(gentle music) >> Narrator: "TheCUBE's" live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (upbeat music) >> Hello everybody, welcome back to day four of "theCUBE's" coverage of MWC '23. We're here live at the Fira in Barcelona. Wall-to-wall coverage, John Furrier is in our Palo Alto studio, banging out all the news. Really, the whole week we've been talking about the disaggregation of the telco network, the new opportunities in telco. We're really excited to have AT&T and Snowflake here. Dave Whittington is the AVP, at the Chief Data Office at AT&T. Roddy Tranum is the Assistant Vice President, for Channel Performance Data and Tools at AT&T. And Phil Kippen, the Global Head Of Industry-Telecom at Snowflake, Snowflake's new telecom business. Snowflake just announced earnings last night. Typical Scarpelli, they beat earnings, very conservative guidance, stocks down today, but we like Snowflake long term, they're on that path to 10 billion. Guys, welcome to "theCUBE." Thanks so much >> Phil: Thank you. >> for coming on. >> Dave and Roddy: Thanks Dave. >> Dave, let's start with you. The data culture inside of telco, We've had this, we've been talking all week about this monolithic system. Super reliable. You guys did a great job during the pandemic. Everything shifting to landlines. We didn't even notice, you guys didn't miss a beat. Saved us. But the data culture's changing inside telco. Explain that. >> Well, absolutely. So, first of all IoT and edge processing is bringing forth new and exciting opportunities all the time. So, we're bridging the world between a lot of the OSS stuff that we can do with edge processing. But bringing that back, and now we're talking about working, and I would say traditionally, we talk data warehouse. Data warehouse and big data are now becoming a single mesh, all right? And the use cases and the way you can use those, especially I'm taking that edge data and bringing it back over, now I'm running AI and ML models on it, and I'm pushing back to the edge, and I'm combining that with my relational data. So that mesh there is making all the difference. We're getting new use cases that we can do with that. And it's just, and the volume of data is immense. >> Now, I love ChatGPT, but I'm hoping your data models are more accurate than ChatGPT. I never know. Sometimes it's really good, sometimes it's really bad. But enterprise, you got to be clean with your AI, don't you? >> Not only you have to be clean, you have to monitor it for bias and be ethical about it. We're really good about that. First of all with AT&T, our brand is Platinum. We take care of that. So, we may not be as cutting-edge risk takers as others, but when we go to market with an AI or an ML or a product, it's solid. >> Well hey, as telcos go, you guys are leaning into the Cloud. So I mean, that's a good starting point. Roddy, explain your role. You got an interesting title, Channel Performance Data and Tools, what's that all about? >> So literally anything with our consumer, retail, concenters' channels, all of our channels, from a data perspective and metrics perspective, what it takes to run reps, agents, all the way to leadership levels, scorecards, how you rank in the business, how you're driving the business, from sales, service, customer experience, all that data infrastructure with our great partners on the CDO side, as well as Snowflake, that comes from my team. >> And that's traditionally been done in a, I don't mean the pejorative, but we're talking about legacy, monolithic, sort of data warehouse technologies. >> Absolutely. >> We have a love-hate relationship with them. It's what we had. It's what we used, right? And now that's evolving. And you guys are leaning into the Cloud. >> Dramatic evolution. And what Snowflake's enabled for us is impeccable. We've talked about having, people have dreamed of one data warehouse for the longest time and everything in one system. Really, this is the only way that becomes a reality. The more you get in Snowflake, we can have golden source data, and instead of duplicating that 50 times across AT&T, it's in one place, we just share it, everybody leverages it, and now it's not duplicated, and the process efficiency is just incredible. >> But it really hinges on that separation of storage and compute. And we talk about the monolithic warehouse, and one of the nightmares I've lived with, is having a monolithic warehouse. And let's just go with some of my primary, traditional customers, sales, marketing and finance. They are leveraging BSS OSS data all the time. For me to coordinate a deployment, I have to make sure that each one of these units can take an outage, if it's going to be a long deployment. With the separation of storage, compute, they own their own compute cluster. So I can move faster for these people. 'Cause if finance, I can implement his code without impacting finance or marketing. This brings in CI/CD to more reality. It brings us faster to market with more features. So if he wants to implement a new comp plan for the field reps, or we're reacting to the marketplace, where one of our competitors has done something, we can do that in days, versus waiting weeks or months. >> And we've reported on this a lot. This is the brilliance of Snowflake's founders, that whole separation >> Yep. >> from compute and data. I like Dave, that you're starting with sort of the business flexibility, 'cause there's a cost element of this too. You can dial down, you can turn off compute, and then of course the whole world said, "Hey, that's a good idea." And a VC started throwing money at Amazon, but Redshift said, "Oh, we can do that too, sort of, can't turn off the compute." But I want to ask you Phil, so, >> Sure. >> it looks from my vantage point, like you're taking your Data Cloud message which was originally separate compute from storage simplification, now data sharing, automated governance, security, ultimately the marketplace. >> Phil: Right. >> Taking that same model, break down the silos into telecom, right? It's that same, >> Mm-hmm. >> sorry to use the term playbook, Frank Slootman tells me he doesn't use playbooks, but he's not a pattern matcher, but he's a situational CEO, he says. But the situation in telco calls for that type of strategy. So explain what you guys are doing in telco. >> I think there's, so, what we're launching, we launched last week, and it really was three components, right? So we had our platform as you mentioned, >> Dave: Mm-hmm. >> and that platform is being utilized by a number of different companies today. We also are adding, for telecom very specifically, we're adding capabilities in marketplace, so that service providers can not only use some of the data and apps that are in marketplace, but as well service providers can go and sell applications or sell data that they had built. And then as well, we're adding our ecosystem, it's telecom-specific. So, we're bringing partners in, technology partners, and consulting and services partners, that are very much focused on telecoms and what they do internally, but also helping them monetize new services. >> Okay, so it's not just sort of generic Snowflake into telco? You have specific value there. >> We're purposing the platform specifically for- >> Are you a telco guy? >> I am. You are, okay. >> Total telco guy absolutely. >> So there you go. You see that Snowflake is actually an interesting organizational structure, 'cause you're going after verticals, which is kind of rare for a company of your sort of inventory, I'll say, >> Absolutely. >> I don't mean that as a negative. (Dave laughs) So Dave, take us through the data journey at AT&T. It's a long history. You don't have to go back to the 1800s, but- (Dave laughs) >> Thank you for pointing out, we're a 149-year-old company. So, Jesse James was one of the original customers, (Dave laughs) and we have no longer got his data. So, I'll go back. I've been 17 years singular AT&T, and I've watched it through the whole journey of, where the monolithics were growing, when the consolidation of small, wireless carriers, and we went through that boom. And then we've gone through mergers and acquisitions. But, Hadoop came out, and it was going to solve all world hunger. And we had all the aspects of, we're going to monetize and do AI and ML, and some of the things we learned with Hadoop was, we had this monolithic warehouse, we had this file-based-structured Hadoop, but we really didn't know how to bring this all together. And we were bringing items over to the relational, and we were taking the relational and bringing it over to the warehouse, and trying to, and it was a struggle. Let's just go there. And I don't think we were the only company to struggle with that, but we learned a lot. And so now as tech is finally emerging, with the cloud, companies like Snowflake, and others that can handle that, where we can create, we were discussing earlier, but it becomes more of a conducive mesh that's interoperable. So now we're able to simplify that environment. And the cloud is a big thing on that. 'Cause you could not do this on-prem with on-prem technologies. It would be just too cost prohibitive, and too heavy of lifting, going back and forth, and managing the data. The simplicity the cloud brings with a smaller set of tools, and I'll say in the data space specifically, really allows us, maybe not a single instance of data for all use cases, but a greatly reduced ecosystem. And when you simplify your ecosystem, you simplify speed to market and data management. >> So I'm going to ask you, I know it's kind of internal organizational plumbing, but it'll inform my next question. So, Dave, you're with the Chief Data Office, and Roddy, you're kind of, you all serve in the business, but you're really serving the, you're closer to those guys, they're banging on your door for- >> Absolutely. I try to keep the 130,000 users who may or may not have issues sometimes with our data and metrics, away from Dave. And he just gets a call from me. >> And he only calls when he has a problem. He's never wished me happy birthday. (Dave and Phil laugh) >> So the reason I asked that is because, you describe Dave, some of the Hadoop days, and again love-hate with that, but we had hyper-specialized roles. We still do. You've got data engineers, data scientists, data analysts, and you've got this sort of this pipeline, and it had to be this sequential pipeline. I know Snowflake and others have come to simplify that. My question to you is, how is that those roles, how are those roles changing? How is data getting closer to the business? Everybody talks about democratizing business. Are you doing that? What's a real use example? >> From our perspective, those roles, a lot of those roles on my team for years, because we're all about efficiency, >> Dave: Mm-hmm. >> we cut across those areas, and always have cut across those areas. So now we're into a space where things have been simplified, data processes and copying, we've gone from 40 data processes down to five steps now. We've gone from five steps to one step. We've gone from days, now take hours, hours to minutes, minutes to seconds. Literally we're seeing that time in and time out with Snowflake. So these resources that have spent all their time on data engineering and moving data around, are now freed up more on what they have skills for and always have, the data analytics area of the business, and driving the business forward, and new metrics and new analysis. That's some of the great operational value that we've seen here. As this simplification happens, it frees up brain power. >> So, you're pumping data from the OSS, the BSS, the OKRs everywhere >> Everywhere. >> into Snowflake? >> Scheduling systems, you name it. If you can think of what drives our retail and centers and online, all that data, scheduling system, chat data, call center data, call detail data, all of that enters into this common infrastructure to manage the business on a day in and day out basis. >> How are the roles and the skill sets changing? 'Cause you're doing a lot less ETL, you're doing a lot less moving of data around. There were guys that were probably really good at that. I used to joke in the, when I was in the storage world, like if your job is bandaging lungs, you need to look for a new job, right? So, and they did and people move on. So, are you able to sort of redeploy those assets, and those people, those human resources? >> These folks are highly skilled. And we were talking about earlier, SQL hasn't gone away. Relational databases are not going away. And that's one thing that's made this migration excellent, they're just transitioning their skills. Experts in legacy systems are now rapidly becoming experts on the Snowflake side. And it has not been that hard a transition. There are certainly nuances, things that don't operate as well in the cloud environment that we have to learn and optimize. But we're making that transition. >> Dave: So just, >> Please. >> within the Chief Data Office we have a couple of missions, and Roddy is a great partner and an example of how it works. We try to bring the data for democratization, so that we have one interface, now hopefully know we just have a logical connection back to these Snowflake instances that we connect. But we're providing that governance and cleansing, and if there's a business rule at the enterprise level, we provide it. But the goal at CDO is to make sure that business units like Roddy or marketing or finance, that they can come to a platform that's reliable, robust, and self-service. I don't want to be in his way. So I feel like I'm providing a sub-level of platform, that he can come to and anybody can come to, and utilize, that they're not having to go back and undo what's in Salesforce, or ServiceNow, or in our billers. So, I'm sort of that layer. And then making sure that that ecosystem is robust enough for him to use. >> And that self-service infrastructure is predominantly through the Azure Cloud, correct? >> Dave: Absolutely. >> And you work on other clouds, but it's predominantly through Azure? >> We're predominantly in Azure, yeah. >> Dave: That's the first-party citizen? >> Yeah. >> Okay, I like to think in terms sometimes of data products, and I know you've mentioned upfront, you're Gold standard or Platinum standard, you're very careful about personal information. >> Dave: Yeah. >> So you're not trying to sell, I'm an AT&T customer, you're not trying to sell my data, and make money off of my data. So the value prop and the business case for Snowflake is it's simpler. You do things faster, you're in the cloud, lower cost, et cetera. But I presume you're also in the business, AT&T, of making offers and creating packages for customers. I look at those as data products, 'cause it's not a, I mean, yeah, there's a physical phone, but there's data products behind it. So- >> It ultimately is, but not everybody always sees it that way. Data reporting often can be an afterthought. And we're making it more on the forefront now. >> Yeah, so I like to think in terms of data products, I mean even if the financial services business, it's a data business. So, if we can think about that sort of metaphor, do you see yourselves as data product builders? Do you have that, do you think about building products in that regard? >> Within the Chief Data Office, we have a data product team, >> Mm-hmm. >> and by the way, I wouldn't be disingenuous if I said, oh, we're very mature in this, but no, it's where we're going, and it's somewhat of a journey, but I've got a peer, and their whole job is to go from, especially as we migrate from cloud, if Roddy or some other group was using tables three, four and five and joining them together, it's like, "Well look, this is an offer for data product, so let's combine these and put it up in the cloud, and here's the offer data set product, or here's the opportunity data product," and it's a journey. We're on the way, but we have dedicated staff and time to do this. >> I think one of the hardest parts about that is the organizational aspects of it. Like who owns the data now, right? It used to be owned by the techies, and increasingly the business lines want to have access, you're providing self-service. So there's a discussion about, "Okay, what is a data product? Who's responsible for that data product? Is it in my P&L or your P&L? Somebody's got to sign up for that number." So, it sounds like those discussions are taking place. >> They are. And, we feel like we're more the, and CDO at least, we feel more, we're like the guardians, and the shepherds, but not the owners. I mean, we have a role in it all, but he owns his metrics. >> Yeah, and even from our perspective, we see ourselves as an enabler of making whatever AT&T wants to make happen in terms of the key products and officers' trade-in offers, trade-in programs, all that requires this data infrastructure, and managing reps and agents, and what they do from a channel performance perspective. We still ourselves see ourselves as key enablers of that. And we've got to be flexible, and respond quickly to the business. >> I always had empathy for the data engineer, and he or she had to service all these different lines of business with no business context. >> Yeah. >> Like the business knows good data from bad data, and then they just pound that poor individual, and they're like, "Okay, I'm doing my best. It's just ones and zeros to me." So, it sounds like that's, you're on that path. >> Yeah absolutely, and I think, we do have refined, getting more and more refined owners of, since Snowflake enables these golden source data, everybody sees me and my organization, channel performance data, go to Roddy's team, we have a great team, and we go to Dave in terms of making it all happen from a data infrastructure perspective. So we, do have a lot more refined, "This is where you go for the golden source, this is where it is, this is who owns it. If you want to launch this product and services, and you want to manage reps with it, that's the place you-" >> It's a strong story. So Chief Data Office doesn't own the data per se, but it's your responsibility to provide the self-service infrastructure, and make sure it's governed properly, and in as automated way as possible. >> Well, yeah, absolutely. And let me tell you more, everybody talks about single version of the truth, one instance of the data, but there's context to that, that we are taking, trying to take advantage of that as we do data products is, what's the use case here? So we may have an entity of Roddy as a prospective customer, and we may have a entity of Roddy as a customer, high-value customer over here, which may have a different set of mix of data and all, but as a data product, we can then create those for those specific use cases. Still point to the same data, but build it in different constructs. One for marketing, one for sales, one for finance. By the way, that's where your data engineers are struggling. >> Yeah, yeah, of course. So how do I serve all these folks, and really have the context-common story in telco, >> Absolutely. >> or are these guys ahead of the curve a little bit? Or where would you put them? >> I think they're definitely moving a lot faster than the industry is generally. I think the enabling technologies, like for instance, having that single copy of data that everybody sees, a single pane of glass, right, that's definitely something that everybody wants to get to. Not many people are there. I think, what AT&T's doing, is most definitely a little bit further ahead than the industry generally. And I think the successes that are coming out of that, and the learning experiences are starting to generate momentum within AT&T. So I think, it's not just about the product, and having a product now that gives you a single copy of data. It's about the experiences, right? And now, how the teams are getting trained, domains like network engineering for instance. They typically haven't been a part of data discussions, because they've got a lot of data, but they're focused on the infrastructure. >> Mm. >> So, by going ahead and deploying this platform, for platform's purpose, right, and the business value, that's one thing, but also to start bringing, getting that experience, and bringing new experience in to help other groups that traditionally hadn't been data-centric, that's also a huge step ahead, right? So you need to enable those groups. >> A big complaint of course we hear at MWC from carriers is, "The over-the-top guys are killing us. They're riding on our networks, et cetera, et cetera. They have all the data, they have all the client relationships." Do you see your client relationships changing as a result of sort of your data culture evolving? >> Yes, I'm not sure I can- >> It's a loaded question, I know. >> Yeah, and then I, so, we want to start embedding as much into our network on the proprietary value that we have, so we can start getting into that OTT play, us as any other carrier, we have distinct advantages of what we can do at the edge, and we just need to start exploiting those. But you know, 'cause whether it's location or whatnot, so we got to eat into that. Historically, the network is where we make our money in, and we stack the services on top of it. It used to be *69. >> Dave: Yeah. >> If anybody remembers that. >> Dave: Yeah, of course. (Dave laughs) >> But you know, it was stacked on top of our network. Then we stack another product on top of it. It'll be in the edge where we start providing distinct values to other partners as we- >> I mean, it's a great business that you're in. I mean, if they're really good at connectivity. >> Dave: Yeah. >> And so, it sounds like it's still to be determined >> Dave: Yeah. >> where you can go with this. You have to be super careful with private and for personal information. >> Dave: Yep. >> Yeah, but the opportunities are enormous. >> There's a lot. >> Yeah, particularly at the edge, looking at, private networks are just an amazing opportunity. Factories and name it, hospital, remote hospitals, remote locations. I mean- >> Dave: Connected cars. >> Connected cars are really interesting, right? I mean, if you start communicating car to car, and actually drive that, (Dave laughs) I mean that's, now we're getting to visit Xen Fault Tolerance people. This is it. >> Dave: That's not, let's hold the traffic. >> Doesn't scare me as much as we actually learn. (all laugh) >> So how's the show been for you guys? >> Dave: Awesome. >> What're your big takeaways from- >> Tremendous experience. I mean, someone who doesn't go outside the United States much, I'm a homebody. The whole experience, the whole trip, city, Mobile World Congress, the technologies that are out here, it's been a blast. >> Anything, top two things you learned, advice you'd give to others, your colleagues out in general? >> In general, we talked a lot about technologies today, and we talked a lot about data, but I'm going to tell you what, the accelerator that you cannot change, is the relationship that we have. So when the tech and the business can work together toward a common goal, and it's a partnership, you get things done. So, I don't know how many CDOs or CIOs or CEOs are out there, but this connection is what accelerates and makes it work. >> And that is our audience Dave. I mean, it's all about that alignment. So guys, I really appreciate you coming in and sharing your story in "theCUBE." Great stuff. >> Thank you. >> Thanks a lot. >> All right, thanks everybody. Thank you for watching. I'll be right back with Dave Nicholson. Day four SiliconANGLE's coverage of MWC '23. You're watching "theCUBE." (gentle music)

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, otc. A friend of the Cube >>Karala joined us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with you. >>A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many day zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add the gold standard from a data standpoint, and that's given them this competitive advantage to go out and become a platform for a security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Esty win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? Exactly. >>Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking to the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my >>Question. That's the point. >>Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets >>Win. Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their valuable? >>You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development and Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Nice. Era was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. >>Well, and I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Altos made, they've done a good job of integrating their backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data like the, the fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Three. Think about that at that, that >>Make a, that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market cap. >>Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo. >>Right? And that when you look around the show floor, it's not that impressive. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah, >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people at Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR roundtable said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. So, >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate days, nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's it's an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, in The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they're do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you gotta fight fire with fire. And I think that's, that's the path they've, they've headed >>Down and the bad guys are hiding in plain sight, you know? >>Yeah, yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says we're actively consolidating vendors, redundant vendors today. That number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to, to it pros is if you're doing things today that aren't resume building, stop doing them. Right? Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. And so who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah. Yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with proxies as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at c skater throw 'em back at 'em. So I, it's good to see that kind of fight going on between the two. >>Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah. Cisco's interesting. And I, I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to just say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of work there're trying to, to tie to network. >>Right. Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wikibon, lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are you gonna be next? Are you gonna be on vacation? >>There's nothing more fun than mean on the cube, so, right. What's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and do the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We >>Love it. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show and it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, F otc. A friend of the Cube >>Karala joins us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with >>You. A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long-term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many days, zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add, they're the gold standard from a data standpoint. And that's given them this competitive advantage to go out and become a platform for security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Estee win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? >>Exactly. Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking with the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my question. That's the point I'm saying. Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets win. >>Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their >>Valuable? You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development in Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Naira was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. Well, >>And I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Alto's made, they've done a good job of integrating the backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty and all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data lake to, to fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want or >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Think about that at that. That makes, >>I mean that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market >>Cap. Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo >>Go, right? And that when you look around the show floor, it's not that impressive. No. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's, I mean, pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah. >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something that I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people of Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR round table said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. No. >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate says nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's just an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, and The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they gotta do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you're gonna fight fire with fire. And I think that's, that's the path they've, they've headed >>Down. Yeah. The bad guys are hiding in plain sight, you know? Yeah, >>Yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says who are actively consolidating vendors, redundant vendors today that number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I, I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily aligned with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to the IT pros is, is if you're doing things today that aren't resume building, stop doing them. Right. Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. So who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah, yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with prox as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at csca, throw 'em back at 'em. So I, it's good to see that kind of fight going on between the >>Two. Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah, Cisco's interesting. And I I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration and that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of Rick there trying to, to tie to network. >>Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wi KeePon. Lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are gonna be next? Are you gonna be on >>Vacation? There's nothing more fun than mean on the cube. So what's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and be the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We love >>It. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show. And it, it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>> From "theCube" Studios in Palo Alto in Boston bringing you data-driven insights from "theCube" and ETR. This is "Breaking Analysis" with Dave Vellante. >> As an independent pure play company, Palo Alto Networks has earned its status as the leader in security. You can measure this in a variety of ways. Revenue, market cap, execution, ethos, and most importantly, conversations with customers generally. In CISO specifically, who consistently affirm this position. The company's on track to double its revenues in fiscal year 23 relative to fiscal year 2020. Despite macro headwinds, which are likely to carry through next year, Palo Alto owes its position to a clarity of vision and strong execution on a TAM expansion strategy through acquisitions and integration into its cloud and SaaS offerings. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR and this breaking analysis and ahead of Palo Alto Ignite the company's user conference, we bring you the next chapter on top of the last week's cybersecurity update. We're going to dig into the ETR data on Palo Alto Networks as we promised and provide a glimpse of what we're going to look for at "Ignite" and posit what Palo Alto needs to do to stay on top of the hill. Now, the challenges for cybersecurity professionals. Dead simple to understand. Solving it, not so much. This is a taxonomic eye test, if you will, from Optiv. It's one of our favorite artifacts to make the point the cybersecurity landscape is a mosaic of stovepipes. Security professionals have to work with dozens of tools many legacy combined with shiny new toys to try and keep up with the relentless pace of innovation catalyzed by the incredibly capable well-funded and motivated adversaries. Cybersecurity is an anomalous market in that the leaders have low single digit market shares. Think about that. Cisco at one point held 60% market share in the networking business and it's still deep into the 40s. Oracle captures around 30% of database market revenue. EMC and storage at its peak had more than 30% of that market. Even Dell's PC market shares, you know, in the mid 20s or even over that from a revenue standpoint. So cybersecurity from a market share standpoint is even more fragmented perhaps than the software industry. Okay, you get the point. So despite its position as the number one player Palo Alto might have maybe three maybe 4% of the total market, depending on what you use as your denominator, but just a tiny slice. So how is it that we can sit here and declare Palo Alto as the undisputed leader? Well, we probably wouldn't go that far. They probably have quite a bit of competition. But this CISO from a recent ETR round table discussion with our friend Eric Bradley, summed up Palo Alto's allure. We thought pretty well. The question was why Palo Alto Networks? Here's the answer. Because of its completeness as a platform, its ability to integrate with its own products or they acquire, integrate then rebrand them as their own. We've looked at other vendors we just didn't think they were as mature and we already had implemented some of the Palo Alto tools like the firewalls and stuff and we thought why not go holistically with the vendor a single throat to choke, if you will, if stuff goes wrong. And I think that was probably the primary driver and familiarity with the tools and the resources that they provided. Now here's another stat from ETR's Eric Bradley. He gave us a glimpse of the January survey that's in the field now. The percent of IT buyers stating that they plan to consolidate redundant vendors, it went from 34% in the October survey and now stands at 44%. So we fo we feel this bodes well for consolidators like Palo Alto networks. And the same is true from Microsoft's kind of good enough approach. It should also be true for CrowdStrike although last quarter we saw softness reported on in their SMB market, whereas interestingly MongoDB actually saw consistent strength from its SMB and its self-serve. So that's something that we're watching very closely. Now, Palo Alto Networks has held up better than most of its peers in the stock market. So let's take a look at that real quick. This chart gives you a sense of how well. It's a one year comparison of Palo Alto with the bug ETF. That's the cyber basket that we like to compare often CrowdStrike, Zscaler, and Okta. Now remember Palo Alto, they didn't run up as much as CrowdStrike, ZS and Okta during the pandemic but you can see it's now down unquote only 9% for the year. Whereas the cyber basket ETF is off 27% roughly in line with the NASDAQ. We're not showing that CrowdStrike down 44%, Zscaler down 61% and Okta off a whopping 72% in the past 12 months. Now as we've indicated, Palo Alto is making a strong case for consolidating point tools and we think it will have a much harder time getting customers to switch off of big platforms like Cisco who's another leader in network security. But based on the fragmentation in the market there's plenty of room to grow in our view. We asked breaking analysis contributor Chip Simington for his take on the technicals of the stock and he said that despite Palo Alto's leadership position it doesn't seem to make much difference these days. It's all about interest rates. And even though this name has performed better than its peers, it looks like the stock wants to keep testing its 52 week lows, but he thinks Palo Alto got oversold during the last big selloff. And the fact that the company's free cash flow is so strong probably keeps it at the one 50 level or above maybe bouncing around there for a while. If it breaks through that under to the downside it's ne next test is at that low of around one 40 level. So thanks for that, Chip. Now having get that out of the way as we said on the previous chart Palo Alto has strong opinions, it's founder and CTO, Nir Zuk, is extremely clear on that point of view. So let's take a look at how Palo Alto got to where it is today and how we think you should think about his future. The company was founded around 18 years ago as a network security company focused on what they called NextGen firewalls. Now, what Palo Alto did was different. They didn't try to stuff a bunch of functionality inside of a hardware box. Rather they layered network security functions on top of its firewalls and delivered value as a service through software running at the time in its own cloud. So pretty obvious today, but forward thinking for the time and now they've moved to a more true cloud native platform and much more activity in the public cloud. In February, 2020, right before the pandemic we reported on the divergence in market values between Palo Alto and Fort Net and we cited some challenges that Palo Alto was happening having transitioning to a cloud native model. And at the time we said we were confident that Palo Alto would make it through the knot hole. And you could see from the previous chart that it has. So the company's architectural approach was to do the heavy lifting in the cloud. And this eliminates the need for customers to deploy sensors on prem or proxies on prem or sandboxes on prem sandboxes, you know for instance are vulnerable to overwhelming attacks. Think about it, if you're a sandbox is on prem you're not going to be updating that every day. No way. You're probably not going to updated even every week or every month. And if the capacity of your sandbox is let's say 20,000 files an hour you know a hacker's just going to turn up the volume, it'll overwhelm you. They'll send a hundred thousand emails attachments into your sandbox and they'll choke you out and then they'll have the run of the house while you're trying to recover. Now the cloud doesn't completely prevent that but what it does, it definitely increases the hacker's cost. So they're going to probably hit some easier targets and that's kind of the objective of security firms. You know, increase the denominator on the ROI. All right, the next thing that Palo Alto did is start acquiring aggressively, I think we counted 17 or 18 acquisitions to expand the TAM beyond network security into endpoint CASB, PaaS security, IaaS security, container security, serverless security, incident response, SD WAN, CICD pipeline security, attack service management, supply chain security. Just recently with the acquisition of Cider Security and Palo Alto by all accounts takes the time to integrate into its cloud and SaaS platform called Prisma. Unlike many acquisitive companies in the past EMC was a really good example where you ended up with a kind of a Franken portfolio. Now all this leads us to believe that Palo Alto wants to be the consolidator and is in a good position to do so. But beyond that, as multi-cloud becomes more prevalent and more of a strategy customers tell us they want a consistent experience across clouds. And is going to be the same by the way with IoT. So of the next wave here. Customers don't want another stove pipe. So we think Palo Alto is in a good position to build what we call the security super cloud that layer above the clouds that brings a common experience for devs and operational teams. So of course the obvious question is this, can Palo Alto networks continue on this path of acquire and integrate and still maintain best of breed status? Can it? Will it? Does it even have to? As Holger Mueller of Constellation Research and I talk about all the time integrated suites seem to always beat best of breed in the long run. We'll come back to that. Now, this next graphic that we're going to show you underscores this question about portfolio. Here's a picture and I don't expect you to digest it all but it's a screen grab of Palo Alto's product and solutions portfolios, network cloud, network security rather, cloud security, Sassy, CNAP, endpoint unit 42 which is their threat intelligence platform and every imaginable security service and solution for customers. Well, maybe not every, I'm sure there's more to come like supply chain with the recent Cider acquisition and maybe more IoT beyond ZingBox and earlier acquisition but we're sure there will be more in the future both organic and inorganic. Okay, let's bring in more of the ETR survey data. For those of you who don't know ETR, they are the number one enterprise data platform surveying thousands of end customers every quarter with additional drill down surveys and customer round tables just an awesome SaaS enabled platform. And here's a view that shows net score or spending momentum on the vertical axis in provision or presence within the ETR data set on the horizontal axis. You see that red dotted line at 40%. Anything at or over that indicates a highly elevated net score. And as you can see Palo Alto is right on that line just under. And I'll give you another glimpse it looks like Palo Alto despite the macro may even just edge up a bit in the next survey based on the glimpse that Eric gave us. Now those colored bars in the bottom right corner they show the breakdown of Palo Alto's net score and underscore the methodology that ETR uses. The lime green is new customer adoptions, that's 7%. The forest green at 38% represents the percent of customers that are spending 6% or more on Palo Alto solutions. The gray is at that 40 or 8% that's flat spending plus or minus 5%. The pinkish at 5% is spending is down on Palo Alto network products by 6% or worse. And the bright red at only 2% is churn or defections. Very low single digit numbers for Palo Alto, that's a real positive. What you do is you subtract the red from the green and you get a net score of 38% which is very good for a company of Palo Alto size. And we'll note this is based on just under 400 responses in the ETR survey that are Palo Alto customers out of around 1300 in the total survey. It's a really good representation of Palo Alto. And you can see the other leading companies like CrowdStrike, Okta, Zscaler, Forte, Cisco they loom large with similar aspirations. Well maybe not so much Okta. They don't necessarily rule want to rule the world. They want to rule identity and of course the ever ubiquitous Microsoft in the upper right. Now drilling deeper into the ETR data, let's look at how Palo Alto has progressed over the last three surveys in terms of market presence in the survey. This view of the data shows provision in the data going back to October, 2021, that's the gray bars. The blue is July 22 and the yellow is the latest survey from October, 2022. Remember, the January survey is currently in the field. Now the leftmost set of data there show size a company. The middle set of data shows the industry for a select number of industries in the right most shows, geographic region. Notice anything, yes, Palo Alto up across the board relative to both this past summer and last fall. So that's pretty impressive. Palo Alto network CEO, Nikesh Aurora, stressed on the last earnings call that the company is seeing somewhat elongated deal approvals and sometimes splitting up size of deals. He's stressed that certain industries like energy, government and financial services continue to spend. But we would expect even a pullback there as companies get more conservative. But the point is that Nikesh talked about how they're hiring more sales pros to work the pipeline because they understand that they have to work harder to pull deals forward 'cause they got to get more approvals and they got to increase the volume that's coming through the pipeline to account for the possibility that certain companies are going to split up the deals, you know, large deals they want to split into to smaller bite size chunks. So they're really going hard after they go to market expansion to account for that. All right, so we're going to wrap by sharing what we expect and what we're going to probe for at Palo Alto Ignite next week, Lisa Martin and I will be hosting "theCube" and here's what we'll be looking for. First, it's a four day event at the MGM with the meat of the program on days two and three. That's day two was the big keynote. That's when we'll start our broadcasting, we're going for two days. Now our understanding is we've never done Palo Alto Ignite before but our understanding it's a pretty technically oriented crowd that's going to be eager to hear what CTO and founder Nir Zuk has to say. And as well CEO Nikesh Aurora and as in addition to longtime friend of "theCube" and current president, BJ Jenkins, he's going to be speaking. Wendy Whitmore runs Unit 42 and is going to be several other high profile Palo Alto execs, as well, Thomas Kurian from Google is a featured speaker. Lee Claridge, who is Palo Alto's, chief product officer we think is going to be giving the audience heavy doses of Prisma Cloud and Cortex enhancements. Now, Cortex, you might remember, came from an acquisition and does threat detection and attack surface management. And we're going to hear a lot about we think about security automation. So we'll be listening for how Cortex has been integrated and what kind of uptake that it's getting. We've done some, you know, modeling in from the ETR. Guys have done some modeling of cortex, you know looks like it's got a lot of upside and through the Palo Alto go to market machine, you know could really pick up momentum. That's something that we'll be probing for. Now, one of the other things that we'll be watching is pricing. We want to talk to customers about their spend optimization, their spending patterns, their vendor consolidation strategies. Look, Palo Alto is a premium offering. It charges for value. It's expensive. So we also want to understand what kind of switching costs are customers willing to absorb and how onerous they are and what's the business case look like? How are they thinking about that business case. We also want to understand and really probe on how will Palo Alto maintain best of breed as it continues to acquire and integrate to expand its TAM and appeal as that one-stop shop. You know, can it do that as we talked about before. And will it do that? There's also an interesting tension going on sort of changing subjects here in security. There's a guy named Edward Hellekey who's been in "theCube" before. He hasn't been in "theCube" in a while but he's a security pro who has educated us on the nuances of protecting data privacy, public policy, how it varies by region and how complicated it is relative to security. Because securities you technically you have to show a chain of custody that proves unequivocally, for example that data has been deleted or scrubbed or that metadata does. It doesn't include any residual private data that violates the laws, the local laws. And the tension is this, you need good data and lots of it to have good security, really the more the better. But government policy is often at odds in a major blocker to sharing data and it's getting more so. So we want to understand this tension and how companies like Palo Alto are dealing with it. Our customers testing public policy in courts we think not quite yet, our government's making exceptions and policies like GDPR that favor security over data privacy. What are the trade-offs there? And finally, one theme of this breaking analysis is what does Palo Alto have to do to stay on top? And we would sum it up with three words. Ecosystem, ecosystem, ecosystem. And we said this at CrowdStrike Falcon in September that the one concern we had was the pace of ecosystem development for CrowdStrike. Is collaboration possible with competitors? Is being adopted aggressively? Is Palo Alto being adopted aggressively by global system integrators? What's the uptake there? What about developers? Look, the hallmark of a cloud company which Palo Alto is a cloud security company is a thriving ecosystem that has entries into and exits from its platform. So we'll be looking at what that ecosystem looks like how vibrant and inclusive it is where the public clouds fit and whether Palo Alto Networks can really become the security super cloud. Okay, that's a wrap stop by next week. If you're in Vegas, say hello to "theCube" team. We have an unbelievable lineup on the program. Now if you're not there, check out our coverage on theCube.net. I want to thank Eric Bradley for sharing a glimpse on short notice of the upcoming survey from ETR and his thoughts. And as always, thanks to Chip Symington for his sharp comments. Want to thank Alex Morrison, who's on production and manages the podcast Ken Schiffman as well in our Boston studio, Kristen Martin and Cheryl Knight they help get the word out on social and of course in our newsletters, Rob Hoof, is our editor in chief over at Silicon Angle who does some awesome editing, thank you to all. Remember all these episodes they're available as podcasts. Wherever you listen, all you got to do is search "Breaking Analysis" podcasts. I publish each week on wikibon.com and silicon angle.com where you can email me at david.valante@siliconangle.com or dm me at D Valante or comment on our LinkedIn post. And please do check out etr.ai. They've got the best survey data in the enterprise tech business. This is Dave Valante for "theCube" Insights powered by ETR. Thanks for watching. We'll see you next week on "Ignite" or next time on "Breaking Analysis". (upbeat music)

(soft techno upbeat music) >> Hi there. Welcome back to Las Vegas. This is Dave Villante with Paul Gillon. Reinvent day one and a half. We started last night, Monday, theCUBE after dark. Now we're going wall to wall. Today. Today was of course the big keynote, Adam Selipsky, kind of the baton now handing, you know, last year when he did his keynote, he was very new. He was sort of still getting his feet wet and finding his guru swing. Settling in a little bit more this year, learning a lot more, getting deeper into the tech, but of course, sharing the love with other leaders like Peter DeSantis. Tomorrow's going to be Swamy in the keynote. Adrian Cockcroft is here. Former AWS, former network Netflix CTO, currently an analyst. You got your own firm now. You're out there. Great to see you again. Thanks for coming on theCUBE. >> Yeah, thanks. >> We heard you on at Super Cloud, you gave some really good insights there back in August. So now as an outsider, you come in obviously, you got to be impressed with the size and the ecosystem and the energy. Of course. What were your thoughts on, you know what you've seen so far, today's keynotes, last night Peter DeSantis, what stood out to you? >> Yeah, I think it's great to be back at Reinvent again. We're kind of pretty much back to where we were before the pandemic sort of shut it down. This is a little, it's almost as big as the, the largest one that we had before. And everyone's turned up. It just feels like we're back. So that's really good to see. And it's a slightly different style. I think there were was more sort of video production things happening. I think in this keynote, more storytelling. I'm not sure it really all stitched together very well. Right. Some of the stories like, how does that follow that? So there were a few things there and some of there were spelling mistakes on the slides, you know that ELT instead of ETL and they spelled ZFS wrong and something. So it just seemed like there was, I'm not quite sure just maybe a few things were sort of rushed at the last minute. >> Not really AWS like, was it? It's kind of remind the Patriots Paul, you know Bill Belichick's teams are fumbling all over the place. >> That's right. That's right. >> Part of it may be, I mean the sort of the market. They have a leader in marketing right now but they're going to have a CMO. So that's sort of maybe as lack of a single threaded leader for this thing. Everything's being shared around a bit more. So maybe, I mean, it's all fixable and it's mine. This is minor stuff. I'm just sort of looking at it and going there's a few things that looked like they were not quite as good as they could have been in the way it was put together. Right? >> But I mean, you're taking a, you know a year of not doing Reinvent. Yeah. Being isolated. You know, we've certainly seen it with theCUBE. It's like, okay, it's not like riding a bike. You know, things that, you know you got to kind of relearn the muscle memories. It's more like golf than is bicycle riding. >> Well I've done AWS keynotes myself. And they are pretty much scrambled. It looks nice, but there's a lot of scrambling leading up to when it actually goes. Right? And sometimes you can, you sometimes see a little kind of the edges of that, and sometimes it's much more polished. But you know, overall it's pretty good. I think Peter DeSantis keynote yesterday was a lot of really good meat there. There was some nice presentations, and some great announcements there. And today I was, I thought I was a little disappointed with some of the, I thought they could have been more. I think the way Andy Jesse did it, he crammed more announcements into his keynote, and Adam seems to be taking sort of a bit more of a measured approach. There were a few things he picked up on and then I'm expecting more to be spread throughout the rest of the day. >> This was more poetic. Right? He took the universe as the analogy for data, the ocean for security. Right? The Antarctic was sort of. >> Yeah. It looked pretty, >> yeah. >> But I'm not sure that was like, we're not here really to watch nature videos >> As analysts and journalists, You're like, come on. >> Yeah, >> Give it the meat >> That was kind the thing, yeah, >> It has always been the AWS has always been Reinvent has always been a shock at our approach. 100, 150 announcements. And they're really, that kind of pressure seems to be off them now. Their position at the top of the market seems to be unshakeable. There's no clear competition that's creeping up behind them. So how does that affect the messaging you think that AWS brings to market when it doesn't really have to prove that it's a leader anymore? It can go after maybe more of the niche markets or fix the stuff that's a little broken more fine tuning than grandiose statements. >> I think so AWS for a long time was so far out that they basically said, "We don't think about the competition, we are listen to the customers." And that was always the statement that works as long as you're always in the lead, right? Because you are introducing the new idea to the customer. Nobody else got there first. So that was the case. But in a few areas they aren't leading. Right? You could argue in machine learning, not necessarily leading in sustainability. They're not leading and they don't want to talk about some of these areas and-- >> Database. I mean arguably, >> They're pretty strong there, but the areas when you are behind, it's like they kind of know how to play offense. But when you're playing defense, it's a different set of game. You're playing a different game and it's hard to be good at both. I think and I'm not sure that they're really used to following somebody into a market and making a success of that. So there's something, it's a little harder. Do you see what I mean? >> I get opinion on this. So when I say database, David Foyer was two years ago, predicted AWS is going to have to converge somehow. They have no choice. And they sort of touched on that today, right? Eliminating ETL, that's one thing. But Aurora to Redshift. >> Yeah. >> You know, end to end. I'm not sure it's totally, they're fully end to end >> That's a really good, that is an excellent piece of work, because there's a lot of work that it eliminates. There's are clear pain points, but then you've got sort of the competing thing, is like the MongoDB and it's like, it's just a way with one database keeps it simple. >> Snowflake, >> Or you've got on Snowflake maybe you've got all these 20 different things you're trying to integrate at AWS, but it's kind of like you have a bag of Lego bricks. It's my favorite analogy, right? You want a toy for Christmas, you want a toy formula one racing car since that seems to be the theme, right? >> Okay. Do you want the fully built model that you can play with right now? Or do you want the Lego version that you have to spend three days building. Right? And AWS is the Lego technique thing. You have to spend some time building it, but once you've built it, you can evolve it, and you'll still be playing those are still good bricks years later. Whereas that prebuilt to probably broken gathering dust, right? So there's something about having an vulnerable architecture which is harder to get into, but more durable in the long term. And so AWS tends to play the long game in many ways. And that's one of the elements that they do that and that's good, but it makes it hard to consume for enterprise buyers that are used to getting it with a bow on top. And here's the solution. You know? >> And Paul, that was always Andy Chassy's answer to when we would ask him, you know, all these primitives you're going to make it simpler. You see the primitives give us the advantage to turn on a dime in the marketplace. And that's true. >> Yeah. So you're saying, you know, you take all these things together and you wrap it up, and you put a snowflake on top, and now you've got a simple thing or a Mongo or Mongo atlas or whatever. So you've got these layered platforms now which are making it simpler to consume, but now you're kind of, you know, you're all stuck in that ecosystem, you know, so it's like what layer of abstractions do you want to tie yourself to, right? >> The data bricks coming at it from more of an open source approach. But it's similar. >> We're seeing Amazon direct more into vertical markets. They spotlighted what Goldman Sachs is doing on their platform. They've got a variety of platforms that are supposedly targeted custom built for vertical markets. How do successful do you see that play being? Is this something that the customers you think are looking for, a fully integrated Amazon solution? >> I think so. There's usually if you look at, you know the MongoDB or data stacks, or the other sort of or elastic, you know, they've got the specific solution with the people that really are developing the core technology, there's open source equivalent version. The AWS is running, and it's usually maybe they've got a price advantage or it's, you know there's some data integration in there or it's somehow easier to integrate but it's not stopping those companies from growing. And what it's doing is it's endorsing that platform. So if you look at the collection of databases that have been around over the last few years, now you've got basically Elastic Mongo and Cassandra, you know the data stacks as being endorsed by the cloud vendors. These are winners. They're going to be around for a very long time. You can build yourself on that architecture. But what happened to Couch base and you know, a few of the other ones, you know, they don't really fit. Like how you going to bait? If you are now becoming an also ran, because you didn't get cloned by the cloud vendor. So the customers are going is that a safe place to be, right? >> But isn't it, don't they want to encourage those partners though in the name of building the marketplace ecosystem? >> Yeah. >> This is huge. >> But certainly the platform, yeah, the platform encourages people to do more. And there's always room around the edge. But the mainstream customers like that really like spending the good money, are looking for something that's got a long term life to it. Right? They're looking for a long commitment to that technology and that it's going to be invested in and grow. And the fact that the cloud providers are adopting and particularly AWS is adopting some of these technologies means that is a very long term commitment. You can base, you know, you can bet your future architecture on that for a decade probably. >> So they have to pick winners. >> Yeah. So it's sort of picking winners. And then if you're the open source company that's now got AWS turning up, you have to then leverage it and use that as a way to grow the market. And I think Mongo have done an excellent job of that. I mean, they're top level sponsors of Reinvent, and they're out there messaging that and doing a good job of showing people how to layer on top of AWS and make it a win-win both sides. >> So ever since we've been in the business, you hear the narrative hardware's going to die. It's just, you know, it's commodity and there's some truth to that. But hardware's actually driving good gross margins for the Cisco's of the world. Storage companies have always made good margins. Servers maybe not so much, 'cause Intel sucked all the margin out of it. But let's face it, AWS makes most of its money. We know on compute, it's got 25 plus percent operating margins depending on the seasonality there. What do you think happens long term to the infrastructure layer discussion? Okay, commodity cloud, you know, we talk about super cloud. Do you think that AWS, and the other cloud vendors that infrastructure, IS gets commoditized and they have to go up market or you see that continuing I mean history would say that still good margins in hardware. What are your thoughts on that? >> It's not commoditizing, it's becoming more specific. We've got all these accelerators and custom chips now, and this is something, this almost goes back. I mean, I was with some micro systems 20,30 years ago and we developed our own chips and HP developed their own chips and SGI mips, right? We were like, the architectures were all squabbling of who had the best processor chips and it took years to get chips that worked. Now if you make a chip and it doesn't work immediately, you screwed up somewhere right? It's become the technology of building these immensely complicated powerful chips that has become commoditized. So the cost of building a custom chip, is now getting to the point where Apple and Amazon, your Apple laptop has got full custom chips your phone, your iPhone, whatever and you're getting Google making custom chips and we've got Nvidia now getting into CPUs as well as GPUs. So we're seeing that the ability to build a custom chip, is becoming something that everyone is leveraging. And the cost of doing that is coming down to startups are doing it. So we're going to see many, many more, much more innovation I think, and this is like Intel and AMD are, you know they've got the compatibility legacy, but of the most powerful, most interesting new things I think are going to be custom. And we're seeing that with Graviton three particular in the three E that was announced last night with like 30, 40% whatever it was, more performance for HPC workloads. And that's, you know, the HPC market is going to have to deal with cloud. I mean they are starting to, and I was at Supercomputing a few weeks ago and they are tiptoeing around the edge of cloud, but those supercomputers are water cold. They are monsters. I mean you go around supercomputing, there are plumbing vendors on the booth. >> Of course. Yeah. >> Right? And they're highly concentrated systems, and that's really the only difference, is like, is it water cooler or echo? The rest of the technology stack is pretty much off the shelf stuff with a few tweets software. >> You point about, you know, the chips and what AWS is doing. The Annapurna acquisition. >> Yeah. >> They're on a dramatically different curve now. I think it comes down to, again, David Floyd's premise, really comes down to volume. The arm wafer volumes are 10 x those of X 86, volume always wins. And the economics of semis. >> That kind of got us there. But now there's also a risk five coming along if you, in terms of licensing is becoming one of the bottlenecks. Like if the cost of building a chip is really low, then it comes down to licensing costs and do you want to pay the arm license And the risk five is an open source chip set which some people are starting to use for things. So your dis controller may have a risk five in it, for example, nowadays, those kinds of things. So I think that's kind of the the dynamic that's playing out. There's a lot of innovation in hardware to come in the next few years. There's a thing called CXL compute express link which is going to be really interesting. I think that's probably two years out, before we start seeing it for real. But it lets you put glue together entire rack in a very flexible way. So just, and that's the entire industry coming together around a single standard, the whole industry except for Amazon, in fact just about. >> Well, but maybe I think eventually they'll get there. Don't use system on a chip CXL. >> I have no idea whether I have no knowledge about whether going to do anything CXL. >> Presuming I'm not trying to tap anything confidential. It just makes sense that they would do a system on chip. It makes sense that they would do something like CXL. Why not adopt the standard, if it's going to be as the cost. >> Yeah. And so that was one of the things out of zip computing. The other thing is the low latency networking with the elastic fabric adapter EFA and the extensions to that that were announced last night. They doubled the throughput. So you get twice the capacity on the nitro chip. And then the other thing was this, this is a bit technical, but this scalable datagram protocol that they've got which basically says, if I want to send a message, a packet from one machine to another machine, instead of sending it over one wire, I consider it over 16 wires in parallel. And I will just flood the network with all the packets and they can arrive in any order. This is why it isn't done normally. TCP is in order, the packets come in order they're supposed to, but this is fully flooding them around with its own fast retry and then they get reassembled at the other end. So they're not just using this now for HPC workloads. They've turned it on for TCP for just without any change to your application. If you are trying to move a large piece of data between two machines, and you're just pushing it down a network, a single connection, it takes it from five gigabits per second to 25 gigabits per second. A five x speed up, with a protocol tweak that's run by the Nitro, this is super interesting. >> Probably want to get all that AIML that stuff is going on. >> Well, the AIML stuff is leveraging it underneath, but this is for everybody. Like you're just copying data around, right? And you're limited, "Hey this is going to get there five times faster, pushing a big enough chunk of data around." So this is turning on gradually as the nitro five comes out, and you have to enable it at the instance level. But it's a super interesting announcement from last night. >> So the bottom line bumper sticker on commoditization is what? >> I don't think so. I mean what's the APIs? Your arm compatible, your Intel X 86 compatible or your maybe risk five one day compatible in the cloud. And those are the APIs, right? That's the commodity level. And the software is now, the software ecosystem is super portable across those as we're seeing with Apple moving from Intel to it's really not an issue, right? The software and the tooling is all there to do that. But underneath that, we're going to see an arms race between the top providers as they all try and develop faster chips for doing more specific things. We've got cranium for training, that instance has they announced it last year with 800 gigabits going out of a single instance, 800 gigabits or no, but this year they doubled it. Yeah. So 1.6 terabytes out of a single machine, right? That's insane, right? But what you're doing is you're putting together hundreds or thousands of those to solve the big machine learning training problems. These super, these enormous clusters that they're being formed for doing these massive problems. And there is a market now, for these incredibly large supercomputer clusters built for doing AI. That's all bandwidth limited. >> And you think about the timeframe from design to tape out. >> Yeah. >> Is just getting compressed It's relative. >> It is. >> Six is going the other way >> The tooling is all there. Yeah. >> Fantastic. Adrian, always a pleasure to have you on. Thanks so much. >> Yeah. >> Really appreciate it. >> Yeah, thank you. >> Thank you Paul. >> Cheers. All right. Keep it right there everybody. Don't forget, go to thecube.net, you'll see all these videos. Go to siliconangle.com, We've got features with Adam Selipsky, we got my breaking analysis, we have another feature with MongoDB's, Dev Ittycheria, Ali Ghodsi, as well Frank Sluman tomorrow. So check that out. Keep it right there. You're watching theCUBE, the leader in enterprise and emerging tech, right back. (soft techno upbeat music)

>>Good afternoon everyone, and welcome back to the Cube. I am Savannah Peterson here, coming to you from Detroit, Michigan. We're at Cuban Day three. Such a series of exciting interviews. We've done over 30, but this conversation is gonna be extra special, don't you think, John? >>Yeah, this is gonna be a good one. Griffon Labs is here with us. We're getting the conversation of what's going on in the industry management, watching the Kubernetes clusters. This is large scale conversations this week. It's gonna be a good one. >>Yeah. Yeah. I'm very excited. He's also got a fantastic Twitter handle, twitchy. H Please welcome Richie Hartman, who is the director of community here at Griffon. Richie, thank you so much for joining us. Thanks >>For having me. >>How's the show been for you? >>Busy. I, I mean, I, I, >>In >>A word, I have a ton of talks at at like maintain a thing and like the covering board searches at the TLC panel. I run forme day. So it's, it's been busy. It, yeah. Monday, I didn't have to run anything. That was quite nice. But there >>You, you have your hands in a lot. I'm not even gonna cover it. Looking at your bio, there's, there's so many different things that you're working on. I know that Grafana specifically had some announcements this week. Yeah, >>Yeah, yeah. We had quite a few, like the, the two largest ones is a, we now have a field Kubernetes integration on Grafana Cloud. So our, our approach is generally extremely open source first. So we try to push stuff into the exporters, like into the open source exporters, into mixes into things which are out there as open source for anyone to use. But that's little bit like a tool set, not a ready made solution. So when we talk integrations, we actually talk about things where you get this like one click experience, You log into your Grafana cloud, you click, I have a Kubernetes, which probably most of us have, and things just work like you in just the data. You have to write dashboards, you have to write alerts, you have to write everything to just get started with extremely opinionated dashboards, SLOs, alerts, again, all those things made by experts, so anyone can use them. And you don't have to reinvent the view for every single user. So that's the one. The other is, >>It's a big deal. >>Oh yeah, it is. Yeah. It is. It, we, we has, its heavily in integrations course. While, I mean, I don't have to convince anyone that perme is a DD factor standard in everything. Cloudnative. But again, it's, it's, it's sometimes a little bit hard to handle or a little bit not easy to get into. So, so smoothing this, this, this path onto onboarding yourself onto this stack and onto those types of solutions. Yes. Is what a lot of people need. Course, if you, if you look at the statistics from coupon, and we just heard this in the governing board session yesterday. Yeah. Like 60% of the people here are first time attendees. So there's a lot of people who just come into this thing and who need, like, this is your path. This is where you should be going. Or at least if you want to go, go there. This is how to get there. >>Here's your runway for takeoff. Yes. Yeah. I think that's a really good point. And I love that you, you had those numbers. I was curious. I, I had seen on Twitter, speaking of Twitter, I had seen, I had seen that, that there were a lot of people here coming for the first time. You're a community guy. Are we at an inflection point where this community is about to continue to scale? >>That's a very good question. Which I can't really answer. So I mean, >>Obviously I bet you're gonna try. >>I covid changed a few things. Yeah. Probably most people, >>A couple things. I mean, you know, casually, it's like such a gentle way of putting that, that was >>Beautiful. I'm gonna say yes, just to explode. All these new ERs are gonna learn Prometheus. They're gonna roll in with a open, open metrics, open telemetry. I love it, >>You know, But, but at the same time, like Cuban is, is ramping back up. But if you look at the, if you look at the registration numbers between Valencia Andro, it was more or less the same. Interesting. Which, so it didn't go onto this, onto this flu trajectory, which it was on like, up to, up to 2019. I expect this to take up again. But also with the economic situation, everything, I, I don't think >>It's, I think the jury's still out on hybrid. I think there's a lot, lot more hybrid. Let's see how the projects are gonna go. That's what I think it's gonna be the tell sign. How many people are in participating? How are the project's advancing? Some of the momentum, >>I mean, from the project level, Most of this is online anyway. Of course. That's how open source, right. I've been working for >>Ages. That's >>Cause you don't have any trouble budget or, or any office or, It's >>Always been that way. >>Yeah, precisely. So the projects are arguably spearheading this, this development and the, the online numbers. I I, I have some numbers in my head, but I'm, I'm not a hundred percent certain to, but they're higher for this time in Detroit than in volunteer as far somewhere. Cool. So that is growing and it's grown in parallel, which also is great. Cause it's much more accessible, much more inclusive. You don't have to have a budget of at least, let's say, I don't know, two to five k to, to fly over the pond and, and attend this thing. You can just do it from your home. So that is, that's a lot more inclusive. And I expect this to, to basically be a second more or less orthogonal growth, growth path. But the best thing about coupon is the hallway track. I'm just meeting people, talking to people and that kind of thing is not really possible with, >>It's, it's great to see people >>In person. No, and it makes such a difference. I mean, yeah. Even and interviewing people in person too. I mean, it does a, it's, it's, and, and this, this whole, I mean cncf, this whole community, every company here is community first. It's how these projects come to be. I think it's awesome. I feel like you got something you're saying to say, Johnny. >>Yeah. And I love some of the advancements. Rich Richie, we talked last time about, you know, open telemetry, open metrics. You're involved in dashboards. Yeah. One of the themes here is ease of use, simplicity, developer productivity. Where do you see the ease of use going from a project standpoint? For me, as you mentions everywhere, it's pretty much, it is, it's almost all corners of the world. Yep. And new people coming in. How, how are you making it easier? What's going on? Give us the update on that. >>So we also, funnily enough at precisely this topic in the TC panel just a few hours ago, about ease of use and about how to, how to make things easier to, to handle how developers currently, like if they just want to get into the cloud native seen, they have like, like we, we did some neck and math, like maybe 10 tools at least, which you have to be somewhat proficient in to just get started, which is honestly horrendous. Yeah. Course. Like with a server, I just had my survey install my thing and it runs, maybe I need a database, but that's roughly it. And this needs to change again. Like it's, it's nice that everything is, is un unraveled. And you have, you, you, you, you don't have those service boundaries which you had before. You can do all the horizontal scaling, you can do all the automatic scaling, all those things that they're super nice. But at the same time, this complexity, which used to be nicely compartmentalized, was deliberately broken up. And so it's becoming a lot harder to, to, like, we, we need to find new ways to compartmentalize this complexity back to, to human understandable levels again, in particular, as we keep onboarding new and new and new, new people, of course it's just not good use of anyone's time to, to just like learn the basics again and again and again. This is something which should be just compartmentalized and automated away. We're >>The three, We were talking to Matt Klein earlier and he was talking about as projects become mature and all over the place and have reach and and usage, you gotta work on the boring stuff. Yes. And when it's boring, that means you have success. Yes. But then you gotta work on the plumbing. What are some of the things that you guys are working on? Because people are relying on the product. >>Oh yeah. So for with my premises head on, the highlight feature is exponential or native or spars. Histograms. There's like three different names for one single concept. If you know Prometheus, you ha you currently have hard bucket boundaries where I say my latency is lower equal two seconds, one second, a hundred milliseconds, what have you. And I can put stuff into those histogram buckets accordingly to those predefined levels, which is extremely efficient, but like on the, on the code level. But it's not very nice for the humans course you need to understand your system before you're able to, to, to choose good cutoff points. And if you, if you, if you add new ones, that's completely fine. But if you want to actually change them, course you, you figured out that you made a fundamental mistake, you're going to have a break in the continue continuity of your observability data. And you cannot undo this in, into the past. So this is just gone native histograms. On the other hand, allow me to, to, okay, I'm not going to get get into the math, but basically you define a single formula, which there comes a good default. If you have good reasons, then you can change it. But if you don't, just don't talk, >>The people are in the math, Hit him up on Twitter. Twitter, h you'll get you that math. >>So the, >>The thing is people want the math, believe me. >>Oh >>Yeah. I mean we don't have time, but hit him up. Yeah. >>There's ProCon in two weeks in Munich and there will be whole talk about like the, the dirty details of all of the stuff. But the, the high level answer is it just does what people would expect it to do. And with very little overhead, you become, you get highly, highly or high resolution histograms, which is really important for a lot of use cases. But this is not just Prometheus with my open metrics head on the 2.0 feature, like the breaking highlight feature of Open Metrics 2.0 will be you guested precisely the same with my open telemetry head on. Low and behold the same underlying technology is being put or has been put into open telemetry. And we've worked for month and month and month and even longer between all different projects to, to assert that we have one single standard which is actually compatible with each other course. One of the worst things which you can have in the cloud ecosystem is if you have soly different things and they break in subtly wrong ways, like it's much better to just not work than to break in a way, which is just a little bit wrong. Of course you won't figure this out until it's too late. So we spent, like with all three hats, we spent insane amounts of time on making this happen and, and making this nice. >>Savannah, one of the things we have so much going on at Cube Con. I mean just you're unpacking like probably another day of cube. We can't go four days, but open time. >>I know, I know. I'm the same >>Open telemetry >>Challenge acceptance open. >>Sorry, we're gonna stay here. All the, They >>Shut the lights off on us last night. >>They literally gonna pull the plug on us. Yeah, yeah, yeah, yeah. They've done that before. It's not the first time we go until they kick us out. We love, love doing this. But Open telemetry is got a lot of news too. So that's, We haven't really talked much about that. >>We haven't at >>All. So there's a lot of stuff going on that, I won't call it boring. That's like code word's. That's cube talk for, for it's working. Yeah. So it's not bad, but there's a lot of stuff going on. Like open telemetry, open metrics, This is the stuff that matters cuz when you go in large scale, that's key. It's just what, missing all the, all the stuff. >>No, >>What are we missing? What are people missing? What's going on in the show that you think that's not actually being reported on? I mean it's a lot of high web assembly for instance got a lot >>Of high. Oh yeah, I was gonna say, I'm glad you're asking this because you, you've already mentioned about seven different hats that you wear. I can only imagine how many hats are actually in your hat cabinet. But you, you are someone with your, with your fingers in a lot of different things. So you can kind of give us a state of the union. Yeah. So go ahead. Let's talk about >>It. So I think you already hit a few good points. Ease of use is definitely one of them. And, and improving the developer experience and not having this like a value of pain. Yeah. That is one of the really big ones. It's going to be interesting cause it is boring. It is janitorial and it needs a different type of persona. A lot of, or maybe not most, but a large fraction of developers like the shiny stuff. And we could see this in Prometheus where like initially the people who contributed this the most where like those restless people who need to fix that one thing, this is impossible, are going to do it. Which changed over the years where the people who now contribute the most are off the janitorial. Like keep things boring, keep things running, still have substantial changes. But but not like more on the maintenance level. >>Yeah. The maintainers. I was just gonna bring that >>Up. Yeah. On the, on the keep things boring while still pushing 'em forward. Yeah. And the thing about ease of use is a lot of this is boring. A lot of this is strategy. A lot of this is toil. A lot of this takes lots of research also in areas where developers are not really good at, like UX for example, and ui like most software developers are really bad at those cause they just think differently from normal humans, I guess. >>So that's an interesting observation that you just made. I we could unpack that on a whole nother show as well. >>So the, the thing is this is going to be interesting for the open source scene course. This needs deliberate investment by companies who assign people to those projects and say, okay, fix that one thing or make it easier to use what have you. That is a lot easier with, with first party products and projects from companies cuz they can invest directly into the thing and they see much more of a value prop. It's, it's kind of normal by now to, to allow developers or even assigned developers onto open source projects. That's not so much the case for the tpms, for the architects, for the UX and your I people like for the documentation people that there's not as much awareness of that this is also driving value for everyone. Yes. And also there's not much as much. >>Yeah, that's a great point. This whole workflow production system of open source, which has grown and keeps growing and we'll keep growing. These be funded. And one of the things we were talking earlier in another session about is about the recession potentially we're hitting and the global issues, macroeconomics that might force some of these projects or companies not to get VC >>Funding. It's such a theme at the show. So, >>So to me, I said it's just not about VC funding. There's other funding mechanisms that's community oriented. There's companies participating, there's other meccas. Richie, if you could have your wishlist of how things could progress an open source, what would you want to see happen in terms of how it's, how things are funded, how things are executed. Cuz developers are going to run businesses. Cuz ultimately if you follow digital transformation to completion, it and developers aren't a department serving the business. They are the business. And that's coming fast. You know, what has to happen in your opinion, if you had the wish magic wand, what would you, what would you snap your fingers to make happen? >>If I had a magic wand that's very different from, from what is achievable. But let, let's >>Go with, Okay, go with the magic wand first. Cause we'll, we'll, we'll we'll riff on that. So >>I'm here for dreams. Yeah, yeah, >>Yeah. I mean I, I've been in open source for more than two, two decades, but now, and most of the open source is being driven forward by people who are not being paid for those. So for example, Gana is the first time I'm actually paid by a company to do my com community work. It's always been on the side. Of course I believe in it and I like doing it. I'm also not bad at it. And so I just kept doing it. But it was like at night on the weekends and everything. And to be honest, it's still at night and in the weekends, but the majority of it is during paid company time, which is awesome. Yeah. Most of the people who have driven this space forward are not in this position. They're doing it at night, they're doing it on the weekends. They're doing it out of dedication to a cause. Yeah. >>The commitment is insane. >>Yeah. At the same time you have companies mostly hyperscalers and either they have really big cloud offerings or they have really big advertisement business or both. And they're extracting a huge amount of value, which has been created in large part elsewhere. Like yes, they employ a ton of developers, but a lot of the technologies they built on and the shoulders of the giants they stand upon it are really poorly paid. And there are some efforts to like, I think the core foundation like which redistribute a little bit of money and such. But if I had my magic wand, everyone who is an open source and actually drives things forwards, get, I don't know, 20% of the value which they create just magically somehow. Yeah. >>Or, or other companies don't extract as much value and, and redistribute more like put more full-time engineers onto projects or whichever, like that would be the ideal state where the people who actually make the thing out of dedication are not more or less left on the sideline. Of course they're too dedicated to just say, Okay, I'm, I'm not doing this anymore. You figure this stuff out and let things tremble and falter. So I mean, it's like with nurses and such who, who just like, they, they know they have something which is important and they keep doing it. Of course they believe in it. >>I think this, I think this is an opportunity to start messaging this narrative because yeah, absolutely. Now we're at an inflection point where there's a big community, there is a shared responsibility in my opinion, to not spread the wealth, but make sure that it's equally balanced and, and the, and I think there's a way to do that. I don't know how yet, but I see that more than ever, it's not just come in, raid the kingdom, steal all the jewels, monetize it, and throw some token token money around. >>Well, in the burnout. Yeah, I mean I, the other thing that I'm thinking about too is it's, you know, it's, it's the, it's the financial aspect of this. It's the cognitive load. And I'm curious actually, when I ask you this question, how do you avoid burnout? You do a million different things and we're, you know, I'm sure the open source community that passion the >>Coach. Yeah. So it's just write code, >>It's, oh, my, my, my software engineering days are firmly over. I'm, I'm, I'm like, I'm the cat herer and the janitor and like this type of thing. I, I don't really write code anymore. >>It's how do you avoid burnout? >>So a i I didn't curse ahead burnout a few years ago. I was not nice, but that was still when I had like a full day job and that day job was super intense and on top I did all the things. Part of being honest, a lot of the people who do this are really dedicated and are really bad at setting boundaries between work >>And process. That's why I bring it up. Yeah. Literally why I bring it up. Yeah. >>I I I'm firmly in that area and I'm, I'm, I don't claim I have this fully figured out yet. It's also even more risky to some extent per like, it's, it's good if you're paid for this and you can do it during your work time. But on the other hand, if it's so nice and like if your hobby and your job are almost completely intersectional, it >>Becomes really, the lines are blurry. >>Yeah. And then yeah, like have work from home. You, you don't even commute anything or anymore. You just sit down at your computer and you just have fun doing your stuff and all of a sudden it's deep at night and you're still like, I want to keep going. >>Sounds like God, something cute. I >>Know. I was gonna say, I was like, passion is something we all have in common here on this. >>That's the key. That is the key point There is a, the, the passion project becomes the job. But now the contribution is interesting because now yeah, this ecosystem is, is has a commercial aspect. Again, this is the, this is the balance between commercialization and keeping that organic production system that's called open source. I mean, it's so fascinating and this is amazing. I want to continue that conversation. It's >>Awesome. Yeah. Yeah. This is, this is great. Richard, this entire conversation has been excellent. Thank you so much for joining us. How can people find you? I mean, I give em your Twitter handle, but if they wanna find out more about Grafana Prometheus and the 1700 things you do >>For grafana grafana.com, for Prometheus, promeus.io for my own stuff, GitHub slash richie age slash talks. Of course I track all my talks in there and like, I don't, I currently don't have a personal website cause I stop bothering, but my, like that repository is, is very, you find what I do over, like for example, the recording link will be uploaded to this GitHub. >>Yeah. Great. Follow. You also run a lot of events and a lot of community activity. Congratulations for you. Also, I talked about this last time, the largest IRC network on earth. You ran, built a data center from scratch. What happened? You done >>That? >>Haven't done a, he even built a cloud hyperscale compete with Amazon. That's the next one. Why don't you put that on the >>Plate? We'll be sure to feature whatever Richie does next year on the cube. >>I'm game. Yeah. >>Fantastic. On that note, Richie, again, thank you so much for being here, John, always a pleasure. Thank you. And thank you for tuning in to us here live from Detroit, Michigan on the cube. My name is Savannah Peterson and here's to hoping that you find balance in your life this weekend.

>> From The Cube Studios in Palo Alto and Boston, bringing you data driven insights from The Cube at ETR. This is "Breaking Analysis" with Dave Vellante. >> The reverse momentum in tech stocks caused by rising interest rates, less attractive discounted cash flow models, and more tepid forward guidance, can be easily measured by public market valuations. And while there's lots of discussion about the impact on private companies and cash runway and 409A valuations, measuring the performance of non-public companies isn't as easy. IPOs have dried up and public statements by private companies, of course, they accentuate the good and they kind of hide the bad. Real data, unless you're an insider, is hard to find. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR. In this "Breaking Analysis", we unlock some of the secrets that non-public, emerging tech companies may or may not be sharing. And we do this by introducing you to a capability from ETR that we've not exposed you to over the past couple of years, it's called the Emerging Technologies Survey, and it is packed with sentiment data and performance data based on surveys of more than a thousand CIOs and IT buyers covering more than 400 companies. And we've invited back our colleague, Erik Bradley of ETR to help explain the survey and the data that we're going to cover today. Erik, this survey is something that I've not personally spent much time on, but I'm blown away at the data. It's really unique and detailed. First of all, welcome. Good to see you again. >> Great to see you too, Dave, and I'm really happy to be talking about the ETS or the Emerging Technology Survey. Even our own clients of constituents probably don't spend as much time in here as they should. >> Yeah, because there's so much in the mainstream, but let's pull up a slide to bring out the survey composition. Tell us about the study. How often do you run it? What's the background and the methodology? >> Yeah, you were just spot on the way you were talking about the private tech companies out there. So what we did is we decided to take all the vendors that we track that are not yet public and move 'em over to the ETS. And there isn't a lot of information out there. If you're not in Silicon (indistinct), you're not going to get this stuff. So PitchBook and Tech Crunch are two out there that gives some data on these guys. But what we really wanted to do was go out to our community. We have 6,000, ITDMs in our community. We wanted to ask them, "Are you aware of these companies? And if so, are you allocating any resources to them? Are you planning to evaluate them," and really just kind of figure out what we can do. So this particular survey, as you can see, 1000 plus responses, over 450 vendors that we track. And essentially what we're trying to do here is talk about your evaluation and awareness of these companies and also your utilization. And also if you're not utilizing 'em, then we can also figure out your sales conversion or churn. So this is interesting, not only for the ITDMs themselves to figure out what their peers are evaluating and what they should put in POCs against the big guys when contracts come up. But it's also really interesting for the tech vendors themselves to see how they're performing. >> And you can see 2/3 of the respondents are director level of above. You got 28% is C-suite. There is of course a North America bias, 70, 75% is North America. But these smaller companies, you know, that's when they start doing business. So, okay. We're going to do a couple of things here today. First, we're going to give you the big picture across the sectors that ETR covers within the ETS survey. And then we're going to look at the high and low sentiment for the larger private companies. And then we're going to do the same for the smaller private companies, the ones that don't have as much mindshare. And then I'm going to put those two groups together and we're going to look at two dimensions, actually three dimensions, which companies are being evaluated the most. Second, companies are getting the most usage and adoption of their offerings. And then third, which companies are seeing the highest churn rates, which of course is a silent killer of companies. And then finally, we're going to look at the sentiment and mindshare for two key areas that we like to cover often here on "Breaking Analysis", security and data. And data comprises database, including data warehousing, and then big data analytics is the second part of data. And then machine learning and AI is the third section within data that we're going to look at. Now, one other thing before we get into it, ETR very often will include open source offerings in the mix, even though they're not companies like TensorFlow or Kubernetes, for example. And we'll call that out during this discussion. The reason this is done is for context, because everyone is using open source. It is the heart of innovation and many business models are super glued to an open source offering, like take MariaDB, for example. There's the foundation and then there's with the open source code and then there, of course, the company that sells services around the offering. Okay, so let's first look at the highest and lowest sentiment among these private firms, the ones that have the highest mindshare. So they're naturally going to be somewhat larger. And we do this on two dimensions, sentiment on the vertical axis and mindshare on the horizontal axis and note the open source tool, see Kubernetes, Postgres, Kafka, TensorFlow, Jenkins, Grafana, et cetera. So Erik, please explain what we're looking at here, how it's derived and what the data tells us. >> Certainly, so there is a lot here, so we're going to break it down first of all by explaining just what mindshare and net sentiment is. You explain the axis. We have so many evaluation metrics, but we need to aggregate them into one so that way we can rank against each other. Net sentiment is really the aggregation of all the positive and subtracting out the negative. So the net sentiment is a very quick way of looking at where these companies stand versus their peers in their sectors and sub sectors. Mindshare is basically the awareness of them, which is good for very early stage companies. And you'll see some names on here that are obviously been around for a very long time. And they're clearly be the bigger on the axis on the outside. Kubernetes, for instance, as you mentioned, is open source. This de facto standard for all container orchestration, and it should be that far up into the right, because that's what everyone's using. In fact, the open source leaders are so prevalent in the emerging technology survey that we break them out later in our analysis, 'cause it's really not fair to include them and compare them to the actual companies that are providing the support and the security around that open source technology. But no survey, no analysis, no research would be complete without including these open source tech. So what we're looking at here, if I can just get away from the open source names, we see other things like Databricks and OneTrust . They're repeating as top net sentiment performers here. And then also the design vendors. People don't spend a lot of time on 'em, but Miro and Figma. This is their third survey in a row where they're just dominating that sentiment overall. And Adobe should probably take note of that because they're really coming after them. But Databricks, we all know probably would've been a public company by now if the market hadn't turned, but you can see just how dominant they are in a survey of nothing but private companies. And we'll see that again when we talk about the database later. >> And I'll just add, so you see automation anywhere on there, the big UiPath competitor company that was not able to get to the public markets. They've been trying. Snyk, Peter McKay's company, they've raised a bunch of money, big security player. They're doing some really interesting things in developer security, helping developers secure the data flow, H2O.ai, Dataiku AI company. We saw them at the Snowflake Summit. Redis Labs, Netskope and security. So a lot of names that we know that ultimately we think are probably going to be hitting the public market. Okay, here's the same view for private companies with less mindshare, Erik. Take us through this one. >> On the previous slide too real quickly, I wanted to pull that security scorecard and we'll get back into it. But this is a newcomer, that I couldn't believe how strong their data was, but we'll bring that up in a second. Now, when we go to the ones of lower mindshare, it's interesting to talk about open source, right? Kubernetes was all the way on the top right. Everyone uses containers. Here we see Istio up there. Not everyone is using service mesh as much. And that's why Istio is in the smaller breakout. But still when you talk about net sentiment, it's about the leader, it's the highest one there is. So really interesting to point out. Then we see other names like Collibra in the data side really performing well. And again, as always security, very well represented here. We have Aqua, Wiz, Armis, which is a standout in this survey this time around. They do IoT security. I hadn't even heard of them until I started digging into the data here. And I couldn't believe how well they were doing. And then of course you have AnyScale, which is doing a second best in this and the best name in the survey Hugging Face, which is a machine learning AI tool. Also doing really well on a net sentiment, but they're not as far along on that access of mindshare just yet. So these are again, emerging companies that might not be as well represented in the enterprise as they will be in a couple of years. >> Hugging Face sounds like something you do with your two year old. Like you said, you see high performers, AnyScale do machine learning and you mentioned them. They came out of Berkeley. Collibra Governance, InfluxData is on there. InfluxDB's a time series database. And yeah, of course, Alex, if you bring that back up, you get a big group of red dots, right? That's the bad zone, I guess, which Sisense does vis, Yellowbrick Data is a NPP database. How should we interpret the red dots, Erik? I mean, is it necessarily a bad thing? Could it be misinterpreted? What's your take on that? >> Sure, well, let me just explain the definition of it first from a data science perspective, right? We're a data company first. So the gray dots that you're seeing that aren't named, that's the mean that's the average. So in order for you to be on this chart, you have to be at least one standard deviation above or below that average. So that gray is where we're saying, "Hey, this is where the lump of average comes in. This is where everyone normally stands." So you either have to be an outperformer or an underperformer to even show up in this analysis. So by definition, yes, the red dots are bad. You're at least one standard deviation below the average of your peers. It's not where you want to be. And if you're on the lower left, not only are you not performing well from a utilization or an actual usage rate, but people don't even know who you are. So that's a problem, obviously. And the VCs and the PEs out there that are backing these companies, they're the ones who mostly are interested in this data. >> Yeah. Oh, that's great explanation. Thank you for that. No, nice benchmarking there and yeah, you don't want to be in the red. All right, let's get into the next segment here. Here going to look at evaluation rates, adoption and the all important churn. First new evaluations. Let's bring up that slide. And Erik, take us through this. >> So essentially I just want to explain what evaluation means is that people will cite that they either plan to evaluate the company or they're currently evaluating. So that means we're aware of 'em and we are choosing to do a POC of them. And then we'll see later how that turns into utilization, which is what a company wants to see, awareness, evaluation, and then actually utilizing them. That's sort of the life cycle for these emerging companies. So what we're seeing here, again, with very high evaluation rates. H2O, we mentioned. SecurityScorecard jumped up again. Chargebee, Snyk, Salt Security, Armis. A lot of security names are up here, Aqua, Netskope, which God has been around forever. I still can't believe it's in an Emerging Technology Survey But so many of these names fall in data and security again, which is why we decided to pick those out Dave. And on the lower side, Vena, Acton, those unfortunately took the dubious award of the lowest evaluations in our survey, but I prefer to focus on the positive. So SecurityScorecard, again, real standout in this one, they're in a security assessment space, basically. They'll come in and assess for you how your security hygiene is. And it's an area of a real interest right now amongst our ITDM community. >> Yeah, I mean, I think those, and then Arctic Wolf is up there too. They're doing managed services. You had mentioned Netskope. Yeah, okay. All right, let's look at now adoption. These are the companies whose offerings are being used the most and are above that standard deviation in the green. Take us through this, Erik. >> Sure, yet again, what we're looking at is, okay, we went from awareness, we went to evaluation. Now it's about utilization, which means a survey respondent's going to state "Yes, we evaluated and we plan to utilize it" or "It's already in our enterprise and we're actually allocating further resources to it." Not surprising, again, a lot of open source, the reason why, it's free. So it's really easy to grow your utilization on something that's free. But as you and I both know, as Red Hat proved, there's a lot of money to be made once the open source is adopted, right? You need the governance, you need the security, you need the support wrapped around it. So here we're seeing Kubernetes, Postgres, Apache Kafka, Jenkins, Grafana. These are all open source based names. But if we're looking at names that are non open source, we're going to see Databricks, Automation Anywhere, Rubrik all have the highest mindshare. So these are the names, not surprisingly, all names that probably should have been public by now. Everyone's expecting an IPO imminently. These are the names that have the highest mindshare. If we talk about the highest utilization rates, again, Miro and Figma pop up, and I know they're not household names, but they are just dominant in this survey. These are applications that are meant for design software and, again, they're going after an Autodesk or a CAD or Adobe type of thing. It is just dominant how high the utilization rates are here, which again is something Adobe should be paying attention to. And then you'll see a little bit lower, but also interesting, we see Collibra again, we see Hugging Face again. And these are names that are obviously in the data governance, ML, AI side. So we're seeing a ton of data, a ton of security and Rubrik was interesting in this one, too, high utilization and high mindshare. We know how pervasive they are in the enterprise already. >> Erik, Alex, keep that up for a second, if you would. So yeah, you mentioned Rubrik. Cohesity's not on there. They're sort of the big one. We're going to talk about them in a moment. Puppet is interesting to me because you remember the early days of that sort of space, you had Puppet and Chef and then you had Ansible. Red Hat bought Ansible and then Ansible really took off. So it's interesting to see Puppet on there as well. Okay. So now let's look at the churn because this one is where you don't want to be. It's, of course, all red 'cause churn is bad. Take us through this, Erik. >> Yeah, definitely don't want to be here and I don't love to dwell on the negative. So we won't spend as much time. But to your point, there's one thing I want to point out that think it's important. So you see Rubrik in the same spot, but Rubrik has so many citations in our survey that it actually would make sense that they're both being high utilization and churn just because they're so well represented. They have such a high overall representation in our survey. And the reason I call that out is Cohesity. Cohesity has an extremely high churn rate here about 17% and unlike Rubrik, they were not on the utilization side. So Rubrik is seeing both, Cohesity is not. It's not being utilized, but it's seeing a high churn. So that's the way you can look at this data and say, "Hm." Same thing with Puppet. You noticed that it was on the other slide. It's also on this one. So basically what it means is a lot of people are giving Puppet a shot, but it's starting to churn, which means it's not as sticky as we would like. One that was surprising on here for me was Tanium. It's kind of jumbled in there. It's hard to see in the middle, but Tanium, I was very surprised to see as high of a churn because what I do hear from our end user community is that people that use it, like it. It really kind of spreads into not only vulnerability management, but also that endpoint detection and response side. So I was surprised by that one, mostly to see Tanium in here. Mural, again, was another one of those application design softwares that's seeing a very high churn as well. >> So you're saying if you're in both... Alex, bring that back up if you would. So if you're in both like MariaDB is for example, I think, yeah, they're in both. They're both green in the previous one and red here, that's not as bad. You mentioned Rubrik is going to be in both. Cohesity is a bit of a concern. Cohesity just brought on Sanjay Poonen. So this could be a go to market issue, right? I mean, 'cause Cohesity has got a great product and they got really happy customers. So they're just maybe having to figure out, okay, what's the right ideal customer profile and Sanjay Poonen, I guarantee, is going to have that company cranking. I mean they had been doing very well on the surveys and had fallen off of a bit. The other interesting things wondering the previous survey I saw Cvent, which is an event platform. My only reason I pay attention to that is 'cause we actually have an event platform. We don't sell it separately. We bundle it as part of our offerings. And you see Hopin on here. Hopin raised a billion dollars during the pandemic. And we were like, "Wow, that's going to blow up." And so you see Hopin on the churn and you didn't see 'em in the previous chart, but that's sort of interesting. Like you said, let's not kind of dwell on the negative, but you really don't. You know, churn is a real big concern. Okay, now we're going to drill down into two sectors, security and data. Where data comprises three areas, database and data warehousing, machine learning and AI and big data analytics. So first let's take a look at the security sector. Now this is interesting because not only is it a sector drill down, but also gives an indicator of how much money the firm has raised, which is the size of that bubble. And to tell us if a company is punching above its weight and efficiently using its venture capital. Erik, take us through this slide. Explain the dots, the size of the dots. Set this up please. >> Yeah. So again, the axis is still the same, net sentiment and mindshare, but what we've done this time is we've taken publicly available information on how much capital company is raised and that'll be the size of the circle you see around the name. And then whether it's green or red is basically saying relative to the amount of money they've raised, how are they doing in our data? So when you see a Netskope, which has been around forever, raised a lot of money, that's why you're going to see them more leading towards red, 'cause it's just been around forever and kind of would expect it. Versus a name like SecurityScorecard, which is only raised a little bit of money and it's actually performing just as well, if not better than a name, like a Netskope. OneTrust doing absolutely incredible right now. BeyondTrust. We've seen the issues with Okta, right. So those are two names that play in that space that obviously are probably getting some looks about what's going on right now. Wiz, we've all heard about right? So raised a ton of money. It's doing well on net sentiment, but the mindshare isn't as well as you'd want, which is why you're going to see a little bit of that red versus a name like Aqua, which is doing container and application security. And hasn't raised as much money, but is really neck and neck with a name like Wiz. So that is why on a relative basis, you'll see that more green. As we all know, information security is never going away. But as we'll get to later in the program, Dave, I'm not sure in this current market environment, if people are as willing to do POCs and switch away from their security provider, right. There's a little bit of tepidness out there, a little trepidation. So right now we're seeing overall a slight pause, a slight cooling in overall evaluations on the security side versus historical levels a year ago. >> Now let's stay on here for a second. So a couple things I want to point out. So it's interesting. Now Snyk has raised over, I think $800 million but you can see them, they're high on the vertical and the horizontal, but now compare that to Lacework. It's hard to see, but they're kind of buried in the middle there. That's the biggest dot in this whole thing. I think I'm interpreting this correctly. They've raised over a billion dollars. It's a Mike Speiser company. He was the founding investor in Snowflake. So people watch that very closely, but that's an example of where they're not punching above their weight. They recently had a layoff and they got to fine tune things, but I'm still confident they they're going to do well. 'Cause they're approaching security as a data problem, which is probably people having trouble getting their arms around that. And then again, I see Arctic Wolf. They're not red, they're not green, but they've raised fair amount of money, but it's showing up to the right and decent level there. And a couple of the other ones that you mentioned, Netskope. Yeah, they've raised a lot of money, but they're actually performing where you want. What you don't want is where Lacework is, right. They've got some work to do to really take advantage of the money that they raised last November and prior to that. >> Yeah, if you're seeing that more neutral color, like you're calling out with an Arctic Wolf, like that means relative to their peers, this is where they should be. It's when you're seeing that red on a Lacework where we all know, wow, you raised a ton of money and your mindshare isn't where it should be. Your net sentiment is not where it should be comparatively. And then you see these great standouts, like Salt Security and SecurityScorecard and Abnormal. You know they haven't raised that much money yet, but their net sentiment's higher and their mindshare's doing well. So those basically in a nutshell, if you're a PE or a VC and you see a small green circle, then you're doing well, then it means you made a good investment. >> Some of these guys, I don't know, but you see these small green circles. Those are the ones you want to start digging into and maybe help them catch a wave. Okay, let's get into the data discussion. And again, three areas, database slash data warehousing, big data analytics and ML AI. First, we're going to look at the database sector. So Alex, thank you for bringing that up. Alright, take us through this, Erik. Actually, let me just say Postgres SQL. I got to ask you about this. It shows some funding, but that actually could be a mix of EDB, the company that commercializes Postgres and Postgres the open source database, which is a transaction system and kind of an open source Oracle. You see MariaDB is a database, but open source database. But the companies they've raised over $200 million and they filed an S-4. So Erik looks like this might be a little bit of mashup of companies and open source products. Help us understand this. >> Yeah, it's tough when you start dealing with the open source side and I'll be honest with you, there is a little bit of a mashup here. There are certain names here that are a hundred percent for profit companies. And then there are others that are obviously open source based like Redis is open source, but Redis Labs is the one trying to monetize the support around it. So you're a hundred percent accurate on this slide. I think one of the things here that's important to note though, is just how important open source is to data. If you're going to be going to any of these areas, it's going to be open source based to begin with. And Neo4j is one I want to call out here. It's not one everyone's familiar with, but it's basically geographical charting database, which is a name that we're seeing on a net sentiment side actually really, really high. When you think about it's the third overall net sentiment for a niche database play. It's not as big on the mindshare 'cause it's use cases aren't as often, but third biggest play on net sentiment. I found really interesting on this slide. >> And again, so MariaDB, as I said, they filed an S-4 I think $50 million in revenue, that might even be ARR. So they're not huge, but they're getting there. And by the way, MariaDB, if you don't know, was the company that was formed the day that Oracle bought Sun in which they got MySQL and MariaDB has done a really good job of replacing a lot of MySQL instances. Oracle has responded with MySQL HeatWave, which was kind of the Oracle version of MySQL. So there's some interesting battles going on there. If you think about the LAMP stack, the M in the LAMP stack was MySQL. And so now it's all MariaDB replacing that MySQL for a large part. And then you see again, the red, you know, you got to have some concerns about there. Aerospike's been around for a long time. SingleStore changed their name a couple years ago, last year. Yellowbrick Data, Fire Bolt was kind of going after Snowflake for a while, but yeah, you want to get out of that red zone. So they got some work to do. >> And Dave, real quick for the people that aren't aware, I just want to let them know that we can cut this data with the public company data as well. So we can cross over this with that because some of these names are competing with the larger public company names as well. So we can go ahead and cross reference like a MariaDB with a Mongo, for instance, or of something of that nature. So it's not in this slide, but at another point we can certainly explain on a relative basis how these private names are doing compared to the other ones as well. >> All right, let's take a quick look at analytics. Alex, bring that up if you would. Go ahead, Erik. >> Yeah, I mean, essentially here, I can't see it on my screen, my apologies. I just kind of went to blank on that. So gimme one second to catch up. >> So I could set it up while you're doing that. You got Grafana up and to the right. I mean, this is huge right. >> Got it thank you. I lost my screen there for a second. Yep. Again, open source name Grafana, absolutely up and to the right. But as we know, Grafana Labs is actually picking up a lot of speed based on Grafana, of course. And I think we might actually hear some noise from them coming this year. The names that are actually a little bit more disappointing than I want to call out are names like ThoughtSpot. It's been around forever. Their mindshare of course is second best here but based on the amount of time they've been around and the amount of money they've raised, it's not actually outperforming the way it should be. We're seeing Moogsoft obviously make some waves. That's very high net sentiment for that company. It's, you know, what, third, fourth position overall in this entire area, Another name like Fivetran, Matillion is doing well. Fivetran, even though it's got a high net sentiment, again, it's raised so much money that we would've expected a little bit more at this point. I know you know this space extremely well, but basically what we're looking at here and to the bottom left, you're going to see some names with a lot of red, large circles that really just aren't performing that well. InfluxData, however, second highest net sentiment. And it's really pretty early on in this stage and the feedback we're getting on this name is the use cases are great, the efficacy's great. And I think it's one to watch out for. >> InfluxData, time series database. The other interesting things I just noticed here, you got Tamer on here, which is that little small green. Those are the ones we were saying before, look for those guys. They might be some of the interesting companies out there and then observe Jeremy Burton's company. They do observability on top of Snowflake, not green, but kind of in that gray. So that's kind of cool. Monte Carlo is another one, they're sort of slightly green. They are doing some really interesting things in data and data mesh. So yeah, okay. So I can spend all day on this stuff, Erik, phenomenal data. I got to get back and really dig in. Let's end with machine learning and AI. Now this chart it's similar in its dimensions, of course, except for the money raised. We're not showing that size of the bubble, but AI is so hot. We wanted to cover that here, Erik, explain this please. Why TensorFlow is highlighted and walk us through this chart. >> Yeah, it's funny yet again, right? Another open source name, TensorFlow being up there. And I just want to explain, we do break out machine learning, AI is its own sector. A lot of this of course really is intertwined with the data side, but it is on its own area. And one of the things I think that's most important here to break out is Databricks. We started to cover Databricks in machine learning, AI. That company has grown into much, much more than that. So I do want to state to you Dave, and also the audience out there that moving forward, we're going to be moving Databricks out of only the MA/AI into other sectors. So we can kind of value them against their peers a little bit better. But in this instance, you could just see how dominant they are in this area. And one thing that's not here, but I do want to point out is that we have the ability to break this down by industry vertical, organization size. And when I break this down into Fortune 500 and Fortune 1000, both Databricks and Tensorflow are even better than you see here. So it's quite interesting to see that the names that are succeeding are also succeeding with the largest organizations in the world. And as we know, large organizations means large budgets. So this is one area that I just thought was really interesting to point out that as we break it down, the data by vertical, these two names still are the outstanding players. >> I just also want to call it H2O.ai. They're getting a lot of buzz in the marketplace and I'm seeing them a lot more. Anaconda, another one. Dataiku consistently popping up. DataRobot is also interesting because all the kerfuffle that's going on there. The Cube guy, Cube alum, Chris Lynch stepped down as executive chairman. All this stuff came out about how the executives were taking money off the table and didn't allow the employees to participate in that money raising deal. So that's pissed a lot of people off. And so they're now going through some kind of uncomfortable things, which is unfortunate because DataRobot, I noticed, we haven't covered them that much in "Breaking Analysis", but I've noticed them oftentimes, Erik, in the surveys doing really well. So you would think that company has a lot of potential. But yeah, it's an important space that we're going to continue to watch. Let me ask you Erik, can you contextualize this from a time series standpoint? I mean, how is this changed over time? >> Yeah, again, not show here, but in the data. I'm sorry, go ahead. >> No, I'm sorry. What I meant, I should have interjected. In other words, you would think in a downturn that these emerging companies would be less interesting to buyers 'cause they're more risky. What have you seen? >> Yeah, and it was interesting before we went live, you and I were having this conversation about "Is the downturn stopping people from evaluating these private companies or not," right. In a larger sense, that's really what we're doing here. How are these private companies doing when it comes down to the actual practitioners? The people with the budget, the people with the decision making. And so what I did is, we have historical data as you know, I went back to the Emerging Technology Survey we did in November of 21, right at the crest right before the market started to really fall and everything kind of started to fall apart there. And what I noticed is on the security side, very much so, we're seeing less evaluations than we were in November 21. So I broke it down. On cloud security, net sentiment went from 21% to 16% from November '21. That's a pretty big drop. And again, that sentiment is our one aggregate metric for overall positivity, meaning utilization and actual evaluation of the name. Again in database, we saw it drop a little bit from 19% to 13%. However, in analytics we actually saw it stay steady. So it's pretty interesting that yes, cloud security and security in general is always going to be important. But right now we're seeing less overall net sentiment in that space. But within analytics, we're seeing steady with growing mindshare. And also to your point earlier in machine learning, AI, we're seeing steady net sentiment and mindshare has grown a whopping 25% to 30%. So despite the downturn, we're seeing more awareness of these companies in analytics and machine learning and a steady, actual utilization of them. I can't say the same in security and database. They're actually shrinking a little bit since the end of last year. >> You know it's interesting, we were on a round table, Erik does these round tables with CISOs and CIOs, and I remember one time you had asked the question, "How do you think about some of these emerging tech companies?" And one of the executives said, "I always include somebody in the bottom left of the Gartner Magic Quadrant in my RFPs. I think he said, "That's how I found," I don't know, it was Zscaler or something like that years before anybody ever knew of them "Because they're going to help me get to the next level." So it's interesting to see Erik in these sectors, how they're holding up in many cases. >> Yeah. It's a very important part for the actual IT practitioners themselves. There's always contracts coming up and you always have to worry about your next round of negotiations. And that's one of the roles these guys play. You have to do a POC when contracts come up, but it's also their job to stay on top of the new technology. You can't fall behind. Like everyone's a software company. Now everyone's a tech company, no matter what you're doing. So these guys have to stay in on top of it. And that's what this ETS can do. You can go in here and look and say, "All right, I'm going to evaluate their technology," and it could be twofold. It might be that you're ready to upgrade your technology and they're actually pushing the envelope or it simply might be I'm using them as a negotiation ploy. So when I go back to the big guy who I have full intentions of writing that contract to, at least I have some negotiation leverage. >> Erik, we got to leave it there. I could spend all day. I'm going to definitely dig into this on my own time. Thank you for introducing this, really appreciate your time today. >> I always enjoy it, Dave and I hope everyone out there has a great holiday weekend. Enjoy the rest of the summer. And, you know, I love to talk data. So anytime you want, just point the camera on me and I'll start talking data. >> You got it. I also want to thank the team at ETR, not only Erik, but Darren Bramen who's a data scientist, really helped prepare this data, the entire team over at ETR. I cannot tell you how much additional data there is. We are just scratching the surface in this "Breaking Analysis". So great job guys. I want to thank Alex Myerson. Who's on production and he manages the podcast. Ken Shifman as well, who's just coming back from VMware Explore. Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our editor in chief over at SiliconANGLE. Does some great editing for us. Thank you. All of you guys. Remember these episodes, they're all available as podcast, wherever you listen. All you got to do is just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me to get in touch david.vellante@siliconangle.com. You can DM me at dvellante or comment on my LinkedIn posts and please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for Erik Bradley and The Cube Insights powered by ETR. Thanks for watching. Be well. And we'll see you next time on "Breaking Analysis". (upbeat music)

>> Narrator: The cube presents, the Kubecon and Cloudnativecon Europe, 2022 brought to you by Red Hat, the cloud native computing foundation and its ecosystem partners. >> Welcome to Valencia, Spain in Kubecon and Cloudnativecon Europe, 2022. I'm your host Keith Townsend. It's been a amazing day, three days of coverage 7,500 people, 170 sponsors, a good mix of end user organizations, vendors, just people with open source at large. I've loved the conversations. We're not going to stop that coverage just because this is the last session of the conference. Colin Murphy, senior software engineer, Adobe, >> Adobe. >> Oh, wow. This is going to be fun. And then Liam Randall, the chair of CNCF Cloud Native WebAssembly Day. >> That's correct. >> And CNCF & CEO of Cosmonic. >> That's right. >> All right. First off, let's talk about the show. How has this been different than other, if at all of other Kubecons? >> Well, first I think we all have to do a tremendous round of applause, not only for the vendors, but the CNC staff and all the attendees for coming out. And you have to say, Kubecon is back. The online experiences have been awesome but this was the first one, where Hallwaycon was in full effect. And you had the opportunity to sit down and meet with so many intelligent and inspiring peers and really have a chance to learn about all the exciting innovations that have happened over the last year. >> Colin. >> Yeah, it's been my most enjoyable Kubecon I've ever been to. And I've been to a bunch of them over the last few years. Just the quality of people. The problems that we're solving right now, everywhere from this newer stuff that we're talking about today with WebAssembly but then all these big enterprises trying to getting involved in Kubernetes >> Colin, to your point about the problems that we're solving, in many ways the pandemic has dramatically accelerated the pace of innovation, especially inside the CNCF, which is by far the most critical repository of open source projects that enterprises, governments and individuals rely on around the world, in order to deliver new experiences and to have coped and scaled out within the pandemic over the last few years. >> Yeah, I'm getting this feel, this vibe of the overall show that feels like we're on the cuff for something. There's other shows throughout the year, that's more vendor focused that talk about cloud native. But I think this is going to be the industry conference where we're just getting together and talking about it and it's going to probably be, in the next couple of years, the biggest conference of the year, that's just my personal opinion. >> I actually really strongly agree with you. And I think that the reason for that is the diversity that we get from the open source focus of Kubecon Kubecon has started where the industry really started which was in shared community projects. And I was the executive at Capital One that led the donation of cloud custodian into the CNCF. And I've started and put many projects here. And one of the reasons that you do that is so that you can build real scalable communities, Vendors that oftentimes even have competing interest but it gives us a place where we can truly collaborate where we can set aside our personal agendas and our company's agendas. And we can focus on the problems at hand. And how do we really raise the bar for technology for everybody. >> Now you two are representing a project that, you know as we look at kind of, how the web has evolved the past few decades, there's standards, there's things that we know that work, there's things that we know that don't work and we're beyond cloud native, we're kind of resistant to change. Funny enough. >> That's right. >> So WebAssembly, talk to me about what problem is WebAssembly solving that need solving? >> I think it's fitting that here on the last day of Kubecon, we're starting with the newest standard for the web and for background, there's only four languages that make up what we think of as the modern web. There's JavaScript, there's HTML, there's CSS, and now there's a new idea that's WebAssembly. And it's maybe not a new idea but it's certainly a new standard, that's got massive adoption and acceleration. WebAssembly is best thought of as almost like a portable little virtual machine. And like a lot of great ideas like JavaScript, it was originally designed to bring new experiences to browsers everywhere. And as organizations looked at the portability and security value props that come from this tiny little virtual machine, it's made a wonderful addition to backend servers and as a platform for portability to bring solutions all the way out to the edge. >> So what are some of the business cases for WebAssembly? Like what problem, what business problem are we solving? >> So it, you know, we would not have been able to bring Photoshop to the web without WASM. >> Wow. >> And just to be clear, I had nothing to do with that effort. So I want to make sure everybody understands, but if you have a lot of C++ or C code and you want to bring that experience to the web browser which is a great cost savings, cause it's running on the client's machines, really low latency, high performance experiences in the browser, WASM, really the only way to go. >> So I'm getting hints of fruit berry, Java. >> Liam: Yeah, absolutely. >> Colin: Definitely. >> You know, the look, WebAssembly sounds similar to promises you've heard before, right ones, run anywhere. The difference is, is that WebAssembly is not driven by any one particular vendor. So there's no one vendor that's trying to bring a plug in to every single device. WebAssembly was a recognition, much like Kubecon, the point that we started with around the diversity of thought ideas and representation of shared interest, of how do we have a platform that's polyglot? Many people can bring languages to it, and solutions that we can share and then build from there. And it is unlocking some of the most amazing and innovative experiences, both on the web backend servers and all the way to the edge. Because WebAssembly is a tiny little virtual machine that runs everywhere. Adobe's leadership is absolutely incredible with the things that they're doing with WebAssembly. They did this awesome blog post with the Google Chrome team that talked about other performance improvements that were brought into Chrome and other browsers, in order to enable that kind of experience. >> So I get the general concept of WebAssembly and it's one of those things that I have to ask the question, and I appreciate that Adobe uses it but without the community, I mean, I've dedicated some of my team's resources over the years to some really cool projects and products that just died on the buying cause there was no community around. >> Yeah. >> Who else uses WebAssembly? >> Yeah, I think so. We actually, inside the CNCF now, have an entire day devoted just to WebAssembly and as the co-chair of the CNCF Cloud Native WebAssembly Day, we really focus on bringing those case studies to the forefront. So some of the more interesting talks that we had here and at some of the precursor weekend conferences were from BMW, for example, they talked about how they were excited about not only WebAssembly, but a framework that they use on WebAssembly called WASM cloud, that lets them a flexibly scale machine learning models from their own edge, in their own vehicles through to their developer's workstations and even take that data onto their regular cloud Kubernetes and scale analysis and analytics. They invested and they just released a machine learning framework for one of the many great WebAssembly projects called WASM cloud, which is a CNCF project, a member project here in the CNCF. >> So how does that fit in overall landscape? >> So think of WebAssembly, like you think of HTML. It's a technology that gives you a lot of concept and to accelerate your journey on those technologies, people create frameworks. For example, if you were going to write a UI, you would not very likely start with an empty document you'd start with a react or view. And in a similar vein, if you were going to start a new microservice or backend application, project for WebAssembly, you might use WASM cloud or you might use ATMO or you might use a Spin. Those are three different types of projects. They all have their own different value props and their own different opinions that they bring to them. But the point is is that this is a quickly evolving space and it's going to dramatically change the type of experiences that we bring, not only to web browsers but to servers and edges everywhere. >> So Colin, you mentioned C+ >> Colin: Yeah. >> And other coding. Well , talk to me about the ramp up. >> Oh, well, so, yeah, so, C++ there was a lot of work done in scripting, at Adobe. Taking our C++ code and bringing it into the browser. A lot of new instructions, Cimdi, that were brought to make a really powerful experience, but what's new now is the server side aspect of things. So, just what kind of, what Liam was talking about. Now we can run this stuff in the data center. It's not just for people's browsers anymore. And then we can also bring it out to the edge too, which is a new space that we can take advantage of really almost only through WebAssembly and some JavaScript. >> So wait, let me get this kind of under hook. Before, if I wanted a rich experience, I have to run a heavy VDI instance on the back end so that I'm basically getting remote desktop calls from a light thin client back to my backend server, that's heavy. >> That is heavy. >> WebAssembly is alternative to that? >> Yes, absolutely. Think of WebAssembly as a tiny little CPU that is a shim, that we can take the places that don't even traditionally have a concept of a processor. So inside the browser, for example, traditionally cloud native development on the backend has been dominated by things like Docker and Docker is a wonderful technology and Container is a wonderful technology that really drove the last 10 years of cloud native with the great lift and shift, if you will. Take our existing applications, package them up in this virtual desktop and then deliver them. But to deliver the next 10 years of experiences, we need solutions that let us have portability first and a security model that's portable across the entire landscape. So this isn't just browsers and servers on the back end, WebAssembly creates an a layer of equality from truly edge to edge. It's can transcend different CPUs, different operating systems. So where containers have this lower bound off you need to be running Linux and you need to be in a place where you're going to bring Kubernetes. WebAssembly is so small and portable, it transcends that lower bound. It can go to places like iOS. It can go to places like web browsers. It can even go to teeny tiny CPUs that don't even traditionally have a full on operating systems inside them. >> Colin: Right, places where you can't run Docker. >> So as I think about that, and I'm a developer and I'm running my back end and I'm running whatever web stack that I want, how does this work? Like, how do I get started with it? >> Well, there's some great stuff Liam already mentioned with WASM cloud and Frmion Spin. Microsoft is heavily involved now on providing cloud products that can take advantage of WebAssembly. So we've got a lot of languages, new languages coming in.net and Ruby, Rust is a big one, TinyGo, really just a lot of places to get involved. A lot of places to get started. >> At the highest level Finton Ryan, when he was at Gartner, he's a really well known analyst. He wrote something profound a few years ago. He said, WebAssembly is the one technology, You don't need a strategy to adopt. >> Mm. >> Because frankly you're already using it because there's so many wonderful experiences and products that are out there, like what Adobe's doing. This virtual CPU is not just a platform to run on cloud native and to build applications towards the edge. You can embed this virtual CPU inside of applications. So cases where you would want to allow your users to customize an application or to extend functionality. Give you an example, Shopify is a big believer in WebAssembly because while their platform covers, two standard deviations or 80% of the use cases, they have a wonderful marketplace of extensions that folks can use in order to customize the checkout process or apply specialized discounts or integrate into a partner ecosystem. So when you think about the requirements for those scenarios, they line up to the same requirements that we have in browsers and servers. I want real security. I want portability. I want reuseability. And ultimately I want to save money and go faster. So organizations everywhere should take a few minutes and do a heads up and think about one, where WebAssembly is already in their environment, inside of places like Envoy and Istio, some of the most popular projects in the cloud native ecosystem, outside of Kubernetes. And they should perhaps consider studying, how WebAssembly can help them to transform the experiences that they're delivering for their customers. This may be the last day of Kubecon, but this is certainly not the last time we're going to be talking about WebAssembly, I'll tell you that. >> So, last question, we've talked a lot about how to get started. How about day two, when I'm thinking about performance troubleshooting and ensuring clients have a great experience what's day two operation like? >> That's a really good question. So there's, I know that each language kind of brings their own tool chain and their, and you know we saw some great stuff on, on WASM day. You can look it up around the .net experience for debugging, They really tried to make it as seamless and the same as it was for native code. So, yeah, I think that's a great question. I mean, right now it's still trying to figure out server side, It's still, as Liam said, a shifting landscape. But we've got some great stuff out here already >> You know, I'd make an even bigger call than that. When I think about the last 20 years as computing has evolved, we've continued to move through these epics of tech that were dominated by a key abstraction. Think about the rise of virtualization with VMware and the transition to the cloud. The rise of containerization, we virtualized to OS. The rise of Kubernetes and CNCF itself, where we virtualize cloud APIs. I firmly believe that WebAssembly represents the next epic of tech. So I think that day two WebAssembly continues to become one of the dominant themes, not only across cloud native but across the entire technical computing landscape. And it represents a fundamentally gigantic opportunity for organizations such as Adobe, that are always market leading and at the cutting edge of tech, to bring new experiences to their customers and for vendors to bring new platforms and tools to companies that want to execute on that opportunity. >> Colin Murphy, Liam Randall, I want to thank you for joining the Cube at Kubecon Cloudnativecon 2022. I'm now having a JavaScript based app that I want to re-look at, and maybe re-platforming that to WebAssembly. It's some lot of good stuff there. We want to thank you for tuning in to our coverage of Kubecon Cloudnativecon. And we want to thank the organization for hosting us, here from Valencia, Spain. I'm Keith Townsend, and you're watching the Cube, the leader in high tech coverage. (bright music)

(joyful music) >> According to storage guru, Fred Moore, 60 to 80% of all stored data is archival data, leading to the need for what he calls the infinite archive. And in this world, digital customers require inexpensive access to archive data that's protected, it's got to be available, durable, it's got to be able to scale and also has to support the governance and compliance edicts of the organizations. Welcome to this next session of the AWS Storage Day with theCUBE. I'm your host, Dave Vellante. We're going to dig into the topic of archiving and digitally preserving data and we're joined by Joe Fitzgerald, who's the general manager of Amazon S3 Glacier. Joe, welcome to the program. >> Hey, Dave. It's great to be here. Thanks for having me. >> Okay, I remember early last decade, AWS announced Glacier, it got a lot of buzz. And since then you've evolved your archival storage services, strategy and offerings. First question: why should customers archive their data in AWS? >> That's a great question. I think Amazon S3 Glacier is a great place for customers to archive data. And I think the preface that you gave, I think, covers a lot of the reasons why customers are looking to archive data on the cloud. We're finding a lot of customers have a lot of data. And if you think about it, most of the world's data is cold by nature. It's not data that you're accessing all the time. So if you don't have an archival story as part of your data strategy, I think you're missing out on a cost savings opportunity. So one of the reasons we're finding customers looking to move data to S3 Glacier is because of cost. With Glacier Deep Archive, we have an industry-leading price point of a dollar per terabyte per month. I think another reason that we're finding customers wanting to move data to the cloud, into Glacier, is because of the security, durability and availability that we offer. Instead of having to worry about some of the most valuable data that your company has and worrying about that being in a tape library that doesn't get access very often on premises or offsite in a data locker that you don't really have access to, and we offer the best story in terms of the durability and security and availability of that data. And I think the other reason that we're finding customers wanting to move data to S3 Glacier is just the flexibility and agility that having your data in the cloud offers. A lot of the data, you can put it in Deep Archive and have it sit there and not access it but then if you have some sort of event that you want to access that data, you can get that back very quickly, as well as put the power the rest of the AWS offerings, whether that's our compute offerings, our machine learning and analytics offerings. So you just have unmatched flexibility, cost, and durability of your data. So we're finding a lot of customers looking to optimize their business by moving their archive data to the cloud. >> So let's stick on the business case for a minute. You nailed the cost side of the equation. Clearly, you mentioned several of the benefits, but for those customers that may not be leaning in to archive data, how do they think about the cost-benefit analysis when you talk to customers, what are you hearing from them, the ones that have used your services to archive data, what are the benefits that they're getting? >> It's a great question. I think we find customers fall into a few different camps and use cases and one thing that we recommend as a starting point is if you have a lot of data and you're not really familiar with your access patterns, like what part of the data is warm, what part is cold? We offer a storage class called S3 intelligent tiering. And what that storage class does is it optimizes the placement of that data and the cost of that data based on the access patterns. So if it's data that is accessed very regularly, it'll sit in one of the warmer storage tiers. If it's accessed infrequently, it'll move down into the infrequent access tier or to the archive or deep archive access tiers. So it's a great way for customers who are struggling to think about archive, because it's not something that every customer thinks about everyday, to get automatic cost savings. And then for customers who have either larger amounts of data or better understand the access patterns, like some of the industries that we're seeing, like autonomous vehicles, they might generate tons of training data from running the autonomous vehicles. And they know, okay, this data, we're not actively using it, but it's also very valuable. They don't want to throw it away. They'll choose to move that data into an archive tier. So a lot of it comes down to the degree to which you're able to easily understand the access pattern of the data to figure out which storage class and which archive storage class maps best to your use case. >> I get it, so if you add that deep archive tier, you automagically get the benefit, thanks to the intelligent tiering. What about industry patterns? I mean, obviously, highly regulated industries have compliance issues and you have data intensive industries are going to potentially have this because they want to lower costs, but do you see any patterns emerging? I mean every industry needs this, but are there any industries that are getting more bang from the buck that you see? >> I would say every industry definitely has archived data. So we have customers in every vertical segment. I think some of the ones that we're definitely seeing more activity from would be media and entertainment customers are a great fit for archive. If you think about even digital native studios who are generating very high definition footage and they take all that footage, they produce the movie, but they have a lot of original data that they might reuse, that you remaster, director's cut, to use later, they're finding archive is a great fit for that. So they're able to use S3 Standard for their active production, but when they're done finishing a movie or production, they can save all that valuable original footage and move it in deep archive and just know that it's going to be there whenever they might need to use it. Another use case, we're staying in media, entertainment, similar to that and this is a good use case for S3 Glacier is if you have sports footage from like the '60s and then there's some sort of breaking news event about some athlete that you want to be able to cut a shot for the six o'clock news, with S3 Glacier and expedited retrievals, you're able to get that data back in a couple of minutes and that way you have the benefit of very low cost archive storage, but being able to get the immediacy of having some of that data back when you need it. So that's just some of the examples that we're seeing in terms of how customers are using archives. >> I love that example because the prevailing wisdom is the older data is, the less valuable it is, but if you can pull a clip up of Babe Ruth at the right time, even though it's a little grainy, wow, that's huge value for the-- >> We're finding like lots of customers that they've retained this data, they haven't known why they're going to need it, they just intrinsically know this data is really valuable, we might need it. And then as they look for new opportunities and they're like, hey, we're going to remaster this. And they've gone through a lot of digital transformation. So we're seeing companies have decades of original material moving into the cloud. We're also seeing fairly nascent startups who are also just generating lots of archive data. So it's just one of the many use cases we see from our customers love Glacier. >> Data hoarders heaven. I love it. Okay, Joe. Let's wrap up. Give us your closing thoughts, how you see the future of this business, where you want to take your business for your customers. >> Mostly, we just really want to help customers optimize their storage and realize the potential of their data. So for a lot of customers, that really just comes down to knowing that S3 glacier is a great and trusted place for their data, and that they're able to meet their compliance and regulatory needs, but for a lot of other customers, they're looking to transform their business and reinvent themselves as they move to the cloud. And I think we're just excited by a lot of emerging use cases and being able to find that flexibility of having very low cost storage, as well as being able to get access to that data and hook it up into the other AWS services and really realize the potential of their data. >> 100%, we've seen it over the decades, cost drops and use cases explode. Thank you, Joe. Thanks so much for coming on theCUBE. >> Thanks a lot, Dave. It's been great being here. >> All right, keep it right there for more storage and data insights. You're watching AWS Storage Day on theCUBE. (tranquil music)

(joyful music) >> According to storage guru, Fred Moore, 60 to 80% of all stored data is archival data, leading to the need for what he calls the infinite archive. And in this world, digital customers require inexpensive access to archive data that's protected, it's got to be available, durable, it's got to be able to scale and also has to support the governance and compliance edicts of the organizations. Welcome to this next session of the AWS Storage Day with theCUBE. I'm your host, Dave Vellante. We're going to dig into the topic of archiving and digitally preserving data and we're joined by Joe Fitzgerald, who's the general manager of Amazon S3 Glacier. Joe, welcome to the program. >> Hey, Dave. It's great to be here. Thanks for having me. >> Okay, I remember early last decade, AWS announced Glacier, it got a lot of buzz. And since then you've evolved your archival storage services, strategy and offerings. First question: why should customers archive their data in AWS? >> That's a great question. I think Amazon S3 Glacier is a great place for customers to archive data. And I think the preface that you gave, I think, covers a lot of the reasons why customers are looking to archive data on the cloud. We're finding a lot of customers have a lot of data. And if you think about it, most of the world's data is cold by nature. It's not data that you're accessing all the time. So if you don't have an archival story as part of your data strategy, I think you're missing out on a cost savings opportunity. So one of the reasons we're finding customers looking to move data to S3 Glacier is because of cost. With Glacier Deep Archive, we have an industry-leading price point of a dollar per terabyte per month. I think another reason that we're finding customers wanting to move data to the cloud, into Glacier, is because of the security, durability and availability that we offer. Instead of having to worry about some of the most valuable data that your company has and worrying about that being in a tape library that doesn't get access very often on premises or offsite in a data locker that you don't really have access to, and we offer the best story in terms of the durability and security and availability of that data. And I think the other reason that we're finding customers wanting to move data to S3 Glacier is just the flexibility and agility that having your data in the cloud offers. A lot of the data, you can put it in Deep Archive and have it sit there and not access it but then if you have some sort of event that you want to access that data, you can get that back very quickly, as well as put the power the rest of the AWS offerings, whether that's our compute offerings, our machine learning and analytics offerings. So you just have unmatched flexibility, cost, and durability of your data. So we're finding a lot of customers looking to optimize their business by moving their archive data to the cloud. >> So let's stick on the business case for a minute. You nailed the cost side of the equation. Clearly, you mentioned several of the benefits, but for those customers that may not be leaning in to archive data, how do they think about the cost-benefit analysis when you talk to customers, what are you hearing from them, the ones that have used your services to archive data, what are the benefits that they're getting? >> It's a great question. I think we find customers fall into a few different camps and use cases and one thing that we recommend as a starting point is if you have a lot of data and you're not really familiar with your access patterns, like what part of the data is warm, what part is cold? We offer a storage class called S3 intelligent tiering. And what that storage class does is it optimizes the placement of that data and the cost of that data based on the access patterns. So if it's data that is accessed very regularly, it'll sit in one of the warmer storage tiers. If it's accessed infrequently, it'll move down into the infrequent access tier or to the archive or deep archive access tiers. So it's a great way for customers who are struggling to think about archive, because it's not something that every customer thinks about everyday, to get automatic cost savings. And then for customers who have either larger amounts of data or better understand the access patterns, like some of the industries that we're seeing, like autonomous vehicles, they might generate tons of training data from running the autonomous vehicles. And they know, okay, this data, we're not actively using it, but it's also very valuable. They don't want to throw it away. They'll choose to move that data into an archive tier. So a lot of it comes down to the degree to which you're able to easily understand the access pattern of the data to figure out which storage class and which archive storage class maps best to your use case. >> I get it, so if you add that deep archive tier, you automagically get the benefit, thanks to the intelligent tiering. What about industry patterns? I mean, obviously, highly regulated industries have compliance issues and you have data intensive industries are going to potentially have this because they want to lower costs, but do you see any patterns emerging? I mean every industry needs this, but are there any industries that are getting more bang from the buck that you see? >> I would say every industry definitely has archived data. So we have customers in every vertical segment. I think some of the ones that we're definitely seeing more activity from would be media and entertainment customers are a great fit for archive. If you think about even digital native studios who are generating very high definition footage and they take all that footage, they produce the movie, but they have a lot of original data that they might reuse, that you remaster, director's cut, to use later, they're finding archive is a great fit for that. So they're able to use S3 Standard for their active production, but when they're done finishing a movie or production, they can save all that valuable original footage and move it in deep archive and just know that it's going to be there whenever they might need to use it. Another use case, we're staying in media, entertainment, similar to that and this is a good use case for S3 Glacier is if you have sports footage from like the '60s and then there's some sort of breaking news event about some athlete that you want to be able to cut a shot for the six o'clock news, with S3 Glacier and expedited retrievals, you're able to get that data back in a couple of minutes and that way you have the benefit of very low cost archive storage, but being able to get the immediacy of having some of that data back when you need it. So that's just some of the examples that we're seeing in terms of how customers are using archives. >> I love that example because the prevailing wisdom is the older data is, the less valuable it is, but if you can pull a clip up of Babe Ruth at the right time, even though it's a little grainy, wow, that's huge value for the-- >> We're finding like lots of customers that they've retained this data, they haven't known why they're going to need it, they just intrinsically know this data is really valuable, we might need it. And then as they look for new opportunities and they're like, hey, we're going to remaster this. And they've gone through a lot of digital transformation. So we're seeing companies have decades of original material moving into the cloud. We're also seeing fairly nascent startups who are also just generating lots of archive data. So it's just one of the many use cases we see from our customers love Glacier. >> Data hoarders heaven. I love it. Okay, Joe. Let's wrap up. Give us your closing thoughts, how you see the future of this business, where you want to take your business for your customers. >> Mostly, we just really want to help customers optimize their storage and realize the potential of their data. So for a lot of customers, that really just comes down to knowing that S3 glacier is a great and trusted place for their data, and that they're able to meet their compliance and regulatory needs, but for a lot of other customers, they're looking to transform their business and reinvent themselves as they move to the cloud. And I think we're just excited by a lot of emerging use cases and being able to find that flexibility of having very low cost storage, as well as being able to get access to that data and hook it up into the other AWS services and really realize the potential of their data. >> 100%, we've seen it over the decades, cost drops and use cases explode. Thank you, Joe. Thanks so much for coming on theCUBE. >> Thanks a lot, Dave. It's been great being here. >> All right, keep it right there for more storage and data insights. You're watching AWS Storage Day on theCUBE. (tranquil music)

>>Mhm Hello and welcome to the cubes coverage of AWS amazon web services, Global public Sector partner awards program. I'm john for your host of the cube here we're gonna talk about the best covid solution to great guests. Benham or with healthcare and life sciences lead at palantir Ben welcome to the cube SAm Michaels, Director of automation and compound management and Cats. National Center for advancing translational sciences and Cats. Part of the NIH National sort of health Gentlemen, thank you for coming on and and congratulations on the best covid solution. >>Thank you so much john >>so I gotta, I gotta ask you the best solution is when can I get the vaccine? How fast how long it's gonna last but I really appreciate you guys coming on. I >>hope you're vaccinated. I would say john that's outside of our hands. I would say if you've not got vaccinated, go get vaccinated right now, have someone stab you in the arm, you know, do not wait and and go for it. That's not on us. But you got that >>opportunity that we have that done. I got to get on a plane and all kinds of hoops to jump through. We need a better solution anyway. You guys have a great technical so I wanna I wanna dig in all seriousness aside getting inside. Um you guys have put together a killer solution that really requires a lot of data can let's step back and and talk about first. What was the solution that won the award? You guys have a quick second set the table for what we're talking about. Then we'll start with you. >>So the national covered cohort collaborative is a secure data enclave putting together the HR records from more than 60 different academic medical centers across the country and they're making it available to researchers to, you know, ask many and varied questions to try and understand this disease better. >>See and take us through the challenges here. What was going on? What was the hard problem? I'll see everyone had a situation with Covid where people broke through and cloud as he drove it amazon is part of the awards, but you guys are solving something. What was the problem statement that you guys are going after? What happened? >>I I think the problem statement is essentially that, you know, the nation has the electronic health records, but it's very fragmented, right. You know, it's been is highlighted is there's there's multiple systems around the country, you know, thousands of folks that have E H. R. S. But there is no way from a research perspective to actually have access in any unified location. And so really what we were looking for is how can we essentially provide a centralized location to study electronic health records. But in a Federated sense because we recognize that the data exist in other locations and so we had to figure out for a vast quantity of data, how can we get data from those 60 sites, 60 plus that Ben is referencing from their respective locations and then into one central repository, but also in a common format. Because that's another huge aspect of the technical challenge was there's multiple formats for electronic health records, there's different standards, there's different versions. And how do you actually have all of this data harmonised into something which is usable again for research? >>Just so many things that are jumping in my head right now, I want to unpack one at the time Covid hit the scramble and the imperative for getting answers quickly was huge. So it's a data problem at a massive scale public health impact. Again, we were talking before we came on camera, public health records are dirty, they're not clean. A lot of things are weird. I mean, just just massive amount of weird problems. How did you guys pull together take me through how this gets done? What what happened? Take us through the the steps He just got together and said, let's do this. How does it all happen? >>Yeah, it's a great and so john, I would say so. Part of this started actually several years ago. I explain this when people talk about in three C is that and Cats has actually established what we like to call, We support a program which is called the Clinical translation Science Award program is the largest single grant program in all of NIH. And it constitutes the bulk of the Cats budget. So this is extra metal grants which goes all over the country. And we wanted this group to essentially have a common research environment. So we try to create what we call the secure scientific collaborative platforms. Another example of this is when we call the rare disease clinical research network, which again is a consortium of 20 different sites around the nation. And so really we started working this several years ago that if we want to Build an environment that's collaborative for researchers around the country around the world, the natural place to do that is really with a cloud first strategy and we recognize this as and cats were about 600 people now. But if you look at the size of our actual research community with our grantees were in the thousands. And so from the perspective that we took several years ago was we have to really take a step back. And if we want to have a comprehensive and cohesive package or solution to treat this is really a mid sized business, you know, and so that means we have to treat this as a cloud based enterprise. And so in cats several years ago had really gone on this strategy to bring in different commercial partners, of which one of them is Palin tear. It actually started with our intramural research program and obviously very heavy cloud use with AWS. We use your we use google workspace, essentially use different cloud tools to enable our collaborative researchers. The next step is we also had a project. If we want to have an environment, we have to have access. And this is something that we took early steps on years prior that there is no good building environment if people can't get in the front door. So we invested heavily and create an application which we call our Federated authentication system. We call it unified and cats off. So we call it, you know, for short and and this is the open source in house project that we built it and cats. And we wanted to actually use this for all sorts of implementation, acting as the front door to this collaborative environment being one of them. And then also by by really this this this interest in electronic health records that had existed prior to the Covid pandemic. And so we've done some prior work via mixture of internal investments in grants with collaborative partners to really look at what it would take to harmonize this data at scale. And so like you mentioned, Covid hit it. Hit really hard. Everyone was scrambling for answers. And I think we had a bit of these pieces um, in play. And then that's I think when we turned to ban and the team at volunteer and we said we have these components, we have these pieces what we really need. Something independent that we can stand up quickly to really address some of these problems. One of the biggest one being that data ingestion and the harmonization step. And so I can let Ben really speak to that one. >>Yeah. Ben Library because you're solving a lot of collaboration problems, not just the technical problem but ingestion and harmonization ingestion. Most people can understand is that the data warehousing or in the database know that what that means? Take us through harmonization because not to put a little bit of shade on this, but most people think about, you know, these kinds of research or non profits as a slow moving, you know, standing stuff up sandwich saying it takes time you break it down. By the time you you didn't think things are over. This was agile. So take us through what made it an agile because that's not normal. I mean that's not what you see normally. It's like, hey we'll see you next year. We stand that up. Yeah. At the data center. >>Yeah, I mean so as as Sam described this sort of the question of data on interoperability is a really essential problem for working with this kind of data. And I think, you know, we have data coming from more than 60 different sites and one of the reasons were able to move quickly was because rather than saying oh well you have to provide the data in a certain format, a certain standard. Um and three C. was able to say actually just give us the data how you have it in whatever format is easiest for you and we will take care of that process of actually transforming it into a single standard data model, converting all of the medical vocabularies, doing all of the data quality assessment that's needed to ensure that data is actually ready for research and that was very much a collaborative endeavor. It was run out of a team based at johns Hopkins University, but in collaboration with a broad range of researchers who are all adding their expertise and what we were able to do was to provide the sort of the technical infrastructure for taking the transformation pipelines that are being developed, that the actual logic and the code and developing these very robust kind of centralist templates for that. Um, that could be deployed just like software is deployed, have changed management, have upgrades and downgrades and version control and change logs so that we can roll that out across a large number of sites in a very robust way very quickly. So that's sort of that, that that's one aspect of it. And then there was a bunch of really interesting challenges along the way that again, a very broad collaborative team of researchers worked on and an example of that would be unit harmonization and inference. So really simple things like when a lab result arrives, we talked about data quality, um, you were expected to have a unit right? Like if you're reporting somebody's weight, you probably want to know if it's in kilograms or pounds, but we found that a very significant proportion of the time the unit was actually missing in the HR record. And so unless you can actually get that back, that becomes useless. And so an approach was developed because we had data across 60 or more different sites, you have a large number of lab tests that do have the correct units and you can look at the data distributions and decide how likely is it that this missing unit is actually kilograms or pounds and save a huge portion of these labs. So that's just an example of something that has enabled research to happen that would not otherwise have been able >>just not to dig in and rat hole on that one point. But what time saving do you think that saves? I mean, I can imagine it's on the data cleaning side. That's just a massive time savings just in for Okay. Based on the data sampling, this is kilograms or pounds. >>Exactly. So we're talking there's more than 3.5 billion lab records in this data base now. So if you were trying to do this manually, I mean, it would take, it would take to thousands of years, you know, it just wouldn't be a black, it would >>be a black hole in the dataset, essentially because there's no way it would get done. Ok. Ok. Sam take me through like from a research standpoint, this normalization, harmonization the process. What does that enable for the, for the research and who decides what's the standard format? So, because again, I'm just in my mind thinking how hard this is. And then what was the, what was decided? Was it just on the base records what standards were happening? What's the impact of researchers >>now? It's a great quite well, a couple things I'll say. And Ben has touched on this is the other real core piece of N three C is the community, right? You know, And so I think there's a couple of things you mentioned with this, johN is the way we execute this is, it was very nimble, it was very agile and there's something to be said on that piece from a procurement perspective, the government had many covid authorities that were granted to make very fast decisions to get things procured quickly. And we were able to turn this around with our acquisition shop, which we would otherwise, you know, be dead in the water like you said, wait a year ago through a normal acquisition process, which can take time, but that's only one half the other half. And really, you're touching on this and Ben is touching on this is when he mentions the research as we have this entire courts entire, you know, research community numbering in the thousands from a volunteer perspective. I think it's really fascinating. This is a really a great example to me of this public private partnership between the companies we use, but also the academic participants that are actually make up the community. Um again, who the amount of time they have dedicated on this is just incredible. So, so really, what's also been established with this is core governance. And so, you know, you think from assistance perspective is, you know, the Palin tear this environment, the N three C environment belongs to the government, but the N 33 the entire actually, you know, program, I would say, belongs to the community. We have co governance on this. So who decides really is just a mixture between the folks on End Cats, but not just end cast as folks at End Cats, folks that, you know, and I proper, but also folks and other government agencies, but also the, the academic communities and entire these mixed governance teams that actually set the stage for all of this. And again, you know, who's gonna decide the standard, We decide we're gonna do this in Oman 5.3 point one um is the standard we're going to utilize. And then once the data is there, this is what gets exciting is then they have the different domain teams where they can ask different research questions depending upon what has interest scientifically to them. Um and so really, you know, we viewed this from the government's perspective is how do we build again the secure platform where we can enable the research, but we don't really want to dictate the research. I mean, the one criteria we did put your research has to be covid focused because very clearly in response to covid, so you have to have a Covid focus and then we have data use agreements, data use request. You know, we have entire governance committees that decide is this research in scope, but we don't want to dictate the research types that the domain teams are bringing to the table. >>And I think the National Institutes of Health, you think about just that their mission is to serve the public health. And I think this is a great example of when you enable data to be surfaced and available that you can really allow people to be empowered and not to use the cliche citizen analysts. But in a way this is what the community is doing. You're doing research and allowing people from volunteers to academics to students to just be part of it. That is citizen analysis that you got citizen journalism. You've got citizen and uh, research, you've got a lot of democratization happening here. Is that part of it was a result of >>this? Uh, it's both. It's a great question. I think it's both. And it's it's really by design because again, we want to enable and there's a couple of things that I really, you know, we we clamor with at end cats. I think NIH is going with this direction to is we believe firmly in open science, we believe firmly in open standards and how we can actually enable these standards to promote this open science because it's actually nontrivial. We've had, you know, the citizen scientists actually on the tricky problem from a governance perspective or we have the case where we actually had to have students that wanted access to the environment. Well, we actually had to have someone because, you know, they have to have an institution that they come in with, but we've actually across some of those bridges to actually get students and researchers into this environment very much by design, but also the spirit which was held enabled by the community, which, again, so I think they go they go hand in hand. I planned for >>open science as a huge wave, I'm a big fan, I think that's got a lot of headroom because open source, what that's done to software, the software industry, it's amazing. And I think your Federated idea comes in here and Ben if you guys can just talk through the Federated, because I think that might enable and remove some of the structural blockers that might be out there in terms of, oh, you gotta be affiliate with this or that our friends got to invite you, but then you got privacy access and this Federated ID not an easy thing, it's easy to say. But how do you tie that together? Because you want to enable frictionless ability to come in and contribute same time you want to have some policies around who's in and who's not. >>Yes, totally, I mean so Sam sort of already described the the UNa system which is the authentication system that encounters has developed. And obviously you know from our perspective, you know we integrate with that is using all of the standard kind of authentication protocols and it's very easy to integrate that into the family platform um and make it so that we can authenticate people correctly. But then if you go beyond authentication you also then to actually you need to have the access controls in place to say yes I know who this person is, but now what should they actually be able to see? Um And I think one of the really great things in Free C has done is to be very rigorous about that. They have their governance rules that says you should be using the data for a certain purpose. You must go through a procedure so that the access committee approves that purpose. And then we need to make sure that you're actually doing the work that you said you were going to. And so before you can get your data back out of the system where your results out, you actually have to prove that those results are in line with the original stated purpose and the infrastructure around that and having the access controls and the governance processes, all working together in a seamless way so that it doesn't, as you say, increase the friction on the researcher and they can get access to the data for that appropriate purpose. That was a big component of what we've been building out with them three C. Absolutely. >>And really in line john with what NIH is doing with the research, all service, they call this raz. And I think things that we believe in their standards that were starting to follow and work with them closely. Multifactor authentication because of the point Ben is making and you raised as well, you know, one you need to authenticate, okay. This you are who you say you are. And and we're recognizing that and you're, you know, the author and peace within the authors. E what do you authorized to see? What do you have authorization to? And they go hand in hand and again, non trivial problems. And especially, you know, when we basis typically a lot of what we're using is is we'll do direct integrations with our package. We using commons for Federated access were also even using login dot gov. Um, you know, again because we need to make sure that people had a means, you know, and login dot gov is essentially a runoff right? If they don't have, you know an organization which we have in common or a Federated access to generate a login dot gov account but they still are whole, you know beholden to the multi factor authentication step and then they still have to get the same authorizations because we really do believe access to these environment seamlessly is absolutely critical, you know, who are users are but again not make it restrictive and not make it this this friction filled process. That's very that's very >>different. I mean you think about nontrivial, totally agree with you and if you think about like if you were in a classic enterprise, I thought about an I. T. Problem like bring your own device to work and that's basically what the whole world does these days. So like you're thinking about access, you don't know who's coming in, you don't know where they're coming in from, um when the churn is so high, you don't know, I mean all this is happening, right? So you have to be prepared two Provisions and provide resource to a very lightweight access edge. >>That's right. And that's why it gets back to what we mentioned is we were taking a step back and thinking about this problem, you know, an M three C became the use case was this is an enterprise I. T. Problem. Right. You know, we have users from around the world that want to access this environment and again we try to hit a really difficult mark, which is secure but collaborative, Right? That's that's not easy, you know? But but again, the only place this environment could take place isn't a cloud based environment, right? Let's be real. You know, 10 years ago. Forget it. You know, Again, maybe it would have been difficult, but now it's just incredible how much they advanced that these real virtual research organizations can start to exist and they become the real partnerships. >>Well, I want to Well, that's a great point. I want to highlight and call out because I've done a lot of these interviews with awards programs over the years and certainly in public sector and open source over many, many years. One of the things open source allows us the code re use and also when you start getting in these situations where, okay, you have a crisis covid other things happen, nonprofits go, that's the same thing. They, they lose their funding and all the code disappears. Saying with these covid when it becomes over, you don't want to lose the momentum. So this whole idea of re use this platform is aged deplatforming of and re factoring if you will, these are two concepts with a cloud enables SAM, I'd love to get your thoughts on this because it doesn't go away when Covid's >>over, research still >>continues. So this whole idea of re platform NG and then re factoring is very much a new concept versus the old days of okay, projects over, move on to the next one. >>No, you're absolutely right. And I think what first drove us is we're taking a step back and and cats, you know, how do we ensure that sustainability? Right, Because my background is actually engineering. So I think about, you know, you want to build things to last and what you just described, johN is that, you know, that, that funding, it peaks, it goes up and then it wanes away and it goes and what you're left with essentially is nothing, you know, it's okay you did this investment in a body of work and it goes away. And really, I think what we're really building are these sustainable platforms that we will actually grow and evolve based upon the research needs over time. And I think that was really a huge investment that both, you know, again and and Cats is made. But NIH is going in a very similar direction. There's a substantial investment, um, you know, made in these, these these these really impressive environments. How do we make sure the sustainable for the long term? You know, again, we just went through this with Covid, but what's gonna come next? You know, one of the research questions that we need to answer, but also open source is an incredibly important piece of this. I think Ben can speak this in a second, all the harmonization work, all that effort, you know, essentially this massive, complex GTL process Is in the N three Seagate hub. So we believe, you know, completely and the open source model a little bit of a flavor on it too though, because, you know, again, back to the sustainability, john, I believe, you know, there's a room for this, this marriage between commercial platforms and open source software and we need both. You know, as we're strong proponents of N cats are both, but especially with sustainability, especially I think Enterprise I. T. You know, you have to have professional grade products that was part of, I would say an experiment we ran out and cast our thought was we can fund academic groups and we can have them do open source projects and you'll get some decent results. But I think the nature of it and the nature of these environments become so complex. The experiment we're taking is we're going to provide commercial grade tools For the academic community and the researchers and let them use them and see how they can be enabled and actually focus on research questions. And I think, you know, N3C, which we've been very successful with that model while still really adhering to the open source spirit and >>principles as an amazing story, congratulated, you know what? That's so awesome because that's the future. And I think you're onto something huge. Great point, Ben, you want to chime in on this whole sustainability because the public private partnership idea is the now the new model innovation formula is about open and collaborative. What's your thoughts? >>Absolutely. And I mean, we uh, volunteer have been huge proponents of reproducibility and openness, um in analyses and in science. And so everything done within the family platform is done in open source languages like python and R. And sequel, um and is exposed via open A. P. I. S and through get repository. So that as SaM says, we've we've pushed all of that E. T. L. Code that was developed within the platform out to the cats get hub. Um and the analysis code itself being written in those various different languages can also sort of easily be pulled out um and made available for other researchers in the future. And I think what we've also seen is that within the data enclave there's been an enormous amount of re use across the different research projects. And so actually having that security in place and making it secure so that people can actually start to share with each other securely as well. And and and be very clear that although I'm sharing this, it's still within the range of the government's requirements has meant that the, the research has really been accelerated because people have been able to build and stand on the shoulders of what earlier projects have done. >>Okay. Ben. Great stuff. 1000 researchers. Open source code and get a job. Where do I sign up? I want to get involved. This is amazing. Like it sounds like a great party. >>We'll send you a link if you do a search on on N three C, you know, do do a search on that and you'll actually will come up with a website hosted by the academic side and I'll show you all the information of how you can actually connect and john you're welcome to come in. Billion by all means >>billions of rows of data being solved. Great tech he's working on again. This is a great example of large scale the modern era of solving problems is here. It's out in the open, Open Science. Sam. Congratulations on your great success. Ben Award winners. You guys doing a great job. Great story. Thanks for sharing here with us in the queue. Appreciate it. >>Thank you, john. >>Thanks for having us. >>Okay. It is. Global public sector partner rewards best Covid solution palantir and and cats. Great solution. Great story. I'm john Kerry with the cube. Thanks for watching. Mm mm. >>Mhm

>>Hi, I'm Frank's Luqman CEO of Snowflake. And welcome to the Snowflake Data Cloud Summit. I'd like to take the next few minutes to introduce you to >>the data cloud on why it matters to the modern enterprise. As an industry, we have struggled to mobilize our data, meaning that has been hard to put data into service of our enterprises. We're not living in a data economy and for most data central how we run our lives, our businesses and our institutions, every single interaction we have now, whether it's in social media, e commerce or any other service, engagement generates critical data. You multiply this out with the number of actors and transactions. The volume is overwhelming, growing in leaps and bounds every day. There was a time when data operations focused mostly on running reports and populating dashboards to inform people in the enterprise of what had happened on what was going on. And we still do a ton of that. But the emphasis is shifting to data driving operations from just data informing people. There is such a thing as the time value off data meaning that the faster data becomes available, the more impactful and valuable it ISS. As data ages, it loses much of its actionable value. Digital transformation is an overused term in our industry, but the snowflake it means the end to end automation of business processes, from selling to transacting to supporting to servicing customers. Digital processes are entirely disinter mediated in terms of people. Involvement in are driven into end by data. Of course, many businesses have both physical and digital processes, and they are >>intertwined. Think of retail, logistics, delivery services and so on. So a data centric operating discipline is no longer optional data operations Air now the beating heart >>of the modern enterprise that requires a massively scalable data platform talented data engineering and data science teams to fully exploit the technology that now is becoming available. Enter snowflake. Chances are that, you know, snowflake as a >>world class execution platform for a diverse set of workloads. Among them data warehousing, data engineering, data, lakes, data, science, data applications and data sharing. Snowflake was architected from scratch for cloud scale computing. No legacy technology was carried forward in the process. Snowflake reimagined many aspects of data management data operations. The result was a cloud data platform with massive scale, blistering performance, superior economics and world class data governance. Snowflake innovated on a number of vectors that wants to deliver this breakthrough. First scale and performance. Snowflake is completely designed for cloud scale computing, both in terms of data volume, computational performance and concurrent workload. Execution snowflake features numerous distinct innovations in this category, but none stands up more than the multi cluster shared stories. Architectural Removing the control plane from the individual cluster led to a dramatically different approach that has yielded tremendous benefits. But our customers love about Snowflake is to spin up new workloads without limitation and provisioned these workloads with his little or as much compute as they see fit. No longer do they fear hidden capacity limits or encroaching on other workloads. Customers can have also scale storage and compute independent of each other, something that was not possible before second utility and elasticity. Not only can snowflake customer spin up much capacity for as long as they deem necessary. Three. Utility model in church, they only get charged for what they consumed by the machine. Second, highly granular measurement of utilization. Ah, lot of the economic impact of snowflake comes from the fact that customers no longer manage capacity. What they do now is focused on consumption. In snowflake is managing the capacity. Performance and economics now go hand in hand because faster is now also cheaper. Snowflake contracts with the public cloud vendors for capacity at considerable scale, which then translates to a good economic value at the retail level is, well, third ease of use and simplicity. Snowflake is a platform that scales from the smallest workloads to the largest data estates in the world. It is unusual in this offer industry to have a platform that controversy the entire spectrum of scale, a database technology snowflake is dramatically simple fire. To compare to previous generations, our founders were bent on making snowflake, a self managing platform that didn't require expert knowledge to run. The role of the Deba has evolved into snowflake world, more focused on data model insights and business value, not tuning and keeping the infrastructure up and running. This has expanded the marketplace to nearly any scale. No job too small or too large. Fourth, multi cloud and Cross Cloud or snowflake was first available on AWS. It now also runs very successfully on mark yourself. Azure and Google Cloud Snowflake is a cloud agnostic platform, meaning that it doesn't know what it's running on. Snowflake completely abstracts the underlying cloud platform. The user doesn't need to see or touch it directly and also does not receive a separate bill from the cloud vendor for capacity consumed by snowflake. Being multi cloud capable customers have a choice and also the flexibility to change over time snowflakes. Relationships with Amazon and Microsoft also allow customers to transact through their marketplaces and burned down their cloud commit with their snowflakes. Spend Snowflake is also capable of replicating across cloud regions and cloud platforms. It's not unusual to see >>the same snowflake data on more than one public cloud at the time. Also, for disaster recovery purposes, it is desirable to have access to snowflake on a completely different public cloud >>platform. Fifth, data Security and privacy, security and privacy are commonly grouped under the moniker of data governance. As a highly managed cloud data platform, snowflake designed and deploys a comprehensive and coherent security model. While privacy requirements are newer and still emerging in many areas, snowflake as a platform is evolving to help customers steer clear from costly violations. Our data sharing model has already enabled many customers to exchange data without surrendering custody of data. Key privacy concerns There's no doubt that the strong governance and compliance framework is critical to extracting you analytical value of data directly following the session. Police Stay tuned to hear from Anita Lynch at Disney Streaming services about how >>to date a cloud enables data governance at Disney. The world beat a >>path to our door snowflake unleashed to move from UN promised data centers to the public cloud platforms, notably AWS, Azure and Google Cloud. Snowflake now has thousands of enterprise customers averaging over 500 million queries >>today across all customer accounts, and it's one of the fastest growing enterprise software companies in a generation. Our recent listing on the New York Stock Exchange was built is the largest software AIPO in history. But the data cloth conversation is bigger. There is another frontier workload. Execution is a huge part of it, but it's not the entire story. There is another elephant in the room, and that is that The world's data is incredibly fragmented in siloed, across clouds of old sorts and data centers all over the place. Basically, data lives in a million places, and it's incredibly hard to analyze data across the silos. Most intelligence analytics and learning models deploy on single data sets because it has been next to impossible to analyze data across sources. Until now, Snowflake Data Cloud is a data platform shared by all snowflake users. If you are on snowflake, you are already plugged into it. It's like being part of a Global Data Federation data orbit, if you will, where all other data can now be part of your scope. Historically, technology limitations led us to build systems and services that siloed the data behind systems, software and network perimeters. To analyze data across silos, we resorted to building special purpose data warehouses force fed by multiple data sources empowered by expensive proprietary hardware. The scale limitations lead to even more silos. The onslaught of the public cloud opened the gateway to unleashing the world's data for access for sharing a monetization. But it didn't happen. Pretty soon they were new silos, different public clouds, regions within the and a huge collection of SAS applications hoarding their data all in their own formats on the East NC ations whole industries exist just to move data from A to B customer behavior precipitated the silo ing of data with what we call a war clothes at a time mentality. Customers focused on the applications in isolation of one another and then deploy data platforms for their workload characteristics and not much else, thereby throwing up new rules between data. Pretty soon, we don't just have our old Silas, but new wants to content with as well. Meanwhile, the promise of data science remains elusive. With all this silo ing and bunkering of data workload performance is necessary but not sufficient to enable the promise of data science. We must think about unfettered data access with ease, zero agency and zero friction. There's no doubt that the needs of data science and data engineering should be leading, not an afterthought. And those needs air centered on accessing and analyzing data across sources. It is now more the norm than the exception that data patterns transcend data sources. Data silos have no meaning to data science. They are just remnants of legacy computing. Architectures doesn't make sense to evaluate strictly on the basis of existing workloads. The world changes, and it changes quickly. So how does the data cloud enabled unfettered data access? It's not just a function of being in the public cloud. Public Cloud is an enabler, no doubt about it. But it introduces new silos recommendation by cloud, platform by cloud region by Data Lake and by data format, it once again triggered technical grandstands and a lot of programming to bring a single analytical perspective to a diversity of data. Data was not analytics ready, not optimized for performance or efficiency and clearly lacking on data governance. Snowflake, address these limitations, thereby combining great execution with great data >>access. But, snowflake, we can have the best of both. So how does it all work when you join Snowflake and have your snowflake account? You don't just >>avail yourself of unlimited stories. And compute resource is along with a world class execution platform. You also plug into the snowflake data cloud, meaning that old snowflake accounts across clouds, regions and geography are part of a single snowflake data universe. That is the data clouds. It is based on our global data sharing architectures. Any snowflake data can be exposed and access by any other snowflake user. It's seamless and frictionless data is generally not copied. Her moves but access in place, subject to the same snowflake governance model. Accessing the data cloth can be a tactical one on one sharing relationship. For example, imagine how retailer would share data with a consumer back. It's good company, but then it easily proliferate from 1 to 1. Too many too many. The data cloud has become a beehive of data supply and demand. It has attracted hundreds of professional data listings to the Snowflake Data Marketplace, which fuels the data cloud with a rich supply of options. For example, our partner Star Schema, listed a very detailed covert 19 incident and fatality data set on the Snowflake Data Marketplace. It became an instant hit with snowflake customers. Scar schema is not raw data. It is also platform optimize, meaning that it was analytics ready for all snowflake accounts. Snowflake users were accessing, joining and overlaying this new data within a short time of it becoming available. That is the power of platform in financial services. It's common to see snowflake users access data from snowflake marketplace listings like fax set and Standard and Poor's on, then messed it up against for example. Salesforce data There are now over 100 suppliers of data listings on the snowflake marketplace That is, in addition to thousands of enterprise and institutional snowflake users with their own data sets. Best part of the snowflake data cloud is this. You don't need to do or buy anything different. If your own snowflake you're already plugged into the data clouds. A whole world data access options awaits you on data silos. Become a thing of the past, enjoy today's presentations. By the end of it, you should have a better sense in a bigger context for your choices of data platforms. Thank you for joining us.

>>from around the globe. It's the Cube with coverage of Yukon and Cloud. Native Con North America. 2020. Virtual Brought to You by Red Hat, The Cloud, Native Computing Foundation and Ecosystem Partners Welcome back to the Cube. Virtual coverage of KUB Con Cloud native 2020. It's virtual this year. We're not face to face. Were normally in person where we have great interviews. Everyone's kind of jamming in the hallways, having a good time talking tech, identifying the new projects and knew where So we're not. There were remote. I'm John for your host. We've got two great gas, both Cuba alumni's Chris. And is it chief technology officer of the C and C F Chris, Welcome back. Great to see you. Thanks for coming on. Appreciate it. >>Awesome. Glad to be here. >>And, of course, another Cube alumni who is in studio. But we haven't had him at a Show Jr store meant executive director of the Fin Ops Foundation. And that's the purpose of this session. A interesting data point we're going to dig into how cloud has been enabling Mawr communities, more networks of practitioners who are still working together, and it's also a success point Chris on the C N C F vision, which has been playing out beautifully. So we're looking forward to digging. Jr. Thanks for coming on. Great to see you. >>Yeah, great to be here. Thanks, John. >>So, first of all, I want to get the facts out there. I think this is really important story that people should pay attention to the Finn Ops Foundation. That J. R. That you're running is really an interesting success point because it's it's not the c n c f. Okay. It's a practitioner that builds on cloud. Your experience in community you had is doing specific things that they're I won't say narrow but specific toe a certain fintech things. But it's really about the success of Cloud. Can you explain and and layout for take a minute to explain What is the fin Ops foundation and has it relate to see NCF? >>Yeah, definitely. So you know, if you think about this, the shift that we've had to companies deploying primarily in cloud, whether it be containers a ciencia focuses on or traditional infrastructure. The thing that typically people focus on right is the technology and innovation and speed to market in all those areas. But invariably companies hit this. We'd like to call the spend panic moment where they realize they're They're initially spending much more than they expected. But more importantly, they don't really have the processes in place or the people or the tools to do things like fully, you know, understand where their costs are going to look at how to optimize those to operate that in their organizations. And so the foundation pinups foundation eyes really focused on, uh, the people in practitioners who are in organizations doing cloud financial management, which is, you know, being those who drive this accountability of this variable spin model that's existed. So we were partnering very closely with, uh, see NCF. And we're now actually part of the Linux Foundation as of a few months ago, Uh, and you know, just to kind of put into context how that you kind of Iraq together, whereas, you know, CNC s very focused on open source coordinative projects, you know, For example, Spotify just launched their backstage cloud called Management Tool into CFCF Spotify folks, in our end, are working on the best practices around the cloud financial management that standards to go along with that. So we're there to help, you know, define this sort of cultural transformation, which is a shift to now. Engineers happen to think about costs as they never did before. On finance, people happen to partner with technology teams at the speed of cloud, and, you know executives happen to make trade off decisions and really change the way that they operate the business. With this variable page ago, engineers have all the access to spend the money in Cloud Model. >>Hey, blank check for engineers who doesn't like that rain that in its like shift left for security. And now you've got to deal with the financial Finn ops. It's really important. It's super point, Chris. In all seriousness. Putting kidding aside, this is exactly the kind of thing you see with open sores. You're seeing things like shift left, where you wanna have security baked in. You know what Jr is done in a fabulous job with his community now part of Linux Foundation scaling up, there's important things to nail down that is specific to that domain that are related to cloud. What's your thoughts on this? Because you're seeing it play out. >>Yeah, no, I mean, you know, I talked to a lot of our end user members and companies that have been adopting Cloud Native and I have lots of friends that run, you know, cloud infrastructure at companies. And Justus Jr said, You know, eventually there's been a lot of success and cognitive and want to start using a lot of things. Your bills are a little bit more higher than you expect. You actually have trouble figuring out, you know, kind of who's using what because, you know, let's be honest. A lot of the clouds have built amazing services. But let's say the financial management and cost management accounting tools charge back is not really built in well. And so I kind of noticed this this issue where it's like, great everyone's using all these services. Everything is great, But costs are a little bit confusing, hard to manage and, you know, you know, scientifically, you know, I ran into, you know, Jr and his community out there because my community was having a need of like, you know, there's just not good tools, standards, no practices out there. And, you know, the Finau Foundation was working on these kind of great things. So we started definitely found a way to kind of work together and be under the same umbrella foundation, you know, under the under Linux Foundation. In my personal opinion, I see more and more standards and tools to be created in this space. You know, there's, you know, very few specifications or standards and trying to get cost, you know, data out of different clouds and tools out there, I predict, Ah, lot more work is going to be done. Um, in this space, whether it's done and defendants foundation itself, CNC f, I think will probably be, uh, collaboration amongst communities. Can I truly figure this out? So, uh, engineers have any easier understanding of, you know, if I spent up the service or experiment? How much is this actually going to potentially impact the cost of things and and for a while, You know, uh, engineers just don't think about this. When I was at Twitter, we spot up services all time without really care about cost on, and that's happening a lot of small companies now, which don't necessarily have as a big bucket. So I'm excited about the space. I think you're gonna see a huge amount of focus on cloud financial management drops in the near future. >>Chris, thanks for that great insight. I think you've got a great perspective. You know, in some cases, it's a fast and loose environment. Like Twitter. You mentioned you've got kind of a blank check and the rocket ships going. But, Jr, this brings up to kind of points. This kind of like the whole code side of it. The software piece where people are building code, but also this the human error. I mean, we were playing with clubs, so we have a big media cloud and Amazon and we left there. One of the buckets open on the switches and elemental. We're getting charged. Massive amounts for us cash were like, Wait a minute, not even using this thing. We used it once, and it left it open. It was like the water was flowing through the pipes and charging us. So you know, this human error is throwing the wrong switch. I mean, it was simply one configuration error, in some cases, just more about planning and thinking about prototypes. >>Yeah. I mean, so take what your experience there. Waas and multiply by 1000 development teams in a big organization who all have access to cloud. And then, you know, it's it's and this isn't really about a set of new technologies. It's about a new set of processes and a cultural change, as Chris mentioned, you know, engineers now thinking about cost and this being a whole new efficiency metric for them to manage, right? You know, finance teams now see this world where it's like tomorrow. The cost could go three x the next day they could go down. You've got, you know, things spending up by the second. So there's a whole set of cross functional, and that's the majority of the work that are members do is really around. How do we get these cross functional teams working together? How do we get you know, each team up leveled on what they need, understand with cloud? Because not only is it, you know, highly variable, but it's highly decentralized now, and we're seeing, you know, cloud hit. These sort of material spend levels where you know, the big, big cloud spenders out there spending, you know, high nine figures in some cases you know, in cloud and it's this material for their for their businesses. >>And let's just let's be honest. Here is like Clouds, for the most part, don't really have a huge incentive in offering limits and so on. It's just, you know, like, hey, the more usage that the better And hopefully getting a group of practitioners in real figures. Well, holy put pressure to build better tools and services in this area. I think actually it is happening. I think Jared could correct me if wrong. I think AWS recently announced a feature where I think it's finally like quotas, you know, enabled, you know, you have introducing quotas now for and building limits at some level, which, you know, I think it's 2020 Thank you know, >>just to push back a little bit in support of our friends, you ask Google this company, you know, for a long time doing this work, we were worried that the cloud would be like, What are you doing? Are you trying to get our trying to minimize commitments and you know the dirty secret of this type of work? And I were just talking a bunch of practitioners today is that cloud spend never really goes down. When you do this work, you actually end up spending more because you know you're more comfortable with the efficiency that you're getting, and your CEO is like, let's move more workloads over. But let's accelerate. Let's let's do Maurin Cloud goes out more data centers. And so the cloud providers air actually largely incentivized to say, Yeah, we want people to be officially don't understand this And so it's been a great collaboration with those companies. As you said, you know, aws, Google, that you're certainly really focused in this area and ship more features and more data for you. It's >>really about getting smart. I mean, you know, they no, >>you could >>do it. I mean, remember the old browser days you could switch the default search engine through 10 menus. You could certainly find the way if you really wanted to dig in and make policy a simple abstraction layer feature, which is really a no brainer thing. So I think getting smarter is the right message. I want to get into the synergy Chris, between this this trend, because I think this points to, um kind of what actually happened here if you look at it at least from my perspective and correct me if I'm wrong. But you had jr had a community of practitioners who was sharing information. Sounds like open source. They're talking and sharing, you know? Hey, don't throw that switch. Do This is the best practice. Um, that's what open communities do. But now you're getting into software. You have to embed cost management into everything, just like security I mentioned earlier. So this trend, I think if you kind of connect the dots is gonna happen in other areas on this is really the synergy. Um, I getting that right with CNC >>f eso The way I see it is, and I dream of a future where developers, as they develop software, will be able to have some insight almost immediately off how much potential, you know, cost or impact. They'll have, you know, on maybe a new service or spinning up or potentially earlier in the development cycle saying, Hey, maybe you're not doing this in a way that is efficient. Maybe you something else. Just having that feedback loop. Ah lot. You know, closer to Deb time than you know a couple weeks out. Something crazy happens all of a sudden you notice, You know, based on you know, your phase or financial folks reaching out to you saying, Hey, what's going on here? This is a little bit insane. So I think what we'll see is, as you know, practitioners and you know, Jr spinoffs, foundation community, you know, get together share practices. A lot of them, you know, just as we saw on sense. Yeah, kind of build their own tools, models, abstractions. And, you know, they're starting to share these things. And once you start sharing these things, you end up with a you know, a dozen tools. Eventually, you know, sharing, you know, knowledge sharing, code sharing, you know, specifications. Sharing happens Eventually, things kind of, you know, become de facto tools and standards. And I think we'll see that, you know, transition in the thin ops community over the next 12 to 4 months. You know, very soon in my thing. I think that's kind of where I see things going, >>Jr. This really kind of also puts a riel, you know, spotlight and illustrates the whole developer. First cliche. I mean, it's really not a cliche. It's It's happening. Developers first, when you start getting into the calculations of our oi, which is the number one C level question is Hey, what's the are aware of this problem Project or I won't say cover your ass. But I mean, if someone kind of does a project that it breaks the bank or causes a, you know, financial problem, you know, someone gets pulled out to the back would shed. So, you know, here you're you're balancing both ends of the spectrum, you know, risk management on one side, and you've got return on investment on the other. Is that coming out from the conversation where you guys just in the early stages, I could almost imagine that this is a beautiful tailwind for you? These thes trends, >>Yeah. I mean, if you think about the work that we're doing in our practice you're doing, it's not about saving money. It's about making money because you actually want empower those engineers to be the innovation engines in the organization to deliver faster to ship faster. At the same time, they now can have, you know, tangible financial roo impacts on the business. So it's a new up leveling skill for them. But then it's also, I think, to Christmas point of, you know, people seeing this stuff more quickly. You know what the model looks like when it's really great is that engineers get near real time visibility into the impact of their change is on the business, and they can start to have conversations with the business or with their finance partners about Okay, you know, if you want me to move fast, I could move fast, But it's gonna cost this if you want me to optimize the cost. I could do that or I can optimize performance. And there's actually, you know, deeper are like conversation the candidate up. >>Now I know a lot of people who watch the Cube always share with me privately and Chris, you got great vision on this. We talked many times about it. We're learning a lot, and the developers are on the front lines and, you know, a lot of them don't have MBAs and, you know they're not in the business, but they can learn quick. If you can code, you can learn business. So, you know, I want you to take a minute Jr and share some, um, educational knowledge to developers were out there who have to sit in these meetings and have to say, Hey, I got to justify this project. Buy versus build. I need to learn all that in business school when I had to see s degree and got my MBA, so I kind of blended it together. But could you share what the community is doing and saying, How does that engineer sit in the meeting and defend or justify, or you some of the best practices what's coming out of the foundation? >>Yeah, I mean, and we're looking at first what a core principles that the whole organization used to line around. And then for each persona, like engineers, what they need to know. So I mean, first and foremost, it's It's about collaboration, you know, with their partners andan starting to get to that world where you're thinking about your use of cloud from a business value driver, right? Like, what is the impact of this? The critical part of that? Those early decentralization where you know, now you've got everybody basically taking ownership for their cloud usage. So for engineers, it's yes, we get that information in front of us quickly. But now we have a new efficiency metric. And engineers don't like inefficiency, right? They want to write fishing code. They wanna have efficient outcomes. Um, at the same time, those engineers need to now, you know, have ah, we call it, call it a common lexicon. Or for Hitchhiker's Guide to the Galaxy, folks. Ah, Babel fish that needs to be developed between these teams. So a lot of the conversations with engineers right now is in the foundation is okay. What What financial terms do I need to understand? To have meaningful conversations about Op X and Capex? And what I'm going to make a commitment to a cloud provider like a committed use discount, Google or reserved instance or savings Planet AWS. You know, Is it okay for me to make that? What? How does that impact our, you know, cost of capital. And then and then once I make that, how do I ensure that I could work with those teams to get that allocated and accounted? The right area is not just for charge back purposes, but also so that my teams can see my portion of the estate, right? And they were having the flip side of that conversation with all the finance folks of like, You need to understand how the variable cloud, you know, model works. And you need to understand what these things mean and how they impact the business. And then all that's coming together. And to the point of like, how we're working with C and C f you know, into best practices White papers, you know, training Siri's etcetera, sets of KP eyes and capabilities. Onda. All these problems have been around for years, and I wouldn't say they're solved. But the knowledge is out there were pulling it together. The new level that we're trying to talk with the NCF is okay. In the old world of Cloud, you had 1 to 1 use of a resource. You're running a thing on an instance in the new world, you're running in containers and that, you know, cluster may have lots of pods and name spaces, things inside of it that may be doing lots of different workloads, and you can no longer allocate. I've got this easy to instance and this storage to this thing it's now split up and very ephemeral. And it is a whole new layer of virtualization on top of virtual ization that we didn't have to deal with before. >>And you've got multiple cloud. I'll throw that in there, just make another dimension on it. Chris, tie this together cause this is nice energy to scale up what he's built with the community now, part of the Linux Foundation. This fits nicely into your vision, you know, perfectly. >>Yeah, no, 100% like, you know, so little foundation. You know, as you're well, well aware, is just a federation of open source foundations of groups working together to share knowledge. So it definitely fits in kind of the little foundation mission of, you know, building the largest share technology investment for, you know, humankind. So definitely good there with my kind of C and C f c T o hat, you know, on is, you know, I want to make sure that you know, you know my community and and, you know, the community of cloud native has access and, you know, knowledge about modern. You know, cloud financial management practices out there. If you look at some of the new and upcoming projects in ciencia things like, you know, you know, backstage, which came out of Spotify. They're starting to add functionality that, you know, you know, originally backstage kind of started out as this, you know, everyone builds their own service catalog to go catalog, and you know who owns what and, you know and all that goodness and developers used it. And eventually what happened is they started to add cost, you know, metrics to each of these services and so on. So it surfaces things a little bit closer, you know, a depth time. So my whole goal is to, you know, take some of these great, you know, practices and potential tools that were being built by this wonderful spinoffs community and trying to bring it into the project. You know, front inside of CNC F. So having more projects either exposed, you know, useful. You know, Finn, ops related metrics or, you know, be able to, you know, uh, you know, tool themselves to quickly be able to get useful metrics that could be used by thin ox practitioners out there. That's my kind of goal. And, you know, I just love seeing two communities, uh, come together to improve, improve the state of the world. >>It's just a great vision, and it's needed so and again. It's not about saving money. Certainly does that if you play it right, but it's about growth and people. You need better instrumentation. You need better data. You've got cloud scale. Why not do something there, right? >>Absolutely. It's just maturity after the day because, you know, a lot of engineers, you know, they just love this whole like, you know, rental model just uses many Resource is they want, you know, without even thinking about just basic, you know, metrics in terms of, you know, how many idle instances do I have out there and so, like, people just don't think about that. They think about getting the work done, getting the job done. And if they anything we do to kind of make them think a little bit earlier about costs and impact efficiency, charge back, you know, I think the better the world isn't Honestly, you know, I do see this to me. It's It's almost like, you know, with my hippie hat on. It's like Stephen Green or for the more efficient we are. You know, the better the world off cloud is coming. Can you grow? But we need to be more efficient and careful about the resource is that we use in sentencing >>and certainly with the pandemic, people are virtually you wanted mental health, too. I mean, if people gonna be pulling their hair out, worrying about dollars and cents at scale, I mean, people are gonna be freaking out and you're in meetings justifying why you did things. I mean, that's a time waster, right? I mean, you know, talking about wasting time. >>I have a lot of friends who, you know, run infrastructure at companies. And there's a lot of you know, some companies have been, you know, blessed during this, you know, crazy time with usage. But there is a kind of laser focused on understanding costs and so on and you not be. Do not believe how difficult it is sometimes even just to get, you know, reporting out of these systems, especially if you're using, you know, multiple clouds and multiple services across them. It's not. It's non trivial. And, you know, Jared could speak to this, But, you know, a lot of this world runs in like terrible spreadsheets, right and in versus kind of, you know, nice automated tools with potential, a p I. So there's a lot of this stuff. It's just done sadly in spreadsheets. >>Yeah, salute the flag toe. One standard to rally around us. We see this all the time Jr and emerging inflection points. No de facto kind of things develop. Kubernetes took that track. That was great. What's your take on what he just said? I mean, this is a critical path item for people from all around. >>Yeah, and it's It's really like becoming this bigger and bigger data problem is well, because if you look at the way the clouds are building, they're building per seconds and and down to the very fine grain detail, you know, or functions and and service. And that's amazing for being able to have accountability. But also you get people with at the end of the month of 300 gigabyte billing files, with hundreds of millions of rows and columns attached. So, you know, that's where we do see you companies come together. So yeah, it is a spreadsheet problem, but you can now no longer open your bill in a spreadsheet because it's too big. Eso you know, there's the native tools are doing a lot of work, you know, as you mentioned, you know, AWS and Azure Google shipping a lot. There's there's great, you know, management platforms out there. They're doing work in this area, you know, there's there's people trying to build their own open source the things like Chris was talking about as well. But really, at the end of the day like this, this is This is not a technology. Changes is sort of a cultural shift internally, and it's It's a lot like the like, you know, move from data center to cloud or like waterfall to Dev ops. It's It's a shift in how we're managing, you know, the finances of the money in the business and bringing these groups together. So it it takes time and it takes involvement. I'm also amazed I look like the job titles of the people who are plugged into the Phenoms Foundation and they range from like principal engineers to tech procurement. Thio you know, product leaders to C. T. O. S. And these people are now coming together in the classic to get a seat at the table right toe, Have these conversations and talk about not How do we reduce, you know, cost in the old eighties world. But how do we work together to be more quickly to innovate, to take advantage of these cognitive technologies so that we could be more competitive? Especially now >>it's automation. I mean, all these things are at play. It's about software. I mean, software defined operations is clearly the trend we've been covering. You guys been riding the wave cloud Native actually is so important in all these modern APS, and it applies to almost every aspect of stacks, so makes total sense. Great vision. Um, Chris props to you for that, Jr. Congratulations on a great community, Jerry. I'll give you the final word. Put a plug in for the folks watching on the fin ops Foundation where you're at. What are you looking to do? You adding people, What's your objectives? Take a minute to give the plug? >>Yeah, definitely. We were in open source community, which means we thrive on people contributing inputs. You know, we've got now almost 3000 practitioner members, which is up from 1500 just this this summer on You know, we're looking for those who have either an interesting need to plug into are checked advisory council to help define standards as part of this event, The cognitive gone we're launching Ah, white paper on kubernetes. Uh, and how to do confidential management for it, which was a collaborative effort of a few dozen of our practitioners, as well as our vendor members from VM Ware and Google and APP Thio and a bunch of others who have come together to basically defined how to do this. Well, and, you know, we're looking for folks to plug into that, you know, because at the end of the day, this is about everybody sort of up leveling their skills and knowledge and, you know, the knowledge is out there, nobody's head, and we're focused on how toe drive. Ah, you know, a central collection of that be the central community for it. You enable the people doing this work to get better their jobs and, you know, contribute more of their companies. So I invite you to join us. You know, if your practitioner ITT's Frito, get in there and plug into all the bits and there's great slack interaction channels where people are talking about kubernetes or pinups kubernetes or I need to be asked Google or where we want to go. So I hope you consider joining in the community and join the conversation. >>Thanks for doing that, Chris. Good vision. Thanks for being part of the segment. And, as always, C N C F. This is an enablement model. You throw out the soil, but the 1000 flowers bloom. You don't know what's going to come out of it. You know, new standards, new communities, new vendors, new companies, some entrepreneur Mike jump in this thing and say, Hey, I'm gonna build a better tool. >>Love it. >>You never know. Right? So thanks so much for you guys for coming in. Thanks for the insight. Appreciate. >>Thanks so much, John. >>Thank you for having us. >>Okay. I'm John Furry, the host of the Cube covering Coop Con Cloud, Native Con 2020 with virtual This year, we wish we could be there face to face, but it's cute. Virtual. Thanks for watching

>>Welcome everyone. Good morning. Good evening to all of you around the world. I am so excited to welcome you to launch bad our annual conference for customers, for partners, for our own colleagues here at Mirandes. This is meant to be a forum for learning, for sharing for discovery. One of openness. We're incredibly excited. Do you have you here with us? I want to take a few minutes this morning and opened the conference and share with you first and foremost where we're going as a company. What is our vision then? I also want to share with you on update on what we have been up to you for the past year. Especially with two important acquisitions, Doc Enterprise and then container and lens. And what are some of the latest developments at Mirandes? And then I'll close also with an exciting announcement that we have today, which we hope is going to be interesting and valuable for all of you. But let me start with our mission. What are we here to Dio? It's very simple. We want to help you the ship code faster. This is something that we're very excited about, something that we have achieved for many of you around the world. And we just want thio double down on. We feel this is a mission that's very much worthwhile and relevant and important to you. Now, how do we do that? How do we help you ship code faster? There are three things we believe in. We believe in this world of cloud. Um, choice is incredibly important. We all know that developers want to use the latest tools. We all know that cloud technology is evolving very quickly and new innovations appear, um, very, very quickly, and we want to make them available to you. So choice is very important. At the same time, consuming choice can be difficult. So our mission is to make choice simple for you to give developers and operators simplicity and then finally underpinning everything that we dio is security. These are the three big things that we invest in and that we believe that choice, simplicity and security and the foundation technology that we're betting on to make that happen for you is kubernetes many of you, many of our customers use kubernetes from your aunties today and they use it at scale. And this is something we want to double down on the fundamental benefit. The our key promise we want to deliver for you is Speed. And we feel this is very relevant and important and and valuable in the world that we are in today. So you might also be interested in what have been our priorities since we acquired Doc Enterprise. What has happened for the past year at Miranda's And there are three very important things we focused on as a company. The first one is customer success. Um, when we acquired Doc Enterprise, the first thing we did is listen to you connect with the most important customers and find out what was your sentiment. What did you like? What were you concerned about? What needed to improve? How can we create more value and a better experience for you? So, customers success has been a top of our list of priorities ever since. And here is what we've heard here is what you've told us. You've told us that you very much appreciated the technology that you got a lot of value out of the technology, but that at the same time, there are some things that we can do better. Specifically, you wanted better. Sele's better support experience. You also wanted more clarity on the road map. You also wanted to have a deeper alignment and a deeper relationship between your needs and your requirements and our our technical development that keep people in our development organization are most important engineers. So those three things are were very, very important to you and they were very important to us here. So we've taken that to heart and over the past 12 months, we believe, as a team, we have dramatically improved the customer support experience. We introduced new SLS with prod care. We've rolled out a roadmap to many many of our customers. We've taken your requirements of the consideration and we've built better and deeper relationships with so many of you. And the evidence for that that we've actually made some progress is in a significant increase off the work clothes and in usage of all platforms. I was so fortunate that we were able to build better and stronger relationships and take you to the next level of growth for companies like Visa like soc T general, like nationwide, like Bosch, like Axa X l like GlaxoSmithKline, like standard and Poor's, like Apple A TNT. So many, many off you, Many of all customers around the world, I believe over the past 12 months have experienced better, better, better support strong s L. A s a deeper relationship and a lot more clarity on our roadmap and our vision forward. The second very big priority for us over the last year has been product innovation. This is something that we are very excited about that we've invested. Most of our resource is in, and we've delivered some strong proof points. Doc Enterprise 3.1 has been the first release that we have shipped. Um, as Mirant is as the unified company, Um, it's had some big innovative features or Windows support or a I and machine learning use cases and a significant number off improvements in stability and scalability earlier this year. We're very excited to have a quiet lens and container team, which is by far the most popular kubernetes. I'd, um, in the world today and every day, 600 new users are starting to use lens to manage the community's clusters to deploy applications on top of communities and to dramatically simplify the experience for communities for operators and developers alike. That is a very big step forward for us as a company. And then finally, this week at this conference, we announcing our latest product, which we believe is a huge step forward for Doc Enterprise and which we call Doc Enterprise, Container Cloud, and you will hear a lot more about that during this conference. The third vector of development, the third priority for us as a company over the past year was to become mawr and Mawr developer centric. As we've seen over the past 10 years, developers really move the world forward. They create innovation, they create new software. And while our platform is often managed and run and maybe even purchased by RT architects and operators and I T departments, the actual end users are developers. And we made it our mission a za company, to become closer and closer to developers to better understand their needs and to make our technology as easy and fast to consume as possible for developers. So as a company, we're becoming more and more developers centric, really. The two core products which fit together extremely well to make that happen, or lens, which is targeted squarely at a new breed off kubernetes developers sitting on the desktop and managing communities, environments and the applications on top on any cloud platform anywhere and then DACA enterprise contain a cloud which is a new and radically innovative, contain a platform which we're bringing to market this week. So with this a za background, what is the fundamental problem which we solve for you, for our customers? What is it that we feel are are your pain points that can help you resolve? We see too very, very big trends in the world today, which you are experiencing. On one side, we see the power of cloud emerging with more features mawr innovation, more capabilities coming to market every day. But with those new features and new innovations, there is also an exponential growth in cloud complexity and that cloud complexity is becoming increasingly difficult to navigate for developers and operators alike. And at the same time, we see the pace of change in the economy continuing to accelerate on bits in the economy and in the technology as well. So when you put these two things together on one hand, you have MAWR and Mawr complexity. On the other hand, you have fast and faster change. This makes for a very, very daunting task for enterprises, developers and operators to actually keep up and move with speed. And this is exactly the central problem that we want to solve for you. We want to empower you to move with speed in the middle off rising complexity and change and do it successfully and with confidence. So with that in mind, we are announcing this week at LAUNCHPAD a big and new concept to take the company forward and take you with us to create value for you. And we call this your cloud everywhere, which empowers you to ship code faster. Dr. Enterprise Container Cloud is a lynch bit off your cloud everywhere. It's a radical and new container platform, which gives you our customers a consistent experience on public clouds and private clouds alike, which enables you to ship code faster on any infrastructure, anywhere with a cohesive cloud fabric that meets your security standards that offers a choice or private and public clouds and offer you a offers you a simple, an extremely easy and powerful to use experience. for developers. All of this is, um, underpinned by kubernetes as the foundation technology we're betting on forward to help you achieve your goals at the same time. Lens kubernetes e. It's also very, very well into the real cloud. Every concept, and it's a second very strong linchpin to take us forward because it creates the developing experience. It supports developers directly on their desktop, enabling them Thio manage communities workloads to test, develop and run communities applications on any infrastructure anywhere. So Doc, Enterprise, Container, Cloud and Lens complement each other perfectly. So I'm very, very excited to share this with you today and opened the conference for you. And with this I want to turn it over to my colleague Adam Parker, who runs product development at Mirandes to share a lot more detail about Doc Enterprise Container Cloud. Why we're excited about it. Why we feel is a radical step forward to you and why we feel it can add so much value to your developers and operators who want to embrace the latest kubernetes technology and the latest container technology on any platform anywhere. I look forward to connecting with you during the conference and we should all the best. Bye bye. >>Thanks, Adrian. My name is Adam Parco, and I am vice president of engineering and product development at Mirant ISS. I'm extremely excited to be here today And to present to you Dr Enterprise Container Cloud Doc Enterprise Container Cloud is a major leap forward. It Turpal charges are platform. It is your cloud everywhere. It has been completely designed and built around helping you to ship code faster. The world is moving incredibly quick. We have seen unpredictable and rapid changes. It is the goal of Docker Enterprise Container Cloud to help navigate this insanity by focusing on speed and efficiency. To do this requires three major pillars choice, simplicity and security. The less time between a line of code being written and that line of code running in production the better. When you decrease that cycle, time developers are more productive, efficient and happy. The code is higher, quality contains less defects, and when bugs are found are fixed quicker and more easily. And in turn, your customers get more value sooner and more often. Increasing speed and improving developer efficiency is paramount. To do this, you need to be able to cycle through coding, running, testing, releasing and monitoring all without friction. We enabled us by offering containers as a service through a consistent, cloudlike experience. Developers can log into Dr Enterprise Container Cloud and, through self service, create a cluster No I T. Tickets. No industry specific experience required. Need a place to run. A workload simply created nothing quicker than that. The clusters air presented consistently no matter where they're created, integrate your pipelines and start deploying secure images everywhere. Instantly. You can't have cloud speed if you start to get bogged down by managing, so we offer fully automated lifecycle management. Let's jump into the details of how we achieve cloud speed. The first is cloud choice developers. Operators add mons users they all want. In fact, mandate choice choice is extremely important in efficiency, speed and ultimately the value created. You have cloud choice throughout the full stack. Choice allows developers and operators to use the tooling and services their most familiar with most efficient with or perhaps simply allows them to integrate with any existing tools and services already in use, allowing them to integrate and move on. Doc Enterprise Container Cloud isn't constructive. It's open and flexible. The next important choice we offer is an orchestration. We hear time and time again from our customers that they love swarm. That's simply enough for the majority of their applications. And that just works that they have skills and knowledge to effectively use it. They don't need to be or find coop experts to get immediate value, so we will absolutely continue to offer this choice and orchestration. Our existing customers could rest assure their workloads will continue to run. Great as always. On the other hand, we can't ignore the popularity that growth, the enthusiasm and community ecosystem that has exploded with communities. So we will also be including a fully conforming, tested and certified kubernetes going down the stock. You can't have choice or speed without your choice and operating system. This ties back to developer efficiency. We want developers to be able to leverage their operating system of choice, were initially supporting full stack lifecycle management for a bun, too, with other operating systems like red hat to follow shortly. Lastly, all the way down at the bottom of stack is your choice in infrastructure choice and infrastructure is in our DNA. We have always promoted no locking and flexibility to run where needed initially were supporting open stock AWS and full life cycle management of bare metal. We also have a road map for VM Ware and other public cloud providers. We know there's no single solution for the unique and complex requirements our customers have. This is why we're doubling down on being the most open platform. We want you to truly make this your cloud. If done wrong, all this choice at speed could have been extremely complex. This is where cloud simplification comes in. We offer a simple and consistent as a service cloud experience, from installation to day to ops clusters Air created using a single pane of glass no matter where they're created, giving a simple and consistent interface. Clusters can be created on bare metal and private data centers and, of course, on public cloud applications will always have specific operating requirements. For example, data protection, security, cost efficiency edge or leveraging specific services on public infrastructure. Being able to create a cluster on the infrastructure that makes the most sense while maintaining a consistent experience is incredibly powerful to developers and operators. This helps developers move quick by being able to leverage the infra and services of their choice and operators by leveraging, available, compute with the most efficient and for available. Now that we have users self creating clusters, we need centralized management to support this increase in scale. Doc Enterprise Container cloud use is the single pane of glass for observe ability and management of all your clusters. We have day to ops covered to keep things simple and new. Moving fast from this single pane of glass, you can manage the full stack lifecycle of your clusters from the infra up, including Dr Enterprise, as well as the fully automated deployment and management of all components deployed through it. What I'm most excited about is Doc Enterprise Container Cloud as a service. What do I mean by as a service doctor? Enterprise continue. Cloud is fully self managed and continuously delivered. It is always up to date, always security patched, always available new features and capabilities pushed often and directly to you truly as a service experience anywhere you want, it run. Security is of utmost importance to Miranda's and our customers. Security can't be an afterthought, and it can't be added later with Doctor and a price continued cloud, we're maintaining our leadership and security. We're doing this by leveraging the proven security and Dr Enterprise. Dr. Enterprise has the best and the most complete security certifications and compliance, such as Stig Oscar, How and Phipps 1 $40 to thes security certifications allows us to run in the world's most secure locations. We are proud and honored to have some of the most security conscious customers in the world from all industries into. She's like insurance, finance, health care as well as public, federal and government agencies. With Dr Enterprise Container Cloud. We put security as our top concern, but importantly, we do it with speed. You can't move fast with security in the way so they solve this. We've added what we're calling invisible security security enabled by default and configured for you as part of the platform. Dr Price Container Cloud is multi tenant with granular are back throughout. In conjunction with Doc Enterprise, Docker Trusted Registry and Dr Content Trust. We have a complete end to end secured software supply chain Onley run the images that have gone through the appropriate channels that you have authorized to run on the most secure container engine in the >>industry. >>Lastly, I want to quickly touch on scale. Today. Cluster sprawl is a very real thing. There are test clusters, staging clusters and, of course, production clusters. There's also different availability zones, different business units and so on. There's clusters everywhere. These clusters are also running all over the place. We have customers running Doc Enterprise on premise there, embracing public cloud and not just one cloud that might also have some bare metal. So cloud sprawl is also a very real thing. All these clusters on all these clouds is a maintenance and observe ability. Nightmare. This is a huge friction point to scaling Dr Price. Container Cloud solves these issues, lets you scale quicker and more easily. Little recap. What's new. We've added multi cluster management. Deploy and attach all your clusters wherever they are. Multi cloud, including public private and bare metal. Deploy your clusters to any infra self service cluster creation. No more I T. Tickets to get resources. Incredible speed. Automated Full stack Lifecycle management, including Dr Enterprise Container, cloud itself as a service from the in for up centralized observe ability with a single pane of glass for your clusters, their health, your APs and most importantly to our existing doc enterprise customers. You can, of course, add your existing D clusters to Dr Enterprise Container Cloud and start leveraging the many benefits it offers immediately. So that's it. Thank you so much for attending today's keynote. This was very much just a high level introduction to our exciting release. There is so much more to learn about and try out. I hope you are as excited as I am to get started today with Doc Enterprise. Continue, Cloud, please attend the tutorial tracks up Next is Miska, with the world's most popular Kubernetes E Lens. Thanks again, and I hope you enjoy the rest of our conference.