>>Good afternoon, everyone. And welcome back to the VMware Explorer. 2022 live from San Francisco. Lisa Martin, here with Dave. Valante good to be sitting next to you, sir. >>Yeah. Yeah. The big set >>And we're very excited to be welcoming buck. One of our esteemed alumni Sanja poin joins us, the CEO and president of cohesive. Nice to see >>You. Thank you, Lisa. Thank you, Dave. It's great to meet with you all the time and the new sort of setting here, but first >>Time, first time we've been in west, is that right? We've been in north. We've been in south. We've been in Las Vegas, right. But west, >>I mean, it's also good to be back with live shows with absolutely, you know, after sort of the two or three or hiatus. And it was a hard time for the whole world, but I'm kind of driving a little bit of adrenaline just being here with people. So >>You've also got some adrenaline, sorry, Dave. Yeah, you're good because you are new in the role at cohesive. You wrote a great blog that you are identified. The four reasons I came to cohesive. Tell the audience, just give 'em a little bit of a teaser about that. >>Yeah, I think you should all read it. You can Google and, and Google find that article. I talked about the people Mohi is a fantastic founder. You know, he was the, you know, the architect of the Google file system. And you know, one of the senior Google executives was on my board. Bill Corrin said one of the smartest engineers. He was the true father of hyperconverge infrastructure. A lot of the code of Nutanix. He wrote, I consider him really the father of that technology, which brought computer storage. And when he took that same idea of bringing compute to secondary storage, which is really what made the scale out architect unique. And we were at your super cloud event talking about that, Dave. Yeah. Right. So it's a people I really got to respect his smarts, his integrity and the genius, what he is done. I think the customer base, I called a couple of customers. One of them, a fortune 100 customer. I, I can't tell you who it was, but a very important customer. I've known him. He said, I haven't seen tech like this since VMware, 20 years ago, Amazon 10 years ago and now Ko. So that's special league. We're winning very much in the enterprise and that type of segment, the partners, you know, we have HPE, Cisco as investors. Amazon's an investors. So, you know, and then finally the opportunity, I think this whole area of data management and data security now with threats, like ransomware big opportunity. >>Okay. So when you were number two at VMware, you would come on and say, we'd love all our partners and of course, okay. So you know, a little bit about how to work with, with VMware. So, so when you now think about the partnership between cohesive and VMware, what are the things that you're gonna stress to your constituents on the VMware side to convince them that Hey, partnering with cohesive is gonna gonna drive more value for customers, you know, put your thumb on the scale a little bit. You know, you gotta, you gotta unfair advantage somewhat, but you should use it. So what's the narrative gonna be like? >>Yeah, I think listen with VMware and Amazon, that probably their top two partners, Dave, you know, like one of the first calls I made was to Raghu and he knew about this decision before. That's the level of trust I have in him. I even called Michael Dell, you know, before I made the decision, there's a little bit of overlap with Dell, but it's really small compared to the overlap, the potential with Dell hardware that we could compliment. And then I called four CEOs. I was, as I was making this decision, Andy Jassey at Amazon, he was formerly AWS CEO sat Nadela at Microsoft Thomas cor at Google and Arvin Christian, IBM to say, I'm thinking about this making decision. They are many of the mentors and friends to me. So I believe in an ecosystem. And you know, even Chuck Robbins, who the CEO of Cisco is an investor, I texted him and said, Hey, finally, we can be friends. >>It was harder to us to be friends with Cisco, given the overlap of NSX. So I have a big tent towards everybody in our ecosystem with VMware. I think the simple answer is there's no overlap okay. With, with the kind of the primary storage capabilities with VSAN. And by the same thing with Nutanix, we will be friends and, and extend that to be the best data protection solution. But given also what we could do with security, I think this is gonna go a lot further. And then it's all about meet the field. We have common partners. I think, you know, sort of the narrative I talked about in that blog is just like snowflake was replacing Terada and ServiceNow replace remedy and CrowdStrike, replacing Symantec, we're replacing legacy vendors. We are viewed as the modern solution cloud optimized for private and public cloud. We can help you and make VMware and vs a and VCF very relevant to that part of the data management and data security continuum, which I think could end VMware. And by the way, the same thing into the public cloud. So most of the places where we're being successful is clearly withs, but increasingly there's this discussion also about playing into the cloud. So I think both with VMware and Amazon, and of course the other partners in the hyperscaler service, storage, networking place and security, we have some big plans. >>How, how much do you see this? How do you see this multi-cloud narrative that we're hearing here from, from VMware evolving? How much of an opportunity is it? How are customers, you know, we heard about cloud chaos yesterday at the keynote, are customers, do they, do they admit that there's cloud chaos? Some probably do some probably don't how much of an opportunity is that for cohesive, >>It's tremendous opportunity. And I think that's why you need a Switzerland type player in this space to be successful. And you know, and you can't explicitly rule out the fact that the big guys get into this space, but I think it's, if you're gonna back up office 365 or what they call now, Microsoft 365 into AWS or Google workspace into Azure or Salesforce into one of those clouds, you need a Switzerland player. It's gonna be hard. And in many cases, if you're gonna back up data or you protect that data into AWS banks need a second copy of that either on premise or Azure. So it's very hard, even if they have their own native data protection for them to be dual cloud. So I think a multi-cloud story and the fact that there's at least three big vendors of cloud in, in the us, you know, one in China, if include Alibaba creates a Switzerland opportunity for us, that could be fairly big. >>And I think, you know, what we have to do is make sure while we'll be optimized, our preferred cloud is AWS. Our control plane runs there. We can't take an all in AWS stack with the control plane and the data planes at AWS to Walmart. So what I've explained to both Microsoft and AWS is that data plane will need to be multi-cloud. So I can go to an, a Walmart and say, I can back up your data into Azure if you choose to, but the control plane's still gonna be an AWS, same thing with Google. Maybe they have another account. That's very Google centric. So that's how we're gonna believe the, the control plane will be in AWS. We'll optimize it there, but the data plane will be multicloud. >>Yeah. And that's what Mo had explained at Supercloud. You know, and I talked to him, he really helped me hone in on the deployment models. Yes. Where, where, where the cohesive deployment model is instantiating that technology stack into each cloud region and each cloud, which gives you latency advantages and other advantages >>And single code based same platform. >>And then bringing it, tying it together with a unified, you know, interface. That was he, he was, he was key. In fact, I, I wrote about it recently and, and gave him and the other 29 >>Quite a bit in that session, he went deep with you. I >>Mean, with Mohi, when you get a guy who developed a Google file system, you know, who can technically say, okay, this is technically correct or no, Dave, your way off be. So I that's why I had to >>Go. I, I thought you did a great job in that interview because you probed him pretty deep. And I'm glad we could do that together with him next time. Well, maybe do that together here too, but it was really helpful. He's the, he's the, he's the key reason I'm here. >>So you say data management is ripe for disrupt disruption. Talk about that. You talked about this Switzerland effect. That sounds to me like a massive differentiator for cohesive. Why is data management right for disruption and why is cohesive the right partner to do it? >>Yeah, I think, listen, everyone in this sort of data protection backup from years ago have been saying the S Switzerland argument 18 years ago, I was a at Veras an executive there. We used the Switzerland argument, but what's changed is the cloud. And what's changed as a threat vector in security. That's, what's changed. And in that the proposition of a, a Switzerland player has just become more magnified because you didn't have a sales force or Workday service now then, but now you do, you didn't have multi-cloud. You had hardware vendors, you know, Dell, HPE sun at the time. IBM, it's now Lenovo. So that heterogeneity of, of on-premise service, storage, networking, HyperCloud, and, and the apps world has gotten more and more diverse. And I think you really need scale out architectures. Every one of the legacy players were not built with scale out architectures. >>If you take that fundamental notion of bringing compute to storage, you could almost paralyze. Imagine you could paralyze backup recovery and bring so much scale and speed that, and that's what Mo invented. So he took that idea of how he had invented and built Nutanix and applied that to secondary storage. So now everything gets faster and cheaper at scale. And that's a disruptive technology ally. What snowflake did to ator? I mean, the advantage of snowflake is when you took that same concept data, warehousing is not a new concept it's existed from since Ralph Kimball and bill Inman and the people who are fathers of data warehousing, they took that to Webscale. And in that came a disruptive force toter data, right on snowflake. And then of course now data bricks and big query, similar things. So we're doing the same thing. We just have to showcase the customers, which we do. And when large customers see that they're replacing the legacy solutions, I have a lot of respect for legacy solutions, but at some point in time of a solution was invented in 1995 or 2000, 2005. It's right. For change. >>So you use snowflake as an example, Frank SL doesn't like when I say playbook, cuz I says, Dave, I'm a situational CEO, no playbook, but there are patterns here. And one of the things he did is to your point go after, you know, Terra data with a better data warehouse, simplify scale, et cetera. And now he's, he's a constructing a Tam expansion strategy, same way he did at ServiceNow. And I see you guys following a similar pattern. Okay. You get your foot in the door. Let's face it. I mean, a lot of this started with, you know, just straight back. Okay, great. Now it's extending into data management now extending to multi-cloud that's like concentric circles in a Tam expansion strategy. How, how do you, as, as a CEO, that's part of your job is Tam expansion. >>So yeah, I think the way to think about the Tam is, I mean, people say it's 20, 30 billion, but let me tell you how you can piece it apart in size, Dave and Lisa number one, I estimate there's probably about 10 to 20 exabytes of data managed by these legacy players of on-prem stores that they back up to. Okay. So you add them all up in the market shares that they respectively are. And by the way, at the peak, the biggest of these companies got to 2 billion and then shrunk. That was Verto when I was there in 2004, 2 billion, every one of them is small and they stopped growing. You look at the IDC charts. Many of them are shrinking. We are the fastest growing in the last two years, but I estimate there's about 20 exabytes of data that collectively among the legacy players, that's either gonna stay on prem or move to the cloud. Okay. So the opportunity as they replace one of those legacy tools with us is first off to manage that 20 X by cheaper, faster with the Webscale glass offer the cloud guys, we could tip that into the cloud. Okay. >>But you can't stop there. >>Okay. No, we are not doing just backup recovery. We have a platform that can do files. We can do test dev analytics and now security. Okay. That data is potentially at a risk, not so much in the past, but for ransomware, right? How do we classify that? How do we govern that data? How do we run potential? You know, the same way you did antivirus some kind of XDR algorithms on the data to potentially not just catch the recovery process, which is after fact, but maybe the predictive act of before to know, Hey, there's somebody loitering around this data. So if I'm basically managing in the exabytes of data and I can proactively tell you what, this is, one CIO described this very simply to me a few weeks ago that I, and she said, I have 3000 applications, okay. I wanna be prepared for a black Swan event, except it's not a nine 11 planes getting the, the buildings. >>It is an extortion event. And I want to know when that happens, which of my 3000 apps I recover within one hour within one day within one week, no later than one month. Okay. And I don't wanna pay the bad guys at penny. That's what we do. So that's security discussions. We didn't have that discussion in 2004 when I was at another company, because we were talking about flood floods and earthquakes as a disaster recovery. Now you have a lot more security opportunity to be able to describe that. And that's a boardroom discussion. She needs to have that >>Digital risk. O O okay, go ahead please. I >>Was just gonna say, ransomware attack happens every what? One, every 11, 9, 11 seconds. >>And the dollar amount are going up, you know, dollar are going up. Yep. >>And, and when you pay the ransom, you don't always get your data back. So you that's not. >>And listen, there's always an ethical component. Should you do it or not do it? If you, if you don't do it and you're threatened, they may have left an Easter egg there. Listen, I, I feel very fortunate that I've been doing a lot in security, right? I mean, I built the business at, at, at VMware. We got it to over a billion I'm on the board of sneak. I've been doing security and then at SAP ran. So I know a lot about security. So what we do in security and the ecosystem that supports us in security, we will have a very carefully crafted stay tuned. Next three weeks months, you'll see us really rolling out a very kind of disciplined aspect, but we're not gonna pivot this company and become a cyber security company. Some others in our space have done that. I think that's not who we are. We are a data management and a data security company. We're not just a pure security company. We're doing both. And we do it well, intelligently, thoughtfully security is gonna be built into our platform, not voted on. Okay. And there'll be certain security things that we do organically. There's gonna be a lot that we do through partnerships, this >>Security market that's coming to you. You don't have to go claim that you're now a security vendor, right? The market very naturally saying, wow, a comprehensive security strategy has to incorporate a data protection strategy and a recovery, you know, and the things that we've talking about Mount ransomware, I want to ask you, you I've been around a long time, longer than you actually Sanjay. So, but you you've, you've seen a lot. You look, >>Thank you. That's all good. Oh, >>Shucks. So the market, I've never seen a market like this, right? I okay. After the.com crash, we said, and I know you can't talk about IPO. That's not what I'm talking about, but everything was bad after that. Right. 2008, 2000, everything was bad. I've never seen a market. That's half full, half empty, you know, snowflake beats and raises the stock, goes through the roof. Dev if it, if the area announced today, Mongo, DB, beat and Ray, that things getting crushed and, and after market never seen anything like this. It's so fed, driven and, and hard to protect. And, and of course, I know it's a marathon, you know, it's not a sprint, but have you ever seen anything like this? >>Listen, I walk worked through 18 quarters as COO of VMware. You've seen where I've seen public quarters there and you know, was very fortunate. Thanks to the team. I don't think I missed my numbers in 18 quarters except maybe once close. But we, it was, it's tough. Being a public company of the company is tough. I did that also at SAP. So the journey from 10 to 20 billion at SAP, the journey from six to 12 at VMware, that I was able to be fortunate. It's humbling because you, you really, you know, we used to have this, we do the earnings call and then we kind of ask ourselves, what, what do you think the stock price was gonna be a day and a half later? And we'd all take bets as to where this, I think you just basically, as a, as a sea level executive, you try to build a culture of beaten, raise, beaten, raise, beaten, raise, and you wanna set expectations in a way that you're not setting them up for failure. >>And you know, it's you, there's, Dave's a wonderful CEO as is Frank Salman. So it's hard for me to dissect. And sometimes the market are fickle on some small piece of it. But I think also the, when I, I encourage people say, take the long term view. When you take the long term view, you're not bothered about the ups and downs. If you're building a great company over the length of time, now it will be very clear over the arc of many, many quarters that you're business is trouble. If you're starting to see a decay in growth. And like, for example, when you start to see a growth, start to decay significantly by five, 10 percentage points, okay, there's something macro going on at this company. And that's what you won't avoid. But these, you know, ups and downs, my view is like, if you've got both Mongo D and snowflake are fantastic companies, they're CEOs of people I respect. They've actually kind of an, a, you know, advisor to us as a company, you knows moat very well. So we respect him, respect Frank, and you, there have been other quarters where Frank's, you know, the Snowflake's had a down result after that. So you build a long term and they are on the right side of history, snowflake, and both of them in terms of being a modern cloud relevant in the case of MongoDB, open source, two data technology, that's, you know, winning, I, I, we would like to be like them one day >>As, as the new CEO of cohesive, what are you most ask? What are you most anxious about and what are you most excited about? >>I think, listen, you know, you know, everything starts with the employee. You, I always believe I wrote my first memo to all employees. There was an article in Harvard business review called service profit chains that had a seminal impact on my leadership, which is when they studied companies who had been consistently profitable over a long period of time. They found that not just did those companies serve their customers well, but behind happy engaged customers were happy, engaged employees. So I always believe you start with the employee and you ensure that they're engaged, not just recruiting new employees. You know, I put on a tweet today, we're hiring reps and engineers. That's okay. But retaining. So I wanna start with ensuring that everybody, sometimes we have to make some unfortunate decisions with employees. We've, we've got a part company with, but if we can keep the best and brightest retained first, then of course, you know, recruiting machine, I'm trying to recruit the best and brightest to this company, people all over the place. >>I want to get them here. It's been, so I mean, heartwarming to come Tom world and just see people from all walks, kind of giving me hugs. I feel incredibly blessed. And then, you know, after employees, it's customers and partners, I feel like the tech is in really good hands. I don't have to worry about that. Cuz Mo it's in charge. He's got this thing. I can go to bed knowing that he's gonna keep innovating the future. Maybe in some of the companies I've worried about the tech innovation piece, but most doing a great job there. I can kind of leave that in his cap of hands, but employees, customers, partners, that's kind of what I'm focused on. None of them are for me, like a keep up at night, but there are are opportunities, right? And sometimes there's somebody you're trying to salvage to make sure or somebody you're trying to convince to join. >>But you know, customers, I love pursuing customers. I love the win. I hate to lose. So fortune 1000 global, 2000 companies, small companies, big companies, I wanna win every one of them. And it's not, it's not like, I mean, I know all these CEOs in my competitors. I texted him the day I joined and said, listen, I'll compete, honorably, whatever have you, but it's like Kobe and LeBron Kobe's passed away now. So maybe it's Steph Curry. LeBron, whoever your favorite athlete is you put your best on the court and you win. And that's how I am. That's nothing I've known no other gear than to put my best on the court and win, but do it honorably. It should not be the one that you're doing it. Unethically. You're doing it personally. You're not calling people's names. You're competing honorably. And when you win the team celebrates, it's not a victory for me. It's a victory for the team. >>I always think I'm glad that you brought up the employee experience and we're almost out of time, but I always think the employee experience and the customer experience are inextricably linked. This employees have to be empowered. They have to have the data that they need to do their job so that they can deliver to the customer. You can't do one without the other. >>That's so true. I mean, I, it's my belief. And I've talked also on this show and others about servant leadership. You know, one of my favorite poems is Brenda Naor. I went to bed in life. I dreamt that life was joy. I woke up and realized life was service. I acted in service was joy. So when you have a leadership model, which is it's about, I mean, there's lots of layers between me and the individual contributor, but I really care about that sales rep and the engineer. That's the leaf level of the organization. What can I get obstacle outta their way? I love skipping levels of going right. That sales rep let's go and crack this deal. You know? So you have that mindset. Yeah. I mean, you, you empower, you invert the pyramid and you realize the power is at the leaf level of an organization. >>So that's what I'm trying to do. It's a little easier to do it with 2000 people than I dunno, either 20, 20, 2000 people or 35,000 reported me at VMware. And I mean a similar number at SAP, which was even bigger, but you can shape this. Now we are, we're not a startup anymore. We're a midsize company. We'll see. Maybe along the way, there's an IP on the path. We'll wait for that. When it comes, it's a milestone. It's not the destination. So we do that and we are, we, I told people we are gonna build this green company. Cohesive is gonna be a great company like VMware one day, like Amazon. And there's always a day of early beginnings, but we have to work harder. This is kind of like the, you know, eight year old version of your kid, as opposed to the 18 year old version of the kid. And you gotta work a little harder. So I love it. Yeah. >>Good luck. Awesome. Thank you. Best of luck. Congratulations. On the role, it sounds like there's a tremendous amount of adrenaline, a momentum carrying you forward Sanjay. We always appreciate having you. Thank >>You for having in your show. >>Thank you. Our pleasure, Lisa. Thank you for Sanja poin and Dave ante. I'm Lisa Martin. You're watching the cube live from VMware Explorer, 2022, stick around our next guest. Join us momentarily.

>>Good afternoon, everyone. And welcome back to the Cube's day two coverage of VMware Explorer, 2022 live from San Francisco. Lisa Martin, here with Dave. Valante good to be sitting next to you, sir. >>Yeah, the big >>Set and we're very excited to be welcoming back. One of our esteemed alumni Sanja poin joins us, the CEO and president of cohesive. Nice to see >>You. Thank you, Lisa. Thank you, Dave. It's great to meet with you all the time and the new sort of setting here, but >>First time we've been in west, is that right? We've been in north. We've been in south. We've been in Las Vegas, right. But west >>Nice. Well, I mean, it's also good to be back with live shows with absolutely, you know, after sort of the two or three or high. And it was a hard time for the whole world, but I'm kind of driving a little bit of adrenaline just being here with people. So >>You've also got some adrenaline, sorry, Dave. Yeah, you're good because you are new in the role at cohesive. You wrote a great blog that you are identified. The four reasons I came to cohesive. Tell the audience, just give 'em a little bit of a teaser about that. >>Yeah, I think you should all read it. You can Google and, and Google find that article. I talked about the people Mohi is a fantastic founder. You know, he was the, you know, the architect of the Google file system. And you know, one of the senior Google executives who was on my board, bill Corrin said one of the smartest engineers. He was the true father of hyperconverge infrastructure. A lot of the code of Nutanix. He wrote, I consider him really the father of that technology, which brought computer storage. And when he took that same idea of bringing compute to secondary storage, which is really what made the scale out architect unique. And we were at your super cloud event talking about that, Dave. Yeah. Right. So it's a people I really got to respect his smarts, his integrity and the genius, what he is done. >>I think the customer base, I called a couple of customers. One of them, a fortune 100 customer. I, I can't tell you who it was, but a very important customer. I've known him. He said, I haven't seen tech like this since VMware, 20 years ago, Amazon 10 years ago. And now COER so that's special league. We're winning very much in the enterprise and that type of segment, the partners, you know, we have HPE, Cisco as investors, Amazon's an investors. So, you know, and then finally the opportunity, I think this whole area of data management and data security now with threats, like ransomware big opportunity. >>Sure. Okay. So when you were number two at VMware, you would come on and say, we'd love all our partners and of course, okay. So you know, a little bit about how to work with, with VMware. So, so when you now think about the partnership between cohesive and VMware, what are the things that you're gonna stress to your constituents on the VMware side to convince them that Hey, partnering with cohesive is gonna gonna drive more value for customers, you know, put your thumb on the scale a little bit. You know, you gotta, you gotta unfair advantage somewhat, but you should use it. So what's the narrative gonna be like? >>Yeah. I think listen with VMware and Amazon, that probably their top two partners, Dave, you know, like one of the first calls I made was to Raghu and he knew about this decision before. That's the level of trust I have in him. I even called Michael Dell, you know, before I made the decision, there's a little bit of an overlap with Dell, but it's really small compared to the overlap, the potential with Dell hardware that we could compliment. And then I called four CEOs. I was, as I was making this decision, Andy Jassy at Amazon, he was formerly AWS CEO sat Nadela at Microsoft Thomas cor at Google and Arvin Christian at IBM to say, I'm thinking about this making decision. They are many of the mentors and friends to me. So I believe in an ecosystem. And you know, even Chuck Robbins, who the CEO of Cisco is an investor, I texted him and said, Hey, finally, we can be friends. >>It was harder to us to be friends with Cisco, given the overlap of NEX. So I have a big tent towards everybody in our ecosystem with VMware. I think the simple answer is there's no overlap okay. With, with the kind of the primary storage capabilities with VSAN. And by the same thing with Nutanix, we will be friends and, and extend that to be the best data protection solution. But given also what we could do with security, I think this is gonna go a lot further. And then it's all about meet in the field. We have common partners. I think, you know, sort of the narrative I talked about in that blog is just like snowflake was replacing Terada and ServiceNow replace remedy and CrowdStrike, replacing Symantec, we're replacing legacy vendors. We are viewed as the modern solution cloud optimized for private and public cloud. We can help you and make VMware and VSAN and VCF very relevant to that part of the data management and data security continuum, which I think could enhance VMware. And by the way, the same thing into the public cloud. So most of the places where we're being successful is clearly withs, but increasingly there's this discussion also about playing into the cloud. So I think both with VMware and Amazon, and of course the other partners in the hyperscaler service, storage, networking place and security, we have some big plans. >>How, how much do you see this? How do you see this multi-cloud narrative that we're hearing here from, from VMware evolving? How much of an opportunity is it? How are customers, you know, we heard about cloud chaos yesterday at the keynote, are customers, do they, do they admit that there's cloud chaos? Some probably do some probably don't how much of an opportunity is that for cohesive, >>It's tremendous opportunity. And I think that's why you need a Switzerland type player in this space to be successful. And you know, and you can't explicitly rule out the fact that the big guys get into this space, but I think it's, if you're gonna back up office 365 or what they call now, Microsoft 365 into AWS or Google workspace into Azure or Salesforce into one of those clouds, you need a Switzerland player it's gonna be out. And in many cases, if you're gonna back up data or you protect that data into AWS banks need a second copy of that either on premise or Azure. So it's very hard, even if they have their own native data protection for them to be dual cloud. So I think a multi-cloud story and the fact that there's at least three big vendors of cloud in, in the us, you know, one in China, if include Alibaba creates a Switzerland opportunity for us, that could be fairly big. >>And I think, you know, what we have to do is make sure while we'll be optimized, our preferred cloud is AWS. Our control plane runs there. We can't take an all in AWS stack with the control plane and the data planes at AWS to Walmart. So what I've explained to both Microsoft and AWS is that data plane will need to be multicloud. So I can go to an a Walmart and say, I can back up your data into Azure if you choose to, but the control, plane's still gonna be an AWS, same thing with Google. Maybe they have another account. That's very Google centric. So that's how we're gonna play the, the control plane will be in AWS. We'll optimize it there, but the data plane will be multi-cloud. >>Yeah. And that's what Mo had explained at Supercloud. You know, and I talked to, he really helped me hone in on the deployment models. Yes. Where, where, where the cohesive deployment model is instantiating that technology stack into each cloud region and each cloud, which gives you latency advantages and other advantages >>And single code based same platform, >>And then bringing it, tying it together with a unified, you know, interface. That was he, he was, he was key. In fact, I, I wrote about it recently and, and gave him and the other 20, >>Quite a bit in that session. Yeah. So he went deep with you. I >>Mean, with Mohi, when you get a guy who developed a Google file system, you know, who can technically say, okay, this is technically correct or no, Dave, your way off be so I that's why I had to >>Go. I, I thought you did a great job in that interview because you probed him pretty deep and I'm glad we could do that together with him next time. Well, maybe do that together here too, but it was really helpful. He's the, he's the, he's the key reason I'm here. >>So you say data management is ripe for disrupt disruption. Talk about that. You talked about this Switzerland effect. That sounds to me like a massive differentiator for cohesive. Why is data management right. For disruption and why is cohesive the right partner to do it? >>Yeah, I think, listen, everyone in this sort of data protection backup from years ago have been saying the S Switzerland argument 18 years ago, I was a at Veras an executive there. We used the Switzerland argument, but what's changed is the cloud. And what's changed as a threat vector in security. That's, what's changed. And in that the proposition of a, a Switzerland player has just become more magnified because you didn't have a sales force or Workday service now then, but now you do, you didn't have multi-cloud. You had hardware vendors, you know, Dell, HPE sun at the time. IBM, it's now Lenovo. So that heterogeneity of, of on-premise service, storage, networking, HyperCloud, and, and the apps world has gotten more and more diverse. And I think you really need scale out architectures. Every one of the legacy players were not built with scale out architectures. >>If you take that fundamental notion of bringing compute to storage, you could almost paralyze. Imagine you could paralyze backup recovery and bring so much scale and speed that, and that's what Mo invented. So he took that idea of how he had invented and built Nutanix and applied that to secondary storage. So now everything gets faster and cheaper at scale. And that's a disruptive technology ally. What snowflake did to ator? I mean, the advantage of snowflake is when you took that same concept data, warehousing is not a new concept it's existed from since Ralph Kimble and bill Inman and the people who are fathers of data warehousing, they took that to Webscale. And in that came a disruptive force toter data, right? And snowflake. And then of course now data bricks and big query, similar things. So we're doing the same thing. We just have to showcase the customers, which we do. And when large customers see that they're replacing the legacy solutions, I have a lot of respect for legacy solutions, but at some point in time of a solution was invented in 1995 or 2000, 2005. It's right. For change. >>So you use snowflake as an example, Frank sluman doesn't like when I say playbook, cuz I says, Dave, I'm a situational. See you no playbook, but there are patterns here. And one of the things he did is to your point go after, you know, Terra data with a better data warehouse, simplify scale, et cetera. And now he's, he's a constructing a Tam expansion strategy, same way he did at ServiceNow. And I, you guys following a similar pattern. Okay. You get your foot in the door. Let's face it. I mean, a lot of this started with, you know, just straight back. Okay, great. Now it's extending into data management now extending to multi-cloud that's like concentric circles in a Tam expansion strategy. How, how do as, as a CEO, that's part of your job is Tam expansion. >>So yeah, I think the way to think about the Tam is, I mean, people say it's 20, 30 billion, but let me tell you how you can piece it apart in size, Dave and Lisa number one, I estimate there's probably about 10 to 20 exabytes of data managed by these legacy players of on-prem stores that they back up to. Okay. So you add them all up in the market shares that they respectively are. And by the way, at the peak, the biggest of these companies got to 2 billion and then shrunk. That was Verto when I was there in 2004, 2 billion, every one of them is small and they stopped growing. You look at the IDC charts. Many of them are shrinking. We are the fastest growing in the last two years, but I estimate there's about 20 exabytes of data that collectively among the legacy players, that's either gonna stay on prem or move to the cloud. Okay. So the opportunity as they replace one of those legacy tools with us is first off to manage that 20 X bike cheaper, faster with the Webscale, a glass or for the cloud guys, we could tip that into the cloud. Okay. >>But you can't stop there. >>Okay. No, we are not doing just back recovery. Right. We have a platform that can do files. We can do test dev analytics and now security. Okay. That data is potentially at a risk, not so much in the past, but for ransomware, right? How do we classify that? How do we govern that data? How do we run potential? You know, the same way you did antivirus some kind of XDR algorithms on the data to potentially not just catch the recovery process, which is after fact, but maybe the predictive act of before to know, Hey, there's somebody loitering around this data. So if I'm basically managing in the exabytes of data and I can proactively tell you what, this is, one CIO described this very simply to me a few weeks ago that I, and she said, I have 3000 applications, okay. I wanna be prepared for a black Swan event, except it's not a nine 11 planes hitting the, the buildings. >>It is an extortion event. And I want to know when that happens, which of my 3000 apps I recover within one hour within one day within one week, no lay than one month. Okay. And I don't wanna pay the bad guys of penny. That's what we do. So that's security discussions. We didn't have that discussion in 2004 when I was at another company, because we were talking about flood floods and earthquakes as a disaster recovery. Now you have a lot more security opportunity to be able to describe that. And that's a boardroom discussion. She needs to have that >>Digital risk. O O okay, go ahead please. I >>Was just gonna say, ransomware attack happens every what? One, every 11, 9, 11 seconds. >>And the dollar amount are going up, you know, dollar of what? >>Yep. And, and when you pay the ransom, you don't always get your data back. So you that's >>Not. And listen, there's always an ethical component. Should you do it or not do it? If you, if you don't do it and you're threatened, they may have left an Easter egg there. Listen, I, I feel very fortunate that I've been doing a lot in security, right? I mean, I built the business at, at, at VMware. We got it to over a billion I'm on the board of sneak. I've been doing security and then at SAP ran. So I know a lot about security. So what we do in security and the ecosystem that supports us in security, we will have a very carefully crafted stay tuned. Next three weeks months, you'll see us really rolling out a very kind of disciplined aspect, but we're not gonna pivot this company and become a cyber security company. Some others in our space have done that. I think that's not who we are. We are a data management and a data security company. We're not just a pure security company. We're doing both. And we do it well, intelligently, thoughtfully security is gonna be built into our platform, not bolted on, okay. And there'll be certain security things that we do organically. There's gonna be a lot that we do through partnerships, >>This security market that's coming to you. You don't have to go claim that you're now a security vendor, right? The market very naturally saying, wow, a comprehensive security strategy has to incorporate a data protection strategy and a recovery, you know, and the things we've talking about, Mount ransomware, I want to ask you, you know, I've been around a long time, longer than you actually Sanjay. So, but you you've, you've seen a lot. You look incredibly, >>Thank you. That's all good. Oh, >>Shocks. So the market, I've never seen a market like this, right? I okay. After the.com crash, we said, and I know you can't talk about IPO. That's not what I'm talking about, but everything was bad after that. Right. 2008, 2000, everything was bad. I've never seen a market. That's half full, half empty, you know, snowflake beats and raises the stock, goes through the roof. Dev if it, the area announced today, Mongo, DB, beat and Ray, that things getting crushed. And, and after market never seen anything like this. It's so fed, driven and, and hard to protect. And, and of course, I know it's a marathon, you know, it's not a sprint, but have you ever seen anything like this? >>Listen, I walk worked through 18 quarters as COO of VMware. You seen, I've seen public quarters there and you know, was very fortunate. Thanks to the team. I don't think I missed my numbers in 18 quarters except maybe once close. But we, it was, it's tough. Being a public company. Officer of the company is tough. I did that also at SAP. So the journey from 10 to 20 billion at SAP, the journey from six to 12 at VMware, that I was able to be fortunate. It's humbling because you, you really, you know, we used to have this, we do the earnings call and then we kind of ask ourselves, what, what do you think the stock price was gonna be a day and a half later? And we'd all take bets as to wear this. I think you just basically, as a, as a sea level executive, you try to build a culture of beaten, raise, beaten, raise, beaten, raise, and you wanna set expectations in a way that you're not setting them up for failure. >>And you know, it's you, there's, Dave's a wonderful CEO as is Frank movement. So it's hard for me to dissect. And sometimes the market are fickle on some small piece of it. But I think also the, when I, I encourage people say, take the long term view. When you take the long term view, you're not bothered about the ups and downs. If you're building a great company over the length of time, now it will be very clear over the arc of many, many quarters that you're business is trouble. If you're starting to see a decay in growth. And like, for example, when you start to see a growth, start to decay significantly by five, 10 percentage points, okay, there's something macro going on at this company. And that's what you won't avoid. But these, you know, ups and downs, my view is like, if you've got both Mongo, DIA and snowflake are fantastic companies, they're CEOs of people I respect. They've actually a kind of an, a, you know, advisor to us as a company, you knows mot very well. So we respect him, respect Frank, and you, there have been other quarters where Frank's, you know, the snowflakes had a down result after that. So you build a long term and they are on the right side of history, snowflake, and both of them in terms of being a modern cloud relevant in the case of MongoDB open source to data technology, that's, you know, winning, I, we would like to be like them one day >>As, as the new CEO of cohesive, what are you most, what are you most anxious about? And what are you most excited about? >>I think, listen, you know, you know, everything starts with the employee. You, I always believe I wrote my first memo to all employees. There was an article in Harvard business review called service profit chains that had a seminal impact on my leadership, which is when they studied companies who had been consistently profitable over a long period of time. They found that not just did those companies serve their customers well, but behind happy engaged customers were happy, engaged employees. So I always believe you start with the employee and you ensure that they're engaged, not just recruiting new employees. You know, I put on a tweet today, we're hiring reps and engineers. That's okay. But retaining. So I wanna start with ensuring that everybody, sometimes we have to make some unfortunate decisions with employees. We've, we've got a part company with, but if we can keep the best and brightest retained first, then of course, you know, recruiting machine, I'm trying to recruit the best and brightest to this company, people all over the place. >>I want to get them here. It's been, so I mean, heartwarming to come to world and just see people from all walks, kind of giving me hugs. I feel incredibly blessed. And then, you know, after employees, it's customers and partners, I feel like the tech is in really good hands. I don't have to worry about that. Cuz Mo it's in charge. He's got this thing. I can go to bed knowing that he's gonna keep innovating the future. Maybe in some of the companies, I would worried about the tech innovation piece, but most doing a great job there. I can kind of leave that in his cap of hands, but employees, customers, partners, that's kind of what I'm focused on. None of them are for me, like a keep up at night, but they're are opportunities, right? And sometimes there's somebody you're trying to salvage to make sure or somebody you're trying to convince to join. >>But you know, customers, I love pursuing customers. I love the win. I hate to lose. So fortune 1000 global, 2000 companies, small companies, big companies, I wanna win every one of 'em and it's not, it's not like, I mean, I know all these CEOs in my competitors. I texted him the day I joined and said, listen, I'll compete, honorably, whatever have you, but it's like Kobe and LeBron Kobe's passed away now. So maybe it's step Curry. LeBron, whoever your favorite athlete is you put your best on the court and you win. And that's how I am. That's nothing I've known no other gear than to put my best on the court and win, but do it honorably. It should not be the one that you're doing it. Unethically. You're doing it personally. You're not calling people's names. You're competing honorably. And when you win the team celebrates, it's not a victory for me, it's a victory for the team. >>I always think I'm glad that you brought out the employee experience and we're almost out of time, but I always think the employee experience and the customer experience are inextricably linked. This employees have to be empowered. They have to have the data that they need to do their job so that they can deliver to the customer. You can't do one without the other. >>That's so true. I mean, I, it's my belief. And I've talked also on this show and others about servant leadership. You know, one of my favorite poems is Brenda NA Tago. I went to bed in life. I dreamt that life was joy. I woke up and realized life was service. I acted in service was joy. So when you have a leadership model, which is it's about, I mean, there's lots of layers between me and the individual contributor, but I really care about that sales rep and the engineer. That's the leaf level of the organization. What can I get obstacle outta their way? I love skipping levels and going write that sales rep let's go and crack this deal. You know? So you have that mindset. Yeah. I mean, you, you empower, you invert the pyramid and you realize the power is at the leaf level of an organization. >>So that's what I'm trying to do. It's a little easier to do it with 2000 people than I dunno, either 20, 20, 2000 people or 35,000 reported me at VMware. And I mean a similar number at SAP, which was even bigger, but you can shape this. Now we are, we're not a startup anymore. We're a mid-size company. We'll see. Maybe along the way, there's an IP on the path. We'll wait for that. When it comes, it's a milestone. It's not the destination. So we do that and we are, we, I told people we are gonna build this green company. Cohesive is gonna be a great company like VMware one day, like Amazon. And there's always a day of early beginnings, but we have to work harder. This is kind of like the, you know, eight year old version of your kid, as opposed to the 18 year old version of the kid. And you gotta work a little harder. So I love it. Yeah. >>Good luck. Awesome. Thank you too. Best of luck. Congratulations on the role, it sounds like there's a tremendous amount of adrenaline, a momentum carrying you forward Sanja. We always appreciate having thank >>You for having in your show. >>Thank you. Our pleasure, Lisa. Thank you for Sanjay poin and Dave ante. I'm Lisa Martin. You're watching the cube live from VMware Explorer, 2022, stick around our next guest. Join us momentarily.

>>Hello. Welcome back to our super cloud 22 event. I'm John F host the cue with my co-host Dave ante. Extracting the signal from noise. We're proud to have two amazing cube alumnis here. We got Sanja Putin. Who's now the CEO of cohesive the emo Aaron who's the CTO. Co-founder also former CEO Cub alumni. The father of hyper-converged welcome back to the cube I endorsed the >>Cloud. Absolutely. Is the father. Great >>To see you guys. Thank thanks for coming on and perfect timing. The new job taking over that. The helm Mo it at cohesive big news, but part of super cloud, we wanna dig into it. Thanks for coming on. >>Thank you for having >>Us here. So first of all, we'll get into super before we get into the Supercloud. I want to just get the thoughts on the move Sanjay. We've been following your career since 2010. You've been a cube alumni from that point, we followed that your career. Why cohesive? Why now? >>Yeah, John David, thank you first and all for having us here, and it's great to be at your event. You know, when I left VMware last year, I took some time off just really primarily. I hadn't had a sabbatical in probably 18 years. I joined two boards, Phillips and sneak, and then, you know, started just invest and help entrepreneurs. Most of them were, you know, Indian Americans like me who were had great tech, were looking for the kind of go to market connections. And it was just a wonderful year to just de to unwind a bit. And along the, the way came CEO calls. And I'd asked myself, the question is the tech the best in the industry? Could you see value creation that was signi significant and you know, three, four months ago, Mohit and Carl Eschenbach and a few of the board members of cohesive called me and walk me through Mo's decision, which he'll talk about in a second. And we spent the last few months getting to know him, and he's everything you describe. He's not just the father of hyperconverge. And he wrote the Google file system, wicked smart, built a tech platform better than that second time. But we had to really kind of walk through the chemistry between us, which we did in long walks in, in, you know, discrete places so that people wouldn't find us in a Starbucks and start gossiping. So >>Why Sanjay? There you go. >>Actually, I should say it's a combination of two different decisions. The first one was to, for me to take a different role and I run the company as a CEO for, for nine years. And, you know, as a, as a technologist, I always like, you know, going deep into technology at the same time, the CEO duties require a lot of breadth, right? You're talking to customers, you're talking to partners, you're doing so much. And with the way we've been growing the with, you know, we've been fortunate, it was becoming hard to balance both. It's really also not fair to the company. Yeah. So I opted to do the depth job, you know, be the visionary, be the technologist. And that was the first decision to bring a CEO, a great CEO from outside. >>And I saw your video on the site. You said it was your decision. Yes. Go ahead. I have to ask you, cuz this is a real big transition for founders and you know, I have founder artists cuz everyone, you know, calls me that. But being the founder of a company, it's always hard to let go. I mean nine years as CEO, it's not like you had a, you had a great run. So this was it timing for you? Was it, was it a structural shift, like at super cloud, we're talking about a major shift that's happening right now in the industry. Was it a balance issue? Was it more if you wanted to get back in and in the tech >>Look, I, I also wanna answer, you know, why Sanja, but, but I'll address your question first. I always put the company first what's right for the company. Is it for me to start get stuck the co seat and try to juggle this depth and Brad simultaneously. I mean, I can stroke my ego a little bit there, but it's not good for the company. What's best for the company. You know, I'm a technologist. How about I oversee the technology part in partnership with so many great people I have in the company and I bring someone kick ass to be the CEO. And so then that was the second decision. Why Sanja when Sanjay, you know, is a very well known figure. He's managed billions of dollars of business in VMware. You know, been there, done that has, you know, some of the biggest, you know, people in the industry on his speed dial, you know, we were really fortunate to have someone like that, come in and accept the role of the CEO of cohesive. I think we can take the company to new Heights and I'm looking forward to my partnership with, with Sanja on this. >>It it's we, we called it the splash brothers and >>The, >>In the vernacular. It doesn't matter who gets the ball, whether it's step clay, we shoot. And I think if you look at some of the great partnerships, whether it was gates bomber, there, plenty of history of this, where a founder and a someone who was, it has to be complimentary skills. If I was a technologist myself and wanted to code we'd clash. Yeah. But I think this was really a match me in heaven because he, he can, I want him to keep innovating and building the best platform for today in the future. And our customers tell one customer told me, this is the best tech they've seen since VMware, 20 years ago, AWS, 10 years ago. And most recently this was a global 100 big customers. So I feel like this combination, now we have to show that it works. It's, you know, it's been three, four months. My getting to know him, you know, I'm day eight on the job, but I'm loving it. >>Well, it's a sluman model too. It's more modern example. You saw, he did it with Fred Ludy at service now. Yes. And, and of course at, at snowflake, yeah. And his book, you read his book. I dunno if you've read his book, amp it up, but app it up. And he says, I always you'll love this. Give great deference to the founder. Always show great respect. Right. And for good reason. So >>In fact, I mean you could talk to him, you actually met to >>Frank. I actually, you know, a month or so back, I actually had dinner with him in his ranch in Moana. And I posed the question. There was a number of CEOs that went there and I posed him the question. So Frank, you know, many of us, we grow being deaf guys, you know? And eventually when we take on the home of our CEO, we have to do breadth. How do you do it? And he's like, well, let me tell you, I was never a death guy. I'm a breath guy. >>I'm like, >>That's my answer. Yeah. >>So, so I >>Want the short story. So the day I got the job, I, I got a text from Frank and I said, what's your advice the first time CEO, three words, amp it up, >>Amp it up. Right? Yeah. >>And so you're always on brand, man. >>So you're an amazing operator. You've proven that time and time again at SAP, VMware, et cetera, you feel like now you, you, you wanna do both of those skills. You got the board and you got the operations cuz you look, you know, look at sloop when he's got Scarelli wherever he goes, he brings Scarelli with him as sort of the operator. How, how do you, how are you thinking >>About that? I mean it's early days, but yeah. Yeah. Small. I mean I've, you know, when I was, you know, it was 35,000 people at VMware, 80, 90,000 people at SAP, a really good run. The SAP run was 10 to 20 billion innovative products, especially in analytics and VMware six to 12 end user computing cloud. So I learned a lot. I think the company, you know, being about 2000 employees plus not to mayor tomorrow, but over the course next year I can meet everybody. Right? So first off the executive team, 10 of us, we're, we're building more and more cohesiveness if I could use that word between us, which is great, the next, you know, layers of VPs and every manager, I think that's possible. So I I'm a people person and a customer person. So I think when you take that sort of extroverted mindset, we'll bring energy to the workforce to, to retain the best and then recruit the best. >>And you know, even just the week we, we were announced that this announcement happened. Our website traffic went through the roof, the highest it's ever been, lots of resumes coming in. So, and then lots of customer engagement. So I think we'll take this, but I, I feel very good about the possibilities, because see, for me, I didn't wanna walk into the company to a company where the technology risk was high. Okay. I feel like that I can go to bed at night and the technology risk is low. This guy's gonna run a machine at the current and the future. And I'm hearing that from customers. Now, what I gotta do is get the, the amp it up part on the go to market. I know a little thing or too about >>That. You've got that down. I think the partnership is really key here. And again, nine use the CEO and then Sanja points to our super cloud trend that we've been looking at, which is there's another wave happening. There's a structural change in real time happening now, cloud one was done. We saw that transition, AWS cloud native now cloud native with an kind of operating system kind of vibe going on with on-premise hybrid edge. People say multi-cloud, but we're looking at this as an opportunity for companies like cohesive to go to the next level. So I gotta ask you guys, what do you see as structural change right now in the industry? That's disruptive. People are using cloud and scale and data to refactor their business models, change modern cases with cloud native. How are you guys looking at this next structural change that's happening right now? Yeah, >>I'll take that. So, so I'll start by saying that. Number one, data is the new oil and number two data is exploding, right? Every year data just grows like crazy managing data is becoming harder and harder. You mentioned some of those, right? There's so many cloud options available. Cloud one different vendors have different clouds. There is still on-prem there's edge infrastructure. And the number one problem that happens is our data is getting fragmented all over the place and managing so many fragments of data is getting harder and harder even within a cloud or within on-prem or within edge data is fragmented. Right? Number two, I think the hackers out there have realized that, you know, to make money, it's no longer necessary to Rob banks. They can actually see steal the data. So ransomware attacks on the rise it's become a boardroom level discussion. They say there's a ransomware attack happening every 11 seconds or so. Right? So protecting your data has become very important security data. Security has become very important. Compliance is important, right? So people are looking for data management solutions, the next gen data management platform that can really provide all this stuff. And that's what cohesive is about. >>What's the difference between data management and backup. Explain that >>Backup is just an entry point. That's one use case. I wanna draw an analogy. Let's draw an analogy to my former company, Google right? Google started by doing Google search, but is Google really just a search engine. They've built a platform that can do multiple things. You know, they might have started with search, but then they went down to roll out Google maps and Gmail and YouTube and so many other things on that platform. So similarly backups might be just the first use case, but it's really about that platform on which you can do more with the data that's next gen data management. >>But, but you am, I correct. You don't consider yourself a security company. One of your competitors is actually pivoting and in positioning themselves as a security company, I've always felt like data management, backup and recovery data protection is an adjacency to security, but those two worlds are coming together. How do you see >>It? Yeah. The way I see it is that security is part of data management. You start maybe by backing with data, but then you secure it and then you do more with that data. If you're only doing security, then you're just securing the data. You, you gotta do more with the data. So data management is much bigger. So >>It's a security is a subset of data. I mean, there you go. Big TA Sanjay. >>Well, I mean I've, and I, I, I I'd agree. And I actually, we don't get into that debate. You know, I've told the company, listen, we'll figure that out. Cuz who cares about the positioning at the bottom? My email, I say we are data management and data security company. Okay. Now what's the best word that describes three nouns, which I think we're gonna do management security and analytics. Okay. He showed me a beautiful diagram, went to his home in the course of one of these, you know, discrete conversations. And this was, I mean, he's done this before. Many, if you watch on YouTube, he showed me a picture of an ice big iceberg. And he said, listen, you know, if you look at companies like snowflake and data bricks, they're doing the management security and mostly analytics of data. That's the top of the iceberg, the stuff you see. >>But a lot of the stuff that's get backed archive is the bottom of the iceberg that you don't see. And you try to, if you try to ask a question on age data, the it guy will say, get a ticket. I'll come back with three days. I'll UNIV the data rehydrate and then you'll put it into a database. And you can think now imagine that you could do live searches analytics on, on age data that's analytics. So I think the management, the security, the analytics of, you know, if you wanna call it secondary data or backed up data or data, that's not hot and live warm, colder is a huge opportunity. Now, what do you wanna call one phrase that describes all of it. Do you call that superpower management security? Okay, whatever you wanna call it. I view it as saying, listen, let's build a platform. >>Some people call Google, a search company. People, some people call Google and information company and we just have to go and pursue every CIO and every CSO that has a management and a security and do course analytics problem. And that's what we're doing. And when I talk to the, you know, I didn't talk to all the 3000 customers, but the biggest customers and I was doing diligence. They're like this thing has got enormous potential. Okay. And we just have to now go focus, get every fortune 1000 company to pick us because this problem, even the first use case you talk back up is a little bit like, you know, razor blades and soap you've needed. You needed it 30 years ago and you'll need it for 30 years. It's just that the tools that were built in the last generation that were companies formed in 1990s, one of them I worked for years ago are aids are not built for the cloud. So I think this is a tremendous opportunity where many of those, those, those nos management security analytics will become part of what we do. And we'll come up with the right phrase for what the companies and do course >>Sanjay. So ma and Sanja. So given that given that's this Google transition, I like that example search was a data problem. They got sequenced to a broader market opportunity. What super cloud we trying to tease out is what does that change over from a data standpoint, cuz now the operating environments change has become more complex and the enterprises are savvy. Developers are savvy. Now they want, they want SAS solutions. They want freemium and expanding. They're gonna drive the operations agenda with DevOps. So what is the complexity that needs to be abstracted away? How do you see that moment? Because this is what people are talking about. They're saying security's built in, driven by developers. Developers are driving operations behavior. So what is the shift? Where do you guys see this new? Yeah. Expansive for cohesive. How do you fit into super cloud? >>So let me build up from that entry point. Maybe back up to what you're saying is the super cloud, right? Let me draw that journey. So let's say the legacy players are just doing backups. How, how sad is it that you have one silo sitting there just for peace of mind as an insurance policy and you do nothing with the data. If you have to do something with the data, you have to build another silo, you have to build another copy. You have to manage it separately. Right. So clearly that's a little bit brain damaged. Right. So, okay. So now you take a little bit of, you know, newer vendors who may take that backup platform and do a little bit more with that. Maybe they provide security, but your problem still remains. How do you do more with the data? How do you do some analytics? >>Like he's saying, right. How do you test development on that? How do you migrate the data to the cloud? How do you manage it? The data at scale? How do you do you provide a unified experience across, across multiple cloud, which you're calling the super cloud. That's where cohesive goes. So what we do, we provide a platform, right? We have tentacles in on-prem in each of the clouds. And on top of that, it looks like one platform that you manage. We have a single control plane, a UI. If you may, a single pin of glass, if, if you may, that our customers can use to manage all of it. And now it looks, starts looking like one platform. You mentioned Google, do you, when you go to, you know, kind Google search or a URL, do you really care? What happens behind the scenes mean behind the scenes? Google's built a platform that spans the whole world. No, >>But it's interesting. What's behind the scenes. It's a beautiful now. And I would say, listen, one other thing to pull on Dave, on the security part, I saw a lot of vendors this day in this space, white washing a security message on top of backup. Okay. And CSO, see through that, they'll offer warranties and guarantees or whatever, have you of X million dollars with a lot of caveats, which will never paid because it's like escape clause here. We won't pay it. Yeah. And, and what people really want is a scalable solution that works. And you know, we can match every warranty that's easy. And what I heard was this was the most scalable solution at scale. And that's why you have to approach this with a Google type mindset. I love the fact that every time you listen to sun pitch, I would, what, what I like about him, the most common word to use is scale. >>We do things at scale. So I found that him and AUR and some of the early Google people who come into the company had thought about scale. And, and even me it's like day eight. I found even the non-tech pieces of it. The processes that, you know, these guys are built for simple things in some cases were better than some of the things I saw are bigger companies I'd been used to. So we just have to continue, you know, building a scale platform with the enterprise. And then our cloud product is gonna be the simple solution for the masses. And my view of the world is there's 5,000 big companies and 5 million small companies we'll push the 5 million small companies as the cloud. Okay. Amazon's an investor in the company. AWS is a big partner. We'll talk about I'm sure knowing John's interest in that area, but that's a cloud play and that's gonna go to the cloud really fast. You not build you're in the marketplace, you're in the marketplace. I mean, maybe talk about the history of the Amazon relationship investing and all that. >>Yeah, absolutely. So in two years back late 2020, we, you know, in collaboration with AWS who also by the way is an investor now. And in cohesive, we rolled out what we call data management as a service. It's our SaaS service where we run our software in the cloud. And literally all customers have to do is just go there and sign on, right? They don't have to manage any infrastructure and stuff. What's nice is they can then combine that with, you know, software that they might have bought from cohesive. And it still looks like one platform. So what I'm trying to say is that they get a choice of the, of the way they wanna consume our software. They can consume it as a SAS service in the cloud. They can buy our software, manage it themselves, offload it to a partner on premises or what have you. But it still looks like that one platform, what you're calling a Supercloud >>Yeah. And developers are saying, they want the bag of Legos to compose their solutions. That's the Nirvana they want to get there. So that's, it has to look the same. >>Well, what is it? What we're calling a Superlo can we, can we test that for a second? So data management and service could span AWS and on-prem with the identical experience. So I guess I would call that a Supercloud I presume it's not gonna through AWS span multiple clouds, but, but >>Why not? >>Well, well interesting cuz we had this, I mean, so, okay. So we could in the future, it doesn't today. Well, >>David enough kind of pause for a second. Everything that we do there, if we do it will be customer driven. So there might be some customers I'll give you one Walmart that may want to store the data in a non AWS cloud risk cuz they're competitors. Right. So, but the control plane could still be in, in, in the way we built it, but the data might be stored somewhere else. >>What about, what about a on-prem customer? Who says, Hey, I, I like cohesive. I've now got multiple clouds. I want the identical experience across clouds. Yeah. Okay. So, so can you do that today? How do you do that today? Can we talk >>About that? Yeah. So basically think roughly about the split between the data plane and the control plane, the data plane is, you know, our cohesive clusters that could be sitting on premises that could be sitting in multiple data centers or you can run an instance of that cluster in the cloud, whichever cloud you choose. Right. That's what he was referring to as the data plane. So collectively all these clusters from the data plane, right? They stored the data, but it can all be managed using the control plane. So you still get that single image, the single experience across all clouds. And by the way, the, the, the, the cloud vendor does actually benefit because here's a customer. He mentioned a customer that may not wanna go to AWS, but when they get the data plane on a different cloud, whether it's Azure, whether it's the Google cloud, they then get data management services. Maybe they're able to replicate the data over to AWS. So AWS also gains. >>And your deployment model is you instantiate the cohesive stack on each of the regions and clouds, is that correct? And you building essentially, >>It all happens behind the scenes. That's right. You know, just like Google probably has their tentacles all over the world. We will instantiate and then make it all look like one platform. >>I mean, you should really think it's like a human body, right? The control planes, the head. Okay. And that controls everything. The data plane is large because it's a lot of the data, right? It's the rest of the body, that data plane could be wherever you want it to be. Traditionally, the part the old days was tape. Then you got disk. Now you got multiple clouds. So that's the way we think about it. And there on that piece of it will be neutral, right? We should be multi-cloud to the data plane being every single place. Cause it's customer demand. Where do you want your store data? Air gapped. On-prem no problem. We'll work with Dell. Okay. You wanna be in a particular cloud, AWS we'll work then optimized with S3 and glacier. So this is where I think the, the path to a multi-cloud or Supercloud is to be customer driven, but the control plane sits in Amazon. So >>We're blessed to have a number of, you know, technical geniuses in here. So earlier we were speaking to Ben wa deja VI, and what they do is different. They don't instantiate an individual, you know, regions. What they do is of a single global. Is there a, is there an advantage of doing it the way the cohesive does it in terms of simplicity or how do you see that? Is that a future direction for you from a technology standpoint? What are the trade offs there? >>So you want to be where the data is when you said single global, I take it that they run somewhere and the data has to go there. And in this day age, correct >>Said that. He said, you gotta move that in this >>Day and >>Age query that's, you know, across regions, look >>In this day and age with the way the data is growing, the way it is, it's hard to move around the data. It's much easier to move around the competition. And in these instances, what have you, so let the data be where it is and you manage it right there. >>So that's the advantage of instantiating in multiple regions. As you don't have to move the >>Data cost, we have the philosophy we call it. Let's bring the, the computation to the data rather than the data to >>The competition and the same security model, same governance model, same. How do you, how do you federate that? >>So it's all based on policies. You know, this overarching platform controlled by, by the control plane, you just, our customers just put in the policies and then the underlying nuts and bolts just take care >>Of, you know, it's when I first heard and start, I started watching some of his old videos, ACE really like hyperconverged brought to secondary storage. In fact, he said, oh yeah, that's great. You got it. Because I first called this idea, hyperconverged secondary storage, because the idea of him inventing hyperconverge was bringing compute to storage. It had never been done. I mean, you had the kind of big VC stuff, but these guys were the first to bring that hyperconverge at, at Nutanix. So I think this is that same idea of bringing computer storage, but now applied not to the warm data, but to the rest of the data, including a >>Lot of, what about developers? What's, what's your relationship with developers? >>Maybe you talk about the marketplace and everything >>He's yeah. And I'm, I'm curious as to do you have a PAs layer, what we call super PAs layer to create an identical developer experience across your Supercloud. I'm gonna my >>Term. So we want our customers not just to benefit from the software that we write. We also want them to benefit from, you know, software that's written by developers by third party people and so on and so forth. So we also support a marketplace on the platform where you can download apps from third party developers and run them on this platform. There's a, a number of successful apps. There's one, you know, look like I said, our entry point might be backups, but even when backups, we don't do everything. Look, for instance, we don't backup mainframes. There is a, a company we partner with, you know, and their software can run in our marketplace. And it's actually used by many, many of our financial customers. So our customers don't get, just get the benefit of what we build, but they also get the benefit of what third parties build. Another analogy I like to draw. You can tell. And front of analogy is I drew an analogy to hyperscale is like Google. Yeah. The second analogy I like to draw is that to a simple smartphone, right? A smartphone starts off by being a great phone. But beyond that, it's also a GPS player. It's a, it's a, it's a music player. It's a camera, it's a flashlight. And it also has a marketplace from where you can download apps and extend the power of that platform. >>Is that a, can we think of that as a PAs layer or no? Is it really not? You can, okay. You can say, is it purpose built for what you're the problem that you're trying to solve? >>So we, we just built APIs. Yeah. Right. We have an SDK that developers can use. And through those APIs, they get to leverage the underlying services that exist on the platform. And now developers can use that to take advantage of all that stuff. >>And it was, that was a key factor for me too. Cause I, what I, you know, I've studied all the six, seven players that sort of so-called leaders. Nobody had a developer ecosystem, nobody. Right? The old folks were built for the hardware era, but anyones were built for the cloud to it didn't have any partners were building on their platform. So I felt for me listen, and that the example of, you know, model nine rights, the name of the company that does back up. So there's, there's companies that are built on and there's a number of others. So our goal is to have a big tent, David, to everybody in the ecosystem to partner with us, to build on this platform. And, and that may take over time, but that's the way we're build >>It. And you have a metadata layer too, that has the intelligence >>To correct. It's all abstract. That that's right. So it's a combination of data and metadata. We have lots of metadata that keeps track of where the data is. You know, it allows you to index the data you can do quick searches. You can actually, you, we talking about the control plan from that >>Tracing, >>You can inject a search that'll through search throughout your multi-cloud environment, right? The super cloud that you call it. We have all that, all that goodness sounds >>Like a Supercloud John. >>Yeah. I mean, data tracing involved can trace the data lineage. >>You, you can trace the data lineage. So we, you know, provide, you know, compliance and stuff. So you can, >>All right. So my final question to wrap up, we guys, first of all, thanks for coming on. I know you're super busy, San Jose. We, we know what you're gonna do. You're gonna amp it up and, you know, knock all your numbers out. Think you always do. But what I'm interested in, what you're gonna jump into, cuz now you're gonna have the creative license to jump in to the product, the platform there has to be the next level in your mind. Can you share your thoughts on where this goes next? Love the control plane, separate out from the data plane. I think that plays well for super. How >>Much time do you have John? This guy's got, he's got a wealth. Ditis keep >>Going. Mark. Give us the most important thing you're gonna focus on. That kind of brings the super cloud and vision together. >>Yeah. Right away. I'm gonna, perhaps I, I can ion into two things. The first one is I like to call it building the, the machine, the system, right. Just to draw an analogy. Look, I draw an analogy to the us traffic system. People from all walks of life, rich, poor Democrats, Republicans, you know, different states. They all work in the, the traffic system and we drive well, right. It's a system that just works. Whereas in some other countries, you know, the system doesn't work. >>We know, >>We know a few of those. >>It's not about works. It's not about the people. It's the same people who would go from here to those countries and, and not dry. Well, so it's all about the system. So the first thing I, I have my sights on is to really strengthen the system that we have in our research development to make it a machine. I mean, it functions quite well even today, but wanna take it to the next level. Right. So that I wanna get to a point where innovation just happens in the grassroots. And it just, just like >>We automations scale optic brings all, >>Just happens without anyone overseeing it. Anyone there's no single point of bottleneck. I don't have to go take any diving catches or have you, there are people just working, you know, in a decentralized fashion and innovation just happens. Yeah. The second thing I work on of course is, you know, my heart and soul is in, you know, driving the vision, you know, the next level. And that of course is part of it. So those are the two things >>We heard from all day in our super cloud event that there's a need for an, an operating system. Yeah. Whether that's defacto standard or open. Correct. Do you see a consortium around the corner potentially to bring people together so that things could work together? Cuz there really isn't no stand there. Isn't a standards bodies. Now we have great hyperscale growth. We have on-prem we got the super cloud thing happening >>And it's a, it's kind of like what is an operating system? Operating system exposes some APIs that the applications can then use. And if you think about what we've been trying to do with the marketplace, right, we've built a huge platform and that platform is exposed through APIs. That third party developers can use. Right? And even we, when we, you know, built more and more services on top, you know, we rolled our D as we rolled out, backup as a service and a ready for thing security as a service governance, as a service, they're using those APIs. So we are building a distributor, putting systems of sorts. >>Well, congratulations on a great journey. Sanja. Congratulations on taking the hem. Thank you've got ball control. Now you're gonna be calling the ball cohesive as they say, it's, >>It's a team. It's, you know, I think I like that African phrase. If you want to go fast, you go alone. If you wanna go far, you go together. So I've always operated with the best deal. I'm so fortunate. This is to me like a dream come true because I always thought I wanted to work with a technologist that frees me up to do what I like. I mean, I started as an engineer, but that's not what I am today. Right? Yeah. So I do understand the product and this category I think is right for disruption. So I feel excited, you know, it's changing growing. Yeah. No. And it's a, it requires innovation with a cloud scale mindset and you guys have been great friends through the years. >>We'll be, we'll be watching you. >>I think it's not only disruption. It's creation. Yeah. There's a lot of white space that just hasn't been created yet. >>You're gonna have to, and you know, the proof, isn't the pudding. Yeah. You already have five of the biggest 10 financial institutions in the us and our customers. 25% of the fortune 500 users, us two of the biggest five pharmaceutical companies in the world use us. Probably, you know, some of the biggest companies, you know, the cars you have, you know, out there probably are customers. So it's already happening. >>I know you got an IPO filed confidentially. I know you can't talk numbers, but I can tell by your confidence, you're feeling good right now we are >>Feeling >>Good. Yeah. One day, one week, one month at a time. I mean, you just, you know, I like the, you know, Jeff Bezos, Andy jazzy expression, which is, it's always day one, you know, just because you've had success, even, you know, if, if a and when an IPO O makes sense, you just have to stay humble and hungry because you realize, okay, we've had a lot of success in the fortune 1000, but there's a lot of white space that hasn't picked USS yet. So let's go, yeah, there's lots of midmarket account >>Product opportunities are still, >>You know, I just stay humble and hungry and if you've got the team and then, you know, I'm really gonna be working also in the ecosystem. I think there's a lot of very good partners. So lots of ideas brew through >>The head. Okay. Well, thank you so much for coming on our super cloud event and, and, and also doubling up on the news of the new appointment and congratulations on the success guys. Coverage super cloud 22, I'm sure. Dave ante, thanks for watching. Stay tuned for more segments after this break.

>>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.

>> Announcer: From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hello, welcome back to theCUBE's coverage, CUBE Virtual's coverage, CUBE digital coverage, of AWS Summit, virtual online, Amazon Summit's normally in face-to-face all around the world, it's happening now online, follow the sun. Of course, we want to bring theCUBE coverage like we do at the events digitally, and we've got a great guest that usually comes on face-to-face, he's coming on virtual, Sanjay Poonen, the chief operating officer of VMware. Sanjay great to see you, thanks for coming in virtually, you look great. >> Hey, John thank you very much. Always a pleasure to talk to you. This is the new reality. We both happen to live very close to each other, me in Los Altos, you in Palo Alto, but here we are in this new mode of communication. But the good news is I think you guys at theCUBE were pioneering a lot of digital innovation, the AI platform, so hopefully it's not much of an adjustment for you guys to move digital. >> It's not really a pivot, just move the boat, put the sails up and sail into the next generation, which brings up really the conversation that we're seeing, which is this digital challenge, the virtual world, it's virtualization, Sanjay, it sounds like VMware. Virtualization spawned so much opportunity, it created Amazon, some say, I'd say. Virtualizing our world, life is now integrated, we're immersed into each other, physical and digital, you got edge computing, you got cloud native, this is now a clear path to customers that recognize with the pandemic challenges of at-scale, that they have to operate their business, reset, reinvent, and grow coming out of this pandemic. This has been a big story that we've been talking about and a lot of smart managers looking at projects saying, I'm doubling down on that, and I'm going to move the resources from this, the people and budget, to this new reality. This is a tailwind for the folks who were prepared, the ones that have the experience, the ones that did the work. theCUBE, thanks for the props, but VMware as well. Your thoughts and reaction to this new reality, because it has to be cloud native, otherwise it doesn't work, your thoughts. >> Yeah, I think, John, you're right on. We were very fortunate as a company to invent the term virtualization for an x86 architecture and the category 20 years ago when Diane founded this great company. And I would say you're right, the public cloud is the instantiation of virtualization at its sort of scale format and we're excited about this Amazon partnership, we'll talk more about that. This new world of doing everything virtual has taken the same concepts to whole new levels. We are partnering very closely with companies like Zoom, because a good part of this is being able to deliver video experiences in there, we'll talk about that if needed. Cloud native security, we announced an acquisition today in container security that's very important because we're making big moves in security, security's become very important. I would just say, John, the first thing that was very important to us as we began to shelter in place was the health of our employees. Ironically, if I go back to, in January I was in Davos, in fact some of your other folks who were on the show earlier, Matt Garman, Andy, we were all there in January. The crisis already started in China, but it wasn't on the world scene as much of a topic of discussion. Little did we know, three, four weeks later, fast forward to February things were moving so quickly. I remember a Friday late in February where we were just about to go the next week to Las Vegas for our in-person sales kickoffs. Thousands of people, we were going to do, I think, five or 6,000 people in Las Vegas and then another 3,000 in Barcelona, and then finally in Singapore. And it had not yet been categorized a pandemic. It was still under this early form of some worriable virus. We decided for the health and safety of our employees to turn the entire event that was going to happen on Monday to something virtual, and I was so proud of the VMware team to just basically pivot just over the weekend. To change our entire event, we'd been thinking about video snippets. We have to become in this sort of virtual, digital age a little bit like TV producers like yourself, turn something that's going to be one day sitting in front of an audience to something that's a lot shorter, quicker snippets, so we began that, and the next thing we began doing over the next several weeks while the shelter in place order started, was systematically, first off, tell our employees, listen, focus on your health, but if you're healthy, turn your attention to serving your customers. And we began to see, which we'll talk about hopefully in the context of the discussion, parts of our portfolio experience a tremendous amount of interest for a COVID-centered world. Our digital workplace solutions, endpoint security, SD-WAN, and that trifecta began to be something that we began to see story after story of customers, hospitals, schools, governments, retailers, pharmacies telling us, thank you, VMware, for helping us when we needed those solutions to better enable our people on the front lines. And all VMware's role, John, was to be a digital first responder to the first responder, and that gave tremendous amount of motivation to all of our employees into it. >> Yeah, and I think that's a great point. One of the things we've been talking about, and you guys have been aligned with this, you mentioned some of those points, is that as we work at home, it points out that digital and technology is now part of lifestyle. So we used to talk about consumerization of IT, or immersion with augmented reality and virtual reality, and then talk about the edge of the network as an endpoint, we are at the edge of the network, we're at home, so this highlights some of the things that are in demand, workspaces, VPN provisioning, these new tools, that some cases we've been hearing people that no one ever thought of having a forecast of 100% VPN penetration. Okay, you did the AirWatch deal way back when you first started, these are now fruits of those labors. So I got to ask you, as managers of your customer base are out there thinking, okay, I got to double down on the right growth strategy for this post-pandemic world, the smart managers are going to look at the technologies enabled for business outcome, so I have to ask you, innovation strategies are one thing, saying it, putting it place, but now more than ever, putting them in action is the mandate that we're hearing from customers. Okay I need an innovation strategy, and I got to put it into action fast. What do you say to those customers? What is VMware doing with AWS, with cloud, to make those innovation strategies not only plausible but actionable? >> That's a great question, John. We focused our energy, before even COVID started, as we prepared for this year, going into sales kickoffs and our fiscal year, around five priorities. Number one was enabling the world to be multicloud, private cloud and public cloud, and clearly our partnership here with Amazon is the best example of that and they are our preferred cloud partner. Secondly, building modern apps with microservices and cloud native, what we call app modernization. Thirdly, which is a key part to the multicloud, is building out the entire network stack, data center networking, the firewalls, the load bouncing in SD-WAN, so I'd call that cloud network. Number four, the modernization of workplace with an additional workspace solution, Workspace ONE. And five, intrinsic security from all aspects of security, network, endpoint, and cloud. So those five priorities were what we began to think through, organize our portfolio, we call them solution pillars, and for any of your viewers who're interested, there's a five-minute version of the VMware story around those five pillars that you can watch on YouTube that I did, you just search for Sanjay Poonen and five-minute story. But then COVID hit us, and we said, okay we got to take these strategies now and make them more actionable. Exactly your question, right? So a subset of that portfolio of five began to become more actionable, because it's pointless going and talking about stuff and it's like, hey, listen, guys, I'm a house on fire, I don't care about the curtains and all the wonderful art. You got to help me through this crisis. So a subset of that portfolio became kind of what was those, think about now your laptop at home, or your endpoint at home. People wanted, on top of their Zoom call, or surrounding their Zoom call, a virtual desktop managed easily, so we began to see Workspace ONE getting a lot of interest from our customers, especially the VDI part of that portfolio. Secondly, that laptop at home needed to be secured. Traditional, old, legacy AV solutions that've worked, enter Carbon Black, so Workspace ONE plus Carbon Black, one and two. Third, that laptop at home needs network acceleration, because we're dialoguing and, John, we don't want any latency. Enter SD-WAN. So the trifecta of Workspace ONE, Carbon Black and VeloCloud, that began to see even more interest and we began to hone in our portfolio around those three. So that's an example of where you have a general strategy, but then you apply it to take action in the midst of a crisis, and then I say, listen, that trifecta, let's just go and present what we can do, we call that the business continuity or business resilience part of our portfolio. We began to start talking to customers, and saying, here's our business continuity solution, here's what we could do to help you, and we targeted hospitals, schools, governments, pharmacies, retailers, the ones who're on the front line of this and said again, that line I said earlier, we want to be a digital first responder to you, you are the real first responder. Right before this call I got off a CIO call with the CIO of a major hospital in the northeast area. What gives me great joy, John, is the fact that we are serving them. Their beds are busting at the seam, in serving patients-- >> And ransomware's a huge problem you guys-- >> We're serving them. >> And great stuff there, Sanjay, I was just on a call this morning with a bunch of folks in the security industry, thought leaders, was in DC, some generals were there, some real thought leaders, trying to figure out security policy around biosecurity, COVID-19, and this invisible disruption, and they were equating it to like the World Wars. Big inflection point, and one of the generals said, in those times of crisis you need alliances. So I got to ask you, COVID-19 is impactful, it's going to have serious impact on the critical nature of it, like you said, the house is on fire, don't worry about the curtains. Alliances matter more than ever when you need to come together. You guys have an ecosystem, Amazon's got an ecosystem, this is going to be a really important test to the alliances out there. How do you view that as you look forward? You need the alliances to be successful, to compete and win in the new world as this invisible enemy, if you will, or disruptor happens, what's your thoughts? >> Yeah, I'll answer in a second, just for your viewers, I sneezed, okay? I've been on your show dozens of time, John, but in your live show, if I sneezed, you'd hear the loud noise. The good news in digital is I can mute myself when a sneeze is about to happen, and we're able to continue the conversation, so these are some side benefits of the digital part of it. But coming to your question on alliance, super important. Ecosystems are how the world run around, united we stand, divided we fall. We have made ecosystems, I've always used this phrase internally at VMware, sort of like Isaac Newton, we see clearly because we stand on the shoulders of giants. So VMware is always able to be bigger of a company if we stand on the shoulders of bigger giants. Who were those companies 20 years ago when Diane started the company? It was the hardware economy of Intel and then HP and Dell, at the time IBM, now Lenovo, Cisco, NetApp, DMC. Today, the new hardware companies Amazon, Azure, Google, whoever have you, we were very, I think, prescient, if you would, to think about that and build a strategic partnership with Amazon three or four years ago. I've mentioned on your show before, Andy's a close friend, he was a classmate over at Harvard Business School, Pat, myself, Ragoo, really got close to Andy and Matt Garman and Mike Clayville and several members of their teams, Teresa Carlson, and began to build a partnership that I think is one of the most incredible success stories of a partnership. And Dell's kind of been a really strong partner with us on private cloud, having now Amazon with public cloud has been seminal, we do regular meetings and build deep integration of, VMware Cloud and AWS is not some announcement two or three years ago. It's deep engineering between, Bask's now in a different role, but in his previous role, that and people like Mark Lohmeyer in our team. And that deep engineering allows us to know and tell customers this simple statement, which both VMware and Amazon reps tell their customers today, if you have a workload running on vSphere, and you want to move that to Amazon, the best place, the preferred place for that is VMware Cloud and Amazon. If you try to refactor that onto a native VC 2, it's a waste of time and money. So to have the entire army of VMware and Amazon telling customers that statement is a huge step, because it tells customers, we have 70 million virtual machines running on-prem. If customers are looking to move those workloads to Amazon, the best place for that VMware Cloud and AWS, and we have some credible customer case studies. Freddie Mac was at VMworld last year. IHS Markit was at VMworld last year talking about it. Those are two examples and many more started it, so we would like to have every VMware and Amazon customer that's thinking about VMware to look at this partnership as one of the best in the industry and say very similar to what Andy I think said on stage at the time of this announcement, it doesn't have to be now a trade-off between public and private cloud, you can get the best of both worlds. That's what we're trying to do here-- >> That's a great point, I want to get your thoughts on leadership, as you look at COVID-19, one of our tracks we're going to be promoting heavily on theCUBE.net and our sites, around how to manage through this crisis. Andy Jassy was quoted on the fireside chat, which is coming up here in North America, but I saw it yesterday in New Zealand time as I time shifted over there, it's a two-sided door versus a one-sided door. That was kind of his theme is you got to be able to go both ways. And I want to get your thoughts, because you might know what you're doing in certain contexts, but if you don't know where you're going, you got to adjust your tactics and strategies to match that, and there's and old expression, if you don't know where you're going, every road will take you there, okay? And so a lot of enterprise CXOs or CEOs have to start thinking about where they want to go with their business, this is the growth strategy. Then you got to understand which roads to take. Your thoughts on this? Obviously we've been thinking it's cloud native, but if I'm a decision maker, I want to make sure I have an architecture that's going to carry me forward to the future. I need to make sure that I know where I'm going, so I know what road I'm on. Versus not knowing where I'm going, and every road looks good. So your thoughts on leadership and what people should be thinking around knowing what their destination is, and then the roads to take? >> John, I think it's the most important question in this time. Great leaders are born through crisis, whether it's Winston Churchill, Charles de Gaulle, Roosevelt, any of the leaders since then, in any country, Mahatma Gandhi in India, the country I grew up, Nelson Mandela, MLK, all of these folks were born through crisis, sometimes severe crisis, they had to go to jail, they were born through wars. I would say, listen, similar to the people you talked about, yeah, there's elements of this crisis that similar to a World War, I was talking to my 80 year old father, he's doing well. I asked him, "When was the world like this?" He said, "Second World War." I don't think this crisis is going to last six years. It might be six or 12 months, but I really don't think it'll be six years. Even the health care professionals aren't. So what do we learn through this crisis? It's a test of our leadership, and leaders are made or broken during this time. I would just give a few guides to leaders, this is something tha, Andy's a great leader, Pat, myself, we all are thinking through ways by which we can exercise this. Think of Sully Sullenberger who landed that plane on the Hudson. Did he know when he flew that airbus, US Airways airbus, that few flock of birds were going to get in his engine, and that he was going to have to land this plane in the Hudson? No, but he was making decisions quickly, and what did he exude to his co-pilot and to the rest of staff, calmness and confidence and appropriate communication. And I think it's really important as leaders, first off, that we communicate, communicate, communicate, communicate to our employees. First, our obligation is first to our employees, our family first, and then of course to our company employees, all 30,000 at VMware, and I'm sure similarly Andy does it to his, whatever, 60, 70,000 at AWS. And then you want to be able to communicate to them authentically and with clarity. People are going to be reading between the lines of everything you say, so one of the things I've sought to do with my team, all the front office functions report to me, is do half an hour Zoom video conferences, in the time zone that's convenient to them, so Japan, China, India, Europe, in their time zone, so it's 10 o'clock my time because it's convenient to Japan, and it's just 10 minutes of me speaking of what I'm seeing in the world, empathizing with them but listening to them for 20 minutes. That is communication. Authentically and with clarity, and then turn your attention to your employees, because we're going stir crazy sitting at home, I get it. And we've got to abide by the ordinances with whatever country we're in, turn your attention to your customers. I've gotten to be actually more productive during this time in having more customer conference calls, video conference calls on Zoom or whatever platform with them, and I'm looking at this now as an opportunity to engage in a new way. I have to be better prepared, like I said, these are shorter conversations, they're not as long. Good news I don't have to all over the place, that's better for my family, better for the carbon emission of the world, and also probably for my life long term. And then the third thing I would say is pick one area that you can learn and improve. For me, the last few years, two, three years, it's been security. I wanted to get the company into security, as you saw today we've announced mobile, so I helped architect the acquisition of Carbon Black, very similar to kind of the moves I've made six years ago around AirWatch, very key part to all of our focus to getting more into security, and I made it a personal goal that this year, at the start of the year, before COVID, I was going to meet 1,000 CISOs, in the Fortune 1000 Global 2000. Okay, guess what, COVID happens, and quite frankly that goal's gotten a little easier, because it's much easier for me to meet a lot more people on Zoom video conferences. I could probably do five, 10 per day, and if there's 200 working days in a day, I can easily get there, if I average about five per day, and sometimes I'm meeting them in groups of 10, 20. >> So maybe we can get you on theCUBE more often too, 'cause you have access to a video camera. >> That is my growth mindset for this year. So pick a growth mindset area. Satya Nadella puts this pretty well, "Move from being a know-it-all to a learn-it-all." And that's the mindset, great company. Andy has that same philosophy for Amazon, I think the great leaders right now who are running these cloud companies have that growth mindset. Pick an area that you can grow in this time, and you will find ways to do it. You'll be able to learn online and then be able to teach in some fashion. So I think communicate effectively, authentically, turn your attention to serving your customers, and then pick some growth area that you can learn yourself, and then we will come out of this crisis collectively, individuals and as partners, like VMware and Amazon, and then collectively as a society, I believe we'll come out stronger. >> Awesome great stuff, great insight there, Sanjay. Really appreciate you sharing that leadership. Back to the more of technical questions around leadership is cloud native. It's clear that there's going to be a line in the sand, if you will, there's going to be a right side of history, people are going to have to be on the right side of history, and I believe it's cloud native. You're starting to see this emersion. You guys have some news, you just announced today, you acquired a Kubernetes security startup, around Kubernetes, obviously Kubernetes needs security, it's one of those key new enablers, disruptive enablers out there. Cloud native is a path that is a destination opportunity for people to think about, why that acquisition? Why that company? Why is VMware making this move? >> Yeah, we felt as we talked about our plans in security, backing up to things I talked about in my last few appearances on your show at VMworld, when we announced Carbon Black, was we felt the security industry was broken because there was too many point benders, and we figured there'd be three to five control points, network, endpoint, cloud, where we could play a much more pronounced role at moving a lot of these point benders, I describe this as not having to force our customers to go to a doctor and say I've got to eat 5,000 tablets to get healthy, you make it part of your diet, you make it part of the infrastructure. So how do we do that? With network security, we're off to the races, we're doing a lot more data center networking, firewall, load bouncing, SD-WAN. Really, reality is we can eat into a lot of the point benders there that I've just been, and quite frankly what's happened to us very gratifying in the network security area, you've seen the last few months, some firewall vendors are buying SD-WAN players, kind of following our strategy. That's a tremendous validation of the fact that the network security space is being disrupted. Okay, move to endpoint security, part of the reason we acquired Carbon Black was to unify the client side, Workspace ONE and Carbon Black should come together, and we're well under way in doing that, make Carbon Black agentless on the server side with vSphere, we're well on the way to that, you'll see that very soon. By the way both those things are something that the traditional endpoint players can't do. And then bring out new forms of workload. Servers that are virtualized by VMware is just one form of work. What are other workloads? AWS, the public clouds, and containers. Container's just another workload. And we've been looking at container security for a long time. What we didn't want to do was buy another static analysis player, another platform and replatform it. We felt that we could get great technology, we have incredible grandeur on container cell. It's sort of Red Hat and us, they're the only two companies who are doing Kubernetes scales. It's not any of these endpoint players who understand containers. So Kubernetes, VMware's got an incredible brand and relevance and knowledge there. The networking part of it, service mesh, which is kind of a key component also to this. We've been working with Google and others like Istio in service mesh, we got a lot of IP there that the traditional endpoint players, Symantec, McAfee, Trend, CrowdStrike, don't know either Kubernetes or service mesh well. We add now container security into this, we really distinguish ourselves further from the traditional endpoint players with bringing together, not just the endpoint platform that can do containers, but also Kubernetes service mesh. So why is that important? As people think about their future in containers, they'll want to do this at the runtime level, not at the static level. They'll want to do it at build time And they'll want to have it integrated with some of their networking capabilities like service mesh. Who better to think about that IP and that evolution than VMware, and now we bring, I think it's 12 to 14 people we're bringing in from this acquisition. Several of them in Israel, some of them here in Palo Alto, and they will build that platform into the tech that VMware has onto the Carbon Black cloud and we will deliver that this year. It's not going to be years from now. >> Did you guys talk about the-- >> Our capability, and then we can bring the best of Carbon Black, with Tanzu, service mesh, and even future innovation, like, for example, there's a big movement going around, this thing call open policy agent OPA, which is an open source effort around policy management. You should expect us to embrace that, there could be aspects of OPA that also play into the future of this container security movement, so I think this is a really great move for Patrick and his team, I'm very excited. Patrick is the CEO of Carbon Black and the leader of that security business unit, and he came to me and said, "Listen, one of the areas "we need to move in is container security "because it's the number one request I'm hearing "from our CESOs and customers." I said, "Go ahead Patrick. "Find out who are the best player you could acquire, "but you have to triangulate that strategy "with the Tanzu team and the NSX team, "and when you have a unified strategy what we should go, "we'll go an make the right acquisition." And I'm proud of what he was able to announce today. >> And I noticed you guys on the release didn't talk about the acquisition amount. Was it not material, was it a small amount? >> No, we don't disclose small, it's a tuck-in acquisition. You should think of this as really bringing us some tech and some talent, and being able to build that into the core of the platform of Carbon Black. Carbon Black was the real big move we made. Usually what we do, you saw this with AirWatch, right, anchor on a fairly big move. We paid I think 2.1 billion for Carbon Black, and then build and build and build on top of that, partner very heavily, we didn't talk about that. If there's time we could talk about it. We announced today a security alliance with top SIEM players, in what's called a sock alliance. Who's announced in there? Splunk, IBM QRadar, Google Chronicle, Sumo Logic, and Exabeam, five of the biggest SIEM players are embracing VMware in endpoint security, saying, Carbon Black is who we want to work with. Nobody else has that type of partnership, so build, partner, and then buy. But buy is always very carefully thought through, we're not one of these companies like CA of the past that just bought every company and then it becomes a graveyard of dead acquisition. Our view is we're very disciplined about how we think about acquisition. Acquisitions for us are often the last resort, because we'd prefer to build and partner. But sometimes for time-to-market reasons, we acquire, and when we acquire, it's thoughtful, it's well-organized within VMware, and we take care of our people, 'cause we want, I mean listen, why do acquisitions fail? Because the good people leave. So we're excited about this team, the team in Israel, and the team in Palo Alto, they come from Octarine. We're going to integrate them rapidly into the platform, and this is a good evidence of VMware investing more in security, and our Q3 earnings pulled, John, I said, sorry, we said that the security business was a billion dollar business at VMware already, primarily from network, but some from endpoint. This is evidence of us putting more fuel behind that fire. It's only been six, seven months and Patrick's made his first acquisition inside Carbon Black, so you're going to see us investing more in security, it's an important priority for the company, and I expect us to be a very prominent player in these three pillars, network security, endpoint security, endpoint is both client and the workload, and cloud. Network, endpoint, cloud, they are the three areas where we think there's lots of room for innovation in security. >> Well, we'll be watching, we'll be reporting and analyzing the moves. Great playbook, by the way. Love that organic partnering and then key acquisitions which you build around, it's a great playbook, I think it's very relevant for this time. The most important question I have to ask you, Sanjay, and this is a personal question, because you're the leader of VMware, I noticed that, we all know you're into music, you've been putting music online, kind of a virtual band. You've also hired a CUBE alumni, Victoria Verango from McAfee who also puts up music, you've got some musicians, but you kind of know how to do the digital moves there, so the question is, will the music at VMworld this year be virtual? >> Oh, man. Victoria is actually an even better musician than me. I'm excited about his marketing gifts, but I'm also excited to watch him. But yeah, you've heard him sing, he's got a voice that's somewhat similar to Sting, so we, just for fun, in our Diwali, which is an Indian celebration last year, Tom Corn, myself, and a wonderful lady named Divya, who's got a beautiful voice, had sung a song, which was off the soundtrack of the Bollywood movie, "Secret Superstar," and we just for fun decided to record that in our three separate homes, and put that out on YouTube. You can listen, it's just a two or three-minute run, and it kind of went a little bit viral. And I was thinking to myself, hey, if this is one way by which we can let the VMware community know that, hey, you know what, art conquers COVID-19, you can do music even socially distant, and bring out the spirit of VMware, which is community. So we might build on that idea, Victoria and I were talking about that last night and saying, hey, maybe we do a virtual music kind of concert of maybe 10 or 15 or 20 voices in the various different countries. Record piece of a song and music and put it out there. I think these are just ways by which we're having fun in a virtual setting where people get to see a different side of VMware where, and the intent here, we're all amateurs, John, we're not like great. There are going to be mistakes in this music. If you listen to that audio, it sounds a little tinny, 'cause we're recording it off our iPhone and our iPad microphone. But we'll do the best we can, the point is just to show the human spirit and to show that we care, and at the end of the day, see, the COVID-19 virus has no prejudice on color of skin, or nationality, or ethnicity. It's affecting the whole world. We all went into the tunnel at different times, we will come out of this tunnel together and we will be a stronger human fabric when we're done with this, We shall absolutely overcome. >> Sanjay, give us a quick update to end the segment on your thoughts around VMworld. It's one of the biggest events, we look forward to it. It's the only even left standing that theCUBE's been to every year of theCUBE's existence, we're looking forward to being part of theCUBE virtual. It's been announced it's virtual. What are some of the thinking going on at the highest levels within the VMware community around how you're going to handle VMworld this year? >> Listen, when we began to think about it, we had to obviously give our customers and folks enough notice, so we didn't want to just spring that sometime this summer. So we decided to think through it carefully. I asked Robin, our CMO, to talk to many of the other CMOs in the industry. Good news is all of these are friends of ours, Amazon, Microsoft, Google, Salesforce, Adobe, and even some smaller companies, IBM did theirs. And if they were in the first half of the year, they had to go virtual 'cause we're sheltered in place, and IBM did theirs, Okta did theirs, and we began to watch how they were doing this. We're kind of in the second half, because we were August, September, and we just sensed a lot of hesitancy from our customers that wanted to get on a plane to come here, and even if we got just 500, 1,000, a few thousand, it wasn't going to be the same and there would always be that sort of, even if we were getting back to that, some worry, so we figured we'd do something that might be semi-digital, and we may have some people that roam, but the bulk of it is going to be digital, and we changed the dates to be a little later. I think it's September 20th to 29th. Right now it's all public now, we announced that, and we're going to make it a great program. In some senses like we're becoming TV producer. I told our team we got to be like Disney or ESPN or whoever your favorite show is, YouTube, and produce a really good several-hour program that has got a different way in which digital content is provided, smaller snippets, very interesting speakers, great brand names, make the content clear, crisp and compelling. And if we do that, this will be, I don't know, maybe it's the new norm for some period of time, or it might be forever, I don't know. >> John: We're all learning. >> In the past we had huge conferences that were busting 50, 70, 100,000 and then after the dot-com era, those all shrunk, they're like smaller conferences, and now with advent of companies like Amazon and Salesforce, we have huge events that, like VMworld, are big events. We may move to a environment that's a lot more digital, I don't know what the future of in-presence physical conferences are, but we, like others, we're working with AWS in terms of their future with Reinvent, what Microsoft's doing with Ignite, what Google's doing with Next, what Salesforce's going to do with Dreamforce, all those four companies are good partners of ours. We'll study theirs, we'll work together as a community, the CMOs of all those companies, and we'll come together with something that's a very good digital experience for our customers, that's really what counts. Today I did a webinar with a partner. Typically when we did a briefing in our briefing center, 20 people came. There're 100 people attending this, I got a lot more participation in this QBR that I did with this SI partner, one of the top SIs in the world, in an online session with them, than would I have gotten if they'd all come to Palo Alto. That's goodness. Should we take the best of that world and some physical presence? Maybe in the future, we'll see how it goes. >> Content quality. You know, you know content. Content quality drives everything online, good engagement creates community, that's a nice flywheel. I think you guys will figure it out, you've got a lot of great minds there, and of course, theCUBE virtual will be helping out as we can, and we're rethinking things too-- >> We count on that, John-- >> We're going to be open minded to new ideas, and, hey, whatever's the best content we can deliver, whether it's CUBE, or with you guys, or whoever, we're looking forward to it. Sanjay, thanks for spending the time on this CUBE Keynote coverage of AWS Summit. Since it's digital we can do longer programs, we can do more diverse content. We got great customer practitioners coming up, talking about their journey, their innovation strategies. Sanjay Poonen, COO of VMware, thank you for taking your precious time out of your day today. >> Thank you, John, always a pleasure. >> Thank you. Okay, more CUBE, virtual CUBE digital coverage of AWS Summit 2020, theCUBE.net is we're streaming, and of course, tons of videos on innovation, DevOps, and more, scaling cloud, scaling on-premise hybrid cloud, and more. We got great interviews coming up, stay with us our all-day coverage. I'm John Furrier, thanks for watching. (upbeat music)

>> Announcer: From theCUBE studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a CUBE conversation. >> Hello everybody, welcome to this special CUBE conversation. My name is Dave Vellante and you're watching theCUBE. We're here with Sanjay Poonen who's the COO of VMware and a good friend of theCUBE. Sanjay great to see you. Thanks for coming on. >> Dave it's a pleasure. In these new circumstances, shelter at home and remote working. I hope you and your family are doing well. >> Yeah, and back at you Sanjay. Of course I saw you on Kramer Mad Money the other night. I was jealous. I said, "I need Sanjay on to get an optimism injection." You're a great leader And I think, a role model for all of us. And of course the "Go Niners" in the background really incented me to get-- I got my Red Sox cap and we have a lack of sports, but, and we miss it, But hey, we're making the best. >> Okay Red Sox is better than the Patriots. Although I love the Patriots. If i was in the east coast, especially now that Brady's gone. I guess you guys are probably ruing a little bit that Jimmy G came to us. >> I am a huge Tampa Bay fan all of a sudden. I be honest with you. Tom Brady can become a Yankee and I would root for them. I tell you that's how much I love the guy. But anyway, I'm really excited to have you on. It's obviously as you mentioned, these times are tough, but we're making the best do and it's great to see you. You are a huge optimist, but I want to ask you, I want to start with Narendra Modi just announced, basically a lockdown for 21 days. 1.3 billion people in your native country. I wonder if you could give us some, some thoughts on that. >> I'm, my parents live half their time in Bangalore and half here. They happen to be right now in the US, and they're doing well. My dad's 80 and my mom's 77. I go to India a lot. I spent about 18 years of my life there, and the last 32 odd years here and I still go there a lot. Have a lots friends and my family there. And , it's I'm glad that the situation is kind of , as best as they can serve it. It's weird, I was watching some of the social media photos of Bangalore. I tweeted this out last night. The roads look so clean and beautiful. I mean, it looks like 40 years ago when I was growing up. When I would take a bicycle to school. I mean Bangalore's one of the most beautiful cities in India, very green and you can kind of see it all again. And I think, as I've been watching some of the satellite photos of the various big cities to just watch sort of Mother Nature. Obviously, we're in a tough time and, I open my empathy and thoughts and prayers go to every family that's affected by this. And certainly ones who have lost loved ones, but it's sort of, I think it's neat, that we're starting to see some of the beautiful aspects of nature. Even as we deal with the tough aspects of sheltered home. And the incredible tough impacts of this pandemic across the world. >> Yeah, I think you're right. There is a silver lining as much as, our hearts go out to those that are that are suffering. You're seeing the canals in Venice run clear. As you mentioned, the nitrous oxide levels over China. what's going on in Bangalore. So, there is a little bit of light in the end of the tunnel for the environment, I hope. and at least there's an indication that we maybe, need to be more sensitized to this. Okay, let's get into it. I want to ask you, so last week in our breaking analysis. We worked with a data company called ETR down in New York City. They do constant surveys of CIO's. I want to read you something that they came out with just on Monday and get your reaction. Basically, their annual growth and IT spend they're saying, is showing a slight decline for 2020. As a significant number of organizations plan to cut and/or delay IT expenditures due to the coronavirus. Though the current climate may suggest worse many organizations are accelerating spending for 2020 as they ramp up their work-from-home infrastructure. These organizations are offsetting what would otherwise be a notable decline in global IT spend versus last year. Now we've gone from the 4% consensus at the beginning of the year. ETR brought it down to zero percent and then just on Monday, they went to slight negative. But, what's not been reported widely is the somewhat offsetting factor of work-from-home infrastructure. VMware obviously plays there. So I wonder if you could comment on what you're seeing. >> Yeah, Dave, I think , we'll have to see . I'm not an economic pundit. So we're going to have to see what the, IT landscape looks like in the overall sense and we'll probably play off GDP. Certain industries: travel, hospitality, I mean, it's brutal for them. I mean, and I hope that, what I really hope, that's going to happen to that industry, especially there's an infusion through recovery type of bill. Is that no real big company goes under, and goes bankrupt. I mean kind of the situation in 2008. I mean, people wondering what will happen to the Airlines. Boeing, hospital-- these are ic-- some of them like Boeing are iconic brands of the United States and of the world. There's only two real companies that make planes. So we've got to make sure that those industries stay afloat and stay good for the health of the world. Health of the US economy, jobs, and so on. That's always one end. Listen, health and safety of our employees always comes first. Before we even think about that. I always tell people the profits of VMware will wait if you are not well, if your loved ones not well, if your going to take care of people, take care of that first. We will be fine. This too shall pass. But if you're healthy, let's turn our attention because we're not going to just sit at home and play games. We're going to serve our customers. How do we do that? A lot of our customers are adjusting to this new normal. As a result, they have to either order devices with a laptop, screens, things of those kinds, to allow a work-from-home environment to be as close to productive as they work environment. So I expect that there will be a surge in the, sort of, end points that people need. I will have to see how Dell and HP and Lenovo, but I expect that they will probably see some surge in their laptops. As people, kind of, want those in the home and hopefully their supply chains are able to respond. But then with every one of those endpoints and screens that we need now for these types of organizations. You need to manage them, end point management. Often, you need virtual desktops on them. You need to end point security and then in some cases you will probably need, if it's a remote office, branch office, and into the home office, network security and app acceleration. So those Solutions, end point management, Workspace ONE, inclusive of a full-fledged virtual desktop capability That's our product Workspace ONE. Endpoint Securities, Carbon Black and the Network Platform NSX being software-defined was relegated for things like, load balancers and SDWAN capabilities and it's kind of almost feels like good, that we got those solutions, the last three, four years through acquisitions, in many cases. I mean, of course, Airwatch and Nicira were six, seven, eight years ago. But even SD-WAN, we acquired Velocloud three and a half years ago, Carbon Black just four months ago, and Avi in the last year. Those are all parts of that kind of portfolio now, and I feel we were able to, as customers come to us we're not going in ambulance-chasing. But as customers come to us and say, "What do you have as a work-at-home "for business continuity?" We're able to offer them a solution. So we did a webcast earlier this week. Where we talked about, we're calling it work in home with business continuity. It's led with our EUC offerings Workspace ONE. Accompanied by Carbon Black to secure that, and then underneath it, will obviously be the cloud foundation and our Network capabilities of NSX. >> Yeah, so I want to double down on that because it was not, the survey results, showed it was not just collaboration tools. Like Zoom and WebEx and gotomeeting Etc. It was, as you're pointing out, it was other infrastructure that was of VPN's. It was Network bandwidth. It was virtualization, security because they need to secure that work-from-home infrastructure. So a lot of sort of, ancillary activity. It was surprising to me, when I saw the data, that 21% of the CIO's that we surveyed, said that they actually plan on spending more in 2020 because of these factors. And so now we're tracking that daily. And the sentiment changes daily. I showed some other data that showed the CIO sentiment through March. Every day of the survey it dropped. Okay, so it's prudent to be cautious. But nonetheless, people to your point aren't just sitting on their hands. They're not standing still. They're moving to support this new work-from-home normal. >> Yeah, I mean listen, I forgot to say that, Yeah, we are using the video collaboration tools. Zoom a lot. We use Slack. We'll use Teams. So we are, those are accompanied. We were actually one of the first customers to use Zoom. I'm a big fan of my friend Eric Yuan and what they're doing there in modernizing, making it available on a mobile device. Just really fast. They've been very responsive and they reciprocated by using Workspace ONE there. We've been doing ads joined to VMware and zoom in the market for the last several years. So we're a big fan of their technology. So far be it from me to proclaim that the only thing you need here's VMware. There's a lot of other things on the stack. I think the best way, Dave, for us that we've sought to do this is again, I'm very sensitive to not ambulance-chase, which is, kind of go after this. To do it authentically, and the way that authentically is to be, I think Satya Nadella put this pretty well in an interview he did yesterday. Be a first responder to the first responder. A digital first responder, if I could. So when the, our biggest customers are hospital and school and universities and retailers and pharmacies. These are some of our biggest customers. They are looking, in some cases, actually hire more people to serve their communities and customers. And every one of them, as they , hire new people and so and so on, will I just naturally coming to us and when they come to us, serve them. And it's been really gratifying Dave. If I could read you the emails I've been getting the last few days. I got one from a very prominent City, the United States, the mayor's office, the CTO, just thanking us and our people. For being available who are being careful not to, we're being very sensitive to the pricing. To making sure customers don't feel like, in any way, that we're looking at the economics of it will always come just serve your customer. I got an email yesterday from a very large pharmacy. Routinely we were talking to folks in the, in the healthcare industry. University, a president of a school. In fact, Southern New Hampshire University, who I mentioned Jim Cramer. Sent me a note saying, "hey, we're really grateful you even mentioned our name." and I'm not doing this because, Southern New Hampshire University is doing an incredible job of moving a lot of their platform to online to help tens of thousands. And they were one of the early customers to adopt virtual desktops, and the cloud desktops, and the services. So, as we call. So in any of these use cases, I just tell our employees, "Be authentic. "First off take care of your families. "It's really important to take care of your own health and safety. But once you've done that, be authentic in serving our customers." That's what VR has always done. From the days of dying green, to bombers, to Pat, and all of us here now. Take care of our customers and we'll be fine. >> Yeah, and I perfectly understand your sensitivity to that notion of ambulance-chasing and I'm by no means trying to bait you into doing that. But I would stress, the industry needs you and the tech it-- many in the tech industry, like VMware, have very strong balance sheets. They're extremely viable companies and we as a community, as an industry, need companies like VMware to step up, be flexible on pricing, and terms, and payment, and things like that nature. Which it sounds like you're doing. Because the heroes that are on the front lines, they're fighting a battle every day, every hour, every minute and they need infrastructure to be able to work remotely with the stay-at-home mandates. >> I think that's right. And listen, let me talk a little bit of one of the things you talked about. Which is financing and we moved a lot of our business to increasingly, to the cloud. And SaaS and subscription services are a lot more radical than offer license and maintenance. We make that choice available to customers, in many cases we lead with cloud-first solutions. And then we also have financing services from our partners like Dell financial services that really allow a more gradual, radibal payment. Do people want financing? And , I think if there are other scenarios. Jim asked me on his show, "What will you do if one of your companies go bankrupt?" I don't know, that's an unprecedented, we didn't have, we had obviously, the financial crisis. I wasn't here at VMware during the dot-com blow up where companies just went bankrupt in 2000. I was at Informatica at the time. So, I'm sure we will see some unprecedented-- but I will tell you, we have a very fortunate to be profitable, have a good balance sheet. Whatever scenario, if we take care of our customers, I mean, we have been very fortunate to be one of the highest NPS, Net promoter scorer, companies in the industry. And , I've been reaching out to many of our top customers. Just a courtesy, without any agenda other than, we're just checking in. A friend in need is a friend indeed. It's a line that I remembered. And just reach out your customers. Hey listen. Checking in. No, other than can we help you, if there's anything and thank you, especially for ones who are retailers, pharmacies, hospitals, first responders. Thank them for what they're doing to serve many of their people. Especially people in retail. Think about the people who have to go into warehouses to service us, to deliver the stuff that comes to our home. I mean, these people are potentially at risk, but they do it. Put on masks. Braving health situations. That often need the paycheck. We're very grateful for that, and our hope is that this world situation, listen, I mentioned it on on TV as a kind of a little bit of a traffic jam. I love to ski and when I go off and to Tahoe, I tell my family, "I don't know how long it's going to take." with check up on Waze or Google Maps and usually takes four hours, no traffic. Every now and then it'll take five, six, seven. Worst case eight. I had some situation, never happen to me but some of my friends would just got stuck there and had to sleep in their car. But it's pretty much the case, you will eventually get there. I was talking to my dad, who is 80, and he's doing well. And he said, this feels a little bit like World War Two because you're kind of, in many places there. They had a bunker, shelter. Not just shelter in place, but bunker shelter in that time. But that lasted, whatever five, six years. I don't think this is going to last five, six years. It may be five, six months. It might be a whole year. I don't know. I can guarantee it's not going to be six years. So it won't be as bad as World War two. It certainly won't be as bad as the Spanish Flu. Which took 39 people and two percent of the world. Including five percent of my country, India in the 1918 to 1920 period, a hundred years ago. So we will get through this. I like, we shall overcome. I'm not going to sing it for you. It's one of my favorite Louis Armstrong songs, but find ways by which you encourage, uplift people. Making sure, it is tough, it is very tough times and we have to make sure that we get through this. That jobs are preserved as best as we can because that's the part I'm really, really concerned about. The loss of jobs and how we're going to recover as US economy, but we will make it through this. >> Yeah, and I want to sort of second what you're saying. That look, I know there are a lot of people at home that going a little bit stir crazy and this, the maybe a little bit of depression setting in. But to your point, we have to be empathic for those that are suffering. The elderly, who are in intensive care and also those frontline workers. And then I love your optimism. We will get through this. This is not the Spanish Flu. We have, it's a different world, a different technology world. Our focus, like many other small businesses is, we obviously want to survive. We want to maintain our full employment. We want to serve our customers and we, as you, believe that that is the recipe for getting through this. And so, I love the optimism. >> And listen, and we can help be a part of my the moment you texted me and said, "Hey, can I be in your show?" If it helps you drive, whatever you need, sponsorship revenue, advertising. I'm here and the same thing for all of our friends who have to adjust the way in which the wo-- we want to be there to help them. And I've chosen as best as I can, in terms of how I can support my family, the sort of five, five of us at home now. All fighting over bandwidth, the three kids, and my wife, and I. To be positive with them, to be in my social media presence, as best as possible. Every day to be positive in what I tweet out to the world And point people to a hope of what's going to come. I don't know how long this is going to last. But I can tell you. I mean, just the fact that you and I are talking over video interview. High fidelity, reasonably high fidelity, high bandwidth. The ability to connect. I mean it is a whole lot better than a lot of what happened in World War 2 or the Spanish flu. And I hope at the end of it, some of us, some of this will forever change our life. I hope for for example in a lot of our profession. We have to travel to visit customers. And now that I'm building some of these relationships virtually. I hope that maybe my travel percentage will drop. It's actually good for the environment, good for my family life. But if we can lower that percentage, still get things done through Zoom calls, and Workspace ONE, and things of those kinds, that would be awesome. So that's how I think about the way in which I'm adapting my life. And then I set certain personal goals. This year, for example, we're expanding a lot of our focus in security. We have a billion dollar security business and we're looking to grow that NSX, Common Black, Workspace ONE, and accompanying tools and I made it a goal to try and meet at all my sales teams. A thousand C-ISOs. I mean off I know a lot of CIO's in the 25 years, I've had, maybe five, six thousand of them in the world. And blessed to build that relationship over the years of my SAP and VMware experience, but I don't know. I mean, I knew probably 50 or 100. Maybe a few hundred CISO's. And now that we have a portfolio it's relevant to grant them and I think very compelling across network security and End Point security. We own the companies with such a strong portfolio in both those areas. I'm reaching out to them and I'm happy to tell you, I connected, I've got the names of 1,000 of the top CISO's in the Fortune 1000, Global 2000, and connecting with many of them through LinkedIn and other mixers. I hope I talked to many of them through the course of the year. And many of them will be virtual conversations. Again, just to talk to them about being a trusted advisor to us. Seeing if we can help them. And then of course, there will be a product pitch for NSX and Carbon Black and how we're different from whoever it is, Palo Alto and F5 and Netscaler and the SD line players or semantic McAfee Crowdstrike. We're differentiated so I want to certainly earn some of the business. But these are ways in which you adjust to a virtual kind of economy. Where I'm not having to physically go and meet them. >> Yeah, and we share your optimism and those CISO's are, they're heroes, superheroes on the front line. I'll tell ya a quick aside. So John Furrier and I, we're in Barcelona. When really, the coronavirus came to our heightened awareness and John looked at me and said, "Dave we've been doing digital for 10 years. "We have to take all of the software that we've developed, "all these assets and help our customers pivot." So we share that optimism and we're actually lucky to be able to have the studios and be able to have these conversations with you guys. So again, we share that, that optimism. I want to ask you, just on guidance. A lot of companies have come out and said we're not giving guidance anymore. I didn't see anything relative to VMware. Have you guys announced anything on guidance in terms of how you're going to communicate? Where are you at with that? >> No, I think we're just, I mean listen, we take this very carefully because of reg FD and the regulations of public company. So we just allow the normal quarterly ins. And of outside of that, if our CFO decides they may. But right now we're just continuing business as usual. We're in the middle of our, kind of, whatever, middle of our quarter. Quarter ends April. So work hard do the best we can in all the regions, be available for all of our teams. Pat, myself, and others we're, to the extent that we're healthy and we're doing well, but thank God, is reach out to CISO's and CIO's and CTO's and CEOs and help them. And I believe people will spend money. The questions we have to go over. And I think the stronger will survive. The companies with better balance sheet and unfortunately, some of the weaker companies won't. And I think quite frankly, if you do your job well. I don't mean this in any negative sense. The stronger companies will take share in these environments. I was watching a segment for John Chambers. He has been through a number of different, when I know him, so an I have, I've talked to him about some of the stuff. He will tell you that he, advises is a lot of his companies now. From the experiences he saw in 2008, 2001, in many of the crisis and supply chain issues. This is a time where leadership counts. The strong get stronger. Never waste a good crisis, as Winston Churchill said. And as you do that, the strong will come strong because you figure out ways by which, if you're going to make changes that were planned for one or two years from now. Maybe a good time to make them is now. And as you do that you communicate a vision for where you're going. Very clearly to your employees. Again incessantly over and over again. They, hopefully, are able to repeat it in their own words in a simple fashion, and then you get all of your employees in our case 30,000 plus employees of VMware lined up. So one of the things that we've been doing a lot of these days is communicate, communicate, communicate, internally. I've talked a lot about our communication with customer. But inside, our employees, we do calls with our top leaders over Zoom. Calls, intimate calls, and many, often we're adjusting to where I'll say a few words. I have a mandatory every two week goal with all of my senior most leaders. I'll speak for about five minutes and then for the next 25 minutes, the top 12, 15 of them I listen. To things, I want all of them to speak up. There's nobody who should stay silent, because I want to hear what's going on in that corner of the world. >> But fantastic Sanjay. Well, I mean, Boeing, I heard this morning's going to get some support from the government. And strategically that's very important for our country. Congress finally passed, looks like they're passing that bill, and support which is awesome. It's been, especially for all these small businesses that are struggling and want to maintain full employment. I heard Steve Mnuchin the other day saying, "Look, we're talking about two months of payroll "for people if they agree to keep people employed. "or hire them back." I mean the Fed. people say, oh the FED is out of arrows. The Feds, not out of arrows. I mean, I'm not an economist either. But the Fed. has a lot of bullets in their gun, as they say. So Sanjay, thanks so much. You're an awesome leader and really an inspirational executive and a good friend so thank you so much for coming on theCUBE. >> Dave, always a pleasure. Please say hi to all of my friends, your co-anchors, and the staff at CUBE. Thank them for all their hard work. It's a pleasure to talk to you this morning. I wish you, your family, and your friends and all of our community, stay safe and be well. >> Thank you Sanjay and thank you for watching everybody. This is Dave Vellante for the cube and we'll see you next time. (soft music)

>>Fly from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hi everyone. Welcome back to the cubes coverage here at in San Francisco, the Moscone center for RSA conference 2020 I'm job for your host. We are the very special guests, the COO of VMware, Sanjay Poonen, cube alumni. When you talk about security, talk about the modern enterprise as it transforms new use cases, new problems emerge. New opportunities exist here to break it down. Sanjay, welcome back. Thank you John. Always a pleasure to be on your show and I think it's my first time at RSA. We've talked a number of times, but nice to see you here. Well, it's a security guard. Well, this is really why I wanted you to talk, talk to you because operations is become now the big conversation around security. So you know, security was once part of it. It comes out and part of the board conversation, but when you look at security, all the conversations that we're seeing that are the most important conversations are almost a business model conversation. >>Almost like if you're the CEO of the company, you've got HR people, HR, organizational behavior, collaboration, technology, stack compliance and risk management. So the threat of cyber has to cut across now multiple operational functions of the business. It's no longer one thing, it's everything. So this is really kind of makes it the pressure of the business owners to be mindful of a bigger picture. And the attack velocity is happening so much faster, more volume of attacks, milliseconds and nanosecond attacks. So this is a huge, huge problem. I need you to break it down for me. >> Good. But then wonderful intro. No, I would say you're absolutely right. First off, security is a boardroom topic. Uh, audit committees are asking, you know, the CIO so often, you know, reports a report directly, sometimes, often not even to the CIO, to the head of legal or finance and often to the audit. >>So it's a boardroom topic then. You're right, every department right now cares about security because they've got both threat and security of nation state, all malicious, organized crime trying to come at them. But they've also got physical security mind. I mean, listen, growing a virus is a serious threat to our physical security. And we're really concerned about employees and the idea of a cyber security and physical security. We've put at VMware, cybersecurity and, and um, um, physical security. One guy, the CIO. So he actually runs vote. So I think you're absolutely right and if you're a head of HR, you care about your employees. If you're care ahead of communications, you care about your reputation and marketing the same way. If you're a finance, you care about your accounting systems and having all of the it systems that are. So we certainly think that holistic approach does, deserves a different approach to security, which is it can't be silo, silo, silo. >>It has to be intrinsic. And I've talked on your show about why intrinsic and how differentiated that intrinsic security, what I talked about this morning in my keynote. >> Well, and then again, the connect the dots there. It's not just security, it's the applications that are being built on mobile. For instance, I've got a mobile app. I have milliseconds, serious bond to whether something's yes or no. That's the app on mobile. But still the security threat is still over here and I've got the app over here. This is now the reality. And again, AirWatch was a big acquisition that you did. I also had some security. Carbon black was a $2 billion acquisition that VMware made. That's a security practice. How's it all coming together? Can you think of any questions? Blame the VMware because it's not just security, it's what's around it. >> Yeah. I think we began to see over the course of the last several years that there were certain control points and security that could help, you know, bring order to this chaos of 5,000 security vendors. >>They're all legitimate. They're all here at the show. They're good vendors. But you cannot, if you are trying to say healthy, go to a doctor and expect the doctor to tell you, eat 5,000 tablets and sailed. He just is not sustainable. It has to be baked into your diet. You eat your proteins, your vegetables, your fruit, your drink, your water. The same way we believe security needs to become intrinsically deeper parts, the platform. So what were the key platforms and control points? We decided to focus on the network, the endpoint, and you could think of endpoint as to both client and workload identity, cloud analytics. You take a few of those and network. We've been laboring the last seven years to build a definitive networking company and now a networking security company where we can do everything from data center networking, Dell firewalls to load balancing to SDN in this NSX platform. >>You remember where you bought an nice syrup. The industry woke up like what's VM ever doing in networking? We've now built on that 13,000 customers really good growing revenue business in networking and and now doing that working security. That space is fragmented across Cisco, Palo Alto, FIU, NetScaler, checkpoint Riverbed, VMware cleans that up. You get to the end point side. We saw the same thing. You know you had an endpoint management now workspace one the sequel of what AirWatch was, but endpoint security again, fragmented. You had Symantec McAfee, now CrowdStrike, tenable Qualis, you know, I mean just so many fragmented IOM. We felt like we could come in now and clean that up too, so I have to worry about to do >> well basically explaining that, but I want to get now to the next conversation point that I'm interested in operational impact because when you have all these things to operationalize, you saw that with dev ops and cloud now hybrid, you got to operationalize this stuff. >>You guys have been in the operations side of the business for our VMware. That's what you're known for and the developers and now on the horizon I gotta operationalize all the security. What do I do? I'm the CSO. I think it's really important that in understanding operations of the infrastructure, we have that control point called vSphere and we're now going to take carbon black and make it agentless on the silverside workloads, which has never been done before. That's operationalizing it at the infrastructure level. At the end point we're going to unify carbon black and workspace one into a unified agent, never been done before. That's operationalizing it on the client side. And then on the container and the dev ops site, you're going to start bringing security into the container world. We actually happened in our grade point of view in containers. You've seen us do stuff with Tansu and Kubernetes and pivotal. >>Bringing that together and data security is a very logical thing that we will add there. So we have a very good view of where the infrastructure and operations parts that we know well, a vSphere, NSX workspace one containers with 10 Xu, we're going to bring security to all of them and then bake it more and more in so it's not feeling like it's a point tool. The same platform, carbon black will be able to handle the security of all of those use cases. One platform, several use cases. Are you happy with the carbon black acquisition? Listen, you know, you stay humble and hungry. Uh, John for a fundamental reason, I've been involved with number of acquisitions from my SAP VMware days, billion dollar plus. We've done talking to us. The Harvard business review had an article several years ago, which Carney called acquisitions and majority of them fail and they feel not because of process of product they feel because good people leave. >>One of the things that we have as a recipe does acquisition. We applied that to AirWatch, we apply the deny Sera. There is usually some brain trust. You remember in the days of nice area, it was my team Cosato and the case of AirWatch. It was John Marshall and that team. We want to preserve that team to help incubate this and then what breve EV brings a scale, so I'm delighted about Patrick earlier. I want to have him on your show next time because he's now the head of our security business unit. He's culturally a fit for the mr. humble, hungry. He wants to see just, we were billion dollar business now with security across networking endpoint and then he wants to take just he's piece of it, right? The common black piece of it, make it a billion dollar business while the overall security business goes from three to five. >>And I think we're going to count them for many years to come to really be a key part of VMware's fabric, a great leader. So we're successful. If he's successful, what's my job then? He reports to me is to get all the obstacles out of the way. Get every one of my core reps to sell carbon black. Every one of the partners like Dell to sell carbon black. So one of the deals we did within a month is Dell has now announced that their preferred solution on at Dell laptops, this carbon bike, they will work in the past with silence and crowd CrowdStrike. Now it's common black every day laptop now as a default option. That's called blank. So as we do these, John, the way we roll is one on here to basically come in and occupy that acquisition, get the obstacles out of the way, and that let Patrick scaled us the same way. >>Martine Casado or jumbo. So we have a playbook. We're gonna apply that playbook. Stay humble and hungry. And you ask me that question every year. How are we doing a carbon black? I will be saying, I love you putting a check on you. It will be checking in when we've done an AirWatch. What do you think? Pretty good. Very good. I think good. Stayed line to the radar. Kept growing. It's top right. Known every magic quadrant. That business is significant. Bigger than the 100 million while nice here. How do we do a nice hero? NSX? It's evolved quite a bit. It's evolved. So this is back to the point. VMware makes bets. So unlike other acquisitions where they're big numbers, still big numbers, billions or billions, but they're bets. AirWatch was a good bet. Turned out okay. That the betting, you're being conservative today anyway. That's it. You're making now. >>How would you classify those bets? What are the big bets that you're making right now? Listen, >> I think there's, um, a handful of them. I like to think of things as no more than three to five. We're making a big bet. A multi-cloud. Okay. The world is going to be private, public edge. You and us have talked a lot about VMware. AWS expanded now to Azure and others. We've a big future that private cloud, public cloud edge number two, we're making a big bet on AB motorization with the container level 10 zoos. I think number three, we're making a big bet in virtual cloud networking cause we think longterm there's going to be only two networking companies in matter, VMware and Cisco. Number four, we're making a big bet in the digital workspace and build on what we've done with AirWatch and other technologies. Number five, and make it a big bet security. >>So these five we think of what can take the company from 10 to 20 billion. So we, you know, uh, we, we've talked about the $10 billion Mark. Um, and the next big milestone for the company is a 20 billion ball Mark. And you have to ask yourself, can you see this company with these five bets going from where they are about a 10 billion revenue company to 20. Boom. We hope again, >> Dave, a lot that's doing a braking and now he might've already shipped the piece this morning on multi-cloud. Um, he and I were commenting that, well, I said it's the third wave of cloud computing, public cloud, hybrid multi-cloud and hybrids, the first step towards multi-cloud. Everyone kind of knows that. Um, but I want to ask you, because I told Dave and we kind of talked about this is a multi-decade growth opportunity, wealth creation, innovation, growth, new opportunity multicloud for the generation. >>Take the, this industry the next level. How do you see that multicloud wave? Do you agree on the multigenerational and if so, what specifically do you see that unfolding into this? And I'm deeply inspired by what Andy Jassy, Satya Nadella, you know, the past leading up to Thomas Korea and these folks are creating big cloud businesses. Amazon's the biggest, uh, in the iOS pass world. Azure is second, Google is third, and just market shares. These folks collectively are growing, growing really well. In some senses, VM-ware gets to feed off that ecosystem in the public cloud. So we are firm believers in what you're described. Hybrid cloud is the pot to the multicloud. We coined that term hybrid thought. In fact, the first incantation of eco there was called via cloud hybrid service. So we coined the term hybrid cloud, but the world is not multi-cloud. The the, the key though is that I don't think you're gonna walk away from those three clouds I mentioned have deep pockets. >>Then none of them are going away and they're going to compete hard with each other. The market shares may stay the same. Our odd goal is to be a Switzerland player that can help our customers take VM or workloads, optimize them in the private cloud first. Okay? When a bank of America says on their earnings caller, Brian Warren and said, I can run a private cloud better than a public cloud and I can save 2 billion doing that, okay? It turns off any of the banks are actually running on VMware. That's their goal. But there are other companies like Freddie Mac, we're going all in with Amazon. We want to ride the best of both worlds. If you're a private cloud, we're going to make you the most efficient private cloud, VMware software, well public cloud, and going to Amazon like a Freddie Mac will help you ride your apps into that through VMware. >>So sometimes history can be a predictor of future behavior. And just to kind of rewind the computer industry clock, if you looked at mainframe mini-computers, inter networking, internet proprietary network operating systems dominated it, but you saw the shift and it was driven by choice for customers, multiple vendors, interoperability. So to me, I think cloud multicloud is going to come down to the best choice for the workload and then the environment of the business. And that's going to be a spectrum. But the key in that is multi-vendor, multi, a friend choice, multi-vendor, interoperability. This is going to be the next equation in the modern error. It's not gonna look the same as mainframe mini's networking, but it'll create the next Cisco, the create the next new brand that may or may not be out there yet that might be competing with you or you might be that next brand. >>So interoperability, multi-vendor choice has been a theme in open systems for a long time. Your reactions, I think it's absolutely right, John, you're onto something there. Listen, the multicloud world is almost a replay of the multi hardware system world. 20 years ago, if you asked who was a multi hardware player before, it was Dell, HP at the time, IBM, now, Lenovo, EMC, NetApp, so and so forth and Silva storage, networking. The multicloud world today is Amazon, Azure, Google. If you go to China, Alibaba, so on and so forth. A Motiva somebody has to be a Switzerland player that can serve the old hardware economy and the new hardware economy, which is the, which is the cloud and then of course, don't forget the device economy of Apple, Google, Microsoft, there too. I think that if you have some fundamental first principles, you expressed one of them. >>Listen where open source exists, embrace it. That's why we're going big on Kubernetes. If there are multiple clouds, embrace it. Do what's right for the customer, abstract away. That's what virtualization is. Managed common infrastructure across Ahmed, which is what our management principles are, secure things. At the point of every device and every workload. So those are the principles. Now the engineering of it changes. The way in which we're doing virtualization today in 2020 is slightly different from when Diane started the company and around the year 2020 years ago. But the principals are saying, we're just not working just with the hardware vendors working toward the cloud vendors. So using choices where it's at, the choice is what they want. Absolutely, absolutely. And you're right. It's choice because it was the big workloads. We see, for example, Amazon having a headstart in the public cloud markets, but there's some use cases where Azure is applicable. >>Some use his word, Google's applicable, and to us, if the entire world was only one hardware player or only one cloud player, only one device player, you don't need VMware. We thrive in heterogeneity. It's awesome. I love that word. No heterogeneity provides not 3000 vendors. There's almost three, three of every kind, three silver vendors, three storage vendors, three networking vendors, three cloud vendors, three device vendors. We was the middle of all of it. And yeah, there may be other companies who tried to do that too. If they are, we should learn from them, do it better than them. And competition even to us is a good thing. All right. My final question for you is in the, yeah, the Dell technologies family of which VMware is a part of, although big part of it, the crown jewel as we've been calling them the cube, they announced RSA is being sold to a private equity company. >>What's the general reaction amongst VMware folks and the, and the Dell technology family? Good move, no impact. What we support Dell and you know, all the moves that they've made. Um, and from our perspective, you know, if we're not owning it, we're going to partner it. So I see no overlap with RSA. We partner with them. They've got three core pillars, secure ID, net witness and Archer. We partnered with them very well. We have no aspirations to get into those aspects of governance. Risk and compliance or security has been, so it's a partner. So whoever's running it, Rohit runs on very well. He also owns the events conference. We have a great relationship and then we'll keep doing that. Well, we are focused in the areas I described, network, endpoint security. And I think what Michael has done brilliantly through the course of the last few years is set up a hardware and systems company in Dell and allow the software company called Vima to continue to operate. >>And I think, you know, the movement of some of these assets between the companies like pivotal to us and so on and so forth, cleans it up so that now you've got both these companies doing well. Dell has gone public, we Hammer's gone public and he has said on the record, what's good for Dell is good, what's good for VMware and vice versa and good for the customer. And I think the key is there's no visibility on what cloud native looks like. Hybrid, public, multi, multi, not so much. But you get almost, it's an easy bridge to get across and get there. AI, cyber are all big clear trends. They're waves. Sasha. Great. Thank you. Thanks for coming on. Um, your thoughts on the security show here. Uh, what's your, what's your take to, uh, definitive security shows? I hope it stays that way. Even with the change of where RSA is. >>Ownership goes is this conference in black hat and we play in both, uh, Amazon's conference. I was totally starting to, uh, reinforce, reinforce cloud security will show up there too. Uh, but we, we think, listen, there's what, 30,000 people here. So it's a force. It's a little bit like VMworld. We will play here. We'll play a big, we've got, you know, it just so happens because the acquisition happened before we told them, but we have two big presences here. We were at carbon black, um, and it's an important business for us. And I said, like I said, we have $1 billion business and security today by 30,000 customers using us in a security network, endpoints cloud. I want to take that to be a multi, multiple times that size. And I think there's a pot to do that because it's an adjacent us and security. So we have our own kind of selfish motives here in terms of getting more Mindshare and security. >>We did a keynote this morning, which was well received with Southwest airlines. She did a great job. Carrie Miller, she was a fantastic speaker and it was our way of showing in 20 minutes, not just to our point of view, because you don't want to be self serving a practitioner's point of view. And that's what's really important. Well finally on a personal note, um, you know, I always use the term tech athlete, which I think you are one, you really work hard and smart, but I got to get your thoughts. But then I saw you're not on Twitter. I'm on. When IBM announced a new CEO, Arvin, um, fishnet Indian American, another CEO, this is a pattern. We're starting to see Indian American CEOs running cup American companies because this is the leadership and it's really a great thing in my mind, I think is one of the most successful stories of meritocracy of all time. >>You're quick. I'm a big fan of oven, big fan of Shantanu, Sundar Pichai, something that Ellen, many of them are close friends of mine. Uh, many of them have grown up in Southern India. We're a different ages. Some of them are older than me and in many cases, you know, we were falling behind other great players like Vino Cosla who came even 10 to 15 years prior. And you know, it's hard for an immigrant in this country. You know, um, when I first got here and I came as an immigrant to Dartmouth college, there may have been five or 10 Brown skin people in the town of Hanover, New Hampshire. I don't know if you've been to New Hampshire. I've been there, there's not many at that time. And then the late 1980s, now of course, there's much more, uh, so, you know, uh, we stay humble and hungry. >>There's a part of our culture in India that's really valued education and hard work and people like Arvin and some of these other people are products. I look up to them, the things I learned from them. And um, you know, it's true of India. It's a really good thing to see these people be successful at name brand American companies, whether it's IBM or Microsoft or Google or Adobe or MasterCard. So we're, we're, I'm in that fan club and there's a lot I learned from that. I just love being around people who love entrepreneurship, love innovation, love technology, and work hard. So congratulations. Thank you so much for your success. Great to see you again soon as you put in the COO of VM-ware here on the ground floor here at RSA conference at Moscone, sharing his insight into the security practice that is now carbon black and VMware. All the good things that are going on there. Thanks for watching.

>>Locke from Las Vegas. It's the cube covering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Well, welcome back to the cube live here in Las Vegas for AWS reinvent 2019 it's the cubes seventh year, eighth year of reinvent. We've been there almost from the beginning. I'm John ferry with Dave Volante extracting the signal from the noise. The two great guests here chew senior leaders, VMware, auntie that were Sanjay Poonan, COO of VMware cube alumni, Mike Clayville, vice president of worldwide commercial sales and business development for AWS guys. You're the senior leaders out on the field making things happen. I got to say the AWS VMware relationship, which we covered a couple of years ago when Gelsinger and Jassy were doing the little love Fest, they're in San Francisco. A lot of people were skeptical. This show here, we're hearing things like, that's my Superbowl moment. Things are working great. Cloud is scaling, so congratulations and welcome to the cube. Good to see you. Thank you. Yeah. All right, so let's get to the relationship. >>Talk about you guys' relationship and how it's morphed into such a success. We're hearing great feedback. The numbers on the research at day's been digging into shows. Customer spend is up. Is that the wave of cloud? Is that the integration? Sanjay, what's going on? Give us, gives you up to, Oh, I think we're delighted. You know Mike obviously and I have been friends for years. He's had some connections with VMware in his past that certainly helped in setting up this partnerships. So we're grateful to Mike and Andy and the team for that and it's, you know, two and a half to three years now since we announced it. Tremendous amount of customer interest. Listen, you know we said at the beginning of this, when you take sort of the King of the public cloud and the King, the private cloud together and don't force customers to say these have to be separate doors, you're going to do them both together. >>Customers liked that message and what we've been really doing over the course of the last 1218 months is perfecting use cases for this platform. I think to us, the key word is migrations. Cloud migrations. When people are moving their workloads off an app off VMware vSphere or cloud foundation, we want this to be the best place for it to land. We are McCloud in AWS for migration opportunity and anything short of that refactoring app would we, you know, not something that would be a good use of people's time and money because they should be then modernizing with all the wonderful services that Amazon's built, one they've migrated. So we've really perfected our message in the course of the last six, 12 months to two M's, migrate and modernize, migrate and modernize. So we could migrate you into this Avenue and then modernize with a set of container and other services. So that messes working. We put on stage at VMworld and there are many of them here, two big Amazon customers, VMware cloud, Amazon, Freddie Mac and IHS market. And they were telling our tens of thousands customers at those shows and similarly many of them here, that that's the best option to be able to do things. >>Yeah, it's great. It's great by the way, because it's a frictionless migration, right? So you've got a platform that same code base working on pram, same cloud based and cloud creating a seamless integration between the two platforms. We're finding customers very in enthralled by that. I say they say they love that because it's less disruptive for them. Yeah. But at the same time they say, but eventually I want to change my operating model to really drive profits to my bottom line. So could you talk a little bit about what that journey looks like? And I'm really interested in longer term Sanjay, how you play in that. I look Mike, sorry. So the first thing I'd say that one of the real reasons I love it is because they've got a big investment today and that investment is in skills. That investment is in operational processes. That investment is in licensing and all of that comes along with them on their journey. Whether it's a migration journey or a migration to modernize journey, it's working. So when you're talking about the bottom line, like you are, this is a great play for that bottom line. >>Yeah, I know. And I'd say, listen, from our perspective, we want to take a Freddie Mac. When they spoke at VMworld, they have I think 800 applications, 50 of whom are SAS and the other 750 are custom built, deep Lee virtualized and they're going to move all of them over the course of the next 12 months. I fell off my chair when I, when I heard how fast they planned to do it. IHS market has very a variety of very spread accounts and Amazon. Now we're going to help them move a lot of their workloads there. Once they're there, we want them to then use the tools that Amazon's bill. I'll give you two examples, maybe some of their backup tools into S3 CloudWatch some of their analytical monitoring types of tools. So there's going to be, and then of course AI database services and the best place once you've moved it there is to make sure that that migrated stack is stable. >>You have the best of the VMware tools, V center, V motion, all you know and the best of the Amazon tools. So when people start to see this, I think the myth of Sarah's saying refactor and replatform that application, which is in essence like taking a home. Okay. And having to destroy the home and completely rebuild it. Right? And that's just a meal, a waste of money and time when you could migrate it and then modernize it. So we just need to get that story well understood. Get our, you know, I, I mean Amazon probably has a few million customers. We have a half a million customers. If all of those customers can hear the story and beginning their journey with us, I think we will tip this in a way. Starting >>to tip, to get the, back to the point of your question as well. Look, our two companies have been engineering these solutions together deeply. So this just isn't a paper arbiters. Yeah. This is an engineering partnership that started years ago and what that means is as customers migrate to a beam ware on AWS, now they have access to over 175 AWS services, can it, right. Significant native access to a broad range of services that they can continue to innovate, identify new business models and it all seamlessly integrates back into a single platform. >>Yeah. One of the things I always said when I talked to Andy and Amazon folks is that the competitive advantage of the businesses scale and also the new announcements that come in. So one of the things we heard yesterday from a customer, uh, one of your joint customers was, you know, I asked him about outpost, which you guys now are going to ship in 2020, which was announced you already got native outpost, general availability. He goes, look it, we'd love VMware. We could probably look at VMware and kind of poke at things, maybe do things differently. But frankly I don't want to have to rearchitect my stack because I want the data science stuff from studio a Sage maker studio because the demand for the business results is coming in from the new capabilities. So this seems to be the trend where the migration is just lift and shifts, keep the operational flow going, foundation and the business value over the top is whatever you guys can bring in from an NSX and then the apps. Is this something that you're hearing more of? Because this points to all of us, the discussion around the platform is irrelevant because the business value is coming in from the data. Yeah. What, how do you guys react to that? Is that something that you're hearing? >>Well, the first thing I would say is the, you know, the pundents will tell you that by 2020 90% of customers will be in a hybrid model. So you know, the migration is, you talk about is in play and, and arguably 2020 will be the year of the most migrations in history if those pendants are correct. Right. And so that gets a lot of customers in the mode of being able to leverage a BMC and then be able to take advantage of all the, you know, the extensive amount of data services we have available. But if you ask me, where do you know, what are the, what are the big reasons driving the migration? It's traditional economics, right? It's, I'm, I don't need to be a capital expense heavy organization anymore. Why do I have to build data centers? Why do I have to extend data centers? Why am I building, why am I buying air conditioning that's not differentiating my business? Right? All of those things are creating drivers for this migration. Now as you begin the migration, that's when you begin to see, wow, imagine the simplicity of the same code base, same operational processes. I don't have to retrain a bunch of people just moving it right onto the cloud and now let me really dig in to the new services available from AWS. Look for those new business. >>I suppose having that focus of differentiation and VMware and saying, let's keep it and expand it to the edge and do things like that. And yeah, absolutely. I mean, listen, I think they had Cerner yesterday on stage and I think it was interesting to hear the CEO, they're talking about three verbs, migrated, modernize, and innovate. I mean that's the thing thing. So I think when you, when you start to see that becoming a very active dialogue, not just from CEOs but from CEOs and boards that are saying, listen, you know, part of the reason we want to move to the cloud is an increase our bruiser agility. It's not just a cost reduction. Yeah. I mean I don't need to have 80 data centers have, I could have half a zero a one or two so that I get, but beyond cost, if we can kind of get agility going faster. >>And for many of these folks, I think when I sit down in their customer advisory councils, when I, when we are advising them, they're all trying to serve their customers better, get data to become sort of the oil of their ability to make decisions better and AI and analytics sort of help in that area. And then of course, getting more efficient in lowering costs and risks. And I think when you're doing it, the scale that both of us have experienced doing, we understand data centers really well. We've software defined them for 20 years. These guys understand cloud probably better than anybody else. When we bring that sort of scale together and as Mike pointed out, a deeply engineered solution, we have a, we have a significant R and D investment in this and we're doing that jointly with them. When I often sit down in our joint QPRs, I joke about it with Mike and Andy and others, I sometimes forget, is that a VMware person speaking or an Amazon person because there's finishing each other's sentences. So there's a lot of that joint trust they've built and we just now have to keep showing that this is a solution that's innovating every three months because you're running on monthly and quarterly cycles and get large customers. I mean to us now, it's less so about the noise of getting everybody on stage. It's much more of a showing customer attraction. >>So I wonder if we could talk about one of the other big problems in the industry. Mikey talked about deep engineering and you guys are, you know, you're never done right, but you've solved that problem or solving that problem of making it easy for customers, VM-ware customers to run in the cloud. There's another big problem it could be concerned about customers is security and there seems to be somewhat of a dissonance. And I wonder if you could share with us maybe some of the thinking around this. So Steven Schmidt for instance, who is Amazon CSO says, Hey, the state of security in the cloud is, is great. And it is, it's, you know, you don't have a lot of technical debt coming in to the game. Pat Gelsinger is saying, Hey, you know, security, the state of security in my world is broken. So what's the conversation with you guys in terms of addressing that big concern on the minds of CEOs? And >>yeah, I'll start and they might feel free to add them. Thomas, I mean we've talked to Steve, we're like Steve, he's a very, he's a, he's an innovator and a thought leader in security. We're coming at it from a place that's complimentary to some of the point of views of, of Amazon. Um, and I shared this at our last VM world discussion. When we look at the, the, the control points of security where traditional security spent network, endpoint, identity, cloud and analytics, those are five, four control points where a lot of security is spent inside the $50 billion security market. We picked two that we're going to do really well. The network and endpoint NSX has been doing really well there. Now granted a bunch of that is on prem. It's replacing or complimenting Cisco, Palo Alto, checkpoint fire, a flash for a railroad bed, F five NetScaler spent. >>And now that business 13,000 customers in has become a 40, 50% of its security use cases. The network we just acquired, carbon black aide runs on the Amazon platform. It runs, uh, a next gen endpoint security. That's, you know, an evolution from the old world of Symantec, McAfee, you know, and there were only two vendors doing this at scale carbon black and CrowdStrike, we built, we built, we bought the better one. So when you put those together and collect a significant amount of telemetry from that, we think we could do something highly differentiated and security. So VMware, his goal and to the extent that Amazon or others are doing things in security that compliment our view of it, we'll build on it, right? Whether it's identity and access tools, whether it's load balancers, whether it's security, event management capabilities. >>Well we're in, we're integrating those two into the security in the cloud, which makes it seamless security, which is critical. >>Goal would be, listen, when we go and when we talked about this is what we're doing, security, we go to Mike and Andy and Steve and said, listen, this is our ambitions and security. We don't view Amazon as a competitor. And that's why he's very much complimented. They'll will be on the fringes. They have a load balancer. We now have a cloud. But that's okay. But that's the bigger part. If they were going off for endpoint security, as we be competitive there, if they were going up in network secure, but they're not. So I think when we share our intents, which we do very openly, we have open kimono sessions. He, this is where we are, this is where we're going. That's what we, and we go deep in that >>trust luck, but this is a historic partnership. This is not a partnership that I've seen anywhere in the industry in my 35 years. This is something that's at the next level and I think you'll look back, history will look back at this partnership and and recognize that its impact on cloud is going to be substantial. >>You hope you guys deserve a lot of credit and again, the critics were critical of the announcement. We were obviously favor, we saw the vision, but I think what surprised me most is that the spend numbers reflect is you guys clarified your cloud play with this move. The customers saluted it 100% they were on board and the numbers are showing it, but as Andy and you guys go to the next level, I got to get your thoughts on this trend of transformation. We have two means. We started in the cube this week. One was if you take the T out of cloud native, it's cloud naive. And the other one is what I said in my post about being reborn in the cloud. So you've got born in the cloud, startups and growth and enterprises were becoming reborn, okay? In the cloud, which means they're transforming. >>So as that trillions of dollars that are coming into the migration, you look at the numbers, there's only 20% of it spend in cloud. Roughly give or take. You're talking about trillions of dollars of new money. You guys are the commercial guys. Hey look, it's still day one for the cloud. It's still day one. I agree. You have a lot of people who might not make the migration, might die of starvation. Okay? As they move to the new model, you guys are out there have to take and you're going to go get that cash. What are you guys seeing? Cause this is a big trillions and trillions of dollars are on the table. You started Mike off. Well look. So, >>you know, uh, Sanjay talked about you see these customers and how enthusiastic they are about the opportunity here, right? And, and Freddie Mac's a great example of 100 million lines of code, and I've got to get out of three data centers in 24 months. Bam, they're out in 10, 10 months, 10 months, right? Um, 100 million lines of code over hundreds of, of applications done in 10 months. Now imagine the rest that the company can do now that they got that behind him, right? And that's what we're seeing is this partnership enables our customers to get a bunch done very economically, much faster, and now they can get onto the other things that they need to do. >>Yeah. And I'd build on that. Listen, you know, we track about a trillion dollars of it spend. And if you add up all of the cloud spend today, it's probably a, I mean, Amazon and Salesforce are probably the biggest in infrastructure and apps. It's probably 150 billion in total cloud spend, maybe 200 billion. So that's 15 to 20% of the total it spend, which is massive, but it's still as, as my points, that's early innings is that 20% it's probably going to become 50% at some point soon, right? If you look at the pace at which the cloud companies are growing, so the key question is, is going to go as 150 billion, the 1 trillion total number is going to grow, but probably a little bit faster and GDP most every 5% max, who's going to go grab that 150 Boone as it goes from 150 billion to 500 billion and the on premise spend slows down. >>Right? Um, I think that, you know, I think Amazon is very well positioned and from our perspective at VMware, we have a, you know, 10 $11 billion business. We're trying to tilt this increasingly more cloud. We announced our earnings call, 13% of it now is hybrid cloud and SAS, that 13% should become 2025 50. They are a pure cloud company. 100% of their businesses is cloud. We're in that transition. But why are we in that transition? Because we see that 150 billion of it spend likely becoming 500 billion. And if we don't get it somebody else's well hybrids, are we a tailwind for you guys? Because outpost is actually a statement that says hybrid at the edge. Now the data centers an edge, you've got edge. What is an edge? So cloud operations is now the standard and we, I mean, we actually coined the term hybrid six years ago and everyone could five, six years ago and everyone really laughed at us and now I think it's being validated. So it's, it's very gratifying now that Amazon has a similar vision to hybrid as us. Uh, we believe both the VMware cloud on Amazon outpost and BMR cloud running on outpost, we're very committed to that joint vision. >>Yeah. You're talking about the spending data and you know, VMware yet another revenue hit. I was pretty consistent in that and that standpoint. But if you look at the spending data, virtually every sort of traditional company with very few exceptions is you're seeing a share shift to the cloud. VMware is an exception. It didn't use to be that way a couple of years ago, but you're embracing the cloud really changed and became, you may cloud a tailwind right now to headwind. >>I think this partnership helped in that area and you put it right, right. Everything in life is either an opportunity or a threat. I think, and I've talked about it in your show before, cloud and containers were a significant threat. When I joined Amazon, sorry, when I was partners with Amazon, I joined VMware six years ago. I asked Pat and I said, listen, I think the threats to VMR, Amazon and Docker in 2013 now Docker is a whole different story. Kubernetes took their head out. Uh, but to our credit we joined credit, we partnered here and I think from our perspective, see, we at VMware aren't able to do a complete pivot like Adobe did to say burn the boats on, on premise and completely shift everything. SAS. Why? Because customers still want NSX on prem. Customers still want our HCI product on prem. People are still buying vSphere on prem. >>So we've got this more delicate balance of starting to shift and on-prem business. The aircraft carrier, you know at the time, 5,000,000,005, six years ago now, 11 billion to something that's a blend of on prem and cloud. While the cloud part grows a lot faster, that 13% of revenue we announced our earnings call is growing 40% yeah. So we can keep that growing foster and foster while the on-prem business is not decaying, it's still growing but not growing at the same pace, plus changing its end, make that transition a few years from now to being a lot more of a cloud company. >>The other thing you're seeing in the spending data, I wonder if you could comment is, you know, digital initiatives really started in earnest, let's say 2016 and people were doing a lot of experimentation. They were throwing everything for the new stuff against the wall. And what we're seeing now is they're narrowing the new and they were keeping the legacy stuff around because they were sort of running in parallel to hedge their bets. What we're seeing now is less experimentation in the new, and they're starting to unplug some of the older stuff. What they're not unplugging is cloud and they're hanging on to VMware and we're seeing, you know, spending levels revert to pre 2018 levels. I wonder what you guys are seeing at the macro. >>Well, the first thing I would say is I see experimentation continuing to accelerate, right? All of the new functionality that we bring out every day. Everybody's excuse, you're the sandbox for us. It's very invigorating because we love people to experiment and, uh, and we, you know, a lot of those experiments turned into amazing new startups as an example. And, or a bunch of those experiments turned into major new project projects in our, in our big, uh, enterprises. So we're continuing to see a real push towards experimentation and driving agility into the business. I don't know. Yeah, >>no, I, well, Mike, I'd agree. I mean, listen, we in some senses, uh, we have a very good strong, you know, on-premise business and when we see a really innovative company that's in the order of 33 35%, that's already 35 three 35 billion growing in the forties 30 to 40% I mean that's incredible. When we see companies like Salesforce and Adobe that are giant SAS companies approaching, you know, 10 1115 20 billion growing 2020 5% I think that infrastructure is a service and SAS business for us are trailblazers of where this cloud is headed now, these, the biggest companies in infrastructure and in SAS and we follow that. Now we have to then navigate to say, listen, the growth rates and the spending is going to be reflected by cloud spend that's heavily spending on there. And the way in which the on premise world is what spending, we have a bunch of hardware companies, we work very closely. >>We're watching how that spending is, is playing OD, whether it's Cisco, whether it's HP, whether it's Lenovo, Dell and others. And then of course we've got VM. We're sitting right in between and I think what we're trying to manage as you got a whole world of on-prem driven primarily by hardware companies. You've got a bunch of these cloud new companies, Amazon, Salesforce, Adobe, and we have a right in the middle saying, okay, listen, we want to be dragged by both while many of our customers still want some on prem. It's a delicate balance, but there's no, um, I mean we are very clear within VMware. We want to be led by a cloud first policy wherever we can. I'll give you an example. Workspace one, manage these devices. We want a company five years ago named AirWatch, why did we buy them versus somebody else? >>It was cloud. It was cloud-first that business now and use a computing has stilted itself to be primarily cloud-based, very subscription-based. It was on premise VDI at the time Mike was at the company six, seven years ago. It's become now completely cloud based on the back of a workspace one, you know, kind of thing. So that's how we're thinking about it. The new acquisitions we've done, whether it's carbon black, whether it's Velo club, it's CloudHealth. They're all cloud-based. Well, you guys made a good bet on cloud operations. That's the real shift. The cloud operation model is right in your wheelhouse. You guys have operators, VMware, you guys have cloud operations everywhere now edge with outpost. Congratulations. I want to say, Sanjay, it's been a great journey with you. You've been with the cube all 10 years. All seven years. We've been actually the 10 year anniversary. >>We've been documenting the history. Wow. The historic moments like you guys together writing AWS, really appreciate it. and of course that was good to see more action coming. Cloud 2.0 next gen. Cloud competition controversies. I mean what? You can't ask for a better movie here. John. Dave, I'm going to, we're going to bring mugs next time. Okay. We're going to have mugs.. I'm John for Dave a lot. They saw Jay Poon and Mike Clayville, the leaders, senior leaders of AWS and VMware out with their customers here on the queue. This is our AWS Intel set in the middle of the floor here at reinvent 2019 our seventh year. Thanks for watching more coverage day two of the queue. We'll be right back.

>> 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 back to the cubes Live coverage Of'em World 2019 in San Francisco, California We're here at Mosconi North Lobby. Two sets. Jumper of my Coast. David wanted Dave 10 years. Our 10th season of the cue coming up on our 10 year anniversary May of 2020. But this corner are 10 years of the Cube. Our next guest is Sanjay Putting Chief Operating Officer Of'em where who took the time out of his busy schedule to help us do a commemorative look back. Thanks for coming to our studio. Hello, John. That was great. Fans of yours was really regulations on the 10 year mark with the, um well, we really appreciate your partnership. We really appreciate one. Things we love doing is covering as we call that thing. David, I coined the term tech athletes, you know, kind of the whole joke of ESPN effect that we've been called and they're really tech athlete is just someone who's a strong in tech always fighting for that extra inch. Always putting in the hard work discipline, smart, competitive. You get all that above. Plus, you interviewed athletes today on state real athletes. Real athletes, Tech show. So I guess they would qualify as Tech athlete Steve Young. That's pretty funny. It was a >> great time. We've been trying to, you know, Veum World is now the first time was 2004. So it's 1/16 season here, and traditionally many of these tech conference is a really boring because it's just PowerPoint dead by power point lots of Tec Tec Tec Tec breakout sessions. And we're like, You know, last year we thought, Why don't we mix it up and have something that's inspirational education We had Malala was a huge hit. People are crying at the end of the session. Well, let's try something different this year, and we thought the combination of Steve Young and Lyndsey one would be great. Uh, you know, Listen, just like you guys prepped for these interviews, I did a lot of prep. I mean, I'm not I'm a skier, but I'm nowhere close to an avid skier that watch in the Olympics huge fan of Steve Young so that part was easy, but preparing for Lindsay was tough. There were many dynamics of that interview that I had to really think through. You want to get both of them to converse, you know, he's She's 34 he's 55. You want to get them to really feel like it's a good and I think it kind of played out well. >> You were watching videos. A great prep. Congratulations >> trying t o show. It's the culture of bringing the humanization aspect of your team about tech for good. Also, you believe in culture, too, and I don't get your thoughts on that. You recently promoted one of your person that she has a chief communications Johnstone Johnstone about stars you promote from within. This >> is the >> culture you believe it. Talk about the ethos. Jones is a rock star. We love her. She's just >> hardworking, credible, well respected. Inside VM where and when we had a opening in that area a few months ago, I remember going to the her team meeting and announcing, and the team erupted in cheers. I mean that to me tells me that somebody was well liked from within, respected within and pure level and you know the organization's support for a promotion of that kind of battlefield promotion. It's great big fan of hers, and this is obviously her first show at Vienna. Well, along with Robin, Matt, look. So we kind of both of them as the chief marketing officer, Robin and Jones >> and Robinson story. Low Crawl made her interim first, but they then she became Steve Made it Permanent way. >> Want them to both do well. They have different disciplines. Susan, uh, national does our alliances, you know, if you include my chief of staff for the six of my direct reports are women, and I'm a big believer in more women. And take why? Because I want my Sophia, who's 13 year old do not feel like the tech industry is something that is not welcome to women in tech. So, you know, we really want to see more of them. And I hope that the folks who are reporting to me in senior positions senior vice president is an example can be a role model to other women who are aspiring, say, one day I wanna be like a Jones Stone or Robin. Madam Local Susan Nash, >> John and I both have daughters, so we're passionate about this. Tech is everywhere, so virtually whatever industry they go into. But I've asked this question Sanjay of women before on the Cube. I've never asked him in. And because you have a track record of hiring women, how do you succeed in hiring women? Sometimes way have challenges because way go into our little network. Convenient. What? What's your approach? Gotta >> blow off that network and basically say First off, if that network is only male or sometimes unfortunately white male or just Indian male, which is sometimes the nature of tech I mean, if you're looking for a new position, tell the recruiters to find you something that's different. Find me, Ah woman. Find me on underrepresented minority like an African American Latino and those people exist. You just have a goal. Either build a network yourself. So you've got those people on your radar. We'll go look, and that's more work on us, says leaders. But we should be doing that work. We should be cultivating those people because the more you promote capable. First off, you have to be capable. This is not, you know, some kind of affirmative action away. We want capable people. Someone shouldn't get the job just because they're a woman just because the minority, that's not the way we work. We want capable people to do it. But if we have to go a little further to find them, we'll go do it. That's okay. They exist. So part of my desires to cultivate relationships with women and underrepresented minorities in the world that can actually in the world of tech and maintain those relationships because you never know you're not gonna hire them immediately. But at some point in time, you might need to have them on your radar. >> Sanjay, I wanna ask you a big picture question. I didn't get a chance to ask path this morning. I was at the bar last night just having a little dinner, and I was checking out Twitter. And he said that the time has never been. It's never been a greater time arm or important time to be a technologist. Now I saw that I went interesting. What does that mean? Economic impact, social impact? And I know we often say that, and I don't say this to disparage the comment. It's just to provide historical context and get a get it open discussion about what is actually achievable with tech in this era and what we actually believe. So I started to do some research and I started right down. First of all, I presume you believe that right on your >> trusty napkin at the >> bar. So there has never been a more important time to be a technologist. You know, it's your company at your league. You know, Pat, I presume you agree with it. Yeah, absolutely. I slipped it back to the 1900. Electricity, autos, airplanes, telephones. So you we, as an industry are up against some pretty major innovations. With that historical context, Do you feel as though we can have a similar greater economic and social impact? >> Let's start with economic first and social. Next time. Maybe we should do the opposite, but economic? Absolutely. All those inventions that you >> have are all being reinvented. The technology the airplanes all been joined by software telephones are all driving through, you know, five g, which is all software in the future. So tech is really reinventing every industry, including the mundane non tech industries like agriculture. If you look at what's happening. Agriculture, I ot devices are monitoring the amount of water that should go to particular plant in Brazil, or the way in which you're able to use big data to kind of figure out what's the right way to think about health care, which is becoming very much tech oriented financial service. Every industry is becoming a tech industry. People are putting tech executives on their boards because they need an advice on what is the digital transformations impact on them cybersecurity. Everyone started by this. Part of the reason we made these big moves and security, including the acquisition of carbon black, is because that's a fundamental topic. Now social, we have to really use this as a platform for good. So just the same way that you know a matchstick could help. You know, Warm house and could also tear down the house. Is fire good or bad? That's been the perennial debate since people first discovered fire technology. Is this the same way it can be used? Reboot. It could be bad in our job is leaders is to channel the good and use examples aware tech is making a bit force for good. And then listen. Some parts of it may not be tech, but just our influence in society. One thing that pains me about San Francisco's homelessness and all of the executives that a partner to help rid this wonderful city of homeless men. They have nothing to attack. It might be a lot of our philanthropy that helps solve that and those of us who have much. I mean, I grew up in a poor, uh, bringing from Bangla, India, but now I have much more than I have. Then I grew up my obligations to give back, and that may have nothing to do with Tech would have to do all with my philanthropy. Those are just principles by which I think when you live with your a happier man, happier woman, you build a happier >> society and I want to get your thoughts on common. And I asked a random set of college students, thanks to my son that the network is you said your daughter to look at the key to Pat's King Pat's commentary in The Cube here this morning that was talking about tech for good. And here's some of the comments, but I liked the part about tech for good and humanity. Tech with no purpose is meaningless tech back by purposes. More impactful is what path said then the final comments and Pat's point quality engineering backing quality purpose was great. So again, this is like this is Gen Z, not Millennials. But again, this is the purpose where it's not just window dressing on on industry. It's, you know, neutral fire. I like that argument. Fire. That's a good way Facebook weaponizing Facebook could be good or bad, right? Same thing. But the younger generation. You're new demographics that are coming into cloud. Native. Yeah, what do you think? >> No. And I think that's absolutely right. We have to build a purpose driven company that's purposes much more than just being the world's best softer infrastructure company or being the most profit. We have to obviously deliver results to our shareholders. But I think if you look at the Milton Friedman quote, you know, paper that was written that said, the sole purpose of a company is just making profits, and every business school student is made to read that I >> think even he >> would probably agree that listen today While that's important, the modern company has to also have a appropriate good that they are focused on, you know, with social good or not. And I don't think it's a trade off being able to have a purpose driven culture that makes an impact on society and being profitable. >> And a pointed out yesterday on our intro analysis, the old term was You guys go Oh, yeah, Michael Dell and PAD shareholder value. They point out that stakeholder value, because now the stakeholder Employees and society. So congratulations could keep keep keep it going on the millennial generation. >> Just like your son and our kids want a purpose driven company. They want to know that the company that working for is having an impact. Um, not just making an impression. You do that. It shows like, but having an impact. >> And fire is the most popular icon on instagram. Is that right? Yeah, I know that fire is good. Like your fire. Your hot I don't know. I guess. Whatever. Um fire. Come comment. There was good Sanjay now on business front. Okay, again, A lot of inflection points happen over 10 years. We look back at some of this era, the Abel's relationship would you know about. But they've also brought up a nuance which we talked about on the intro air Watch. You were part of that acquisition again. Pig part of it. So what Nasiriyah did for the networking STD see movement that shaped VM. Whereas it is today your acquisition that you were involved and also shaping the end user computing was also kind of come together with the cloud Natives. >> How is >> this coming to market? I mean, you could get with >> my comparison with carbon black there watch was out of the building. Carbon black is not considered. >> Let's talk about it openly. And we talked about it some of the earnings because we got that question. Listen, I was very fortunate. Bless to work on the revitalization of end user computing that was Turbo charged to the acquisition of a watch. At that time was the biggest acquisition we did on both Nice era and air watch put us into court new markets, networking and enterprise mobility of what we call not additional work space. And they've been so successful thanks to know not just me. It was a team of village that made those successful. There's a lot of parallels what we're doing. Carbon, black and security. As we looked at the security industry, we feel it's broken. I alluded to this, but if I could replay just 30 seconds of what I said on some very important for your viewers to know this if I went to my doctor, my mom's a doctor and I asked her how Doe I get well, and she proposed 5000 tablets to me. Okay, it would take me at 30 seconds of pop to eat a tablet a couple of weeks to eat 5000 tablets. That's not how you stay healthy. And the analogy is 5000 metres and security all saying that they're important fact. They use similar words to the health care industry viruses. I mean, you know, you and what do you do instead, to stay healthy, you have a good diet. You eat your vegetables or fruit. Your proteins drink water. So part of a diet is making security intrinsic to the platform. So the more that we could make security intrinsic to the platform, we avoid the bloatware of agents, the number of different consuls, all of this pleasure of tools that led to this morass. And what happens at the end of that is you about these point vendors, Okay, Who get gobbled up by hardware companies that's happening spattered my hardware companies and sold to private equity companies. What happens? The talent they all leave, we look at the landscape is that's ripe for disruption, much the same way we saw things with their watch. And, you know, we had only companies focusing VD I and we revitalize and innovative that space. So what we're gonna do in securities make it intrinsic and take a modern cloud security company carbon black, and make that part of our endpoint Security and Security Analytics strategy? Yes, they're one of two companies that focus in the space. And when we did air watch, they were number three. Good was number one. Mobile line was number two and that which was number three and the embers hands. We got number one. The perception in this space is common. Lacks number two and crowdstrike number one. That's okay, you know, that might be placed with multiple vendors, but that's the state of it today, and we're not going point against Crowdstrike. Our competition's not just an endpoint security point to a were reshaping the entire security industry, and we believe with the integration that we have planned, like that product is really good. I would say just a cz good upper hand in some areas ahead of common black, not even counting the things we're gonna integrate with it. It's just that they didn't have the gold market muscle. I mean, the sales and marketing of that company was not as further ahead that >> we >> change Of'em where we've got an incredible distribution will bundle that also with the Dell distribution, and that can change. And it doesn't take long for that to take a lot of customers here. One copy black. So that's the way in which we were old. >> A lot of growth there. >> Yeah, plenty of >> opportunity to follow up on that because you've obviously looked at a lot of companies and crowdstrike. I mean, huge valuation compared to what you guys paid for carbon black. I mean, >> I'm a buyer. I mean, if I'm a buyer, I liked what we paid. >> Well, I had some color to it. Just when you line up the Was it really go to market. I mean some functions. Maybe not that there >> was a >> few product gaps, but it's not very nominal. But when you add what we announced in a road map app, defensive alderman management, the integration of works based one this category is gonna be reshaped very quickly. Nobody, I mean, the place. We're probably gonna compete more semantic and McAfee because most of those companies that kind of decaying assets, you know, they've gotten acquired by the companies and they're not innovating. So I'd say the bulk of the market will be eating up the leftover fossils of those sort of companies as as companies decided they want to invest in legacy. Technology is a more modern, but I think the differentiation from Crowdstrike very clear is we integrate these, these technology and the V's fear. Let me give an example. With that defense, we can make that that workload security agent list. Nobody can do that. Nobody, And that's apt defense with carbon black huge innovation. I described on stage workspace one plus carbon black is like peanut butter and jelly management. Security should go together. Nobody could do that as good as us. Okay, what we do inside NSX. So those four areas that I outlined in our plans with carbon black pending the close of the transaction into V sphere Agent Lis with workspace one unified with NSX integrated and into secure state, You know, in the cloud security area we take that and then send it through the V m. Where the devil and other ecosystem channels like you No idea. Security operative CDW You know, I think Dimension data, all the security savvy partners here. I think the distribution and the innovation of any of'em were takes over long term across strike may have a very legitimate place, but our strategy is very different. We're not going point tool against 0.0.2 wish reshaping the security industry. Yeah, What platform? >> You're not done building that platform. My obvious question is the other other assets inside of Arcee and secureworks that you'd like to get your hands on. >> I mean, listen, at this point in time, we are good. I mean, it's the same thing like asking me when we acquired air watching. Nice Here. Are you gonna do more networking and mobility? Yeah, but we're right now. We got enough to Digest in due course you. For five years later, we did acquire Arkin for network Analytics. We acquired fellow Cloud for SD when we're cloud recently, Avi. So the approach we take a hammer to innovations first. You know, if you're gonna have an anchor acquisition, make sure it's got critical mass. I mean, buying a small start up with only 35 people 10 people doesn't really work for us. So we got 1100 people would come back, we're gonna build on it. But let's build, build, build, build, partner and then acquire. So we will partner a lot with a lot of players. That compliment competition will build a lot around this. >> And years from now, we need >> add another tuck in acquisition. But we feel we get a lot in this acquisition from both endpoint security and Security Analytics. Okay, it's too early to say how much more we will need and when we will need that. But, you know, our goal would be Let's go plot away. I have a billion dollar business and then take it from there. >> One more security question, if I may say so. I'm not trying to pit you against your friends and AWS. But there are some cleared areas where your counter poise >> Stevens just runs on eight of us comin back. >> That part about a cloud that helps your class ass business. I like the acquisition. But Steven Schmidt, it reinforced the cloud security conference, said, You know, this narrative in the industry that security is broken is not the right one. Now, by the way, agree with this. Security's a do over pat kill singer. And we talked about that for five years ago. Um, but then in eight of you says the shared security model, when you talk to the practitioners like, yeah, they they cover, that's three and compute. But we have the the real work to d'oh! So help me square that circle. >> Yeah, I think if aws bills Security Service is that our intrinsic to their platform and they open up a prize, we should leverage it. But I don't think aws is gonna build workload security for azure compute or for Gogol compute. That's against the embers or into the sphere. Like after finishing third accordion. And they're like, That's not a goal. You go do it via more So from my perspective. Come back to hydrogen. 80. If there's a workload security problem that's going to require security at the kernel of the hyper visor E C to azure compute containers. Google Compute. >> Who's gonna do >> that? Jammer? Hopefully, hopefully better than because we understand the so workloads. Okay, now go to the client site. There's Windows endpoints. There's Mac. There's Lennox. Who should do it? We've been doing that for a while on the client side and added with workspace one. So I think if you believe there is a Switzerland case for security, just like there was a Switzerland case for management endpoint management I described in Point management in Point Security going together like peanut butter and jelly, Whatever your favorite analogy is, if we do that well, we will prove to the market just like we did with their watch An endpoint management. There is a new way of doing endpoint security. Dan has been done ever before. Okay, none >> of these >> guys let me give an example. I've worked at Semantic 15 years ago. I know a lot about the space. None of these guys built a really strategic partnership with the laptop vendors. Okay, Del was not partnering strategically on their laptops with semantic micro. Why? Because if this wasn't a priority, then they were, you know, and a key part of what we're doing here is gonna be able to do end point management. And in point security and partner Adult, they announced unified workspace integrated into the silicon of Dell laptops. Okay, we can add endpoint security that capability next. Why not? I mean, if you could do management security. So, you know, we think that workspace one, we'll get standing toe work space security with the combination of workspace one and security moving and carbon black. >> Sanjay, we talked about this on our little preview and delivery. Done us. We don't need to go into it. The Amazon relationship cleared the way for the strategy in stock price since October 2016 up. But >> one of the >> things I remember from that announcement that I heard from the field sales folks that that were salespeople for VM wear as well as customers, was finally clarity around. What the hell? We're doing the cloud. So I bring up the go to market In the business side, the business results are still strong. Doing great. You guys doing a great job? >> How do you >> keep your field troops motivated? I know Michael Dell says these are all in a strategy line. So when we do these acquisitions, you >> had a lot >> of new stuff coming in. I mean, what's how do you keep him trained? Motivated constantly simplifying whenever >> you get complex because you add into your portfolio, you go back and simplify, simplify, simplify, make it Sesame Street simple. So we go back to that any cloud, any app, any device diagram, if you would, which had security on the side. And we say Now, let's tell you looking this diagram how the new moves that we've made, whether it's pivotal and what we're announcing with tanz ou in the container layer that's in that any Apple air carbon black on the security there. But the core strategy of the emer stays the same. So the any cloud strategy now with the relevance now what, what eight of us, Who's our first and preferred partner? But if you watched on stage, Freddie Mac was incredible. Story. Off moving 600 absent of the N word cloud made of us Fred and Tim Snyder talked about that very eloquently. The deputy CTO. They're ratty Murthy. CTO off Gap basically goes out and says, Listen, I got 800 APS. I'm gonna invest a lot on premise, and when I go to the cloud, I'm actually going to Azure. >> Thanks for joining you. Keep winning. Keep motivated through winning >> and you articulate a strategy that constantly tells people Listen. It's their choice of how they run in the data center in the cloud. It's their choice, and we basically on top of all of those in the any cloud AP world. That's how we play on the same with the device and the >> security. A lot of great things having Sanjay. Thanks >> for you know what a cricket fan I am. Congratulations. India won by 318 goals. Is that >> what they call girls run against the West Indies? I think you >> should stay on and be a 40 niner fan for when you get Tom baseball get Tom Brady's a keynote will know will be in good Wasn't Steve Young and today love so inspirational and we just love them? Thank you for coming on the Cube. 10 years. Congratulations. Any cute moments you can point out >> all of them. I mean, I think when I first came to, I was Who's the d? I said ASAP, like these guys, John and Dave, and I was like, Man, they're authentic people. What I like about you is your authentic real good questions. When I came first year, you groomed me a lot of their watch like, Hey, this could be a big hat. No cattle. What you gonna do? And you made me accountable. You grilled me on eight of us. You're grilling me right now on cloud native and modern, absent security, which is good. You keep us accountable. Hopefully, every you're that we come to you, we want to show as a team that we're making progress and then were credible back with you. That's the way we roll. >> Sanjay. Thanks for coming. Appreciate. Okay, we're live here. Stay with us for more of this short break from San Francisco v emerald 2019

>> Live, from Washington DC it's the Cube. Covering AWS Public-Sector Summit. Brought to you by Amazon Web Services. >> Welcome back everyone to AWS public sector here in Washington DC, the Cube's live coverage, two-day coverage, I'm your host, Rebecca Knight. Co-hosting alongside John Ferrier, and we are welcoming back to the Cube, 13 time Cube alum, Sanjay Poonen in the COO of VM-Ware. Thank you so much for coming back on the show >> VIP status, by the way. >> Yes, absolutely. >> Thank you, Rebecca. >> That's definitely VIP status. >> Yes we have a red carpet rolled out >> Delighted to be here. I've lost track of the number of times, but when you're having fun it's good. >> Exactly, so tell us a little bit about what is VM-ware's role here in the public sector, what are you doing here at this conference? >> VM-ware and AWS announced a partnership in October 2016, and it really was the coming together of the best in the public cloud, with the best in the private cloud for what we describe as the hybrid cloud opportunity. And the past two and a half years, coming up on three years pretty soon, has been incredibly exciting. We started off with some of the key industries that we felt, for us, the public sector is among our top three industries. But financial services, telco, public sector, healthcare, manufacturing, all the key industries, technology, we're looking for ways by which they could take their applications into the cloud without having to re-factor and re-platform those applications. That's a big deal because it's wasted of work, if you can lift and shift and then innovate. And that's the value we brought to the public sector and some of our earliest customers, were customers in the public sector like MIT, schools, most of the regulated industries. In the on premise world, we're very strong in almost every, civilian, military, the legislative advance, the judicial advance, the federal agency, all of them use us. Millions and millions of work loads. The question really is how is they think about modernization can they get the best manifesto of the public cloud while leveraging their VM footprint >> So some would say that modernization may not include the original VM-ware vision because a lot of the governments are tryna replace and equated old systems like coldblow, mainframes, whatever, but you guys have been around dominated the operating side of IT for a while so you're kind of seeing the first wave of virtualization, the first wave of modernization but there's some cloud native people they might see that as like "Whoa, is that old school?" So what is particular perspective on that innovation dynamic? Because a lot of the public sector investors are awakening now going "Oh my god, I can move fast with Cloud" So Cloud is bringing on a new set of disruptors in IT, you guys have already been there on the first wave of disruption, so how do balance that kind of presence, >> Yeah >> But also disruption, you might be viewed that way, I'm not sure. >> Yeah, I would say, actually, that the first wave of our free reign modernization started with this device before Cloud. Okay, in 2007 when the iPhone came out there was a significant move by big parts of the public sector to move away from blackberry, which is kind of what they use for the decade prior to that. And when we brought AirWatch, we began to see some of the earliest industries that were adopting the public sector. Many of the agencies started to look at us now, so we actually began our journey into this modernization discussion in the workplace transformation, part of the discussion before we got to Cloud. So we were prepared for some of what that looked like, for example, census 2020 that entire for all the workers something is being done with mobile devices now as opposed to paper or surveys that were done maybe 10, 20 years ago, and all powered and secured by Workspace ONE. Now, when it got to Cloud we were prepared for that because, you know, we knew a little bit of what that meant and mobile and Cloud were some of the two top discussion items that people were talking about as modernization at first under the banner of digital transformation. We had to begin to showcase to a customer that moving an application, now we're talking clients server three tier architectures as opposed to a cobalt mainframe that's really where we have but the bulk of the 886 architecture that's from virtualized VM-ware if you could take them now to the cloud and then use some of the services that these guys are building whether it's data based, whether it's artificially intelligence, machine learning, if you waste all your time in re-platforming and re-marketing an application it's that much less time you have to do some of those innovative things. And the lift and shift process once we had this sort of highway into the Cloud, so to speak, which is what VM-ware Cloud and AWS does, it became so apparent, so we are that process, we had to then work what we can talk about Fred RAM certification all of these things that I'm (inaudible) >> In AirWatch was really a critical acquisition, turns out a boom for you guys with public sector. >> Oh yeah. >> You guys had the iPhone was a driver not so much the blocking and tackling of virtualizing data centers and IT, which you had a presence in, but it was the mobility piece. >> Well since 1998, 99, since the company was founded, the public sector business of VM-ware has been very important, I mean I would say, like I said it's the top three and so, we have tremendous amount of relationships some of our biggest deals. Eight figures plus deals where done with some of the biggest and many of our partners here. >> So it's a large business. >> Large business. >> Did you break that in the numbers? >> We did but we have always said it so a top three, we have always talked about in our earnings calls, some big, large customer examples like US Army, and then , which is also a sort of representative of this community here. Safe, local education. All the universities are using us. So the footprint of VW-ware premise was well documented, well understood, lots of spent going on there. What we didn't have an access to, we had some virtual desktops, VDIs. This mobile aperture gave us a whole new banner of spending. But then the Cloud aperture is kind of taking this to a whole new level. And quite frankly if you look at the commercial sector, the overall IT spent in the world is about one trillion we track and about 150 to 200 billion of that, 15 to 20 % is being spent on the Cloud. And the public sector, governs sector is starting to track that, they are probably a little bit lagging in certain areas to commercial. But that 15 to 20 % is only going to get 30 or 40 % in the next five years. VM-ware has been one the top infrastructure companies, we are looking at our move, a bigger part of the wall of share that we gain as people move their investment to the Cloud. >> When you are thinking about the different clients and customers that you're working with, the Sled groups and then the corporate customers, what-how different are they and how, what's on the public sector's mind versus your corporate clients? And how do you manage the relationships differently? >> Yeah, we have sort of segment them at VM-ware and many companies have done the same thing into three pockets. One is who we describe as the federal public sector customers that are civilian, military and we mirror that in almost every country so Theresa here, for example, runs AWS and we have a similar type of work structure to hear in each of the key regions. The second big segment is healthcare, many of the healthcare organizations are regulated there's similar characteristics and the third is SLED, state local education. And those three pockets are very similar patterns in the way in which they buy, their CIOs are similar and they also have often very similar security requirements. So the highest maybe something like a FED and FedRAMP and we some specialized needs that they have for certain certifications on the device or certifications on the Cloud and we have to comply with all of those. But then as you get to the ones that are in the state local maybe they don't as many and higher certifications but what it's helped is to basically work with partners with a very similar across this, and the proposition on the initial transformation is really modernization of either the data center and their applications or modernization of the device. And VM-ware is very uniquely provisioned to help on both those fronts. >> And security is really top of mind >> Absolutely >> I mean we've heard on the main stage and we know how big a threat these cyber threats face. These Cyber threats pose. >> Absolutely, and if you think about aspects of security. Security has multiple aspects of where you can think of them as control points. The network, the end-point, the cloud, identity and lots of event management that is collected. These are the five biggest markets of security. In each of those areas VM-ware is starting to play more. For example, network, you know, five, six years ago people didn't think of VM-ware in that area but with NSX our leading software define networking area, we have become the lead on that segment and about half of our use cases are security related for a use case called micro-segmentation. So the government can basically segment out a set of their apps and through software, think of these as on-off switches almost like light switches only allow certain apps to access certain parts of the data center. That's very easily done through NSX. Workspace ONE, the endpoint can now be extremely secure and provide all the levels of security that Blackware provided in their proprietary devices but now on any device. So we've been systematically looking at each of these areas I would estimate about 15 to 20 % of VM-ware revenue is security related use cases and public sector this is a very, very key place where we get grilled on and we have to satisfy their level of requirements for security. >> Sanjay, what are you doing here? I know you said you are speaking at a panel, Fireside chat, what's your agenda of the week? What's the story? What some of the key talking points for VM-ware? >> VM-ware is one of the top sponsors here, I don't know whatever is global or platinum or whatever the highest level is, you will see our name's there. And largely what we did when we announced this partnership was, you know, Andy and I were classmates at school. We wanted to build a very close partnership at their big events, so you will see us at all the major summits. VM-ware is a top sponsor, and you'll see them also at >> Doubling down on the relationships. >> Yep, we're doubling down. And they're doing the same at VM-world, so we said "Listen" and I think I talked about this in one of your previous shows. If you can mingle, VM-ware has collectively about 100,000 people that come to all the VM-ware events across the world and maybe about half a million to people who watch those events online. Amazon has probably twice that number. But if we can mingle each other audiences because they are coming off into both shows and we, the best showing up at AWS summits and we'll give them lots of access to VM-world. >> Ups* >> (laughs) There we go. >> Operations >> Hey, that's got a ring to it. I like it >> That's exactly the vision. So we, first of all, VM-ware is a big presence and the acquisition we've done, also, like Cloud helped also has a big presence, so that's one. Number two, we try as often as possible to have either a key note or some kind of Provence, I've had a good friendship with Theresa. She invited me to speak, I think there's an event with their top five hundred customers, sort of a key note inside that. And I do that a little later this afternoon. And it's also a tremendous opportunity, I think they have 13 or 15,000 attendees here to meet some of our top customers, so those are the three things that I'm doing over the course of the next day and a half. >> You got the CIA deal 2013, what that has done, in gestation period since then, a lot of other folks in the DC circuit here, public sector, government, agencies, they are all going "Hmm, Amazon has got the right formula" so Theresa put the formula together, people are adopting it, you guys do the strategic deal with AWS with your AA gown on, as a student of the game if you will in tech, Sanjay, which you are, knowing what you know now at VM-ware what's your perspective on this? Because you got a big tail wind with Cloud, you get clarity in what you guys do, in what AWS does, you also have multi Cloud with other Clouds, I mean you got NSX with a nice product, you got multi Cloud built-in hybrid, I mean, pretty good at spot for VM-ware for public sector. What's your perspective on this? >> Yeah, two parts to your question. First off, tremendous respect for Andy. I was describing before I go out on the show with both of you, when we were in school, I wouldn't have put him, in 1987 when we graduated, as the person who would of been the pied piper of this public Cloud revolution. But kudos to him, Theresa a fantastic executive and I think that, you know, 2013 CIA deal put them on an incredible place to be, a front runner in this and many other deals they've done similarly. VM-ware, we saw over the last, you know, 3, 4, 5 years is a significant rise of Amazon in our accounts. Customers were asking us "Why can't we get the best of both worlds? Why does it have to be on premise runs and VM-ware and public lines and I've got to portent and refactor and re platform my applications?" So our customers drove a us together and what we've sort to do in our relationship with Amazon is we meet on a quarterly basis, we review feature and function, product road map, we're aggressive, with our sales teams are trying to pursue opportunities together. And that's really helped us, you know, that's part of the reason I'm here, so, the more that we can do together to satisfy customers, customers like seeing big partners come together, even if, it feels a little bit like Berlin wall moment, right? You remember 1987? You had the US and Soviet Union and people were surprised by that. I that that the general consensus was complete surprise in 2016 when we announced the project with Amazon. But with every move we made like for instance, recently we announced the FedRAM status, one of our biggest 8 figure deals we had announced in our queue for was with a major customer that's in this segment, actually. Our public sector SLED and the more that we can do this, I think there's a lot of future ahead of us. >> Berlin is interesting, you know, tearing down that wall that was a moment that came down and the government, the theme that we are hearing over and over again is red tape. Lag with data it hurts application work loads so fast data, make it available, cut the read tape out of procurement, I mean, basically, 1980s, 1990s, procurement rules don't apply to how people consume and deploy technology today. >> Yeah, absolutely. >> Tear down that red tape. >> I think you got that right. I think the governments mandate to go Cloud first in the, you know, last several administrations was absolutely key and certain elementary work loads like websites, I mean why, so if it's a public website that's holding public information, I mean, of course, you've got to worry about security but the data public anyway. Okay, so, what's going to get hacked? I mean, why don't you move all websites that are web content, so some of those early work loads are moved over very easy. I would call it so, the 1-O-1 of posting. Why would you want to have server just to host a website? But once that's done the more mission critical applications, Windows work loads, Oracle's sequel service databases, Virtual desktops, now you are starting to see and I think eventually some of the more mission critical apps like SAP or Oracle apps, I think you see them also now with a lot of customers in both public sectors and commercial- >> Military DOD tactical edges, >> Absolutely. >> The military lives are on the line, it's not a video game, lag actually will kill people. So you want to have that application peaked. >> Exactly. >> With the right architect >> One of the things that are so inspiring about being here at the public sector summit is that we are seeing all these used cases, of using the Cloud for good to solve pressing environmental challenges, health challenges, social challenges, what are you seeing, what is VM-ware working on that is, that is particularly inspiring to you? >> I am glad you asked that Rebecca. I would say that's one the things and Amazon shares a similar value where we think that, you know, technology companies have to think beyond themselves and be a force for good. I think that one of the first times at any major conference, last year we had the Nobel Peace Prize winner who's changed the world, Malala, come and speak and I think everyone who comes to major tech conferences, and we had one of the biggest conferences, was, I mean, we had grown big men, 6 foot tall crying at the end of that. And we had a number of customers that we loved to be able to talk about there stories, Make A wish is an example of an organization that, you know, if someone's with a terminal disease and they want to have some wish that they could wish for, all the infrastructure runs in VM-ware and we can help them serve that audience better, we have a number of charitable organization, Red Cross was on (unintelligible), so we, a big part of pad mind the attire of companies, kind of charter in our EPICC values has been people of integrity, people of work with the customers and the community. Our values EPICC stands for execution, passion, integrity customer and community. And that last C I think is very important, cause, you know, we live in a world and the more important thing is not necessarily how much money you make but what a force you can be for changing people's life. That lasts forever. You can't take your money into the grave but the more you can have on people, impact on people's lives, I mean, John, I am delighted to see your daughter. >> Yeah. >> I mean that generation continues >> Well, it's community right? >> And you're passing on those values onto the next generation or helping people that's the bigger story of life and that gets us equally excited as innovation. >> Communities can now be instrumented via digital technologies, so your faster time to find truth, people who have communities were very active, the data is there, it's all in the data and so you can see the impact >> You know, I think that's absolutely key. So John, I would agree with you and I think you as, you know, you talk to companies that's an important question to ask them. Because we are all in this together. There is no whether it's competitors or what's not, we can all serve the greater community, here for good and make this world a better place, you know there is a lot of what we do that helps the world run better, that's good, infrastructure helps us run better, but helping the world be a better place, it takes both individual and collective will. >> Well one of the talent gaps is not just computer programming and tech people it's architects for the new society that needs help and these key policy questions like governance and responsibilities, you're seeing YouTube and Facebook and our neck of the woods responsible for all this impact and they don't really kind of, there's no oversight. (laughs) >> Well, listen I'm not going to get into the public debate about, you know, privacy and governance and so on. I would say that one thing that, you know, we're also really excited to kind of give back to the community in terms of education. One of the things that is very powerful to VM-ware is our user groups. We call them V-mugs, VM-ware user groups and there's collectively about 150, 200000 of them and it's amazing when you spend time with them, they are really, really, they are members of the community really because they're customers and partners and they dedicate their time to educating others and the more that we can use online forums, I love the way in which you're using your online platform with the AI and other techniques. I think artificial intelligence becomes the ground equalizer, give access to everybody. >> Access to the voice is access to the data but right now as you pointed out we need a society that's going to have shared values and I think that's like where the good is coming from and it's easy to get on the bad tech band wagon which everyone is on right now but there are examples of tech for good, you mentioned- >> But when you say shared values, is that you, I mean is that possible? >> Well, I think there is, there is an awakening going on now from Silicon Valley where I live and here in DC which it's, it's in my face here because people as tech savvy here as they are in say Silicon Valley, no offense, but those people aren't as tech savvy here as they are in Silicon Valley, they don't go deep on the impact of tech but they see the results of bad tech. So I don't see a lot of a vandalizing going on outside of certain areas around tech for good. So I think there's a lot of great examples, human trafficking, you're seeing tech for hiring, new generations onboard training, skills gap, so efficiencies in healthcare, there is so many areas that tech could be used for good and if people were educated on focusing on that and not the bad, I mean bad's got to eradicated, certainly, I'm not for bad things but maybe there's a lot more good, the good pile is much bigger than the bad pile in tech, so, when I say shared values is recognition of that which is let's get on the same page, there's bad and there's good, have that debate and then apply the tech. >> Yeah, interesting. It's a galvanizing force. >> Well, it's just like any invention whether it's the printing press or the use of fire, I mean, there is good use of it and there's bad use of it. And we got to to find ways by which technology while this debate is going on as to as some of these social media platforms, my fundamental belief is that technology is going to transform society, the reason I came to the United States as an immigrant was to study computer science and I felt like the United States had, you know, when I came to this college I hade never heard of called Dartmouth College in Haven New Hampshire, was very fortunate to have a scholarship to go there but that's because I wanted to study computer science and I felt like computer science could change a lot of the way at which, you know, at that time, I was just trying to program and learn how to, you know, create algorithms but if you look at what transformed every aspect whether it's the mobile device which is really a computer in your pocket or Cloud computing which is kind of bringing the super computer into the Cloud. >> (inaudible) >> I think it's tremendous what we can do and we have to constantly find ways by which artificial intelligence and these forces of, you know, the next part of general mobile, Cloud computing can be used for greater good. >> Did you go to scholarship on full bode with basketball? (all laugh) >> Man, we got the Warriors with two ball games. >> So you are a big Warriors and for the folks that don't know Sanjay, we always used to talk about every time Warriors looking good to stay alive but not looking good >> So sad to see. I mean it's sort of, the last game I was watching last night, it was, it was sad, it was, of course, it was a win but also a loss to see KD go down that way was just absolutely tearful, yeah, but, you know, we have one more game. >> It's going to be hard >> It's going to be hard to, you know, kind of beat the crowd and the crowd is really loud at Oracle and get one more game and then, yeah, I think it'll get to game 7, we'll what happens but it's just great to their heart. >> I'm from Boston so I'm kind of over Golden state but I am sure everyone is over Boston and our red socks and our throw-ins and our pads >> Duck tour has only been 15 months? >> I know exactly! Exactly! We're still- >> There will be a Celtic warriors game >> That would have been so good >> That would have been so good like the Lakers (inaudible) >> It was more recent than that. It was the pads victory, so yeah >> Okay >> Yeah, anyway. Just saying, just saying. Sanjay, thank you so much for coming back on The cube, we look forward to your 14th visit on the show. >> Thank you, Rebecca. Thank you, John. >> I'm Rebecca Knight for John Ferrier, stay tuned for more AWS public sector summit here in Washington DC. (Upbeat Music)

>> live from Las Vegas. It's the queue covering Dell Technologies. World twenty nineteen. Brought to you by Dell Technologies and its ecosystem partners. >> The one Welcome to the Special Cube Live coverage here in Las Vegas with Dell Technologies World 2019. I'm John Furrier with Dave Vellante breaking down day one of three days of wall the wall Coverage - 2 Cube sets. Uh, big news today and dropping here. Dell Technology World's series of announcements Cloud ability, unified work spaces and then multi cloud with, uh, watershed announced with Microsoft support for VMware with Azure are guests here theCUBE alumni that Seo, senior leader of'Em Where Sanjay *** and such a great to see you, >> John and Dave always a pleasure to be on your show. >> So before we get into the hard core news around Microsoft because you and Satya have a relationship, you also know Andy Jassy very well. You've been following the Clouds game in a big way, but also as a senior leader in the industry and leading BM where, um, the evolution of the end user computing kind of genre,  that whole area is just completely transformed with mobility and cloud kind of coming together with data and all this new kinds of applications. The modern applications are different. It's changing the game on how end users, employees, normal people use computing because some announcement here on their What's your take on the ever changing role of cloud and user software? >> Yeah, John, I think that our vision , as  you know, it was the first job I came to do at VMware almost six years ago, to run and use a computing. And the vision we had at that time was that you should be able to work at the speed of life, right? You and I happen to be on a plane at the same time  yesterday coming here, we should be able to pick our amps up on our devices. You often have Internet now even up at thirty thousand feet. In the consumer world, you don't lug around your CDs, your music, your movies come to you. So the vision of any app on any device was what we articulated with the digital workspace We. had Apple and Google very well figured out. IOS later on Mac,  Android,  later on chrome . The Microsoft relationship in end use the computing was contentious because we overlapped. They had a product, PMS and in tune. But we always dreamed of a day. I tweeted out this morning that for five and a half years I competed with these guys. It was always my dream to partner with the With Microsoft. Um, you know, a wonderful person, whom I respect there, Brad Anderson. He's a friend, but we were like LeBron and Steph Curry. We were competing against each other. Today everything changed. We are now partners. Uh, Brad and I we're friends, we'll still be friends were actually partners  now why? Because we want to bring the best of the digital workspace solution VMware brings workspace one to the best of what Microsoft brings in Microsoft 365 , active directory, E3 capabilities around E. M. S and into it and combined those together to help customers get the best for any device. Apple, Google and Microsoft that's a game changer. >> Tell about the impact of the real issue of Microsoft on this one point, because is there overlap is their gaps, as Joe Tucci used to say, You can't have any. There's no there's no overlap if you have overlapped. That's not a >> better to have overlapped and seems right. A gaps. >> So where's the gaps? Where this words the overlapping cloud. Next, in the end user world, >> there is a little bit of overlap. But the much bigger picture is the complementarity. We are, for example, not trying to be a directory in the Cloud That's azure active directory, which is the sequel to Active Directory. So if we have an identity access solution that connect to active directory, we're gonna compliment that we've done that already. With Octo. Why not do that? Also inactive Directory Boom that's clear. Ignored. You overlap. Look at the much bigger picture. There's a little bit of overlap between in tune and air Watch capabilities, but that's not the big picture. The big picture is combining workspace one with E. M s. to allow Office 365 customers to get conditional access. That's a game, so I think in any partnership you have to look past, I call it sort of these Berlin Wall moments. If the U. S and Soviet Union will fighting over like East Germany, vs West Germany, you wouldn't have had that Berlin wall moment. You have to look past the overlaps. Look at the much bigger picture and I find the way by which the customer wins. When the customer wins, both sides are happy. >> Tearing down the access wall, letting you get seamless. Access the data. All right, Cloud computing housely Multi cloud announcement was azure something to tell on stage, which was a surprise no one knew was coming. No one was briefed on this. It was kind of the hush hush, the big news Michael Delll, Pat Girl singer and it's nothing to tell up there. Um, Safia did a great job and really shows the commitment of Microsoft with the M wear and Dell Technologies. What is this announcement? First, give us your take an analysis of what they announced. And what does it mean? Impact the customers? >> Yeah, listen, you know, for us, it's a further That's what, like the chess pieces lining up of'Em wars vision that we laid up many years for a hybrid cloud world where it's not all public cloud, it isn't all on premise. It's a mixture. We coined that Tom hybrid loud, and we're beginning to see that realize So we had four thousand cloud providers starting to build a stack on VM, where we announced IBM Cloud and eight of us. And they're very special relationships. But customers, some customers of azure, some of the retailers, for example, like Wal Mart was quoted in the press, released Kroger's and some others so they would ask us, Listen, we're gonna have a way by which we can host BMO Workloads in there. So, through a partnership now with Virtue Stream that's owned by Dell on DH er, we will be able to allow we, um, where were close to run in Virtue Stream. Microsoft will sell that solution as what's called Azure V M, where solutions and customers now get the benefit of GMO workloads being able to migrate there if they want to. Or my great back on the on premise. We want to be the best cloud infrastructure for that multi cloud world. >> So you've got IBM eight of us Google last month, you know, knock down now Azure Ali Baba and trying you. Last November, you announced Ali Baba, but not a solution. Right >> now, it's a very similar solutions of easy solution. There's similar what's announced with IBM and Nash >> So is it like your kids where you loved them all equally or what? You just mentioned it that Microsoft will sell the VM wear on Azure. You actually sell the eight of us, >> so there is a distinction. So let me make that clear because everything on the surface might look similar. We have built a solution that is first and preferred for us. Called were MacLeod on a W s. It's a V m er manage solution where the Cloud Foundation stack compute storage networking runs on a ws bare metal, and V. Ember manages that our reps sell that often lead with that. And that's a solution that's, you know, we announced you were three years ago. It's a very special relationship. We have now customer attraction. We announce some big deals in queue, for that's going great, and we want it even grow faster and listen. Eight of us is number one in the market, but there are the customers who have azure and for customers, one azure very similar. You should think of this A similar to the IBM ah cloud relationship where the V C P. V Partners host VM where, and they sell a solution and we get a subscription revenue result out of that, that's exactly what Microsoft is doing. Our reps will get compensated when they sell at a particular customer, but it's not a solution that's managed by BM. Where >> am I correct? You've announced that I think a twenty million dollars deal last quarter via MacLeod and A W. And that's that's an entire deal. Or is that the video >> was Oh, that was an entirely with a customer who was making a big shift to the cloud. When I talked to that customer about the types of workloads, they said that they're going to move hundreds off their APs okay on premise onto via MacLeod. And it appears, so that's, you know, that's the type of cloud transformation were doing. And now with this announcement, there will be other customers. We gave an example of few that Well, then you're seeing certain verticals that are picking as yours. We want those two also be happy. Our goal is to be the undisputed cloud infrastructure for any cloud, any cloud, any AP any device. >> I want to get your thoughts. I was just in the analysts presentation with Dell technology CFO and looking at the numbers, the performance numbers on the revenue side Don Gabin gap our earnings as well as market share. Dell. That scales because Michael Delll, when we interviewed many years ago when it was all going down, hinted that look at this benefits that scale and not everyone's seeing the obvious that we now know what the Amazon scale winds so scale is a huge advantage. Um, bm Where has scale Amazon's got scale as your Microsoft have scales scales Now the new table stakes just as an industry executive and leader as you look at the mark landscape, it's a having have not world you'd have scale. You don't If you don't have scale, you're either ecosystem partner. You're in a white space. How do companies compete in this market? Sanjay, what's your thoughts on I thinkit's >> Jonah's? You said there is a benefit to scale Dell, now at about ninety billion in revenue, has gone public on their stock prices. Done where Dellvin, since the ideal thing, the leader >> and sir, is that point >> leader in storage leader inclined computing peces with Vienna and many other assets like pivotal leaders and others. So that scale VM, Where about a ten billion dollar company, fifth largest software company doing verywell leader in the softer to find infrastructure leader, then use a computing leader and softer, defined networking. I think you need the combination of scale and speed, uh, just scale on its own. You could become a dinosaur, right? And what's the fear that every big company should have that you become ossified? And I think what we've been able to show the world is that V M wear and L can move with scale and speed. It's like having the combination of an elephant and a cheetah and won and that to me special. And for companies like us that do have scaled, we've to constantly ask ourselves, How do we disrupt ourselves? How do we move faster? How do we partner together? How do we look past these blind spots? How do we pardon with big companies, small companies and the winner is the customer. That's the way we think. And we could keep doing that, you'll say so. For example, five, six years ago, nobody thought of VMware--this is going before Dell or EMC--in the world of networking, quietly with ten thousand customers, a two million dollar run rate, NSX has become the undisputed leader and software-defined networking. So now we've got a combination of server, storage and a networking story and Dell VMware, where that's very strong And that's because we moved with speed and with scale. >> So of course, that came to an acquisition with Nice Sarah. Give us updates on the recent acquisitions. Hep C e o of Vela Cloud. What's happening there? >> Yeah, we've done three. That, I think very exciting to kind of walk through them in chronological order about eighteen months ago was Velo Cloud. We're really excited about that. It's sort of like the name, velocity and cloud fast. Simple Cloud based. It is the best solution. Ston. How do we come to deciding that we went to talk to our partners like t other service providers? They were telling us this is the best solution in town. It connects to the data center story to the cloud story and allows our virtual cloud network to be the best softer. To find out what you can, you have your existing Mpls you might have your land infrastructure but there's nobody who does softer to find when, like Philip, they're excited about that cloud health. We're very excited about that because that brings a multi cloud management like, sort of think of it like an e r P system on top of a w eso azure to allow you to manage your costs and resource What ASAP do it allows you to manage? Resource is for materials world manufacturing world. In this world, you've got resources that are sitting on a ws or azure. Uh, cloud held does it better than anybody else. Hefty. Oh, now takes a Cuban eighty story that we'd already begun with pivotal and with Google is you remember at at PM world two years ago. And that's that because the founders of Cuban eighties left Google and started FTO. So we're bringing that DNA we've become now one of the top two three contributors to communities, and we want to continue to become the de facto platform for containers. If you go to some of the airports in San Francisco, New York, I think Keilani and Heathrow to you'LL see these ads that are called container where okay, where do you think the Ware comes from Vienna, where, OK, and our goal is to make containers as container where you know, come to you from the company that made vmc possible of'Em where So if we popularized PM's, why not also popularised the best enterprise contain a platform? That's what helped you will help us do >> talk about Coburn at ease for a minute because you have an interesting bridge between end user computing and their cloud. The service is micro. Services that are coming on are going to be powering all these APS with either data and or these dynamic services. Cooper, Nettie sees me the heart of that. We've been covering it like a blanket. Um, I'm gonna get your take on how important that is. Because back Nelson, you're setting the keynote at the Emerald last year. Who burn it eases the dial tone. Is Cooper Netease at odds with having a virtual machine or they complimentary? How does that evolving? Is it a hedge? What's the thoughts there? >> Yeah, First off, Listen, I think the world has begun to realize it is a world of containers and V ems. If you looked at the company that's done the most with containers. Google. They run their containers in V EMS in their cloud platform, so it's not one or the other. It's vote. There may be a world where some parts of containers run a bare metal, but the bulk of containers today run and Beyonce And then I would say, Secondly, you know, five. Six years ago, people all thought that Doctor was going to obliterate VM where, But what happened was doctors become a very good container format, but the orchestration layer from that has not become daugher. In fact, Cuban Eddie's is kind of taking a little of the head and steam off Dr Swarm and Dr Enterprise, and it is Cooper Navy took the steam completely away. So Senses Way waited for the right time to embrace containers because the obvious choice initially would have been some part of the doctor stack. We waited as Borg became communities. You know, the story of how that came on Google. We've embraced that big time, and we've stated a very important ball hefty on All these moves are all part of our goal to become the undisputed enterprise container platform, and we think in a multi cloud world that's ours to lose. Who else can do multi cloud better than VM? Where may be the only company that could have done that was Red Hat. Not so much now, inside IBM, I think we have the best chance of doing that relative. Anybody else >> Sanjay was talking about on our intro this morning? Keynote analysis. Talking about the stock price of Dell Technologies, comparing the stock price of'Em where clearly the analysis shows that the end was a big part of the Dell technologies value. How would you summarize what v m where is today? Because on the Kino there was a Bank of America customers. She said she was the CTO ran, she says, Never mind. How we got here is how we go floors the end wars in a similar situation where you've got so much success, you always fighting for that edge. But as you go forward as a company, there's all these new opportunities you outlined some of them. What should people know about the VM? We're going forward. What is the vision in your words? What if what is VM where >> I think packed myself and all of the key people among the twenty five thousand employees of'Em are trying to create the best infrastructure company of all time for twenty one years. Young. OK, and I think we have an opportunity to create an incredible brand. We just have to his use point on the begins show create platforms. The V's fear was a platform. Innocent is a platform workspace. One is a platform V san, and the hyper convert stack of weeks right becomes a platform that we keep doing. That Carbonetti stuff will become a platform. Then you get platforms upon platforms. One platforms you create that foundation. Stone now is released. ADelle. I think it's a better together message. You take VX rail. We should be together. The best option relative to smaller companies like Nutanix If you take, you know Veum Where together with workspace one and laptops now put Microsoft in the next. There's nobody else. They're small companies like Citrix Mobile. I'm trying to do it. We should be better than them in a multi cloud world. They maybe got the companies like Red Hat. We should have bet on them. That said, the end. Where needs toe also have a focus when customers don't have Dale infrastructure. Some people may have HP servers and emcee storage or Dell Silvers and netapp storage or neither. Dellery emcee in that case, usually via where, And that's the way we roll. We want to be relevant to a multi cloud, multi server, multi storage, any hardware, any cloud. Any AP any device >> I got. I gotta go back to the red hat. Calm in a couple of go. I could see you like this side of IBM, right? So So it looks like a two horse race here. I mean, you guys going hard after multi cloud coming at it from infrastructure, IBM coming at it with red hat from a pass layer. I mean, if I were IBM, I had learned from VM where leave it alone, Let it blossom. I mean, we have >> a very good partisan baby. Let me first say that IBM Global Services GTS is one about top sai partners. We do a ton of really good work with them. Uh, I'm software re partner number different areas. Yeah, we do compete with red hat with the part of their portfolios. Relate to contain us. Not with Lennox. Eighty percent plus of their businesses. Lennox, They've got parts of J Boss and Open Stack that I kind of, you know, not doing so well. But we do compete with open ship. That's okay, but we don't know when we can walk and chew gum so we can compete with Red Hat. And yet partner with IBM. That's okay. Way just need to be the best at doing containing platform is better than open shifter. Anybody, anything that red hat has were still partner with IBM. We have to be able to look at a world that's not black and white. And this partnership with Microsoft is a good example. >> It's not a zero sum game, and it's a huge market in its early days. Talk >> about what's up for you now. What's next? What's your main focus? What's your priorities? >> Listen, we're getting ready for VM World now. You know in August we want to continue to build momentum on make many of these solutions platforms. So I tell our sales reps, take the number of customers you have and add a zero behind that. OK, so if you've got ten thousand customers of NSX, how do we get one hundred thousand customers of insects. You have nineteen thousand customers of Visa, which, by the way, significantly head of Nutanix. How do we have make one hundred ninety thousand customers? And we have that base? Because we have V sphere and we have the Delll base. We have other partners. We have, I think, eighty thousand customers off and use of computing tens of millions of devices. How do we make sure that we are workspace? One is on billion. Device is very much possible. That's the vision. >> I think that I think what's resonating for me when I hear you guys, when you hear you talk when we have conversations also in Pat on stage talks about it, the simplification message is a good one and the consistency of operating across multiple environments because it sounds great that if you can achieve that, that's a good thing. How you guys get into how you making it simple to run I T. And consistent operating environment. It's all about keeping the customer in the middle of this. And when we listen to customs, all of these announcements the partnership's when there was eight of us, Microsoft, anything that we've done, it's about keeping the customer first, and the customer is basically guiding up out there. And often when I sit down with customers, I had the privilege of talking hundreds of thousands of them. Many of these CEOs the S and P five hundred I've known for years from S athe of'Em were they'LL Call me or text me. They want us to be a trusted advisor to help them understand where and how they should move in their digital transformation and compared their journey to somebody else's. So when we can bring the best off, for example, of developer and operations infrastructure together, what's called DEV Ops customers are wrestling threw that in there cloud journey when we can bring a multi device world with additional workspace. Customers are wrestling that without journey there, trying to figure out how much they keep on premise how much they move in the cloud. They're thinking about vertical specific applications. All of these places where if there's one lesson I've learned in my last ten twenty years of it has become a trusted advisor to your customers. Lean on them and they will lean on you on when you do that. I mean the beautiful world of technology is there's always stuff to innovate. >> Well, they have to lean on you because they can't mess around with all this infrastructure. They'LL never get their digital transformation game and act together, right? Actually, >>= it's great to see you. We'Ll see you at PM, >> Rollo. Well, well, come on, we gotta talk hoops. All right, All right, All right, big. You're a big warriors fan, right? We're Celtics fan. Would be our dream, for both of you are also Manny's themselves have a privileged to go up against the great Warriors. But what's your prediction this year? I mean, I don't know, and I >> really listen. I love the warriors. It's ah, so in some senses, a little bit of a tougher one. Now the DeMarcus cousins is out for, I don't know, maybe all the playoffs, but I love stuff. I love Katie. I love Clay, you know, and many of those guys is gonna be a couple of guys going free agents, so I want to do >> it again. Joy. Well, last because I don't see anybody stopping a Celtics may be a good final. That would be fun if they don't make it through the rafters, though. That's right. Well, I Leonard, it's tough to make it all right. That sounds great. >> Come on. Sanjay Putin, CEO of BM Wear Inside the Cube, Breaking down his commentary of you on the landscape of the industry and the big news with Microsoft there. Other partner's bringing you all the action here Day one of three days of coverage here in the Cubicle two sets a canon of cube coverage out there. We're back with more after this short break.

>> Live, from Las Vegas, it's theCube! Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, And their ecosystem partners. >> Hey, welcome back everyone, live here, in Las Vegas, Amazon Web Services AWS re:Invent 2018. 52,000 people here. Two days. Second day of three days of wall to wall coverage here at theCUBE. I'm John, with Dave Vellante. Dave, six years, we've been doing theCUBE. We've been to all re:Invents except for the first year. We've been a customer, we've been following these guys. >> Plus the summits! >> Plus the summits. Great ecosystem. And VMware and VMworld, similar dynamic. I want to talk about that now, obviously the new announcement, on-premise, is huge. Want to dig in to it with our guest, Sanjay Poonen, who's the Chief Operating Officer of VMware. Sanjay, great to see you. Cube alumni, many times, thanks for coming back again. >> John and Dave, pleasure to be on your show. >> Thanks for coming on, great to see you. >> Congratulations on all this success, you've got a wonderful booth and presence here, and I think this is becoming like the Mecca of all IT events. >> You know, we have our new video cloud service on AWS, we're ingesting over 110 videos, we'll have 500 short video clips behind it. Tons of blog posts, tons of coverage. There's an insatiable appetite for Amazon Web Services content as Andy pointed out in my interview with him. And it's just the beginning. You guys at VMware really, I mean, talk about a seminal moment in the history of the computer industry, and VMware was, when you guys recognized the sea change of operators on IT and cloud developers coming together, you guys were very proactive two years ago. Raghu, yourself, and the team, Pat. We're going to, hey you know what? Let's just align. Culture's a fit with Amazon. Let's co-develop. Let's ride the wave together, and let's see where the chips fall. Which is basically, I'm oversimplifying, but that's kind of what's happened. So much has happened. I saw Raghu last night at the Greylock partner event. This is a historic moment. Good outcome so far, deep partnership, meaningful partnership. A lot of resonance in the marketplace, you guys are iterating and raising the bar. That's Amazon talk for success. How do you feel? >> Yeah, no, I think it's, absolutely, John. We, if you think about how this has evolved, you know five years ago when I joined VMware, I felt like cloud and containers, the two C's, were our big headwinds. We've turned those headwinds now into tailwinds, but it took some catharsis from us. We had vCloud Air, our own public cloud. We had to divest that. And I think the Amazon VMware coming together, when we announced it two and a half years ago, was like a Berlin Wall moment, where you had the US and the Soviet Union getting together. That was good for world peace. People were surprised, because these are two purported enemies now, and it really built trust. And step by step, launching VMware on AWS, announcing RDS on VMware, the beginning of on-premise, and then today, announcing Outposts, it's just an example of not just the validity of VMware as a hybrid cloud leader, but the strength of this partnership. We have a very special relationship with Andy, Pat, myself, Raghu, spent a lot of time together. Often, you can't tell, when our engineering teams meet, when an Amazon engineer and a VMware apart from each other. They're like finishing each other's sentences. That, we don't do, like, Mickey Mouse, Barney, you know press releases. It's real stuff. >> And the culture of, the engineering culture of VMware, which has been a core, cultural thing, the DNA of VMware is technical. Very community oriented. Amazon, technical, very operationally efficient, good community. This is good fit there. I got to get your perspective, though, on how that is going to evolve, specifically around on-premise. Because certainly Andy Jassy validates on-premises with the announcement that VMworld, which you guys covered, Pat Gelsinger uses words like dial tone, Kubernetes, you mentioned containers. Andy, when I asked him, "Andy, you know you told me "in theCUBE, five years ago, "that everything's going to the public cloud. "Change of tune? "You mind if I pin you down?" "No, John, you can pin me down all you want." He says good leaders are self-aware. He said "Our customers wanted this." And he's cool to it. And the partnership with VMware highlights that this is not going to happen overnight, he recognizes the duration, the role of on-premise. And then he also says that the data center's like a big Edge. So, if everything's cloud, what you guys basically announced with Outpost is, cloud, public cloud everywhere. So, just, there's no public, private, it's just cloud. This is a game changer, because-- >> Absolutely. >> Just, why wouldn't I want to buy this product? >> I mean, first off, congratulations on scoring that interview. Not many people have access to Andy that way, and you guys have built a very good relationship. I thought that interview you did with him was phenomenal. There was a special point in that, John, where you tried to get him to talk about Outposts, this was before he announced it, which is will Amazon go on-premise. So a couple of months ago, when Andy called us, and Matt Garman, to talk about this project under NDA, it was a continuation of those RDS type discussions where we basically said, if you want to do anything on-premise, you should do it with VMware, because you're going to have to go through this door called VMware. We are the de facto king of the on-premise private cloud world. Many of these customers are used to our tooling, vSphere, vMotion. They want anything to run on VMware. So from that became a sequence of discussions that really really evolved very quickly, and well, so we can announce this together. I mean, you know, Andy had three guests on stage, and only one partner, and that was VMware. And that's an indication of the strength of this partnership. Vice versa, of the 50,000 people here, probably all of them have VMware on-premise. So if Amazon's going to do more on premise, why not do it with the leader in that area, VMware. And we want to be in the software industry. The de facto standard for software-defined infrastructure. Right? And that's a special space that we can fill. >> Well, the amazing thing to me, is, here's VMware, no public cloud, Amazon wouldn't even say the word hybrid, or private cloud, doesn't use private cloud, but it wouldn't say hybrid before. You've now emerged as the tandem, de facto leader in hybrid cloud. Overnight. With an ecosystem that all wants to connect and partner with VMware and all wants to partner with AWS. Overnight. I mean, it feels that way anyway, 24 months. >> I think that's absolutely right. I mean, we were the first to start using the term hybrid, three or four years ago. As we did, then it took a while, because I think a lot of customers, and some of the public cloud vendors, felt it was going to be binary, all public cloud and no private cloud, but they began to realize you need both. But your point on the ecosystem, also surrounding, I just came back from meeting one of the top SIs in the world. They're betting big with us because they see this as the place for both of them, and they're also betting big with AWS. The System Integrators are all over this. The security vendors, all over this. Palo Alto Networks, Splunk, want to see. Often, many of these companies come to us and say, "You have cracked something special "in your relationship with Amazon. "How did you do that and how can we follow that model?" We're happy to share our playbook of how we think about ecosystems. So, we want to create a platform, just like Amazon's a platform, where everybody, SIs, tech vendors, software vendors, can all plug in to. >> And the other observation I make is, you know, previously the distance between infrastructure players and the guys who really are driving application value, the application developers, was quite a distance. And now it's closing, with infrastructure as code. And it's just so transformative for organizations. >> I think, and one of the things that's making that is microservices and containers. And as you know, since we last talked, we acquired Heptio. If you think about Heptio, they are the founders of Kubernetes, okay? They left Google, started their own company, Craig and Joe, and we're excited about that. That platform will augment PKS, which was our big bet in containers, and become something that could run on-premise, or in a public cloud environment like this. We acquired CloudHealth. CloudHealth is a multi-cloud management tool for costing resource management. That becomes something that could send, a lot of Amazon reps actually refer CloudHealth as the preferred way to get your insights. So we're beginning to see this now a lot more clearly than we did two years ago, thanks to this partnership. >> So, Sanjay, I know that Outposts, super exciting, it's been covered on Silicon Angle, there's a zillion stories on our site on this whole event. But, it's not going to be shipping for about a year. But you guys already have some working products now. What's the current track to that shipping because when that comes out, that'll be a game changer. Why would anyone want to buy hardware again? Michael Dell wins either way because he's got VMware. But others who sell hardware, this is a real, it could be a killer blow. But, I don't want to (laughs), you can comment on that if you want, but what's in-between that one year, you've got a product now, how do customers move along? >> Yeah, I think there's some very tangible things that, first off, VMware Cloud on AWS is, as you've described Dave, the best hybrid cloud option. You get the best of the on-premise world and the public cloud. You know, we announced hundreds of customers, we have a goal to get to thousands of customers, and then tens of thousands of customers. We're going to continue down that march. I want to have a significant number, over 500,000 customers. If Amazon has 40, 50 percent market share, based on some of the numbers that Andy shared today, a significant number of our customers have Amazon, we should get them onto VMC. VMware Cloud and AWS. Secondly, we do have, we announced Project Dimension, some Edge computing capabilities running on existing hardware players, so we are beginning this journey ourselves, in terms of cloud managed on-premise environment. Right? Project Dimension was announced before this, and that will run on Dell and Lenovo hardware, and that's well and good to go. They will have Edge IOT use cases. And then when Amazon comes and gets us ready, we would have learned a lot about this market. Which is really kind of this Edge computing market, cloud-managed. So we're not going to be, we're going to plan and do the other pieces. Much of the software components that VMware is building is not completely from scratch code. We're taking NSX. One of the most important components that VMware is adding to Outposts is NSX. We're not rewriting NSX, we're taking the NSX and applying this now, to a use case that's very much like that because we've adapted NSX now to be container-friendly, cloud-friendly. We've added NSX into the branch, VeloCloud. So those are the things that we're, you know, there's no rest for the weary anymore. >> And that gives you a consistent networking model, which is not trivial, as we've talked about. >> One of the things that I'm excited by, intrigued by, is, I know it's nuanced, but I see it as a key point, containers sometimes don't meet the security boundary issue. So, you guys can run a VM around a container, and run it under the covers. With Lambda. At super lightning speeds. It's not like a ten second instance to stand up. So that means there's more opportunities to create more abstractions around Kubernetes. And maintain security. There's so many benefits from this integrated kind of concept of consistency of operations for the software developer. >> John, you're absolutely right. Part of what we're trying to do is that word you talked about. Consistent infrastructure and operations. Consistent infrastructure and operations. And the container, if you've been seeing some of the ads in the San Francisco airport, we have some in London, and a few of the airports in New York, you'll see an ad that says "Containerware." It's playing on the word "ware", VMware. We want to be everyWARE, W-A-R-E. And if you think about the container being as pervasive as the vm in the future, I'm not going to say we're going to change the name of the company to be Containerware, but we want to be as pervasive as vm has been in VMware. So we have tens of millions of vms, in the twenty years we've had, maybe there'll be ten times as many containers. We want to become that de facto platform and containerware starts to take over. Right? What is that? Kubernetes-based. And we'll partner with the best. We've partnered with Google, we've partnered with Pivotal. Some of it would land on AWS, some of it will land on Azure. And you get a lot of the flexibility you have with that microservices platform. >> So, since you guys are on more of the software side, obviously Amazon's got software, but you guys actually are going to be much more broader, multiple clouds, as Amazon moves up the stack, I would imagine that as customers, I'm not going to buy in to only one cloud, there's other clouds out there, you guys should become a real strategic, traversal between clouds. So, we were debating, will customers have certain instances in, say, different clouds for specific, unique things, but yet run still horizontally, scalable on-premises, with VMware across multiple clouds. >> I think, you know John, it's going to be a lot like the hardware market was 20 years ago. It started to evolve into two or three major players. What's today Dell, HPE, Lenovo, at the time it was IBM, they divested to Lenovo, Cisco. In the storage place, two or three. I think the public cloud is not going to be three, five, ten. It's going to be two or three. Maybe four. And then maybe, in like China, Alibaba. So already, we have certain tools. Like CloudHealth's proposition is to manage costs and resources across multiple clouds. So we began to be already thinking about what is a multi-cloud world do? That said, in areas like this, which is a data center offer, we felt it was good for us to focus and get VMware Cloud and AWS to be the best hybrid cloud option. Give that a couple years, rather than trying to do everything and do it poorly, when you peanut butter your approach and try to do a lot of things with various different, so this is why we put a lot of special attention on VMware Cloud and AWS. We have an offering with IBM. We announced something with Alibaba. In due course VMware will need to have multiple cloud offerings. But I feel like this partnership and the specialness of this has really benefited both sides. >> Well, it's going to be very interesting, because IBM just made a 34 billion dollar validation of multi-cloud, so, and we talk about competition all the time. And it's evolving. >> We have a very good relationship with IBM. And listen, you have to be reasonably nuanced in your partnerships. So we're going to partner very heavily with IBM Global Services. We're going to partner very well with IBM Cloud. We're going to compete really hard with Red Hat! That's okay! Well, we'll compliment Linux. The bulk of their revenue's Linux. >> Of course, yeah. >> But make no mistake, we're going to compete hard with OpenShift. That's okay! That doesn't mean our IBM relationship is competitive. There's one piece of that, a very small part of the Red Hat revenue, OpenShift, that we overlap. The rest of it is complementary. We can be nuanced. It's sort of like walking and chewing gum. We can do both. And that's how we play. >> Before you wrap, now you know what we think of you, we think very highly of you, you're a superstar in our minds. However, you got to interview Sushmita, in India-- >> You know who Sushmita is? >> a true Bollywood superstar. Yes, an amazing actress, beautiful, talented. That must have been quite an experience. >> Well I got to tell ya, I was very intimidated. I opened-- >> I'll bet. >> Cause somehow I get assigned all these interviews to do. Malala, I'm usually on the opposite end. Your end. Malala, and Condoleezza Rice, and I told her I was really intimidated by her, and she said "Why?" I said, it's the first time that, I'm usually not tongue tied, but I did not know how to explain to my wife that I was going to be interviewing Ms. Universe. Okay, and she's like "What do you guys do at VMware? What the heck does Sushmita Sen have to do" But it was a good interview, I mean listen, for the India audience, we were celebrating our 20 year anniversary. She is an amazing woman who has achieved something that very few Indians have. And we wanted our Indian audience there to see that women can be successful. She's a big supporter of more women in business, fairness, equality, no prejudice, equal pay, all those things that we stand for. Which is part of our values. And if it weren't for the India audience she probably, I don't know if she would have worked at a Vmworld. We had Malala there, we had Condoleezza Rice at our last sales kickoff. We do these because we want to both teach our employees something, but also inspire them. And sometimes these speakers help with that cause. >> Sanjay, great to see you, thanks for coming on. I know you got to catch a flight. Big day today for you guys at VMware, congratulations. >> Thank you very much for having me. >> Thanks for all your support, great to see you. Great commentary, great insight. Sanjay Poonen, COO at VMware breaking down the announcement of Outposts, its relevance and impact on the market, and more importantly, the VMware AWS relationship. This is theCUBE bringing you all the action, day two of three days of wall-to-wall coverage. Two sets, hundreds of video assets coming, tons of posts on siliconangle.com, where all the coverage is. We'll be right back with more after this short break. (techno music)

>> Live, from Las Vegas! It's theCube! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back everyone, it's theCube's live coverage in Las Vegas for VMworld 2018, it's theCube. We got two sets, 24 interviews per day, 94 interviews total. Next three days, we're in day two of three days coverage. It's our ninth year of covering VMworld. It's been great. I'm John Furrier with Dave Vellante, next guest, Cube alumni, number one in the leading boards right now, Sanjay Poonen did a great job today on stage, keynote COO for VMware. Great to have you back. Thanks for coming on. >> John and Dave, you're always so kind to me, but I didn't realize you've been doing this nine years. >> This is our ninth year. >> That's half the life of VMware, awesome. Unreal. Congratulations. >> We know all the stories, all the hidden, nevermind, let's talk about your special day today. You had a really, so far, an amazing day, you were headlining the key note with a very special guest, and you did a great job. I want you to tell the story, who was on, what was the story about, how did this come about? Tech for good, a big theme in this conference has really been getting a lot of praise and a lot of great feedback. Take us through what happened today. >> Well listen, I think what we've been trying to do at VMware is really elevate our story and our vision. Elevate our partnerships, you've covered a lot of the narrative of what we've done with Andy Jessie. We felt this year, we usually have two 90 minute sessions, Day One, Day Two, and it's filled with content. We're technical company, product. We figured why don't we take 45 minutes out of the 180 minutes total and inspire people. With somebody who's had an impact on the world. And when we brainstormed, we had a lot of names suggested, I think there was a list of 10 or 15 and Malala stood out, she never spoke at a tech conference before. I loved her story, and we're all about education. The roots of VMware were at Stamford Campus. Diane Greene, and all of that story. You think about 130 million girls who don't go to school. We want to see more diversity in inclusion, and she'd never spoken so I was like, you know what, usually you go to these tech conferences and you've heard somebody who's spoken before. I'm like, lets invite her and see if she would come for the first time, and we didn't think she would. And we were able to score that, and I was still a little skeptical 'cause you never know is it going to work out or not. So thank you for saying it worked, I think we got a lot of good feedback. >> Well, in your first line, she was so endearing. You asked her what you thought a tech conference, you said too many acronyms. She just cracked the place up immediately. >> And then you heard my response, right? If somebody tells me like that, you tell VMotion wrong she looked at me what? >> Tell them about our story, real quick, our story I want to ask you a point in question. Her story, why her, and what motivated you to get her? >> Those stories, for any of you viewers, you should read the book "I'm Malala" but I'll give you the short version of the story. She was a nine year old in the Pashtun Area of the Swat Valley in Pakistan, and the Taliban setted a edict that girls could not go to school. Your rightful place was whatever, stay at home and become a mom with babies or whatever have you. You cannot go to school. And her father ran a school, Moster Yousafzai, wonderful man himself, an educator, a grandfather, and says know what, we're going to send you to school. Violating this order, and they gave a warning after warning and finally someone shot her in 2012, almost killed her. The bullet kind of came to her head, went down, and miraculously she escaped. Got on a sort of a hospital on a plane, was flown to London, and the world if you remember 2012, the world was following the story. She comes out of this and she's unscathed. She looks normal, she has a little bit of a thing on the right side of her face but her brains normal, everything's normal. Two years later she wins the Nobel Peace Prize. Has started the Malala Fund, and she is a force of nature, an amazing person. Tim Cook has been doing a lot with her in the Malala Fund. I think that actually caught my attention when Tim Cook was working with her, and you know whatever Apple does often gets a little bit of attention. >> Well great job selecting her. How's that relevant to what you guys are doing now, because you guys had a main theme Tech for Good? Why now, why VMware? A lot of people are looking at this, inspired by it. >> There are milestones in companies histories. We're at our 20 year birthday, and I'm sure at people's birthday they want to do big things, right? 20, 30, 40, 50, these decades are big ones and we thought, lets make this year a year to remember in various things we do. We had a 20 year anniversary celebration on campus, we invited Diane Greene back. It was a beautiful moment internally at Vmware during one of our employee meetings. It was a private moment, but just with her to thank her. And man, there were people emotional almost in tears saying thank you for starting this company. A way to give back to us, same way here. What better way to talk about the impact we're having in the community than have someone who is of this reputation. >> Well we're behind your mission 100%, anything you need. We loved the message, Tech for Good, people want to work for a mission driven company. People want to buy >> We hope so. >> from mission driven companies, that stated clear and the leadership you guys are providing is phenomenal. >> We had some rankings that came out around the same time. Fortune ranked companies who are changing the world, and VMware was ranked 17th overall, of all companies in the world and number one in the software category. So when you're trying to change the world, hopefully as you pointed out it's also an attractor of talent. You want to come here, and maybe even attractor of customers and partners. >> You know the other take-away was from the key note was how many Cricket fans there are in the VMworld Community. Of course we have a lot of folks from India, in our world but who's your favorite Cricketer? Was it Sachin Tendulkar? (laughs) >> Clearly you're reading off your notes Dave! >> Our Sonya's like our, >> Dead giveaway! >> Our Sonya's like our Cricket Geek and she's like, ask him about Sachin, no who's your favorite Cricketer, she wants to know. >> Sachin Tendulkar's way up there, Shayuda Free, the person she likes from Pakistan. I grew up playing cricket, listen I love all sports now that I'm here in this country I love football, I love basketball, I like baseball. So I'll watch all of them, but you know you kind of have those childhood memories. >> Sure >> And the childhood memories were like she talk about, India, Pakistan games. I mean this was like, L.A. Dodgers playing Giants or Red Socks, Yankee's, or Dallas Cowboys and the 49ers, or in Germany playing England or Brazil in the World Cup. Whatever your favorite country or team rivalry is, India Pakistan was all there more, but imagine like a billion people watching it. >> Yeah, well it was a nice touch on stage, and I'd say Ted Williams is my favorite cricketer, oh he plays baseball, he's a Red Sock's Player. Alright Sanjay, just cause your in the hot seat, lets get down to business here. Great moment on stage, congratulation. Okay Pat Gelsinger yesterday on the key note talked about the bridges, VMware bridging, connecting computers. One of the highlights is kind of in your wheelhouse, it's in your wheelhouse, the BYOD, Bring Your Own Device bridge. You're a big part of that. Making that work on on the mobile side. Now with Cloud this new bridge, how is that go forward because you still got to have all those table stakes, so with this new bridge of VMware's in this modern era, cloud and multicloud. Cluely validated, Andy Jassy, on stage. Doing something that Amazon's never done before, doing something on premise with VMware, is a huge deal. I mean we think it's a massive deal, we think it's super important, you guys are super committed to the relationship on premises hybrid cloud, multicloud, is validated as far as we're concerned. It's a done deal. Now ball's in your court, how are you going to bring all that mobile together, security, work space one, what's your plan? >> I would say that, listen on as I described in my story today there's two parts to the VMware story. There's a cloud foundation part which is the move the data center to the cloud in that bridge, and then there's the desk job move it to the mobile. Very briefly, yes three years of my five years were in that business, I'm deeply passionate about it. Much of my team now that I put in place there, Noah and Shankar are doing incredible jobs. We're very excited, and the opportunity's huge. I said at my key note of the seven billion people that live in the world, a billion I estimate, work for some company small or big and all of them have a phone. Likely many of those billion have a phone and a laptop, like you guys have here, right? That real estate of a billion in a half, maybe two billion devices, laptops and phones, maybe in some cases laptop, phone, and tablets. Someone's going to manage and secure, and their diverse across Apple, Google, big option for us. We're just getting started, and we're already the leader. In the data center, the cloud world, Pat, myself, Raghu, really as we sat three years ago felt like we shouldn't be a public cloud ourselves. We divested vCloud Air, as I've talked to you on your show before, Andy Jassy is a friend, dear friend and a classmate of mine from Harvard Business School. We began those discussions the three of us. Pat, Raghu, and myself with Andy and his team and as every quarter and year has gone on they become deeper and deep partnerships. Andy has told other companies that VMware Amazon is the model partnership Amazon has, as they describe who they would like to do business more with. So we're proud when they do that, when we see that happen. And we want to continue that. So when Amazon came to us and said listen I think there's an opportunity to take some of our stack and put it on premise. We kept that confidential cause we didn't want it to leak out to the world, and we said we're going to try'n annouce it at either VMworld or re:Invent. And we were successful. A part with these projects is they inevitably leak. We're really glad no press person sniffed it out. There was a lot of speculation. >> Couldn't get confirmation. >> There was a lot of speculation but no one sniffed it out and wrote a story about it, we were able to have that iPhone moment today, I'm sorry, yesterday when we unveiled it. And it's a big deal because RDS is a fast growing business for them. RDS landing on premise, they could try to do on their own but what better infrastructure to land it on than VMware. In some cases would be VMware running on VxRail which benefits Dell, our hardware partners. And we'll continue doing more, and more, and more as customers desire, so I'm excited about it. >> Andy doesn't do deals, as you know Andy well as we do. He's customer driven. Tell me about the customer demand on this because it's something we're trying to get reporting on. Obviously it makes sense, technically the way it's working. You guys and Andy, they just don't do deals out of the blue. There's customer drivers here, what are those drivers? >> Yeah, we're both listening to our customers and perhaps three, four, five years ago they were very focused on student body left, everybody goes public cloud. Like forget your on premise, evaporate, obliterate your data centers and just go completely public. That was their message. >> True, sweep the floor. >> Right, if you went to first re:Invent I was there on stage with them as an SAP employee, that's what I heard. I think you fast forward to 2014, 2015 they're beginning to realize, hey listen it's not as easy. Refactoring your apps, migrating those apps, what if we could bring the best of private cloud and public cloud together enter VMware and Amazon. He may have felt it was harder to have those cultivations of VMware or for all kinds of reasons, like we had vCloud Air and so on and so forth but once we divested that decision culminations had matured between us that door opened. And as that door opened, more culminations began. Jointly between us and with customers. We feel that there are customers who want many of those past type of services of premise. Cause you're building great things, relational database technology, AI, VI maybe. IoT type of technologies if they are landing on premise in an edge-computing kind of world, why not land on VMware because we're the king of the private cloud. We're very happy to those, we progress those discussion. I think in infrastructure software VMware and Amazon have some of the best engineers on the planet. Sometimes we've engineers who've gone between both companies. So we were able to put our engineering team's together. This is a joint engineering effort. Andy and us often talk about the fact that great innovation's built when it's not just Barny go to Marketing and Marketing press releases this. The true joint engineering at a deep level. That's what happened the last several months. >> Well I can tell you right now the commitment I've seen from an executive level and deep technology, both sides are deep and committed to this. It's go big or go home, at least from our perspective. Question I want to ask you Sanjay is you're close to the customer's of VMware. What's the growth strategy? If you zoom out, look down on stage and you got vSAN, NSX at the core, >> vSANjay (laughs) >> How can you not like a product that has my name on it? >> So you got all these things, where's the growth going to come from, the merging side, is the v going to be the stable crown jewels at NSX? How do you guys see the growth, where's it going to come from? >> Just kind of look at our last quarter. I mean if you peel back the narrative, John and Dave, two years ago we were growing single digits. Like low single digits. Two, three percent. That was, maybe the legacy loser description of VMware was the narrative everyone was talking about >> License revenue was flattish right? >> And then now all of sudden we're double digits. 12, 15 sort of in that range for both product revenue. It's harder to grow faster when you're bigger, and what's happened is that we stabilize compute with vSphere in that part and it's actually been growing a little bit because I think people in the VMware cloud provider part of our business, and the halo effect of the cloud meant that as they refresh the servers they were buying more research. That's good. The management business has started to grow again. Some cases double digits, but at least sort of single digits. NSX, the last few order grew like 30, 40%. vSAN last year was growing 100% off a smaller base, this year going 60, 70%. EUC has been growing double digits, taking a lot of share from company's like Citrix and MobileIron and others. And now, also still growing double digits at much bigger paces, and some of those businesses are well over a billion. Compute, management, end-user computing. We talked about NSX on our queue forming called being a 1.4 billion. So when you get businesses to scale, about a billion dollar type businesses and their sort of four, training five that are in that area, and they all get to grow faster than the market. That's the key, you got to get them going fast. That's how you get growth. So we focus on those on those top five businesses and then add a few more. Like VMware Cloud on AWS, right now our goal is customer logo count. Revenue will come but we talked on our earnings call about a few hundred customers of VMware Cloud and AWS. As that gets into the thousands, and there's absolutely that option, why? Because there's 500,000 customers of VMware and two million customers of Amazon, so there's got to be a lot of commonality between those two to get a few thousand. Then we'll start caring about revenue there too, but once you have logos, you have references. Containers, I'd like to see PKS have a few hundred customers and then, we put one on stage today. National Commercial Bank of Jamaica. Fantastic story of PKS. I even got my PKS socks for this interview. (John laughs) >> So that give you a sense as to how we think, there will be four, five that our businesses had scale and then a few are starting to get there, and they become business to scale. The nature of software is we'll always be doing this show because there will be new businesses to talk about. >> Yeah, hardware is easy. Software is hard, as Andy Patchenstien said on theCUBE yesterday. Congratulations Sanjay and all the success, you guys are doing great financially. Products looking really good coming out, the bloom is rising from the fruit you guys have harvested, coming together. >> John if I can say one last thing, I shared a picture of a plane today and I put two engines behind it. There's something I've learned over the last years about focus of a company, and I joked about different ways that my name's are pronounced but at the core of me there's a DNA. I said on stage I'd rather not be known as smart or stupid but having a big heart. VMware, I hope is known by our customers as having these two engines. An engine of innovation, innovating product and a variety of other things. And focused on customer obsession. We do those, the plane will go a long way. >> And it's looking good you guys, we can say we've been to Radio Event, we've been doing a lot of great stuff. Congratulations on the initiative, and a great interview with you today on doing Tech for Good and sharing your story. Getting more exposure to the kind of narratives people want to hear. More women in tech, more girls in tech, more democratization. Congratulations and thanks so much for sharing. >> Thank you John and Dave. >> Appreciate you being here. >> Sanjay Poonen, COO of VMware. Friend of theCUBE, Cube Alumni, overall great guy. Big heart and competitive too, we know that from his Twitter stream. Follow Sanjay on Twitter. You'll have a great time. I'm John Furrier with Dave Vellante, stay with us for more coverage from day two live, here in Las Vegas for VMware 2018. Stay with us. (tech music)