>> From theCUBE studios in Palo Alto in Boston, bringing you data driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> In the words of my colleague CTO David Nicholson, Broadcom buys old cars, not to restore them to their original luster and beauty. Nope. They buy classic cars to extract the platinum that's inside the catalytic converter and monetize that. Broadcom's planned 61 billion acquisition of VMware will mark yet another new era and chapter for the virtualization pioneer, a mere seven months after finally getting spun out as an independent company by Dell. For VMware, this means a dramatically different operating model with financial performance and shareholder value creation as the dominant and perhaps the sole agenda item. For customers, it will mean a more focused portfolio, less aspirational vision pitches, and most certainly higher prices. Hello and welcome to this week's Wikibon CUBE Insights powered by ETR. In this Breaking Analysis, we'll share data, opinions and customer insights about this blockbuster deal and forecast the future of VMware, Broadcom and the broader ecosystem. Let's first look at the key deal points, it's been well covered in the press. But just for the record, $61 billion in a 50/50 cash and stock deal, resulting in a blended price of $138 per share, which is a 44% premium to the unaffected price, i.e. prior to the news breaking. Broadcom will assume 8 billion of VMware debt and promises that the acquisition will be immediately accretive and will generate 8.5 billion in EBITDA by year three. That's more than 4 billion in EBITDA relative to VMware's current performance today. In a classic Broadcom M&A approach, the company promises to dilever debt and maintain investment grade ratings. They will rebrand their software business as VMware, which will now comprise about 50% of revenues. There's a 40 day go shop and importantly, Broadcom promises to continue to return 60% of its free cash flow to shareholders in the form of dividends and buybacks. Okay, with that out of the way, we're going to get to the money slide literally in a moment that Broadcom shared on its investor call. Broadcom has more than 20 business units. It's CEO Hock Tan makes it really easy for his business unit managers to understand. Rule number one, you agreed to an operating plan with targets for revenue, growth, EBITDA, et cetera, hit your numbers consistently and we're good. You'll be very well compensated and life will be wonderful for you and your family. Miss the number, and we're going to have a frank and uncomfortable bottom line discussion. You'll four, perhaps five quarters to turn your business around, if you don't, we'll kill it or sell it if we can. Rule number two, refer to rule number one. Hello, VMware, here's the money slide. I'll interpret the bullet points on the left for clarity. Your fiscal year 2022 EBITDA was 4.7 billion. By year three, it will be 8.5 billion. And we Broadcom have four knobs to turn with you, VMware to help you get there. First knob, if it ain't recurring revenue with rubber stamp renewals, we're going to convert that revenue or kill it. Knob number two, we're going to focus R&D in the most profitable areas of the business. AKA expect the R&D budget to be cut. Number three, we're going to spend less on sales and marketing by focusing on existing customers. We're not going to lose money today and try to make it up many years down the road. And number four, we run Broadcom with 1% GNA. You will too. Any questions? Good. Now, just to give you a little sense of how Broadcom runs its business and how well run a company it is, let's do a little simple comparison with this financial snapshot. All we're doing here is taking the most recent quarterly earnings reports from Broadcom and VMware respectively. We take the quarterly revenue and multiply by four X to get the revenue run rate and then we calculate the ratios off of the most recent quarters revenue. It's worth spending some time on this to get a sense of how profitable the Broadcom business actually is and what the spreadsheet gurus at Broadcom are seeing with respect to the possibilities for VMware. So combined, we're talking about a 40 plus billion dollar company. Broadcom is growing at more than 20% per year. Whereas VMware's latest quarter showed a very disappointing 3% growth. Broadcom is mostly a hardware company, but its gross margin is in the high seventies. As a software company of course VMware has higher gross margins, but FYI, Broadcom's software business, the remains of Symantec and what they purchased as CA has 90% gross margin. But the I popper is operating margin. This is all non gap. So it excludes things like stock based compensation, but Broadcom had 61% operating margin last quarter. This is insanely off the charts compared to VMware's 25%. Oracle's non gap operating margin is 47% and Oracle is an incredibly profitable company. Now the red box is where the cuts are going to take place. Broadcom doesn't spend much on marketing. It doesn't have to. It's SG&A is 3% of revenue versus 18% for VMware and R&D spend is almost certainly going to get cut. The other eye popper is free cash flow as a percentage of revenue at 51% for Broadcom and 29% for VMware. 51%. That's incredible. And that my dear friends is why Broadcom a company with just under 30 billion in revenue has a market cap of 230 billion. Let's dig into the VMware portfolio a bit more and identify the possible areas that will be placed under the microscope by Hock Tan and his managers. The data from ETR's latest survey shows the net score or spending momentum across VMware's portfolio in this chart, net score essentially measures the net percent of customers that are spending more on a specific product or vendor. The yellow bar is the most recent survey and compares the April 22 survey data to April 21 and January of 22. Everything is down in the yellow from January, not surprising given the economic outlook and the change in spending patterns that we've reported. VMware Cloud on AWS remains the product in the ETR survey with the most momentum. It's the only offering in the portfolio with spending momentum above the 40% line, a level that we consider highly elevated. Unified Endpoint Management looks more than respectable, but that business is a rock fight with Microsoft. VMware Cloud is things like VMware Cloud foundation, VCF and VMware's cross cloud offerings. NSX came from the Nicira acquisition. Tanzu is not yet pervasive and one wonders if VMware is making any money there. Server is ESX and vSphere and is the bread and butter. That is where Broadcom is going to focus. It's going to look at VSAN and NSX, which is software probably profitable. And of course the other products and see if the investments are paying off, if they are Broadcom will keep, if they are not, you can bet your socks, they will be sold off or killed. Carbon Black is at the far right. VMware paid $2.1 billion for Carbon Black. And it's the lowest performer on this list in terms of net score or spending momentum. And that doesn't mean it's not profitable. It just doesn't have the momentum you'd like to see, so you can bet that is going to get scrutiny. Remember VMware's growth has been under pressure for the last several years. So it's been buying companies, dozens of them. It bought AirWatch, bought Heptio, Carbon Black, Nicira, SaltStack, Datrium, Versedo, Bitnami, and on and on and on. Many of these were to pick up engineering teams. Some of them were to drive new revenue. Now this is definitely going to be scrutinized by Broadcom. So that helps explain why Michael Dell would sell VMware. And where does VMware go from here? It's got great core product. It's an iconic name. It's got an awesome ecosystem, fantastic distribution channel, but its growth is slowing. It's got limited developer chops in a world that developers and cloud native is all the rage. It's got a far flung R&D agenda going at war with a lot of different places. And it's increasingly fighting this multi front war with cloud companies, companies like Cisco, IBM Red Hat, et cetera. VMware's kind of becoming a heavy lift. It's a perfect acquisition target for Broadcom and why the street loves this deal. And we titled this Breaking Analysis taming the VMware beast because VMware is a beast. It's ubiquitous. It's an epic software platform. EMC couldn't control it. Dell used it as a piggy bank, but really didn't change its operating model. Broadcom 100% will. Now one of the things that we get excited about is the future of systems architectures. We published a breaking analysis about a year ago, talking about AWS's secret weapon with Nitro and it's Annapurna custom Silicon efforts. Remember it acquired Annapurna for a measly $350 million. And we talked about how there's a new architecture and a new price performance curve emerging in the enterprise, driven by AWS and being followed by Microsoft, Google, Alibaba, a trend toward custom Silicon with the arm based Nitro and which is AWS's hypervisor and Nick strategy, enabling processor diversity with things like Graviton and Trainium and other diverse processors, really diversifying away from x86 and how this leads to much faster product cycles, faster tape out, lower costs. And our premise was that everyone in the data center is going to competes, is going to need a Nitro to be competitive long term. And customers are going to gravitate toward the most economically favorable platform. And as we describe the landscape with this chart, we've updated this for this Breaking Analysis and we'll come back to nitro in a moment. This is a two dimensional graphic with net score or spending momentum on the vertical axis and overlap formally known as market share or presence within the survey, pervasiveness that's on the horizontal axis. And we plot various companies and products and we've inserted VMware's net score breakdown. The granularity in those colored bars on the bottom right. Net score is essentially the green minus the red and a couple points on that. VMware in the latest survey has 6% new adoption. That's that lime green. It's interesting. The question Broadcom is going to ask is, how much does it cost you to acquire that 6% new. 32% of VMware customers in the survey are increasing spending, meaning they're increasing spending by 6% or more. That's the forest green. And the question Broadcom will dig into is what percent of that increased spend (chuckles) you're capturing is profitable spend? Whatever isn't profitable is going to be cut. Now that 52% gray area flat spending that is ripe for the Broadcom picking, that is the fat middle, and those customers are locked and loaded for future rent extraction via perpetual renewals and price increases. Only 8% of customers are spending less, that's the pinkish color and only 3% are defecting, that's the bright red. So very, very sticky profile. Perfect for Broadcom. Now the rest of the chart lays out some of the other competitor names and we've plotted many of the VMware products so you can see where they fit. They're all pretty respectable on the vertical axis, that's spending momentum. But what Broadcom wants is that core ESX vSphere base where we've superimposed the Broadcom logo. Broadcom doesn't care so much about spending momentum. It cares about profitability potential and then momentum. AWS and Azure, they're setting the pace in this business, in the upper right corner. Cisco very huge presence in the data center, as does Intel, they're not in the ETR survey, but we've superimposed them. Now, Intel of course, is in a dog fight within Nvidia, the Arm ecosystem, AMD, don't forget China. You see a Google cloud platform is in there. Oracle is also on the chart as well, somewhat lower on the vertical axis, but it doesn't have that spending momentum, but it has a big presence. And it owns a cloud as we've talked about many times and it's highly differentiated. It's got a strategy that allows it to differentiate from the pack. It's very financially driven. It knows how to extract lifetime value. Safra Catz operates in many ways, similar to what we're seeing from Hock Tan and company, different from a portfolio standpoint. Oracle's got the full stack, et cetera. So it's a different strategy. But very, very financially savvy. You could see IBM and IBM Red Hat in the mix and then Dell and HP. I want to come back to that momentarily to talk about where value is flowing. And then we plotted Nutanix, which with Acropolis could suck up some V tax avoidance business. Now notice Symantec and CA, relatively speaking in the ETR survey, they have horrible spending momentum. As we said, Broadcom doesn't care. Hock Tan is not going for growth at the expense of profitability. So we fully expect VMware to come down on the vertical axis over time and go up on the profit scale. Of course, ETR doesn't measure the profitability here. Now back to Nitro, VMware has this thing called Project Monterey. It's essentially their version of Nitro and will serve as their future architecture diversifying off x86 and accommodating alternative processors. And a much more efficient performance, price in energy consumption curve. Now, one of the things that we've advocated for, we said this about Dell and others, including VMware to take a page out of AWS and start developing custom Silicon to better integrate hardware and software and accelerate multi-cloud or what we call supercloud. That layer above the cloud, not just running on individual clouds. So this is all about efficiency and simplicity to own this space. And we've challenged organizations to do that because otherwise we feel like the cloud guys are just going to have consistently better costs, not necessarily price, but better cost structures, but it begs the question. What happens to Project Monterey? Hock Tan and Broadcom, they don't invest in something that is unproven and doesn't throw off free cash flow. If it's not going to pay off for years to come, they're probably not going to invest in it. And yet Project Monterey could help secure VMware's future in not only the data center, but at the edge and compete more effectively with cloud economics. So we think either Project Monterey is toast or the VMware team will knock on the door of one of Broadcom's 20 plus business units and say, guys, what if we work together with you to develop a version of Monterey that we can use and sell to everyone, it'd be the arms dealer to everyone and be competitive with the cloud and other players out there and create the de facto standard for data center performance and supercloud. I mean, it's not outrageously expensive to develop custom Silicon. Tesla is doing it for example. And Broadcom obviously is capable of doing it. It's got good relationships with semiconductor fabs. But I think this is going to be a tough sell to Broadcom, unless VMware can hide this in plain site and make it profitable fast, like AWS most likely has with Nitro and Graviton. Then Project Monterey and our pipe dream of alternatives to Nitro in the data center could happen but if it can't, it's going to be toast. Or maybe Intel or Nvidia will take it over or maybe the Monterey team will spin out a VMware and do a Pensando like deal and demonstrate the viability of this concept and then Broadcom will buy it back in 10 years. Here's a double click on that previous data that we put in tabular form. It's how the data on that previous slide was plotted. I just want to give you the background data here. So net score spending momentum is the sorted on the left. So it's sorted by net score in the left hand chart, that was the y-axis in the previous data set and then shared and or presence in the data set is the right hand chart. In other words, it's sorted on the right hand chart, right hand table. That right most column is shared and you can see it's sorted top to bottom, and that was the x-axis on the previous chart. The point is not many on the left hand side are above the 40% line. VMware Cloud on AWS is, it's expensive, so it's probably profitable and it's probably a keeper. We'll see about the rest of VMware's portfolio. Like what happens to Tanzu for example. On the right, we drew a red line, just arbitrarily at those companies and products with more than a hundred mentions in the survey, everything but Tanzu from VMware makes that cut. Again, this is no indication of profitability here, and that's what's going to matter to Broadcom. Now let's take a moment to address the question of Broadcom as a software company. What the heck do they know about software, right. Well, they're not dumb over there and they know how to run a business, but there is a strategic rationale to this move beyond just doing portfolios and extracting rents and cutting R&D, et cetera, et cetera. Why, for example, isn't Broadcom going after coming back to Dell or HPE, it could pick up for a lot less than VMware, and they got way more revenue than VMware. Well, it's obvious, software's more profitable of course, and Broadcom wants to move up the stack, but there's a trend going on, which Broadcom is very much in touch with. First, it sells to Dell and HPE and Cisco and all the OEM. so it's not going to disrupt that. But this chart shows that the value is flowing away from traditional servers and storage and networking to two places, merchant Silicon, which itself is morphing. Broadcom... We focus on the left hand side of this chart. Broadcom correctly believes that the world is shifting from a CPU centric center of gravity to a connectivity centric world. We've talked about this on theCUBE a lot. You should listen to Broadcom COO Charlie Kawwas speak about this. It's all that supporting infrastructure around the CPU where value is flowing, including of course, alternative GPUs and XPUs, and NPUs et cetera, that are sucking the value out of the traditional x86 architecture, offloading some of the security and networking and storage functions that traditionally have been done in x86 which are part of the waste right now in the data center. This is that shifting dynamic of Moore's law. Moore's law, not keeping pace. It's slowing down. It's slower relative to some of the combinatorial factors. When you add up in all the CPU and GPU and NPU and accelerators, et cetera. So we've talked about this a lot in Breaking Analysis episodes. So the value is shifting left within that middle circle. And it's shifting left within that left circle toward components, other than CPU, many of which Broadcom supplies. And then you go back to the middle, value is shifting from that middle section, that traditional data center up into hyperscale clouds, and then to the right toward infrastructure software to manage all that equipment in the data center and across clouds. And look Broadcom is an arms dealer. They simply sell to everyone, locking up key vectors of the value chain, cutting costs and raising prices. It's a pretty straightforward strategy, but not for the fate of heart. And Broadcom has become pretty good at it. Let's close with the customer feedback. I spoke with ETRs Eric Bradley this morning. He and I both reached out to VMware customers that we know and got their input. And here's a little snapshot of what they said. I'll just read this. Broadcom will be looking to invest in the core and divest of any underperforming assets, right on. It's just what we were saying. This doesn't bode well for future innovation, this is a CTO at a large travel company. Next comment, we're a Carbon Black customer. VMware didn't seem to interfere with Carbon Black, but now that we're concerned about short term disruption to their tech roadmap and long term, are they going to split and be sold off like Symantec was, this is a CISO at a large hospitality organization. Third comment, I got directly from a VMware practitioner, an IT director at a manufacturing firm. This individual said, moving off VMware would be very difficult for us. We have over 500 applications running on VMware, and it's really easy to manage. We're not going to move those into the cloud and we're worried Broadcom will raise prices and just extract rents. Last comment, we'll share as, Broadcom sees the cloud data center and IoT is their next revenue source. The VMware acquisition provides them immediate virtualization capabilities to support a lightweight IoT offering. Big concern for customers is what technology they will invest in and innovate, and which will be stripped off and sold. Interesting. I asked David Floyer to give me a back of napkin estimate for the following question. I said, David, if you're running mission critical applications on VMware, how much would it increase your operating cost moving those applications into the cloud? Or how much would it save? And he said, Dave, VMware's really easy to run. It can run any application pretty much anywhere, and you don't need an army of people to manage it. All your processes are tied to VMware, you're locked and loaded. Move that into the cloud and your operating cost would double by his estimates. Well, there you have it. Broadcom will pinpoint the optimal profit maximization strategy and raise prices to the point where customers say, you know what, we're still better off staying with VMware. And sadly, for many practitioners there aren't a lot of choices. You could move to the cloud and increase your cost for a lot of your applications. You could do it yourself with say Zen or OpenStack. Good luck with that. You could tap Nutanix. That will definitely work for some applications, but are you going to move your entire estate, your application portfolio to Nutanix? It's not likely. So you're going to pay more for VMware and that's the price you're going to pay for two decades of better IT. So our advice is get out ahead of this, do an application portfolio assessment. If you can move apps to the cloud for less, and you haven't yet, do it, start immediately. Definitely give Nutanix a call, but going to have to be selective as to what you actually can move, forget porting to OpenStack, or do it yourself Hypervisor, don't even go there. And start building new cloud native apps where it makes sense and let the VMware stuff go into manage decline. Let certain apps just die through attrition, shift your development resources to innovation in the cloud and build a brick wall around the stable apps with VMware. As Paul Maritz, the former CEO of VMware said, "We are building the software mainframe". Now marketing guys got a hold of that and said, Paul, stop saying that, but it's true. And with Broadcom's help that day we'll soon be here. That's it for today. Thanks to Stephanie Chan who helps research our topics for Breaking Analysis. Alex Myerson does the production and he also manages the Breaking Analysis podcast. Kristen Martin and Cheryl Knight help get the word out on social and thanks to Rob Hof, who was our editor in chief at siliconangle.com. Remember, these episodes are all available as podcast, wherever you listen, just search Breaking Analysis podcast. Check out ETRs website at etr.ai for all the survey action. We publish a full report every week on wikibon.com and siliconangle.com. You can email me directly at david.vellante@siliconangle.com. You can DM me at DVellante or comment on our LinkedIn posts. This is Dave Vellante for theCUBE Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (upbeat music)

>>mm >>Welcome back to HPD discovered 2021. The virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks David yourself you've been good, >>yep. Doing great thank you. Hey you've heard the term follow the money, we're gonna follow the data. How >>about right >>So HP and wien you're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows. And uh of course we miss miss being face to face this year but next year we'll be back rocket but uh talk a little bit about what that milestone means to you. >>Yeah Thanks. Dave. And you're right. It is a milestone. I mean when you look at alliances or partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X Number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology. Um and 10 years is a long time. I mean how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased that the investment from both sides as maintained and grown through that time period. Um And as you said it's a shame we're not doing this in person but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for this government. >>Well, congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of hard y and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships. It was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. And it's a really cheesy answer, but it's it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what built that foundation, We were the launch back up part of the three part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said as HP has evolved through that period, the divestiture and the overall movement of their portfolio. We've continued to listen to each other on what is important to both parties. But while that's great from the relationship and the alliance, the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period in our needs have changed. I mean we started with servers, we worked with storage, we're with green labour? S moral like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been killed. >>So what are the waves that you're you're surfing here, You put on the binoculars and look forward what are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah. Great question. I mean we're focused on three things for the for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection. And the reason for that is that if you look at the diversity of the portfolio, HP has you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs, that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving forward and that whatever decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>We'll talk about that speedy recovery. There's so much in the news today, we're seeing all this, all this ransomware. I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate when, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you you lose in that recovery and you try to compress that RP. Oh right. Is as tight as possible. And that's the other sort of value that that customers look for from a combination of HPV and VM. So, but I want to ask you, so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement, Yes, you did a really interesting report recently and they're saying that spending on data center protection is going to grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization. And so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, you know, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green Lake is key to how things are moving forward and other things that the storage departments doing as well as they look at some of their new ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you decide you want to consume the HP portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally I want to I want to talk about the cast and acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought after you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go, oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously. How does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall? >>Yeah that's a great question and there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it But as you exactly said, this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty. And you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites, with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition uh VM and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic in an economic downturn. It's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is as a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago where where HP envy emceeing joint success in the marketplace? It would have been, well of course, virtualization, it's all the >>rage. Where >>are you seeing success today? >>And that's a great question and it's interesting you talk about it with the pandemic. I'll be honest, the last recession us that I was in the digital messaging market and at that point when economies get tight, everybody invest in cheaper types of marketing, which is digital messaging. Now we've got a pandemic and guess what, everybody is looking at this area of the market again with protection. And I think to your point, it's a great Russian. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with office 365 etcetera, what you're seeing is that hybrid need. We're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer. And because we have it so well baked into all the different parts of the portfolio, it's a seamless ability to just continue to exp fan utilization of the portfolio. So from our point of view, we're seeing fantastic against bright success. We're seeing it in some of these verticals like medical, like financial, the big corcoran pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing people look at what I would classify as some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic provider for the foundation of the core business. Now, what we're finding is that coming to HP envy and saying, hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on. So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing all of our regions come up. Um, and the reason why that's important is sometimes you see alliances that have success in one market or one area, We're seeing the year over year growth in a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's telling us is that the customers resonate on what we're producing together. And so from that point of view, we're very ubiquitous in our level of value to customers and we're hoping to carry that on moving forward. >>Well, it's two trusted brands. Obviously, you know, the Hewlett Packard enterprise name and that stands out and is no longer start up with a funny name is >>you're proven >>In the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um, earlier this year, wondering how that impacted the alliance? Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name, but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition and I D. C. Just released some fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth for the second half of 2020. Moving us up into the number two position for the first time, which again, is a testament to the success were also having with HP and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP primera, we increase it with HP nimble. We also made a really significant when we're working with HP store. Once we did a lot of evolution on that for a huge space savings, which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that, what I >>love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and >>I've been talking a lot of your >>executives recently, you've, you've, you've thrown out that stand a lot number two. Number two. But, but when I was in to see everybody wanted to be number one at something, so you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, >>but you're not >>doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection and you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not gonna claim number one now until we get to number one and we'll claim real number one. So I like that about you guys. You, you set the mark the mark high. But so I love that. Um, >>I appreciate it. Yeah. How should >>people be thinking about the future of your relationship with HP the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances. And when you look about, when you ask the question, excuse me. Dave about, you know, where do we see the HP envy moving forward, consistency, consistency is key for us for 10 years. We've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you talk to are the executives about. When you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regards to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in the, in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks, uh, certainly the competitive landscape gets tougher and tougher, but you guys are, are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, and hey, we do this together. So we're great to see it moving forward, >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us. For HP. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. >>Mm.

>>Welcome back to HPD discovered 2021 the virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks. David yourself you've been good, >>yep dude, great, thank you. Hey, you've heard the term follow the money, we're going to follow the data. How about so HP and Wien? You're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows and uh of course we miss miss being face to face this year but next year we'll be back rocking but uh talk a little bit about what that milestone means to you. >>Yeah, Thanks. Dave. And you're right. It is a milestone. I mean when >>you look at alliances or >>Partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology um and 10 years is a long time. I mean, how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased at the investment from both sides as maintained and grown through that time period. Um and as you said, it's a shame we're not doing this in person, but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for discovered. Well, >>congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of marijuana and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release, but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its, you know, competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships and was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. >>And it's a really >>cheesy answer, but it's, it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what >>Built that foundation, we were the launch back up part of the three >>part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said, as HP has evolved through that period, the divestiture and >>the overall movement of their portfolio. >>We've continued to listen to each other on what >>is important to both parties. But while that's great from the relationship and the alliance, >>the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period and our needs have changed. I mean we started with servers, we worked with storage, we're with green lake esmeralda like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been q. >>So what are the waves that you're, you're surfing here, You put on the binoculars and look forward. What are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah, great question. I mean we're focused on three things for the, for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection and the reason for that is that if you look at the diversity of the portfolio HP has, you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving >>forward and that whatever >>decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>You talk about that speedy recovery, there's so much in the news today, we're seeing all this, all this ransomware, I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you lose in that recovery and you try to compress that arpeggio right is to so as tight as possible. And that's the other sort of value that that customers look for from a combination of HP envy them. So, but I want to ask you so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And we're how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way, kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement. S you did a really interesting report recently and they're saying that spending on data center protection is gonna grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization and so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green like his key to how things are moving forward and other things that the storage departments doing as well as they look at some of their >>new >>ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you >>decide you want to consume the HP >>portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally. I want to I want to talk about the casting acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought. After you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously how does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall. >>Yeah that's a great question. And there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it but as you exactly said this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty and you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition of'em and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic, in an economic downturn, it's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is is a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago, where where hp envy emceeing joint success in the marketplace, it would have been, well of course virtualization, it's all the rage. Where are you seeing success today? >>And that's a great question and it's >>interesting you talk about it with the pandemic. >>I'll be honest, the >>last recession us had, I was in the digital messaging market and at that >>point when economies get tight, everybody invest >>in cheaper types of marketing, which is digital messaging. Now, we've got a pandemic and guess what, everybody's looking at this area of the market again with protection. And I think to your point, it's a great question. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with Office 365 etcetera. What you're seeing is that hybrid me, we're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer >>and because we >>have it so >>well baked into all the >>different parts of the portfolio, it's a seamless ability to just continue to expand the utilization of the portfolio. So from our point of view, we're seeing fantastic enterprise success. We're seeing it in some of these verticals >>like medical, like >>financial, the big corporate pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing, people will look at what I would classify some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic >>provider for the >>foundation of the core business. Now, what we're finding is that coming to HP envy and saying, Hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on? So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing >>all of our regions come up. Um and the reason why >>that's important is sometimes you see alliances that have success in one market or one area, we're seeing the year >>over year growth in >>a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's >>telling us is that the customers resonate on what we're producing together. And so from >>that point of view we're very >>ubiquitous in our level of value to customers and we're hoping to carry that on moving >>forward. Well it's >>two trusted brands. Obviously, you know the Hewlett Packard Enterprise name and that stands out and is no longer a start up with a funny name is You've proven in the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um earlier this year, wondering how that impacted the alliance. Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition. And I D. C just >>released some >>fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth For the second half of 2020. Moving us up into the number two position for the first time, which again is a testament to the success were also having with hp and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP Primera. We increase it with HP Nimble. We also made a really significant when we're working with HB store. Once we did a lot of evolution on that for a huge space savings which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that. >>What I love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and I've been talking a lot of your executives recently, you've, you've thrown out that stand a lot number two. Number two. But, but when I was about to see everybody wanted to be number one at something. So you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, but you're not doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection. And you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not going to claim number one now until we get the number one will claim real number one. So I like that about you guys, you, you set the mark, the mark high. But so I love that. Um, >>I appreciate I have >>how should people be thinking about the future of your relationship with H. P. E. You know, the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure that you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances And when you look about, when you ask the question, excuse me Dave about, you know, where do we see the HP envy moving forward, >>consistency, consistency >>Is key for us for 10 years, we've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you've talked to, other executives about when you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regard to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks. Uh, certainly the competitive landscape gets tougher and tougher, but you guys are are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, >>and hey, we do this together. So we're great to see >>it moving forwards. >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us for hp. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. Mhm. Mhm

>>from around the globe. It's the Cube with digital coverage of Dell Technologies. World Digital Experience Brought to You by Dell Technologies. Welcome to the Cubes Coverage of Dell Technologies. World 2020. The Digital Experience. I'm Lisa Martin, and I'm pleased to welcome back one of our Cube alumni. John Shirley is with us. The vice president of unstructured storage product management. John. Welcome back to the Cube. >>Thank you for having me. It's great to be back. >>So so much has changed since we last saw you were very socially distant. But talk to me from from a storage and unstructured of data perspective, lot of changes in the year of 2020. >>Yeah, a lot of changes everywhere, but especially in our spaces. While we're seeing just a phenomenal amount of growth with storage. Still, that's continuing. But what we've really seen is things changing pretty pretty rapidly, actually, two new cloud based applications and it almost seems like everything that's happened during the pandemic has kind of been an accelerant to getting to that next level of technology. And so we're really excited to be working with our customers, really guide them in the journey to get into, you know, new cloud based applications, cloud native applications and really just helping them take advantage of all of this on structure data that's being generated. >>Yeah, we've heard about acceleration in so many facets this year and that it's, you know, we're accelerated by, you know, 24 to 36 months. Talk to me about, For example. I was talking Thio, Adele Technologies customer Earth down the other day. And, of course, the massive amount of video that they're generating 24 by seven by 3. 65 from all over the world. The edge, cloud core, So much growth there. How are you seeing customers be able to pivot quickly and adapt to how different things are? >>Yeah, you know, the interesting part two isn't just a collection of data anymore. It's how customers want to treat that data. And what we're seeing over and over again is that we get the video streams coming in. But there's also all of these sensors in the world and so marrying up the video streams with sensor information and keeping that in a repository so that you can do things like, uh, real Time analytics, but also be able to take that same data set and also get the historical view is becoming critically important. And that's the thing that's really changed, is how the data is being used yesterday that keeps coming in. But customers are really, really taking a different view in terms of how they want to go use that data. So we have a lot of tools that we've created over the last year or two that are helping our customers harness and really use that data, something that they just weren't able to do a couple years ago. >>Now we always talk about data as currency or data as gold or data equals trust and the most important factor for any businesses extracting value from that data. I think now, really time is even more important if you think of contact tracing, for example, or the accelerated work going on to develop a vaccine, so much access has to be now because data from yesterday isn't good enough. It's not gonna help solve some of these big use cases. What is she gonna key use cases that you're seeing accelerate in the last few months? >>You just hit it right on the head. So the way we look at it, it kind of two points within the timeline of data. That's the most valuable. And, of course, what you just said. Get the right away in the here. Now that's that's one of the times that is the most valuable toe have that data. But then if we kind of take a look at that data as it ages because it get less important, well, some of it might. But actually the data has a big scale data like data repository and be able to extract value out of that kind of holistically as a big set of data is extremely important as well. And so we we have tools, everything from our streaming data platform that talks about how we can extract value from that data, right as it's coming off the sensor of the videos video streams, we've got our power scale product, which provides very, very high performance storage so that customers 10 stream a bunch of data and get some of that AI and ml off of that data. And then we've got our PCs object storage based product what customers want exabytes of data, and they just want a really long term, robust storage repositories. So we've kind of got all the tools together that really helping our customers extract that value. >>Talk to me about doing a migration. That's always a big challenge, especially as many businesses live in a hybrid or multi cloud world where they've got or using public cloud services on from edge maybe, for example, but in terms of being able to get to the data and run algorithms on it to do a I. How can a customer give me, like a snapshot of a of an example infrastructure that, you see is common with customers that allows them to harness data wherever it is and be able to run a I on wherever it is without having to move it around and pale those charges and, of course, lose precious time? >>Yeah, that's a great question. What we're seeing a lot, too, is customers wanting to take advantage of things like the cloud, the power that compete in the cloud, and, uh, they don't necessarily want to move the data in and out of the cloud. But at the same time, you know, we want to make sure that the customers have the flexibility to choose which cloud that they want to go to. So we have multiple cloud offerings that were given to our customers, specifically the ability to take the data. We host the service for the customer so that it's all in all operated within the Dell EMC, uh, infrastructure team. And then we can map that data data up to the clouds. Whether they want to go to any of the Big three cloud providers, we could map that out. There's no egress fees, and they could go ahead and take advantage of the data very quickly, easily. >>So really, from a flexibility perspective, being able to meet them where they are, >>that's absolutely right. So whether the customers are in the edge or in their in their core or in the cloud will be there to help their needs. >>So this is the first Dell Technologies world that is digital, a lot of opportunity for folks. Thio learn and still be able to have as much engagement as possible. Talk to us about some of the things that you're excited about. The customers are gonna learn in terms of how you're helping them get more value out of the data faster in a time of such massive change. >>Yeah, so we're doing so much within the within the team. So earlier this year we introduced a new product called Power Scale which is taking our industry leading one FS software for scale out file. And we have put that in and really taken advantage of what we have within the Dell family and taking the best server hard work power edge. We've taken on one of one FS software married and together we're really extracting the best value of the data with those platforms. So again, the industry leading scale of file solution marrying that up with the industry leading server solution. And now we've got even though even more robust solution. On top of that, we have, uh, announced our objects scale solution. And so objects Scale is a knob decked store solution that's specifically targeted for customers running kubernetes. We've partnered up with our friends over at VM Ware and we've developed an object store specifically for developers on top of kubernetes environment, so that when customers want to go and start generating new applications with object store on new cloud native app they can really quickly spin up new object, store new buckets and start writing data. It's very simple and easy to use, and then when they want to grow at scale, we've got our PCs object store, too, into that petabytes scale. So it's it's very exciting. >>Can you give us an example of a customer that's that's already doing that That, you see, is really achieving some significant benefits? >>Yeah, yeah, So, uh, probably the one that's the most fun toe watches were working with a company that's doing amusement park rides and really taking a look at all the sensor information so that they can get predictive analytics in terms of the maintenance of the rides, making sure that if there is maintenance that needs to get done, they could get that fixed as quickly as possible so that customers going through those rights a. If, of course, they're going to be safety. Safety is always number one. But being able to make shape, make sure those rides are maintained so that the lines move quickly and they can keep customers going through. And you get us many people enjoying those rises. You can, and that's all coming from our streaming data platform, which is again taking that information. All of that sensors feet, and they need that that real time value that we talked about before to get that real time value. But they also get the historical view so they could see how the maintenance is kind of evolved over time. So that's that's one that's been, ah, lot of fun to work with here over the last couple. >>And hopefully we get to go back to amusement parks and calendar year 2021. Wouldn't that be nice? You mentioned safety and and that Yeah, that kind of makes me think about security. We've seen so much about increases like companies like Zoom, for example, with increased scrutiny on their data security, a more compliance requirements, Um, data protection being even mawr. Important as there was this massive pivot toe work from home seven months ago, and a lot of folks are still there are not going to be there. Tell me a little bit about some of the things that you're doing it to facilitate that this data, this massive increase in unstructured data, is managed securely so that if there's any sort of breach or incident, your customers air in good shape. >>We We have a lot of focus on security within the organization, and that's really across the board. That's really across all of Dell Technologies products. Eso We do a lot of things around encrypted drives to make sure that if the driver ever pulled out of the system, there's no way to go access that data. There's just no way to go do that without the original keys. You can't get those original kids when they're not in the system, so we make sure that we do a lot of hard enough the system at that level. We work very closely with the broader partner and ecosystem community to make sure that we provide things like ransom or protection, uh, isolated. So in case if something does happen a you identified as quickly as you can but be you make sure that you have a good data set, like a good golden copy of that data that you can always go back. Thio, >>you mentioned ransom where it's it's really been on the rise in 2020. I read a stat a couple days ago that every 11 seconds are Ransomware attack occurs when we think about how many new industries are exposed. I saw I read recently that the the New Zealand Stock Exchange was hit a couple of times. Carnival Cruise Line, the Department of veterans of There's a social media with Facebook Tick Toke Instagram on 235 million user profile straight from a unsecured cloud database. So not only is that threat landscape expanding, but we've got more people accessing. Um, you know, corporate networks with maybe personal devices for those phishing emails are probably even getting more sophisticated. >>Yeah, we spend. Like I said, we spend a lot of time. We have a whole security team within the storage group that does nothing but thanks about security and how we can harden the products to make sure they stay secure and robust. And we keep the bad, the bad people away. >>Now that's excellent. Alright, So any predictions what we might see in the next 6 to 9 months, who from Dell Technologies with respect to helping customers who are hopefully have pivoted from this survival mode to now being able to thrive, leverage data extract values from it to identify new revenue streams renew products are new innovation. What do you see on the horizon? >>Yeah, I see just the continued acceleration of the technology. I see Dell Technologies spending a lot of our time focused on solutions so that when we can go into a customer environment, we talk about solutions. We talk about how we can get time to value. So how quickly can we get up the customer up and running with a known good configuration? You know, supportable. It's enterprise grade on. We can have our customers spend time writing code and developing new applications and not worrying about how to go build that infrastructure. So you're gonna see a lot of things. A lot of partnerships across our entire infrastructure team, which internally we call I S G. And we're really working together is one SG team to make sure all of our networking, our storage and our compute and all of the software that goes around that we act as 111 overall family for our customers provide that solution. And we also partner very close with VM ware to provide that software layer. So that again when we go to our customers, uh, and they want to start a new project. We have all of the tools within our portfolio. Uh, we've been around for a very long time. We have very strong focus on both the horizontal, the various workloads that customers were running and also very specific vertical through the industry and teams that just are dedicated on that. So But I think you're going to see a lot more. Is the solution based approaches where we could go into customers? We can provide that solution, and it's up and running in the very, very short amount. All right, >>last question. You said you mentioned you guys have been doing this a long time. I know you've been with Dell for 10 years. What are the three things that you would say if you're in a customer situation and they're looking at Dell and maybe they're looking at HP, for example, or some other competitors? One of the three things that you think really differentiate what Dell Technologies can deliver with respect to extracting value from massive amounts of unstructured data. >>Absolutely. I mean, this is where I get really excited when I'm so proud to be at del, uh, because if I look at all of the advantages that we have that we could bring to our customers. We have just the knowledge. So I think first and foremost when it comes to on structure data, we have been the most prevalent player in the market. And again, if you take a look at different verticals, think about like media and entertainment. We've won an Emmy just because we've been around and we have the technology that's really met the needs. We, um but that's one. We have all of the deep knowledge, and that's really going to give a lot of benefit to our customers to we've got the breath of the portfolio. So not only do we have very specific knowledge in one area where actually cover all of the unstructured portfolio for our customers needs, whether that's file or object or streaming data might even be the data management data management. When we have data I Q. To help our customers understand that data. Our portfolio is really broad, so deep knowledge we have a broad portfolio and then we have the overall Dell Technologies family that that we go forward with. So again, it's not just about the unstructured data. It's everything that goes around that it's the servers. It's that computes all the infrastructure. But it's the software that's also our partners and that whole ecosystem that we built up across the technologies. That's what really makes us strong and really the best person to partner with >>excellent knowledge, bread and a large ecosystem. John, thank you so much for joining us on the Cube today, talking to us about all the exciting things that you're working on. What's to come? We appreciate your time. >>Thank you very much >>for John Shirley. I'm Lisa Martin. You're watching the Cubes Coverage of Dell Technologies World 2020.

>>from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue. Here's your host Still, Minutemen >>Hi and welcome to the Boston area studio. Happy to welcome back two of our Cube alumni, both from Active e o Brian Regan, the C M O of the company. And it took Rommel. Who's the vice president and general manager of Cloud? Gentlemen, thanks so much for joining us. >>Happy New Year's too great to be here. >>Yeah, 2020 way we're talking about. We don't all have flying cars and some of these things, but there are a lot of exciting things and ever changing in the tech world. We're gonna talk a lot about N. C. Which, of course, is active use announcement. If I heard the sea, it's about clouds, about containers and about copy data management. With course, you know we know act as always quite well, Brian. Let's start with a company update first. Of course, you know, copy data management is where activity really created a category, but all of these new waves of technology that activity is fitting into Well, 2000 >>19 was an incredible year for us, you know, continued accelerating our growth in the market in the enterprise particularly, You know that the secular trends around hybrid and multi cloud really played well to our existing strengths. And 10 c really builds on those strengths will talk more about that. I know in a moment we also saw continued, you know, as digital transformation as as application modernization initiatives to cold. In just about every enterprise, our database capabilities really played again a cz a strength that we could capitalize on to land significant enterprise accounts, get started with them and then really start to expand overall data platform data management platform in those accounts >>s Oh, sure, before we get into the 10 see stuff specifically. But Brian, Brian teed up some of those cloud trends and how I think about data protection. Data management absolutely has changed. You know, I remember a couple years ago we said, Oh, well, you know, people are adopting all these clouds. All of these concerns still exist. You know. It doesn't go away. It's not magically Oh, I did office 3 65 I don't need to think about all the things that I thought about without. Look, when I do public cloud and build new applications. Oh, wait. You know, somebody needs to take care of that data. So bring us inside your customers. The team that's building these products and some of those big trends should >>happen. You're still so happy to be back in the Cube. So 2019 really defined. There were a lot of for enterprises really started moving. Production will look to the cloud multi cloud become a reality for active field way. We're running production workloads on seven o'clock platforms. So the key elements off being infrastructure agnostic wherein active you can do everything in all clark platforms. Basically, infrastructure neutral was a key element. On the other element was a single pane of glass. You could have an Oracle worker running on prime with the logic application running in azure and not know the difference. S o. The seamless mobility of data was the key element. That lot of our enterprises took advantage from elective standpoint on a lot of the 10 see capabilities adds onto those capabilities and you see more of these adoptions happening in 2020. So I think 10 seat eases up absolutely perfectly for that market. >>Yeah, let's talk a little bit about activities, place in the market, that differentiation there, that direct connection with the application and the partner's eyes. Real big piece of it. >>It's a huge piece and something we really not just double triple down on in 2019. Certainly for us our database capabilities, which we believe are really second to none in the industry, we continue to expand and enrich the capabilities, including ASAP Hana obviously already Oracle and sequel server D B two, as well as the linen space databases, the new and no sequel databases. We also understood, and as our customers were talking to us about their application modernization, they were moving Maur of their front and capabilities two containers, and they wanted that the data to come with it a t east temporarily on. So that was a big focus for us as well was making sure that we could bring the data whether it was into a V M, into a container into a physical server into any number of clouds in order to support that application. At that time, it was a critical part of our differentiation. For two dozen 1 19 >>I'd love just a little more on the database piece because you go to Amazon, reinvent and you know, the migrations of databases to the cloud, of course, is a major conversation. You look at Amazon, they have a whole number of their offerings as well, as if you want to use any database out there, they'll let you use it. Course Oracle might charge him or if you're doing it on the Amazon, the Amazon partner. The azure partnership with Oracle was big news in the back and 1/2 of 2019. So when you're working with their customers, you know, databases still central to you know how they run their business and one of the bigger expenses on the books, they're So you know what we look at 2020. You know, what is the landscape specifically from a database? Well, we continue >>to see and in most of our large enterprise accounts that Oracle and sequel servers continue to dominate the majority of the payload of databases. We don't see that changing, although we do see net new applications being built on new database platforms. Thio complement the oracle and sequel server back end. So we are seeing a rise of the bongos and the new and no Sequels out there. We're also seeing Maur consideration of building in the cloud, as opposed to starting on Prem and then potentially leveraging the cloud sort of post facto and in terms of the application architecture's. So our ability to support both the the legacy big iron database platforms as well as the new generation platforms, regardless of application architectural, regardless of the geometry of the application, is a big part of our differentiation >>going forward. >>All right, so let let's Wave hinted about it. But 10 c major announcement. Let's get into how that extends what we've been talking about. >>Absolutely so you know, we've made a lot of the new databases, particularly the no sequel databases, the Mongols and Hannah's first class citizens intensity, which means we understand not just the database. He also he also the ecosystem that the database lives. We all know Hannah's a fairly big database in terms of the number of machines that consumes number off, you know, applications that you use it and toe capture and actually provide value for Hannah. You need to understand where the Honda database lifts and so some of the capabilities we've added in 10 C's to kind of figure out this ecosystem, and when you migrate, you might need the ecosystem, not just the holiday. The peace because you know that is that is a key element. On the second aspect is the containers that that Brian touched on. Now we're seeing legacy data being presented into containers, and there's a bridge too quiet for that. Now. How do you present that bridge containers could be brought up, but they're lifeless unless you give them data. So the actors of bridge ready and you bring up the container using communities of whatever framework you have and be married the data into the container framework. So most organizations, you know, as they evolved from yesterday's architecture to today's architect. And they need this bridge, which helps them navigate that that my creation process and an active field being the data normalization platform is helping them live on both segments, Right? Nobody does us turn the switch off of the old one and move to the new That'll be co exist. That is the key element >>way spent a lot of time over the last couple of years hearing about cloud native architectures and that discussion of data, it is kind of something you need to kind of dig in to understand. I'm glad to hear you talking about, You know, when you talk about storage and container ization, you know where that fits today? Because originally it was only stateless. But now we know we could do state full environment here. But while container ization is, you know, growing at huge leaps and bounds, customers aren't taking their Oracle database and shoving Brian A lot of discussion about the partnerships. I think it was seven. You know, major cloud providers. That activity is there talk a little bit about the common native. The relationships with some >>of those partners? Absolutely. I mean, way made great strides from a go to market standpoint with our cloud partners this past year. Google Cloud is probably our most significant go to market partner. From a cloud standpoint, we've done a lot of joint engineering works in order to support both our existing, uh, software platform as well as our SAS control plane in the Google Cloud. We have landed many significant deals with with Google this past year on dhe. They have been as they continue to really increase their focus on enterprise accounts and both hybrid as well as public cloud sort of architectures. We are hand in glove with them as their backup in D R partner for those club >>workloads. >>Great eso We talked quite a bit about the database peace, but in general, back into the cloud archive in the cloud. What is 10 see specifically an active you, in general, enhance in those environments >>so tense he bring It brings in you know, the key elements of the recovery orchestration. So if I have to bring up, let's say, 500 machines in any club platform, how did I do it? Well, I can go and bring up one machine at a time and take two days to bring it up or with active fuels. Resiliency. Director. You can create a recovery plan and a push pardon Recovery happens, so we've seen a lot of customers adopt that, particularly customers that want to leverage the Google platform for its infrastructure capabilities. Wants an orchestration, that is, that is, that understands the applications that are coming up, so there is a significant benefit from a PR standpoint of the recovery orchestrations will be invested a lot of time and tuning the performance and understanding Google and Amazon and Azure to make sure this was built, right. The other big push we're seeing for the clock platforms ASAP, ASAP, as an enterprise has taken a mission to say, there's no more data centers. Everything is going to the cloud. So an escapee workloads are not the easiest were close to manage. And so they did the the intersection point of S A P and the cloud is very active. Field becomes really valuable because, though, did this data sets by definition or large, their complex and there were distributed. And the D artists of paramount importance because these air crown jewels So so those segments of the R orchestration forward with, you know ASAP and Hannah, which is to get our strength of databases. It's kind of their tense. He really hits, hits, hits a home run >>when we're talking to users in the discussion of multi Cloud in general, one of the challenges is Yoon hee. Different skill sets across. One of those powerful things I've heard from active use really is a normalization across any cloud or even in a cloud. Oh, wait. I was gonna stuck six up again in an archive. That means I'm never going to touch it again. Ingress and egress fees. You know, I have to figure these out or I need toe dedicated engineer to those kind of environments. So it seems that just fundamentally the architecture that you built it active eo is toe help customers really get their arms around those multi cloud >>environments? Absolutely. And I think there are two additional components that really one of which has lived with activity from the very beginning of the company, which is a p a p I. First, the cloud is very much an AP I centric type of operating model on with active fio We don't change the management system were operating model. But in fact we incorporate in eso all of this orchestration that it shook talked about can be actuated via a P I. The second piece, which we really started in 2017 with our eight Dato platform release, is the the consumption and the intelligent consumption of object with 10 see, we've continued to advance our object capabilities. In fact, we published a paper with the SG in late 2019 that talked about mounting 50 terabyte Oracle databases directly out of object with actually increased performance versus the production block >>storage behind it. >>So we have really with 10 C, actually added cashing to even further performance optimized object workloads, which speaks to both the flexibility but also the economic flexibility of being able. Thio contemplate running workloads in the cloud out of object at a lower cost platform without necessarily the compromise of performance that you would normally expect >>absolutely. And like you said, the skill set required. Do I need to put it in object to any reported in block? We can eliminate that right. Be neutralized that to say you want to leverage the cloud, give us your cost point and you can dial the cost up or down, depending on what you see for performance, and we will be the day that back and forth, so that flexibility is enormous for customers. >>That's greater if you talk to anybody that's been in the storage industry for a while, and you want to make them squirm, say the word migration s O. We know how painful it has been if you go talk to any of the triple vendors, they have so many tools and so many service is to help do that in a cloud era. It should be a little bit easier, but it sounds like that's another key piece. Intensity? >>Absolutely, absolutely. I mean, 10 See, you know, hits the home. I think with the A P. I integration. So the other element 2019 Saul, was the scale of deployment effective. You know, when you have to manage hundreds of thousands of machines across different geo's, that is a scale that comes to the data protection that you know, people. Really? You have a seat to actually build for it and and work with it and be sorry in 2019 and 10 See, incorporates a lot of that capabilities as well, making it ask Cloud needed as possible. So basically, around these applications globally. All >>right, uh, I was wondering if you might have a customer example toe really highlight the impact that NBC's having understand if you can't name them specifically, but, uh, yeah, >>well, actually, shook has already talked about 11 customer slash partner. Who is I think still the world's largest software company in the world based out of Germany. And they are powering their enterprise cloud on the data management data protection. Beneath that enterprise cloud across four different hyper scale er's using, active you on. I think they're on record in a weapon. Our earlier in December, talking about their evaluation of pretty much every technology out there on the one that could really deliver on performance at scale across clouds was activity >>on. The key element was they wanted a single platform with a single pane of glass across all platforms, and an active feel was the solution to each other. So >>and certainly I think we credit them and are the rest of our enterprise customers for pushing us to make 10 see more powerful and more a capable across any clout, you know, Ultimately, an inter enterprise is going to make a decision that they've probably already made the decision to incorporate cloud into their enterprise architecture. What we give them is the freedom and the flexibility to choose any cloud. And, by the way, any cloud today that might change tomorrow and having the ability to seamlessly migrate and or convert from cloud eight o'clock be. Is something that active powers as well? >>Yeah, just make sure we're clear as to what's happening there. It's great that you've got flexibility there when we're talking about data and data gravity. Of course, we're not talking about just lifting an entire database land, you know, ignoring the laws of physics there. But it's the flexibility of using a ll These various things, any way Talk about A S, A P, of course, needs to live across all these clouds. But when you talk about an enterprise, you know what is kind of that? That killer use case? Because we said we're not at a point where cloud is not a utility. I don't wake up in the morning and look at the sheet and say, Oh, I'm gonna, you know, use Cloud a versus cloud be s o. You know what is? You know the importance of that flexibility for us >>today. The majority of our business starts with company saying I need to deliver my data faster to my developers or my tester's, or even increasingly, my data scientists and analysts and my data sets have become so large that it's becoming increasingly difficult for me to do that with regularity. So the currency of the data is starting to suffer. That is the first use case for us and that that powering that enterprise transformational initiative around a new application or an updated application based on a historical app using those enterprise databases delivering that seamlessly quickly, regardless of how big the data is still remains our first use case. And then, increasingly, those customers air realizing that they can start to achieve the other benefits of active eo, including I can start to back that up to the cloud. Aiken actually orchestrate recoveries in the cloud. Not just bulk sort of transfer, but actually the entire application stack. And bring that up in the cloud. I can start Thio, take those those data sets and actually amount them into containers for my next generation application. So that starting point of give me my data as quickly as possible, regardless of how big it is, starts to become universal in terms of its applicability for all use cases. >>Yeah, I guess I shook. The last thing I wanna understand from you is in 2019. We saw a lot of large providers putting out their vision for how I manage in this multi cloud environment. You were at the Google Cloud event where Anthros was unveiled. I was at Microsoft ignite when as your ark was unveiled. VM wear has things like tans you out there. So this moldy cloud environment how do I manage across these disperse environments? What? What What are all those move mean to active you on how you look at things. >>And I think you know, the Tennessee release and with the core architecture that if you had in place, which was multiple already and a P I ready. So those are the two elements that are kind of building blocks that you can tie into any one of those construct you talked about. All right, so we've had we have customers, innovated us with Antos. If customers get up service now we have customers doing Vieira with us, right? So there are many, many integration platforms. The latest I saw was an Alexa app, but we were mounting an oracle database on a voice command. So So you know, there's endless possibilities as thes equal systems evolve because active feel stays behind the cowards powering the data delivering the data available if needed on the target. So that is the key element in the neighbor that we see that helps all these other platforms become super successful. >>So, Brian, it sounds very much a hell wind. The big trends that we're seeing here keep partnerships and, you know, meeting your customers where they need to >>pay. Absolutely. We continue Thio play in the enterprise market, where these thes are absolutely top of mind of every CEO and top of their agenda. Onda, we are working hand in glove with them to make sure that our platform not only anticipates their needs but delivers on their current state of needs as well. >>Brian, thank you so much. Congratulations on the 10 sea launch Cloud containers. Copy data management. Look forward to watching your customers and your continued Thanks. As always, Very much. All right, I'm still Minutemen. Lots more coverage here in 2020. Check out the cube dot net for all of it. And thank you for watching the Cube

>> from Austin, Texas. It's Theo Cube covering your storage Accelerate 2019 Brought to you by pure storage. >> How do y'all welcome back Thio, the Cube leader In live coverage we're covering day to a pure accelerate 19 Lisa Martin With Day Volonte Welcoming to the cue for the first time from SG Mark Peters principal analyst and practice >> Oh, my apologies. So young. >> I wish I wish that was true. >> In fact, one of the first analysts I think that's true if not the first analyst ever on the Q. But, >> well, I'll say Welcome back. Thank you. We're glad to have you here. So you've been with Ishii for quite a while, You know, the storage industry inside and out, I'm sure pure. Just about to celebrate their 10th anniversary. Yesterday we heard lots of news, which is always nice for us to have father to talk about. But I'd love to get your take on this disruptive company. What they've been able to achieve in their 1st 10 years going directly through is Dave's been saying the last two days driving a truck there am sees, install, base, back of the day, your thoughts on how they've been able to achieve what they have. >> That'll last me to talk about something I really want to talk about. And I think it addresses your question. How have they been able to do it? It's by being different. Andi, I don't know. I mean, obviously you do a stack of into sheer and maybe other people have talked about that. But that is the end. When I say different, I don't necessarily mean technology. I have a kind of standard riff in this business that we get so embroiled in the technology. Do not for one second think it's not important, but we get so embroiled in that that we missed the human element or the emotional element on dhe. I think that's important. So they were very different. They created, you know, these thes armies of fans who just bought into what they did. Now, of course, that was based on initially bringing flash to the market making flasher Fordham. Well, they've extended that here with the sea announcement and other things as well, so I don't want to just focus on that, but you know, they continue to do things differently with the technology, But I think what really made them an attractive company and why they've survived 10 years on her now big sizable is because they were a different sort of company to deal with. >> Are you at all surprised that the fourth accelerate is in Austin, Texas? Dell's backyard? Yes. Well, they're disruptive. They're different. They're bold. We're okay, >> you see, But But also, did you go to the other three? >> Uh, the last two. I was trying to remind >> myself where they were. I know one was kind of on a pier in a ballpark in San Francisco. One words. You remember the one that was in that you Worf, But that was a a rusting, so cool it was. But it was a metaphor in a rusting spinning desk, right. But it was also such a different sort of place on, So I probably was also a few it D m c. But I agree. And then the last one was in some sort of constantly. Yes, So >> they were all >> different. And so I Yes, I know this is Dell's backyard. Probably literally, because I'm sure Michael owns a lot of the place. It's also kind of very normal place and so there's a little bit of me that I don't want to use the world worry. But as you grow up and of course, we've got the 10 year anniversary, we're in Austin. What's the tagline of Austin? >> I don't know. No. Keep Austin weird. Okay, >> I >> don't want to suggest appears weird, but they were always a little different, I said. That's why I think they were attracted as much as anything. Yes, that's why I had the hordes of admiring fans, all wearing their orange socks and T shirts and cheering on DDE as they get older as they get more mature as they expand their portfolio. Charlie was on stage talking not so much about scale the problem when he was asked, but more about complexity. As you get more complex, you actually get more normal on, So I don't know that weird is the word, but a bit like Austin pure needs to keep your interesting. >> I like that >> Very interesting. So >> you and I, >> we've been around a while. We were kind of students of the industry. I was commenting earlier that it's just to me very impressive that this company has achieved a new definition of escape velocity receiving a billion dollars show. First company since Nana to do it, I gotta listed three. Park couldn't do it. Compelling data domain isolani ecological left hand. Really good cos all very successful companies. Uh, >> what do you think? It's >> all coming out of >> the dot com crash. Maybe that pay part of it. Pure kind of came out of the, you know, the recession. Why >> do you >> think Pure has been able to achieve that? That you know, four x three par, for example in terms of revenues. And it's got a ways to go. They probably do 1.7 this year. I think they have aspirations for five on enough there. Publicly stated that they probably have, right? Of course. Why wouldn't they thoughts on why they were able to achieve that? What were the sort of factors genuinely know? Having no idea what you were gonna ask me. And now actually, listening to question let me You've just made me think of something that I had not really thought. So I took so long to ask the question formulated. And you are so, um, you used the word escape velocity. Let's think about planes. I mean, you know, I think it's a V one, isn't it to take off, Mitch? Maybe not the same as escape, which is in the skies. But you get the point. How long to really take off? Be independently airborne? They gave themselves. I don't know how much was by design default how it really happened? I don't know. They had an immensely long runway. You think the whole conversation about pure for years and years was Oh, yeah, yeah, they're making loads of revenue, but they lose 80 cents every time they get 50. That was the conversation for years and years. I know they've now turned that corner, and I think the difference. Actually, the more I think about it, yes. You can talk about product. Yes, you can talk about the experience. I think those things are both part of it. But the other companies you named had cool things too. They all had cool products you had. What was it? The autopilot thing with compelling. And they had lots of people cheering. Actually, in this building, I think three part was yellow and kind of cool in a different part of the market. and disruptive. But they were both trying to get to the exit fast. Whether the exit was being bought or whether it was going under. I don't know it was gonna be one or the other, and for both of them, they got bought. I don't think pure had that same intention, and it's certainly got funding and backers that allowed it to take longer. So that's a really good point. I think there's a There's a new Silicon Valley playbook. You saw it with service. Now, with Frank's limits like the Silicon Valley Mafia's Sweetman Dietzen, Bush re at Work Day, they all raised a boatload of cash and a sacrifice profits for for growth. I mean, I remember Dave Scott telling me, you know, when he came on, the board was saying, Hey, we're ready to you know, we're prepared to raise 30 million. He said, I need 80 eighties chump change today compared to what these guys were raising. Well, I mean, I think I mean, they pretty quickly raised hundreds of millions, didn't they? They weren't scraping by on 50 or 80 million, which which is what you see. You sort of want one more thought just this escape velocity idea, I think is interesting because the other thing about escape velocity is partly how long you take runway orbit, whatever. But it's the payload on, you know, The more the payload, the longer it takes the take off the ground or the more thrust you need thrust in this case, his money again. But if you think about it, this is another thing where he and I gotta say, we've been doing this a long time. The storage industry over decades has been one of the easiest industries to enter on one of the hardest to actually do well. Why is that? Because the payload is heavy. It's easy to make a box that works fast, big whatever you want in your garage. Two men on one application working for a day. It's really hard to be interoperable with every app, every other system, operational needs and so on and so forth. And so the payload to be successful. I think they understood that, too. So, you know, they didn't let ourselves get distracted by like the initial shiny, glittery we need to get out of this business. >> I love the parallels with payloads and Rockets. Because, of course, we had Leland Melvin inner keynote this morning. I'm a former NASA geek. Talk to us about your thoughts on their cloud strategy, the evolution of the partnership with a W s. We talked about that yesterday. Sort of this customers bringing this forcing function together, but being able to sort of simplify and give customers this pure management playing the software layer wherever their data is your thoughts on how their position themselves for multi cloud hybrid world. >> Okay, two thoughts, one cloud. Then you also used the word simplicity. So I want to talk about both of those things if I can, Um I don't know. I'm sorry. This is not a very good answer. I think it's the truth. I mean, you can't exist in this world if you haven't got a cloud story, and it better be hybrid or pub. Oh, are multi, whichever you prefer. I think those have very distinct meanings, by the way, but we would be here for an hour and 1/2. It'll be a cube special to really get into that. However, So you've got to do this. I mean, there is just, you know, none of the clients they're dealing with. Almost none. That's not research. I'll talk research in a second but glib statement. Everyone's got a cloud strategy. It doesn't matter which analyst company you put up the data, we'll do it. I want to talk about a cup, some research we've done in a second. But everyone will tell you a high number of people who have a cloud first strategy, whether that's overall or just the new applications or whatever. So they've got to do it. What's crucial to whether or not they succeed is not the AWS branding, because everyone's got a W s branding me people that they don't work with or will not work within the next year or two. I mean, I'm sure there's one God you look like you're anxious, you're on a roll. But simplicity is really important. So David knows we do a lot of research early yesterday, one of our cornerstone piece of researchers think all the spending intentions we do every year. One of the questions this year's Bean for a couple of years now is basically saying simple question Excuse. The overuse of the word is how much more complex is I t you know, in your experience, more or less complex. And it was two years ago. I t broadly and you know that I love this question. You know the answer on dhe. 66% of people say it is more complex now than it was two years ago. People don't want complexity. We all know that there's not enough skills around the research to back that up. A swell on dso Simplicity is really important cause who was sitting in this seat before May I think I will say that the company here was founded on simplicity. That was the point. They were to be the apple of storage. I think that's why people love them. They were just very easy to use on dso coming finally back to your question. If they can do this and keep it simple, then they have a better chance of success than others. But how do you define successful them isn't keeping their customers are getting new ones. That's a challenge. >> They do have a very high retention rate. I want to say like 140% but things like we have our dinner for two U percent attention. Yes. How did >> you do? So? So this is is interesting. It's actually 100 and 50% renewal rate. Oh, by the Mike Scarpelli CFO Math of renewal rates on a dollar value on net dollar value renewal rate subscriptions. Mike Scarpelli was the CFO of service. Now invented this model and service now had, like, 100 and whatever 1500 whatever 27. And so it's a revenue based renewal. Makes sense. Sorry for one second you're retaining more people than you >> go. 101 100 >> 50% is insane. 105 >> percent is great. Yeah, 150% is interrupted. Your question. >> Well, I'm just saying >> it's good. Good nuance, >> Yes, Thanks for clarifying its. You know, companies can say whether it's one. Appears customers are pure themselves or competitors. We are cloud. First, we have a cloud for strategy, and a company like pure can say we deliver simplicity, those air marketing terms until they're actually put in the field and delivered. So in your perspective, how does pure take what I T professionals are saying? Things are so much more complex these days? How does a pure commit and say simple, seamless, sustainable, like Charlie, Giancarlo said yesterday. And actually make that a reality. Well, I >> mean, obviously, that's their challenge, and that's what they have work to do to some degree. And this comes back to what I was saying that to some degree it becomes self fulfilling because your that's why your customers come back with more money because they bought into this on. So as long as they're kept happy, they're probably not going to go and look at 20 other people. I'm not saying they never had any of that simplicity to start off with, but it's very interesting if you go to a pure event, their customers and this might be sacrilege sitting in this environment don't talk about the product. They talk about the company, >> right? >> The experience There's that word again, off being appear customer yes on So they're into it. They brought into whatever this is, and as long as the product, please do not strike me down is good enough. I'm not saying that's all it is. I think it's a lot better that, but as long as it's good enough, but you're really well looked after a few minutes ago, when I'm saying that's why I think this market is about so much more than just how fast can you make the box? How big can you make the box? How smart can you make the box? All of those are interesting, But ultimately, I'm only looking at Dave because he's so old. Ultimately, technology is a leapfrog game. Yeah, branding is not >> Beaver >> s O. So that's a good point. But we've not seen the competitors be able to leap frog pure or be able to neutralize them the way, for example, that DMC was able to somewhat neutralize three par by saying, Oh, yeah, we have virtual ization, too, you know, are thin provisioning. Rather. Yeah. And even though they had a thin provisioning bolt on, it was it was good enough. Yes, they did the check box. You haven't seen the competitors be able to do that here? I'm not saying they won't, but are they? I think, um, I was going to say basically this on my MBA, but I don't have one, so I can't say that, but, you know, I've read that. Read the books. If you look at Harvard Business School cases, I think the mistake made by the competition was to assume that Pierre would go away, that they would each try it or that it would fail on will make fun of the fact they don't make any money for the first few years on dhe. You know, the people going to them, we're gonna be sadly mistaken when they can't handle these features, whether that be cloud or whether that be analytics or fresh blades or whatever else again to add on. They thought they would just go away that there are great parallels in history when you let competition in and you just keep thinking at each point they're going to go away. Spot the accent. British motorcycle industry. When the Japanese came in, they literally said, Well, let them. There are records. We'll let them have the 50 cc market because we don't really care about that. But we'll make the big bikes Well, Okay, well, let them have 152 100 cc because really, that doesn't matter. And 10 years later, there was no industry well, and I think what happened with the emcee in particular because, let's face it, pure hired a bunch of DMC wraps. They took your product and, as I've said before, they drove a truck to the the symmetric V n X install base Emcee responded by buying X extreme io and they said, You know what? We're sick of losing the pure. We're gonna go really aggressive into our own accounts and we're gonna keep them with flash. And then what happened is their accounts. It Hey, we're good. We don't actually really need more stores because the emcee tried to keep it is trying to keep both lines alive. And now they're conflicted, pure. You know, I had a what? We're mission. >> You thought not up a great point. Sorry. Just just because I think >> thing about that is if you look at how e. M. C using my words accurately usedto act, I think you said that, too. So I'm not criticizing Adele is they were exceptional organized marketing organization. We go that way. And if you're not going that way, you got a big problem both as a custom, Miranda's UN employees. But the problem with that is also is that way would sometimes become that way, and then it become that way on the product depending what was doing well. So, for example, they had, you know, tens of thousands of feet, all marching to the extreme. I owe beat for a few quarters, and then they would go off on to the next product pure. Just carried on, marching to its beat down that runway escape velocity question >> appoint you brought up a minute ago before we wrap her. That I think is really interesting is that you write your customers talk about the experience. I think we were talking with a customer yesterday. Dave was asking, Well, what technologies are you think he started talking about workloads? So when we're at other events, you hear other names of boxes brought up here to your point. It is all about the experience so interesting and how they're Can you continuing to just be different, but to wrap things up since they're in my ear, we're almost that time. I just wanna take a minute to ask you kind of upcoming research. What are some of the things that you're working on? Their really intriguing you and SG land. I think right >> now, from my perspective, I mean, as a company would continue to do 27,000 different things because there's so much going on in the market. So whether that's security is massive area of focus right now, even improvements in networking. So it's not just the regular run of the mill, you know, Bigger, faster, cheaper. Which is always there s o A. I, of course, in all these again, you may both know you will now doesn't mean we're always looking at buying intentions rather than counting boxes. So it's really where people are moving over the next few years. That said to May. I think what's really interesting is to other things. Number one is to what extent can. I don't think we can really measure this easily. But to what extent can we get people talking about pure again to acknowledge that emotions, attitudes, experiences are an important part of this business? I'm old enough that I'm not scared of saying it, and I think pure is a company is not scared of saying it, you know, I think a lot of companies don't want to admit that Andi all know that they have different corporate cultures and mantras and views on their customers reflect that two on The other thing just generally is the future of I t. As a whole. I know that. So, I mean, I'm doing this because none of us really know what that is, but, you know, clearly way gotta stop talking about the cloud At some point. It's just part of I t. It's not a thing as such. It's just another resource that you bring to bear. I don't know that we're yet at that point, but that's >> got to happen. >> Interesting. Thanks for looking. I'm imagine this was a crystal ball. But Mark, I wish we had more time because I know we could keep talking. But it's been a pleasure to have you >> got the whole multi cloud hybrid cloud for an hour and 1/2. >> We come back, we'll have that discussion. Like what I'll means and yeah, back anytime. >> Excellent. Thank you for joining David. Me. Thank you for David. Dante. I'm Lisa Martin. You were watching the Cube from pure accelerate 19

>> Hey, welcome back already, Jeffrey. Here with the Cube, we are high Top San Francisco in the Salesforce Tower and the brand new A century's Thean Novation hub opened up, I don't know. Six months ago or so, we were here for the opening. It's a really spectacular space with a really cool Cinderella stare. So if you come, make sure you check that out. We're talking about a cloud in the evolution of cloud and hybrid cloud. And clearly two players that are right in the middle is helping customers get through this journey and do these migrations. Our center and h. P. E s were excited to have our next guest, Melissa Bessie. She is the managing director, Intelligent cloud and infrastructure strategic partnerships at a center. Melissa. Welcome. And joining us from HP is David Stone. He's the VP of ecosystem sales. They have a great to see you. >> Thanks for having me. >> So let's just jump into it. The cloud discussion has taken over for the last 10 years, but it's really continuing to evolve. It was kind of this this new entrance with aws kind of coming on the scene. One of the great lines of Jeff Basil's talks about is they had no competition for seven years. Nobody recognized that the the bookseller out on the left hand ah, edges coming in to take the river structure business. But as things have moved to Public Cloud, now there's hybrid cloud. No, no. All applications or work clothes are right for a public cloud. So now, while the enterprises are trying to figure this out, they want to make their moves. But it's complicated. So first of all, let's talk about some of the vocabulary hybrid cloud versus multi cloud one of those terms mean to you and your customers started Melissa. >> Sure. So when you think of multi cloud, right, we're seeing a big convergence of I would say multi Kludd operating model that really has to integrate across all the clouds. So you have your public cloud providers. You have your sass like, uh, sales force at work day, you have your pass right? And so when you think of multi cloud, any customers goingto have a plethora of all of these types of clouds and really being able to manage across those becomes critical. When you think of hybrid cloud hybrid cloud is really thinking about the placement of ill. We usually look at it from a data perspective, right? Are you going to put your data in the public or in the private space? And so you can't look at it from that perspective, and it really enables that data movement across both of those clouds. >> So what would you see? David and your, uh, your customers? I say that a >> lot of the customers that we see today or confused right the people who have gone to the public cloud have scratched their heads and said, Jeez, what do I do? It's not as cheap as I thought it was gonna be. So the ones who were early adopters or confused the ones who haven't moved yet are really scratching their head as well, Right, because if you don't have the right strategy, you'll end up getting boxed in. You'll pay a ton of money to get your data in, and you'll pay a ton of money to get your data out. And so all of our customers, you know, want the right hybrid strategy, and I think that's where the market and I know a center and HPD clearly see them, the market really becoming a hybrid world. >> It's interesting, Melissa, You said it's based on the data, and you just talked about moving data in and out where we more often hear it talked about workload. This kind of horses for courses, you know, it's a workload specific should be deployed in this particular kind of infrastructure configuration. But you both mentioned data, and there's a lot of conversation kind of pre cloud about data, gravity and how expensive it is to move the date and the age old thing. Do you move the compute to the data, or do you move the data to the compute? A lot of advantages if you have that data in the cloud, but you're highlighting a couple of the ah, the real negatives in terms of potential cost implications. And we didn't even get into regulations and some of the other things that drive workloads to stay in the data center. So how should people start thinking about these variables when they're trying to figure out what to do next? >> Ex enters position Definitely like when we started off on our hybrid cloud journey was to capture the workload and once you have that workload you could really balance. It's the public benefits of speed, innovation and consumption with the private benefits of actually regulation, data, gravity and performance. Right? And so our whole approach and big bet has been able is been to basically we had really good leading public capabilities because we got into the market early. But we knew our customers were not going to be able to migrate their entire estate over to public. And so in doing that, we we said, OK, if we create a hybrid capability that is highly automated, that is consumed like public, Um and that is standard. We'd be able to offer our customers a weight of pick, really the right workload in the right place at the right price. And that was really what? Our whole goal waas. >> Yeah, and so just the Adama Melissa said, I think we also think about at least, uh, you know, keeping the data in a place where you want but then being cloud adjacent. So getting in the right data centers and we often use the cloud saying to bring the cloud to the data right? So if you have the right hybrid strategy. You put the data where it makes the most sense where you want to maintain the security and privacy. Ah, but then have access to the AP eyes and whatever else you might need to get the full advantages of the public cloud. >> Yeah, and we hear a lot of the data center providers like quinyx and stuff talking about features like Direct Connect and Noted Toe have this proximity between the public cloud and the and the stuff that's in your private cloud so that you do have no low latent see, and you can when you do have to move things or you do need to access that data. It's not so far away. Um, I'm curious about the impact of companies like Salesforce with Salesforce Tower here in San Francisco at the Centre Offices and Office 3 65 and Work Day on how kind of the adoption of the SAS applications have changed. The conversation about Cloud or what's important and not important, needs to be security. I don't trust eating outside my data center Now, one might argue that public clouds are more secure in some ways than in private cloud. You have disgruntled employees per se running around the data centers on plugging things. So how? How is the adoption of things like Officer 65? Clearly, Microsoft's leverage that in a big way to grow their own cloud presence changed the conversation about what's good about Cloud. What's not good about Chlo? Why should we move in this direction? But if you have thought >> no, look, it's a great question, and I think if you think about that, his Melissa said, the use cases right and Microsoft is have sex. Feli successfully pivoted their business to it as a service model, right? And so what I think it's done is it's opened up innovation, and a lot of the sales forces of the world have adapted their business models. And that's truly to your point, a sass based offer. And so when you could do a work day or a salesforce dot com implementation shirt, it's been built that it's tested and everything else I think, what then becomes the bigger question in the bigger challenges. Most companies air sitting on 1000 applications that have been built over time, and what do you do with those? And so in many cases, you need to be connected to those SAS space providers. But you need the right hybrid strategy again. To be able to figure out how to connect those SAS based service is to whatever you're gonna do with those 1000 workloads and those 1000 workloads running on different things that you need the right strategy to figure out where to put the actual workloads and is people they're trying to go. I know one of the questions that comes up is Do you my grade or do you modernize? And so as people put that strategy together, I think how you tied to those SAS based service is clearly ties into your hybrid strategy, >> I would agree. And so, as David mentioned, right, that's where the clouded Jason see, you're seeing a lot of blur between public and private. I mean, Google's providing bare metal is a service, so it is actually dedicated hybrid cloud capabilities. Right? So you're seeing a lot of everyone. And as as David talked about all of the surrounding applications around your s a P around Oracle, when we created our ex enter hyper cloud, we were going after the enterprise workload. But there is a lot of legacy and other ones that need that data and or the sales force data, whatever the data is right and really be able to utilize it when they need to in a real low leagues. >> So let's I want to get unpacked. The ah central hybrid cloud. Um, what is that exactly is that is that your guys own cloud is, you know, kind of a solution set. I've heard that mentioned a couple of times. So what is the centre? Hyper cloud? >> So eccentric hybrid cloud was a big bet we made as we saw the convergence of multi cloud. We really said, We know we everything is not gonna go public and in some cases it's all coming back. And so customers really needed a way to look at all of their workloads, right? Because part of the issue with the getting the cost of the benefits out of public is the workload goes. But you really don't earn able to get out of the data center. We terminate the wild animal park because there's a lot of applications that right Are you going to modernize? Are you goingto let them to end of life? so there's a lot of things you have to consider to truly exit a data center strategy. And so its center hybrid cloud is actually a big bet we made. It is a highly automated, standard private cloud capability that really augments all of the leading capability we had in the cloud area. It is it's differentiated women, a big bet with HP. It's differentiated on its hardware. One of the reasons when we're going after the enterprise was they need large compute. They have large computer and large storage requirements, and what we were able to dio is when we created this used some of our automation differentiation. We have actually a client that we had an existing Io environment. We were actually able to achieve some significant benefits just from the automation. We got 50% in the provisioning of applications. We got 40% in the provisioning in the V m on, and we were able to take a lot of what I'll call the manual tasks and down Thio. It was like 62% reduction in the effort as well as a 33% savings overall in getting things production ready. So this capability is highly automated. It will actually repeat the provisioning at the application level because we're going after the enterprise workloads and it will create these. It's an asset that came from the government. So it's highly secured. Um, and it really was able to preserve. I think, what our customer needed and being able to span that public private capability they need out there in the hybrid world. >> Yeah, you could say I don't know that there's enough talk aboutthe complexity of the management in these worlds. Nobody ever wants to talk about writing this a sideman piece of the software, right? It's all about the core functionality. Let's shift gears a little bit. Talk about HBC. A lot of conversation about high performance computing, a lot going on with a I and machine learning now, which you know most of those benefits are going to be realized in a specific application, right? It's a machine learning or artificial intelligence apply to a specific application. So again, you guys big, big iron and been making big iron for ah, long time. What is this kind of hybrid cloud open up in terms of HB Ito have the big, heavy big heavy metal instead it and still have kind of the agility and flexibility of a cloud type of infrastructure. >> Yeah, no, I think it's a great question. I think if you think about what HB strategy has been in this area and high performance compute, we bought the company SG eye on. As you've seen, the announcements were hopefully gonna close on the Kree acquisition as well. And so we see in the world of the data continuing to expand in huge volumes, the need to have incredible horsepower to drive that associated with it. Now all of this really requires Where's your data being created and where's it actually being consumed? And so you need to have the right edge to cloud strategy and everything. And so in many cases, you need enough compute at the edge to be able to compute in do stuff in real time. But in many cases, you need to feed all that data back into ah, Mother Cloud or some sort of mother HP, you know, e type of high performance, confused environment that can actually run the more advanced a I in machine learning type of applications to really get the insights and tune the algorithms and then push some of those AP eyes and applications back to the edge. So it's it's an area of huge investment. It's an area where because of the late and see, uh, and you know things like autonomous driving and things like that. You can't put all that stuff into the public cloud. But you need the public cloud or you need cloud type capability if you will have able to compute and make the right decisions at the right time. So it's about having the right computer technology at the right place at the right time. The right cost and the right perform a >> lot of rights. Yeah, good opportunity for a center. So I mean, it's it's funny as we talk about hybrid cloud and and that kind of new new verbs around Cloud and cloud like things is where we're gonna see the same thing. Kind of the edge, the edge versus the data center comparison in terms of where the data is, where the processing is because it's gonna be this really dynamic situation, and how much can you push out? I was like the edge because there was no air conditioning a lot of times, and the power might not be that grade. And maybe connectivity is a little bit limited. So, you know, EJ offers a whole bunch of different challenges that you can control for in a data center. But it is going to be this crazy kind of hybrid world there, too, in terms of where the allocation of those resource is. Are you guys getting deeper into that model, Melissa? >> So we're definitely working with HP again to create some of all call it our edge. Manage. Service is again going back to what we're saying about the data, right? We saw the centralization of data with a cloud with the initial entrance into the cloud. Now we're seeing the decentralization of that data back out to the edge. Um, with that right in these hybrid cloud models, you're really going to need. They require a lot of high performance compute, especially for certain industries, right? If you take a look at gas, oil and exploration, if you look at media processing right, all of these need to be able to do that. One of the things and depending on where it's located, if it's on the edge. How you're gonna feed back the data as we talked about. And so we're looking at How do you take this foundation? Right. This all colonic center hybrid. Um, architecture. I take that and play that intermediate role. I'm gonna call it intermediary. Right, Because you really need a really good you know, global data map. You need a good supply chain, right? Really? To make sure that the data, no matter where it's coming from, is going to be available for that application at the right time, with right, the ability to do it at speed. And so all of these things air factors as we look at our hole ex center, hybrid cloud strategy, right? And being able to manage that EJ decor and then back out to cloud exactly >> right. And I wonder if you could share some stories because the value proposition I think around cloud is significantly shifted for those who are paying attention, right? It's not about cost. It's not about cost savings. I mean, there's a lot of that in there, and that's good. But really, the opportunity is about speed, speed and innovation and enabling more innovation across your enterprise. with more people having more access to more data to build more APS and really to react. Are people getting that or they still the customer still kind of encumbered by this this kind of transition phase. They're still trying to sort it out. Or do they get it? That that really this opportunity is about speed, Speed, speed? No, >> go ahead. I mean, we use a phrase first offices here. No cloud, right. So to your point, you know, how do you figure out the right strategy? But I think within that you you get what's the right application and how do you fit it into the overall strategy of what you're trying to do? >> And I think the other thing that we're seeing is, um, you know, customers are trying to figure that out. We have a whole right. When you start with that application map, you know, there could be 500 to 1000 workloads, write applications. And how are you going to some? You're gonna retain some? You're gonna retire some. You're gonna reap age. You're gonna re factor for the cloud or for your private cloud capability. Whatever it is you're going to be looking at doing? Um, I think, you know, we're seeing early adopters like even the papers killers themselves, right? They recognize the speed. So, you know, we're working with Google. For instance. They wanted to get into the bare metal as a service capability. Write them, actually building it. Getting it out to market would take so much longer. We already had this whole ex center hybrid cloud architecture that was cloud adjacent, so we had sub millisecond latency, and so their loved ones, Right? Everyone's figuring out that utilizing all of these, I'll call it platforms and pre book capabilities. Many of our partners have them as well is really allowing them that innovation, get products to market sooner, be able to respond to their customers because it is, as we talked about this multi cloud were lots of things that you have to manage if you can get pieces from multiple plate, you know, from a partner right that can provide Maur of the service is that you need it really enables the management of right, >> right, So gonna wrap it up. I won't give you the last word in terms of what's the what's the most consistent blind spot that you see when you're first engaging with a customer who's who's relatively early on this journey that that they miss that you see over and over and over. And you're like, you know, these are some of the things you really gotta think about that they haven't thought about >> Yeah, so for me, I think it's the cloud isn't about a destination. It's about an experience. And so how do you get you talked about the operations? But how do you provide that overall experience? I like to use a simple analogy that if you and I needed a car for five or 10 or 15 minutes, you go get a new bir. Uh, because it's easy. It's quick. If you need a car for a couple days to do a rent a car, we need a car for a year. You might do at least you need a car for 34 years. You probably buy it right. And so if you use that analogy and think whom I need a workload or in the application for 56 years putting something out, persistent workload that you know about on a public cloud, maybe the right answer, but it might be a lot more cost prohibitive. But if you need something that you can stand up in five minutes and shut right back down, the public cloud is absolutely the right way to go is long as you can deal with the security requirements and stuff. So if you think you think about what are the actual requirements, is it costs is a performance. You've talked about speed and everything else it really trying to figure out you get an experience and the only experience that can really hit you. What you need to do today is a having the right hybrid strategy and every company and a century was out way in front of the market on Public Cloud, and now they've come to the realization, and so has many other places. The world is going to be hybrid, and it's gonna be multi cloud. And as long as you can have an experience and a partner that can manage, you know, help you to find the right path, you'll be on the right journey. >> I think the blinds, but we run into is it does start off as a cost savings activity, and they're really. It really is so much more about how you're going to manage that enterprise workload. How are we gonna worry about the data? Are you gonna have access to it? Are you gonna be able to make it fluid, right. The whole essence of cloud, right? What? It What it disrupted was the I thought that something had to stay in one place, right? And that you were the real time decisions were being made where things needed to happen. Now, through all the different clouds as well as that, you had to own it yourself, right? I mean, everyone always thought Okay, uh, I'll take all of the I T. Department. Very protective of everything that wanted to keep. Now it's about saying, All right, how do I utilize the best of each of these multi clouds to stand up? What? I'll call what their core capability is as a customer, right? Are they do in the next chip design or hey, you know, doing financial market models right? That requires a high performance capability, right? So when you start to think about all of this stuff, right, that's the true power. Is is having a strategy that looks at those outcomes. What am I trying to achieve in getting my products and service is to market and touching the car customers I need versus Oh, I'm gonna move this out to an infrastructure because that's what God will save me. Money, Right, Bench. Typically the downfall we see because they're not looking at it from the workload of the application. >> Same old story, right? Focus on your core differentiator and outsource the heavy lifting on the stuff that that's not your core. All right, Well, Melissa David, Thanks for taking a minute and really enjoyed the conversation. Is Melissa? He's David. I'm Jeff. Rick, you're watching. The Cube were high above the San Francisco skyline in the sales force. Tyra. The essential innovation up. Thanks for watching. We'll see you next time.

>> Narrator: Live from Orlando, Florida, it's the Cube, covering ServiceNow, Knowledge 17. Brought to you by ServiceNow. >> Welcome back to Orlando, everybody, my name is Dave Vellante and I'm here with my co-host, Jeff Frick. This is day two of ServiceNow, Knowledge, and this is the Cube, the leader in live tech coverage. Bart Murphy is here, he's the CTO of York Risk Services, and he's the CIO and CTO of CareWorks, Cube alum. Bart, good to see you again. >> Great to see you guys. So we were talking off camera, Mark came over, we're talking about the CIO Decisions, you participated in that last year as well. What have you been doing at the conference? What are you seeing that's interesting? >> Well I've been attending the sessions and you just mentioned the CIO Decisions, that was my day yesterday. Great opportunity to get you know, great speakers, we mentioned a few of them that spoke yesterday, but also there were some customer round tables that allowed you to collaborate with your peers over a few areas, and sort of discuss what's working for them, what's not. You know, what their road map looks like, how they're selling that to the board, those type of things. It was a very productive day. >> So, since we last talked, what have you been working on? We had a great discussion last year on security, I'm sure things have changed there, they keep evolving. What kind of things you've been working on, what are some of the initiatives that are new? >> Yeah, so last year we did talk about that and my desire, I was somewhat excited when I started to see the new play into SecOps with ServiceNow. So we've now gone live with SecOps. We're continuing to mature our security posture as a company, and I think that's, when you look at a road map or you're looking at things, what we want to see is continual capability maturity in our security space. One, we need to be there, right? As an organization, we're a services organization. We also want to just make sure that we're continuing to get better and automate. So we saw SecOps as a real opportunity for that. So we've now gone live, we've deployed that. We did it and integrated that with certain tools that we have, Tanium, LogRhythm, Symantec, some of our scanning tools. What that's allowing us to do is look at a wide range of log information, parse through that in order to automate certain types of work flows and cases. So whether it be as simple as finding an end point that say has an outdated Symantec update and having that automatically update, or create a case because it can't push the automation, those type of things we're trying to do now to try to raise the level of our security and start weeding through all the noise that's out there, that's provided with all the tools that we have. >> How did you find the integration? >> Well, we did the integration ourselves, and we found the integration, compared to some other products that we've done in the past, to be much smoother. You know, I think this is a later product that they've built into their platform. I think they've taken into account implementation, so some of the integrations were out of the box like the Tanium, others, we built those integrations. So, and we also, I think I may have mentioned this, not sure if I did, when I looked at my incident security response plan and the way I developed that, I developed it very closely to what was coming out of the box with ServiceNow. I wanted to make sure that our policies, procedures, process for that really just met out-of-the-box functionality, so we didn't have to do a lot of customization and configuration there, and we could focus on the technical integrations that really provide some of the power of the automation with the CMBB. >> Speaking of sort of custom work, you talk about M and A, you mention you get a mulligan coming. >> Bart: Yeah. >> Talk about that a little bit, kind of unwinding some of the custom mods. >> Yeah, so we have multiple instances of ServiceNow, and over the last year we've been building our newest instance with York Risk Services Group, that's our total company. And I'm in the process now of taking what we built for CareWorks, you know, we have been a customer since 2010, and really learning what we did well there and what we didn't do well. In addition to the fact that a lot of customization that we did on that platform is no longer really required, that's how much the platform has matured with ServiceNow. >> Which one was it, which release, do you remember? >> Oh gosh, Berlin, probably. >> Berlin, right, right. >> Early, early on if I'm accurate, from the very beginning. And you know GRC was an example where we did a lot of customization because that product just is night and day compared from where it is today. >> Jeff: Right >> So now we get a new opportunity to look at our process to see, say, is this something that we really need to keep the customization, or can we leverage the platform better, and by the way, even if we do have to do customization, can we do it a better way? So it is a little bit of a mulligan, from that standpoint, we get a sort of fresh start on a platform that we understand even better now, and we're doing it at a larger scale, so we're trying to really look at those automation opportunities so we can gain the efficiencies that we need. >> So I wonder if you can talk about the sort of business impact that you've seen over the years. You've been a long-time ServiceNow customer, and it just feels like this whole ecosystem is on the steep part of the s-curve now. Maybe describe the sort of business impact in whatever terms make sense. >> Well, I think partly supporting consolidated shared services, whether it's in IT or other areas of the business, and even finding areas of the business that aren't doing a good job of tracking their work today. And it still exists, in I think every organization. I was mentioning, you know, another area that we're looking at that we'll most likely deploy this year or early next year, I would assume this year, is the HR Case Management. >> Dave: Mmm hmm. >> That's an area very similar to IT, very similar to other areas that we've built use cases within ServiceNow, where things are done primarily through email. It's very inefficient, they don't have very good metrics to understand how much support they're providing the organization. They're pressured just as I am from an SG&A perspective, to do more with less. And the only way we're going to be able to continue to do more with less is to provide some level of automation and stay consistent with it. So when I started looking at ServiceNow, and yes, we're probably on that s-curve too. We've done some really good work on the automation side, but now with the platform, with what they're doing with some of the analytics, what they're, you know, I know what they're going to do with machine learning, what we can do with some of the predictive stuff. How can we take a security instance, for example, have it remediate itself and then inform us on what it did? Those are the type of things that I think's going to bring us way sharp up on that curve. I mean we've done a good job, we're very technical, we've done a good job automating, I'm not, but for what we can do I think over the next three to four years with this platform and the automation, is going to be a game changer for us and we're going to need that. 'Cause you know our SG&A can't grow at the same rate. You want to have that margin improvement, and this is one of the areas that we can use a platform to do that. >> It's interesting, you're, always a lot of talk about automation when we're here. >> Yeah. >> Different automated processes and make them easier. But you mentioned before we went on air, you just mentioned it again, that the desire to get measurement on the process as the primary driving factor, 'cause you just can't measure that which is in email and all these disparate systems, and now you can actually use the motivation of measurement so then you can get improvement as a primary driver to implement it. >> Yeah, I mean one of our core values is to be a data-driven decision making company. And you can't improve what you can't measure. And there's still to this day a lot of these processes that we take for granted. You know, SecOps, HR, operation service center, claim setup. We think we're doing a good job managing it and understanding the productivity of it, but we don't have really good tools in place or they're very disparate. So if we can get that into one CMDB, we can start to leverage automation. Once we start to measure it, we truly can start to see that business value, 'cause we can see those measurements go down. So whether we're using out-of-the-box performance analytics now, you know we started originally, performance analytics was a separate product. On the new York one, again, that's another benefit, we just turn it on, right? And there's already really good, rich data that it's giving us to stay, and we can compare that against our previous performance, whether it's incidents, closing rate, you know all these type of things out of the box. So I can start to show improvement. It's not to say that we don't have areas to improve, we do. There are things outside of ServiceNow that we need to do to improve our overall capability. So whether you're talking leveraging orchestration within ServiceNow but then I need a deployment tool to actually go and do that work. So that's where Tanium comes into play, so there's other strategies we're deploying to say where can we get the full life-cycle of that automation? And that's where engineering discipline and bringing that to your supply chain of activities is key. >> The other thing that you mentioned that kind of flipped it on its head, is you talked about your incidents response plan and trying to make it pretty much as out of the box from ServiceNow as possible. Was that because you just kind of went with the custom, or now are they delivering more best practices in the way that configuration comes out of the box that you don't really have to think about it. >> Yeah, I mean absolutely. >> You can presume best practices, because that's how it's preconfigured out of the box. >> Yeah, and I don't think they tout that, and I understand why, but they're getting feedback from a ton of customers on how to build a process in the most efficient way. I don't think they're doing it in a vanilla way. I think they're doing it in an efficient, robust way. So I think they are at that point where there's a lot of things that come out of the box that people really need to pay attention to. Like I understand that we may have done it this way, but this way is more than sufficient. And if it means that I don't have to customize and I can make my upgrades even easier than they are today, 'cause they aren't that painful at all, on the ServiceNow front, then why not? And then we can benefit from their maturity on the platform, because they're going to continue to add in releases and add in functionality just like we saw over the last two days. >> Back to the sort of s-curve, it sounds like you're getting in the position now to get real operating leverage almost like Metcalf's Law. The first one you get some benefit, but the nth one, boy that's when it really kicks in. >> I hope so. That's what I'm, I think right now we've spent a lot of time and energy getting onto one platform, right? Whether it's from all the acquisitions, whether it's from an older instance to a newer instance. I think once we get critical mass on that platform, yes, the automation stuff will make a marketable difference. We've done some great things for our business but I think once we get everybody on one platform and we get that true understanding of how we want to do our enterprise process and we have some other uplift in our areas and systems. You know, Tanium's a new product that we have. We're looking potentially HRIS, there's other things at play that will play in the ecosystem. And as we mature those and really understand what our end game's going to be, I think that's where we have that power. >> One of the speakers at CIO Decisions this week was author Daniel Pink. We had him on the Cube, talk about selling is human. When you run a business case, you talked about the HR, moving into HR, do you go sell, do you make the business case, are they coming to you, is it push/pull, how does it work? >> A little bit of both. As a CTO and as any executive, I listen to Daniel as well and I'm a firm believer that we're all in sales. All of us are part of some type of revenue-generating company, okay, and if we don't take that to heart, and we just think that we're some cog in a wheel in somebody else's problem, shame on you. No company's going to grow without a full company of great sales people. They're either advocates for their brand, they understand the mission, they understand what they're doing for the mission. So from a sales perspective, certainly I'm going around trying to tell people about the capability of ServiceNow. I saw the CEO speak yesterday too and one thing that struck me that I think a lot of people need to do, is he's spent a lot of time over the last 49 days trying to understand the vernacular of IT. You know, he was the CEO at some large companies, they all had IT, now he's at an IT company. And so he's trying to really understand the speak and some of the capabilities that you have to understand. He's got a better appreciation of it. It's my job, really, to be able to do that type of evangelism within our company to say here are some of the platforms that we have and here are some of the capabilities and at least start the conversation. I will tell you that other times I have people come to me because they've either heard from someone else that they're using it at their company and their HR team loves it, or what's it about? But I need to go around and say I see you guys doing this and we have a platform that's totally made for that. It's why it was built. Let's have a demo or let's start looking at how you think that would improve your guys' productivity. You're stretched for resources, I'm stretched for resources, and just come at it from a common problem statement perspective. Then we build the business case from there. >> I see. So we hear a lot of the announcements this morning, Jacarta, another release. What do you, and so there's a lot of things they did in there, performance improvements, UI improvements and things like that, bringing in intelligent automation, a lot of really good, cool things in there. What's, from your mind, on their to-do list? What kinds of things, I mean, are they doing the types of things that you want them to do, is there something big that could really make a difference to your business? >> Yeah, I wish I was like the ServiceNow product visionary. (laughing) But I'm not, I got to commend 'em. I think they're doing some pretty darn good things. When you start to look at SecOps and its play into GRC and the way that you really start to automate some of your controls, which are a huge component of, I'm not going to say waste within your organization, but they take a lot of time, and they bring value, don't get me wrong, but they aren't bringing...they're not bringing in revenue, they're a lot of compliance and they're good practices, so the more we can automate some of those they're high value but you want your team working on other innovation type of stuff, I think the better. When they start looking at what they're doing with the data now, everybody's becoming a data company, everybody's talking about machine learning. Everybody's talking about AI. I think that is the next place that they got to get to. If they can start to generate, again, some of that low value work, whether it's automating an entire incident end to end. I mean, there's insurance companies out there that are doing that, right, trying to automate a claim end to end. So I think the more they can look at their domain and determine ways to automate an entire workflow, which they are well on their path. They've been doing that from a workflow automation perspective for years. Now take it into AI to do it, I think they're going to be in a good position, a better position than I am in, probably if I was to develop that myself. >> Right. >> So I think that will help me scale from a user support perspective and just workflow in general, service management perspective. >> So you might not be the product guru going forward, but the thing you know probably better than a lot of people under the 15,000 is how to get people to adopt a platform. I wonder if you can share some of your tips and tricks to fellow practitioners to convince the people to don't pick up the phone, you know, put it in the platform? >> Yeah, it's evangelism. You got to get out and educate people on what the platform's about. As a procurer of the platform, you know and ServiceNow is not a cheap solution, and nor should it be. I think you need to go and justify, I'm getting this platform and it's up to me to make sure that we're going to leverage those dollars as much as possible. So anything I buy I want to make sure we're leveraging it as much as we can within the organization. I'm also a firm believer, I understand that reality hits and it's not going to happen overnight. So how do you build a backlog and start really working through that? We do an agile process, we're doing releases every two weeks. We're trying to, I may take an opportunity in IT but then the next one I want to do is going to be in the business. Or it's going to be with security or it's going to be with HR. Trying to get winds across the spectrum instead of trying to take big projects. Big projects take time, you know, there's a lot of little things that I can do to whet their appetite, on boarding, off boarding, transfers, HR started to get familiar with ServiceNow and what it could o just in that space. That whet their appetite, then, to have a more serious discussion about case management, right, which we're still having. So I think trying to figure out how you can handle a backlog of smaller hit items to get winds, will allow you to get a little bit more credibility if you start looking at a more wholesale change to their entire business, which this would be, a wholesale change to their business. >> You have kind of this dual role of CTO and CIO. Over the last several years, so much has changed in information technology, cloud, infrastructures, code and now you're seeing containers explode, the whole sassification of softwares eating the world, obviously service management is playing a big part there. Now AI, the whole big data meme. How has the CIO role evolved and changed and how has that affected you? Particularly the CIO piece, and you know, the CTO piece as well, I guess. Technology's always there, the CTO has got to be following that. But the CIO role seems to be changing quite dramatically. >> I think each organization's a little different. The way I look at it is, and some organizations, and maybe it's just me, some people see a CIO as an operational guy or girl, and some of them see their CTO as going out and looking at new technology. The way I, and why I sort of have the title of the CTO is I never want to have a build and run type of organization. I don't want to have a marginalized CIO that's basically just keeping the lights running, maybe keeping enterprise systems up. We need to be innovative as an entire team and those assets that we build, the same people need to support them, because, man, they build much better assets if they have to support them, let me tell you. (laughing) I think the role is changing whether you use the term CTO, CIO, you know, who is that person that's going to help ensure that you're not only looking at new platforms but not, I don't want to just spend all my time looking at new platforms or looking at new innovations. And certainly want to be aware of the trends. What's the right time to look at that for your organization? Some would say you always need to be on top of all of that, and I don't need to be on top of every AI vendor or data analytics company. What I need to understand is within the context of our organization, our financial structure, where we are as a maturity as an organization, where are the tools right now that can really make a major lift? And sometimes those aren't the most recent platforms. Sometimes they aren't the gold-standard platforms, sometimes they're just grunt and hard work. So I think the role, I hope the role evolves into where somebody takes ownership of all that and it's not carved up. Now, I think there are, even in our organization, there's a place. We have a Chief Innovation Officer, who is staying on top of some of the front-end stuff dealing with our industry. And that's a fine model as well. But I don't like breaking up between operations and development work and innovation. I like to make sure that those are all in sync. I think that's where you don't get a lot of rogue IT, a lot of shadow IT, because ultimately somebody's got to support it, and we want to make sure that that support cost is as lean as possible. >> That's a great answer, steeped in accountability, Bart. It's always great having you on the Cube. Thanks so much for coming on. >> Thank you guys, it's a pleasure to see you. >> All right, good to see you. All right, keep it right there everybody, we'll be back with our next guest, this is the Cube live from Knowledge 17. Be right back. (upbeat music)