(upbeat music) >> Instructor: From around the globe. It's theCUBE covering Google Cloud Next OnAir 20. >> Welcome to theCUBE's coverage, virtual coverage of Google Next OnAir. I'm John for host theCUBE, We're here in Palo Alto California, for our remote interviews, part of our quarantine crew, getting all the stories that matter, Google Next OnAir, continuous event through the summer. We're calling it the summer of cloud. We've got two great guests here. Sunil Potti general manager and vice president of cloud security at Google Cloud. and Orion Hindawi co founder and CEO of Tanium. Gentlemen, thank you for coming on today, appreciate it. Great event you guys have on the continue. I'll call it the summer cloud. It's a lot of events that Google's having, So you guys and your team are doing a great job, but there's some hard news. You guys are announcing an expanded partnership together. Sunil tell us what is the news today. >> John, first of all, great to see you again, love being on theCUBE any time, and it's my honor to actually share the stage this time around with Orion and the Tanium team. So essentially what we're announcing today, is the fact that, as most of you know, especially in the new normal with a distributed workforce, and potentially it being the safer normal, down the road it presents, an unprecedented opportunity, I think in our opinion, that we can use this to accelerate potentially safer posture that otherwise would have taken years to build into the enterprise ecosystem that we could now bring forward, in a potentially, you know, in the year 2020 or 2021. So the primary announcement, is based on the fact that, Tanium's, you know, core enterprise offering and Google clouds, chronicle offering are coming together, to build a full stack offering for endpoint detection and response so that customers can have an end to end offering. That's both powerful, and you know, easy to use. All the way from the detection, response, remediation and analytics, all built together into one seamless, easy to consume offering for the global enterprise and being delivered in such a way that it can take into account organizations of thousands of employees or hundreds of thousands of employees. All by the same cloud native solution. >> All right how about why you're excited about this deal. What's different about it. Obviously there's a relationship here, what's so exciting about this story. >> Yeah, I think, you know, Orion to comment as well, but look, I think the key thing that we sort of partnered on initially was a customer driven, you know, technology centric integrations, where, you know, we went deep from a chronical perspective, to ensure native integration, between Tanium products to send signals, out of the box, as well as curated, enhanced, enriched, so that they could be actionable responses taken by Tanium solutions as well on behalf of security analysts, as part of our journey, to kind of reinvent the SOC of the future. Right? And so essentially, it's been a deliberate effort by both teams to not provide incremental integrations, but something that offers a reimagined safety posture, especially that's enhanced, I would say amplified, in a world where pretty much every employee, is essentially a tech director now. But otherwise was not the case, when they were working in a normal enterprise office. >> All right, what's your take on this? I'll say what's different I'll say big news. >> Sure, yeah. I mean, if you look at why we decided that Google would have been the perfect partner for us, we have very large enterprises. We work with about 70 of the fortune 100, the USOD, a lot of these very large environments, and many of them were coming to us and telling us two things. The first one was the amount of data, that they were generating, that they needed to be able to process and analyze and be able to find insight from, was going exponentially up. And the second one was, in the new kind of post COVID world, the amount of work from home risks that they were seeing, and the kind of perfection they needed to achieve, on finding threats quickly and neutralizing them was actually also going up. And so between those two things, we started really looking for a partner, that we could accelerate with, to provide our customers with true world-class data analytics, retention, being able to visualize that data and then being able to act on that data through Tanium. And I think that the partnership that we've struck with Google and the work we've done with them, to make this seamless for our customers, to make it scale really well, even for the largest managed networks, is something we're really proud of. >> What's the history between Chronicle and Tanium. What's the, how far back does it go, and how would you guys categorize this time and point in time in terms of evolution of that partnership? >> So maybe I'll take a stab Sunil, then you can take one as well, you know. We've been working with Chronicle now for over a year. And we've got customers, who kind of pointed us in this direction, which is how we love to start partnerships. We had some customers who had a lot of faith, that Google was going to be able to crack this nut. And honestly many of our customers had been really struggling with this, with their current vendors at the time, for years. And we're really looking for Google, because Google was the company, that they saw as having the most credibility with massive, massive data sets. What we got surprised by actually, was that there were a bunch of different legs of the stool, that we could work with Google on. So not only data retention of Chronicle, but things like zero trust, which I think many people know Google actually invented the concept of. When we start thinking about thin client management. So we actually found that, there's a really expansive partnership here. And what we're doing with Chronicle, I think is the first kind of instantiation of that. But we expect that over the next even years, we've got a lot of room to run with Google, to really secure and help our customers. >> Sunil talk about the wave that you're riding on right now. 'Cause obviously the reality is, I won't use the term new normal, but the new reality is, COVID has forced everyone to look at basically an unexpected disruption that no one saw coming. Yeah, we can prepare for disasters and floods and hurricanes and whatnot, but this is unforeseen everybody working at home. I mean, I can imagine all the VPN vendors, freaking out who even needs a VPN. So, you know, the access methods is everything, it's mobile, home, home is the new office. It's not just, you know, connect to an access point, my son's gaming, my daughter is watching Netflix. I'm trying to do some video conferencing and it's a mix of consumer business all happening. This is a complex environment now. What does this mean? This relation, how does this connect the dots? Can you, can you expand on that. >> Yeah, I mean I think I hinted on this a little bit at the beginning John, is that, we think, you know, this is an, you know, an unprecedented opportunity to help accelerate digital transformation, that otherwise would have taken a few years for many enterprises to get to. That can now be done potentially in months and for some customers maybe even in weeks. And some examples of that, that we've seen are that, look, if you just took, if you just take Google as an company, to Orion's point, look, we invested many years worth of technology and IP that now we're slowly bringing out in the form of BeyondCorp product sets. But essentially of the fact that look, we should treat every employee as if they were a remote worker. We don't trust the network, we basically break transitive properties, which was one of the foundational issues with security in the enterprise, where I trust a network and the network is trusted by a desktop. And then if you penetrate one, you can penetrate everything else in the chain. And so when COVID hit, we went from essentially pretty much, a hundred thousand plus employees, working in distributed headquarters, but within the Google environment, to working from home within a week later, but retained the same sort of like, not productive the levels just, but actually the same safety levels that were much stronger. And so in many cases, what we are announcing, is that even though enterprises have come forward and said, look, yeah, we have some PaaS work solutions, just because this is a major change for us. Now that we are in it, for not just three months or six months, but potentially a longer period of time. Why not take the opportunity to replatform our security environments, so that we can actually be in a better state, when we actually exit out of this. We might actually never go back full time, but it can actually be a hybrid environment. So that's part of the reason, why I think we are so jazzed about the partnership, is that these are two examples, of products coming together to help replatform, at least one sets of, you know, traditional, if I can call it weaklings in the security ecosystem, that can now be sort of like replatformed. >> I was doing an interview actually last week, and I was kind of riffing on this idea. This is one big IoT experiment. I mean, people are devices here and everyone's connected, but it's all remote. It's changed the patterns of work and traffic and all kinds of paradigms. But this brings up the issue of the customer challenge. Everyone's going to look up their environment saying, look at, we now know the benefit of cloud it's clear. But I got to rethink the projects that are on the table, and get rid of the ones, that aren't going to be relevant, to where the world has shifted. It's not even a question of digital transfer. It's like, okay, what am I doubling down on. And what am I going to eliminate from the picture. So I've got to ask you guys, if you guys can comment, if I'm a customer that's what's going through my head, I got to survive, reinvent the foundation, and come out with a growth strategy, with a workforce, workplace, workloads, and workflows that are completely different. What's in it for me. What does this mean to me. This partnership, so how do you help me. What's in it for me. >> So I might take a stab at that, you know, I think that a lot of our customers, if we look at where they were at the beginning of the year, they'd been building on a pretty creaky foundation and just adding more and more layers to it. So, you know, in the security side, many of our customers have 20 or 30 or 50 different tools. And many of them are there, because they were there yesterday. They're not actually, if you were going to zero base budget, the way you were going to do security, they wouldn't be the tools you'd choose. And the interesting thing about this whole work from home transition, it is effectively a zero based budget for security, because a lot of the tools just basically don't work. So you think about a lot of the network tools, and when everybody's working from home, you don't own the network. You think about a lot of even the endpoint tools, that assumed that devices would be behind that network perimeter, and now just don't work over the internet. And so when we look at our customers, they're realizing they have to replatform, their security model, anyway. And what they're doing is they're now picking again. And what they get to do is they get to pick the platforms that they now trust in 2020, with the work from home environment as it is. And I think what it gives you as a customer, is a huge simplification of your environment. I mean, we talk to people every day, who were used to operating those 20 or 30, 50 tools, and they were spending 90% of their energy just operating those tools, not actually improving security and they were falling behind. If you look at what they're able to do now, they actually can go back to a starting point, where they think about what is the real threat I'm facing. What are the real platforms, I should be choosing today. And we're actually seeing huge increases, in our customer kind of adoption of our platform because that resistance to change, has been removed. People can't resist change anymore, change has come, and as a result of that, they get to choose what they would like now. >> That's a huge point, I want to just double down on that and redirect, and then we'll go to Sunil and his commentary, but I think you just hit the nail on the head. We're seeing the same kind of commentary. You said it really eloquently, but the thing is that, okay, let's just, if you believe what you just said, which I do going into zero base budgeting decisions, fresh look and everything. The problem is people are looking at the decisions and comparing what the bells and whistles were from the tools. So how do you advise customers to rethink like, okay, if it's a fresh look, it's a fresh look. It's not like, okay, the way we did it before, so a lot of times when you were evaluating products, a group gets to say, it doesn't have this bell or this whistle, 'cause that's the way we did it before. So you got to kind of separate out, this idea of you're got to go that direction. It's a full, fresh look. So how are customers doing that, 'cause that's really difficult. >> It's a super relevant question for today's world, because I think you're absolutely right. If you talk to the person who operated the compliance tool in a big bank, and you ask them, what do you need from that tool? They very quickly get the things, that if you just take the question, which is, I need to do compliance for the bank, what do I need to do compliance effectively? And you look at the answer that they give you, which is I need this check box here. I need this button here. I need this kind of minutiae that I'm used to, to be consistent with what I've been used to, for the last 10 years. Those two things are not the same. And what we've really been encouraging our customers to do is take a look back at your requirements. So you are processing credit cards, you need to be PCI regulated. You need to be able to answer to your vendors, how many copies of their software you're using. You need to be able to find an attacker, who's moving around your environment, and do that as quickly as possible. And then let's build from there what capabilities you need. And let's forget about whether the color scheme, of the logo at the top of the report is the same. Let's talk about the core capabilities. And it's a very freeing conversation actually, because what a lot of people start realizing, is they've been maintaining the status quo, for reasons that actually have nothing to do with efficacy, they have to do with comfort. And the curse and the beauty of the last six months, is no one's comfortable. So I don't care how comfortable you are with your tools. No one I know is comfortable today. And what it's giving us, is an opportunity to look past the old school comfort and think about how do we transition to the future. And I think it's actually going to galvanize a lot of positive change. You know, I was saying this before we went on air, but I don't think anybody wished, that COVID was the way, that we would end up in a position, where people have the appetite for change. But if there's a silver lining in the situation, that's it. And I really think that the CIOs and CEOs and CFOs and CSOs, really across the board, need to take advantage of the fact, that there's a discontinuity here, that allows us to throw out the old, and bring in things that are much more effective. >> Sunil that's some great tea up for you, because what he's saying basically saying is if you don't focus on the check boxes, because it was reasons why, and they'll give you, there's a long list, probably RFPs are the same way, we check in the boxes, okay, throw that out. And then you can, by the way, you can innovate on those check boxes differently, but still achieve the same outcome. I get that. But for Google Cloud, you guys have a great network. It's well known in the industry. Google's got a phenomenal network, hence powering Android and all the servers. We know that, with a cloud player, this is a great opportunity for you guys to be a fresh candidate for this kind of change. How are you guys talking about this internally? Because this really is, the goalposts have been moved and in favor of who can deliver. >> I think as both of you have been talking about, I think, look, I think the way I will, you know, maybe color this is, you know, when consumers got to a safer posture with the advent of iPhone, right? Even though it was much more productive, delightful, and there's a bunch of other things, ultimately though, if anything, things became safer, when you actually did computing on a phone. Just because it was an opinionated stack. Ultimately we believe, whether you come to cloud completely or you consume some stacks, the more opinionated they are, that's ultimately the only way, to reduce these moving parts that expose us to security issues. And that principle applied by the way in reliability too, right? I mean, you have to simplify stuff for things to actually work at six nines and so forth. So same things, apply in security. So imagine a world, where every employee now is sitting at home, maybe two years from now, they come back, they work in the Starbucks, but we had a virtual Chromebook experience, because a physical Chromebook of course, it's a goal to kind of get that out there, because on one hand we have the cloud, which is a full stack opinionated offering, but there's various elements of computing, still dispersed in the environment. And you were talking about IoT. Eventually we will get there, but just look at the employee's laptop, but productivity station and imagine the construct of a virtual Chromebook off, and that's an opinionated stack. And that's essentially a variant of what the joint offering between the two companies is essentially, you know, sort of aspiring to, is to provide that level of, you know, clarity and opinionation, that actually genuinely solves for some foundational security issues. And in doing so, you now have, an opinionated stack close to the user, the enterprise user is an opinion stack via mobile phones, close to the consumer user. And for all enterprises from a computing side, there's an opinion stack, whether it be Google or some of the other public clouds, right? And ultimately I think the world will move, into these few sets of these opinionated stacks at various points of control. And at least this particular partnership, is around making the first step towards, potentially one of those opinionated stacks, virtual Chromebook like experience, for the enterprise use. >> And I think this is the beginning, of the wave of the reality, that the edge of the network, whatever you want to call it. And you see this with end point detection, right I mean, everything's an endpoint now. I mean, I still think every, this is one big IoT device, and everything is just moving around. So zero trust is a big part of it, Google cloud, and this relationship kind of brings that to the next level. How does zero trust, attaining a mission intersect here. Because I mean, I see some obvious ones, we just talked about it, but what's the connection. >> Yeah, I think we'll hopefully, you know, talk more about it later in the year, as well as we can to come out with more integrations. But at the high level, I think the way to think about this would be, imagine that device as you were talking about, having an ability to actually send a strong set of signals, not just for detection and response, but for actually enforcing, you know, authentication and authorization as well, because ultimately identity needs to intersect, with the current stack, that we currently have between the two companies. And so when identity of the user, identity of the device, identity of you know, the context in which, you know, someone actually allows a user to access an application, these are all net new things, that need to be brought into the solution. We cannot then provide both the, you know, not just a safe way to kind of provide an, you know, an endpoint detection and response kind of opinion stack, but also essentially meet that part of an uber zero trust offering, that a customer can consume to ensure that look, you know, ultimately look, it doesn't really matter whether the employees at home they're using their own laptop. They're at Starbucks. They can come back to work, but ultimately they have this virtualized, sort of security ring, that protects and always constantly authorizes authenticates and provides a bunch of this security operations capabilities. So anyway, the simple answer is, you know, once we intersect identity, and a slew of BeyondCorp capabilities, into the current offering, that's how the next step towards, a more formidable zero trust offering force. >> Okay, Orion I'd love to get your thoughts, but if you both can answer question, that'd be great. I'd love to get your thoughts, a little gamification here. If you had to put the headline out on this news. Not the one on the press release, that's like perfectly written, like, I mean, bumper sticker. what is the real meaning, of this relationship in this news? If you had to put a headline out there, I think Washington, think New York post style maybe, or you know, something that can describe the news. >> I mean, I will admit, I am not known for being good at soundbites, so, I'll give you the one sentence, and you can help me pare it down. But I mean, really what it is, is I think Tanium got, the highest fidelity and point visibility and control out there. And I think Google's got the best data storage analytics retention cross-referencing we've ever seen. And when you combine those two things, it's incredibly powerful, for our enterprise users, and we've already seen customers, where it's been transformative. >> So you need a headline, that's good though , that's fine. You know, point projection solid. >> I think it's a much more descriptive nature, frankly, but I think my logical tagline, that I just keep, you know, sort of like the sound, but soundbite that I keep referring to is. Looking out the world needs a virtual Chromebook, to really feel safe at an end point level. And this is sort of like the first instantiation, of that core stack, that can at least get enterprise to start on that journey. >> You know, I think you guys run something really big here. And one of my personal observations, is one is the complexity of the telemetry coming, and I can see how you would go in there and connecting the dots between Google's backend, and your stuff coming together. You need to have that high powered energy, from the resource, but also there's a human element. People are working at home, whether you're a teacher, you're getting fished their spear fish, to targeted social engineering. So as people come home, and there's now multiple access points, there's more surface area. So every single endpoint needs to be protected. And I think people are kind of in the normal world, or outside of the tech industry saying, Oh, I get it now. We're not really protected. And this is not just sensor networks, or, you know, OT technology, you know, OT, it's really humans. And this is really where it's going. Isn't it guys? >> Okay. >> You should take it there, look, I think we do have a foundational principle here, which says, look as demonstrated in a postcode world, but your point John, or whether it be IoT, just distributed computing in general continues to expand. We should just assume, that the surface area for security issues only expense, right? And rather than trying to kind, of do a vacuum all of the surface area, what if you could take a foundational approach, that actually breaks the relationship, between expanded surface area means expanded exposure to PaaS. And so essentially the same approach that we took, with zero trust, which is, look, we just know we're going to get broken into. So just don't assume that your network is not safe, but still have a secure posture. Right? How did that come to be? I think if we can just apply that, more generally into this construct of a distributed enterprise, which says, look, the surface area is going to keep going, but let's break that correlation between surface area. Let's buy a more foundational construct, that says, look, it doesn't matter, if today, as you said this your device, tomorrow, it could be, you know, your son's laptop, that you use to actually log into your network and so forth. But ultimately though, it doesn't matter who you are, where you're accessing it from, what device you're using, or what network you're using, or which location, the safety posture is still very strong. >> That's awesome. >> Yeah. I will just add you're absolutely right. I mean, if you look at a customer, I'm thinking about today and I just heard this from their CIO, a couple of days ago, but they have one and a half million things, they're protecting today. They expect to have over 150 million in five years. And so you look at containerization, cloud mobility, all the work from home stuff. It's just going to make this a more and more complex, highly variant problem. We need to expect that. And I think a lot of people are very frustrated, that at the time, that expansion is happening, the network essentially did become a control point. You couldn't trust anymore. So the thesis that Google had around zero trust, actually became our entire world for most enterprises. When you look at that, we do owe our customers quantum jumps in capability, or they're just not going to catch up. And I think that the theoretical approach that we're taking here between Google and Tanium, lets our customers take one of those quantum jumps, where they're going to be seeing a lot more, they're going to be able to trust it a lot more. They're going to be able to allow devices, to have access to things, based on their current state and based on believing that we can extrapolate, whether their security on that device accurately. And that's something that I think a lot of customers have just never been able to do before. And frankly, I think it takes companies like this, to pair up and really invest in joining their technologies to be able to get that fabric that will get our customers materially forward. And you know, I'll just say one other thing, many of our customers have to literally like, you know, three or four months ago, we're in a position, where they were spending 60 or 70% of their security budgets on network. There's nowhere to spend that money today. That's actually productive. It gives them the ability to refactor what they're doing and the obligation to do it, because if they don't do it, I think is, you know, I was describing with the amount of increased assets, the amount of complexity, the lack of network control. If they don't do it, looking at the amount, of threat our customers are facing today, they're going to be under water really quickly. And so, you know, I'm proud that we get to get together here and give them a big step forward. And you know, I think there's an obligation on our industry, not to try and rewarm the same stuff, we've been doing for the last 20 years, and try and serve it to our customers again, but to really rethink the approach because it is a different world. >> Sunil you've been involved in a very, a lot of entrepreneurial ventures. You've been on these waves, that were misunderstood and then became understood. This is what we're getting at here. And what he's saying, essentially new expectations. We're going to drive that experience and then ultimately drive the demand, and people will either be out of business or in business. If you're a supplier, I'll give you the final word, you guys are in good positions. >> Especially in security John, more so than maybe any other infrastructure space, that I've been involved in. Most products have been built to solve problems with other products. And Orion just pointed out, I think this opportunity gives enterprises, clarity and vendors, clarity that look, you really have to take, you know, foundationally original approach, to solve problems, that can get customers to, if I can call it a function change, in their current safety posture. Right? And so that's really the core essence of the partnership is to sort of, rather than worrying about solving problems, with other products and so forth, is to use this opportunity, like I said, you have an opinionated view, to fundamentally change, the security posture of the endpoint once and for all. >> Well gentlemen, congratulations, on a great partnership, expanded partnership. Again, the world has changed. I love this fresh look. I think that's totally right on the money. New reality we're here. Thanks for you taking the time, to remote in from Seattle and the Bay area. Great to see you again at Google cloud. Thanks for coming in or a nice to meet you, and good luck with everything. >> Thank you. >> Thank you. >> Okay, this is theCUBE coverage, CUBE virtual coverage of Google OnAir next 2020. It's all virtual, virtualization has come in, and don't trust the network. You know, you got to watch those end points. Here with Google and Tanium great partnership news. I'm John for your host of theCUBE. Thanks for watching. (upbeat music)

>> Narrator: From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is theCUBE conversation. >> Over welcome to theCUBE's virtual coverage of Google Next on air. I'm John Furrier host of theCUBE. We're here in Palo Alto, California for our remote interviews, part of our quarantine crew, getting all the stories that matter, Google Next OnAir, continues event through the summer. We're calling it the summer of Cloud. We got two great guests here, Sunil Potti, General Manager and Vice President of Cloud security at Google Cloud. And Orion Hindawi, Co founder and CEO of Tanium. Gentlemen, thank you for coming on today. Appreciate it. Great event you guys have on the container. I call the summer of Cloud. It's a lot of events that Google's having. So you guys and your team are doing a great job. But there's some hard news, you guys are announcing an expanded partnership together. Sunil, tell us what is the news today? >> Hey, John, first of all, great to see you again. Love being on theCUBE anytime and it's my honor to actually share the state system around with Orion and the Tatium team. So essentially, what we are announcing today is the fact that, as most of you know, especially in the new normal, with a distributed workforce, and potentially it being the safer normal down the road, it presents an unprecedented opportunity. I think, in our opinion that we can use this to accelerate potentially safer posture that otherwise would have taken years to build into the enterprise ecosystem that we could now bring forward in a potentially in the year 2020 or 2021. So the primary announcement is based on the fact that Tanium's core enterprise offering and Google Clouds conical offering are coming together to build a full stack offering for endpoint detection and response so that customers can have an end to end offering that's both powerful, and easy to use. All the way from the detection, response, remediation, and analytics all built together into one seamless, easy to consume offering for the global enterprise. And being delivered in such a way that it can take into account organizations of thousands of employees or hundreds of thousands of employees, all by the same Cloud native solution. >> All right, how about why you're excited about this deal? What's different about it? Obviously, there's a relationship here. What's so exciting about this story? >> Yeah, I think, Orion should comment as well. But look, I think the key thing that we partnered on initially was a customer driven technology centric integrations, where we went deep from a chronical perspective to ensure native integration between any MS products to send signals out of the box, as well as curated, enhanced, enriched so that they could be actionable responses taken by Tanium's solutions as well on behalf of security analysts, as part of our journey to reinvent soccer the future, right. And so essentially, it's been a deliberate effort by both teams to not provide incremental integrations, but something that offers a re-imagined safety posture, especially that's enhanced, I would say or amplified in a world where pretty much every employee is essentially a threat vector now, but otherwise was not the case when they were working in a normal enterprise off. >> All right, what's your take on this? I see what's different. I see new big news. >> Sure, yeah. I mean, if you look at why we decided that Google would have been the perfect partner for us. We have very large enterprises. We work with about 70 of the Fortune 100, the US DOD, a lot of these very large environments, and many of them were coming to us and telling us two things. The first one was the amount of data that they were generating that they needed to be able to process and analyze and be able to find insight from was growing exponentially. And the second one was in the new kind of post COVID world, the amount of work from home risk that they were seeing and the perfection they needed to achieve on finding threats quickly and neutralizing them was actually also going up. And so between those two things, we started really looking for a partner that we could accelerate with to provide our customers with true world class, data analytics, retention, being able to visualize that data and then being able to act on that data through Tanium. And I think that the partnership that we've struck with Google and the work we've done with them to make this seamless for our customers, to make it scale really well, even for the largest managed networks, is something we're really proud of. >> What's the history between Chronicle and Tanium? How far back does it go? And how would you guys categorize this time and point in time in terms of evolution of that partnership? >> So maybe I'll take a stab Sunil. And then you can take one as well. We've been working with Chronicle now for over a year. And we've got customers who pointed us in this direction, which is how we love to start partnerships. We had some customers who had a lot of faith that Google was going to be able to crack this nut. And honestly, many of our customers had been really struggling with this with their current vendors at the time for years. And we're really looking for Google, because Google was the company that they saw as having the most credibility with massive, massive datasets. What we got surprised by actually was that there were a bunch of different legs of the stool that we could work with Google on. So not only data retention of Chronicle, but things like zero trust, which I think many people know Google actually invented the concept of. When we start thinking about Thin Client Management. So we actually found that there's a really expensive partnership here. And what we're doing with Chronicle, I think, is the first instantiation of that. But we expect that over the next even years, we've got a lot of room to run with Google to really secure and help our customers. >> Sunil talk about the way that you're riding on right now because obviously, the reality is and I won't use the term new normal, but the new reality is COVID has forced everyone to look at basically an unexpected disruption that no one saw coming. Yeah, we could we can prepare for disasters and floods and hurricanes and whatnot. But this is unforeseen. Everybody working at home. I mean, I can imagine all the VPN vendors freaking out who even needs a VPN? So the access methods is everything. It's mobile, home, home is new office. It's not just connect to an access point. My son's gaming, my daughter's watching Netflix, I'm trying to do some video conferencing. It's a mix of consumer business all happening. This is a complex environment now. What does this mean, this relation? How does this connect the dots? Can you expand on that? >> Yeah, I mean, I think I hinted on this a little bit at the beginning, is that we think this is an unprecedented opportunity to help accelerate digital transformation that otherwise would have taken a few years for many enterprises to get to, that can now be done, potentially, in months. And for some customers, maybe even in weeks. And some examples of that, that we've seen are that look, if you just take Google as a company, to Orion's point, look we invested many years worth of technology and IP that now we're slowly bringing out in the form of beyond Corp, product sets, but essentially of the fact that look, we should treat every employee as if they were a remote worker. We don't trust the network, we basically break transitive properties, which was one of the foundational issues with security in the enterprise, where I trust network and the network is trusted by a desktop. And then if you penetrate one, you can penetrate everything else in the chain. And so when COVID hit, we went from, essentially pretty much 100,000 plus employees working in distributor headquarters, but within the Google environment to working from home within a week later, but retained the same sort of, not productivity levels just, but actually the same safety levels that were much stronger. And so in many cases, what we are now seeing is that even though enterprises have come forward and said, "Look, yeah, we have some patchwork solutions "just because this is a major change for us. "Now that we are in it "for not just three months or six months, "but potentially a longer period of time, "why not take the opportunity "to replatform our security environments "so that we can actually be in a better state, "when we actually exit out of this environment. "Where we might actually never go back full time, "but it can actually be a hybrid run." So that's part of the reason why I think we're so jazzed about the partnership is that these are two examples of products coming together to help replatform at least one sets of traditional, if I can call it weak links in the security ecosystem that can now be sort of repacked. >> I was doing an interview actually, last week, and I was kind of riffing on this idea. This is one big IoT experiment. I mean, people are devices here, everyone's connected, but it's all remote, it's change the patterns of work and traffic and all kind of paradigms. But this brings up the issue of the customer challenge. Everyone's going to look at their environment saying, "Look, we now know the benefit of Cloud, it's clear, "but I got to rethink the projects that are on the table "and get rid of the ones that aren't going to be relevant "to where the world has shifted." It's not even a question of Digital Trends. It's like, okay, what am I doubling down on and what am I going to eliminate from the picture. So I got to ask you guys, if you guys can comment if I'm a customer, that's what's going through my head I got to survive, reinvent the foundation and come out with a growth strategy with a workforce, workplace, workloads, and workflows that are completely different. What's in it for me? What does this mean to me this partnership? So how do you help me what's in it for me? >> So I might take a stab at that. I think that a lot of our customers, if we look at where they were at the beginning of the year, they'd been building on a pretty creaky foundation and just adding more and more layers to it. So in the security side, many of our customers have 20, or 30, or 50, different tools, and many of them are there, because they were there yesterday. They're not actually, if you were going to zero based budget the way you were going to do security, they wouldn't be the tools you'd choose. And the interesting thing about this whole work from home transition, is it is effectively a zero based budget for security because a lot of the tools just basically don't work. So you think about a lot of the network tools and when everybody's working from home, you don't own the network. You think about a lot of even the end point tools that assumed that devices would be behind that network perimeter and now just don't work over the internet. And so when we look at our customers, they're realizing they have to re-platform their security model, anyway. And what they're doing is they're now picking again. And what they get to do is they get to pick the platforms that they now trust in 2020, with the work from home environment as it is. And I think what it gives you as a customer is a huge simplification of your environment. I mean, we talk to people every day, who were used to operating those 20 or 30, 50 tools, and they were spending 90% of their energy, just operating those tools, not actually improving security, and they were falling behind. >> That's a great-- >> If look at what they're able to do now. They actually can go back to a starting point where they think about what is the real threat I'm facing? What are the real platforms I should be choosing today? And we're actually seeing huge increases in our customer adoption of our platform. Because that resistance to change has been removed. People can't resist change anymore. Change has come. And as a result of that, they get to choose what they would like now. >> That's a huge point, I want to just double down on that redirect. And then we'll go to Sunil and his commentary. But I think you just hit the nail on the head. We are seeing the same commentary. You said it really eloquently, but the thing is, is that okay, if you believe what you just said, which I do, going into zero based budgeting decisions, fresh look at everything. The problem is people are looking at the decisions and comparing what the bells and whistles were from the tools. So how do you advise customers to rethink like, "Okay, if it's a fresh look, it's a fresh look." It's not like, okay, with the way we did it before. So a lot of times when you're evaluating products, a group gets together and say, "It doesn't have this bell or this whistle, "because that's the way we did it before." So you get to separate out this idea if you're going to go with that. It's a full fresh look. So how are customers doing that? Cause that's really difficult. >> It's a super relevant question for today's world, because I think you're absolutely right. If you talk to the person who operated the compliance tool in a big bank, and you ask them, "What do you need from that tool?" They very quickly get the things that if you just take the question, which is I need to do compliance for the bank, what do I need to do compliance effectively? And you look at the answer that they give you, which is I need this checkbox here, I need this button here, I need this minutia that I'm used to, to be consistent with what I've been used to for the last 10 years, those two things are not the same. And what we've really been encouraging our customers to do is take a look back at your requirements. So you are processing credit cards, you need to be PCI regulated. You need to be able to answer to your vendors, how many copies of their software you're using. You need to be able to find an attacker who's moving around your environment and do that as quickly as possible. And then let's build from there, what capabilities you need. And let's forget about whether the color scheme of the logo at the top of the report is the same. Let's talk about the core capabilities. And it's a very freeing conversation, actually, because what a lot of people start realizing is they've been maintaining the status quo, for reasons that actually have nothing to do with efficacy. They have to do with comfort, and the curse, and the beauty of the last six months is, no one's comfortable. So I don't care how comfortable you are with your tools, no one I know is comfortable today. And what it's giving us is an opportunity to look past the old school comfort and think about how do we transition to the future. And I think it's actually going to galvanize a lot of positive change. I was saying this before we went on air, but I don't think anybody wished that COVID was the way, that we would end up in a position where people have the appetite for change, but if there's a silver lining in the situation, that's it. And I really think that CIOs and CEOs and CFOs and CSOs, really across the board need to take advantage of the fact that there's a discontinuity here that allows us to throw out the old and bring in things that are much more effective. >> Sunil, that's a great tip for you. Because what he's basically saying is, if you don't focus on the check boxes, because there was reasons why, there's a long list probably RFPs are the same way, but we check in the boxes, okay, throw that out. By the way, you can innovate on those check boxes differently, but still achieve the same outcome, I get that. But for Google Cloud, you guys have a great network. It's well known in the industry, Google's got a phenomenal network, hence powering Android, and all the servers. We know that. With a Cloud player, this is a great opportunity for you guys to be a fresh candidate for this change. How are you guys talking about this internally, because this really is the goalposts have been moved in favor of who can deliver. >> Yeah, I think as both of you have been talking about it, look, I think the way I will maybe color this is, when consumers got to a safer posture with the advent of iPhone, right? Even though it was much more productive, delightful, and there's a bunch of other things. Ultimately, though, if anything, things became safer when you actually did computing on a phone, just because it was an opinionated stack. Ultimately, we believe whether you come to Cloud completely, or you consume some stacks, the more opinionated they are, that's ultimately the only way to reduce these moving parts that expose us to security issues. And that principles apply, by the way in reliability too, right? I mean, you have to simplify stuff for things to actually work at six nines and so forth. So same things apply in security. So imagine a world where every employee now is sitting at home. Maybe two years from now they come back they work in the Starbucks, but we had a virtual Chromebook experience. Because a physical Chromebook, of course, it's our goal to get that out there. Because on one hand, we have the Cloud, which is a full stack opinionated offering, but there's various elements of computing still dispersed in the environment. And you're talking about IoT, eventually, we'll get there, but just look at the employee's laptop or productivity station and imagine the construct of a virtual Chromebook off. And that's an opinionated stack. And that's essentially a variant of what the joint offering between the two companies is essentially aspiring to, is to provide that level of clarity and opinionation that actually genuinely solves for some foundational security issues. And in doing so, you now have a, essentially a opinionated stack close to the user. The enterprise user is a opinion stack via mobile phones close to the consumer user. And for all enterprises from a computing side, there's an opinion stack, whether it be Google or some of the other public Clouds, right. And ultimately, I think the world will move into these few sets of these opinion stacks at various points of control. And at least this particular partnership is around making the first step towards potentially one of those opinionated stacks. Allow virtual Chromebooks like experience for the enterprise users. >> And I think this is the beginning of the wave of the reality that the edge of the network, whatever you want to call it, and you see this with endpoint detection, right? I mean, everything's an endpoint now. I mean, I still think this is one big IoT device and everything's just moving around. So zero trust is a big part of it, Google Cloud, and this relationship brings that to the next level. How does zero trust and Tanium mission intersect here? Because I see some obvious ones we just talked about, but what's the connection? >> Yeah, I think and we'll hopefully talk more about it later in the year as well as we can and come up with more integrations. But at the high level, I think the way to think about this would be, imagine that device as you were talking about having an ability to actually send a strong set of signals, not just for detection and response, but for actually enforcing authentication and authorization as well. Because ultimately, identity needs to intersect with the current stack that we currently have between the two companies. And so when identity of the user, identity of the device, identity of... The context in which someone actually allows a user to access an application, these are all net new things that need to be brought into the solution to then provide both not just a safe way to provide an endpoint detection and response opinionated stack, but to also essentially make that part of an Uber zero trust offering, that a customer can consume, to ensure that, ultimately look, it doesn't really matter whether the employee is at home, they're using their own laptop, they're at Starbucks, they can come back to work, but ultimately they have this virtualized security ring that protects and always constantly authorizes, authenticates, and provides a bunch of this security operations capabilities beyond. >> So anyway-- >> The simple answer is, once we intersect identity and a slew of beyond Corp capabilities into the current offering, that's how the next step towards a more formidable zero trust offering falls. >> Okay, Orion, I'd love to get your thoughts, but if you both can answer this question, that'd be great. I'd love to get your thoughts little gamification here. If you had to put the headline out on this news, not the one on the press release that's like perfectly written. I mean bumper sticker. What is the real meaning of this relationship in this news? If you get to put a headline out there, Think New York Post style maybe or something that's can describe the news. >> I mean, I will admit, I'm not known for being good at sound bites. So I'll give you the one sentence and you can help me pair it down. But I mean, really what it is, is I think Tanium has got the highest fidelity and visibility and control out there. And I think Google's got the best data storage analytics, retention, cross referencing we've ever seen. And when you combine those two things, it's incredibly powerful for our enterprise users. And we've already seen customers where it's been transformative. >> Sunil headline-- (both talking) No, that's fine, protection solid. >> I think it's a much more descriptive nature, frankly, but I think my logical tagline that I just keep sort of the soundbite that I keep referring to is, look, you know, the world needs a virtual Chromebook to really feel safe at an endpoint level. And this is the first instantiation of that core stack that can at least get enterprise to start on that journey. >> I think you guys run something really big here. And one of my personal observations is, one is the complexity of the telemetry coming back and I can see how you would go in there and connecting the dots between Google's back end and your stuff coming together. You need to have that high powered energy from the resource. But also there's a human element, people are working at home, whether you're a teacher, they're getting you getting fished, they're spear fished, they're targeted social engineering. So as people come home, and there's now multiple access points, there's more surface area. So every single endpoint needs to be protected. And I think people in the normal world or outside of the tech industry saying, "Oh, I get it now. "We're not really protected." And this is not just sensor networks or OT technology, OT it's really humans. This is really where it's going, isn't it, guys? >> I chime in and then maybe Orion you should take it there. Cause look, I think we do have a foundational principle here, which says look, as demonstrated in a post code world. But your point, John, whether it be IoT, just to distributed computing in general continues to expand, we should just assume that the surface area for security issues on the expense, right. And rather than trying to do a rakamole of the surface area, what if you could take a foundational approach that actually breaks that relationship between expanded surface area means, expanded exposure to that. And so essentially, the same approach that we took with zero trust, which is, look, we just know we're going to get broken into. So just don't assume that your network is not safe, but still have a secure posture, right? How did that come to be? I think if you can just apply that, more generally into this construct of a distributed enterprise, which says, "Look, the surface area is going to keep going, "but let's break that correlation "between surface area to rates "buy a more foundational construct." That says, "Look, doesn't matter if today it's your, "as you said, this is your device. "Tomorrow, it could be your son's laptop "that you use to actually log into your network "and so forth." But ultimately, though, doesn't matter who you are, where you're accessing it from, what device you're using, or what network you're using, which location, the safety posture is still very strong. >> That's awesome. >> Yeah, I will just add, you're absolutely right. I mean, if you look at a customer I'm thinking about today, and I just heard this from their CIO a couple days ago, but they have one and a half million things they're protecting today, they expect to have over 150 million in five years. And so you look at containerization, cloud mobility, all the work from home stuff, it's just going to make this a more and more complex, highly variant problem, we need to expect that. And I think a lot of people are very frustrated that at the time that expansion is happening, the network essentially did become a control point you couldn't trust anymore. So the thesis that Google had around zero trust, actually became our entire world for most enterprises. When you look at that we do owe customers Quantum Jumps in capability, or they're just not going to catch up. And I think that the theoretical approach that we're taking here, between Google and Tanium lets our customers take one of those Quantum Jumps, where they're going to be seeing a lot more, they're going to be able to trust it a lot more. They're going to be able to allow devices to have access to things based on their current state and based on believing that we can extrapolate whether there's security on that device accurately. And that's something that I think a lot of customers have just never been able to do before. And frankly, I think it takes companies like this to pair up and really invest in joining their technologies to be able to get that fabric that will get our customers materially forward. And I'll just say one other thing. Many of our customers up to literally, three or four months ago, we're in a position where they were spending 60 or 70% of their security budgets on network. There's nowhere to spend that money today that's actually productive. It gives them the ability to refactor what they're doing, and the obligation to do it. Because if they don't do it, I think as, I was describing with the amount of increased assets, the amount of complexity, the lack of network control, if they don't do it, looking at the amount of threat our customers are facing today, they're going to be underwater really quickly. And so I'm proud that we get to get together here and give them a big step forward. And I really, I think there's an obligation on our industry, not to try and re-warm the same stuff we've been doing for the last 20 years and try and serve it to our customers again, but to really rethink the approach because it is a different world. >> Sunil you've been involved in a lot of entrepreneurial ventures, you've been on these waves that were misunderstood and then became understood. This is what we're getting out here and we saying essentially new expectations, we're going to drive that experience, and then ultimately drive the domain. And people will either be out of business or in business. If you're a supplier, I'll give you the final word. you guys are in good position. >> Yeah, I say that, especially in security gone, more so than maybe any other infrastructure space that I've been enrolled in. Most products have been built to solve problems with other products. And as Orion just rightfully pointed out, I think this opportunity gives enterprises clarity and vendors clarity, that look, you really have to take a foundationally, original approach to solve problems that can get customers to, if I can call it a staff function change in their current safety posture, right? And so that's really the core essence of the partnership is to, rather than worrying about solving problems with other products and so forth, is to use this opportunity, like I said, to have an opinionated view, to fundamentally change the security posture of the endpoint once and for all. >> Well, gentlemen, congratulations on a great partnership, expanded partnership. Again, the world is changing. I love this fresh look. I think that's totally right on the money. The new reality, we're here. Thanks for you taking the time to remote in from Seattle and the Bay Area. Sunil great to see you again at Google Cloud. Thanks for coming in. Orion, nice to meet you and good luck with everything. >> Thank you. >> Thank you. >> Okay, this is theCUBE's virtual coverage of Google OnAir next 2020. It's all virtual, virtualization is come in. And don't trust the network. You got to watch those endpoints. Here with Google and Tanium great partnership news. I'm John Furrier host of theCube. Thanks for watching. (upbeat music)

>> Voiceover: Live! From Anahiem, California, it's theCUBE. Covering Nutanix.next 2019 Brought to you by Nutanix. >> Welcome back everyone to theCUBE's live coverage of Nutanix.next, here in Anaheim California, I'm your host, Rebecca Knight along with my co-host John Furrier. We're joined by Sunil Potti, he is the chief product and development officer here at Nutanix. Thank you so much for coming on the show. >> Glad to be here. >> So we are talking about the era of invisible infrastructure and this morning on the main stage there was many many different announcements, new products and adjustments, augmentations to products. Can you walk our viewers a little bit, walk our viewers through a little bit what you were talking about today? >> Yeah, I mean (inaudible) so in fact, our vision really hasn't materially changed over the last few years. In fact, my team always teases me that all I do is essentially change the timeline but the same slideshow is up. But you know, something about vision being consistent and we sort of have broken that up into two major phases, the first phase is essentially to move cloud from being a destination to being an experience. What do I mean by that? Essentially, everyone knows about cloud as being something served by Amazon, or Google, or (inaudible) and ultimately, our belief has been that if we do an honest job of what Amazon or Google provided natively But bring cloud to the customers rather than having the customers go to a destination, Then they can essentially get maybe 60 or 70 percent of that experience but maybe at a tenth of the price or a tenth of the time. And most human beings as you guys know, is that once you get 60 or 70 percent, You're happy and you move on other things. And that's really the first act of this company is to sort of bring cloud to the customers. And in doing so, in my opinion solves one of clouds biggest, you know, perennial issues, which is migration. Because that's essentially what lift and shift, gets in the way, that I've gotta change something that I've invested 20 years in and I've gotta lift and shift it. And if something comes to you, that gap is dramatically reduced, right? And sure, we don't do everything that public clouds do but, like I said, if you can do an honest job of that 60 % then it turns out that most customers now adopt Nutanix looking at public cloud as more of a tailwind instead of a headwind because the more they taste amazon outside the more they want amazon inside. And so, so, that's really the first act of the company. A series of products that allow us to build out a full blown IA stack but also a bunch of services such as desktops, databases, all the usual services. So it's all about increasing the layers of abstraction to the user so they can do one take operations. So, that's the first act. And the second act which is much more a longer term bet for the next decade or so is that if the first act was about bringing cloud to you to replatform the data center, customers are also going to redesign their apps and when they redesign their apps Do you want to do it on an operating system that locks you only into one public cloud? Or do you want to do it in something that can moves across clouds? And that's our second act of the company. And there's a lot of details there. >> John Furrier: So hyper-convergence was a great concept and proved it out, great customer base, core business is humming along, solid, but the growth is gonna come from essentials which is the enterprise in multiple clouds. So I get that. As you guys look and build those products and you're the chief product officer, you have the keys to the kingdom, it's all on you. >> It's in my guide to work out. >> So you're a team. But this is a big pressure, this is the opportunity. As you think about a software company as you guys are shifting from being hardware to software things start to be different so as you start thinking about the act two the convergence of clouds. That really is a key part of it, what you did for the data center, HCI, >> Yeah, totally. >> You're doing HCI for the cloud. >> Yeah, like what does that actually mean? >> So explain that concept. >> No, it's a great question. So, and some of this, obviously, we are struggling through ourselves. But we are not afraid of making mistakes in this transition as you've seen other the last year, we've gone from being in the plans company to a software that runs on third party to being a subscription company, to now running on clouds. All within a span of 12 months, while building a business, right? And sometimes it works, sometimes we pick up ourselves and learn from mistakes and go but to your point I think, we're not afraid to become an app on somebody else's operating system. Just like Microsoft said "Look I'm gonna release office, "on Mac or Ipad before I even do it on Windows," that kind of thinking has to permeate and pretty much, in my opinion, every technology will end up going forward. A good example of that is look, if somebody wants to consume their applications that they built on Nutanix on premise but their idea was look they don't wanna be in the data center business tomorrow without changing the apps they should be able to take that entire infrastructure and applications and consume it inside Amazon's fabric because they provide a bunch of other services as well as data centers. So, a recent announcement of Nutanix in AWS not on AWS for a reason is an example of us becoming an app on somebody else's operating system. That's an example of us transforming further away from being an infrastructure only or an appliance only company. >> What does this mean for your customers and your partners because you guys have taken an open strategy with partnering, the HPE announcements, very successfully off the tee, in the middle of the fair way as we say, looking good. That seems to be the trend, others taking a different approach, you know that is, owning it all. >> Yeah yeah, in fact I would say that look, in some way, internally we joke about ourselves, as we have to prove the... You know, we always used to think about ourselves as a smart phone for the enterprise, consumerizing the data center. But we had to prove that model by owning the full stack like Apple did, but over a period of time, to democratization happens, by distribution. And so in some ways, we have to become more of an android like company while retaining the best practices of the delight and the security of an apple device. So that's the easiest analogy where, We're trying to work with partners like Dell, Lenovo, and now increasingly, Hitachi, Fujitsu, Inspur, Intel, everybody is signed up, just because everybody now knows that the customers want an experience. And now the lastest relationship with HP takes it to the next level now where we want to bring essentailly super micro like appliance goodness one click from away upgrades, support, everything. But with a HPE backed platform, that both companies can benefit from. >> You know, one of the big complaints from customers, I hear, on theCUBE, and also privately is there's so many tools, and management software, I've got management plane for this, I got this over here, >> For sure... >> So there's kinda this toolshed mentality of, you know, a new hire, learn this tool for that software, people don't want another tool, they don't want another platform. So, how do you see that, how do you address that with going forward, this act two, as you continue to build the products what's the strategy and what's the value proposition for customers? >> I mean, think it's no different than I think how we sort of launched the company in the first place which is there's no way you can say we'll simplify your life without removing parts. That was the original Steve Jobs thing, right? The true way to simplify is to remove parts, right? And essentially that's what hyper-convergence has done, it just we're doing this not just for infrastructure but for clouds because when you use Nutanix you throw away old computer, you throw away old storage, you throw away old (inaudible) I mean, that's the only way to converge your experience down to one tool. You can't stitch together ten tools into this magical fabric, I mean it doesn't work that way. But that's hard, because not every customer is ready to do that, every partner is ready to do that they've got their own little incumbencies. But that's the journey we're on, it's a right of passage for us, we have to earn it the old fashioned way and we've done reasonably well so far. >> So you mentioned Steve Jobs, he also said, when he was alive, in an interview, on the lost interviews on Netflix, I watched that recently. He said, also software gives you the opportunity to move the needle on efficiencies, and change the game, much more significantly then managing a process improvement which can give you maybe 30% yield. He's saying you can go 60s, 80% changeover with software. This is part of your strategy, how do you guys see Nutanix in the future, with the software lead or approach, changing the game for IT? >> I think clearly, software is fundamental, I mean the whole point of us, our product was I think, we have some folks on the platform group that help make sure that the software runs because software has to run somewhere, by the way. It doesn't run in air, it runs on hardware. So let's not under emphasize hardware for that reason, but, most of our IP has been in software. But I would say that the real thing for us that has kept us going is design of software which is essentially also, when you go back to the Apple thing, because a lot of software renders out that too. It's how you design it, starting with why, rather than just going to the how, is how we see ourselves differentiating what we deliver to our customers over the next 5 years. >> Rebecca Knight: I want to ask you about innovation and your process because here you are, you're the Chief product officer at this very creative company, I wanna know, what sparks you're creativity, where do you get your ideas? Of course you're gonna say, "I talk to customers, "and I find out their problems", but where do you go for inspiration? >> Yeah, I think it's an age old problem I'll give you my personal answer, I don't think it's representative of everyone in the company obviously. And that's one of the good things with Nutanix each of us have their own point of view and things, right? We have this term of "let chaos reign and then reign in chaos". Right? To some extent. That has been done well at other companies like Google, and so forth. So, I've always believed in a couple of vectors for inspiration. The most obvious one is to listen to others. More than talk. Whether it's listening to customers, listening to partners, listening to other employees with other ideas and have a curated way to do that because if you only listen to customers you build faster horses not carts, as Henry Ford said, okay? So that's the what I would call a generic theme and you'd think that it's easy to do so, but it's very hard to truly listen from signal from the noise by the way. So there's an art there that one has to get better at. But the DNA has to be there to listen that's the first thing I would say. The second thing which I think is maybe deeper, and that's probably more in the... The first one applies to maybe 1% The second one, probably applies to .001% which is having intuition of what's right. And this ability, people call it, I don't know, big words like vision and so forth the ability to see around corners and anticipate, you know, my old manager, a guy that I respect a lot, Mark Templeton who was the CEO for Citrix, used to always ask this question "Do you know why Michelin has three stars? "The first star is for food, obviously, "there has to be good food. "The second star is for service. "The third star, not many people know why it's for" According to him, and I haven't really checked it yet, I haven't really eaten in too many Michelin three star restaurants, is anticipation. And product strategy is a little bit like that, right? So to me, that's where Nutanix really trumps the competition. Is that second dimension of intuition. More so than even, listening to customers. >> It's seeing around those corners, and knowing which way the winds are blowing. >> Totally. >> One of the other things that we're talking about a lot about, here on theCUBE, particularly at this conference, is the importance of culture. Nutanix...we had Dheeraj on this morning talking about the sort of playful nature that he tries to bring to the company, and that really has filtered down, how would you describe the Nutanix culture and how do you maintain the culture? >> So I think, we... I'll tell you personally, the journey that I was on, that there were a couple of things that I brought to the table, a couple things that I learned myself, as well as what I could see, a couple things that you'll see in a company that has been built by founders, in my opinion, I'm not a founder, or entrepreneur myself, but I've seen them in action now, is they bring one dimension that I've not seen in big company leaders, which is continuous learning. Because that's the only way they can stay in the company when it goes from 0 to ninety, right? And the folks that continuously learn, stay. If they don't, they leave and we get professional leaders. So, continuous learning, if it can be applied, to the generic company becomes an amplifying effect now. People can learn how to grow, look around the corners, they can learn things, that otherwise they aren't born with, in my opinion. So I think that's one unique dimension that Nutanix I think, inculcates in a lot of people, is this continuous learning. The other dimension, which I think, everybody knows about Nutanix being this humble, hungry, honest, with heart, you know those four words sort of capture the, a sense of, the playful, authenticity. But I think we're not afraid to be wrong. And, we're not afraid to make fun of ourselves. We're not afraid to be, I guess, ourselves, right? And that, I think is easy to say, but very hard to do. >> John Furrier: You learn through your mistakes as they say, learn through failure. So, you mention intuition. What does your intuition tell you about the current ecosystem as the market starts to really accelerate with multi cloud on premise private cloud, which by the way, good intuition, of course we keep on, at the first private cloud reports dominion and team, they got that right. The waves are coming and they look different. There's gonna be more integration we think. What does your intuition tell you about these next couple waves that are gonna come in to the landscape of the tech industry? >> Yeah, I mean I think, since I do want to come back on theCUBE again and again, and have something left over, I will say one thing though, is I think the gain in multi cloud is going to move up the stack, okay? That's where the next set of cloud wars are going to be fought. Is whose going to provide not just a great database as a service, but a great database itself. Because, Oracle's time's up, as far as I'm concerned, right? And you're going to see that with many traditional software stacks, some of them are Sass stacks that have been around for 20 years, by the way. Some of the largest Sass companies have been around for 20 years. It's time for a reboot for most of those companies. >> How about the Edge? What does the intuition tell you on the Edge? Certainly very relevant, you've got power, you've got connectivity expanding, Wifi 6 around the corner, we've seen that. 5g, okay, I buy it. But as it really starts to figure itself out, it's just another note on the network. What's your intuition tell you? >> Yeah, I mean, this is one area that I'm not too deep in, I've got other guys in my team who know a lot more, but, my intuition tells me, the more things change, the more they'll remain the same, in that area, right? So don't be surprised if they just end up being another smart phone. You know, its got an operating system, it runs apps, it's centrally controlled, talks to services in the back end, I see no reason why the Edge should be any different, if that make sense. >> John Furrier: Yeah, exactly. Then data, big part of it. Big part of your strategy, the data piece, >> Of course, of course, yeah. I mean I think data being a core competency of any company is going to stand out, I think in the next 5, 10 years. >> John Furrier: Awesome. What's going on at the show? What's been your hottest conversation in the hallways, talking to customers, partners, employees, what's some of the trending conversation? >> I don't know, this conversations pretty interesting! (laughs) >> Of course! >> Rebecca Knight: We agree! (Laughs) >> My intuition is telling me this is a good conversation! Hope it comes out good! >> Keep using that word man. >> I love it! >> Anyway, always great to be with you guys. >> Sunil, thank you so much for returning to theCUBE. >> Anytime. >> I'm Rebecca Knight, for John Furrier, we will have much more from Nutanix.next coming up in just a little bit. Stay with us. (upbeat music)

>> Live from London, England, it's The Cube covering .NEXT conference Europe 2018. Brought to you by Nutanix. >> Welcome back to London, England. This is The Cube's coverage of Nutanix .NEXT 2018. 3,500 people gathered to listen to Sunil Potti. >> Thanks, Stu. >> For the keynote this morning, Sunil's the chief product and development officer with Nutanix. Glad we moved things around, Sunil, 'cause we know events, lots of things move, keynotes sometimes go long, but happy to have you back on the program. >> No, likewise, anytime. >> All right, so, I've been to a few of these and one of the things I hope you walk us through a little bit. So Nutanix, simplicity is always at its core. I have to say, it's taken me two or three times hearing the new, the broad portfolio, the spectrum, and then I've got the core, I've got essentials, I've got enterprise. I think it's starting to sink in for me, but it'll probably take people a little bit of time, so maybe let's start there. >> I mean, I think one of the biggest things that happened with mechanics is that we went from a few products just twelve months ago to over ten products within the span of a year. And both internally as well as externally, while the product values are obviously obvious, so it's more the consumption within our own sales teams, channel teams, as well as our customer base, needed to be codified into something that could be a journey of adoption. So we took it customer inwards, in about a journey that a customer goes through in adopting services in a world of multi-cloud, and before that, before you get to multi-cloud, you have to build a private cloud that is genuine, as we know. And before we do that, we have to re-platform your data center using HCI, so that's really if you work backwards to that, you start with core, which is your HCI platform for modernizing your data center and then you expand to a cloud platform for every workload, and then you can be in a position to actually leverage your multi-cloud services. >> Yeah, and I like that. I mean, start with the customer first, is where you have and I mean the challenge is, you know, every customer is a little bit different. You know, one of the biggest critiques of, you know, you say, okay, what is a private cloud? because they tend to be snowflakes. Every one's a little bit different and we have a little bit of trouble understanding where it is, or did it melt all over the floor. So give us a little bit of insight into that and help us through those stages, the dirty, the crawl-walk-run. >> Yeah, I think the biggest thing everyone has to understand here is that these are not discrete moving parts. Core is obviously your starting point of leveraging computer storage in a software defined way. The way that Amazon launched with EC2 and S3, right. But then, every service that you consume on top of public cloud still leverages computer storage. So in that sense, essentials is a bunch of additional services such as self-service, files, and so forth, but you still need the core to build on essential, to build a private cloud And then from there onwards, you can choose other services, but you're still leveraging the core constructs. So in that sense, I think, both architecturally as well as from a product perspective, as well as architecturally from a packaging perspective, that's why they're synergistic in the way that things have rolled out. >> Okay, so looking at that portfolio. A lot of the customers I work with now, they don't start out in a data center, they've already moved past that, right? So they are leveraging a partner, the public cloud, they might not even be running virtual machines at all anymore. How does that fit into your portfolio? >> Yeah, I mean, increasingly what we are realizing, and you know, we've done this over the last couple of years, is for example, with Calm, you can only use Calm to manage your public clouds without even managing your private cloud of Nutanix. Increasingly with every new service that we're building out, we're doing it so that people don't have to pay the strategy tax off the stack. It needs to be done by a desire of I want to do it versus I need to do it. So, with Frame, you can get going on AWS in any region in an instant or Azure. You don't need to use any Nutanix software. Same thing with Epoch, with Beam. So I think as a company, what we're essentially all about is about saying let us give you a cloud, service-like experience, maybe workload-centric. If it is desktops and so forth. Or if you are going to be at some point reaching a stage where you have to re-platform your data center to look like a public cloud, then we have the core, try and call it platform itself that'll help you get there as well. >> So, looking at re-platforming that data center. If I were to do that now for a customer I wouldn't be looking at virtual machines, storage, networking, I'd be looking at containers or serverless or you know, the new stuff. Again, what is Nutanix's answer to that? >> Yeah, I mean, I think what we've found is that there's quite a bit of an option, obviously, of cloud-native ads, but when it comes to mainstream budget allocation, it's still a relative silo in terms of mainstream enterprise consumption. So what we're finding out is that if you could leverage your well-known cloud platform to not create another silo for Kubernetes, don't create another silo for Edge or whatever the new use-cases are, but treat them as an extension of your core platform. At least from a manageability perspective and an operations perspective, then the chances of you adopting or your enterprise adopting these new technologies becomes higher. So, for example, in Calm, we have this pseudonym called Kalm with a K, right. Which essentially allows Kubernetes containers to run natively inside a Calm blueprint, but coexist with your databases inside of EM because that's how we see the next-generation enterprise apps morphing, right. Nobody's going to rewrite my whole app. They're going to maybe start with the web tier and the app tier as containers, but my database tier, my message queue tier, is going to be as VMs. So, how does Calm help you abstract the combination of containers and VMs into a common blueprint is what we believe is the first step towards what we call a hybrid app. And when you get to hybrid apps, is when you can actually then get to eventually all of your time to native cloud apps. >> You know, one of the questions I was hearing from customers is, they were looking for some clarity as to the hybrid environments. You know, the last couple of shows, there was a big presence of Google at the show and while I didn't see Google here on the show floor, I know there was an update from kind of, GCP and AHV. Is Google less strategic now, or is it just taking a while to, you know, incubate? How do you feel about that? >> So the way that you'll see us evolve as we navigate the cloud partnerships is to actually find the sweet spot of product-market fit, with respect to where the product is ready and where the market really wants that. And some of it is going to be us doing, you know, a partnership by intent first and then as we execute, we try to land it with honest products. So, where we started off with Google, as you guys know, is to actually leverage the cloud platform side, core locator with Google data centers and then what we we've evolved to is the fact that our data centers can quote-unquote integrate with their data centers to have a common management interface, a common security interface and all, but we can still run as core-located ones. Where the real integration that has taken some time for us to get to is the fact that, look, in addition to Calm, in addition to GKE kind of things, is rather than run as some kind of power sucking alien on top of some Google hardware, true integration comes with us actually innovating on a stack that lands AH3 natively inside GCP and that's where nested virtualization comes in and we have to take that crawl-walk-run approach there because we didn't want to expose it to public customers what we didn't consume internally. So what we have with the new offering that now is called Test Drive is, essentially that. We've proven that AH3 can run a nested virtualization mode on GCP natively, you can core locate with the rest of GCP services, and we use it currently in our R&D environment for running thousands of nodes for pretty much everyday testing on a daily basis, right. And so, once customer interview expose that now as an environment for our end customers to actually test-drive Nutanix as a fully compatible stack though, on purpose, so you have Prism Central, the full CDP stack and so forth, then as that gets hardened over a period of time, we expose that into production and so forth. >> So there's one category of cloud I haven't heard yet, and that's the service providers. So Nutanix used to be a really good partner for service providers, you know, enabling them to deliver services locally to local geography, stuff like that, so what's the sense of Nutanix regarding these service providers currently? >> Yeah, I think that frankly, that's probably a 2019 material change to our roadmap. It's your, the analogy that I have is that when we first launched our operating system, we fist had to do it with an opinionated stack using Supermicro. Most importantly, from an end-customer perspective, they got a single throat to choke, but also equally importantly, it kept the engineering team honest because we knew what it means to do one pick-up page for the full stack. Similarly, when we launched Xi, we needed to make sure we knew what SREs do, right. That scale, and so that's why we started with our version of SMC on, you know, as you guys know with Additional Reality as well as partners like Xterra. But very soon you're going to see is, once we have cleared that opinionated stack, software-wise we're able to leverage it, just like we went from Supermicro to Dell and Lenovo and seven other partners, you're going to see us create a Xi partner network. Which essentially allows us to federate Xi as an OS into the service providers. And that's more a 2019 plus timeframe. >> Yeah, speaking along those lines, the keynote this morning, Karbon with a k talked about Kubernetti's. Talk about that, that's the substrate for Nutanix's push toward cloud natives, so-- >> Yeah, I mean, I think you're going to hear that in the day two keynote as well, is basically, customer's want, as I said, an operating system for containers that is based on well-known APIs like Kube Cattle from Kubernetes and all that, but at the same time, it is curated to support all of the enterprise services such as volumes, storage, security policies from Flow, and you know, the operational policies of containers shouldn't be any different from Vms. So think about it as the developers still a Kubernetes-like interface, they can still port their containers from Neutanix to any other environment, but from an IT ops side, it looks like Kubernetes, containers, and VMs are co-residing as a first-class option. >> Yeah, I feel like there had been a misperception about what Kubernetes is and how it fits, you know. My take has been, it's part of the platform so there's not going to be a battle for a distribution of Kubernetes because I'm going to choose a platform and it should have Kubernetes and it should be compatible with other Kubernetes out there. >> Yeah, I mean, it's going to be like a feature of Linux. See, in that sense, there's lots of Linux distros but the core capabilities of Linux are the same, right. So in that sense, Kubernetes is going to become a feature of Linux, or the cloud operating system, so that those least-common denominator features are going to be there in every cloud OS. >> Alright, so Kubernetes not differentiating just expand the platform >> Enabling >> Enabling peace. So, tell us what is differentiating today? You know, what are the areas where Nutanix stands alone as different from some of the other platform providers of today? >> I think that, I mean obviously, whatever we do, we are trying to do it thoughtfully from the operational, you know, simplicity as a first-class citizen. Like how many new screens do we add when we use new features? A simple example of that is when we did micro-segmentation. The part was to make sure you could go from choosing ten VMs to grouping them and putting a policy as soon as possible as little friction of adopting a new product. So, we didn't have to "virtualize" the network, you didn't need to have VX LANs to actually micro-segment, just like in public cloud, right. So I think we're taking the same thing into services up the stack. A good one to talk about is Error. Which is essentially looking at databases as the next complex beast of operational complexity, besides. Especially, Oracle Rack. And it's easier to manage postcrest and so forth, but what if you could simplify not just the open source management, but also the database side of it? So I would say that Error would be a good example of a strategic value proposition or what does it mean to create a one plus one equals three value proposition to database administrators? Just like we did that for VIR vetted administrators, we're now going after DBS. >> Alright, well, Sunil thank you so much. Wish we had another hour to go through it, but give you the final word, as people leave London this year, you know, what should they be taking away when they think about Nutanix? >> I think the platform continues to evolve, but the key takeaway is that it's a platform company. Not a product company. And with that comes the burden, as well as the promise of being an iconic company for the next, hopefully, decade or so. All right, thanks a lot. >> Well, it's been a pleasure to watch the continued progress, always a pleasure to chat. >> Thank you >> All right, for you Piskar, I'm Stu Miniman, back with more coverage here from Nutanix's .NEXT 2018 in London, England. Thanks for watching the CUBE. (light electronic music)

(digital chime) (camera shutter) (bright pop music) >> Announcer: Live from New Orleans, Louisiana, it's theCUBE, covering .NEXT Conference 2018, brought to you by Nutanix. >> This is SiliconANGLE Media's production of theCUBE, live in New Orleans, Louisiana, I'm Stu Miniman, with my cohost Keith Townsend, happy to welcome back to the program, fresh off the keynote stage, marching band, you know, floats coming in, Mardi Gras atmosphere, and a slew of new products and updates. Sunil Potti, Chief Product & Development Officer at Nutanix. Sunil, thanks for joining us. >> Yeah, likewise Stu, anytime. >> Alright, so a lot that you covered in, so let's get into it, start with, you know, some of the broad company updates. We've been talking about this journey for making everything invisible. I'm waiting, the next time you're going to have the invisible man. Is a... no, no, no, you're putting the IT person forward. >> Yeah, you know we talk about that continuum between all the way from mainframes to like, whatever, HCI to now we've got cloud instance, hyper-converge, then cloud, and then there's functions. Then eventually we'll have NaaS, which is nothing as a service. Right, something like that, but I mean our journey I think of invisible infrastructure started off at hyper-convergence, so computing storage, and essentially it's just increased layers of convergence is how we see it, so if you can converge the networking stack, we converge the automation aspects, then we go in invisible data centers, and then eventually if you hyper-converge the cloud, CapEx and OpEx, public cloud, private clouds, distributed clouds, then you get an invisible cloud. So it's essentially, I think that's really how we've sort of professed this conference is invisible infrastructure evolving to invisible data centers to evolving to invisible clouds. >> You know, so Sunill, one of the things, if we've been talking to your customers, the question is, "Who is the Nutanix customer?" So, when we talked about kind of HCI, even before it was HCI, let's get ourselves out of the silos, you were working with the administrators and the architects. You've built some of these things, you know, you've got a new SaaS offering, you've got micro-segmentation. You're touching more of the business, and sometimes going up the stack too. >> Yeah, yeah, yeah, yeah. >> Who do you see as the primary customers? >> Yeah, I mean, I think for us, you know, if we just stayed as a broad HCI platform play, then we would probably be slowly making up our way of, between the server guys and the storage guys and maybe the director of infrastructure and so forth. And a lot of it has been groundswell movement for Nutanix over the last six, seven years, right? But, you know, this is what I talk about it to our customers, like when you actually go to cloud on AWS or GCP, there is no storage admin, there is no server admin, there's no one. There's only a cloud architect, and so I think that's what we've seen over the last few years is this evolution to this one single org called the cloud org within enterprises, and then you heard me say this before about this, you know eventually as we move up, our value up the stack, as we go from invisible infrastructure to clouds, our relevancy is also growing to the CIO, because the CIO can now be the CAO, which is the Chief Amazon Officer, or the Chief Alphabet, or the Chief Azure Officer, essentially the Chief Cloud Officer, where we can help them blur the lines between AWS inside, which is Nutanix, and then AWS outside. >> Yeah, I love that, because when we talk to customers, it's not "I'm building out "my multicloud, hybrid cloud, composite," whatever you want to call it, it's "We're "figuring out our digital transformation, "and we've got applications, we've got stuff we're SaaSifying, "there's cool things I've built, you know, "in the public cloud, and I've got, you know, "my data center and the transformation that "I'm going through there." So, the question I have for you is, what is Nutanix's position in the cloud? I didn't hear you going up on stage saying you're going to put five to 10 billion dollars a year into building out data centers and availability zones, and all those things there. Sometimes people misconstrue some of the journey and things like Zy, and they're like, "Oh, it rhymes with what Amazon's doing," or even many times, you know, similar services to an Amazon there, but partnerships with the public cloud providers, and you know, please help us set the record straight, that you're not standing up a public cloud. >> Yeah, I think look, we think increasingly the world, of the world of clouds is a dispersed world, right? I mean, you had to say that we think this construct called the core cloud, which is essentially both, you know, a private version and a public version that's harmonized together into this one enterprise core cloud, but then increasingly we are seeing cloud-like architecture in a remote office branch office or in a retail store, so we call that the distributed cloud, and then it's also with IOT especially, it's getting extended all the way to the edge, whether it be a one-node Nutanix deployment talking to a data center of clusters talking to GCP for machine learning. So we think that the world of clouds is going to emerge as the de facto standard, and public cloud just happens to be a big percentage of that. Private cloud will also be a decent percentage of that. So will these other clouds, so what we need is, I guess, one OS to bind them all, right? And that's the end goal for what we're embarking on, so one of the things that we've recognized is that one of different kinds of clouds is an extended enterprise cloud, where instead of having two primary data centers and two secondary data centers, and then having five cloud availability zones, why even be in the secondary business? What if the secondary data centers were subsumed into a cloud as a service, but you retained the same operational tooling as your primary data center? And that's really where Zy's footprint comes in is, it's to augment what a customer is going through's journey of private cloud or public cloud to this distributed cloud environment, that there will be some news cases that need to be fulfilled using the same cloud architecture. >> So Sunil, let's talk about the customer journey alongside Nutanix's journey. You guys are walking, term I heard a lot so far in the conference is, Nutanix is our partner, our partner in this journey in digital transformation. However, the customer today is very much infrastructure customers. You guys talk to developers, internal customers of your customers. What has been that story, and what has been that conversation? What have, what have you guys learned, and what have you taught your customers along the way? >> I mean I think it's, look we generally know, as I've mentioned on stage today, that we're in another decades worth of journey, as we go from invisible infrastructure to invisible clouds. That's not going to happen in six six months or so, but what we're finding is that, in the last, I would say four to five years, the view of what cloud can be used for, the "why" of cloud has changed. Initially, there used to be, "Oh, I need to get past IT," by developers, then it eventually became, "Oh, no, no, no, I need to use it as a way to, you know, to deliver a better IT." Now it's being used as a way to actually drive my business. And that's why we use the word digital transformation, just because it's a direct connotation to driving the top line, right? So, when you look at our customers and the journey that we're on, we also want to set expectations of what we are versus what we are not, right? So we're not about enabling the applications to be built, in the sense that, you know, we're not application software companies, but at the end of the day though, if we can abstract out all the, if I can call it, issues below an app and allow IT or the business to focus on a new org that we're calling, you know, the CIO and the CTO merged to be the CDO, right, the Chief Digital Officer, that becomes one org, and that's what we're seeing with many of our large customers is, many of our customers are, their orgs, either they were in the CIO organization, or the infrastructure organization, or the cloud organization, they're all now being merged into the CDO org, and the goal then becomes for it to power a digital transformation through various apps, but with our, essentially leveraging infrastructure as a boat anchor, right? It's more of an accelerator at that point. >> So, there's debate on where that ends, like you know, we can talk about with edge computing, like where does edge start and the core begin. The same thing with infrastructure. You guys made a really interesting announcement around your capability with databases today and being able to, I don't even know the term but, to put a prism-like experience to databases. Talk about those areas around what we've considered traditionally infrastructure, storage network compute, going to this middleware layer, where do you think you can help customers simplify their journey? >> I mean, I think just to recap, some of the ways that we've, you know, approached this year is, look we think about it as three layers of the cloud stack, which is we had computer storage virtualization and we sort of completed the IA stack with our Flow product, which delivers one-click secure networks. And then for the first time, even though our stack is good for running third-party workloads, just like the public cloud runs a lot of PaaS services, increasingly in enterprises, customers are asking for an opinionated view of a PaaS service. So we do have third-party partnerships with Cloudera, Hortonworks, a whole bunch of other third-party providers, but the core database workload, especially with Oracle being such a complex beast, but it's mainstream, the customer has said, "Look, "can you provide a one plus one "equals three kind of solution "for the world of database?" And that's what Nutanix Era is, and that sort of becomes sort of cornerstone of our first PaaS service, where we're trying to simplify database operations, including things like Oracle RAC, and that's what we demonstrated was to actually provision Oracle RAC in minutes, make clones, create dev instances, and democratize databases for the rest of developers using APIs. So that's the sort of evolution of the stack for us with Nutanix Era, and then we didn't stop there. We also sort of innovated with our first Nutanix SaaS service, with this product called Beam with the acquisition of Minjar, which essentially says, look multi-cloud needs to start with stability, and then obviously you enable control and then you add operational automation, and then visibility and so forth, right? So, with Beam there, it's sort of, sort of sets the stage for the fact that we can now add more to the multi-cloud portfolio. >> Sinil, Beam's an interesting one. Your first SaaS offering. Keith and I were talking before this. There are lots of companies out there that are trying to tackle this challenge. >> Sunil: Yeah, yeah, yeah, yeah, absolutely. >> With that have, you know, every single platform company out there is trying to tackle this, and then there's lot of independents. There's a lot that goes into, you know, maintaining, advising, you know, the whole consultancy world has spent decades doing this. How do you balance product development efforts there versus, you know, your core platform? You know, should this be an indication that you're going to build out a SaaS portfolio in the future? >> Got it, got it, got it. I know, that's a great question. So, so I think, just to take a step back, Minjar was an interesting company, because Netsil, the other acquisition, is also a bought in the cloud SaaS service that will integrate for hybrid, you know, visibility and networking, but also stand-alone application operations. But Minjar had this interesting history where it was originally a high-end advisory service for AWS. >> Stu: Right. >> It was in the top-five service partners for AWS, and they actually had dozens of customers that they still operate and manage and provide, you know, get a lot of learnings from helping customers, sort of, they are like the Navy SEALS of AWS and so forth, right? And when they built this product, which is now called as Beam, what we think about it is that, look that particular capability is a feature of a platform. It's not a stand-alone product category. What people are going to be looking forward to is a multi-cloud operational fabric, that has an app store and a marketplace, where I can go in and consume services, whether it be on prem or off prem, have a single pane of glass for visibility, again on prem or off prem, and then do one-click automation or orchestration, right? And so the fact that this single pane of glass has to cut over on prem as well as public cloud is the reason why we believe Nutanix has a play here to kind of make it a core feature, because we at least own one pillar of it, which is the on-prem stack, and to the extent that we can do an honest job of extending it to a deep job on AWS and DCP and others, then I think there's value added. >> How do you get closer to the application? When I look at this space, Oracle, IBM, and Microsoft have all been talking some similar messages on this, and that, the cloud strategies that they've gone through have that operational model, and you know, they own these applications, so you know, why Nutanix? >> Yeah, I mean I think it's another interesting question. So look, I think the world of apps, and I would say that power shift is happening obviously. We know that with IBM, but even with Oracle, as a mainstream enterprise app, if you really look at, say a public cloud conference, especially AWS's conference, if anything, the only vendor that they take potshots at is Oracle, because they see it as long-hanging fruit in the enterprise from a complexity side, right? And I think with the advent of cloud, the first time the customers have seen a real alternative to move away from this SQL engine on Oracle to potential Postgres or other alternatives. But to do that, you need abstractions. I need to be able to simplify my current environment of Oracle. At the same time, do it in a way that I can actually harmonize the API so that, oh, at some point, can I actually create another instance, but it's on Postgres, right? And the more I can provide that abstracted APIs, the more, you know, flexibility that's there for the customers to actually move from this legacy apps to the next generation apps. So I think, I guess the simple answer to your question is, look for us, even if you're not in the app business, if anything it's an asset than a liability, because then we can be completely neutral to the transformation from the old to the new. We have no skin in the game of keeping you in the old architecture, so if a customer says, "Look, I need to manage "my old, but I need an accelerated "way to get to the new cloud-native apps," then we are all for it. >> So Sinil, one of the, I think I would call this one of the first principles of Nutanix is this ideal of want-quick provisioning, the ability to simplify really complex, really hard things. You guys did it with HCI. The database management piece is another example. You're talking about it now, with ACS and the cloud. Let's talk about the, what happens when you zig when you should have zagged. In the case of going with Docker, the leading solution at the time, >> Sure, sure. >> Seemed like the right approach to go, now you guys are zagging. What makes Nutanix capable of making such a quick change and providing the consistent layer, like as customers go along with you on this journey, 6they count on APIs, they count on integrations, they count on just to, that basic capability and that it's stable. What gives customers the comfort level, that you know what, the complex stuff, Nutanix will take care of, if there needs to be a course correction from a culture and development platform perspective, they can right the ship? >> Yeah, no I think to your first question there Keith, I think, look, in this era now, it doesn't matter which business you're in, the time to succeed obviously is accelerated, but the time to fail is also accelerated, right? We just have to internalize that in our DNA. I would say of any high-growth company is to just be honest about failing fast. And I, yeah I mean I think Docker was a thing a year and a half ago, and we were early to market, and in fact, I would say it was our ACs and a couple of guys in Europe who actually recognized that, look why are we focusing on all this, when every customer that I talk to is testing out Kubernetes. And sure, we were sitting in Silicon Valley and Kubernetes was just coming up and so forth, and so I think it's two things, one their internalization that look, we have to fail fast in a high-growth business like ours. And then two, having the sensors that give us indications of, are we in the right course or not is also important. And so, the other thing that I would say that has worked well with this company than my prior companies is the fact that it, while it is hierarchical for scale, it is one inch to end from a communications perspective. Things like Slack, things like the communication mechanism, allow us to have that real-time touch with the front guys that focus on the customers and so forth. So, so for example, once the clarity was there around ACS to kind of zag on Kubernetes, the whole system was able to lean in, because the "why" of doing that was clear. The "what" and the "how" follow, right? I mean that's really what, how we will keep it going. >> Alright Sunil, before we let you you go, I want to bring back to the infrastructure side. You've had a few of the solutions that are growing really fast. I know you've highlighted the AFS, the Acropolis File Services. I've got the new object service that just got announced. At core platform, what are the areas that are catching wildfire for your customers? >> That's a great question, so on the core platform, which is still our bread and butter to some extent, our core focus has been about it becoming like the OS for the enterprise, period, right? And there's no workloads left as an island. And right now if I can, you know, three years ago we were talking about workloads that we're good for. Nowadays, I talk about workloads that we're not good for. So if I'm a scale-up database that requires certification, I can tell you about some of those that we are short of getting certified, but once that happens, there should be no workload that we're not good far. And that's where AFS comes in, that's where object services come in is, these are all requirements in the core OS that are needed to solve for those kinds of workloads. And, one thing though, to Keith's earlier point, that we have tried to keep honest, and that's why some of these take longer to come out, is that they still have to hold the bar of instant upgrades. Start small, start quickly, pay as you grow. They all have to follow the same ground rules, right? And that is what is keeping us honest frankly, in the overall desire. >> Okay, want to give you the final word, as Keith said, your customers consider Nutanix a partner. As they leave Nutanix .NEXT 2018, how should they be considering Nutanix? >> Yeah, no I think leaving Nutanix, they should recognize us as a company that obviously needs to be hungry, that needs to have a bold vision. We, you know, in our core values, we will make mistakes, we are vulnerable. But we are, you know, hopefully transparent about it, so that that's the, at the end of the day, the core essence of a partnership is that level of transparency between two people, right? And that's what we are hoping that customers will take away from the conference. >> Alright, well Sunil, it's always been a pleasure to document everything going at, since the inaugural .NEXT back in Miami, and we'll look forward to seeing you at the next show, where we'll make sure to pin you on, you know, how we've gone first. >> Sounds good. >> Sunil Potti and Keith Townsend. I'm Stu Miniman, be back with lots more coverage. Thanks for watching theCUBE. (techno music)

>> Narrator: Live from Nice, France, it's theCUBE, covering .NEXT Conference 2017 Europe, brought to you by Nutanix. (upbeat music) >> Welcome back. I'm Stu Miniman and you're watching theCUBE's live coverage of Nutanix .NEXT here in Nice. Happy to welcome back to the program Sunil Potti. Fresh off the keynote here, 2200 in attendance here at the second annual European show. Sunil is the chief product and development officer, and Sunil, your team's been busy. >> Yes. >> Product development-- >> Sunil: I hope so. >> 5.5, ton of new features in development, a lot of things going on. So let's step back for a second though, and it's a year after the IPO, I watched The Wall Street guys, they're always like, "Wait, are they boxes, or are they software, "are they infrastructure, are they cloud?" You know, you kind of step back, it's, I liked it, it was, "simplicity takes real genius," and then you're like, to try to appeal to the European cloud, it was "more tea, less clicks." So what's the kind of, as people think of Nutanix, when do we think of you, why do we think of you? >> Gotcha, gotcha. Yeah, I think there's a bunch of moving parts there, but I think our core thesis hasn't changed from where it was pre-IPO, post-IPO, multiple conferences. I think the core thesis as you know, Stu, is that we fundamentally think folks talk about hybrid cloud. Hybrid cloud, the first step is we know public clouds exist, true private clouds haven't been built yet. And they have to be first standardized, commoditized, and then harmonized with the public clouds, right? So I think, from our perspective, the core thesis is the fact that, if you can bottle up the AWS or GCP experience and funnel it inside the data center, there'll be a ton of workloads that stay inside. But with the right experience, for the right cost, right? >> Yeah. >> And essentially, that journey hasn't wavered from our perspective, right? So we're still on that. >> Yeah, absolutely, at Wikibon, we said, you know, cloud isn't a destination, it's really more of an operational model. >> Sunil: Sure, sure. >> So, if we can capture that, as you say, true private cloud, we said, we're starting to get there, and we actually credit Nutanix. So you know, of course, the messaging of enterprise cloud was probably a little bit aspirational-- >> Sure, sure. >> At the beginning, but you're filling in the pieces, you've got the partnerships, you've got the products rolling out, so, let's talk about your bread and butter. You know, what's new, what's launching now, I like that you're as a software company, you show a little bit more. Here's when we test some things out, it's that balance of, for the enterprise it's like, "Wait, is this going to work the way I think it is?" You put stuff out like the community edition first, let people play with it and then you GA it-- >> I think we talked a little bit about it and essentially, rather than me list out a whole series of functionality, I think the way we are also looking at it as well as building it, as well as rolling it out is in the form of what a customer can consume. So we are investing at Nutanix, like, capabilities that cross the life cycle, right? So we're investing and ensuring that communication gets a lot more emphasis because we think this paradigm of one-click data centers is something that people need the ubiquity to kind of play around with, right? So you see community relation from a learning side, then we're looking for capabilities for people to actually say and compare, "Look, Nutanix is one architecture, "we experienced another architecture, "three tiers in other architecture, "maybe public cloud." At some point in time people need the flexibility to actually have in the old world of TPC benchmarks the new world of what I would call production world benchmarks so we had a whole bunch of tools such as X-Ray coming out, then rather than leave it to professional services and so forth, rather than just worry about reducing the number of clicks once you have Nutanix, even before you get to Nutanix, how do you reduce the number of clicks? You get to Nutanix, right? That's where Xtract, which is a very popular tool from us again, that has been shipping for a month, for now, where you can actually click at a certain VM environment, at a certain database environment, and essentially, literally, without a whole bunch of lift and shift move into a private cloud environment, right? >> And my understanding, Xtract is, I could take my VMs really from VM environment to an AHV environment-- >> That's correct. And it also works on databases as well, like SQL databases, and so forth, right? >> Yeah, absolutely, that migration is something that, you know, it's like a four letter word for most people in IT. One of the things that we were early on kind of beating the drum on, is traditional three-tier architecture with the storage, your migration cost was at least 30% of the total cost of ownership because you had to bring data on, eventually you had to take data off, as opposed to, if you really have more like a pool, which is what HCI does, you know, that first, once I get on to it, that's the last time you need to do a migration because now I can move and add, remove, it knows, and we just kind of manage it there. Absolutely the other company I hear talking a lot about this thing is Amazon. You know, they've been working on database migration lots of companies, changing away their environment, and it's something that customers are looking for. >> Yeah, and it's almost like, for us with the public cloud at least you have a genuine sort of big hop in lift and shift, just because of the boundaries. It's a shame if we can't solve that problem without what we call make lift and shift invisible inside the data center at least so that's why we invest in things like Xtract so that people can, look, we're still less than one percent of the market so we expect a whole lot of migration to happen over the next few years. So anything that we can do to kind of accelerate customers to the point of ensuring that their architectural integrity is preserved in terms of environment I think it's a big focus for us. So you're going to see as emphasize Xtract not just for there for VM's or databases to Nutanix on pRAM. We're also going to see that as a fundamental construct for app mobility because imagine Calm as a construct that you're able to go in, proficient work loads and it's on pRAM or off pRAM but at some point in time you want to move them back and forth. You know the thing that we used to always say? "App mobility is slowly coming to fruition "with some of these constructs." >> Calms is the centerpiece of really your multi-cloud strategy. We've talked to some customers that some of the early folks pretty excited about it. A lot of the others have been like, "Okay, well, I've seen some slides and a demo," kind of squinting, looking at it. Reminds me of the early days, "I bet it can't really "do what they say it does." >> I think they have to taste the wine, just like everything else. There were a bunch of early believers who saw the product, who used the product, which we used as an early access program. But we took a step back when we acquired Calm a year ago, we had the choice of releasing a reasonably big product to mainstream. It's been seven years building our product, they had rewritten it two times. So they had already done a rewrite or two. What we took was, we took the time to ensure that it was burned into the Nutanix fabric. It had to fit into a Prism, it had to fit into a life cycle manager, it had to fit into a one-click update. It needs to look and feel like a natural extension versus a power-sucking alien, which is what we've seen with many of our competitor's products where you just buy some things and you put it in there and the more successful it is, the harder it is to homogenize. So we took our time, and that's what you're going to see in 5.5, customers can now actually genuinely use the product. And day one it'll have AHV support, AWS support, very quickly it'll have ESX, and GCP and Azure and it's a separate code train by the way, in a sense that the same code-base but it's being delivered as a service and you're going to see more and more of that paradigm where Nutanix is no longer going to be this blob of capabilities that in itself comes out fast but there's a bunch of microservices now that are going to be released. Not just on the cloud, but also on pRAM. So AFS is a good example, Xtract is a good example, Calm is a good example and now with 5.5 even Prism Central is going to be detached so that you can consume that at a different velocity than the code. >> How do you make sure that you balance that with the simplicity that really is the core piece of your business proposition? >> Yeah, yeah. I mean I think this is where we just have to be measured in ensuring that it's still one single code-base for example. What we want, we can't afford to have 18 different branches. So simple things like that will actually go a long way to make sure that somebody can still go to a console and say upgrade, it checks the right provisions. It's a little bit invisible, sort of like version mismatch of that is our problem, not a customer problem. >> Absolutely, so a lot in 5.5, which we haven't touched there but also really unveiling some of the next step in the journey, what you're working on for the next six months. What's the focus there, ya know cloud is, I think you talked about visible infrastructure to invisible cloud so looks like kind of expanding out and building out some of those cloud services. Take us through some of that. >> So I think the general theme is continue to fulfill our ambition around making infrastructure more invisible and then at the same time in parallel try to make clouds invisible and I'll break it down into three kinds of products. The first one is, we still have our journey, our things cut out to actually fulfill what I would call the A block, the Amazon block for the enterprise, and you can call it the Azure block or you can call it the Alphabet block now that we support multiple clouds. The point being that simple things suggest, we've done a great job of computer storage and virtualization. What about networking? And we've always said look, the problem is not in the data plane not working, top of the ax switches are pretty commodity, they work, you name it. The issue is always in the control plane, when something goes wrong, what are doing wrong, so that's one of the big things coming in 5.5 is built in network virtualization, provisioning, and one-click micro segmentation. And again the point being rather than buy very expensive products such as NSX or some other overlay products where you're virtualizing the network to secure the network. If you go to Amazon, or you go to Google, or you go to Azure not only do they not require to virtualize, the way that micro segmentation is built is genuinely with the simplicity of one click. You take out 10 VM's, put them in a secular group you're off to the races right? And the same paradigm then basically moves to us so in that vein of fulfilling that stack is one dimension. And a couple of key things that are new there that are in the next six months timeframe, not in the 5.5, the fact that when everything's said and done we've got a file service, we've got blocks, we've got containers, everything else, but what about object storage? Sounds obvious, right? So we've taken our time to kind of build a next generation object storage service, not a first generation one that can scale obviously to the levels of webscale that these days customers want, but is deployed with gentle requirements. An example of a gentle requirement is, you can't build an object story service that is simply on pRAM or simply off pRAM anymore. It has to be hybrid from day one. My primary needs to be data locality quote unquote to be invisible under the cover so my primary stuff is closer to my compute whereas my secondary and backup can be pulled out into the cloud. And the same thing applies on, even something much more simpler, which is EC2. What about EC2 for the enterprise? And that's where I think we were inspired to actually go build us Acropolis Compute Cloud, AC2, which essentially says you can take my Nutanix class, computer storage, and all of that, but then only have compute only nodes, and you could have SAB, SK lab requirements, you could have IBM power, you could have Oracle running on those, but they are essentially being managed with that single pane of glass. So this is the first time that you're seeing, based on a customer demand, now EH3 is now almost one of the three nodes being shipped is an EH3 node. We've come a long way in the last two years right? So people covet that simple virtualization, especially if we can, we extend it from a computer only fabric to the hyper-con only fabric. So I think that's one dimension-- >> It's interesting, just happenstance, that in the news recently, Amazon just announced that they're switching from Zen to KVM base so similar. Come on, you couldn't get Amazon to just sign on for AHV? >> No, see I think see what it is is that frankly AHV from our perspective was all about just ruggedizing KVM right, make it storage, Iops work well, the management plan work well, in fact, the fact that AWS is doing that is actually a good sign for us to go deeper with them frankly just as a tangent, rather than just go deeper with say Zi or GCP and so forth just natively as well now with C-fi instances there's an opportunity for Nutanix fabric to kind of seamlessly leverage that because the core constructs are similar with KBM right? So you're going to see some interesting stuff come up there, maybe that's for the next CUBE, the next conference. >> Sunill, it's interesting I've had a chance to talk to a few customers already and we talk about kind of that cloud, everything from the Germans that well I've got governance and compliance and I'm not not doing public cloud to, you've got a customer speaking today in a session that's like "I'm going to do "everything SAS and what I can't do SAS "I'll do infrastructure service," and then there's a little bit of stuff I can't do because I don't have enough network or things like that, and that's when Nutanix fit in for me. Making products and dealing with customers on such a broad spectrum is a little challenging and trying to fit where Nutanix is on that cloud because right if they're buying SAS from a lot of pieces it's like well you're not going to be as critical as opposed to somebody that's like well hey my data center is really my temple and you can help there so-- >> Yeah I think the philosophy that we use in terms of our product strategy and roadmap there is to maybe just give some color on it is it's the curse of the platform. The wealth of the platform which is like we are a platform company and we've internalized that, we're not a simple product company, so a lot of this comes down to what do we not do as well right which is versus what we just do. And one simple filter that we use is, is it directionally in a secular motion for enterprises or not. So a simple example is look, a lot of customers, and we would have probably quite a bit of sales if we simply said look I can take my existing Nutanix class serve, I just bought a three part array, I've bought a narat box, why don't you guys just co-exist with that. But then if you really think about it, it's like AWS coming to you and saying, "Oh by the way, take my service environment, "put my AWS software on it." It's like Apple coming out and saying, "Here's iOS, "I want it on Blackberry." So one click upgrades won't work, it's not the right thing. So there are things like that that we stayed away from that allows us to, even if we are stretched, lean in on the forward looking circular motions such as first, continue to finish the job inside, then harmonize inside and outside, and then go provide specialized services like Zi, in addition to what we're doing with DCP or Amazon, and others. >> Alright, last question I have for you, what's exciting you in the marketplace today, getting your engineers kind of fired up as kind of this next wave? >> Yeah I think look, I think some of the biggest thing is around how apps are now being re-platformed themselves, not just infrastructure and people used to word pass and all that other stuff but essentially I think we are now getting into the golden era, or the initial golden era where IAS re-platforming is more or less known. Now, of course it's going to take you five, 10 years to do it, but I don't think people are debating the way to do that. It's no longer open stack inside, it's no longer hosted clouds and all that crap right? It's two clouds, right? I think that wave has to emerge on the application side as well, you're starting to see some of that with communities, now becoming a defacto for one sliver of it, but there's so many other services that are up for grabs. So I think you're going to see in the next 12 to 18 months and you're obviously going to see Nutanix play a role there, is what does it mean to not hybridize my data center but what does it mean to hybridize my app. And I think there's a lot of interesting opportunity, interesting inspirational stuff there from an innovation perspective that keeps our guys going. >> Absolutely well Sunil, always a pleasure to chat with you, look forward to catching up with you at the next time and we'll be back with lots more coverage here from the Nutanix .NEXT conference in Nice, France. I'm Stu Miniman, you're watching theCUBE.

>> Announcer: Live from Washington, D.C., it's theCUBE, covering .Next conference. Brought to you by Nutanix. >> Welcome back to Nutanix dot Conf, everybody, sorry, .NEXT Conf, hashtag NEXTConf. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm with Stu Minamin. We go out to the events, we extract the signal from the noise. We have a real treat for you, the day two keynote was done by Sunil Potti, who's the head of product, Chief Product Officer in development at Nutanix, long-time CUBE guest. Sunil, good to see you again. Thank you for coming on. >> Yeah, thanks Dave. Good to be here. >> Agree with Stu, great energy in the keynote this morning. Have to say, we got in there, Stu, at around ten of, the place was not packed, but by the time you started, the play was packed. We heard the Lenovo party went till like two a.m. >> Stu: The extent of it. There was some excitement. >> People came in and, yeah, lot of cheering, so you must feel pretty good about that. >> Yeah, now I think, I was telling some of you guys, I think right now we are in our growth years where it sort of feels like we've got a lot of fans because folks want to sort of relate to technology companies that foundationally are disruptive and keep disrupting. It helps folks' careers, it helps their personal lives, everything, right? So, the wipe that we get out of these .NEXT conferences are mostly about this, well, not so young people, they feel young using the technology at work and while at the conference, so that's, I guess, part and parcel of some of the, sort of the excitement that you're seeing probably. >> Well, so let's get into it. I mean, a lot of announcements this week. Where do you want to start? >> I think, that's a big question. There's a lot of stuff. >> Maybe we start with the strategy, which you laid out two years ago, we're not just HCI, we're goin' cloud. So that's sort of the set-up, and you've had a number of proof points and product announcements this week that underscore that strategy. >> I think I'll break this down into four parts, just to structure it, which is, obviously we've moved way beyond HCI, we subsumed virtualization, and then, we said cloud, if you remember 2015, and then we improved on it in 2016 and so forth. The big thing was every few years it gives you an opportunity to truly offer a step function change in transformation with the company, and that's 2017 for us is. That's why the announcements are all so packed, it's not just an incremental set of things. Let me break it down into four segments. One, the first thing is the fact that it truly is clear to us and to our customers that this needs to be this single software-centric fabric that gives you optionality of any hardware platform, any hypervisor, any consumption model, whether it be a pay-as-you go, it could be appliance-driven, it could be pure software ELAs and so forth. And then, obviously with our partnerships with Dell, Lenovo, support of Amazon and Azure, and now Google in a big way from the public cloud side, and I'll come to, but then extending that to our software support on Cisco and HP, and now with IBM, power especially, changing the game in terms of an enterprise worker. The first sort of segment of capabilities is to really make it look like our platform story is becoming an OS that cuts across, if I can call it, all of our applications, deployment full factors while being open. So that's the first category. Let me just maybe quickly summarize, and then we'll come back. >> Perfect. >> The second is the fact that, look, while we we're doing that, we were still taking an infrastructure-centric view, whether it's VMs, containers, whatever it is. So now, what we've found is that fundamentally we need to change the operational construct, elevate it to be an application-centric work, and that's where Calm comes in. Independent of hybrid clouds, just from a private cloud side itself, even if I'm just elevating my current infrastructure to a private cloud, an app-first automation is a good thing, and then, what we've done is in that second category is to merge, quote-unquote, on-prem infrastructure with off-prem using this multicloud thing. That's the second thing, that's Calm. The third thing is the fact that, well guess what, while we can bring provisioning and operational convergence with Calm, true lift and shift is still very high because the stacks on both sides are different within public cloud and private cloud, and that's where Xi comes in, which is our new cloud services. Essentially, it replicates your on-prem stack and seamlessly extends your data center so you can do some things like one-click DL and so forth. And the last but not the least was as we were building Xi, and we'll get into it, Google and Nutanix have started getting really close from a technology integration and a delivery perspective where things like Xi could become ubiquitously delivered, but more importantly, I could take Google Cloud past services and fuse them with Nutanix enterprise solutions. So, those are the four. >> Sunil, let me poke at something. We've heard this story before, broad, lots of choice, let's build an ecosystem, but AHV seems to be a strong component, so Xi, you got to use AHV, you got to use Nutanix replication. It's like you've got lots of choice unless you want to use all these cool things we're doing, in which case you want the full Nutanix stack. >> And I think that's a constant thing for us is, look, at the end of the day, to us lock-in should be by choice, not by need. It's up to us to offer a series of value-added services on our full stack, but customers choose to go to that full stack for value. It's just like on-prem, right? I mean, look, 60, 70% of our enterprise workloads are still ESX-based, Hyper-V is still there, under the cover SuperMicro or NX is no longer 100%, it's coming down. Frankly from a customer perspective of deployment, that's where they start, maybe they'll stay there. We can add value to that environment, but if you use AHV, you get micro-segmentation for free, it's one click. It's up to the customer to choose to use AHV based on the choice at that point. And the same thing applies to Xi as well, saying, look, on day one it'll replicate on-premise to off-premise, but on off-premise, at least on the enterprise side, Stu, we will still support ESX and Multi, you know, essentially the open environment is still a source for us. The target, on day one at least, we can build an honest product without being completely integrated. >> And Sunil, definitely there's choice there, even look at the Google announcement. Well, they've got the HV solution tour if you want to go down the containerization, Kubernetes, that's going to be somewhere. We've been positing that the partnership with Google should help you accelerate that move towards containerization. We know it's early for a lot of customers, but any commentary you can give on virtualization? >> Absolutely, and in fact, I would say containerization sort of expanded to the broader cloud-native workloads aspects, which is to us the big thing that customers came to us, and we've seen that now resonate as they just don't want DR. Obviously, one-click DR is a big deal, if you can pull it off by replicating the stacks. But really what they want from the enterprise side is they want to take enterprise apps that they are elastic, consume them as a cloud service, but co-locate them in such a way, not just in the data center level, but at an application-operations level, application-integration level, so that they can co-reside as if they were on the same node with a set of Google past services. So essentially, think about it, I've done all this work to do one-click DR, I have mode warehouse management system running SQL server or something else into the Nutanix cloud, that's a little bit easy now with Xi, but now, I can now run a big query app, I can honestly use those services as if they were in the same VLAN, and that's the real power of isolating containers. >> I love that, and I guess the easy compare on that is later this year we expect VMware on AWS to run. I'm sure you would posit that VMware and Amazon, you know, pricing might be a little bit different than the Nutanix and Google offering and what services and how you have them, a little different. >> I think, I'm sure you get a lot of responses on that one, but I'll tell you my take is, actually, even before comparing the approach. First of all, just philosophically, I think the strategy it makes sense of trying to make hybrid invisible, in general, right? I mean, vCloud frankly was the first cut at that. The way we look at it was vCloud was the right use case, wrong implementation. And to me, I think that is still the most important thing, which is before we build this hybrid cloud, whether it is with AWS or Google or anybody else that we've talked to and over at Nutanix or VMware, you still have to build a proper private cloud, as in the cloud that powers your primary data centers needs to look like a true Google or AWS. And to us, unless someone re-engineers that stack that's going to not be the same as, oh, even if I took, if I can call it, a half-baked fiber cloud, and I extended it as a service, it's still half-baked hybrid cloud. That's going to be the big thing, I think, that's going to turn things up. >> And that led us at Wikibon to coin this term, "true private cloud." We get a lot of grief for that term some time, but we saw a lot of cloud-washing, and the concept is basically to substantially mimic what's in the public cloud on-prem, and then, create a control plane that spans multiple physical locations. >> Sunil: That's right. >> Now, one of the things I've been getting a little grief on in this show, 'cause we think Nutanix is an instantiation of what we call true private cloud. One of the folks in our community who has been hitting on me, and he actually wrote a piece, this guy, Yaron Haviv, he's a very sharp guy, said that guys like you and others have no chance against the public cloud because he said this, "HCI is stateful," I want to read it and get your feedback. "HCI is stateful, its VMs, its vdisks, "they're like IT pets with a lot of labor. "AWS is stateless with micro-services, "its object, its database is a service, AI is a service, "and it's built for devs." I know you understand this, but how do you respond? >> I think, look, you know, frankly, we had a choice as a company a couple of years ago when we were growing, the primary question for this company was, well, if the apps are moving outside, forget about IAS or AWS, it's us, and users are moving outside, again, forget about dev and object store and all that. It's about consumerization because of mobility, everybody's got a phone, they can access an app. Who worries about infrastructure? As an enterprise infrastructure company, that's a secular question to answer, right? For us-- >> It's profound. >> For us, there's a reason why we didn't pack up and sell the company and move on. There's a thesis for the company. The thesis for the company is that we fundamentally think that cloud is not a zero sum game. And we're seeing that not just with the largest assets, like all the big dot-coms that went with cloud, defined cloud, and they're coming back now. One of your popular, whether it's your, you can call it your consumer devices that actually started with their service completely, as they grow, they're actually moving half of their services back to the private cloud. I think but it applies to the mainstream enterprise, which I call the fact that because public cloud is not a zero sum game not because of security or compliance, because those are temporal things, in my opinion. The moment AWS puts a data center right beside my data center, security is a little bit, compliance or data regulation is a little bit avoided. The real reason is purely going to be a financial choice for the kind of workload. If it's a predictable workload, even if I could re-engineer it, if it's predictable, it's kind of like me coming in, staying here in D.C. for three days, I'll rent a hotel. If it's there for a year, I'll lease an apartment. If I'm there for five years, financially, accel makes certain math deal, right? Doesn't matter if my costs are cheap, it's going to just work that way. I can buy hardware, cap excise it, amortize and so forth. I guess the simple answer to it is eventually I think there'll be 100% of the market will move. In some markets, there'll be 70-30, in some markets, it'll be 30-70. We are in 1% of that market, so for Nutanix, the more someone tastes the wine of public cloud, the faster they'll actually make the transition of their private infrastructure to look like Amazon. And in that sense, we are like, look, that's why want to do Xi is because Xi actually takes DR infrastructure away from us. We're probably making more money selling Nutanix in the DR data center when we are accelerating the move because we think that that eventually accelerates every workload to come through the primary infrastructure in Nutanix. At the end of the day, it's going to be not about objects, which is vdisk, I mean, he's right also, in the sense that shame on us if we don't have a level of abstraction that is app-centric, then you don't have really care about whether it's an object storage or vdisk or anybody, so that whether it's a developer or an IT operator, they use the same operation levels. >> Sunil, we like that Nutanix is putting out a vision, my understanding, you know, the cloud service next year? >> Sunil: Yeah, early next year. >> What I'm a little worried about is, we're almost out of time with you, and you went through so many different pieces. There of course, there's the Calm. We're going to talk to Aditya in a little bit, but maybe give us some of the highlights as to the stuff that's shipping now or soon that your customers have been talking about. >> What's happening is basically you take those four segments, the core software fabric evolving across every platform and so forth. There's a bunch of stuff that has started shipping in the 5.1 release which came out a few months ago, and a lot of it was shipped in the 5.5 release that's coming later in the year. Calm is part of that release, as you guys know, it's part of the same, it's baked in. We had a choice, so basically Calm has been engineered a couple of times over six, seven years. It's not a vulnerable product, but we took the time from last year, we didn't release it, create a Frankenstein, a power-sucking alien on the side, like some other tools. We took the time, to be honest, to integrate it into the console. You saw it, I mean, it's apps, it's taken time. Functionally, it's there. But that'll be part of the same release, and then, the Xi project will be early 2018. The Google integrations will come in a staged way, even as early as later this year with Calm and Kubernetes and so forth, and then extending to Xi. So the timeframe that we're talking about is probably minus three month to plus nine months. >> So, the DR solution that you showed, though, that is native Nutanix tech, right? That's not partners in the ecosystem. >> It's Nutanix software delivered as a full stack, and this is another thing that we had to take a hard call. It is raging debate couple of years ago is like who builds a public cloud in these days? Because that'll be the obvious question. And the question was really, it's not about building a public cloud, are you building a cloud service, whether it's on-prem or off-prem, are you being honest in the product design? Do you do billing and metering in one click? We don't do that today. But as building a cloud service through Xi, we are building all those for our private cloud customers. And so, the goal was, kind of like six years ago, the easy answer was to take Nutanix, sell our software and say we are VMware for the new era, not worry about BIOS firmware, upgrades, and all that stuff. And so, until we did Nutanix on SuperMicro, people actually believed that the market existed, and then, Dell and Lenovo and others came to buy. Same thing applies with Xi in an accelerated way. The moment we have the conviction to go build a full stack, make it look like an exact replica, but build these cloud capabilities, that's the big thing that I think some of our competitors didn't do was they took the same stack that was in the cloud and quickly tried to make it a cloud service. That's the reason why we are starting with our own service and data centers, and then, scaling through Google, for example, as a way for not just get global reach, but also to merge cloud-native apps with these enterprises. >> But the other obvious question, and I'm sure you guys had that conversation about this internally is, some of the folks in our ecosystem are in that space, and is this competitive to what they're doing? You guys have always been a customer problem solving company, but what was the conversation like in that regard? >> It hasn't come up, to be honest, I think the cloud service aspect is still relatively new, it's siloed, I mean, we are pretty clear. This is not an end-all, be-all service. We don't want to overreach from our things. It's about, look, you first move to Nutanix on-premise, and it's your choice to say, it should be as simple as, "I provision VMs, and the more VMs I have, "or containers on Nutanix, I should right-click "and say protect." And just like iCloud for the iPhone, they're in the cloud, right? That's the goal, the true product goal. >> That Amazon-like experience that you're describing. >> And it's a service that's integrated into it. And so, when we have partners who have been hosting Nutanix, if you're talking about service providers, you've already had questions on, rather than just create yet another service provider partner program that automatically conflicts at all, eventually what we think is that we will offer turnkey services, not a general purpose infrastructure. There's always use cases where somebody wants to outsource their primary data center, and that's where a lot of our partners will be, especially the mid-tier partners are in the mode of outsourcing the full data center, and for them, offering one-click DR on their primary outsource thing is another advantage. >> He's too good, we're not going to let him go yet. >> Sunil: No, no, keep going. >> Are we done? >> Central, some of the other announcements outside of the cloud, can we just touch on some of the highlights there? >> They're all part of the core fabric, and unfortunately, they get subsumed into the, you know, when you have big announcement, they kind of subsumed. But a couple interesting things that came up is I think, and this particularly I'm pretty fond of couple of features. One is Acropolis File Services. I made this joke about killing an air app a couple of years ago, and people keep reminding me about it. I think it's one of our fastest growing features in the last six to nine months, and it's a natural sale for us. People go in there, it's been a little bit limited because of SMB functionality, but now with NFS, it opens up that. Another one, though, that's probably more secular is this concept of machine learning now coming into mainstream. People talk about AI and all that, and it is a lot of churn for us, but it all comes down to manifesting itself as tangible things that the customer sees. For example, if I can show that certain amount of down time genuinely reduced from four nines, it became five nines, without the operator having to do anything, then it is becoming intelligent. I think our bar for machine learning, which you will see more and more, by the way, as a secular thing, I think, I'll predict that not just from Nutanix. >> Dave: Sure. >> AI, if I have to use the word, is going to become more prominent in the next few years, just like cloud was. >> So, Sunil last question I have for you. From a development standpoint, where won't Nutanix go? >> Where will we not go? Great question, so for example, there's an obvious thing like AWS. It says let me instrument every service that sits on my platform. If I like that service, I might end up doin' it. The classic, if I can call it, the tyranny of being a platform partner. See, for us, I think because of two things. One, our ceiling of our current market is super high right now, Stu, right? I mean, we still, yeah, it's a billion bucks, growing 50, 60%, whatever, but we're still, even if half the business goes to AWS, Google, and Amazon, we can still be a company larger than we were. >> It's nearly a trillion dollar market. >> I mean, it's a big market, so therefore, we don't have to be greedy about near-term. We can be long-term greedy. >> Dave: Alright, we got to go. >> All right. >> Thanks so much for coming on, we really appreciate it, Sunil. Alright, keep it right there, everybody. We'll be right back with our next guest, right after this short break. (electronic keyboard music)

hello and welcome to this special cube conversation i'm dave nicholson and this is part of our continuing coverage of google cloud next 2021 i have two very special guests with me and we are going to talk about the topic of security uh i have sunil potti who is vice president and general manager of google cloud security uh who in a previous life had senior leadership roles at nutanix and citrix along with lior div who is the ceo and co-founder of cyber reason lior was formerly a commander in the much famed unit 8200 uh part of the israeli defense forces uh where he was actually a medal of honor recipient uh very uh honored to have him here this morning sunil and lior welcome to the cube sunil welcome back to the cube yeah great to be here david and and to be in the presence of a medal of honor recipient by the way a good friend of mine leor so be here well good to have both of you here so uh i'm the kind of person who likes my dessert before my uh before my entree so why don't we just get right to it you're the two of you are here to announce something very very significant uh in the field of security uh sunil do you want to start us out what are we here to talk about yeah i mean i think maybe uh you know just to set this context um as as many of you know about a decade ago a nation's sponsored attack you know actually got into google plus a whole bunch of tech companies you know the project aurora was quite uh you know infamous for a certain period of time and actually google realized almost a decade ago that look you know security can't just be a side thing it has to be the primary thing including one of the co-founders becoming for lack of a better word the chief security officer for a while but one of the key takeaways from that whole incident was that look you have to be able to detect everything and trust nothing and and the underpinning for at least one of them led to this whole zero trust architectures that everybody now knows about but the other part which is not as popular at least in industry vernacular but in many ways equally important and some ways more important is the fact that you need to be able to detect everything so that you can actually respond and that led to the formation of you know a project internal to google to actually say that look let's democratize uh storage and make sure that nobody has to pay for capturing security events and that led to the formation of this uh new industry concept called a security data lake in chronicle was born and then as we started evolving that over into the enterprise segment partnering with you know cyber reason on one hand created a one plus one equals three synergy between say the presence around what do you detect from the end point but also generally just so happens that as lior will tell you the cyber reason technology happens to start with endpoint but it's actually the core tech is around detecting events but doing it in a smart way to actually respond to them in much more of a contextual manner but beyond just that you know synergy between uh you know a world-class planet scale you know security data like forming the foundation and integrating you know in a much more cohesive way with uh cyber reasons detection response offering the spirit was actually that this is the first step of a long journey to really hit the reset button in terms of going from reactive mode of security to a proactive mode of security especially in a nation-state-sponsored attack vector so maybe leo you can speak a few minutes on that as well absolutely so um as you said i'm coming from a background of uh nation state hacking so for us at cyberism it's uh not is foreign uh what the chinese are doing uh on a daily basis and the growing uh ransomware cartel that's happening right now in russia um when we looked at it we said then uh cyberism is very famous by our endpoint detection and response capability but when we establish cyber reason we establish the cyberism on a core or almost fundamental idea of finding malicious operation we call it the male idea so basically instead of looking for alerts or instead of looking for just pieces of data we want to find the hackers we want to find the attack we want to be able to tell basically the full story of what's going on uh in order to do that we build the inside cyberism basically from day one the ability to analyze any data in real time in order to stitch it into the story of the male the malicious operation but what we realize very quickly that while our solution can process more than 27 trillion events a week we cannot feed it fast enough just from end point and we are kind of blind when it comes to the rest of the attack surface so we were looking uh to be honest quite a while for the best technology that can feed this engine and to as sunil said the one plus one equal three or four or five to be able to fight against those hackers so in this journey uh we we found basically chronicle and the combination of the scale that chronicle bringing the ability to feed the engine and together basically to be able to find those hackers in real time and real time is very very important and then to response to those type of attack so basically what is uh exciting here we created a solution that is five times faster than any solution that exists right now in the market and most importantly it enables us to reverse the atmospheric advantage and basically to find them and to push them out so we're moving from hey just to tell you a story to actually prevent hackers to being in your environment so leor can you i want to double click on that just just a little bit um can you give give us a kind of a concrete example of this difference between simply receiving alerts and uh and actually um you know taking taking uh uh correlating creating correlations and uh and actually creating actionable proactive intelligence can you give us an example of that working in in the real world yeah absolutely we can start from a simple example of ransomware by the time that i will tell you that there is a ransomware your environment and i will send an alert uh it will be five computers that are encrypted and by the time that you gonna look at the alert it's gonna be five thousand uh basically machines that are encrypted and by the time that you will do something it's going to be already too little too late and this is just a simple example so preventing that thing from happening this is critical and very timely manner in order to prevent the damage of ransomware but if you go aside from ransomware and you look for example of the attack like solarwind basically the purpose of this attack was not to create damage it was espionage the russian wanted to collect data on our government and this is kind of uh the main purpose that they did this attack so the ability to be able to say hey right now there is a penetration this is the step that they are doing and there is five ways to push them out of the environment and actually doing it this is something that today it's done manually and with the power of chronicle and cyberism we can do it automatically and that's the massive difference sunil are there specific industries that should be really interested in this or is this a is this a broad set of folks that should be impacted no you know in some ways uh you know the the the saying these days to learn's point on ransomware is that you know if if a customer or an enterprise has a reasonable top-line revenue you're a target you know you're a target to some extent so in that sense especially given that this has moved from pure espionage or you know whether it be you know government oriented or industrial espionage to a financial fraud then at that point in time it applies to pretty much a wide gamut of industries not just financial services or you know critical infrastructure companies like oil and gas pipeline or whatever it could be like any company that has any sort of ip that they feel drives their top line business is now a target for such attacks so when you talk about the idea of partnership and creating something out of a collaboration what's the meat behind this what what what do you what are you guys doing beyond saying you know hey sunil lior these guys really like each other and they respect what the other is doing what's going on behind the scenes what are you actually implementing here moving forward so every partnership is starting with love so it's good [Laughter] but then it need to translate to to really kind of pure value to our customers and pure value coming from a deep integration when it's come to the product so basically uh what will happen is every piece of data that we can collect at cyber is in uh from endpoint any piece of data that the chronicle can collect from any log that exists in the world so basically this is kind of covering the whole attack surface so first we have access to every piece of information across the full attack surface then the main question is okay once you collect all this data what you're gonna do with it and most of companies or all the companies today they don't have an answer they're saying oh we're gonna issue an alert and we hope that there is a smart person behind the keyboard that can understand what just happened and make a decision and with this partnership and with this integration basically we're not asking and outsourcing the question what to do to the user we're giving them the answer we're telling them hey this is the story of the attack this is all the pieces that's going on right now and in most cases we're gonna say hey and by the way we just stopped it so you can prevent it from the future when will people be able to leverage this capability in an integrated way and and and by the way restate how this is going to market as an integrated solution what is what is the what is what are we going to call this moving forward so basically this is the cyber reason xdr uh powered by chronicle and we are very very um uh happy about it yeah and i think just to add to that i would say look the the meta strategy here and the way it'll manifest is in this offering that comes out in early 2022 um is that if you think about it today you know a classical quote-unquote security pipeline is to detect you know analyze and then respond obviously you know just just doing those three in a good way is hard doing it in real time at scale is even harder so just that itself was where cyber reason and chronicle would add real value where we are able to collect a lot of events react in real time but a couple of things that i think that you know to your original point of why this is probably going to be a little for game changer in the years to come is we're trying to change that from detect analyze respond to detect understand and anticipate so because ultimately that's really how we can change you know the profile from being reactive in a world of ransomware or anything else to being proactive against a nation sponsored or nation's influenced attacks because they're not going to stop right so the only way to do this is to rather than just go back up the hatches is just really you know change change the profile of how you'll actually anticipate what they were probably going to do in 6 months or 12 months and so the the graph technology that powers the heart of you know cyber reason is going to be intricately woven in with the contextual information that chronicle can get so that the intermediate step is not just about analysis but it's about truly understanding the overall strategy that has been employed in the past to predict what could happen in the future so therefore then actions could be taken downstream that you can now say hey most likely this these five buckets have this kind of personal information data there's a reasonable chance that you know if they're exposed to the internet then as you create more such buckets in that project you're going to be susceptible to more ransomware attacks or some other attacks right and that's the the the kind of thinking or the transformation that we're trying to bring out with this joint office so lior uh this this concept of uh of mallops and uh cyber reason itself you weren't just born yesterday you've been you've been uh you have thousands of customers around the globe he does look like he was born i i know i know i know well you you know it used to be that the ideal candidate for ceo of a startup company was someone who dropped out of stanford i think it's getting to the point where it's people who refused admission to stanford so uh the the dawn of the 14 year old ceo it's just it's just around the corner but uh but lior do you get frustrated when you see um you know when you become aware of circumstances that would not have happened had they implemented your technology as it exists today yeah we have a for this year it was a really frustrating year that starting with solarwind if you analyze the code of solarwind and we did it but other did it as well basically the russians were checking if cyberism is installed on the machine and if we were installed on the machine they decided to stop the attack this is something that first it was a great compliment for us from you know our not friend from the other side that decided to stop the attack but on a serious note it's like we were pissed because if people were using this technology we know that they are not going to be attacked when we analyze it we realize that we have three different ways to find the solar wind hackers in a three different way so this is just one example and then the next example in the colonial pipeline hack we were the one that found darkseid as a group that we were hacking we were the first one that released a research on them and we showed how we can prevent the basically what they are doing with our technology so when you see kind of those type of just two examples and we have many of them on a daily basis we just know that we have the technology in order to do that now when we're combining uh the chronicle technology into the the technology that we already have we basically can reverse the adversary advantage this is something that you're not doing in a single day but this is something that really give power to the defenders to the communities of siso that exist kind of across the us um and i believe that if we're going to join forces and lean into this community and and basically push the solution out the ability for us to fight against those cartels specifically the ransomware cartels is going to be massive sunil this time next year when we are in uh google cloud next 2022 um are you guys going to come back on and offer up the we told you so awards because once this is actually out there and readily available the combination of chronicle and cyber reasons technology um it's going to be hard for some csos to have an excuse uh it may be it may be a uncomfortable to know that uh they could have kept the door secure uh but didn't yeah where's that bad business is that bad business to uh hand out awards for doing dumb things i don't know about uh you know a version of darwin awards probably don't make sense but but but generally speaking so i do think uh you know we're all like as citizens in this right because you know we talk about customers i mean you know alphabet and google is a customer in some ways cyber reason is a customer the cube is a customer right so i think i think the robot hitting the road a year from now will be we should we should do this where i don't know if the cube does more than two folks at the same time david but we should i mean i'm sure we'll have enough to have at least a half a dozen in in the room to kind of talk about the solution because i think the the you know as you can imagine this thing didn't materialize i mean it's been being cooked for a while between your team and our team and in fact it was inspired by feedback from some joint customers out in the market and all that good stuff so so a year from now i think the best thing would be not just having customers to talk about the solution but to really talk about that transformation from respond to anticipate and do they feel better on their security posture in a world that they know like and leo should probably spend a few minutes on this is i think we're on the tip of the sphere of this nation-state era and what we've just seen in the last few years is what maybe the nation-states have seen over two decades ago and they're going to run those playbooks on the enterprise for the next decade or so yeah leor talk about that for a minute yeah it's it's really you know just to continue the sunil thought it's it's really about finding the unknown because what's happening on the other side it's like specifically china and russia and lately we saw iran starting to gain uh power um basically their job is to become better and better and to basically innovate and create a new type of attack on a daily basis as technology has evolved so basically there is a very simple equation as we're using more technology and relying more on technology the other side is going to exploit it in order to gain more power espionage and create financial damage but it's important to say that this evolution it's not going to stop this is just the beginning and a lot of the data that was belong just to government against government fight basically linked in the past few years now criminals starting to use it as well so in a sense if you think about it what's happening right now there is basically a cold war that nobody is talking about it between kind of the giant that everybody is hacking everybody and in the crossfire we see all of those enterprises across the world it was not a surprise that um you know after the biden and putin uh meeting suddenly it was a quiet it was no ransomware for six weeks and after something changing the politics suddenly we can see a a groin kind of attack when it's come to ransomware that we know that was directed from russia in order to create pressure on the u.s economy sunil wrap us up what are your f what are what are your final thoughts and uh what's what's the what's the big takeaway here no i think you know i i think the key thing for everyone to know is look i think we are going into an era of state-sponsored uh not espionage as much as threat vectors that affect every business and so in many ways the chiefs the chief information security officer the chief risk officer in many ways the ceo and the board now have to pay attention to this topic much like they paid attention to mobile 15 years ago as a transformation thing or maybe cloud 10 years ago i think cyber has been one of those it's sort of like the wireless error david like it existed in the 90s but didn't really break around until iphone hit or the world of consumerization really took off right and i think we're at the tip of the spear of that cyber really becoming like the era of mobile for 15 years ago and so i think that's the if there's like a big takeaway i think yes there's lots of solutions the good news is great innovations are coming through companies like cyber reason working with you know proven providers like google and so forth and so there's a lot of like support in the ecosystem but i think if there was one takeaway that was that everybody should just be ready internalized we don't have to be paranoid about it but we anticipate that this is going to be a long game that we'll have to play together well with that uh taking off my journalist hat for a moment and putting on my citizen hat uh it's reassuring to know that we have really smart people working on this uh because when we talk about critical infrastructure control systems and things like that being under threat um that's more significant than simply having your social security number stolen in a in a data breach so um with that uh i'd like to thank you sunil leor thank you so much for joining us on this special cube conversation this is dave nicholson signing off from our continuing coverage of google cloud next 2021 [Music] you

>> From the SiliconANGLE Media Office in Boston, Massachusetts, it's theCube. (techno music) Now here's your host, Dave Vellante. >> Hi everybody, this is Dave Vellante and welcome to this special Cube Insights, powered by ETR. We've been running these Breaking Analysis Segments and today we're going to talk about some spending data that shows that there's continued interest in hyperconverged infrastructure. So we've been running these segments over the last several weeks with our partner ETR. They've got a database of about 4,500 IT Practitioners and CIOs. They go out quarterly and ask spending intentions. So we've been sharing that, along with our opinions. These are completely independent segments. I want to disclose that a number of the companies that we're talking about today: Nutanix, VMware, Dell EMC, Cisco, HPE. They sponsor theCube, but they have absolutely no input into editorial. They don't affect our opinion in any way, shape or form. So let's get into it. I'm here with Stu Miniman. Stu is an expert in this field. He's covered the space. Stu, let's look at some of the fundamentals. What do people need to know... Alex, if ya put up the slide, Stu, maybe you could talk to it. >> Yeah. Dave, thanks. I've been watching you have some fun with this. I enjoyed swimming in some of the data here and as you know, Dave, we've been watching since before hyperconverged infrastructure, or HCI, was a term that everybody talked about. We've been looking at how these hyperscale trends are going to impact the Enterprise. We put out our server SAN research years and years ago, so we know all these companies really well. And despite the latest AI and cloud and everything, the data shows, HCI, the simplification of the data center, building out what we would call True Private Cloud is important today. So right, we wanted to know when you look at the data, first of all, how are the vendors doing? Who are the leaders in this space here? There were a whole number of startups that came in this space. When we first analyzed the market it was companies like Microsoft and VMware that owned the operating system we thought would be hugely important. If you look in the big names this environment: Dell partnered with everyone, of course they bought Dell, bought EMC, which included a stake in VMware. What's that relationship with Nutanix? How is that shaping the market? As well as how is cloud impacting things? Both from a spending standpoint, has cloud sucked away revenue from HCI as that specter has overhung everybody in the IT space? And also, how does HCI fit into multicloud and how does that fit? >> Okay, great. So thanks for that setup, Stu, now let's get into some of the data. Alex, if you bring up the slide, the next slide. This is spending intentions for Nutanix, VMware and some other vendors. I'll go through that. But it's basically showing Nutanix and VMware are fighting it out. You know they're in this internecine battle and in social, and (chuckles) there's a war goin' on, because there's big money to be made here. So for those of you who are familiar with these segments, this is data from Enterprise Technology Research, from their July 2019 Spending Intentions Survey. So they're asking about spending intentions for the second half of 2019. The end of the survey, out of the 4,500 people in the panel, 1,068 responded to this survey. So on the left hand side you see the vendors: Nutanix, VMware with vSAN, Dell EMC with VxRail, specifically. Then SimpliVity, and then Springpath, or Cisco. So what the chart shows is what we call, Net Score. And net score is calculated by taking the red, on the bar, which is, we're going to leave the platform, that's the dark red. The lighter red, which is, we're going to spend less in the second half. The gray, which their spending's going to be flat. The dark green, or the evergreen, which says, we're going to increase spending. And the lime green, which I'm going to add to the platform. You take the green, minus the red, you get net score. Higher the net score, the better. You can see, Nutanix and VMware with vSAN are leading the pack. And then we'll go through that. But then you see, Shared Accounts. That's the number of indications for spending that they received out of those 1068. So Stu, what is this data telling you? >> So first of all, Dave, it confirmed kind of the general market share numbers that we hear out there. The vendors that track that on quarterly. VMware has the most customers, has the largest revenue, and their largest partner for that, of course, is Dell. VMware and Dell go to market, joint product development, joint engineering, joint go to market and it's the biggest piece of vSAN, so that's where we specifically wanted to look at the VxRail. And vSAN and VxRail, doing very well. They're adding new customers; was interesting to me that you saw VxRail kind of ramping up a little more on the, attracting new companies, but also looked to be losing some on the tail end of the dark red. As opposed to vSAN in general, is a little bit more stable. We know how many thousands of customers they have out there, and Vmware's a software story as opposed to VxRail is that full appliance. Nutanix is the second horse in this two-horse race that we're really talking about here, from HCI. There's some discussion in the marketplace after two quarters being down, is Nutanix showing weakness? What's happening there? The most recent quarter announcement was that Nutanix is doing well, seems to... They had a little bit of change as they're going through their move to a software model and sorting things out with sales and marketing in their channel. The data here shows that the second half of the year looks good for Nutanix. So to some of the questions I asked in the first slide, Dave, Nutanix and VMware, of course the clear leaders in this space. SimpliVity, which was of course bought be HP, Springpath which is the hyperflex from Cisco, are far behind those two out there. And it seems that even though Dell and VMware are fighting, very much with Nutanix, that is not heavily dampening Nutanix's from the respondents in this survey. >> Okay, and just a word on the data, so you see 184 shared accounts for Nutanix, 174 for VMware and down the line. Only 42 for SimpliVity and only 18 for Springpath, and Cisco. It's an indication of the size of the install base, obviously the more shared accounts, the more mentions, the larger the install base. Again, they're statistically significant; ETR does a very good job of that. Let's look Stu, at... Oh, actually I want to make another point here. So how are these net scores? Well let's put 'em in context. The hottest net scores we've seen recently are: Snowflake, and UiPath, with 80% plus, net score. Okay, so that's really, they're off the charts, they're growing like crazy. We saw Salesforce with 55%, so, and Workday sort of in there as well. Companies that are growing share. So SAP in the 30% range, and so you see the Dell EMC, VxRail, that's kind of holding serve. It's not like, dramatically gaining share, but they're growing a little bit and then-- >> And I think it's a lot, Dave, it shows to the maturity of this market. HCI is not new, both Nutanix and VMware have thousands of customers, specifically with V's then we're talking VMware. So it was more, when I saw some of your charts, Microsoft has a similar net score. >> Right >> Well liked, good install based, still growing and the like. And brings in the discussion of when we did some cross section of the analysis looking at cloud companies and how does this impact their public cloud spend; is this detracting if this customer's also doing public cloud? And the long and the short of it is VMware and Nutanix are pretty much the same if not actually a little bit better when you talk about a customer that's looking at their overall cloud spend. So to me that really signals that both VMware and Nutanix are doing a good job into how their solution fits into the customer's overall hybrid cloud strategy. >> All right, let's take a look at the next slide, which talks to time series. So this is hyperconverged infrastructure spending intentions again, for the second half of 2019, over time. So the July '19 Survey you can see is the most recent one. We go all the way back to January '17 and you can see Nutanix on the top, VMware or vSAN on the bottom. We just selected those two. We're just repeating the net score and the shared accounts. And you can see these things tend to bounce around a little bit. You can see Nutanix maintains a lead, but the market's startin' to converge. These two companies are coming together. We hear a lot about vSAN doing very well, it's kind of held on. You can see a slight downward pressure in July, in the July survey. It's unclear what that means. That could be an indication of just some uncertainty in the marketplace. Some economic macro concerns. Tariffs, potential headwinds there, so there could be some uncertainty there. But what do you takeaway from this slide, Stu? >> Yeah, first of all right. As you show, Dave, VMware is a bit more steady, Nutanix gone up for bit and come down. Both of them stayed relatively stable. Somewhere between kind of the 45 and 55 lately. A little bit, if you look at the overall trend, Nutanix is down. VMware could surpass them from the net score in the future, if this trend holds. But both of them doing quite well. When you looked at all the other vendors in there, of course the scale is just showing 40-70%, if you put all the others, which are down much lower, you can see once again, that kind of the clear leadership. These two companies, just strong lead. Does not look like there any challengers in this space that are ready to be a clear number three yet, in the market. >> But Nutanix at one point had no competition. >> Yeah. >> Okay, now vSAN comes in and of course-- >> Oh no, absolutely. So no, SimpliVity and Scale Computing, and there were a whole host of startups. There's all the brand new startups in the space. Everything from little companies like Diamante, Pivot3, who was around doing this before it came. So there's always been a lot there, but Nutanix is the one that separated from the pack. The only one in this space that's gone IPO. But VMware's there, Microsoft won that, they rebranded their Azure Stack HCI for what they put in the data center last year. So expect Microsoft partnering with all of the big server manufacturers to push farther into HCI, but really has not directly impacted this market too much, just yet. >> But there's definitely been some pressure on Nutanix from an earning standpoint, the stock's been hit. You've had some executive departures. There's some rumors about acquisition with Google. Your thoughts on-- >> Yeah, definitely. So John Furrier just had Dheeraj Pandey, the CEO of Nutanix, in our Palo Alto studio, leading up to the Copenhagen show for Nutanix that I will be at. Sure. Sunil Potti who was basically the number two at Nutanix, is now working for Thomas Kurian, TK, over at Google Cloud. My indication from what I hear, he is not over there to help broker a deal. Sunil had a great run at Nutanix, there was a clean break there, but there is a mostly new executive team at Nutanix. Now a couple of years past the IPO and the team at Nutanix, they have their platform. The have a bunch of SaaS offerings that they're doing there. Do they have a relationship with Google? Absolutely! They had Diane Greene at one of their events a couple of years ago. They did joint engineering. But I actually saw that engineering effort cool off a little bit in the last year or so since the new regime came on in Google Cloud. So does Nutanix have a lot of Enterprise accounts and know how to work with the Enterprise and could that be a boon to Google? Absolutely! But the personnel of a Nutanix executive over at Google, and Brian Stevens who's the CTO of Google Cloud being on the Board of Nutanix? I do not think that that is telegraphing that an acquisition is going to happen. It could. We see lots of big acquisitions. Nine or 10 billion dollars from Nutanix could be interesting for Nutanix and help them get in a lot of places and help Google. But Dave, I goin' on record say, I don't think it's going to happen. I don't think Cisco is going to buy Nutanix. Infrastructure's not the real push for Chuck Robbins and that team. And at the Google Cloud event, Dave, that we were at, we saw Sanjay Poonen from VMware up on stage touting how deeply VMware was going to partner. So both VMware and Nutanix are partnering with all of the clouds. VMware of course has a very deep relationship with VMware. They're going deeper with Google, they are even partnering with the old enemy of Microsoft, so I would give VMware definitely has a deeper and more public relationship with all the public cloud providers but Nutanix is also partnering and expanding their portfolio to give themselves good growth beyond just the core HCI market. >> HP's another one. So Nutanix and HPE are workin' together. Kind of the enemy of my enemy is my friend. Nutanix was not at VMworld this year; they're kind of booted out. So they belly up to HP. >> Yeah, HP loves having, they have their, "As a service offerings," and Nutanix is one of those as well as Nutanix can sell the HP. So as the, right, the Dell relationship is likely going to die down over time, as Michael Dell on the team, want to sell more Dell hardware with VMware software. HPE is another... And they also partner with Lenovo on the Nutanix side. >> All right, Stu, bring it home. What are the key takeaways on this cube Insights. >> Okay, so HCI, who is a two-horse race right now. There are interesting companies to look at beyond the two, but if you want to understand who the leaders are in the space it is: VMware, especially with their VxRail and Nutanix, are the two leaders in that space. Really looking and understanding how they're expanding into multicloud and hybrid cloud solutions. VMware very much with their VCF offering, which packages vSAN to go into the VMware cloud offerings. And Nutanix with an interesting strategy, both with how they really spread some of their services like what they're doing with Xi Cloud, as well as some SaaS offerings, which some of them really have a disconnect. Not in a bad way, but just are not tied directly to the hardware. What the infrastructure companies have tried to do for years. Both of them, VMware's done tons of acquisitions. Nutanix has done quite a few acquisitions too. >> So your second point here, what's the impact of Dell VMware versus the Nutanix battle? You say not a significant impact on spending intentions yet. I mean there's clearly some evidence that those two markets are comin' together, that VMware's pressuring Nutanix. But why do you say, yet? What do you expect? I mean is it the OEM deal with Dell? >> It's the OAM relationship. There is huge pipeline of Dell hardware with Nutanix software and they're at loggerheads. So absolutely, the Dell family: Dell, EMC and VMware are doing all they can to dial that down. So they put pressure on the channel. And even some of the most loyal Nutanix channel partners that work with Dell, have had pressure to do more and more VxRail. So I expect it to have impact, but just as, Dave, I'll dial back the clock. You probably remember when EMC had a relationship with HP and HP killed the OEM of EMC storage. EMC stormed back and got a lot of those accounts. Same thing happened when EMC and Dell broke up a couple of years before the acquisition. So Nutanix is storming to go with HPE as one of their server partners, and (mumbles). So can Nutanix keep their growth and momentum going as Dell is no longer their biggest partner? >> Well, they're fighting a two-front war. They've got one with Dell VMware and they're also fighting the war with the public cloud guys, even though they're partnering with the public cloud guys. All right, they're sort of taking that cloud model but of course it's on prim. So you say how this public cloud affects HCI spending; not a significant impact on spending intentions yet. Can I infer from that that you do expect there to be pressure on that second front? >> Yeah, so as I've talked about before Dave, when we look at VMware and VMware gives the VMware cloud in AWS. Some say, "Great, that gives me a nice path to be able to use public cloud. But maybe I don't need some of this VMware licensing and software in there." The question for Nutanix is very similar. What services do they have? How do they become more sticky in customer environments? And absolutely, they're driving a roadmap for that in working with their customers. >> Well the thing about Nutanix is that customer's really happy. The customer's really like Nutanix. They like the simplicity. I've talked to a number of Nutanix customers that are very happy in that regard. And they have a leading product in that regard. But they're aiming at the multicloud space and can they play there? >> And Dave, you make a really good point. The killer use case, what did HCI deliver? It delivered simplicity. Today, if you talk about public cloud in general or even hybrid or multicloud, (chuckles) simplicity is not how you would describe this. So can the customers, the companies that did HCI, so, VMware, Nutanix, HPE and Cisco, they're all fighting for that hybrid and multicloud environment. And if they can help deliver simplicity of management, simplicity of leveraging my data, they can be successful in that space. >> Okay, so you're sort of positive on the multicloud, their position in multicloud. Even though they're not one of the big five. >> Yeah, and the good news for a Nutanix is that they're growing off of a much smaller base then say VMware, when you say they have five or 600,000 customers. Hey, how big of an impact will public cloud have on them? >> All right, so we don't pick stocks. We're not making recommendations. (laughs) But, do you feel like it's overdone, that it's undervalued? Independent of the macro. Do you feel like the pressure on Nutanix is warranted, or do you feel like it's got legs? >> So I feel Wall Street tends to over adjust when they go through things. When I talk to my friends on the Wall Street stuff. Definitely Nutanix took more of a beating probably then they should have. But they had two quarters that weren't great. And some of that was the management changes, they blamed that they couldn't hire sales and marketing fast enough. Something we'd asked, if you're a company in the Valley and you've gone from a few hundred people to a few thousand people. How do you keep adding good quality people? That's challenging. So yes, I think we've actually seen Dave, in the last week, or so Nutanix has been one of the fastest growing stocks in the tech market. So they're adjusting some. So I still think Nutanix has plenty of room for growth. The question is, what's their path to say, two billion dollars? Or is it an exit for 9-10 billion dollars down the road? >> All right, Stu, some great stuff. Thank you for that analysis. And thank you for watching this episode of theCube Insights, powered by ETR. This is Dave Vellante, for Stu Miniman, we'll see ya next time. (techno music)

(news theme music) >> Hi, I'm Stu Miniman and welcome to theCube's preview of Nutanix.next London 2018. Happy to welcome back to the program two friends of the program, Julie O'Brien who's the Senior Vice President of Corporate Marketing and Sunil Potti who's the Chief Product and Development Officer, both of Nutanix. Thanks so much for joining us. >> Yeah, it's great to be here again. >> Alright, so, we've been there since day one. I was actually, just recently down at the Fontainebleau in Miami reliving one of my favorite sets that we did. It was beautiful Miami colors, which match the bright green and blue of Nutanix with theCube. I've been to every single one of em. You have. The European version, which is the third year. We did Vienna. We did Nice. And now London. So Julie, start us in as what we can expect this year. >> Sure, we actually just finished our .next tour in APJ in the Americas. We were from Beijing to Boston. Over 20,000 registrants and 44 cities. So, now we're coming off of that and heading into the conference, which is our multi-day event. First time being in London for the multi-day conference. We have a great lineup of speakers. From a main stage perspective, Bear Grylls. Who you may be familiar with. "Man vs. Wild" He's a well known survivalist. I'm sure he'll have tips to connect what we survive every day in technology with what he survives in the wilderness. We're going to have Jane Goodall joining us. Renowned anthropologist. She's giving back to conservation. A phenomenal woman who's going to be on stage with me in a fireside chat. Cannot wait for that. Anna Alex from a startup in Berlin, called Outfittery. We always like to bring in some fun, interesting companies from the region. They're actually using a mashup of AI with their clothing business, to figure out how to dress elegant professionals, such as yourselves, with all of the right clothing items. So she should be a lot of fun. And then I did want to share something really special today. There's breaking news that we haven't shared anywhere else yet on one of our new main stage speakers. For those of you who are football fans, this gentleman was one of the top performing German national football team members, when he played. And his name is Michael Ballack. So, he'll be joining us and we're really excited about that. For all the Germans out there, hopefully they'll be thrilled. >> We'll do some light juggling on the keynote. (Julie laughs) >> One of the things I always love about this show is customers always want to expand their horizons, learn new products, get to know what they have even better, help their job, but also expand your mind some. You've had some great thought leaders on the program. I've had the opportunity of interviewing some of them on theCUBE, which is great. Authors I've read. Professors that you read their research. Thought leaders in the space. It's always fun. But, the main reason most people go to Sunil is to learn about the solutions that they have, learn about some of the cool new stuff, and you're always well dressed on stage, and helping the customers understand where things are today and where they're goin. So what can they expect from you? >> I think this time around, just like prior times, is going to be a bit of the continuation of the journey, which is what is practical about the company, is that the vision continues to be consistently evolving. In a sense that we've embarked on this two-part re-architecture of the enterprise cloud. And in the first act it was all about converging various silos of infrastructure. We called it the Invisible Infrastructure Era. And then we believe, and you'll see a lot of this in .next London, is that a little more light around the reality that we are on the cusp of the world of many clouds. From going from the world of many silos of infrastructure to the world of many clouds. And a lot more depth of products, beyond what we've done in the first act around invisible infrastructure transforming to invisible clouds, is what's going to be the underpinning of the keynote. >> You bring up something we've been watching at a lot of the shows and in our research, cloud was supposed to be, many people thought it's going to be simple and and it's going to be inexpensive, and what we've found is that it's often neither of those. We live in a multi-cloud world. Absolutely. The question I have for many users is, how did you get there? Was it by choice? Do you have a good plan and who's going to help you get your arms around things or have we recreated, through multiple clouds and applications everywhere, the silos that we were trying to collapse in our data centers before? >> And I think some of this is also going to be, just like in any problem-solving, define the problem well is 50% of the solution. So in some cases, in the world of multi-cloud, one of the things that we've had to give some time and it's right of passage, is to really characterize, when we say multi-cloud, most people think it's just public and private. So it's to really characterize the problem of the multiple clouds, or the multi-cloud era, actually is a construct of many public clouds, but the "private cloud" is becoming increasingly more dispersed or distributed. All the way into the remote office branch offices. But also all the way into what we are calling the edge. Part of what we're going to be talking about is a pretty reasonable understanding of how we've seen some of our early customers templatize their different kinds of clouds and then overlay the solution, to say it's not one size fits all, but you need, from an operational perspective, at least, something that can be a single control play. >> You're absolutely right. If you follow the applications and you follow the data, it's becoming even more dispersed. I remember the early days when I first spoke to Dheeraj, it was, oh are we taking a bunch of boxes and collapsing it? And what it came down to is the premise is the challenge of our time is software for distributed architectures. Five years ago we weren't talking about edge computing and IOT and all those things, but that's following along those trends. >> And I think one of the core technical themes you're going to see is that the last ten years of cloud has been about the era of scaling out. And that's proven now and there's more to be done. I think to really fulfill this next ten years, you're going to see this thematic view of scaling in. Especially when you scale small, which is a different art than scaling out, to some extent. Especially if you want to solve problems at the edge, you want to do it consistently, so that you can actually follow the app, as the apps transform. Some of these newer architectural paradigms have to be understood. So that's going to be an underlying theme there. >> And edge computing, we know, is a really hot topic amongst our customers and this year we're going to have an API accelerator lab. So in New Orleans we had a hackathon, now we're going to do it a little bit differently. This is going to be really focused on giving people an opportunity to get their hands involved in our IOT product, along with some nooks as well. So it should be a lot of fun for people. This is a great area and it is a great application for that multi-cloud, distributed edge kind of environment. >> Great, so November 27th through 29th, in London. We're going to have two days of theCUBE, of course go to thecube.net and watch the program. Nextconf has always been the hashtag. I want to give you both the final takeaways, what people should tune into, other than, of course, watching your keynotes and theCUBE coverage. >> I think you'll see a lot on social media, hopefully to stay involved with all of the innovation that we're going to be announcing. You're going to hear a lot from the breakout sessions. People will be tweeting from those sessions. We have more than 60 breakout sessions across a range of topics, for people that are in different phases of their journey with us. Whether it's just hyperconverged infrastructure, whether it's blockchain, whether it's IOT and they're starting to think about the multi-cloud hybrid environment too. So there's going to be a lot of great information coming out of the events. Sunil? >> I think you covered it all, but in general there's going to be a lot of cool stuff, both people-wise, as well as technology-wise. But I think, hopefully, the common theme that every body will participate in is this construct of this whole Nutanix-vibe of dreaming big, acting fast, and having fun. >> Okay, good. Julie and Sunil, thank you so much. And also breaking news, we're actually going to have a first on the program. We've got my first European cohost for a multi-day event, Joep Piscaer, who's cube alumn, been on a couple of times. And what I'm actually looking for our audience, I'd like to do my first non-english interview on theCUBE. Joep is fluent in Dutch. He's going to be taking the train into London. I would love to be able to do a short segment, preferably a user, but would welcome a thought leader, a partner, or somebody in there to be able to. As we've expanded our coverage, we did our first Chinese event last year. We've done many in Europe. We did our first Middle East show in Bahrain just a couple of weeks ago. So look for that. Like Nutanix, we're all over the globe with what we've done. Julie and Sunil, thank you so much. For Stu Miniman, once again, thank you for watching theCUBE. (news theme music)

>> Announcer: Live from New Orleans, Louisiana, it's theCUBE covering .NEXT conference, 2018. Brought to you by Nutanix. >> Welcome back I'm Stu Miniman with my co-host Keith Townsend, and you're watching theCUBE, the leader in live tech coverage. We're at Nutanix NEXT 2018, happy to welcome to the program Brian Stevens, who's the CTO of Google Cloud, had on the program many times. Brian, always a pleasure to catch up with you. >> Thanks, glad to be here. >> Stu: And have a first time guest, Ricardo Jenez, who's the SVP of Development at Nutanix. Thank you so much for joining us. >> Well, thank you for being, thanks for being here. >> Alright, so Ricardo you've only been with Nutanix for three months. I believe this is probably your first .NEXT? >> Ricardo: Yes, it is. >> So give us a little bit about your role and what brings you to us today. >> So I'm responsible for some of the core data path and per some products. So, you know, a lot of it has to do with how do we end up delivering value to our customers and actually end up having predictable, scalable HCI solutions. So, that's really what I'm focused on and focusing on sort of improving our ability to deliver products more quickly. >> So Brian, last year Diane Greene was up on stage talking about the partnership and what was happening here, see Google at the show, obviously a tighter partnership for Nutanix, but give us the update on-- >> We're downgrading. >> Yeah? >> Slumming it. >> Not at all. Not at all. I wish we had enough time to get into the weeds on some of the stuff you're working on, but tell us what brings you here and what kind of stuff you're poking at these days. >> Geez, I think I met Sunil Potti a couple years ago, just at the very beginning of trying to find sort of the intersection between Google Cloud and Nutanix. I mean, Nutanix is largely redefining what IT looks like on premise. We believe we're doing that in cloud, and you really just want to eliminate the impedance between on-premise and public cloud, and so the work with Nutanix is all like what can we do to actually make it more seamless for users that want to use core cloud technology. >> Yeah Brian, you're one of those people that we would say have enterprise DNA in what they've done in their background. People on the outside will always say, Well you know, it's Google, it's Google-y. It's too smart for us. >> Brian: Enterprise DNA is still sexy. >> Yeah, I mean look, there's a lot of enterprises out there, and while yes, the other startups. Maybe we talk a little bit about what that means inside Google. >> Oh my gosh, yeah it was quite a pivot for Google, you know. It was amazing technology, but the customer that you were serving with Google Cloud was already inside of Google. You were serving Surge and YouTube and ads. So you end being up, a really technically, but close relationship. And so what enterprise is, a couple things, it's been a cultural transformation inside of Google, it's been obviously working with enterprise customers globally and building that go to market model and motion that you can sell, but we want a really technical engineered partnership with our customers. So it's not a vendor relationship. So building all that out, we thing we're unique with that. And then the other part I think you were alluding to early before we went on mic, was just around enterprise has a increased set of requirements on what we deliver them from a capabilities perspective, from a security aspect, from a telemetry aspect. And then it's all like how do we actually slipstream into their process, rather than just redefine everything. So to us, that's a big part of what our enterprise pivot's been, for the last three, four years. >> So Ricardo, you have some background at Google. What brought you to Nutanix? What appealed to you? >> Well you know, more than anything else, I think Nutanix has set themselves up, to basically take that experience it has in enterprise, and translate that into the cloud. So when I was at Google, I actually worked on the Google search appliance, which was Google's first-- >> I remember that. >> You remember that. >> I had that one. >> Little yellow boxes, sometimes blue boxes, and that was a great experience. So I'm really happy to hear that Brain talk about the transformation that has happened within Google. But you know, being at Nutanix, the ability to take that experience very close with the work loads that customers are running, and then being able to work with a partner like Google and actually be able to have hybrid clouds where internal private cloud plus having public cloud providers, that really ends up changing the game for a lot of enterprises. >> Yep. Brain, One of the things we've been struggling with as an industry is, you know, it's application mobility. Data, where it goes. Nutanix has been talking about really hybrid cloud from their standpoint. We've talked with you before about where Kubernetes fits into this. Application portability, you just made an acquisition, today was announced, Velostrata. Give us your state on where those things added, it's a big gnarly topic. >> It was just more friction, like public cloud offers great capability that's going to be used not necessarily completely instead of, but in companion to, you know, application services. But there was still that friction around in the early incarnation, it was like it's VMware in this environment or KVM in this environment, and it's a whole nother AMI kind of model here. So the ability to use it, there was a tax. And then there also wasn't that portability and that lightweight aspect that you'd want from an application containerization. I mean, you want what you have on your phone. You want that ability to install apps anywhere. And cloud and IT infrastructure should be exactly the same way. So that's a big part of our investment in containerization. You know Google, back when I was at Red Hat, was investing in cgroups back when there was a kernel, way back then to kind of build that first incarnation of containers in Linux. Along comes Docker to standardize that. I mean, it's an amazing gift to the world. And then Kubernetes is, we're just moving up the stack, on how do you orchestrate it. So sure, companies like Velostrata are really interesting because you have, you know, beyond having Kubernetes platform everywhere, yeah we'll say it's the de facto, but that doesn't mean everybody's running it. And so you're still running on existing systems, you know, largely kind of virtualized. And Velostrata is a technology leader in being virtualization of this type to Google Cloud or other clouds. And then even more so, the technology they have to bring that to containers. So they help you do that migration, transformation process. And I think that's really important for IT organizations. >> Ricardo, you want to comment on some of the hybrid cloud migration stuff? >> So we have our com product, which allows us to actually end up taking workload and moving it to, for instance, Google Cloud or eventually sciCloud and then moving that workload back. So having that sort of Nutanix inside and outside gives it maximum flexibility, and that's a lot of power for IT to have, right? Deciding where it's best to actually run their workloads and be as efficient as possible. >> So as we look at the com, we look at Google Cloud, just the overall pictures, if you're enterprise, you're looking at Google and you're saying man, Google runs at two different speeds. One is 12 factor, micro services, Kubernetes, functions. And then the other side is that, some people just want a VM. They just want a cloud instance and how to make that simple. So let's talk about this relationship. How does Nutanix come together with Google who runs at two different speeds, to make Google Cloud more consumable to the average enterprise? >> Well we're going to talk a little bit more about it later, but the fact that basically we're going to be able to deploy Xi within Google Cloud with nested AHV, and then allow our customers, that'll basically be doing standard workloads to migrate their jobs over to a Google Cloud offering. And as Brian will point out, that basically creates opportunities for them to be able to avail themselves of other capabilities that Google has. So it's not altogether an instant moving path to rewrite, reorient all your apps. It's an ability to kind of do that school migration, if you want to. But you have that capability of being able to go back and forth, in terms of what your workloads are. >> Yeah. >> Brian, want to get your viewpoint on just some of the changing roles that are happening in our industry. We were talking that some of the interviews we've been doing today, it's people talking about infrastructure and code. There was a big hackathon at this event for the first time in, they sold out with over 14 groups, and everything like that. This is a show that started out with people talking about storage, and now we're talking about individual data centers and clouds and all of those things. What are you seeing out in the marketplace? What are some of the challenges and opportunities you're hearing from customers these days? >> I mean it depends on which customers, right? Which region of the world and what their business looks like and I think we all know the holy grail. Infrastructure, as code, is an implementation, but I think what we know that what you really desire is the ability for reproduce ability. The ability to sort of not have state in the IT process. You want to be able to recreate things anywhere. Recreate a whole application, blueprint internally, on public cloud. Tear it down, recreate it. There's no other way to do that without code. So what sort of comes from that SRE model that Google invented, is that what it you didn't have an IT department? And what if you had software engineers that were responsible for IT function? What would that look like? And that's where all of the sudden you realize, everything's APIs and code. So I think that's interesting, and that's sort of where you want to get to, but it's then like, how do you bridge that because a lot of people aren't software developers in IT departments. >> So here's my follow up, 'cause when I go to the Kubernetes show and I talk to users there, 95% of them-- >> They're way over there. >> Had built their own stack, and why do they do that? Because they were ahead of all the platforms. And then I come to the Nutanix show and they're like oh, tensorflow and functions and all that stuff. We're going to put an easy button, and make it easy. I need to take all of these tools and open source and put it together, versus the platform and the easy button. Is this just the early adopters and the majority? >> I think that's okay. That's the open source world, right? I mean think about what's great about open source, is not just creating sort of a venue for collaboration and developers, it's creating access for end users. And so some of the best companies in the world have been built on a DIY model of people just taking open source and integrating it and making the recipe that they want. And so I think you get that whole sort of spectrum and you aren't forced down this model of, here's a COTS product, oh and it happens to be based on open source, but you always have to use technology this way. Open source gives them the freedom to do it as they want. We just need to make sure that we bridge it, so that there's not anybody left behind. That everybody should be able to use the power of Kubernetes, and that means making things super easy to use, and the integration with Nutanix we think is a huge part of making you use that technology stack in a way that's seamlessly operated for an audience like this. >> So a lot of the debate and questions around Kubernetes is how far should it go? Should it go as far as being an opinionated pass? Should it just be a container platform? Where does it start and end? >> Brian: You want my opinion? >> Yeah, opinion that would be awesome. >> Yeah, that was it. Well I think the way the industry started was obviously, there were no PASes, and then we built OpenShift to Red Hat and Google app engine in Roku. And what happened is, those are interesting, but you're right, they are overly opinionated. So you were left either picking a PAS, and you got to change everything to do it this way, and it's great because it delivers value of managed service, but not everything fit in that model. Or you got next to nothing. >> Keith: Right. >> You got a straight IS platform, and then you got to do all the rest. So what we've been doing at Google is tearing that apart and building that architecture from the ground up where you opt into the level that you want. If you want to be able to use IS and the features of IS you use that. If you want to step up and just use containers and IS, you can use containers and IS. If you want to step up and use Kubernetes orchestration, you can do that. If you want to step up and run managing everything in services, than that stacks on top of Kubernetes with STO. If you want to be full on and put in a developer workflow that always has you do deploys this way, then that stacks on top. So I think you're going to get away from this false dichotomy of a choice over here or here, and you're going to all of a sudden get this architectural layering cake that lets you opt into what you want and have IT consistency all the way through it. >> I mean, I used to have a startup that was focused on Hatuputu service, and you know one of the things was basically you didn't have this layering, right? It was, you take the whole stack or you take nothing. And I think the strategy that Google has employed with Kubernetes is just brilliant, to kind of work you way up and basically get people at different levels to be involved. You know, there is a do-it-yourself folks, and they should be allowed to and empowered to do the things that they want to do. And then there are other people who want to have more composed environment. And so we can actually bring that to them as well. And I think that's brilliant. Basically very early on, while Google used a lot of open source internally, it wasn't a strong sort of part of the open source environment. And so I've just enjoyed watching the evolution of Google, sort of leading the open source movement. So, it's been fantastic. I'm right there with you, you know, give them at every level. >> Ricardo, one of the questions coming into this week, people want to know the update of what's happening with Xi. Can you speak about where we are with that and the relationship with Google? What should we be looking for for the rest of this year? >> Well I can't really talk about that, but you know, we are working very closely with Google. And we'll talk a little bit about that at our talk later today. But I won't comment on anything to do with Xi. >> So that gives me the opportunity to ask another controversial question about Kubernetes and getting both of your opinions on it. There's religions and open sourced as religions, enterprise IT, one of which is DevOps. And you look at what companies like Netflix have done with containerizing Java applications and running those legacy Java applications in their container platform. Enterprises are looking at that stuff and thinking, you know what, can I containerize my monolithic application, put it on top of Kubernetes, and drive more efficiency out of my operations from portability to being able to stack up applications in public cloud, general things. Monolithic applications, is that a good thing, bad thing, indifferent? Wrong plate, wrong tool, wrong-- >> No, I think it's just that there's no like one size even for what a monolithic app looks like. Like we don't really have a really proper definition of what it is, but I think people do feel that all of a sudden Kubernetes needs a rewrite and containers needs a rewrite, and actually it doesn't. Because apps are usually sort of separated from the OS already. And so what they're doing is marrying the libraries of the OS, and containers allows them to do that, but just get a higher degree of portability and then with Kubernetes orchestration. So it really depends more around what's the machine resources that that monolithic app needs and are those machine resources still available in a containerized environment. In most cases, the answer is yes. Now the most interesting thing is, what's the escape hatch? Because you can't have a monolithic app that your company, say it's on Mainframe, say it's in the case of something that will not containerize and shouldn't because it's working as designed and there's no use touching it. But that should still participate in the application architecture of the future. And that's why SEO and services are so important. So even if you can't change your runtime stack, you still need to be able to put a services layer in an API in front of that monolithic service, and you'll have a visibility of a service mesh inside of that environment. So now IT sees it just looks like a black box IT service. It doesn't really matter to them that it's not running on the next generation stack because they can still depend on its' services. >> Yeah, I mean I would agree. I look at what Kubernetes offers and containers as sort of an on ramp to creating services, the on ramp to actually taking that monolithic application, assuming that they're resources, and take a step up in terms of the architectures that you can build around it and then be able to break apart that monolithic application. It doesn't have to happen all at once. It's sort of the stepping stones that you can take. So it's a very powerful model for enablement for people who have stuff that they haven't been able to make the most value out of because maybe the application's been around for a while. Now they can actually end up putting it in an environment where they can actually make the most of it and then work on how they're going to end up slowly pulling it apart and making it more service oriented. >> Alright, Ricardo and Brian, thank you so much for joining us. Appreciate the update and look forward to seeing more throughout the show and further in the year. Be sure to check out theCUBE.net where you'll not only find all of this information, but theCUBE is really excited to say that we will be at the Google Cloud show in July. So for Keith Townsend, and I'm Stu Miniman, getting towards the end of day one of two days of live coverage. Thanks so much for watching theCUBE. (upbeat music)

Section 1 of 13 [00:00:00 - 00:10:04] (NOTE: speaker names may be different in each section) Speaker 1: Ladies and gentlemen our program will begin momentarily. Thank you. (singing) This presentation and the accompanying oral commentary may include forward looking statements that are subject to risks uncertainties and other factors beyond our control. Our actual results, performance or achievements may differ materially and adversely from those anticipated or implied by such statements because of various risk factors. Including those detailed in our annual report on form 10-K for the fiscal year ended July 31, 2017 filed with the SEC. Any future product or roadmap information presented is intended to outline general product direction and is not a commitment to deliver any functionality and should not be used when making any purchasing decision. (singing) Ladies and gentlemen please welcome Vice President Corporate Marketing Nutanix, Julie O'Brien. Julie O'Brien: All right. How about those Nutanix .NEXT dancers, were they amazing or what? Did you see how I blended right in, you didn't even notice I was there. [French 00:07:23] to .NEXT 2017 Europe. We're so glad that you could make it today. We have such a great agenda for you. First off do not miss tomorrow morning. We're going to share the outtakes video of the handclap video you just saw. Where are the customers, the partners, the Nutanix employee who starred in our handclap video? Please stand up take a bow. You are not going to want to miss tomorrow morning, let me tell you. That is going to be truly entertaining just like the next two days we have in store for you. A content rich highly interactive, number of sessions throughout our agenda. Wow! Look around, it is amazing to see how many cloud builders we have with us today. Side by side you're either more than 2,200 people who have traveled from all corners of the globe to be here. That's double the attendance from last year at our first .NEXT Conference in Europe. Now perhaps some of you are here to learn the basics of hyperconverged infrastructure. Others of you might be here to build your enterprise cloud strategy. And maybe some of you are here to just network with the best and brightest in the industry, in this beautiful French Riviera setting. Well wherever you are in your journey, you'll find customers just like you throughout all our sessions here with the next two days. From Sligro to Schroders to Societe Generale. You'll hear from cloud builders sharing their best practices and their lessons learned and how they're going all in with Nutanix, for all of their workloads and applications. Whether it's SAP or Splunk, Microsoft Exchange, unified communications, Cloud Foundry or Oracle. You'll also hear how customers just like you are saving millions of Euros by moving from legacy hypervisors to Nutanix AHV. And you'll have a chance to post some of your most challenging technical questions to the Nutanix experts that we have on hand. Our Nutanix technology champions, our MPXs, our MPSs. Where are all the people out there with an N in front of their certification and an X an R an S an E or a C at the end. Can you wave hello? You might be surprised to know that in Europe and the Middle East alone, we have more than 2,600 >> Julie: In Europe and the Middle East alone, we have more than 2,600 certified Nutanix experts. Those are customers, partners, and also employees. I'd also like to say thank you to our growing ecosystem of partners and sponsors who are here with us over the next two days. The companies that you meet here are the ones who are committed to driving innovation in the enterprise cloud. Over the next few days you can look forward to hearing from them and seeing some fantastic technology integration that you can take home to your data center come Monday morning. Together, with our partners, and you our customers, Nutanix has had such an exciting year since we were gathered this time last year. We were named a leader in the Gartner Magic Quadrant for integrated systems two years in a row. Just recently Gartner named us the revenue market share leader in their recent market analysis report on hyper-converged systems. We know enjoy more than 35% revenue share. Thanks to you, our customers, we received a net promoter score of more than 90 points. Not one, not two, not three, but four years in a row. A feat, I'm sure you'll agree, is not so easy to accomplish, so thank you for your trust and your partnership in us. We went public on NASDAQ last September. We've grown to more than 2,800 employees, more than 7,000 customers and 125 countries and in Europe and the Middle East alone, in our Q4 results, we added more than 250 customers just in [Amea 00:11:38] alone. That's about a third of all of our new customer additions. Today, we're at a pivotal point in our journey. We're just barely scratching the surface of something big and Goldman Sachs thinks so too. What you'll hear from us over the next two days is this: Nutanix is on it's way to building and becoming an iconic enterprise software company. By helping you transform your data center and your business with Enterprise Cloud Software that gives you the power of freedom of choice and flexibility in the hardware, the hypervisor and the cloud. The power of one click, one OS, any cloud. And now, to tell you more about the digital transformation that's possible in your business and your industry and share a little bit around the disruption that Nutanix has undergone and how we've continued to reinvent ourselves and maybe, if we're lucky, share a few hand clap dance moves, please welcome to stage Nutanix Founder, CEO and Chairman, Dheeraj Pandey. Ready? Alright, take it away [inaudible 00:13:06]. >> Dheeraj P: Thank you. Thank you, Julie and thank you every one. It looks like people are still trickling. Welcome to Acropolis. I just hope that we can move your applications to Acropolis faster than we've been able to move people into this room, actually. (laughs) But thank you, ladies and gentlemen. Thank you to our customers, to our partners, to our employees, to our sponsors, to our board members, to our performers, to everybody for their precious time. 'Cause that's the most precious thing you actually have, is time. I want to spend a little bit of time today, not a whole lot of time, but a little bit of time talking about the why of Nutanix. Like why do we exist? Why have we survived? Why will we continue to survive and thrive? And it's simpler than an NQ or category name, the word hyper-convergence, I think we are all complicated. Just thinking about what is it that we need to talk about today that really makes it relevant, that makes you take back something from this conference. That Nutanix is an obvious innovation, it's very obvious what we do is not very complicated. Because the more things change, the more they remain the same, so can we draw some parallels from life, from what's going on around us in our own personal lives that makes this whole thing very natural as opposed to "Oh, it's hyper-converged, it's a category, it's analysts and pundits and media." I actually think it's something new. It's not that different, so I want to start with some of that today. And if you look at our personal lives, everything that we had, has been digitized. If anything, a lot of these gadgets became apps, they got digitized into a phone itself, you know. What's Nutanix? What have we done in the last seven, eight years, is we digitized a lot of hardware. We made everything that used to be single purpose hardware look like pure software. We digitized storage, we digitized the systems manager role, an operations manager role. We are digitizing scriptures, people don't need to write scripts anymore when they automate because we can visually design automation with [com 00:15:36]. And we're also trying to make a case that the cloud itself is not just a physical destination. That it can be digitized and must be digitized as well. So we learn that from our personal lives too, but it goes on. Look at music. Used to be tons of things, if you used to go to [inaudible 00:15:55] Records, I'm sure there were European versions of [inaudible 00:15:57] Records as well, the physical things around us that then got digitized as well. And it goes on and on. We look at entertainment, it's very similar. The idea that if you go to a movie hall, the idea that you buy these tickets, the idea that we'd have these DVD players and DVDs, they all got digitized. Or as [inaudible 00:16:20] want to call it, virtualized, actually. That is basically happening in pretty much new things that we never thought would look this different. One of the most exciting things happening around us is the car industry. It's getting digitized faster than we know. And in many ways that we'd not even imagined 10 years ago. The driver will get digitized. Autonomous cars. The engine is definitely gone, it's a different kind of an engine. In fact, we'll re-skill a lot of automotive engineers who actually used to work in mechanical things to look at real chemical things like battery technologies and so on. A lot of those things that used to be physical are now in software in the car itself. Media itself got digitized. Think about a physical newspaper, or physical ads in newspapers. Now we talk about virtual ads, the digital ads, they're all over on websites and so on is our digital experience now. Education is no different, you know, we look back at the kind of things we used to do physically with physical things. Their now all digital. The experience has become that digital. And I can go on and on. You look at retail, you look at healthcare, look at a lot of these industries, they all are at the cusp of a digital disruption. And in fact, if you look at the data, everybody wants it. We all want a digital transformation for industries, for companies around us. In fact, the whole idea of a cloud is a highly digitized data center, basically. It's not just about digitizing servers and storage and networks and security, it's about virtualizing, digitizing the entire data center itself. That's what cloud is all about. So we all know that it's a very natural phenomenon, because it's happening around us and that's the obviousness of Nutanix, actually. Why is it actually a good thing? Because obviously it makes anything that we digitize and we work in the digital world, bring 10X more productivity and decision making efficiencies as well. And there are challenges, obviously there are challenges, but before I talk about the challenges of digitization, think about why are things moving this fast? Why are things becoming digitally disrupted quicker than we ever imagined? There are some reasons for it. One of the big reasons is obviously we all know about Moore's Law. The fact that a lot of hardware's been commoditized, and we have really miniaturized hardware. Nutanix today runs on a palm-sized server. Obviously it runs on the other end of the spectrum with high-end IBM power systems, but it also runs on palm-sized servers. Moore's Law has made a tremendous difference in the way we actually think about consuming software itself. Of course, the internet is also a big part of this. The fact that there's a bandwidth glut, there's Trans-Pacific cables and Trans-Atlantic cables and so on, has really connected us a lot faster than we ever imagined, actually, and a lot of this was also the telecom revolution of the '90s where we really produced a ton of glut for the internet itself. There's obviously a more subtle reason as well, because software development is democratizing. There's consumer-grade programming languages that we never imagined 10, 15, 20 years ago, that's making it so much faster to write- >> Speaker 1: 15-20 years ago that's making it so much faster to write code, with this crowdsourcing that never existed before with Githubs and things like that, open source. There's a lot more stuff that's happening that's outside the boundary of a corporation itself, which is making things so much faster in terms of going getting disrupted and writing things at 10x the speed it used to be 20 years ago. There is obviously this technology at the tip of our fingers, and we all want it in our mobile experience while we're driving, while we're in a coffee shop, and so on; and there's a tremendous focus on design on consumer-grade simplicity, that's making digital disruption that much more compressed in some of sense of this whole cycle of creative disruption that we talk about, is compressed because of mobility, because of design, because of API, the fact that machines are talking to machines, developers are talking to developers. We are going and miniaturizing the experience of organizations because we talk about micro-services and small two-pizza teams, and they all want to talk about each other using APIs and so on. Massive influence on this digital disruption itself. Of course, one of the reasons why this is also happening is because we want it faster, we want to consume it faster than ever before. And our attention spans are reducing. I like the fact that not many people are watching their cell phones right now, but you can imagine the multi-tasking mode that we are all in today in our lives, makes us want to consume things at a faster pace, which is one of the big drivers of digital disruption. But most importantly, and this is a very dear slide to me, a lot of this is happening because of infrastructure. And I can't overemphasize the importance of infrastructure. If you look at why did Google succeed, it was the ninth search engine, after eight of them before, and if you take a step back at why Facebook succeeded over MySpace and so on, a big reason was infrastructure. They believed in scale, they believed in low latency, they believed in being able to crunch information, at 10x, 100x, bigger scale than anyone else before. Even in our geopolitical lives, look at why is China succeeding? Because they've made infrastructure seamless. They've basically said look, governance is about making infrastructure seamless and invisible, and then let the businesses flourish. So for all you CIOs out there who actually believe in governance, you have to think about what's my first role? What's my primary responsibility? It's to provide such a seamless infrastructure, that lines of business can flourish with their applications, with their developers that can write code 10x faster than ever before. And a lot of these tenets of infrastructure, the fact of the matter is you need to have this always-on philosophy. The fact that it's breach-safe culture. Or the fact that operating systems are hardware agnostic. A lot of these tenets basically embody what Nutanix really stands for. And that's the core of what we really have achieved in the last eight years and want to achieve in the coming five to ten years as well. There's a nuance, and obviously we talk about digital, we talk about cloud, we talk about everything actually going to the cloud and so on. What are the things that could slow us down? What are the things that challenge us today? Which is the reason for Nutanix? Again, I go back to this very important point that the reason why we think enterprise cloud is a nuanced term, because the word "cloud" itself doesn't solve for a lot of the problems. The public cloud itself doesn't solve for a lot of the problems. One of the big ones, and obviously we face it here in Europe as well, is laws of the land. We have bureaucracy, which we need to deal with and respect; we have data sovereignty and computing sovereignty needs that we need to actually fulfill as well, while we think about going at breakneck speed in terms of disrupting our competitors and so on. So there's laws of the land, there's laws of physics. This is probably one of the big ones for what the architecture of cloud will look like itself, over the coming five to ten years. Our take is that cloud will need to be more dispersed than they have ever imagined, because computing has to be local to business operations. Computing has to be in hospitals and factories and shop floors and power plants and on and on and on... That's where you really can have operations and computing really co-exist together, cause speed is important there as well. Data locality is one of our favorite things; the fact that computing and data have to be local, at least the most relevant data has to be local as well. And the fact that electrons travel way faster when it's actually local, versus when you have to have them go over a Wide Area Network itself; it's one of the big reasons why we think that the cloud will actually be more nuanced than just some large data centers. You need to disperse them, you need to actually think about software (cloud is about software). Whether data plane itself could be dispersed and even miniaturized in small factories and shop floors and hospitals. But the control plane of the cloud is centralized. And that's the way you can have the best of both worlds; the control plane is centralized. You think as if you're managing one massive data center, but it's not because you're really managing hundreds or thousands of these sites. Especially if you think about edge-based computing and IoT where you really have your tentacles in tens of thousands of smaller devices and so on. We've talked about laws of the land, which is going to really make this digital transformation nuanced; laws of physics; and the third one, which is really laws of entropy. These are hackers that do this for adrenaline. These are parochial rogue states. These are parochial geo-politicians, you know, good thing I actually left the torture sign there, because apparently for our creative designer, geo-politics is equal to torture as well. So imagine one bad tweet can actually result in big changes to the way we actually live in this world today. And it's important. Geo-politics itself is digitized to a point where you don't need a ton of media people to go and talk about your principles and what you stand for and what you strategy for, for running a country itself is, and so on. And these are all human reasons, political reasons, bureaucratic reasons, compliance and regulations reasons, that, and of course, laws of physics is yet another one. So laws of physics, laws of the land, and laws of entropy really make us take a step back and say, "What does cloud really mean, then?" Cause obviously we want to digitize everything, and it all should appear like it's invisible, but then you have to nuance it for the Global 5000, the Global 10000. There's lots of companies out there that need to really think about GDPR and Brexit and a lot of the things that you all deal with on an everyday basis, actually. And that's what Nutanix is all about. Balancing what we think is all about technology and balancing that with things that are more real and practical. To deal with, grapple with these laws of the land and laws of physics and laws of entropy. And that's where we believe we need to go and balance the private and the public. That's the architecture, that's the why of Nutanix. To be able to really think about frictionless control. You want things to be frictionless, but you also realize that you are a responsible citizen of this continent, of your countries, and you need to actually do governance of things around you, which is computing governance, and data governance, and so on. So this idea of melding the public and the private is really about melding control and frictionless together. I know these are paradoxical things to talk about like how do you really have frictionless control, but that's the life you all lead, and as leaders we have to think about this series of paradoxes itself. And that's what Nutanix strategy, the roadmap, the definition of enterprise cloud is really thinking about frictionless control. And in fact, if anything, it's one of the things is also very interesting; think about what's disrupting Nutanix as a company? We will be getting disrupted along the way as well. It's this idea of true invisibility, the public cloud itself. I'd like to actually bring on board somebody who I have a ton of respect for, this leader of a massive company; which itself is undergoing disruption. Which is helping a lot of its customers undergo disruption as well, and which is thinking about how the life of a business analyst is getting digitized. And what about the laws of the land, the laws of physics, and laws of entropy, and so on. And we're learning a lot from this partner, massively giant company, called IBM. So without further ado, Bob Picciano. >> Bob Picciano: Thanks, >> Speaker 1: Thank you so much, Bob, for being here. I really appreciate your presence here- >> Bob Picciano: My pleasure! >> Speaker 1: And for those of you who actually don't know Bob, Bob is a Senior VP and General Manager at IBM, and is all things cognitive and obviously- >> Speaker 1: IBM is all things cognitive. Obviously, I learn a lot from a lot of leaders that have spent decades really looking at digital disruption. >> Bob: Did you just call me old? >> Speaker 1: No. (laughing) I want to talk about experience and talking about the meaning of history, because I love history, actually, you know, and I don't want to make you look old actually, you're too young right now. When you talk about digital disruption, we look at ourselves and say, "Look we are not extremely invisible, we are invisible, but we have not made something as invisible as the public clouds itself." And hence as I. But what's digital disruption mean for IBM itself? Now, obviously a lot of hardware is being digitized into software and cloud services. >> Bob: Yep. >> Speaker 1: What does it mean for IBM itself? >> Bob: Yeah, if you allow me to take a step back for a moment, I think there is some good foundational understanding that'll come from a particular point of view. And, you talked about it with the number of these dimensions that are affecting the way businesses need to consider their competitiveness. How they offer their capabilities into the market place. And as you reflected upon IBM, you know, we've had decades of involvement in information technology. And there's a big disruption going on in the information technology space. But it's what I call an accretive disruption. It's a disruption that can add value. If you were to take a step back and look at that digital trajectory at IBM you'd see our involvement with information technology in a space where it was all oriented around adding value and capability to how organizations managed inscale processes. Thinking about the way they were going to represent their businesses in a digital form. We came to call them applications. But it was how do you open an account, how do you process a claim, how do you transfer money, how do you hire an employee? All the policies of a company, the way the people used to do it mechanically, became digital representations. And that foundation of the digital business process is something that IBM helped define. We invented the role of the CIO to help really sponsor and enter in this notion that businesses could re represent themselves in a digital way and that allowed them to scale predictably with the qualities of their brand, from local operations, to regional operations, to international operations, and show up the same way. And, that added a lot of value to business for many decades. And we thrived. Many companies, SAP all thrived during that span. But now we're in a new space where the value of information technology is hitting a new inflection point. Which is not about how you scale process, but how you scale insight, and how you scale wisdom, and how you scale knowledge and learning from those operational systems and the data that's in those operational systems. >> Speaker 1: How's it different from 1993? We're talking about disruption. There was a time when IBM reinvented itself, 20-25 years ago. >> Bob: Right. >> Speaker 1: And you said it's bigger than 25 years ago. Tell us more. >> Bob: You know, it gets down. Everything we know about that process space right down to the very foundation, the very architecture of the CPU itself and the computer architecture, the von Neumann architecture, was all optimized on those relatively static scaled business processes. When you move into the notion where you're going to scale insight, scale knowledge, you enter the era that we call the cognitive era, or the era of intelligence. The algorithms are very different. You know the data semantically doesn't integrate well across those traditional process based pools and reformation. So, new capabilities like deep learning, machine learning, the whole field of artificial intelligence, allows us to reach into that data. Much of it unstructured, much of it dark, because it hasn't been indexed and brought into the space where it is directly affecting decision making processes in a business. And you have to be able to apply that capability to those business processes. You have to rethink the computer, the circuitry itself. You have to think about how the infrastructure is designed and organized, the network that is required to do that, the experience of the applications as you talked about have to be very natural, very engaging. So IBM does all of those things. So as a function of our transformation that we're on now, is that we've had to reach back, all the way back from rethinking the CPU, and what we dedicate our time and attention to. To our services organization, which is over 130,000 people on the consulting side helping organizations add digital intelligence to this notion of a digital business. Because, the two things are really a confluence of what will make this vision successful. >> Speaker 1: It looks like massive amounts of change for half a million people who work with the company. >> Bob: That's right. >> Speaker 1: I'm sure there are a lot of large customers out here, who will also read into this and say, "If IBM feels disrupted ... >> Bob: Uh hm >> Speaker 1: How can we actually stay not vulnerable? Actually there is massive amounts of change around their own competitive landscape as well. >> Bob: Look, I think every company should feel vulnerable right. If you're at this age, this cognitive era, the age of digital intelligence, and you're not making a move into being able to exploit the capabilities of cognition into the business process. You are vulnerable. If you're at that intersection, and your competitor is passing through it, and you're not taking action to be able to deploy cognitive infrastructure in conjunction with the business processes. You're going to have a hard time keeping up, because it's about using the machines to do the training to augment the intelligence of our employees of our professionals. Whether that's a lawyer, or a doctor, an educator or whether that's somebody in a business function, who's trying to make a critical business decision about risk or about opportunity. >> Speaker 1: Interesting, very interesting. You used the word cognitive infrastructure. >> Bob: Uh hm >> Speaker 1: There's obviously computer infrastructure, data infrastructure, storage infrastructure, network infrastructure, security infrastructure, and the core of cognition has to be infrastructure as well. >> Bob: Right >> Speaker 1: Which is one of the two things that the two companies are working together on. Tell us more about the collaboration that we are actually doing. >> Bob: We are so excited about our opportunity to add value in this space, so we do think very differently about the cognitive infrastructure that's required for this next generation of computing. You know I mentioned the original CPU was built for very deterministic, very finite operations; large precision floating point capabilities to be able to accurately calculate the exact balance, the exact amount of transfer. When you're working in the field of AI in cognition. You actually want variable precision. Right. The data is very sparse, as opposed to the way that deterministic or scorecastic operations work, which is very dense or very structured. So the algorithms are redefining the processes that the circuitry actually has to run. About five years ago, we dedicated a huge effort to rethink everything about the chip and what we made to facilitate an orchestra of participation to solve that problem. We all know the GPU has a great benefit for deep learning. But the GPU in many cases, in many architectures, specifically intel architectures, it's dramatically confined by a very small amount of IO bandwidth that intel allows to go on and off the chip. At IBM, we looked at all 686 roughly square millimeters of our chip and said how do we reuse that square area to open up that IO bandwidth? So the innovation of a GPU or a FPGA could really be utilized to it's maximum extent. And we could be an orchestrator of all of the diverse compute that's going to be necessary for AI to really compel these new capabilities. >> Speaker 1: It's interesting that you mentioned the fact that you know power chips have been redefined for the cognitive era. >> Bob: Right, for Lennox for the cognitive era. >> Speaker 1: Exactly, and now the question is how do you make it simple to use as well? How do you bring simplicity which is where ... >> Bob: That's why we're so thrilled with our partnership. Because you talked about the why of Nutanix. And it really is about that empowerment. Doing what's natural. You talked about the benefits of calm and being able to really create that liberation of an information technology professional, whether it's in operations or in development. Having the freedom of action to make good decisions about defining the infrastructure and deploying that infrastructure and not having to second guess the physical limitations of what they're going to have to be dealing with. >> Speaker 1: That's why I feel really excited about the fact that you have the power of software, to really meld the two forms together. The intel form and the power form comes together. And we have some interesting use cases that our CIO Randy Phiffer is also really exploring, is how can a power form serve as a storage form for our intel form. >> Bob: Sure. >> Speaker 1: It can serve files and mocks and things like that. >> Bob: Any data intensive application where we have seen massive growth in our Lennox business, now for our business, Lennox is 20% of the revenue of our power systems. You know, we started enabling native Lennox distributions on top of little Indian ones, on top of the power capabilities just a few years ago, and it's rocketed. And the reason for that if for any data intensive application like a data base, a no sequel database or a structured data base, a dupe in the unstructured space, they typically run about three to four times better price performance on top of Lennox on power, than they will on top of an intel alternative. >> Speaker 1: Fascinating. >> Bob: So all of these applications that we're talking about either create or consume a lot of data, have to manage a lot of flexibility in that space, and power is a tremendous architecture for that. And you mentioned also the cohabitation, if you will, between intel and power. What we want is that optionality, for you to utilize those benefits of the 3X better price performance where they apply and utilize the commodity base where it applies. So you get the cost benefits in that space and the depth and capability in the space for power. >> Speaker 1: Your tongue in cheek remark about commodity intel is not lost on people actually. But tell us about... >> Speaker 1: Intel is not lost on people actually. Tell us about ... Obviously we digitized Linux 10, 15 years ago with [inaudible 00:40:07]. Have you tried to talk about digitizing AIX? That is the core of IBM's business for the last 20, 25, 30 years. >> Bob: Again, it's about this ability to compliment and extend the investments that businesses have made during their previous generations of decision making. This industry loves to talk about shifts. We talked about this earlier. That was old, this is new. That was hard, this is easy. It's not about shift, it's about using the inflection point, the new capability to extend what you already have to make it better. And that's one thing that I must compliment you, and the entire Nutanix organization. It's really empowering those applications as a catalog to be deployed, managed, and integrated in a new way, and to have seamless interoperability into the cloud. We see the AIX workload just having that same benefit for those businesses. And there are many, many 10's of thousands around the world that are critically dependent on every element of their daily operations and productivity of that operating platform. But to introduce that into that network effect as well. >> Speaker 1: Yeah. I think we're looking forward to how we bring the same cloud experience on AIX as well because as a company it keeps us honest when we don't scoff at legacy. We look at these applications the last 10, 15, 20 years and say, "Can we bring them into the new world as well?" >> Bob: Right. >> Speaker 1: That's what design is all about. >> Bob: Right. >> Speaker 1: That's what Apple did with musics. We'll take an old world thing and make it really new world. >> Bob: Right. >> Speaker 1: The way we consume things. >> Bob: That governance. The capability to help protect against the bad actors, the nefarious entropy players, as you will. That's what it's all about. That's really what it takes to do this for the enterprise. It's okay, and possibly easier to do it in smaller islands of containment, but when you think about bringing these class of capabilities into an enterprise, and really helping an organization drive both the flexibility and empowerment benefits of that, but really be able to depend upon it for international operations. You need that level of support. You need that level of capability. >> Speaker 1: Awesome. Thank you so much Bob. Really appreciate you coming. [crosstalk 00:42:14] Look forward to your [crosstalk 00:42:14]. >> Bob: Cheers. Thank you. >> Speaker 1: Thanks again for all of you. I know that people are sitting all the way up there as well, which is remarkable. I hope you can actually see some of the things that Sunil and the team will actually bring about, talk about live demos. We do real stuff here, which is truly live. I think one of the requests that I have is help us help you navigate the digital disruption that's upon you and your competitive landscape that's around you that's really creating that disruption. Thank you again for being here, and welcome again to Acropolis. >> Speaker 3: Ladies and gentlemen, please welcome Chief Product and Development Officer, Nutanix Sunil Potti. >> Sunil Potti: Okay, so I'm going to just jump right in because I know a bunch of you guys are here to see the product as well. We are a lot of demos lined up for you guys, and we'll try to mix in the slides, and the demos as well. Here's just an example of the things I always bring up in these conferences to look around, and say in the last few months, are we making progress in simplifying infrastructure? You guys have heard this again and again, this has been our mantra from the beginning, that the hotter things get, the more differentiated a company like Nutanix can be if we can make things simple, or keep things simple. Even though I like this a lot, we found something a little bit more interesting, I thought, by our European marketing team. If you guys need these tea bags, which you will need pretty soon. It's a new tagline for the company, not really. I thought it was apropos. But before I get into the product and the demos, to give you an idea. Every time I go to an event you find ways to memorialize the event. You meet people, you build relationships, you see something new. Last night, nothing to do with the product, I sat beside someone. It was a customer event. I had no idea who I was sitting beside. He was a speaker. How many of you guys know him, by the way? Sir Ranulph Fiennes. Few hands. Good for you. I had no idea who I was sitting beside. I said, "Oh, somebody called Sir. I should be respectful." It's kind of hard for me to be respectful, but I tried. He says, "No, I didn't do anything in the sense. My grandfather was knighted about 100 years ago because he was the governor of Antigua. And when he dies, his son becomes." And apparently Sir Ranulph's dad also died in the war, and so that's how he is a sir. But then I started looking it up because he's obviously getting ready to present. And the background for him is, in my opinion, even though the term goes he's the World's Greatest Living Explorer. I would have actually called it the World's Number One Stag, and I'll tell you why. Really, you should go look it up. So this guy, at the age of 21, gets admitted to Special Forces. If you're from the UK, this is as good as it gets, SAS. Six, seven years into it, he rebels, helps out his local partner because he doesn't like a movie who's building a dam inside this pretty village. And he goes and blows up a dam, and he's thrown out of that Special Forces. Obviously he's in demolitions. Goes all the way. This is the '60's, by the way. Remember he's 74 right now. The '60's he goes to Oman, all by himself, as the only guy, only white guy there. And then around the '70's, he starts truly exploring, truly exploring. And this is where he becomes really, really famous. You have to go see this in real life, when he sees these videos to really appreciate the impact of this guy. All by himself, he's gone across the world. He's actually gone across Antarctica. Now he tells me that Antarctica is the size of China and India put together, and he was prepared for -50 to 60 degrees, and obviously he got -130 degrees. Again, you have to see the videos, see his frostbite. Two of his fingers are cut off, by the way. He hacksawed them himself. True story. And then as he, obviously, aged, his body couldn't keep up with him, but his will kept up with him. So after a recent heart attack, he actually ran seven marathons. But most importantly, he was telling me this story, at 65 he wanted to do something different because his body was letting him down. He said, "Let me do something easy." So he climbed Mount Everest. My point being, what is this related to Nutanix? Is that if Nutanix is a company, without technology, allows to spend more time on life, then we've accomplished a piece of our vision. So keep that in mind. Keep that in mind. Now comes the boring part, which is the product. The why, what, how of Nutanix. Neeris talked about this. We have two acts in this company. Invisible Infrastructure was what we started off. You heard us talk about it. How did we do it? Using one-click technologies by converging infrastructure, computer storage, virtualization, et cetera, et cetera. What we are now about is about changing the game. Saying that just like we'd applicated what powers Google and Amazon inside the data center, could we now make them all invisible? Whether it be inside or outside, could we now make clouds invisible? Clouds could be made invisible by a new level of convergence, not about computer storage, but converging public and private, converging CAPEX and OPEX, converging consumption models. And there, beyond our core products, Acropolis and Prism, are these new products. As you know, we have this core thesis, right? The core thesis says what? Predictable workloads will stay inside the data center, elastic workloads will go outside, as long as the experience on both sides is the same. So if you can genuinely have a cloud-like experience delivered inside a data center, then that's the right a- >> Speaker 1: Genuinely have a cloud like experience developed inside the data center. And that's the right answer of predictable workloads. Absolutely the answer of elastic workloads, doesn't matter whether security or compliance. Eventually a public cloud will have a data center right beside your region, whether through local partner or a top three cloud partner. And you should use it as your public cloud of choice. And so, our goal is to ensure that those two worlds are converged. And that's what Calm does, and we'll talk about that. But at the same time, what we found in late 2015, we had a bunch of customers come to us and said "Look, I love this, I love the fact that you're going to converge public and private and all that good stuff. But I have these environments and these apps that I want to be delivered as a service but I want the same operational tooling. I don't want to have two different environments but I don't want to manage my data centers. Especially my secondary data centers, DR data centers." And that's why we created Xi, right? And you'll hear a lot more about this, obviously it's going to start off in the U.S but very rapidly launch in Europe, APJ globally in the next 9-12 months. And so we'll spend some quality time on those products as well today. So, from the journey that we're at, we're starting with the score cloud that essentially says "Look, your public and private needs to be the same" We call that the first instantiation of your cloud architectures and we're essentially as a company, want to build this enterprise cloud operating system as a fabric across public and private. But that's just the starting point. The starting point evolves to the score architecture that we believe that the cloud is being dispersed. Just like you have a public and a private cloud in the core data centers and so forth, you'll need a similar experience inside your remote office branch office, inside your DR data centers, inside your branches, and it won't stop there. It'll go all the way to the edge. All we're already seeing this right? Not just in the army where your forward operating bases in Afghanistan having a three note cluster sitting inside a tent. But we're seeing this in a variety of enterprise scenarios. And here's an example. So, here's a customer, global oil and gas company, has couple of primary data centers running Nutanix, uses GCP as a core public cloud platform, has a whole bunch of remote offices, but it also has this interesting new edge locations in the form of these small, medium, large size rigs. And today, they're in the process of building a next generation cloud architecture that's completely dispersed. They're using one node, coming out on version 5.5 with Nutanix. They're going to use two nodes, they're going to throw us three nods, multicultural architectures. Day one, they're going to centrally manage it using Prism, with one click upgrades, right? And then on top of that, they're also now provisioning using Calm, purpose built apps for the various locations. So, for example, there will be a re control app at the edge, there's an exploration data lag in Google and so forth. My point being that increasingly this architecture that we're talking about is happening in real time. It's no longer just an existing cellular civilization data center that's being replatformed to look like a private cloud and so forth, or a hybrid cloud. But the fact that you're going into this multi cloud era is getting excel bated, the more someone consumes AWL's GCP or any public cloud, the more they're excel bating their internal transformation to this multi cloud architecture. And so that's what we're going to talk about today, is this construct of ONE OS and ONE Click, and when you think about it, every company has a standard stack. So, this is the only slide you're going to see from me today that's a stack, okay? And if you look at the new release coming out, version 5.5, it's coming out imminently, easiest way to say it is that it's got a ton of functionality. We've jammed as much as we can onto one slide and then build a product basically, okay? But I would encourage you guys to check out the release, it's coming out shortly. And we can go into each and every feature here, we'd be spending a lot of time but the way that we look at building Nutanix products as many of you know, it is not feature at a time. It's experience at a time. And so, when you really look at Nutanix using a lateral view, and that's how we approach problems with our customers and partners. We think about it as a life cycle, all the way from learning to using, operating, and then getting support and experiences. And today, we're going to go through each of these stages with you. And who better to talk about it than our local version of an architect, Steven Poitras please come up on stage. I don't know where you are, Steven come on up. You tucked your shirt in? >> Speaker 2: Just for you guys today. >> Speaker 1: Okay. Alright. He's sort of putting on his weight. I know you used a couple of tight buckles there. But, okay so Steven so I know we're looking for the demo here. So, what we're going to do is, the first step most of you guys know this, is we've been quite successful with CE, it's been a great product. How many of you guys like CE? Come on. Alright. I know you had a hard time downloading it yesterday apparently, there's a bunch of guys had a hard time downloading it. But it's been a great way for us not just to get you guys to experience it, there's more than 25,000 downloads and so forth. But it's also a great way for us to see new features like IEME and so forth. So, keep an eye on CE because we're going to if anything, explode the way that we actually use as a way to get new features out in the next 12 months. Now, one thing beyond CE that we did, and this was something that we did about ... It took us about 12 months to get it out. While people were using CE to learn a lot, a lot of customers were actually getting into full blown competitive evals, right? Especially with hit CI being so popular and so forth. So, we came up with our own version called X-Ray. >> Speaker 2: Yup. >> Speaker 1: What does X-Ray do before we show it? >> Speaker 2: Yeah. Absolutely. So, if we think about back in the day we were really the only ACI platform out there on the market. Now there are a few others. So, to basically enable the customer to objectively test these, we came out with X-Ray. And rather than talking about the slide let's go ahead and take a look. Okay, I think it's ready. Perfect. So, here's our X-Ray user interface. And essentially what you do is you specify your targets. So, in this case we have a Nutanix 80150 as well as some of our competitors products which we've actually tested. Now we can see on the left hand side here we see a series of tests. So, what we do is we go through and specify certain workloads like OLTP workloads, database colocation, and while we do that we actually inject certain test cases or scenarios. So, this can be snapshot or component failures. Now one of the key things is having the ability to test these against each other. So, what we see here is we're actually taking a OLTP workload where we're running two virtual machines, and then we can see the IOPS OLTP VM's are actually performing here on the left hand side. Now as we're actually go through this test we perform a series of snapshots, which are identified by these red lines here. Now as you can see, the Nutanix platform, which is shown by this blue line, is purely consistent as we go through this test. However, our competitor's product actually degrades performance overtime as these snapshots are taken. >> Speaker 1: Gotcha. And some of these tests by the way are just not about failure or benchmarking, right? It's a variety of tests that we have that makes real life production workloads. So, every couple of months we actually look at our production workloads out there, subset those two cases and put it into X-Ray. So, X-Ray's one of those that has been more recently announced into the public. But it's already gotten a lot of update. I would strongly encourage you, even if you an existing Nutanix customer. It's a great way to keep us honest, it's a great way for you to actually expand your usage of Nutanix by putting a lot of these real life tests into production, and as and when you look at new alternatives as well, there'll be certain situations that we don't do as well and that's a great way to give us feedback on it. And so, X-Ray is there, the other one, which is more recent by the way is a fact that most of you has spent many days if not weeks, after you've chosen Nutanix, moving non-Nutanix workloads. I.e. VMware, on three tier architectures to Atrio Nutanix. And to do that, we took a hard look and came out with a new product called Xtract. >> Speaker 2: Yeah. So essentially if we think about what Nutanix has done for the data center really enables that iPhone like experience, really bringing it simplicity and intuitiveness to the data center. Now what we wanted to do is to provide that same experience for migrating existing workloads to us. So, with Xtract essentially what we've done is we've scanned your existing environment, we've created design spec, we handled the migration process ... >> Steven: ... environment, we create a design spec. We handle for the migration process as well as the cut over. Now, let's go ahead and take a look in our extract user interface here. What we can see is we have a source environment. In this case, this is a VC environment. This can be any VC, whether it's traditional three tier or hypherconverged. We also see our Nutanix target environments. Essentially, these are our AHV target clusters where we're going to be migrating the data and performing the cut over to you. >> Speaker 2: Gotcha. Steven: The first thing that we do here is we go ahead and create a new migration plan. Here, I'm just going to specify this as DB Wave 2. I'll click okay. What I'm doing here is I'm selecting my target Nutanix cluster, as well as my target Nutanix container. Once I'll do that, I'll click next. Now in this case, we actually like to do it big. We're actually going to migrate some production virtual machines over to this target environment. Here, I'm going to select a few windows instances, which are in our database cluster. I'll click next. At this point, essentially what's occurring is it's going through taking a look at these virtual machines as well as taking a look at the target environment. It takes a look at the resources to ensure that we actually have enough, an ample capacity to facilitate the workload. The next thing we'll do is we'll go ahead and type in our credentials here. This is actually going to be used for logging into the virtual machine. We can do a new device driver installation, as well as get any static IP configuration. Well specify our network mapping. Then from there, we'll click next. What we'll do is we'll actually save and start. This will go through create the migration plan. It'll do some analysis on these virtual machines to ensure that we can actually log in before we actually start migrating data. Here we have a migration, which has been in progress. We can see we have a few virtual machines, obviously some Linux, some Windows here. We've cut over a few. What we do to actually cut over these VMS, is go ahead select the VMS- Speaker 2: This is the actual task of actually doing the final stage of cut over. Steven: Yeah, exactly. That's one of the nice things. Essentially, we can migrate the data whenever we want. We actually hook into the VADP API's to do this. Then every 10 minutes, we send over a delta to sync the data. Speaker 2: Gotcha, gotcha. That's how one click migration can now be possible. This is something that if you guys haven't used this, this has been out in the wild, just for a month or so. Its been probably one of our bestselling, because it's free, bestselling features of the recent product release. I've had customers come to me and say, "Look, there are situations where its taken us weeks to move data." That is now minutes from the operator perspective. Forget where the director, or the VP, it's the line architecture and operator that really loves these tools, which is essentially the core of Nutanix. That's one of our core things, is to make sure that if we can keep the engineer and the architect truly happy, then everything else will be fine for us, right? That's extract. Then we have a lot of things, right? We've done the usual things, there's a tunnel functionality on day zero, day one, day two, kind of capabilities. Why don't we start with something around Prism Central, now that we can do one click PC installs? We can do PC scale outs, we can go from managing thousands of VMS, tens of thousands of VMS, while doing all the one click operations, right? Steven: Yep. Speaker 2: Why don't we take a quick look at what's new in Prism Central? Steven: Yep. Absolutely. Here, we can see our Prism element interface. As you mentioned, one of the key things we added here was the ability to deploy Prism Central very simply just with a few clicks. We'll actually go through a distributed PC scale of deployment here. Here, we're actually going to deploy, as this is a new instance. We're going to select our 5.5 version. In this case, we're going to deploy a scale out Prism Central cluster. Obviously, availability and up-time's very critical for us, as we're mainly distributed systems. In this case we're going to deploy a scale-out PC cluster. Here we'll select our number of PC virtual machines. Based upon the number of VMS, we can actually select our size of VM that we'd deploy. If we want to deploy 25K's report, we can do that as well. Speaker 2: Basically a thousand to tens of thousands of VM's are possible now. Steven: Yep. That's a nice thing is you can start small, and then scale out as necessary. We'll select our PC network. Go ahead and input our IP address. Now, we'll go to deploy. Now, here we can see it's actually kicked off the deployment, so it'll go provision these virtual machines to apply the configuration. In a few minutes, we'll be up and running. Speaker 2: Right. While Steven's doing that, one of the things that we've obviously invested in is a ton of making VM operations invisible. Now with Calm's, what we've done is to up level that abstraction. Two applications. At the end of the day, more and more ... when you go to AWS, when you go to GCP, you go to [inaudible 01:04:56], right? The level of abstractions now at an app level, it's cloud formations, and so forth. Essentially, what Calm's able to do is to give you this marketplace that you can go in and self-service [inaudible 01:05:05], create this internal cloud like environment for your end users, whether it be business owners, technology users to self-serve themselves. The process is pretty straightforward. You, as an operator, or an architect, or [inaudible 01:05:16] create these blueprints. Consumers within the enterprise, whether they be self-service users, whether they'll be end business users, are able to consume them for a simple marketplace, and deploy them on whether it be a private cloud using Nutanix, or public clouds using anything with public choices. Then, as a single frame of glass, as operators you're doing conversed operations, at an application centric level between [inaudible 01:05:41] across any of these clouds. It's this combination of producer, consumer, operator in a curated sense. Much like an iPhone with an app store. It's the core construct that we're trying to get with Calm to up level the abstraction interface across multiple clouds. Maybe we'll do a quick demo of this, and then get into the rest of the stuff, right? Steven: Sure. Let's check it out. Here we have our Prism Central user interface. We can see we have two Nutanix clusters, our cloudy04 as well as our Power8 cluster. One of the key things here that we've added is this apps tab. I'm clicking on this apps tab, we can see that we have a few [inaudible 01:06:19] solutions, we have a TensorFlow solution, a [inaudible 01:06:22] et cetera. The nice thing about this is, this is essentially a marketplace where vendors as well as developers could produce these blueprints for consumption by the public. Now, let's actually go ahead and deploy one of these blueprints. Here we have a HR employment engagement app. We can see we have three different tiers of services part of this. Speaker 2: You need a lot of engagement at HR, you know that. Okay, keep going. Steven: Then the next thing we'll do here is we'll go and click on. Based upon this, we'll specify our blueprint name, HR app. The nice thing when I'm deploying is I can actually put in back doors. We'll click clone. Now what we can see here is our blueprint editor. As a developer, I could actually go make modifications, or even as an in-user given the simple intuitive user interface. Speaker 2: This is the consumers side right here, but it's also the [inaudible 01:07:11]. Steven: Yep, absolutely. Yeah, if I wanted to make any modifications, I could select the tier, I could scale out the number of instances, I could modify the packages. Then to actually deploy, all I do is click launch, specify HR app, and click create. Speaker 2: Awesome. Again, this is coming in 5.5. There's one other feature, by the way, that is coming in 5.5 that's surrounding Calm, and Prism Pro, and everything else. That seems to be a much awaited feature for us. What was that? Steven: Yeah. Obviously when we think about multi-tenant, multi-cloud role based access control is a very critical piece of that. Obviously within the organization, we're going to have multiple business groups, multiple units. Our back's a very critical piece. Now, if we go over here to our projects, we can see in this scenario we just have a single project. What we've added is if you want to specify certain roles, in this case we're going to add our good friend John Doe. We can add them, it could be a user or group, but then we specify their role. We can give a developer the ability to edit and create these blueprints, or consumer the ability to actually provision based upon. Speaker 2: Gotcha. Basically in 5.5, you'll have role based access control now in Prism and Calm burned into that, that I believe it'll support custom role shortly after. Steven: Yep, okay. Speaker 2: Good stuff, good stuff. I think this is where the Nutanix guys are supposed to clap, by the way, so that the rest of the guys can clap. Steven: Thank you, thank you. Okay. What do we have? Speaker 2: We have day one stuff, obviously there's a ton of stuff that's coming in core data path capabilities that most of you guys use. One of the most popular things is synchronous replication, especially in Europe. Everybody wants to do [Metro 01:08:49] for whatever reason. But we've got something new, something even more enhanced than Metro, right? Steven: Yep. Speaker 2: Do you want to talk a little bit about it? Steven: Yeah, let's talk about it. If we think about what we had previously, we started out with a synchronous replication. This is essentially going to be your higher RPO. Then we moved into Metro cluster, which was RPO zero. Those are two ins of the gamete. What we did is we introduced new synchronous replication, which really gives you the best of both worlds where you have very, very decreased RPO's, but zero impact in line mainstream performance. Speaker 2: That's it. Let's show something. Steven: Yeah, yeah. Let's do it. Here, we're back at our Prism Element interface. We'll go over here. At this point, we provisioned our HR app, the next thing we need to do is to protect that data. Let's go here to protection domain. We'll create a new PD for our HR app. Speaker 2: You clearly love HR. Steven: Spent a lot of time there. Speaker 2: Yeah, yeah, yeah. Steven: Here, you can see we have our production lamp DBVM. We'll go ahead and protect that entity. We can see that's protected. The next thing we'll do is create a schedule. Now, what would you say would be a good schedule we should actually shoot for? Speaker 2: I don't know, 15 minutes? Steven: 15 minutes is not bad. But I ... Section 7 of 13 [01:00:00 - 01:10:04] Section 8 of 13 [01:10:00 - 01:20:04] (NOTE: speaker names may be different in each section) Speaker 1: ... 15 minutes. Speaker 2: 15 minutes is not bad, but I think the people here deserve much better than that, so I say let's shoot for ... what about 15 seconds? Speaker 1: Yeah. They definitely need a bathroom break, so let's do 15 seconds. Speaker 2: Alright, let's do 15 seconds. Speaker 1: Okay, sounds good. Speaker 2: K. Then we'll select our retention policy and remote cluster replicate to you, which in this case is wedge. And we'll go ahead and create the schedule here. Now at this point we can see our protection domain. Let's go ahead and look at our entities. We can see our database virtual machine. We can see our 15 second schedule, our local snapshots, as well as we'll start seeing our remote snapshots. Now essentially what occurs is we take two very quick snapshots to essentially see the initial data, and then based upon that then we'll start taking our continuous 15 second snaps. Speaker 1: 15 seconds snaps, and obviously near sync has less of impact than synchronous, right? From an architectural perspective. Speaker 2: Yeah, and that's a nice thing is essentially within the cluster it's truly pure synchronous, but externally it's just a lagged a-sync. Speaker 1: Gotcha. So there you see some 15 second snapshots. So near sync is also built into five-five, it's a long-awaited feature. So then, when we expand in the rest of capabilities, I would say, operations. There's a lot of you guys obviously, have started using Prism Pro. Okay, okay, you can clap. You can clap. It's okay. It was a lot of work, by the way, by the core data pad team, it was a lot of time. So Prism Pro ... I don't know if you guys know this, Prism Central now run from zero percent to more than 50 percent attach on install base, within 18 months. And normally that's a sign of true usage, and true value being supported. And so, many things are new in five-five out on Prism Pro starting with the fact that you can do data[inaudible 01:11:49] base lining, alerting, so that you're not capturing a ton of false positives and tons of alerts. We go beyond that, because we have this core machine-learning technology power, we call it cross fit. And, what we've done is we've used that as a foundation now for pretty much all kinds of operations benefits such as auto RCA, where you're able to actually map to particular [inaudible 01:12:12] crosses back to who's actually causing it whether it's the network, a computer, and so forth. But then the last thing that we've also done in five-five now that's quite different shading, is the fact that you can now have a lot of these one-click recommendations and remediations, such as right-sizing, the fact that you can actually move around [inaudible 01:12:28] VMs, constrained VMs, and so forth. So, I now we've packed a lot of functionality in Prism Pro, so why don't we spend a couple of minutes quickly giving a sneak peak into a few of those things. Speaker 2: Yep, definitely. So here we're back at our Prism Central interface and one of the things we've added here, if we take a look at one of our clusters, we can see we have this new anomalies portion here. So, let's go ahead and select that and hop into this. Now let's click on one of these anomaly events. Now, essentially what the system does is we monitor all the entities and everything running within the system, and then based upon that, we can actually determine what we expect the band of values for these metrics to be. So in this scenario, we can see we have a CPU usage anomaly event. So, normal time, we expect this to be right around 86 to 100 percent utilization, but at this point we can see this is drastically dropped from 99 percent to near zero. So, this might be a point as an administrator that I want to go check out this virtual machine, ensure that certain services and applications are still up and running. Speaker 1: Gotcha, and then also it changes the baseline based on- Speaker 2: Yep. Yeah, so essentially we apply machine-learning techniques to this, so the system will dynamically adjust based upon the value adjustment. Speaker 1: Gotcha. What else? Speaker 2: Yep. So the other thing here that we mentioned was capacity planning. So if we go over here, we can take a look at our runway. So in this scenario we have about 30 days worth of runway, which is most constrained by memory. Now, obviously, more nodes is all good for everyone, but we also want to ensure that you get the maximum value on your investment. So here we can actually see a few recommendations. We have 11 overprovision virtual machines. These are essentially VMs which have more resources than are necessary. As well as 19 inactives, so these are dead VMs essentially that haven't been powered on and not utilized. We can also see we have six constrained, as well as one bully. So, constrained VMs are essentially VMs which are requesting more resources than they actually have access to. This could be running at 100 percent CPU utilization, or 100 percent memory, or storage utilization. So we could actually go in and modify these. Speaker 1: Gotcha. So these are all part of the auto remediation capabilities that are now possible? Speaker 2: Yeah. Speaker 1: What else, do you want to take reporting? Speaker 2: Yeah. Yeah, so I know reporting is a very big thing, so if we think about it, we can't rely on an administrator to constantly go into Prism. We need to provide some mechanism to allow them to get emailed reports. So what we've done is we actually autogenerate reports which can be sent via email. So we'll go ahead and add one of these sample reports which was created today. And here we can actually get specific detailed information about our cluster without actually having to go into Prism to get this. Speaker 1: And you can customize these reports and all? Speaker 2: Yep. Yeah, if we hop over here and click on our new report, we can actually see a list of views we could add to these reports, and we can mix and match and customize as needed. Speaker 1: Yeah, so that's the operational side. Now we also have new services like AFS which has been quite popular with many of you folks. We've had hundreds of customers already on it live with SMB functionality. You want to show a couple of things that is new in five-five? Speaker 2: Yeah. Yep, definitely. So ... let's wait for my screen here. So one of the key things is if we looked at that runway tab, what we saw is we had over a year's worth of storage capacity. So, what we saw is customers had the requirement for filers, they had some excess storage, so why not actually build a software featured natively into the cluster. And that's essentially what we've done with AFS. So here we can see we have our AFS cluster, and one of the key things is the ability to scale. So, this particular cluster has around 3.1 or 3.16 billion files, which are running on this AFS cluster, as well as around 3,000 active concurrent sessions. Speaker 1: So basically thousands of concurrent sessions with billions of files? Speaker 2: Yeah, and the nice thing with this is this is actually only a four node Nutanix cluster, so as the cluster actually scales, these numbers will actually scale linearly as a function of those nodes. Speaker 1: Gotcha, gotcha. There's got to be one more bullet here on this slide so what's it about? Speaker 2: Yeah so, obviously the initial use case was realistically for home folders as well as user profiles. That was a good start, but it wasn't the only thing. So what we've done is we've actually also introduced important and upcoming release of NFS. So now you can now use NFS to also interface with our [crosstalk 01:16:44]. Speaker 1: NFS coming soon with AFS by the way, it's a big deal. Big deal. So one last thing obviously, as you go operationalize it, we've talked a lot of things on features and functions but one of the cool things that's always been seminal to this company is the fact that we all for really good customer service and support experience. Right now a lot of it is around the product, the people, the support guys, and so forth. So fundamentally to the product we have found ways using Pulse to instrument everything. With Pulse HD that has been allowed for a little bit longer now. We have fine grain [inaudible 01:17:20] around everything that's being done, so if you turn on this functionality you get a lot of information now that we built, we've used when you make a phone call, or an email, and so forth. There's a ton of context now available to support you guys. What we've now done is taken that and are now externalizing it for your own consumption, so that you don't have to necessarily call support. You can log in, look at your entire profile across your own alerts, your own advisories, your own recommendations. You can look at collective intelligence now that's coming soon which is the fact that look, here are 50 other customers just like you. These are the kinds of customers that are using workloads like you, what are their configuration profiles? Through this centralized customer insights portal you going to get a lot more insight, not just about your own operations, but also how everybody else is also using it. So let's take a quick look at that upcoming functionality. Speaker 2: Yep. Absolutely. So this is our customer 360 portal, so as [inaudible 01:18:18] mentioned, as a customer I can actually log in here, I can get a high-level overview of my existing environment, my cases, the status of those cases, as well as any relevant announcements. So, here based upon my cluster version, if there's any updates which are available, I can then see that here immediately. And then one of the other things that we've added here is this insights page. So essentially this is information that previously support would leverage to essentially proactively look out to the cluster, but now we've exposed this to you as the customer. So, clicking on this insights tab we can see an overview of our environment, in this case we have three Nutanix clusters, right around 550 virtual machines, and over here what's critical is we can actually see our cases. And one of the nice things about this is these area all autogenerated by the cluster itself, so no human interaction, no manual intervention was required to actually create these alerts. The cluster itself will actually facilitate that, send it over to support, and then support can get back out to you automatically. Speaker 1: K, so look for customer insights coming soon. And obviously that's the full life cycle. One cool thing though that's always been unique to Nutanix was the fact that we had [inaudible 01:19:28] security from day one built-in. And [inaudible 01:19:31] chunk of functionality coming in five-five just around this, because every release we try to insert more and more security capabilities, and the first one is around data. What are we doing? Speaker 2: Yeah, absolutely. So previously we had support for data at rest encryption, but this did have the requirement to leverage self-encrypting drives. These can be very expensive, so what we've done, typical to our fashion is we've actually built this in natively via software. So, here within Prism Element, I can go to data at rest encryption, and then I can go and edit this configuration here. Section 8 of 13 [01:10:00 - 01:20:04] Section 9 of 13 [01:20:00 - 01:30:04] (NOTE: speaker names may be different in each section) Steve: Encryption and then I can go and edit this configuration here. From here I could add my CSR's. I can specify KMS server and leverage native software base encryption without the requirement of SED's. Sunil: Awesome. So data address encryption [inaudible 01:20:15] coming soon, five five. Now data security is only one element, the other element was around network security obviously. We've always had this request about what are we doing about networking, what are we doing about network, and our philosophy has always been simple and clear, right. It is that the problem in networking is not the data plan. Problem in networking is the control plan. As in, if a packing loss happens to the top of an ax switch, what do we do? If there's a misconfigured board, what do we do? So we've invested a lot in full blown new network visualization that we'll show you a preview of that's all new in five five, but then once you can visualize you can take action, so you can actually using our netscape API's now in five five. You can optovision re lands on the switch, you can update reps on your load balancing pools. You can update obviously rules on your firewall. And then we've taken that to the next level, which is beyond all that, just let you go to AWS right now, what do you do? You take 100 VM's, you put it in an AWS security group, boom. That's how you get micro segmentation. You don't need to buy expensive products, you don't need to virtualize your network to get micro segmentation. That's what we're doing with five five, is built in one click micro segmentation. That's part of the core product, so why don't we just quickly show that. Okay? Steve: Yeah, let's take a look. So if we think about where we've been so far, we've done the comparison test, we've done a migration over to a Nutanix. We've deployed our new HR app. We've protected it's data, now we need to protect the network's. So one of the things you'll see that's new here is this security policies. What we'll do is we'll actually go ahead and create a new security policy and we'll just say this is HR security policy. We'll specify the application type, which in this case is HR. Sunil: HR of course. Steve: Yep and we can see our app instance is automatically populated, so based upon the number of running instances of that blueprint, that would populate that drop-down. Now we'll go ahead and click next here and what we can see in the middle is essentially those three tiers that composed that app blueprint. Now one of the important things is actually figuring out what's trying to communicate with this within my existing environment. So if I take a look over here on my left hand side, I can essentially see a few things. I can see a Ha Proxy load balancer is trying to communicate with my app here, that's all good. I want to allow that. I can see some sort of monitoring service is trying to communicate with all three of the tiers. That's good as well. Now the last thing I can see here is this IP address which is trying to access my database. Now, that's not designed and that's not supposed to happen, so what we'll do is we'll actually take a look and see what it's doing. Now hopping over to this database virtual machine or the hack VM, what we can see is it's trying to perform a brute force log in attempt to my MySQL database. This is not good. We can see obviously it can connect on the socket, however, it hasn't guessed the right password. In order to lock that down, we'll go back to our policies here and we're going to click deny. Once we've done that, we'll click next and now we'll go to Apply Now. Now we can see our newly created security policy and if we hop back over to this VM, we can now see it's actually timing out and what this means is that it's not able to communicate with that database virtual machine due to micro segmentation actively blocking that request. Sunil: Gotcha and when you go back to the Prism site, essentially what we're saying now is, it's as simple as that, to set up micro segmentation now inside your existing clusters. So that's one click micro segmentation, right. Good stuff. One other thing before we let Steve walk off the stage and then go to the bathroom, but is you guys know Steve, you know he spends a lot time in the gym, you do. Right. He and I share cubes right beside each other by the way just if you ever come to San Jose Nutanix corporate headquarters, you're always welcome. Come to the fourth floor and you'll see Steve and Sunil beside each other, most of the time I'm not in the cube, most of the time he's in the gym. If you go to his cube, you'll see all kinds of stuff. Okay. It's true, it's true, but the reason why I brought this up, was Steve recently became a father, his first kid. Oh by the way this is, clicker, this is how his cube looks like by the way but he left his wife and his new born kid to come over here to show us a demo, so give him a round of applause. Thank you, sir. Steve: Cool, thanks, Sunil. That was fun. Sunil: Thank you. Okay, so lots of good stuff. Please try out five five, give us feedback as you always do. A lot of sessions, a lot of details, have fun hopefully for the rest of the day. To talk about how their using Nutanix, you know here's one of our favorite customers and partners. He normally comes with sunglasses, I've asked him that I have to be the best looking guy on stage in my keynotes, so he's going to try to reduce his charm a little bit. Please come on up, Alessandro. Thank you. Alessandro R.: I'm delighted to be here, thank you so much. Sunil: Maybe we can stand here, tell us a little bit about Leonardo. Alessandro R.: About Leonardo, Leonardo is a key actor of the aerospace defense and security systems. Helicopters, aircraft, the fancy systems, the fancy electronics, weapons unfortunately, but it's also a global actor in high technology field. The security information systems division that is the division I belong to, 3,000 people located in Italy and in UK and there's several other countries in Europe and the U.S. $1 billion dollar of revenue. It has a long a deep experience in information technology, communications, automation, logical and physical security, so we have quite a long experience to expand. I'm in charge of the security infrastructure business side. That is devoted to designing, delivering, managing, secure infrastructures services and secure by design solutions and platforms. Sunil: Gotcha. Alessandro R.: That is. Sunil: Gotcha. Some of your focus obviously in recent times has been delivering secure cloud services obviously. Alessandro R.: Yeah, obviously. Sunil: Versus traditional infrastructure, right. How did Nutanix help you in some of that? Alessandro R.: I can tell something about our recent experience about that. At the end of two thousand ... well, not so recent. Sunil: Yeah, yeah. Alessandro R.: At the end of 2014, we realized and understood that we had to move a step forward, a big step and a fast step, otherwise we would drown. At that time, our newly appointed CEO confirmed that the IT would be a core business to Leonardo and had to be developed and grow. So we decided to start our digital transformation journey and decided to do it in a structured and organized way. Having clear in mind our targets. We launched two programs. One analysis program and one deployments programs that were essentially transformation programs. We had to renew ourselves in terms of service models, in terms of organization, in terms of skills to invest upon and in terms of technologies to adopt. We were stacking a certification of technologies that adopted, companies merged in the years before and we have to move forward and to rationalize all these things. So we spent a lot of time analyzing, comparing technologies, and evaluating what would fit to us. We had two main targets. The first one to consolidate and centralize the huge amount of services and infrastructure that were spread over 52 data centers in Italy, for Leonardo itself. The second one, to update our service catalog with a bunch of cloud services, so we decided to update our data centers. One of our building block of our new data center architecture was Nutanix. We evaluated a lot, we had spent a lot of time in analysis, so that wasn't a bet, but you are quite pioneers at those times. Sunil: Yeah, you took a lot of risk right as an Italian company- Alessandro R.: At this time, my colleague used to say, "Hey, Alessandro, think it over, remember that not a CEO has ever been fired for having chose IBM." I apologize, Bob, but at that time, when Nutanix didn't run on [inaudible 01:29:27]. We have still a good bunch of [inaudible 01:29:31] in our data center, so that will be the chance to ... Audience Member: [inaudible 01:29:37] Alessandro R.: So much you must [inaudible 01:29:37] what you announced it. Sunil: So you took a risk and you got into it. Alessandro R.: Yes, we got into, we are very satisfied with the results we have reached. Sunil: Gotcha. Alessandro R.: Most of the targets we expected to fulfill have come and so we are satisfied, but that doesn't mean that we won't go on asking you a big discount ... Sunil: Sure, sure, sure, sure. Alessandro R.: On price list. Sunil: Sure, sure, so what's next in terms of I know there are some interesting stuff that you're thinking. Alessandro R.: The next- Section 9 of 13 [01:20:00 - 01:30:04] Section 10 of 13 [01:30:00 - 01:40:04] (NOTE: speaker names may be different in each section) Speaker 1: So what's next, in terms of I know you have some interesting stuff that you're thinking of. Speaker 2: The next, we have to move forward obviously. The name Leonardo is inspired to Leonardo da Vinci, it was a guy that in terms of innovation and technology innovation had some good ideas. And so, I think, that Leonardo with Nutanix could go on in following an innovation target and following really mutual ... Speaker 1: Partnership. Speaker 2: Useful partnership, yes. We surely want to investigate the micro segmentation technologies you showed a minute ago because we have some looking, particularly by the economical point of view ... Speaker 1: Yeah, the costs and expenses. Speaker 2: And we have to give an alternative to the technology we are using. We want to use more intensively AHV, again as an alternative solution we are using. We are selecting a couple of services, a couple of quite big projects to build using AHV talking of Calm we are very eager to understand the announcement that they are going to show to all of us because the solution we are currently using is quite[crosstalk 01:31:30] Speaker 1: Complicated. Speaker 2: Complicated, yeah. To move a step of automation to elaborate and implement[inaudible 01:31:36] you spend 500 hours of manual activities that's nonsense so ... Speaker 1: Manual automation. Speaker 2: (laughs) Yes, and in the end we are very interested also in the prism features, mostly the new features that you ... Speaker 1: Talked about. Speaker 2: You showed yesterday in the preview because one bit of benefit that we received from the solution in the operations field means a bit plus, plus to our customer and a distinctive plus to our customs so we are very interested in that ... Speaker 1: Gotcha, gotcha. Thanks for taking the risk, thanks for being a customer and partner. Speaker 2: It has been a pleasure. Speaker 1: Appreciate it. Speaker 2: Bless you, bless you. Speaker 1: Thank you. So, you know obviously one OS, one click was one of our core things, as you can see the tagline doesn't stop there, it also says "any cloud". So, that's the rest of the presentation right now it's about; what are we doing, to now fulfill on that mission of one OS, one cloud, one click with one support experience across any cloud right? And there you know, we talked about Calm. Calm is not only just an operational experience for your private cloud but as you can see it's a one-click experience where you can actually up level your apps, set up blueprints, put SLA's and policies, push them down to either your AWS, GCP all your [inaudible 01:33:00] environments and then on day one while you can do one click provisioning, day two and so forth you will see new and new capabilities such as, one-click migration and mobility seeping into the product. Because, that's the end game for Calm, is to actually be your cloud autonomy platform right? So, you can choose the right cloud for the right workload. And talk about how they're building a multi cloud architecture using Nutanix and partnership a great pleasure to introduce my other good Italian friend Daniele, come up on stage please. From Telecom Italia Sparkle. How are you sir? Daniele: Not too bad thank you. Speaker 1: You want an espresso, cappuccino? Daniele: No, no later. Speaker 1: You all good? Okay, tell us a little about Sparkle. Daniele: Yeah, Sparkle is a fully owned subsidy of Telecom Italia group. Speaker 1: Mm-hmm (affirmative) Daniele: Spinned off in 2003 with the mission to develop the wholesale and multinational corporate and enterprise business abroad. Huge network, as you can see, hundreds of thousands of kilometers of fiber optics spread between; south east Asia to Europe to the U.S. Most of it proprietary part of it realized on some running cables. Part of them proprietary part of them bilateral part of them[inaudible 01:34:21] with other operators. 37 countries in which we have offices in the world, 700 employees, lean and clean company ... Speaker 1: Wow, just 700 employees for all of this. Daniele: Yep, 1.4 billion revenues per year more or less. Speaker 1: Wow, are you a public company? Daniele: No, fully owned by TIM so far. Speaker 1: So, what is your experience with Nutanix so far? Daniele: Well, in a way similar to what Alessandro was describing. To operate such a huge network as you can see before, and to keep on bringing revenues for the wholesale market, while trying to turn the bar toward the enterprise in a serious way. Couple of years ago the management team realized that we had to go through a serious transformation, not just technological but in terms of the way we build the services to our customers. In terms of how we let our customer feel the Sparkle experience. So, we are moving towards cloud but we are moving towards cloud with connectivity attached to it because it's in our cord as a provider of Telecom services. The paradigm that is driving today is the on-demand, is the dynamic and in order to get these things we need to move to software. Most of the network must become invisible as the Nutanix way. So, we decided instead of creating patchworks onto our existing systems, infrastructure, OSS, BSS and network systems, to build a new data center from scratch. And the paradigm being this new data center, the mantra was; everything is software designed, everything must be easy to manage, performance capacity planning, everything must be predictable and everything to be managed by few people. Nutanix is at the moment the baseline of this data center for what concern, let's say all the new networking tools, meaning as the end controllers that are taking care of automation and programmability of the network. Lifecycle service orchestrator, network orchestrator, cloud automation and brokerage platform and everything at the moment runs on AHV because we are forcing our vendors to certify their application on AHV. The only stack that is not at the moment AHV based is on a specific cloud platform because there we were really looking for the multi[inaudible 01:37:05]things that you are announcing today. So, we hope to do the migration as soon as possible. Speaker 1: Gotcha, gotcha. And then looking forward you're going to build out some more data center space, expose these services Daniele: Yeah. Speaker 1: For the customers as well as your internal[crosstalk 01:37:21] Daniele: Yeah, basically yes for sure we are going to consolidate, to invest more in the data centers in the markets on where we are leader. Italy, Turkey and Greece we are big data centers for [inaudible 01:37:33] and cloud, but we believe that the cloud with all the issues discussed this morning by Diraj, that our locality, customer proximity ... we think as a global player having more than 120 pops all over the world, which becomes more than 1000 in partnerships, that the pop can easily be transformed in a data center, so that we want to push the customer experience of what we develop in our main data centers closer to them. So, that we can combine traditional infrastructure as a service with the new connectivity services every single[inaudible 01:38:18] possibly everything running. Speaker 1: I mean, it makes sense, I mean I think essentially in some ways to summarize it's the example of an edge cloud where you're pushing a micro-cloud closer to the customers edge. Daniele: Absolutely. Speaker 1: Great stuff man, thank you so much, thank you so much. Daniele: Pleasure, pleasure. Thank you. Speaker 1: So, you know a couple of other things before we get in the next demo is the fact that in addition to Calm from multi-cloud management we have Zai, we talked about for extended enterprise capabilities and something for you guys to quickly understand why we have done this. In a very simple way is if you think about your enterprise data center, clearly you have a bunch of apps there, a bunch of public clouds and when you look at the paradigm you currently deploy traditional apps, we call them mode one apps, SAP, Exchange and so forth on your enterprise. Then you have next generation apps whether it be [inaudible 01:39:11] space, whether it be Doob or whatever you want to call it, lets call them mode two apps right? And when you look at these two types of apps, which are the predominant set, most enterprises have a combination of mode one and mode two apps, most public clouds primarily are focused, initially these days on mode two apps right? And when people talk about app mobility, when people talk about cloud migration, they talk about lift and shift, forklift [inaudible 01:39:41]. And that's a hard problem I mean, it's happening but it's a hard problem and ends up that its just not a one time thing. Once you've forklift, once you move you have different tooling, different operation support experience, different stacks. What if for some of your applications that mattered ... Section 10 of 13 [01:30:00 - 01:40:04] Section 11 of 13 [01:40:00 - 01:50:04] (NOTE: speaker names may be different in each section) Speaker 1: What if, for some of your applications that matter to you, that are your core enterprise apps that you can retain the same toolimg, the same operational experience and so forth. And that is what we achieve to do with Xi. It is truly making hybrid invisible, which is a next act for this company. It'll take us a few years to really fulfill the vision here, but the idea here is that you shouldn't think about public cloud as a different silo. You should think of it as an extension of your enterprise data centers. And for any services such as DR, whether it would be dev test, whether it be back-up, and so-forth. You can use the same tooling, same experience, get a public cloud-like capability without lift and shift, right? So it's making this lift and shift invisible by, soft of, homogenizing the data plan, the network plan, the control plan is what we really want to do with Xi. Okay? And we'll show you some more details here. But the simplest way to understand this is, think of it as the iPhone, right? D has mentioned this a little bit. This is how we built this experience. Views IOS as the core, IP, we wrap it up with a great package called the iPhone. But then, a few years into the iPhone era, came iTunes and iCloud. There's no apps, per se. That's fused into IOS. And similarly, think about Xi that way. The more you move VMs, into an internet-x environment, stuff like DR comes burnt into the fabric. And to give us a sneak peek into a bunch of the com and Xi cable days, let me bring back Binny who's always a popular guys on stage. Come on up, Binny. I'd be surprised in Binny untucked his shirt. He's always tucking in his shirt. Binny Gill: Okay, yeah. Let's go. Speaker 1: So first thing is com. And to show how we can actually deploy apps, not just across private and public clouds, but across multiple public clouds as well. Right? Binny Gill: Yeah, basically, you know com is about simplifying the disparity between various public clouds out there. So it's very important for us to be able to take one application blueprint and then quickly deploy in whatever cloud of your choice. Without understanding how one cloud is different. Speaker 1: Yeah, that's the goal. Binny Gill: So here, if you can see, I have market list. And by the way, this market list is a great partner community interest. And every single sort of apps come up here. Let me take a sample app here, Hadoop. And click launch. And now where do you want me to deploy? Speaker 1: Let's start at GCP. Binny Gill: GCP, okay. So I click on GCP, and let me give it a name. Hadoop. GCP. Say 30, right. Clear. So this is one click deployment of anything from our marketplace on to a cloud of your choice. Right now, what the system is doing, is taking the intent-filled description of what the application should look like. Not just the infrastructure level but also within the merchant machines. And it's creating a set of work flows that it needs to go deploy. So as you can see, while we were talking, it's loading the application. Making sure that the provisioning workflows are all set up. Speaker 1: And so this is actually, in real time it's actually extracting out some of the GCP requirements. It's actually talking to GCP. Setting up the constructs so that we can actually push it up on the GCP personally. Binny Gill: Right. So it takes a couple of minutes. It'll provision. Let me go back and show you. Say you worked with deploying AWS. So you Hadoop. Hit address. And that's it. So again, the same work flow. Speaker 1: Same process, I see. Binny Gill: It's going to now deploy in AWS. Speaker 1: See one of the keys things is that we actually extracted out all the isms of each of these clouds into this logical substrate. Binny Gill: Yep. Speaker 1: That you can now piggy-back off of. Binny Gill: Absolutely. And it makes it extremely simple for the average consumer. And you know we like more cloud support here over time. Speaker 1: Sounds good. Binny Gill: Now let me go back and show you an app that I had already deployed. Now 13 days ago. It's on GCP. And essentially what I want to show you is what is the view of the application. Firstly, it shows you the cost summary. Hourly, daily, and how the cost is going to look like. The other is how you manage it. So you know one click ways of upgrading, scaling out, starting, deleting, and so on. Speaker 1: So common actions, but independent of the type of clouds. Binny Gill: Independent. And also you can act with these actions over time. Right? Then services. It's learning two services, Hadoop slave and Hadoop master. Hadoop slave runs fast right now. And auditing. It shows you what are the important actions you've taken on this app. Not just, for example, on the IS front. This is, you know how the VMs were created. But also if you scroll down, you know how the application was deployed and brought up. You know the slaves have to discover each other, and so on. Speaker 1: Yeah got you. So find game invisibility into whatever you were doing with clouds because that's been one of the complaints in general. Is that the cloud abstractions have been pretty high level. Binny Gill: Yeah. Speaker 1: Yeah. Binny Gill: Yeah. So that's how we make the differences between the public clouds. All go away for the Indias of ... Speaker 1: Got you. So why don't we now give folks ... Now a lot of this stuff is coming in five, five so you'll see that pretty soon. You'll get your hands around it with AWS and tree support and so forth. What we wanted to show you was emerging alpha version that is being baked. So is a real production code for Xi. And why don't we just jump right in to it. Because we're running short of time. Binny Gill: Yep. Speaker 1: Give folks a flavor for what the production level code is already being baked around. Binny Gill: Right. So the idea of the design is make sure it's not ... the public cloud is no longer any different from your private cloud. It's a true seamless extension of your private cloud. Here I have my test environment. As you can see I'm running the HR app. It has the DB tier and the Web tier. Yeah. Alright? And the DB tier is running Oracle DB. Employee payroll is the Web tier. And if you look at the availability zones that I have, this is my data center. Now I want to protect this application, right? From disaster. What do I do? I need another data center. Speaker 1: Sure. Binny Gill: Right? With Xi, what we are doing is ... You go here and click on Xi Cloud Services. Speaker 1: And essentially as the slide says, you are adding AZs with one click. Binny Gill: Yeps so this is what I'm going to do. Essentially, you log in using your existing my.nutanix.com credentials. So here I'm going to use my guest credentials and log in. Now while I'm logging in what's happening is we are creating a seamless network between the two sides. And then making the Xi cloud availability zone appear. As if it was my own. Right? Speaker 1: Gotcha. Binny Gill: So in a couple of seconds what you'll notice this list is here now I don't have just one availability zone, but another one appears. Speaker 1: So you have essentially, real time now, paid a one data center doing an availability zone. Binny Gill: Yep. Speaker 1: Cool. Okay. Let's see what else we can do. Binny Gill: So now you think about VR setup. Now I'm armed with another data center, let's do DR Center. Now DR set-up is going to be extremely simple. Speaker 1: Okay but it's also based because on the fact that it is the same stack on both sides. Right? Binny Gill: It's the same stack on both sides. We have a secure network lane connecting the two sides, on top of the secure network plane. Now data can flow back and forth. So now applications can go back and forth, securely. Speaker 1: Gotcha, okay. Let's look at one-click DR. Binny Gill: So for one-click DR set-up. A couple of things we need to know. One is a protection rule. This is the RPO, where does it apply to? Right? And the connection of the replication. The other one is recovery plans, in case disaster happens. You know, how do I bring up my machines and application work-order and so on. So let me first show you, Protection Rule. Right? So here's the protection rule. I'll create one right now. Let me call it Platinum. Alright, and source is my own data center. Destination, you know Xi appears now. Recovery point objective, so maybe in a one hour these snapshots going to the public cloud. I want to retain three in the public side, three locally. And now I select what are the entities that I want to protect. Now instead of giving VMs my name, what I can do is app type employee payroll, app type article database. It covers both the categories of the application tiers that I have. And save. Speaker 1: So one of the things here, by the way I don't know if you guys have noticed this, more and more of Nutanix's constructs are being eliminated to become app-centric. Of course is VM centric. And essentially what that allows one to do is to create that as the new service-level API/abstraction. So that under the cover over a period of time, you may be VMs today, maybe containers tomorrow. Or functions, the day after. Binny Gill: Yep. What I just did was all that needs to be done to set up replication from your own data center to Xi. So we started off with no data center to actually replication happening. Speaker 1: Gotcha. Binny Gill: Okay? Speaker 1: No, no. You want to set up some recovery plans? Binny Gill: Yeah so now set up recovery plan. Recovery plans are going to be extremely simple. You select a bunch of VMs or apps, and then there you can say what are the scripts you want to run. What order in which you want to boot things. And you know, you can set up access these things with one click monthly or weekly and so on. Speaker 1: Gotcha. And that sets up the IPs as well as subnets and everything. Binny Gill: So you have the option. You can maintain the same IPs on frame as the move to Xi. Or you can make them- Speaker 1: Remember, you can maintain your own IPs when you actually use the Xi service. There was a lot of things getting done to actually accommodate that capability. Binny Gill: Yeah. Speaker 1: So let's take a look at some of- Binny Gill: You know, the same thing as VPC, for example. Speaker 1: Yeah. Binny Gill: You need to possess on Xi. So, let's create a recovery plan. A recovery plan you select the destination. Where does the recovery happen. Now, after that Section 11 of 13 [01:40:00 - 01:50:04] Section 12 of 13 [01:50:00 - 02:00:04] (NOTE: speaker names may be different in each section) Speaker 1: ... does the recovery happen. Now, after that you have to think of what is the runbook that you want to run when disaster happens, right? So you're preparing for that, so let me call "HR App Recovery." The next thing is the first stage. We're doing the first stage, let me add some entities by categories. I want to bring up my database first, right? Let's click on the database and that's it. Speaker 2: So essentially, you're building the script now. Speaker 1: Building the script- Speaker 2: ... on the [inaudible 01:50:30] Speaker 1: ... but in a visual way. It's simple for folks to understand. You can add custom script, add delay and so on. Let me add another stage and this stage is about bringing up the web tier after the database is up. Speaker 2: So basically, bring up the database first, then bring up the web tier, et cetera, et cetera, right? Speaker 1: That's it. I've created a recovery plan. I mean usually it's complicated stuff, but we made it extremely simple. Now if you click on "Recovery Points," these are snapshots. Snapshots of your applications. As you can see, already the system has taken three snapshots in response to the protection rule that we had created just a couple minutes ago. And these are now being seeded to Xi data centers. Of course this takes time for seeding, so what I have is a setup already and that's the production environment. I'll cut over to that. This is my production environment. Click "Explore," now you see the same application running in production and I have a few other VMs that are not protected. Let's go to "Recovery Points." It has been running for sometime, these recover points are there and they have been replicated to Xi. Speaker 2: So let's do the failover then. Speaker 1: Yeah, so to failover, you'll have to go to Xi so let me login to Xi. This time I'll use my production account for logging into Xi. I'm logging in. The first thing that you'll see in Xi is a dashboard that gives you a quick summary of what your DR testing has been so far, if there are any issues with the replication that you have and most importantly the monthly charges. So right now I've spent with my own credit card about close to 1,000 bucks. You'll have to refund it quickly. Speaker 2: It depends. If the- Speaker 1: If this works- Speaker 2: IF the demo works. Speaker 1: Yeah, if it works, okay. As you see, there are no VMs right now here. If I go to the recovery points, they are there. I can click on the recovery plan that I had created and let's see how hard it's going to be. I click "Failover." It says three entities that, based on the snapshots, it knows that it can recovery from source to destination, which is Xi. And one click for the failover. Now we'll see what happens. Speaker 2: So this is essentially failing over my production now. Speaker 1: Failing over your production now. [crosstalk 01:52:53] If you click on the "HR App Recovery," here you see now it started the recovery plan. The simple recovery plan that we had created, it actually gets converted to a series of tasks that the system has to do. Each VM has to be hydrated, powered on in the right order and so on and so forth. You don't have to worry about any of that. You can keep an eye on it. But in the meantime, let's talk about something else. We are doing failover, but after you failover, you run in Xi as if it was your own setup and environment. Maybe I want to create a new VM. I create a VM and I want to maybe extend my HR app's web tier. Let me name it as "HR_Web_3." It's going to boot from that disk. Production network, I want to run it on production network. We have production and test categories. This one, I want to give it employee payroll category. Now it applies the same policies as it's peers will. Here, I'm going to create the VM. As you can see, I can already see some VMs coming up. There you go. So three VMs from on-prem are now being filled over here while the fourth VM that I created is already being powered. Speaker 2: So this is basically realtime, one-click failover, while you're using Xi for your [inaudible 01:54:13] operations as well. Speaker 1: Exactly. Speaker 2: Wow. Okay. Good stuff. What about- Speaker 1: Let me add here. As the other cloud vendors, they'll ask you to make your apps ready for their clouds. Well we tell our engineers is make our cloud ready for your apps. So as you can see, this failover is working. Speaker 2: So what about failback? Speaker 1: All of them are up and you can see the protection rule "platinum" has been applied to all four. Now let's look at this recovery plan points "HR_Web_3" right here, it's already there. Now assume the on-prem was already up. Let's go back to on-prem- Speaker 2: So now the scenario is, while Binny's coming up, is that the on-prem has come back up and we're going to do live migration back as in a failback scenario between the data centers. Speaker 1: And how hard is it going to be. "HR App Recovery" the same "HR App Recovery", I click failover and the system is smart enough to understand the direction is reversed. It's also smart enough to figure out "Hey, there are now the four VMs are there instead of three." Xi to on-prem, one-click failover again. Speaker 2: And it's rerunning obviously the same runbook but in- Speaker 1: Same runbook but the details are different. But it's hidden from the customer. Let me go to the VMs view and do something interesting here. I'll group them by availability zone. Here you go. As you can see, this is a hybrid cloud view. Same management plane for both sides public and private. There are two availability zones, the Xi availability zone is in the cloud- Speaker 2: So essentially you're moving from the top- Speaker 1: Yeah, top- Speaker 2: ... to the bottom. Speaker 1: ... to the bottom. Speaker 2: That's happening in the background. While this is happening, let me take the time to go and look at billing in Xi. Speaker 1: Sure, some of the common operations that you can now see in a hybrid view. Speaker 2: So you go to "Billing" here and first let me look at my account. And account is a simple page, I have set up active directory and you can add your own XML file, upload it. You can also add multi-factor authentication, all those things are simple. On the billing side, you can see more details about how did I rack up $966. Here's my credit card. Detailed description of where the cost is coming from. I can also download previous versions, builds. Speaker 1: It's actually Nutanix as a service essentially, right? Speaker 2: Yep. Speaker 1: As a subscription service. Speaker 2: Not only do we go to on-prem as you can see, while we were talking, two VMs have already come back on-prem. They are powered off right now. The other two are on the wire. Oh, there they are. Speaker 1: Wow. Speaker 2: So now four VMs are there. Speaker 1: Okay. Perfect. Sometimes it works, sometimes it doesn't work, but it's good. Speaker 2: It always works. Speaker 1: Always works. All right. Speaker 2: As you can see the platinum protection rule is now already applied to them and now it has reversed the direction of [inaudible 01:57:12]- Speaker 1: Remember, we showed one-click DR, failover, failback, built into the product when Xi ships to any Nutanix fabric. You can start with DSX on premise, obviously when you failover to Xi. You can start with AHV, things that are going to take the same paradigm of one-click operations into this hybrid view. Speaker 2: Let's stop doing lift and shift. The era has come for click and shift. Speaker 1: Binny's now been promoted to the Chief Marketing Officer, too by the way. Right? So, one more thing. Speaker 2: Okay. Speaker 1: You know we don't stop any conferences without a couple of things that are new. The first one is something that we should have done, I guess, a couple of years ago. Speaker 2: It depends how you look at it. Essentially, if you look at the cloud vendors, one of the key things they have done is they've built services as building blocks for the apps that run on top of them. What we have done at Nutanix, we've built core services like block services, file services, now with Calm, a marketplace. Now if you look at [inaudible 01:58:14] applications, one of the core building pieces is the object store. I'm happy to announce that we have the object store service coming up. Again, in true Nutanix fashion, it's going to be elastic. Speaker 1: Let's- Speaker 2: Let me show you. Speaker 1: Yeah, let's show it. It's something that is an object store service by the way that's not just for your primary, but for your secondary. It's obviously not just for on-prem, it's hybrid. So this is being built as a next gen object service, as an extension of the core fabric, but accommodating a bunch of these new paradigms. Speaker 2: Here is the object browser. I've created a bunch of buckets here. Again, object stores can be used in various ways: as primary object store, or for secondary use cases. I'll show you both. I'll show you a Hadoop use case where Hadoop is using this as a primary store and a backup use case. Let's just jump right in. This is a Hadoop bucket. AS you can see, there's a temp directory, there's nothing interesting there. Let me go to my Hadoop VM. There it is. And let me run a Hadoop job. So this Hadoop job essentially is going to create a bunch of files, write them out and after that do map radius on top. Let's wait for the job to start. It's running now. If we go back to the object store, refresh the page, now you see it's writing from benchmarks. Directory, there's a bunch of files that will write here over time. This is going to take time. Let's not wait for it, but essentially, it is showing Hadoop that uses AWS 3 compatible API, that can run with our object store because our object store exposes AWS 3 compatible APIs. The other use case is the HYCU backup. As you can see, that's a- Section 12 of 13 [01:50:00 - 02:00:04] Section 13 of 13 [02:00:00 - 02:13:42] (NOTE: speaker names may be different in each section) Vineet: This is the hycu back up ... As you can see, that's a back-up software that can back-up WSS3. If you point it to Nutanix objects or it can back-up there as well. There are a bunch of back-up files in there. Now, object stores, it's very important for us to be able to view what's going on there and make sure there's no objects sprawled because once it's easy to write objects, you just accumulate a lot of them. So what we wanted to do, in true Nutanix style, is give you a quick overview of what's happening with your object store. So here, as you can see, you can look at the buckets, where the load is, you can look at the bucket sizes, where the data is, and also what kind of data is there. Now this is a dashboard that you can optimize, and customize, for yourself as well, right? So that's the object store. Then we go back here, and I have one more thing for you as well. Speaker 2: Okay. Sounds good. I already clicked through a slide, by the way, by mistake, but keep going. Vineet: That's okay. That's okay. It is actually a quiz, so it's good for people- Speaker 2: Okay. Sounds good. Vineet: It's good for people to have some clues. So the quiz is, how big is my SAP HANA VM, right? I have to show it to you before you can answer so you don't leak the question. Okay. So here it is. So the SAP HANA VM here vCPU is 96. Pretty beefy. Memory is 1.5 terabytes. The question to all of you is, what's different in this screen? Speaker 2: Who's a real Prism user here, by the way? Come on, it's got to be at least a few. Those guys. Let's see if they'll notice something. Vineet: What's different here? Speaker 3: There's zero CVM. Vineet: Zero CVM. Speaker 2: That's right. Yeah. Yeah, go ahead. Vineet: So, essentially, in the Nutanix fabric, every server has to run a [inaudible 02:01:48] machine, right? That's where the storage comes from. I am happy to announce the Acropolis Compute Cloud, where you will be able to run the HV on servers that are storage-less, and add it to your existing cluster. So it's a compute cloud that now can be managed from Prism Central, and that way you can preserve your investments on your existing server farms, and add them to the Nutanix fabric. Speaker 2: Gotcha. So, essentially ... I mean, essentially, imagine, now that you have the equivalent of S3 and EC2 for the enterprise now on Premisis, like you have the equivalent compute and storage services on JCP and AWS, and so forth, right? So the full flexibility for any kind of workload is now surely being available on the same Nutanix fabric. Thanks a lot, Vineet. Before we wrap up, I'd sort of like to bring this home. We've announced a pretty strategic partnership with someone that has always inspired us for many years. In fact, one would argue that the genesis of Nutanix actually was inspired by Google and to talk more about what we're actually doing here because we've spent a lot of time now in the last few months to really get into the product capabilities. You're going to see some upcoming capabilities and 55X release time frame. To talk more about that stuff as well as some of the long-term synergies, let me invite Bill onstage. C'mon up Bill. Tell us a little bit about Google's view in the cloud. Bill: First of all, I want to compliment the demo people and what you did. Phenomenal work that you're doing to make very complex things look really simple. I actually started several years ago as a product manager in high availability and disaster recovery and I remember, as a product manager, my engineers coming to me and saying "we have a shortage of our engineers and we want you to write the fail-over routines for the SAP instance that we're supporting." And so here's the PERL handbook, you know, I haven't written in PERL yet, go and do all that work to include all the network setup and all that work, that's amazing, what you are doing right there and I think that's the spirit of the partnership that we have. From a Google perspective, obviously what we believe is that it's time now to harness the power of scale security and these innovations that are coming out. At Google we've spent a lot of time in trying to solve these really large problems at scale and a lot of the technology that's been inserted into the industry right now. Things like MapReduce, things like TenserFlow algorithms for AI and things like Kubernetes and Docker were first invented at Google to solve problems because we had to do it to be able to support the business we have. You think about search, alright? When you type in search terms within the search box, you see a white screen, what I see is all the data-center work that's happening behind that and the MapReduction to be able to give you a search result back in seconds. Think about that work, think about that process. Taking and pursing those search terms, dividing that over thousands of [inaudible 02:05:01], being able to then search segments of the index of the internet and to be able to intelligent reduce that to be able to get you an answer within seconds that is prioritized, that is sorted. How many of you, out there, have to go to page two and page three to get the results you want, today? You don't because of the power of that technology. We think it's time to bring that to the consumer of the data center enterprise space and that's what we're doing at Google. Speaker 2: Gotcha, man. So I know we've done a lot of things now over the last year worth of collaboration. Why don't we spend a few minutes talking through a couple things that we're started on, starting with [inaudible 02:05:36] going into com and then we'll talk a little bit about XI. Bill: I think one of the advantages here, as we start to move up the stack and virtualize things to your point, right, is virtual machines and the work required of that still takes a fair amount of effort of which you're doing a lot to reduce, right, you're making that a lot simpler and seamless across both On-Prem and the cloud. The next step in the journey is to really leverage the power of containers. Lightweight objects that allow you to be able to head and surface functionality without being dependent upon the operating system or the VM to be able to do that work. And then having the orchestration layer to be able to run that in the context of cloud and On-Prem We've been very successful in building out the Kubernetes and Docker infrastructure for everyone to use. The challenge that you're solving is how to we actually bridge the gap. How do we actually make that work seamlessly between the On-Premise world and the cloud and that's where our partnership, I think, is so valuable. It's cuz you're bringing the secret sauce to be able to make that happen. Speaker 2: Gotcha, gotcha. One last thing. We talked about Xi and the two companies are working really closely where, essentially the Nutanix fabric can seamlessly seep into every Google platform as infrastructure worldwide. Xi, as a service, could be delivered natively with GCP, leading to some additional benefits, right? Bill: Absolutely. I think, first and foremost, the infrastructure we're building at scale opens up all sorts of possibilities. I'll just use, maybe, two examples. The first one is network. If you think about building out a global network, there's a lot of effort to do that. Google is doing that as a byproduct of serving our consumers. So, if you think about YouTube, if you think about there's approximately a billion hours of YouTube that's watched every single day. If you think about search, we have approximately two trillion searches done in a year and if you think about the number of containers that we run in a given week, we run about two billion containers per week. So the advantage of being able to move these workloads through Xi in a disaster recovery scenario first is that you get to take advantage of the scale. Secondly, it's because of the network that we've built out, we had to push the network out to the edge. So every single one of our consumers are using YouTube and search and Google Play and all those services, by the way we have over eight services today that have more than a billion simultaneous users, you get to take advantage of that network capacity and capability just by moving to the cloud. And then the last piece, which is a real advantage, we believe, is that it's not just about the workloads you're moving but it's about getting access to new services that cloud preventers, like Google, provide. For example, are you taking advantage like the next generation Hadoop, which is our big query capability? Are you taking advantage of the artificial intelligence derivative APIs that we have around, the video API, the image API, the speech-to-text API, mapping technology, all those additional capabilities are now exposed to you in the availability of Google cloud that you can now leverage directly from systems that are failing over and systems that running in our combined environment. Speaker 2: A true converged fabric across public and private. Bill: Absolutely. Speaker 2: Great stuff Bill. Thank you, sir. Bill: Thank you, appreciate it. Speaker 2: Good to have you. So, the last few slides. You know we've talked about, obviously One OS, One Click and eCloud. At the end of the day, it's pretty obvious that we're evaluating the move from a form factor perspective, where it's not just an OS across multiple platforms but it's also being distributed genuinely from consuming itself as an appliance to a software form factor, to subscription form factor. What you saw today, obviously, is the fact that, look you know we're still continuing, the velocity has not slowed down. In fact, in some cases it's accelerated. If you ask my quality guys, if you ask some of our customers, we're coming out fast and furious with a lot of these capabilities. And some of this directly reflects, not just in features, but also in performance, just like a public cloud, where our performance curve is going up while our price-performance curve is being more attractive over a period of time. And this is balancing it with quality, it is what differentiates great companies from good companies, right? So when you look at the number of nodes that have been shipping, it was around ten more nodes than where we were a few years ago. But, if you look at the number of customer-found defects, as a percentage of number of nodes shipped it is not only stabilized, it has actually been coming down. And that's directly reflected in the NPS part. That most of you guys love. How many of you guys love your Customer Support engineers? Give them a round of applause. Great support. So this balance of velocity, plus quality, is what differentiates a company. And, before we call it a wrap, I just want to leave you with one thing. You know, obviously, we've talked a lot about technology, innovation, inspiration, and so forth. But, as I mentioned, from last night's discussion with Sir Ranulph, let's think about a few things tonight. Don't take technology too seriously. I'll give you a simple story that he shared with me, that puts things into perspective. The year was 1971. He had come back from Aman, from his service. He was figuring out what to do. This was before he became a world-class explorer. 1971, he had a job interview, came down from Scotland and applied for a role in a movie. And he failed that job interview. But he was selected from thousands of applicants, came down to a short list, he was a ... that's a hint ... he was a good looking guy and he lost out that role. And the reason why I say this is, if he had gotten that job, first of all I wouldn't have met him, but most importantly the world wouldn't have had an explorer like him. The guy that he lost out to was Roger Moore and the role was for James Bond. And so, when you go out tonight, enjoy with your friends [inaudible 02:12:06] or otherwise, try to take life a little bit once upon a time or more than once upon a time. Have fun guys, thank you. Speaker 5: Ladies and gentlemen please make your way to the coffee break, your breakout sessions will begin shortly. Don't forget about the women's lunch today, everyone is welcome. Please join us. You can find the details in the mobile app. Please share your feedback on all sessions in the mobile app. There will be prizes. We will see you back here and 5:30, doors will open at 5, after your last breakout session. Breakout sessions will start sharply at 11:10. Thank you and have a great day. Section 13 of 13 [02:00:00 - 02:13:42]

>> Narrator: Live from Washington, DC, It's The Cube, covering .NEXT Conference. Brought to you by Nutanix. >> Welcome back, everybody. This is day 2 of the Nutanix .NEXT Conference, #NEXTConf. This is The Cube, the leader in live tech coverage and my name is Dave Vellante, and I'm here with my co-host, Stu Miniman. As I said, this is day 2 and today, the keynotes were in the morning. Yesterday, they were in the afternoon. So, when we left you yesterday we went right in the keynotes with CEO Dheeraj Pandey, who gave a very, as he always does, Stu, a very philosophical deep discussion, a lot of commentary from thought leaders and some customers. Somewhat long, although shorter than last year, but that's Nutanix likes to do things. They want you to bake and savor what's going on in their community and their ecosystem. Today, it was all about product. Sunil Potti got up and he basically took us through the products, the new innovations, the strategies, and that's what we're going to unpack this morning in the next couple of minutes and then go deeper throughout the day. So, Stu, it's all about cloud. Two years ago, at the first, the inaugural .NEXT Conference, Nutanix laid out a strategy of moving beyond hyper-converged infrastructure. This is at a time when everybody was pivoting to hyper-converged from the traditional converged, or the legacy infrastructure. And they laid this long term, little bit fuzzy vision about supporting cloud and multi-cloud. At the time, it was really focused on migrating off of VMware onto other platforms, but they sort of teased us with a vision of cloud. Today, we saw that vision come into a little bit more clarity, but there's still a lot of questions. Give me your summary on the keynote today and specifically, this Nutanix strategy of being the cloud operating system. >> And Dave, I think vision is the right term because unlike previous announcements by Nutanix, a lot of what they laid out here are things that in development. The two big announcements that they talked about yesterday and went through a little bit more today, Calm, which was an acquisition that they had made last year really, to be able to help them try to be that management across multi-clouds. That's in process I believe, if I remember right, it's the second half of this year, it will be shipping. I got a note from a friend of mine, and they're like, okay this is the 687th product in the industry that's trying to solve this problem because everybody is trying to solve this problem. Microsoft wants to be the player here. Companies like CA want to be in the lead here. Of course, Amazon would like to manage everything because just put it on Amazon. So, why is Nutanix position to be the control playing layer of a multi-cloud world. Nutanix is a small player. They've got some good pieces. They're starting to touch some of the environment, but I'm not sure. In the second one, the zee or jee cloud services, that's not- >> Zee, Si, jee (laughs) ... >> It's spelled X-I and we've heard multiple pronunciations. We'll get Sunil on this and get him- >> X-I is, as you told me this morning, the last two letters of Nutanix flipped. >> Yeah, so, it's a DR service that they're going to deploy. It's in development right now. I don't think we know anything about pricing yet. It's not going to ship until the first half of next year, is the target for that. But really lays out, as to, I think we really want to get to the Google relationship and beyond. How does Nutanix get to be more than just an on premises infrastructure layer. They've already sold to service providers. I've talked to companies that not only build their infrastructure, but sell services based on using Nutanix as an infrastructure, but they're going to take that full Nutanix stack and make it available in Google data centers around the world, and we expect them to expand those partnerships and what Sunil was hitting on at the end of his keynote is, the terminology they used is your cloud native, your mode one applications, a lot of times those start in the public cloud, and sometimes those come back to an infrastructure like in Nutanix, where I can run it in a similar operational model. And then, do we take our mode two applications, the big legacy, the thousands of applications that we have, do we try to shove those in to the public cloud? And the challenge there is if it's not the same stack on both ends, it's not the same operating model, there's challenges and I know we wanted to use that out a little bit. >> So, Stu, I had a conversation with Paul Moritz in 2009, where he said to me, "The advantage that Amazon and Google and Facebook have is that they have homogeneity in their data centers." And he said, "For us to succeed in cloud, we have to have homogeneity in both on prim and in the cloud." And so he, at that point, indicated that the VMware strategy was going to be putting, essentially, VMware in these clouds and the cloud service providers, as we all know, that manifested itself in vCloud Air. We've heard the story before. How is this different? >> First of all, vCloud Air, most people would agree, a failed strategy. >> Who would not agree with that? (laughs) >> Right. The biggest challenges we saw on vCloud Air when I talked to the community is VMware said, "Wait, we're going to build it ourselves and run it," and customers were like well, I've got lots of partners, and they're like, well, we'll partner with Savvis. And Savvis made no margin on this. Couldn't do anything else. They tried to go to lots of other service providers, and they were, I don't know how I add services, I don't know how I add value. >> So, how is this different? >> You look at this and say okay, well, Nutanix is going to start with building it themselves because they want to understand it. I've talked to service providers here that say, "Hey Nutanix, we have experience and we know how to do this. We could advise you on this." Of course, Nutanix, they didn't come out and say this is the future, everybody run every service on this. They say, hey, we're working on a DR solution, we're a little bit measured. This is where we're going. I think there's time for it to mature, time for Nutanix to work with their partner Ecosystems. The Google announcement gives Nutanix credibility, but a lot of it is pressure leased slideware, if you will. You say, "Okay, great, I'm going to take Z and run it on GCP." Well, this is a product next year that, maybe, will probably run somewhere with Google. Where's the details? >> Okay, talk about lift and shifts, too. >> Thanks Dave. We talked yesterday to one of the doers, one of the practitioners of Nutanix, and they said, "Hey, I'm looking at containers." And we said, "Hey, are you looking at Nutanix for this?" They say, "Well, now that I hear they're working with Google, who's obviously a thought leader in driving that, that will drive them closer to us." So, question is, the Z cloud service is based on AHV. So, if I bought in, there are some customers who say "I want a virtualized environment that I can mirror," but most of us look at it and say virtualization is kind of heavy for taking something to more the public cloud. If I containerized, then I can use kubernetes, and I can move applications a little more. Debate we're having internally, Dave, often is how much of the stack do I have to have to complete hardware all the way through on both ends? Do I have something like kubernetes, which allows me to take containerized applications and move them, because lift and shift, I was at the Cloud Foundry Summit, and it said let me build my new applications on the platform, and then I'll start migrating some over so I have that shared management platform to hold the environment. But, it's challenging. The same thing we've had discussions. Amazon, there's certain applications we build there, Amazon would love you to take all of your applications, but it's not trivial. Porting something over is not easy, is one of the points that Nutanix was making, and we've heard from the community that Amazon really doesn't want you just to trying to lift the whole thing and shift it. You should be doing some refactoring, or start pulling apart your application- >> They want you to pull change the operating model. So, Stu, is this a blind spot for Nutanix? Let me back up. We asked Pat Gelsinger, when Docker and Core OS came on the scene, what does that mean for you? He said, "Hey, we've got the best container in the world. It's VMware." And we all kind of went, mm, I don't know. Is this a similar head wind potentially? Is this a threat that Nutanix is so VM focused versus containerize? Or can they just embrace containers? >> Great question. Something I want to pose to the Nutanix executives, Dave, because there's multiple paths forward. When we asked Amazon a similar question, they said to get from your legacy data centers to public cloud, here are the eight R's, as to refactor, re-platform, redo this, things like that. There's more than one solution. As we know, customers have lots of applications. There's some that you're going to leave them sitting on. That old hardware in the back corner and run it until that thing burns into the ground. >> Running on CMS. >> Absolutely, Dave. Many of those things got moved into VM environments and are going to stay there for awhile. So, unfortunately, everything in IT tends to be additive, and we've got all of the debt of ... >> Don Tapscott. God created the world in six days, but he didn't have an install base. The technical debt. >> Technical debt. >> All right, Stu, we got to wrap. This is day two of Nutanix. We're going all day long. Today, heavy executive, partner and customer day. We have Sunil coming on. We're going to go deep on products. Chad Sakac coming on from Dell-EMC. We got Dheeraj, of course, the CEO. Stay tuned, everybody. Stu Minima, Dave Vellante. We'll be right back after this short break.