>> Live from London, England, it's theCUBE covering .NEXT Conference Europe 2018 brought to you by Nutanix. >> Welcome back to theCUBE's coverage of Nutanix's .NEXT 2018 here in London, England. I'm Stu Miniman, my co-host is Joep Piscaer. 3500 here in attendance. Actually in the closing keynote, we just listened to Dr. Jane Goodall talk about her life's work, her next, where she's going. Really powerful content here to help round out what we're doing. We're actually really thrilled to have as our penultimate guest to the program Chetan Conikee who is the founder and CTO of ShiftLeft.io, a customer of Nutanix based out in San Francisco. Thanks so much for joining us. >> Thank you very much for having me Stu and Joep, pleasure. >> So Chetan, ShiftLeft.io, tell us a little bit about that. We love to hear from founders. What was the why, what did you see out there? What were you looking to do and then we'll get into it from there. >> Absolutely. We founded ShiftLeft back in December 2016. ShiftLeft is a venture-backed application security company. I co-founded ShiftLeft with the Chief Products Officer of FireEye and one of the core architects at Google. So our reason and emphasis to build out the security company was to essentially make security relevant to what they call as cloud-native applications. So ShiftLeft by virtue of the word meaning shift security to the left is bring securities awareness to the early stages of the software development lifecycle. As engineers write code, we have built a system that in a matter of minutes converts code to a graph, a graph akin to a social network. Almost like a social network graph except that it's connecting all the functions and variables in your code that represent the application. Now using that graph, we extract vulnerabilities that might exist in the code. Now as we know, engineers are focused on velocity, developing software and servicing their customers. So often security gets left behind, which is why we have built this autonomous agent that takes the data that we extracted during coding and protect the application in Runtime from imminent threats. >> Okay, we could spend an hour talking about this. Security is one of the hottest spaces, one of the biggest challenges in kind of modernizing this multi-cloud era, cloud-native absolutely. Maybe you'll be at theCUBE Con show in a couple weeks. We can talk even more about that because oh boy, so much to go there but you're a startup and what brings you to Nutanix is I guess the question. Come on, cloud-native, you should be born in the cloud. You're venture-backed, they probably don't want you spending lots of money on infrastructure. So maybe connect the dots with us as to how you ended up with Nutanix. >> Absolutely. The core ethos of ShiftLeft is observing, observing threats in real time and observing vulnerabilities that might exist in code. Observing means we have to make sure that our own infrastructure is protected from threats and at the same time we provide a high accessibility to our customers. Which means that we have to observe our own infrastructure which is why we subscribed early on to a Nutanix product called Epoch. Because the core essence of Epoch is to provide observability to infrastructure. Our infrastructure is very complex because every time engineers write code and commit code into GitHub or any other so-called management system, we react to that and at the same time if any threats are applied, when they deploy that code in production, we react to that as well. So it is important for us to maintain our uptime which is why we use Epoch to continuously observe our system for faults or any threats applied upon our own system and Epoch provides us that service, that service because our infrastructure is very complex. It is comprised of at least about 80 to 100 micro-services deployed in a cloud-native infrastructure. Now all these micro-services are working in concert with each other every time it receives an event, an event of a code check-in from a customer's ecosystem or any threats applied to our customers' infrastructure deployed in their private data centers or their cloud infrastructures. >> So let me get this right. You're a Nutanix customer but I'm guessing you're not the typical customer, right? You are not running their appliance in the data center but you're using different products. So I hear you mentioned Epoch which is observability. So that gives you insight into the system you are running. But to clarify, you're not running Nutanix in your data center? >> Absolutely, we are a cloud-native company. Our infrastructure entirely runs on Masels and Kubernetes which is deployed on AWS, Azure and GCP. So we are a multi-hybrid cloud ecosystem and Nutanix Epoch product is agnostic of the servers because it's a software-defined product that enables us to place hooks in the appropriate places of our software-defined or our software stack and then provide us the necessary observability. Observability from the perspective of latency, throughput or essentially any impact induced upon our infrastructure. >> So you are using it to monitor the sort of applications you're running in micro-services. So this is not even about infrastructure monitoring. This is about your application, it's uptime, error rates, thresholds, stuff like that. >> Absolutely because our system is comprised of a dense micro-service mesh which means that if one micro-service is down, it impacts a set of other micro-services which in turn impacts the customer as well. So what we do is try to identify cause and effect, correlate events and understand this dense and complex infrastructure. Nutanix Epoch has this cloud map feature that enabled us to dynamically plot the entire map of our infrastructure. This is almost akin to Google Maps because you can plot a from and to destination but upon that you might have traffic contention, accidents, tolls and everything else you can think of. So this is a similar situation with very dense and complex infrastructure as well, meaning if one service is down, it has this ripple side effect on other services as well. >> Yeah, I'm actually glad we got to interview you towards the end of our coverage here because one of the things we've been looking at is Nutanix has gone from basically two products to now they have a much broader portfolio. Some of those have been organically and some have been through acquisition. So Epoch which I believe is now under the Xi family, so Xi Epoch, I interviewed back in New Orleans, it was Netsil, Netsil came in through the acquisition. So I believe you've been using it since it was Netsil. >> Absolutely. >> What have you seen? I love kinda your outside viewpoint as to what's that meant to the product? Besides being renamed, what's the same, what's different and how do you see that impacting Epoch going forward? >> Absolutely, great question. For the most part the core product hasn't changed as much. The vision has always been carried on from what it used to be to what it is today. But the product has improved significantly. The user experience has improved significantly and now what they have is the foundation of Nutanix which is critical because there are various other product lines in Nutanix that can serve us better as well along with Epoch and we are looking forward to understanding what Beam is, what X-Ray is and there are various other product lines along with what we are already using at this point. >> Great, so I'm curious your experience here at the show. What brought you to the show? What conversations have you been having with your peers? We talked to Nutanix about what they're doing with the developers and about the cloud native space. How are they doing? You live in that space. How has Nutanix positioned themselves? >> Absolutely, I've been tracking Dheeraj and his crew for quite some time. I think they're doing a phenomenal job moving up the stack because eventually, being cloud native is critical at this point given that the majority of the new SMBs and SMEs are deploying in the cloud. So if Nutanix joins that bandwagon, it makes it relatively easy for Enterprise customers who have deployed in their own private data centers to cloud burst into Nutanix Enterprise Cloud. So over the past two days, the energy has been amazing. I presented with the Epoch crew and we got an amazing response, got to listen to customers. Their curiosity to adopting Epoch, given that they have been using Nutanix and also bursting into cloud native ecosystems as well which is why they want to understand and observe how their workloads are performing in the cloud. So very excited and looking forward to the future for the most part. >> So looking at your product, you deliver it, as I said service. You have software developers that develop that software and based on the announcements Nutanix has made in the last couple of days with Carbon and being able to develop cloud native apps, will that impact how you develop software or how you look at Nutanix as a partner for your company? >> We are growing at a very steady state and given that our core focus is security, some of our customers are on Wall Street which means that they have to ensure that they are deploying or subscribing to a service that has guarantees of its uptime and also that data is effectively protected. So we have commenced our journey as a cloud native company but that shouldn't impede us from moving into a private data center as well because our software fabric can be deployed both in a cloud native ecosystem and also on a private DC as well. So we're looking forward to working with Nutanix as a partner in the future as well if the opportunity permits. >> Yeah, so with the little time we have left, I want to get your viewpoint, talk to us about the security environment today. I'm an infrastructure guy by background and lived through, you've talked about virtualization. Been watching the containerization space, IOT greater increasing the surface area of everything. I know serverless is a whole can of worms as to how that fits in. So as we look to 2019 and going forward, what excites you and what worries you about the security space? >> What excites me is that, you know the surface is essentially getting abstracted. Back almost two decades ago, we were dealing with deploying in physical data centers on physical hosts. That transcended to VMs and then moved to Docker Unikernels and now we are speaking serverless. So in relatively, maybe in a click of a button or a single script, someone can deploy an application and that application can be scaled in a matter of minutes or seconds. So that's very exciting but what worries me is also that with the velocity and complexity, the risk is also getting amplified which means that applications are the target du jour. Applications were always the target du jour and they will continue to be as well because as engineers code even more faster, they will essentially always leave security behind. So it is important to understand the attack surface of the application because if we examine most of the recent attacks like Struts Equifax, the application was compromised and then the attacker laterally moved from host to host until they acquired or hit that asset, which is the data. So it is important to write secure software from the get-go and at the same time it is important to observe how a threat imposed by an adversarial entity correlates to a vulnerability. Which means that we have to be upfront and always observe our security from the very beginning of the software development lifecycle. So it equally excites me and worries me, which is why we decided to found ShiftLeft. >> All right, really appreciate getting to hear about ShiftLeft and your journey and what you're doing with Epoch, so thanks so much for joining us. >> Absolutely. >> And thank you for joining us. We'll be back with more coverage here from Butanix .NEXT 2018 in London, England. Thanks for watching theCUBE. >> Thank you. (up tempo electronic tones) >> Hi I'm John Walls, I've been with theCUBE for a couple of years serving as a host here on our broadcast, our flagship broadcast on SiliconANGLE TV. I like to think about the how's and the why's and the what's of technology. How does it work, why does it matter? What is it doing for end users? When I think about what theCUBE does and what it means, to me it's an off the chart benefit. The value is just immense because when theCUBE shows up, it puts a stamp of approval on your event that says man, you've arrived. I know you can't be everywhere. You'd like to be but what theCUBE--

>> Livefrom London, England, it's theCUBE, covering .Next Conference Europe 2018. Brought to you by Nutanix. >> Welcome back to London, England. This is theCUBE's exclusive coverage of Nutanix .Next 2018 Europe. My name's Stu Miniman. My cohost for these two days of coverage has been Joep Piscaer. And happy to welcome to the program, two first (mumbles). We're gonna talk about culture and people. To my right is Rukmini Sivaraman, who is the vice president of business operations and chief of staff to the CEO. And sitting next to her is Prabha Krishna, who is the senior vice president of people and places, both of them with Nutanix. Ladies, thank you so much for joining us. >> Thank you. >> Thank you for having us. >> All right so, we've been covering Nutanix for a long time. I've been to every one of the shows. I start out, I guess... Dheeraj talked for a long time about the three Hs. It was humble, hungry, and honest, if I got those right. And more recently, it was with heart. Actually sitting not too far behind us, there's a big booth for heart. So, the culture of the company is something that is tied with the founders. We've watched that growth. I've watched the company go from about 35 people to over 3500 people. So, having those core principles is something that we look at in companies. Why don't we start? If you could both just give quick introduction, what brought you to Nutanix, and what your role is there. >> Sure, I've been at Nutanix a little over 18 months and I started out as an engineer, then went to finance and investment banking of all things, was at Goldman for almost a decade. And Nutanix is a client of Goldman's back form the IPO, and I had heard great things about the company, of course, but wasn't intending to leave Goldman Sachs. But when I got introduced to Dheeraj, there was so much that was compelling about the company, the disruption, the category-defining, category-creating kind of position that the company had. And more importantly, I think, where we were going, which was just phenomenal. it was ambitious, it was bold. And I think for me, it's always been about the people. We spend a lot of time at work and it's really important to feel that connection to the people. And that was really important 'cause I had to pick up and move from New York City to the Bay Area to make this move. And we can talk more about this, but to me the people were, like I said, ambitious, but they were also grounded. And I see it and after being at Nutanix now, it's phenomenal how truly humble the people are and that's always struck me as a great combination. You want ambition and challenging problems to solve, but you also want humility and people that you can relate to. So that's really what got me to Nutanix. >> Please. >> Yeah so, I've actually been following Nutanix for quite a while. It's a company that addresses a space that's very underserved and has created a suite of products that's nothing short of amazing for our customers, entirely focused on our customer base. But for me, the most interesting thing was, it's a company that is as right-brained as it is left-brained. I've actually spent 19 years of my career in engineering and made a career switch into the people side. And it's one of the few companies where that fit is almost perfect. And once I met our founder and our CEO, Dheeraj, this became even more obvious. So. I'm actually very happy to be here. I've been here for about four months now, and it's already very clearly the beginning of a very, very exciting journey. >> Yeah, interesting, both of you kind of making those shifts. Talk a little bit about that, talk about... People from outside of Silicon Valley, always, it's like, "Oh, there's the one where they have the playground "and free meals and free drinks." And it's like, "Yeah, that's because you do the analysis "and if they'll work 18 hours a day, "if we can keep them there, "maybe even put a cot in the office, that's good." I haven't seen cots in the office when I go to Nutanix, but hey are really nice offices. And even on the east coast, we're tartin' to change and see some of those things there. Maybe give us a little bit of insight as to that culture. And Nutanix is much more than just Silicon Valley based now. >> That's right. So we are truly a global organization. And we decided very early on that we wanted to be a global organization, but we're also thinking local. All right, so we do have multiple offices within the US, in Durham and Seattle and other places, but we're also truly global. Our Bangalore office, in India we have a big presence. And so for us what that means is there's people from different perspectives and background. But ultimately, it's our sort of, like you said, the four values, but also our culture principles that we've qualified fairly recently that bind us. And that really help us move forward in the same direction and pointing that same direction, and growing the same way. So that has been a phenomenal to see and it's one that I think we've very deliberately qualified more recently. It's sort of the how, how do we behave that embodies those four values that you talked about. >> So Prabha, so you're a new hire, right? >> Yes. >> You haven't been with Nutanix as much. So while we're talking on the subject, what's your personal experience coming into Nutanix? Is it true what you're talking about? How does it work in real life, in practice? >> No, absolutely. All companies state a culture. All companies, I think, in this day and age at least and definitely in Silicon Valley, are very clear about having a specific culture. But the key, as far as I'm concerned, and the strength of a company is how they live and breathe their culture every single day, in every decision, and every action, right. In every difficult balance that they need to meet, that's where the culture really shows up. And at Nutanix, it is... How shall I put it? It's really the core of every single thing we do. It's the core of how we interact. It's the core of how we grow. It's the core of how we recruit, how we define our organizations. And frankly, I have to say, I have been in a lot of organizations and a lot of organizations over time, actually, and particularly as they reach our size... We're a bit at sort of an inflection point, if you will, in terms of size. Our growth has definitely been very, very quick and continues to accelerate. Having that culture being something that we really live is the most important thing. And it is what will allow us to continue to innovate and continue to succeed all over the globe as Rukmini just explained. For me, it's quite extraordinary to see it in action. >> Yeah, that's really interesting because, one, our industry has some challenges hiring. It's finding the right skillset there. If you match that with a culture, what challenge are there? What are you looking for? What is the fit from the outside to match what you're looking for? >> Yeah, I'm happy to address a little bit. So recruiting for us is everything. We want to bring in the best. We wanna bring in the brightest and we wanna bring in folks who really value our culture and our values, who really understand them. And again, are willing to live them every single day. So we do look for great talent all over the planet because great talent exists all over the planet. This is absolutely fundamental to our growth. We are an infrastructure company and we offer, actually, very interesting work for anyone who is interested in the engineering side, who is interested in the sales side, who's interested in market. And for me, the most interesting part in the roles we have, and frankly the most unusual piece if you will, is we offer opportunities to build things from scratch. So, the creative side, the creative mind is really what we encourage. And it shows up in every single aspect of the way we're structured. So, the diversity of thought, the diversity of background, the diversity of... Whether it's gender or location, philosophies, and all of that, is really what we want to bring in and what will allow us to continue to create these products that are quite unique. >> If I may add to that, we talk internally a lot about the founder's mentality. It's a concept, a framework that was developed by Bain & Company and the gist of it is as follows: When you think about great disruptive startups, they're on this rocket ship, accelerating growth. And then they get to a certain size, so they become a little bigger. And they get enjoy the benefits of scale, economies of scale, and that's a good thing. But the best companies take that and then they enjoy those benefits, but they then also don't lose what got them there in the first place, which is the innovation, the ability to disrupt and look around corners, and all of that. So we want the best of both worlds. And in this framework, it's called a scaled insurgent. So you're scaled, but you're still an insurgency. And that is important to us. Folks that can sort of balance the two, really make sure that we are benefiting from one, but also not losing sight of the other. And it's a paradox in many ways and we believe in embracing those paradoxes. And folks who can sort of balance those two would be really a great fit. >> And so, if you're growing that fast, I can imagine that keeping the balance between culture and engineering, and you're growing, that's difficult. How does Nutanix handle that paradox? >> I think it goes back to what Prabha was saying. And for us, culture and the way we behave is like oxygen. So it almost fuels the fire as opposed to the other way around or having to do two things at once. And that's how we've thought about it. And the principles, when we thought about them and conceived them, it was the same idea, which is how can this just be the way we conduct ourselves we treat our customers, we treat each other, we treat our partners? How can it just become the way we do business? And so far, that's worked well for us. >> So one of my favorite culture principles, actually, is comfortable being uncomfortable. And there's a real reason that because given our scale, given the way we wanna grow, and given the fact that we want to preserve that innovative seed at every step, for us, every single day is about balancing opposing forces. Do we invest in the short term? Do we invest in the long term? Do we manage locally? Do we manage more globally? Do we centralize things, do we not? Do we distribute, right? Every single day is about balancing those kinds of things and it's that balance that encourages the creativity in every single one of us. So, the very fact that we've sort of embodied that in a culture principle, really is a very strong indication of what we look for and what we wanna be. >> Right, with the time that we have left, I wondering if you could talk about both at the show and beyond the show, what things Nutanix is doing. Think tech for good, think about the charitable things. Some of speakers I've seen at these shows... Mick Ebeling is one that stood out from a previous show. On talking about tech for good, Dr. Jane Goodall, who I know spoke at a women's lunch event and in the keynote here today, is just so inspiring. As someone that loves science and animals, it was very powerful. You've got the .heart initiatives here. Maybe help for those that don't know here and what else you're doing around the globe and around the year. >> Did you wanna go first? >> Yeah, so giving back is very important for us. It's very fundamental. Gratitude, understanding where we all came from, where we are, and where we wanna go, and not losing ourselves, that's really the key of, I think, any type of success, frankly. So we have an organization around that. It's a very active organization, we all participate. And the company is very much involved in as many different types of charities as possible. It also feeds into the kinds of sourcing that we do when every bring people in. We look for folks who care. We care very much about our people. The amount of attention and the amount of just knowledge and thought that goes into structuring our organization is very much reflective of that sense of giving back and gratitude as well. Our employees are everything and the folks around us who are in need are also everything. It sort of goes together, if you will. So basically to us, it's a hugely, hugely important effort and we'll continue investing in those kinds of things as we go forward. >> I think one thing I would add is as you saw at the end of the closing keynote, I think we announced or shared that thanks to everyone here, really all the folks here, our customers, partners, all of our participants, we were able to collect over 10,000 pounds for .heart and that is phenomenal. We're forever grateful to our community to be able to do things like that. We also partner with organizations like Girls in Tech, which is doing great work on making sure that we are bringing all kinds of talent, as Prabha said, to the table. We believe there's great people everywhere. And so, how do we harness the power of all of those initiatives? >> All right, those are some great examples. And Prabha, to your point, I think that that individual touch to your employees, that also translates to the customer side. Something I hear from Nutanix customers is despite the fact how large you've grown and how many customers you have, they feel that they get that individual attention. So thank you so much for sharing all of the updates. Wish you both the best of luck in your continued journey. And we wanna thank our community, of course, for tuning in to our coverage. It is truly our pleasure to help document what's happening out in the industry, hopefully be a surrogate for you, to ask the questions that you wanna hear and help you along your journeys. My name's Stu Miniman. My first European cohost who also did a segment in Dutch, Joep Piscaer, Can you goodbye in Dutch for us, Joep? >> (Dutch). >> All right, I'll have to learn that one some time because, unfortunately, my english and speaking numbers in a couple of different languages is where I'm a little bit limited. But once again, thanks for watching. Turn to thecube.net to catch all of the replays from this show as well as all the shows that we will be at. Including, next year, Nutanix will be at Anaheim and the spring and Copenhagen in the fall. And our team look forward to bringing you coverage from both of those. So once again, thank you for watching theCUBE. >> Thank you. (slick electronic music) >> Hi, I'm John Wallis. I've been with theCUBE for a couple years serving as a host here on our broadcast, our flagship broadcast on SiliconANGLE TV. I like to think about the hows and the whys, and the whats of technology. How's it work? Why does it matter? What is it doing for end users? When I think about theCUBE does and what it means, to me, it's an ...

>> Announcer: Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2018. Brought to you by Dell EMC and its ecosystem partners. (upbeat music) >> Welcome back to the Sands, we are live here on theCUBE, the flagship broadcast of SiliconANGLE TV, along with John Troyer with whom I've yet to be teamed up this week. Good to see you John. >> Nice to be here John. >> I'm John Walls and we're joined by Chhandomay Mandal who is a Director of Marketing at Dell EMC. Chhandomay, good to see you sir. >> Happy to be here. >> Nice to have you back on theCUBE. >> Thank you. >> I know it's been a busy week for you, a great week from what I've heard from many. So first off, before we jump in, we're talking a lot about storage here. But first, your overview, what you've heard the vibe of the show and and kind of what your takeaway is going to be when you head home. >> So, this has been a great show. We have announced a lot of new products and I have been doing a lot of breakout sessions and customer meetings. And the customers are excited in terms of the depth of portfolio we have to offer, how we are helping them in their digital transformation journey along with the IT transformation that is fueling this digital transformation. For me personally, the takeaway is the product announcements we made in terms of the high-end storage, I cover high end storage marketing. Both Dell EMC PowerMax, are brand new, entry level design product line that we announced yesterday as well as the new enhancements we have done for XtremIO X2. This has been, like an exciting week. Happy to meet like an great number of customers both in meetings as well as in breakout sessions. So overall, I feel great, we accomplished a lot of things and I look forward seeing these customers taking their next steps in their digital transformation journey and happy to be part of their transformation. >> So, we had Caitlin Gordon on yesterday and she couldn't stop smiling about the announcement. When she started going through all the performance metrics 10 million IOPS, she's like, 2X, we're just blowing people away right now, and she's going on and on. So, Chhand run through some of that for us and tell us about about the product a little bit and what you think is revolutionary about it. >> Dell EMC PowerMax is our flagship property in the high end storage. If I were to characterize it in three words, it is fast, it is smart and it is efficient. As far as fast goes, it can deliver, as Caitlin said, up to ten million IOPS, 150 gigabytes per second throughput with very minimal latency, less than 300 microseconds. This is all backed by the end-to-end NVMe design that we have done, so this NVMe enabled architecture take away the limitations that we used to see from SAS, not only that, it is not just NVMe but also the storage class memory drive that is the next generation. It is this area, users both SEM and NVMe, so that's the first part. The next part is it's smart. It has an built in machine learning engine that actually analyzes 40 million data, in real time and makes 60 billion decisions per day to optimize data placements and making sure we are delivering the service levels for all different applications. And the last part is efficiency. We have introduced inline deduplication with hardware assisted feature. So now it has both compression and deduplication, giving a lot of capacity settings to our customers while not impacting the performance at all. >> You know Chhandomay, I was actually just speaking with Sean Wedige from Rackspace talking about that. The thing that impressed him the most, we actually skipped over the NVMe and we skipped over a lot of the parts inside of it, because that's the some of the performance that they needed for their service provider workload. But they're, one of the highest things that they valued out of it was the operational efficiency. In fact, I was sitting with some of the team yesterday talking to them and with a couple of storage admins and they they were swapping war stories about like, step 143 of 300 and trying to, as you had all the knobs and the scripts and the CLI and that's gone. A lot of that is gone. And whether you call it AI or or the machine, or deep learning, but the operational efficiencies that have now, in this next generation, of now called PowerMax, right, that seemed to be impressive, one of them one of the bigger things that impressed him. I don't want to say he wasn't impressed about the performance numbers. So, as you talk to customers this week has that really hit home? >> Absolutely, the operational efficiency, the effects reductions are like key to the customers enabling their IT transformation. Leading to this digital transformation. Now, how does this play into all the machine learning and AI techniques that this platform is built upon? So if you take a look at the workloads that the customers are running today, it's still enterprise workloads. 80% of it is like how traditional workloads, like SAP, Oracle, all of these. But then, there is the modern applications that are built on real-time data analysis. It feeds into the data, it analyzes it to make better decisions for the customers. Taking proactive actions. Delivering and using those data analysis as their computing advantage. But that is today only like say 20% of the work. Now, it is predicted that over the next three years to five years, that ratio is going to flip. So, it will be 20% of the traditional workloads and 80% is this modern applications like data generated from IoT, AI, all those things. Now how does PowerMax help in this scenario, so here comes that built in machine learning engine. It actually learns from the patterns in the data. So today it can analyze the data and do this optimize placement between storage class memory and NVMe SSDs based on those 80/20 rule. But then, as the workloads are getting adopted this is also learning from these patterns in data and adapting itself running these algorithms to make sure, even in future, when the workload percentage changes it is changing its algorithms and providing the same level of service. And not just data placement, this is service level agreements so our PowerMax customer can say for this application I need this much of latency. So, all these AI and machine learning techniques are being applied there. So as they are changing this service level directions it is adapting and making sure, whatever application requires whatever response times we are able to deliver it. And that's a huge operational benefit because the administrators do not need to tune and fiddle, figure out, how to get there. It is automatic, it is built-in, thanks to the built-in AI engine here. >> Chhandomay, there's now a generation of storage admins that now, needs to up level their jobs, right. Because that they used to have a real, it was tedious, talking to them. I'm actually kind of curious also, the rest of how this the portfolio fits together. In the sense of if you look at the industry, maybe a few years back, you almost would have kind of over fitted on on hyper-converged and you would have thought well, maybe one size does fit all and well that's the future. But it turns out, in the meantime, Dell EMC had this portfolio and there was a high, the high end that's been there all along and in fitting for appropriate workloads right. So, I'm just kind of curious Chhandomay, take this over to someone maybe XtremIO or what as you talk to the customers, when they talk to you, what apps and workloads do you then talk to them about? >> You bring up a very good and pertinent question which our customers ask us all the time. In this example let's take both our high-end products, we have Dell EMC PowerMax, we have Dell EMC XtremIO X2. Both are all flash arrays as great characteristics. Which is applicable where, right? So the first thing I want to say for all the customers that are running ultimate mission critical workloads where they need RPOs and RTOs, pretty much like instant, it cannot go down at any point in time and I'm not talking about just the like storage but also all the applications that is running. So SRDF, our remote replication technology within the PowerMax product that is the gold standard in the industry, delivering like six-nines availability for many many years. So, couple that with massive workload consolidation. For example, you are a big hospital. You are running your epic medical data records systems, it's not just like epic databases, but also your VDI desktops, your other virtual workloads. All you can consolidate in a very small footprint with our PowerMax platform. The third thing is, it's now end-to-end NVMe design. Right now, we are using dual ported NVMe SSDs. So customers who need that level of very high performance in like less than 300 microsecond latency with all this like real-time apps and business applications together. So that's the customer segment who finds our PowerMax as the appropriate platform. Now, XtremIO also a purpose-built, all flash array design from ground up for the flash media. So, what's the benefit there? Now here, again, what we are doing with XtremIO, we are offering this enterprise capabilities at the mid-range price. We actually introduced a new XtremIO X-Brick model to bring down the cost. It is 55% lower entry point than it used to be in the previous generation. We are going to sell that mid-market customers with enterprise capabilities with this new XtremIO X-Brick model. The way XtremIOs are always in memory, metadata centric architecture works out, it can deliver very high performance, consistently low latency, but also, it has integrated copy data management built in. What does it play? Think of a database where like for every database there are, say, five to 10 copies for disk and dev, backup, reporting, all of those things. Now, wherever you have massive amount of copies, XtremIO is a very good platform because you can actually bring those copies and run workloads on the copies themselves. You get enormous consolidation and capacity footprint in that type of situations. The last thing is workloads that has very high data reduction ratios. Think of it, virtual desktops or VDI. So here you have like thousands of users, running their desktops in a data center and but inherently like all the bases are the same. So here is like a lot of data reduction capabilities that come into picture and XtremIO's always in-memory, metadata centric architecture and this in line, all the time de-dup and compression helps in great amount of capacity savings with the data reduction technologies. For the workloads, where it is critical to have data reduction and it's the data itself lends to data capacity servings that's why it's the best in class. So, that's kind of like, give you a perspective of how these products complement each other. >> I know it's been a great week for you, a busy week for you. >> Absolutely. >> Breakout sessions, two CUBE interviews, client meetings, what have you, take a break. >> It's been a great show, it was a pleasure here talking to you. >> Thanks for joining us again and sharing the PowerMax story, it's a good one and I'm sure it's going to give you a lot of success down the road at Dell EMC. Back with more, you are watching Dell Technologies World 2018 coverage, live on theCUBE from Las Vegas. (upbeat music)

>> Announcer: Live from Washington DC, it's theCUBE. Covering .conf2017. Brought to you by Splunk. >> Welcome back here on theCUBE, we're in Washington DC at the Walter Washington Convention Center, day one of .conf2017, Splunk's big get together here with some 7,000 plus attendees, 65 countries, and traveled something like some 30 million miles to get here? Incredible turn out, it really is impressive, and a great day we're having here on theCUBE. Which of course is the flagship broadcast of SiliconANGLE TV. Joining me is Jeff Chancey, who is a managing director within Accenture Technology Ecosystem and Ventures. Jeff, good to see you here in Washington, welcome to town. >> Likewise, thank you very much. Excited to be here. >> Yeah, it's certainly been a great day, great first day, let's talk about your partnership, Accenture with Splunk, and what do you see the future for the partnership, how is it evolving? >> Well it's interesting you might ask that, it's probably the $64,000 question. The future of the partnership is indeed exciting. Let me kind of articulate what I mean by that. We Accenture, we're a large professional services firm, our competencies around Accenture Strategy, Accenture Consulting, Accenture Digital Technology Operations, and Accenture Security. What makes the partnership with Splunk so interesting and unique, and also very dynamic, is the fact that Splunk as a transformational data platform applies across the full spectrum of business that Accenture does. So if you can bring the power of an Accenture and our presence in the market, across all the different industry verticals, all the horizontals, and the power of a transformational data engine like Splunk together, you could say it should be a very exciting future indeed. Probably our biggest objective is to really help, in Accenture we call it rotating to the new. So rotating to new technology, and Splunk is definitely part of our agenda to rotate to the new. We are looking to help our clients become data and digital driven businesses, by leveraging the enormous volumes of data that keep exponentially getting generated every single day, through connected devices, applications, infrastructure, across the board, the Internet of Things, everything is now connected, and everything is spooling data. So, we know that our enterprise executive clients, they're all struggling with this challenge that says, "how do I not only, get value out of my data, how do I solve this challenge with the exponential generation of data, so that I don't just survive in the market, but I win?" This is really what we're after as a partnership is that step change transformational agenda, with our enterprise clients. >> So you have this budding partnership, you've talked about all these fantastic opportunities and great potentials and whatever, is it possible, can you focus on one thing that you're most excited about when it comes to the partnership? >> The one thing I would say we're most excited about right now is our security agenda. We all know where Splunk sits, in terms of the security market. Accenture Security, our very first joint market offering is the Cyberdefense Engine, formally known as, our Cyberdefense Platform. That joint market offering stands to be, really what credentializes the partnership between Accenture and Splunk in the market. Very exciting. Every customer needs to mitigate risk, they must protect their enterprises, they're breaches happening every single day, it's in the news, and Splunk is a powerful technology to help our clients protect their enterprises. So, what you want to do, with Accenture and Splunk is we want to help our clients take out cost, take out cost out of the back office, to drive up their profitability and drive down their cost to serve their customers, we want to help them protect their enterprise through security, and then we want to help them drive step change value for their customers and for them through Internet of Things, and business analytics, automating away the work, and driving that value in the market. >> You're talking about this vast array of services, that you could provide, we know about your relationship with Splunk, you've got hordes and hordes of machine data right, pouring in all the time, how are your clients putting all that together, how are -- maybe some of the innovative ways that they're pulling these various resources and sources together and putting them to use? >> What our clients and what we're observing with our clients, is, with their data, they're data tends to reside in multiple silos, within the enterprise. This is normal, this is natural. What we can help do with a powerful technology like Splunk, is aggregate that data across all the different silos and bring it together in a single view. That not only helps the operations staff, as we said before, protecting the enterprise through security, and driving that value through business analytics, real time digital marketing, using geolocation services, for example. One of our exciting offerings is in the retail industry vertical. We're leveraging the power of Splunk to understand through Point of Sale data what product is going out the door, in say, a store operations environment, and also what inventory is coming through the back door, and triangulating that with the real time rate at which product is leaving the shelves, being able to help those retail customers actually do real time order management and trigger those events in real time. because if you're a retail custoner, the last thing you want to do is have products not on the shelf that your customers want to buy, and in the case of a grocery store for example, you don't want to have, your fresh foods spoil before you have a chance to sell it. So if you can bring together the dynamics of what's going in and out of the store with customer loyalty programs and geolocations, you can actually real time target those customers when they're in the vicinity of your store, and say, "The broccoli, we're offering you a special. Come in right now -- >> (laughing) >> We'll give you 15% off of broccoli", because we know you're a customer that likes to buy a lot of broccoli. That's a really exciting -- >> Inventory's everything, right? Inventory control. In this case -- >> And really applying it to the entire supply chain, 'cause obviously, the inventory from the manufacturing side, the consumer goods and services side, has to be available, has to be in the warehouses and the distribution centers, so, optimizing that entire, call it material and product movement, from the raw material and the manufacturing all the way to the consumer. >> We've heard a line, I know you have, greater insight, greater value. How are you at Accenture and Splunk bringing that statement to life for me as your customer? >> Clearly, if we can bring the power of data transformation leveraging next generation technologies like Splunk, and I have to say, we as a partnership, we view Splunk as an emerging technology. Not emerging in the sense that it -- doesn't exist yet, I mean they've been around for over a decade now, but emerging onto the world stage to really help power the way businesses drive their business by leveraging all of that data. The secret sauce that Splunk has, is that ability to aggregate that data from multiple disparate sources, and to do that in real time. If we can drive greater insight into the customer's data, we can collectively drive greater value. Interestingly enough, the greater than sign, is a coincidence, it's part of both Splunk and Accenture's logos. >> Yeah right, you both have it working for you, don't you? You're known for vertical industry practices, is there one or a specific vertical that you can think of that maybe where you all have teamed up and that you're creating this interest or some kind of innovative solution that you're able to specifically develop and apply? >> I mentioned retail, and I mentioned security previously. An interesting area that we're getting into now, is in Health and Life Sciences, so healthcare. We want to be able to predict and prevent hospital Code Blue's before they happen. How much would you be able to do that? All of the devices, all the monitors that all the hospitals have, they're all from different manufacturers, they're all spooling data, and most of the hospital staff are using eyes on glass. To understand, we have a Code Blue, you've seen it in the movies, everybody's running to resuscitate and save the patient. What we want to be able to do leveraging Splunk is to apply machine learning and predictive analytics, to understand what the monitors tell us, that in 15 minutes this patient is likely to be a Code Blue, and how do we predict and prevent that from happening in the first place. I really can't think of anything better than figuring out how to leverage technology to save lives. >> Absolutely. Well, if I'm in need, I want you around, okay? (laughing) >> Okay, you got it. >> We got a deal. Jeff Chancey, from Accenture, thanks for being with us here on theCUBE, appreciate the time and wish you success down the road. >> Thank you very much, appreciate it. >> You bet. We'll continue here, from .conf2017, we are live, in our nation's capital, Washington DC.

>> Announcer: Live, from Manhattan. It's theCUBE! Covering AWS Summit New York City 2017. Brought to you by Amazon web services. >> And welcome back here on theCUBE. The flagship broadcast of SiliconANGLE TV where our colleague John Furrier likes to say we extract the signal from the noise. Doing that here at AWS Summit here in midtown along with Stu Miniman. I'm John Walls and we're joined now by Ben Newton who's the analytics lead at Sumo Logic. And I said Ben, what is an analytics lead? If you were to give me the elevator speech on that? You said you're the geek who stays up all night and fiddles with stuff. >> That's why I joined Sumo Logic. I love finding the things that other people didn't find. And when I first joined, I was staying up until 2:00 a.m. every night playing around with the data. My wife started getting worried about me. (laughter) But that was the path that I set on. >> You're the guy that looks at the clouds and sees the man's nose, right? >> Yeah exactly, exactly. >> It's just it's in data that's all. >> Yeah, yeah. >> So I hear this concept. But we'll jump in here about continuous intelligence, right? >> Ben: Yeah. >> It's machine data and there's just this constant stream. I mean, how do you see that? How do you define that? And how does that play with how you, what you do? >> Yeah, no absolutely. So, I've been around a little while. And when I started out, there was a particular set of problems we were trying to solve. You know, we had the $100,000 Sun Microsystem servers. You drop 'em on the floor, somebody gets fired. But it was a very particular problem set. What's happened now is that the market is really changing. And so, the amount of data is just growing exponentially. So I kind of have my own conjoined triangle slide that I like to show people. But basically, things are getting smaller and smaller and smaller. We're going from these monolithic services to microservices, IOT. And the scale is just getting bigger and bigger and bigger. And what that means is that the amount of data being produced is it's bigger than anyone ever imagined. I was just looking up some numbers that Barkley says it's going to be 16 zettabytes. I had to look that up. That's a billion terabytes by 2020. That's like watching the whole Netflix catalog 30 million times. (laughter) That's the amount of data that customers are dealing with and that's what's exciting about this space I think. >> So, I remember at Re:Invent. You see Sumo's like the booth when you walk in. They actually had sumo wrestlers one year. (laughter) Remind me, just wrestling. I've got all that data. How do I take advantage of that? How do I democratize the analytics on data? What are the big challenges? You said customers used to be dropping a server on the floor. How are they getting their arms around this? How are they really leveraging their data? And leveraging analytics more? >> Yeah, I got to wrestle one of those sumos. (laughter) He let me win a little bit. (laughter) And then it was over. >> Did you have to wear the outfit? >> Luckily no. That was good for everybody. Yeah, you know, I think ... A few years ago, it was all about big data. And it was all about how much data they could get in. And I think you saw some announcements from AWS today. Really people are getting their hands around it. Now it's all about fast data. Like what can I do in real time? And that's what people are struggling with. They have this massive amount of data that's just sitting there unused. And people weren't actually getting value out of to drive the business. And that's really the next goal I think over the next few years is how can our customers and these companies get more value out of data they have without having to invest in all this costly infrastructure to do it? >> I think a few years ago, it was big data. I'm going to take the compute and I'm going to move it to the data. >> Yeah. >> Now, last year at Re:Invent, talked to a lot of the companies. They're working with Hadoop and the like, and they said the data lakes are now in the public cloud. >> Ben: Yes. >> But now I've got edge computing. I kind of have the data side, the public cloud, and the edge. And I'm never going to get all my data in the same place so how am I managing all of those various pools of data? >> Ben: Yeah. >> How do I make sure I get the right data in the right place so I can make the decisions that I need to when I need to? >> Yeah, it's a good question. So, a lot of what we're trying to do now is trying to help customers get the data in the way they want it. Just like you said. So, before, it might have been about here's our standard way. And here's our agent. You go install that. Now we're trying to provide ways for them to get the data in they want. We're providing APIs and basically trying to move towards becoming more of a platform. So the customers are sending us with third party tools they like. Because I was talking to one of my developers. And I asked him, if somebody came and said to you, you need to change the way you produce your data to use this product, what is he going to say? And he used a four letter word I can't repeat. That's how they think about it. They don't want to have to change the way they do things. So what we do is we provide lots of different ways of getting from multiple clouds from multiple tools. Open source tools. We don't care. Making it as easy as possible to get the data in. >> You know, if Stu and I were different clients of yours. What matters to Stu is much different that what matters to me, right? So how do you go about helping determine access to data in a context that I want it, >> Ben: Yeah. as opposed to the data that Stu wants at the time that he wants it? Cause it's just not about finding real time stuff, right? It's about also finding value at it. >> Ben: Yeah. >> And helping me put action to it. >> You know absolutely John. So I think there's a couple different ways. One is making it easy to get the data in like we just talked about. Another way is actually building a COSMO that matches how you use the data. The typical way that analytics tools have done it in the past, including us before, was kind of a one size fits all model. So last year we announced our unified logs and metric product which was trying to appeal to long term trending. And so now, what we're moving towards as well is providing a model that allows our customers, we call it cloud flex. It allows them to organize their data in the way that makes the most sense. So, maybe you want to keep your security data for a year. But you want to keep your operational data for seven days. That's fine. But organizing the way that makes most sense to you and match your cost to your data. I mean, this is the path that I think AWS has really set. That we're basically meeting customers where they're at. Allowing them to use it. And the second thing is also making easy for their customers to get to that data. And use it in the way they like. So you can make it easy to get in, cost efficient model, and then make it really easy for the user to get to that data. >> Ben, who are you working with the most? Maybe you're working across all these but Amazon was talking a lot about the data scientist this morning. All the ETL challenges >> Yeah. >> that are happening. I know there's a big boost for developers. I expect there's probably something with Lambda >> Yeah. >> that you're involved in. But what are some of those hot button issues that you're seeing across some of the customer roles? >> Sure, sure. I think one thing where you say that with data scientist. I mean we all know that there's a data scientist shortage. We have data scientists at Sumo Logic. They're hard to find. And so part of this is making it, one of the hot button issues is can I get people that don't have that background access to the data? And so, I may want to geek out and write inquiries and staying up to 2:00 a.m. writing that. Most people don't. That's (mumble), right? Not surprising. >> Stu: Right. >> So, a lot of that is how can you make it easier for our developers for example that have another job to do. This is not their main job. To get access to that data and use it. And so for example, one of the things we've done for customers we did for ourselves at Sumo is even making that data accessible to other parts of the business. So for example, our sales reps at Sumo Logic actually use that data to drive the customer interactions. So they can go to a customer and say, hey, we're seeing how you're using a tool. We think you could get value out of these other five things. And work with them in a constructive way. For example, a couple of other clients I've worked with. They're actually using the data in their marketing departments and their sales departments and putting this up on the wall so that other parts of the business are getting access to it beyond dev ops and IT ops, which is huge value to them, right? >> Sumo, I'm just curious. Sumo Logic, umm, where from the name? What's the genesis of that? >> Well the official story is that it's about Sumo, big data. The real story is that our founder Christian loves dogs. And he has a dog named Sumo. And so, it really fit well. It fit the name cause of big data but it also it fit it because he had a >> Alright. >> he had a dog named Sumo. >> I'll buy that. Just curious. Ben, thanks for being with us. We appreciate the time here on theCUBE and you could have taken him I know, if you really wanted to. >> I appreciate that. >> You could have, no doubt. (laughter) Ben Newton. Analytics lead at Sumo Logic joining us here on theCUBE. Back with more from AWS Summit in New York right after this break. (upbeat techno music)

>> Voiceover: Live from Washington D.C., it's theCube, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner Ecosystem. >> Good morning, welcome back here on theCube, the Silicon Valley or Siliconangle TV flagship broadcast, here as we continue our coverage live from the Nation's capital, Washington D.C., the AWS Public Sector Summit 2017. I'm John Walls, we're glad to have you hear on theCube along with John Furrier, good morning. >> Morning. >> Good night? >> Great night. I had two great meetings, learned some information, got some exclusive material for a story that has to do with government stuff. >> So you were kind of working then weren't you? >> I'm always working. We're in D.C. I want to put my ear to the ground and bring all these stories back to my show, Silicon Valley Friday Show, which has been on hiatus during the month of May and June for all theCube events. >> Slacker. >> I got some great metadata as they say. (laughter) >> Good about data. >> I went home and watched the Nat's game. That was my big night. Jeff McAllister is with us now, he is the GM of the Americas for Druva and Jeff, glad to have you on theCube, we appreciate the time. >> Oh gee, thank you for the opportunity and it's a pleasure to meet you. >> Alright so you guys are all data, all the time on the Cloud right? >> That's right. >> All about data protection and security, availability. Tell us a little big more just about Druva and then we'll get into maybe your relationship with AWS but first off about you, about Druva. >> I've been fortunate to be with Druva since we really embarked on our enterprise strategy. I've been part of the team that made the investment a couple of years ago to start to pursue FedRAMP and some of the specifications for the Federal Government. And as you know, we are Cloud native. We are for the Cloud and built on the Cloud. We've been a partner with AWS for over eight years now. So we've had a very strong working relationship with them and the opportunity to come and speak here today and with you gentlemen, has really been tremendously exciting and frankly they're absolutely wonderful partners to go to market with. >> Yeah, talk about a minute about how integral that obviously is to your business to have not just a relationship, but to have the relationship that you do with AWS. >> Well, AWS obviously provides a world-class platform on which to build a service like ours. For our customers, it means tremendous levels of security, tremendous data durability, a reliability and availability of that data, but also the idea that many of our customers are very mobile. They have great geographic dispersion among their employees. Their employees are engaging in other parts of the world. So availability of that Cloud and that Cloud infrastructure, in local areas is tremendously important. And for our Federal customers, the certification for ITAR and other things that are specific to that market, having a platform like GovCloud, built specifically to their specifications, to service them, creates great leverage for us and our customers. >> John F.: I mean, eight year relationship, and that's going back. >> Yes it is. >> And they're only 10 years old and they spent their 10th birthday going on their 11th year, just AWS. So, obviously they saw some federal action right away, or public sector action right away. Nature of the Cloud, very friendly to developers back then. But still it was building blocks foundational back then. >> That's right, exactly. >> What's changed? How would you chronicalize that change other than the massive growth we've seen in the market place which we've chronicalized as well but I mean, from your perspective in the public sector, this is on a nice trajectory. >> I've been in the business now for over 30 years. Started out at Data General through Sun Microsystems and I've seen much of the industry change. The one thing that has been very impressive with the public sector, is that the interval in product innovation would come to the public sector a year or two years behind what we saw in the commercial marketplace. That time and space is absolutely shrinking down to nothing. They are pursuing the same business continuity, data transformation issues the Cloud-first strategies that our commercial customers are. And frankly, the government worker today has become more mobile. And the requirements to protect that data and secure it, are at an all-time high. And the AWS platform in combination with what we do, really provides a level of security that is hard to do on your own. >> So yesterday, we talked about a term I coined, or phrase I coined, around the seminal moments in GovCloud's history and really in the Amazon public sector. Is called "the shot heard around the Cloud", and that was the CIA deal where AWS came in and beat IBM, which had a lock-in spec and they're old-school IBM, they know how to sell. The sponsorships, they had everything locked and loaded. Who knows what they were doing, wining and dining. You know how the Federal Government is? >> Jeff: That's right. >> Things were very much picked out, everything's buttoned up and then boom, Shadow IT is happening, Amazon wins. Since then, we've seen a lot of change in how people are securing, how people are deploying. >> Jeff: Right. >> No better example than data protection because there's no wall, there's no firewall. You're in the middle of it. Talk about that dynamic about how the no walls, no perimeter in the Cloud has changed the role of data and data protection. >> Sure. So, gone are the days where we can dictate the device, how somebody wants to work, what solutions they're going to use. Cloud applications like Office 365, Box, Slack, other, have really created an environment where the IT folks, want to stimulate innovation, stimulate the work in places where people want to get done. But then provide the same level of protection and governance that they would on a non-platform solution. So, watching that evolution take place, its really driven us to really have to be mindful that we're in the performance business and with that performance we have to be respectful of the requirements from a security and protection standpoint that our customers call for. FIP certification became fundamental for us being able to service the government. That led us into the pursuit now of FedRAMP, which we're now FedRAMP ready. But all of those things provide the infrastructure to allow them to embrace these new strategies and this digital transformation, be it in my Cloud-first strategy or my mobility strategy, and be able to extend that same level of security that I would need, and provide that flexibility for my users to get their jobs done. >> Yeah and honestly, Cloud native, as you know, we love Cloud native, we've covered it. >> We do too. >> Covered it from day one. (laughs) Cloud-first is kind of like a moniker that people use. >> Sure. >> Kind of an ethos. It's more of a manifesto, it's more agile. But really Amazon has never hidden the ball in the fact what they believe the future will be and that is API economy. And from day one it's all about APIs and they believe that you should have APIs everywhere. The Cloud has no perimeter so that changes the security game. But the one thing that's emerged out of all this, is a new SaaS business model for businesses and government, and federal, and education. So everything's as a service. >> Jeff: Correct. >> That is a huge deal and this is maybe nuanced a bit, but how does public sector turn into a service model with the Cloud? 'Cause that's something that everyone's kind of going at. You have Cloud natives great, we're going to be Cloud natives, check. But really what they're getting to is, everything's as a service. >> Right. It's created a lot of flexibility in the buying process. First of all, you're bringing that elasticity of demand, right? So they are able to embrace the idea that, I only pay for the services I actually consume. So, should I have a movement in employees, should I change in structure, should my usage suddenly spike, I have the ability to adjust on the fly. That's a big part of it. But the other piece of it is that we can deliver our service at a fixed price cost for a certain period of time within that government fiscal year. So not only does it become easy to manage technologically, but from a budget stand point, it makes it a very predictable cost. I'm no longer having an explosion of data that I have to manage and go off books to try and find data to provide those IOPS and storage on sight. I can simply continue to go at the same budget level that I've already set aside. >> One dynamic that has come up while you brought this up, 'cause I think it's relevant to what we were just talking about is, lock-in. Right? I mean the word lock-in has always been vendor lock-in but really that's on one side of the coin. The other side of the coin is user lock-in. So last night, one of my secret meetings I had last night was with a senior government official and we were talking about how, they're all pissed 'cause they got Microsoft Surfaces instead of Macs. They wanted Macs. So they were just handed a bunch of Microsoft Surfaces. No offense Microsoft, I love the Surface personally, but I've got a Mac here. The point is, they didn't want it. >> Jeff: Right. >> It was forced down their throat. >> Let's just shut that for a moment here. (laughs) >> This is the old way. We made a decision, we're going with this product. So this is really the flexibility point is, very interesting, 'cause now with the Cloud, you can actually do these really agile deployments. >> Jeff: Exactly. >> And give people more choice. >> That's right. The time to value on these products, we have a very large defense contractor inside the Beltway. We were able to deploy to 23,000 users worldwide in under six weeks. But we understand that we're in the performance business and the idea that our customers could leave us at any point in time when the term is up, keeps us very conscious of the specifications that they require. And frankly, it requires us to be innovative on their behalf. Certainly taking their feedback, but really starting to anticipate their requirements, so that we continue to earn that business year over year. And frankly, if you want to talk about lock-in, SaaS provides tremendous flexibility to switch when a contractor isn't performing to spec, versus a perpetual license where I'm locked in for the duration. >> And that's a fear obviously that they're going to use their dollars wisely. I want to get you to weigh in on Druva's digital transformation in back of the customer. Obviously you guys are doing well, you're in the sweet spot, data protection is a hot area. It's one of the hottest area no one really kind of looks at, but it's really hot with the Cloud. What impact are you having with customers and how are you rolling out your value proposition to the public sector? What are the key highlights? I mean, how do they work with you? Is it FedRAMP? Is it GovCloud? Just take us through your value proposition with respect to the- >> Our value proposition, I think is fairly unique. So first, we run on the most wildly accepted Cloud platform by the public sector, AWS GovCloud. Without question the market leader there. We bring all of our experience from the commercial marketplace into that same experience on GovCloud. With the added certifications of FIPS, certification 140-2 moderate. Our FedRAMP in process. We're also HIPPA certified so that we have the ability to address HHS and FDA as some of our customers. 'Cause they also process a lot of personal information that is unique to that particular agency. But at the end of the day, the piece that really is most interesting to our public sector customers is, one, this is a very easy service to bring to the Cloud at lower cost and frankly higher value. The plethora of features and the security, the ease of management that we bring, relieving them of having to manage hundreds of terrabytes of data and apps on behalf of this service, is tremendously beneficial. The predictability of the cost year over year, makes it very very easy to manage. But I think the biggest thing that people have come to embrace is that the innovation that takes place in the Cloud comes to market so much faster in the Cloud. Just think of the QA cycles and how they've been reduced 'cause we're QAing for one platform. Being able to consistently, quarter in, quarter out, deliver that additional feature set and additional value, at no additional cost to our customers, is really what they've really gelled around. >> How do you guys handle the certification processes that are going? I'm sure there'll be more. I mean, they're coming. With all the free-flowing data, I'm sure there's going to be a lot of regulations and policies and governance issues. But you've got to move fast. How do you guys move fast to certify? Is there a secret sauce? Is there a secret playbook? How do you guys stay on top of it? 'Cause automations, machine learning, what's the secret sauce? >> You know, I think it's interesting, part of the uniqueness that is Druva I think is, our ability to anticipate market demand. I think we have a very experienced team of individuals. Look at the choice to go to AWS eight years ago. It was unthinkable at that time, but its turned out to be a visionary sort of choice. We identified that FedRAMP and FIPs certification, three or four years ago, was an absolute mandate to play in this marketplace. So we went there way ahead of our success in the market but we saw a very unique opportunity to go there. So I think it's just a tremendously creative group of people. It's a very dynamic marketplace. And it's one that requires a little bravery and a little bit of thinking in advance of the marketplace. I don't know that we have any magic sauce, but so far it's worked pretty well. I think it's worked out alright. >> I always ask just to see. >> Although that's a good question. >> To that point though, eight years ago when you went, it was a leap right? >> It was. >> Big leap. And now here you are 2017, things are rolling along. I imagine your sale or your pitch has taken on a different tone because you have so much proof in the pudding now, right? >> Oh, it does. A long time ago it was strictly backup. We've now moved into governance, e-discovery, the idea of user behavior analysis so I can find anomalies that may occur so that I can avoid Cryptolocker or other sorts of viruses or things that may be able to affect the operation of my customers. All of those things have come into play that weren't there four years ago. So it's really been an advancement of the added services beyond what we just did in backup, that have really kind of driven the business and differentiated us from the market. But it's still kind of fundamentally that idea that I'm going to protect your data, make it available to you and separate now from your device and really help you manage your data wherever you're doing your work. >> I know we're running tight on time, I do want to get one more question in from your perspective because again, present and creation is really a benefit to Druva, congratulations on that. You get to ride the wave and now the wave is bigger and more sets coming in. That's to use the surfing analogy. But talk about the perspective from your personal standpoint, just the changes going on in this marketplace right now. Teresa Carlson, when we were commenting on our opening, how tenacious she's been. She's knocked on a lot of doors. Eight years ago, what the hell's cloud? No one even knew what it was right? And then the shot heard around the Cloud with the CIA deal and just more and more and more in them, this is just a great business opportunity for Amazon Web Services, not just the enterprise, which they're doing well in now. >> Right. >> They own the startup market. This could be, it could have a 90% market share of public sector. >> That's right, that's right. >> John F.: Talk about the change. What's going on? Is it the perfect storm? Is it like right now, what's the progress. >> Well you know, it seems like its a perfect storm but for somebody who's been banging at it for the last four or five years, it seems to be a little bit more evolutionary. But it's interesting, when I started at Druva, if I looked across our opportunities across the Americas. It was fairly evenly split between the idea that I'm going to do this on premise or I'm going to do it in the Cloud. Today, if I look across all o6f North America and all the commercial entities and public sector entities that we're dealing with, we're probably engaged in well over 500 opportunities at any one time, literally less than two, quarter over quarter, is now on premise. People have come to embrace the idea that this is a place where I can conduct business safely and securely. And frankly, for us, you look at that digital transformation or business transformation, we become two really compelling services to start and experiment with moving to the Cloud. So very often, we are the tip of that spear. Lets backup our endpoint devices to the Cloud, let's get out of that business, 'cause we can do it much more effectively with Druva than we can for ourselves at less cost. >> It's almost the reverse of what on prem was. I've had many opportunities where I've bumped into IT practitioners, friends and what not in the industry. "Oh, I forgot to do the backup plan. I got the procurement going on." It's kind of an afterthought, it's been kind of an afterthought. I am oversimplifying but generally, it's not the primary. When you go outside the walls of a company, into the Cloud where there's no perimeter, it's the first conversation. >> That's right. >> So I hear what you're saying and I totally agree. This is unique, it's a complete flip around. >> Well it's amazing. So often, we're backing up server data to the cloud. So now it used to be just backing up to the Cloud. Now it's, I have the application running in the Cloud and I want to back it up and secure it into another Cloud. It's completely morphing into all sorts of interesting places. But the part that's really interesting is that we will bring to our customers disaster recovery, for example. Well that's a service, we turn it on and if you never experience the disaster, you don't pay for it. It just creates a whole new mindset of how we're going to think and how we're going to approach the infrastructure that we're now building. >> No license fee. It's just if you need it, you get whacked on it and you deserve to get whacked on it because you need the service. >> Well, they know what the cost will be. We've set it up for a nominal fee but if you're fortunate enough that you never experience the problem, why should you pay for it. So literally cutting that price in half, removing the requirement of 2XL Servers and 430 tip. >> John F.: It's a new operating model. >> That's right. And the flexibility that it creates to change to your computing requirements is just phenomenal. >> Well, phenomenal, I think would be a way to describe your ascent as well. >> Oh thank you. >> So congratulations on that front. Glad you could be with us Jeff, at the show. Continued success and we hope to see you down the road on theCube. >> John, John, it was a real pleasure. >> John W.: First time right? >> It was, it was, thank you. >> John W.: You're a tour alum now or a Cube alum. (laughs) >> John F.: Cube alumni. >> Good to have you with us. >> Jeff: Thank you, thank you so much. >> Jeff McAllister with Druva. Back with more here from AWS Public Sector Summit 2017 on theCube. You're watching live in Washington D.C..

>> Narrator: Live, from Washington, DC, it's the Cube. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services, and its partner ecosystem. >> Well welcome back to our nations' capitol, Washington, DC, hosting this week's AWS Public Sector Summit 2017. You're live, here on the Cube, which of course is the flagship broadcast of the Siliconangle TV, where my partner in crime John Fourier always likes to say, we extract the single from the noise, don't we John? >> That's right, we're here. >> Yeah, we are. >> In D.C. >> In DC and it's a little warm, it's a little toasty inside but outside especially. 95 and humidity, Jeff Raleigh could attest to that. He just pulled into town from Columbus, Ohio. Jeff, good to see you, the Senior VP and GM of Cloud at Ellucian, so thank you for being with us Jeff. >> Absolutely, John and John, happy to be here. >> You bet, so Ellucian, a leader in higher education software, we've talked a little bit about the company. 2,400 institutions around the world with which you work. Most of those, about 2,000 here in the US. Let's talk about that work, the kind of nature of the work first and then we'll jump into a little bit about how they're playing in the Cloud these days. >> Sure absolutely happy to, so the Ellucian's got a sole focus in higher education. So it's really the only industry that we serve. We serve the industry really from a software, enterprise software prospective. So that's really helping from an ERP perspective, HR finance, but really our bread and butter is the student system and it's really the systems around helping students achieve success. As they, go to a community college or go to a four year public or four year private. It's really about helping those students drive success. And actually get the successful outcomes. And we do that with registration, with advisement, with recruiting systems, so there's a full breadth of software that an institution needs in order to help a student successfully go through that process of getting a degree and ultimately getting a job. >> Well John and I can both relate to that. He's got a daughter who's transferring over to Cal Berkeley. Going to be going to school there. I've got a niece starting at UNC Wilmington that I'm helping out, I love the registration help. So, you and I need to talk about it. >> Absolutely. >> A question is how do you get the kids into the schools they want, is there a back door Trojan horse? >> We can't manipulate that much. But you talk about your company does data rich inside pour, which I thought that was an interesting way to kind of look at things. Like we have this huge treasure trove of information and data but yet maybe there's somewhat of a disconnect in interpreting that data and then putting it value, putting it to use. What do you see with regard to that in the higher education space? >> You know, I think John, that's a great question. That's actually a really big focus of ours in terms of unlocking that data. If you think about the systems that have been on campus for 30 years right. You've got all kinds of information about the students that have attended, the classes that they take and how well they've succeeded, the types of advising that they needed. But how do you unlock all of the rich information so that you can take that information, drive some insight and then just drive better outcomes? We've been working on a platform, we call it Ethos and what we basically built is a new data model for higher education where we've looked at all of those different systems and we've basically harmonized to a new data model that really sits above all of those systems. And we begin now to extract all of that information out from those systems, into a data model that's really designed around bringing role based or persona based insight. And we call it role based analytics. That basically is designed around answering the top five to seven questions that all of the people that are on campus have. So if you're a registrar and you want to know what classes should I be adding that I need extras of. Well, that's a tough question to answer, we unlock the answer to that through the Ethos platform and the new persona based analytics that we're developing. Cause when we sit down and we talk to presidents of a school or we talk to the provost, one of the things that they want is they want to know that the people that they have working on campus for student outcomes are getting access to the information that they need to do their jobs better. And so that's been a clear mandate from our customers to help them do a better job of using the information that they're collecting. >> How do you guys deal with the data science side of this Because it's interesting is that you're using data aggressively, Cloud's perfect for that. You got a lot of compute available, how are you guys taking that legacy environment and kind of putting overlay on top of a really high, functional analytic system? >> That's a great question John. So what we do is we enable all of our software, whether it be on premise software, most of our customers still run a lot of their software on premise. And what we've built for those systems is a set of restful APIs that we deliver wherever that software runs to push that data into an AWS cloud environment where we begin putting that data in the columnar databases that are really built and constructed to help get insight very, very quickly from that data. The most important part of doing that is really sitting down and talking to the person that has the question to understand, what's the question that you're trying to answer that you haven't been able to answer? And then building the visualization that they need that actually helps them answer that question. But we took it one step further, and what we did is we basically said, we know through our research that that first question really just always yields another question. Which then yields another question and so what we did is we built a heuristic capability into the analytic platform that based on the user, based on who they are, based on the role that they had at a school and based on other people that look like them and act like them and have that role. The system begins to learn the questions that are being asked and then where are they navigating to? What are the next questions, so that we actually begin presenting the users not just with the answer to the first question that they have, but actually to, we believe that now that you've got the answer to this, that this is where you're going to go next from an inside perspective. The next types of questions so we begin to guide the users and that's really where that guided nature comes from. >> So what's the next question John's going to ask then? >> This brings up the whole cognitive computing thing. The idea that predictive analytics are one thing, you've got prescription analytics also you've got the notion of recommendation engines. All kinds of cool things that are just sitting out there waiting to be applied, the question is how do you get the data, that's the number one problem. >> That's a good one, so we've got, one of the solutions that we have in our CR Import folio is called Advise. And what we do with that product is we actually bring all of the student data, so we bring their attendance data, we bring their health records, we bring all of the grades that they have. And we then build cohorts where we have like students. And what we begin to do is we begin to build a predictive model to find students that are at risk. That based on these attendance patters in these classes, we know that this set of students is likely to have a poor outcome. And so what we want to do is not just identify that, well, now they're at risk but it's the predictive side of, well what should you do, what is the actual intervention that you need to take that's going to drive a better outcome? So the solution actually takes all the data and does two things. First, it identifies who are the students that we want to be working with, could be at risk, could be hypos right, could by high potential students that we want to accelerate. But then it's about driving the actual actions and the interactions with those students. It is not just about identifying well, Johnny's going to be in trouble, it's well, okay, what should we do for Johnny to help him get out of trouble? And so it's both sides of that. So, it is about polling all of the data which means you need to understand where the data lives. We have an advantage there over, pretty much everyone else in higher education because those 2,400 institutions that we have, they are running a massive amount of our software from a portfolio perspective. So we know where the data is, so we know how to go out and get it. And then if you look at our partner, ecosystem we have over 130 partners that also serve higher education with us. And we know what data they have and we are enabling all of those partners to leverage the Ethos platform. To be able to share that data, both from an integration and interoperability perspective. But also to feed that cloud analytic solution as well. >> One of the cool things you're doing with AWS, I'll say, they pretty much run the table on public cloud, we see the numbers there. They're in the chapter of their company or divisions, like the way a company, I call the team period. I call it the enterprise years. Govnow is like really going, it's like reinvent size. It's getting to that level, what's the impact that that's having and what are some of the things that you're doing with AWS inside the public sector that's notable. >> That's a great question, I think one of the big things is we have a really, really strong go to market partnership with AWS. And I say the go to market side because we've had a really strong technical partnership with them for many years. Where we've been working with them as they've developed new services and we've been able to leverage those services to build micro applications, to build elastic applications, all of that. And that's great form a technical perspective but now it's about bringing all of that to market. We have a very strong joint partnership with. >> John: How many years has it gone back? >> About two and a half, three years. So our enterprise agreement is two and half years old. We were doing work with them before that. But it's about two and a half years old and when I look at that, we deploy all of our cloud applications solely on AWS. So they are the sole cloud provider for us. We've expanded our cloud offering outside of the United States, we're in Dublin, we have a data center in Sydney, Australia. And we are just expanded into their new data center in the eastern Canada area in Montreal. And that's helped us from a go to market because what they bring for us, is they bring that credibility of delivering cloud infrastructure. We bring credibility of delivering higher education solutions that solve specific problems that only exist in higher education. It's that combination when you go to market to basically say the world's leading infrastructure cloud provider partnered with the world's leading solution provider in higher education. That's an unbeatable solution for us. >> So I got to ask you the question that people might ask. Hey, I've not been following AWS public sector. I see the Wall Street Journal articles, they're killing it. How would you describe their current state of innovation, their current presence in the public sector market as of right now? >> I think the lens that I really have is really around that higher education, so community colleges, public four year schools and they are highly focused on it. They have a team of dedicated people that are just focused on higher education. They work with us kind of from a joint perspective and I know that my cloud business that I'm responsible for, it is the fastest growing part of Ellucian today. So in June of 2016, we actually surpassed, form a growth perspective we started growing much faster than the on premise side of our business. And that's in large part because of what AWS has enabled us to do, so from a training perspective, from a sales motion perspective, from a marketing and positioning perspective. It's a big focus for them. >> Would you consider them, like the perception of them would be they're getting traction, they've cleared the runway, they're at cruising altitude. Where are they in the mind share of higher eds? >> I definitely think, they've cleared the runway. They are clearly going past that 10,000 foot and up there. For us, one of the main reasons we chose AWS was that factor, they already had traction. They were well known and well understood and that really helps us. Prior to that, we were doing a co location where we were managing a bunch of infrastructure, that was a hard sell, cause let's face it, we're software people, not infrastructure people. When we started bringing AWS to the table and basically talking about that's where we deploy. That took a lot of questions around scale, security, elasticity and it basically put it all to rest. So we no longer have to contend with those questions because AWS is well known in the higher education space. So it really worked well for us. >> So when you sit down with a new client or new perspective client, the two of you, you come in with this great resume and I think is where it's kind of interesting to me, universities are these fountains of innovation and creative thinking. IT, maybe not so much, because it's very institutional. There's a lot of legacy baggage they're bringing along. So what are the impediments that you run into in terms of talking to folks who might be, not doubters, but maybe a little resistant to change or maybe have a little change aversion. I mean how do you go about bringing them along on that journey? >> What's interesting in terms of higher education is there's actually a couple things that are happening that really help us with that, that are happening. But to answer the first question John which was when we get into that, not really a battle. But when we get into that dialogue, where they're like well I'm not really sure that moving to the cloud is the right thing. There's an analyst that covers higher education and she's made a statement that basically is, by 2020, a no cloud policy on campus is going to be much like a no internet policy on campus. Just not going to be a thing. And a lot of that is because a lot of providers are only building cloud solutions. That's all you're going to have access to. One of the things that's happening in higher education is in the IT space particularly, they're having a hard time finding those IT professionals. Because higher education isn't seen IT wise as a sexy place to go. And so a lot of those people that have been working in higher education for 25, 30 years, they're reaching that retirement age, and so. >> John: The main frame guys. >> Right, the main frame guys, the Unix guys. And where do you go find replacements for those. And so, they're recognizing that, okay, well that's going to be a problem for us. And right there's a lot of the infrastructure, on premise infrastructure is getting old. So does it make sense to put that capital investment into infrastructure or I got other capital investment for research and research equipment that I'd much rather put, if I'm a president, I'd much rather put the money there. That also leads to an easier conversation around that journey to the cloud, that journey of taking your enterprise systems and moving them to cloud environments. The other thing that we find is, the conversation is never really around cost savings. What it's really around is the redeployment of those IT resources to be better business partners, to be business analysts, to be people that can actually be change agents at the university to bring about change cause they're no longer managing operating systems or writing network patches or security patches. They've offloaded that to us and we've offloaded part of that work to AWS. >> Well, we appreciate the perspective. Like you said, it sounds like you've got quite a corner on the market, 2,400 partners, if you will out there. Many of those overseas, so congratulations on that front. >> Thank you. >> And I wish you continued success and thanks for joining us on The Cube, first time I think right? >> Yep, first time. >> We have rookies across the board. >> But you're now a Cube alumni. >> I appreciate it. >> Look forward to having you back. >> Thanks John and John, appreciate it. >> Back with more from Washington, DC at the AWS Public Sector Summit, 2017. You're watching live on the Cube. (upbeat music)

>> Announcer: Live from Washington, DC, it's theCube, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner ecosystem. >> Welcome inside the convention center here in Washington, DC. You're looking at many of the attendees of the AWS Public Sector Summit 2017. We're coming to you live from our nation's capital. Several thousand people on hand here for this three-day event, we're here for two days. John Walls, along with John Furrier. John, good to see you again, sir. >> Sir, thank you. >> We're joined by Jay Littlepage, who is the VP of Infrastructure and Operations at Digital Globe, and Jay, thank you for being with us at theCube. >> My pleasure. >> John W: Good to have you. First off, your company, high-resolution, earth imagery satellite stuff. Out-of-this world business. >> Yep. >> Right, tell our viewers a little bit about what you do, I mean, the magnitude of, obviously, the environmental implications of that or defense, safety security, all those realms. >> Okay, well, stop me when I've said too much because I get pretty excited about this. We work for a very cool company. We've been taking earth imagery since 1999, when our first satellite went up in the sky. And, as we've increased our capabilities with our constellation, our latest satellite went up last November. We're flying, basically, a giant camera that we can fly like a drone. So, and when I say giant camera, it's about the size of a school bus, and the lens is about the size of the front of the school bus, and we can take imagery from 700 miles up in space and resolve a pixel about the size of a laptop. So, that gives us an incredible amount of capability, and the flying like a drone, besides just being really cool and geeky, we can sling the lens from basically Kansas City to here in Washington in 15 seconds and take a shot. And so, when world events happen, when an earthquake happens, you know, they're generally not scheduled events, we don't have to have the satellite right above the point where there's something going on on the ground, we can take a shot from an angle of 1,000 miles away, and with compute power and good algorithms, we can basically resolve the picture of the earth, and it looks like we're right overhead, and we're getting imagery out immediately to first responders, to governmental agencies so they can respond very quickly to a disaster happening to save lives. >> So, obviously, the ramifications are endless, almost, right? >> Yes. >> All that data, I mean, you can't even imagine the amount, talk about storage. So, that's certainly a complexity, and then, they are making it useful too all these different sectors. Without getting too simple, how do you manage that? >> Well, you know, it's a big trade-off because, ideally, if storage was free, all of our imagery in its highest consumable form would be available all the time to everybody. Each high-resolution image might be 35 gig by itself. So, you think of that long of flying a constellation, we've got 100 petabytes of imagery. That's too much, it's too expensive to have online all of the time. And so, we have to balance what's going to be relevant and useful to people versus cost. You know, a lot of the imagery goes through cycle where it's interesting until it's not, and it starts to age off. The thing about the planet, though, is we never know what's going to happen, and when something that aged off is going to be relevant again. And so, the balance for my team is really making sure we're hitting the sweet spot on there. The imagery that is relevant is readily accessible, and the imagery that's not is, in its cheapest form, fact or possible, which for us, is compressed, and it's in some sort of archival storage, which for us, now that we've used the Snowmobile, is Glacier. >> Jay, I want to ask to give your thoughts. I want you to talk about DigitalGlobe, before that, some context. This weekend, I was hanging out with my friends in Santa Cruz and kids were surfing. He's a big drone guy, he used to work for GoPro, and she used to buy the drones and, hey, how's it going with the drones. It got kind of boring, here's a great photo I created, but after a while, it just became like Google Earth, and it got boring. Kind of pointed out that he wanted more, and we got virtual reality, augmented reality, experience is coming to users. That puts imagery, place imagery, the globe, pictures, places and things is what you guys do. So, that's not going away any time soon. So, talk about your business, what you guys do, some of the things that you do, your business model, how that's changing, and how Amazon, here in the public sector, is changing that. >> Well, that's a fantastic questions, and our business is changing pretty rapidly. We have all that imagery, and it's beautiful imagery, but increasingly, there's so much of it, and so many of the use cases aren't about human eyeballs staring at pixels. They're about algorithms extracting information from the pixels. And, increasingly, from either the breadth of pixels, instead of just looking at a small area, you can look around it and see what's happening around it and use that as signal information, or you can go deep into an archive and see the same location on the planet over and over over years and see the changes that had happened in terms of time frame. So, increasingly, our market is about extracting information and extracting insights from the imagery more so than it is the imagery itself. And so that's driving an analytics business for us, and it's also driving a services business for us, which is particularly important in the public sector to actually use that for different purposes. >> You can imagine the creativity involved and developers out there watching or even thinking about using satellite imagery in conflux with other data. Remember, they're in the Web 2.0 craze earlier in the last decade. You saw mashups of API with Google Max. Oh yeah, pull a little pin, and then the mobile came. But now, you're seeing mashups go on with other data. And I've heard stats at Uber, for instance, remaps New York City every five days with all that GPS data of the cars, which are basically sensors. So, you can almost imagine the alchemy, the convergence of data. This is exciting for you, I can imagine. Won't you share with us, anecdotally or statistically what you're seeing, how this is playing out? >> Well, yes, some of our biggest commercial customers of our products now are location-based services. So, Uber's using our imagery because the size of the aperture of our lens means we have great resolution. And so, they've been consuming that and consuming our machine learning algorithms to basically understand where traffic is and where people are so that they can refine, on an ongoing basis, where the best pick-up and drop-off locations are. That really drives their business. Facebook's using the imagery to basically help build out the Internet. You know, they want to move into places on the planet where Internet doesn't exist. Well, in order to really understand that, they need to understand where to build, how to build, how many people are there, and you can actually extract all that from imagery by going in in detail and mapping roofs' shapes and roofs' sizes, and, from there, extracting pretty accurate estimates of how many people live in a particular area, and that's driving their project, which is ultimately going to drive access for... >> Intelligence in software, we look at imagery. I mean, we here at Amazon, recognition's their big product for facial recognition, among other pictures. But this is what's getting at, this notion of actually extracting that data. >> Well, you think about it. You know, once the data is available, once our imagery is available, then the sky's the limit. You know, we have a certain set of algorithms that we apply to help different industries, you know, to look at rooftops, to look at water extractions. After a hurricane, we can actually see how the coverage has changed. But, you look at a Facebook, and they're applying their own algorithms. We don't force our algorithms to be used. We provide the information, we try to provide the data. Companies can bring their own algorithms, and then, it's all about what can you learn, and then, what can you do about it, and it's amazing. >> So, here's the question. With the whole polyglot conversation, multiple languages that people speak that's translated into the tech industry, and interdisciplinary forces are in play: Data science, coding, cognitive, machine learning. So, the question is, for you, is that, okay, as this stuff comes together, do you speak DevOps? It's kind of a word, and we hear people say, is that in Russian or is that like English? DevOps is a cloud language mindset. And so, that brings up the question of, are you guys friendly to developers, and because people want to have microservices, I'm from a developer, I'm like, hey, I want those maps. How do I get them, can I buy it as a service, are they loaded on Amazon, how to I gauge with DataGlobe, as a developer or a company? >> Well, you think about what you just said and the customers I just talked about. They're not geospatial customers. You know, they're not staffed with people that are PhDs in extracting information. They're developers that are working for high-tech companies that have a problem that want to solve. >> There are already mobile apps or doing some cool database working in here. >> So, we're providing the raw imagery and the algorithms to very tried and true systems where people can plug into work benches and build artificial intelligence without necessarily being experts in that. And, as a case in point, my team is an IT team. You know, we've got a part of the organization that is all staffed with PhDs. They're the ones that are driving our global... >> John W: PhD is a service. (laughter) >> Well, kind of. I mean, if you think about it, they're driving the leading edge, for these solutions to our customers. But, I've got an IT team, and I've got this problem with all this data that we talked about earlier. Well, how am I actually going to manage that? I'm going to be pulling in all sorts of different sources of data, and I'm going to be applying machine learning using IT guys that aren't PhDs to actually do that, and I'm not going to send them to graduate school. They're going to be using standard APIs, and they're going to be applying fairly generic algorithms, and... >> So, is that your model, is it just API, is there other... >> I think the real key is the API makes it accessible, but a machine learning algorithm is only as good as its training. So, the more it's used, the more it refines itself, the better our algorithm gets. And so, that is going to be the type of thing that the IT developer, the infrastructure engineer of the future becomes, and I've already, basically, in the last couple of years, as we started this journey at AWS, 20% of my staff now, same size staff, but they're software developers now. >> So, I'll take this to the government side. We talked a lot about commercial use. But at the government side, I'm thinking about FEMA, disaster response, maybe a core of engineers, you know, bridge construction, road construction, coastline management. Are all those kind of applications that we see on the dot gov side? >> There are all things that you see that can be done on the dot gov side, but we're doing them all in the commercial environment. The USC's region for AWS, and I think that's actually a really important distinction, and it's something that I think more and more of the government agencies are starting to see. We do a lot of work for one particular government agency and have for years. But 99 point something percent of our imagery is commercial unclassified, and it's available for the purposes that our customers use it for, but they're also available for all those other customers I've talked about. And more and more of what we do, we are doing on the completely open but secure commercial environment because it's ubiquitous for our customers. Not all of our customers do that type of work. They don't need to comply with those rigid standards. It's generally where all AWS products that are released are released to, with the other environments lagging, and they probably don't want me saying that on TV, but I just did. And it's cheaper, you know, we're a commercial company that does public sector work. We have to make a profit, and the best way to do that is to put your environment in a place where if you're going to repeat an operation, like pulling an image of Glacier and build it into something that is consumable by either a human or an algorithm and put it back. If you're going to do something like that a million times, you want to do it really inexpensively. And so, that's where... (crosstalking) >> Lower prices, make things fast, that's Jeff Hayes' ethos, shipping products, that these books in the old days. Now, they're shipping code and making lower-latency systems. So, you guys are a big customer. What are the big implementation features that you have with AWS, and then, the second part of the question is, are you worried about locking. At some point, you're so big, the hours are going to be so massive, you're going to be paying so much cash, should you build your own, that's the big debate. Do you go private cloud, do you stay in the public? Thoughts on those two options? >> Well, we have both. Right now, we're running a 15-year-old system, which is where we create the imagery that comes off the satellites, and it goes into a tape archive. Last year, Reinvent... >> John F: Tape's supposed to be dead! >> Tape will die someday! It's going to die really soon, but, at the Reinvent Conference last year, AWS rolled out a semi truck. Well, the real semi truck was in our parking lot getting loaded with all those tapes, and it's sad... >> John F: Did you actually use the semi? >> We were the first customer ever, I believe, of the Snowmobile. And so, it takes a lot of time and effort to move 12,000 LTO 5 tapes loaded onto a semi and send it off. You know, that represents every image ever taken by DG in the history of our company, and it's now in AWS. So, to your second part of your question, we're pretty committed now. >> John F: Are you okay with that? >> Well, we're okay with that for a couple of reasons. One is, I'm not constraining the business. AWS is cheaper. It will be even cheaper for us as we learn how to pull all the levers and turn all the dials in this environment. But, you know, you think about that, we ran a particular job last year for a customer that consumes 750,000 compute hours in 22 days. We couldn't have done that in our data center. We would have said no. And so, I would... >> I know, I can't do, you can't do it. >> We can't do it! Or, we can do it, come back, the answer will be here in six months. So, time is of the essence in situations like that, so we're comfortable with it for our business. We're also comfortable with it because, increasingly, that's where our customers already are. We are creating something in our current environment and shipping it to Amazon anyway. >> We're going to start a movie about you, with Jim Carrey, Yes Man. (laughter) You're going to say yes to everything now with Amazon. Okay, but this is a good point. Joking aside, this is interesting because we have this debate all the time, when is the cloud prohibitive. In this case, your business model, based on that fact that variables spend that you turn up your Compute is based upon cadence of the business. >> That's exactly right. You know, the thing that's really changed for the business with this model is historically, IT has been a call center, and moving into Amazon, I manage our storage, and I pay for our storage because it's a shared asset. It's something that is for the common good. The business units and different product managers in our business now have the dial for what they spend on the Compute and everything else. So, if they want to go to market really rapidly, they can. If they want to spin it up rapidly, they can. If they want to turn it down, they can. And it's not a fixed investment. So, it allows the business philosophy that we've never had before. >> Jay, I know we're getting tight on time, but I do want to ask you one question, and I did not know that you were the first Snowmobile customers, so, that's good trivia to have on theCube and great to have you. So, while we got you here, being the first customer of AWS Snowmobile when they rolled out at Amazon Reinvent, we covered on SiliconAngle. Why did you jump on that and how was your experience been, share some color onto that whole process. >> Okay, it's been an iterative learning process for both us and for Amazon. We were sitting on all this imagery. We knew we wanted to get in AWS. We started using the Snowballs almost a year and a half ago. But moving 100 petabytes, 80 terabytes at a time, it's like using a spoon to move a haystack. So, when Amazon approached us, knowing the challenge we had about moving it all at once, I initially thought they were kidding, and I realized it was Amazon, they don't kid about things like this, and so we jumped on pretty early and worked with them on this. >> John F: So, you've got blown away like, what? >> Just like. >> What's the catch? >> Really, a truck, really? Yeah, but really. So, it's as secure as it could possibly be. We're taking out the Internet and all the different variables in that, including a lot of cost in bandwidth and strengths, and basically parking and next to our data, and, you know, it's basically a big NFS file system, and we loaded data onto it, the constraint for us being, basically that tape library with 10,000 miles of movement on the tape pads. We had to balance between loading the Snowmobile and basically responding to our regular customers. You know, we pulled 4 million images a year off that tape library. And so, loading every single image we've ever created onto the Snowmobile at the same time was a technical challenge on our side more so than Amazon's side. So, we had to find that sweet spot and then just let it run. >> John F: Now, it's operational. >> So, the Snowmobile is gone. AWS has got it. They're adjusting it right now into the West Region, and we're looking forward to being able to just go wild with that data. >> We got Snowmobiles, we got semis, we have satellites, we have it all, right? >> We have it all, yeah. >> It's massive, obviously, but impressed with what you're doing with this. So, congratulations on that front, and thank you again for being with us. >> My pleasure, thanks for having me. >> You bet, we continue our coverage here from Washington, DC, live on theCube. SiliconAngle TV continues right after this. (theCube jingle)

>> Announcer: Live from Las Vegas, it's theCUBE, covering Dell EMC World 2017, brought to you by Dell EMC. >> Welcome back here to Las Vegas, live at the Venetian, theCUBE continuing our coverage of Dell EMC World 2017, where we're extracting a signal from the noise here on theCUBE. Of course, the flagship broadcast outlet for SiliconANGLE TV. I'm John Walls. Good to have you with us here along with Keith Townsend who's the principal of CTO Advisors, and joining us now is Arindam Paul who's the senior consultant of product marketing at Dell EMC. Arindam, thanks for being with us today. >> Thank you, John. >> It's kind of like the XtremIO X2 hour right now on theCUBE. (Everyone chuckling) We just said it's great talking about the launch today. You're heavily involved with X2. Just had the first break-out session and you said you packed the house. >> Yes. >> Standing room only. So I assume it was a big hit. What were the customers, if you will, most interested in and what was your sense of where they were coming from? >> That's right, thank you. Yes, we just had our first break-out session and there was a lot of customer interest. It was primarily the customers wanted to know, obviously, what was great about X2, how would it differentiated versus X1, in terms of speed... Not only what speeds and feats, but also all the features, the software enhancements, everything that we're going to be announcing this week. >> John: So a hungry market? >> Definitely, definitely. We were, actually, to be quite honest, it was on top of the lunch hour, so we were not expecting a very full audience because obviously, we are keeping people from their lunches, but the interest belied our expectation. We were very happy and surprised. >> John: So literally a hungry market then? >> Definitely. >> Over lunch time. >> You're right (laughing). >> So, I'm going to ask a lazy question. What was the biggest question coming out of the session as people stood around and asked? >> Yeah, people loved all the hardware enhancements that we're bringing to markets. There was a lot of impromptu unsolicited clapping and cheering when we announced that our latest GUI, graphical user interface, is going to be without Java. Apparently, that was anticipated for a very long time. >> Keith: I almost clapped just now. (John laughing) >> That right, HTML5 was and we have a lot of enhancements that use graphical interface in terms of, like intuitive, very context-sensitive hints as you'd expect on your iPhone, as you're configuring and walking though the menus. We also have a lot of nice reporting, very beautiful search capabilities that's going to be there for the first time and people, apparently, just loved it. Especially from an administrative perspective. >> Any new, exciting data services that weren't available in XIO1 that's available in XIO2? >> In terms of data services, yes, obviously. Like, now we're going to be scaled up as well scaled out, so we're going to be multidimensionality scaling and then we obviously have done a lot of work in terms of tuning performance, tuning data compression, so you're going to get a lot more compression out of our platform, data reduction out of our platform. Overall, it's a lot of interest. >> When's the last time you got spontaneous applause at a presentation? (Arindam laughing) >> I'll tell you, for as skeptical and as discerning customer base as ours, it's hard to get. >> I imagine. >> You have to earn it. >> You had to feel like, "Hey, we've hit the jackpot here." >> We did, exactly. >> So to speak in Vegas. >> So, customer base, I've been hearing a lot about cheaper, deeper storage in XIO2. What is the target customer for XIO2? Is this only for larger enterprises or is there a play for the SMB mid-size company as well? >> We wanted to make X2 the platform of choice for our customers who are primarily interested in, say for example, copy data management. We've been an amazing copy data management machine, like if you look at our installer base today, we have about 1.5 million snapshots of XtremIO virtual copies that have been used. The vast majority of them, well 50% of them, are actually writable snapshots, so they're being used very differently than primarily dumb backup copies, or secondary copies. They are active citizens, first-class citizens, they're at par with volumes. So copy data management is obviously a big use case for us. Virtual desktops, VDIs, right? >> Before we get off into VDI, copy data management, that's a term I've heard, but some people might not have heard that term. What's copy data management and what's the impact of copy data management to an IT budget, for example? >> Oh, there's tremendous benefits, right? Copy data management, when done right, like we do on our platform, really lets your IT break the chains and it frees IT, and provides for them a lot of business agility so that they're able to make instant copies of the production database virtually at will, without any cost, even in terms of time because they're instant copies, or in terms of occupying spaces. So you could literally create clones of your data, and these clones are perfectly functional clones so you can write to them, you can read to them as if your production data, and that's an amazing capability of itself. By the way, when you're creating these copies, there's zero to no impact to your production performance. Your production performance keeps on being as it is. Now, when you layer on top of that, because of our metadata architecture, metadata delivery architecture, you can make the copies resemble production or make the production resemble the copies. So you can basically restore-refresh at will. Again, without any impact to production, without any downtime, without literally any cost whatsoever. So when you're able to do this kind of stuff right now, think about the use case in your typical tester and their production environment. Where you have one copy of production and then multiple copies for your test engineers. You'd allot your engineers all the analytics copies and all those copies can be, literally, run very close to production because it doesn't cost you hours to basically create those copies or it doesn't take terabytes of space. So it really, truly lets you add agility to your IT and basically run your business much much efficiently and fast. >> Flash storage in general always helped with VDI, seems like there's a connection between copy data, flash storage, and VDI. Am I making an assumption here? >> Well, VDI, when you think about it, is copies of desktops. It would be perfect copies if you're not trying to basically customize them. So we use a slightly different technology, in namely our inline deduplication and compression and how we integrate our inline dedupe and our in-memory metadata with VDI-specific commands such as VAAI xcopy, how you basically clone virtual desktops. So we don't use snapshots to clone the virtual desktops, instead we use something called VAAI xcopy optimized with inline metadata, but the effect is the same. You can literally create roll-out virtual desktops, thousands and thousands of copies of virtual desktops in a really short order and you can manage them and everything compresses and dedupes very efficiently in a very small optimal footprint. >> You've heard from your customers today, at least in a brief amount of time. What do you think is going to be the biggest benefit an X1 user is going to find with X2? At the end of the day, what do you think is going to be the "Aha!" moment for them that's really going to open their eyes as to how you've impacted their businesses. >> Certainly, certainly. So we have a lot of eager customers and I think of the features that were long-sought after by our customer base, I think they're very happy about the economics of the platform. So we have significantly reduced the dollar-per-gigabyte cost to the customer on an effective basis and it's going to be like 1/3rd of what it was in X1. I think people were literally jumping on the seats when they heard that because not only don't you have better performance, better data reduction, new data services, but hey, we just slashed the price >> Save me money. >> 66% >> Right. >> So, outside of cost savings, new data services, one of the things that I heard is data replication natively. >> Right. >> That's a big deal. Walk us through the data replication capability. >> Yes, yes. Again, if you step back, one of the things that our architecture let's us do because of, again, our metadata, our foundation architecture that's based on metadata, is that we're very, very efficient in doing copies. Whether it's VDI copies or database copies, we are a copy machine. When you think of it and step back, replication is a copy problem because you're creating yet another copy, the only difference is that now the copy is happening outside of your box, from one XtremIO to another XtremIO. So what we did was that we leveraged the same foundational architecture, our same architecture, to basically not only replicate changes but actually dedupe changes. Now if you think about a global enterprise that has maybe a multisite replication going on, like four, five, six, seven, eight, up to 16, 32 sites that are replicating to one place, now you can see the power of our architecture. So there are many advantages. One is that you're only replicating deduplicated changes. What I mean by that is if there is a block of data that's already at the target site, you won't need to replicate that again, all you need to do is copy metadata and point it across, and that gives you like 99% savings. That's one. You also change the data transfer problem into a data reduction problem because now the only data you have to put on the wire to replicate is everything after dedupe and compression, and we get about four to one. So you slash your data transfer by 75%. In a global dedupe system, when you're multiple sites replicating to one target site because of the fact that all sites are deduplicating among themselves, we expect savings to be up to 38% on average. So savings at the target site, savings on the WAN bandwidth, and much faster replication. That's our solution. >> That's why they were standing on their seats clapping for you today (Everyone laughing) >> That's true. >> Arindam, thanks for being with us. We appreciate the time. >> Thank you very much. >> Congratulations on a very successful launch and one I'm sure will be many more spontaneous rounds of applause. >> We're just getting started, thank you. >> You bet. >> Thank you, John. We continue here on theCUBE live from Dell EMC World 2017. We're in Las Vegas. Back with more in just a bit. (gentle music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering Dell EMC World 2017. Brought to you by Dell EMC. >> Welcome back inside Dell EMC World 2017 here on theCUBE, we continue our coverage. Day 3 here in Las Vegas from the Sands Expo, sandwiched in between the Palazzo and the Venetian. A great show, a great vibe, and it's been a good show for Virtustream. And we have with us the president and CTO and a co-founder from Virtustream joining us now, Kevin Reid. Kevin, good to see you, how've you been? >> Been great, it's just very energizing being here this week. >> Yeah, what about the week for you? I'm sure you have a couple of announcements we'll get to in just a moment, but just want to get your take on the show here as we wind down. >> You know, the show's just been incredible. You know of course, it's the first year that they're all coming together, if you will, as the brand of Dell EMC as one show for the stage. It's been a great stage for us, great audience, looking at the range of countries and clients represented. We've actually just been blown away at the energy behind what Dell Technologies now represents as the overall set of brands in the portfolio. >> So let's get to the news that you made this week. One in the healthcare space, I know very important space for you, and in the connector space as well with vCloud. Let's go ahead and take them one at a time if you would. >> Absolutely, so healthcare cloud, you know, for us just a fantastic area when you look at just all the regulatory issues associated with healthcare in general, and certainly we don't have enough time on this show to go into what all that means, but the ramifications are. >> No, we'd like to get into HIPAA compliance if you don't mind. >> We actually talked about it yesterday, so if you want to talk about it again. >> Just kidding, just kidding, we don't have time here, right (laughs). >> It's just been fantastic because with all that change becomes all the investments that the healthcare companies are having to make, whether it's in EHR or EMR and as you look at changing out those systems of record that really run the critical patient care for those healthcare providers, it really presents a great opportunity. So what we've done is said let's leverage our core competencies of mission critical and let's gear that towards the healthcare space and let's leverage our compliance in HIPAA and other things like that and be able to bring to the market a capability that's multi-talented, that's utility oriented, but has that mission critical SLA that we're accustomed to providing our clients over the years. So we're very excited about that. We think it's a great market, a great industry overall, and we've seen fantastic feedback even in this show from clients who are very excited to now engage and what that could mean for them. >> So, Kevin, the connector announcement. VMware, we're at De\ll EMC World, VMware a huge part of the Dell Technologies' portfolio. What's the news around connector? >> So with the connector, what it really allows us to do is take what has been our cornerstone differentiation over the years, which is really around the mission critical, high service levels, when you think about guaranteed service levels, almost think of us as more of a managed infrastructure, as a service that has those high SLAs associated with it. So having clients be able to take the VMware estate and then be able to provision and manage workloads that are then being provisioned into the Virtustream, high SLA mission critical environment, is a big step for those enterprise customers. It's a big step for Dell Technologies as a brand. And it doesn't necessarily change the fact that you can also do that to other public cloud providers, you just get a higher level of service by doing it with Virtustream. >> So let's talk a little bit about that value prop of Virtustream. Doing the acquisition, it kind of made sense to me. EMC, traditional enterprise, high availability company, you know you had the VMAX 5, 6, 9s array. Virtustream, you guys did a wonderful job with taking a complex application SAP, providing some provisioning tools around that, and making that a consumable resource in the cloud. Talk to me a little bit about the conversations you've had on the show floor with traditional Dell EMC customers. Are they starting to really warm up to this expansion of the Virtustream brand beyond SAP into other mission critical apps? >> Absolutely, and that really represents the huge growth opportunity for us. As Virtustream we were very successful, as you mentioned, going into the SAP application space because typically SAP will be the system of record for a lot of these large enterprises. And what happens is, with your system of record, things like data persistence and performance guarantees, high IO, large footprint workloads, they're absolutely germane to those systems of record, but SAP is not the only application that fits into that category. When you look at all the different verticals and you look at the areas like we mentioned with healthcare and some of the key applications like Epic and MEDITECH and Cerner, and then you look at the other verticals, there are always these very key systems of record that require that sort of heavy weight capability around mission critical. And so leveraging all of our learnings in the application space, that we can bring that level of mission critical infrastructure performance with that application-centric automation that is focused on that kind of capability, it just makes sense. So it opens up the aperture in terms of the number of apps that we can now run on the Virtustream platform. Technically we could do it before, but now with the reach of Dell EMC, it not only allows us the account penetration by getting in there with relationships that are already leverageable with Dell EMC, but it allows us to also reach the partner community on the software side and be able to talk to application vendors that we can actually bring on to the platform as well. So we're very excited about that. >> So this isn't really anything new for you guys in essence. SAP is what I like to call one of those core center of gravity applications, it's heavy. You're going to have a lot of applications around SAP, and those applications are going to be just as critical, transaction applications, payment processing, big data apps, and you guys have hosted those applications before. What are some of the lessons learned from hosting the SAP ecosystem of applications that you're being able to now transfer that to other enterprise applications? >> Well there are a couple of very key lessons that we've learned. So first of all, you're absolutely right in the sense that when you have that mission critical nucleus, all the things that sit in the ecosystem come along with it. And for us, we've always for years been able to run anything that runs on the x86 platform, so we're certainly not limited to any specific application set. But what we've learned actually over the years in dealing with that concept of the ecosystem, the peripheral systems, is integration. And not only integration in the sense of technically allowing those systems to talk to each other, but we find is when a client is looking to set up a new training environment, or a new testing or QA environment, or they're even leveraging the concept of utility and consumption, if you don't need that system active at night, then you should shut it down. And if you don't need it on the weekend, you should shut it down, but yet in a lot of these complicated systems, the way in which the integration comes up and which systems talk first and then second and then third, are very critical. So over the years we've picked up on things like that level of application automation, what we call landscape management. So you're not just managing a VM, you're managing an entire landscape, which you have to blueprint and then say, for that blueprint, if you're going to shut it down, what's the way of doing that that's fastest, but also runs the least risk of data corruption or other issues that can occur if you just, for some reason, fall out of sequence. So that's one of the very critical lessons that we've learned. The other piece of it is really around tweaking the environments where we've found that by analyzing the actual resource consumption of these apps, which we measure on five minute increments, it allows us to have a much better introspection, if you will, of that entire landscape. And so it allows us to predict whether it's at night or certain times of the month, you know if you're in financial close as an example, or for some of our very labor intensive environments that have warehouses or manufacturing, time and attendance systems that kick in at certain shift change hours. And being able to predict when they need the resources and allocate those resources accordingly. So these are some of the very critical lessons that we plan to take from our years of running and perfecting the art of running SAP and taking them to some of these other mission critical applications as well. >> Well, Kevin, again, great news that you've launched this week in a couple of respects. Glad to hear the show's going well. And just want to congratulate you personally, I mean, I always like having co-founder on the show. It's just, you build something from scratch and obviously it's worked extremely well, so congratulations on that. >> Thank you very much. >> John: I admire that, so good for you. >> Thank you. >> Good to have you, Kevin Reid from Virtustream with us here on theCUBE. Back with more from Dell EMC World 2017 in just a bit. You are watching theCUBE here on SiliconANGLE TV. (bright techno music)

>> Announcer: Live, from Boston, Massachusetts, it's theCUBE, covering OpenStack Summit 2017. Brought to you by The OpenStack Foundation, Red Hat, and additional ecosystems support. >> Hi, I'm Stu Miniman, and my cohost this week has been John Troyer. This is SiliconANGLE Media's production of theCUBE, worldwide leader in live tech coverage. And this has been OpenStack Summit 2017 in Boston, Massachusetts. John, we came in with a lot of questions. One of my premises, coming into the event was that we needed to reset expectations, a little bit. I know I learned a lot this week. Still one of my favorite communities. A lot of really smart people. Really interesting things going on. Open source infrastructure is really the focus here. Start with you, big meta takeaways from the show so far. >> Big picture, my first summit, my first summit here. Didn't quite know what to expect. I love the community, a lot of activity. A lot of real world activity going on. People building clouds today. So that was very insightful and very, that's a great data point. As far as the ecosystem goes, a lot more talk about integrating with the rest of the open source ecosystem, about integrating with other public and private clouds. So I thought that there was also a lot of self awareness here about where OpenStack is on it's journey and how it might proceed into the future. So overall, I think, you know, a really practical, focused, and grounded week. >> Yeah, came in with the whole concept of big tent. I think which we said, there's a big hole poked in that. There's the core is doing well, there's a number of projects, I forget the user survey, whether you know, there's the kind of the six core pieces and then there's like 9 or 10 in the average configuration. So there's more than the core, there's interesting things going into it and last year I felt that OpenStack kind of understood where it fit into that hybrid cloud environment. As you pointed out this year, some of those upper layer things, I feel like I understand them a little more. So, of course, containers and Kubernetes, a big piece of the discussion this week. Containers definitely transforming the way we build our applications. It seems a given now, that containers will be a big part of the future and OpenStack's ready for it. We had yesterday, we had the people that did the demo in the keynote, but containers doing well. Kubernetes fits in pretty well, even though, I think it was Randy Bias that said, "Well, OpenStack needs Kubernetes." My paraphrase is Kubernetes doesn't need OpenStack. KubeCon is going to be in Austin at the end of the year and that show could be bigger than this show was here in Boston. Year over year, for the North American show, attendance is down a little bit, but still robust attendance, lots of different pieces. Containers, Kubernetes, you mentioned some of the other pieces, any other add-ons on that? >> Well now, I mean other than its worth saying that these are not either or, this is all and. If you look at the total addressable market, every place that containers and Kubernetes can play, that's every cloud in the world, right? It's up there at the application layer. If you look at where OpenStack belongs, it is in these private clouds that have special needs, that have, either from privacy, security or functionality latency, just data gravity, right. There's all these reasons why you might want to build out a public cloud and we see that with Telco. Telecomm is building out their own infrastructure, because they need it, because they run the network core. So that's not going away. As far as containers go, again the story was not either or, it's and. You can containerize the infrastructure. That's super useful. Sometimes being bare metal is useful. Separately, you can put containers on top, because that's increasingly becoming the application packaging and interface format. So, I didn't see a lot of ideology here, Stu, and that was refreshing to me. People were not saying there is one true way. This is a modular system that, at this point in it's life cycle, it has to become very pragmatic. >> John, I think that's a great point, because we knock on, and everybody knocks on, OpenStack's not simple and the reason is because IT is not simple. Everybody has different challenges, therefore, it's not a Lego brick, it's lots of ways we put it together. Had some really interesting deep dives with a customer, couple of users today. The Adobe advertising cloud, Paddy Power Betfair, both of those gave us real concrete examples of how and why they build things the way they do. How OpenStack and Kubernetes go together. How acquiring another company, or switching your storage vendors is made easier by OpenStack. So, we've talked to a number of practitioners, they like OpenStack, reminds me of VMware. People like being able to build it and tweak it. Very different scale for some of these environments, but people are building clouds. The Telecom's are doing some good things. All the Linux companies are super excited about the future, that it helps them kind of move up the stack and become more critical environments and how it all ties into this multi-hybrid cloud world. Digital transformation, many of these pieces, I need that modern infrastructure and the open infrastructure coming from OpenStack and related pieces pull it all together. >> Well, where is the innovation going to come from in this next generation of cloud? I thought our segment with Orran, talking about the Massachusetts open cloud, was great, because he's there as a computer science professor, somebody who's been intimately involved with virtualization, with IBM, with VMware, saying, "Okay, we need to build this next generation. "Where can we innovate? We have to own the stack "and OpenStack is a great way for us to innovate "with those different components." One of the challenges, because OpenStack as a set of technologies, is so modular, is where's the knowledge come from? Where's the knowledge transfer? Can you find an OpenStack expert? Do you have to grow them? So, I see that as one challenge going forward for the OpenStack community, is how do we grow the knowledge base? How do we make sure that people are trained up and able to architect and operate OpenStack based clouds? >> Yeah, John, how about the individuals themselves? We talked to Lisa-Marie Namphy about the Ambassadors Program. We talked to a number of our guests throughout the week about training everything, from Orran Krieger, talking about how his students are helping to build this, to engagement contribution. I mean it's nuance, when I look at the future of jobs. A lot of companies here are hiring. Which is always heartening to me. What's your take on that aspect? >> Well, it's still a very vibrant community. You look at these different camps, a lot of them are vendor affiliated these days. There are very few communities that are outside of a vendor and these open source foundations are one source of those. I think, look there's still 5 or 6,000 people here, right? This is not a small event and these people are active, hands on operators, for the most part. So-- >> Yeah and the thing I'd point out, there are lots of companies that have contributors here. The other category is still really big here. A point Lisa-Marie made, many of the people that have contributed here have switched jobs a number of times. NASA helped start it. They kind of left, they came back. Some of the big Telecom companies, they're not selling OpenStack, they're using it to help build their services. So, it's like wait, which are vendors, which are providers? I think we know everybody's becoming a software company. Wait John, TechReckoning, are you a software company yet? >> We use a lot of soft, we use a lot of cloud, mostly on SaaS side. >> At SiliconANGLE Media we actually have a part of our business that is software. We've got a full development team, you know open source plays into somewhat we do, but I guess what I'm saying is, the traditional demarcation between the vendor and the consumer in open source tends to be blurring. I don't remember in the keynote if they had, hey how many people have contributed to the code. That's something that we used to get, partially because we have splintered out this event a little as to, the goals, it's no longer the people building it. They've got lots of ways to do that and a lot of the drama's gone. We had for many years in OpenStack, it was who's going to own what distribution and who's driving what project and a lot of that's come out. We talked about the last couple of years, has it become boring in certain ways? But it's important, it's driving a lot of pieces and OpenStack should be here to stay for awhile. >> Yeah, it's part of the conversation. I love the term open infrastructure. We heard it once or twice. We'll see if that becomes a topic of conversation. Going back to Lisa-Marie Namphy's segment, I encourage people to check out your local OpenStack meet-up right? You'll find that other conversations are going on there, other than just OpenStack. This is an ecosystem, it interacts with the rest of the world. >> Yeah, and talk about that next generation, edge is really interesting, the conversation we had with Beth Cohen. Also talked to Lee Doyle from the analysts perspective. Lots of cool things happening with that next generation of technology. 5G's going to play into it. So, there's always the next next thing and OpenStack's doing a good job to, as a community, to be open, working with it and understanding that they don't need to be all things to all people, certain other pieces will pull in and we have that broad diverse ecosystem. >> Looks a, I'll go out and make a prediction, I think in five years, we're going to look back and we're going to say, actually, OpenStack driven plumbing is going to be driving a lot of the next generation to the internet. >> Yeah, I love that, actually I forget if it's two or three years ago, what I said was that, as Linux took a long time to kind of work its way into all the environments, OpenStack pieces will find its way there. Brian Stevens from Google said, "If it wasn't for open source, in general, "Linux specifically, we wouldn't have "any of the hyperscale guys today." All those companies leverage open source a bunch. We've heard whisperings that, not just the telecommunications, some very large global companies that are trying to figure out how OpenStack fit into it. Coming into the show, it was all the talk about, oh, Intel stopped its joint lab with Rackspace, HPE pulled its cloud out, there's some other hyperscale companies that are looking at OpenStack. It's reached a certain maturity and it will fit in a number of places. All right, well, hey John, we started the beginning of the week, it was cloudy and overcast, a little cool in Boston. The skies opened up, it's blue. I've loved having two weeks here in Boston. Really appreciate you joining me for the journey here. Here for the OpenStack Summit. >> Thanks for having me, it was fascinating. >> Thank you John. Want to thank our audience, and thank the whole team here in Boston, and the broad SiliconANGLE media team. This is our biggest week that we've ever had, as to how much content we're creating. So, thanks so much to everyone. Thanks for our community for watching. As anything, when they scale, let us know if there's things we need to fix or feedback that you have for us. For Stu Miniman, John Troyer, the whole team here in Boston and beyond, I want to thank you so much for watching theCUBE. Be sure to check out SiliconANGLE TV for all the upcoming events. Let us know where we should be at and feel free to reach to us with any comments, and thank you for watching theCUBE. (light techno music)

>> Announcer: Live from Las Vegas, it's The Cube covering Dell EMC World 2017 brought to you by Dell EMC. >> Welcome back here on The Cube, the Flagship broadcast of SiliconANGLE TV. We rap up our coverage today, day two of Dell EMC World 2017. We're live in Las Vegas. I'm John Walls along with Rebecca Knight and joining us now all the way from Tobacco Road Patrick Williams, who is the IT Infrastructure Architect at North Carolina State University in beautiful Raleigh, North Carolina. Patrick, thank you for joining us. >> Thank you. >> Tell us first of all, you know, academically, you're the first, somebody from that community that we have a chance to speak with over the past two days. What are you seeing here that you are going to find of interest that you might want to take back with you to Raleigh, that maybe you're going to put into practice? >> Right, so we're really taking a look at the technologies that we have in play, and there's been a lot of new announcements at the conference this year, so we have Unity Storage, we have Data Domain and there's been announcements pretty much across that product spectrum, so we've been looking, going to breakout sessions talking to the experts and trying to take a look at the technology and see how we can take advantage of the new features that are offered in our environment. >> So before the cameras were rolling, you were setting the scene a little bit and describing the kinds of data needs, security needs that you have for a busy, thriving, and large college campus. Can you lay that out for our viewers? >> Right so for a college campus, one of the biggest concerns is around security, so there's a mandate or desire, probably as part of the academic culture to be as open as possible because the goal is to exchange ideas and to share resources between the university and across our set of institutions. So contrast that with the reality that we have to maintain a high level of security now, so there's obviously a lot of incidents. We are a Google Mail university and as you know, there was recently an attack on Gmail, right? So one of the things that we've had to do is to say, "We're going to implement Two Factor Authentication. "We're going to develop a classification system "around how we assess and manage data," so depending on the category, there's different levels of security that are in put in place in our (mumbles) environment, while also trying to remain as open as possible. >> So you have a lot of competing interests, it seems, in trying to balance those interests, is how much of your job? >> 100%. (laughing) Yeah, so what I would say is that in order to be able to get proposals forward, I have to be able to make the case on all sides of the equation, so I have to make the correct academic case. I have to make the correct business case. I have to make the correct cultural case and if I can make those cases coincide, then we can succeed and move things forward and get proposals. >> 'Cause you're saying that at NC State, it's not central IT. You're in IT, but there are some more schools that have options, they can make their own decisions, and so I would think coordination, integration, are not barriers, but certainly challenges. >> That's right, so we are, we call ourselves a central IT group; however, there is no mandate for each of the colleges to use central IT services, so our goal is to create kind of a foundational set of services that the consumers then in come and build on top of rather than building their own resources and we like to see that grow kind of organically rather than to mandate it, use of central services, and we've actually had great success. So we've had a lot of resources to come back from the edge into the central folds and be able to grow that centrally, put a higher level of resiliency on top of those services and satisfy our customers. >> In terms of one of the challenges, though, cost is a huge one, and then making sure that things do come within budget and not a penny over. Can you talk a little bit about some of those obstacles and how you've overcome them? >> Right, so cost is everything for us. Our budgets have been flat for the past three years, but the demand for growth in capacity and existing environments and the demand for new services is ongoing. What we've been able to do is to work really hard on assessing our resources. We've implemented Cloud IQ a year ago when it was first announced to get a kind of a long-term view of our environment and kind of track our growth, and that has enabled us to put the right data in the appropriate tier and be able to maximize our investment and that's really helped us be able to continue to grow our environments as we move forward. >> When you're talking about the different clients or constituencies you're trying to please: you've got the students, the faculty, the administration, and the staff, what do students want, what do faculty want, and how do you give them what they want? >> That's right. So students, is really interesting because the student perspective has really changed over the past couple of years and it caught us off-guard. We have a pervasive data network on our campus. We have all the dorms wired. We have about 21,000 students total. About 8000 stay on campus. All those dorms were hard-wired, but we did not have wifi enabled in all the dorms and we survey students every year. Last year we surveyed them and we got very bad marks because that, even a jack was not enough for them. If you look at what you typically show up with now, how many devices have a hard-wired jack, none, right? So they show up with four devices. They couldn't use any of them on our data network and their response on the survey was, the one that I remember the most was, "Our lives depend on wifi," that was the quote. >> Of course. >> We, of course, immediately went and looked at how we roll out 4000 access points right away. We did that over a summer. That was able to succeed. We also have a very unique set of challenges in that because I mentioned that, we only have 4000 students, slightly more than that, that stay on campus. The majority of them move back and forth between classes so 10 AM when 5000 people walk by one access point. >> When they've just woken up. >> That's right. >> 10 AM. >> Or log in to check their email, et cetera. So those are unique challenges so what we had to do is what are the tools to track the application resources? What's normal application performance? What's a normal peak and what's a breakout that's outside of the normal, and how do we profile that and we want to be well ahead of the demand so that we can put those resources in place ahead of the need. >> So what do you do about the challenge of future deployments? Your budget's going to be somewhat constrained. You know your needs are increasing. You know your constituents have new and growing demand. So, I mean, tough nut to crack, isn't it? You're trying to make your cloud strategy. What are you going to do with that? The 4GG server coming on board now, how do you find, or how do you balance that from the academic perspective? >> You mentioned that and also I didn't mention that one of our data centers is aging and so on top of all that, we're also starting to see, put a strain on our data center resources. What we really hope to be able to do is to leverage some type of a hybrid cloud strategy. The challenge for us has been, what is our application profile? If you look at applications that are a great fit in cloud and applications that are not a great fit in cloud, the traditional backend applications, the core infrastructure applications are not necessarily a great fit, and so what we're trying to figure out is what is the best hybrid solution that will help you move our environment forward and still leverage existing resources. >> So looking ahead, what does the college campus of the future, the technology-enabled college campus of the future look like? Give us a picture. >> I think one of the best examples i can give is our Hunt Library, so we opened a new library on what we call our Centennial Campus a few years ago. It was designed from the ground up as kind of a new model of what does the next generational library look like because it's not, if you think of a library now, you don't think of a traditional, okay, here's a building and stacks and stacks and stacks of books. So they put the books off in a corner and there is a large robotic library that's designed to handle the books and the bulk of it is about collaborative spaces, so there are high-end collaborative work stations, consolidated areas. There are students that are in the design school. If you want to go and practice your DJ skills, you can do that there as well, so that's where things are really headed. >> So Patrick, before we let you go, my final question is, when are you going to beat Carolina and Duke at basketball? >> We're waiting, so we have that US Championship banners from the '80s and I'm tired of looking at that, so we're really looking forward to-- >> Those days are long-gone. >> Right. >> Right, Patrick Williams, NC State, thank you for being with us here on The Cube. Safe travels back home and continued success at Raleigh. >> Thank you. >> Appreciate the time. >> Alright. >> Good. That raps it up here on The Cube, day two is in the books. We'll see you back here tomorrow morning at 11:30 central time, that's 2:30 on the East Coast, for more interviews live from Las Vegas, until then. For Rebecca Knight, I'm John Walls. Have a good night.

(energetic music) >> Narrator: Live from Boston, Massachusetts it's the Cube, covering OpenStack Summit 2017 brought to you by the OpenStack Foundation, Red Hat, and additional ecosystem support. >> Hi and welcome back to SiliconANGLE TV's production of the Cube here at OpenStack Summit 2017 in Boston. I'm Stu Miniman joined with my co-host for the week, John Troyer. As you can see behind us, the day 2 keynotes letting out. John, it's always interesting to look at these shows. They had some demos that were awesome, a couple of demos were the demo gods were not smiling on them. They had Edward Snowden live via Q&A. They had Brian Stevens, who we're going to be talking with in a little bit, the CTO of Google, who was on The Early Start. For me, they're a little up and down. There's some of the vendor pitches in there, people are like, "Oh I have a great demo," and then you say, "Come to my booth "and see a bunch of my sessions." So, a little bit uneven and disjointed, which has been a some of the feedback you get about OpenStack in general over the last few years as to all those pieces come together. But yeah, what are your early thoughts coming out of the day 2 keynote? >> Well, it was definitely a keynote focused at the OpenStack community. We started off with open source and talking about the importance of open source, which is a little bit odd, because everyone here know that. I did like the message that OpenStack was composed of different projects, that it was a piece of the puzzle, not the whole puzzle. You and I both noted VMware's Scott Lowe tweeted, "It's good to the OpenStack Foundation talking about being a part of the overall solution, not the overall solution." I mean, as one example, they mentioned using etcd, which is a distributed key value store, instead of writing their own. Etcd powers Kubernetes. Your would be insane in 2017 to rewrite or distribute a key value pair, sorb at this point. Because, it's just out there, it's mature. You know, OpenStack has been around for seven years. There's been a lot of ecosystem grown up around them. >> Yeah, yeah. A couple of pieces on that. One is, there was a message about like, oh I can now take the individual components of OpenStack. I could actually do that before. I've noted, I've talked to a number of software companies, that when you did down into what they're doing, oh what do you know, there's, you know, there's Syndrr. Or, there's, you know, something in there, just as when I use AWS, I can use some of the individual components, same thing with OpenStack. It's not a monolith. There are the individual pieces. But, they're highlighting that a little bit more. They're saying use some of the pieces. The other thing, on the open source in general, they noted that like, in the artificial intelligence machine learning space, like, everyone that you see is using open source. Everything from Google and TensorFlow, is one that gets highlighted a lot. Amazon made a big push at their show about what they're doing with, you know, some of the machine learning. I can't remember right now, the program on there. But, right, in some of these emerging spaces, open source is the defacto way to do that. We had, in one of the conversations we had yesterday with one of the Cysco Distinguished Engineers, you know, it used to be standards. Now, open source really drives a lot of that. I actually got a quick conversation with Martin Casado, who had, you know, worked on a lot of open source things before Vmware acquired him. And, now he's at Andreessen Horowitz looking at all the open source models. So, unfortunately Martin didn't have enough time to come on the program, but we've had him on many times. Yeah, so sometime he's going to do that. >> Stu, I have a question. >> Stu: Yeah. >> The message today of being part of an ecosystem and being a componentized, open source set of projects, does that detract or add to this conversation around OpenStack Core versus Big Tent? >> I think Big Tent is dying. We talked to a number of the participants yesterday and said it was a little overblown. It does not mean that some pieces might still get worked on, but it's the core components. And you know, when dug into the survey, how many of the pieces do we really need? We want to make sure the Core works. I can have that distribution if I want to do what is OpenStack. When they highlighted those components, it wasn't 27 different projects there. You know, I think it was a handful of like six. >> Yeah. >> That were there. So, you know Swift and Syndrr, some interesting, cool little graphics. It was ironic, I tell you. The little graphic there, that was like a scary looking bear. It's like, I wouldn't want to run into him in a cartoon alley. Uh, but (laughs). >> Yeah, I did tweet. Yeah, there was an angry bear, kind of a poisonous spider, and a horse's behind. So, I'm not quite sure about the marketing there. But (laughs). >> What is the message you're sending? But, there's some fun. We've got, you know, Mark Collier and Jonathan Bryce coming on soon. We can ask them, you know, was this the community? And are there just some people that have a funny sense of humor, and this is how they show it? >> I did love the demos in today's talk, Stu. I especially liked, they spun up, live on stage, 15 from scratch, OpenStack clouds. And then, had them all join a CockroachDB cluster. I thought that was kind of cool and amazing. >> Yeah, absolutely. You talk about that hybrid, multi cloud world, showing it, you know, in reality, how that works. Pretty neat, and you know, you can actually see some applicability as to how that would fit into a customer environment. And, kudos to all the people. I mean, these were live, no net demos, not Camtasia, not some prerecorded things. Because like, oh wait, this thing's not quite ready to be able to be bootable, or you know, let me come in. I mean, they're up there on stage doing it. The wifi all seemed to work fine. That wasn't a challenge, but yeah, it was pretty cool. >> Well again, trying to give the message that OpenStack is indeed not a science project. That it's live, that it's configurable, that it's stable, that it's installable. And, I think that kind of message of stability, and configurability, and simplicity maybe is one of the ones they're trying to hit here today. >> Yeah, last thing I want to hit on, John, is I want to get your opinion. We throw out the term "open" a bunch. And, I'm watching some of the other industry things, and they say "open" when they mean "choice," as opposed to "open" as in "open source." So, you know, we see Google here, and Google talks about open. So many things that are now open source, a lot of times started out as a Google white paper or something. As we all say, we're all using open source which Google was using 10 years ago, right? You know, MapReduce, and Borg, and Spanner, and some of those things eventually get their way out. I've got some view points on this, but love to get your take first, yeah. >> Well, I mean, definitely it was an homage to open source this morning. In some ways, it was kind of a dig at AWS and Amazon, which uses a lot of open source tools, but does not share back. You know, OpenStack is clearly open source, and they were emphasizing that. I don't know. What are your thoughts, Stu? >> Yeah, it's, customers now, it used to be if you said open source, you know, go back 10, 15 years, and it was like, ooh, no. Now, open source is, a lot of times, a plus, something that they're asking for. Many companies are contributing and engaging in that. OpenStack is a great example of companies that have participated, you know, in helping to build OpenStack. That being said, you know, I always go to, you know, what's the problem to be solved, what's the solution that solves it. And, if it happens to be a little bit pre standard, or not 100% open source, most companies are fine with that. We were at Red Hat Summit last week with the Cube though, and everything they do is 100% open source. They're building their business. Their customers are really happy. So, you know, open source still has a little bit of a double edged sword as to how you do it. But, you know, open source absolutely, there's no question of if open source, it's how much, and to what extent, and where it fits. >> Sure, there is an ecosystem of providers here. There's always lock-in when you make a technical choice. But, in this case, I think they've successfully were trying to show off that there is a choice of clouds. There is an open, a set of open source components that you can mix and match. And so, that actually ties in very well to the interview with Edward Snowden. >> Yeah, absolutely, yeah. It was, and last point. Edward Snowden, towards the end he said fear is, I think the quote was, "the most powerful weapon in the world today." From a political statement, is what he's doing. Fear in IT is a powerful weapon. We know that, you know, enterprise and inertia, you know, tend to go together. With my background in networking, I used to draw these timelines. And, say, from when the time the standard was done to when, you know, the early majority adopt, is often times a decade. So, the technology adoption, moving the operational, we know the people piece is always tough to do, moving my applications. We think people are definitely moving faster, but fear is definitely something that holds them back. What do you see, john? >> Sure, I think the through line of the whole morning was about choice and diversity. Edward Snowden talked about the centralization of information services like Facebook, Google, and Twitter. And I think, and I think by implication, Amazon. And, I think the message that he was giving to the OpenStack crowd was look, you are enabling a multitude of services and a multitude of clouds, and that actually is a lever, a cultural lever against the over centralization of commercial forces, which are a little bit outside people's control. >> Yeah, so John, thanks for helping me wrap up day one. As always, we welcome our audience to please send us feedback. John and I are both pretty active on Twitter, very easy to get in touch with. We are at so many shows. You can check out SiliconANGLE TV. See where we're at. If we're not at a show that you think we should be at, reach, there's contact information at the top. If there's guests that we should have on our program, we're always looking for feedback. Love to get, especially those end user stories, talking about with interesting startups. So, we've got two more days of live coverage. So, for John and myself, stay with us. And, thanks, as always, for watching The Cube. (exciting music)

>> Narrator: Live from Austin, Texas, it's The Cube covering DockerCon 2017 brought to you by Docker and support from its ecosystem partners. (upbeat tech music) >> Hi, I'm Stu Miniman and this is SiliconANGLE Media's The Cube. We're the worldwide leader in enterprise tech coverage. Happy to be coming to you from DockerCon 2017 here in the Austin Convention Center of course in Austin, Texas. My host for the next few days will be Jim Kobielus, Jim thank you so much for joining us. >> It's great to join the team. >> Alright, so we'll get to you in a second, Jim, but first of all, it is the fourth year of the DockerCon show Docker The Company, just celebrated its fourth year of existence, CEO Ben Golub started off the keynote Founder, CTO, Chief Product Guy, Solomon Heights, introduced a bunch of opensource initiatives, did a bunch of demos, the first DockerCon event back in 2014, I actually had the pleasure of attending, was my favorite show of that year, I got to hear some of these HyperScale guys talk about how they were using containers, how Google spins up and spins down two billion containers in a week and there were about 400 people there and Docker, the company, was 42 people. Fast forward to where we are today in 2017, Docker, the company, I believe is 320 people, there is over 5,500 people here, you can see 'em all streaming in behind me here as the Keynote just let out, so, we've got two full days here of coverage. This morning, we're going to go through a little bit of the news, talk about who we're going to cover, but first of all, I want to introduce you to Jim Kobielus, so John Furrier sends his regards to the community, he's real sorry he couldn't make it out, just had some things came up at the last minute, so he couldn't come, but stepping in for him with lots of knowledge and experience is Jim, so Jim, please, for our audience that hasn't gotten chance to see, you did some intro videos with our crew out in our 4,500 square foot Palo Alto studio at the beginning of the month, but why don't you tell 'em what brought you to the SiliconANGLE Media team, your background, and what you're going to be doing. >> Great, yeah, thanks Stu. Yeah, I've joined just recently in the last few weeks, I am Wikibon's lead analyst for application development as well as data science and deep learning. I create data science and the development of artificial intelligence as a huge and really one of the predominant developer themes now in the business world and really much of that that's going on in business in terms of development of the AI applications is in the form of microservices in containerized format for deployment out to multiclouds and increasingly serverless computing environments. So, I am totally pumped and excited to be at DockerCon and there were some great announcements this morning, I was very impressed that this community is making great progress, both on the sheer complexity and sophistication of the ecosystem, but on just the amount of support for Docker technology, for Kubernetes and so forth for the full range of technologies that enable containerized application development. Hot stuff. >> Yeah, Jim, and you talked about things like community and ecosystem and that was definitely the theme here day one. Docker did some changing in their packaging since we were at the show last year. They now have Docker CE which is the community edition. Focus on the developers and today was developer day. I'm pretty sure everything that was announced today is opensourced, it's in there, it's in the free version. I expect tomorrow we'll probably hear more about EE, it's the Enterprise Edition >> Enterprise, yes. >> A question I know we all have is how is the monetization of what Docker's doing progressing, the press and analyst dinner last night, I heard from a Docker employee and said look, we all understand, we are the early days of the monetization of Docker, but Solomon, this morning, said really, the success of Docker the company is tied directly to the ecosystem. We've got Microsoft coming on today, we've got Sysco, Oracle, lots of partners coming on this week talk about what Docker's doing, what's happened in opensource is going to help a broad ecosystem and all, not just the developers, but enterprises and the companies, so, what are you looking at this week, what are you hoping to come out of, what grabbed you from the Keynotes this morning? >> Well, grabbing from the Keynotes this morning is the maturation of the containerized Docker ecosystem in the form of greater portability, in terms of the LinuxKit announcement, we'll get to that later, as well as great customization capabilities to the Moby project. This is just milestones in the development and maturation of a truly robust ecosystem of innovation, really, what Docker's all about now that it's a real platforms company, is helping its partners to be raving successes in this rapidly expanding marketplace, so, that's what I see, the chief themes so far of this today. >> Yeah and it's interesting, one of the things we've always looked at Docker is like what does the opensource community do, what does the company do, what's the co-opetition play? Two years ago at the show in San Francisco, there was taking the container run time and really making sure that's opensource. You had the CoreOS guys and the Docker guys hugging. I got a picture of Ben Golub and Alex Polvi standing together and it was like oh, okay, that little cold war was over. LinuxKit is something we're going to look at, they lined up some really good partners. We got Intel, Microsoft, HPE, and IBM, but, we're going to talk to Red Hat and Canonical and see what they think about this because from the Linux guys, I've been hearing for the last couple of years, well, Linux really is containers. It's all just something that sits on top and containers, of course, is the Windows variant now, too, but you just buy your Linux and Containers comes with it and now, we say oh, we've got LinuxKit which is, I'm going to have a distribution that's fast, optimized, four containers that Docker and that ecosystem they're building's going to do. >> Same as everywhere, I mean Ben Golub laid it out maybe with Solomon this morning. Containers are really the predominant packaging of applications large and small across increasingly not just traditional enterprise and consumer applications but also the internet of things, so, but internet of things and the development of AI for the IOT is a huge theme that I'm focusing on in my coverage for Wikibon. I see a fair amount of enablers for that here. >> Great, and Jim, and absolutely, there was a big slide with Docker will be where you need to be, so, whether you're in the public cloud, of course, there's container services from, we've got Amazon ECS right here. You've got what's going on with Google and their containers. Microsoft Badger of course, so, there's so many pieces, so, a lot we're going to go through, we've got a full slate of interviews, of course, everybody can watch here at SiliconANGLE TV. If you want to participate in social conversation, John Furrier's actually been banging away, it's CrowdChat.net/DockerCon is where we're having some of the social conversations, of course, you can always reach out, I'm just @Stu on Twitter, Jim is @JamesKobielus which you'll see on the lower third when we put him up here is where he is on Twitter, if you're at the Expo Hall, you'll see the Expo Hall's behind us, we're just in the corner of the Expo Hall, going to be here for two days. Jim, I want to give you the final word on our intro here, come to the end of the day, what do you hope to have walked away with? >> Well, I hope to walk away with a more rich and nuance understanding of this ecosystem and the differentiators among the dozen upon dozens of companies here. Partners of Docker. Really what I see is a huge growth of the Kubernetes segment in terms of orchestration, scaling, of cluster management for all things to do with, not just Docker, but really Container D, which, of course, Docker recently opensourced, it's core container engine. I think this is totally exciting to see just the vast range of specialty vendors in the area providing tools to help you harden your containerized microservices environment for your CloudNative computing environments, that's what I hope to take away. I'm going to walk these halls when I'm not physically on The Cube and talk to these vendors here, exciting stuff, innovation. >> Yeah, absolutely, and you gave us so many pieces there, Jim. You mentioned Kubernetes, of course. There is that little bit of do I use Dockers Forum or do I use Kubernetes? Docker, of course, would like you to use Forum, that's what they're >> And in fact, that was an excellent discussion this morning about swarms advantages as well. I don't want to make it sound like I'm totally shifting towards Kubernetes in terms of my preferences. I mean, clearly, it's a highly innovative and dynamic space, so, Docker is making some serious investments and beefing up their entire enterprise stack including Swarm. >> Where I wanted to go, actually, with that is the Moby project actually is one of those things I saw as a nice maturation of what we hear from Docker. For the first couple of years, Docker said batteries are included but swapable, which means things like Swarm are going to make it in there, but you could use an alternative, so you want to use Kubernetes, go ahead and that's fine and Moby has allowed them to take all the components that are opensource. People inside Docker can work on them, people outside can collaborate them, much more modular. Reminds me of how when we talk about how development teams work, it's those two pizza teams, Docker has them internal, they're pulling more people in, how is that opensource collaboration going to expand? Scalability, I think, is the word that I heard over and over again in the Keynote. Scaling of the company, scaling of the products, scaling of the ecosystem, so something more interesting, say, we've been scaling our operations and we got two full days here of coverage so make sure to stay with The Cube for everything we've got here and thank you for watching The Cube. (upbeat tech music)

>> Male Narrator: Live from San Jose, California, in the heart of Silicon Valley, it's the Cube, covering QuickBooks Connect 2016. Now here are your hosts Jeff Frick and John Walls. >> And welcome back inside the San Jose Convention Center here at the Cube, along with Jeff Frick, I'm John Walls, appreciate you joining us here as we continue our coverage of QuickBooks Connect 2016, live here on SiliconANGLE TV. This is the flagship broadcast where we extract the signal from the noise. And Jeff, we're on the home stretch here through the second day, I could stay here for a few more days. Great guests, great lineups, great keynotes, and a lot of energy here on the floor I like. >> Lot of energy, I love these kinds of shows because it's really about helping people be successful and we're talking about real things, and again we keep coming back to products and solutions in technology but for most small businesses it's about cash. It's about cash flow. >> Being successful, Rania Succar, is now joining us, she's a QuickBooks Financing and Director there at QuickBooks, and we appreciate your time here, Rania. >> Great. >> So tell us about just the overarching mission, right, cause as Jeff said, helping people, giving them access to capital, badly needed, small businesses, it's a critical need, and what QuickBooks does on that, with that, on the financing platform. >> Well you guys have seen it here for the last few days. The QuickBooks team is absolutely focused on helping small businesses survive and thrive. Everyone here's trying to crack that, and you just said it, cash is one of the biggest pain points that small businesses face. Whenever we talk to small businesses, the first thing they tell us is the thing that keeps them up at night is cash flow, and we also know one of the biggest reasons that small businesses fail is they can't get access to cash flow, and to cash, and so the team a couple years back said we've got to crack this in order to help more small businesses survive past the five year mark and be able to put their dreams into action. So with that in mind, we took a look at financing and for small businesses, it's a fairly broken process, so we're working to reinvent small business lending. It's broken for a couple of reasons, one is, if you have ten businesses that go into a bank to apply for a loan, only three get approved, and it takes over 30 hours of work for a small business to do that application to a bank, so it's right for innovating and improving the experience for small businesses, so what we do, is we're hyper focused on making the experience better in three ways, first, we're trying to drive up the approval rate, and we do that with the incredible clarity and we do that with the incredible clarity with which we can understand the small business based on the data that we have. We understand the small business ecosystem better than anyone, and we understand the full picture of a small business' credit worthiness, and financial health better than everyone, anyone. We can give them access to-- we can help them get credit for all the future invoices that they have coming in, we understand the strength of their customer base, you put that together, we can drive approval rates up. The other thing we're focused on is the time it takes to apply. You need to put together tax returns, and interim financial reports if it's the middle of the year, and bank statements, it's very frustrating. We have most of that information in the Intuit space, and our vision is rather than even applying it's just available for you in QuickBooks when you need it, and the third thing, so approval rates, the time it takes, the third thing we're very focused on is the guidance. Small businesses need advice, most of them didn't get into running their own small business because they knew anything about finances, they had a dream and they wanted to put it into place, and so we're very focused on taking the insights we have about a small business to help them get lending that's right for them with confidence that they're getting the right financing for their business. So we can help them predict when they're going to need financing, and we can connect them to an accountant because we know over a million of our small businesses are connected to accountants. So that's what we do, and this week as you heard, we just announced we crossed the half a billion dollar mark in financing in small businesses. >> Now, say that again. >> Half a billion dollars. >> Half a billion dollars of financing. >> Congratulations. >> We're incredibly proud, we're incredibly proud. >> Let me ask you a couple details, so my kids are going, they're applying for college right now, so the CommonApp-- >> So, Jeff will need somewhere shy of half a million of that money. (Rania laughs) >> Do you have like a CommonApp inside QuickBooks which is a defined kind of definition that then gets shared with the lenders that want to participate in the market, or do you have like a defined QuickBooks FICO score, if you will, based on these other parameters that you have that then get shared with the lenders, how do you kind of, you've got all this data, it's my data, but I'm allowing you to use in such a way to help me get this loan in this market place. How does the actual mechanics work. >> I love that, we're a platform, almost like an Amazon in a sense, where you go to Amazon, you have one thing that you want to get and you get access to multiple different providers, so we're a platform. Right now, the way that it works, there is a CommonApp, but the amazing thing is you don't have to fill it out because we have all the information inside QuickBooks so we pre-fill it for you and ask you just for a couple of things but we do all the work and then we figure out which of our lending partners based on what you need, we've got about a dozen, are best suited for your needs, and then we send the information to the lenders with your permission and then you get all your offers right there, and the really neat thing about what we do is we compare the offers apples to apples, this is pretty incredible, we're super focused on transparency, this is a big part of our value proposition, we always disclose the APR of the loan, we always show the loan cost apples to apples so that you know exactly what you're getting, we show you things like what are the fees, what are the pre-payment penalties, so it's super clear, super transparent, and you know what you're getting. >> It's like the comparison shopping table. >> Exactly. >> You lay it all out and I can make my decisions. >> Exactly. >> And then how long does it usually take on a relatively smooth process given the fact you're already pre-populating the data, it goes out, what does it usually take? >> A lot of our lenders fund within the same day. >> Jeff: Within the same day? >> So you literally with a lot of our lenders, if everything goes right, you can apply within minutes and get funding in your bank account the same business day. >> The money goes through the same system as well. (Jeff chuckles) >> There are lenders, and we have a portfolio of offerings, so we'll work with, we have an SBA lender, we've got work in capital lenders, if you're going through the SBA process it's a lot faster through our process than it would be if you applied through a traditional bank, but it still could take a couple of months in that case, so we make that very clear, when you choose the offering that you want, if you're in need for financing right away, it can happen very quickly, if you're willing to wait a couple more months, in the worst case, in the case of an SBA loan, on average, it's less than a week. >> Well it seems like you have so many pieces in place to make it much more convenient and much more reliable and I guess much more predictable for a small business, what about approval rates then, what, you said three out of ten? >> That's the current. >> On average, is that the current, is that your average? >> Ours is better than that, it's not quite there, you know, we have a really high aspiration on that, where we'd like to be able to get, you know, we'd like to get it closer to 60 or 70 percent over time, the approval rate, so we're still moving in that direction, we've got a great team, we've got tons of innovation and R&D happening right now back in Mountain View, we've got a ton of data scientists that are combing through this data and improving the approval rates all the time, so that's an area where we're innovating and really pushing for our small businesses. >> And so, nice announcement this week, well better than nice, great announcement this week, but you're always looking, as you said, for the next best thing. >> Rania: Yep. >> And so what have you heard from your client base that says okay, we've addressed this, now this is where we need to pivot, this is where we need to go, like what's the next big hurdle or next big challenge that you think you need to handle? >> It's innovating on those three areas I told you, and on each of those three we've made quite a lot of work and quite a lot of headway in the last few years, but there's so much more room, and so like I've said we have this team of phenomenal data scientists working to find those areas of advantage for small businesses where we can help them get approved more often. We've got the team that's trying to really make it to a point where you're in QuickBooks and you can see your financing offer before you even apply. We want to get rid of the application altogether and just service the best offer for you, and then all the prediction for when you're going to need financing and that cash flow prediction, looping in the accountant so the accountant can immediately see all the options you were given and they can talk through them with you. >> And your clients can find out right away, the customers, if they did not get approved. >> Right. >> Where's the trouble area, where did the red light come on? >> That's right. >> Because of the figures you're able to consult with them and help them maybe shore up their bottom line? >> We don't do enough of that today, it's absolutely in our road map, so that's a huge opportunity because we have a relationship with small businesses, it's not like a transaction where you go to a website and you apply for a loan, we're in it for the long term to help small businesses grow and so you can imagine, and this is where we're headed, when you start, you know, you get your first financing, it could be a credit card, and then a year or two later we see that you're financials have improved and we consult you on the next offering and all the way you get better terms because you've been with us for a while and we can help make sure you're getting better financing deals over time. >> It's a really interesting situation, because, you know, hopefully over time, really it becomes, we always talk about kind of looking back, and then predictive and then prescriptive, so in theory, as you're moving down your path, as you're growing your business, it should actually flag you, right, hey, by the way you've got a big event, seasonalities coming up, oh we just noticed you just locked in a big purchase order, somebody's late to pay et cetera, it might be a good time to get actually ahead of the curve before you even know that this event is coming to go ahead and make even up to in making the offer. >> Absolutely, you know, you're getting ready to, you know, for the holidays and have you thought about making sure you've got enough financing to buy as much inventory as you want this year so you can take advantage of the seasonal trends we're seeing. Or we're seeing a lot of retailers, you know, really heavying up on inventory, have you thought about doing that as apart of your strategy, it looks like it could be a good year, so there's so much opportunity there, we can pair every small business owner with a line of credit so that they can manage payroll at any given time and never have to worry about the cash flow ups and downs that come. >> Right, and then I would imagine too, within like those different offers, not only apples to apples across the same type of loan, but maybe you should consider, you know, a factoring on your receivables, versus a capital loan that's capitalized against some equipment or something, cause there's also options within the types of financing that you may want to do. >> So on that we've done quite bit of work. We have lenders in our portfolio that do invoice financing. We've got lenders in our portfolio, Amex working capital terms, that do vendor bill payment through, you know, paying all of your bills that are coming up, we've got as I said SBA loans that will help with long term expansion, we've got that, and we're just continuing to innovate on that too. >> And from the lender point of you, you said you have about a dozen, you're bringing in more, you know, for the opportunity, cause a lot of them probably already have existing relationships with many of these clients, how do they see kind of the opportunity to interface for those clients in this different way through QuickBooks as an intermediary? >> Oh, they love it, because it's very hard for these lenders to go out and acquire new customers, often times they don't have a relationship with these existing customers and they have to go out and do the hard work to acquire customers whereas they're in the QuickBooks ecosystem and, you know, customers really love the opportunity to work with these lenders because we can provide the right advice to them paired with the loan offering, so it works out very well. >> It should be cheaper for them to actually provide those too, cause again you're taking a lot of the headache out. So, before we went live, you talked about some of the numbers, I just want to go through some of the numbers, so you shared the big number 500 million. >> Yep. >> But in terms of kind of an average loan size that you see, in a lifetime value of the loans to some of the customers, I was wondering if you could share some of those statistics. >> Sure, so we see two very different needs for financing from our customer base, there's the work and capital loans, and there's the expansion capital loans, and our customers typically are split between the need for both and at any given time, a business is actually looking for both. They need to smooth over the work and capital and then the expansion capital as well, but our average loan size is about 35,000 dollars today, and it ranges from as little as 2,500 dollars to just smooth a very small cashflow bump that you have, all the way up to 250-500 thousand dollars to do some of the all the way up to 250-500 thousand dollars to do some of the bigger expansions that small businesses are looking to do, and it's really wonderful to be able to help small businesses on both sides of the spectrum because if you're a small business owner, seasonality is really a major pain point. Often times, they'll have most of their business concentrated in the summer months, or potentially the summer months and the winter months, but not the spring and the fall, and so you need, you still have tons of bills, you have employees you need to cover in those off months, and having access to financing where you can get it fairly quickly cause you don't know when those bumps are going to hit, is incredibly valuable. On the flip side, the expansion side, every business owners dream is to expand and it's been amazing to be here over the past few days and hear these stories, you know, Alli Webb on stage yesterday, the founder of Drybar, talking about how she went from one location to 66 in 5 years, and so it's very hard to go into a bank branch in 5 years, and so it's very hard to go into a bank branch and convince them of your grand idea to expand. >> Jeff: Especially if they don't have hair. >> Especially if they don't have hair, she had a hard time... (everyone laughs) >> Her husband and her brother are business partners and they're both bald. >> Yeah, they're sitting with them, they don't have hair either, so. >> So for that reason, it's hard to convince people, and so it's wonderful to be able to help the expansion side of things too. >> Hopefully this has been, if nothing else, a great opportunity for Frick Inc. to find out about the small business college fund. >> Jeff: It's already gone through. >> That quick. >> John: Right, so we'll find out in less than 24 hours. The kids are going to Stanford. >> Alright. >> Or you're going to work at the community college for a bit. Rania we appreciate the time. >> Sure, it was great. >> Very much, thank you for being here. >> Thank you. >> And congratulations on the Amex announcement, and so many other great things you have in the pipeline now to make small business dreams come true. >> Wonderful, thank you very much, it was great to chat with you. >> Thank you very much Rania. Back with more here on the Cube from San Jose in just a moment. (hip tech music)