>> Now we're recording. >> All right. >> Appreciate that, Hannah. >> Yeah, so I mean, I think in general we continue to do very, very well as a company. I think like everybody, there's economic headwinds today that are unavoidable, but I think we have a couple things going for us. One, we're in the cyberspace, which I think is, for the most part, recession proof as an industry. I think the impact of a recession will impact some vendors and some categories, but in general, I think the industry is pretty resilient. It's like the power industry, no? Recession or not, you still need electricity to your house. Cybersecurity is almost becoming a utility like that as far as the needs of companies go. I think for us, we also have the ability to do the security, the security operations, for a lot of companies, and if you look at the value proposition, the ROI for the cost of less than one to maybe two or three, depending on how big you are as a customer, what you'd have to pay for half to three security operations people, we can give you a full security operations. And so the ROI is is almost kind of brain dead simple, and so that keeps us going pretty well. And I think the other areas, we remove all that complexity for people. So in a world where you got other problems to worry about, handling all the security complexity is something that adds to that ROI. So for us, I think what we're seeing is mostly is some of the larger deals are taking a little bit longer than they have, some of the large enterprise deals, 'cause I think they are being a little more cautious about how they spend it, but in general, business is still kind of cranking along. >> Anything you can share with me that you guys have talked about publicly in terms of any metrics, or what can you tell me other than cranking? >> Yeah, I mean, I would just say we're still very, very high growth, so I think our financial profile would kind of still put us clearly in the cyber unicorn position, but I think other than that, we don't really share business metrics as a private- >> Okay, so how about headcount? >> Still growing. So we're not growing as fast as we've been growing, but I don't think we were anyway. I think we kind of, we're getting to the point of critical mass. We'll start to grow in a more kind of normal course and speed. I don't think we overhired like a lot of companies did in the past, even though we added, almost doubled the size of the company in the last 18 months. So we're still hiring, but very kind of targeted to certain roles going forward 'cause I do think we're kind of at critical mass in some of the other functions. >> You disclose headcount or no? >> We do not. >> You don't, okay. And never have? >> Not that I'm aware of, no. >> Okay, on the macro, I don't know if security's recession proof, but it's less susceptible, let's say. I've had Nikesh Arora on recently, we're at Palo Alto's Ignite, and he was saying, "Look," it's just like you were saying, "Larger deal's a little harder." A lot of times customers, he was saying customers are breaking larger deals into smaller deals, more POCs, more approvals, more people to get through the approval, not whole, blah, blah, blah. Now they're a different animal, I understand, but are you seeing similar trends, and how are you dealing with that? >> Yeah, I think the exact same trends, and I think it's just in a world where spending a dollar matters, I think a lot more oversight comes into play, a lot more reviewers, and can you shave it down here? Can you reduce the scope of the project to save money there? And I think it just caused a lot of those things. I think, in the large enterprise, I think most of those deals for companies like us and Palo and CrowdStrike and kind of the upper tier companies, they'll still go through. I think they'll just going to take a lot longer, and, yeah, maybe they're 80% of what they would've been otherwise, but there's still a lot of business to be had out there. >> So how are you dealing with that? I mean, you're talking about you double the size of the company. Is it kind of more focused on go-to-market, more sort of, maybe not overlay, but sort of SE types that are going to be doing more handholding. How have you dealt with that? Or have you just sort of said, "Hey, it is what it is, and we're not going to, we're not going to tactically respond to. We got long-term direction"? >> Yeah, I think it's more the latter. I think for us, it's we've gone through all these things before. It just takes longer now. So a lot of the steps we're taking are the same steps. We're still involved in a lot of POCs, we're involved in a lot of demos, and I don't think that changed. It's just the time between your POC and when someone sends you the PO, there's five more people now got to review things and go through a budget committee and all sorts of stuff like that. I think where we're probably focused more now is adding more and more capabilities just so we continue to be on the front foot of innovation and being relevant to the market, and trying to create more differentiators for us and the competitors. That's something that's just built into our culture, and we don't want to slow that down. And so even though the business is still doing extremely, extremely well, we want to keep investing in kind of technology. >> So the deal size, is it fair to say the initial deal size for new accounts, while it may be smaller, you're adding more capabilities, and so over time, your average contract values will go up? Are you seeing that trend? Or am I- >> Well, I would say I don't even necessarily see our average deal size has gotten smaller. I think in total, it's probably gotten a little bigger. I think what happens is when something like this happens, the old cream rises to the top thing, I think, comes into play, and you'll see some organizations instead of doing a deal with three or four vendors, they may want to pick one or two and really kind of put a lot of energy behind that. For them, they're maybe spending a little less money, but for those vendors who are amongst those getting chosen, I think they're doing pretty good. So our average deal size is pretty stable. For us, it's just a temporal thing. It's just the larger deals take a little bit longer. I don't think we're seeing much of a deal velocity difference in our mid-market commercial spaces, but in the large enterprise it's a little bit slower. But for us, we have ambitious plans in our strategy or on how we want to execute and what we want to build, and so I think we want to just continue to make sure we go down that path technically. >> So I have some questions on sort of the target markets and the cohorts you're going after, and I have some product questions. I know we're somewhat limited on time, but the historical focus has been on SMB, and I know you guys have gone in into enterprise. I'm curious as to how that's going. Any guidance you can give me on mix? Or when I talk to the big guys, right, you know who they are, the big managed service providers, MSSPs, and they're like, "Poo poo on Arctic Wolf," like, "Oh, they're (groans)." I said, "Yeah, that's what they used to say about the PC. It's just a toy. Or Microsoft SQL Server." But so I kind of love that narrative for you guys, but I'm curious from your words as to, what is that enterprise? How's the historical business doing, and how's the entrance into the enterprise going? What kind of hurdles are you having, blockers are you having to remove? Any color you can give me there would be super helpful. >> Yeah, so I think our commercial S&B business continues to do really good. Our mid-market is a very strong market for us. And I think while a lot of companies like to focus purely on large enterprise, there's a lot more mid-market companies, and a much larger piece of the IT puzzle collectively is in mid-market than it is large enterprise. That being said, we started to get pulled into the large enterprise not because we're a toy but because we're quite a comprehensive service. And so I think what we're trying to do from a roadmap perspective is catch up with some of the kind of capabilities that a large enterprise would want from us that a potential mid-market customer wouldn't. In some case, it's not doing more. It's just doing it different. Like, so we have a very kind of hands-on engagement with some of our smaller customers, something we call our concierge. Some of the large enterprises want more of a hybrid where they do some stuff and you do some stuff. And so kind of building that capability into the platform is something that's really important for us. Just how we engage with them as far as giving 'em access to their data, the certain APIs they want, things of that nature, what we're building out for large enterprise, but the demand by large enterprise on our business is enormous. And so it's really just us kind of catching up with some of the kind of the features that they want that we lack today, but many of 'em are still signing up with us, obviously, and in lieu of that, knowing that it's coming soon. And so I think if you look at the growth of our large enterprise, it's one of our fastest growing segments, and I think it shows anything but we're a toy. I would be shocked, frankly, if there's an MSSP, and, of course, we don't see ourself as an MSSP, but I'd be shocked if any of them operate a platform at the scale that ours operates. >> Okay, so wow. A lot I want to unpack there. So just to follow up on that last question, you don't see yourself as an MSSP because why, you see yourselves as a technology platform? >> Yes, I mean, the vast, vast, vast majority of what we deliver is our own technology. So we integrate with third-party solutions mostly to bring in that telemetry. So we've built our own platform from the ground up. We have our own threat intelligence, our own detection logic. We do have our own agents and network sensors. MSSP is typically cobbling together other tools, third party off-the-shelf tools to run their SOC. Ours is all homegrown technology. So I have a whole group called Arctic Wolf Labs, is building, just cranking out ML-based detections, building out infrastructure to take feeds in from a variety of different sources. We have a full integration kind of effort where we integrate into other third parties. So when we go into a customer, we can leverage whatever they have, but at the same time, we produce some tech that if they're lacking in a certain area, we can provide that tech, particularly around things like endpoint agents and network sensors and the like. >> What about like identity, doing your own identity? >> So we don't do our own identity, but we take feeds in from things like Okta and Active Directory and the like, and we have detection logic built on top of that. So part of our value add is we were XDR before XDR was the cool thing to talk about, meaning we can look across multiple attack surfaces and come to a security conclusion where most EDR vendors started with looking just at the endpoint, right? And then they called themselves XDR because now they took in a network feed, but they still looked at it as a separate network detection. We actually look at the things across multiple attack surfaces and stitch 'em together to look at that from a security perspective. In some cases we have automatic detections that will fire. In other cases, we can surface some to a security professional who can go start pulling on that thread. >> So you don't need to purchase CrowdStrike software and integrate it. You have your own equivalent essentially. >> Well, we'll take a feed from the CrowdStrike endpoint into our platform. We don't have to rely on their detections and their alerts, and things of that nature. Now obviously anything they discover we pull in as well, it's just additional context, but we have all our own tech behind it. So we operate kind of at an MSSP scale. We have a similar value proposition in the sense that we'll use whatever the customer has, but once that data kind of comes into our pipeline, it's all our own homegrown tech from there. >> But I mean, what I like about the MSSP piece of your business is it's very high touch. It's very intimate. What I like about what you're saying is that it's software-like economics, so software, software-like part of it. >> That's what makes us the unicorn, right? Is we do have, our concierges is very hands-on. We continue to drive automation that makes our concierge security professionals more efficient, but we always want that customer to have that concierge person as, is almost an extension to their security team, or in some cases, for companies that don't even have a security team, as their security team. As we go down the path, as I mentioned, one of the things we want to be able to do is start to have a more flexible model where we can have that high touch if you want it. We can have the high touch on certain occasions, and you can do stuff. We can have low touch, like we can span the spectrum, but we never want to lose our kind of unique value proposition around the concierge, but we also want to make sure that we're providing an interface that any customer would want to use. >> So given that sort of software-like economics, I mean, services companies need this too, but especially in software, things like net revenue retention and churn are super important. How are those metrics looking? What can you share with me there? >> Yeah, I mean, again, we don't share those metrics publicly, but all's I can continue to repeat is, if you looked at all of our financial metrics, I think you would clearly put us in the unicorn category. I think very few companies are going to have the level of growth that we have on the amount of ARR that we have with the net revenue retention and the churn and upsell. All those aspects continue to be very, very strong for us. >> I want to go back to the sort of enterprise conversation. So large enterprises would engage with you as a complement to their existing SOC, correct? Is that a fair statement or not necessarily? >> It's in some cases. In some cases, they're looking to not have a SOC. So we run into a lot of cases where they want to replace their SIEM, and they want a solution like Arctic Wolf to do that. And so there's a poll, I can't remember, I think it was Forrester, IDC, one of them did it a couple years ago, and they found out that 70% of large enterprises do not want to build the SOC, and it's not 'cause they don't need one, it's 'cause they can't afford it, they can't staff it, they don't have the expertise. And you think about if you're a tech company or a bank, or something like that, of course you can do it, but if you're an international plumbing distributor, you're not going to (chuckles), someone's not going to graduate from Stanford with a cybersecurity degree and go, "Cool, I want to go work for a plumbing distributor in their SOC," right? So they're going to have trouble kind of bringing in the right talent, and as a result, it's difficult to go make a multimillion-dollar investment into a SOC if you're not going to get the quality people to operate it, so they turn to companies like us. >> Got it, so, okay, so you're talking earlier about capabilities that large enterprises require that there might be some gaps, you might lack some features. A couple questions there. One is, when you do some of those, I inferred some of that is integrations. Are those integrations sort of one-off snowflakes or are you finding that you're able to scale those across the large enterprises? That's my first question. >> Yeah, so most of the integrations are pretty straightforward. I think where we run into things that are kind of enterprise-centric, they definitely want open APIs, they want access to our platform, which we don't do today, which we are going to be doing, but we don't do that yet today. They want to do more of a SIEM replacement. So we're really kind of what we call an open XDR platform, so there's things that we would need to build to kind of do raw log ingestion. I mean, we do this today. We have raw log ingestion, we have log storage, we have log searching, but there's like some of the compliance scenarios that they need out of their SIEM. We don't do those today. And so that's kind of holding them back from getting off their SIEM and going fully onto a solution like ours. Then the other one is kind of the level of customization, so the ability to create a whole bunch of custom rules, and that ties back to, "I want to get off my SIEM. I've built all these custom rules in my SIEM, and it's great that you guys do all this automatic AI stuff in the background, but I need these very specific things to be executed on." And so trying to build an interface for them to be able to do that and then also simulate it, again, because, no matter how big they are running their SIEM and their SOC... Like, we talked to one of the largest financial institutions in the world. As far as we were told, they have the largest individual company SOC in the world, and we operate almost 15 times their size. So we always have to be careful because this is a cloud-based native platform, but someone creates some rule that then just craters the performance of the whole platform, so we have to build kind of those guardrails around it. So those are the things primarily that the large enterprises are asking for. Most of those issues are not holding them back from coming. They want to know they're coming, and we're working on all of those. >> Cool, and see, just aside, I was talking to CISO the other day, said, "If it weren't for my compliance and audit group, I would chuck my SIEM." I mean, everybody wants to get rid of their SIEM. >> I've never met anyone who likes their SIEM. >> Do you feel like you've achieved product market fit in the larger enterprise or is that still something that you're sorting out? >> So I think we know, like, we're on a path to do that. We're on a provable path to do that, so I don't think there's any surprises left. I think everything that we know we need to do for that is someone's writing code for it today. It's just a matter of getting it through the system and getting into production. So I feel pretty good about it. I think that's why we are seeing such a high growth rate in our large enterprise business, 'cause we share that feedback with some of those key customers. We have a Customer Advisory Board that we share a lot of this information with. So yeah, I mean, I feel pretty good about what we need to do. We're certainly operate at large enterprise scales, so taking in the amount of the volume of data they're going to have and the types of integrations they need. We're comfortable with that. It's just more or less the interfaces that a large enterprise would want that some of the smaller companies don't ask for. >> Do you have enough tenure in the market to get a sense as to stickiness or even indicators that will lead toward retention? Have you been at it long enough in the enterprise or you still, again, figuring that out? >> Yeah, no, I think we've been at it long enough, and our retention rates are extremely high. If anything, kind of our net retention rates, well over 100% 'cause we have opportunities to upsell into new modules and expanding the coverage of what they have today. I think the areas that if you cornered enterprise that use us and things they would complain about are things I just told you about, right? There's still some things I want to do in my Splunk, and I need an API to pull my data out and put it in my Splunk and stuff like that, and those are the things we want to enable. >> Yeah, so I can't wait till you guys go public because you got Snowflake up here, and you got Veritas down here, and I'm very curious as to where you guys go. When's the IPO? You want to tell me that? (chuckling) >> Unfortunately, it's not up to us right now. You got to get the markets- >> Yeah, I hear you. Right, if the market were better. Well, if the market were better, you think you'd be out? >> Yeah, I mean, we'd certainly be a viable candidate to go. >> Yeah, there you go. I have a question for you because I don't have a SOC. I run a small business with my co-CEO. We're like 30, 40 people W-2s, we got another 50 or so contractors, and I'm always like have one eye, sleep with one eye open 'cause of security. What is your ideal SMB customer? Think S. >> Yeah. >> Would I fit? >> Yeah, I mean you're you're right in the sweet spot. I think where the company started and where we still have a lot of value proposition, which is companies like, like you said it, you sleep with one eye open, but you don't have necessarily the technical acumen to be able to do that security for yourself, and that's where we fit in. We bring kind of this whole security, we call it Security Operations Cloud, to bear, and we have some of the best professionals in the world who can basically be your SOC for less than it would cost you to hire somebody right out of college to do IT stuff. And so the value proposition's there. You're going to get the best of the best, providing you a kind of a security service that you couldn't possibly build on your own, and that way you can go to bed at night and close both eyes. >> So (chuckling) I'm sure something else would keep me up. But so in thinking about that, our Amazon bill keeps growing and growing and growing. What would it, and I presume I can engage with you on a monthly basis, right? As a consumption model, or how's the pricing work? >> Yeah, so there's two models that we have. So typically the kind of the monthly billing type of models would be through one of our MSP partners, where they have monthly billing capabilities. Usually direct with us is more of a longer term deal, could be one, two, or three, or it's up to the customer. And so we have both of those engagement models. Were doing more and more and more through MSPs today because of that model you just described, and they do kind of target the very S in the SMB as well. >> I mean, rough numbers, even ranges. If I wanted to go with the MSP monthly, I mean, what would a small company like mine be looking at a month? >> Honestly, I do not even know the answer to that. >> We're not talking hundreds of thousands of dollars a month? >> No. God, no. God, no. No, no, no. >> I mean, order of magnitude, we're talking thousands, tens of thousands? >> Thousands, on a monthly basis. Yeah. >> Yeah, yeah. Thousands per month. So if I were to budget between 20 and $50,000 a year, I'm definitely within the envelope. Is that fair? I mean, I'm giving a wide range >> That's fair. just to try to make- >> No, that's fair. >> And if I wanted to go direct with you, I would be signing up for a longer term agreement, correct, like I do with Salesforce? >> Yeah, yeah, a year. A year would, I think, be the minimum for that, and, yeah, I think the budget you set aside is kind of right in the sweet spot there. >> Yeah, I'm interested, I'm going to... Have a sales guy call me (chuckles) somehow. >> All right, will do. >> No, I'm serious. I want to start >> I will. >> investigating these things because we sell to very large organizations. I mean, name a tech company. That's our client base, except for Arctic Wolf. We should talk about that. And increasingly they're paranoid about data protection agreements, how you're protecting your data, our data. We write a lot of software and deliver it as part of our services, so it's something that's increasingly important. It's certainly a board level discussion and beyond, and most large organizations and small companies oftentimes don't think about it or try not to. They just put their head in the sand and, "We don't want to be doing that," so. >> Yeah, I will definitely have someone get in touch with you. >> Cool. Let's see. Anything else you can tell me on the product side? Are there things that you're doing that we talked about, the gaps at the high end that you're, some of the features that you're building in, which was super helpful. Anything in the SMB space that you want to share? >> Yeah, I think the biggest thing that we're doing technically now is really trying to drive more and more automation and efficiency through our operations, and that comes through really kind of a generous use of AI. So building models around more efficient detections based upon signal, but also automating the actions of our operators so we can start to learn through the interface. When they do A and B, they always do C. Well, let's just do C for them, stuff like that. Then also building more automation as far as the response back to third-party solutions as well so we can remediate more directly on third-party products without having to get into the consoles or having our customers do it. So that's really just trying to drive efficiency in the system, and that helps provide better security outcomes but also has a big impact on our margins as well. >> I know you got to go, but I want to show you something real quick. I have data. I do a weekly program called "Breaking Analysis," and I have a partner called ETR, Enterprise Technology Research, and they have a platform. I don't know if you can see this. They have a survey platform, and each quarter, they do a survey of about 1,500 IT decision makers. They also have a survey on, they call ETS, Emerging Technology Survey. So it's private companies. And I don't want to go into it too much, but this is a sentiment graph. This is net sentiment. >> Just so you know, all I see is a white- >> Yeah, just a white bar. >> Oh, that's weird. Oh, whiteboard. Oh, here we go. How about that? >> There you go. >> Yeah, so this is a sentiment graph. So this is net sentiment and this is mindshare. And if I go to Arctic Wolf... So it's typical security, right? The 8,000 companies. And when I go here, what impresses me about this is you got a decent mindshare, that's this axis, but you've also got an N in the survey. It's about 1,500 in the survey, It's 479 Arctic Wolf customers responded to this. 57% don't know you. Oh, sorry, they're aware of you, but no plan to evaluate; 19% plan to evaluate, 7% are evaluating; 11%, no plan to utilize even though they've evaluated you; and 1% say they've evaluated you and plan to utilize. It's a small percentage, but actually it's not bad in the random sample of the world about that. And so obviously you want to get that number up, but this is a really impressive position right here that I wanted to just share with you. I do a lot of analysis weekly, and this is a really, it's completely independent survey, and you're sort of separating from the pack, as you can see. So kind of- >> Well, it's good to see that. And I think that just is a further indicator of what I was telling you. We continue to have a strong financial performance. >> Yeah, in a good market. Okay, well, thanks you guys. And hey, if I can get this recording, Hannah, I may even figure out how to write it up. (chuckles) That would be super helpful. >> Yes. We'll get that up. >> And David or Hannah, if you can send me David's contact info so I can get a salesperson in touch with him. (Hannah chuckling) >> Yeah, great. >> Yeah, we'll work on that as well. Thanks so much for both your time. >> Thanks a lot. It was great talking with you. >> Thanks, you guys. Great to meet you. >> Thank you. >> Bye. >> Bye.

>> Hello everyone. Welcome to theCUBEs coverage of Compute Engineered for your Hybrid World sponsored by HPE and Intel. Today we're going to dive into advanced performance of VDI with the fourth gen Intel Zion scalable processors. Hello I'm John Furrier, the host of theCUBE. My guests today are Alan Chu, Director of Data Center Performance and Competition for Intel as well as Denis Kondakov who's the VDI product manager at HPE, and also joining us is Cynthia Sustiva, CAD/CAM product manager at HPE. Thanks for coming on, really appreciate you guys taking the time. >> Thank you. >> So accelerating VDI to the Edge. That's the topic of this topic here today. Let's get into it, Dennis, tell us about the new HPE ProLiant DL321 Gen 11 server. >> Okay, absolutely. Hello everybody. So HP ProLiant DL320 Gen 11 server is the new age center CCO and density optimized compact server, compact form factor server. It enables to modernize and power at the next generation of workloads in the diverse rec environment at the Edge in an industry standard designed with flexible scale for advanced graphics and compute. So it is one unit, one processor rec optimized server that can be deployed in the enterprise data center as well as at the remote office at end age. >> Cynthia HPE has announced another server, the ProLiant ML350. What can you tell us about that? >> Yeah, so the HPE ProLiant ML350 Gen 11 server is a powerful tower solution for a wide range of workloads. It is ideal for remote office compute with NextGen performance and expandability with two processors in tower form factor. This enables the server to be used not only in the data center environment, but also in the open office space as a powerful workstation use case. >> Dennis mentioned both servers are empowered by the fourth gen Intel Zion scale of process. Can you talk about the relationship between Intel HPE to get this done? How do you guys come together, what's behind the scenes? Share as much as you can. >> Yeah, thanks a lot John. So without a doubt it takes a lot to put all this together and I think the partnership that HPE and Intel bring together is a little bit of a critical point for us to be able to deliver to our customers. And I'm really thrilled to say that these leading Edge solutions that Dennis and Cynthia just talked about, they're built on the foundation of our fourth Gen Z on scalable platform that's trying to meet a wide variety of deployments for today and into the future. So I think the key point of it is we're together trying to drive leading performance with built-in acceleration and in order to deliver a lot of the business values to our customers, both HP and Intels, look to scale, drive down costs and deliver new services. >> You got the fourth Gen Z on, you got the Gen 11 and multiple ProLiants, a lot of action going on. Again, I love when these next gens come out. Can each of you guys comment and share what are the use cases for each of the systems? Because I think what we're looking at here is the next level innovation. What are some of the use cases on the systems? >> Yeah, so for the ML350, in the modern world where more and more data are generated at the Edge, we need to deploy computer infrastructure where the data is generated. So smaller form factor service will satisfy the requirements of S&B customers or remote and branch offices to deliver required performance redundancy where we're needed. This type of locations can be lacking dedicated facilities with strict humidity, temperature and noise isolation control. The server, the ML350 Gen 11 can be used as a powerful workstation sitting under a desk in the office or open space as well as the server for visualized workloads. It is a productivity workhorse with the ability to scale and adapt to any environment. One of the use cases can be for hosting digital workplace for manufacturing CAD/CAM engineering or oil and gas customers industry. So this server can be used as a high end bare metal workstation for local end users or it can be virtualized desktop solution environments for local and remote users. And talk about the DL320 Gen 11, I will pass it on to Dennis. >> Okay. >> Sure. So when we are talking about age of location we are talking about very specific requirements. So we need to provide solution building blocks that will empower and performance efficient, secure available for scaling up and down in a smaller increments than compared to the enterprise data center and of course redundant. So DL 320 Gen 11 server is the perfect server to satisfy all of those requirements. So for example, S&B customers can build a video solution, for example starting with just two HP ProLiant TL320 Gen 11 servers that will provide sufficient performance for high density video solution and at the same time be redundant and enable it for scaling up as required. So for VGI use cases it can be used for high density general VDI without GP acceleration or for a high performance VDI with virtual VGPU. So thanks to the modern modular architecture that is used on the server, it can be tailored for GPU or high density storage deployment with software defined compute and storage environment and to provide greater details on your Intel view I'm going to pass to Alan. >> Thanks a lot Dennis and I loved how you're both seeing the importance of how we scale and the applicability of the use cases of both the ML350 and DL320 solutions. So scalability is certainly a key tenant towards how we're delivering Intel's Zion scalable platform. It is called Zion scalable after all. And we know that deployments are happening in all different sorts of environments. And I think Cynthia you talked a little bit about kind of a environmental factors that go into how we're designing and I think a lot of people think of a traditional data center with all the bells and whistles and cooling technology where it sometimes might just be a dusty closet in the Edge. So we're defining fortunes you see on scalable to kind of tackle all those different environments and keep that in mind. Our SKUs range from low to high power, general purpose to segment optimize. We're supporting long life use cases so that all goes into account in delivering value to our customers. A lot of the latency sensitive nature of these Edge deployments also benefit greatly from monolithic architectures. And with our latest CPUs we do maintain quite a bit of that with many of our SKUs and delivering higher frequencies along with those SKUs optimized for those specific workloads in networking. So in the end we're looking to drive scalability. We're looking to drive value in a lot of our end users most important KPIs, whether it's latency throughput or efficiency and 4th Gen Z on scalable is looking to deliver that with 60 cores up to 60 cores, the most builtin accelerators of any CPUs in the market. And really the true technology transitions of the platform with DDR5, PCIE, Gen five and CXL. >> Love the scalability story, love the performance. We're going to take a break. Thanks Cynthia, Dennis. Now we're going to come back on our next segment after a quick break to discuss the performance and the benefits of the fourth Gen Intel Zion Scalable. You're watching theCUBE, the leader in high tech coverage, be right back. Welcome back around. We're continuing theCUBE's coverage of compute engineer for your hybrid world. I'm John Furrier, I'm joined by Alan Chu from Intel and Denis Konikoff and Cynthia Sistia from HPE. Welcome back. Cynthia, let's start with you. Can you tell us the benefits of the fourth Gen Intel Zion scale process for the HP Gen 11 server? >> Yeah, so HP ProLiant Gen 11 servers support DDR five memory which delivers increased bandwidth and lower power consumption. There are 32 DDR five dim slots with up to eight terabyte total on ML350 and 16 DDR five dim slots with up to two terabytes total on DL320. So we deliver more memory at a greater bandwidth. Also PCIE 5.0 delivers an increased bandwidth and greater number of lanes. So when we say increased number of lanes we need to remember that each lane delivers more bandwidth than lanes of the previous generation plus. Also a flexible storage configuration on HPDO 320 Gen 11 makes it an ideal server for establishing software defined compute and storage solution at the Edge. When we consider a server for VDI workloads, we need to keep the right balance between the number of cords and CPU frequency in order to deliver the desire environment density and noncompromised user experience. So the new server generation supports a greater number of single wide and global wide GPU use to deliver more graphic accelerated virtual desktops per server unit than ever before. HPE ProLiant ML 350 Gen 11 server supports up to four double wide GPUs or up to eight single wide GPUs. When the signing GPU accelerated solutions the number of GPUs available in the system and consistently the number of BGPUs that can be provisioned for VMs in the binding factor rather than CPU course or memory. So HPE ProLiant Gen 11 servers with Intel fourth generation science scalable processors enable us to deliver more virtual desktops per server than ever before. And with that I will pass it on to Alan to provide more details on the new Gen CPU performance. >> Thanks Cynthia. So you brought up I think a really great point earlier about the importance of achieving the right balance. So between the both of us, Intel and HPE, I'm sure we've heard countless feedback about how we should be optimizing efficiency for our customers and with four Gen Z and scalable in HP ProLiant Gen 11 servers I think we achieved just that with our built-in accelerator. So built-in acceleration delivers not only the revolutionary performance, but enables significant offload from valuable core execution. That offload unlocks a lot of previously unrealized execution efficiency. So for example, with quick assist technology built in, running engine X, TLS encryption to drive 65,000 connections per second we can offload up to 47% of the course that do other work. Accelerating AI inferences with AMX, that's 10X higher performance and we're now unlocking realtime inferencing. It's becoming an element in every workload from the data center to the Edge. And lastly, so with faster and more efficient database performance with RocksDB, we're executing with Intel in-memory analytics accelerator we're able to deliver 2X the performance per watt than prior gen. So I'll say it's that kind of offload that is really going to enable more and more virtualized desktops or users for any given deployment. >> Thanks everyone. We still got a lot more to discuss with Cynthia, Dennis and Allen, but we're going to take a break. Quick break before wrapping things up. You're watching theCUBE, the leader in tech coverage. We'll be right back. Okay, welcome back everyone to theCUBEs coverage of Compute Engineered for your Hybrid World. I'm John Furrier. We'll be wrapping up our discussion on advanced performance of VDI with the fourth gen Intel Zion scalable processers. Welcome back everyone. Dennis, we'll start with you. Let's continue our conversation and turn our attention to security. Obviously security is baked in from day zero as they say. What are some of the new security features or the key security features for the HP ProLiant Gen 11 server? >> Sure, I would like to start with the balance, right? We were talking about performance, we were talking about density, but Alan mentioned about the balance. So what about the security? The security is really important aspect especially if we're talking about solutions deployed at the H. When the security is not active but other aspects of the environment become non-important. And HP is uniquely positioned to deliver the best in class security solution on the market starting with the trusted supply chain and factories and silicon route of trust implemented from the factory. So the new ISO6 supports added protection leveraging SPDM for component authorization and not only enabled for the embedded server management, but also it is integrated with HP GreenLake compute ops manager that enables environment for secure and optimized configuration deployment and even lifecycle management starting from the single server deployed on the Edge and all the way up to the full scale distributed data center. So it brings uncompromised and trusted solution to customers fully protected at all tiers, hardware, firmware, hypervisor, operational system application and data. And the new intel CPUs play an important role in the securing of the platform. So Alan- >> Yeah, thanks. So Intel, I think our zero trust strategy toward security is a really great and a really strong parallel to all the focus that HPE is also bringing to that segment and market. We have even invested in a lot of hardware enabled security technologies like SGX designed to enhance data protection at rest in motion and in use. SGX'S application isolation is the most deployed, researched and battle tested confidential computing technology for the data center market and with the smallest trust boundary of any solution in market. So as we've talked about a little bit about virtualized use cases a lot of virtualized applications rely also on encryption whether bulk or specific ciphers. And this is again an area where we've seen the opportunity for offload to Intel's quick assist technology to encrypt within a single data flow. I think Intel and HP together, we are really providing security at all facets of execution today. >> I love that Software Guard Extension, SGX, also silicon root of trust. We've heard a lot about great stuff. Congratulations, security's very critical as we see more and more. Got to be embedded, got to be completely zero trust. Final question for you guys. Can you share any messages you'd like to share with the audience each of you, what should they walk away from this? What's in it for them? What does all this mean? >> Yeah, so I'll start. Yes, so to wrap it up, HPR Proliant Gen 11 servers are built on four generation science scalable processors to enable high density and extreme performance with high performance CDR five memory and PCI 5.0 plus HP engine engineered and validated workload solutions provide better ROI in any consumption model and prefer by a customer from Edge to Cloud. >> Dennis? >> And yeah, so you are talking about all of the great features that the new generation servers are bringing to our customers, but at the same time, customer IT organization should be ready to enable, configure, support, and fine tune all of these great features for the new server generation. And this is not an obvious task. It requires investments, skills, knowledge and experience. And HP is ready to step up and help customers at any desired skill with the HP Greenlake H2 cloud platform that enables customers for cloud like experience and convenience and the flexibility with the security of the infrastructure deployed in the private data center or in the Edge. So while consuming all of the HP solutions, customer have flexibility to choose the right level of the service delivered from HP GreenLake, starting from hardwares as a service and scale up or down is required to consume the full stack of the hardwares and software as a service with an option to paper use. >> Awesome. Alan, final word. >> Yeah. What should we walk away with? >> Yeah, thanks. So I'd say that we've talked a lot about the systems here in question with HP ProLiant Gen 11 and they're delivering on a lot of the business outcomes that our customers require in order to optimize for operational efficiency or to optimize for just to, well maybe just to enable what they want to do in, with their customers enabling new features, enabling new capabilities. Underpinning all of that is our fourth Gen Zion scalable platform. Whether it's the technology transitions that we're driving with DDR5 PCIA Gen 5 or the raw performance efficiency and scalability of the platform in CPU, I think we're here for our customers in delivering to it. >> That's great stuff. Alan, Dennis, Cynthia, thank you so much for taking the time to do a deep dive in the advanced performance of VDI with the fourth Gen Intel Zion scalable process. And congratulations on Gen 11 ProLiant. You get some great servers there and again next Gen's here. Thanks for taking the time. >> Thank you so much for having us here. >> Okay, this is theCUBEs keeps coverage of Compute Engineered for your Hybrid World sponsored by HP and Intel. I'm John Furrier for theCUBE. Accelerate VDI at the Edge. Thanks for watching.

>>We're back at Supercomputing 22 in Dallas, winding down day four of this conference. I'm Paul Gillan, my co-host Dave Nicholson. We are talking, we've been talking super computing all week and you hear a lot about what's going on in the United States, what's going on in China, Japan. What we haven't talked a lot about is what's going on in Europe and did you know that two of the top five supercomputers in the world are actually from European countries? Well, our guest has a lot to do with that. Florian, bearish, I hope I pronounce that correctly. My German is, German is not. My strength is the operations director for price, ais, S B L. And let's start with that. What is price? >>So, hello and thank you for the invitation. I'm Flon and Price is a partnership for Advanced Computing in Europe. It's a non-profit association with the seat in Brussels in Belgium. And we have 24 members. These are representatives from different European countries dealing with high performance computing in at their place. And we, so far, we provided the resources for our European research communities. But this changed in the last year, this oral HPC joint undertaking who put a lot of funding in high performance computing and co-funded five PET scale and three preis scale systems. And two of the preis scale systems. You mentioned already, this is Lumi and Finland and Leonardo in Bologna in Italy were in the place for and three and four at the top 500 at least. >>So why is it important that Europe be in the top list of supercomputer makers? >>I think Europe needs to keep pace with the rest of the world. And simulation science is a key technology for the society. And we saw this very recently with a pandemic, with a covid. We were able to help the research communities to find very quickly vaccines and to understand how the virus spread around the world. And all this knowledge is important to serve the society. Or another example is climate change. Yeah. With these new systems, we will be able to predict more precise the changes in the future. So the more compute power you have, the better the smaller the grid and there is resolution you can choose and the lower the error will be for the future. So these are, I think with these systems, the big or challenges we face can be addressed. This is the climate change, energy, food supply, security. >>Who are your members? Do they come from businesses? Do they come from research, from government? All of the >>Above. Yeah. Our, our members are public organization, universities, research centers, compute sites as a data centers, but But public institutions. Yeah. And we provide this services for free via peer review process with excellence as the most important criteria to the research community for free. >>So 40 years ago when, when the idea of an eu, and maybe I'm getting the dates a little bit wrong, when it was just an idea and the idea of a common currency. Yes. Reducing friction between, between borders to create a trading zone. Yes. There was a lot of focus there. Fast forward to today, would you say that these efforts in supercomputing, would they be possible if there were not an EU super structure? >>No, I would say this would not be possible in this extent. I think when though, but though European initiatives are, are needed and the European Commission is supporting these initiatives very well. And before praise, for instance 2008, there were research centers and data centers operating high performance computing systems, but they were not talking to each other. So it was isolated praise created community of operation sites and it facilitated the exchange between them and also enabled to align investments and to, to get the most out of the available funding. And also at this time, and still today for one single country in Europe, it's very hard to provide all the different architectures needed for all the different kind of research communities and applications. If you want to, to offer always the latest technologies, though this is really hardly possible. So with this joint action and opening the resources for other research groups from other countries, you, we, we were able to, yeah, get access to the latest technology for different communities at any given time though. And >>So, so the fact that the two systems that you mentioned are physically located in Finland and in Italy, if you were to walk into one of those facilities and meet the people that are there, they're not just fins in Finland and Italians in Italy. Yeah. This is, this is very much a European effort. So this, this is true. So, so in this, in that sense, the geography is sort of abstracted. Yeah. And the issues of sovereignty that make might take place in in the private sector don't exist or are there, are there issues with, can any, what are the requirements for a researcher to have access to a system in Finland versus a system in Italy? If you've got a EU passport, Hmm. Are you good to go? >>I think you are good to go though. But EU passport, it's now it becomes complicated and political. It's, it's very much, if we talk about the recent systems, well first, let me start a praise. Praise was inclusive and there was no any constraints as even we had users from US, Australia, we wanted just to support excellence in science. And we did not look at the nationality of the organization, of the PI and and so on. There were quotas, but these quotas were very generously interpreted. So, and if so, now with our HPC joint undertaking, it's a question from what European funds, these systems were procured and if a country or being country are associated to this funding, the researchers also have access to these systems. And this addresses basically UK and and Switzerland, which are not in the European Union, but they were as created to the Horizon 2020 research framework. And though they could can access the systems now available, Lumi and Leono and the Petascale system as well. How this will develop in the future, I don't know. It depends to which research framework they will be associated or not. >>What are the outputs of your work at price? Are they reference designs? Is it actual semiconductor hardware? Is it the research? What do you produce? >>So the, the application we run or the simulation we run cover all different scientific domains. So it's, it's science, it's, but also we have industrial let projects with more application oriented targets. Aerodynamics for instance, for cars or planes or something like this. But also fundamental science like the physical elementary physics particles for instance or climate change, biology, drug design, protein costa, all these >>Things. Can businesses be involved in what you do? Can they purchase your, your research? Do they contribute to their, I'm sure, I'm sure there are many technology firms in Europe that would like to be involved. >>So this involving industry though our calls are open and is, if they want to do open r and d, they are invited to submit also proposals. They will be evaluated and if this is qualifying, they will get the access and they can do their jobs and simulations. It's a little bit more tricky if it's in production, if they use these resources for their business and do not publish the results. They are some, well, probably more sites who, who are able to deal with these requests. Some are more dominant than others, but this is on a smaller scale, definitely. Yeah. >>What does the future hold? Are you planning to, are there other countries who will be joining the effort, other institutions? Do you plan to expand your, your scope >>Well, or I think or HPC joint undertaking with 36 member states is quite, covers already even more than Europe. And yeah, clearly if, if there are other states interest interested to join that there is no limitation. Although the focus lies on European area and on union. >>When, when you interact with colleagues from North America, do you, do you feel that there is a sort of European flavor to supercomputing that is different or are we so globally entwined? No. >>So research is not national, it's not European, it's international. This is also clearly very clear and I can, so we have a longstanding collaboration with our US colleagues and also with Chap and South Africa and Canada. And when Covid hit the world, we were able within two weeks to establish regular seminars inviting US and European colleagues to talk to to other, to each other and exchange the results and find new collaboration and to boost the research activities. So, and I have other examples as well. So when we, we already did the joint calls US exceed and in Europe praise and it was a very interesting experience. So we received applications from different communities and we decided that we will review this on our side, on European, with European experts and US did it in US with their experts. And you can guess what the result was at the meeting when we compared our results, it was matching one by one. It was exactly the same. Recite >>That it, it's, it's refreshing to hear a story of global collaboration. Yeah. Where people are getting along and making meaningful progress. >>I have to mention you, I have to to point out, you did not mention China as a country you were collaborating with. Is that by, is that intentional? >>Well, with China, definitely we have less links and collaborations also. It's also existing. There, there was initiative to look at the development of the technologies and the group meet on a regular basis. And there, there also Chinese colleagues involved. It's on a lower level, >>Yes, but is is the con conversations are occurring. We're out of time. Florian be operations director of price, European Super Computing collaborative. Thank you so much for being with us. I'm always impressed when people come on the cube and submit to an interview in a language that is not their first language. Yeah, >>Absolutely. >>Brave to do that. Yeah. Thank you. You're welcome. Thank you. We'll be right back after this break from Supercomputing 22 in Dallas.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in Came along with its ecosystem partners. >>Hey, welcome back to the Cube. Lisa Martin at AWS Reinvent in Vegas. Very busy. Sands Expo Center. Pleased to be joined by my co host this afternoon. Justin Warren, founder and chief analyst at Pivot nine. Justin, we're hosting together again. We are. >>It's great to be >>here. It's great to have you that. So. Justin Meyer, please welcome a couple of our cue ball. Um, back to the program. A couple guys from nut up. We have Anthony Lie, the S B, P and G m of the Cloud business unit. Welcome back at the >>very much great to be here >>and color coordinating with Anthony's Jandi Stephenson, Chief Technology officer and GPS Cloud. Welcome back. >>Thank you. Thank you >>very shortly. Dress, guys and very >>thank you. Thank you. It's, uh, the good news Is that their suits anymore. So we're not going to have to wear ties >>comfortable guys net up a w s this event even bigger than last year, which I can't even believe that 65,000 or so thugs. But, Anthony, let's start with you. Talk to us about what's new with the net up AWS partnership a little bit about the evolution of it. >>Yeah. I mean, you know, we started on AWS. Oh, my gosh. Must be almost five or six years ago now and we made a conscious effort to port are operating system to AWS, which was no small task on dhe. It's taken us a few years, but we're really starting to hit our stride Now. We've been very successful, were on boarding customers on an ever increasing rate. We've added more. Service is on. We just continue to love the cloud as a platform for development. We can go so fast, and we can do things in in an environment like aws that, frankly, you just couldn't do on premise, you know, they're they're complexity and EJ ineighty of on premise was always a challenge. The cloud for us is an amazing platform where we can go very, very fast >>and from a customer demand standpoint. Don't talk to me about that, Chief technologist. One of the thing interesting things that that Andy Jassy shared yesterday was that surprised me. 97% of I t spend is still on from So we know that regardless of the M word, multi cloud work customers are living in that multi cloud world. Whether it's by strategy, a lot of it's not. A lot of it's inherited right, but they have to have that choice, right? It's gonna depend on the data, the workload, etcetera. What can you tell us about when you're talking with customers? What what? How are they driving NetApp evolution of its partnership with public provider AWS? >>So actually, I don't know if it's the desired state to be running in a hybrid, mostly cloud fashion, but it's it's It's driven by strategy, and it's usually driven by specific workloads and on the finding the best home for your application or for your workers at any given time. Because it's it's ultimately unrealistic for on premise customers to try to compete with like a machine and keep learning algorithms and the rate of development and rate off basically evolution in the cloud. So you always have to be there to be able to stay competitive, so it's becoming a part of the strategy even though it was probably asked that developers that drove a lot off cloud adoption to begin with. Maybe, maybe not. Not in favor of the c i o r. You have, like a lot of Cloud Cloud sprawling, but there's no longer sprawling it. It's part of the strategy before every company in my way >>heard from any Jesse in the keynote yesterday about the transformation being an important thing. And he also highlighted a lot of enterprise. Nedda has a long history with enterprise, Yes, very solid reputation with enterprise. So it feels to me like this This is an enterprise show. Now that the enterprise has really arrived at with the cloud, what are you seeing from the customers that you've already had for a long time? No, no, no, I'm familiar with it. Trust Net up. We're now exploring the Clouded and doing more than just dipping their toe in the water. What are they actually doing with the cloud and and we'll get up together, you know, >>we see and no one ever growing list of workload. I think when people make decisions in the cloud, they're not making those traditional horizontal decisions anymore. They're making workload by workload by workload decisions and Internet EPPS history and I think, uh, performance on premises, given customers peace of mind now in the cloud, they sort of know that what's been highly reliable, highly scaleable for them on premise, they can now have that same confidence in the cloud. So way started. Like just like Amazon. We started off seeing secondary workloads like D r Back Up Dev ops, but now is seeing big primaries go A s, a p big database workloads, e commerce. Ah, lot of HBC high forming compute. We're doing very well in oil and gas in the pharmaceutical industries where file has been really lacking on the public cloud. I think we leaned in as a company years ago and put put, put a concerted effort to make it there. And I think now the workloads a confident that were there and we can give them the throughput. We give them the performance on the protocols and now we're seeing big, big workloads come over to the public clouds. >>And he did make a big deal about transformation being important. And a lot of that was around the operational model. Let's let's just the pure technology. But what about the operating model? How are you seeing Enterprises Transformer? There's a lot of traditionally just taken a workload, do a bit of lift and shift and put it to the cloud. Where are they now transforming the way they actually operate? Things because of >>cloud? Absolutely. I mean, they have to They have to adopt the new technologies and new ways of doing business. So I mean, I think they are actually celebrating that to answer point. I think this is not a partnership and we're partnering with. We have a very unique story. We're partnering with all of them and have really deep engineering relationship with all of them. And they are now able to go after enterprise type workloads that they haven't been gone. I've been able to go after before, so that's why it's such a strategic strategic relationship that we have with all of them. That sort of brings in in the freedom of choice. You can basically go everywhere anywhere. That, in my opinion, is that true hyper cloud story lot has always been really difficult. But with the data management capabilities of not top, it's really easy to move my greater replicate across on premise toe are hyper scaler off choice. >>I mean, I think you know, if you're in enterprise right now, you know you're a CEO. You're probably scared to death of, like, being uber, you know exactly on. Uh, you know, if you're you know, So speed has now become what we say. The new scale they used to be scaled is your advantage. And now, if you're not fast, you could be killed any day by some of these startups who just build a mobile app. And all of a sudden they've gotten between you and the customer and you've lost. And I think CEOs are now. How fast are we going? How many application developers do we have? And did a scientist do we have? And because of that, that they're seeing Amazon as a platform for speed on. So that's just that paranoia. I think digital transformation is driving everybody to the cloud. >>You're right. If we look at transformation if a business and Andy Jassy and John for your talked about this and that exclusive interview that they did the other day. And Andy, if you're and a legacy enterprise and you're looking at your existing market share segment exactly, and you're not thinking there's somebody else. What assisting on there on the side mirror? Objects in mirror are closer. Not getting ready for that. You're on the wrong. You're going to be on the wrong side of that equation. But if we look at cloud, it has had an impact on traditional story one of naps. Taglines is data driven. If we look at transformation and if we'll even look at the translation of cloud in and of itself, data is at the heart of everything. Yes, and they talk to us about net APS transformation as cloud is something that you're enabling on prime hybrid multi cloud as you talked about. But how is your advantage allowing customers to not only be data driven, but to find value in that data that gives them that differentiation that they need for the guy or a girl that's right behind them. I already did take over. >>Well, I think if you're you know, if you're an enterprise, you know, the one asset you have is data. You have history now >>a liability Now with an asset. >>Can they can they do anything with it. Do they know where it is? Do they know how to use it where it should be, you know, Is it secured? Is it protected all of those things? It's very hard for enterprise to answer those questions. What one end up, I think it's done incredibly well, is by leaning in as much as we did onto AWS way. Give our customers the absolute choice to leave our on premise business and a lot of people, I think years ago thought we were crazy. But because now we've expanded our footprint to allow customers to run anywhere without any fear of lock in, people will start to see us now not as a storage vendor but as a strategic partner, and that that that strategic partnership is really has really come about because of our willingness to let people move the data and manage the data wherever they needed to be. On that something our customers have said, you know, used to be a storage vendor on along with the other storage vendors and now all of a sudden that we're having conversations with you about strategy where the data should be, you know who's using it is. It's secured all of those kinds of conversations we're having with customers. >>You mentioned moving data, and that was something that again came up in the keynote yesterday. And he mentioned that Hey, maybe instead of taking the data to the computer, we should bring the computer's data. That's something that Ned Abbas has long actually talked about. I remember when you used to mention data fabric was something about We want to take your data and then make it available to where the computer is. I'd like you to talk it through that, particularly in light of like a I and ML, which is on the tip of everybody's tongue. It's It's a bit of I think, it's possibly reaching the peak of the hype cycle at the moment s o what our customers actually doing with their data to actually analyze it? Are they actually seeing real value from machine learning? And I are We still isn't just kicking the tires on that. >>I mean, the biggest problem with deep learning and machine learning is having our accumulating enough on being able to have the data or lessening that gravity by being able to move it then you can take advantage off states maker in AWS, the big Cleary and Google, whatever fits your needs. And then, if you want to store the results back on premise, that's what we enable. With it out of harbor having that free flowing work clothes migration has to count for data. It's not enough to just move your application that that that's the key for machine learning and thought the lakes and others, >>absolutely in terms of speed. Anthony mentioned that that's the new scale. How is flash changing the game >>with perspective, you know, flashes a media type, but it's just, you know, the prices have come down now that you know the price performance couple flashes an obvious thing. Um, and a lot of people are, I think now, making on premise decisions to get rid of spinning disc and replaced with Flash because the R. O. I is so good. Tco the meantime between failures, that's that's so many advantages that percent workloads. It's a better decision, of course. You know, AWS provides a whole bunch of media Onda again. It's just you like a kid in a candy store, you know, as a developer, you look at Amazon. You're like, Oh, my God. Back in the day, we had to make, like, an Oracle decision and everything was Oracle. And now you can just move things around and you can take advantage of all sorts of different utilities. And now you piece together an application very differently. And so you're able to sort of really think I think Dion sees point. People are telling us they have to have a date, a strategy, and then, based on the data strategy, they will then leverage the right storage with the right protocols. They'll then bring that to compute whatever compute is necessary. I think data science is, you know, a little fashion, you know, conscious. Right now, you know, everybody wants to say how many did a scientist they have on their teams? They're looking for needles in haystacks. Someone, they're finding them. Some of them are but not doing it, I think it is. Makes companies very, very nervous. So they're going the results, gonna trying as hard as they can to leverage that technology. >>And you'll see where is that data strategy conversation happening if we think about the four essentials that Andy Johnson talked about yesterday for transformation in one of the first things he said was, it has to be topped at senior level decision. Then it's going to be aggressively pushed down through the organization. Are you seeing this data strategy at the CEO level yet? >>Yeah, we are. But I'm also seeing it much lower. I mean, with the data engineers with the developers, because it's asked, is it is extremely important to be developing on top off production data, specifically if you're doing machine and deep learning. So I think it's both. I think the decision authority has actually moved lower in the company where the developers are the side reliability engineers are actually choosing more technology to use. That fits the product that they are actually creating off course. The strategy happens at the tall, but the influencer and the decision makers, in my opinion, has been moving lower and within the organization. So I'm basically contradicting what yes is a. But to me that is also important. The days off a C t o r C E o. Forcing a specific platform or strategy on to developers. Those days are hopefully gone. >>I think if you're a CEO and you know of any company in any industry you have to be a tech company, you know, it used to be a tech industry, and now every company in the world is now tech. Everyone's building APS. Everyone's using data. Everybody's, you know, trying to figure out machine learning. And so I think what's happening is CEOs are are increasingly becoming technically literate. They have to Exactly. They're dead if they're not. I mean, you know whether your insurance company, your primary platform, is now digital if you're a medical company or primary platform additional. So I think that's a great stat. I saw that about two and 1/2 years ago. The number of software engineering jobs in non tech surpassed the number of jobs in tech, so we used to have our little industry and all the software engineers came to work for tech companies. Now there are more jobs outside the tech segment for engineers, and there are in the text >>well, and you brought up uber a minute ago and I think of a couple of companies examples in my last question for you is real. Rapid is about industries. You look at uber for example, what the fact that the taxi cab companies were transitional. And we're really eager to, you know, AP, if I their organizations, and meet the consumer demand. And then you look at Airbnb and how that's revolutionized hospitality or pellet on how it's revolutionized. Fitness Last question, Jonesy, Let's go for you. Looking at all of the transformation that cloud has enabled and can enable what industry you mentioned when the gas. But is there any industry that you see right now that is just at the tipping point to be ableto blow the door wide open if they transform successfully? >>Well, I mean way are working with a lot off pharma companies and genome sequencing companies that have not actually working with sensitive data on if those companies, I mean, these are people's medical histories and everything, so we're seeing them moving now in close into the cloud so those companies can move to the cloud. Anybody can move to the cloud. You mean these sort of compliancy scaremongering? You cannot move to the cloud because of P. C. I or hip power. Those days are over because aws, Microsoft and Google, that's the first thing they do they have? Ah, stricter compliancy than most on premise Homemade tartar sentence. So I see. I see that industry really moving into the cloud. Now >>who knows what a ws re invent 2020 will look like Gentlemen I wish we had more time, but thank you. Both Young and Anthony were talking with Justin and me today sharing what's new with netapp. What? You guys are enabling customers. D'oh! In multiple. Same old way. We appreciate your time where my car is. Justin Warren, I'm Lisa Martin. You're watching the Cube from AWS or reinvent 19 from Vegas. Thanks for watching.

>> Live from Miami Beach, Florida, it's theCUBE covering VeeamON 2019. Brought to you by Veeam. >> Welcome back to Miami, everybody. I think I just saw Don Johnson running by. This is Dave Vellante with Peter Burris. You're watching theCUBE, the leader in live tech coverage. We're here at VeeamON 2019. This is day one of our wall-to-wall coverage. Ian McClarty is here. He's the president of PhoenixNAP, Ian thanks for coming on theCUBE. >> Thank you. >> So PhoenixNAP, service provider based in the southwest. Tell us more about the company. >> Yeah so we started on the Southwest, hence the name Phoenix, and NAP stands for network access point. So we focus on the connectivity side, on the telecom. But we really have moved more to infrastructure services, and that's been more of a world wide deployment. Last year we did about six global locations that were new to us, so today we're at about on 15 locations. >> So I always ask guys like you, you know, the Cloud was suppose to put you out of business, and then the Cloud has been this huge tail wind. >> Yeah. >> Why, what was it that everybody missed about the cloud and how have you able to exploit it? >> Yeah, so we come from a hosting background. So the Cloud has been around for us forever, right? Before it was termed Cloud, we believed in OpEx model for infrastructure services. That's what the Cloud is. Scalable, easy to absorb. So for us, what the Cloud did was make us mainstream. Because hosting was very boutique back in the day, back in the 90's. Now today we're a very mainstream brand, very mainstream products. So Cloud has really made our lives easier, actually. >> So it opened up everybody's eyes. >> Yeah. >> Sort of ... The guys like Amazon and Azure did a lot of market development for you. >> They did, a lot. And a lot of market development that we ourselves cannot do because we are smaller companies. >> Right. So talk a little bit about what your unique value proposition is, how you guys, you know, compete in the market place. Why PhoenixNAP? >> Why PhoenixNAP? So its really about the suite of infrastructure products. So our spectrum really starts with co-location on one end and it ends to bare metal dedicated Cloud systems. And then in between we have all the virtual station cloud platforms, more standard BMR deployments. So really its about our spectrum of services that we cover and we really are really good at that spectrum of services. So we have developed a lot of depth also around these different offerings. >> And your facilities, as you say you started in the Southwest, but where are you guys located? Are you? ... >> Yeah, so we're, So we own and operate out of Phoenix, Arizona, 120,000 square foot of facility. With the I-T usable space, um, and we have expanded now to other, with other partnerships with taking on large location spaces to basically seed our different locations and put us in point we are building those locations. Ashburn is one we are getting very close with actually. >> Uh-huh. So you're data centered guys right? I mean, you know - >> We're data, We're hosting guys that went into the data center business, and became infrastructure people. >> Okay, so it sort of evolved, this is act 3 for you >> Yes, this is act 3. >> We've been talking about act 2 all day. So how have you evolved your, you skillset, your customer base, talk about the evolution of the, of the company and where you see it going. >> Yeah so I mean, today we're focusing very much on mid-market enterprise, that's where our, and again, how do you define that? We define that by $50 to $500 million in revenue that's out definition of mid-market enterprise. So we're not going after the Fortune 500, and we're not going after S&B. And we have really tapped into the space. It's a very hard space for, for the, for the public clouds to, um, to act in today. >> So what's different? So obviously, the difference between mid and large enterprises is the mid-size guys, they're more generalists, they don't have, you know, all kinds of specialists, they don't have the resources, >> They do not. >> That the large guys do. But they're more advanced than the S. >> Yes. >> S and M are different, >> Yes, they are. >> Than the large. So what are the unique attributes of M that really uh, you try to focus on delivering? >> So M has budget, but M doesn't want to outsource. That's key. They know enough, but they don't have expertise. So what they're looking at, they're looking for supplemental I-T, and really what we focus on. >> So they don't want to outsource their strategic jewel, the family jewels, but they need help. >> They need supplemental help. And they don't want to go to consultants either. >> But M also wants to be L and I think that's the big issue, M wants to be L, typically M wants to be L, So they're looking for, they have budget, they have plans, >> Yeah. >> They want to scale, but they have to be very careful about how they invest to get there. >> And then like to (mumbles) still, they like (mumbles), infrastructure, they want to know you, they want to build a relationship. That's what I'm saying, it's very hard for the public clouds to tap into that space because of that. It had a lot of nuances. >> M wants to scale they want to act like a real business, >> Yes. >> They want, they want to know their suppliers, because they want to know if they're going to be able to go with them. >> (Ian) They want to have control over their suppliers as well. >> Exactly. But come back to that, because that becomes, that becomes more increasingly a services play. >> Yes. >> As M gets more experiences, these medium-size companies get more experience, they are starting to acknowledge and recognize the new classes of services that they need because they have that sophistication. So how is your business changing? And specifically thinking about what Veeam's doing here, to become more of a service-provider, of, at a higher level than just the underlying infrastructure. >> So I'll tell you what we're doing right now. On the surface-side, we're really focusing more on manage-infrastructure, right? That's the moniker we use. But what infrastructure means is really changing. So today we're (mumbles), right? What are we going to do have a managed (mumbles) stack, that is deliverable in an A-P-I model? That's our vision for the company. >> So, um, you're a platinum partner of Veeam, uh, can you talk a little bit about where they fit in your stack? I mean, you've got a whole security layer. >> (IAN) Yep. >> I think you were saying to us earlier that, you know, the data protection piece, the backup is sort of the last-- >> It's a lifeline. >> Resort, yeah. So describe that infrastructure and what you guys have built up. >> Yeah so when we started the company, we started at the edge, right? Plus folks on the (mumbles), those folks on network protection, let's start there, and let's work our way down. And so now then we've built a V-M-R stack that basically is, um, it's third-party audited, it follows compliance rules. When you go to the, um, (mumbles) it works on PCI, when you go to the PCI website you can see PheonixNAP listed as E-S-S provider there, and it abstractly outlines what we protect on the cloud side. So very clear in where we transferred on that side, so it's been layered for us, a layered approach of protecting services. But there will always be a breach, and you have to count on that. It's unfortunate, but it's a reality, right? And once you embrace that, you can build products around that, and so really V-M-R has become a very key part of that equation with both backup and recovery services, and then if there is a breach, then you need to be able to recover those services somewhere, so the (mumbles) recovery services for us is big. So it really fills that missing piece that we had in the equation. >> Yeah I mean you've made that point Peter, many times, is that the breach is inevitable, it's how you repsond to that breach that's really critical. >> Yes. >> And that's, I mean not brand-new thinking, but it's certainly over the last ten years has evolved, you know Peter-- >> (IAN) You've got to embrace it. >> People used to not talk about breaches, oh no, don't talk about it, now it's like at the board level, yeah we acknowledge that it's going to happen, and we're putting more and more resources into our response, is that sort of what you're seeing? >> Yes, that is exactly what I'm seeing. And this year alone fifteen-thousand breaches that were reported right? And again, who reports those breaches? It's not the S, not the M, it's the large enterprise that reports those breaches. So those numbers are even worse in the S and M market right? >> (DAVE) Right, right. >> Although the M guys have, are now getting large enough When-- >> They have to report. >> They have to start reporting. You're coming back to this notion, that, and it used to be that when there was a breach, it was always discussed in terms of hardware, it was discussed in terms of network. >> Yeah. >> But now it's data! >> It is. >> Because that's where the asset is, and that's where people after, >> Exactly. >> So again, coming back to that notion of higher-level services, backup used to be something that you kind of, checked off as you were leaving the customer's location, taken the order, has it become something that's increasingly one of the reasons why customers are bringing you in? >> I will tell you, the easiest way for us to (mumbles) another part where Veeam falls into our equation, is customer acquisition. Like Veeam to me is not the highest revenue, product, period, right? But from a customer acquisition perspective, it's the best product that we have. It's an easy conversation, because it is. Historically it's been a checkbox, but once the customer figures out, "hey, okay so I've got backups, now how do I recover these backups? How do I restore them? Where do I go?" that's where we can have a much more complex conversation with them. >> A lot of these M customers, to become L, are now realizing "I'm not going to get there, if I don't use data in ways that the L guys have hard time using it. So I need to focus on data assets, I need to focus on my digital transformation", which means it's essential that they start thinking about how data protection is going to operate within their business, because increasingly, they're becoming digital businesses. And data protection becomes digital business protection. Are you having those conversations? >> All the time. On day-to-day basis. That's the bulk of our conversations now, for new customer acquisition. >> (DAVE) Why Veeam? >> Yeah. >> You know a lot of companies out there, a lot of new startups entering the marketplace, you've got big wheels like, you know, Dell EMC, and some established companies like Veritas, IBM, you got the big blue blanket, why Veeam? >> Why Veeam for us? Well for us, part of it is culture, right? That was very critical for us. First, the technology piece, obviously solid, works right? The "it does work" moniker that was used, it's true right? And the simplicity of it, too. As a service provider, we know what to expect with Veeam, so we built a lot of competency around Veeam as a product line. Obviously we've played, we've used other products, but we always go back to Veeam. Because, again, it's evolving in a place that we like. We see where they're going for the recovery piece, right? The restoration piece. We like that as a vision piece also, that it's not talked about a lot. It's coming right? It's always the upcoming. But for us it's good to (mumbles) another vendor. The second that comes out, it's a (mumbles) vendor for us. So we like the vision of the company, we like where they're heading, we also like from a corporate culture perspective, what they're doing for channel-centric. For us it helps us mature as an organization tremendously. You know Ratmir hit the nail on the head when he said, "Not the best product wins in the market", right? You have to have, the company that has the best sales and marketing along with that as well. So for us you know, we have pretty decent sales. Marketing we're weaker on, and Veeam has really coached us along the way to make our marketing efforts even stronger. >> Yeah Veeam knows how to market! >> Yeah they do, they are marketing geniuses. And I love them for that, right? And I have a lot of respect towards them for that, so. >> Ian, thanks so much for coming on theCUBE, it was great to have you. >> You as well. >> All right keep it right there everybody, this is Peter Burris and Dave Vellante, we're live at Veeamon 2019 from Miami. You're watching theCUBE, we'll be right back. (poppy electro music)

(techno music) >> Narrator: Live from Chicago, Illinois, its theCUBE. Covering LeMon 2018. Brought to you by VeeAM. >> Welcome back to the windy city everybody. You're watching theCUBE, the leader in live tech coverage. We go out to the events. We track the signal, extract the signal from the noise. My name is Dave Vellante and I'm here with co-host Stu Miniman. This is our second year here at VeeAMON. Hashtag Veeamon, simple enough. Kate Hutchison is here, she's the CMO of VeeAm. >> Yes, thank you very much for having me. Its a pleasure to be here. >> You're very welcome, thanks so much for taking time out of your busy schedule, great show. You've painted the town in green. >> We certainly have. (laughs) >> So VeeAM obviously didn't need your expert help in creating awareness in places like this. >> Kate: Yes. >> And having a persona around around the green team. Awesome. Your background, Riverbed, Polycom, VMware, Citrix, BEA, some rockstar companies. You've got a lot of experience there. Why did you come to Veeam, and why now? >> Yes, so I was attracted to VeeAM for many reasons. We have some, as you know, some stellar attributes as a company. We've been talking about our net promoter score of 73, which is three and half times the industry average. And of course the executive team themselves, and meeting them and really wanting to be a part of that team. So that was a huge reason for me joining, but as it relates to my career and my background and what I thought I could bring to VeeAM. Very much about enterprise marketing. So I've spent about the last 20 years in the industry, as you mentioned the company names. Really helping those companies build the powerhouse brand, and so I just love being a company who is known for one thing, but is very successful that being known for something that's even broader and more strategic. And that's why I wanted to join the company. >> You mentioned the phrase powerhouse brand. What is a powerhouse brand, and how do you go about building it? >> Well everybody probably has a different definition of a powerhouse brand, but having spent a good 15 years in the Bay area, Silicon Valley, when you're walking around Silicon Valley and you say who you work for and everyone recognizes it, you're working for a powerhouse brand. That hasn't been the case with VeeAM. Now we're very strong, we do our research. We come out pretty strong it Europe, but in terms of our brand awareness in North America we have a ways to go there. Again, and I think because when it comes to building a brand and 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 get the customers to go on record to talk about the power and value of VeeAM. Because when customers go on to talk about it, there really is no better marketing that you can do. >> Ya Kate, one of the things I saw. VeeAM started out with the geeks, and I say that in the most loving terms. People that did virtualization. >> Kate: Yes. >> VeeAM solved a problem, simple, huge adoption in that market, but as we've been talking about all day here, data protection is going up the stack. >> Kate: It is. >> It's hitting the seed sweep more, so. >> Kate: Yes. >> Maybe you could explain to a lot of our audience are the techies and they're like I don't understand this brand in marketing things. >> Kate: Sure. >> We just want the next little containers and things there. >> Kate: Absolutely. >> So why the brand elevation? >> So, first and foremost, we're known for one thing in the industry, as it relates to our product. It just works, and we're not leaving that behind, and certainly the enterprise cares a lot about the product, but as we go into the enterprise space, there's some things that an enterprise customer is going to look for, that an SMB may not. Enterprise is one of the assured company that they're doing business with, has long term viability. They want to make sure that there's plenty of addressable market and headroom for them to go far and above, beyond their sights of, a billion in our case. The other thing is, enterprise customers have a different way of engaging with that company, as it relates to the selling motion. So whether it's our partners, our alliance partners, our resellers, our sales teams directly, they want to be able to work with them as trusted advisors, and they want our folks to be able to anticipate their needs, well ahead of when they actually encounter them. So, we're talking a lot about a journey for our customers. We've been talking about intelligent data management, and the five stages of getting to that. So its really, its building on our core. Which has been SMB and commercial, but also now, up leveling the story, and by the way, the technologists at all companies of all sizes, want to be doing more to influence the outcomes, the business outcomes. So we're telling a story that we think will resonate with them and there's always plenty of click downs into the technology if you want it. (laughs) >> So you guys are putting a lot of emphasis on the up leveling. As Stu mentioned, CXO is becoming more aware of the data protection problem. >> Kate: Yes. >> Its becoming a board level topic. >> Kate: Yes. >> So I think I get the why now. >> Kate: Yes. >> My question is, why VeeAM? And what is the brand promise that you're going to bring to that enterprise? >> So I think, traditionally, VeeAM has been thought of as more of an S&B and commercial play. So the why now is that we have a much broader portfolio then we had a few years ago, and yet we're thought of as just back up and replication. Now, we're building on what our reputation is and back up and replication, but we want to take customers to where we know the puck is going. So for example, as enterprise customers want to take advantage of public clouds, of manage clouds, of SAS applications, they need to be able to get control of all their data. That's the one thing we hear over and over. I don't know where all my data is. Right? So they need to have a platform that can give them that visibility and that aggregated view, that single paint of glass. Then they're going to eventually want to take advantage of being able to move workloads into places where it makes more sense to have them. In cases where there needs to be tighter protection, or in the case of archive data, that they don't need to spend a lot of money on primary storage. It just depends on what our customers want to do. And, ultimately, to be able to move to more of a behavior based way of managing that data. For example, if we see malware crossing that network we can immediately respond and make sure that those workloads are secure. It could also happen as it relates to weather systems and being able to have the data be smart enough to sense and respond where it needs to move to. >> We saw some slides this morning that Peter McKay was showing, like off the platform slide, and I tweeted out that we learned years ago, working with Eric Brinyawlson and Andy McAfee that platforms beat products. >> Kate: Yes. >> So, talk about the importance of platforms through the enterprise. >> Yes, so first of all you cannot be a platform provider without an ecosystem that's embracing and extending the value, and we're working with our ecosystem through the API's, the application programming interfaces, that we make available to them so that they can integrate with our products, and actually allow our platform to be able to be the most complete platform for intelligent data management. That is not all coming from VeeAm, we are very heavily dependent on our ecosystem. >> Dave: Right. >> So that's really the crux of how important a platform is because customers have a lot of technology already in their environments. They want to make sure that if I'm buying something from you, that it'll integrate into my existing environment so I don't have to do a complete rip and replace. That's a very expensive proposition. So, we have been investing and we have thousands of technology partners that are embracing our API's and again, extending the value of our platform. >> I don't want to jump in but, I was going to ask you how you add value to those partners, and it's not just the product and the features, and doing what you say you're going to do from a product standpoint, it's having that platform that makes it easy to integrate, >> Kate: That's right. >> And creating that scale effect, that flyaway effect. >> Absolutely, and a solution that is better together. So, customers really like buying solutions that are already packaged and integrated as it might relate to Cysco and VeeAM or HPE and VeeAM or NetApp and VeeAM. That's what we've been doing with those partners in particular and really going to market together, and that is a preferred way for many customers to buy. >> Or IBM and VeeAM, or Microsoft and VeeAM, >> Yes >> Botanics and VeeAM. VMware and Veeam, we don't want to leave anybody out. >> Kate: We don't want to leave anyone out. Those three that I mentioned, we're on their price list and we are reselling. >> So that's the difference. >> Yes. That's the difference >> Okay, that's really the point. >> Yes. >> Okay. >> So my question is, as you go up the stack a bit, talk about platforms and things like orchestration, >> Kate: yes >> the swim lanes get a little bit muddy, because if you talk about those same partners, the VMware, Microsoft, the Newtanics of the world. >> Kate: Yes. >> They want to own a lot of those pieces in the multi cloud world. >> Kate: Yes. >> Maybe you can help explain that. >> I think we're all probably saying some of the same words, but defining them a little differently. So when we talk about orchestration, it's very much about allowing workloads to move seamlessly across multi-clouds. To do that while the data is secure and protected, and eventually introduce, we have partnerships today that allow us to leverage artificial intelligence. So that those workloads can move seamlessly without any disruption to the business as they're moving to the right location. So yes, I think you hear a lot of the terms, but as you drill down into it and you double click on what does that mean for, in your environment, it's a little different. >> So when VeeAM decided to expand deeper into the enterprise, it's putting its money where its mouth is. I mean Robby brought in Peter McKay, he brought in a number of folks on the sale side with enterprise, now yourself. >> Kate: Yes. >> We saw Dave Russel up on stage today. >> Kate: Yes. >> He's got some enterprise jobs. >> I'm looking forward to working with him. >> You're not just talking to talk, you're walking to walk. Which is great to see, and thinking about the total available market, its a TAM expansion move, can you address that at all? >> Kate: Yes. >> I know you guys are very research oriented, as a company. >> Kate: Yes. >> You have relationships with all the big research houses. What do you see from a taman standpoint. >> Yes, so, remember that our proposition is to have the most complete platform for intelligent data management. By virtue of saying that, it really means we have to look at adjacent markets for additional capabilities to put into our platform, to ensure that we remain ahead of the competition as it relates to intelligent data management. We're looking at various adjacent markets. Whether that be through a build buyer partner strategy. So one of the largest market opportunities in an adjacency is the cloud infrastructure as a service market. It's huge. Its about 90 billion. It's got a very fast clip in terms of its compounded annual growth rate, and we've already made some pretty great progress there, both organically, as well as through the acquisition of N2WS. When we move into fast growing market segments like that, and we have many others that are adjacent as well, it's creating an addressable market of about 30 billion for us as we look out into 2022. So we're pretty excited about that, and again, that gets back to making those investments so that an enterprise customer feels confident betting their business on us. We have that scale ability. We have that addressable market, and we are increasingly helping our folks on the front lines become trusted advisors to our customers. >> In your estimation, I know some of this is hard when you're doing the analysis >> Kate: Yes. >> I used to do that for a living so I know. In your estimation is that sort of an approximation of spend, or does it include what we look at, as the money that's left on the table by the global 2000 because they have inadequate data protection. Presume it does not include that. >> Kate: Yeah. >> Because if it did, it would probably be a trillion. >> Kate: Right >> But I wonder if you can add some color to it. >> Well I think as we get into an era of compliance, we have GDPR coming down this month, I think companies are taking a new look at what does it really mean to ensure that I know where all my data is, that I ensure it's protected, that I'm sure that it's secure, and that it's in compliance. I think you're seeing more attention, more money. You mentioned earlier that this is becoming more of a sea level issue, and I think in an era of compliance and regulations that are coming down, you're going to see that only increase. >> One of the interesting things that we saw about VeeAM when we were looking at the show here, you're almost, how do I say it, a tweener. You're still kind of a startup, but you're one of the bigger companies in the space. There's a lot of buzz and energy, and customer interest >> Yes. >> In this all market thing. How do you look at yourself compared to some of the legacy giants, >> Yeah. >> And some of the new startups? >> So we are a very fast growing company. We posted 40 percent growth in Q4. We were at 36% year over year. I mean off the very big numbers. I haven't seen these numbers since I was at VMware. So that is a rapid growth company that grows up quickly when it's growing at that clip, so I think there's a part of us that's extremely paranoid about the competition and looking at some of the new entrance to make sure that we are really staying ahead and innovating, continuing to innovate. Then we look at some being legacy companies that have been in this space, and we see in some cases, a downward trend in their revenue and in their investments in this era, in this area. Again, I think it's a healthy balance of innovative and paranoid, and recognizing that customers want the solution that VeeAM offers, and they do want to be able to migrate off of the legacy systems that are out there. We are seeing that time and again. We just showed, this morning in the general session, we showed a Royal Caribbean video and that was a case where they abandoned their legacy system to go with VeeAM. >> Well that's quite a story. Nearly a billion dollars, growing at 35 plus percent a year. You got to look to companies like Service Now, Work Day. >> Kate: Yes. >> You're in that rare-ified air. Well Kate thanks so much for coming. >> Absolutely. >> Congratulations on the new role. >> Thank you. >> Really excited to see you sort of take VeeAM up into that new stratosphere. >> I'm very excited to be here. >> It's great to be part of VeeAMON 2018. Thanks for watching everybody. We'll be right back with our next guess, right after this short break. (techno music)

>> Announcer: Live from Las Vegas, it's the Cube, covering Fortinet Accelerate 2018. Brought to you by Fortinet. >> Hi. Welcome back to Fortinet Accelerate 2018. I am Lisa Martin with the Cube. We're excited to be here for our second year. I'm joined by Peter Burris from the Cube as well. And we're very excited to be joined by our next guest, John Bove, the Vice President of America's channels at Fortinet. Welcome to the Cube. >> Thank you. Thank you for having us. >> So, it's exciting for us to be here. I, as a marketer, geek out on tag lines. >> Yup. >> So, I'd love for you to kind of tell our viewers, strength and numbers. >> Yup. >> As the title of event. What does that mean? >> Well, it's really about the depth and breadth of what Fortinet's doing in the marketplace. You know, bringing the security fabric, not only to our customers, but to enable our partner community, right. So, Accelerate is a collection and we have about, almost 3,000 attendees here, about 2,300 of those are our carrier partners, resell partners, manage security service providers, and also our fabric ready alliance partners, right. So, the security fabric has allowed us to incorporate, you know, some additional third party technologies, right. And it's really, we're creating a really strong culture around, you know, integration and openness. >> Before we get into the technology, let's talk about pivot on that culture for a second. >> Sure. >> 'Cause one of the things that, that was evident from the keynotes this morning that Kenzie talked about, which really, this long standing partner driven culture that Fortinet has. You've recently come back to Fortinet. >> I have. >> Tell us about being a boomerang. What excites you about coming back? But also, how has that culture of really being partner-focus and maybe partner-first evolve? >> Well, the channel first culture at Fortinet makes my job really easy, right. And the reason that I came back was here with the company for six years, we experienced a tremendous, you know, run of revenue. And to have the opportunity to lead the America's Channel Organization is a great privilege. But, it really comes from the culture within the company of being a channel leverage and a channel first company. I think, you know, in Patrice's keynote this morning, and in Ken's keynote as well, they really talked about the channel program, and the channel partners. You know, the partners are the fabric of what we do as an organization. You know, and we're doing the security fabric. Something that they can build a business around. >> Joe, as you think about what the type or the nature of the changes that are taking place in all business. Security business, and as we've heard today, the repitity with which changes happening in security world. That, I got to believe is putting a fair amount of stress on your partners because they have to come up to speed very, very rapidly on new things, even as they demonstrate that they can sustain operational excellence for all things. What is the role that education's playing? Culturating your partner's to a new network. Or a new approach doing these, how is that leading to a better set of capabilities for your customers? >> Sure. Well, I think the one change in this digital transformation era is change, right. We're seeing customers consume technologies much differently than they ever have before. And so our partners have to be in a situation to be able to deliver those technologies. We're seeing the threat landscape continue to widen and be very broad in nature. And so, existing postures and existing deployments are not necessarily going to be able to protect those customers and quite frankly, from a partner standpoint, the way that they look at their business, and build their business needs to be different today than it was due to the change that digital transformation is driving. >> So in terms of your, sort of, symbiosis with the channel, we talked with Phil Quade just a minute ago, we talked about, you know, how our seat is looking to him, to say how are you guys doing this at Fortinet in terms of security? Tell me about the symbiotic relationship with your partners. What information are they bringing to you from the front lines from the customers? Whether it's education, fedsled, healthcare, that is helping to evolve Fortinet's technologies >> I mean, at the end of the day, security is a very noisy space right now, right. And we depend upon our partners, not only to ensure our programs and how we go deliver, you know, value to them, but also, I mean what the customers are telling them, and what they're seeing in the marketplace today. We're really focused on service enablement and the service delivery because the transactional type of business that we've seen in the past is no longer the route to market for success for, you know, the broad base, you know channel organizations, right. So, you know, we have a responsibility as a company to ensure that our partners have the capabilities to deliver services in ways that customers want it, you know, consume. You know, IOT is a marketplace that's been created, right. OT is opportunistic for the bad actors, right. The move to, of workloads, to public clouds and data based applications, and the fabric is really resonating with those partners in terms of being able to meet those customers changing needs. >> And you guys have had a, do a partner advisory council. >> We do. >> How long has that been going on? And what are some of the things that excite you about it? >> Yeah, so. Over 10 years we've had a partner advisory council. And it's, you know, it's industry leaders that are business owners and business drivers that, you know, really kind of keep us honest about what we're doing internally. They have access to our executive staff. They have access to, you know, product roadmaps as well. And you know, with the creation of the fabric, and what we're doing with our alliance partnerships, you know, they're kind of helping fill some of those holes as to, you know, what we're seeing in the marketplace today. You know, I think today we announced 11 additional fabric alliance partners. You know, today, organizations like Fanta for orchestration and automation, right. Integration is truly the new best breed. But the ability to react when things occur, and to orchestrate and to automate those controls are really important. And the company's done a great job, and we attribute a lot of that guidance to our partner advisory council. >> As Fortinet grows and expands its footprint, which in place new types of arrangements, like the CTA and other types of things, it's ecosystem continues to expand, in a way that Fortinet is moving towards the center. More of a focus, at least a low side >> Right. >> within the ecosystem. What does that mean from your ability to get partners, to influence partner behavior and customers, and get more pull through out of the entire ecosystem? How is that going to shape the way Fortinet competes in a way Fortinet serves its customers over the next few years? >> I think, simply put, you know, the tailwinds we have behind us. You know, we're on the precipice of two billion dollars in revenue. You know, we've got now line of sight to three and four here pretty quickly. We definitely think that the fabric is going to allow us to continue to scale and grow. You know, through that partner community. But quite frankly, I am amazed just in my time here, you know, how partners have embraced and really wrapped a business practice, in a service is first business practice, you know around that fabric. So, we're really excited about the opportunity that we have at hand. I think the fabric is going to continue to, you know, change the game, right. It's not about, you know, products. It's about delivering an integrated solution. >> Speaking of the fabric. I was kind of thinking of pivoting on what you were saying Peter, about differentiation. When partners have choices of companies to work with, you guys have been in this place for a really long time. >> We have, yup. >> But, besides the fabric, what are some of, maybe the other top two differentiators where a partner may be coming into the program that's, I get it, for with this partnership with Fortinet, we can go and really revolutionize customers in any industry >> You know, we're really unique in the market because we serve from the S&B to the mid-market, to the enterprise and some of the largest service provider brands. And that affords our partner community to be extremely diverse, and we want to be very easy to work with. So I think more than anything, my goal is to be simple and predictable in nature, and ensure that we're driving a very margin rich solution. You know, a lot of companies in the market will be enterprise focused or mid-market focused, and so, you know, we're really keen on establishing clear routes to market with our partner community. Aligning and investing where they fit. And then taking advantage of some of, even the vertical opportunities that the partners present based on those capabilities. >> I was, we were chatting a little bit earlier about education and that was one of the things I was reading, that, in some articles, that some of your guys did. And it's been awhile since I've been in college, and it just, it's so remarkable how, you know, smart classrooms, and it's BYOD, and how vulnerable school districts are for, obvious reasons we won't go into, for political reasons. But, even from a security perspective, I'm curious if there's any kind of, maybe, favorite example that you have of a partner, customer, through the channel in education that has really been able to facilitate a digital business transformation with the under pending of security, security transformation. >> I actually was just in a partner meeting, and we were talking about that very topic. And they had established with a, one of the top five largest school districts in the United States. A, you know, a fully deployed wireless mesh network. That they, once that was deployed, then they really were able to underpin it with, you know, the fortigate, fortios, and really be able to deliver the security posture back through that wireless infrastructure. You know, you make a really good point. We're seeing more and more internet connected devices. A lot of those internet connected devices are very low end in terms of their overall price point. And so these organizations, they're not necessarily pushing out vulnerabilities to it. And in patches in remediation. And that's why IOT security is so important in that kind of K through 12 example, right. Leveraging fortios, connecting to both land and wireless land capabilities, and it really, that's a great use case of how the fabric can impact a customer. >> So as you imagine the world of partnership in a play in the future, will they be more purveyors of hardware, purveyors of software, purveyors of services? How do you think the ecosystem's going to evolve as Fortinet expands it's footprint? >> Sure. That's a really good question. And quite frankly, I spend a lot of my time thinking about that. I feel, I truly feel like we have an obligation and a responsibility to help our partners through this digital transformation into where we think things are going to go. Things are moving towards security as a service. Things are moving towards, you know, on demand, you know, pay as you go, consumption modeling, right. And we have to put our partners in a situation to be able to deliver some goods and services to our customer based the way they want to buy, and make sure that they're driving value after the transaction. Because, you know, selling to the transaction is probably going to be a dying, you know, breed. It's really important that partners have the capabilities to install, deploy and support on the ongoing basis, in which is really becoming a best practice in the security space. >> And one of the other things about digital business is that historically businesses have been aligned by the arrangement of their assets so you can look at a transportation company and say, oh, that company is transportation assets, or financial services company and say, oh, that company is financial services assets. But digital business starts changing that. Because when you bring programmability and digital orientation to a lot of these assets, you reduce the specificity of those assets which increases mobility across businesses. >> That's right. >> How do you think the opportunity of helping partners transform in this business way is going to increase the noise or complexity or the interconnectedness and the potential conflicts within partners, as they go after? As their expertise, and their relationships becomes more fungible. >> That's a, I mean, that's really good point. We deal and we want to ensure that we've got a programmatic way to handle, you know, channel conflicts. Right, I mean at the end of the day. Partner brings us >> But also channel opportunity >> And channel opportunity, that's right. You know, so it's really about being consistent in how you treat, you know, the partner community and having really set rules. But, you know, digital transformation, if anything else, the thing that makes Fortinet so unique, is we are an engineering company. Security is very complicated. And the good news is that the heart of what we do is technology. The feedback we continue to get from our partners is that our technology is second to none. So we win on the technology side. And now with the momentum that we're seeing with the, you know, the fabric or the alliance programs, the momentum that we're seeing in the marketplace, and really kind of being prepared for this shift of technology by introducing the fabric concept. You know, we're really excited about the opportunity for our partners and the role they're going to play in the coming years. >> So as we kind of, you know, wrap things up here. I'll go back to where we started off with John and talking about the strength and numbers. And some things that I wrote down that I think Patrice shared this morning. Nearly 18,000 new customers acquired in 2017. >> That's right. >> What are your, as the channel chief. What are your hopes and dreams for what that number will look like at the end, by the end of 2018? >> You know, at the end of the day, I want to be able to drive and enable to channel organization to go take advantage of the tailwinds in the market, right. We want to go, continue to drive market share in the S&B, that's going to be partner-led. We want to go expand in the fabric, you know, within the mid-market. And we want to be very opportunistic in the enterprise, to go knock down some of the largest logos. You know, I'm mostly, the opportunity we have in the U.S. alone is really quite significant. And we're really excited to see, you know, as, you know, we just exceed the half a billion dollar mark in Q4 for the first time as a company, and so as we start, you know, planning in future quarters. It's really exciting to be a part of the momentum we have here at Fortinet. >> And I think the momentum is tangible. You can feel it here. You can hear it behind us in the expo. So >> It's quite exciting. >> We thank you so much John for stopping by to keep sharing >> Thank you. Thanks for having us. >> Absolutely. Sharing your insights and how the, I'm feeling another tagline with the fabric of our lives, but I think somebody else beat you guys to it. Cotton maybe? Anyway, thanks so much John for sharing what's going on in the channel and we wish you a great show. >> Thank you. Thank you very much. >> And for my co-host, Peter Burris, I'm Lisa Martin. You've been watching the Cube live from Fortinet Accelerate 2018. Stick around, we'll be right back. (light techno music)