(techno music intro) >> Welcome back to theCube's coverage of SuperComputing Conference 2022. We are here at day three covering the amazing events that are occurring here. I'm Dave Nicholson, with my co-host Paul Gillin. How's it goin', Paul? >> Fine, Dave. Winding down here, but still plenty of action. >> Interesting stuff. We got a full day of coverage, and we're having really, really interesting conversations. We sort of wrapped things up at Supercomputing 22 here in Dallas. I've got two very special guests with me, Scott from Intel and David from Dell, to talk about yeah supercomputing, but guess what? We've got some really cool stuff coming up after this whole thing wraps. So not all of the holiday gifts have been unwrapped yet, kids. Welcome gentlemen. >> Thanks so much for having us. >> Thanks for having us. >> So, let's start with you, David. First of all, explain the relationship in general between Dell and Intel. >> Sure, so obviously Intel's been an outstanding partner. We built some great solutions over the years. I think the market reflects that. Our customers tell us that. The feedback's strong. The products you see out here this week at Supercompute, you know, put that on display for everybody to see. And then as we think about AI in machine learning, there's so many different directions we need to go to help our customers deliver AI outcomes. Right, so we recognize that AI has kind of spread outside of just the confines of everything we've seen here this week. And now we've got really accessible AI use cases that we can explain to friends and family. We can talk about going into retail environments and how AI is being used to track inventory, to monitor traffic, et cetera. But really what that means to us as a bunch of hardware folks is we have to deliver the right platforms and the right designs for a variety of environments, both inside and outside the data center. And so if you look at our portfolio, we have some great products here this week, but we also have other platforms, like the XR4000, our shortest rack server ever that's designed to go into Edge environments, but is also built for those Edge AI use cases that supports GPUs. It supports AI on the CPU as well. And so there's a lot of really compelling platforms that we're starting to talk about, have already been talking about, and it's going to really enable our customers to deliver AI in a variety of ways. >> You mentioned AI on the CPU. Maybe this is a question for Scott. What does that mean, AI on the CPU? >> Well, as David was talking about, we're just seeing this explosion of different use cases. And some of those on the Edge, some of them in the Cloud, some of them on Prem. But within those individual deployments, there's often different ways that you can do AI, whether that's training or inference. And what we're seeing is a lot of times the memory locality matters quite a bit. You don't want to have to pay necessarily a cost going across the PCI express bus, especially with some of our newer products like the CPU Max series, where you can have a huge about of high bandwidth memory just sitting right on the CPU. Things that traditionally would have been accelerator only, can now live on a CPU, and that includes both on the inference side. We're seeing some really great things with images, where you might have a giant medical image that you need to be able to do extremely high resolution inference on or even text, where you might have a huge corpus of extremely sparse text that you need to be able to randomly sample very efficiently. >> So how are these needs influencing the evolution of Intel CPU architectures? >> So, we're talking to our customers. We're talking to our partners. This presents both an opportunity, but also a challenge with all of these different places that you can put these great products, as well as applications. And so we're very thoughtfully trying to go to the market, see where their needs are, and then meet those needs. This industry obviously has a lot of great players in it, and it's no longer the case that if you build it, they will come. So what we're doing is we're finding where are those choke points, how can we have that biggest difference? Sometimes there's generational leaps, and I know David can speak to this, can be huge from one system to the next just because everything's accelerated on the software side, the hardware side, and the platforms themselves. >> That's right, and we're really excited about that leap. If you take what Scott just described, we've been writing white papers, our team with Scott's team, we've been talking about those types of use cases using doing large image analysis and leveraging system memory, leveraging the CPU to do that, we've been talking about that for several generations now. Right, going back to Cascade Lake, going back to what we would call 14th generation power Edge. And so now as we prepare and continue to unveil, kind of we're in launch season, right, you and I were talking about how we're in launch season. As we continue to unveil and launch more products, the performance improvements are just going to be outstanding and we'll continue that evolution that Scott described. >> Yeah, I'd like to applaud Dell just for a moment for its restraint. Because I know you could've come in and taken all of the space in the convention center to show everything that you do. >> Would have loved to. >> In the HPC space. Now, worst kept secrets on earth at this point. Vying for number one place is the fact that there is a new Mission Impossible movie coming. And there's also new stuff coming from Intel. I know, I think allegedly we're getting close. What can you share with us on that front? And I appreciate it if you can't share a ton of specifics, but where are we going? David just alluded to it. >> Yeah, as David talked about, we've been working on some of these things for many years. And it's just, this momentum is continuing to build, both in respect to some of our hardware investments. We've unveiled some things both here, both on the CPU side and the accelerator side, but also on the software side. OneAPI is gathering more and more traction and the ecosystem is continuing to blossom. Some of our AI and HPC workloads, and the combination thereof, are becoming more and more viable, as well as displacing traditional approaches to some of these problems. And it's this type of thing where it's not linear. It all builds on itself. And we've seen some of these investments that we've made for a better half of a decade starting to bear fruit, but that's, it's not just a one time thing. It's just going to continue to roll out, and we're going to be seeing more and more of this. >> So I want to follow up on something that you mentioned. I don't know if you've ever heard that the Charlie Brown saying that sometimes the most discouraging thing can be to have immense potential. Because between Dell and Intel, you offer so many different versions of things from a fit for function perspective. As a practical matter, how do you work with customers, and maybe this is a question for you, David. How do you work with customers to figure out what the right fit is? >> I'll give you a great example. Just this week, customer conversations, and we can put it in terms of kilowatts to rack, right. How many kilowatts are you delivering at a rack level inside your data center? I've had an answer anywhere from five all the way up to 90. There's some that have been a bit higher that probably don't want to talk about those cases, kind of customers we're meeting with very privately. But the range is really, really large, right, and there's a variety of environments. Customers might be ready for liquid today. They may not be ready for it. They may want to maximize air cooling. Those are the conversations, and then of course it all maps back to the workloads they wish to enable. AI is an extremely overloaded term. We don't have enough time to talk about all the different things that tuck under that umbrella, but the workloads and the outcomes they wish to enable, we have the right solutions. And then we take it a step further by considering where they are today, where they need to go. And I just love that five to 90 example of not every customer has an identical cookie cutter environment, so we've got to have the right platforms, the right solutions, for the right workloads, for the right environments. >> So, I like to dive in on this power issue, to give people who are watching an idea. Because we say five kilowatts, 90 kilowatts, people are like, oh wow, hmm, what does that mean? 90 kilowatts is more than 100 horse power if you want to translate it over. It's a massive amount of power, so if you think of EV terms. You know, five kilowatts is about a hairdryer's around a kilowatt, 1,000 watts, right. But the point is, 90 kilowatts in a rack, that's insane. That's absolutely insane. The heat that that generates has got to be insane, and so it's important. >> Several houses in the size of a closet. >> Exactly, exactly. Yeah, in a rack I explain to people, you know, it's like a refrigerator. But, so in the arena of thermals, I mean is that something during the development of next gen architectures, is that something that's been taken into consideration? Or is it just a race to die size? >> Well, you definitely have to take thermals into account, as well as just the power of consumption themselves. I mean, people are looking at their total cost of ownership. They're looking at sustainability. And at the end of the day, they need to solve a problem. There's many paths up that mountain, and it's about choosing that right path. We've talked about this before, having extremely thoughtful partners, we're just not going to common-torily try every single solution. We're going to try to find the ones that fit that right mold for that customer. And we're seeing more and more people, excuse me, care about this, more and more people wanting to say, how do I do this in the most sustainable way? How do I do this in the most reliable way, given maybe different fluctuations in their power consumption or their power pricing? We're developing more software tools and obviously partnering with great partners to make sure we do this in the most thoughtful way possible. >> Intel put a lot of, made a big investment by buying Habana Labs for its acceleration technology. They're based in Israel. You're based on the west coast. How are you coordinating with them? How will the Habana technology work its way into more mainstream Intel products? And how would Dell integrate those into your servers? >> Good question. I guess I can kick this off. So Habana is part of the Intel family now. They've been integrated in. It's been a great journey with them, as some of their products have launched on AWS, and they've had some very good wins on MLPerf and things like that. I think it's about finding the right tool for the job, right. Not every problem is a nail, so you need more than just a hammer. And so we have the Xeon series, which is incredibly flexible, can do so many different things. It's what we've come to know and love. On the other end of the spectrum, we obviously have some of these more deep learning focused accelerators. And if that's your problem, then you can solve that problem in incredibly efficient ways. The accelerators themselves are somewhere in the middle, so you get that kind of Goldilocks zone of flexibility and power. And depending on your use case, depending on what you know your workloads are going to be day in and day out, one of these solutions might work better for you. A combination might work better for you. Hybrid compute starts to become really interesting. Maybe you have something that you need 24/7, but then you only need a burst to certain things. There's a lot of different options out there. >> The portfolio approach. >> Exactly. >> And then what I love about the work that Scott's team is doing, customers have told us this week in our meetings, they do not want to spend developer's time porting code from one stack to the next. They want that flexibility of choice. Everyone does. We want it in our lives, in our every day lives. They need that flexibility of choice, but they also, there's an opportunity cost when their developers have to choose to port some code over from one stack to another or spend time improving algorithms and doing things that actually generate, you know, meaningful outcomes for their business or their research. And so if they are, you know, desperately searching I would say for that solution and for help in that area, and that's what we're working to enable soon. >> And this is what I love about oneAPI, our software stack, it's open first, heterogeneous first. You can take SYCL code, it can run on competitor's hardware. It can run on Intel hardware. It's one of these things that you have to believe long term, the future is open. Wall gardens, the walls eventually crumble. And we're just trying to continue to invest in that ecosystem to make sure that the in-developer at the end of the day really gets what they need to do, which is solving their business problem, not tinkering with our drivers. >> Yeah, I actually saw an interesting announcement that I hadn't been tracking. I hadn't been tracking this area. Chiplets, and the idea of an open standard where competitors of Intel from a silicone perspective can have their chips integrated via a universal standard. And basically you had the top three silicone vendors saying, yeah, absolutely, let's work together. Cats and dogs. >> Exactly, but at the end of the day, it's whatever menagerie solves the problem. >> Right, right, exactly. And of course Dell can solve it from any angle. >> Yeah, we need strong partners to build the platforms to actually do it. At the end of the day, silicone without software is just sand. Sand with silicone is poorly written prose. But without an actual platform to put it on, it's nothing, it's a box that sits in the corner. >> David, you mentioned that 90% of power age servers now support GPUs. So how is this high-performing, the growth of high performance computing, the demand, influencing the evolution of your server architecture? >> Great question, a couple of ways. You know, I would say 90% of our platforms support GPUs. 100% of our platforms support AI use cases. And it goes back to the CPU compute stack. As we look at how we deliver different form factors for customers, we go back to that range, I said that power range this week of how do we enable the right air coolant solutions? How do we deliver the right liquid cooling solutions, so that wherever the customer is in their environment, and whatever footprint they have, we're ready to meet it? That's something you'll see as we go into kind of the second half of launch season and continue rolling out products. You're going to see some very compelling solutions, not just in air cooling, but liquid cooling as well. >> You want to be more specific? >> We can't unveil everything at Supercompute. We have a lot of great stuff coming up here in the next few months, so. >> It's kind of like being at a great restaurant when they offer you dessert, and you're like yeah, dessert would be great, but I just can't take anymore. >> It's a multi course meal. >> At this point. Well, as we wrap, I've got one more question for each of you. Same question for each of you. When you think about high performance computing, super computing, all of the things that you're doing in your partnership, driving artificial intelligence, at that tip of the spear, what kind of insights are you looking forward to us being able to gain from this technology? In other words, what cool thing, what do you think is cool out there from an AI perspective? What problem do you think we can solve in the near future? What problems would you like to solve? What gets you out of bed in the morning? Cause it's not the little, it's not the bits and the bobs and the speeds and the feats, it's what we're going to do with them, so what do you think, David? >> I'll give you an example. And I think, I saw some of my colleagues talk about this earlier in the week, but for me what we could do in the past two years to unable our customers in a quarantine pandemic environment, we were delivering platforms and solutions to help them do their jobs, help them carry on in their lives. And that's just one example, and if I were to map that forward, it's about enabling that human progress. And it's, you know, you ask a 20 year version of me 20 years ago, you know, if you could imagine some of these things, I don't know what kind of answer you would get. And so mapping forward next decade, next two decades, I can go back to that example of hey, we did great things in the past couple of years to enable our customers. Just imagine what we're going to be able to do going forward to enable that human progress. You know, there's great use cases, there's great image analysis. We talked about some. The images that Scott was referring to had to do with taking CAT scan images and being able to scan them for tumors and other things in the healthcare industry. That is stuff that feels good when you get out of bed in the morning, to know that you're enabling that type of progress. >> Scott, quick thoughts? >> Yeah, and I'll echo that. It's not one specific use case, but it's really this wave front of all of these use cases, from the very micro of developing the next drug to finding the next battery technology, all the way up to the macro of trying to have an impact on climate change or even the origins of the universe itself. All of these fields are seeing these massive gains, both from the software, the hardware, the platforms that we're bringing to bear to these problems. And at the end of the day, humanity is going to be fundamentally transformed by the computation that we're launching and working on today. >> Fantastic, fantastic. Thank you, gentlemen. You heard it hear first, Intel and Dell just committed to solving the secrets of the universe by New Years Eve 2023. >> Well, next Supercompute, let's give us a little time. >> The next Supercompute Convention. >> Yeah, next year. >> Yeah, SC 2023, we'll come back and see what problems have been solved. You heard it hear first on theCube, folks. By SC 23, Dell and Intel are going to reveal the secrets of the universe. From here, at SC 22, I'd like to thank you for joining our conversation. I'm Dave Nicholson, with my co-host Paul Gillin. Stay tuned to theCube's coverage of Supercomputing Conference 22. We'll be back after a short break. (techno music)

(upbeat music) >> Hi everybody, welcome back. You're watching theCUBE, we go out to the events we extract the signal from the noise. This is a very special digital event and we're really covering the transformation not only the industry, but the transformation of Oracle Consulting and its rebirth. Mike Owens is here Group VP of Cloud Advisory and GM of Oracle Elevate, which is a partnership that Oracle announced last Open World with Deloitte, and Don Schmidt is here, who is a Managing Director at Deloitte. Gents, good to see you, welcome. >> Good to be here Dave. >> So, Don I want to start with you. Transformation, right? Everybody talks about that, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >> Yeah I think there's an inflection point right now. Everybody have been saying they want to get out their data centers. The leaves haven't really been taking place, right? They've been kind of moving in small bits. We're now at the point where large transformation at scale, of getting out of your data centers, is now here. So, we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently, and get them out of these data centers so they can move on with their day to day business? >> So data centers is just not an efficient use of capital for your customers. >> No, no there's lots of ways to do this a lot faster, cheaper, and get on to innovation. Spend your money there, not on hardware, floor space, power cooling, those fun things. >> Well you guys are spending money on data centers though right? So this is a good business for you all. >> Mike: We do it on behalf of other customers though. Right? >> Yeah and that's what's happening right? My customers, they essentially want to take all this IT labor cost and shift it into R&D get them on your backs and your backs right? Is this that what you see it? You know where are we in terms of that? I mean it started ten plus years ago but it really has started to uptake right? What's driving that? What's the catalyst there? >> You know so from my perspective, I've been doing this a while. A lot of it is either organizations are driving costs or what you're also seeing is IT organizations are no longer the utility in the organization and taking the orders, you're using them to try to top line value, but to do that, they actually have to take their business and change the model of it, so they can take that money and reinvest it in what Don had talked about, investment or continuous investment. So you're starting to hit those inflection points, you know years ago a CIO would be in his job for 15, 20 years, the average tenure for a CIO is you know three to five years on average, and it's because if they're not driving innovation or driving top line growth with an organization, organizations are now starting to flip that around so you're seeing a huge inflection point, with organizations really looking for IT not to be just a back office entity anymore, to truly drive them they have to transform that back to Don's point, because that inflection point, this large data center move over is a good sort of lever to kind of get them and really use it as opportunity to transform their organization. >> And the transformations are occurring, you know within industries, but at different pace. I mean some industries have transformed radically. You think about Ride shares, and digital music and the like others are taking more time, financial services, health care, they're riskier businesses, and you know there's more government in public policy so what do you see in terms of the catalyst for transformation and is there any kind of discernible, industry variance? >> Yeah there definitely is and he's mentioned some of the more start-up kind of organizations where Cloud was right for them at the early stages. These other organizations that have built these large application stacks and have been there for years, it's scary for them to say, "Let me take this big set of equipment and applications, and move it to the Cloud." It's a big effort. Starting from scratch with start-ups, that's a little different story right? So we are kind of at a different point, there are different stages within different industries, some are faster adopters than some of the others with government regulations and some of the technologies that have to kind of catch up to be able to provide those services. >> Do people generally want to take their sort of mission-critical apps which are largely running often on Oracle infrastructure database, they want to move that into the Cloud but do they want to bring that sort of Cloud-operating model to their on-prem and maybe reduce their overall data center footprint but preserve some of that? What are you guys seeing? >> So, two different probably viewpoints. So my viewpoint is, depends on the organization, depends on the regulatory they have, and there's a lot of factors in there. But I would say, as a standard organization would take their journey, mission-critical systems are historically not the first one in there. 'Cause back to the point of changing the operating model the way you want to do business and be effective, you don't go with the crown jewels first, historically, take some other work loads learn how to work in that operating model, how you're doing things change and then you evolve some of those pieces over time. There are organizations that basically, pull the band-aid off and just go right into it, right? But a lot of large enterprises sort of that's why we talk about Cloud as a journey, right? You take this journey you have to make the journey based on what's going on back what Don had talked about the regulatory requirements in history are the right controls in place for what they need at that point. If not, okay so what's an interim step to the journey? Could you bring Cloud in those capabilities on-prem and then have some of the other stuff off-prem? So it's really situational dependent, and we actually walk a customer through and now Don's organization does the same thing. You walk them through what makes best for their journey for where they're at in the industry and what they have today and what they're trying to achieve. >> So Don Deloitte doesn't just do IT it does business transformation, right? So it's like a chicken and egg, let's say that what comes first? The chicken or the egg? The IT transformation or the business transformation? >> I don't think it's an or it's an and. So have the total conversation of where's your Cloud journey for your entire enterprise, and then decide how that's going to be played out in both in IT and in the business. How the joint conversation from an enterprise perspective. >> So let's talk a little bit about the partnership, to your very well known brands, you guys get together, so what was the sort of impetus to get together? How's it going? Give us the update on that front. >> Yeah you know so from Oracle standpoint, Oracle has been really technology focused. It was really created by technologists, right? And back to the point of what we're trying to do with the Cloud and trying to do larger transformation, those aren't some of the skills that we have. We've been bringing in some of those skills in DNA, but if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like Deloitte? Right? And so the impetus of that is, how do we take the technology with the business transformation, pull that together and back of the one plus one equals three for my customer, right? That's what they really want, so how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move a couple application work loads. Our job, what we're really charted to do is make huge transformational leaps for our customers, using the combined capabilities of the two organizations. So this it's a hug paradigm for us to kind of do this. >> And in our collaboration with the two organizations just the opposite from what Mike just said right? So Deloitte wasn't really big in big IT, right? Business led transformations kind of what Deloitte's been known for, along with our cyber practice, and so we needed the deep skills of the technical experts. >> Right, so take me through what transformation engagement looks like. They don't call you up and say, "Hey want to buy me some transformation." Right? Where does it start? Who are the stake holders? How long does it take? I mean it could be multi year, I presume and never ends maybe but you want to get to business value first, so let's shorten up the time frame. Take me through typical engagement. Typical I know in quotes. And then, how long like take me through the point at which you start to get business value. What do I got to do to get there? >> Yeah so we see two different spectrums on a transformation. And it really aligns to what are your objectives. Do you just need to get out of the data center because you're on archaic dying hardware? Or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? But on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the age or the health of your data center is, help the customers through, business case, TCO, how fast or how slow that journey needs to be for them, crave look our wave groups of how fast and we're going to sequence those over time to get out of their data center. In parallel we're going to be doing as Mike was saying running all the operational aspects. So while we're doing that discovery, we want to start standing up their Cloud center of excellence. Getting Cloud operations into the organization is a different skill set for IT to have, right? They're going to need to retrain themselves, retool themselves in the world of Cloud. So we kind of do that in parallel and then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove how the model works. Move those into the Cloud, and then what we want to do is we want to scale at it, its large pace, right? Get the IT savings, get the cost cuts out of the organization. >> So I cleaned out my barn this weekend and the first thing I did is I got a dumpster. So I could throw some stuff out. So, is that part of the equation like getting rid of stuff? Is that part of the assessment? You know what's not delivering value that you can live without? >> Absolutely right, so there is kind of things that are just going to not go to Cloud, right? No longer need it, it's just laying around in the side, just get rid of that and move forward. >> And earlier one you'll see there's models depends you hear there's the 6 Rs, the 7 Rs and it's really the journey to Cloud it's almost you look at your status is it going to get re-platformed, is it going to get re-hosted, is it going to get retired back to your point. And if it's had something that's an appliance, right? That's something you're not going to put out to Cloud. Okay keep that in your data center. I have something that's so old, I hope it dies in the next two years. Don't spend the money move it to Cloud, let it die over the next two years. So back to the point, you kind of take this discovery and you go, where do things fall on the spectrum? And each one actually has a destination and a lever that you're going to pull, right? And if you're going to retire things okay so out of the business case, those are status quo for the next you're going to kill it over three years, right? Re-platform re-host means different things that they're going to take, right? Whether they do just to infrastructure or take advantage of PaaS or they'll go, "I'm going to blow up the entire application who directed to Cloud native services." Right? As you go through that journey you kind of map that out for them through the discovery process, and that tells you how much value you're going to get based on what you're going to do. >> But boy, this starts to get deep I mean as you used to peel the onions. So you just described what I would think of as wave 1. And then as you keep peeling you got the applications, you got the business process, you might have, reorganizations that's really where you guys have expertise, right? >> Well combined right? 'Cause yeah we're on the organizational side of things, but yeah there's a lot of things you have to sort through, right? And that's where the combined Elevate program really synergizes itself around the tools that we have. We both have tools that will help make sure we get this right, right? Deloitte has a product called Atadata, Oracle has a product called Soar, they married together properly into this transformational journey, to make sure we get the discovery done right and we get the migrations done right as well. >> Well you also have a lot of different stake holders, than you know, let's face it P&L Managers are going to try to hold on to their P&L. So you've got to bring in the senior executives. Clearly the CIOs involved is the CFO, CSWE. Who are the stake holders that you bring together in the room to kick this thing off? >> Depends on the message and depends on the outcome right? So if it's I need to get out of my data center, my data center strategy, historically the CIO. If it's there's an overall cost reduction and I want to re-implement my cost into innovating the business, sometimes that starts the CEO, CFO levels, right? >> Dave: Sure. >> So depends on that one but it is absolutely, back to your point of, the people want to hold their P&L huggers or kind of hold the cost or whatever. And one of the things, if you're not having the right conversations with people at the right level, the analogy that I've used for years is sometimes you're talking to a turkey about thanksgiving, right? So if you're trying to actually help transform and the entity is feeling that they're impacted by that negatively, even though there's a senior direction, so working through the right levels the organization to make sure you're showing how you're enabling them, it's key it's part of this journey. Helping them understand the future and how it's valuable, 'cause otherwise you'll get people that push back, even though it's the right thing for the company. We've seen that time and time again. >> Well it's potentially a huge engagement, so do you guys have specific plays or campaigns that you know I can do to get started maybe do a little test case, any particular offerings that-- >> Mike: I think-- >> Do you want to talk about the campaigns? >> So ]s under the program of Elevate, we've got a couple of campaigns. So the biggest one we've been talking about is around the data center transformation, so that's kind of the first campaign that we're working on together. The next one is around moving JD Edwards specific applications to Oracle's Cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market through to general put that in as well. Those are our three major campaigns. >> So data center transformation we hit it pretty hard. I'm sorry the third one was Cloud-- >> Analytics. >> Sorry analytics right okay which is kind of an instate that everybody wants to get to. The JDE migration, so you've got what, situations where people have just, the systems. >> And I would say it's actually more of a JDE modernization, alright? >> Okay. >> So you have an organization, right? They may have a JDE or JD Edwards instance that's really it's older, they're maybe on version nine or something like that, they don't want to go all the way to SaaS 'cause they can't simplify the business processes. They need to do that, but they also want to take advantage of the higher level capabilities of Cloud computing, right? IOT, Mobil, et cetera right? So as a modernization, one of the things we're doing is an approach together we work with customers depending where they're going and go hey great, you can actually modernize by taking up this version of JDE through an upgrade process, but that allows you then to move it over to Oracle Cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get. There's a various kind of four major phases that we can do or entry points with the customer on the JDE modernization, we kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE, and as well as Oracle Consulting, and we actually are going to market that together, matter of fact, we're even at conferences together, talking about our approaches here and our future. >> Okay. So that'll allow you to get to a Cloud PaaS layer that'll allow you to sort of modernize that and get out of the sort of technical debt that's built up. >> Where customers are not ready to maybe move their entire data center, right? This gets them on the journey, right? That's the important pieces. We want to get them on the Cloud journey. >> In the analytics campaign, so it seems to me that a lot of companies don't have their data driven, they want to be data driven, but they're not there yet. And so, their data's in silos and so I would imagine that that's all helping them understand where the data is, breaking down, busting down those silos and then actually putting in sort of an analytics approach that drives their, drives us from data to insights. Is that fair? >> Yeah fair. Yeah it's not just doing reporting and dashboards it's actually having KPI-driven insights into their information and their data within their organizations. And so Deloitte has some pre-configured applications for HR, finance, and supply chains. >> So the existing EDW for example would be fitter into that, but then you've got agile infrastructure and processes that you're putting in place, bringing in AI and machine intelligence. That's kind of the future state that you're in. >> And it also has, they look at the particular that's one of the things we like about the other stuff that Deloitte has done. They've actually done the investment of the processes back into those particular business units that they do and actually have KPI-driven ones it prebuilt configurations that actually adds value. These are the metrics that should be driving an HR organization. Here's the metrics that should be driving finance. So rather than doing better analytics, hey help me write my report better. No, we're going to help you transform the way you should be running your business from a business financial transformation, that's why the partnership with Deloitte. So it's really changing the game of true analytics, not better BI. >> Right okay, guys, two power houses. Thanks so much for explaining in The Cube and to our audience, appreciate it. (mumbling) >> Alright, thank you everybody for watching we'll be right back with our next guest you're watching The Cube, from Chicago. We'll be right back right after the short break. (upbeat music)

(upbeat music) >> Reporter: From Chicago, it's The Cube. Covering Oracle transformation date 2020. Brought to you by Oracle Consulting. >> Hi everybody, welcome back. You're watching theCUBE, we go out to the events we extract the signal from the noise. This is a very special digital event and we're really covering the transformation not only the industry, but the transformation of Oracle Consulting and its rebirth. Mike Owens is here Group VP of Cloud Advisory and GM of Oracle Elevate, which is a partnership that Oracle announced last Open World with Deloitte, and Don Schmidt is here, who is a Managing Director at Deloitte. Gents, good to see you, welcome. >> Good to be here Dave. >> So, Don I want to start with you. Transformation, right? Everybody talks about that, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >> Yeah I think there's an inflection point right now. Everybody have been saying they want to get out their data centers. The leaves haven't really been taking place, right? They've been kind of moving in small bits. We're now at the point where large transformation at scale, of getting out of your data centers, is now here. So, we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently, and get them out of these data centers so they can move on with their day to day business? >> So data centers is just not an efficient use of capital for your customers. >> No, no there's lots of ways to do this a lot faster, cheaper, and get on to innovation. Spend your money there, not on hardware, floor space, power cooling, those fun things. >> Well you guys are spending money on data centers though right? So this is a good business for you all. >> Mike: We do it on behalf of other customers though. Right? >> Yeah and that's what's happening right? My customers, they essentially want to take all this IT labor cost and shift it into R&D get them on your backs and your backs right? Is this that what you see it? You know where are we in terms of that? I mean it started ten plus years ago but it really has started to uptake right? What's driving that? What's the catalyst there? >> You know so from my perspective, I've been doing this a while. A lot of it is either organizations are driving costs or what you're also seeing is IT organizations are no longer the utility in the organization and taking the orders, you're using them to try to top line value, but to do that, they actually have to take their business and change the model of it, so they can take that money and reinvest it in what Don had talked about, investment or continuous investment. So you're starting to hit those inflection points, you know years ago a CIO would be in his job for 15, 20 years, the average tenure for a CIO is you know three to five years on average, and it's because if they're not driving innovation or driving top line growth with an organization, organizations are now starting to flip that around so you're seeing a huge inflection point, with organizations really looking for IT not to be just a back office entity anymore, to truly drive them they have to transform that back to Don's point, because that inflection point, this large data center move over is a good sort of lever to kind of get them and really use it as opportunity to transform their organization. >> And the transformations are occurring, you know within industries, but at different pace. I mean some industries have transformed radically. You think about Ride shares, and digital music and the like others are taking more time, financial services, health care, they're riskier businesses, and you know there's more government in public policy so what do you see in terms of the catalyst for transformation and is there any kind of discernible, industry variance? >> Yeah there definitely is and he's mentioned some of the more start-up kind of organizations where Cloud was right for them at the early stages. These other organizations that have built these large application stacks and have been there for years, it's scary for them to say, "Let me take this big set of equipment and applications, and move it to the Cloud." It's a big effort. Starting from scratch with start-ups, that's a little different story right? So we are kind of at a different point, there are different stages within different industries, some are faster adopters than some of the others with government regulations and some of the technologies that have to kind of catch up to be able to provide those services. >> Do people generally want to take their sort of mission-critical apps which are largely running often on Oracle infrastructure database, they want to move that into the Cloud but do they want to bring that sort of Cloud-operating model to their on-prem and maybe reduce their overall data center footprint but preserve some of that? What are you guys seeing? >> So, two different probably viewpoints. So my viewpoint is, depends on the organization, depends on the regulatory they have, and there's a lot of factors in there. But I would say, as a standard organization would take their journey, mission-critical systems are historically not the first one in there. 'Cause back to the point of changing the operating model the way you want to do business and be effective, you don't go with the crown jewels first, historically, take some other work loads learn how to work in that operating model, how you're doing things change and then you evolve some of those pieces over time. There are organizations that basically, pull the band-aid off and just go right into it, right? But a lot of large enterprises sort of that's why we talk about Cloud as a journey, right? You take this journey you have to make the journey based on what's going on back what Don had talked about the regulatory requirements in history are the right controls in place for what they need at that point. If not, okay so what's an interim step to the journey? Could you bring Cloud in those capabilities on-prem and then have some of the other stuff off-prem? So it's really situational dependent, and we actually walk a customer through and now Don's organization does the same thing. You walk them through what makes best for their journey for where they're at in the industry and what they have today and what they're trying to achieve. >> So Don Deloitte doesn't just do IT it does business transformation, right? So it's like a chicken and egg, let's say that what comes first? The chicken or the egg? The IT transformation or the business transformation? >> I don't think it's an or it's an and. So have the total conversation of where's your Cloud journey for your entire enterprise, and then decide how that's going to be played out in both in IT and in the business. How the joint conversation from an enterprise perspective. >> So let's talk a little bit about the partnership, to your very well known brands, you guys get together, so what was the sort of impetus to get together? How's it going? Give us the update on that front. >> Yeah you know so from Oracle standpoint, Oracle has been really technology focused. It was really created by technologists, right? And back to the point of what we're trying to do with the Cloud and trying to do larger transformation, those aren't some of the skills that we have. We've been bringing in some of those skills in DNA, but if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like Deloitte? Right? And so the impetus of that is, how do we take the technology with the business transformation, pull that together and back of the one plus one equals three for my customer, right? That's what they really want, so how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move a couple application work loads. Our job, what we're really charted to do is make huge transformational leaps for our customers, using the combined capabilities of the two organizations. So this it's a hug paradigm for us to kind of do this. >> And in our collaboration with the two organizations just the opposite from what Mike just said right? So Deloitte wasn't really big in big IT, right? Business led transformations kind of what Deloitte's been known for, along with our cyber practice, and so we needed the deep skills of the technical experts. >> Right, so take me through what transformation engagement looks like. They don't call you up and say, "Hey want to buy me some transformation." Right? Where does it start? Who are the stake holders? How long does it take? I mean it could be multi year, I presume and never ends maybe but you want to get to business value first, so let's shorten up the time frame. Take me through typical engagement. Typical I know in quotes. And then, how long like take me through the point at which you start to get business value. What do I got to do to get there? >> Yeah so we see two different spectrums on a transformation. And it really aligns to what are your objectives. Do you just need to get out of the data center because you're on archaic dying hardware? Or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? But on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the age or the health of your data center is, help the customers through, business case, TCO, how fast or how slow that journey needs to be for them, crave look our wave groups of how fast and we're going to sequence those over time to get out of their data center. In parallel we're going to be doing as Mike was saying running all the operational aspects. So while we're doing that discovery, we want to start standing up their Cloud center of excellence. Getting Cloud operations into the organization is a different skill set for IT to have, right? They're going to need to retrain themselves, retool themselves in the world of Cloud. So we kind of do that in parallel and then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove how the model works. Move those into the Cloud, and then what we want to do is we want to scale at it, its large pace, right? Get the IT savings, get the cost cuts out of the organization. >> So I cleaned out my barn this weekend and the first thing I did is I got a dumpster. So I could throw some stuff out. So, is that part of the equation like getting rid of stuff? Is that part of the assessment? You know what's not delivering value that you can live without? >> Absolutely right, so there is kind of things that are just going to not go to Cloud, right? No longer need it, it's just laying around in the side, just get rid of that and move forward. >> And earlier one you'll see there's models depends you hear there's the 6 Rs, the 7 Rs and it's really the journey to Cloud it's almost you look at your status is it going to get re-platformed, is it going to get re-hosted, is it going to get retired back to your point. And if it's had something that's an appliance, right? That's something you're not going to put out to Cloud. Okay keep that in your data center. I have something that's so old, I hope it dies in the next two years. Don't spend the money move it to Cloud, let it die over the next two years. So back to the point, you kind of take this discovery and you go, where do things fall on the spectrum? And each one actually has a destination and a lever that you're going to pull, right? And if you're going to retire things okay so out of the business case, those are status quo for the next you're going to kill it over three years, right? Re-platform re-host means different things that they're going to take, right? Whether they do just to infrastructure or take advantage of PaaS or they'll go, "I'm going to blow up the entire application who directed to Cloud native services." Right? As you go through that journey you kind of map that out for them through the discovery process, and that tells you how much value you're going to get based on what you're going to do. >> But boy, this starts to get deep I mean as you used to peel the onions. So you just described what I would think of as wave 1. And then as you keep peeling you got the applications, you got the business process, you might have, reorganizations that's really where you guys have expertise, right? >> Well combined right? 'Cause yeah we're on the organizational side of things, but yeah there's a lot of things you have to sort through, right? And that's where the combined Elevate program really synergizes itself around the tools that we have. We both have tools that will help make sure we get this right, right? Deloitte has a product called Atadata, Oracle has a product called Soar, they married together properly into this transformational journey, to make sure we get the discovery done right and we get the migrations done right as well. >> Well you also have a lot of different stake holders, than you know, let's face it P&L Managers are going to try to hold on to their P&L. So you've got to bring in the senior executives. Clearly the CIOs involved is the CFO, CSWE. Who are the stake holders that you bring together in the room to kick this thing off? >> Depends on the message and depends on the outcome right? So if it's I need to get out of my data center, my data center strategy, historically the CIO. If it's there's an overall cost reduction and I want to re-implement my cost into innovating the business, sometimes that starts the CEO, CFO levels, right? >> Dave: Sure. >> So depends on that one but it is absolutely, back to your point of, the people want to hold their P&L huggers or kind of hold the cost or whatever. And one of the things, if you're not having the right conversations with people at the right level, the analogy that I've used for years is sometimes you're talking to a turkey about thanksgiving, right? So if you're trying to actually help transform and the entity is feeling that they're impacted by that negatively, even though there's a senior direction, so working through the right levels the organization to make sure you're showing how you're enabling them, it's key it's part of this journey. Helping them understand the future and how it's valuable, 'cause otherwise you'll get people that push back, even though it's the right thing for the company. We've seen that time and time again. >> Well it's potentially a huge engagement, so do you guys have specific plays or campaigns that you know I can do to get started maybe do a little test case, any particular offerings that-- >> Mike: I think-- >> Do you want to talk about the campaigns? >> So ]s under the program of Elevate, we've got a couple of campaigns. So the biggest one we've been talking about is around the data center transformation, so that's kind of the first campaign that we're working on together. The next one is around moving JD Edwards specific applications to Oracle's Cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market through to general put that in as well. Those are our three major campaigns. >> So data center transformation we hit it pretty hard. I'm sorry the third one was Cloud-- >> Analytics. >> Sorry analytics right okay which is kind of an instate that everybody wants to get to. The JDE migration, so you've got what, situations where people have just, the systems. >> And I would say it's actually more of a JDE modernization, alright? >> Okay. >> So you have an organization, right? They may have a JDE or JD Edwards instance that's really it's older, they're maybe on version nine or something like that, they don't want to go all the way to SaaS 'cause they can't simplify the business processes. They need to do that, but they also want to take advantage of the higher level capabilities of Cloud computing, right? IOT, Mobil, et cetera right? So as a modernization, one of the things we're doing is an approach together we work with customers depending where they're going and go hey great, you can actually modernize by taking up this version of JDE through an upgrade process, but that allows you then to move it over to Oracle Cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get. There's a various kind of four major phases that we can do or entry points with the customer on the JDE modernization, we kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE, and as well as Oracle Consulting, and we actually are going to market that together, matter of fact, we're even at conferences together, talking about our approaches here and our future. >> Okay. So that'll allow you to get to a Cloud PaaS layer that'll allow you to sort of modernize that and get out of the sort of technical debt that's built up. >> Where customers are not ready to maybe move their entire data center, right? This gets them on the journey, right? That's the important pieces. We want to get them on the Cloud journey. >> In the analytics campaign, so it seems to me that a lot of companies don't have their data driven, they want to be data driven, but they're not there yet. And so, their data's in silos and so I would imagine that that's all helping them understand where the data is, breaking down, busting down those silos and then actually putting in sort of an analytics approach that drives their, drives us from data to insights. Is that fair? >> Yeah fair. Yeah it's not just doing reporting and dashboards it's actually having KPI-driven insights into their information and their data within their organizations. And so Deloitte has some pre-configured applications for HR, finance, and supply chains. >> So the existing EDW for example would be fitter into that, but then you've got agile infrastructure and processes that you're putting in place, bringing in AI and machine intelligence. That's kind of the future state that you're in. >> And it also has, they look at the particular that's one of the things we like about the other stuff that Deloitte has done. They've actually done the investment of the processes back into those particular business units that they do and actually have KPI-driven ones it prebuilt configurations that actually adds value. These are the metrics that should be driving an HR organization. Here's the metrics that should be driving finance. So rather than doing better analytics, hey help me write my report better. No, we're going to help you transform the way you should be running your business from a business financial transformation, that's why the partnership with Deloitte. So it's really changing the game of true analytics, not better BI. >> Right okay, guys, two power houses. Thanks so much for explaining in The Cube and to our audience, appreciate it. (mumbling) >> Alright, thank you everybody for watching we'll be right back with our next guest you're watching The Cube, from Chicago. We'll be right back right after the short break. (upbeat music)

>>from Menlo Park, California In the heart of Silicon Valley, it's the Cube covering cloud now. Awards 2020 Brought to you by Silicon Angle Media. Now here's Sonia category. >>Hi, and welcome to the Cube. I'm your host Sonia category, and we're on the ground at Facebook headquarters in Menlo Park, California covering Cloud now's top women entrepreneurs in Cloud Innovation Awards. >>Joining us today is Get the Schmidt CEO of Human. Get that. Welcome to the Cube. >>Thank you. Thanks for having me. >>So just give us a brief overview of your background and more about Humira. All right, A brief >>overview. Let's see. Um, I'll start off that I've been in the industry for some time now. Um, since ah, 97 which I used to actually work at this campus that we're here today at when it used to be Sun Microsystems. So I started out in technology in product management and marketing. Mainly, um, when java was coming out so early days and really learned a lot about what it takes to take a product or a concept out to market very exciting in those early days and sort of, you know, move towards looking at Industries and Sister focused on financial services into the lot around financial services marketing. Also it son. >>And then I moved >>to Denmark, which is sort of a surprise, But I'm married to a day and we decided we would try something different. So I moved to Denmark, working at a consulting company software consulting company based in Denmark, fairly small and Ah, and was part of sort of building out of the conference and business development business they had over there. And ah, and that was a way for us, for me to understand a completely other side of the business consulting aspects where you really build software for a customer and really understand, you know, sort of the customer solution needs that are required versus when you're working at a large enterprise company kind of are separated away from the customers. And that was there where I met the two founding team members of Humi Oh, Christian and Trust in at Tri Fork into you. Essentially, we've been working together for 10 years, and, uh, we sort of all felt like we could really come out with the world's best logging solution and, ah, this was out of some of the pain we were running into by running other solutions in the market. And so we took a leap into building our own product business. And so we did that in 2016. And so that's really what brought me here into the CEO role. So we have a three person leisure leadership or executive team, our founding team, which is to verily technical folks. So the guys that really built the product and and, uh, and keep it running and take it to the next level every single day. But what was missing was really that commercial kind of leader that was ready to take that role, and that's where I came in. So they were very supportive and and bringing me on board. So that was into 2016 where I started that >>that's awesome. So how do you think having like a business and marketing background versus a technical background has helped you become a successful CEO? Um, I >>think it's really, really hard if you don't have different profiles on your founding team to be able to run a successful tech business. So there's technology that you could have the world's greatest technology like an example would be my you know, my co founders were building an amazing product, but until they came into the room, they hadn't thought about going out and trying to get a customer to use it. And essentially, that is one of the issues there is that you can sit and build something and build the best product out there. But if you're not getting feedback really, really early in the design and the concepts of product development, then customers our search of it's not built in. And so a lot of the thought process around him. EOS We like to say customers are in our DNA. We build >>our product >>for people to use 6 to 8 hours a day, and they're in it every day. And so it keeps this feeling of a customer feedback loop. And even if you're technical, it's really exciting. You know that you build something that somebody uses every day. It looks at every day, and so that's the kind of energy that we've tried to, you know, instill. Or maybe I've tried to instill in Humi Oh, that you know, our customers really matter, and I think that's one of the ways that we've been able to move, Let's say really, really fast in building the right features the right functionality, um, and the right things for people are using it on the on the on, the on the other and essentially >>so okay. And, um so you're here to receive an award for being one of the top female entrepreneurs in cloud innovation. So congratulations and And how does it feel to win this award? Super >>exciting. I mean, I'm glad that there are organizations like Cloud now that are doing amazing things for women and and also, you know, making examples of folks that are doing interesting roles in our industry, especially around B two B software. I think that's a real area where there's not many CIOs or leaders in our space where there should be. And, uh, and I think part of it is actually kind of highlighting that. But, you know, the other side is sort of an event like this today is bringing together a lot of other profiles that are women or diverse profiles together to sort of, you know, talk about this problem and acknowledge and also take, let's say, more of an active stance around, you know, making this place not so scary. I mean, I think I remember one of my early events and I was raising our series A when I walked into a VC event where there were no other female CIOs out there. There's 100 CIOs and I was the only one. And I think one of the hard parts is I walked in there and, you know, it felt a bit uncomfortable, But there were some. There were two amazing VC partners at the company that I first started talking to, and that just really used the sort of like, you know, I guess. Uncomfortable, itty. So I think the main focus at things like today or, you know, the people that are here today. So I think we can help each other. And I think that's something that you know. That's something that I'd like to see more of, that we actively sort of create environments and communities for that to happen, and cloud now is one of them. >>So I think a lot of women have had that experience where they're the only woman in the room, you know, and it's just really hard to like. Figure out your path from there. So as the company as Julio, how do you What's your strategy for inclusion? >>Um, so, like I like to call it active inclusion. I think part of this is like having a diverse workforce, which is, you know, obviously including women and different backgrounds. Other things. But >>one of >>the big things we think about at Hume Eo is we really like to, let's say, celebrate people's differences so like that you're able to be yourself and almost eccentric is a good thing. And be able to feel safe in that environment to feel safe, that you can express your opinions, feel comfortable and safe when you're, you know, coming with a opposite viewpoint. Because the diversity of thought is really what we're trying to include in our company. So it means bringing together folks that don't look like each other where exactly, the same clothes and do the exact same hobbies and come from the same countries like we have. Ah, very, you know, global workforce. So we have folks, you know in Denmark of an office in Denmark. We have an office in the UK, and we have folks all over the U. S. We have a lot of backgrounds that have come from different cultures, and I think there's a beauty to that. There's a beauty to actually combining a lot of ways to solve problems. Everyone from a different culture has different ways of solving those. And so I think part of this is all around making that. Okay, right. So, you know, active inclusion is a way to to sort of put it into terms. So So we're definitely looking for people, Actively, that would like to join something like >>this. So I love that. Um, So if you were personally, if you were to have your own board of directors, like, who would they be? Um, it's not really >>the who. It's almost like the profiles or the people. I mean, we already have a personal board like I call it. I mean, it's something that I actively started doing. Um, once I once I started with a company board, I realized, you know, I probably need my own personal board, my own sort of support infrastructure That includes folks like my family, my sisters and my mom. It also includes you know, some younger junior folks that are actually much younger >>than me. >>But I learned so much from so um, to one of my good friend Cindy, who's who is brilliant at describing technology concepts. And and I think just some of the conversations I've had with her just opened my eyes to something that I hadn't seen before. And I think that's the area where I like to say the personal board isn't exactly you know people. It's it's profile. So along the way, as you grow, you're looking for new types of profiles. Let's say you want to learn about a new concept or a new technology or, you know, get better at running or something. So it's part of bringing those profiles in tow, learn about it and then back to this board concept. It's It's not as though it's a linked in network or it's actually sort of a group of people that you sort of rely on. And then it's a It's a two way street. So essentially, you know, there could be things that the other person could gain from knowing me, and ideally, that those were the best relationships in a personal board. So so I encourage alive women to do this because it builds a support infrastructure that is not related to your job. It's not your manager. It's not your co worker. You kind of feel some level of freedom having those discussions because those people aren't looking at your company. They're looking at helping you. So So that's That's sort of the concepts around >>the personal board idea and anything as women like having a sport system is so necessary, especially in this, like male dominated industry. Well, I think it's back >>to that whole feeling like you're the one person in the room, right? Right, so you're not the one person in the room, and I think we need to change that. And I think that's like some you know, all of our kind of roles that for all the women intact. I mean, it's sort of like something that we could help each other with right, and and if we don't do it actively, I mean, you know the numbers and we know you know the percentages of these things. If we want to change that, it does require some active interest on on our part to make that happen. And I think those are the areas where I see, like, the support infrastructures, the events like this really kind of engaging, um, us to be aware and doing something about the >>problem. Thank you so much for being on the key of love having you here. Thanks for >>having me. I really appreciate it. >>I'm Sonia to Garry. Thanks for watching the Cube. Stay tuned for more. >>Yeah, yeah.

>> Announcer: Live from Las Vegas, it's theCube covering AWS re:Invent 2019. Brought to you by Amazon Web Services and intel along with its ecosystem partners. >> Welcome back to theCube live in Las Vegas. I'm Lisa Martin and we are coming to you from AWS re:Invent 19. I'm with Stu Miniman. This is our second day of two sets of theCube coverage. And we are pleased to welcome a couple of guests from Citrix. To my left is Matt Lull Managing Director of Global Strategic Alliances and we have Marissa Schmidt, Senior Director of Product Management. Guys, welcome to theCube. >> Thank you. It's a pleasure to be here. >> Thank you. >> So here we are with 65,000 or so of our close friends with AWS. Matt you have been managing the AWS Citrix relationship, I think you said for about 10 years. >> I have. >> Give our audience an overview of what Citrix and AWS are doing and the evolution of this partnership. >> Well 10 years ago when we started Cloud was brand new, Amazon's re:Invent conference hadn't even started yet and nothing Citrix made worked on Amazon. And now we are pleased to say that everything Citrix makes works on Amazon. And we actually have hundreds of customers and hundreds and hundreds of thousands of users using Citrix on AWS everyday. And the pace of innovation in that last decade has accelerated. We've done more net new product innovation in the last 10 years than in the previous 20 before that. It's been a fast-paced environment. >> Well and a strong and growing partnership. I remember the first year I came to the show it was 2013 and I think Citrix had one of the largest booths at the conference there. You keep adding to that. Marissa, let's not bury the lead any further. There is some hard news dropped today. Help understand, help us share the new news today. >> Marissa: Yeah, absolutely. There are many announcements. It started yesterday actually at the keynote with the Outpost announcement. The we have the ADC validation with Outpost and the only ADC in that validation. And then we also have the ingress routing that also was announced yesterday and our solution integration into that. Both blogs went out yesterday. And then we had a press release this morning that talked about our quick starts with AWS quick start for Citrix ADC as well as the rest of the instant site that now we support. >> Okay, so I'd love to dig in a little bit on the Outpost if we can. >> Yes, sure. >> My background is networking too. So people have been geeking out trying to understand this. You know, some of the key, you know, the secret sauce inside of Outpost is that nitro chip from Annapurna help really extend what AWS is doing in the public Cloud to a customer's data center. Reminds me a little bit of what NetWorker has been doing for customer applications for quite a long time. So how do those pieces fit together? >> So for AWS right, the focus is for some of the customers that has more applications-centric that is on-prem, that has regulatory compliance requirements and for those customers that really want to do that hybrid with on-prem and Cloud, this is the best approach for them that they can use the on-prem solution with Outpost but put the VPX, the NetScaler ADC VPX on Outpost and provide that solution for hybrid customers that want to have the enterprise grade solutions on-prem and Cloud. >> I look at Outpost as more strategic than just a conversation or on a new piece of hardware and some new nitro hyper visors, right? This is Amazon's first move into hybrid Cloud which we've been doing since the beginning. And when you look at where Citrix ADC is already deployed, it is a leading piece of technology in the corporate data center in the DMZ, protecting the corporate assets. So now we have a situation where we've been helping Amazon with hybrid for a long time. Now they're moving their infrastructure onto premise and we're starting to combine our on-premise footprint with their on-premise footprint and its really actually an interesting time and place to be working not just with Citrix ADC, which is first, but in the future with things like Citrix SD-WAN, which is the other major piece of our networking portfolio. >> So when theCube was at Citrix energy, I think that was back in, I'm going to guess April, in the Spring. So many Cube shows, I lose track. We, Keith Jones and I were there for several days, got to talk with a lot of your customers, your leaders all about how ultimately the workforce, five generations in the workforce today, which kind of surprised me, but how everybody is distributed and that's how people need to work. Similar with how organizations are now hybrid multicloud. There's all of these technologies that need to work together in order to enable the worker to deliver what that business needs to drive differentiation. Talk to us a little bit about some of the parallels there in terms of what Citrix delivers to the workspace and how what you're doing with Amazon is going to allow businesses, whether its a retail organization or a bank to enable, ultimately, at the end of the day those workers to get stuff done wherever they are, so they can access applications whether they're on-prem or in the Cloud. >> So the workspace conversation is an interesting one and you used a word, hybrid multicloud, which you don't necessarily hear in Amazon circles a lot, they are the largest of the Clouds, right. But that said, our job is to deliver every application known to mankind, and that is those that are built on-premise by IT and those that are running as SaaS from any provider and there are companies that make important applications that also have Clouds. We tie all that together, right. So with the Citrix networking, the ability to terminate the end user's SSL session, we can see all the traffic, regardless of where it originated. We can tell what that user is doing in real time and we can apply new and innovative solutions like things that Amazon is a leader in around machine learning and artificial intelligence at the user level to say, is what this user is doing today normal for that particular user. Not for some other user, normal for you, and are you behaving unusually, cause if you're behaving unusually maybe there's something we need to click down in on. So we're looking really, really closely at how the world is evolving to move to where SaaS is happening. IT is losing control of the application servers and they're moving out into SaaS land. Many of them are on Amazon, some of them are elsewhere, and all of them have to be governed. And that's where we're really investing heavily and redefining what is Citrix for the future. >> Now so Matt, it's always interesting when people look at this space they're like, oh Cloud is changing everything, you know, Amazon is taking over the world. So I mentioned Citrix had the biggest booth back in 2013. There was a little product called AWS WorkSpaces that was announced and everybody was like, well, it was nice that Citrix had a long relationship with Amazon. I guess we won't be seeing them next year. Well, here we are 2019, strong partnership. Help us understand how that dynamic works out and how, you know, you worked through some of these coopetition environments. >> That's a fun one. So we run into coopetition across the board. We have some in the networking arena with core load-balancing services that exist in all the Cloud platforms. And we have a variety of startups in the Daas land. And when I look at WorkSpaces, it's a quality product for a simple user that needs it now and needs a small quantity. Some of the larger enterprises are looking at it for simplicity but when I look at what it's capable of doing and what it's total costs are versus what happens when we can deploy the 30-year mature solution from Citrix on Amazon, we still find a large percentage of the customers needs what Citrix delivers. So we have actually probably more Citrix WorkSpaces users on Amazon than on any other Cloud. It's depending on how you meter it. It's a little hard to say with total accuracy but it's been supported on Amazon for longer than anywhere else. And we know customers appreciate the combination of the two and we look at what AWS is able to provide from a platform perspective, you know, with a built-in high availability, built-in global reach, built-in global performance. Those things are all valuable to our customers and they deliver a great platform at a reasonable price. So we support that. At the same time, we're moving out of that market, that pixel remote presentation market, well, we're not moving out of it, we're moving beyond it. It is still a core part of our portfolio but our investments going forward are in delivering those applications into the intelligent workspace regardless of where they originate. Many of those user sessions won't actually be virtualized at all. They'll be controlled, governed, and secured with Citrix Workspace and Citrix networking technology but won't be dependent on things like DaaS, which is what you get out of those services like AWS WorkSpaces. >> Marissa, when I talk to customers, one of the biggest challenges they have is, you know, the changing portfolio of applications that they're dealing with. It's getting more complicated. It's gone from monolith to microservices, everything is distributed, you know, it's not just my data that's in the public Cloud, Edge now becomes a larger piece of the discussion. These are the types of solutions that Citrix has been helping a long time. What is different now about the application landscape and how Citrix is working with customers than it might have been a few years ago. >> What's different now is definitely the more modernization of the apps, right? The digital transformation was talked about in all the different keynotes yesterday and today. And as we do that we need to help our customers adapt with the applications that they do have whether it's the legacy apps or the more adaptable, flexible apps that can go to the Cloud with Kubernetes and that container environment but with Citrix solutions you can actually do that with Citrix ADC being in a container environment so we can provide that east west traffic with Citrix CPX while we also have the north south traffic for the legacy 3-tier web apps that's always going to be there for the majority of the customers, right. But what makes Citrix unique is that we do have single code base for Citrix ADC that can run in the traditional apps as well as now the east west traffic for all more modernized applications which is critical. And for Citrix overall, it's 3 pillars, right? One is the end user experience that's always got to be stellar. And number two is giving the customer a choice of which environment they want to work with. And lastly, it's providing security. And with the Citrix overall solution where Workspace from an end user perspective and the apps closer to the applications with the Citrix ADC together provides that end-to-end solution for our customers. >> Marissa, can you give us an example of, I presume as the Senior Director of Product Management you're in the field a lot, you talk with customers. Some of the things that AWS showed yesterday on stage, we saw Cerner talking about their healthcare transformation, we saw Goldman Sachs CEO go from D.J. to talking about how they have completely transformed their consumer finance business. What's an example that you think, when you're out in the field, really articulates the value that Citrix delivers enabling a business to truly transform to that? Regardless of the application infrastructure they're able to harness the data, extract insight from it and use it as a business differentiator. >> Yeah, so for our customers it really resonates, the Cerner one and Goldman Sachs because they're, you know, we deal with a lot of our customers that way, Especially in the healthcare industry. Whether they decide to go some of it in the Cloud, you still want to, what's important for them is that compliance, that security, that data protection. It still matters whether it's on-prem or in the Cloud environment. And so in that case, this is where our Citrix solution, as they decide to take some work loads on-prem or on the Clouds, they can still use this same feature-rich capabilities that Citrix ADC or the Workspace have to connect all their applications in one place and still get the initiatives that they need for their company to get the best our-wide as well as not having to do the day-to-day data center changes. Now they can be flexible by putting that in the Cloud. >> So if you look at how customers have been coming across Citrix and which portion of the customer organizations we've historically spoken to, you know, 20 years ago we talked to the desktop team and we were a solution by getting client server applications on the desktops, which was a big problem 20 years ago. It's not as much of a problem today but even as you move to browser-based environments, security and governance are more important than ever, right? We see it every day. Another company got hacked. Another situation happened. There was another consumer privacy breach. We see the rules and regulations coming out in a number of countries about how data has to be protected and companies become liable if there's problems. So, increasingly we're seeing companies come to Citrix and saying we need help with governance compliance and security. And increasingly we're marrying the unique networking capabilities that we have with the unique workspace or application desktop virtualization capabilities to create new and improved solutions that really kind of change the game for how end users get access to applications, remove the need to know passwords, which limits the ability to actually lose them, and simplify the process of making sure your data is where you believe it should be. >> Matt, you know, such a deep partnership, I'm curious, there's so many announcements that Amazon talked about, is there anything that's either jumped out at you or places beyond? We talked about some of the Outpost specific things but I think about machine learning is exciting a lot of people. People want to be able to plug into these environments either natively or through hybrid environments. Where does that play into your discussions with customers? >> So when we look at how Citrix is transforming what we do there's a lot of things that go on behind the scenes, we are a substantial Amazon customer. We are one of their largest. So, you can take for granted that we're consuming a lot of their cutting edge capabilities as we build our cutting edge capabilities. We're not necessarily directly exposing something like Amazon machine learning as a button in our environment but when you look at what they're doing with end user computing applications, they're moving into a world where, they mentioned in the keynote yesterday that one of their fastest growing services is Amazon Connect. One of our best use cases is for task workers and call centers. You might imagine that there's going to be a future there that we should be looking at. And so I do see the things that they're innovating becoming relevant to us in ways that are more than just about the infrastructure as a way to power servers, storage, and networking for Citrix environments but also becoming content, rich content, both Amazon-owned rich content and their SaaS ecosystem that's built on Amazon, all those startups they talked about this morning, all of them running in our Citrix Workspace. It requires us to have the right networking solutions in place, the right identify trust solutions in place and make it really easy for customers to consume as a service instead of a pile of bits that they get to construct themselves. >> Well Matt and Marissa, we thank you for joining us on theCUBE today at re:Invent telling us what's new with Citrix and what's new with the evolution of the partnership. Thanks for your time. >> It's a pleasure to be here. >> Thank you. >> For Stu Miniman, I am Lisa Martin. You're watching theCUBE live from AWS re:Invest 19. We'll be right back.

(upbeat intro music) >> Hello everyone. Welcome to theCUBE's coverage of International Women's Day. I'm your host, John Furrier, here in Palo Alto, California. Got a special remote guest coming in. Teresa Carlson, President and Chief Commercial Officer at Flexport, theCUBE alumni, one of the first, let me go back to 2013, Teresa, former AWS. Great to see you. Thanks for coming on. >> Oh my gosh, almost 10 years. That is unbelievable. It's hard to believe so many years of theCUBE. I love it. >> It's been such a great honor to interview you and follow your career. You've had quite the impressive run, executive level woman in tech. You've done such an amazing job, not only in your career, but also helping other women. So I want to give you props to that before we get started. Thank you. >> Thank you, John. I, it's my, it's been my honor and privilege. >> Let's talk about Flexport. Tell us about your new role there and what it's all about. >> Well, I love it. I'm back working with another Amazonian, Dave Clark, who is our CEO of Flexport, and we are about 3,000 people strong globally in over 90 countries. We actually even have, we're represented in over 160 cities and with local governments and places around the world, which I think is super exciting. We have over 100 network partners and growing, and we are about empowering the global supply chain and trade and doing it in a very disruptive way with the use of platform technology that allows our customers to really have visibility and insight to what's going on. And it's a lot of fun. I'm learning new things, but there's a lot of technology in this as well, so I feel right at home. >> You quite have a knack from mastering growth, technology, and building out companies. So congratulations, and scaling them up too with the systems and processes. So I want to get into that. Let's get into your personal background. Then I want to get into the work you've done and are doing for empowering women in tech. What was your journey about, how did it all start? Like, I know you had a, you know, bumped into it, you went Microsoft, AWS. Take us through your career, how you got into tech, how it all happened. >> Well, I do like to give a shout out, John, to my roots and heritage, which was a speech and language pathologist. So I did start out in healthcare right out of, you know, university. I had an undergraduate and a master's degree. And I do tell everyone now, looking back at my career, I think it was super helpful for me because I learned a lot about human communication, and it has done me very well over the years to really try to understand what environments I'm in and what kind of individuals around the world culturally. So I'm really blessed that I had that opportunity to work in healthcare, and by the way, a shout out to all of our healthcare workers that has helped us get through almost three years of COVID and flu and neurovirus and everything else. So started out there and then kind of almost accidentally got into technology. My first small company I worked for was a company called Keyfile Corporation, which did workflow and document management out of Nashua, New Hampshire. And they were a Microsoft goal partner. And that is actually how I got into big tech world. We ran on exchange, for everybody who knows that term exchange, and we were a large small partner, but large in the world of exchange. And those were the days when you would, the late nineties, you would go and be in the same room with Bill Gates and Steve Ballmer. And I really fell in love with Microsoft back then. I thought to myself, wow, if I could work for a big tech company, I got to hear Bill on stage about saving, he would talk about saving the world. And guess what my next step was? I actually got a job at Microsoft, took a pay cut and a job downgrade. I tell this story all the time. Took like three downgrades in my role. I had been a SVP and went to a manager, and it's one of the best moves I ever made. And I shared that because I really didn't know the world of big tech, and I had to start from the ground up and relearn it. I did that, I just really loved that job. I was at Microsoft from 2000 to 2010, where I eventually ran all of the U.S. federal government business, which was a multi-billion dollar business. And then I had the great privilege of meeting an amazing man, Andy Jassy, who I thought was just unbelievable in his insights and knowledge and openness to understanding new markets. And we talked about government and how government needed the same great technology as every startup. And that led to me going to work for Andy in 2010 and starting up our worldwide public sector business. And I pinch myself some days because we went from two people, no offices, to the time I left we had over 10,000 people, billions in revenue, and 172 countries and had done really amazing work. I think changing the way public sector and government globally really thought about their use of technology and Cloud computing in general. And that kind of has been my career. You know, I was there till 2020, 21 and then did a small stint at Splunk, a small stint back at Microsoft doing a couple projects for Microsoft with CEO, Satya Nadella, who is also an another amazing CEO and leader. And then Dave called me, and I'm at Flexport, so I couldn't be more honored, John. I've just had such an amazing career working with amazing individuals. >> Yeah, I got to say the Amazon One well-documented, certainly by theCUBE and our coverage. We watched you rise and scale that thing. And like I said at a time, this will when we look back as a historic run because of the build out. I mean as a zero to massive billions at a historic time where government was transforming, I would say Microsoft had a good run there with Fed, but it was already established stuff. Federal business was like, you know, blocking and tackling. The Amazon was pure build out. So I have to ask you, what was your big learnings? Because one, you're a Seattle big tech company kind of entrepreneurial in the sense of you got, here's some working capital seed finance and go build that thing, and you're in DC and you're a woman. What did you learn? >> I learned that you really have to have a lot of grit. You, my mom and dad, these are kind of more southern roots words, but stick with itness, you know. you can't give up and no's not in your vocabulary. I found no is just another way to get to yes. That you have to figure out what are all the questions people are going to ask you. I learned to be very patient, and I think one of the things John, for us was our secret sauce was we said to ourselves, if we're going to do something super transformative and truly disruptive, like Cloud computing, which the government really had not utilized, we had to be patient. We had to answer all their questions, and we could not judge in any way what they were thinking because if we couldn't answer all those questions and prove out the capabilities of Cloud computing, we were not going to accomplish our goals. And I do give so much credit to all my colleagues there from everybody like Steve Schmidt who was there, who's still there, who's the CISO, and Charlie Bell and Peter DeSantis and the entire team there that just really helped build that business out. Without them, you know, we would've just, it was a team effort. And I think that's the thing I loved about it was it was not just sales, it was product, it was development, it was data center operations, it was legal, finance. Everybody really worked as a team and we were on board that we had to make a lot of changes in the government relations team. We had to go into Capitol Hill. We had to talk to them about the changes that were required and really get them to understand why Cloud computing could be such a transformative game changer for the way government operates globally. >> Well, I think the whole world and the tech world can appreciate your work and thank you later because you broke down those walls asking those questions. So great stuff. Now I got to say, you're in kind of a similar role at Flexport. Again, transformative supply chain, not new. Computing wasn't new when before Cloud came. Supply chain, not a new concept, is undergoing radical change and transformation. Online, software supply chain, hardware supply chain, supply chain in general, shipping. This is a big part of our economy and how life is working. Similar kind of thing going on, build out, growth, scale. >> It is, it's very much like that, John, I would say, it's, it's kind of a, the model with freight forwarding and supply chain is fairly, it's not as, there's a lot of technology utilized in this global supply chain world, but it's not integrated. You don't have a common operating picture of what you're doing in your global supply chain. You don't have easy access to the information and visibility. And that's really, you know, I was at a conference last week in LA, and it was, the themes were so similar about transparency, access to data and information, being able to act quickly, drive change, know what was happening. I was like, wow, this sounds familiar. Data, AI, machine learning, visibility, common operating picture. So it is very much the same kind of themes that you heard even with government. I do believe it's an industry that is going through transformation and Flexport has been a group that's come in and said, look, we have this amazing idea, number one to give access to everyone. We want every small business to every large business to every government around the world to be able to trade their goods, think about supply chain logistics in a very different way with information they need and want at their fingertips. So that's kind of thing one, but to apply that technology in a way that's very usable across all systems from an integration perspective. So it's kind of exciting. I used to tell this story years ago, John, and I don't think Michael Dell would mind that I tell this story. One of our first customers when I was at Keyfile Corporation was we did workflow and document management, and Dell was one of our customers. And I remember going out to visit them, and they had runners and they would run around, you know, they would run around the floor and do their orders, right, to get all those computers out the door. And when I think of global trade, in my mind I still see runners, you know, running around and I think that's moved to a very digital, right, world that all this stuff, you don't need people doing this. You have machines doing this now, and you have access to the information, and you know, we still have issues resulting from COVID where we have either an under-abundance or an over-abundance of our supply chain. We still have clogs in our shipping, in the shipping yards around the world. So we, and the ports, so we need to also, we still have some clearing to do. And that's the reason technology is important and will continue to be very important in this world of global trade. >> Yeah, great, great impact for change. I got to ask you about Flexport's inclusion, diversity, and equity programs. What do you got going on there? That's been a big conversation in the industry around keeping a focus on not making one way more than the other, but clearly every company, if they don't have a strong program, will be at a disadvantage. That's well reported by McKinsey and other top consultants, diverse workforces, inclusive, equitable, all perform better. What's Flexport's strategy and how are you guys supporting that in the workplace? >> Well, let me just start by saying really at the core of who I am, since the day I've started understanding that as an individual and a female leader, that I could have an impact. That the words I used, the actions I took, the information that I pulled together and had knowledge of could be meaningful. And I think each and every one of us is responsible to do what we can to make our workplace and the world a more diverse and inclusive place to live and work. And I've always enjoyed kind of the thought that, that I could help empower women around the world in the tech industry. Now I'm hoping to do my little part, John, in that in the supply chain and global trade business. And I would tell you at Flexport we have some amazing women. I'm so excited to get to know all. I've not been there that long yet, but I'm getting to know we have some, we have a very diverse leadership team between men and women at Dave's level. I have some unbelievable women on my team directly that I'm getting to know more, and I'm so impressed with what they're doing. And this is a very, you know, while this industry is different than the world I live in day to day, it's also has a lot of common themes to it. So, you know, for us, we're trying to approach every day by saying, let's make sure both our interviewing cycles, the jobs we feel, how we recruit people, how we put people out there on the platforms, that we have diversity and inclusion and all of that every day. And I can tell you from the top, from Dave and all of our leaders, we just had an offsite and we had a big conversation about this is something. It's a drum beat that we have to think about and live by every day and really check ourselves on a regular basis. But I do think there's so much more room for women in the world to do great things. And one of the, one of the areas, as you know very well, we lost a lot of women during COVID, who just left the workforce again. So we kind of went back unfortunately. So we have to now move forward and make sure that we are giving women the opportunity to have great jobs, have the flexibility they need as they build a family, and have a workplace environment that is trusted for them to come into every day. >> There's now clear visibility, at least in today's world, not withstanding some of the setbacks from COVID, that a young girl can look out in a company and see a path from entry level to the boardroom. That's a big change. A lot than even going back 10, 15, 20 years ago. What's your advice to the folks out there that are paying it forward? You see a lot of executive leaderships have a seat at the table. The board still underrepresented by most numbers, but at least you have now kind of this solidarity at the top, but a lot of people doing a lot more now than I've seen at the next levels down. So now you have this leveled approach. Is that something that you're seeing more of? And credit compare and contrast that to 20 years ago when you were, you know, rising through the ranks? What's different? >> Well, one of the main things, and I honestly do not think about it too much, but there were really no women. There were none. When I showed up in the meetings, I literally, it was me or not me at the table, but at the seat behind the table. The women just weren't in the room, and there were so many more barriers that we had to push through, and that has changed a lot. I mean globally that has changed a lot in the U.S. You know, if you look at just our U.S. House of Representatives and our U.S. Senate, we now have the increasing number of women. Even at leadership levels, you're seeing that change. You have a lot more women on boards than we ever thought we would ever represent. While we are not there, more female CEOs that I get an opportunity to see and talk to. Women starting companies, they do not see the barriers. And I will share, John, globally in the U.S. one of the things that I still see that we have that many other countries don't have, which I'm very proud of, women in the U.S. have a spirit about them that they just don't see the barriers in the same way. They believe that they can accomplish anything. I have two sons, I don't have daughters. I have nieces, and I'm hoping someday to have granddaughters. But I know that a lot of my friends who have granddaughters today talk about the boldness, the fortitude, that they believe that there's nothing they can't accomplish. And I think that's what what we have to instill in every little girl out there, that they can accomplish anything they want to. The world is theirs, and we need to not just do that in the U.S., but around the world. And it was always the thing that struck me when I did all my travels at AWS and now with Flexport, I'm traveling again quite a bit, is just the differences you see in the cultures around the world. And I remember even in the Middle East, how I started seeing it change. You've heard me talk a lot on this program about the fact in both Saudi and Bahrain, over 60% of the tech workers were females and most of them held the the hardest jobs, the security, the architecture, the engineering. But many of them did not hold leadership roles. And that is what we've got to change too. To your point, the middle, we want it to get bigger, but the top, we need to get bigger. We need to make sure women globally have opportunities to hold the most precious leadership roles and demonstrate their capabilities at the very top. But that's changed. And I would say the biggest difference is when we show up, we're actually evaluated properly for those kind of roles. We have a ways to go. But again, that part is really changing. >> Can you share, Teresa, first of all, that's great work you've done and I wan to give you props of that as well and all the work you do. I know you champion a lot of, you know, causes in in this area. One question that comes up a lot, I would love to get your opinion 'cause I think you can contribute heavily here is mentoring and sponsorship is huge, comes up all the time. What advice would you share to folks out there who were, I won't say apprehensive, but maybe nervous about how to do the networking and sponsorship and mentoring? It's not just mentoring, it's sponsorship too. What's your best practice? What advice would you give for the best way to handle that? >> Well yeah, and for the women out there, I would say on the mentorship side, I still see mentorship. Like, I don't think you can ever stop having mentorship. And I like to look at my mentors in different parts of my life because if you want to be a well-rounded person, you may have parts of your life every day that you think I'm doing a great job here and I definitely would like to do better there. Whether it's your spiritual life, your physical life, your work life, you know, your leisure life. But I mean there's, and there's parts of my leadership world that I still seek advice from as I try to do new things even in this world. And I tried some new things in between roles. I went out and asked the people that I respected the most. So I just would say for sure have different mentorships and don't be afraid to have that diversity. But if you have mentorships, the second important thing is show up with a real agenda and questions. Don't waste people's time. I'm very sensitive today. If you're, if you want a mentor, you show up and you use your time super effectively and be prepared for that. Sponsorship is a very different thing. And I don't believe we actually do that still in companies. We worked, thank goodness for my great HR team. When I was at AWS, we worked on a few sponsorship programs where for diversity in general, where we would nominate individuals in the company that we felt that weren't, that had a lot of opportunity for growth, but they just weren't getting a seat at the table. And we brought 'em to the table. And we actually kind of had a Chatham House rules where when they came into the meetings, they had a sponsor, not a mentor. They had a sponsor that was with them the full 18 months of this program. We would bring 'em into executive meetings. They would read docs, they could ask questions. We wanted them to be able to open up and ask crazy questions without, you know, feeling wow, I just couldn't answer this question in a normal environment or setting. And then we tried to make sure once they got through the program that we found jobs and support and other special projects that they could go do. But they still had that sponsor and that group of individuals that they'd gone through the program with, John, that they could keep going back to. And I remember sitting there and they asked me what I wanted to get out of the program, and I said two things. I want you to leave this program and say to yourself, I would've never had that experience if I hadn't gone through this program. I learned so much in 18 months. It would probably taken me five years to learn. And that it helped them in their career. The second thing I told them is I wanted them to go out and recruit individuals that look like them. I said, we need diversity, and unless you all feel that we are in an inclusive environment sponsoring all types of individuals to be part of this company, we're not going to get the job done. And they said, okay. And you know, but it was really one, it was very much about them. That we took a group of individuals that had high potential and a very diverse with diverse backgrounds, held 'em up, taught 'em things that gave them access. And two, selfishly I said, I want more of you in my business. Please help me. And I think those kind of things are helpful, and you have to be thoughtful about these kind of programs. And to me that's more sponsorship. I still have people reach out to me from years ago, you know, Microsoft saying, you were so good with me, can you give me a reference now? Can you talk to me about what I should be doing? And I try to, I'm not pray 100%, some things pray fall through the cracks, but I always try to make the time to talk to those individuals because for me, I am where I am today because I got some of the best advice from people like Don Byrne and Linda Zecker and Andy Jassy, who were very honest and upfront with me about my career. >> Awesome. Well, you got a passion for empowering women in tech, paying it forward, but you're quite accomplished and that's why we're so glad to have you on the program here. President and Chief Commercial Officer at Flexport. Obviously storied career and your other jobs, specifically Amazon I think, is historic in my mind. This next chapter looks like it's looking good right now. Final question for you, for the few minutes you have left. Tell us what you're up to at Flexport. What's your goals as President, Chief Commercial Officer? What are you trying to accomplish? Share a little bit, what's on your mind with your current job? >> Well, you kind of said it earlier. I think if I look at my own superpowers, I love customers, I love partners. I get my energy, John, from those interactions. So one is to come in and really help us build even a better world class enterprise global sales and marketing team. Really listen to our customers, think about how we interact with them, build the best executive programs we can, think about new ways that we can offer services to them and create new services. One of my favorite things about my career is I think if you're a business leader, it's your job to come back around and tell your product group and your services org what you're hearing from customers. That's how you can be so much more impactful, that you listen, you learn, and you deliver. So that's one big job. The second job for me, which I am so excited about, is that I have an amazing group called flexport.org under me. And flexport.org is doing amazing things around the world to help those in need. We just announced this new funding program for Tech for Refugees, which brings assistance to millions of people in Ukraine, Pakistan, the horn of Africa, and those who are affected by earthquakes. We just took supplies into Turkey and Syria, and Flexport, recently in fact, just did sent three air shipments to Turkey and Syria for these. And I think we did over a hundred trekking shipments to get earthquake relief. And as you can imagine, it was not easy to get into Syria. But you know, we're very active in the Ukraine, and we are, our goal for flexport.org, John, is to continue to work with our commercial customers and team up with them when they're trying to get supplies in to do that in a very cost effective, easy way, as quickly as we can. So that not-for-profit side of me that I'm so, I'm so happy. And you know, Ryan Peterson, who was our founder, this was his brainchild, and he's really taken this to the next level. So I'm honored to be able to pick that up and look for new ways to have impact around the world. And you know, I've always found that I think if you do things right with a company, you can have a beautiful combination of commercial-ity and giving. And I think Flexport does it in such an amazing and unique way. >> Well, the impact that they have with their system and their technology with logistics and shipping and supply chain is a channel for societal change. And I think that's a huge gift that you have that under your purview. So looking forward to finding out more about flexport.org. I can only imagine all the exciting things around sustainability, and we just had Mobile World Congress for Big Cube Broadcast, 5Gs right around the corner. I'm sure that's going to have a huge impact to your business. >> Well, for sure. And just on gas emissions, that's another thing that we are tracking gas, greenhouse gas emissions. And in fact we've already reduced more than 300,000 tons and supported over 600 organizations doing that. So that's a thing we're also trying to make sure that we're being climate aware and ensuring that we are doing the best job we can at that as well. And that was another thing I was honored to be able to do when we were at AWS, is to really cut out greenhouse gas emissions and really go global with our climate initiatives. >> Well Teresa, it's great to have you on. Security, data, 5G, sustainability, business transformation, AI all coming together to change the game. You're in another hot seat, hot roll, big wave. >> Well, John, it's an honor, and just thank you again for doing this and having women on and really representing us in a big way as we celebrate International Women's Day. >> I really appreciate it, it's super important. And these videos have impact, so we're going to do a lot more. And I appreciate your leadership to the industry and thank you so much for taking the time to contribute to our effort. Thank you, Teresa. >> Thank you. Thanks everybody. >> Teresa Carlson, the President and Chief Commercial Officer of Flexport. I'm John Furrier, host of theCUBE. This is International Women's Day broadcast. Thanks for watching. (upbeat outro music)

>> Hey everyone. Welcome back to theCUBE's coverage day two of CloudNative Security CON 23. Lisa Martin here in studio in Palo Alto with John Furrier. John, we've had some great conversations. I've had a global event. This was a global event. We had Germany on yesterday. We had the Boston Studio. We had folks on the ground in Seattle. Lot of great conversations, a lot of great momentum at this event. What is your number one takeaway with this inaugural event? >> Well, first of all, our coverage with our CUBE alumni experts coming in remotely this remote event for us, I think this event as an inaugural event stood out because one, it was done very carefully and methodically from the CNCF. I think they didn't want to overplay their hand relative to breaking out from CUBE CON So Kubernetes success and CloudNative development has been such a success and that event and ecosystem is booming, right? So that's the big story is they have the breakout event and the question was, was it a good call? Was it successful? Was it going to, would the dog hunt as they say, in this case, I think the big takeaway is that it was successful by all measures. One, people enthusiastic and confident that this has the ability to stand on its own and still contribute without taking away from the benefits and growth of Kubernetes CUBE CON and CloudNative console. So that was the key. Hallway conversations, the sessions all curated and developed properly to be different and focused for that reason. So I think the big takeaway is that the CNCF did a good job on how they rolled this out. Again, it was very intimate event small reminds me of first CUBE CON in Seattle, kind of let's test it out. Let's see how it goes. Again, clearly it was people successful and they understood why they're doing it. And as we commented out in our earlier segments this is not something new. Amazon Web Services has re:Invent and re:Inforce So a lot of parallels there. I see there. So I think good call. CNCF did the right thing. I think this has legs. And then as Dave pointed out, Dave Vellante, on our last keynote analysis was the business model of the hackers is better than the business model of the industry. They're making more money, it costs less so, you know, they're playing offense and the industry playing defense. That has to change. And as Dave pointed out we have to make the cost of hacking and breaches and cybersecurity higher so that the business model crashes. And I think that's the strategic imperative. So I think the combination of the realities of the market globally and open source has to go faster. It's good to kind of decouple and be highly cohesive in the focus. So to me that's the big takeaway. And then the other one is, is that there's a lot more security problems still unresolved. The emphasis on developers productivity is at risk here, if not solved. You saw supply chain software, again, front and center and then down in the weeds outside of Kubernetes, things like BIND and DNS were brought up. You're seeing the Linux kernel. Really important things got to be paid attention to. So I think very good call, very good focus. >> I would love if for us to be able to, as the months go on talk to some of the practitioners that actually got to attend. There were 72 sessions, that's a lot of content for a small event. Obviously to your point, very well curated. We did hear from some folks yesterday who were just excited to get the community back together in person. To your point, having this dedicated focus on CloudNativesecurity is incredibly important. You talked about, you know, the offense defense, the fact that right now the industry needs to be able to pivot from being on defense to being on offense. This is a challenging thing because it is so lucrative for hackers. But this seems to be from what we've heard in the last couple days, the right community with the right focus to be able to make that pivot. >> Yeah, and I think if you look at the success of Kubernetes, 'cause again we were there at theCUBE first one CUBE CON, the end user stories really drove end user participation. Drove the birth of Kubernetes. Left some of these CloudNative early adopters early pioneers that were using cloud hyperscale really set the table for CloudNative CON. I think you're seeing that here with this CloudNative SecurityCON where I think we're see a lot more end user stories because of the security, the hairs on fire as we heard from Madrona Ventures, you know, as they as an investor you have a lot of use cases out there where customers are leaning in with getting the rolling up their sleeves, working with open source. This has to be the driver. So I'm expecting to see the next level of SecurityCON to be end user focused. Much more than vendor focused. Where CUBECON was very end user focused and then attracted all the vendors in that grew the industry. I expect the similar pattern here where end user action will be very high at the beginning and that will essentially be the rising tide for the vendors to be then participating. So I expect almost a similar trajectory to CUBECON. >> That's a good path that it needs to all be about all the end users. One of the things I'm curious if what you heard was what are some of the key factors that are going to move CloudNative Security forward? What did you hear the last two days? >> I heard that there's a lot of security problems and no one wants to kind of brag about this but there's a lot of under the hood stuff that needs to get taken care of. So if automation scales, and we heard that from one of the startups we've just interviewed. If automation and scale continues to happen and with the business model of the hackers still booming, security has to be refactored quickly and there's going to be an opportunity structurally to use the cloud for that. So I think it's a good opportunity now to get dedicated focus on fixing things like the DNS stuff old school under the hood, plumbing, networking protocols. You're going to start to see this super cloud-like environment emerge where data's involved, everything's happening and so security has to be re imagined. And I think there's a do over opportunity for the security industry with CloudNative driving that. And I think this is the big thing that I see as an opportunity to, from a story standpoint from a coverage standpoint is that it's a do-over for security. >> One of the things that we heard yesterday is that there's a lot of it, it's a pretty high percentage of organizations that either don't have a SOCK or have a very primitive SOCK. Which kind of surprised me that at this day and age the risks are there. We talked about that today's focus and the keynote was a lot about the software supply chain and what's going on there. What did you hear in terms of the appetite for organizations through the voice of the practitioner to say, you know what guys, we got to get going because there's going to be the hackers are they're here. >> I didn't hear much about that in the coverage 'cause we weren't in the hallways. But from reading the tea leaves and talking to the folks on the ground, I think there's an implied like there's an unlimited money from customers. So it's a very robust from the data infrastructure stack building we cover with the angel investor Kane you're seeing data infrastructure's going to be part of the solution here 'cause data and security go hand in hand. So everyone's got basically checkbook wide open everyone wants to have the answer. And we commented that the co-founder of Palo Alto you had on our coverage yesterday was saying that you know, there's no real platform, there's a lot of tools out there. People will buy anything. So there's still a huge appetite and spend in security but the answer's not going to more tool sprawling. It's going to more platform auto, something that enables automation, fix some of the underlying mechanisms involved and fix it fast. So to me I think it's going to be a robust monetary opportunity because of the demand on the business side. So I don't see that changing at all and I think it's going to accelerate. >> It's a great point in terms of the demand for the business side because as we know as we said yesterday, the next Log4j is out there. It's not a matter of if this happens again it's when, it's the extent, it's how frequent we know that. So organizations all the way up to the board have to be concerned about brand reputation. Nobody wants to be the next big headline in terms of breaches and customer data being given to hackers and hackers making all this money on that. That has to go all the way up to the board and there needs to be alignment between the board and the executives at the organization in terms of how they're going to deal with security, and now. This is not a conversation that can wait. Yeah, I mean I think the five C's we talked about yesterday the culture of companies, the cloud is an enabler, you've got clusters of servers and capabilities, Kubernetes clusters, you've got code and you've got all kinds of, you know, things going on there. Each one has elements that are at risk for hacking, right? So that to me is something that's super important. I think that's why the focus on security's different and important, but it's not going to fork the main event. So that's why I think the spin out was, spinout, or the new event is a good call by the CNCF. >> One of the things today that struck me they're talking a lot about software supply chain and that's been in the headlines for quite a while now. And a stat that was shared this morning during the keynote just blew my brains that there was a 742% increase in the software supply chain attacks occurring over the last three years. It's during Covid times, that is a massive increase. The threat landscape is just growing so amorphously but organizations need to help dial that down because their success and the health of the individuals and the end users is at risk. Well, Covid is an environment where everyone's kind of working at home. So there was some disruption to infrastructure. Also, when you have change like that, there's opportunities for hackers, they'll arbitrage that big time. But I think general the landscape is changing. There's no perimeter anymore. It's CloudNative, this is where it is and people who are moving from old IT to CloudNative, they're at risk. That's why there's tons of ransomware. That's why there's tons of risk. There's just hygiene, from hygiene to architecture and like Nick said from Palo Alto, the co-founder, there's not a lot of architecture in security. So yeah, people have bulked up their security teams but you're going to start to see much more holistic thinking around redoing security. I think that's the opportunity to propel CloudNative, and I think you'll see a lot more coming out of this. >> Did you hear any specific information on some of the CloudNative projects going on that really excite you in terms of these are the right people going after the right challenges to solve in the right direction? >> Well I saw the sessions and what jumped out to me at the sessions was it's a lot of extensions of what we heard at CUBECON and I think what they want to do is take out the big items and break 'em out in security. Kubescape was one we just covered. They want to get more sandbox type stuff into the security side that's very security focused but also plays well with CUBECON. So we'll hear more about how this plays out when we're in Amsterdam coming up in April for CUBECON to hear how that ecosystem, because I think it'll be kind of a relief to kind of decouple security 'cause that gives more focus to the stakeholders in CUBECON. There's a lot of issues going on there and you know service meshes and whatnot. So it's a lot of good stuff happening. >> A lot of good stuff happening. One of the things that'll be great about CUBECON is that we always get the voice of the customer. We get vendors coming on with the voice of the customer talking about and you know in that case how they're using Kubernetes to drive the business forward. But it'll be great to be able to pull in some of the security conversations that spin out of CloudNative Security CON to understand how those end users are embracing the technology. You brought up I think Nir Zuk from Palo Alto Networks, one of the themes there when Dave and I did their Ignite event in December was, of 22, was really consolidation. There are so many tools out there that organizations have to wrap their heads around and they need to be able to have the right enablement content which this event probably delivered to figure out how do we consolidate security tools effectively, efficiently in a way that helps dial down our risk profile because the risks just seem to keep growing. >> Yeah, and I love the technical nature of all that and I think this is going to be the continued focus. Chris Aniszczyk who's the CTO listed like E and BPF we covered with Liz Rice is one of the most three important points of the conference and it's just, it's very nerdy and that's what's needed. I mean it's technical. And again, there's no real standards bodies anymore. The old days developers I think are super important to be the arbiters here. And again, what I love about the CNCF is that they're developer focused and we heard developer first even in security. So you know, this is a sea change and I think, you know, developers' choice will be the standards bodies. >> Lisa: Yeah, yeah. >> They decide the future. >> Yeah. >> And I think having the sandboxing and bringing this out will hopefully accelerate more developer choice and self-service. >> You've been talking about kind of putting the developers in the driver's seat as really being the key decision makers for a while. Did you hear information over the last couple of days that validates that? >> Yeah, absolutely. It's clearly the fact that they did this was one. The other one is, is that engineering teams and dev teams and script teams, they're blending together. It's not just separate silos and the ones that are changing their team dynamics, again, back to the culture are winning. And I think this has to happen. Security has to be embedded everywhere in making it frictionless and to provide kind of the guardrail so developers don't slow down. And I think where security has become a drag or an anchor or a blocker has been just configuration of how the organization's handling it. So I think when people recognize that the developers are in charge and they're should be driving the application development you got to make sure that's secure. And so that's always going to be friction and I think whoever does it, whoever unlocks that for the developer to go faster will win. >> Right. Oh, that's what I'm sure magic to a developer's ear is the ability to go faster and be able to focus on co-development in a secure fashion. What are some of the things that you're excited about for CUBECON. Here we are in February, 2023 and CUBECON is just around the corner in April. What are some of the things that you're excited about based on the groundswell momentum that this first inaugural CloudNative Security CON is generating from a community, a culture perspective? >> I think this year's going to be very interesting 'cause we have an economic challenge globally. There's all kinds of geopolitical things happening. I think there's going to be very entrepreneurial activity this year more than ever. I think you're going to see a lot more innovative projects ideas hitting the table. I think it's going to be a lot more entrepreneurial just because the cycle we're in. And also I think the acceleration of mainstream deployments of out of the CNCF's main event CUBECON will happen. You'll see a lot more successes, scale, more clarity on where the security holes are or aren't. Where the benefits are. I think containers and microservices are continuing to surge. I think the Cloud scale hyperscale as Amazon, Azure, Google will be more aggressive. I think AI will be a big theme this year. I think you can see how data is going to infect some of the innovation thinking. I'm really excited about the data infrastructure because it powers a lot of things in the Cloud. So I think the Amazon Web Services, Azure next level gen clouds will impact what happens in the CloudNative foundation. >> Did you have any conversations yesterday or today with respect to AI and security? Was that a focus of anybody's? Talk to me about that. >> Well, I didn't hear any sessions on AI but we saw some demos on stage. But they're teasing out that this is an augmentation to their mission, right? So I think a lot of people are looking at AI as, again, like I always said there's the naysayers who think it's kind of a gimmick or nothing to see here, and then some are just going to blown away. I think the people who are alpha geeks and the industry connect the dots and understand that AI is going to be an accelerant to a lot of heavy lifting that was either manual, you know, hard to do things that was boring or muck as they say. I think that's going to be where you'll see the AI stories where it's going to accelerate either ways to make security better or make developers more confident and productive. >> Or both. >> Yeah. So definitely AI will be part of it. Yeah, definitely. One of the things too that I'm wondering if, you know, we talk about CloudNative and the goal of it, the importance of it. Do you think that this event, in terms of what we were able to see, obviously being remote the event going on in Seattle, us being here in Palo Alto and Boston and guests on from Seattle and Germany and all over, did you hear the really the validation for why CloudNative Security why CloudNative is important for organizations whether it's a bank or a hospital or a retailer? Is that validation clear and present? >> Yeah, absolutely. I think it was implied. I don't think there was like anyone's trying to debate that. I think this conference was more of it's assumed and they were really trying to push the ability to make security less defensive, more offensive and more accelerated into the solving the problems with the businesses that are out there. So clearly the CloudNative community understands where the security challenges are and where they're emerging. So having a dedicated event will help address that. And they've got great co-chairs too that put it together. So I think that's very positive. >> Yeah. Do you think, is it possible, I mean, like you said several times today so eloquently the industry's on the defense when it comes to security and the hackers are on the offense. Is it really possible to make that switch or obviously get some balances. As technology advances and industry gets to take advantage of that, so do the hackers, is that balance achievable? >> Absolutely. I mean, I think totally achievable. The question's going to be what's the environment going to be like? And I remember as context to understanding whether it's viable or not, is to look at, just go back 13 years ago, I remember in 2010 Amazon was viewed as an unsecure environment. Everyone's saying, "Oh, the cloud is not secure." And I remember interviewing Steve Schmidt at AWS and we discussed specifically how Amazon Cloud was being leveraged by hackers. They made it more complex for the hackers. And he said, "This is just the beginning." It's kind of like barbed wire on a fence. It's yeah, you're not going to climb it so people can get over it. And so since then what's happened is the Cloud has become more secure than on premises for a lot of either you know, personnel reasons, culture reasons, not updating, you know, from patches to just being insecure to be more insecure. So that to me means that the flip the script can be flipped. >> Yeah. And I think with CloudNative they can build in automation and code to solve some of these problems and make it more complex for the hacker. >> Lisa: Yes. >> And increase the cost. >> Yeah, exactly. Make it more complex. Increase the cost. That'll be in interesting journey to follow. So John, here we are early February, 2023 theCUBE starting out strong as always. What year are we in, 12? Year 12? >> 13th year >> 13! What's next for theCUBE? What's coming up that excites you? >> Well, we're going to do a lot more events. We got the theCUBE in studio that I call theCUBE Center as kind of internal code word, but like, this is more about getting the word out that we can cover events remotely as events are starting to change with hybrid, digital is going to be a big part of that. So I think you're going to see a lot more CUBE on location. We're going to do, still do theCUBE and have theCUBE cover events from the studio to get deeper perspective because we can then bring people in remote through our our studio team. We can bring our CUBE alumni in. We have a corpus of content and experts to bring to table. So I think the coverage will be increased. The expertise and data will be flowing through theCUBE and so Cube Center, CUBE CUBE Studio. >> Lisa: Love it. >> Will be a integral part of our coverage. >> I love that. And we have such great conversations with guests in person, but also virtually, digitally as well. We still get the voices of the practitioners and the customers and the vendors and the partner ecosystem really kind of lauded loud and clear through theCUBE megaphone as I would say. >> And of course getting the clips out there, getting the highlights. >> Yeah. >> Getting more stories. No stories too small for theCUBE. We can make it easy to get the best content. >> The best content. John, it's been fun covering CloudNative security CON with you with you. And Dave and our guests, thank you so much for the opportunity and looking forward to the next event. >> John: All right. We'll see you at Amsterdam. >> Yeah, I'll be there. We want to thank you so much for watching TheCUBES's two day coverage of CloudNative Security CON 23. We're live in Palo Alto. You are live wherever you are and we appreciate your time and your view of this event. For John Furrier, Dave Vellante, I'm Lisa Martin. Thanks for watching guys. We'll see you at the next show.

>>The cube presents Ignite 22, brought to you by Palo Alto Networks. >>Good morning. Live from the MGM Grand. It's the cube at Palo Alto Networks Ignite 2022. Lisa Martin here with Dave Valante, day two, Dave of our coverage, or last live day of the year, which I can't believe, lots of good news coming out from Palo Alto Networks. We're gonna sit down with its Chief product officer next and dissect all of that. >>Yeah. You know, oftentimes in, in events like this, day two is product day. And look, it's all about products and sales. Yeah, I mean those, that's the, the, the golden rule. Get the product right, get the sales right, and everything else will take care of itself. So let's talk product. >>Yeah, let's talk product. Lee Claridge joins us, the Chief Product Officer at Palo Alto Networks. Welcome Lee. Great to have >>You. Thank you so much. >>So we didn't get to see your keynote yesterday, but we heard one of the things, you know, we've been talking about the threat landscape, the challenges. We had Unit 42, Wendy on yesterday. We had Nash on and near talking about the massive challenges in the threat landscape. But we understand, despite that you are optimistic. I am. Talk about your optimism given the massive challenges that every organization is facing today. >>Look, cybersecurity's hard and often in cybersecurity in the industry, a lot of people get sort of really focused on what the threat actors are doing, why they're successful. We investigate breaches and we think of it, it just starts to feel somewhat overwhelming for a lot of folks. And I just happen to think a little bit differently. I, I look at it and I think it's actually a solvable problem. >>Talk about cyber resilience. How does Palo Alto Networks define that and how does it help customers achieve that? Cuz that's the, that's the holy grail these days. >>Yes. Look, the, the way I think about cyber resilience is basically in two pieces. One, it's all about how do we prevent the threat actors from actually being successful in the first place. Second, we also have to be prepared for what happens if they happen to find a way to get through, and how do we make sure that that happens? The blast radius is, is as narrowly contained as possible. And so the, the way that we approach this is, you know, I, I kind of think in terms of like threes three core principles. Number one, we have to have amazing technology and we have to constantly be, keep keeping up with and ideally ahead of what attackers are doing. It's a big part of my job as the chief product officer, right? Second is we, you know, one of the, the big transformations that's happened is the advent of, of AI and the opportunity, as long as we can do it, a great job of collecting great data, we can drive AI and machine learning models that can start to be used for our advantage as defenders, and then further use that to drive automation. >>So we take the human out of the response as much as possible. What that allows us to do is actually to start using AI and automation to disrupt attackers as it's happening. The third piece then becomes natively integrating these capabilities into a platform. And when we do that, what allows us to do is to make sure that we are consistently delivering cybersecurity everywhere that it needs to happen. That we don't have gaps. Yeah. So great tech AI and automation deliver natively integrated through platforms. This is how we achieve cyber resilience. >>So I like the positivity. In fact, Steven Schmidt, who's now the CSO of, of Amazon, you know, Steven, and it was the CSO at AWS at the time, the first reinforced, he stood up on stage and said, listen, this narrative that's all gloom and doom is not the right approach. We actually are doing a good job and we have the capability. So I was like, yeah, you know, okay. I'm, I'm down with that. Now when I, my question is around the, the portfolio. I, I was looking at, you know, some of your alternatives and options and the website. I mean, you got network security, cloud security, you got sassy, you got capp, you got endpoint, pretty much everything. You got cider security, which you just recently acquired for, you know, this whole shift left stuff, you know, nothing in there on identity yet. That's good. You partner for that, but, so could you describe sort of how you think about the portfolio from a product standpoint? How you continue to evolve it and what's the direction? Yes. >>So the, the, the cybersecurity industry has long had this, I'm gonna call it a major flaw. And the major flaw of the cybersecurity industry has been that every time there is a problem to be solved, there's another 10 or 20 startups that get funded to solve that problem. And so pretty soon what you have is you're, if you're a customer of this is you have 50, a hundred, the, the record is over 400 different cybersecurity products that as a customer you're trying to operationalize. >>It's not a good record to have. >>No, it's not a good record. No. This is, this is the opposite of Yes. Not a good personal best. So the, so the reason I start there in answering your question is the, the way that, so that's one end of the extreme, the other end of the extreme view to say, is there such a thing as a single platform that does everything? No, there's not. That would be nice. That was, that sounds nice. But the reality is that cybersecurity has to be much broader than any one single thing can do. And so the, the way that we approach this is, is three fundamental areas that, that we, Palo Alto Networks are going to be the best at. One is network security within network security. This includes hardware, NextGen, firewalls, software NextGen, firewalls, sassy, all the different security services that tie into that. All of that makes up our network security platforms. >>So everything to do with network security is integrated in that one place. Second is around cloud security. The shift to the cloud is happening is very real. That's where Prisma Cloud takes center stage. C a P is the industry acronym. If if five letters thrown together can be called an acronym. The, so cloud native application protection platform, right? So this is where we bring all of the different cloud security capabilities integrated together, delivered through one platform. And then security, security operations is the third for us. This is Cortex. And this is where we bring together endpoint security, edr, ndr, attack, surface management automation, all of this. And what we had, what we announced earlier this year is x Im, which is a Cortex product for actually integrating all of that together into one SOC transformation platform. So those are the three platforms, and that's how we deliver much, much, much greater levels of native integration of capabilities, but in a logical way where we're not trying to overdo it. >>And cider will fit into two or three >>Into Prisma cloud into the second cloud to two. Yeah. As part of the shift left strategy of how we secure makes sense applications in the cloud >>When you're in customer conversations. You mentioned the record of 400 different product. That's crazy. Nash was saying yesterday between 30 and 50 and we talked with him and near about what's realistic in terms of getting organizations to, to be able to consolidate. I'd love to understand what does cybersecurity transformation look like for the average organization that's running 30 to 50 point >>Solutions? Yeah, look, 30 to 50 is probably, maybe normal. A hundred is not unusual. Obviously 400 is the extreme example. But all of those are, those numbers are too big right now. I think, I think realistic is high. Single digits, low double digits is probably somewhat realistic for most organizations, the most complex organizations that might go a bit above that if we're really doing a good job. That's, that's what I think. Now second, I do really want to point out on, on the product guy. So, so maybe this is just my way of thinking, consolidation is an outcome of having more tightly and natively integrated capabilities. Got you. And the reason I flip that around is if I just went to you and say, Hey, would you like to consolidate? That just means maybe fewer vendors that that helps the procurement person. Yes. You know, have to negotiate with fewer companies. Yeah. Integration is actually a technology statement. It's delivering better outcomes because we've designed multiple capabilities to work together natively ourselves as the developers so that the customer doesn't have to figure out how to do it. It just happens that by, by doing that, the customer gets all this wonderful technical benefit. And then there's this outcome sitting there called, you've just consolidated your complexity. How >>Specialized is the customer? I think a data pipelines, and I think I have a data engineer, have a data scientists, a data analyst, but hyper specialized roles. If, if, let's say I have, you know, 30 or 40, and one of 'em is an SD wan, you know, security product. Yeah. I'm best of breed an SD wan. Okay, great. Palo Alto comes in as you, you pointed out, I'm gonna help you with your procurement side. Are there hyper specialized individuals that are aligned to that? And how that's kind of part A and B, how, assuming that's the case, how does that integration, you know, carry through to the business case? So >>Obviously there are specializations, this is the, and, and cybersecurity is really important. And so there, this is why there had, there's this tendency in the past to head toward, well I have this problem, so who's the best at solving this one problem? And if you only had one problem to solve, you would go find the specialist. The, the, the, the challenge becomes, well, what do you have a hundred problems to solve? I is the right answer, a hundred specialized solutions for your a hundred problems. And what what I think is missing in this approach is, is understanding that almost every problem that needs to be solved is interconnected with other problems to be solved. It's that interconnectedness of the problems where all of a sudden, so, so you mentioned SD wan. Okay, great. I have Estee wan, I need it. Well what are you connecting SD WAN to? >>Well, ideally our view is you would connect SD WAN and branch to the cloud. Well, would you run in the cloud? Well, in our case, we can take our SD wan, connect it to Prisma access, which is our cloud security solution, and we can natively integrate those two things together such that when you use 'em together, way easier. Right? All of a sudden we took what seemed like two separate problems. We said, no, actually these problems are related and we can deliver a solution where those, those things are actually brought together. And that's just one simple example, but you could, you could extend that across a lot of these other areas. And so that's the difference. And that's how the, the, the mindset shift that is happening. And, and I I was gonna say needs to happen, but it's starting to happen. I'm talking to customers where they're telling me this as opposed to me telling them. >>So when you walk around the floor here, there's a visual, it's called a day in the life of a fuel member. And basically what it has, it's got like, I dunno, six or seven different roles or personas, you know, one is management, one is a network engineer, one's a coder, and it gives you an X and an O. And it says, okay, put the X on things that you spend your time doing, put the o on things that you wanna spend your time doing a across all different sort of activities that a SecOps pro would do. There's Xs and O's in every one of 'em. You know, to your point, there's so much overlap going on. This was really difficult to discern, you know, any kind of consistent pattern because it, it, it, unlike the hyper specialization and data pipelines that I just described, it, it's, it's not, it, it, there's way more overlap between those, those specialization roles. >>And there's a, there's a second challenge that, that I've observed and that we are, we've, we've been trying to solve this and now I'd say we've become, started to become a lot more purposeful in, in, in trying to solve this, which is, I believe cybersecurity, in order for cyber security vendors to become partners, we actually have to start to become more opinionated. We actually have to start, guys >>Are pretty opinionated. >>Well, yes, but, but the industry large. So yes, we're opinionated. We build these products, but that have, that have our, I'll call our opinions built into it, and then we, we sell the, the product and then, and then what happens? Customer says, great, thank you for the product. I'm going to deploy it however I want to, which is fine. Obviously it's their choice at the end of the day, but we actually should start to exert an opinion to say, well, here's what we would recommend, here's why we would recommend that. Here's how we envisioned it providing the most value to you. And actually starting to build that into the products themselves so that they start to guide the customer toward these outcomes as opposed to just saying, here's a product, good luck. >>What's, what's the customer lifecycle, not lifecycle, but really kind of that, that collaboration, like it's one thing to, to have products that you're saying that have opinions to be able to inform customers how to deploy, how to use, but where is their feedback in this cycle of product development? >>Oh, look, my, this, this is, this is my life. I'm, this is, this is why I'm here. This is like, you know, all day long I'm meeting with customers and, and I share what we're doing. But, but it's, it's a, it's a 50 50, I'm half the time I'm listening as well to understand what they're trying to do, what they're trying to accomplish, and how, what they need us to do better in order to help them solve the problem. So the, the, and, and so my entire organization is oriented around not just telling customers, here's what we did, but listening and understanding and bringing that feedback in and constantly making the products better. That's, that's the, the main way in which we do this. Now there's a second way, which is we also allow our products to be customized. You know, I can say, here's our best practices, we see it, but then allowing our customer to, to customize that and tailor it to their environment, because there are going to be uniquenesses for different customers in parti, we need more complex environments. Explain >>Why fire firewalls won't go away >>From your perspective. Oh, Nikesh actually did a great job of explaining this yesterday, and although he gave me credit for it, so this is like a, a circular kind of reference here. But if you think about the firewalls slightly more abstract, and you basically say a NextGen firewalls job is to inspect every connection in order to make sure the connection should be allowed. And then if it is allowed to make sure that it's secure, >>Which that is the definition of an NextGen firewall, by the way, exactly what I just said. Now what you noticed is, I didn't describe it as a hardware device, right? It can be delivered in hardware because there are environments where you need super high throughput, low latency, guess what? Hardware is the best way of delivering that functionality. There's other use cases cloud where you can't, you, you can't ship hardware to a cloud provider and say, can you install this hardware in front of my cloud? No, no, no. You deployed in a software. So you take that same functionality, you instantly in a software, then you have other use cases, branch offices, remote workforce, et cetera, where you say, actually, I just want it delivered from the cloud. This is what sassy is. So when I, when I look at and say, the firewall's not going away, what, what, what I see is the functionality needed is not only not going away, it's actually expanding. But how we deliver it is going to be across these three form factors. And then the customer's going to decide how they need to intermix these form factors for their environment. >>We put forth this notion of super cloud a while about a year ago. And the idea being you're gonna leverage the hyperscale infrastructure and you're gonna build a, a, you're gonna solve a common problem across clouds and even on-prem, super cloud above the cloud. Not Superman, but super as in Latin. But it turned into this sort of, you know, superlative, which is fun. But the, my, my question to you is, is, is, is Palo Alto essentially building a common cross-cloud on-prem, presumably out to the edge consistent experience that we would call a super cloud? >>Yeah, I don't know that we've ever used the term surfer cloud to describe it. Oh, you don't have to, but yeah. But yes, based on how you describe it, absolutely. And it has three main benefits that I describe to customers all the time. The first is the end user experience. So imagine your employee, and you might work from the office, you might work from home, you might work while from, from traveling and hotels and conferences. And, and by the way, in one day you might actually work from all of those places. So, so the first part is the end user experience becomes way better when it doesn't matter where they're working from. They always get the same experience, huge benefit from productivity perspective, no second benefit security operations. You think about the, the people who are actually administering these policies and analyzing the security events. >>Imagine how much better it is for them when it's all common and consistent across everywhere that has to happen. Cloud, on-prem branch, remote workforce, et cetera. So there's a operational benefit that is super valuable. Third, security benefit. Imagine if in this, this platform-based approach, if we come out with some new amazing innovation that is able to detect and block, you know, new types of attacks, guess what, we can deliver that across hardware, software, and sassi uniformly and keep it all up to date. So from a security perspective, way better than trying to figure out, okay, there's some new technology, you know, does my hardware provider have that technology or not? Does my soft provider? So it's bringing that in to one place. >>From a developer perspective, is there a, a, a PAs layer, forgive me super PAs, that a allows the developers to have a common experience across irrespective of physical location with the explicit purpose of serving the objective of your platform. >>So normally when I think of the context of developers, I'm thinking of the context of, of the people who are building the applications that are being deployed. And those applications may be deployed in a data center, increasing the data centers, depending private clouds might be deployed into, into public cloud. It might even be hybrid in nature. And so if you think about what the developer wants, the developer actually wants to not have to think about security, quite frankly. Yeah. They want to think about how do I develop the functionality I need as quickly as possible with the highest quality >>Possible, but they are being forced to think about it more and more. Well, but anyway, I didn't mean to >>Interrupt you. No, it's a, it is a good, it's a, it's, it's a great point. The >>Well we're trying to do is we're trying to enable our security capabilities to work in a way that actually enables what the developer wants that actually allows them to develop faster that actually allows them to focus on the things they want to focus. And, and the way we do that is by actually surfacing the security information that they need to know in the tools that they use as opposed to trying to bring them to our tools. So you think about this, so our customer is a security customer. Yet in the application development lifecycle, the developer is often the user. So we, we we're selling, we're so providing a solution to security and then we're enabling them to surface it in the developer tools. And by, by doing this, we actually make life easier for the developers such that they're not actually thinking about security so much as they're just saying, oh, I pulled down the wrong open source package, it's outdated, it has vulnerabilities. I was notified the second I did it, and I was told which one I should pull down. So I pulled down the right one. Now, if you're a developer, do you think that's security getting your way? Not at all. No. If you're a developer, you're thinking, thank god, thank you, thank, thank you. Yeah. You told me at a point where it was easy as opposed to waiting a week or two and then telling me where it's gonna be really hard to fix it. Yeah. Nothing >>More than, so maybe be talking to Terraform or some other hash corp, you know, environment. I got it. Okay. >>Absolutely. >>We're 30 seconds. We're almost out of time. Sure. But I'd love to get your snapshot. Here we are at the end of calendar 2022. What are you, we know you're optimistic in this threat landscape, which we're gonna see obviously more dynamics next year. What kind of nuggets can you drop about what we might hear and see in 23? >>You're gonna see across everything. We do a lot more focus on the use of AI and machine learning to drive automated outcomes for our customers. And you're gonna see us across everything we do. And that's going to be the big transformation. It'll be a multi-year transformation, but you're gonna see significant progress in the next 12 months. All >>Right, well >>What will be the sign of that progress? If I had to make a prediction, which >>I'm better security with less effort. >>Okay, great. I feel like that's, we can measure that. I >>Feel, I feel like that's a mic drop moment. Lee, it's been great having you on the program. Thank you for walking us through such great detail. What's going on in the organization, what you're doing for customers, where you're meeting, how you're meeting the developers, where they are. We'll have to have you back. There's just, just too much to unpack. Thank you both so much. Actually, our pleasure for Lee Cler and Dave Valante. I'm Lisa Martin. You're watching The Cube Live from Palo Alto Networks Ignite 22, the Cube, the leader in live, emerging and enterprise tech coverage.

Upbeat music plays >> Voice Over: TheCUBE presents Ignite 22, brought to you by Palo Alto Networks. >> Good morning everyone. Welcome to theCUBE. Lisa Martin here with Dave Vellante. We are live at Palo Alto Networks Ignite. This is the 10th annual Ignite. There's about 3,000 people here, excited to really see where this powerhouse organization is taking security. Dave, it's great to be here. Our first time covering Ignite. People are ready to be back. They.. and security is top. It's a board level conversation. >> It is the other Ignite, I like to call it cuz of course there's another big company has a conference name Ignite, so I'm really excited to be here. Palo Alto Networks, a company we've covered for a number of years, as we just wrote in our recent breaking analysis, we've called them the gold standard but it's not just our opinion, we've backed it up with data. The company's on track. We think to do close to 7 billion in revenue by 2023. That's double it's 2020 revenue. You can measure it with execution, market cap M and A prowess. I'm super excited to have the CEO here. >> We have the CEO here, Nikesh Arora joins us from Palo Alto Networks. Nikesh, great to have you on theCube. Thank you for joining us. >> Well thank you very much for having me Lisa and Dave >> Lisa: It was great to see your keynote this morning. You said that, you know fundamentally security is a data problem. Well these days every company has to be a data company. Grocery stores, gas stations, car dealers. How is Palo Alto networks making customers, these data companies, more secure? >> Well Lisa, you know, (coughs) I've only done cybersecurity for about four, four and a half years so when I came to the industry I was amazed to see how security is so reactive as opposed to proactive. We should be able to stop bad threats, right? as they're happening. But I think a lot of threats get through because we don't have the right infrastructure and the right tooling and right products in there. So I think we've been working hard for the last four and a half years to turn it around so we can have consistent data flow across an enterprise and then mine that data for threats and anomalous behavior and try and protect our customers. >> You know the problem, I wrote this, this weekend, the problem in cybersecurity is well understood, you put up that Optiv graph and it's like 8,000 companies >> Yes >> and I think you mentioned your keynote on average, you know 30 to 40 tools, maybe 50, at least 20, >> Yes. >> from the folks that I talked to. So, okay, great, but actually solving that problem is not trivial. To be a consolidator, I mean, everybody wants to consolidate tools. So in your three to four years and security as you well know, it's, you can't fake security. It's a really, really challenging topic. So when you joined Palo Alto Networks and you heard that strategy, I know you guys have been thinking about this for some time, what did you see as the challenges to actually executing on that and how is it that you've been able to sort of get through that knot hole. >> So Dave, you know, it's interesting if you look at the history of cybersecurity, I call them the flavor of the decade, a flare, you know a new threat vector gets created, very large market gets created, a solution comes through, people flock, you get four or five companies will chase that opportunity, and then they become leaders in that space whether it's firewalls or endpoints or identity. And then people stick to their swim lane. The problem is that's a very product centric approach to security. It's not a customer-centric approach. The customer wants a more secure enterprise. They don't want to solve 20 different solutions.. problems with 20 different point solutions. But that's kind of how the industry's grown up, and it's been impossible for a large security company in one category, to actually have a substantive presence in the next category. Now what we've been able to do in the last four and a half years is, you know, from our firewall base we had resources, we had intellectual capability from a security perspective and we had cash. So we used that to pay off our technical debt. We acquired a bunch of companies, we created capability. In the last three years, four years we've created three incremental businesses which are all on track to hit a billion dollars the next 12 to 18 months. >> Yeah, so it's interesting on Twitter last night we had a little conversation about acquirers and who was a good, who was not so good. It was, there was Oracle, they came up actually very high, they'd done pretty, pretty good Job, VMware was on the list, IBM, Cisco, ServiceNow. And if you look at IBM and Cisco's strategy, they tend to be very services heavy, >> Mm >> right? How is it that you have been able to, you mentioned get rid of your technical debt, you invested in that. I wonder if you could, was it the, the Cloud, even though a lot of the Cloud was your own Cloud, was that a difference in terms of your ability to integrate? Because so many companies have tried it in the past. Oracle I think has done a good job, but it took 'em 10 to 12 years, you know, to, to get there. What was the sort of secret sauce? Is it culture, is it just great engineering? >> Dave it's a.. thank you for that. I think, look, it's, it's a mix of everything. First and foremost, you know, there are certain categories we didn't play in so there was nothing to integrate. We built a capability in a category in automation. We didn't have a product, we acquired a company. It's a net new capability in instant response. We didn't have a capability. It was net new capability. So there was, there was, other than integrating culturally and into the organization into our core to market processes there was no technical integration needed. Most of our technical integration was needed in our Cloud platform, which we bought five or six companies, we integrated then we just bought one recently called cyber security as well, which is going to get integrated in the Cloud platform. >> Dave: Yeah. >> And the thing is like, the Cloud platform is net new in the industry. We.. nobody's created a Cloud security platform yet, so we're working hard to create it because we don't want to replicate the mistakes of the past, that were made in enterprise security, in Cloud security. So it's a combination of cultural integration it's a combination of technical integration. The two things we do differently I think, than most people in the industry is look, we have no pride of, you know of innovations. Like, if somebody else has done it, we respect it and we'll acquire it, but we always want to acquire number one or number two in their category. I don't want number three or four. There's three or four for a reason and there still leaves one or two out there to compete with. So we've always acquired one or two, one. And the second thing, which is as important is most of these companies are in the early stage of development. So it's very important for the founding team to be around. So we spend a lot of time making sure they stick around. We actually make our people work for them. My principle is, listen, if they beat us in the open market with all our resources and our people, then they deserve to run this as opposed to us. So most of our new product categories are run by founders of companies required. >> So a little bit of Jack Welch, a little bit of Franks Lubens is a, you know always deference to the founders. But go ahead Lisa. >> Speaking of cultural transformation, you were mentioning your keynote this morning, there's been a significant workforce transformation at Palo Alto Networks. >> Yeah >> Talk a little bit about that, cause that's a big challenge, for many organizations to achieve. Sounds like you've done it pretty well. >> Well you know, my old boss, Eric Schmidt, used to say, 'revenue solves all known problems'. Which kind of, you know, it is a part joking, part true, but you know as Dave mentioned, we've doubled or two and a half time the revenues in the last four and a half years. That allows you to grow, that allows you to increase headcount. So we've gone from four and a half thousand people to 14,000 people. Good news is that's 9,500 people are net new to the company. So you can hire a whole new set of people who have new skills, new capabilities and there's some attrition four and a half thousand, some part of that turns over in four and a half years, so we effectively have 80% net new people, and the people we have, who are there from before, are amazing because they've built a phenomenal firewall business. So it's kind of been right sized across the board. It's very hard to do this if you're not growing. So you got to focus on growing. >> Dave: It's like winning in sports. So speaking of firewalls, I got to ask you does self-driving cars need brakes? So if I got a shout out to my friend Zeus Cararvela so like that's his line about why you need firewalls, right? >> Nikesh: Yes. >> I mean you mentioned it in your keynote today. You said it's the number one question that you get. >> and I don't get it why P industry observers don't go back and say that's, this is ridiculous. The network traffic is doubling or tripling. (clears throat) In fact, I gave an interesting example. We shut down our data centers, as I said, we are all on Google Cloud and Amazon Cloud and then, you know our internal team comes in, we'd want a bigger firewall. I'm like, why do you want a bigger firewall? We shut down our data centers as well. The traffic coming in and out of our campus is doubled. We need a bigger firewall. So you still need a firewall even if you're in the Cloud. >> So I'm going to come back to >> Nikesh: (coughs) >> the M and A strategy. My question is, can you be both best of breed and develop a comprehensive suite number.. part one and part one A of that is do you even have to, because generally sweets win out over best of breed. But what, how do you, how do you respond? >> Well, you know, this is this age old debate and people get trapped in that, I think in my mind, and let me try and expand the analogy which I tried to do up in my keynote. You know, let's assume that Oracle, Microsoft, Dynamics and Salesforce did not exist, okay? And you were running a large company of 50,000 people and your job was to manage the customer process which easier to understand than security. And I said, okay, guess what? I have a quoting system and a lead system but the lead system doesn't talk to my coding system. So I get leads, but I don't know who those customers. And I write codes for a whole new set of customers and I have a customer database. Then when they come as purchase orders, I have a new database with all the customers who've bought something from me, and then when I go get them licensing I have a new database and when I go have customer support, I have a fifth database and there are customers in all five databases. You'll say Nikesh you're crazy, you should have one customer database, otherwise you're never going to be able to make this work. But security is the same problem. >> Dave: Mm I should.. I need consistency in data from suit to nuts. If it's in Cloud, if you're writing code, I need to understand the security flaws before they go into deployment, before they go into production. We for somehow ridiculously have bought security like IT. Now the difference between IT and security is, IT is required to talk to each other, so a Dell server and HP server work very similarly but a Palo Alto firewall and a Checkpoint firewall Fortnight firewall work formally differently. And then how that transitions into endpoints is a whole different ball game. So you need consistency in data, as Lisa was saying earlier, it's a data problem. You need consistency as you traverse to the enterprise. And that's why that's the number one need. Now, when you say best of breed, (coughs) best of breed, if it's fine, if it's a specific problem that you're trying to solve. But if you're trying to make sure that's the data flow that happens, you need both best of breed, you know, technology that stops things and need integration on data. So what we are trying to do is we're trying to give people best to breed solutions in the categories they want because otherwise they won't buy us. But we're also trying to make sure we stitch the data. >> But that definition of best of breed is a little bit of nuance than different in security is what I'm hearing because that consistency >> Nikesh: (coughs) Yes, >> across products. What about across Cloud? You mentioned Google and Amazon. >> Yeah so that's great question. >> Dave: Are you building the security super Cloud, I call it, above the Cloud? >> It's, it's not, it's, less so a super Cloud, It's more like Switzerland and I used to work at Google for 10 years, not a secret. And we used to sell advertising and we decided to go into pub into display ads or publishing, right. Now we had no publishing platform so we had to be good at everybody else's publishing platform >> Dave: Mm >> but we never were able to search ads for everybody else because we only focus on our own platform. So part of it is when the Cloud guys they're busy solving security for their Cloud. Google is not doing anything about Amazon Cloud or Microsoft Cloud, Microsoft's Azure, right? AWS is not doing anything about Google Cloud or Azure. So what we do is we don't have a Cloud. Our job in providing Cloud securities, be Switzerland make sure it works consistently across every Cloud. Now if you try to replicate what we offer Prisma Cloud, by using AWS, Azure and GCP, you'd have to first of all, have three panes of glass for all three of them. But even within them they have four panes of glass for the capabilities we offer. So you could end up with 12 different interfaces to manage a development process, we give you one. Now you tell me which is better. >> Dave: Sounds like a super Cloud to me Lisa (laughing) >> He's big on super Cloud >> Uber Cloud, there you >> Hey I like that, Uber Cloud. Well, so I want to understand Nikesh, what's realistic. You mentioned in your keynote Dave, brought it up that the average organization has 30 to 50 tools, security tools. >> Nikesh: Yes, yes >> On their network. What is realistic for from a consolidation perspective where Palo Alto can come in and say, let me make this consistent and simple for you. >> Well, I'll give you your own example, right? (clears throat) We're probably sub 10 substantively, right? There may be small things here and there we do. But on a substantive protecting the enterprise perspective you be should be down to eight or 10 vendors, and that is not perfect but it's a lot better than 50, >> Lisa: Right? >> because don't forget 50 tools means you have to have capability to understand what those 50 tools are doing. You have to have the capability to upgrade them on a constant basis, learn about their new capabilities. And I just can't imagine why customers have two sets of firewalls right. Now you got to learn both the files on how to deploy both them. That's silly because that's why we need 7 million more people. You need people to understand, so all these tools, who work for companies. If you had less tools, we need less people. >> Do you think, you know I wrote about this as well, that the security industry is anomalous and that the leader has, you know, single digit, low single digit >> Yes >> market shares. Do you think that you can change that? >> Well, you know, when I started that was exactly the observation I had Dave, which you highlighted in your article. We were the largest by revenue, by small margin. And we were one and half percent of the industry. Now we're closer to three, three to four percent and we're still at, you know, like you said, going to be around $7 billion. So I see a path for us to double from here and then double from there, and hopefully as we keep doubling and some point in time, you know, I'd like to get to double digits to start with. >> One of the things that I think has to happen is this has to grow dramatically, the ecosystem. I wonder if you could talk about the ecosystem and your strategy there. >> Well, you know, it's a matter of perspective. I think we have to get more penetrated in our largest customers. So we have, you know, 1800 of the top 2000 customers in the world are Palo Alto customers. But we're not fully penetrated with all our capabilities and the same customers set, so yes the ecosystem needs to grow, but the pandemic has taught us the ecosystem can grow wherever they are without having to come to Vegas. Which I don't think is a bad thing to be honest. So the ecosystem is growing. You are seeing new players come to the ecosystem. Five years ago you didn't see a lot of systems integrators and security. You didn't see security offshoots of telecom companies. You didn't see the Optivs, the WWTs, the (indistinct) of the world (coughs) make a concerted shift towards consolidation or services and all that is happening >> Dave: Mm >> as we speak today in the audience you will find people from Google, Amazon Microsoft are sitting in the audience. People from telecom companies are sitting in the audience. These people weren't there five years ago. So you are seeing >> Dave: Mm >> the ecosystem's adapting. They're, they want to be front and center of solving the customer's problem around security and they want to consolidate capability, they need. They don't want to go work with a hundred vendors because you know, it's like, it's hard. >> And the global system integrators are key. I always say they like to eat at the trough and there's a lot of money in security. >> Yes. >> Dave: (laughs) >> Well speaking of the ecosystem, you had Thomas Curry and Google Cloud CEO in your fireside chat in the keynote. Talk a little bit about how Google Cloud plus Palo Alto Networks, the Zero Trust Partnership and what it's enable customers to achieve. >> Lisa, that's a great question. (clears his throat) Thank you for bringing it up. Look, you know the, one of the most fundamental shifts that is happening is obviously the shift to the Cloud. Now when that shift fully, sort of, takes shape you will realize if your network has changed and you're delivering everything to the Cloud you need to go figure out how to bring the traffic to the Cloud. You don't have to bring it back to your data center you can bring it straight to the Cloud. So in that context, you know we use Google Cloud and Amazon Cloud, to be able to carry our traffic. We're going from a product company to a services company in addition, right? Cuz when we go from firewalls to SASE we're not carrying your traffic. When we carry our traffic, we need to make sure we have underlying capability which is world class. We think GCP and AWS and Azure run some of the biggest and best networks in the world. So our partnership with Google is such that we use their public Cloud, we sit on top of their Cloud, they give us increased enhanced functionality so that our customers SASE traffic gets delivered in priority anywhere in the world. They give us tooling to make sure that there's high reliability. So you know, we partner, they have Beyond Corp which is their version of Zero Trust which allows you to take unmanaged devices with browsers. We have SASE, which allows you to have managed devices. So the combination gives our collective customers the ability for Zero Trust. >> Do you feel like there has to be more collaboration within the ecosystem, the security, you know, landscape even amongst competitors? I mean I think about Google acquires Mandiant. You guys have Unit 42. Should and will, like, Wendy Whitmore and maybe they already are, Kevin Mandia talk more and share more data. If security's a data problem is all this data >> Nikesh: Yeah look I think the industry shares threat data, both in private organizations as well as public and private context, so that's not a problem. You know the challenge with too much collaboration in security is you never know. Like you know, the moment you start sharing your stuff at third parties, you go out of Secure Zone. >> Lisa: Mm >> Our biggest challenge is, you know, I can't trust a third party competitor partner product. I have to treat it with as much suspicion as anything else out there because the only way I can deliver Zero Trust is to not trust anything. So collaboration in Zero Trust are a bit of odds with each other. >> Sounds like another problem you can solve >> (laughs) >> Nikesh last question for you. >> Yes >> Favorite customer or example that you think really articulates the value of what Palo Alto was delivering? >> Look you know, it's a great question, Lisa. I had this seminal conversation with a customer and I explained all those things we were talking about and the customer said to me, great, okay so what do I need to do? I said, fun, you got to trust me because you know, we are on a journey, because in the past, customers have had to take the onus on themselves of integrating everything because they weren't sure a small startup will be independent, be bought by another cybersecurity company or a large cybersecurity company won't get gobbled up and split into pieces by private equity because every one of the cybersecurity companies have had a shelf life. So you know, our aspiration is to be the evergreen cybersecurity company. We will always be around and we will always tackle innovation and be on the front line. So the customer understood what we're doing. Over the last three years we've been working on a transformation journey with them. We're trying to bring them, or we have brought them along the path of Zero Trust and we're trying to work with them to deliver this notion of reducing their meantime to remediate from days to minutes. Now that's an outcome based approach that's a partnership based approach and we'd like, love to have more and more customers of that kind. I think we weren't ready to be honest as a company four and a half years ago, but I think today we're ready. Hence my keynote was called The Perfect Storm. I think we're at the right time in the industry with the right capabilities and the right ecosystem to be able to deliver what the industry needs. >> The perfect storm, partners, customers, investors, employees. Nikesh, it's been such a pleasure having you on theCUBE. Thank you for coming to talk to Dave and me right after your keynote. We appreciate that and we look forward to two days of great coverage from your executives, your customers, and your partners. Thank you. >> Well, thank you for having me, Lisa and Dave and thank you >> Dave: Pleasure >> for what you guys do for our industry. >> Our pleasure. For Nikesh Arora and Dave Vellante, I'm Lisa Martin, you're watching theCUBE live at MGM Grand Hotel in Las Vegas, Palo Alto Ignite 22. Stick around Dave and I will be joined by our next guest in just a minute. (cheerful music plays out)

(gentle music) >> Good morning, fellow cloud nerds, and welcome back to day four of AWS re:Invent. We are here in fabulous Las Vegas, Nevada. I'm joined by my cohost Paul Gillin. I'm Savannah Peterson. We're on theCUBE. Paul, how you doing? You doing well? >> We're staggering to the conclusion. >> (laughing) It's almost the end then. >> And I say that only talking about my feet. This event is still going strong. The great keynote this morning by Werner Vogels about system architecture and really teaching 70,000 people how to design systems. AWS really taking advantage of this event to educate its customer base and- >> So much education here. >> Yeah, and that was a fantastic sort of cap to the keynotes we've seen this week. >> Yeah, I'm impressed Paul, our first AWS re:Invent. I think we're doing pretty good all things considered. >> Well, we're still alive. >> And our next guest actually looks like he's been sleeping this week, which is remarkable. Please welcome Ayal to the show. Ayal, how you doing today? >> I'm good, I'm good. Thank you for having me. >> It's our pleasure. You're with Anjuna. >> Yes. >> Just in case the audience isn't familiar, what's Anjuna? >> Anjuna is an enterprise security company. We focus in the space of confidential computing. And essentially we enable people to run anything they want in any environment with complete security and privacy. >> Which is a top priority for pretty much every single person here. >> Ayal: That is true. >> Now, confidential computing, I keep hearing that term. >> Yeah, let's go there. >> Is it, I mean, is there a trademark associated with it? Is there a certification? Is the concept or is it actually a set of principles and frameworks? >> Savannah: Give us the scoop. >> Yeah, so confidential computing is essentially a set of technologies that were added to the hardware itself, to the CPU, and now to GPUs by the hardware vendors. So Intel, AMD, Arm, Nvidia AWS with their own hardware solution for this. And essentially what it allows you to do is to run workloads on top of the CPU and the GPU in a way that even if somebody gets full access to the infrastructure, you know, root access, physical access, they're not going to have any access to the data and the code running on top of it. And as you can imagine in cloud environments, this is extremely, extremely (indistinct). >> And this done through encryption? >> It involves encryption. If you go one step deeper, it involves protecting the data while it's running, data and memory, when the application is processing it. Which is always been the missing piece in terms of where you protect data. >> So I got excited when I looked at the show notes because you are serving some of the most notoriously security strict customers in the market. Can you tell us about the Israeli Ministry of Defense? >> Sure. So essentially what we do with the Israel Ministry of Defense and other customers, especially on the on the government side, one of the challenges government has is that they have to, if they want security and privacy in the cloud, they have to use something like a gov cloud. And sometimes that makes sense, but sometimes either the gov cloud is not ready because of legal battles or just it takes time to set it up. In some countries, it's just not going to make financial sense for the clouds to create a gov cloud. So what we do is we enable them to run in the commercial cloud with the security and privacy of a gov cloud. >> Was that, I can imagine, so you took them to the public cloud, correct? >> Ayal: Yes. >> Was that a challenging process? When I think of national security, I can imagine a business transformation like that would be a little nerve-wracking. >> Oh, definitely. It was a long process and they went like, "This is probably one of the best security experts on the planet." And they went extremely deep in making sure that this aligns with what they would be able to do to actually move sensitive data to the commercial cloud. Which, obviously, that the requirements are higher than anything I've ever seen from anybody else. And the fact that they were willing to publicly talk about this and be a public reference for us shows the level of confidence that they have in the underlying technology, in the security and privacy that this allows them to achieve. >> We still hear reservations, particularly from heavily regulated industries, about moving into the cloud. Concerns about security, data ownership, shared responsibility. >> Ayal: Yes. >> Are those real, are those valid? Or is the technology foundation now strong enough that they should not be worried about those things? >> Yeah, this is an excellent question, because the the shared responsibility model, is exactly sort of the core of what this is about. The shared responsibility model essentially means the cloud's, sort of by definition, the cloud is somebody else managing the infrastructure for you, right? And if somebody's managing the infrastructure for you they have full access to what you do on top of that infrastructure. That's almost the definition. And that's always been sort of one of the core security problems that was never solved. Confidential computing solves this. It means that you can use the cloud without the clouds having any access to what you do on top of their infrastructure. And that means that if the clouds get hacked, your data is safe. If an employee of the cloud decides to get access to your data, they can't. They just don't have any access. Or if the government comes to the cloud with a subpoena, the clouds can't give them access to your data, which is obviously very important for European customers and other customers outside of the US. So this is essentially what confidential computing does and it allows to break that shared responsibility model, where you as the customer get full control of your data back. >> Now, do you need the hardware foundation to do that? Or are you solving this problem in software? >> No. So we do need a hardware foundation for this which is now available in every cloud. And it's part of every server CPU that Intel ship, that AMD ship. This is part of almost every data center in AWS. But what we bring to the table at Anjuna, is every time there was a fundamental shift in computer architecture, you needed a software stack on top of it to essentially make it usable. And I think the best last example was VMware, right? But virtualization was extremely powerful technology that nobody was using until VMware built a software stack to make it super simple to virtualize anything. And to some extent that was the birth of the public cloud. We would never have a public cloud without virtualization. We're seeing the same level of shift now with confidential computing on the hardware side. And all the large players are behind this. They're all part of the confidential computing consortium that pushes this. But the challenge customers are running into, is for them to go use this they have to go refactor and rebuild every application. >> Why? >> And nobody's going to go do that. And that's exactly what we help them with. >> Yeah. >> In terms of why, as part of confidential computing, what it essentially means is that the operating system is outside the cross cycle. You, you don't want to cross the operating system because you don't want somebody with root access to have any access to your data. And what this means is every application obviously communicates with the operating system pretty often, right? To send something to the network or some, you know, save something to the file system, which means you have to re-architect your application and break it into two: a confidential piece and a piece that's communicating with the operating system and build some channel for the two sides to communicate. Nobody's going to go do that for every application. We allow you to essentially do something like Anjuna run application and it just runs in a confidential computing environment. No changes. >> Let's talk a little bit more about that. So when we're thinking about, I think we've talked a little bit about it, but I think there's a myth of control when we're talking about on-prem. Everybody thinks that things are more secure. >> Right. >> It's not the case. Tell us how enterprise security changes once when a customer has adopted Anjuna. >> Yeah, so I think you're absolutely right. I think the clouds can put a lot more effort and expertise into bringing security than the data center. But you definitely have this sort of more sense of security in your data center because you own the full stack, right? It's your people, it's your servers, it's your networks in the cloud >> Savannah: It's in your house, so to speak. Yeah. >> Exactly. And the cloud is the third party managing all that for you. And people get very concerned about that, and to some extent for a good reason. Because if a breach happens regardless of whose fault it is, the customer's going to be the one sort of left holding the bag and dealing with the aftermath of the breach. So they're right to be concerned. In terms of what we do, once you run things in confidential computing, you sort of solve the core problem of security. One of the core problems of security has always been when somebody gets access to the infrastructure especially root access to the infrastructure, it's game over. They have access to everything. And a lot of how security's been built is almost like these bandaid solutions to try to solve. Like perimeter security is how do I make sure nobody gets access to the infrastructure if they don't need to, right? All these detection solutions is once they're in the infrastructure, how do I detect that they've done something they shouldn't have? A lot of the vulnerability management is how do I make sure everything is patched? Because if somebody gets access how do I make sure they don't get root access? And then they really get access to everything. And conversation computing solves all of that. It solves the root cause, the root problem. So even if somebody gets root access, even if somebody has full access to the infrastructure, they don't have access to anything, which allows you to one, essentially move anything you want to the public cloud regardless, of the sensitivity of it, but also get rid of a lot of these other sort of bandaid solutions that you use today to try to stop people from getting that access because it doesn't matter anymore. >> Okay. So cyber security is a one and a half trillion dollar industry, growing at over 10% a year. Are you saying that if organizations were to adopt confidential computing universally that industry would not be necessary? >> No, I think a lot of it will have to change with confidential computing. Exactly, like the computer industry changed with virtualization. If you had asked when VMware just got started if the data centers are going to like, "Oh, this is going to happen," I don't think anybody could have foreseen this. But this is exactly what virtualization did. Confidential computing will change the the security industry in a massive way, but it doesn't solve every security problem. What it essentially does is it moves the perimeter from the machine itself, which used to be sort of the smallest atom, to be around the workload. And what happens in the machine doesn't matter anymore. You still need to make sure that your workload is protected. So companies that make sure that you write secure code are still going to be needed. Plus you're going to need security for things like denial of service. Because if somebody runs, you know, gets access to their infrastructure, they can stop you from running but your data is going to be protected. You're not going to need any of these data protection solutions around the box anymore. >> Let's hang out there for a second. Where do you see, I mean what an exciting time to be you, quite frankly, and congratulations on all of your success so far. Where are we going in the next two to five years? >> Yeah, I think with confidential computing the first thing that this is going to enable is essentially moving everything to the public cloud. I think the number one concern with the cloud kind of like you mentioned, is security and privacy. >> Savannah: Right. >> And this essentially eliminates that need. And that's why the clouds are so excited about this. That's why AWS talks about it. And I think Steve Schmidt, the of CISO of Amazon, used to be the CISO of AWS, talks about confidential computing as the future of data security and privacy. And there's a reason why he does that. We've seen other clouds talk about this and push this. That's why the clouds are so excited about this. But even more so again, I think over time this will allow you to essentially remove a lot of the security tools that exist there, kind of reimagine security in a better way. >> Savannah: Clean it up a little bit. Yeah. >> Exactly. And over time, I think it's going to change the world of compute even more because one of the things this allows you to do is the closer you get to the edge, the more security and privacy problems you have. >> Savannah: Right. And so many variables. >> Exactly. And it's basically out there in the wild, and people can get physical access. >> Quite literally a lot of the time, yeah. >> Exactly. And what confidential computing does, it provides that complete security and privacy regardless of even if somebody has physical access, which will allow you to move workloads much closer to the edge or to the edge itself instead of sending everything back to your backend to process things. >> We have interviewed a number of security companies here during this event, and I have to say, confidential computing has never come up. They don't talk about it. Why is that? Is there an awareness problem? >> Savannah: Are they threatened? >> Yeah, so I think the biggest, and to some extent, this is exactly like I kept bringing up VMware. Like VMware's, you can think of Salesforce, when they talked about SaaS, they sort of embedded the concept of SaaS. No other company on the planet was talking about SaaS. They created a new category and now almost everything is SaaS. VMware with virtualization, right? Nobody was using it, and now, almost everything is virtualized. Confidential computing is a new way of doing things. It's basically a kind have to shift the way of how you think about security and how you think about privacy. And this is exactly what we're seeing. I don't expect other security companies to talk about this. And to some extent, one of the things I've realized that we're almost more of an infrastructure company than a security company, because we bake security to be part of the infrastructure. But we're seeing more and more the clouds talk about this. The CPU vendors talk about this. We talk to customers more and more. Like almost every large bank I talk to now has a confidential computing strategy for 2023. This is now becoming part of the mainstream. And yeah, security companies will have to adopt or die if they don't fit into that new world that it is going to create >> This is the new world order, baby, get on the train or get left behind. >> Ayal: Exactly. >> I love it. This is a really fascinating conversation and honestly what you're doing makes so much sense. Yeah, you don't need me to validate your business model, but I will, just for the sake of that. >> Thank you. >> We have a new challenge here at re:Invent on theCUBE where we are looking for your 30 second Instagram reel hot take, thought leadership. What's the biggest theme, key takeaway from the show or experience this year for you? >> Yeah, so for me, obviously focusing on confidential computing. I think this is just going to be similar to how no network was encrypted 10 years ago and today every network is encrypted with TLS and HTTPS. And how five years ago no disc was encrypted, and today every disc is encrypted with disc encryption. The one missing piece is memory. Memory is where data is exposed now. I think within a few years all memory is going to be encrypted and it's just going to change two industries: the security industry as well as the computer industry. >> Paul: Does that include cache memory? >> What's that? >> Does that include cache memory? >> That is encrypting the RAM essentially. So everything, this is the one last place where data is not encrypted, and that's exactly what confidential computing brings to the table. >> Are there any performance concerns with encrypting memory? >> That's a phenomenal question. One of the really nice things about confidential computing is that the heavy lifting is done by the hardware vendors themselves as part of the hardware and not part of the critical path in the CPU. It's very similar to the TLS acceleration cards, if you remember those, which allows us to be extremely, extremely performant. And that's why I think this is going to be for everything. Because every time we had a security solution that had no performance impact and was super simple to use it just became the default, because why wouldn't you use it for everything? >> Ayal, this has been absolutely fascinating. We could talk to you all day. Unfortunately, we're out of time. But really thank you so much for coming on the show. Now, we feel more confident in terms of our confidential computing knowledge and definitely learned a lot. Thank all of you for tuning in to our fantastic four day live stream at AWS re:Invent here in Sin City with Paul Gillin. I'm Savannah Peterson. You're watching theCUBE, the leader in high tech coverage. (gentle music)

>>Hello and welcome back to the Cube's coverage of AWS Reinvent 2022. I'm John Furrier, host of the Cube. We got a great conversation with Patrick Kauflin, vice president of Go to Market Strategy and specialization at Splunk. We're talking about the open cybersecurity scheme of framework, also known as the O C sf, a joint strategic collaboration between Splunk and aws. It's got a lot of traction momentum. Patrick, thanks for coming on the cube for reinvent coverage. >>John, great to be here. I'm excited for this. >>You know, I love this open source movement and open source and continues to add value, almost sets the standards. You know, we were talking at the CNCF Linux Foundation this past fall about how standards are coming outta open source. Not so much the the classic standards groups, but you start to see the developers voting with their code groups deciding what to adopt de facto standards and security is a real key part of that where data becomes key for resilience. And this has been the top conversation at reinvent and all around the industry, is how to make data a key part of building into cyber resilience. So I wanna get your thoughts about the problem that you see that's emerging that you guys are solving with this group kind of collaboration around the ocs f >>Yeah, well look, John, I I think, I think you, you've already, you've already hit the high notes there. Data is proliferating across the enterprise. The attack surface area is rapidly expanding. The threat landscape is ever changing. You know, we, we just had a, a lot of scares around open SSL before that we had vulnerabilities and, and Confluence and Atlassian, and you go back to log four J and SolarWinds before that and, and challenges with the supply chain. In this year in particular, we've had a, a huge acceleration in, in concerns and threat vectors around operational technology. In our customer base alone, we saw a huge uptake, you know, and double digit percentage of customers that we're concerned about the traditional vectors like, like ransomware, like business email compromise, phishing, but also from insider threat and others. So you've got this, this highly complex environment where data continues to proliferate and flow through new applications, new infrastructure, new services, driving different types of outcomes in the digitally transformed enterprise of today. >>And, and what happens there is, is our customers, particularly in security, are, are left with having to stitch all of this together. And they're trying to get visibility across multiple different services, infrastructure applications across a number of different point solutions that they've bought to help them protect, defend, detect, and respond better. And it's a massive challenge. And you know, when our, when our customers come to us, they are often looking for ways to drive more consolidation across a variety of different solutions. They're looking to drive better outcomes in terms of speed to detection. How do I detect faster? How do I bind the thing that when bang in the night faster? How do I then fix it quickly? And then how do I layer in some automation so hopefully I don't have to do it again? Now, the challenge there that really OCF Ocsf helps to, to solve is to do that effectively, to detect and to respond at the speed at which attackers are demanding. >>Today we have to have normalization of data across this entire landscape of tools, infrastructure, services. We have to have integration to have visibility, and these tools have to work together. But the biggest barrier to that is often data is stored in different structures and in different formats across different solution providers, across different tools that are, that are, that our customers are using. And that that lack of data, normalization, chokes the integration problem. And so, you know, several years ago, a number of very smart people, and this was, this was a initiative s started by Splunk and AWS came together and said, look, we as an industry have to solve this for our customers. We have to start to shoulder this burden for our customers. We can't, we can't make our customers have to be systems integrators. That's not their job. Our job is to help make this easier for them. And so OCS was born and over the last couple of years we've built out this, this collaboration to not just be AWS and Splunk, but over 50 different organizations, cloud service providers, solution providers in the cybersecurity space have come together and said, let's decide on a single unified schema for how we're gonna represent event data in this industry. And I'm very proud to be here today to say that we've launched it and, and I can't wait to see where we go next. >>Yeah, I mean, this is really compelling. I mean, it's so much packed in that, in that statement, I mean, data normalization, you mentioned chokes, this the, the solution and integration as you call it. But really also it's like data's not just stored in silos. It may not even be available, right? So if you don't have availability of data, that's an important point. Number two, you mentioned supply chain, there's physical supply chain that's coming up big time at reinvent this time as well as in open source, the software supply chain. So you now have the perimeter's been dead for multiple years. We've been talking with that for years, everybody knows that. But now combined with the supply chain problem, both physical and software, there's so much more to go on. And so, you know, the leaders in the industry, they're not sitting on their hands. They know this, but they're just overloaded. So, so how do leaders deal with this right now before we get into the ocs f I wanna just get your thoughts on what's the psychology of the, of the business leader who's facing this landscape? >>Yeah, well, I mean unfortunately too many leaders feel like they have to face these trade offs between, you know, how and where they are really focusing cyber resilience investments in the business. And, and often there is a siloed approach across security, IT developer operations or engineering rather than the ability to kind of drive visibility integration and, and connection of outcomes across those different functions. I mean, the truth is the telemetry that, that you get from an application for application performance monitoring or infrastructure monitoring is often incredibly valuable when there's a security incident and vice versa. Some of the security data that, that you may see in a security operation center can be incredibly valuable in trying to investigate a, a performance degradation in an application and understanding where that may come from. And so what we're seeing is this data layer is collapsing faster than the org charts are or the budget line items are in the enterprise. And so at Splunk here, you know, we believe security resilience is, is fundamentally a data problem. And one of the things that we do often is, is actually help connect the dots for our customers and bring our customers together across the silos they may have internally so that they can start to see a holistic picture of what resilience means for their enterprise and how they can drive faster detection outcomes and more automation coverage. >>You know, we recently had an event called Super Cloud, we're going into the next gen kind of a cloud, how data and security are all kind of part of this NextGen application. It's not just us. And we had a panel that was titled The Innovators Dilemma, kind of talk about you some of the challenges. And one of the panelists said, it's not the innovator's dilemma, it's the integrator's dilemma. And you mentioned that earlier, and I think this a key point right now into integration is so critical, not having the data and putting pieces together now open source is becoming a composability market. And I think having things snap together and work well, it's a platform system conversation, not a tool conversation. So I really wanna get into where the OCS f kind of intersects with this area people are working on. It's not just solution architects or cloud cloud native SREs, especially where DevSecOps is. So this that's right, this intersection is critical. How does Ocsf integrate into that integration of the data making that available to make machine learning and automation smarter and more relevant? >>Right, right. Well look, I mean, I I think that's a fantastic question because, you know, we talk about, we use Bud buzzwords like machine learning and, and AI all the time. And you know, I know they're all over the place here at Reinvent and, and the, there's so much promise and hope out there around these technologies and these innovations. However, machine learning AI is only as effective as the data is clean and normalized. And, and we will not realize the promise of these technologies for outcomes in resilience unless we have better ways to normalize data upstream and better ways to integrate that data to the downstream tools where detection and response is happening. And so Ocsf was really about the industry coming together and saying, this is no longer the job of our customers. We are going to create a unified schema that represents the, an event that we will all bite down on. >>Even some of us are competitors, you know, this is, this is that, that no longer matters because at the point, the point is how do we take this burden off of our customers and how do we make the industry safer together? And so 15 initial members came together along with AWS and Splunk to, to start to create that, that initial schema and standardize it. And if you've ever, you know, if you've ever worked with a bunch of technical grumpy security people, it's kind of hard to drive consensus about around just about anything. But, but I, I'm really happy to see how quickly this, this organization has come together, has open sourced the schema, and, and, and just as you said, like I think this, this unlocks the potential for real innovation that's gonna be required to keep up with the bad guys. But right now is getting stymied and held back by the lack of normalization and the lack of integration. >>I've always said Splunk was a, it eats data for breakfast, lunch, and dinner and turns it into insights. And I think you bring up the silo thing. What's interesting is the cross company sharing, I think this hits point on, so I see this as a valuable opportunity for the industry. What's the traction on that? Because, you know, to succeed it does take a village, it takes a community of security practitioners and, and, and architects and developers to kind of coalesce around this defacto movement has been, has been the uptake been good? How's traction? Can you share your thoughts on how this is translating across companies? >>Yeah, absolutely. I mean, look, I, I think cybersecurity has a, has a long track record of, of, of standards development. There's been some fantastic standards recently. Things like sticks and taxi for threat intelligence. There's been things like the, you know, the Mir attack framework coming outta mi mir and, and, and the adoption, the traction that we've seen with Attack in particular has been amazing to, to watch how that has kind of roared onto the scene in the last couple of years and has become table stakes for how you do security operations and incident response. And, you know, I think with ocs f we're gonna see something similar here, but, you know, we are in literally the first innings of, of this. So right now, you know, we're architecting this into our, into every part of our sort of backend systems here at Polan. I know our our collaborators at AWS and elsewhere are doing it too. >>And so I think it starts with bringing this standard now that the standard exists on a, you know, in schema format and there, there's, you know, confluence and Jira tickets around it, how do we then sort of build this into the code of, of the, the collaborators that have been leading the way on this? And you know, it's not gonna happen overnight, but I think in the coming quarters you'll start to see this schema be the standard across the leaders in this space. Companies like Splunk and AWS and others who are leading the way. And often that's what helps drive adoption of a standard is if you can get the, the big dogs, so to speak, to, to, to embrace it. And, and, you know, there's no bigger one than aws and I think there's no, no more important one than Splunk in the cybersecurity space. And so as we adopt this, we hope others will follow. And, and like I said, we've got over 50 organizations contributing to it today. And so I think we're off to a running >>Start. You know, it's interesting, choking innovation or having things kind of get, get slowed down has really been a problem. We've seen successes recently over the past few years. Like Kubernetes has really unlocked and accelerated the cloud native worlds of runtime with containers to, to kind of have the consensus of the community to say, Hey, if we just do this, it gets better. I think this is really compelling with the o the ocs F because if people can come together around this and get unified as well as all the other official standards, things can go highly accelerated. So I think, I think it looks really good and I think it's great initiative and I really appreciate your insight on that, on, on your relationship with Amazon. Okay. It's not just a partnership, it's a strategic collaboration. Could you share that relationship dynamic, how to start, how's it going, what's strategic about it? Share to the audience kind of the relationship between Splunk and a on this important OCS ocsf initiative. >>Look, I, I mean I think this, this year marks the, the 10th year anniversary that, that Splunk and AWS have been collaborating in a variety of different ways. I, I think our, our companies have a fantastic and, and long standing relationship and we've, we've partnered on a number of really important projects together that bring value obviously to our individual companies, but also to our shared customers. When I think about some of the most important customers at Splunk that I spend a significant amount of time with, I I I know how many of those are, are AWS customers as well, and I know how important AWS is to them. So I think it's, it's a, it's a collaboration that is rooted in, in a respect for each other's technologies and innovation, but also in a recognition that, that our shared customers want to see us work better together over time. And it's not, it's not two companies that have kind of decided in a back room that they should work together. It's actually our customers that are, that are pushing us. And I think we're, we're both very customer centric organizations and I think that has helped us actually be better collaborators and better partners together because we're, we're working back backwards from our customers >>As security becomes a physical and software approach. We've seen the trend where even Steven Schmidt at Amazon Web Services is, is the cso, he is not the CSO anymore. So, and I asked him why, he says, well, security's also physical stuff too. So, so he's that's right. Whole lens is now expanded. You mentioned supply chain, physical, digital, this is an important inflection point. Can you summarize in your mind why open cybersecurity schema for is important? I know the unification, but beyond that, what, why is this so important? Why should people pay attention to this? >>You know, I, if, if you'll let me be just a little abstract in meta for a second. I think what's, what's really meaningful at the highest level about the O C S F initiative, and that goes beyond, I think, the tactical value it will provide to, to organizations and to customers in terms of making them safer over the coming years and, and decades. I think what's more important than that is it's really the, one of the first times that you've seen the industry come together and say, we got a problem. We need to solve. That, you know, doesn't really have anything to do with, with our own economics. Our customers are, are hurt. And yeah, some of us may be competitors, you know, we got different cloud service providers that are participating in this along with aws. We got different cybersecurity solution providers participating in this along with Splunk. >>But, but folks who've come together and say, we can actually solve this problem if, if we're able to kind of put aside our competitive differences in the markets and approach this from the perspective of what's best for information security as a whole. And, and I think that's what I'm most proud of and, and what I hope we can do more of in other places in this industry, because I think that kind of collaboration from real market leaders can actually change markets. It can change the, the, the trend lines in terms of how we are keeping up with the bad guys. And, and I'd like to see a lot more of >>That. And we're seeing a lot more new kind of things emerging in the cloud next kind of this next generation architecture and outcomes are happening. I think it's interesting, you know, we always talk about sustainability, supply chain sustainability about making the earth a better place. But you're hitting on this, this meta point about businesses are under threat of going under. I mean, we want to keep businesses to businesses to be sustainable, not just, you know, the, the environment. So if a business goes outta business business, which they, their threats here are, can be catastrophic for companies. I mean, there is, there is a community responsibility to protect businesses so they can sustain and and stay Yeah. Stay producing. This is a real key point. >>Yeah. Yeah. I mean, look, I think, I think one of the things that, you know, we, we, we complain a lot of in, in cyber security about the lack of, of talent, the talent shortage in cyber security. And every year we kinda, we kind of whack ourselves over the head about how hard it is to bring people into this industry. And it's true. But one of the things that I think we forget, John, is, is how important mission is to so many people in what they do for a living and how they work. And I think one of the things that cybersecurity is strongest in information Security General and has been for decades is this sense of mission and people work in this industry be not because it's, it's, it's always the, the, the most lucrative, but because it, it really drives a sense of safety and security in the enterprises and the fabric of the economy that we use every day to go through our lives. And when I think about the spun customers and AWS customers, I think about the, the different products and tools that power my life and, and we need to secure them. And, and sometimes that means coming to work every day at that company and, and doing your job. And sometimes that means working with others better, faster, and stronger to help drive that level of, of, of maturity and security that this industry >>Needs. It's a human, is a human opportunity, human problem and, and challenge. That's a whole nother segment. The role of the talent and the human machines and with scale. Patrick, thanks so much for sharing the information and the insight on the Open cybersecurity schema frame and what it means and why it's important. Thanks for sharing on the Cube, really appreciate it. >>Thanks for having me, John. >>Okay, this is AWS Reinvent 2022 coverage here on the Cube. I'm John Furry, you're the host. Thanks for watching.

>>Hello everyone. Welcome back to the Cube's Live coverage. I'm John Fur, host of the Cube. We got two sets here, three sets total. Another one in the executive center. It's our 10th year covering AWS Reinvent. I remember 2013 like it was yesterday. You know, now it's a massive of people buying out restaurants. 35,000 people now it's 55,000, soon to be 70,000 back. Great event. Continuing to set the standard in the industry. We had an amazing guest here, Leah Bibo, vice President of Product Marketing. She's in charge of the messaging, the product, overseeing how these products gonna market. Leah, great to see you. Thanks for joining me on the Cube today. >>Absolutely. It's great to be here. It's also my 10 reinvent, so it's, it's been a wild ride. >>Absolutely. Yeah. You and I were talking before we came on camera, how much we love products and yes, this is a product-centric company, has been from day one and you know, over the years watching the announcements, the tsunami of announcements, just all the innovation that's come out from AWS over the years has been staggering to say the least. Everyone always jokes about, oh my God, 5,000 new announcements, over 200 services you're managing and you're marketing them. It's pretty crazy right now. And Adam, as he comes on, as I called them, the solutions CEO on my piece I wrote on Friday, we're in an era where solutions, the products are enabling more solutions. Unpack the messaging around this cuz this is really big moment for aws. >>Absolutely. Well, I'll say first of all that we are a customer focused company that happens to be really good at innovating incredible products and services for our customers. So today the, the energy in the room and what Adam talked about, I think is focused on a few great things for customers that are really important for transformation. So we talked a lot about best price performance for workloads and we talked about extreme workloads, but if you think about the work that we've been doing to innovate on the silicon side, we're really talking about with Graviton all your workloads and getting really great price performance for all of them. You know, we came out with graviton three 25% faster than graviton two, also 60% more energy efficient. We talked about something that is emerging that I think is gonna be really big, which is simulation and really the ability to model these complex worlds and all the little interactions, which I think, you know, in the future as we have more complex environments like 3D simulation is gonna be a bigger part of every, every business's >>Business. You know, just as an aside, we were talking on the analyst segment that speeds and feeds are back and the old days and the data center days was like, we don't wanna talk about speeds and feeds about solutions and you know, the outcomes when you get the cloud, it was like, okay, get the workloads over there, but people want faster and lower cost performance workloads gotta be running at at high performance. And, and there's a real discussion around those. Let's unpack security data performance. What, what does that mean for customers? Because again, I get the workloads run fast. That's great. What else is behind the curtain, so to speak from a customer standpoint? >>Absolutely. Well I think if you're gonna move all your workloads to the cloud, you know, security is a really big area that's important. It's important to every one of our enterprise companies customers. Actually it's important to all of our customers and we've been working, you know, since the beginning of AWS to really create and build the most secure global infrastructure. And you know, as our customers have moved mission critical workloads, we've built out a lot more capabilities and now we have a whole portfolio of security services. And what we announced today is kind of game changing. The service called Security Lake, which brings together, you know, an ecosystem of security data in a format that's open. So you can share data between all of these sources and it's gonna give folks the opportunity to really be able to analyze data, find threats faster, and just kind of know their security posture. And I think, you know, as we talked about today, you don't wanna think about the cloud as unfathomable, the unfathomable, you really need to know that security. And I think that like a lot of things we discussed, security is a data opportunity, right? And I think we, we had a section on on data, but really if you look at the keynote across security, across solutions, across the purpose built things we made, it's all, it all comes down to data and it's really the, the transformational element that our customers >>Are. I mean the data secured is very integral part good call out there. And I, I wanna just double down on that real quick because I remember in 2014 I interviewed Steven Schmidt when he was the CSOs and back then in 2014, if you remember the conversation was this, the clouds not secure, gotta be on premises. Now in today's keynote, Adam says, and he laid out the whole global security footprint. There's a lot going on that Amazon has now become more secure than on-prem. He actually made that statement. So, and then plus you got thousands of security partners, third party partners, you got the open cyber security framework which you guys co-found with all the other, so you got securities not as a team sport, this is what they, they said yes, yes. What does that mean for customers? Because now this is a big deal. >>Well I think for customers, I mean it means nothing but goodness, right? But all of these thousands of security partners have really innovated and created solutions that our customers are using. But they all have different types of data in different silos. And to really get a full picture bringing all that data together is really important. And it's not easy today. You know, log data from different sources, data from detection services and really what customers want is an easier way to get it all together. Which is why we have the open OCS F and really analyze using the tools of their choice. And whether that's AWS tools for analytics or it's tools from our partners, customers need to be able to make that choice so that they can feel like their applications and their workloads are the most secure on aws. >>You know, I've been very impressed with guard duty and I've been following Merit Bear's blogs on online. She's in the security team, she's amazing. Shout out to her. She's been pushing guard duty for a long time now there's big news around guard duty. So you got EKS protection, you know, at Coan this was the biggest cloud native issue, the runtime of Kubernetes and inside the container and outside the container detection of threats, right? As a real software supply chain concern. How are you guys marketing that? This is a huge announcement. EKS protection I know is very nuanced but it's pretty big deal. >>It is a big deal. It is a big deal. And guard duty has been kind of like a quiet service that maybe you don't hear a lot about, but has been really, really popular with our customers. Adam mentioned that 85% of, you know, our top 2000 customers are using guard duty today. And it was a big moment. We launched EKS protection, you know, a little bit earlier and the customer uptake on that has been really incredible. And it is because you can protect your Kubernetes cluster, which is really important because so many customers are, you know, part of their migration to the cloud is containers. Yeah. And so we're pretty excited that now we can answer that question of what's going on inside the container. And so you have both, yeah, right. You know that your Kubernetes pluses are good and you know what's going on inside the container and it's just more threats that you can detect and protect >>Yourself from. You know, as an aside, I'm sure you're watching this, but you know, we go to a lot of events, you know, the C I C D pipeline as developers are getting higher velocity coding, it has moved in because of DevOps on the cloud into the C I C D pipeline. So you're seeing that developer takes some of those IT roles in the coding workflow, hence the, the shift left and or container security, which you guys now, now and are driving towards. But the security and the data teams are emerging as a very key element inside the organizational structure. When I sat down with Adam, one of the things he was very adamant about in my conversation was not just digital transformation, business transformation, structural organizational moves are making where it's not a department anymore, it is the company, a technology is the company when you transform. Absolutely. So digital is the process, business is the outcome. This is a really huge message. What's your reaction to that? What's, what can you share extra cuz that's, this is a big part of the thing. He hit it right outta the gate on the front end of the keynote. >>Absolutely. Absolutely. I mean I think, you know, companies have been migrating to the cloud for a while, but I think that this time that we're going through has really accelerated that migration And as part of that, you know, digital transformation has become real for a lot of companies. And it is true what Adam said there is technology transformation involved, there's data transformation involved, but it, it is transforming businesses. And I think if you look at some of the things that Adam talked about, you know, aws, supply chain, security Lake, aws clean rooms, and Omic, aws, omic, you know, those are all examples of data and the ability to work with data transforming different lines of business within a company, transforming horizontal processes like contact centers and like supply chain and also, you know, going into vertical specific solutions. So what it means is that as technology becomes more pervasive, as data becomes more pervasive, businesses are transforming and that means that a lot more people are going to use the cloud and interact with the cloud and they might not want to or be able to kind of use our building blocks. And so what's really exciting that what we're able to do is make cloud more accessible to lines of business folks to analysts, to security folks. So >>It's, yeah, and that's, and that's why I was calling my this this new trend I see as Amazon Classic, my words, not your words, I call the, hey there was classic cloud and then you got the next gen clown, the new next generation. And I was talking with Adrian Cockcroft, former aws, so he's now retired, he's gonna come on later today. He and I were talking, he use this thing of you got a bag of Legos aka primitives or a toy that's been assembled for you glued together, ones out of the box, but they're not mutually exclusive. You can build a durable application and foundation with the building blocks more durable. You can manage it, refine it, but you got the solution that breaks. You don't have as much flexibility but you gotta replace it. That's okay too. So like this is now kind of a new portfolio approach to the cloud. It's very interesting and I think, I think, I think that's what I took away from the keynote is that you can have both. >>Yes, absolutely. You can do both. I mean, we're gonna go full throttle on releasing innovations and pushing the envelope on compute and storage and databases and our core services because they matter. And having, you know, the choice to choose from a wide range of options. I mean that's what, that's what customers need. You know, if you're gonna run hpc, you're gonna run machine learning and you're gonna run your SAP applications or your Windows applications, you need choice of what you know, specific type of instance and compute capabilities. You need to get the price performance. It's, it's definitely not a one size fits all. It's a 600 instance type. Size fits all maybe. >>Exactly. And you got a lot of instance and we'll get to that in a second. Yeah, I love the themes. I love this keynote themes you had like at first space, but I get the whole data, then you look at it, you can look at it differently. Really good metaphor, the ocean one I love with the security because he mentioned you can have the confidence to explore go deep snorkeling versus scuba and knowing how much oxygen you have. I mean, so really cool metaphor made me think very provocative. So again, this is kind of why people go to AWS because you now have these, these abilities to do things differently, depend on the context of what products you're working with. Yes. Explain why that was the core theme. Was there any rationale behind that? Was it just how you guys saw it? I mean that was pretty clever. >>Well, I think that, you know, we're, we're talking about environments and I think in this world, you know, there's uncertainty in a lot of places and we really feel like all of us need to be prepared for different types of environments. And so we wanted to explore what that could look like. And I think, you know, we're fascinated by space and the vastness and it is very much like the world of data. I don't know about you, but I actually scuba dive. So I love the depths of the ocean. I loved working on that part. There's extremes, extreme workloads like hpc, extreme workloads like machine learning with the growing models and there's an imagination, which is also one of my favorite areas to explore. >>Yeah. And you use the Antarctica one for about the whole environment and extreme conditions. That's good in the performance. And I love that piece of it. And I want to get into the, some of the things I love the speeds and fee. I think the, the big innovation with the silicon we've been covering as, you know, like a blanket. The, he's got the GRAVITON three 25% faster than GRAVITON two, the C seven GN network intense workloads. This is kind of a big deal. I mean this is one of those things where it might not get picked up in the major press, but the network use cases are significant. Nira has been successful. Share your thoughts on these kinds of innovations because they look kind of small, but they're not, they're >>Big, they're not small for sure, especially at the scale that our customers are, are, are running their applications. Like every little optimization that you can get really makes a huge difference. And I think it's exciting. I mean you hit on, you kind of hit on it when we've been working on silicon for a while now we know that, you know, if we're gonna keep pushing the element, the envelope in these areas, we had to, we had to go down to the silicon. And I think that Nitro has really been what's kind of been a breakthrough for us. You know, reinventing that virtualization layer, offloading security and storage and networking to special purpose chips. And I think that it's not just in the area of network optimization, right? You saw training optimized instances and inference optimized instances and HPC optimized instances. So yeah, we are kind of looking at all the extremes of, of what customers want to do. >>I know you can't talk about the future, but I can almost connect the dots as you're talking. It's like, hmm, specialized instances, specialized chips, maybe programmability of workload, smart intelligence, generative AI, weaving in there. A lot of kind of cool things I can see around the corner around generative AI automation. Hey, go to this instance with that go here. This is kind of what I see kind of coming around the corner. >>And we have some of that with our instance optimizers, our cost optimizer products where, you know, we wanna help customers find the best instance for their workload, get the best utilization they possibly can, you know, cut costs, but still have the great performance. So I don't, I don't know about your future, John, it sounds great, but we have, you know, we're taking steps in that direction today. >>Still look in this code that's gonna be on this code. Okay. Any, okay, I wanna give you one final question. Well, well two questions. One was a comment Adam made, I'd love to get your reaction if you want to tighten your bell, come to the cloud. I thought that was a very interesting nuance. A lot of economic pressure. Cloud is an opportunity to get agile, time to value faster. We had Zs carve cube analyst who's with us earlier said, the more you spend on the cloud, the more you save. That was his line, which I thought was very smart. Spending more doesn't mean you're gonna lose money, means you can save money too. So a lot of cost optimization discussions. Absolutely. Hey, your belt come to the cloud. What does he mean by that? >>Well I think that in, in times where, you know, there's uncertainty and economic conditions, it is, it's really, you know, you sometimes wanna pull back kind of, you know, batten down the hatches. But the cloud really, and we saw this with C you know, if you, if you move to the cloud, not only can you cut costs, but you put yourself in this position where you can continue to innovate and you can be agile and you can be prepared for whatever environment you're in so that you know when things go back or you have a customer needs that and innovation that goes off like you, you can accelerate back up really, really quickly. And I think we talked about Airbnb, that example of how, you know, in, in that really tough time of covid when travel industry wasn't happening so much, you know, they were able to scale back and save money. And then at the same time when, you know, Airbnb's kind of once again travel came back, they were in a position to really, really quickly change with the, the customer needs. >>You know, Lee, it's always great talking with you. You got a lot of energy, you're so smart and we both love products and you're leading the product marketing. We have an Instagram challenge here on the cube. I'm gonna put you on the spot here. Oh my gosh. It's called Instagram. We called a bumper sticker section. We used to call it what's the bumper sticker for reinvent. But we kind of modernized that. If you were gonna do an Instagram reel right now, what would be the Instagram reel for reinvent Keynote day one. As we look for, we got Verner, we'll probably talk about productivity with developers. What's the Instagram reel for reinvent? >>Wow. That means I have to get short with it, right? I am, I'm not always, that's still wrong answer. Yeah, well I think, you know, this is really big day one, so it's excitement, it's, we're glad to be here. We have a lot coming for you. We're super excited. And if you think about it, it's price, performance, it's data, it's security and it's solutions for purpose-built use cases. >>Great job. Congratulations. I love the message. I love how you guys had the theme. I thought it was great. And it's great to see Amazon continue to innovate with, with the, with the, with the innovation on the product side. But as we get into transformation, starting to see these solutions and the ecosystem is thriving and looking forward to hearing the, the new partner, chief Aruba tomorrow. Absolutely. See what she's got a new plan apparently unveiling. So exciting. Everyone's pretty excited. Thanks for coming >>On. Great. Great. Thanks for having >>Me. All right. Leah, here in the cube. You are the cube, the leader in tech coverage. I'm John Fur, your host. More live coverage after the short break. We'll be right back here. Day two of the cube, day one of reinvent. Lot of great action. Three, four days of wall to wall coverage. We'll be right back.

>>Good afternoon and welcome back to the Classiest Show in Technology. This is the Cube we are at AWS Reinvent 2022 in Fabulous Sin City. That's why I've got my sequence on. We love a little Vegas, don't we? I'm joined by John Farer, another, another Vegas >>Fan. I don't have my sequence, I left it in my room. We're >>Gonna have to figure out how to get us 20 as soon as possible. What's been your biggest shock for you at the show so far? >>Well, I think the data story and security is so awesome. I love how that's front and center. If you look at the minutes of the keynote of Adamski, the CEO on day one, it's all bulked into data and security. All worked hand in hand. That's on top of already the innovation of their infrastructure. So I think you're gonna see a lot of interplay going on in this next segment. It's gonna tell a lot of that innovation story that's coming next. It's pretty awesome. >>It is pretty awesome, and I'm super excited. It's not only what we do here on the Cube, it's also in my show notes. We are gonna be geeking out for the next segment. Please welcome Paul and Puja. Wonderful to have you both here. Paul from Amazon, s3, glacier, and Pujan, CEO of kuo. I wanna turn to you Pujan, to start us off, just in case the audience isn't familiar, give us the Kuo pitch. >>Yeah, so basically Kuo is a, a backup as a service offering, right? Built in AWS four aws, right? And effectively going after, you know, any service that a customer uses on top of aws, right? And so a lot of the data sitting on s3, right? So that's been like our, our big use case going and basically building backup and air gap protection for, for s3. But we basically go to every other service, e c two, ebs, dynamo, you know, you name it, right? So basically do the whole thing >>And the relationship with aws. Can you guys share, I mean, you got you here together. You guys are a great partnership. Born in the cloud, operation in the cloud. Absolutely. I think talk about the partnership with aws. >>Absolutely. I think the last five years of building on AWS has been phenomenal, right? And I love the platform. It's, it's a very pure platform for us. You know, the APIs and, and the access you get and access you get to the service teams like Paul sitting here and the other teams you have gotten access to, I think has been phenomenal. But we also have, I would say, pushed the envelope in terms of how innovative we have been and how aggressive we have been in utilizing all the innovation that AWS has built in over the last few years. But it would not have happened without the fantastic partnership with the service teams. >>Paul, talk about the, AM the S3 part of this. What's the story there? >>Well, it's been great working with the CUO team over the course of the last few years. We were just upstairs diving deep into the, to the features that they're taking advantage of. They really push us hard on behalf of customers, and it's been a, it's just been a great relationship over the last years. >>That's awesome. And the ecosystem at such a, we're gonna hear tomorrow, the keynote on the, from Aruba who's gonna tend over the ecosystem. You guys are working together. There's a lot of strategic partnerships, so much collaboration between you guys that makes it very, this is the next gen cloud of cloud environment we're seeing. And you heard the, the economies around the corner. It's still gonna be challenging, but still there's more growth in the cloud. This is not stopping. This is impacts the customers. What are the customers saying to you guys when you work backwards from their needs? They want it faster, easier, cheaper. They want it more integrated. What are some of the things, all those you guys hearing from customers? >>So for us, you know, if you think about it, like, you know, as people are moving to the cloud, especially like take a use case like s3, right? So much of critical data sitting on top of S3 today. And so what folks have realized that as they're, you know, putting all of those, you know, what, over two 50 trillion objects, you know, sitting on s3, a lot of them need backup and data protection because there could be accidental deletions, there could be software bugs, there could be a ransomware type event due to which you need a second copy of the data that is outside of your security domain, right? But again, that needs to get be done at the, at the right price point, right? And that's where like a technology like Columbia comes in because since we've been built on the cloud, we've optimized it correctly. So especially for folks who are very cost conscious, given the macroeconomic conditions, we are heading into a technology that's built correctly so that, you know, you get the right architecture and the right solution at the right price point and the scale, right? Talking about trillions of objects, billions of objects within a single customer, within a single bucket sometimes. And that's where Columbia comes in. Cause we basically do that at scale without, again, impacting the, the customer's wallet more than it needs to. >>The porridge has to be the right temperature and the right size bowl. With the right spoon. You've got a lot of complexity when it comes to solving those customer challenges. You have a couple customer story examples you're allowed to share with us. Correct? Paul, do you want to kick one off? Go ahead. Oh, puja. All right. >>No, absolutely. I think there's a ton of them. I, I'll talk about, you know, want to begin with like Cox Automotive, right? A phenomenal customer that we, all of us have worked together with them. And again, looking for a solution to backup S3 to essentially go air gap protection outside of their account, right? They looked at doing it themselves, right? They thought they'll go and basically do it themselves. And then they fortunately bumped into Columbia, they looked at our architecture, looked at what it would really go and take to build it. And guess what, sitting in 2022, getting 23 right now, nobody wants to go and build this themselves. They actually want a turnkey solution that just does it, right? And so, again, we are a phenomenal joint customer of ours doing this at a pretty massive scale, right? And there are many more like that. There's Warner Brothers that are essentially going into the cloud from on premises, right? And they're going really fast accelerating the usage on aws again, looking at, you know, backup and data protection and using clum because of our extreme simplicity that we provide. >>Yeah, I think it's, you've got a, a lot of different people solving different problems that you're working with all the time. Millions of customers. Well, how do you prioritize? >>Well, for us, it really all comes down to fundamentals, right? So Amazon, s3 s unique distributed architecture delivers industry leading durability, availability, performance and security at virtually unlimited scale, right? And it's really been delivering on the fundamentals that has earned the trust of so many customers of all sizes and industries over the course of over 16 years. Now, in terms of how we prioritize on behalf of those customers, we always say that 90% of our roadmap comes directly from what customers are telling us is important. And a large number of our customers now are using S3 through lumino, which is why the relationship is so important. We're here talking about customer use cases here at the show, and we do that regularly throughout the year as well. And that's, that's how we land on a road. >>And what are the, what are the top stories from customers? What, what are they telling you? What's the number one top three things you're hearing? >>I tell you, like, again, it just comes down to the fundamentals, right? Of security, availability, durability and performance at virtually unlimited scale. Like that is the first customer first discussions that we have with customers talking about durable storage, for >>Sure. What I find interesting in, you mentioned scale, right? That comes up a lot scale with data. Yeah. That we heard data. The big theme here, security, what's in my S3 bucket? Can you find out what's in there? Is it backed up properly? How do I get it back? Where's the ransomware? Why not just target the ransomware? So how do you navigate the, the security challenges, the, the need to store all that scale data? What's the secret sauce? >>Yeah, so I think the, the big thing is we'll start with the, you know, how we have architected the product, right? If you think about it, this, you're dealing with a lot of scale, right? You get to a hundred million, a billion and billions very fast on S3 few, especially on a cloud native application. So it starts with the visibility, right? It's basically about, like we have things where you do, where you create a subset of your buckets called protection groups that you can essentially, you know, do it based on prefixes. So now you can essentially figure out what prefix you want to back up and what you don't want to back up. Maybe there's log data that you don't care about, so you don't back that up, right? And it all starts with that visibility that you give. And the prefix level data protection then comes the scale, which is where I was telling you, right? We have basically built an orchestration engine, right? It's like we call the ES for Lambdas, right? So we have a internal orchestration engine and essentially what what we have done is we have our own language internally that spawns off these lambdas, right? And they go after these S3 partitions do the right things and then you basically reel them back. So things like that that we do that are not possible if you're not built on the >>Clock. Well also, I mean, just mind blowing and go back 10 years. Yeah. I mean you got Lambda. What you're talking about here is the gift of the cloud innovation. Yeah. So the benefit of S3 is now accelerated. This is the story this year. Yeah. I mean they're highlighting it at scale, not just in the data, but like what we knew when Lambda came out and what S3 could do. But now mainstream solutions are coming in. Does that change your backup plans? Because we're gonna see a lot more end to end, lot more solutions. We heard that on the keynote. Some are saying it's more complexity. Of course it might, but you can abstract another way with the cloud that's the best part of the cloud. So these abstraction leads. So what's your view on that? But I wanna get your thoughts because you guys are perfectly positioned for this scale, but there's more coming. Yes. Yes. Exactly. What, how are you looking at that? >>So again, I think the, you know, obviously the, the S3 teams and every team in AWS is basically pushing the envelope in terms of innovation. But the key for a partner like us is to go and take that innovation. A lot of complex architectures behind the scene. But what you deliver to the customer is simple. I'll give you one more example. One of the things we launched that, you know, Paul and others are very excited about, is this ability to do instant access on the backup, right? So you could have billions of objects that you backed up. Maybe you need just 10,000 of them for a DR test. And we can basically create like an instant virtual bucket on top of that backup that you can instantly restore >>Spinning up a sandbox of temporary data to go check it >>Out. Exactly. Offer an inte application. >>Think we're geeking out right now. >>Yeah, I know. Brought that part of the segment, John. Don't worry, we're safely there. But, >>But that's the thing, right? That all that is possible because of all the, the scale and innovation and all the APIs and everything that, you know, Paul and the team gives us that we go and build on top of >>Paul, geek out on with us on this. We >>Are super excited for instant restore >>For store. I mean, automation programmability. >>It is, I mean it's the logical next step for backup in the cloud. Exactly. Yeah. But it's a super hard engineering problem to go solve for customers. I mean, the RTO benefits alone are super compelling, but then there's a cost element as well of not having to bring back all that stuff for a test restore, for example. And so it's, it's been really great to, to work with the team on that. We have some ideas on how we may help solve it from our side, and we're looking forward to collaborating on it. >>This is a great illustration of what I was writing about this week around the classic cloud, which is great. And as Adam said, and used like to use the word and, and you got this new functionality we're seeing emerge from the growth. Yes. From the companies that are built on Amazon web services that are growing. You're a partner, they have a lot of other partners and people are taking over restaurant here off action. I mean, there's real growth and new functionality on top of aws. You guys are no different. What's, are you prepared for that? Are you ready to go? >>Yeah, no, absolutely. And I think if you think about, if you think about it, right, I think it's also about doing this without impacting the primary application. Like if the customer is running a primary application at scale on s3, a backup application like ours can't come in and really mess with that. So I think being able to do things where, and this is where you solve really hard computer science problems, right? Where you're bottling yourself. If you are essentially seeing any kind of, you know, interfering with the primary, you're going to cut yourself down. You're gonna go after a different partition. So there are a lot of things you need to do behind the scenes, which is again, all the complexity, all of that, but deliver the, to the customer a very, very simple thing. >>You know, Paul, I wanna get your thoughts and I want you to chime in. Yeah. In 2014, I interviewed Steven Schmidt, my first interview with the, he was the CISO then, and now he's a CSO and, and former ciso, he's back at that time, the word was the cloud's not secure. Now we're talking about security. Just in the complexity of how you're partitioning and managing your sub portions, how you explained it, it's harder for the attackers. The cloud in its in its architecture has become a more secure environment. Yeah. Well, and getting more secure as you have laying out this, this is a new dynamic. This is good. Can you explain the, >>I mean, I, I can just tell you that at AWS security is job zero and that it will always be our number one priority, right? We have a, an infrastructure with under AWS that is vetted and approved to run even top secret workloads, which benefits all customers in all regions. >>And your, your security posture is embedded on top of that. And you got your own stuff. >>Yeah. And if you think of it as a shared responsibility model, so security of the cloud is the responsibility of the cloud provider, but then security of the data on top of it. Like you, you go and delete stuff, your software goes and does something that resiliency, the integrity of the data is your responsibility as a customer. And that's where, you know, we come in. Who >>Shared responsibility has been such a hot topic all week. Yeah. >>I gotta ask him one more question. Cause this is fascinating. And we are talking about on the cube all day today after we saw the announcement and Adam's comment on the cube, Adams LE's comment on the keynote. I mean, he said, if you're gonna tighten your belt, meaning economic cost recovery, re right sizing. If you want to tighten your belt, come to the cloud. So I have to ask you guys, Puja, if you can comment, that'd be great. There's a lot of other competitors out there that aren't born on aws. What is the customer gonna do when they tighten the build? What does that mean? They're gonna go to, to the individual contracts. They're gonna work in the marketplace. I mean this, there's a new dynamic in town. It's called AWS 2022. They weren't really around much in the recession of 2008. They were just starting to grow. Now they're an economic force. People like yourselves have embedded in there. There's a lot of competition. What's gonna happen? >>I think people are gonna just go to a place like, you know, AWS marketplace. You're going to essentially look for solutions and essentially like, and, and the right solutions built in are going to be self-service like aws. It's a very self-service thing. A hundred percent. So you go and do self-service, you figure out what's working, what's not working. Also, the model has to be consumption oriented. No longer can you expect the customer to go and pay a bunch of money for shelfware, right? It's like, like how we charge how AWS charges, which is you pay for what you consume. That and all has to be front and center, >>Right? I think that's a really, I think that's a really important >>Point. It's time >>And I think it's time. So we have a new challenge on the cube. We give you 30 seconds roughly to give us your extraordinarily hot take your shining thought leadership moment and, and highlight what you think is the most important takeaway from the show. The biggest soundbite, the juiciest announcement. Paul, I'll >>Start with an Instagram. Real basically. Yeah. Okay. >>Yeah. Hi. Go. I would just say from an S3 perspective, over the course of the last several years, we've really seen workloads shift from just backup and recovery and static images on websites to data lake analytics applications. And you continue to see that here. And I can tell you that some of these scaled applications are running at enormous mind blowing scale, right? And so, so every year we come here, we talk to customers, and it's just every year it sort of blows me away. And I've been in the storage industry for a long time and it's just is, it blows me away. Just the scale at customers are running in >>And >>Blowing scale. And when it comes to backup, let me just say that it's easy to back up and recover a single object, but doing an easy thing, a billion or 10 billion times over, that's actually quite hard. >>And just to, just to bold that a little bit, just pull out my highlighter. S3 now has over 280 trillion objects. That's a lot. >>That's a lot of objects. >>Yeah. You are not, you are not kidding. When you talk about scale, I mean, this is the most scalable. >>That's not solution's not there. Yeah. That, that's right. And we wake up every, we have a culture of durability and we wake up every single day to raise the bar on the fundamentals and make sure that every single one of those objects is protected and safe. >>Okay. You, I, >>I can't imagine worrying about two, two 80 trillion different things. >>Let's go. You're Instagram real >>For me again, you know, between S3 and us, we are two players out there that are really, you know, processing the data at the end of the day, right? And so I'm very excited about, you know, what we are going to do more and more with the instant restore capability where we can integrate third party services on top of it that can do more things with the data that is not, not passively sitting, but now becomes active data that you can analyze and do things with. So that's something where we take this to the next level is something that I'm super excited about. >>There's a lot to be excited about and, and we're excited to have you. We're excited to hear what happens next. Excited to see more collaboration like this. Paul Pon, thank you so much for joining us here on the show. Thank all of you from for tuning into our continuous wall to wall super thrilling live coverage of AWS reinvent here in fabulous Las Vegas, Nevada, with John Furrier. I'm Savannah Peterson. We're the cube, the leading source for high tech coverage.

foreign welcome back to thecube's coverage of AWS re invent 2022 I'm John Furrier host of thecube we've got a great conversation with Patrick Coughlin vice president of go to market strategy and specialization at Splunk we're talking about the open cyber security schema framework also known as the ocsf a joint strategic collaboration between Splunk and AWS it's got a lot of traction momentum Patrick thanks for coming on thecube for reinvent coverage John great to be here I'm excited for this you know I love this open source movement and open source continues to add value almost sets the standards you know we were talking at the cncf Linux Foundation this past fall about how standards are coming out of Open Source not so much the the classic standards groups but you start to see the developers voting with their code groups deciding what to adopt to fact those standards and security is a real key part of that where data becomes key for resilience and this has been the top conversation at re invent and all around the industry is how to make data a key part of building into cyber resilience so I want to get your thoughts about the problem that you see that's emerging that you guys are solving with this group kind of collaboration around the ocsf yeah well look John I I think I think you you've already you've already hit the high notes there uh data is proliferating across the Enterprise uh the attack surface area is rapidly expanding the threat landscape is Ever Changing uh you know we we just had a a lot of uh uh scares around openssl before that we had vulnerabilities and Confluence in atlassian and you go back to log 4J and solarwinds before that um and challenges with the supply chain uh in this year in particular we've had a huge acceleration in in concerns and threat vectors around uh operational technology in our customer base alone we saw a huge uptick you know in double digit percentage of customers that we're concerned about the traditional vectors like like ransomware uh like business email compromise phishing but also from Insider threat and others um so you've got this this highly complex Flex environment where data continues to proliferate and flow through new applications new infrastructure new Services driving different types of outcomes in the digitally transformed Enterprise of today and and what happens there is is our customers particularly in security are left with having to stitch all of this together and they're trying to get visibility across multiple different Services infrastructure applications across a number of different point solutions that they've bought to help them protect defend detect and respond better and it's a massive Challenge and uh you know when our when our customers come to us they are often looking for ways to drive more consolidation uh across a variety of different solutions they're looking to drive better outcomes in terms of speed to detection how do I detect faster how do I find the thing that when banging in the night faster um how do I then fix it quickly and then how do I layer in some automation so hopefully I don't have to do it again now the Challenger that really ocf ocsf helps to to solve is to do that effectively to detect and to respond to the speed at which attackers are demanding today we have to have normalization of data across this entire landscape of tools infrastructure Services we have to have integration to have visibility um and these tools have to work together but the biggest barrier to that is often data is stored in different structures and in different formats across different solution providers across different tools that are that are that our customers are using um and that that lack of data normalization chokes the integration problem and so um you know several years ago a number of very smart people in this position this was a initiative started by Splunk and AWS came together and said look we as an industry have to solve this for our customers we have to start to shoulder this burden for our customers we can't we can't make our customers have to be systems integrators that's not their job our job is to help make this easier for them and so ocsf was born and over the last couple of years um we've built out this this collaboration to not just be AWS and Splunk uh but over uh 50 different organizations um uh um cloud service providers solution providers in the cyber security space have come together and said let's decide on a single unified schema for how we're going to represent event data in this industry um and uh I'm very proud to be here today to say that we've launched it and and um uh I can't wait to see where we go next yeah I mean this is really compelling I mean there's so much packed in that in that statement I mean data normalization you mentioned chokes this the the solution and the integration as you call it but really also it's like data is not just stored in silos it may not even be available right so if you don't have availability of data that's an important Point number two you mentioned supply chain there's physical supply chain is coming up big time at re invent this time as well as in open source the software supply chain so you now have the perimeter has been dead for multiple years we've been talking about that for years everybody knows that but now combined with the supply chain problem both physical and software there's so much more to go on and so you know the leaders in the industry they're not sitting on their hands they know this but they're just overloaded so so how do leaders deal with this right now before we get into the ocsf I want to just get your thoughts on what's the psychology of the of the business leader who's facing this landscape yeah well I mean unfortunately too many leaders feel like they have to face these trade-offs between you know how and where they are really focusing cyber resilience investments in the business um and and often there is a siled approach across security I.T developer operations or engineering rather than the ability to kind of Drive visibility integration and and connection of outcomes across those different functions I mean the truth is the Telemetry that that you get from an application for application performance monitoring or infrastructure monitoring is often incredibly valuable when there's a security incident and vice versa some of the security data um that you may see in a security operations center can be incredibly valuable when trying to investigate a performance degradation in an application and understanding where that may come from and so what we're seeing is this data layer is collapsing faster than the org charts are or the budget line items are in the Enterprise and so at Splunk here you know we believe security resilience is is fundamentally a data problem and one of the things that we do often is is actually help connect the dots for our customers and bring our customers together across the silos they may have internally so that they can start to see a holistic picture of what resilience means for their Enterprise and how they can drive faster detection outcomes and more automation coverage you know we recently had an event called super cloud we're going into the next gen kind of a cloud how data and security are all kind of part of this next-gen applications not just SAS and we had a panel that was titled the innovators dilemma kind of talk about getting some of the challenges and one of the panelists said it's not the innovators dilemma it's the integrators dilemma and you mentioned that earlier I think this is a key point right now integration is so critical not having the data and putting pieces together and now open source is becoming a composability market and I think having things snap together and work well it's a platform system conversation not a tool conversation so I really want to get into where the ocsf kind of intersects with this area people are working on it's not just solution Architects or cloud cloud native sres especially where devsecops is so this this intersection is critical how does ocsf integrate into that integration of the data making that available to make machine learning and automation smarter and more relevant right right well look I mean I I think that's a fantastic question because you know we talk about we use buzzwords like machine learning and AI all the time and you know I I know they're all over the place here at reinvented and and um there's so much promise and hope out there around these Technologies and these Innovations however uh machine learning AI is only as effective as the data is clean and normalized uh and and we will not realize the promise of these Technologies for outcomes in resilience unless we have better ways to normalize data upstream and better ways to integrate that data to the downstream tools where detection and response is happening and so ocsf was really about the industry coming together and saying this is no longer the job of our customers we are going to create a unified schema that represents the an event that we will all bite down on even some of us are competitors you know this is this is that that no longer matters because at the point the point is how do we take this burden off of our customers and how do we make the industry safer together um and so 15 initial members came together um along with AWS and Splunk to to start to create that uh that initial schema and standardize it and if you've ever you know if you ever worked with a bunch of technical grumpy security people it's kind of hard to drive consensus about around just about anything but uh um but I'm really happy to see how quickly this this organization Has Come Together has open sourced the schema um and and just as you said like I think this this unlocks the potential for real Innovation that's going to be required to keep up with the bad guys but right now is getting stymied and held back by the lack of normalization and the lack of integration I've always said Splunk was a it's AIDS data for breakfast lunch and dinner and turns it into insights and I think you bring up The Silo thing what's interesting is the cross company sharing I think this hits point on so I see this as a valuable opportunity for the industry what's the traction on that because you know to succeed it does take a village takes a community of security practitioners and and Architects and developers to kind of coalesce around this de facto movement has been has been uptake been good that's attraction can you share your thoughts on how this is translating across companies yeah absolutely I mean look I I think um cyber security has a long track record of of Standards development um there's been some fantastic standards recently things like um sticks and taxi for threat intelligence there's been things like the you know the minor attack framework coming out of my miter and and the adoption the traction that we've seen with attack in particular has been amazing to watch how that has kind of roared onto the scene in the last couple of years and has become table Stakes for um how you do security operations and incident response um and you know I think with ocsf we're going to see something similar here but you know we are in literally the first Innings of of this um so right now you know we're architecting this into our um into every part of our sort of back end systems here at spelunk I know um our collaborators at AWS and elsewhere are doing it too and so I think it starts with bringing this standard now the standard exists on a uh you know in schema format um and there's you know Confluence and jira tickets around it how do we then sort of build this into the code of of the the collaborators that have been leading the way on this and you know it's not going to happen overnight but I think in the coming quarters you'll start to see this schema um be the standard um across the leaders in this space companies like Splunk and AWS and others who are leading the way and often that's what helps Drive adoption of a standard is if you can get the big dogs so to speak to to embrace it and you know there's no bigger one than AWS and I think there's no no more important one than Splunk in the cyber security space and so as we adopt this we hope others will follow and like I said we've got over 50 organizations contributing to it today and so um I think we're off to a running start you know it's interesting choking Innovation or having things kind of get get slowed down has really been a problem we've seen successes recently over the past few years like kubernetes has really unlocked and accelerated the cloud native worlds of runtime with containers to kind of have the consensus of the community say hey if you we just do this it gets better I think this is really compelling with the ocsf because if people can come together around this and get unified as well as other the other official standards things can go highly accelerated so I think I think it looks really good and I think it's great initiative and I really appreciate your Insight on that on on your relationship with Amazon okay it's not just the Partnerships it's a strategic collaboration could you share that uh relationship Dynamic how to start how's it going what's strategic about it share to the audience kind of the relationship between Splunk and natives on this important ocsf initiative look I I mean I think this this year marks the the 10th year anniversary that that Splunk and AWS have been collaborating in a variety of different ways um I I think our our companies have um a fantastic and long-standing relationship and we've we've partnered on a number of really important projects together that bring value um obviously to our individual companies uh but also to our shared customers um uh when I think about some of the most important customers at Splunk that I spend a significant amount of time with um uh I I know how many of those are our AWS customers as well and I know how important AWS is to them so I think it's it's a it's a collaboration that is rooted in in a respect for each other's Technologies um and Innovation but also in a recognition that that our shared customers want to see us work better together over time and it's not it's not two companies that have kind of decided in a back room that they should work together it's actually our customers that are that are pushing us and I think we're both very customer-centric organizations and I think that has helped us actually be better collaborators and better Partners together um because we're working back backwards from our customers as security becomes a physical and software approach we've seen the trend where even Steven Schmidt at Amazon web services is the CSO he's not the CSO anymore so why he says well security is also physical stuff too so so lens is now expanded you mentioned supply chain physical digital this is an important inflection point can you summarize in your mind why open cyber security scheme information is important I know the unification but beyond that what why is this so important why should people pay attention to this you know I if if you'll let me be just a little abstract and meta for a second yeah I think what's what's really meaningful at the highest level about the ocsf initiative um and then it goes beyond I think the Tactical value it will provide to to organizations and to customers in terms of making them safer um over the coming years and and decades I think what's more important than that is it's really the one of the first times that you've seen um the industry come together and say we got a problem we need to solve that you know doesn't really have anything to do with with our own economics um our customers are are hurting and yeah some of us may be competitors um uh you know we got different cloud service providers that are participating in this along with AWS we've got different cyber security solution providers participating in this along with spelunk um but but folks have come together and say we can actually solve this problem um if if we're able to kind of put aside our competitive differences in the markets and approach this from the perspective of what's best for information security as a whole um and and I think that's what I'm most proud of uh and and what I hope we can do more of in other places in this industry because I think that kind of collaboration from real Market leaders can actually um change markets it can change the the the trend lines in terms of how we are keeping up with the bad guys and and I'd like to see a lot more of that and we're seeing a lot more new kind of things emerging in the cloud next kind of this next Generation architecture and alcohol thumbs are happening I think it's interesting you know we always talk about sustainability supply chain sustainability about making the earth a better place but you're hitting on this this meta point about businesses are under threat of going under I mean we want to keep businesses to businesses to be sustainable not just you know the the environment so if a business goes out of business which the threats here are can be catastrophic for companies I mean there is there is a community responsibility to protect businesses so they can sustain and stay stay producing this is a real key point yeah yeah I mean look I think I think one of the things that you know we We complain a lot in in cyber security about the lack of of talent the talent shortage and cyber security and every year we kind of we kind of uh whack ourselves over the head about how hard it is to bring people into this industry and it's true um but one of the things that I think we forget John is is how important mission is to so many people in what they do for a living and how they work and I think one of the things that cyber security is strongest in information security General and has been for decades is this sense of mission and people work in this industry not because it's it's it's always the the the most lucrative but because it really drives a sense of um Safety and Security in the Enterprises and the fabric of the economy that we use every day to go through our lives and when I think about the sport customers and AWS customers I think about um um the the different products and tools that power my life and and we need to secure them and and sometimes that means coming to work every day at that company and doing your job and sometimes that means working with others better faster and stronger to help drive that level of of maturity and security that this industry needs it's a human it's a human opportunity human problem and and challenge that's a whole other segment the role of the talent and the human machines and with scale Patrick thanks so much for sharing the information and the Insight on the open cyber security schema frame and what it means and why it's important thanks for sharing on thecube really appreciate it thanks for having me John okay this is AWS re invent 2022 coverage here on thecube I'm John Furrier the host thanks for watching foreign [Music]

(upbeat music) >> Hello everyone, welcome to this CUBE Showcase, accelerating business transformation with VMware Cloud on AWS. It's a solution innovation conversation with two great guests, Fred Wurden, VP of Commercial Services at AWS and Narayan Bharadwaj, who's the VP and General Manager of Cloud Solutions at VMware. Gentlemen, thanks for joining me on the showcase. >> Great to be here. >> Great. Thanks for having us on. It's a great topic. >> We've been covering this VMware cloud on AWS since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. What's this mean? And the press were not really on board with the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for AWS and it continues two years later and I want to just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to re:Invent, which is only a couple weeks away Feels like tomorrow. But as we prepare, a lot going on. Where are we with the evolution of the solution? >> I mean, first thing I want to say is October 2016 was a seminal moment in the history of IT. When Pat Gelsinger and Andy Jassy came together to announce this. And I think John, you were there at the time I was there. It was a great, great moment. We launched the solution in 2017 year after that at VMworld, back when we called it VMworld. I think we have gone from strength to strength. One of the things that has really mattered to us is we've learned from AWS also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we built a service offering now five years old. Pretty remarkable journey. In the first years we tried to get across all the regions, that was a big focus because there was so much demand for it. In the second year, we started going really on enterprise great features. We invented this pretty awesome feature called Stretched Clusters, where you could stretch a vSphere cluster using vSAN and NSX-T across to AZs in the same region. Pretty phenomenal four nines of availability that applications started to get with that particular feature. And we kept moving forward, all kinds of integration with AWS Direct Connect, Transit Gateways with our own advanced networking capabilities. Along the way, Disaster Recovery, we punched out two new services just focused on that. And then more recently we launched our Outposts partnership. We were up on stage at re:Invent, again, with Pat and Andy announcing AWS Outposts and the VMware flavor of that, VMware Cloud and AWS Outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >> That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And this has been the theme for AWS, man, since I can remember from day one, Fred. You guys do the heavy lifting as you always say for the customers. Here, VMware comes on board. Takes advantage of the AWS and just doesn't miss a beat. Continues to move their workloads that everyone's using, vSphere, and these are big workloads on AWS. What's the AWS perspective on this? How do you see it? >> Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's evolving quickly and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the customers. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and responding to what customers want. So pretty excited about just seeing the transformation and the speed that which customers can move to while at VMC. >> That's a great value proposition. We've been talking about that in context to anyone building on top of the cloud. They can have their own supercloud, as we call it, if you take advantage of all the CapEx and investment Amazon's made and AWS has made and continues to make in performance IaaS and PaaS, all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options in the market? What makes it different? What's the combination? You mentioned jointly engineered. What are some of the key differentiators of the service compared to others? >> Yeah. I think one of the key things Fred talked about is this jointly engineered notion. Right from day one we were the early adopters of the AWS Nitro platform. The reinvention of EC2 back five years ago. And so we have been having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software-defined data center, compute storage networking on EC2, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally on AWS EC2 global regions. Now the other thing that's a real differentiator for us, what customers tell us about is this whole notion of a managed service. And this was somewhat new to VMware. But we took away the pain of this undifferentiated heavy lifting where customers had to provision rack stack hardware, configure the software on top, and then upgrade the software and the security patches on top. So we took away all of that pain as customers transitioned to VMware cloud in AWS. In fact, my favorite story from last year when we were all going through the Log4j debacle. Industry was just going through that. Favorite proof point from customers was before they could even race this issue to us, we sent them a notification saying, we already patched all of your systems, no action from you. The customers were super thrilled. I mean, these are large banks. Many other customers around the world were super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >> Narayan, that's a great point. The whole managed service piece brings up the security. You kind of teasing at it, but there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. Fred, we were commenting before we came on camera more bits than ever before and at the physics layer too, as well as the software. So you never know when there's going to be a zero-day vulnerability out there. It happens. We saw one with Fortinet this week. This came out of the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me, we see the value when we talk to customers on theCUBE about this. It was a real easy understanding of what the cloud means to them with VMware now with the AWS. But the question that comes up that we want to get more clarity on is how do you guys handle support together? >> Well, what's interesting about this is that it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like SAP, we'll go end-to-end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where we're improving reliability in as a first order of principle between both companies. So from availability and reliability standpoint, it's top of mind and no matter where the particular item might land, we're going to go help the customer resolve that. It works really well. >> On the VMware side, what's been the feedback there? What are some of the updates? >> Yeah, I think, look, I mean, VMware owns and operates the service, but we work phenomenal backend relationship with AWS. Customers call VMware for the service or any issues. And then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The key management that we jointly do. All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution, do complex things like cloud migration, which is much, much easier with the VMware Cloud in AWS. We're presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >> You had mentioned, I've got list here of some of the innovations. You mentioned the stretch clustering, getting the geos working, advanced network, Disaster Recovery, FedRAMP, public sector certifications, Outposts. All good, you guys are checking the boxes every year. You got a good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in? What's on the list this year? What items will be next year? How do you see the new things, the list of accomplishments? People want to know what's next. They don't want to see stagnant growth here. They want to see more action as cloud continues to scale and modern applications cloud native. You're seeing more and more containers, more and more CI/CD pipelining with modern apps, put more pressure on the system. What's new? What's the new innovations? >> Absolutely. And I think as a five year old service offering, innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explore. First of all, our new platform i4i.metal. It's isolate based. It's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and AWS at this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally and separate that from compute. So two different storage offerings there. One is with AWS FSx with NetApp ONTAP, which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well. And the second storage offering called VMware Cloud Flex Storage. VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware Cloud Flex Compute where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware Cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the vCPU memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that we are launching in the market this year. And then last but not least, top of ransomware. Of course it's a hot topic in the industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware Cloud DR solution. A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Northstar. Our ability to have layer four through layer seven, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers is sort at the heart of our (faintly speaking). >> The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better faster, networking more options there. The Flex Compute is interesting. If you don't mind me getting a quick clarification, could you explain the resource-defined versus hardware-defined? Because this is what we had saw at Explore coming out, that notion of resource-defined versus hardware-defined. What does that mean? >> Yeah, I mean I think we have been super successful in this hardware-defined notion. We we're scaling by the hardware unit that we present as software-defined data centers. And so that's been super successful. But customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally. Lower the cost even more. And so this is the part where resource-defined starts to be very, very interesting as a way to think about, here's my bag of resources exactly based on what the customers request before fiber machines, five containers. It's size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. That's a whole different service offering that adds value and customers are comfortable. They can go from one to the other. They can go back to that host based model if they so choose to. And there's a jump off point across these two different economic models. >> It's cloud flexibility right there. I like the name. Fred, let's get into some of the examples of customers, if you don't mind, let's get into some of the, we have some time. I want to unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on theCUBE is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like feels great. It's just like we're running VMware on AWS and then they start consuming higher level services. That adoption next level happens and because it's in the cloud. So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple use cases? >> Sure. Well, there's a couple. One, it's pretty interesting that like you said, as there's more and more bits, you need better and better hardware and networking. And we're super excited about the i4 and the capabilities there in terms of doubling and or tripling what we're doing around lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanzu or with any other container and or services within AWS. So there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is allowed to then consume and use things, for example, with Textract or any other really cool service that has monthly and quarterly innovations. So there's things that you just could not do before that are coming out and saving customers money and building innovative applications on top of their current app base in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too many here. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >> Narayan, what's your perspective from the VMware side? 'Cause you guys have now a lot of headroom to offer customers with Amazon's higher level services and or whatever's homegrown where it's being rolled out 'cause you now have a lot of hybrid too. So what's your take on what's happening in with customers? >> I mean, it's been phenomenal. The customer adoption of this and banks and many other highly sensitive verticals are running production-grade applications, tier one applications on the service over the last five years. And so I have a couple of really good examples. S&P Global is one of my favorite examples. Large bank, they merge with IHS Markit, big conglomeration now. Both customers were using VMware Cloud and AWS in different ways. And with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated 1000 workloads to VMware Cloud and AWS in just six weeks. Pretty phenomenal if you think about everything that goes into a cloud migration process, people process technology. And the beauty of the technology going from VMware point A to VMware point B. The lowest cost, lowest risk approach to adopting VMware Cloud and AWS. So that's one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe, but constantly entering new markets with a limited number of regions and progressing our roadmap. >> It's great to see. I mean, the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. Congratulations. >> One of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're seeing those benefits. If you're running really inefficiently in your own data center, that is not a great use of power. So the actual calculators and the benefits to these workloads are pretty phenomenal just in being more green, which I like. We just all need to do our part there and this is a big part of it here. >> It's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issue is another one. You see that constraints. I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security. I mean, I remember interviewing Steven Schmidt with that AWS and many years ago, this is like 2013 and at that time people were saying, the cloud's not secure. And he's like, listen, it's more secure in the cloud on-premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot, the stay current on the isolation there is hard. So I think the security and supply chain, Fred, is another one. Do you agree? >> I absolutely agree. It's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them more efficiently. And then like you said on the security point, security is job one. It is the only P1. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >> And Narayan, your point earlier about the managed service patching and being on top of things is really going to get better. All right, final question. I really want to thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I want to end with a curve ball and put you eyes on the spot. We're talking about a new modern shift. We're seeing another inflection point. We've been documenting it. It's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and innovation in the infrastructure side. So the question is for you guys each to answer is, what's the same and what's different in today's market? So it's like we want more of the same here, but also things have changed radically and better here. What's changed for the better and what's still the same thing hanging around that people are focused on? Can you share your perspective? >> I'll tackle it. Businesses are complex and they're often unique, that's the same. What's changed is how fast you can innovate. The ability to combine managed services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about, that's elastic. You could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a rate that most people can't even comprehend and understand the set of services that are available to them. It's really fascinating to see what a one pizza team of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only going to continue to accelerate that. That's my take, Narayan. >> You got a lot of platform to compete on. With Amazon, you got a lot to build on. Narayan, your side. What's your answer to that question? >> I think we are seeing a lot of innovation with new applications that customers are constantly (faintly speaking). I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly build on the agility that developers desire and build all the security and the pipelines to energize that production quickly and efficiently. I think we are seeing, we are at the very start of that sort of journey. Of course, we have invested in Kubernetes, the means to an end, but we're so much more beyond that's happening in industry and I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >> Well, gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on solving these complexities with distractions, whether it's higher level services with large scale infrastructure. At your fingertips, infrastructure as code, infrastructure to be provisioned, serverless, all the good stuff happen and Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator again, being a cloud operator and developer. So the developer ops is kind of, DevOps is changing too. So all for the better. Thank you for spending the time and we're seeing again that traction with the VMware customer base and AWS getting along great together. So thanks for sharing your perspectives. >> We appreciate it. Thank you so much. >> Thank you John. >> This is theCUBE and AWS VMware showcase accelerating business transformation, VMware Cloud on AWS. Jointly engineered solution bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Furrier, your host. Thanks for watching. (gentle music)

>>Hi everyone. Welcome to the Cube special presentation here in Palo Alto, California. I'm John Foer, host of the Cube. We've got two great guests, one for calling in from Germany, our videoing in from Germany, one from Maryland. We've got VMware and aws. This is the customer successes with VMware cloud on AWS showcase, accelerating business transformation here in the showcase with Samir Candu Worldwide. VMware strategic alliance solution, architect leader with AWS Samir. Great to have you and Daniel Re Myer, principal architect global AWS synergy at VMware. Guys, you guys are, are working together. You're the key players in the re relationship as it rolls out and continues to grow. So welcome to the cube. >>Thank you. Greatly appreciate it. >>Great to have you guys both on, As you know, we've been covering this since 2016 when Pat Geling, then CEO and then then CEO AWS at Andy Chasy did this. It kind of got people by surprise, but it really kind of cleaned out the positioning in the enterprise for the success. OFM workloads in the cloud. VMware's had great success with it since, and you guys have the great partnerships. So this has been like a really strategic, successful partnership. Where are we right now? You know, years later we got this whole inflection point coming. You're starting to see, you know, this idea of higher level services, more performance are coming in at the infrastructure side. More automation, more serverless, I mean, and a, I mean it's just getting better and better every year in the cloud. Kinda a whole nother level. Where are we, Samir? Let's start with you on, on the relationship. >>Yeah, totally. So I mean, there's several things to keep in mind, right? So in 2016, right, that's when the partnership between AWS and VMware was announced, and then less than a year later, that's when we officially launched VMware cloud on aws. Years later, we've been driving innovation, working with our customers, jointly engineering this between AWS and VMware day in, day out. As far as advancing VMware cloud on aws. You know, even if you look at the innovation that takes place with a solution, things have modernized, things have changed, there's been advancements, you know, whether it's security focus, whether it's platform focus, whether it's networking focus, there's been modifications along the way, even storage, right? More recently, one of the things to keep in mind is we're looking to deliver value to our customers together. These are our joint customers. So there's hundreds of VMware and AWS engineers working together on this solution. >>And then factor in even our sales teams, right? We have VMware and AWS sales teams interacting with each other on a constant daily basis. We're working together with our customers at the end of the day too. Then we're looking to even offer and develop jointly engineered solutions specific to VMware cloud on aws, and even with VMware's, other platforms as well. Then the other thing comes down to is where we have dedicated teams around this at both AWS and VMware. So even from solutions architects, even to our sales specialists, even to our account teams, even to specific engineering teams within the organizations, they all come together to drive this innovation forward with VMware cloud on AWS and the jointly engineered solution partnership as well. And then I think one of the key things to keep in mind comes down to we have nearly 600 channel partners that have achieved VMware cloud on AWS service competency. So think about it from the standpoint there's 300 certified or validated technology solutions, they're now available to our customers. So that's even innovation right off the top as well. >>Great stuff. Daniel, I wanna get to you in a second. Upon this principal architect position you have in your title, you're the global a synergy person. Synergy means bringing things together, making it work. Take us through the architecture, because we heard a lot of folks at VMware explore this year, formerly world, talking about how the, the workloads on it has been completely transforming into cloud and hybrid, right? This is where the action is. Where are you? Is your customers taking advantage of that new shift? You got AI ops, you got it. Ops changing a lot, you got a lot more automation edges right around the corner. This is like a complete transformation from where we were just five years ago. What's your thoughts on the >>Relationship? So at at, at first, I would like to emphasize that our collaboration is not just that we have dedicated teams to help our customers get the most and the best benefits out of VMware cloud on aws. We are also enabling US mutually. So AWS learns from us about the VMware technology, where VMware people learn about the AWS technology. We are also enabling our channel partners and we are working together on customer projects. So we have regular assembled globally and also virtually on Slack and the usual suspect tools working together and listening to customers, that's, that's very important. Asking our customers where are their needs? And we are driving the solution into the direction that our customers get the, the best benefits out of VMware cloud on aws. And over the time we, we really have involved the solution. As Samia mentioned, we just added additional storage solutions to VMware cloud on aws. We now have three different instance types that cover a broad range of, of workload. So for example, we just added the I four I host, which is ideally for workloads that require a lot of CPU power, such as you mentioned it, AI workloads. >>Yeah. So I wanna guess just specifically on the customer journey and their transformation. You know, we've been reporting on Silicon angle in the queue in the past couple weeks in a big way that the OPS teams are now the new devs, right? I mean that sounds OP a little bit weird, but operation IT operations is now part of the, a lot more data ops, security writing code composing, you know, with open source, a lot of great things are changing. Can you share specifically what customers are looking for when you say, as you guys come in and assess their needs, what are they doing? What are some of the things that they're doing with VMware on AWS specifically that's a little bit different? Can you share some of and highlights there? >>That, that's a great point because originally VMware and AWS came from very different directions when it comes to speaking people at customers. So for example, aws very developer focused, whereas VMware has a very great footprint in the IT ops area. And usually these are very different, very different teams, groups, different cultures, but it's, it's getting together. However, we always try to address the customers, right? There are customers that want to build up a new application from the scratch and build resiliency, availability, recoverability, scalability into the application. But there are still a lot of customers that say, well we don't have all of the skills to redevelop everything to refactor an application to make it highly available. So we want to have all of that as a service, recoverability as a service, scalability as a service. We want to have this from the infrastructure. That was one of the unique selling points for VMware on premise and now we are bringing this into the cloud. >>Samir, talk about your perspective. I wanna get your thoughts, and not to take a tangent, but we had covered the AWS remar of, actually it was Amazon res machine learning automation, robotics and space. It was really kinda the confluence of industrial IOT software physical. And so when you look at like the IT operations piece becoming more software, you're seeing things about automation, but the skill gap is huge. So you're seeing low code, no code automation, you know, Hey Alexa, deploy a Kubernetes cluster. Yeah, I mean, I mean that's coming, right? So we're seeing this kind of operating automation meets higher level services meets workloads. Can you unpack that and share your opinion on, on what you see there from an Amazon perspective and how it relates to this? >>Yeah, totally. Right. And you know, look at it from the point of view where we said this is a jointly engineered solution, but it's not migrating to one option or the other option, right? It's more or less together. So even with VMware cloud on aws, yes it is utilizing AWS infrastructure, but your environment is connected to that AWS VPC in your AWS account. So if you wanna leverage any of the native AWS services, so any of the 200 plus AWS services, you have that option to do so. So that's gonna give you that power to do certain things, such as, for example, like how you mentioned with iot, even with utilizing Alexa or if there's any other service that you wanna utilize, that's the joining point between both of the offerings. Right off the top though, with digital transformation, right? You, you have to think about where it's not just about the technology, right? There's also where you want to drive growth in the underlying technology. Even in your business leaders are looking to reinvent their business. They're looking to take different steps as far as pursuing a new strategy. Maybe it's a process, maybe it's with the people, the culture, like how you said before, where people are coming in from a different background, right? They may not be used to the cloud, they may not be used to AWS services, but now you have that capability to mesh them together. Okay. Then also, Oh, >>Go ahead, finish >>Your thought. No, no, I was gonna say, what it also comes down to is you need to think about the operating model too, where it is a shift, right? Especially for that VS four admin that's used to their on-premises at environment. Now with VMware cloud on aws, you have that ability to leverage a cloud, but the investment that you made and certain things as far as automation, even with monitoring, even with logging, yeah. You still have that methodology where you can utilize that in VMware cloud on AWS two. >>Danielle, I wanna get your thoughts on this because at at explore and, and, and after the event, now as we prep for Cuban and reinvent coming up the big AWS show, I had a couple conversations with a lot of the VMware customers and operators and it's like hundreds of thousands of, of, of, of users and millions of people talking about and and peaked on VM we're interested in v VMware. The common thread was one's one, one person said, I'm trying to figure out where I'm gonna put my career in the next 10 to 15 years. And they've been very comfortable with VMware in the past, very loyal, and they're kind of talking about, I'm gonna be the next cloud, but there's no like role yet architects, is it Solution architect sre. So you're starting to see the psychology of the operators who now are gonna try to make these career decisions, like how, what am I gonna work on? And it's, and that was kind of fuzzy, but I wanna get your thoughts. How would you talk to that persona about the future of VMware on, say, cloud for instance? What should they be thinking about? What's the opportunity and what's gonna happen? >>So digital transformation definitely is a huge change for many organizations and leaders are perfectly aware of what that means. And that also means in, in to to some extent, concerns with your existing employees. Concerns about do I have to relearn everything? Do I have to acquire new skills? And, and trainings is everything worthless I learned over the last 15 years of my career? And the, the answer is to make digital transformation a success. We need not just to talk about technology, but also about process people and culture. And this is where VMware really can help because if you are applying VMware cloud on a, on AWS to your infrastructure, to your existing on-premise infrastructure, you do not need to change many things. You can use the same tools and skills, you can manage your virtual machines as you did in your on-premise environment. You can use the same managing and monitoring tools. If you have written, and many customers did this, if you have developed hundreds of, of scripts that automate tasks and if you know how to troubleshoot things, then you can use all of that in VMware cloud on aws. And that gives not just leaders, but but also the architects at customers, the operators at customers, the confidence in, in such a complex project, >>The consistency, very key point, gives them the confidence to go and, and then now that once they're confident they can start committing themselves to new things. Samir, you're reacting to this because you know, on your side you've got higher level services, you got more performance at the hardware level. I mean, lot improvement. So, okay, nothing's changed. I can still run my job now I got goodness on the other side. What's the upside? What's in it for the, for the, for the customer there? >>Yeah, so I think what it comes down to is they've already been so used to or entrenched with that VMware admin mentality, right? But now extending that to the cloud, that's where now you have that bridge between VMware cloud on AWS to bridge that VMware knowledge with that AWS knowledge. So I will look at it from the point of view where now one has that capability and that ability to just learn about the cloud, but if they're comfortable with certain aspects, no one's saying you have to change anything. You can still leverage that, right? But now if you wanna utilize any other AWS service in conjunction with that VM that resides maybe on premises or even in VMware cloud on aws, you have that option to do so. So think about it where you have that ability to be someone who's curious and wants to learn. And then if you wanna expand on the skills, you certainly have that capability to do so. >>Great stuff. I love, love that. Now that we're peeking behind the curtain here, I'd love to have you guys explain, cuz people wanna know what's goes on in behind the scenes. How does innovation get happen? How does it happen with the relationship? Can you take us through a day in the life of kind of what goes on to make innovation happen with the joint partnership? You guys just have a zoom meeting, Do you guys fly out, you write go do you ship thing? I mean I'm making it up, but you get the idea, what's the, what's, how does it work? What's going on behind the scenes? >>So we hope to get more frequently together in person, but of course we had some difficulties over the last two to three years. So we are very used to zoom conferences and and Slack meetings. You always have to have the time difference in mind if we are working globally together. But what we try, for example, we have reg regular assembled now also in person geo based. So for emia, for the Americas, for aj. And we are bringing up interesting customer situations, architectural bits and pieces together. We are discussing it always to share and to contribute to our community. >>What's interesting, you know, as, as events are coming back to here, before you get, you weigh in, I'll comment, as the cube's been going back out to events, we are hearing comments like what, what pandemic we were more productive in the pandemic. I mean, developers know how to work remotely and they've been on all the tools there, but then they get in person, they're happy to see people, but there's no one's, no one's really missed the beat. I mean it seems to be very productive, you know, workflow, not a lot of disruption. More if anything, productivity gains. >>Agreed, right? I think one of the key things to keep in mind is, you know, even if you look at AWS's and even Amazon's leadership principles, right? Customer obsession, that's key. VMware is carrying that forward as well. Where we are working with our customers, like how Daniel said met earlier, right? We might have meetings at different time zones, maybe it's in person, maybe it's virtual, but together we're working to listen to our customers. You know, we're taking and capturing that feedback to drive innovation and VMware cloud on AWS as well. But one of the key things to keep in mind is yes, there have been, there has been the pandemic, we might have been disconnected to a certain extent, but together through technology we've been able to still communicate work with our customers. Even with VMware in between, with AWS and whatnot. We had that flexibility to innovate and continue that innovation. So even if you look at it from the point of view, right? VMware cloud on AWS outposts, that was something that customers have been asking for. We've been been able to leverage the feedback and then continue to drive innovation even around VMware cloud on AWS outposts. So even with the on premises environment, if you're looking to handle maybe data sovereignty or compliance needs, maybe you have low latency requirements, that's where certain advancements come into play, right? So the key thing is always to maintain that communication track. >>And our last segment we did here on the, on this showcase, we listed the accomplishments and they were pretty significant. I mean go, you got the global rollouts of the relationship. It's just really been interesting and, and people can reference that. We won't get into it here, but I will ask you guys to comment on, as you guys continue to evolve the relationship, what's in it for the customer? What can they expect next? Cuz again, I think right now we're in at a, an inflection point more than ever. What can people expect from the relationship and what's coming up with reinvent? Can you share a little bit of kind of what's coming down the pike? >>So one of the most important things we have announced this year, and we will continue to evolve into that direction, is independent scale of storage. That absolutely was one of the most important items customer asked us for over the last years. Whenever, whenever you are requiring additional storage to host your virtual machines, you usually in VMware cloud on aws, you have to add additional notes. Now we have three different note types with different ratios of compute, storage and memory. But if you only require additional storage, you always have to get also additional compute and memory and you have to pay. And now with two solutions which offer choice for the customers, like FS six one, NetApp onap, and VMware cloud Flex Storage, you now have two cost effective opportunities to add storage to your virtual machines. And that offers opportunities for other instance types maybe that don't have local storage. We are also very, very keen looking forward to announcements, exciting announcements at the upcoming events. >>Samir, what's your, what's your reaction take on the, on what's coming down on your side? >>Yeah, I think one of the key things to keep in mind is, you know, we're looking to help our customers be agile and even scale with their needs, right? So with VMware cloud on aws, that's one of the key things that comes to mind, right? There are gonna be announcements, innovations and whatnot with outcoming events. But together we're able to leverage that to advance VMware cloud on AWS to Daniel's point storage, for example, even with host offerings. And then even with decoupling storage from compute and memory, right now you have the flexibility where you can do all of that. So to look at it from the standpoint where now with 21 regions where we have VMware cloud on AWS available as well, where customers can utilize that as needed when needed, right? So it comes down to, you know, transformation will be there. Yes, there's gonna be maybe where workloads have to be adapted where they're utilizing certain AWS services, but you have that flexibility and option to do so. And I think with the continuing events that's gonna give us the options to even advance our own services together. >>Well you guys are in the middle of it, you're in the trenches, you're making things happen, you've got a team of people working together. My final question is really more of a kind of a current situation, kind of future evolutionary thing that you haven't seen this before. I wanna get both of your reaction to it. And we've been bringing this up in, in the open conversations on the cube is in the old days it was going back this generation, you had ecosystems, you had VMware had an ecosystem they did best, had an ecosystem. You know, we have a product, you have a product, biz dev deals happen, people sign relationships and they do business together and they, they sell to each other's products or do some stuff. Now it's more about architecture cuz we're now in a distributed large scale environment where the role of ecosystems are intertwining. >>And this, you guys are in the middle of two big ecosystems. You mentioned channel partners, you both have a lot of partners on both sides. They come together. So you have this now almost a three dimensional or multidimensional ecosystem, you know, interplay. What's your thoughts on this? And, and, and because it's about the architecture, integration is a value, not so much. Innovation is only, you gotta do innovation, but when you do innovation, you gotta integrate it, you gotta connect it. So what is, how do you guys see this as a, as an architectural thing, start to see more technical business deals? >>So we are, we are removing dependencies from individual ecosystems and from individual vendors. So a customer no longer has to decide for one vendor and then it is a very expensive and high effort project to move away from that vendor, which ties customers even, even closer to specific vendors. We are removing these obstacles. So with VMware cloud on aws moving to the cloud, firstly it's, it's not a dead end. If you decide at one point in time because of latency requirements or maybe it's some compliance requirements, you need to move back into on-premise. You can do this if you decide you want to stay with some of your services on premise and just run a couple of dedicated services in the cloud, you can do this and you can mana manage it through a single pane of glass. That's quite important. So cloud is no longer a dead and it's no longer a binary decision, whether it's on premise or the cloud. It it is the cloud. And the second thing is you can choose the best of both works, right? If you are migrating virtual machines that have been running in your on-premise environment to VMware cloud on aws, by the way, in a very, very fast cost effective and safe way, then you can enrich later on enrich these virtual machines with services that are offered by aws. More than 200 different services ranging from object based storage, load balancing and so on. So it's an endless, endless possibility. >>We, we call that super cloud in, in a, in a way that we be generically defining it where everyone's innovating, but yet there's some common services. But the differentiation comes from innovation where the lock in is the value, not some spec, right? Samir, this is gonna where cloud is right now, you guys are, are not commodity. Amazon's completely differentiating, but there's some commodity things. Having got storage, you got compute, but then you got now advances in all areas. But partners innovate with you on their terms. Absolutely. And everybody wins. >>Yeah. And a hundred percent agree with you. I think one of the key things, you know, as Daniel mentioned before, is where it it, it's a cross education where there might be someone who's more proficient on the cloud side with aws, maybe more proficient with the viewers technology, but then for partners, right? They bridge that gap as well where they come in and they might have a specific niche or expertise where their background, where they can help our customers go through that transformation. So then that comes down to, hey, maybe I don't know how to connect to the cloud. Maybe I don't know what the networking constructs are. Maybe I can leverage that partner. That's one aspect to go about it. Now maybe you migrated that workload to VMware cloud on aws. Maybe you wanna leverage any of the native AWS services or even just off the top 200 plus AWS services, right? But it comes down to that skill, right? So again, solutions architecture at the back of, back of the day, end of the day, what it comes down to is being able to utilize the best of both worlds. That's what we're giving our customers at the end of the >>Day. I mean, I just think it's, it's a, it's a refactoring and innovation opportunity at all levels. I think now more than ever, you can take advantage of each other's ecosystems and partners and technologies and change how things get done with keeping the consistency. I mean, Daniel, you nailed that, right? I mean, you don't have to do anything. You still run the fear, the way you working on it and now do new things. This is kind of a cultural shift. >>Yeah, absolutely. And if, if you look, not every, not every customer, not every organization has the resources to refactor and re-platform everything. And we gave, we give them a very simple and easy way to move workloads to the cloud. Simply run them and at the same time they can free up resources to develop new innovations and, and grow their business. >>Awesome. Samir, thank you for coming on. Danielle, thank you for coming to Germany, Octoberfest, I know it's evening over there, your weekend's here. And thank you for spending the time. Samir final give you the final word, AWS reinvents coming up. Preparing. We're gonna have an exclusive with Adam, but Fry, we do a curtain raise, a dual preview. What's coming down on your side with the relationship and what can we expect to hear about what you got going on at reinvent this year? The big show? >>Yeah, so I think, you know, Daniel hit upon some of the key points, but what I will say is we do have, for example, specific sessions, both that VMware's driving and then also that AWS is driving. We do have even where we have what I call a chalk talks. So I would say, and then even with workshops, right? So even with the customers, the attendees who are there, whatnot, if they're looking for to sit and listen to a session, yes that's there. But if they wanna be hands on, that is also there too. So personally for me as an IT background, you know, been in CIS admin world and whatnot, being hands on, that's one of the key things that I personally am looking forward. But I think that's one of the key ways just to learn and get familiar with the technology. Yeah, >>Reinvents an amazing show for the in person. You guys nail it every year. We'll have three sets this year at the cube. It's becoming popular. We more and more content. You guys got live streams going on, a lot of content, a lot of media, so thanks, thanks for sharing that. Samir Daniel, thank you for coming on on this part of the showcase episode of really the customer successes with VMware Cloud Ons, really accelerating business transformation withs and VMware. I'm John Fur with the cube, thanks for watching. Hello everyone. Welcome to this cube showcase, accelerating business transformation with VMware cloud on it's a solution innovation conversation with two great guests, Fred and VP of commercial services at aws and NA Ryan Bard, who's the VP and general manager of cloud solutions at VMware. Gentlemen, thanks for joining me on this showcase. >>Great to be here. >>Hey, thanks for having us on. It's a great topic. You know, we, we've been covering this VMware cloud on abus since, since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. It's what's this mean? And depress work were, we're kind of not really on board with kind of the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for a D and it continues two years later and I want just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to reinvent, which is only a couple weeks away, feels like tomorrow. But you know, as we prepare a lot going on, where are we with the evolution of the solution? >>I mean, first thing I wanna say is, you know, PBO 2016 was a someon moment and the history of it, right? When Pat Gelsinger and Andy Jessey came together to announce this and I think John, you were there at the time I was there, it was a great, great moment. We launched the solution in 2017, the year after that at VM Word back when we called it Word, I think we have gone from strength to strength. One of the things that has really mattered to us is we have learned froms also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we build a service offering now five years old, pretty remarkable journey. You know, in the first years we tried to get across all the regions, you know, that was a big focus because there was so much demand for it. >>In the second year we started going really on enterprise grade features. We invented this pretty awesome feature called Stretch clusters, where you could stretch a vSphere cluster using VSA and NSX across two AZs in the same region. Pretty phenomenal four nine s availability that applications start started to get with that particular feature. And we kept moving forward all kinds of integration with AWS direct connect transit gateways with our own advanced networking capabilities. You know, along the way, disaster recovery, we punched out two, two new services just focused on that. And then more recently we launched our outposts partnership. We were up on stage at Reinvent, again with Pat Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >>That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And, and this has kind of been the theme for AWS since I can remember from day one. Fred, you guys do the heavy lifting as as, as you always say for the customers here, VMware comes on board, takes advantage of the AWS and kind of just doesn't miss a beat, continues to move their workloads that everyone's using, you know, vSphere and these are, these are big workloads on aws. What's the AWS perspective on this? How do you see it? >>Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the, the skill set that they're familiar with and the advanced capabilities that they've been using on Preem and then overlay it on top of the AWS infrastructure that's, that's evolving quickly and, and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the, for the customer. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and, and responding to what customers want. So pretty, pretty excited about just seeing the transformation and the speed that which customers can move to bmc. Yeah, >>That's what great value publish. We've been talking about that in context too. Anyone building on top of the cloud, they can have their own supercloud as we call it. If you take advantage of all the CapEx and and investment Amazon's made and AWS has made and, and and continues to make in performance IAS and pass all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options on the market? What makes it different? What's the combination? You mentioned jointly engineered, what are some of the key differentiators of the service compared to others? >>Yeah, I think one of the key things Fred talked about is this jointly engineered notion right from day one. We were the earlier doctors of AWS Nitro platform, right? The reinvention of E two back five years ago. And so we have been, you know, having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software defined data center or compute storage networking on EC two, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally, right on aws EC two global regions. Now the other thing that's a real differentiator for us that customers tell us about is this whole notion of a managed service, right? And this was somewhat new to VMware, but we took away the pain of this undifferentiated heavy lifting where customers had to provision rack, stack hardware, configure the software on top, and then upgrade the software and the security batches on top. >>So we took, took away all of that pain as customers transitioned to VMware cloud and aws. In fact, my favorite story from last year when we were all going through the lock for j debacle industry was just going through that, right? Favorite proof point from customers was before they put even race this issue to us, we sent them a notification saying we already patched all of your systems, no action from you. The customers were super thrilled. I mean these are large banks, many other customers around the world, super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >>Nora, that's a great, so that's a great point. You know, the whole managed service piece brings up the security, you kind of teasing at it, but you know, there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. You know, Fred, we were commenting before we came on camera, there's more bits than ever before and, and at at the physics layer too, as well as the software. So you never know when there's gonna be a zero day vulnerability out there. Just, it happens. We saw one with fornet this week, this came outta the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me we see the value when we, when we talk to customers on the cube about this, you know, it was a real, real easy understanding of how, what the cloud means to them with VMware now with the aws. But the question that comes up that we wanna get more clarity on is how do you guys handle support together? >>Well, what's interesting about this is that it's, it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like sap, we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where, where we're improving reliability in, in as a first order of, of principle between both companies. So from an availability and reliability standpoint, it's, it's top of mind and no matter where the particular item might land, we're gonna go help the customer resolve. That works really well >>On the VMware side. What's been the feedback there? What's the, what are some of the updates? >>Yeah, I think, look, I mean, VMware owns and operates the service, but we have a phenomenal backend relationship with aws. Customers call VMware for the service for any issues and, and then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The BASKE management that we jointly do, right? All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution. Do complex things like cloud migration, which is much, much easier with VMware cloud aws, you know, we are presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >>You know, you had mentioned, I've got a list here, some of the innovations the, you mentioned the stretch clustering, you know, getting the GOs working, Advanced network, disaster recovery, you know, fed, Fed ramp, public sector certifications, outposts, all good. You guys are checking the boxes every year. You got a good, good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in what's on the lists this year? What items will be next year? How do you see the, the new things, the list of accomplishments, people wanna know what's next. They don't wanna see stagnant growth here, they wanna see more action, you know, as as cloud kind of continues to scale and modern applications cloud native, you're seeing more and more containers, more and more, you know, more CF C I C D pipe pipelining with with modern apps, put more pressure on the system. What's new, what's the new innovations? >>Absolutely. And I think as a five yearold service offering innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explorer. First of all, our new platform i four I dot metal, it's isolate based, it's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and aws. At this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally, right? And you know, separate that from compute. So two different storage offerings there. One is with AWS Fsx, with NetApp on tap, which brings in our NetApp partnership as well into the equation and really get that NetApp based, really excited about this offering as well. >>And the second storage offering for VMware cloud Flex Storage, VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware cloud Flex Compute, where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the V C P memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that that we are launching in the market this year. And then last but not least, talk about ransomware. Of course it's a hot topic in industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware cloud DR solution. >>A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Knot star for ability to have layer flow through layer seven, you know, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers and sort of at the heart of our office, >>The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better, faster networking, more, more options there. The flex computes. Interesting. If you don't mind me getting a quick clarification, could you explain the Drew screen resource defined versus hardware defined? Because this is kind of what we had saw at Explore coming out, that notion of resource defined versus hardware defined. What's the, what does that mean? >>Yeah, I mean I think we have been super successful in this hardware defined notion. We we're scaling by the hardware unit that we present as software defined data centers, right? And so that's been super successful. But we, you know, customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally, right? Lower their costs even more. And so this is the part where resource defined starts to be very, very interesting as a way to think about, you know, here's my bag of resources exactly based on what the customers request for fiber machines, five containers, its size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. It's a whole different service offering that adds value and customers are comfortable. They can go from one to the other, they can go back to that post based model if they so choose to. And there's a jump off point across these two different economic models. >>It's kind of cloud of flexibility right there. I like the name Fred. Let's get into some of the examples of customers, if you don't mind. Let's get into some of the ex, we have some time. I wanna unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on the cube is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like, feels great. It's just like we're running VMware on AWS and then they would start consuming higher level services, kind of that adoption next level happens and because it it's in the cloud, so, So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started, and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple of use cases? >>Sure. There's a, well there's a couple. One, it's pretty interesting that, you know, like you said, as there's more and more bits you need better and better hardware and networking. And we're super excited about the I four and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on a, on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The, the options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanu or with any other container and or services within aws. >>So there's, there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is, is allowed to then consume and use things, for example, with tech extract or any other really cool service that has, you know, monthly and quarterly innovations. So there's things that you just can't, could not do before that are coming out and saving customers money and building innovative applications on top of their, their current app base in, in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too, too many here. Yeah. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >>Nora, what's your perspective from the VMware sy? So, you know, you guys have now a lot of headroom to offer customers with Amazon's, you know, higher level services and or whatever's homegrown where's being rolled out? Cuz you now have a lot of hybrid too, so, so what's your, what's your take on what, what's happening in with customers? >>I mean, it's been phenomenal, the, the customer adoption of this and you know, banks and many other highly sensitive verticals are running production grade applications, tier one applications on the service over the last five years. And so, you know, I have a couple of really good examples. S and p Global is one of my favorite examples. Large bank, they merge with IHS market, big sort of conglomeration. Now both customers were using VMware cloud and AWS in different ways. And with the, with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated thousand 1000 workloads to VMware cloud AWS in just six weeks. Pretty phenomenal. If you think about everything that goes into a cloud migration process, people process technology and the beauty of the technology going from VMware point A to VMware point B, the the lowest cost, lowest risk approach to adopting VMware, VMware cloud, and aws. So that's, you know, one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe that constantly entering new markets with the limited number of regions and progressing our roadmap there. >>Yeah, it's great to see, I mean the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. So congratulations. One >>Of other, one of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're, they're seeing those benefits. If you're running really inefficiently in your own data center, that is just a, not a great use of power. So the actual calculators and the benefits to these workloads is, are pretty phenomenal just in being more green, which I like. We just all need to do our part there. And, and this is a big part of it here. >>It's a huge, it's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issues. Another one you see that constrains, I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security, right? I mean, I remember interviewing Stephen Schmidt with that AWS and many years ago, this is like 2013, and you know, at that time people were saying the cloud's not secure. And he's like, listen, it's more secure in the cloud on premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot you gotta to stay current on, on the isolation there is is hard. So I think, I think the security and supply chain, Fred is, is another one. Do you agree? >>I I absolutely agree. It's, it's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and, and have the resources that are available and run them, run them more efficiently. Yeah, and then like you said on the security point, security is job one. It is, it is the only P one. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >>And naron your point earlier about the managed service patching and being on top of things, it's really gonna get better. All right, final question. I really wanna thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I wanna kind of end with kind of a curve ball and put you eyes on the spot. We're talking about a modern, a new modern shift. It's another, we're seeing another inflection point, we've been documenting it, it's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and, and innovation in the infrastructure side. So the question is for you guys each to answer is what's the same and what's different in today's market? So it's kind of like we want more of the same here, but also things have changed radically and better here. What are the, what's, what's changed for the better and where, what's still the same kind of thing hanging around that people are focused on? Can you share your perspective? >>I'll, I'll, I'll, I'll tackle it. You know, businesses are complex and they're often unique that that's the same. What's changed is how fast you can innovate. The ability to combine manage services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about that's elastic. You, you could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a, at a rate that most people can't even comprehend and understand the, the set of services that are available to them. It's really fascinating to see what a one pizza team of of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only gonna continue to accelerate that. That's my take. All right. >>You got a lot of platform to compete on with, got a lot to build on then you're Ryan, your side, What's your, what's your answer to that question? >>I think we are seeing a lot of innovation with new applications that customers are constant. I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly, you know, build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently. I think we, we are seeing, you know, we are at the very start of that sort of of journey. Of course we have invested in Kubernetes the means to an end, but there's so much more beyond that's happening in industry. And I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >>Yeah. Well gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on, you know, solving these complexities with distractions. Whether it's, you know, higher level services with large scale infrastructure at, at your fingertips. Infrastructures, code, infrastructure to be provisioned, serverless, all the good stuff happen in Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator, again, being a cloud operator and developer. So the developer ops is kind of, DevOps is kind of changing too. So all for the better. Thank you for spending the time and we're seeing again, that traction with the VMware customer base and of us getting, getting along great together. So thanks for sharing your perspectives, >>I appreciate it. Thank you so >>Much. Okay, thank you John. Okay, this is the Cube and AWS VMware showcase, accelerating business transformation. VMware cloud on aws, jointly engineered solution, bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Fur, your host. Thanks for watching. Hello everyone. Welcome to the special cube presentation of accelerating business transformation on vmc on aws. I'm John Furrier, host of the Cube. We have dawan director of global sales and go to market for VMware cloud on adb. This is a great showcase and should be a lot of fun. Ashish, thanks for coming on. >>Hi John. Thank you so much. >>So VMware cloud on AWS has been well documented as this big success for VMware and aws. As customers move their workloads into the cloud, IT operations of VMware customers has signaling a lot of change. This is changing the landscape globally is on cloud migration and beyond. What's your take on this? Can you open this up with the most important story around VMC on aws? >>Yes, John. The most important thing for our customers today is the how they can safely and swiftly move their ID infrastructure and applications through cloud. Now, VMware cloud AWS is a service that allows all vSphere based workloads to move to cloud safely, swiftly and reliably. Banks can move their core, core banking platforms, insurance companies move their core insurance platforms, telcos move their goss, bss, PLA platforms, government organizations are moving their citizen engagement platforms using VMC on aws because this is one platform that allows you to move it, move their VMware based platforms very fast. Migrations can happen in a matter of days instead of months. Extremely securely. It's a VMware manage service. It's very secure and highly reliably. It gets the, the reliability of the underlyings infrastructure along with it. So win-win from our customers perspective. >>You know, we reported on this big news in 2016 with Andy Chas, the, and Pat Geling at the time, a lot of people said it was a bad deal. It turned out to be a great deal because not only could VMware customers actually have a cloud migrate to the cloud, do it safely, which was their number one concern. They didn't want to have disruption to their operations, but also position themselves for what's beyond just shifting to the cloud. So I have to ask you, since you got the finger on the pulse here, what are we seeing in the market when it comes to migrating and modern modernizing in the cloud? Because that's the next step. They go to the cloud, you guys have done that, doing it, then they go, I gotta modernize, which means kind of upgrading or refactoring. What's your take on that? >>Yeah, absolutely. Look, the first step is to help our customers assess their infrastructure and licensing and entire ID operations. Once we've done the assessment, we then create their migration plans. A lot of our customers are at that inflection point. They're, they're looking at their real estate, ex data center, real estate. They're looking at their contracts with colocation vendors. They really want to exit their data centers, right? And VMware cloud and AWS is a perfect solution for customers who wanna exit their data centers, migrate these applications onto the AWS platform using VMC on aws, get rid of additional real estate overheads, power overheads, be socially and environmentally conscious by doing that as well, right? So that's the migration story, but to your point, it doesn't end there, right? Modernization is a critical aspect of the entire customer journey as as well customers, once they've migrated their ID applications and infrastructure on cloud get access to all the modernization services that AWS has. They can correct easily to our data lake services, to our AIML services, to custom databases, right? They can decide which applications they want to keep and which applications they want to refactor. They want to take decisions on containerization, make decisions on service computing once they've come to the cloud. But the most important thing is to take that first step. You know, exit data centers, come to AWS using vmc or aws, and then a whole host of modernization options available to them. >>Yeah, I gotta say, we had this right on this, on this story, because you just pointed out a big thing, which was first order of business is to make sure to leverage the on-prem investments that those customers made and then migrate to the cloud where they can maintain their applications, their data, their infrastructure operations that they're used to, and then be in position to start getting modern. So I have to ask you, how are you guys specifically, or how is VMware cloud on s addressing these needs of the customers? Because what happens next is something that needs to happen faster. And sometimes the skills might not be there because if they're running old school, IT ops now they gotta come in and jump in. They're gonna use a data cloud, they're gonna want to use all kinds of machine learning, and there's a lot of great goodness going on above the stack there. So as you move with the higher level services, you know, it's a no brainer, obviously, but they're not, it's not yesterday's higher level services in the cloud. So how are, how is this being addressed? >>Absolutely. I think you hit up on a very important point, and that is skills, right? When our customers are operating, some of the most critical applications I just mentioned, core banking, core insurance, et cetera, they're most of the core applications that our customers have across industries, like even, even large scale ERP systems, they're actually sitting on VMware's vSphere platform right now. When the customer wants to migrate these to cloud, one of the key bottlenecks they face is skill sets. They have the trained manpower for these core applications, but for these high level services, they may not, right? So the first order of business is to help them ease this migration pain as much as possible by not wanting them to, to upscale immediately. And we VMware cloud and AWS exactly does that. I mean, you don't have to do anything. You don't have to create new skill set for doing this, right? Their existing skill sets suffice, but at the same time, it gives them that, that leeway to build that skills roadmap for their team. DNS is invested in that, right? Yes. We want to help them build those skills in the high level services, be it aml, be it, be it i t be it data lake and analytics. We want to invest in them, and we help our customers through that. So that ultimately the ultimate goal of making them drop data is, is, is a front and center. >>I wanna get into some of the use cases and success stories, but I want to just reiterate, hit back your point on the skill thing. Because if you look at what you guys have done at aws, you've essentially, and Andy Chassey used to talk about this all the time when I would interview him, and now last year Adam was saying the same thing. You guys do all the heavy lifting, but if you're a VMware customer user or operator, you are used to things. You don't have to be relearn to be a cloud architect. Now you're already in the game. So this is like almost like a instant path to cloud skills for the VMware. There's hundreds of thousands of, of VMware architects and operators that now instantly become cloud architects, literally overnight. Can you respond to that? Do you agree with that? And then give an example. >>Yes, absolutely. You know, if you have skills on the VMware platform, you know, know, migrating to AWS using via by cloud and AWS is absolutely possible. You don't have to really change the skills. The operations are exactly the same. The management systems are exactly the same. So you don't really have to change anything but the advantages that you get access to all the other AWS services. So you are instantly able to integrate with other AWS services and you become a cloud architect immediately, right? You are able to solve some of the critical problems that your underlying IT infrastructure has immediately using this. And I think that's a great value proposition for our customers to use this service. >>And just one more point, I want just get into something that's really kind of inside baseball or nuanced VMC or VMware cloud on AWS means something. Could you take a minute to explain what on AWS means? Just because you're like hosting and using Amazon as a, as a work workload? Being on AWS means something specific in your world, being VMC on AWS mean? >>Yes. This is a great question, by the way, You know, on AWS means that, you know, VMware's vse platform is, is a, is an iconic enterprise virtualization software, you know, a disproportionately high market share across industries. So when we wanted to create a cloud product along with them, obviously our aim was for them, for the, for this platform to have the goodness of the AWS underlying infrastructure, right? And, and therefore, when we created this VMware cloud solution, it it literally use the AWS platform under the eighth, right? And that's why it's called a VMs VMware cloud on AWS using, using the, the, the wide portfolio of our regions across the world and the strength of the underlying infrastructure, the reliability and, and, and sustainability that it offers. And therefore this product is called VMC on aws. >>It's a distinction I think is worth noting, and it does reflect engineering and some levels of integration that go well beyond just having a SaaS app and, and basically platform as a service or past services. So I just wanna make sure that now super cloud, we'll talk about that a little bit in another interview, but I gotta get one more question in before we get into the use cases and customer success stories is in, in most of the VM world, VMware world, in that IT world, it used to, when you heard migration, people would go, Oh my God, that's gonna take months. And when I hear about moving stuff around and doing cloud native, the first reaction people might have is complexity. So two questions for you before we move on to the next talk. Track complexity. How are you addressing the complexity issue and how long these migrations take? Is it easy? Is it it hard? I mean, you know, the knee jerk reaction is month, You're very used to that. If they're dealing with Oracle or other old school vendors, like, they're, like the old guard would be like, takes a year to move stuff around. So can you comment on complexity and speed? >>Yeah. So the first, first thing is complexity. And you know, what makes what makes anything complex is if you're, if you're required to acquire new skill sets or you've gotta, if you're required to manage something differently, and as far as VMware cloud and AWS on both these aspects, you don't have to do anything, right? You don't have to acquire new skill sets. Your existing idea operation skill sets on, on VMware's platforms are absolutely fine and you don't have to manage it any differently like, than what you're managing your, your ID infrastructure today. So in both these aspects, it's exactly the same and therefore it is absolutely not complex as far as, as far as, as far as we cloud and AWS is concerned. And the other thing is speed. This is where the huge differentiation is. You have seen that, you know, large banks and large telcos have now moved their workloads, you know, literally in days instead of months. >>Because because of VMware cloud and aws, a lot of time customers come to us with specific deadlines because they want to exit their data centers on a particular date. And what happens, VMware cloud and AWS is called upon to do that migration, right? So speed is absolutely critical. The reason is also exactly the same because you are using the exactly the same platform, the same management systems, people are available to you, you're able to migrate quickly, right? I would just reference recently we got an award from President Zelensky of Ukraine for, you know, migrating their entire ID digital infrastructure and, and that that happened because they were using VMware cloud database and happened very swiftly. >>That's been a great example. I mean, that's one political, but the economic advantage of getting outta the data center could be national security. You mentioned Ukraine, I mean Oscar see bombing and death over there. So clearly that's a critical crown jewel for their running their operations, which is, you know, you know, world mission critical. So great stuff. I love the speed thing. I think that's a huge one. Let's get into some of the use cases. One of them is, the first one I wanted to talk about was we just hit on data, data center migration. It could be financial reasons on a downturn or our, or market growth. People can make money by shifting to the cloud, either saving money or making money. You win on both sides. It's a, it's a, it's almost a recession proof, if you will. Cloud is so use case for number one data center migration. Take us through what that looks like. Give an example of a success. Take us through a day, day in the life of a data center migration in, in a couple minutes. >>Yeah. You know, I can give you an example of a, of a, of a large bank who decided to migrate, you know, their, all their data centers outside their existing infrastructure. And they had, they had a set timeline, right? They had a set timeline to migrate the, the, they were coming up on a renewal and they wanted to make sure that this set timeline is met. We did a, a complete assessment of their infrastructure. We did a complete assessment of their IT applications, more than 80% of their IT applications, underlying v vSphere platform. And we, we thought that the right solution for them in the timeline that they wanted, right, is VMware cloud ands. And obviously it was a large bank, it wanted to do it safely and securely. It wanted to have it completely managed, and therefore VMware cloud and aws, you know, ticked all the boxes as far as that is concerned. >>I'll be happy to report that the large bank has moved to most of their applications on AWS exiting three of their data centers, and they'll be exiting 12 more very soon. So that's a great example of, of, of the large bank exiting data centers. There's another Corolla to that. Not only did they manage to manage to exit their data centers and of course use and be more agile, but they also met their sustainability goals. Their board of directors had given them goals to be carbon neutral by 2025. They found out that 35% of all their carbon foot footprint was in their data centers. And if they moved their, their ID infrastructure to cloud, they would severely reduce the, the carbon footprint, which is 35% down to 17 to 18%. Right? And that meant their, their, their, their sustainability targets and their commitment to the go to being carbon neutral as well. >>And that they, and they shift that to you guys. Would you guys take that burden? A heavy lifting there and you guys have a sustainability story, which is a whole nother showcase in and of itself. We >>Can Exactly. And, and cause of the scale of our, of our operations, we are able to, we are able to work on that really well as >>Well. All right. So love the data migration. I think that's got real proof points. You got, I can save money, I can, I can then move and position my applications into the cloud for that reason and other reasons as a lot of other reasons to do that. But now it gets into what you mentioned earlier was, okay, data migration, clearly a use case and you laid out some successes. I'm sure there's a zillion others. But then the next step comes, now you got cloud architects becoming minted every, and you got managed services and higher level services. What happens next? Can you give us an example of the use case of the modernization around the NextGen workloads, NextGen applications? We're starting to see, you know, things like data clouds, not data warehouses. We're not gonna data clouds, it's gonna be all kinds of clouds. These NextGen apps are pure digital transformation in action. Take us through a use case of how you guys make that happen with a success story. >>Yes, absolutely. And this is, this is an amazing success story and the customer here is s and p global ratings. As you know, s and p global ratings is, is the world leader as far as global ratings, global credit ratings is concerned. And for them, you know, the last couple of years have been tough as far as hardware procurement is concerned, right? The pandemic has really upended the, the supply chain. And it was taking a lot of time to procure hardware, you know, configure it in time, make sure that that's reliable and then, you know, distribute it in the wide variety of, of, of offices and locations that they have. And they came to us. We, we did, again, a, a, a alar, a fairly large comprehensive assessment of their ID infrastructure and their licensing contracts. And we also found out that VMware cloud and AWS is the right solution for them. >>So we worked there, migrated all their applications, and as soon as we migrated all their applications, they got, they got access to, you know, our high level services be our analytics services, our machine learning services, our, our, our, our artificial intelligence services that have been critical for them, for their growth. And, and that really is helping them, you know, get towards their next level of modern applications. Right Now, obviously going forward, they will have, they will have the choice to, you know, really think about which applications they want to, you know, refactor or which applications they want to go ahead with. That is really a choice in front of them. And, but you know, the, we VMware cloud and AWS really gave them the opportunity to first migrate and then, you know, move towards modernization with speed. >>You know, the speed of a startup is always the kind of the Silicon Valley story where you're, you know, people can make massive changes in 18 months, whether that's a pivot or a new product. You see that in startup world. Now, in the enterprise, you can see the same thing. I noticed behind you on your whiteboard, you got a slogan that says, are you thinking big? I know Amazon likes to think big, but also you work back from the customers and, and I think this modern application thing's a big deal because I think the mindset has always been constrained because back before they moved to the cloud, most IT, and, and, and on-premise data center shops, it's slow. You gotta get the hardware, you gotta configure it, you gotta, you gotta stand it up, make sure all the software is validated on it, and loading a database and loading oss, I mean, mean, yeah, it got easier and with scripting and whatnot, but when you move to the cloud, you have more scale, which means more speed, which means it opens up their capability to think differently and build product. What are you seeing there? Can you share your opinion on that epiphany of, wow, things are going fast, I got more time to actually think about maybe doing a cloud native app or transforming this or that. What's your, what's your reaction to that? Can you share your opinion? >>Well, ultimately we, we want our customers to utilize, you know, most of our modern services, you know, applications should be microservices based. When desired, they should use serverless applic. So list technology, they should not have monolithic, you know, relational database contracts. They should use custom databases, they should use containers when needed, right? So ultimately, we want our customers to use these modern technologies to make sure that their IT infrastructure, their licensing, their, their entire IT spend is completely native to cloud technologies. They work with the speed of a startup, but it's important for them to, to, to get to the first step, right? So that's why we create this journey for our customers, where you help them migrate, give them time to build the skills, they'll help them mo modernize, take our partners along with their, along with us to, to make sure that they can address the need for our customers. That's, that's what our customers need today, and that's what we are working backwards from. >>Yeah, and I think that opens up some big ideas. I'll just say that the, you know, we're joking, I was joking the other night with someone here in, in Palo Alto around serverless, and I said, you know, soon you're gonna hear words like architectural list. And that's a criticism on one hand, but you might say, Hey, you know, if you don't really need an architecture, you know, storage lists, I mean, at the end of the day, infrastructure is code means developers can do all the it in the coding cycles and then make the operations cloud based. And I think this is kind of where I see the dots connecting. Final thought here, take us through what you're thinking around how this new world is evolving. I mean, architecturals kind of a joke, but the point is, you know, you have to some sort of architecture, but you don't have to overthink it. >>Totally. No, that's a great thought, by the way. I know it's a joke, but it's a great thought because at the end of the day, you know, what do the customers really want? They want outcomes, right? Why did service technology come? It was because there was an outcome that they needed. They didn't want to get stuck with, you know, the, the, the real estate of, of a, of a server. They wanted to use compute when they needed to, right? Similarly, what you're talking about is, you know, outcome based, you know, desire of our customers and, and, and that's exactly where the word is going to, Right? Cloud really enforces that, right? We are actually, you know, working backwards from a customer's outcome and using, using our area the breadth and depth of our services to, to deliver those outcomes, right? And, and most of our services are in that path, right? When we use VMware cloud and aws, the outcome is a, to migrate then to modernize, but doesn't stop there, use our native services, you know, get the business outcomes using this. So I think that's, that's exactly what we are going through >>Actually, should actually, you're the director of global sales and go to market for VMware cloud on Aus. I wanna thank you for coming on, but I'll give you the final minute. Give a plug, explain what is the VMware cloud on Aus, Why is it great? Why should people engage with you and, and the team, and what ultimately is this path look like for them going forward? >>Yeah. At the end of the day, we want our customers to have the best paths to the cloud, right? The, the best path to the cloud is making sure that they migrate safely, reliably, and securely as well as with speed, right? And then, you know, use that cloud platform to, to utilize AWS's native services to make sure that they modernize their IT infrastructure and applications, right? We want, ultimately that our customers, customers, customer get the best out of, you know, utilizing the, that whole application experience is enhanced tremendously by using our services. And I think that's, that's exactly what we are working towards VMware cloud AWS is, is helping our customers in that journey towards migrating, modernizing, whether they wanna exit a data center or whether they wanna modernize their applications. It's a essential first step that we wanna help our customers with >>One director of global sales and go to market with VMware cloud on neighbors. He's with aws sharing his thoughts on accelerating business transformation on aws. This is a showcase. We're talking about the future path. We're talking about use cases with success stories from customers as she's thank you for spending time today on this showcase. >>Thank you, John. I appreciate it. >>Okay. This is the cube, special coverage, special presentation of the AWS Showcase. I'm John Furrier, thanks for watching.

foreign [Music] welcome to this Cube showcase accelerating business transformation with VMware Cloud on aw it's a solution Innovation conversation with two great guests Fred Ward and VP of Commercial Services at AWS and Narayan bardawaj who's the VP and general manager of cloud Solutions at VMware gentlemen thanks for uh joining me on the Showcase great to be here hey thanks for having us on it's a great topic you know we we've been covering this VMware Cloud on AWS since since the launch going back and it's been amazing to watch The Evolution from people saying oh it's the worst thing I've ever seen what's this mean uh and depressed we're we're kind of not really on board with kind of the vision but as it played out as you guys had announced together it did work out great for VMware it did work out great for a divs and it continues two years later and I want to just get an update from you guys on where you guys see this has been going obviously multiple years where is the evolution of the solution as we are right now coming off VMware Explorer just recently and going in to reinvent uh which is only a couple weeks away uh this feels like tomorrow but you know as we prepare a lot going on where are we with the evolution of the solution I mean the first thing I want to say is you know October 2016 was a seminal moment in the history of I.T right when bad girls singer and Andy jassy came together to announce this and I think John you were there at the time I was there it was a great great moment we launched the solution in 2017 the year after that at vmworld back when we called it vmworld I think we've gone from strength to strength one of the things that has really mattered to us is we've learned from AWS also and the process is this notion of working backwards so we're really really focused on customer feedback as we build the service offering now five years old pretty remarkable Journey uh you know in the first years we tried to get across all the regions you know that was a big Focus because there was so much demand for it in the second year we started going really on Enterprise great features we invented this pretty awesome feature called stretch clusters where you could stretch a vsphere cluster using vsan NSX across two azs in the same region pretty phenomenal for lines of availability that applications start started to get with that particular feature and we kept moving forward all kinds of integration with AWS direct connect Transit gateways with our own Advanced networking capabilities uh you know along the way Disaster Recovery we punched out you need two new Services just focused on that and then more recently we launched our outposts partnership we were up on the stage at reinvent again with Pat and Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts I think it's been significant growth in our federal sector as well the federal Empire certification more recently so all in all we're super excited we're five years old the customer momentum is really really strong we are scaling the service massively across all GEOS and industries that's great great update and I think one of the things that you mentioned was how the advantages you guys got from that relationship and this has kind of been the theme for AWS man since I can remember from day one Fred you guys do the heavy lifting as as it's always say for the customers here VMware comes on board takes advantage of the AWS and kind of just doesn't miss a beat continues to move their workloads that everyone's using you know vsphere and these are these are Big workloads on AWS what's the AWS perspective on this how do you see it yeah uh it's pretty fascinating to watch how fast customers can actually transform and move when you take the the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's that's evolving quickly and and building out new hardware and new instances we'll talk about uh but that combined experience between both of us on a jointly engineered solution uh to bring the best security and the best features that really matter for those workloads uh drive a lot of efficiency and speed for the for the customer so it's been well received and the partnership is stronger than ever from an engineering standpoint from a business standpoint and obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and and responding to what customers want so pretty pretty excited about just seeing the transformation and the speed that which customers can move to uh BMC yeah that's a great value probably we've been talking about that in context to anyone building on top of the cloud they can have their own super cloud as we call it if you take advantage of all the capex and investment Amazon's made and AWS is made and and continues to make in performance I as and pass all great stuff I have to ask you guys both as you guys see this going to the next level what are some of the differentiations you see around the service compared to other options on the market what makes it different what's the combination you mentioned jointly engineered what are some of the key differentias of the service compared to others yeah I think one of the key things red talked about is this jointly engineered notion right from day one we were the earlier doctors of the AWS Nitro platform right the reinvention of ec2 back five years ago and so we've been you know having a very very strong engineering partnership at that level I think from uh we have a customer standpoint you get the full software-defined data center compute storage networking on ec2 bare metal across all regions you can scale that elastically up and down it's pretty phenomenal just having that consistency Global right on AWS ec2 Global regions now the other thing that's a real differentiator for us customers tell us about is this whole notion of a managed service right and this was somewhat new to VMware this undifferentiated heavy lifting where customers are to provision rack stack Hardware configure the software on top and then upgrade the software and the security patches on top so we took away all of that pain as customers transition to VMware cloud and AWS in fact my favorite story from last year when we were all going through the lock for Jay debacle the industry was just going through that right favorite proof point from customers was before they could even race uh this issue to us we sent them a notification saying uh we already patched all of your systems no action from you the customers were super thrilled I mean these are large Banks many other customers around the world super thrill they had to take no action for a pretty incredible industry challenge that we were all facing that's a great point you know the whole managed service piece brings up the security and you're kind of teasing at it but you know there's always vulnerabilities that emerge when you're doing complex logic and as you grow your Solutions there's more bits you know Fred we were commenting before we came on cameras more bits than ever before and and at the physics layer too as well as the software so you never know when there's going to be a zero day vulnerability out there just it happens we saw one with Fortinet this week um this came out of the woodwork but moving fast on those patches is huge this brings up the whole support angle I wanted to ask you about how you guys are doing that as well because to me we see the value when we when we talk to customers on the cube about this you know it was a real real easy understanding of how what the cloud means to them with VMware now with the AWS but the question that comes up that we want to get more clarity on is how do you guys handle the support together well what's interesting about this is that it's it's done mutually we have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer including all the way up into the app layer as you think about some of the other workloads like sap we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them uh and on top of that we look at where where we're improving reliability in as a first order of principle between both companies so from an availability and reliability standpoint it's it's top of mind and no matter where the particular item might land we're going to go help the customer resolve that works really well on the VMware side let's spend the feedback there what's the what's some of the updates same scene yeah yeah I think uh look I mean VMware owns and operates the service will be a phenomenal back in relationship with AWS customers call VMware for the service for any issues and then we have a awesome relationship with AWS in the back end for support issues for any hardware issues capacity management that we jointly do right all the hard problems that customers don't have to worry about uh I think on the front end we also have a really good group of solution Architects across the companies that help to really explain the solution do complex things like Cloud migration which is much much easier with VMware on AWS we're presenting that easy button to the public cloud in many ways and so we have a whole technical audience across the two companies that are working with customers every single day you know you had mentioned a list here some of the Innovations the you mentioned the stretch clustering you know getting the GEOS working Advanced Network disaster recovery um you know fed fed ramp public sector certifications outposts all good you guys are checking the boxes every year you got a good good accomplishments list there on the VMware AWS side here in this relationship the question that I'm interested in is what's next what uh recent Innovations are you doing are you making investments in what's on the list this year what items will be next year how do you see the the new things the list of the cosmos people want to know what's next they don't want to see stagnant uh growth here they want to see more action you know as as uh Cloud kind of continues to scale and modern applications Cloud native you're seeing more and more containers more and more you know more CF CI CD pipelining with with modern apps putting more pressure on the system what's new what's the new Innovations absolutely and I think as a five-year-old service offering uh Innovation is top of mind for us every single day so just to call out a few recent innovations that we announced in San Francisco at VMware Explorer um first of all uh our new platform i4i dot metal it's isolate based it's pretty awesome it's the latest and greatest uh all the speeds and beats that you would expect from VMware and AWS at this point in our relationship we announced two different storage options this notion of working from customer feedback allowing customers even more price reductions really take off that storage and park it externally right and you know separate that from compute so two different storage offerings there one is with AWS FSX NetApp on tap which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well and the second storage offering called VMware Cloud Flex story vmware's own managed storage offering beyond that we've done a lot of other Innovations as well I really wanted to talk about VMware Cloud Flex compute where previously customers could only scale by hosts you know host is 36 to 48 cores give or take but with VMware cloudflex compute we are now allowing this notion of a resource defined compute model where customers can just get exactly the vcpu memory and storage that maps to the applications however small they might be so this notion of granularity is really a big innovation that that we are launching in the market this year and then last but not least topper ransomware of course it's a Hot Topic in the industry we are seeing many many customers ask for this we are happy to announce a new ransomware recovery with our VMware Cloud VR solution a lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots backups are actually safe to use so there's a lot of differentiation on that front as well a lot of networking Innovations with project North Star the ability to have layer 4 through layer seven uh you know new SAS services in that area as well keep in mind that the service already supports managed kubernetes for containers it's built in to the same clusters that have virtual machines and so this notion of a single service with a great TCO for VMS and containers is sort of at the heart of our option the networking side certainly is a hot area to keep innovating on every year it's the same same conversation get better faster networking more more options there the flex computes interesting if you don't mind me getting a quick clarification could you explain the address between resource defined versus Hardware defined because this is kind of what we had saw at explore coming out that notion of resource defined versus Hardware defined what's that what does that mean yeah I mean I think we've been super successful in this Hardware defined notion where we're scaling by the hardware unit uh that we present as software-defined data centers right so that's been super successful but we you know customers wanted more especially customers in different parts of the world wanted to start even smaller and grow even more incrementally right lower the cost even more and so this is the part where resource defined starts to be very very interesting as a way to think about you know here's my bag of resources exactly based on what the customer's requested it would be for fiber machines five containers its size exactly for that and then as utilization grows we elastically behind the scenes were able to grow it through policies so that's a whole different dimension it's a whole different service offering that adds value when customers are comfortable they can go from one to the other they can go back to that post-based model if they so choose to and there's a jump off point across these two different economic models it's kind of cloud flexibility right there I like the name Fred let's get into some of the uh examples of customers if you don't mind let's get into some of these we have some time I want to unpack a little bit of what's going on with the customer deployments one of the things we've heard again on the cube is from customers is they like the clarity of the relationship they love the cloud positioning of it and then what happens is they lift and shift the workloads and it's like feels great it's just like we're running VMware on AWS and then they start consuming higher level Services kind of that adoption Next Level happens um and because it's in the cloud so so can you guys take us through some recent examples of customer wins or deployments where they're using VMware Cloud on AWS on getting started and then how do they progress once they're there how does it evolve can you just walk us through a couple use cases sure um there's a well there's a couple one it's pretty interesting that you know like you said as there's more and more bids you need better and better hardware and networking and we're super excited about the I-4 uh and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds but what customers are doing with it like the college in New Jersey they're accelerating their deployment on a on onboarding over like 7 400 students over a six to eight month period and they've really realized a ton of savings but what's interesting is where and how they can actually grow onto additional native Services too so connectivity to any other services is available as they start to move and migrate into this um the the options there obviously are tied to all the Innovation that we have across any Services whether it's containerized and with what they're doing with tanzu or with any other container and or services within AWS so so there's there's some pretty interesting scenarios where that data and or the processing which is moved quickly with full compliance whether it's in like health care or regulatory business is is allowed to then consume and use things for example with text extract or any other really cool service that has you know monthly and quarterly Innovations so there's things that you just can't could not do before that are coming out uh and saving customers money and building Innovative applications on top of their uh their current uh app base in in a rapid fashion so pretty excited about it there's a lot of examples I think I probably don't have time to go into too many here yeah but that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform now Ryan what's your perspective from the VMware psychics you know you guys have now a lot of head room to offer customers with Amazon's you know higher level services and or whatever's homegrown what is being rolled out because you now have a lot of hybrid too so so what's your what's your take on what what's happening and with customers I mean it's been phenomenal the customer adoption of this and you know Banks and many other highly sensitive verticals are running production grade applications tier one applications on the service over the last five years and so you know I have a couple of really good examples SNP Global is one of my favorite examples large Bank the merch with IHS Market big sort of conglomeration now both customers were using VMware cloud and AWS in different ways and with the uh with the use case one of their use cases was how do I just respond to these Global opportunities without having to invest in physical data centers and then how do I migrate and consolidate all my data centers across the globe of which there were many and so one specific example for this company was how they migrated thousand one thousand workloads to VMware cloud and AWS in just six weeks pretty phenomenal if you think about everything that goes into a cloud migration process people process technology and the beauty of the technology going from VMware point a to VMware point B the the lowest cost lowest risk approach to adopting we have our cloud in AWS so that's uh you know one of my favorite examples there are many other examples across other verticals that we continue to see the good thing is we're seeing rapid expansion across the globe we're constantly entering new markets uh with a limited number of regions and progressing our roadmap it's great to see I mean the data center migrations go from months many many months to weeks it's interesting to see some of those success stories so congratulations another one of the other uh interesting uh and fascinating uh uh benefits is the sustainability Improvement in terms of being green so the efficiency gains that we have both in current uh generation and New Generation processors and everything that we're doing to make sure that when a customer can be elastic they're also saving power which is really critical in a lot of regions worldwide at this point in time they're they're seeing those benefits if you're running really inefficiently in your own data center that is just a not a great use of power so the actual calculators and the benefits to these workloads is are pretty phenomenal just in being more green which I like we just all need to do our part there and and this is a big part of it here it's a huge it's a huge point about sustainability for everyone glad you called that out the other one I would say is supply chain issues another one you see that constrains I can't buy hardware and the third one is really obvious but no one really talks about it it's security right I mean um I remember interviewing Steven Schmidt with that AWS and many years ago this is like 2013 and um you know at that time people saying the Cloud's not secure and he's like listen it's more secure in the cloud than on premise and if you look at the security breaches it's all about the on-premise data center vulnerabilities not so much Hardware so there's a lot you gotta the the stay current on on the isolation there is hard so I think I think the security and supply chain threat is another one do you agree I I absolutely agree uh it's it's hard to manage supply chain nowadays we put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them run them more efficiently yeah and then like you said on the security Point Security is job one it is it is the only P1 and if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers there's nothing more important and Narayan your point earlier about the managed service patching and being on top of things is really going to get better all right final question I really want to thank you for your time on this showcase it's really been a great conversation uh Fred you had made a comment earlier I want to kind of end with the kind of a curveball and put you guys on the spot we're talking about a modern a new modern shift it's another we're seeing another inflection point we've been documenting it it's almost like Cloud hitting another inflection point um with application and open source growth significantly at the app layer continue to put a lot of pressure and innovation in the infrastructure side so the question is for you guys each to answer is what's the same and what's different in today's market so it's kind of like we want more of the same here but also things have changed radically and better here what are the what's what's changed for better and where what's still the same kind of thing hanging around that people are focused on can you share your perspective I'll I'll tackle it um you know uh businesses are complex and they're often unique uh that that's the same uh what's changed is how fast you can innovate the ability to combine manage services and new Innovative services and build new applications is so much faster today leveraging world-class Hardware uh that you don't have to worry about that's elastic you could not do that even five ten years ago to the degree you can today especially with the Innovation so Innovation is accelerating uh at a rate that most people can't even comprehend and understand the the set of services that are available to them it's really fascinating to see what a one pizza team of of Engineers can go actually develop in a week it is phenomenal so super excited about this space and it's only going to continue to accelerate that that's my take there I am you got a lot of platform to compete on with Amazon I got a lot to build on the memory which then you're right on your side what's your what's your answer to that question I think we're seeing a lot of innovation with new applications that customers [Music] I think uh what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly uh you know build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently I think we are seeing uh you know we're at the very start of that sort of uh of Journey um of course we have invested in kubernetes means to an end but it's so much more Beyond that's happening in the industry and I think we're at the very very beginning of this Transformations Enterprise transformation that many of our customers are going through and we're inherently part of it yeah well gentlemen I really appreciate that we're seeing the same things more the same here on you know solving these complexities with abstractions whether it's you know higher level services with large-scale infrastructure um at your fingertips infrastructure is code infrastructure to be provisioned serverless all the good stuff happening Fred with AWS on your side and we're seeing customers resonate with this idea of being an operator again being a cloud operator and developer so the developer Ops is kind of devops is kind of changing too so all for the better thank you for spending the time we're seeing again that traction with the VMware customer base and it was getting getting along great together so thanks for sharing your perspectives they appreciate it thank you so much okay thank you John okay this is thecube and AWS VMware showcase accelerating business transformation VMware Cloud on AWS jointly engineered solution bringing Innovation to the VMware customer base going to the cloud and Beyond I'm John Furrier your host thanks for watching [Music]