becomes a big, big challenge. So a lot of customers are coming to us, they are interested in how I can seamlessly transform their-- >> John: What's an example workload? >> So the example workloads for us is going to be the big data workloads. Which we have specialized in for last so many years. So one of them can IOT. Sudhir, probably you can explain what that is. >> So that example could be for example from today's keynote, if you see Expedia case, or Lexi Goldman Sachs case, they spend a lot of time in converting their code to the AWS specific-word, right? Millions of lines, or billions of lines of code. What we are doing today, if you dealing with the application, tomorrow it could be future ready for AWS. It's more convenience, we are actually modeling your experience with AWS. >> So it's making for enterprisers to make that transition from what they're doing today across the cloud, because that's a big deal for them. >> Tomorrow when you are Lexi, then you go to AWS, your data will decide whether you want to earn your workload on our plans, or AWS. >> Okay, so your market is hybrid cloud, basically. People doing hybrid cloud should talk to you guys. >> Yeah, and code would be future proof. What you you are you developing today-- >> John: All right so is the product shipping? >> Yes, so we are in the early beta stage, we already have five beta customers. And the product is going to be ready in a week's time. >> So data now. >> Yeah, yes. >> Yeah, these guys are ready already. >> Open beta, restricted beta? >> It is going to be restricted beta for now. Then it's going to be open beta, so yes, we are going to five more customers in the next two months for the beta. >> Take a minute to explain the type of customer you're looking for. Are they all field spots, any more, you have five more spots, you said? >> Yeah, we have five more spots for the beta. >> John: Who are yo looking for out there? >> Any large enterprise which is planning to move to AWS, but are struggling with all the nitty gritties, looking at the hundred services, and how do you integrate your existing applications there. So how you could take baby steps, like so we are going to not just take that baby steps, but sprint through it, so that's what Zettabytes plans is for. >> Rishi, congratulations on the new start-up, launching here, Zettabytes, open beta, five more spots left. Check 'em out, Zettabytes, if you're doing hybrid cloud or true private cloud, they have five spots available. It's The Cube, bringing all the action, the start-up action here and also the conversations at re:Invent. I'm John Furrier, Justin Warren. We're back with more after this short break. (electronic jingle)

from the cube studios in Palo Alto in Boston it's the cube covering the IBM thing brought to you by IBM we're back this is the cubes coverage of the IBM think 20/20 digital experience my name is Dave Volante is a wall-to-wall coverage over the multi-day event Harish promise here he's the general manager of the IBM public cloud rishi welcome back to the cube good to see you sorry we're not face to face but this will do yeah thank you great to see you again as well and you know it is the times what do you do you know I want to start by asking you you did a stint at a large bank I'd love to talk to you about that but but I want to stay focused you said last year on the cube you can't do everything in the public cloud certain things need to remain on Prem I'm interested in how your experience at the large financial institution and your experience generally working with you know your colleagues in in the banking industry how that shaped your vision of the IBM public cloud yeah I think that's a great question you know if you think about trying to transform yourself to a public cloud a lot of people what they try to do is you know they take applications that I've been running their enterprise and they try to redo them in its entirety with micro services using as level services I mean trying to put it all up in the public cloud now you know just think about some of these applications that are running your large institution right some of them will have regulatory ruled around it some of them have latency requirements or low latency requirements I should say some of them need to be close to the back end because that's where the data is so for all these reasons you know you have to think about a holistic cloud picture of which public cloud is you know integral to it but some of the things will need to remain on Prem right so when I build my public cloud out for IBM I kind of keep those in in the back of my mind as I get the team to work on it to ensure that we have the right capabilities on the public cloud and then where it makes sense you know have the right capabilities on the hybrid side as well working with my colleagues in IBM well you know the doc Ovid 19 pandemic that we've been talking to a lot of CISOs and CIOs we had a couple of roundtables with our data partner ETR and it was interesting you know organizations that maybe wouldn't have considered the cloud certainly as aggressively maybe they put some test dev in the cloud but you know have said well we're really reconsidering that one CIO actually said you know I'd love to delete my data center but but to your point you can't just delete the data center um first of all you don't want to necessarily move stuff second of all we've got a lot of experience from a consulting standpoint looking at this if you have to migrate migrates like an evil word especially with mission critical systems if you have to freeze code and you can't upgrade you know for some number of months you may be out of compliance or you're not remaining competitive so you have to really be circumspect and thoughtful with regard to what you do move I wonder if you could comment on that no I completely agree with what you're saying you know if you think about to your point right with Kovac things that really changed I've been speaking with a lot of cloud transformers I would say you know in the various industries but specifically with banks as well and the cloud leader for one of the large European banks said to me he said this was amazing because for four years he's been trying to get his he shows organization and risk and compliance etc to get their heads around moving applications to the cloud and he said that you know one month of kovat and having everyone locked down and home has been able to unblock more than what he's tried in the last four years so that's telling in itself right so look you know I've been working on public clouds for a good long time now both from a provider side as well as a consumer side and while you know you certainly just can't close your data centers that are running your large enterprise overnight you certainly can take a lot of stuff over there and move it to the public cloud in a meaningful fashion where you're able to take the pieces that really iterate more rapidly where you can get the end while keeping your data safe and you know being able to connect back into your back-end systems which will run a lot of your large processes in your enterprise as well so I think there is a balance to be had here and people especially banks I would say haven't been moving so much to the public cloud and I think this is the time where they're starting to realize that there is a time and place for a bunch of applications that can safely move and that gives them the agility and the productivity while everyone's locked at home and I think that's the eye opening so I'd love to have a frank conversation about why the IBM cloud I mean you know you got the the big guys you know Amazon Microsoft and Google maybe not as large people put them sort of in a category of hyper scalars great fair enough that people oftentimes dismiss you know the IBM public cloud however your point that you just made is critical and Ginni Rometty you was the first to kind of make this point Arvin's picked up on it that 80% of the workloads still are on trem and and it's that hard to move stuff that hasn't moved so and that's kind of IBM's wheelhouse I mean let's face it that the hard stuff it's the mission-critical you're kind of running the the banks and the insurance companies and the manufacturers and airlines around the world so what's the what's the case for the IBM cloud why the IBM cloud and why even move that stuff why not just leave it where it is yeah so I think there's a couple of answers here right one of them is the fact that when you talk to the hyper scalars and by the way I can't stress enough or a hyper scaler as well right people have taken a look at iCloud from about two plus years ago which you know at which point in time we were not but we certainly are and we can provision via size and so on and so forth as best as the best guys can so I want to just get that out of the way but to your point you know the reason why you would consider the IBM public cloud is when you talk to the other people they come at it from a very narrow perspective right they think about you know use vs is on x86 using cloud native pass services now you know I want to stress again that we do all three of those things extremely well but if you think about how large enterprises work nothing is as clean as that I did say there is a lot of applications that I've been running your institution that you can just willingly rewrite and then you have bare metal you'll have power systems whether it's AIX or I you'll have some Z in there Z Linux in there and then there's containers and then there's the VMware stack and there's containers running on bare metal containers running on vsi containers running on you know the VMware stack as well as the other architectures that I mentioned so we really meet our customers where they are in their journey and we give them a wide variety of capabilities and choices and flexibility to do their applications on the public cloud and that's what we mean by saying our cloud is enterprise ready as opposed to the nano answer of you'll do everything with vs is x86 and a service yeah I like that and I want to I want to circle back on that thank you for clarifying that point about hyper skills having said that it I've often said and I wonder if you could confirm or deny it's not IBM strategy to go head-to-head on cost per bit even though you you will you'll price it very competitively but your your game is to add value in other ways through your your very large software portfolio through AI things like blockchain and differentiable services that you can layer on top I've often made the point I think a lot of people don't understand that that insulates IBM from a race to the bottom with the alcohol traditional a cloud suppliers I wonder if you could comment yeah you know so I have to stress the point that just because I talk about all our other distinguishing capabilities that people don't walk away with the impression that we don't do what any of the other large cloud service providers do you know to your point we have AI we have IOT we've got a hundred ninety API driven cloud native pass services where you can write a cloud native application just like you build on the hyper scale other hyper scalars as well right so we give nothing away but for us the true value proposition here is to give you all of those capabilities in a very secure environment you know whether it is the fact that we are the only cloud where we don't have access to your data or your code because we have a keep your own key mechanism where we as a cloud service provider have no access to your key nobody else can say that so it is those Enterprise qualities of service and security that we bring to the table and the other architectures and the other you know constructs around bare metal and containers etc that distinguishes us further right and that's how it really so these are really important points that you're making and I know I'm kind of bringing out probably parts of the landscape that IBM generally doesn't want to talk about but I think it's important again to have that frank conversation because I think a lot of people misunderstand IBM is in the cloud game not only in the cloud game to your point but has very competitive you know from an infrastructure standpoint so many companies in the last decade we saw HP tried to get in they exited very quickly Joe to cheese's the CEO of EMC said we will be in the cloud you know they're buying mozi and you know exiting that so Dell right now doesn't you know it won't have a cloud play VMware tried to get in and now its course big partner of yours so you got in and that to me is critical just in terms of positioning for the next decade and beyond and and the other piece of differentiation that I want to drill into is the financial services cloud so what is that you obviously have a strong background there let's let's dig into that a little bit yeah if you look at the way most banks or actually every bank uses a public cloud is they build guardrail right they build guardrails from where their data center ends to where the public cloud begins but once you get into the public cloud then it really depends on the security that the cloud service providers provide and the csps will tell you that they have a lot of secure mechanisms there but if you ever speak with a bang you know they will never put their highly confidential data bearing apps with PII on a public cloud because they don't feel that the security that the cloud service providers provide is good enough for them to be able to put it there safely number one and number two prove to their regulators that they are in fact and compliant so what we've done is we work with a Bank of America and now you know a whole bunch of other banks that I'm not allowed to mention by name as yet where we're building a series of controls right these are both controls during your dev Sakharov cycle when you're building your app and another 400-plus controlled and the runtime that allow you is the bank to securely take your apps that have highly confidential data in III and put it on the public cloud and will give you the right things whether it's the isolation of the control plane and the data plane or it's their data loss prevention mechanisms the right auditing points the right logging points the right monitoring points the right reporting data sovereignty so we have controls built into the cloud that enable you to do all of this now banks will be quick to tell you that the onus of proof is on them alone to the regulators and we can claim that for them and they're absolutely right but today they spend hundreds of millions of dollars collecting all of that in providing that proof to the regulators you use our cloud we automate a whole bunch of that so you're not number one as a bank trying to implement these controls on a public cloud because that's not your job that's not your core expertise and number two when you actually build these compliance report you spending you know millions and millions of dollars trying to put it together whether compliance regulator will say yes this is okay we automate a large part of that for you and I think that's the key is the key issue we're solving you I want to follow up and just make sure I understand it is when I talk to executives in the financial services industry and other industries those they'll say things like look it's not that the cloud security is is bad it's just that I can't map the edicts of my organization into it certainly easily or even at all because I'm getting a sort of standard set of capabilities and it may not fit with what I need what I'm what I what I'm hearing is that IBM you know you guys are enterprise-c you used the specials but but so that's part of it but you also said you know they feel sometimes the cloud is that the security is not good enough and I want to understand what that is specifically if IBM is doing something differently so two things there one is your willingness whether it's auditability transparency mapping to corporate edicts and it may be other things that you're doing that make it better relative to go together yeah absolutely so one of the things is as I mentioned it's the mechanisms like keep your own key which is fundamental to building some of these compliance safeguards in but the the fundamental different thing we've done here is we work with the Bank of America and we've defined these controls to use your language that maps to their edicts right which should map to every banks edicts no you know there'll be a couple of extra controls here or there but largely they're all regulated by the same regulator so what satisfies one bang for the most part satisfies every other bank of the US as well right and so specifically what we've done is we've built those controls whether they are preventative controls or compensating controls in the CI CD pipeline as well as in the runtime on the cloud and that gives them a path to automation to produce the right results and the right reports to their auditors and that's really what we've helped them do so I know I'm pushing you here a little bit I'm gonna keep pushing if that's okay I was a great conversation when when IBM completed the acquisition of Red Hat you know the marketing was all about cloud cloud cloud and I came out and said yeah okay fine but what it's really about is application modernization that's the near-term opportunity for IBM you certainly saw that in the last earnings report where I think you're working with a hundred plus you know clients in terms of their application modernization so I said that is the way in which this thing becomes a creative which by the way it's already a creative and from a cash cash flow standpoint but but but but I'm gonna press you on on the cloud piece so talk about Red Hat and why it is cloud in terms of a cloud play yeah so you know this is the power of Red Hat and the IBM public cloud and of course Red Hat works or the other cloud print service providers as well so if you think about modernizing your application you know the industry pretty much has standardized around containers right as the best way to modernize their applications and those containers are orchestrated by kubernetes that's the orchestrator that's basically won the battle and Red Hat has OpenShift which is a industry-leading capability you know it's a coupon IDs control plane that manages containers and we from IBM we've put our content we've read backer a content into containers and we've made it run on an open ship and we have a cloud managed open ship server on the IBM public cloud as well as an on-prem that really helps bring our content to people who are trying to modernize their applications now think about an application that most people try to modernize you know the rough rule of thumb about 20 to 25 percent of it there's application code that is the onus is on the client to go and modernize that and they've chosen containers and turbidities and the other 75 to 80% arguably is middleware that they've got right and we've really tected in refactor that middleware into containers managed by open ship and we've done 80% of the work for them so that's how this whole thing comes together and you can run that on Prem you can run it on the IBM public cloud and I give you a cloud managed openshift service to do that effectively honor so that's interesting yeah that's very interesting I think there are you know probably at least three sort of foundational platforms one is obviously easy mainframe it's still much of IBM's customer base you know the tied to the Z and it drives all kinds of other software and so what the second is middleware to your point and you're saying you refactored and I think the third really is your choice of hybrid cloud strategy you kind of made the point you threw an on-prem it's to me it's that end-to-end that's your opportunity and your challenge if you can show people that look we've got this cloud-like experience of from cloud all the way to RM multi clouds that is a winning strategy it's jump ball right now nobody really owns that space and I think IBM's intent is to try to go after that I think you've called it a trillion-dollar market opportunity and it's obviously growing yes that's exactly right and the P spot so that I've been describing to you the you know the way people modernize our applications all fit very nicely into that now if you speak with the analysts they're going towards a whole different category called distributed cloud which basically means you know how do you bring these capabilities that run on your public cloud do on-prem and do other people's clouds and you know what I hinted at here is that's exactly where we're going with our set of capabilities and that is a technical journey I mean kubernetes is necessary but insufficient condition to have that sort of Nirvana of this distributed massive distributed system bring in edge edge systems as well so this is a you know at least a multi-year maybe even a decade-long journey there's a lot of work to be done there what would you say are their strategic imperatives for IBM cloud over the next several years so I think for us really it is you know building on this notion of the distributed cloud as I talked about it is you know fully building out the FSS cloud most of which we've already done and you know some of these things will never be at end of job because regulations keep changing and you keep adding to it and so you have to keep adding to it as well so a focus on FSS to begin with but then also to other industries as well right because there are other regulated industries here that can benefit from the same kind of automation that we're doing for FSS so we'll certainly do that and we're in a good position because it's not only our technology but it's our services practice it's a premonitory that deals with regulators etc so we have the whole package so we want to continue to build out on that branch into other industry verticals using our industry expertise across the board services product everything and then of course you know if there's one thing I BM has market permission for it is understanding the enterprise and building a secure product so we clearly want to evolve on that as well the IBM is a lot of arrows in its quiver including as we discuss cloud you know you just got to get her done as they say so iris thanks so much for coming to the cute great discussion appreciate your your transparency and and stay well Thank You YouTube thank you so much re welcome and thank you for watching everybody this is the cubes coverage of the IBM pink 2020 digital event experience we'll be right back right after this short break [Music]