>>Que presents HP Discover 2022. Brought to You by HP >>Good morning, everyone. It's the Cube live in Las Vegas. Day two of our coverage of HP Discover 2022 from the Venetian Expo Centre. Lisa Martin and David want a what a day we had yesterday and today. Unbelievable >>for today. Big Big day today, >>Big day Today we've got a lot. We got some big heavy hitters on talking with HP customers. Partners, leadership. We've a couple of guests up with us next. Going to be talking more about the ecosystem. He's welcome. Corey Dire, the chief revenue officer, Digital Realty and Cliff Evans, senior director. H P E Green like partner ecosystem Guys. Great to have you on the >>programme. Thank you. Great to be here. >>Thank you for having us excited to be here >>with. So that's so that's harness that excitement. Cory, talk to us about the partnership. The announcement? What's going on there with Digital Realty and Green like? >>Yeah, we're crazy excited about it. You know, we've got customers dealing with data, gravity and the opportunity around that and how they could make use of it. And then they're thinking through digital transformation. How how you doing? Multi cloud and they need a partnership. To do that in this partnership with Green Leg and digital is perfect solution for them. So I'm crazy excited to be here with Cliff absolute with all of you to talk about it and hopefully build out a great partnership in relationship with HP. >>Talk to us. Sure, you're crazy Excitement >>club? Absolutely no. I think it is absolutely fantastic Partnership. I think the term is coming together as organisations. Bringing the two platforms together isn't it is an amazing thing that we have for customers, customers we know they want. They want a cloud experience. But really, they want to do that without really the DC footprint that had previously. So how did they do that in a way that really works for them in a secure client secure, sustainable way. But with the cloud experience. Really, the combination of the two pieces coming together really makes that happen, and that is what that's exciting. So we >>dig in to the two things that you mentioned Cory digital transformation and multiply. When I go back to the early days of cloud, it was that girl, you know, nobody's going to do anything you know ever again in the data centre. You know Charles Phillips, the the CEO of in four, famously said, Friends don't let friends, Bill Data centres, right? Everything's going in the cloud. So a lot of people predicted, You know, guys like you were going to be in trouble. The exact opposite happened. The market took off. So you mentioned digital transformation of multi cloud. Can we peel the onion on that? What? What is it about those two items? Are there other trends? They're driving your business, >>you know, You tied right on to to where it started. All enterprises started going to the club and then they got to the cloud and there was more that they needed to make that rial. I talk about multi cloud. You're going to use different cloud providers for different opportunities and different applications. And so you have to start thinking about how does this work in a world where you're gonna go to multiple clouds, multiple locations and what it really drove? It is the need for Cole location to make this because you've got a distributed architecture in order to enable all of this and then having to have us help you out with it. And partners like HP. That's part of where it comes from. But if you think through going to the cloud, can you stay there? Is that the full solution? You need to secure sustainable solution for that. One of the opportunities for us around that is that if you're building data centres for yourself on Prem, you don't have all the cloud access we do. We've got more cloud access points than anybody. So that helps in this digital transformation. >>How How much home? I'm sorry, Didn't mean to you how much homogeneity is there are our clients or customers saying, Hey, I kind of want the same experience in the same infrastructure. Same same. Or they saying, Hey, I want to do stuff in Digital Realty that I can't get from, you know, a cloud provider, Oracle Rack. You know, something like that, >>I would tell you that they come to us from all the partners. So we are partner community. We are not going up the stack anywhere on that. We do are we do our part. We're really good at doing the data centres really good at building data. They descended sustainable. Our position in the market is sustainability around it. We were the first to sign up on the science based initiatives for zero kind of carbon neutrality and in the future in 2030. And so yeah, so I think there's the partner aspect that they need help with on it to drive that Yeah. >>And I think from that from the HP Green Lake perspective, I think customers they very much want that that cloud experience. But I want to do on their own terms. The partnership allows that to happen on Gapen simply the cloud experiencing with the green light cloud platform to really go and deliver that genuine cloud experience and then building cloud services. On top of that, they get all the benefits that they would have from a public cloud experience, but done in the way that they would prefer to do it. So it's bringing those pieces together on >>I think the other side of you asked if it was it was the same across the board and ubiquitous. It's very bespoke. Solutions weaken D'oh! Every customer we have has a different footprint. Most from the multinationals. So we think through where their data is, where it needs to be accessed where their customers are, where their employees are, what makes the most sense. And then the partnership we have with HP into a whole lot for making very bespoke solution for that customer and help them be successful. Journey >>s O on. That s o. So what we've done with destroy lt is we have a specific offer around how we go to market with this really going how customers So we call it Green Light with co location. It's all about really positioning on offer to customers that says, Look, we can go and do this with you and do it simply and really make it happen very quickly and efficiently. So the customer ends up with a single contract in a single invoice for Green Lake Cloud Services on the co location piece, all in one single contracts. That just makes it a lot easier in terms of organising on a really big part of that as well is that our involvement is also spans right from the design to the implementation to support. So we do the whole thing to really help organisations golf and do this. So that's the big for me. The big differentiator. So rather than just having Green Lake in Cloud Services, were saying, Look, we can now do the Coehlo piece and they can really take the whole thing to a whole new level in terms of that public cloud experience >>in the sari and that that that invoice comes from HPD or Digital Realty is bundled into that >>correct? Yes, directly through the channel. We can sell that in a number of different ways. Customers get that that single invoice on a big part of that as well, just going a little bit deeper on that. So what we do is we We use a part of the company called Data Centre Technology Services, which are a great kind of consulting organisation with tremendous experience and something like 3000 projects across 40 countries from the very smallest of the very largest of data centre implementation. So all of that really makes the whole thing a lot easier from a customer's perspective in terms of designing, implementing and then supporting. So you pull all of that together. It's fantastic >>and I think it's really changed to add on to that partner in prison. So customers, now we're thinking about it differently and data centres differently, and they see us as a strategic partner along with HP. To go after this used to be space, power and calling. Now it's How much connectivity do you have? What your sustainability profile? What's your security profile? How do you secure this data? Date is the lifeblood of all these companies and you have to have a really secure, sustainable solution for them, >>right? That's absolutely critical for every industry. Talk about the specific value prop at a bespoke co location solution delivers to customers. Maybe you got a favourite customer example that you think really articulates the value of this partnership. >>So I think a combination. So so I think we touched on a lot of it, actually. So there's obviously the data centre aspect itself in terms of with the footprint that realty have across the world, you can pick and choose the data centre in the class of data centre that you want in terms of your Leighton see and connectivity that you want. Then really, it's the green make peace in terms of the flexibility that you get with that really is that value. And as I touched on the Green Lake with Cole Oh, I think for me is from our perspective, I think the biggest piece of value that we provide there to really go make it happen. Yeah, >>there's about 70 applications right now that are part of Green Lake Polo that you can bespoke for what you need to. You can think around your specific solutions that you need, and we've got it all right there with HP Green like and follow for us. And because we have a 290 data centre footprint across 50 markets, it gives us the opportunity really be the data centre provider in the Partner for H P, pretty much anywhere but with connective ity everywhere. >>When you say 70 applications, these the 70 services are you talking about talking >>about? Okay, Category 70 services. There's a lot of stuff. >>Cory, when you talked about sustainability a couple of times, is a really important ingredient of the customer decision. Why is it because they're indirectly paying the power bill or is because that's the right thing to do? And they care. There's increased. People care about it more because you go back a while ago. People way always talked about green it, but it was all lip service. Is that changing or is that there? Is there an economics >>changing in a really big way? Almost every conversation I have with customers is how are you doing Sustainability. So if they're doing an on Prem, that's not their core capabilities. They don't know how to do that. On our end, I mentioned our SP R science based initiatives that we signed up for. But how do we enable that? Enable it for how do we build in designer data centres? How do we actually work them and operate them? And then how do we go after all the green sources of sustainable energy including, I think since 2015, we've issued six billion in green bonds around that same support of it. So yeah, >>and your customer can then I presume, report that on their sustainability report a >>good way to think about it. You no longer have your data centre at its sometimes less efficient way than way are we're really good at building sustainable data centres, and then you can actually get some credits back and forth, >>just from agreement. Perspective. So Green Lake. So there's a specific Forrester Impact report that looks a green lake on how it how it performs from sustainability. Perspective on Greenlee really is giving you their 30% reduction in your energy consumption. So there's a big kind of win there as well, I think. Which is then, >>why? Where does that come from? >>So it Zim part that kind of the avoidance of over provisioning such that you going right size things, Then you have you have you have a certain amount of reserve capacity that you're using them just using the extra consumption piece when you need it. So rather than having everything running at full speed, it really is kind of struggling as to how that work. So you get a combination of effects >>with consulting and the thoughtfulness around this bespoke solution that you have. You end up needing fewer servers, pure technology that drives less power consumption and therefore you get a lot of this same really base it down. You >>talked about the savings you talked about the simplification delivery perspective. Talk about the implementation. What's the time to value that Organisations can glean from this partnership >>superfast So So yeah this This does accelerate the whole process from from initial kind of opportunity if you like and customer inquiry through to actual implementation So previously this would take considerable amount of time in terms of to ing and froing between multiple organisations on Now what we do is coordinate that do it efficiently and effectively So D. C. T s Data Sentinel services team very closely. Just have those connections often do those things incredibly quickly and it does accelerate the whole time >>and they're tied in with our team is well around. Where's the leighton? See where the solutions Because we're really thinking about what is your stack looked like from an HP perspective, but then where you need to deploy it so that you have access to the clouds You have the right proper Leighton see across your environment and you really haven't distributed architecture that works the best for you and your company. >>So this is probably answer those questions Probably both, but I'm asking anyway, I've always been a repatriation sceptic, but I'm happy to be proven wrong. You guys have other data. And maybe this is part of what one of my blind spots question is, is what's driving your business in terms of the EU's case? Is it organisations saying Hey, we want to get out of the data centre business way Don't want to put everything into the cloud but we're going to go on a digital realty and being green leg and we're gonna move into that cola Or is it? People say, You know, while we over rotated into the cloud, you were going to come back. So it's >>both. It's both, >>Yeah, in the empire. The credit. >>I think there are a lot of customers with good intentions on going to the cloud, and then there's some cost with it that maybe they didn't fully factor in it at that time. And now you've got the ability around these bespoke solutions to really right size every bit of this. And when they originally did it, they didn't think through a distributor architecture. They thought my own prim, and then I'm just gonna burst everything that a cloud that's no longer the case, and it's not really the most efficient way to your point about repatriation. They start pulling their storage back in. Well, where do you want your data? Where do you want your storage? You wanted as close as you can to the clouds for that capability and in a solution that's wrapped around it makes it very simple for you. >>I think the repatriation is very real and is increasing, eh? So we're seeing a lot of it in terms of activity and customers really trying to understand the cost that they're incurring now from a public cloud perspective. And how can they do that differently? In fact, with combined offer that we have it, it makes it a lot easier to compare. So, yeah, that really is accelerating because you don't >>see it in the macro numbers. I mean, just to be honest, you see the cloud guys combined growing 35%. And is that because your business is in transition from traditional on prime model, too, and as a service model, and so you've got that imbalance and it gets hidden in >>all that, and I think it's I think it's a new wave of things that are happening. Yeah. I mean, there's a there's a lot of things, obviously, that makes complete sense to me in Public Cloud, but I do think there's been an over rotation towards it, so I think now that realisation and it's going to take time to kind of pick that. But it's absolutely happening. There are a lot of opportunities that we've gotten some very big ones I'd love to talk about. Can't quite talk about them just get but really, where there's big, big savings in terms of what they're paying from a public cloud perspective, Really, what they want is that full management cloud service to go make it happen. So the combination of the data centre piece to Green Lake piece and then some management services, whether they're from ourselves or from party community, from manage service providers that we also work with, that gives them the complete package. >>So I have another premise. A lot of it, of course, is traditionally been focused on internal, and I feel like there's a new era coming. It's talks of the ecosystem. Are you seeing customers not only running there it in digital realty and connecting to the cloud in a hybrid fashion, but also actually building new value and building businesses that are customer facing on that that air monetize herbal. Are you seeing that? Is that happening and having examples, even generic? >>Well, basic from our perspective, our partner community, that's what they do. We have a tonne of enterprise customers, but I'll need to connect and integrate the data that you have doesn't do anything for you, Fitz on its own. And it's not interacting with other data points. And it's not around interacting with other customers, other solutions in one night. So it does help build out a partner community, a solution community for our customers in our data centres and across the >>are their industry patterns emerging. In other words, is that data ecosystems emerging by industry or is a sort of or horizontal? >>There's a mix. So I think there's a lot of lot of financial sector stuff. Yes, certainly. And then certainly manufacturing s O. I think it's interesting that you're getting a bit of a combination, but not a lot of financial sector. >>Of course, the big bags early on that they could build their own cloud. Yeah, now they're probably rethinking that. Yeah, well, maybe >>they're also service providers. When you're that large a za bank on their end. They're doing a lot of work. E. I would also say the other part that a lot of people see as an opportunity is around all the HPC and AI applications as well, in addition to manufacturing distribution. So there's a lot of use cases, a lot of reasons, like us from sort of doing this >>wrap us up with value, perhaps that you're talking Torto Financial Services Organisation or a manufacturing company. What is that 32nd elevator pitch value problem? Why they should go HP Making Digital Realty together. >>So I would say green, like Rico location gives you a single contract. Singling voice, easy to go and design, implement support and go make happen. Sorry, that's very simple way say, very just make it easy >>on. And I would just say thank you on that. It's been great to speak with you guys. And yeah, when you think through that part of it also is a bespoke opportunity to put your data where it needs to be closer to your customers. Closer to the action you were thinking through the rape reiteration of it. A lot of it's being built out there on phones and whatnot. So you've got to think through where your data is and how you managed to >>write and enable every every company in every industry to be a data company. Because that's what, of course, the demanding consumers demanding that demand isn't it is not going to turn down right now. Absolutely. Just thanks so much for David. Very much. Thank you. Together in the ecosystem, there are guests. And Dave l want a I'm Lisa Martin. You're watching the key of live from the Venetian Expo Centre in Vegas, Baby. David, I will be back there next guest in a minute.

>>From the cube studios in Palo Alto, in Boston, bringing you data driven insights from the cube and ETR. This is breaking analysis with Dave ante. >>When Frank sluman took service, now public many people undervalued the company, positioning it as just a better help desk tool. You know, it turns out that the firm actually had a massive Tam expansion opportunity in it. SM customer service, HR, logistics, security marketing, and service management. Generally now stock price followed over the years, the stellar execution under Slootman and CFO, Mike scar Kelly's leadership. Now, when they took the reins at snowflake expectations were already set that they'd repeat the feet, but this time, if anything, the company was overvalued out of the gate, the thing is people didn't really better understand the market opportunity this time around, other than that, it was a bet on Salman's track record of execution and on data, pretty good bets, but folks really didn't appreciate that snowflake. Wasn't just a better data warehouse that it was building what they call a data cloud, and we've turned a data super cloud. >>Hello and welcome to this. Week's Wikibon cube insights powered by ETR in this breaking analysis, we'll do four things. First. We're gonna review the recent narrative and concerns about snowflake and its value. Second, we're gonna share survey data from ETR that will confirm precisely what the company's CFO has been telling anyone who will listen. And third, we're gonna share our view of what snowflake is building IE, trying to become the defacto standard data platform, and four convey our expectations for the upcoming snowflake summit. Next week at Caesar's palace in Las Vegas, Snowflake's most recent quarterly results they've been well covered and well documented. It basically hit its targets, which for snowflake investors was bad news wall street piled on expressing concerns about Snowflake's consumption, pricing model, slowing growth rates, lack of profitability and valuation. Given the, given the current macro market conditions, the stock dropped below its IPO offering price, which you couldn't touch on day one, by the way, as the stock opened well above that and, and certainly closed well above that price of one 20 and folks express concerns about some pretty massive insider selling throughout 2021 and early 2022, all this caused the stock price to drop quite substantially. >>And today it's down around 63% or more year to date, but the only real substantive change in the company's business is that some of its largest consumer facing companies, while still growing dialed back, their consumption this past quarter, the tone of the call was I wouldn't say contentious the earnings call, but Scarelli, I think was getting somewhat annoyed with the implication from some analyst questions that something is fundamentally wrong with Snowflake's business. So let's unpack this a bit first. I wanna talk about the consumption pricing on the earnings call. One of the analysts asked if snowflake would consider more of a subscription based model so that they could better weather such fluctuations and demand before the analyst could even finish the question, CFO Scarelli emphatically interrupted and said, no, <laugh> the analyst might as well have asked, Hey Mike, have you ever considered changing your pricing model and screwing your customers the same way most legacy SaaS companies lock their customers in? >>So you could squeeze more revenue out of them and make my forecasting life a little bit easier. <laugh> consumption pricing is one of the things that makes a company like snowflake so attractive because customers is especially large customers facing fluctuating demand can dial and their end demand can dial down usage for certain workloads that are maybe not yet revenue producing or critical. Now let's jump to insider trading. There were a lot of insider selling going on last year and into 2022 now, I mean a lot sloop and Scarelli Christine Kleinman. Mike SP several board members. They sold stock worth, you know, many, many hundreds of millions of dollars or, or more at prices in the two hundreds and three hundreds and even four hundreds. You remember the company at one point was valued at a hundred billion dollars, surpassing the value of service now, which is this stupid at this point in the company's tenure and the insider's cost basis was very often in the single digit. >>So on the one hand, I can't blame them. You know what a gift the market gave them last year. Now also famed investor, Peter Linsey famously said, insiders sell for many reasons, but they only buy for one. But I have to say there wasn't a lot of insider buying of the stock when it was in the three hundreds and above. And so yeah, this pattern is something to watch our insiders buying. Now, I'm not sure we'll keep watching snowflake. It's pretty generous with stock based compensation and insiders still own plenty of stock. So, you know, maybe not, but we'll see in future disclosures, but the bottom line is Snowflake's business. Hasn't dramatically changed with the exception of these large consumer facing companies. Now, another analyst pointed out that companies like snap, he pointed to company snap, Peloton, Netflix, and face Facebook have been cutting back. >>And Scarelli said, and what was a bit of a surprise to me? Well, I'm not gonna name the customers, but it's not the ones you mentioned. So I, I thought I would've, you know, if I were the analyst I would've follow up with, how about Walmart target visa, Amex, Expedia price line, or Uber? Any of those Mike? I, I doubt he would've answered me anything. Anyway, the one thing that Scarelli did do is update Snowflake's fiscal year 2029 outlook to emphasize the long term opportunity that the company sees. This chart shows a financial snapshot of Snowflake's current business using a combination of quarterly and full year numbers in a model of what the business will look like. According to Scarelli in Dave ante with a little bit of judgment in 2029. So this is essentially based on the company's framework. Snowflake this year will surpass 2 billion in revenues and targeting 10 billion by 2029. >>Its current growth rate is 84% and its target is 30% in the out years, which is pretty impressive. Gross margins are gonna tick up a bit, but remember Snowflake's cost a good sold they're dominated by its cloud cost. So it's got a governor. There has to pay AWS Azure and Google for its infrastructure. But high seventies is a, is a good target. It's not like the historical Microsoft, you know, 80, 90% gross margin. Not that Microsoft is there anymore, but, but snowflake, you know, was gonna be limited by how far it can, how much it can push gross margin because of that factor. It's got a tiny operating margin today and it's targeting 20% in 2029. So that would be 2 billion. And you would certainly expect it's operating leverage in the out years to enable much, much, much lower SGNA than the current 54%. I'm guessing R and D's gonna stay healthy, you know, coming in at 15% or so. >>But the real interesting number to watch is free cash flow, 16% this year for the full fiscal year growing to 25% by 2029. So 2.5 billion in free cash flow in the out years, which I believe is up from previous Scarelli forecast in that 10, you know, out year view 2029 view and expect the net revenue retention, the NRR, it's gonna moderate. It's gonna come down, but it's still gonna be well over a hundred percent. We pegged it at 130% based on some of Mike's guidance. Now today, snowflake and every other stock is well off this morning. The company had a 40 billion value would drop well below that midday, but let's stick with the 40 billion on this, this sad Friday on the stock market, we'll go to 40 billion and who knows what the stock is gonna be valued in 2029? No idea, but let's say between 40 and 200 billion and look, it could get even ugly in the market as interest rates rise. >>And if inflation stays high, you know, until we get a Paul Voker like action, which is gonna be painful from the fed share, you know, let's hope we don't have a repeat of the long drawn out 1970s stagflation, but that is a concern among investors. We're gonna try to keep it positive here and we'll do a little sensitivity analysis of snowflake based on Scarelli and Ante's 2029 projections. What we've done here is we've calculated in this chart. Today's current valuation at about 40 billion and run a CAGR through 2029 with our estimates of valuation at that time. So if it stays at 40 billion valuation, can you imagine snowflake grow into a 10 billion company with no increase in valuation by the end, by by 2029 fiscal 2029, that would be a major bummer and investors would get a, a 0% return at 50 billion, 4% Kager 60 billion, 7%. >>Kegar now 7% market return is historically not bad relative to say the S and P 500, but with that kind of revenue and profitability growth projected by snowflake combined with inflation, that would again be a, a kind of a buzzkill for investors. The picture at 75 billion valuation, isn't much brighter, but it picks up at, at a hundred billion, even with inflation that should outperform the market. And as you get to 200 billion, which would track by the way, revenue growth, you get a 30% plus return, which would be pretty good. Could snowflake beat these projections. Absolutely. Could the market perform at the optimistic end of the spectrum? Sure. It could. It could outperform these levels. Could it not perform at these levels? You bet, but hopefully this gives a little context and framework to what Scarelli was talking about and his framework, not with notwithstanding the market's unpredictability you're you're on your own. >>There. I can't help snowflake looks like it's going to continue either way in amazing run compared to other software companies historically, and whether that's reflected in the stock price. Again, I, I, I can't predict, okay. Let's look at some ETR survey data, which aligns really well with what snowflake is telling the street. This chart shows the breakdown of Snowflake's net score and net score. Remember is ETS proprietary methodology that measures the percent of customers in their survey that are adding the platform new. That's the lime green at 19% existing snowflake customers that are ex spending 6% or more on the platform relative to last year. That's the forest green that's 55%. That's a big number flat spend. That's the gray at 21% decreasing spending. That's the pinkish at 5% and churning that's the red only 1% or, or moving off the platform, tiny, tiny churn, subtract the red from the greens and you get a net score that, that, that nets out to 68%. >>That's an, a very impressive net score by ETR standards. But it's down from the highs of the seventies and mid eighties, where high seventies and mid eighties, where snowflake has been since January of 2019 note that this survey of 1500 or so organizations includes 155 snowflake customers. What was really interesting is when we cut the data by industry sector, two of Snowflake's most important verticals, our finance and healthcare, both of those sectors are holding a net score in the ETR survey at its historic range. 83%. Hasn't really moved off that, you know, 80% plus number really encouraging, but retail consumer showed a dramatic decline. This past survey from 73% in the previous quarter down to 54%, 54% in just three months time. So this data aligns almost perfectly with what CFO Scarelli has been telling the street. So I give a lot of credibility to that narrative. >>Now here's a time series chart for the net score and the provision in the data set, meaning how penetrated snowflake is in the survey. Again, net score measures, spending velocity and a specific platform and provision measures the presence in the data set. You can see the steep downward trend in net score this past quarter. Now for context note, the red dotted line on the vertical axis at 40%, that's a bit of a magic number. Anything above that is best in class in our view, snowflake still a well, well above that line, but the April survey as we reported on May 7th in quite a bit of detail shows a meaningful break in the snowflake trend as shown by ETRS call out on the bottom line. You can see a steady rise in the survey, which is a proxy for Snowflake's overall market penetration. So steadily moving up and up. >>Here's a bit of a different view on that data bringing in some of Snowflake's peers and other data platforms. This XY graph shows net score on the vertical axis and provision on the horizontal with the red dotted line. At 40%, you can see from the ETR callouts again, that snowflake while declining in net score still holds the highest net score in the survey. So of course the highest data platforms while the spending velocity on AWS and Microsoft, uh, data platforms, outperforms that have, uh, sorry, while they're spending velocity on snowflake outperforms, that of AWS and, and Microsoft data platforms, those two are still well above the 40% line with a stronger market presence in the category. That's impressive because of their size. And you can see Google cloud and Mongo DB right around the 40% line. Now we reported on Mongo last week and discussed the commentary on consumption models. >>And we referenced Ray Lenchos what we thought was, was quite thoughtful research, uh, that rewarded Mongo DB for its forecasting transparency and, and accuracy and, and less likelihood of facing consumption headwinds. And, and I'll reiterate what I said last week, that snowflake, while seeing demand fluctuations this past quarter from those large customers is, is not like a data lake where you're just gonna shove data in and figure it out later, no schema on, right. Just throw it into the pond. That's gonna be more discretionary and you can turn that stuff off. More likely. Now you, you bring data into the snowflake data cloud with the intent of driving insights, which leads to actions, which leads to value creation. And as snowflake adds capabilities and expands its platform features and innovations and its ecosystem more and more data products are gonna be developed in the snowflake data cloud and by data products. >>We mean products and services that are conceived by business users. And that can be directly monetized, not just via analytics, but through governed data sharing and direct monetization. Here's a picture of that opportunity as we see it, this is our spin on our snowflake total available market chart that we've published many, many times. The key point here goes back to our opening statements. The snowflake data cloud is evolving well beyond just being a simpler and easier to use and more elastic cloud database snowflake is building what we often refer to as a super cloud. That is an abstraction layer that companies that, that comprises rich features and leverages the underlying primitives and APIs of the cloud providers, but hides all that complexity and adds new value beyond that infrastructure that value is seen in the left example in terms of compressed cycle time, snowflake often uses the example of pharmaceutical companies compressing time to discover a drug by years. >>Great example, there are many others this, and, and then through organic development and ecosystem expansion, snowflake will accelerate feature delivery. Snowflake's data cloud vision is not about vertically integrating all the functionality into its platform. Rather it's about creating a platform and delivering secure governed and facile and powerful analytics and data sharing capabilities to its customers, partners in a broad ecosystem so they can create additional value. On top of that ecosystem is how snowflake fills the gaps in its platform by building the best cloud data platform in the world, in terms of collaboration, security, governance, developer, friendliness, machine intelligence, etcetera, snowflake believes and plans to create a defacto standard. In our view in data platforms, get your data into the data cloud and all these native capabilities will be available to you. Now, is that a walled garden? Some might say it is. It's an interesting question and <laugh>, it's a moving target. >>It's definitely proprietary in the sense that snowflake is building something that is highly differentiatable and is building a moat around it. But the more open snowflake can make its platform. The more open source it uses, the more developer friendly and the great greater likelihood people will gravitate toward snowflake. Now, my new friend Tani, she's the creator of the data mesh concept. She might bristle at this narrative in favor, a more open source version of what snowflake is trying to build, but practically speaking, I think she'd recognize that we're a long ways off from that. And I also think that the benefits of a platform that despite requiring data to be inside of the data cloud can distribute data globally, enable facile governed, and computational data sharing, and to a large degree be a self-service platform for data, product builders. So this is how we see snow, the snowflake data cloud vision evolving question is edge part of that vision on the right hand side. >>Well, again, we think that is going to be a future challenge where the ecosystem is gonna have to come to play to fill those gaps. If snowflake can tap the edge, it'll bring even more clarity as to how it can expand into what we believe is a massive 200 billion Tam. Okay, let's close on next. Week's snowflake summit in Las Vegas. The cube is very excited to be there. I'll be hosting with Lisa Martin and we'll have Frank son as well as Christian Kleinman and several other snowflake experts. Analysts are gonna be there, uh, customers. And we're gonna have a number of ecosystem partners on as well. Here's what we'll be looking for. At least some of the things, evidence that our view of Snowflake's data cloud is actually taking shape and evolving in the way that we showed on the previous chart, where we also wanna figure out where snowflake is with it. >>Streamlet acquisition. Remember streamlet is a data science play and an expansion into data, bricks, territory, data, bricks, and snowflake have been going at it for a while. Streamlet brings an open source Python library and machine learning and kind of developer friendly data science environment. We also expect to hear some discussion, hopefully a lot of discussion about developers. Snowflake has a dedicated developer conference in November. So we expect to hear more about that and how it's gonna be leveraging further leveraging snow park, which it has previously announced, including a public preview of programming for unstructured data and data monetization along the lines of what we suggested earlier that is building data products that have the bells and whistles of native snowflake and can be directly monetized by Snowflake's customers. Snowflake's already announced a new workload this past week in security, and we'll be watching for others. >>And finally, what's happening in the all important ecosystem. One of the things we noted when we covered service now, cause we use service now as, as an example because Frank Lupin and Mike Scarelli and others, you know, DNA were there and they're improving on that service. Now in his post IPO, early adult years had a very slow pace. In our view was often one of our criticism of ecosystem development, you know, ServiceNow. They had some niche SI uh, like cloud Sherpa, and eventually the big guys came in and, and, and began to really lean in. And you had some other innovators kind of circling the mothership, some smaller companies, but generally we see sluman emphasizing the ecosystem growth much, much more than with this previous company. And that is a fundamental requirement in our view of any cloud or modern cloud company now to paraphrase the crazy man, Steve bomber developers, developers, developers, cause he screamed it and ranted and ran around the stage and was sweating <laugh> ecosystem ecosystem ecosystem equals optionality for developers and that's what they want. >>And that's how we see the current and future state of snowflake. Thanks today. If you're in Vegas next week, please stop by and say hello with the cube. Thanks to my colleagues, Stephanie Chan, who sometimes helps research breaking analysis topics. Alex, my is, and OS Myerson is on production. And today Andrew Frick, Sarah hiney, Steven Conti Anderson hill Chuck all and the entire team in Palo Alto, including Christian. Sorry, didn't mean to forget you Christian writer, of course, Kristin Martin and Cheryl Knight, they helped get the word out. And Rob ho is our E IIC over at Silicon angle. Remember, all these episodes are available as podcast, wherever you listen to search breaking analysis podcast, I publish each week on wikibon.com and Silicon angle.com. You can email me directly anytime David dot Valante Silicon angle.com. If you got something interesting, I'll respond. If not, I won't or DM me@deteorcommentonmylinkedinpostsandpleasedocheckoutetr.ai for the best survey data in the enterprise tech business. This is Dave Valante for the insights powered by ETR. Thanks for watching. And we'll see you next week. I hope if not, we'll see you next time on breaking analysis.

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation LeBron's special conversation I'm John Tory here in the cube I'm not in the studio I'm at home we're sheltering in place the studio quarantine crew is there we've got a great guest here to break down and Alice in the tech industries for vallah who's this principle of zk research Aziz great to check in with you for our check-in last time we chatted you broke down entire industry a lot to talk about now we have the Cisco earnings just came out and a lot of other great things are happening thanks for joining me well what's your take on what's going on yeah I think so thanks John it's uh it's been heard about tumultuous last few months I think one of the takeaways I had from Cisco's earnings actually was that it's not as bad as you think I know if you read a lot of what's going on the media we get everything from doomsday and the world's ending or whatever but I think what Cisco's earnings showed and in Cisco I know they have a lot of enemies and a lot of competitors out there but they're really still a bellwether for the industry and so everyone should rejoice in the fact that they actually had a pretty good quarter I think what was was telling about that was security was up the services business was up the margins were good and what that shows me is that there's still room for innovation customers relax are still buying things and they're willing to pay for things that actually help drive their business forward and so Cisco's put a lot of energy into their services group to make sure that customers are able to adapt their technology and change their business right and so from an overall market perspective Cisco is you know they're the quarters are the court has shifted from almost everybody else's and so they're generally a leading indicator of where things are going so I think the fact that they showed some strength they guided up from where the street thought I think that's a good thing for the entire industry and I think I'm not saying we're out of this yet but I think businesses are starting to spend money where they need to in order to put themselves in a position to come on strong after well once we start going back to work whoever knows what that'll be I think the other sort of interesting pivot here is that I think the overall role the network has changed with income right we've covered networking technologies a long time it gets a little bit of interest sometimes from sea level certainly not as much as it should from CEOs and CIOs a lot of people think of it as the plumbing and the pipes it's hard to understand it's a very complicated technology sometimes but when you look at what's happened with digital transformation initiatives and now covent we've got more people at home or adopting cloud services we use video for connecting more things with IOT initiatives so the overall value of the network is increased that I think that was also reflected in Cisco's numbers I think this transition had started when you look at a lot of the building blocks and digital transformation IOT cloud mobility things like that they're all Network centric in nature and so for the first time in history I think business leaders actually need to look at their network strategies because if that's without a sound network strategy as we sort of come out of this and the companies that have a good one will be able to really step on the gas and do what they want with their business the ones that don't I think I'd a really struggle to survive because I'm not gonna be able to do a lot of these advanced things yeah great point one of the things Brazil the new cisco has a new leadership new c has been in place for a while positioning they're going after and you know with the cloven crisis it really puts more pressure knock the move of the network because it's a core staple of an organization yet the transformation journey is going to be accelerated this gives Cisco it's a lucky strike for Cisco because it'll move packets around and the multi cloud conversation comes in and the enablement of application development all being five to the network is what cisco has been preparing on and this has kind of been a nuance point then that everyone understands but coming out of Cova to have a growth strategy if you're not programming up and down the stack with DevOps and Nets a cops or whatever you want to call it people working at home a new perimeter is now emerged that's everything everything is the premise is this a tailwind for Cisco your thoughts on that your face oh yeah the big time tailwind francisco i think what's happened gentlemen you look at network evolution over the last five years we can do much more with our network that's coming to cost and that cost us complexity so trying to tie all these things together SP Winn Sassie datacenter Sdn right we've got Wi-Fi six coming we've got 5g coming so we've got all these great things that we're gonna let our networks be faster than ever before and run applications we can never run before right you look at some of the demos on 5g we're able to wear untethered Wi-Fi our virtual reality headsets complete creating completely new shopping experiences educational experiences but you need a lot of bandwidth that but not only you need bandwidth I think the one thing that Kovac has taught us is do you have any weakness in the network anywhere right from the user's hand all the way to the cloud that weak point at the time and so now you have to start thinking of your network not in pieces of having a campus network Wi-Fi network data center network and that a single network right and so cisco is really one of the few companies maybe the only company that can actually deliver that end and network that starts in the company extends to people's homes goes out to the cloud and with what they've done masterfully under Chuck Robbins is they've been able to pile those things together to create a much simpler way of operating this complicated network so you look at what they're doing you know with a CI and intent based networking what that is is you can think of it almost as a software overlay that masks the complexity of the network that's underneath it yeah talking about cisco over the past decade and a half and i'm with the stack guys you gotta move up the stack this has been this is now their opportunity and with multi cloud on the horizon or here this is going to give cisco a path but I got to ask you what is your take and advice to Cisco when you're out there talking to them you're talking to of the customers all the time and practitioners you're the analyst what do they need to do better because you can't just wish a multi cloud upon the marketplace it's coming but it's not clearly not the use case yet so that's a time lag between a CI intent based networking to true multi-cloud what if Cisco do in the meantime yeah well I think what's this go has to do is is think about what they're doing with a CI and multi cloud and actually help their customers implement it in in pieces and what the description I'd use is is the paths this goes on and the path customers are on actually in this world of you think if the end state is true hybrid multi-cloud right we have to get there in ship shots and not moon shots and what I mean by that is if you were to say to a customer this is your end state right the path to get there is so donkey and it's like a moon shot that it paralyzes the customer if you break this down into a set of chip shots right that gets much easier so so put the infrastructure in place to be able to just have the visibility across applause then maybe automate movement from hi private the public cloud right then automate some of the processes that give you the most headaches then move to a bigger Ottoman Ottoman automation framework right so yeah areas like security network configuration right things like that those are those are very difficult for customers to do manually those are the things they should be automating today so what they want to do is almost take through their intent-based network to almost as a lighthouse the road to a visionary state and then help customers get there in pieces because if they try and rush them along too fast I think they'll lose the customer because the complexity is too high the other area they should really be focused on is continuing to mature the services business I think that's something under Chuck Robbins that's night and day different than what it was the services business - Cisco prior to Chuck was a lot of break fix you know their TAC is well renowned as being a great pack but now they've gotten more of the pro services they've gotten more into adoption services and I think the more subscription they sell what Cisco needs to really understand is that customers tend not to renew things they don't use right so making sure that the services group helps customers and use the things that they're paying for and that'll pay dividends for them multiple dividends for them down the road I want to get the silken one on that opportunity to upsell and do a refresh because what refreshes are not gonna be on the docket early on unless discuss business value so let's hold that for a second John Chambers has been on the cube recently in his new role as a coach and investor and he says to us on the cube you know transitions versus transformation Cisco and the big companies are expected to win the transitions but now with coming out of this there's real transformation so you got to look at things like collaboration hey guys get better this is not just win the enterprise with a better web max zoom is they can ask Bob teams is out there so you know Cisco's that's a huge collaboration piece and a bunch of other business so where's their transition wins and where's their transformational opportunity in Europe in well I think the entire company is kind of going through transformations right even on the network side so it's right it's like you know the industry has been calling Francisco to get commoditized for years right and if you look the product gross margins are actually the strongest they've been in a decade right so I remember when I fell below 60% they everybody thought the world was falling this quarter I think was a little over 65 on the product side and so my belief is nothing is really a commodity if you can drive innovation that's what's this has been doing so from a transition standpoint I think they've done a lot of that they've transitioned the company to software and services they've transitioned the company more terrain model they've actually decoupled software from the hardware so customers can buy differently and you brought up the fact that we may not have a hardware refresh but that's okay as long as they keep the software a newa cycles forth where the transformations has to come is completely change the dynamics of how something works and so with intent-based networking you think of the old way that network engineers to work like the way I used to work when I was an engineer a lot of hunting pecking and at a CLI doing a lot of cutting and pasting and using homegrown tools that doesn't scale anymore my research shows that on average takes companies about four months the implemented change network-wide far too slow for digital company right so Francisco's done is they've accelerated that by letting customers automate more things and so Francisco the transformation comes in allowing customers to new new things I think you read in the collaboration side there's more work to do nobody's got a bigger collaboration portfolio than Cisco they got endpoints they got rooms just right they've got software they were a cloud on Prem but they got to take that and tie it together and I think the other area that's is gonna need improving is on they've they've got a lot of management tools that that look at different things they have at the ACI manager and a whole bunch of different security consoles in fact they funded them sometimes and said that the market leader in single panes of glass because they have more than anybody right I think eventually they got to be able to tie that information together and help customers understand what it means from a cross domain perspective because they still build a product's wireless campus data center but as I mentioned before we just have one network and so Cisco can aggregate this data up apply machine learning to it and help customers what that means they see insight across the entire network that would really be powerful because they they've got the footprint now they just have to be able to deliver the machine learning based insights some customers understand what that data means and they have a unique opportunity in the short term no one's going to be kidding Cisco out anytime soon there's a safety rating and using the big companies I think what what Cisco is able to bring is a there's a level of financial stability that other companies may not have and so they can weather the storm for a long time so you know I it's easy to say going to Cisco is the safe bet it has been for a long time but but i but I think it's also the smart bet I think they're they're able to continue to invest in things maybe smaller companies more people do yeah my question on Cisco a big fan of their strategy have been vocal about that for a while my question on Cisco want to be critical is to say how fast can you get that development going show the software value in market show customers a growth trajectory that they can execute on it can advantage the network policy intelligence if they could do that they're gonna be in good shape you agree yeah I think one of the challenges though is the transformation of their customer base do and that's where the work Suzy we've been doing in the dev that teams so important like if if they were to shift their whole strategy over at the developer folks talk word today I think that would largely put them in a position or trouble because the engineers that work with the stuff and the resellers that work with the stuff aren't they don't really have the skill sets they advantage that right so last year Suzy we she really talked a lot about the growth a definite this year they came out with in Barcelona this year they they came up with a bunch of certifications for dev net now there they were actually coming out with a number of a partner certifications as well so the resellers can get certified but I think it's important that they continue to push their engineer base into gaining these new skills I'll give you an interesting data point for my research and that's you know that only about a quarter of networking engineers has ever made an API call right and so you look at all Cisco's new gear it's all API driven and so if you want to do something as simple as say get all the IP addresses in your network you can just use an API call for that right the other way to do it is you do a show command and the CLI your screen scrape and you take a visual basic trip that you parse it you know and you get it that way right so the API map using those is a lot easier and so I think Cisco's got a good strategy with Deb net they've grown that face a lot it's still relatively small you know it's under a million people and you think of the overall size the Cisco customer user base point that's where they gonna put some effort right more and more out driving adoption to them now well I think you're smarter than I think you're researching them they must be listening to you because they haven't really tried to jam that down their throats they've been very humble about it and I think a million is pretty damn good number I think Cisco again to your point they're bringing people into the water the low end first before you you go to the deep end so swim with the bubble if you will with definite what they did was they assumed the engineer had no knowledge of software because I think at first when they put the lot of the programs a place they assumed people would have some knowledge of how to code right and and I also think the industry did them a bit of a disservice we used her there was a lot of stuff written in the media how every network engineer needs to become a software developer well they don't have to summer get make them software developers but they at least have to come software power ease right so do your job through software but you don't have to be a developer and that's where definite really when it really matured is that diverge down to past developer engineer who's your saw common software skills and then you break down a specialist after that and so they've they've actually helped with the maturity of that they've changed their certification programs for reflect that and I think Devin that really is a big be and if they can transition that engineer base then it helps the adoption of the new on these I want to get your final thoughts on this segment on multi-cloud obviously it would be a really great win for it creates of interoperability strictly with the network intelligence cisco could bring to the table and others you got startups out there like aviatrix and others and vmware with nsx trying to get that for the security fabric a lot of action going on with multi cloud and networking your thoughts what does your research tell you what's gonna transpire how do you see that market playing out in my research shows that little R ad percent of companies prior to Co vid had multi-cloud on the roadmap and I'm assuming that's that's gone up I haven't actually done a survey since then um one of the I think it's funny koban exposed a lot of things from a lot of vendors right and I think one of the things that is is shown cracks in the cloud yeah you look at some of the the data and how many outages Microsoft had Google had some strains AWS has held up pretty well under the strain of of a lot of the higher utilization when coated but they've been building a lot of capacity into theirs as well so I think from a customer perspective it makes sense you don't want to put all your eggs in one basket some cloud providers are stronger in some regions they each have different their own different cloud platforms other private cloud platforms and the problem is is if you decide if you decide to go multi-cloud you can't use the cloud providers tools right so if I use an AWS load balancer that works great in AWS but it's not gonna help me with Azure or GCE similarly if I use GCP tools I can't extend that out the azure so something needs to connect those and be able to five security and policy and that's where multi cloud comes from and you're right there's some good startups there I think um the difference with Cisco this time versus the Sdn world was when as the ends came about I think Cisco didn't want that to happen and I think they actually actively worked against us the end and I've talked to chuck Robbins about that he said you'll never ever see Cisco do that again if something is good for the customers they want to lead that transition and so Cisco's been very active in multi focking and given they've got the install base already I do think they will help bring this long but there are some good stir yeah it's interesting Sdn really wasn't ready for primetime even when VMware bought in this era hey when it was still there I didn't have a lot of revenue it had a future VMware claims that's the saves and NSX was saved by a Sdn some people say was completely rewritten final thoughts on outlook and you see coming out of Ovid obviously it's been well reported we've been reporting VPNs have been under provision that was a blind spot bought a blind spots and disruption that wasn't forecasted in the classic sense there was no there was no you know hurricane there was no flood it was a covin invisible disruption yeah and there's no impact right like even with when you think of what happened with the the floods in New York and 9/11 people knew that they'd eventually go back and so business continuity and disaster recovery was a temporary thing and I can I set up a data center to work for a couple months so I can go back to New York that's not the case with koban where we're trying to manage for an undefined endpoint which is extremely difficult for an IT perspective I do think that Kogan again has highlighted the value of the network I think we'll see a lot of transition from VPN to sd when I think that's that's certainly good I think the rise in video will also cause a Wi-Fi upgrade cycle we'll get back to the office and I think you'll see a lot of focus on programmability and agility because I don't believe we're gonna see everybody return to the office was like one big bang John I think we're more likely to see is the future work to be almost like when you and I were in college we do a bunch of stuff at home we go to the campus when we have classes and when we want to meet people similarly we'll go to work when we have meetings and then in between meetings we'll go find an open place to work but in general we'll do a lot of work a lot more work from home in fact my research shows 93 percent of the business leaders I interviewed said they expect to see at least a 30 percent increase in the work from home post Kovan right so we're gonna have a lot more people doing that but it's not gonna be everyone working for home everybody work in the office it's gonna be a hybrid of the two people are gonna come and go and that bribes the need for agility and today's networks really not that agile and so I need I want to go back to college if we do thirsty happy hours do I mean have the whole week or the stupid stuff it's the final point you mentioned SP when I was talking with Dave Volante SP Minutemen just last week and I said you know this SD win today is not your grandfather's sdn meaning SP where it's changed a lot it's basically the internet now so what was the modern update definition of SD grin I mean it used to be you connect the wide area network you can have some campus you'd do some networking what is it now what's the same name but it's yeah what is it your journey the technology if you look at the adoption of anything right the first wave of stuff is to make the new stuff look like the old stuff so we put VoIP in we made it look a lot like TDM when we had cloud we lifted and shift it and how did we didn't really enjoy wraps and then we eventually get smart and think what can I do with the new thing that I can't do the old thing and so a lot of early SD win deployments were simply just replacements for MPLS and they were put in to save a bit of money but now companies are getting smarter they're thinking about what can I do with my SD win that I couldn't do before so there's a lot more tighter integration with security I think as companies but SD win in and and think about what the win is today John it used to be corporate offices and data centers I think it's everybody's house right and so being able to extend your win at the single people out to planes trains and automobiles you remember that movie but those are all getting connected as well people's back acts fan kiosk those are all becoming way endpoints right so that's where you need to embed more security in the network and so I think that's a transition we've seen into that see you and I think the technology has matured to the point where it's getting easier to deploy faster to flow and you're right we can use the internet for transport in some cases some will still keep there still be a lot of MPLS out there but I do think we wind up in this hybrid world but clearly then the time has never been better for for SD win I will see a rule of curve for that because it's the only way to extend the win the people's homes the things the cars and really anything that's connected you know that's such a great point and I think this is a real new once in the industry it's a whole nother rebirth of the category because the aperture is brighter you got policy you've got reliability and get security built in this is key key Johnny H salt key yeah yeah whole concept the AI ops becomes real because we're collecting data and we're able to use AI to automate operations so Z's we call it s T win 2.0 that's what you got to do we got making an acronym out of this come on we can't just saw s T when it is SD win - righto because it's the next it's that it's it's the second wave of it we're actually thinking about how to transform our companies so the the John Chambers quote of transition for transversus transformation is apropos because the like I said a lot of the waves that that Cisco went through early on was we transition the market and then we transform right and so SD win so far has been transitional moving away from the old thing but now in strength and defense formed where our entire network operates these gradients that always a pleasure to talk to you get the straight scoop for the signal right there from all the noise in the industry now more than ever people are gonna be focused on critical project so thanks for your insight as DK now can research great stuff and we'll keep keep following you in great guest thank you come on thanks John first burger okay cute conversation here remote we're doing our part either at home and studio quarantine in this is the cube virtual virtualization has come to the cube will do will do whatever it takes to get the content out there Z's thanks so much for coming I appreciate thanks for watching on John Currier [Music]

>>from Miami Beach, Florida It's the Q covering a Cronus Global Cyber Summit 2019. Brought to you by a Cronus. >>Welcome back with Cubes Coverage here for two days at the Cronus Global Cyber Sum of 2019. I'm John Courier, Post keeper in Miami Beach at the Fontainebleau Hotel, and I am here with the CEO and chairman of Cronus SP Sergei, known as SP. >>Yeah, joining that, that's fine. It's fine. >>So your inaugural event of the Global Cyber Summit What you're what you're feeling so far like it's >>very good to have exceeded the expectations. In terms of a dangerous with high quality audience. Everything is organized quite well. It's our first event of a kind. It's a first marks a transformation of the company from being data protection company to be decided protection company from the application company to be a platform. >>Talk about the vision and we're how you got here. Because again, the market's changing cloud computing, Internet of things, more threats than ever before data seems to be at the center of all this. >>Don't think about the team in terms of data, will look at 18 terms of foreclose, so workload could be day to put the application for the system. We also look at the team, not from the standpoint large passed him a small fast mark, but from the standpoint off and point, like your computer right here on the table or a mobile device from step with authority, which is a large that the center of a gentle price. Or it is a cloud like Amazon, like Google, like Microsoft. And from the standpoint of something in the middle, which we call EJ, and it's growing very rapidly, that's a small data center. That more door is that a small office that's also specialized vacations, like practically my hospital, like a railway station like restaurants. Like any retail location where you actually have specialized computers. Detective Lee servers running the infrastructure, for example. Every Starbucks location is actually 12 and those computers edge and then point. Need protection, need complete protection. And our mission is to provide a complete protection from the standpoint of safety, accessibility, privacy, authenticity of security that something which will go for any of us. >>You know, I think your divisions right on. In fact, when you think about data protection, my observation is it was because of disruption and operations. Somehow an event happened. Hurricane flood the operation of destructive. They gotta roll back and get the snapshots and bring it back. But security is now causing a disruption. I think you guys are honing in on with disruptions coming from a security vector way. Official mechanisms have to change a little bit. That seems a bit your success here with. >>I think we look at this holistically way, don't see really different, so safe its accessibility, privacy of authenticity and security. A love. This vectors are a problem, you know, perhaps authenticity. He's not yet visible as march, and privacy is new, So privacy is not the bad guys. You know, it's a good guys, guys. It's maybe yours. Employees. Maybe your partner. Or maybe maybe it's your customer. One. You don't want to see the information about somebody else and so alone. This is a threat, and you really don't want your infrastructure to be damage to your business to yourself. Unintentional damage. If you want to break something, you better break it, wasting your decision and you better be able to roll back so you know it comes from data protection, but it goes to security and privacy and authenticity. All of this together is important for defensive your idea. Infrastructure is functional and old times controlled by you. >>In your opinion, has ransomware provided a wake up call to I t around this area? Because that seems to be a theme. A lot with Ransomware. People realize that they're stuck highlights >>a problem somewhere is an interesting trend. I wouldn't really be happy about Ransomware around somewhere is a scene. So we help people to be protected against run somewhere. But that doesn't mean we like Ransomware. So yeah, >>extortion. Not really. Well, like, yeah, you're the one being extorted. >>Nice. But it's one of the wake up calls in reality again. It comes from all the directions. I think Ransomware is just very, very easy to understand. >>People can see and understand it. Explain You mentioned s a P A s. What does that explain that acronym? What does it mean? What's the vision behind >>Sabba says is safe Accessibility, privacy else intensity and security combined in a single product. That's what it means. It means that you know, don't lose in using everything is accessible at all times with the right people have access and you can control the access. Nothing is mortified in such ways that you don't know it was modified and no bad guys can break into your tea or into your date or NT applications >>you mentioned. The platform platforms are well known concept and computer science and certainly the Internet. You've seen great successes with platforms, enable something. How would you describe the enablement that comes from Cronus platform, Cyber platform. >>I think it comes back to what you start at the waist. There is a lot of new friends and part of this new Frances. The world for a while maybe 20 years ago looked like the world which is consolidating. And you can one vendor which provide solutions to watch majority of problems. Which was Michael, right? So you remember 1999. It looked like pretty much everybody is gonna use windows. Mark is not going to be there. Microsoft was making some inroads in Mobile was in C and so on and so forth. Well, now the water is consolidating. You have thousands of different types of workers. You have different systems. You have different applications. You have different cloud applications. You need to protect them in a very different way. That's another thing you need to integrate a lot about. You cannot do it all. So we opened our applications and our black from certain parties. Was event like this toe actually build on top of the platform to provide the functionality, which we don't >>You say that word system a few times, and I think this is interesting platform validation systems Thinking is like an operating system. It's a lot of consequences and systems The old system that seems that systems thinking is back in in the front lines of I t and technology because you got a cloud you got on premises, you got I ot way networks. It's a system, and so realistically thinking about it's interesting. Do you think people are getting their are you get the right thing to do? I think like a system >>wear simple people in a Cronus. We look at the world and we don't see anything but data by zeros and ones way don't look it everywhere, and I don't see anything but more clothes and these workers they could be in the cloud that could be on prayer. Music would be a partner location. It could be on your mobile device. It could be the whole device apart with. And we also see the world in terms of partners. And from our point of view, you know, it's it's was that people realize that, you know, people have idea needs to work on their partners to help him. So if I did, that work can do, innit? They cannot call their friends. They can communicate is a relative word possible head of the world. And so what we provide is a protection to make sure that it works a full time, no matter what is a possible challenge. >>That's me. Thank you for taking the time to answer some questions. I want to get one final question to you. News today Opening AP Eyes up Trading Developer network and a portal New New things. What's your message to the folks that want developing on your platform? What's the guiding principles with what's the simple value proposition of why I'm a developer? I wouldn't want to work on The Cronus is Global Platform >>so way might look relatively small. We're only 1.5000 people and we're only several $100 million. They were growing very rapidly. We have 6000 partners who can sell your products, and this number is going. Read it after you have 30,007 years. And so you have also a lot of data on the management. Five exabytes of data on the management and this amount of it is growing very rapidly. If you build applications for protection of this data, this number of workloads, this number off partners to sell it, you can sell your products successfully. Ultimately, for developers, it's It's about doing something which makes money and doing something which makes sense. And with our partner network, with our workload and they reach, they get to make sense and they get to make money. >>And it's a hot area. Cyber protection of a new Category Emerging out of the old data protection If you had to describe someone, the old waivers of the New way data protection the old way. Cyber Protection New Way. What's the difference between the two? >>Well, the difference is that includes security, privacy management, know sadistic management in one package. The difference is that it's designed to work in the world which is in parenting secure. It designed to work in the world where if you connect a network, you don't trust this network. And so if you have a cyber protection application cyber protection car where it has to be protected itself, that's >>thank you. Come on. Cue and taking the time out of your busy schedule to talk to us. Thank you. Very welcome. Appreciate it to give coverage here in Miami Beach across Global Cyber 7 2019 I'm John. Four year. Thanks for watching two days of coverage here. Be right back.

welcome to the cube I'm Lisa Martin with Keith Townsend and we are in Orlando sa piece sapphire now 2018 we're very proud to be in the NetApp booth now that sa very long standing partnership with sa PA welcome to Cuba thank you we're so glad you guys are here over a million people are expected to engage with the SH the experience both in person and online that's enormous yes sa P is the cash register of the world 70% of the world's transactions go through si people most of us don't see it a lot of the SI p products like Hybris like Arriba success factors are built on meta meta is 26 years young now and has undergone a big transformation from traditional storage company to more cloud we're gonna be now that data management company for hybrid clouds every customer has a different rate of motion to the cloud that's why we have to spend an awful lot of time listening to our customers don't and then talkative the c-level executives in the business side to say what are your what are your expectations about the technology right whether if the reduction of labor improved quality again overall equipment effectiveness and help them understand what the treaty chuckles on choice we're hearing for customers is I need choice I need to move my data around on-prem into whatever hyper hyper scalar environment you want fast efficient with analytics readouts everybody looks at their phone when we make a deposit we expect to see that deposit instantaneously right the business needs to operate just as instantaneously and a company like NetApp could build this data fabric to connect them seamlessly so that the customers have choice it's interaction of sensors and to way taking IOT data in and then also feeding it back into signals but that's part of the interface of the software people can deploy much more effectively with a lower skill set right so there's not that hurdle really allows the administrators to configure dream workspace where you can get all the data that you need to work with in one place takes all that noise and makes it into one screen so that you can just simply make and change the data the way you would expect to on a spreadsheet sa P is serious about this C for Hana move of being able to say you know what we are going to create an ecosystem of truck if you have a developer and your enterprise and you say you know what I'm a big sa p user but I actually want to develop a custom map or are there some things I might do then s ap makes available to Leonardo a machine learning foundation and you can take advantage of that and develop a customized again not just a products company but an ecosystem company on C sapphire in Orlando is a great example of how they're expanding the brand is that say P can't do everything so we work with a lot of specialists we were critiques we couldn't do this without hardware partners with storage Annette app has proven you know to be one of those partners that could deal with a myriad of data types from a myriad of applications that forces the stretch into voice recognition that voices the data mining and data analytics and the like augmented intelligence to augment humanity this connection of humans and machines working together they're doing all this genomic research personalized medicine for cancer patients throughout Europe using Hana I even know about it public safety if you could think about that that's a big thing to focus on thinking about using drones for first responders smart farming throughout all the Netherlands reducing pesticide use water usage dramatically down and they increased yields by 10% helping customers change their business change industries save lives pretty cool stuff yeah SAV has a little ways to go yet that that's kind of you talk to any HDI customer validated and certified for Hana is a bad word today but s ap understands it in their there they're moving to certify the pot platform for HDI so I thought that was a great example of them listening to customers and continuing to transform over the years we'd love to hear you know from customers hey can I eat with a buddy could I put this object you know on that object together and build a process basically there's almost everywhere place where the net up product will fit but again we have to make session where's the place to start step back and look at what perhaps other competitors have done in their space or in completely different industries are compared to making great content the cute makes great content that content would be found people will take notice you make a great product that impacts people's lives it's no wonder that s ap is near the top of that brand recognition brand value seventeenth on the list so if you want to become a leader or a thought leader in your own specific industry join the SMP HANA community make the investments in SP Leonardo work with SP work with net after and like Bill says let's get it done thank you all for being here we're a static for having the cube in our booth Lisa Martin with Keith Townsend on the cube from the net out booth at SVP sapphire now 2018 thanks for watching [Music]