>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Everyone welcome back to the cubes coverage of a Davis reinvent 2020. It's a virtual conference this year. This is the Cube virtual. I'm John for your host. We're not in person this year. We're doing it remote because of the pandemic, but it's gonna be wall to wall coverage for three weeks. We've got you covered. And we got a great interview signature interview here with Two Cube alumni's Matt Garment, vice president of sales and marketing at AWS, formerly head of the C two and, of course, Sanjay Poon in CEO of VM Ware. Both distinguished guests and alumni of the Cube. Good to see you, Sanjay. Matt. Thanks for coming on. Uh, let's just jump into it. How are you guys doing? >>Great. Exciting. Excited for reinvent and, uh, excited for the conversation. So thanks for having us on. >>Yeah, I'm great to be here. We are allowed to be 6 ft away from each other, so I came in, but super excited about the partnership. Matt and I have been friends for several years on. You were so excited about another reinvent, the different circumstances doing all virtual. But it's a fantastic partnership. >>You know, I look forward to reinvent one of my most favorite times of the year, and it's also kind of stressful because it's backs up against Thanksgiving. And but, you know, you get through it, you have your turkey and you do the Friday and you guys probably Kino, perhaps, and all things going on and then you go to Vegas is a few celebration. We're not doing it this year. Three weeks eso There's gonna be a lot of big content in the first week, and we're gonna roll that out. We're gonna cover it, But it's gonna be a different celebrations so mad. I know you're in front center on this, Uh, just real quick. What are what do you expect people to be doing on the system? What's your expectations and how is this all going to play out? >>Yeah, you know, it's gonna be different, but I think we have Justus much exciting news as ever. And, you know, it's gonna be over a three week period. I think it actually gives people an opportunity to Seymour things. I think a lot of times we heard from, uh, from customers before was they love the excitement of being in Vegas, and we're not gonna be able to exactly replicate that, but But we have a lot of exciting things planned, and it'll enables customers to get two more sessions Seymour of the content and really see more of the exciting things that are coming out of AWS. And there's a lot s over the three weeks I encourage folks toe to dive in and really learn things is a This is the opportunity for customers to learn about the cloud and and some really cool things coming out. We're excited. >>Well, congratulations on all the business performs. I know that there's been a tailwind with the pandemic as people wanna go faster and smarter with cloud and on premise and Sanjay, you guys have a great results as well. Before I get into some of my point. Of course, I have a lot of I know we don't a lot of time, but I want to get a nup date on the relationship we covered in three years ago when, uh, Andy Jassy and team came down to San Francisco with Pat Gelsinger, Raghu, Sanjay. All this went down. There were skeptics. Relationship has proven to be quite strong and successful for both parties because you guys take a minute so you will start with you and talk about the relationship update. Where you guys at, What's the status? The relationship people want to know. >>Yeah, I think John, the relationship is going really well. Uh, it's rooted in first off, a clear understanding that there's value for customers. Um, this is the best of the public cloud in the private cloud in a hybrid cloud journey. And then, secondly, a deep engineering effort. This wasn't a Barney announcement. We both decided Matt in his previous role, was running a lot of the engineering efforts. Uh, we were really keen to make this a deep engineering effort, and often when we have our connected Cube ers, we're doing one little later this afternoon. I often can't tell when a Amazon personal speaking when a VM ware person speaking we're so connected both the engineering and then the go to market efforts. And I think after the two or three years that the the solution has had to just state and now we have many, many customers started to get real value. The go to market side of the operations really starting take off. So we're very excited about it. It is the preferred and the best offering. We think in the market, Um, and for Vienna, where customers. We message it as the best place for Vienna workload that's running on V sphere to move into Amazon. >>Matt, what's your take on the relationship update from your >>standpoint, I agree with Sanjay. I think it's been it's been fantastic. I think like you said, some folks were skeptical when we first announced it. But But, you know, we knew that there was something there and I think as we've gotten even deeper into this partnership, Onda figured out how we can continue Thio integrate more deeply both with on Prem and into the cloud. Our customers have really guided us and I think that's that's enabled us to further strengthen that partnership, and customers continue to get more excited when they see how easy it is to move and operate their VM where in their V sphere workloads inside of a W S on how it integrates well with the AWS environment, Um on they can still use all of the same functions and capabilities that they they built their business on the inside of the sphere. We're seeing bigger and bigger customers really just embrace us, and the partnerships only grown stronger. I think you know, Sanjay and I, we do joint sales calls together. I think that the business has really, really grown. It's been it's been a fantastic partnership. >>I was talking about that yesterday with being where in eight of us teams members as well. I want to get your thoughts on this cultural fit. Sanjay mentioned e think the engineering cultures air there. The also the corporate culture, both customer focused. Remember Andy Jassy told me, Hey, we're customer focused like you're making big. You make big, big statements Public Cloud and now he goes toe hybrid. He's very reactive to the customers and this is a cultural thing for me, was an VM where what are the customers saying to you now? What are you working backwards from this year? Because there's a lot to work backwards from. You got the pandemic. You got clear trends around at modernization automation under the covers, if you will. And you got VM Ware successful software running on their cloud on AWS. You got other customers. Matt, what's the big trends right now that are highlighted in your in your world? >>Yeah, it's a good question. And I think you know, it really does highlight the strength of this this hybrid model, I think, you know, pre pandemic. We had huge numbers of customers, obviously kind of looking at the cloud, but some of the largest enterprises in the world, in the more traditional enterprises, they really weren't doing a lot, you know, they were tipping their toes in, and some of the forward leaning enterprises were being really aggressive about getting into the cloud. But, you know, many people were just, you know, kind of hesitant or kind of telling, saying, Yes, we'll go learn about the cloud. I think as soon as the pandemic hit, we're really starting to see some of those more traditional enterprises realize it's a business imperative for them. Toe have ah, big cloud strategy and to move there quickly, and I I think our partnership with VM Ware and the VMC offering really is allowing many of these large enterprises to do that. And we see we see big traditional enterprise is really accelerating that move into the cloud. It gives them the business agility they need that allows them to operate their environment in uncertain world that allows them to operate remotely on DSO. We're seeing all of those trends, and I think I think we're going to continue to see the acceleration of our joint business. >>Sanjay, your thoughts. Virtualization has hit ah, whole nother level. It's not like server virtualization like it's cultural, it's societal. What's your take? >>Yeah, I think you know, virtualization is that fabric that connects the private cloud to the public cloud. It's the basis for a lot of the public cloud infrastructure. So when we listen to customers, I think the first kind of misconception we had to help them with was that it had to be choice between one or the other and being able to take Vienna Cloud, which was basically compute storage networking management and put that into the bare metal capabilities of AWS, an engineer deep into the stack and all the services that Matt and the engineering team were able to provide to us now allows that sort of application that sitting on premise to move like a house on wheels into a W s. And that's a beautiful experience we've even shown in in conferences, like a virtual reality moving of a workload, throwing a workload into a W s and a W s catches it. It's a good metaphor in a good way to think of those things that VM were like like the most playing the customers like like the emotional moves nicely. But then the other a misconception we had thio kind of illustrate to our customers was that you could once you were there, uh, let's take that metaphor. The house and wheels renovate the house with all the I think there's probably $200 services that Amazon AWS has. Um, all of a I data services be I I o t. Whatever. You have all the things that Andy and Matt kind of talk about in any of the reinvents. You get to participate and build on those services so it has. It's not like you take this there, and then it's sort of a dead end. You get to modernize your app after you migrated. So this migrate and modernize motion is something that we really start to reinforce with our customers, and it doesn't matter which one you do. First, you may modernize first and then migrate or migrate first and modernize. And in the modernized parts we've also made some significant investments and containers and Tan Xue. We could talk about that at this time and optimizing that for both the private cloud world and the public cloud world like Amazon. >>You know, Matt, this is something that we're talking about a lot this week. These few weeks with reinvent going on this everything is a service trend has a lot of things under it, like automation. Higher level services. One of the critics would say, Three years ago, when this announcement relationship between VM Ware enables came out was, Oh, Amazon's is going to steal all of their customers and VM we're screwed. Turns out that's not the case. You guys are both winning and rising. Tide floats all boats because VM Ware has an operator kind of market. People are operating their business with VM ware and they're adding higher level services with Cloud native, So it Xan overall win, so that was proven false. So clearly the new trend You guys are gaining a large enterprises that wanna go faster, have that existing operator kind of legacy stuff or pre conditions of the enterprise like VM ware. So how do you guide the technology teams and how do you look at this? Because this is where customers are like saying, Hey, I cannot operate my business house on wheels, modernize it in real time, come out a covert with the growth strategy and go faster your interview on all that. >>So I think you're exactly right. I think we see a lot of customers who see I don't want to necessarily lose what I have. I want to add on top of that, And so whether that's adding machine learning and kind of figuring out how they can take their data from various different data silos and put them into a large data lake and gets the machine learning insights on top of that, whether they want to do analytics, um, whether they want to d i o T. Whether they want to modernize two containers, I think there's there's a whole bunch of ways in which customers are looking at that. But you're absolutely right. It's not a I'm gonna go from a to B. It's I'm gonna take a and add B to it and, um, we see that's that's over and over again. I think what we've seen from customers doing it and, um and they're really taking advantage of that, right? And I think customers see all the announcements that we're making a reinvent over the next three weeks, and they wanna be able to take advantage of those things right? It's it's they want to be able to add that onto their production environment. They want to take a lot of the benefits they've gotten from their VM Ware environment, but also add some of these innovations from AWS. And I think that Z that really is what we focus on is what our engineering teams focus on. You know, we have joint engineering efforts to figure out how we can bridge that gap, right, so that they BMR environments can very easily reach into their A W s environment and take advantage of all the new services and offerings that we have there. So, um, that's that's exactly what our joint teams really pushed together. >>Sanjay, I wanna get your thoughts on this and we talk. Two years ago, we had a conversation with Cuba. I ask you since this is a great move for VM Ware because it simplifies the messaging and clears up the whole cloud strategy. And you had said something that I'm gonna bring this back today. You said it's not just simplifying the messaging to customers about what we're gonna do in the cloud. It's going to simplify their life is gonna make things easier. Have them set up for better bitterness. Goodness down the road. Can you take him in to explain what that what that goodness was? What came out of the simplicity of the messaging, the simplicity of solution? Where are we now? How does that all kind of Italian together? Can you take him in to explain that? >>Yeah, I think when the history books are written, John, um, this partnership will be one of the most seminal partnerships because from VM Ware's perspective, maybe a little from Amazon Let Matt talk about if you feel the same way. This is a headwind turning into a tailwind. I think that's sort of narrative that VM ware in Amazon were competing each others that maybe was the early story. In the early days of A W s Progress and VM, we're trying to build our own public cloud and then divesting that, uh, Mats, a Stanford grad. I'm a Harvard grad. So one day there'll be a case study. I think in both schools about how this partnership we have a strong partnership with deadlines, sometimes joke. That's a little bit of an arranged marriage we don't have. We didn't have much saying that because AMC Bardhyl so that's an important partnership. But this one we have to work hard to create. And I tell our customers, Del on AWS are top partners. And as you think about what we've been able to do here, the simplicity to the customer for you, as you describe this, is being able to really lower cost of ownership in any process, in terms of how they're building and migrating APs to be the best optimization of hardware, software and services. And the more you could make that better, simpler, cheaper through software and through the movement to the cloud. Um, I think customers benefit, and then you know, Of course, the innovation machine of both companies. Uh, Amazon's really building. I mean, every time I go to read and I'm just amazed at the Yeah, I think it's a near 200 services that they're building in all of these rich layers. All of those developers, services and, I don't know, two million customers. The whatever number of people that have it reinvent this year get to participate on top of all the applications and the virtualization infrastructure we built over the 20 years of our history. Uh eh. So I hope, you know, as we continue do this, this is all now, but customers success large and small customers being able to. And I'm very gratified to three years since we announced this that we're getting very good customer traction. And for us, that's gonna be a key focus to the reinvent, uh, presence we >>have at their show. It really just goes to show you when you built, when you invest in relationships up and down the spectrum from engineering Ah, product and executive. It kind of does pay off. Congratulations to you guys on that matter. I want to get your thoughts on where this kind of going because you're talking about the messaging from VM ware in the execution that comes behind it is the best, you know, Private public cloud hybrid cloud success. There's momentum there. What are the customers saying to you when you look at customer proof points? Um, what do you point to? Because you're now in charge of sales and marketing, you have to take now the installed base of Amazon Web services, which is you got the Debs and startups and, you know, cloud scale to large enterprises. Now you got the postcode growth. Go fast, cloud scale. You've got a huge customer base. You've got a target. These guys, you gotta bring this solution. What are they saying about the VM ware AWS success? Can you share some? Some >>days I'd be happy to, I think I mean, look, this this is what gets, uh, us excited. I know Sanjay gets just as excited about this. It's and it's really it's resonating across our customer base. You know, there's folks like S and P Global who's a large enterprise, right? They had, uh, they had a hardware procurement cycle. They were looking at them on front of implementation and they looked at a WSMV I'm wearing. They said, Look, we want to migrate. All of our applications want to migrate. Everything we have into the cloud, I think it was 150 critical financial applications that they seamlessly migrated with zero downtime Now all running on BMC in the cloud. Um, you look at governments, right? We have thing folks like the Scottish government on many government customers. We have folks that are like Penny Mac and regulated industries. Um, that really took critical parts of their application. Andi seamlessly migrated them to to A W S and BMC, and they looked at us. And when we talk to these customers, we really say, like, where is the best place for us to run these v sphere workloads? And, um and the great thing is we have a consistent message. We we know that it's the right that that aws nbn where's the best place to run those VCR workloads in the cloud? And so as we see enterprises as we see regulated industries as we see governments really looking to modernize and take advantage of the cloud, we're seeing them move whole swaths of their applications. And this is not just small parts. These are the critical really mission critical applications that they know that they need to get out flexibility on, and they want to get that agility. And so, um, you know, there's been a broad swath of customers like that that have really moved large large pieces of their application in date of us. So it's been fun to see. >>And John, if I might add to that what we've also sought to do is pick some of those great customers like the ones that Matt talked about and put them on stage. Uh, VM world. In previous, we had Freddie Mac and we had, you know, I h s market and these are good examples in the few that Matt talked about. So I'm super excited. I expect there'll be many more reinvent we did. Some also be in world. So we're getting these big customers to talk about this because then you get the 10 phenomenon. Everyone wants to come to this, tend to be able to participate in that momentum. The other thing I'm super excited about it started off as a US phenomenon. Just the U s customers, but I'm starting to see riel interest from European and a p J customers. Asia Pacific customers in countries Australia, Japan, U. K, France, Germany. So this becomes a global phenomenon where customers understand that this doesn't have to be just the U. S centric customers that are participating. And then that was, for me a very key objective because the early customers always gonna start in the Geo where, um, you know, there's the most resonance with the public cloud. But now we're starting to see this really take off in many parts of the world. >>Yeah, that's a great point at something we can talk about another conversation. Maybe we will bring you guys into some of our live check ins throughout the three weeks we're doing here. Reinvent. But this global regional approach Matt has been hugely successful. Um, we're on Amazon. We have Q breaches because by default, we're on top of Amazon. You're seeing companies build on top of Amazon. Look a snowflake. The largest I po in the history of Wall Street behind VM Ware. They run Amazon, right? And I will probably have other clouds to down the road. But the point is you guys are enabling this. >>Yeah, global. And it's it is one of the things that we hear from customers that they that they love about running in the cloud is that, you know, think about if you had Teoh, you know you mentioned snowflake. Imagine if your snowflake and you have to go build data centers everywhere. If you had to go roll out toe to Europe and then you have to build data centers in Germany and then you have to build data centers and the U. K. And then you had to go build data centers in Australia like that would be an enormous cost and complexity, and they probably wouldn't do it frankly, at their early stage, Um, you know, now they just they spin up another stack and their ableto serve their customers anywhere around the world. And we're seeing that from our VM or customers where, you know, they actually are spinning up brand new vmc clusters, uh, where they weren't able to do it before, where they either had toe operate from a single stack. Um, now they're able to say, you know what? I'd love to have Ah, vm or stack in Australia, and they're able to get that up and running quickly. And so I do think that this is actually enabling new business it z, enabling customers to think about. How do they put their computer environment close to where their end users are or where they need that computer environment to be sometime just close to end users? Sometimes it's for data residency requirements, but it really kind of enables customers to do that. Where think about in a cove in world, if you have to go launch a data center in a new country, you probably just I mean, maybe it wouldn't even be possible to do that way are today. And now it's just FBI calls. So >>I mean, your point about going slows in an option. The imperative we have, you know, even expression here inside silicon and on the Cube team. Is there a problem? Yes. Is it important? Yes. What are the consequences if you don't solve the problem? Can you quantify those consequences? And then you gotta look at solutions and look at the timing. So you got timing. You got cost. You got the consequences of not doing it. And speed all those things. No. No one's gonna roll out of data center in six months if they if they tried so again, Cloud. And I'm trying to come into play here. You gotta operate something. It's a hand in the glove, its's. I'm seeing the cream rise to the top with covert. You're seeing real examples of riel scale riel value problems that you solve that important that have consequences that can be quantified. I mean, it's simple. Is that >>you know, John, I was gonna say, in addition to this via McLeod on aws were also pretty, you know, prominent AWS customer for some of our services. So some of the services that we've seen accelerate through Covic Are these distributed workforce security capabilities? Eso we resume internally, that obviously runs on AWS. But then surrounding that with workspace one and carbon like to secure the laptop that goes home. Those services of us running A W. S two. So this is one of those places where we're grateful that we could run those cloud services because we're also just like Snowflake and Zoom and others. Many of the services that we build that our SAS type services run on Amazon, and that reinforces the partnership for us. Almost like a SAS customer. >>Well, gentlemen, really appreciate your insight. As always, a great conversation. We could go for another hour. You guys with leaders of your organizations, you're at the front lines as managing through the pandemic will have you guys come into our check ins throughout the three weeks now here during reinvent from or commentary. But I'd like to end this segment by sharing. In your opinion, what is the most important thing that the audience should pay attention to this year at Reinvent? I know there's a lot of things going on. It's three weeks, not four days. It's so it's longer, but still there's a lot of announcements, man, on your side vm where you got the moment and you got your announcements. What should customers pay attention to this reinvent Virtual 2020. >>So, do you wanna go first? >>No, man, it's your show. You go first. E >>I would encourage folks toe Really think about and plan the three weeks out. This this is the opportunity to really dive in and learn. Right? Reinvent is as as many of you know, this This is just a different type of conference. It's not American Conference. This is a learning conference, and and even virtually that doesn't change. And so I encourage. Look across the broad swath of things that we're doing. Learn about machine learning and what we're doing in that space. Learn about the new compute capabilities or container capabilities. Learn about you know what, what is most relevant to your business if you're looking about. Hey, I have an on premise data center, and I'm looking about how I extend into the cloud. There's a lot of new capabilities around BMC and AWS that makes sense, but there's also a lot of cool announcements around just other services. Um, that could be interesting. We have a ton of customers. They're giving talks. And learning from other customers is often the best way to really understand how you can get the most value out of the cloud. And so I encourage folks toe really kind of block that time. I think it's easy when your remote to get distracted by, you know, watching Netflix or answering emails or things like that. But this is this is a great opportunity to block that schedule. Find the time that you have to really spend time and dive into the sessions because we have a ton of great content on a lot of really cool launches coming up. >>Yeah, I'm just very quickly. I would like one of things I love about Amazon's culture and were similar. VM Ware is that sort of growth mindset. Learn it all and I'm looking forward myself personally to going to reinvent university. This is three weeks of learning, uh, listening to many of those those things. I learned a ton and I've tried to have my own sort of mindset of have being a learn it all as opposed to know it. Also these air incredible sessions and I would also reinforce what Matt said which is going find pure customers of yours that are in your same vertical. We're seeing enormous success in the key verticals Vienna plays in which itself called financial services public sector healthcare manufacturing, CPG retail. I mean, whatever it is so and many of those customers will be, uh, you know, doing virtual talks or we have case studies of use cases because often these sort of birds of a feather allow you to then plan your migration of modernization journey in a similar >>fashion, Matt Sanjay, always great to get the leaders of the two biggest companies in our world A, W s and VM where to share their perspectives. Uh, this year is gonna be different. I'm looking forward to, you know, really kinda stepping up and leaning into the virtual because, you know, we're gonna do three weeks of cube coverage. We have, like, special coverage days, Tuesday, Wednesday, Thursday for each of the three weeks that we're in. And we're gonna try to make this fun as possible. Keep everyone engaged on tryto navigate, help people navigate through the virtual world. So looking forward to having you guys back on and and sharing. Thanks for coming. I appreciate it. Thank you very much. Okay, this is the cubes. Virtual coverage of virtual reinvent 2020. I'm John for your host. Stay with us. Silicon angle dot com. The cube will be checking in with our live coverage in and out of the sessions and stay with us for more wall to wall coverage. Thanks for watching. Yeah,

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome back to the cubes. Virtual coverage of VM World 2020 Virtual I'm John for your host of the Cube, our 11th year covering V emeralds. Not in person. It's virtual. I'm with my coast, Dave. A lot, of course. Ah, guest has been on every year since the cubes existed. Sanjay Putin, who is now the chief operating officer for VM Ware Sanjay, Great to see you. It's our 11th years. Virtual. We're not in person. Usually high five are going around. But hey, virtual fist pump, >>virtual pissed bump to you, John and Dave, always a pleasure to talk to you. I give you more than a virtual pistol. Here's a virtual hug. >>Well, so >>great. Back at great. >>Great to have you on. First of all, a lot more people attending the emerald this year because it's virtual again, it doesn't have the face to face. It is a community and technical events, so people do value that face to face. Um, but it is virtually a ton of content, great guests. You guys have a great program here, Very customer centric. Kind of. The theme is, you know, unpredictable future eyes is really what it's all about. We've talked about covert you've been on before. What's going on in your perspective? What's the theme of your main talks? >>Ah, yeah. Thank you, John. It's always a pleasure to talk to you folks. We we felt as we thought, about how we could make this content dynamic. We always want to make it fresh. You know, a virtual show of this kind and program of this kind. We all are becoming experts at many Ted talks or ESPN. Whatever your favorite program is 60 minutes on becoming digital producers of content. So it has to be crisp, and everybody I think was doing this has found ways by which you reduce the content. You know, Pat and I would have normally given 90 minute keynotes on day one and then 90 minutes again on day two. So 180 minutes worth of content were reduced that now into something that is that entire 180 minutes in something that is but 60 minutes. You you get a chance to use as you've seen from the keynote an incredible, incredible, you know, packed array of both announcements from Pat myself. So we really thought about how we could organize this in a way where the content was clear, crisp and compelling. Thekla's piece of it needed also be concise, but then supplemented with hundreds of sessions that were as often as possible, made it a goal that if you're gonna do a break out session that has to be incorporate or lead with the customer, so you'll see not just that we have some incredible sea level speakers from customers that have featured in in our pattern, Mikey notes like John Donahoe, CEO of Nike or Lorry beer C I, a global sea of JPMorgan Chase partner Baba, who is CEO of Zuma Jensen Wang, who is CEO of video. Incredible people. Then we also had some luminaries. We're gonna be talking in our vision track people like in the annuity. I mean, one of the most powerful women the world many years ranked by Fortune magazine, chairman, CEO Pepsi or Bryan Stevenson, the person who start in just mercy. If you watch that movie, he's a really key fighter for social justice and criminal. You know, reform and jails and the incarceration systems. And Malala made an appearance. Do I asked her personally, I got to know her and her dad's and she spoke two years ago. I asked her toe making appearance with us. So it's a really, really exciting until we get to do some creative stuff in terms of digital content this year. >>So on the product side and the momentum side, you have great decisions you guys have made in the past. We covered that with Pat Gelsinger, but the business performance has been very strong with VM. Where, uh, props to you guys, Where does this all tie together for in your mind? Because you have the transformation going on in a highly accelerated rate. You know, cov were not in person, but Cove in 19 has proven, uh, customers that they have to move faster. It's a highly accelerated world, a lot. Lots changing. Multi cloud has been on the radar. You got security. All the things you guys are doing, you got the AI announcements that have been pumping. Thean video thing was pretty solid. That project Monterey. What does the customer walk away from this year and and with VM where? What is the main theme? What what's their call to action? What's what do they need to be doing? >>I think there's sort of three things we would encourage customers to really think about. Number one is, as they think about everything in infrastructure, serves APS as they think about their APS. We want them to really push the frontier of how they modernize their athletic applications. And we think that whole initiative off how you modernized applications driven by containers. You know, 20 years ago when I was a developer coming out of college C, C plus, plus Java and then emerge, these companies have worked on J two ee frameworks. Web Logic, Be Aware logic and IBM Web Street. It made the development off. Whatever is e commerce applications of portals? Whatever was in the late nineties, early two thousands much, much easier. That entire world has gotten even easier and much more Micro service based now with containers. We've been talking about kubernetes for a while, but now we've become the leading enterprise, contain a platform making some incredible investments, but we want to not just broaden this platform. We simplified. It is You've heard everything in the end. What works in threes, right? It's sort of like almost t shirt sizing small, medium, large. So we now have tens Ooh, in the standard. The advanced the enterprise editions with lots of packaging behind that. That makes it a very broad and deep platform. We also have a basic version of it. So in some sense it's sort of like an extra small. In addition to the small medium large so tends to and everything around at modernization, I think would be message number one number two alongside modernization. You're also thinking about migration of your workloads and the breadth and depth of, um, er Cloud Foundation now of being able to really solve, not just use cases, you are traditionally done, but also new ai use cases. Was the reason Jensen and us kind of partner that, and I mean what a great company and video has become. You know, the king maker of these ai driven applications? Why not run those AI applications on the best infrastructure on the planet? Remember, that's a coming together of both of our platforms to help customers. You know automotive banking fraud detection is a number of AI use cases that now get our best and we want it. And the same thing then applies to Project Monterey, which takes the B c f e m A Cloud Foundation proposition to smart Knicks on Dell, HP Lenovo are embracing the in video Intel's and Pen Sandoz in that smart make architectural, however, that so that entire world of multi cloud being operative Phobia Macleod Foundation on Prem and all of its extended use cases like AI or Smart Knicks or Edge, but then also into the AWS Azure, Google Multi Cloud world. We obviously had a preferred relationship with Amazon that's going incredibly well, but you also saw some announcements last week from, uh, Microsoft Azure about azure BMR solutions at their conference ignite. So we feel very good about the migration opportunity alongside of modernization on the third priority, gentlemen would be security. It's obviously a topic that I most recently taken uninterested in my day job is CEO of the company running the front office customer facing revenue functions by night job by Joe Coffin has been driving. The security strategy for the company has been incredibly enlightening to talk, to see SOS and drive this intrinsic security or zero trust from the network to end point and workload and cloud security. And we made some exciting announcements there around bringing together MAWR capabilities with NSX and Z scaler and a problem black and workload security. And of course, Lassiter wouldn't cover all of this. But I would say if I was a attendee of the conference those the three things I want them to take away what BMR is doing in the future of APS what you're doing, the future of a multi cloud world and how we're making security relevant for distributed workforce. >>I know David >>so much to talk about here, Sanjay. So, uh, talk about modern APS? That's one of the five franchise platforms VM Ware has a history of going from, you know, Challenger toe dominant player. You saw that with end user computing, and there's many, many other examples, so you are clearly one of the top, you know. Let's call it five or six platforms out there. We know what those are, uh, and but critical to that modern APS. Focus is developers, and I think it's fair to say that that's not your wheelhouse today, but you're making moves there. You agree that that is, that is a critical part of modern APS, and you update us on what you're doing for that community to really take a leadership position there. >>Yeah, no, I think it's a very good point, David. We way seek to constantly say humble and hungry. There's never any assumption from us that VM Ware is completely earned anyplace off rightful leadership until we get thousands, tens of thousands. You know, we have a half a million customers running on our virtualization sets of products that have made us successful for 20 years 70 million virtual machines. But we have toe earn that right and containers, and I think there will be probably 10 times as many containers is their virtual machines. So if it took us 20 years to not just become the leader in in virtual machines but have 70 million virtual machines, I don't think it will be 20 years before there's a billion containers and we seek to be the leader in that platform. Now, why, Why VM Where and why do you think we can win in their long term. What are we doing with developers Number one? We do think there is a container capability independent of virtual machine. And that's what you know, this entire world of what hefty on pivotal brought to us on. You know, many of the hundreds of customers that are using what was formerly pivotal and FDR now what's called Tan Xue have I mean the the case. Studies of what those customers are doing are absolutely incredible. When I listen to them, you take Dick's sporting goods. I mean, they are building curbside, pick up a lot of the world. Now the pandemic is doing e commerce and curbside pick up people are going to the store, That's all based on Tan Xue. We've had companies within this sort of world of pandemic working on contact, tracing app. Some of the diagnostic tools built without they were the lab services and on the 10 zoo platform banks. Large banks are increasingly standardizing on a lot of their consumer facing or wealth management type of applications, anything that they're building rapidly on this container platform. So it's incredible the use cases I'm hearing public sector. The U. S. Air Force was talking about how they've done this. Many of them are not public about how they're modernizing dams, and I tend to learn the best from these vertical use case studies. I mean, I spend a significant part of my life is you know, it s a P and increasingly I want to help the company become a lot more vertical. Use case in banking, public sector, telco manufacturing, CPG retail top four or five where we're seeing a lot of recurrence of these. The Tan Xue portfolio actually brings us closest to almost that s a P type of dialogue because we're having an apse dialogue in the in the speak of an industry as opposed to bits and bytes Notice I haven't talked at all about kubernetes or containers. I'm talking about the business problem being solved in a retailer or a bank or public sector or whatever have you now from a developer audience, which was the second part of your question? Dave, you know, we talked about this, I think a year or two ago. We have five million developers today that we've been able to, you know, as bringing these acquisitions earn some audience with about two or three million from from the spring community and two or three million from the economic community. So think of those five million people who don't know us because of two acquisitions we don't. Obviously spring was inside Vienna where went out of pivotal and then came back. So we really have spent a lot of time with that community. A few weeks ago, we had spring one. You guys are aware of that? That conference record number of attendees okay, Registered, I think of all 40 or 50,000, which is, you know, much bigger than the physical event. And then a substantial number of them attended live physical. So we saw a great momentum out of spring one, and we're really going to take care of that, That that community base of developers as they care about Java Manami also doing really, really well. But then I think the rial audience it now has to come from us becoming part of the conversation. That coupon at AWS re invent at ignite not just the world, I mean via world is not gonna be the only place where infrastructure and developers come to. We're gonna have to be at other events which are very prominent and then have a developer marketplace. So it's gonna be a multiyear effort. We're okay with that. To grow that group of about five million developers that we today Kate or two on then I think there will be three or four other companies that also play very prominently to developers AWS, Microsoft and Google. And if we're one among those three or four companies and remembers including that list, we feel very good about our ability to be in a place where this is a shared community, takes a village to approach and an appeal to those developers. I think there will be one of those four companies that's doing this for many years to >>come. Santa, I got to get your take on. I love your reference to the Web days and how the development environment change and how the simplicity came along very relevant to how we're seeing this digital transformation. But I want to get your thoughts on how you guys were doing pre and now during and Post Cove it. You already had a complicated thing coming on. You had multi cloud. You guys were expanding your into end you had acquisitions, you mentioned a few of them. And then cove it hit. Okay, so now you have Everything is changing you got. He's got more complex city. You have more solutions, and then the customer psychology is change. You got to spectrums of customers, people trying to save their business because it's changed, their customer behavior has changed. And you have other customers that are doubling down because they have a tailwind from Cove it, whether it's a modern app, you know, coming like Zoom and others are doing well because of the environment. So you got your customers air in this in this in this, in this storm, you know, they're trying to save down, modernized or or or go faster. How are you guys changing? Because it's impacted how you sell. People are selling differently, how you implement and how you support customers, because you already had kind of the whole multi cloud going on with the modern APS. I get that, but Cove, it has changed things. How are you guys adopting and changing to meet the customer needs who are just trying to save their business on re factor or double down and continue >>John. Great question. I think I also talked about some of this in one of your previous digital events that you and I talked about. I mean, you go back to the last week of February 1st week of March, actually back up, even in January, my last trip on a plane. Ah, major trip outside this country was the World Economic Forum in Davos. And, you know, there were thousands of us packed into the small digits in Switzerland. I was sitting having dinner with Andy Jassy in a restaurant one night that day. Little did we know. A month later, everything would change on DWhite. We began to do in late February. Early March was first. Take care of employees. You always wanna have the pulse, check employees and be in touch with them. Because the health and safety of employees is much more important than the profits of, um, where you know. So we took care of that. Make sure that folks were taking care of older parents were in good place. We fortunately not lost anyone to death. Covert. We had some covert cases, but they've recovered on. This is an incredible pandemic that connects all of us in the human fabric. It has no separation off skin color or ethnicity or gender, a little bit of difference in people who are older, who might be more affected or prone to it. But we just have to, and it's taught me to be a significantly more empathetic. I began to do certain things that I didn't do before, but I felt was the right thing to do. For example, I've begun to do 25 30 minute calls with every one of my key countries. You know, as I know you, I run customer operations, all of the go to market field teams reporting to me on. I felt it was important for me to be showing up, not just in the big company meetings. We do that and big town halls where you know, some fractions. 30,000 people of VM ware attend, but, you know, go on, do a town hall for everybody in a virtual zoom session in Japan. But in their time zone. So 10 o'clock my time in the night, uh, then do one in China and Australia kind of almost travel around the world virtually, and it's not long calls 25 30 minutes, where 1st 10 or 15 minutes I'm sharing with them what I'm seeing across other countries, the world encouraging them to focus on a few priorities, which I'll talk about in a second and then listening to them for 10 15 minutes and be, uh and then the call on time or maybe even a little earlier, because every one of us is going to resume button going from call to call the call. We're tired of T. There's also mental, you know, fatigue that we've gotta worry about. Mental well, being long term. So that's one that I personally began to change. I began to also get energy because in the past, you know, I would travel to Europe or Asia. You know, 40 50%. My life has travel. It takes a day out of your life on either end, your jet lag. And then even when you get to a Tokyo or Beijing or to Bangalore or the London, getting between sites of these customers is like a 45 minute, sometimes in our commute. Now I'm able to do many of these 25 30 minute call, so I set myself a goal to talk to 1000 chief security officers. I know a lot of CEOs and CFOs from my times at S A P and VM ware, but I didn't know many security officers who often either work for a CEO or report directly to the legal counsel on accountable to the audit committee of the board. And I got a list of these 1,002,000 people we called email them. Man, I gotta tell you, people willing to talk to me just coming, you know, into this I'm about 500 into that. And it was role modeling to my teams that the top of the company is willing to spend as much time as possible. And I have probably gotten a lot more productive in customer conversations now than ever before. And then the final piece of your question, which is what do we tell the customer in terms about portfolio? So these were just more the practices that I was able to adapt during this time that have given me energy on dial, kind of get scared of two things from the portfolio perspective. I think we began to don't notice two things. One is Theo entire move of migration and modernization around the cloud. I describe that as you know, for example, moving to Amazon is a migration opportunity to azure modernization. Is that whole Tan Xue Eminem? Migration of modernization is highly relevant right now. In fact, taking more speed data center spending might be on hold on freeze as people kind of holding till depend, emmick or the GDP recovers. But migration of modernization is accelerating, so we wanna accelerate that part of our portfolio. One of the products we have a cloud on Amazon or Cloud Health or Tan Xue and maybe the other offerings for the other public dog. The second part about portfolio that we're seeing acceleration around is distributed workforce security work from home work from anywhere. And that's that combination off workspace, one for both endpoint management, virtual desktops, common black envelope loud and the announcements we've now made with Z scaler for, uh, distributed work for security or what the analysts called secure access. So message. That's beautiful because everyone working from home, even if they come back to the office, needs a very different model of security and were now becoming a leader in that area. of security. So these two parts of the portfolio you take the five franchise pillars and put them into these two buckets. We began to see momentum. And the final thing, I would say, Guys, just on a soft note. You know, I've had to just think about ways in which I balance work and family. It's just really easy. You know what, 67 months into this pandemic to burn out? Ah, now I've encouraged my team. We've got to think about this as a marathon, not a sprint. Do the personal things that you wanna do that will make your life better through this pandemic. That in practice is that you keep after it. I'll give you one example. I began biking with my kids and during the summer months were able to bike later. Even now in the fall, we're able to do that often, and I hope that's a practice I'm able to do much more often, even after the pandemic. So develop some activities with your family or with the people that you love the most that are seeing you a lot more and hopefully enjoying that time with them that you will keep even after this pandemic ends. >>So, Sanjay, I love that you're spending all this time with CSOs. I mean, I have a Well, maybe not not 1000 but dozens. And they're such smart people. They're really, you know, in the thick of things you mentioned, you know, your partnership with the scale ahead. Scott Stricklin on who is the C. C so of Wyndham? He was talking about the security club. But since the pandemic, there's really three waves. There's the cloud security, the identity, access management and endpoint security. And one of the things that CSOs will tell you is the lack of talent is their biggest challenge. And they're drowning in all these products. And so how should we think about your approach to security and potentially simplifying their lives? >>Yeah. You know, Dave, we talked about this, I think last year, maybe the year before, and what we were trying to do in security was really simplified because the security industry is like 5000 vendors, and it's like, you know, going to a doctor and she tells you to stay healthy. You gotta have 5000 tablets. You just cannot eat that many tablets you take you days, weeks, maybe a month to eat that many tablets. So ah, grand simplification has to happen where that health becomes part of your diet. You eat your proteins and vegetables, you drink your water, do your exercise. And the analogy and security is we cannot deploy dozens of agents and hundreds of alerts and many, many consoles. Uh, infrastructure players like us that have control points. We have 70 million virtual machines. We have 75 million virtual switches. We have, you know, tens of million's off workspace, one of carbon black endpoints that we manage and secure its incumbent enough to take security and making a lot more part of the infrastructure. Reduce the need for dozens and dozens of point tools. And with that comes a grand simplification of both the labor involved in learning all these tools. Andi, eventually also the cost of ownership off those particular tool. So that's one other thing we're seeking to do is increasingly be apart off that education off security professionals were both investing in ah, lot of off, you know, kind of threat protection research on many of our folks you know who are in a threat. Behavioral analytics, you know, kind of thread research. And people have come out of deep hacking experience with the government and others give back to the community and teaching classes. Um, in universities, there are a couple of non profits that are really investing in security, transfer education off CSOs and their teams were contributing to that from the standpoint off the ways in which we can give back both in time talent and also a treasure. So I think is we think about this. You're going to see us making this a long term play. We have a billion dollar security business today. There's not many companies that have, you know, a billion dollar plus of security is probably just two or three, and some of them have hit a wall in terms of their progress sport. We want to be one of the leaders in cybersecurity, and we think we need to do this both in building great product satisfying customers. But then also investing in the learning, the training enable remember, one of the things of B M worlds bright is thes hands on labs and all the training enable that happened at this event. So we will use both our platform. We in world in a variety of about the virtual environments to ensure that we get the best education of security to professional. >>So >>that's gonna be exciting, Because if you look at some of the evaluations of some of the pure plays I mean, you're a cloud security business growing a triple digits and, you know, you see some of these guys with, you know, $30 billion valuations, But I wanted to ask you about the market, E v m. Where used to be so simple Right now, you guys have expanded your tam dramatically. How are you thinking about, you know, the market opportunity? You've got your five franchise platforms. I know you're very disciplined about identifying markets, and then, you know, saying, Okay, now we're gonna go compete. But how do you look at the market and the market data? Give us the update there. >>Yeah, I think. Dave, listen, you know, I like davinci statement. You know, simplicity is the greatest form of sophistication, and I think you've touched on something that which is cos we get bigger. You know, I've had the great privilege of working for two great companies. s a P and B M where the bulk of my last 15 plus years And if something I've learned, you know, it's very easy. Both companies was to throw these TLS three letter acronyms, okay? And I use an acronym and describing the three letter acronyms like er or s ex. I mean, they're all acronyms and a new employee who comes to this company. You know, Carol Property, for example. We just hired her from Google. Is our CMO her first comments like, My goodness, there is a lot of off acronyms here. I've gotta you need a glossary? I had the same reaction when I joined B. M or seven years ago and had the same reaction when I joined the S A. P 15 years ago. Now, of course, two or three years into it, you learn everything and it becomes part of your speed. We have toe constantly. It's like an accordion like you expanded by making it mawr of luminous and deep. But as you do that it gets complex, you then have to simplify it. And that's the job of all of us leaders and I this year, just exemplifying that I don't have it perfect. One of the gifts I do have this communication being able to simplify things. I recorded a five minute video off our five franchise pill. It's just so that the casual person didn't know VM where it could understand on. Then, when I'm on your shore and when on with Jim Cramer and CNBC, I try to simplify, simplify, simplify, simplify because the more you can talk and analogies and pictures, the more the casual user. I mean, of course, and some other audiences. I'm talking to investors. Get it on. Then, Of course, as you go deeper, it should be like progressive layers or feeling of an onion. You can get deeper. It's not like the entire discussion with Sanjay Putin on my team is like, you know, empty suit. It's a superficial discussion. We could go deeper, but you don't have to begin the discussion in the bowels off that, and that's really what we don't do. And then the other part of your question was, how do we think about new markets? You know, we always start with Listen, you sort of core in contact our borough come sort of Jeffrey Moore, Andi in the Jeffrey more context. You think about things that you do really well and then ask yourself outside of that what the Jason sees that are closest to you, that your customers are asking you to advance into on that, either organically to partnerships or through acquisitions. I think John and I talked about in the previous dialogue about the framework of build partner and by, and we always think about it in that order. Where do we advance and any of the moves we've made six years ago, seven years ago and I joined the I felt VM are needed to make a move into mobile to really cement opposition in end user computing. And it took me some time to convince my peers and then the board that we should by Air One, which at that time was the biggest acquisition we've ever done. Okay. Similarly, I'm sure prior to me about Joe Tucci, Pat Nelson. We're thinking about nice here, and I'm moving to networking. Those were too big, inorganic moves. +78 years of Raghu was very involved in that. The decisions we moved to the make the move in the public cloud myself. Rgu pack very involved in the decision. Their toe partner with Amazon, the change and divest be cloud air and then invested in organic effort around what's become the Claudia. That's an organic effort that was an acquisition fast forward to last year. It took me a while to really Are you internally convinced people and then make the move off the second biggest acquisition we made in carbon black and endpoint security cement the security story that we're talking about? Rgu did a similar piece of good work around ad monetization to justify that pivotal needed to come back in. So but you could see all these pieces being adjacent to the core, right? And then you ask yourself, Is that context meaning we could leave it to a partner like you don't see us get into the hardware game we're partnering with. Obviously, the players like Dell and HP, Lenovo and the smart Knick players like Intel in video. In Pensando, you see that as part of the Project Monterey announcement. But the adjacent seas, for example, last year into app modernization up the stack and into security, which I'd say Maura's adjacent horizontal to us. We're now made a lot more logical. And as we then convince ourselves that we could do it, convince our board, make the move, We then have to go and tell our customers. Right? And this entire effort of talking to CSOs What am I doing is doing the same thing that I did to my board last year, simplified to 15 minutes and get thousands of them to understand it. Received feedback, improve it, invest further. And actually, some of the moves were now making this year around our partnership in distributed Workforce Security and Cloud Security and Z scaler. What we're announcing an XDR and Security Analytics. All of the big announcements of security of this conference came from what we heard last year between the last 12 months of my last year. Well, you know, keynote around security, and now, and I predict next year it'll be even further. That's how you advance the puck every year. >>Sanjay, I want to get your thoughts. So now we have a couple minutes left. But we did pull the audience and the community to get some questions for you, since it's virtually wanted to get some representation there. So I got three questions for you. First question, what comes after Cloud and number two is VM Ware security company. And three. What company had you wish you had acquired? >>Oh, my goodness. Okay, the third one eyes gonna be the turkey is one, I think. Listen, because I'm gonna give you my personal opinion, and some of it was probably predates me, so I could probably safely So do that. And maybe put the blame on Joe Tucci or somebody else is no longer here. But let me kind of give you the first two. What comes after cloud? I think clouds gonna be with us for a long time. First off this multi cloud world, you just look at the moment, um, that AWS and azure and the other clouds all have. It's incredible on I think this that multi cloud from phenomenon. But if there's an adapt ation of it, it's gonna be three forms of cloud. People are really only focus today in private public cloud. You have to remember the edge and Telco Cloud and this pendulum off the right balance of workloads between the data center called it a private cloud. The public cloud on one end and the telco edge on the other end. I think we're in a really good position for workloads to really swing between all three of those locations. Three other part that I think comes as a sequel to Cloud is cloud native. All of the capabilities a serverless functions but also containers that you know. Obviously the one could think of that a sister topics to cloud but the entire world of containers. The other seat, uh, then cloud a cloud native will also be topics, but these were all fairly connected. That's how I'd answer the first question. A security company? Absolutely. We you know, we aspire to be one of the leading companies in cyber security. I don't think they will be only one. We have to show this by the wealth on breath of our customers. The revenue momentum we have Gartner ranking us or the analysts ranking us in top rights of magic quadrants being viewed as an innovator simplifying the stack. But listen, we weren't even on the radar. We weren't speaking of the security conferences years ago. Now we are. We have a billion dollar security business, 20,000 plus customers, really strong presences and network endpoint and workload and Cloud Security. The three Coppola's a lot more coming in Security analytics, Cloud Security distributed workforce Security. So we're here to stay. And if anything, BMR persist through this, we're planning for multi your five or 10 year timeframe. And in that course I mean, the competition is smaller. Companies that don't have the breadth and depth of the n words are Andy muscle and are going market. We just have to keep building great products and serving customer on the third man. There's so many. But I mean, I think Listen, when I was looking back, I always wondered this is before I joined so I could say the summit speculatively on. Don't you know, make this This is BMR. Sorry. This is Sanjay one's opinion. Not VM. I gotta make very, very clear. Well, listen, I would have if I was at BMO in 2012 or 2013. I would love to about service now then service. It was a great company. I don't even know maybe the company's talk, but then talk about a very successful company at that time now. Maybe their priorities were different. I wasn't at the company at the time, but I can speculate if that had happened, that would have been an interesting Now I think that was during the time of Paul Maritz here and and so on. So for them, maybe there were other priorities the company need to get done. But at that time, of course, today s so it's not as big of a even slightly bigger market cap than us. So that's not happening. But that's a great example of a good company that I think would have at that time fit very well with VM Ware. And then there's probably we don't look back and regret we move forward. I mean, I think about the acquisitions we have made the big ones. Okay, Nice era air watch pop in black. Pivotal. The big moves we've made in terms of partnership. Amazon. What? We're announcing this This, you know, this week within video and Z scaler. So you never look back and regret. You always look for >>follow up on that To follow up on that from a developer, entrepreneurial or partner Perspective. Can you share where the white spaces for people to innovate around vm Where where where can people partner and play. Whether I'm an entrepreneur in a garage or venture back, funded or say a partner pivoting and or resetting with Govind, where's the white spaces with them? >>I think that, you know, there's gonna be a number off places where the Tan Xue platform develops, as it kind of makes it relevant to developers. I mean, there's, I think the first way we think about this is to make ourselves relevant toe all of that ecosystem around the C I. C. D type apply platform. They're really good partners of ours. They're like, get lab, You know, all of the ways in which open source communities, you know will play alongside that Hash E Corp. Jay frog there number of these companies that are partnering with us and we're excited about all of their relevancy to tend to, and it's our job to go and make that marketplace better and better. You're going to hear more about that coming up from us on. Then there's the set of data companies, you know, con fluent. You know, of course, you've seen a big I p o of a snowflake. All of those data companies, we'll need a very natural synergy. If you think about the old days of middleware, middleware is always sort of separate from the database. I think that's starting to kind of coalesce. And Data and analytics placed on top of the modern day middleware, which is containers I think it's gonna be now does VM or play physically is a data company. We don't know today we're gonna partner very heavily. But picking the right set of partners been fluent is a good example of one on. There's many of the next generation database companies that you're going to see us partner with that will become part of that marketplace influence. And I think, as you see us certainly produce out the VM Ware marketplace for developers. I think this is gonna be a game changing opportunity for us to really take those five million developers and work with the leading companies. You know, I use the example of get Lab is an example get help there. Others that appeal to developers tie them into our developer framework. The one thing you learn about developers, you can't have a mindset. With that, you all come to just us. It's a very mingled village off multiple ecosystems and Venn diagrams that are coalescing. If you try to take over the world, the developer community just basically shuns you. You have to have a very vibrant way in which you are mingling, which is why I described. It's like, Listen, we want our developers to come to our conferences and reinvent and ignite and get the best experience of all those provide tools that coincide with everybody. You have to take a holistic view of this on if you do that over many years, just like the security topic. This is a multi year pursuit for us to be relevant. Developers. We feel good about the future being bright. >>David got five minutes e. >>I thought you were gonna say Zoom, Sanjay, that was That was my wildcard. >>Well, listen, you know, I think it was more recently and very fast catapult Thio success, and I don't know that that's clearly in the complete, you know, sweet spot of the anywhere. I mean, you know, unified collaboration would have probably put us in much more competition with teams and, well, back someone you always have to think about what's in the in the bailiwick of what's closest to us, but zooms a great partner. Uh, I mean, obviously you love to acquire anybody that's hot, but Eric's doing really well. I mean, Erica, I'm sure he had many people try to come to buy him. I'm just so proud of him as a friend of all that he was named to Time magazine Top 100. But what he's done is phenomenon. I think he could build a company that's just his important, his Facebook. So, you know, I encourage him. Don't sell, keep building the company and you'll build a company that's going to be, you know, the enterprise version of Facebook. And I think that's a tremendous opportunity to do this better than anybody else is doing. And you know, I'm as an immigrant. He's, you know, China. Born now American, I'm Indian born, American, assim immigrants. We both have a similar story. I learned a lot from him. I learned a lot from him, from on speed on speed and how to move fast, he tells me he learns a thing to do for me on scale. We teach each other. It's a beautiful friendship. >>We'll make sure you put in a good word for the Kiwi. One more zoom integration >>for a final word or the zoom that is the future Facebook of the enterprise. Whatever, Sanjay, Thank >>you for connecting with us. Virtually. It is a digital foundation. It is an unpredictable world. Um, it's gonna change. It could be software to find the operating models or changing you guys. We're changing how you serve customers with new chief up commercial customer officer you have in place, which is a new hire. Congratulations. And you guys were flexing with the market and you got a tailwind. So congratulations, >>John and Dave. Always a pleasure. We couldn't do this without the partnership. Also with you. Congratulations of Successful Cube. And in its new digital format, Thank you for being with us With VM world here on. Do you know all that you're doing to get the story out? The guests that you have on the show, they look forward, including the nonviable people like, Hey, can I get on the Cuban like, Absolutely. Because they look at your platform is away. I'm telling this story. Thanks for all you're doing. I wish you health and safety. >>I'm gonna bring more community. And Dave is, you know, and Sanjay, and it's easier without the travel. Get more interviews, tell more stories and tell the most important stories. And thank you for telling your story and VM World story here of the emerald 2020. Sanjay Poon in the chief operating officer here on the Cube I'm John for a day Volonte. Thanks for watching Cube Virtual. Thanks for watching.

>>from around the globe. It's the Cube >>with digital coverage of VM World 2020 brought to you by VM Ware and its Ecosystem partners. Welcome back to the Cube. Virtual 2020. Coverage of VM Ware, VM World 2020 Virtual. I'm Sean for your host of the Cube. Join with Dave Alonso. We got a great guest. Carol Carpenter, Who's the chief marketing officer of VM Ware Cube Alumni move from Google Cloud to VM Ware. Carol, great to see you. And thanks for coming on the Cube for VM World 2020. Virtual coverage. Thank you. >>Yeah. Thank you both for having me here. Delighted to be here. >>So we've talked about many times before, but you're very in the cloud. Native space. You know the market pretty well. I gotta ask you what attracted you to come to the end? Where what was the What was the reason? Now you're heading up marketing for VM. Where what was the driving force? >>Well, a few things, you know, Number one. I've always had a passion for this space. I love the cloud. I was involved in an early stage company prior to Google Cloud that really had the promise of helping people get enterprises, get to the cloud faster. Um, and when I, you know, look around and I Look which kind of which companies are shaping the future of technology? VM ware, Certainly one of those companies. Second reason goes without saying the people in the culture, incredible leadership and empowerment all throughout Vienna, where and it's it's quite exceptional. And the third is I really think customers are on a really tough journey. Um, and having been at a hyper scaler, having worked at places where you know, cos air in a more traditional legacy environment, it makes it made me realize like this is a tough journey. And I think the, um where is uniquely positioned to help enterprises with what is a complex journey, and it's a multi cloud world. I'm sure you know that our customers know it. And how do you make all these disparate systems and tools work together to deliver the business results? I believe the M where is uniquely positioned Thio. >>It's interesting. VM Ware is going to a whole nother level. We've been commenting on our analysis segments around the business performance, obviously, and the moves they've made over the years. This is our 11th VM world. Keep started 10 years. 11 years ago. Um, we've been seeing the moves so great. Technology moves, product moves, business performance. The relationship with the clouds is all in place. But then Cove, it hits, okay? And then all that gets accelerate even further because you've got, you know, companies that I have to use this downtime to re modernized. And some people get a tailwind with modern application opportunities. So it's interesting time to be, you know, on this trajectory with VM ware and the clouds, what's your thoughts? Because you join right in the middle of all this and you're in and I of the storm. What's your view on this? Because this is a, uh, forcing function for companies to not only accelerate the transformation, but to move faster. >>Yeah, for sure. You know, it's been an incredibly challenging time, I think for everyone, and I hope everyone who's watching and listening is safe. Um, you know, we talk about decades of progress being made in two weeks, and I guess that's the silver lining. If there is one, which is this ultimate work? Remote work from home that we've enabled and the work anywhere. It's been completely liberating in so many ways. Um, you know, it's an area where I look at, there's how we lead our teams and how do we maintain relationships with customers, which obviously requires a different type of interaction, of different type of outreach? And and then there's what are the solutions at scale And you know, im I pleased to say, like there were absolute big lifts in certain areas of our business, particularly around, you know, remote work and our digital workspace solutions, you know, really enabling companies to get thousands of workers up and running quickly. That, combined with our security solutions and our SD wan solution to really enable all of these remote homes to become thousands of remote offices. So there's all of that, which is incredibly positive. And at the same time, you know, I have to tell you, I joke, but I still haven't figured out where the bathroom is, you know, free three plus months. So that way I miss the human connection. I miss being able to just see people and give people a hug now and then when you want Thio >>e mean, VM. Where? Carol, It's amazing. Company. You mentioned the culture before. It really started as a workstation virtualization company, right? And then so many challenges, you know, and use a computing. You guys do an acquisition bringing Sanjay Poon in all of a sudden, you're the leader there cloud, you know, fumbled a little bit, but all of a sudden, the cloud strategy kicking on all cylinders, we see that, you know, growing like crazy. The networking piece, the storage piece you mentioned security, which is a amazing opportunity. Containers. They're gonna kill kill VM ware. Well, I guess. Guess what? We're embracing them. It seems like culturally vm where it just has this attitude of if there's a wave, you know, we're gonna ride it, we're gonna embrace it and figure out how to deliver value to our customers. What's your thinking on that? >>Yeah. I mean, it's such a VM ware, such an innovative company. And that is another reason that attracted me on disability to look at what customers need. Like, this is an incredibly were an incredibly customer centric company, listening to customers, understanding their needs and providing a bridge to where they need to go while also providing them the resiliency and needs they have today. That is what thrills me. And I think we have such an incredible opportunity to continue to drive that future innovation while also being that bridge. Um, I have to tell you, you know, I've known VM Ware for a long time, and what appealed to me is this broader portfolio and this opportunity to actually tell a broader business value story to be able to actually tell that story about not just digital transformation but business transformation. So that's what that's. That's the journey we're on and it's it's happening. It's really I mean, you look at all the customers, whether it's, you know, JPMorgan Chase to, um, a nonprofit like feeding America to, you know, large companies like Nike. It's really incredible the impact and value we could bring. And I feel that my job and the marketing team's job is, I tell them like they're all these diamonds in the backyard. It's just some of them are a little dirty, and some are they're just not fully revealed, and it's our job, todo and you know, dust them off and tell the story to help customers and prospects understand the value we could bring. >>That's how should we be thinking? How should we be thinking about that? That business value, transformation, business transformation? You you? Certainly when you think of an application's company that there's easily connect the dots. But how should we be thinking about VM Ware in that value chain? You an enabler for that transformation? Can you provide some color there? >>Yeah, let me give you some specific examples like Look at, um, so the addition of Tan Xue to the portfolio is what enables us to have these discussions that, let's face it, the only reason people need or want infrastructure is because they want to deploy an application. They want to write an application. They want to move an application. And Tan Xue, which is our container based, kubernetes based orchestration solution and lots more to it. That's what how it is in simple terms that gives us the ability to work with companies, lines of business as well as developers around riel. Business transformation. So two quick examples one. I can't say the name quite yet, but I think very large pharmaceutical company who wants to launch and have a mobile app to help patients. People who are taking Cove in 19 tests get the results, understand the results, ask questions about the results and have one place to go that's really powerful. And to be able to develop an app that is scale built for scale, built for enterprise, built to be resilient when patients are trying to get information. Um, in four weeks, I mean, that's pretty. That's quite incredible. Another example is, you know, very large e commerce company that, you know, you mentioned Cove it and some of the challenges we know retail has certainly been kind of, ah, tale of two cities, right? Some companies with lots of lift and others with real struggle in the physical world. But anyway, large retailer who had to within weeks flip to curbside pickup, Um, being able to look customers being able to look at inventory on demand, those kinds of capabilities required ah, wholesale rewrite of many of their e commerce applications. Again, that's a place where we can go in and we can talk to them about that. And by the way, as you know, the challenge is it's one thing to write and deploy an app, and then it's another to actually run it at scale, which then requires the networking, scalability and flexibility it requires. The virtual, um, storage. It requires all the other elements that we bring to the table. So I think that is the That's kind of the landing spot. But it's not the ending spot when we talk to customers. >>Carol talk about the challenge of VM World 2020 this year. It's not in person. It's one of them. It's an industry event. It's been one every year. It's a place where there's deep community, deep technical demos, beep deep discussions. Ah, lot of face to face hallway conversations. That's not happening. It's virtual. Um, you came right in the middle of all this. You guys pulled it together. Um, got a You got keynote sessions and thanks for including the Cube. We really appreciate that as well. But you have all this content. How did you handle that? And how's that going and and share some, uh, color on what it took to pull it off. And what's your expectation? >>Yeah, So you know. Yes. VM world is considered the gold standard when it comes to industry events. I mean, from the outside in this is the canonical I t event. And so I feel, really, you know, honored that this franchise is now in my hands and have an incredible team of people who obviously have been working on it for prior to my joining. So I just feel honored to be part of it. Um, this is going to be the world's largest VM world. And on the one hand, miss the energy in the room, Miss seeing people, everything you talked about, the serendipitous interactions that the food line or coffee bar. Um, but going virtual has so many benefits. Some of the things we were talking about earlier, the ability to reach many, many more people. This event is going to be 5 to 6 times larger than our physical event. And that's not even including the VM world that we're running in Asia in China. And the other thing that makes me super happy is that over 65% of our registrants and of the attendees here are actually first time VM world attendees. So this ability to broad in our tent and make it easier I mean, let's face it. You know, being able to fly, whether it was Vegas or San Francisco is originally planned. Stay in these expensive hotels and take that time it was. It's a big ask. So by going virtual, we actually have expanded our audience tremendously. Three other thing I am really excited about is we have 800 plus content sessions. We are following the sun. We have live Q and A after every session. We have really the best mobile app for any events, so I encourage you to take a look at that which does enable the chat interaction as well as you know, path funding through the many channels we have of contact. Its's Look, we're learning, and I'd love to follow up with you later to hear what you've learned because I know you've also been doing a lot. Virtually, I think the world is going to move to something that's more hybrid, some combination of virtual and small group, you know, in person, some local events of some sort. Um, but this one I'm super excited about, we we really have seen high engagement, and I just think, Well, I look forward to hearing everyone's feedback. E >>I think one of the things that we've been hearing is is that I can now go to the M world. I can participate now virtually it's it's kind of I would call First Generation writes me the Web early days. But you're right. I think it's gonna open up the eyes to a bigger community, access a bigger pool of data, bigger pool of interactions and community. And when they do come back face to face, people be ableto fly and meet people they met online. So we think this is gonna be a real trend where it's like the r A. Y of this virtual space is tremendous. You could do demos. You conserve yourselves, you could consume a demo, but then meet people face to face. >>And by the way, we have, you know, a tremendous number of fun activities. Hopefully you've taken part in some of them. Everything from puppy therapy Thio magic shows to yoga Thio Um you know John Legend legend performing. So I agree. I think the level personalization and ability to self serve is going to be out of this world. So yeah, it's just the best. >>Your event, just some key things that we can share with the audience. Cloud City has over 60 solution Demos Uh, there's a VM World challenge That's fun. There's also an ex Ask the expert section where you got Joe Beta and Ragu and other luminaries there to ask the questions of the That's the top talent in the company all online. And of course, you get the CTO Innovation keynote with Greg Lavender. So you know you're bringing the big guns out on display on it. Z free access. Um, it's awesome. Congratulations. We're looking forward Toa see, with the day that looks like after, So what's the story line for you? If you had to summarize out the VM World 2020 this year, what's coming out from the data? What are you hearing? Is the key themes, Actually, the tagline. You know, uh, you know, possible together, Digital foundation, unpredictable world. But what are you hearing, uh, in the virtual hallways? >>Well, a few things, but I'd say the top take away is that VM where has spread its wings, has embraced mawr of the different ICTY audiences and is driving business transformation for companies in new and pretty unique ways. What and then obviously like slew of announcements, new partnerships, new capabilities, everything around multi cloud we have. As you know, every single cloud provider is a partner on the security front, intrinsic security built in throughout the entire stack. The the other part that I I think it's super exciting are these partnerships were announcing everything from what we're doing with and video to make a i mawr accessible for enterprises in production to what we're doing around sassy, secure access Service Edge. Being able to provide a holistic, secure, distributed environment so that every worker, no matter where they are, every endpoint, every remote office could be fully secured. >>You know, in VM where is the gold standard of Of of the Ecosystem and VM world? Of course, they're all in the showcase and it was hard fought. I mean, it took a long time to get there, and you know, the challenges of building that. And now you mentioned in video. You see all these new tail winds coming in and and then I've seen companies launch at VM World. And so you know that ecosystem is, as I say, it is very difficult to build. But then becomes a huge asset because this just gives you so much leverage. A zone organization, your company's your partners, your customers. >>Thank you, Dave. Yeah, we're super excited. And I should say that like the partner and the ecosystem here is unparalleled. And our challenge is how do we provide? And you know, this Like, how do we provide the strategic vision and that practitioner level content? So we're gonna you know, that's what we're committed. Teoh is making sure that our practitioners get everything they need in every every area of expertise, as well as making sure we're conveying our business story. >>Carol, thanks so much for coming on. Really appreciate the inside one final question for you as we get through this crisis soon hybrid comes back for events, certainly. But as the CMO the next gen story, you now have a chief customer officer. We interviewed him. Well, the n words go to the next level. What's your goals? What are you trying to accomplish? And you've got a lot of things going on. Certainly a big story to tell. A lot of ingredients. Toe kinda cook a great, great story here. What's your goals? See him over the next year. >>You know, my goal is to help drive the business transformation and you've heard it from Submit. You've heard it from others at this point. But really, you know, the company is going We're going through a dramatic transformation from being, you know, ah, license on Prem Company to being a multi cloud, modern SAS company. So my goal is to support that. And that means modernizing the way we do marketing which, you know, you say, Well, what does that mean? It means customer focus, customer lifecycle marketing. It means agility, being able to actually use data to drive how we interact with customers and users so that they have those great experiences and they continue to use the product and Dr Adoption and Growth. And the other part of it is, um, b two b marketing, as you may or may not have noticed, is incredibly boring and dull. And I know I'm guilty of this, too. We get caught up in a lot of but jargon and the language, and I am on a mission that we're going to do great B two B marketing that helps customers understand what we do and where we express the value simply clearly and in in differentiated way. >>That's awesome. >>Yeah, Why should the consumer guys have all the fun? Right? >>Right, Well, and that's part of being, by the way a SAS or subscription company is. Everything we do needs to be consumer simple at scale and with the secure ability and the reliability of what an enterprise means. >>Well, I got to tell you that the irony of all this virtual ization of the world with Covic virtual events e one of the big surprise is we're gonna be looking back at is how much it's opened up Thio Mawr audiences and new ways of modernizing and taking advantage of that. Certainly with content in community, you guys are well positioned. Congratulations for a great event. Thank you for coming on and sharing your insights, and we'll keep in touch. We'll try. We'll try to make it exciting, Mister Cube. Thank you. Appreciate >>it. Thank you. Awesome. Thank you. Thank you, John. >>I'm Jennifer David. Lot Cube. Coverage of the M 2020 Virtual. This is the Virtual Cube. Have now virtual sets everywhere. All around the world. It's global. Thanks for watching

>> Hi, This is Sanjay Poon, CEO of Somewhere Cube. Coverage of the M 2019 continues.

>> Hi, This is Sanjay Putin CEO Of'em, Where you're watching the Cube. Hi, this is Sanjay Putin, C 00 ve. And where you're watching live coverage of William World 2019 on the Cube, the leader in global high tech coverage. Hi, this is Sanjay Poon, CEO Of'em, where you're watching live coverage of the VM World 2019 on the Cube, the leader in global high tech coverage. Hi, this is Sanjay Putin. CEO Of'em Were cube coverage of the emerald 2019 continues in a moment. Hi, this is Sanjay Putin, CEO Of'em, where Cube coverage of the emerald 2019 continues in a moment.

>> Announcer: Live, from San Francisco celebrating 10 years of high-tech coverage it's theCUBE. Covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Welcome back, this is theCUBE two stages, three days of coverage, our tenth year here at the VMworld show. I'm Stu Miniman and my co-host for this segment is Bobby Allan. And welcome back, two of our CUBE alumni. >> How are you? >> As I said back in 2010 we didn't even know what a CUBE alumni was. People were trying to figure out what we're doing but now we have thousands of them and both of these gentlemen have been on the program, a few times. >> Thanks for having us back. >> You're welcome. So, first, over we have Ajay Patel, who I believe was doing another filming evening with our crew-- >> Absolutely >> Earlier today. >> The Accenture Innovation Center. >> Ah, excellent. Beautiful building Accenture has here in San Francisco. >> Ajay: Beautiful (mumbles) >> One of the other benefits of being back in San Francisco is we brought in people and it's really easy to get in and out and do other things in the Valley. But Ajay is the senior vice president and general manager of the cloud provider software business unit inside VMware. And one of his partners is Rackspace. We have Peter FitzGibbon who is the vice president of Product Alliances, with for mentioned Rackspace. >> Yeah, super to be back in San Francisco. It's a great change from Vegas. >> Yeah, you know, there is some debate in the community of course it's a little more expensive here in San Francisco and there are other logistic challenges. We're excited to be back here and yeah, really excited to be talking with both of you. Peter, let's start, you know Rackspace has had a long, long partnership with VMware. When I remember back to like VMware Environments Hosted it's like, Rackspace was the one with the lion's share in that market. And, you know, Rackspace has gone through a lot of changes in the last 10 years that we've been doing this coverage. When I think about multi cloud, all of these environments you've got a nice perspective on this and lots of customers you've worked with. So, give us the update on what you're hearing from customers and your relationship with VMware. >> Yeah, so, 20-year history with VMware that we're very proud of. I would say it's almost being re-birthed in the last two years though. Two years ago, we were one of the first VMware Cloud Verified partners. We launched our VMware Cloud VMware Cloud Foundation Private Cloud. We added that about six months later in customer data centers. We're now one of the major partners of VMware Cloud AWS >> Ajay: VMware Cloud AWS yep. >> And that's one of the areas that we're continuing to expand upon. We announced some new services this week, specifically around VMware Cloud AWS or support of HDX, both for migrations for ongoing support as well as a number of, what we call Rackspace service blocks. Which are additional manage services that we are applying, specifically for VMware Cloud and AWS. So, exciting times at Rackspace and VMware continues to be a look, a major part of our portfolio. >> Ajay: And thank you for all the support, Peter. >> Yeah, so Ajay, bring us up to speed of what's happening in your space you know, a lot of attention gets paid, you know Every time, you know, I saw Sanjay Poon, up on stage at the Goolge clould event, and of course the AWS partnership has been one of the biggest stories in all of tech, for the last couple of years. And that's been extending to, you know first it was like, wait, you know Rackspace has data centers and many of your other partners have data centers, but how did these all, play together and how does the VMware software pull them all together. >> So Stu, I think, you and I have been talking about this world of hybrid multi and we've been arguing, whether it's just a transitionary stage, or here to stay. Hopefully that debate's over, right? Hybrid's a new reality, multi cloud's a new reality and we talk about these hyper scales but you know, Rackspace and many of my VCP partners they've been longstanding in this journey with us. I don't know if you caught Pat's keynote? We demonstrated, that we have over 10 000 data centers through our VCPP network and Rackspace being one of our top 10 partners. So you start, to start seeing this mix of VMware everywhere. Whether it's trough our service provider cloud the customer manage cloud or even a hyper scale VMware cloud. You now have the ubiquitous VMware infrastructure to play with. >> At some point it's just cloud. (chattering) >> That is a great point, when I talk to customers most of them, they have a cloud strategy it's usually not a hybrid or a multi or all these things. Here's the nuance I want to, you know, ask for a second then I definitely want Bobby to jump in with what he's been talking to customers about. You know, hybrid cloud is a reality because customers have their own data centers and they have public cloud. The ideal of multi cloud, customers have multiple clouds, but, you know, one of the definitions I put out there is, multi cloud exists when the multi cloud solution is more valuable than the sum of the pieces. And I'm not sure that we're quite there yet. I think we're starting to move down that path. But what are you both seeing? And does that resonate with what you see today? >> Yeah like, all of our customers have workloads in multiple locations and trying to provide the assessments of where to put the right workloads at the right time is one of the key values that we hold dear. And before we ever talk about where we're going to but a workload we assess whether, what our clients environments is and determine, maybe this is an AWS workload maybe this is a WMS workload maybe this workload really belongs in the data center for, due to laws of the lands laws of gravity and physics. >> And I think, what's happening, really is any application, typically choosing a platform or the cloud service that's driving the decision. Collectively what ends up happening because of that, you are in multiple clouds. So, I think what's it's a result of the reality that applications are driving location and platform choices and the way to drive consistency is trying to pick a few common things whether it's kubernetes as a platform or VMware, right? Those are a way to, kind of, unify these desperate choices that are made individually. That are collectively making each of our customers multi cloud, right? >> Ajay, I want to piggyback on that because you talked about the applications driving a lot of the choices, when applications teams in my experience are, kind of, making the choices they don't care about a centralized strategy and obviously, this very powerful partnership can support multiple places and ways around your workloads. How do you lead the witness, a little bit towards simplification and just because you can do it doesn't mean you should do it. >> Yes, so I think what's happening from our perspective is depending on which side of the IT house you're at if you're part of the core IT that's running and maintaining mission critical systems you're really looking for something that's reliable, performance scalable, secure. And you, maybe, looking at a hardware refresher looking at your data center strategy and you're looking to migrate that workload. You're not really looking to re-change the app just because it's cool. >> Bobby: Right. >> If you're part of digital transformation effort you're looking to say, okay how do I get something out there quickly? >> Bobby: Right. >> How do I integrate on the average my data and application assets while leveraging cloud services? >> Bobby: Right. So, we're seeing this tension in some ways where the, kind of, net new is really pushing the envelope of cloud with self service elasticity, new capability while as the old guard is like I got to keep my running business, running keep it secure. And how do you bridge these two worlds and bring them together? We call it DevOps and, you know, ITA and the traditional, kind of new developer. Reality is, you're trying to bring the two worlds on a common platform. Whether it's VM's or containers and so the exciting part for us is, how do we unify? How do we deliver this experience and give them the choice, where it makes more sense. And blur the lines between public and private. Those are just locations and makes more sense for your customer or your application that you can drive. >> Bobby: Right, excellent. >> We find ourselves in those conversations, all the time trying to bridge two sides of the equation at a customer and trying to get them together on a uniformed strategy and weighing the pros and cons of different locations or different workloads. So, it's not easy, it's not a challenge of course. >> Peter, I'd love you to bring us inside some of those VMware on AWS customers because, you know, some of the first customers I talked to, it was, you know, I'm a VMware shop and there's a part of your group that's like oh my gosh, I can't change and this was a driver saying hey, you don't need to, we can bring you along. But, the value, once again needs to be Oh hey, I need to do some innovative things I want to be able to access some of those cool amazing services that, you know everybody is providing on a daily basis. So, you know, are you seeing that progression are there any interesting use cases that are coming out? >> Progression is the word, we could call it progressive transformation inside Rackspace. Like, you're a VMware customer let's bring you ion the journey towards public cloud. And let's help you leverage those address services. So, we find ourselves in a great position where a very large number of engineers, that support our native AWS workloads, we've brought those two groups together from our VMware expertise and address expertise. So when a customer lands on a VMware address I consider it a failure, if they haven't transformed part of the application in three months. If they're not really consuming those native AWS services. And that's what we really try inject. It's like, get our AWS engineers looking at those workloads let's start consuming those native services and that's what we're finding really exciting about how customers are starting to adopt and starting to plug and play into some of those services. >> Oh I look at it, as you know, you'll see a team Sanjay called it M&MS, migrate and modernize but a part of the migrate is often modernize your infrastructure first by putting on a modern cloud platform. And then modernize your application using cloud services. How it says, it's M-M and M, right, to follow through because it's not just about lifting and shifting keeping the old crap as it is. You got to really start to look at how do you drive innovation drive your Cube to a better place. So that you can operate it more affectively and then modernize for application results. And your service blocks, are really catered to helping that customers. So you can talk a little bit about how they're building the services that compliment our offer. >> Yeah, so our service blocks is... In the past, we offered them one big block manage service to a customer. We realized, let's decompose that and offer the customer what they need at a specific point in time. So we, think about Lego blocks, where at some point you may need, just some support or at some point you might need some architectural services and design and other times you might say cost optimization. That sort of stuff. So over time, we're adding on these Lego blocks if you will, to add a customer, to give them what they need at the point they need it, and not more. So, it's an exciting concept that every month, we're adding more services. We launched a Rackspace manage security service block today specifically for VMware cloud. So, we continue to add these and provide incremental value. >> I want to ask you a little bit of a controversial question. There's a saying, pioneers take the arrows but settlers take the land. >> Right >> So, if I'm a technology leader how do I embrace all this newness without getting shot, partnering with your firms. >> So, you know, we always say lock-ins bad but reality is, we always choose to reject technology platforms. And if you're a VMware customer I hate to say it, you're running on VMware infrastructure you have VMware ecosystem, you have VMware run books you have VMware partners, managing your on-prem assets what if I could you a path forward on any cloud of your choice without having to change any of your day-tot-day operation while leveraging the innovation future. What is the safest path for you, Mr Customer? And so, in this world, you can think of us being laggard in some sense. Because we're not pushing them to a single destination. We're giving them that choice, leveraging the strength. I think the innovative part that we've done today has really brought containers and VM'S in a single solution. We talked about containers killing VM'S two years ago, right? You know, VMware was getting trouble with docker VMware was going to be trouble with Openstack. Where are those two companies today and where is VMware? It's about simplifying for the customer a common solution. And we're taking those choices away and making this easy. Giving partners who can help them on their journey. So, I would say we're the safer choice. >> Okay >> That will be my response. >> Peter, we're not going to ask you about Openstack. (Giggles) >> I'm really back to VMware, it's working progress. (Giggles) >> Interesting point, the settlers right? At this point VMSware and AWS is two years old I think that first year, what was definitely some pioneers our there. But now I think we're really in there where the settlers are coming on and we're seeing large-scale adoption in the platform and now that VMware is offering more and more services, natively we can add more those managed services and help those customers really transform and not worry about the underlying IS that's rock-solid at this point. >> Peter, I would like you to get into it a little bit, kind of, the containerization and the kubernetes, you know, Docker, obviously a lot of hype, but containerization that's hugely important, you know a lot of the keynote this morning was talking about cloud native. I talked to lots of customers, you know there's some that, yes, they will want the VMware journey but many of them say, well, If I'm going to cloud I can just use containers. Why would I have the overhead of VM's? when cloud founders was originally created it was not for that type of environment. So where does that fit into, you know your world containers? >> Yeah, we actually launched some more services on that today as well, some more professional services and manage services, so safely around advanced kubernetes support, across all our platforms so this isn't just a VMware announcement this is on AWS, Microsoft, Badger and Google. So, another exciting progression, or hybrid could story and making investments in those resources to deliver kubernetes. We also launched a cloud native service block today, as well, that is really giving customers access to deep engineering skills and giving them cloud reliability engineers that can help them transform their workloads and get them ready for the cloud. >> I think, for us, if you... Project (mumbles) sorry tan zoo as a solution, and project pacific. Our two marquee announcements we made this week and if you look at the way we're focusing on the bull run manage aspects of the full life cycle and our active participation in the kubernetes community we're starting the beginnings of what I felt, like Java in 2000 when I was at BA, right? Where Weblogic and Java was the runtime for rolling and building new apps. Kubernetes and containers are the new runtime for building distributed apps across Cal platforms. And we're in this early journey and we are uniquely in opposition with the combination of pivotal for build. With project Pacific we're bringing containers into V&V-sphere, so VM's and containers become first class. Trough your point, we demonstrated eight percent performance improvement over bare metal on a V-sphere container based solution. Starting to engineer, based on a key scheduling work that we do in the kernel and in the hypervisor we're driving that deep into the kubernetes platform into the core platform itself. And then manage is going to be the new interesting bit. What is that control panel that everyone is going to fight over? And the manage services partner can help them choose. So, I think the battleground is more and more going to manage I think we secured our base with the runtime. And the bill will be about choice. (Mumbles) >> And Tan zoo is music to our ears we can now, again, focus on what's the additional manage services and service-- >> How do you help customers build apps? And change the engineering culture is what you provide. We just give you the runtime across any of these clouds. >> We want to help everyone, transform applications also transform the culture and how they do their business all that rapport-- >> Engineering transformation is a big one. Sajay transformation we talked about, internally for us VMware, same with our customers. You got to change the mindset of how you build the applications. In this container service based architecture >> Agree, agree >> What else is keeping folks up at night? That you talk to? Love to know that, just hot tail. >> Nothing keeps me up at night it's an exciting world we live in so loaded question, what excites me? What excites me is the progression, that VMware is making and the announcement Lydon video and GPU access link I think, early next year. I think that can be another wave of VMC adoptions. So, not keep me up at night but keep me interesting and excited. >> I think to that point I can build on what Pat said about tech for good, I mean we have a joined customer feeding America, right? We're now taking technology and making it available so that, you know, the 60 000 plus distribution centers they have, are up all the time. They're not even worried about infrastructure. They can focus on feeding the cause which is, I think 47 million people being fed. It's scary, right? >> Well, we want to bring it back to the organization of the discussion, you said you're helping customers with because we are worried you know, about how racking, stacking, configuring how doing all of those things, you know how do you help them? I talked to a number of customers at this show and they said look, my roles in my organization is still hardware to find And it's tough to move into a software role but if I want to get into the6 tech for good I need to be able to uplift my skills uplift my organizations, yeah. >> It's difficult, right? Organizational changes differ for every company but as part of the digital transformation there is also organizational transformation so we're having customers think about what is the progression form a VMware administrator to a DevOps-- >> Or cloud, I bet. (Giggles) >> It's not easy, it's your short answer on that. >> I think for us, is really starting to drive the cultural chance providing the tools and bring the self service in where they can be a coach, right? Be the trailblazer, who can come in and help change your organization. Teach them how to do it right. Not everyone will get there, hopefully bulk of the organization can shift right. >> Peter, I want to give you the final word you know, your partners and customers to understand. Take aways from VMware 2019. >> Yeah, it's great to be here, as usual thanks for having us. I think, Tan Zoo is really exciting. The progression that we're making with adding service blocks on top of VMware and AWS and or other hybrid cloud announcements. So, great to be here, but the Tan Zoo is kind of the story of the show. >> For me, it's a VMware is here to stay. We want to be, be have been, your strategic partner for the last decade. We're here to stay for the next decade. We're going to help you solve these hard complex problems and give you the choice you need. Across a broader ecosystem of partners and solutions. so, very excited to be here and to deliver that value. >> And Peter, thank you so much for joining us again, Bobby Allen, thank you for co-hosting. I'm Stu Miniman and as always thank you for watching theCUBE.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by IBM Wear and its ecosystem partners. >> Welcome to our live coverage here in Mosconi North Lobby, Of'em World 2019. I'm John for a Student and a Volante celebrating our 10th VM World or 10 years of covering the M world. Dave's stew. What a run been Go back across Mosconi South 10 years ago with the green set. This is 10 years later. 10:10 p.m. World BMC Rule No longer the show, so that kind of folds in the Dell Technologies Man, The world's changed. Pat Nelson had just delivered his keynote as CEO Sanjay Poon and a CEO came on talk to customers stew. A lot of acquisitions, a lot of cloud native, a lot of cloud. 2.0, this is turning into VM. Wear 2.0, where vm zehr kind of only one part of the equation. So let's jump into the analysis, Dave. I mean, you put out some killer research on silken angle dot com, and we keep on dot com around customer spend still, we put out a lot of analysis on all the key trends that Vienna was playing into. Cloud two point. Oh, is what we're calling it. It's enterprise Cloud of fresh scale Day. What? What? What? What do you want? Your analysis, Latino >> John, when you go back. 10 VM Worlds ago, it was all about virtualization, completely changing the deployment dynamics. When when I first saw a VM deployed, I went, Oh, my God, This is gonna change everything. And it did. But while compared to now what's happening with cloud and a I we heard so much about five g. It was also the big, big difference in the ecosystem. Back when e. M. C owned VM wearing 2010 there was that sort of Chinese wall stew. You were working there, you know, just before that. And there wasn't a lot of, you know, swapping of I P, if you will. They were sort of treating them as unequal player to net app and everybody else out there. Tod Nielsen used to say, for every dollar spent on of'em were licensed, 15 spent an ecosystem. You don't hear that kind of narrative anymore, you hear we're crushing the HC. I vendor where number one basically a sort of backhand to Nutanix We heard on the on the keynote Very tight integration VX rail project Dimension So much, much tighter integration since Pat Tell Singer joined VM. Where from the emcee lots has changed >> will be a lot of research on reporting leading up to the show around Cloud two point. Oh, I'll see Dev. Ops is willing to home of the dimension on enterprise scale, the number of acquisitions of'em wears made and then, boom. They dropped two monsters on the table or the 11th hour pivotal for 2.7 billion carbon black for 2.1 billion. Lot of stories in those AK was other acquisitions, your analysis and how that played out today on the >> Kino. As Dave said when we started coming to this event back in 2010 you know, the virtual machine was the center of the universe. What were these servers that it lived on, how to storage and network and get fixed to be ableto live in that environment And the keynote. It was a lot of cloud, you know, John, we brought in a lot of the Cloud camp people that first year and some people were like, Why are we talking about Cloud? This is VM World, and we're like, Well, this is the future. And today we're not talking about V EMS at the center we're talking about containers were talking about cloud native applications, that multi cloud world absolutely something that pack l singer did. Front center actually felt it almost glossed over a little bit of the H C, I and NSX and all these wonderful things. Sure, there was some big del pieces in there. The M word cloud on Delhi emcee the Del Di are, you know, data protection, power protect, you know, into the VM where peace something that you definitely would not have seen under the old emcee Federation model. So Michael Dell, absolutely having his strong footprint here. Dave's done a lot of analysis talking about things like Pivotal getting pulled in and like so many different acquisitions, Pivotal came out of'em wear and, you know, carbon black Boston based companies so many different pieces here to get them talking about applications and where Veum, where the company sits in this multi cloud world where they're trying to be, you know, maintain their relationship with us. >> Let's get into the analysis on the whole ecosystems. I really want to dig into the work. Dave, you didn't and the team did. But let's go through the keynote first. So my personal opinion was it felt like, um, I'll give him a C plus Pat because it just didn't have a lot of meat. In my opinion, it felt like it was too much tech for good, although super important to have that mission driven stuff I think is really valuable as the market tends to look >> at tech >> as bad actors. I thought that was addressing. That was a positive thing, but it felt too much. I didn't see a lot of specifics. It felt do is and David, if they were hiding something, they were putting a lot of it didn't seem like there's a lot of substance coming out specifically around how Kubernetes was going to be impacted. Specifically, how Cooper is going to sit within the VM where ecosystem products specifically I just didn't feel like the product side was there. >> Well, you know what? I'll say it, John and General, I agree with you because Day one usually is here is the company vision. And if the vision is kubernetes, well, we've been hearing kubernetes for a bunch of years. Kubernetes is not the answer. Kubernetes is an enable ionizing technology job. Ada, who we up on stage? You know, we had him on the Cuban. He's like, look committed. This is not a magic layer. It's this thin layer that's gonna help us go between clouds. Getting into some of their future projects is something I usually would expect on Day two, the vision of V. M. Whereas a company, it feels like we're in that transition from who do you want a big tech for? Good? That that's great stuff. You know, Pat has a long history of talking about, you know, that moral compass that he has and wants the company to live. That which is a good change from many of the Silicon Valley companies. But, you know, I didn't get a strong feel for their vision and it was not >> a conservative. They didn't want to actually put a position down there because I think everyone in the hallway that I talked to wants to know how Cooper is gonna impact the sphere for instance, is gonna change the makeup of the sphere. And what's the impact on the product side the head that stat about bare metal being 8%. I was like, a little bit biased. Maybe there, So are they. They tiptoeing. Dave, you think? I mean, the spend numbers show that if you could just hold the line for 24 months and the new trends won't take away from that license, I mean, is it a tactical thing? Or do you think that here's the >> thing? I want to go back? I do want to give'em where? Props on one thing and you've used this term to If you go back to 8 4009 Paul Maritz talked about. We're building the software mainframe and passed them pretty consistent about that they used, they said, Any workload, any app? What's different today than back then is, he said, any workload, any up any cloud. Really. Cloud wasn't as much of a factor back then, but that vision has been fairly consistent it to you. Answer your question, Veum. We're spending remains strong, you know they're spending data that we shared with the GT R on silicon angle yesterday and today is that 41% of the VM were installed. Base is going to spend Maurine the second half of 2019 and only 7% are going to spend less. Okay, that's a real positive. But at the same time, the data clearly shows that cloud is negatively impacting VM wear spend and so that's a real threat. So multi club Pat said today technologists who Master Master Multi Cloud will own the next decade. He's talking to his audience. I'm not sure I agree with that. How much you're mastering Multi Cloud is what's gonna be the determining factor to own the next decade. >> Well, I'm stumped. Stick with my position. That multi cloud is not a reality. I think it's really more overhyped, and our actually just started to be hyped and probably will be then over hypes. And then seven years from now we'll start seeing multiple clouds truly interoperable. But I think multi cloud is we find on the Cuba simply enterprises have multiple vendors and multiple environments that happen to be those vendors have cloud, so I don't think it actually is an operating model yet. But again, just like on the Cube 2012 stew. We talked about hybrid Cloud. I called. I asked, yes. When was it a halfway house of the weigh station? He had a connection. >> So gassy. So, John, here's what I say. Number one is customers today absolutely have multiple clouds. But for multi cloud, to be a reality multi cloud must be greater than the sum of just the piece is that it's made up today and absolutely were not there. Today. VM wear has a strong reason why it should be at the center of that discussion. But they're gonna be right at loggerheads with Red Hat and Microsoft and Google and Cisco in that kind of debate at the multi cloud >> and we had, we had a story on our special report on silicon angle dot com. Check it out. It's called Coping With Multi Cloud. Were coping was by design. Coping as a mechanism used to deal with uncertainty. Coping strategies is what CEOs are going to deal with. But read that post. But in it I kind of see. I mean, I kind of agree and disagree. We have two perspectives, Dave developing. You want to get your thoughts butts do on this C I ose that come from a traditional I t background tend to like multi vendor things because they know they don't want lock. And they're afraid if you then swing to the progressive side si SOS, for instance, who are have a gun to their head in terms of security, they're all saying no, we're betting on one cloud and we'll have backup clouds, but our development staff is gonna build stacks. Have AP eyes, and we'll share those AP ice to our suppliers. Cloud vendors are saying Support our specs. So to spectrums the old school I t. Guys saying Multi vendor equals multi cloud. And then then, on the other end, See says to say, I'm gonna build technology and build a stack, exposed FBI's and let the clouds support my my tooling that not the other way around your thoughts. I >> pulled a quote in my piece That's on Silicon angle as well. From David. If lawyer and he was defining a hybrid multi cloud, he said, any application of application service can run on any note of the hybrid cloud without rewriting re compiling a re testing. My argument would be you're never gonna have that North Star without a high degree of homogeneity. And there's three examples of high degrees of homogeneity in hybrid Cloud. Today it's azure stack. It's clouded customer, and it's outposts. You're so this idea that we're gonna have this diverse set of clouds and yet they're all gonna run is one to me. I ask, Is it technically feasible? And is it Is it practical? >> Well, Steve, Steve Harry was on his Hey had announced the signal. FX has come. Portfolio can be sold on a big deal to split when he was on The Cube with me last week and he said one of them looking back on the 10 years that 1 may be M where great was virtual ization allowed for massive efficiencies and improvements without rewriting the apse. The question today's point is, is that a reality? Can what's next? So that that next gain that's not gonna require people to rewrite their APs >> well and that actually not rewriting the axes where VM or has its strength. Because, you know, I I made a joke during the keynote. It was like you have a V M insert magic. Congratulations. You now have a cloud workload because I just did. VM were cloud and it's the same app. But on the other hand, that's actually been my biggest dig on V M. Where is the long pole? In the tent and modernization is modernizing wraps. And that is that Tom Zoo that Veum were announced. They're taking bit Nami and pivotal because we do need to modernize the application. If you have an application, you've been running long enough that your users are complaining about it. We need to modernize that. VM wear has not been much of enabler of that pivotal. Yes, absolutely. That's what the cloud Foundry Labs, the pivotal Labs has been doing for years. It is a tough thing to do. That's what the developers we hear it Amazon. They're building new abs. I don't hear modern building new app at VM where, but they are moving in that >> direct question for you guys and John you in particular, but also used to as well followed AWS probably more closely than any two people I know, Pat said. Strength, lies and differences, not similarities. I've noted many differences in philosophy between A. W S and V M. where they're both winning in the market place. We know a divorce is growing much faster, but a divorce doesn't believe in multi cloud. A Devil's doesn't believe security is broken. That's that's VM wears narrative VM where says it wants to be the best infrastructure and develop our software company. That's kind of like eight of us is the platform for that. They both want to be the security cloud, and and VM were said today they have 10,000 cloud data centers, and I'm guessing that Andy Jassy wouldn't think that many of those data centers are cloud data centers. Your thoughts on the differences between between A. W S s philosophy and VM wears narrative. And can they both? Is there enough market for them both to win? >> Well, it's strikingly different. I mean, AWS is just in a breed of its own. VM wears hedging and playing there their bets. They're kind of putting, you know, bets on each horse, right? Interesting enough in the cloud thing. There was no mention of Google Cloud. I didn't see that mentioned there. Andi was speculation. Wouldn't Oracle be great partnering with Google? That's not a rumor. I'm just kind of put it out there. That would be a good combination partnership, given the Oracle's cloud is failing miserably, I think v M. Where because of the operating leverage in the enterprise, has that operational layer down to me, Amazon is the model, the future, because they are clearly born with a dev ops mindset. They have an environment where developers can build applications and they could operate. It scale with all the efficiencies of operations. So I think cloud to foreigners were calling. It is all about having developers and operational excellence without a lot of disruption or re platforming. So I think that's where the differences are. You have company that have toe have to work with this world of legacy applications, and that requires first lift and shift, which doesn't become attractive. Then you add containers on the game changes. So I think container ization really was, I think, the seminal moment in the shift where where you got kubernetes and containers. So let the enterprise cloud. Native guys get in and have an operational framework that takes advantage of the horsepower of public cloud, which is computing storage, which is why we think networking and security will be the absolute focus areas for Cloud two point. Oh, and Amazon is just dominating the depth and the ops. And I don't think anyone is coming close. >> I'd love to hear your thoughts, too, but I just got caught. I don't think Oracles Cloud is failing miserably. I think it's I wouldn't say it that way. I think their infrastructures of service is irrelevant and the cloud is all about SAS. But just, you know, that's what I think. Waken debate that somebody >> has been great for the Oracle customers. But in terms of all metrics in terms of public and enterprise, cloud with multiple environments nonstarter. >> So there's a bit of a schism out there if you talk to customers. There are many customers when they deploy in Public Cloud, although uses, you know, compute storage and, like the identity management and that's it. And they'll stop and I talkto you con many customers that are using kubernetes so that if they want to hit the eject button, but they're all on Amazon today, so it's not like they're all fleeing Amazon or doing it. But we talked to lots of developers that are deep in aws they're using those service is they're using Lambda and they're building it. So how deep will they go? And that's where I look at this VM we're offering. And it's if I'm gonna take the sphere and extend that with kubernetes. I saw Cuba. Well, um, actually in the Twitter stream said it is, you know, cloud lock in to Dato is what we get if we do that. Because the whole reason VM were originally created called Foundry. So they didn't have to take that entire V's fear colonel and put it everywhere. So it's a nice bridge. That van, where has the partnership they have with AWS is a great strategy. But I still think it is a bridge to an ultimate solution where they'll still use the M where the embers not going anyway. But that shift of where my application live in what service is I do is going to change a lot over the next 3 to 5. >> Let's not lose sight, Dave, of where we are in the industry. I mean, we're at VM World 2019. We go to reinvents coming up. We kind of live in a tech bubble in the sense that all this stuff is all kind of great skating to where the puck is gonna be. But the reality is in most I tea shops, and again, I use ceases as a proxy in my mind, because they're in the cutting edge of all the real critical nature of security, of the impact that harm that could happen to a company. So I look at sea. So she's more of a canary in the coal mine for trends than the nutritional CEO. At this point, most enterprises are just trying to rationalize kubernetes, generally speaking like never mind, like making a centerpiece of their entire architecture. They're looking at their existing environment saying, Hey, I got V EMS that did great for me. Serve a consolidation enabled more efficiency, not rewriting code. Now what? I gotta do kubernetes and do all this other stuff. How do I suspect my VM with kubernetes? Is it on bare metal? So I think we're way ahead right now. In the narrative, I think the reality is that people catch up. That's where the proof is gonna come into. That's why the customer survey numbers are interesting. >> Keep keep. Townsend is set on the Cube VM, where moves at the speed of the CEO, so they're not moving too far ahead of them, but they are key heating up with them. >> Let me share some data to share some data so you could go to Silicon Angle. Look at the V M World 2019 90 spending survey containers, Cloud NSX and pivotal its data from Enterprise Technology Research that we analyzed. There's no evidence right now that Container's air hurting VM wear. But then that was the narrative that containers are gonna kill the M where but long term. There's real threats there. So that's what the pivotal acquisition, at least in part was about. I want to address the pivotal acquisition cause we haven't dug into it a little bit a cz, Much as I'd like to see. There's really three things there. One pivotal was struggling. You look at the stock price, you look at their buying patterns, you know the stock was down that not even close to their original AIPO price, so they wanted to get out of the public eye right now would not be on that 30 day shot clock. The second is it's a hedge on containers. And the third is it's a financial scheme. I mean, I'll call it that VM wears paying $800 million in cash for an asset that's worth $4 billion. How can that be? Well, they already owned 15% of pivotal there. Give. They're exchanging stock. So their trade trading paper to Adele in exchange for Dell's 70% ownership in Pivotal. So they pick up this asset, and it's basically a forced migration by Michael Del, who controls 96% of the voting shares. So there's all kinds of inside nuance going on there that nobody's really talked about it a >> great deal for Of'em. Where and Michael Dell? It's >> a very good deal for VM wear and Michael Dell. >> Let's unpack that are rapidly. >> Just did the one piece on that, right, because kubernetes it was the elephant, the room that was damaging what Pivotal was doing. VM were made a couple of acquisitions VM where needs to react at, so it made sense to pull out back in. Even if it does go against some of the original mission, that Cloud Foundry and Pivotal had to be able to be that cloud native without that full strong time, >> it's all about building apse, right? It's all about enabling developers. >> Let's on that note. Let's go around the horn and talk about what we expect from the emerald this year. And then we'll kick off three days of wall to wall coverage. I'll start, I expect. And I'm not looking for is how VM wear and its ecosystem and who's really deep in the ecosystem, who's kind of independent and neutral, what they're doing with their containers and kubernetes play. Because I think the container revolution that was started with Dr Absolutely is very relevant to the C i o and the Sea. So so and then how they're using data in that in their applications. So you know how VM Way wants to position themselves on the control plane, how that fits in the NSX. I think containers in the container ization is going to change. I think bare metal is gonna be a super important topic in the next couple of years. Dio I'm kind of swinging back to the my feeling that you know, hyper convergence what it did for server storage networking back when you were calling those those moves. I think that kind of hyper convergence mentality is coming up the stack, and I think Containers and the Kubernetes Chess Board will will play out. >> I think if you my feelings, if you don't own a public cloud, you better convince your customers in your ecosystem that the future is in our definition of cloud, which is multi cloud. And that's what this VM world to me is all about. >> Yeah, you know, Veum wears taking their software state and trying to live in all of those cloud world. So you know, V. Amar has 600,000 customers and they want to be the ones to educate them on the kubernetes containers. You know you're at modernization, but there's a lot of other places customers can learn about this. No one understand where VM wear really adds value beyond all of those pieces, because all the cloud platforms have their kubernetes. >> A lot of other places, like the public cloud. That's where all the action >> exactly comes back down the cloud 2.0 Dev and ops developers and operations all come together with software. Thank you. Breaking it down here for three days. Wall to wall coverage here in Moscow north to set celebrating our 10th year covering VM World. Thanks for watching stay with us from or action after this short break.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by the M Wear and its ecosystem partners. >> I am Stew Minimum and my co host, Justin Warren. And you're watching The Cube live from VM World 2019 here in Moscow North. Actually, the 10th year that we've had the cubit this event joining me on the program, I have Brad Anderson and Keith Norby, both with Netapp. Brad is an executive vice president, and Keith is director of strategic alliances. Gentlemen, thanks so much for joining us. >> Thank you. So, Brad, I've had >> the pleasure of working with the, um where since 2002 it's one of the highlights of my career in Tech has been watching that growth of virtual ization a company that, you know. It was about 100 people when I first started watching them. And that wave, a virtualization that had ripples throughout the industry, was really impressive. But >> I didn't actually >> get to come to this show until 2010 Asai said. Our 10th year of the show, you were one of the few that were at the inaugural event that it's the 16th year of it. So >> just give us a >> little bit of ah ah, look back in. You know what you've seen changing Netapp, of course. You know, long longtime partner of ah of Via Mers. >> Absolutely. He was like 3 4000 for it was at a hotel in San Diego. And there's probably about 1000 people there, but I don't think they were planning 1000. So is the longest kind of room. And we had people that were just kind of a mile down. And finally, uh uh, the comment was, Hey, could we knock down a wall and kind of get people a little bit closer? So, no, that was a long time ago. And in fact, it was Diane Mendel. I had an opportunity of Aquino, and I think there was another key note from IBM. >> Yeah, well, you know, I'm sorry they didn't invite you back on stage this morning, but, you know, >> a little big, bigger show today. >> A little bigger. I think we're somewhere the ballpark. 20 thousands. What? This show's been for about the last five years. Conversations very different today. As I made commentary were in the post VM era. Today, V EMS are no longer the center of the conversation. And you know, multi cloud is something that they put out there, which is the story I've been hearing from net out for many years software company, living in all of these cloud environment. So talk to us a little bit about how that relationship with VM wear and what we're not upsets in the ecosystem is >> changing. I mean, you know, Veum, where has never happened, then where has been a great partner for a long, long time? And, uh, and net have strategies Clearly hybrid multi cloud. When you think about private clouds today, VM where has a huge footprint in that space, So they continue be super important. We probably have a more expansive definition of hybrid to us. Hybrid is private cloud and public cloud in all kinds of combinations. And but we also so strongly believe the multi cloud and so we are. You know, we're driving very hard for the hybrid multi cloud, letting customers basically start anywhere they want to with any cloud provider on Prem in the cloud, and have that you know that control of data irrespective of and move at their own pace. >> Yes, sir. Vienna, Where has long been one of those places where everybody can meet? So you mentioned knocking down walls. VM. Where is one of the few companies that actually succeeded in doing that and having people be able to work with partners in other eras? There was often a lot of fighting between different vendors, or it's here. It's whatever you as a customer wants to do, we will be there to do that with you. And that's another one of those companies. All right, if you have some data, we will help you manage it, no matter where it is. So what tell it tells about something that what are you doing right now in this Is New World, where a stew mentions it's a post of'em world. So in this post of'em world, how do you manage your data in that post VM world? >> Well, it's it's it's Ah, it's managing first of all, I mean, we really strongly believe place, and so we're gonna manage, you know, you know the data and start where the customer starts. I mean, we're not advocating that they have to start in cloud. They have to be on prim. There's an orderly path because depending on the customer, they're all going to take a very different path. And and so what we want to do is give him control. Their data, irrespective of the path, allow them to move on that path. But we're seeing at Netapp that it's it's the but the data is beyond the data that's increasingly about applications. And so, you know, you heard a little bit about Ah Kubernetes. That's That's something we've strongly feel as well on providing a set of tools to provide choice where, you know, you know, independent the cloud, you know, same kubernetes service, same different tools, same tool set. Same service is on prim or in the cloud. >> Yeah, Ned has a strong cloud. President's summer things like cloud volumes. Some of the other acquisitions that you've made that help you with the cloud journey, like some of them have sufferings, are really strong, >> know very much so. And and we think we can provide Ah ah, the superior customer experience. But then, if the customer wants to use, you know, a variety interesting set of tools we support that as well. We are supporting the customer on his journey with the tools as they ah determined. >> So, Keith, tell us about some of the strategic partnerships that helped net up. To be able to partner with these different customers and to bring different vendors together to help themselves. Customer problems? >> Yeah, well takes a lot of them. Thio, meet the customer needs, as you saw today in the landscape folks that are on the solutions exchange floor. It takes not just a partnership between net up and VM wear, but net up in Vienna, where plus v m net up in Vienna, where plus ah ton of other folks, Cisco has an example longtime partner of ours and flex pot. Then you know the fact that we're doing memory accelerator flex pod takes, you know, something that has had a long tradition of the, um where excellence with Cisco and is now the order of magnitude faster than anything you want for APS that need scale, performance, all the service capabilities of on tap for things like Metro Cluster and beyond. >> So you remember back years ago it was you know, you know who has the most integrations and with the M wear. And you know, if you know all the A I and Viv balls and all of those pieces and netapp always, you know, was right at the top of the list. You know, working in those environments may be brought if you want to enter this. But, you know, today, how do you give us some examples That kind of that joint engineering work that goes on between Netapp and VM, where obviously there's bundle solutions like flex pod, that's, you know, the sphere plus netapp in there. But you know that engineering level, you know, where does rubber with road? >> Yeah, it's funny because I've been at every vehicle except to, And so I've been with you. In the sense I've seen the landscape of these innovations where Steve Haired and some others would talk about the movie previews of things like the aye aye and bossy providers all coming. And that was the big thing you'd focus on. Now it's less about that, and I think it's more about what Brad is kind of brought to net happened in the focus on simplicity. Now the funny part about simplicity is that to deliver simplicity, much like the engineering detail to deliver Tesla or an iPhone is extraordinary, so the work isn't less. In fact, the work is Maur and you pre configuring or pre what you were wearing as much as possible. The work we started to do over a year ago between George Curry in our CEO and Sanjay Poon got together. We started planning on some multi cloud plans, and, uh, that's where you see a lot of our persistence and cloud volumes on VMC. You see us having a view more vow, didn't design Aneta Page C. I for your Private Cloud VD I solutions. And these air meant to draw NSX a kn and when his net I've ever had in NSX immigration all said, Now we have had a sex and integrations to make that easier to bring on board. We have the realized integration so you could build a self serve portal catalog just like it talked about today, and the list goes on and on, so it's funny how it's less. The features are important. But what's more important is trying to make this a simple it's possible for you to consume and then for the folks that need things like scale of maps and service is or they need the same cloud volumes in this data fabric on any one of the hyper scale er's. We have really the only end in story on that, and that's what makes the via More plus net up thing worked really well. >> So how do you balance the flexibility of being able to solve multiple customer problems? And they all have different needs. How do you balance the simplicity with that? With that complexity? And it was mentioned by Pat, make a note as well that you've got this kind of tension between. I need to be able to do everything flexibly, but that can sometimes lead the complexity. So how do you change that? To become simple for customers to use? >> I mean, I think the biggest thing it Z it's a design input. I mean, if if you start out with just trying to make the technology all it can be with a end of you know, one particular cloud or one particular partner, then it becomes very difficult. As he tried to expand it to multiple partners and because it's about choice. We're kind of think about that right up front. And so if it's a design input, it puts, it puts, as he said, to put some burden on the technical team. But it is a much more powerful solution if we if you can pull it off, and that's been a big part, and I think it kind of starts with this mentality that you know, it's about choice, and we gotta make simplicity. And now part of the value proposition, rather than after for thought as it has, may be historically has been. What if >> we could talk a little bit about customers? Because, you know the message I hear this morning is you know, you talk multi cloud, a cloud native. There's a lot of change in the industry, you know, I'm participating in couple of career advice events because remember back 10 years ago, it was Oh, my gosh, if I'm a server admin, I need to learn to be virtualization than it was cloud. You know, architects, but way know that change in the industry is constant. So, you know, what are some of the key drivers when you're talking to customers in general and specifically when you talk about in engaging in part with the M where, >> Yeah, I mean, I I think it starts with people just recognizing. Even if people haven't moved the cloud today, that tends to be their primary strategy. In a recent survey, I think we found 98% of the customers, said Cloud is her strategy. However, 53% said still on Prem is their primary compute centers. So you know they're not there yet. And so But because that's their strategy, then you know we have to respect that. And so So, uh, you know, increasingly you're seeing at Netapp Waleed with clout, even though we know customers aren't quite ready there. But we align to that long term vision. But then our strange made up helping the modernize What they have currently on prim helping build private clouds for the same service is they have him public cloud, and then let them have the complete absolute choice. What public cloud or multiple public clouds they want and designed with with, you know, that full spectrum in mind, knowing they could start anywhere on that on that scale. >> Yeah, the customers ultimately are gonna dictate to the market What Israel and I think over time, Pios sort of vet who is right on this stuff. And so history's a great lesson teacher of all those things, you know, for me, it seems less less about how many different things you can offer. And as you see whether we're at Veum World or at Red Hat Summit were made obvious. Reinvent or, um, coup con every every every vector, turn of the customers. Prism on this will say something different. But I think in general, categorically, if you look at it, you could start to just, you know, glean what you think are the real requirements. And by the way, the rule carpets are not all technical. You know, I think what what gets lost on folks is that there is a lot of operational political factors, probably political factors, a lot more than what a lot of people think. You know, they're just talking about what the what The speed is to re factor APs or to migrate APS. Frankly, there's just a lot of politics that goes with that. There's a lot of just stuff to work through, >> and that's where I think simplicity is so important because of those non technical reason. Simplicity resonates across the board. >> But I would say you have to have simplicity with capabilities. >> I mean, just one of the things you talk about, right? If I modernize some application, well, the people that were using that application, they were probably complaining about that old one. But at least they do have to relearn >> that. Have that that new one. So we're gonna have some exciting announcements tomorrow. So I'm kind of check out tomorrow's stuff that will announce with VM, where with Netapp tomorrow We're here at the show floor will be showcasing some of those things. We can't give away too much of that today. But, you know, we think the future is bright and together with with Veum Or, you know, this partnership, I think, has a lot of upside. Like you said, we've had We've had a 17 year history with, you know, hundreds of thousands of customers together and installed base that goes back to like you said to be very beginning. Um, I remember back to the very beginning of the ecosystem. Net up was one of the strongest players in that market on dhe Since then, it's evolved beyond just NFS. >> Well, hopefully bread. We can get you on a keynote for in another 10 years. Waken Knock that wall down Exactly. Exactly. >> All right, great. Want to give you both the final word? You know, so so many big themes going on, you know, takeaways that you want people to have from the emerald 2019 bread >> I think the biggest takeaway is that just like the show today you didn't hear a whole lot about virtualization. It's moving to contain her eyes and and we had netapp view that, you know, we support all virtualized environments on from across the cloud, moving to supporting all containerized application environments on premises and cloud. And it's about choices in combinations of both, but keeping data control. >> Yeah, I'd say for me, it's it's really the power of the of of the better together, you know, to me, it's nobody's great apart. It takes really an ecosystem of players to kind of work together for the customer benefit and the one that we've demonstrated of'em. Where with that plus Veum, where has been a powerful one for well, well over 17 years and the person that putting in terms of joint customers that have a ton of loyalty to both of us, and they want us just to work it out. So you know, whether you're whether your allegiance on one side of the Cooper natty criminals battle or another or you're on one side of anyone's stores. Choice or another. I think customers want Netapp on via mortar work. It's out and come up with solutions that we've done that. And now what? We wait for the second act of this to come out. We'll start that tomorrow. Teeth and >> Brad, thank you so much if you couldn't tell by the sirens on the street. We are live here at San Francisco at Mosconi, north of lots more coverage. Three days wall to wall coverage for Justin Warren. I'm stew. Minimum is always thank you for watching the cue