>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Hey, welcome back here and live here in Mosconi North. The Emerald 2019 Cube Live coverage on Shopping Day Volante Jr Jr. Who's here? EVP general manager, Telco and Edge of Cloud for Vienna. Where Thanks for coming on. Thanks for having me. I know you're super busy. We don't have a lot of time. Get right to it. Um five g a big part of the key. No discussion that's gonna enable a whole bunch of Pakal the pregame show pre gaming not even talk about that. Also. Telco on the Edge Computing Big part Michael Dell said, Edges the future Now these air to emerging areas for you guys. What's the positioning? What's the update? >> No, absolutely. I mean, if you look a tw telecom infrastructure. For the longest time, telcos have played a role just as pure basic connectivity providers. And with five g coming on board, they finally have an opportunity to break out of that and redefine the cloud off the future. So for us the big opportunity around five g is not just the better provisioning off like Higher Man With Service is to consumer for voice and data buy the whole set off new enterprise service is that can be provided on top of this five g network. And in order to be able to do that, you really need to go in with a virtualized telco Cloud architecture. Underneath that, and so we are working with carriers globally now preparing them for five G with an architecture that's going to help them deploy. New service is faster for both their consumer as well as enterprise. >> Going to be the white knight at, so to speak. For these telcos because they've been struggling for years over the top and any kind of differentiates service is even in the network layer. Exactly. I've had tons of rack and stack machine, so they're after their well, well stacked up in terms of computer storage. Also connectivity to the edge. That's the back hall. So you have back haul, which is connectivity. Companies that have massive expertise in scale but fumbling in operational cloud natives that >> by not just that, but I also think that having the idea off on application platform that allows them to go and deploy service is faster and then decide whether they're just going to play at the network connectivity level or at the application tear or a full SAS tear. These are all options that are open to them now with this notion off. Telco five G coupled with an NFI and cloud telco cloud infrastructure. Underneath that and never before have they had this option to doing that. And this is now open to them >> and the cloud native is there greenfield for AP supporter having applications on top of it. Exact icing on the cake, right? >> Exactly, Exactly. And so they're all looking at core architectures and then, potentially, their radio architectures now all being opened up toe deploying new service is that are much faster to provisions and then extending that to EJ and >> five G's deploying. So we know it's out there. So it is pre game is Pat, Guzman said. You know, not even an inning Yet in the metaphor of baseball innings, I >> gotta ask you get my phone. That's not that's fake ill. I know it >> did that with four g to >> skeptic e stands for evolution, which is coming soon. >> That's vaporware for tell Coke language. The surface area is going to radically get bigger with this capability. Yeah, security's gonna be baked in. This is the number one concern for io ti. And more importantly, industrial I ot We've been reporting on silicon angle dot com. This is a national security issue because we're under cyber attacks. Town's getting locked out with ransomware critical infrastructure exposed. We're free country, and I want to be free. We don't lock down. So you have security built into this new promiscuous landscape that is called the coyote Edge. Because you wanna have no perimeter. You want the benefits of cloud. But one whole malware is in there. One take over physical device could cost lives. >> Yeah, there's a big concern. Yeah. What's your thoughts? Yeah, No. So I think there >> are two ways of looking at it. One is the way you looked at it in terms of the security perimeter expanding and then us making sure that we have the right level off infrastructure security baked in to enable this to be an easier, manageable security architecture. This is sort of the pitch you heard from Mia Mary, even in the context of our acquisition of carbon black and how we're thinking about baking security into the infrastructure, the other way of looking at this is if you think about some of the concerns around providers off telecom infrastructure today and how there might be or might not be security back doors. This is happening in today's hardware infrastructure. Okay, so in fact, I would argue that a sick software defined architecture, er, actually ends up providing you greater levels of security. Because what you now have is the option off running all of these network functions as secured as software workloads in a policy envelope that you can introspect. And then you can decide what kind of security you want to deploy on what kind of workload. >> That's an innovative approach. But it doesn't change much, really, from an infrastructure standpoint, does it? Or does it? >> No, it does, >> because now, instead of having a hardware box where you have to worry, I mean, if it's a close, hard red box and you don't quite know what is happening there, the question is, is that more secure than a infrastructure radio running the software that you can actually introspect. I would argue that the software defined approach is more secure than having a hardware box that you don't know. >> I would buy the premise that certainly we know that supply chain concerned. You know the speculation Super Micro, which never was proved. >> It doesn't matter who the vendor is or what the country is. It really is a concern in terms of not being able to introspect what has happened Going inside >> for my tea shop. I'm running VM where operating I want developers. So now you're going to tell Coz you revitalize their business model? They had a rule out appy. Now what did you see? That connecting is gonna be connective tissue between >> I'll think about it. I didn't feel goto a telco. We look at really three stakeholders in there. One is I t the second Is there be to be or enterprise facing business and then the 3rd 1 is their core and access network or the CTO. We're now have a value proposition of having a uniform architecture across all three stakeholders with the uniform ability to create applications and drop it on top of each of these infrastructures with the ability to manage and secure these again in a uniform way, not just that, but also make this work well with other cloud infrastructures private, hyper scale, public as well as EJ. >> That's table stakes. You have to do that. These jokers have to operate whatever >> well it is, But it's not. I mean, if you think about what the infrastructure off a tailcoat today is, it's far from that, because it's it's sort of a closed environment. You can't access anything from a telco environment in order to go build an application to it, and it does not resemble anything like any club >> you could enable Telco. Just I'm just kind of thinking connecting the dots here real time in the Cube. If I'm a telco, hell, I'll take that VM wear on a deli and see model. Make me a cloud and I'll sell Cloud Service is to markets that kind of >> it is. Actually it's a very important part of our business model because most telcos would not move their own infrastructure from a network standpoint onto a public cloud. But they are eagerly awaiting the ability to operate their own network as a cloud, and if they can have somebody manage that for them, then that is very much within the >> you're enabling. An increase in the number of cloud service provides potentially the paint on the makeup of the telco tier one tier two tier three size. Pretty much >> potentially. I mean, it's taking an existing operator and having them operate in a more agile way and potentially increasing anew form off a cloud service >> provided telcos wouldn't move into the public cloud because of they want to control. And the cost is that right or it's >> mostly control. It's not about cost. It's about taking What is your sort of coordinating for, ah, packet corps or for a radio network? Yeah, and there is also an angle around competition, I think telcos our what in about the Amazons of the world and the azure eyes of the world potentially becoming a service provided >> themselves. And that's what I wanted to ask you about the business impact of all this discussion you guys were having is, you know, the cost for bits coming down. The amount of data is increasing faster. You got over the top providers just, you know, picking off the telcos. Telcos can't compete their infrastructures of so hardened. Will this all change that? >> Absolutely So. I think that it has the potential to changing all that. I don't think all the telcos will take advantage of it. Some off them might end up being more traditional and sort of sticking to where they were. But for those that are willing to make the leap, I mean, as an example, Vodafone is a customer that has actually gone in with this architecture with us. A. T and T is working with us with the Vela Cloud software from via Mary bringing a new form off branch computer branch connectivity through SD man. So these are all examples of telcos that are actually leading the >> charter. But if they don't lean in, they have this vision there either. Well, it's either because they're protected by their local government or they're going to go out of business. No, I would >> agree. I mean, it's sort of silly from our standpoint to be talking about five G and not thinking about this as the architecture for five, right? I mean, if you only focus on radio waves and your wireless network that's like a part of the problem, but you really need to have the ability to deploy these agile service's. Otherwise, you could get killed by >> the O. T. T. So how do you compete against the competition? What's the business plan that you have? C. Five G? We see that in the horizon that's evolving its evolution, so to speak. Pun intended on edge is certainly very relevant for enterprises, whether it's manufacturing or industrial or just people. Yeah, >> I'd say there are two things. One is a CZ. I'm sure you heard from folks at GM, where our vision is this notion of any any anywhere. We've talked about any cloud at any application that any device. So that becomes one of the strongest different chaining factors in terms of what V Amir can bring. Tow any of our customers compared to the competition, right? Nobody can actually make it really across these dimensions. If you then take that architecture and use that to deploy a telco cloud, we're now making investments that are telco specific that allow the tailcoat than take this and make the most out of it. As an example, we're investing in open stack we're investing in container ization. We just bought a company called Johanna and Johanna essentially allows the operator to go and provide metrics from their radio access networks. Use at that to train a learning engine and then feed that back so that the operator can tune their network to get like fewer dropped calls in the region. So if you combined technology like that with this, any cloud infrastructure that we have underneath that that's the best in class deployment methodology for any. Tell Cho to deploy >> five. Your business model metrics for you internally is get Maur deployments. What stage of development five G certainly is in a certain stage, but you know, edges there. Where is the Progress bar? If you're the kind of oh, >> it's actually mold phenomenally. I mean, every time we have conversations like this, we're moving about further in terms off. How many carriers are deploying on via mare on a telco cloud Architecture? How many subscribers are basically being serviced by an architectural like this? And then how many network functions are being deployed? Two of'em air architecture. So we are over 100 carriers now we are over. We have about 800 million subscribers, or so that about globally are being serviced by a V M Air supported network. On then, we have essentially over 120 network functions that >> are operating on top of you. Usually bring in all the same stuff that's announced that the show that stuff's gonna fold into the operating platform or Joe Chuckles have different requirements. Off course. It's >> both. We take the best of what is there from the sort of overall vehement factory and then as a team. My team then builds other widgets on top that are telco specific. >> How big is your your tam up Terry for you? >> Well, so the best way to look at it as telcos globally spend about a trillion dollars in capital investment and then probably to X that in terms of their operating expenditure over the course off all of the things that they do right? And out of that, I would say probably a tent off that. So if you take about $100 billion opportunity, opens itself up toe infrastructure investment in terms off the kinds of things that we're talking about now, they're not gonna move from like 0 200 of course. So if you take some period of time, I would say good subset off that $100 billion opportunity is gonna open itself up >> to it. This kind of business cases, eliminating that two x factor, at least reducing it. Is that exactly? That's not just that Service is that's, >> ah, cost reduction alternative. But then you have the ability to go deploy. Service is faster, so it's really a combination off both sort of carrot and the stick, right? I mean, the character here is the ability to go monetize More new service is with five G faster. The stick is that if you don't do it, Ortiz will get there faster and your costs off. Deploying your simple service is will increase his >> telcos, in your opinion, have what they have to do to get the DNA chops to actually be able to compete with the over to top OT T providers and be more agile. I mean, it's obviously sort of new skills that they have to bring in a new talent. Yeah, >> well, first and foremost, they need toe get to a point where their infrastructure is agile and they get into a business model off knowing how to monetize that agile infrastructure. So, for example, they could offer network as a service on a consume as you go basis. They could offer a platform as a service on top off that network in order for or titties to go build applications so they can do Rev shares with the forties. Or they could have offer. Full service is where they could go in and say, We are the conferencing provider for videoconferencing for enterprises. I mean, these are all models that >> the great conversation love to do. Your Palo Alto? Yes. Have you in our studio want to do more of a deep dive? We love the serious, super provocative, and it's important Final question for you. Though Pat Sr here on the Cube, lay asked him, Look back in the past 10 years. Yeah, look back in the next 10 years. What waves should everyone be riding? He said three things that working security and kubernetes humans being number one actually promoting convinced everyone for the ride, for obvious reasons, clouded. I get that, but networking Yeah, that's your world. That's changing. Which which events do you go to where you meet your audience out there in the telco because networking is a telco fundamental thing. Sure moving packets around. This is a big thing, >> eh? So far, operator networking related stuff, I would say. I mean the biggest shows that for us would be Mobile World Congress as an example, right? It's where many operators are. But I would also say that when we do our own events like this is the ember. But the movie forums in in Asia packers an example. A lot of the telco conversations I find they are best done one on one before. Yeah, the forums are our forums, but we will goto have one on one conversations or small group conversations >> with our telco customers. Locals Shakaar Thanks for spending. You get a hard stop. Very busy. >> Thank you. Thanks for having me >> here, Sugar Yaar, Who's here inside the Cube bringing down five G, which is still pregame. A few winning something first thing is gonna come up soon, but edges super hot. A lot of telco customers be back with more live coverage of the emerald after this short break