(low-key music) >> The cube's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (uplifting electronic music) (crowd chattering in background) >> Welcome back to Spain, everybody. My name's Dave Vellante. I'm here with Dave Nicholson. We are live at the Fira in Barcelona, covering MWC23 day four. We've been talking about, you know, 5G all week. We're going to talk about it some more. Jillian Kaplan is here. She's the head of Global Telecom Thought Leadership at Dell Technologies, and we're pleased to have Meg Knauth, who's the Vice President for Digital Platform Engineering at T-Mobile. Ladies, welcome to theCUBE. Thanks for coming on. >> Thanks for having us. >> Yeah, thank you. >> All right, Meg, can you explain 5G and edge to folks that may not be familiar with it? Give us the 101 on 5G and edge. >> Sure, I'd be happy to. So, at T-Mobile, we want businesses to be able to focus on their business outcomes and not have to stress about network technology. So we're here to handle the networking behind the scenes for you to achieve your business goals. The main way to think about 5G is speed, reduced latency, and heightened security. And you can apply that to so many different business goals and objectives. You know, some of the use cases that get touted out the most are in the retail manufacturing sectors with sensors and with control of inventory and things of that nature. But it can be applied to pretty much any industry because who doesn't need more (chuckles) more speed and lower latency. >> Yeah. And reliability, right? >> Exactly. >> I mean, that's what you're going to have there. So it's not like it's necessarily going to- you know, you think about 5G and these private networks, right? I mean, it's not going to, oh, maybe it is going to eat into, there's a Venn there, I know, but it's not going to going to replace wireless, right? I mean, it's new use cases. >> Yeah. >> Maybe you could talk about that a little bit. >> Yeah, they definitely coexist, right? And Meg touched a little bit on like all the use cases that are coming to be, but as we look at 5G, it's really the- we call it like the Enterprise G, right? It's where the enterprise is going to be able to see changes in their business and the way that they do things. And for them, it's going to be about reducing costs and heightening ROI, and safety too, right? Like being able to automate manufacturing facilities where you don't have workers, like, you know, getting hit by various pieces of equipment and you can take them out of harm's way and put robots in their place. And having them really work in an autonomous situation is going to be super, super key. And 5G is just the, it's the backbone of all future technologies if you look at it. We have to have a network like that in order to build things like AI and ML, and we talk about VR and the Metaverse. You have to have a super reliable network that can handle the amount of devices that we're putting out today, right? So, extremely important. >> From T-Mobile's perspective, I mean we hear a lot about, oh, we spent a lot on CapEx, we know that. You know, trillion and a half over the next seven years, going into 5G infrastructure. We heard in the early keynotes at MWC, we heard the call to you know, tax the over the top vendors. We heard the OTT, Netflix shot back, they said, "Why don't you help us pay for the content that we're creating?" But, okay, so I get that, but telcos have a great business. Where's T-Mobile stand on future revenue opportunities? Are you looking to get more data and monetize that data? Are you looking to do things like partner with Dell to do, you know, 5G networks? Where are the opportunities for T-Mobile? >> I think it's more, as Jillian said, it's the opportunities for each business and it's unique to those businesses. So we're not in it just for ourselves. We're in it to help others achieve their business goals and to do more with all of the new capabilities that this network provides. >> Yeah, man, I like that answer because again, listening to some of the CEOs of the large telcos, it's like, hmm, what's in it for me as the customer or the business? I didn't hear enough of that. And at least in the early keynotes, I'm hearing it more, you know, as the show goes on. But I don't know, Dave, what do you think about what you've heard at the event? >> Well, I'm curious from T-Mobile's perspective, you know when a consumer thinks about 5G, we think of voice, text, and data. And if we think about the 5G network that you already have in place, I'm curious, if you can share this kind of information, what percentage of that's being utilized now? How much is available for the, you know, for the Enterprise G that we're talking about, and maybe, you know, in five years in the future, do you have like a projected mix of consumer use versus all of these back office, call them processes that a consumer's not aware of, but you know the factory floor being connected via 5G, that frontiers that emerges, where are we now and what are you looking towards? Does that make sense? Kind of the mixed question? >> Hand over the business plan! (all laugh) >> Yeah! Yeah, yeah, yeah. >> Yeah, I- >> I want numbers Meg, numbers! >> Wow. (Dave and Dave laugh) I'm probably actually not the right person to speak to that. But as you know, T-Mobile has the largest 5G network in North America, and we just say, bring it, right? Let's talk- >> So you got room, you got room for Jillian's stuff? >> Yeah, let's solve >> Well, we can build so many >> business problems together. >> private 5G networks, right? Like I would say like the opportunities are... There's not a limit, right? Because as we build out these private networks, right? We're not on a public network when we're talking about like connecting these massive factories or connecting like a retail store to you and your house to be able to basically continue to try on the clothes remotely, something like that. It's limitless and what we can build- >> So they're related, but they're not necessarily mutually exclusive in the sense that what you are doing in the factory example is going to interfere with my ability to get my data through T-mobile. >> No, no, I- >> These are separated. >> Yeah. Yeah. >> Okay. >> As we build out these private networks and these private facilities, and there are so many applications in the consumer space that haven't even been realized yet. Like, when we think about 4G, when 4G launched, there were no applications that needed 4G to run on our cell phones, right? But then the engineers got to work, right? And we ended up with Uber and Instagram stories and all these applications that require 4G to launch. And that's what's going to happen with 5G too, it's like, as the network continues to get built, in the consumer space as well as the enterprise space, there's going to be new applications realized on this is all the stuff that we can do with this amazing network and look how many more devices and look how much faster it is, and the lower latency and the higher bandwidth, and you know, what we can really build. And I think what we're seeing at this show compared to last year is this stuff actually in practice. There was a lot of talk last year, like about, oh, this is what we can build, but now we're building it. And I think that's really key to show that companies like T-Mobile can help the enterprise in this space with cooperation, right? Like, we're not just talking about it now, we're actually putting it into practice. >> So how does it work? If I put in a private network, what are you doing? You slice out a piece of the network and charge me for it and then I get that as part of my private network. How does it actually work for the customer? >> You want to take that one? >> So I was going to say, yeah, you can do a network slice. You can actually physically build a private network, right? It depends, there's so many different ways to engineer it. So I think you can do it either way, basically. >> We just, we don't want it to be scary, right? >> Yep. >> So it starts with having a conversation about the business challenges that you're facing and then backing it into the technology and letting the technology power those solutions. But we don't want it to be scary for people because there's so much buzz around 5G, around edge, and it can be overwhelming and you can feel like you need a PhD in engineering to have a conversation. And we just want to kind of simplify things and talk in your language, not in our language. We'll figure out the tech behind the scenes. Just tell us what problems we can solve together. >> And so many non-technical companies are having to transform, right? Like retail, like manufacturing, that haven't had to be tech companies before. But together with T-Mobile and Dell, we can help enable that and make it not scary like Meg said. >> Right, so you come into my factory, I say, okay, look around. I got all these people there, and they're making hoses and they're physically putting 'em together. And we go and we have to take a physical measurement as to, you know, is it right? And because if we don't do that, then we have to rework it. Okay, now that's a problem. Okay, can you help me digitize that business? I need a network to do that. I'm going to put in some robots to do that. This is, I mean, I'm making this up but this has got to be a common use case, right? >> Yeah. >> So how do you simplify that for the business owner? >> So we start with what we can provide, and then in some cases you need additional solution providers. You might need a robotics company, you might need a sensor company. But we have those contacts to bring that together for you so that you don't have to be the expert in all those things. >> And what do I do with all the data that I'm collecting? Because, you know, I'm not really a data expert. Maybe, you know, I'm good at putting hoses together, but what's the data layer look like here? (all laughing) >> It's a hose business! >> I know! >> Great business. >> Back to the hoses again. >> There's a lot of different things you can do with it, right? You can collect it in a database, you can send it up to a cloud, you can, you know, use an edge device. It depends how we build the network. >> Dave V.: Can you guys help me do that? Can you guys- >> Sure, yeah. >> Help me figure that out. Should I put it into cloud? Should I use this database or that data? What kind of skills do I need? >> And it depends on the size of the network, right? And the size of the business. Like, you know, there's very simple. You don't have to be a massive manufacturer in order to install this stuff. >> No, I'm asking small business questions. >> Yeah. >> Right, I might not have this giant IT team. I might not have somebody who knows how to do ETL and PBA. >> Exactly. And we can talk to you too about what data matters, right? And we can, together, talk about what data might be the most valuable to you. We can talk to you about how we use data. But again, simplifying it down and making it personal to your business. >> Your point about scary is interesting, because no one has mentioned that until you did in four days. Three? Four days. Somebody says, let's do a private 5G network. That sounds like you're offering, you know, it's like, "Hey, you know what we should do Dave? We'll build you a cruise ship." It's like, I don't need a cruise ship, I just want to go bass fishing. >> Right, right, right. >> But in fact, these things are scalable in the sense that it can be scaled down from the trillions of dollars of infrastructure investment. >> Yeah. >> Yeah. It needs to be focused on your outcome, right? And not on the tech. >> When I was at the Dell booth I saw this little private network, it was about this big. I'm like, how much is that? I want one of those. (all laugh) >> I'm not the right person to talk about that! >> The little black one? >> Yes. >> I wanted one of those, too! >> I saw it, it had a little case to carry it around. I'm like, that could fit in my business. >> Just take it with you. >> theCUBE could use that! (all laugh) >> Anything that could go in a pelican case, I want. >> It's true. Like, it's so incredibly important, like you said, to focus on outcomes, right? Not just tech for the sake of tech. What's the problem? Let's solve the problem together. And then you're getting the outcome you want. You'll know what data you need. If you know what the problem is, you're like, okay this is the data I need to know if this problem is solved or not. >> So it sounds like 2022 was the year of talking about it. 2023, I'm inferring is the year of seeing it. >> Yep. >> And 2024 is going to be the year of doing it? >> I think we're doing it now. >> We're doing it now. >> Yeah. >> Okay. >> Yeah, yeah. We're definitely doing it now. >> All right. >> I see a lot of this stuff being put into place and a lot more innovation and a lot more working together. And Meg mentioned working with other partners. No one's going to do this alone. You've got to like, you know, Dell especially, we're focused on open and making sure that, you know, we have the right software partners. We're bringing in smaller players, right? Like ISVs too, as well as like the big software guys. Incredibly, incredibly important. The sensor companies, whatever we need you've got to be able to solve your customer's issue, which in this case, we're looking to help the enterprise together to transform their space. And Dell knows a little bit about the enterprise, so. >> So if we are there in 2023, then I assume 2024 will be the year that each of your companies sets up a dedicated vertical to address the hose manufacturing market. (Meg laughing) >> Oh, the hose manufacturing market. >> Further segmentation is usually a hallmark of the maturity of an industry. >> I got a lead for you. >> Yeah, there you go. >> And that's one thing we've done at Dell, too. We've built like this use case directory to help the service providers understand what, not just say like, oh, you can help manufacturers. Yeah, but how, what are the use cases to do that? And we worked with a research firm to figure out, like, you know these are the most mature, these are the best ROIs. Like to really help hone in on exactly what we can deploy for 5G and edge solutions that make the most sense, not only for service providers, right, but also for the enterprises. >> Where do you guys want to see this partnership go? Give us the vision. >> To infinity and beyond. To 5G! (Meg laughing) To 5G and beyond. >> I love it. >> It's continuation. I love that we're partnering together. It's incredibly important to the future of the business. >> Good deal. >> To bring the strengths of both together. And like Jillian said, other partners in the ecosystem, it has to be approached from a partnership perspective, but focused on outcomes. >> Jillian: Yep. >> To 5G and beyond. I love it. >> To 5G and beyond. >> Folks, thanks for coming on theCUBE. >> Thanks for having us. >> Appreciate your insights. >> Thank you. >> All right. Dave Vellante for Dave Nicholson, keep it right there. You're watching theCUBE. Go to silliconANGLE.com. John Furrier is banging out all the news. theCUBE.net has all the videos. We're live at the Fira in Barcelona, MWC23. We'll be right back. (uplifting electronic music)

>> Announcer: theCUBE's live coverage is made possible by funding from Dell Technologies creating technologies that drive human progress. (upbeat music) >> Hey everyone, welcome back to theCube's first day of coverage of MWC 23 from Barcelona, Spain. Lisa Martin here with Dave Vellante and Dave Nicholson. I'm literally in between two Daves. We've had a great first day of coverage of the event. There's been lots of conversations, Dave, on disaggregation, on the change of mobility. I want to be able to get your perspectives from both of you on what you saw on the show floor, what you saw and heard from our guests today. So we'll start with you, Dave V. What were some of the things that were our takeaways from day one for you? >> Well, the big takeaway is the event itself. On day one, you get a feel for what this show is like. Now that we're back, face-to-face kind of pretty much full face-to-face. A lot of excitement here. 2000 plus exhibitors, I mean, planes, trains, automobiles, VR, AI, servers, software, I mean everything. I mean, everybody is here. So it's a really comprehensive show. It's not just about mobile. That's why they changed the name from Mobile World Congress. I think the other thing is from the keynotes this morning, I mean, you heard, there's a lot of, you know, action around the telcos and the transformation, but in a lot of ways they're sort of protecting their existing past from the future. And so they have to be careful about how fast they move. But at the same time if they don't move fast, they're going to get disrupted. We heard some complaints, essentially, you know, veiled complaints that the over the top guys aren't paying their fair share and Telco should be able to charge them more. We heard the chairman of Ericsson talk about how we can't let the OTTs do that again. We're going to charge directly for access through APIs to our network, to our data. We heard from Chris Lewis. Yeah. They've only got, or maybe it was San Ji Choha, how they've only got eight APIs. So, you know the developers are the ones who are going to actually build out the innovation at the edge. The telcos are going to provide the connectivity and the infrastructure companies like Dell as well. But it's really to me all about the developers. And that's where the action's going to be. And it's going to be interesting to see how the developers respond to, you know, the gun to the head. If you want access, you're going to have to pay for it. Now maybe there's so much money to be made that they'll go for it, but I feel like there's maybe a different model. And I think some of the emerging telcos are going to say, you know what, here developers, here's a platform, have at it. We're not going to charge you for all the data until you succeed. Then we're going to figure out a monetization model. >> Right. A lot of opportunity for the developer. That skillset is certainly one that's in demand here. And certainly the transformation of the telecom industry is, there's a lot of conundrums that I was hearing going on today, kind of chicken and egg scenarios. But Dave, you had a chance to walk around the show floor. We were here interviewing all day. What were some of the things that you saw that really stuck out to you? >> I think I was struck by how much attention was being paid to private 5G networks. You sort of read between the lines and it appears as though people kind of accept that the big incumbent telecom players are going to be slower to move. And this idea of things like open RAN where you're leveraging open protocols in a stack to deliver more agility and more value. So it sort of goes back to the generalized IT discussion of moving to cloud for agility. It appears as though a lot of players realize that the wild wild west, the real opportunity, is in the private sphere. So it's really interesting to see how that works, how 5G implemented into an environment with wifi how that actually works. It's really interesting. >> So it's, obviously when you talk to companies like Dell, I haven't hit HPE yet. I'm going to go over there and check out their booth. They got an analyst thing going on but it's really early days for them. I mean, they started in this business by taking an X86 box, putting a name on it, you know, that sounded like it was edged, throwing it over, you know, the wall. That's sort of how they all started in this business. And now they're, you know, but they knew they had to form partnerships. They had to build purpose-built systems. Now with 16 G out, you're seeing that. And so it's still really early days, talking about O RAN, open RAN, the open RAN alliance. You know, it's just, I mean, not even, the game hasn't even barely started yet but we heard from Dish today. They're trying to roll out a massive 5G network. Rakuten is really focused on sort of open RAN that's more reliable, you know, or as reliable as the existing networks but not as nearly as huge a scale as Dish. So it's going to take a decade for this to evolve. >> Which is surprising to the average consumer to hear that. Because as far as we know 5G has been around for a long time. We've been talking about 5G, implementing 5G, you sort of assume it's ubiquitous but the reality is it is just the beginning. >> Yeah. And you know, it's got a fake 5G too, right? I mean you see it on your phone and you're like, what's the difference here? And it's, you know, just, >> Dave N.: What does it really mean? >> Right. And so I think your point about private is interesting, the conversation Dave that we had earlier, I had throughout, hey I don't think it's a replacement for wifi. And you said, "well, why not?" I guess it comes down to economics. I mean if you can get the private network priced close enough then you're right. Why wouldn't it replace wifi? Now you got wifi six coming in. So that's a, you know, and WiFi's flexible, it's cheap, it's good for homes, good for offices, but these private networks are going to be like kickass, right? They're going to be designed to run whatever, warehouses and robots, and energy drilling facilities. And so, you know the economics I don't think are there today but maybe they can be at volume. >> Maybe at some point you sort of think of today's science experiment becoming the enterprise-grade solution in the future. I had a chance to have some conversations with folks around the show. And I think, and what I was surprised by was I was reminded, frankly, I wasn't surprised. I was reminded that when we start talking about 5G, we're talking about spectrum that is managed by government entities. Of course all broadcast, all spectrum, is managed in one way or another. But in particular, you can't simply put a SIM in every device now because there are a lot of regulatory hurdles that have to take place. So typically what these things look like today is 5G backhaul to the network, communication from that box to wifi. That's a huge improvement already. So yeah, my question about whether, you know, why not put a SIM in everything? Maybe eventually, but I think, but there are other things that I was not aware of that are standing in the way. >> Your point about spectrum's an interesting one though because private networks, you're going to be able to leverage that spectrum in different ways, and tune it essentially, use different parts of the spectrum, make it programmable so that you can apply it to that specific use case, right? So it's going to be a lot more flexible, you know, because I presume the needs spectrum needs of a hospital are going to be different than, you know, an agribusiness are going to be different than a drilling, you know, unit, offshore drilling unit. And so the ability to have the flexibility to use the spectrum in different ways and apply it to that use case, I think is going to be powerful. But I suspect it's going to be expensive initially. I think the other thing we talked about is public policy and regulation, and it's San Ji Choha brought up the point, is telcos have been highly regulated. They don't just do something and ask for permission, you know, they have to work within the confines of that regulated environment. And there's a lot of these greenfield companies and private networks that don't necessarily have to follow those rules. So that's a potential disruptive force. So at the same time, the telcos are spending what'd we hear, a billion, a trillion and a half over the next seven years? Building out 5G networks. So they got to figure out, you know how to get a payback on that. They'll get it I think on connectivity, 'cause they have a monopoly but they want more. They're greedy. They see the over, they see the Netflixes of the world and the Googles and the Amazons mopping up services and they want a piece of that action but they've never really been good at it. >> Well, I've got a question for both of you. I mean, what do you think the odds are that by the time the Shangri La of fully deployed 5G happens that we have so much data going through it that effectively it feels exactly the same as 3G? What are the odds? >> That's a good point. Well, the thing that gets me about 5G is there's so much of it on, if I go to the consumer side when we're all consumers in our daily lives so much of it's marketing hype. And, you know all the messaging about that, when it's really early innings yet they're talking about 6G. What does actual fully deployed 5G look like? What is that going to enable a hospital to achieve or an oil refinery out in the middle of the ocean? That's something that interests me is what's next for that? Are we going to hear that at this event? >> I mean, walking around, you see a fair amount of discussion of, you know, the internet of things. Edge devices, the increase in connectivity. And again, what I was surprised by was that there's very little talk about a sim card in every one of those devices at this point. It's like, no, no, no, we got wifi to handle all that but aggregating it back into a central network that's leveraging 5G. That's really interesting. That's really interesting. >> I think you, the odds of your, to go back to your question, I think the odds are even money, that by the time it's all built out there's going to be so much data and so much new capability it's going to work similarly at similar speeds as we see in the networks today. You're just going to be able to do so many more things. You know, and your video's going to look better, the graphics are going to look better. But I think over the course of history, this is what's happening. I mean, even when you go back to dial up, if you were in an AOL chat room in 1996, it was, you know, yeah it took a while. You're like, (screeches) (Lisa laughs) the modem and everything else, but once you were in there- >> Once you're there, 2400 baud. >> It was basically real time. And so you could talk to your friends and, you know, little chat room but that's all you could do. You know, if you wanted to watch a video, forget it, right? And then, you know, early days of streaming video, stop, start, stop, start, you know, look at Amazon Prime when it first started, Prime Video was not that great. It's sort of catching up to Netflix. But, so I think your point, that question is really prescient because more data, more capability, more apps means same speed. >> Well, you know, you've used the phrase over the top. And so just just so we're clear so we're talking about the same thing. Typically we're talking about, you've got, you have network providers. Outside of that, you know, Netflix, internet connection, I don't need Comcast, right? Perfect example. Well, what about the over the top that's coming from direct satellite communications with devices. There are times when I don't have a signal on my, happens to be an Apple iPhone, when I get a little SOS satellite logo because I can communicate under very limited circumstances now directly to the satellite for very limited text messaging purposes. Here at the show, I think it might be a Motorola device. It's a dongle that allows any mobile device to leverage direct satellite communication. Again, for texting back to the 2,400 baud modem, you know, days, 1200 even, 300 even, go back far enough. What's that going to look like? Is that too far in the future to think that eventually it's all going to be over the top? It's all going to be handset to satellite and we don't need these RANs anymore. It's all going to be satellite networks. >> Dave V.: I think you're going to see- >> Little too science fiction-y? (laughs) >> No, I, no, I think it's a good question and I think you're going to see fragments. I think you're going to see fragmentation of private networks. I think you're going to see fragmentation of satellites. I think you're going to see legacy incumbents kind of hanging on, you know, the cable companies. I think that's coming. I think by 2030 it'll, the picture will be much more clear. The question is, and I think it's come down to the innovation on top, which platform is going to be the most developer friendly? Right, and you know, I've not heard anything from the big carriers that they're going to be developer friendly. I've heard "we have proprietary data that we're going to charge access for and developers are going to have to pay for that." But I haven't heard them saying "Developers, developers, developers!" You know, Steve Bomber running around, like bend over backwards for developers, they're asking the developers to bend over. And so if a network can, let's say the satellite network is more developer friendly, you know, you're going to see more innovation there potentially. You know, or if a dish network says, "You know what? We're going after developers, we're going after innovation. We're not going to gouge them for all this network data. Rather we're going to make the platform open or maybe we're going to do an app store-like model where we take a piece of the action after they succeed." You know, take it out of the backend, like a Silicon Valley VC as opposed to an East Coast VC. They're not going to get you in the front end. (Lisa laughs) >> Well, you can see the sort of disruptive forces at play between open RAN and the legacy, call it proprietary stack, right? But what is the, you know, if that's sort of a horizontal disruptive model, what's the vertically disruptive model? Is it private networks coming in? Is it a private 5G network that comes in that says, "We're starting from the ground up, everything is containerized. We're going to go find people at KubeCon who are, who understand how to orchestrate with Kubernetes and use containers in microservices, and we're going to have this little 5G network that's going to deliver capabilities that you can't get from the big boys." Is there a way to monetize that? Is there a way for them to be disrupted, be disruptive, or are these private 5G networks that everybody's talking about just relegated to industrial use cases where you're just squeezing better economics out of wireless communication amongst all your devices in your factory? >> That's an interesting question. I mean, there are a lot of those smart factory industrial use cases. I mean, it's basically industry 4.0 use cases. But yeah, I don't count the cloud guys out. You know, everybody says, "oh, the narrative is, well, the latency of the cloud." Well, not if the cloud is at the edge. If you take a local zone and put storage, compute, and data right next to each other and the cloud model with the cloud APIs, and then you got an asynchronous, you know, connection back. I think that's a reasonable model. I think the cloud guys figured out developers, right? Pretty well. Certainly Microsoft and, and Amazon and Google, they know developers. I don't see any reason why they can't bring their model to the edge. So, and that's really disruptive to the legacy telco guys, you know? So they have to be careful. >> One step closer to my dream of eliminating the word "cloud" from IT lexicon. (Lisa laughs) I contend that it has always been IT, and it will always be IT. And this whole idea of cloud, what is cloud? If AWS, for example, is delivering hardware to the edge where it needs to be, is that cloud? Do we go back to the idea that cloud is an operational model and not a question of physical location? I hope we get to that point. >> Well, what's Apex and GreenLake? Apex is, you know, Dell's as a service. GreenLake is- >> HPE. >> HPE's as a service. That's outposts. >> Dave N.: Right. >> Yeah. >> That's their outpost. >> Yeah. >> Well AWS's position used to be, you know, to use them as a proxy for hyperscale cloud. We'll just, we'll grow in a very straight trajectory forever on the back of net new stuff. Forget about the old stuff. As James T. Kirk said of the Klingons, "let them die." (Lisa laughs) As far as the cloud providers were concerned just, yeah, let, let that old stuff go away. Well then they found out, there came a point in time where they realized there's a lot of friction and stickiness associated with that. So they had to deal with the reality of hybridity, if that's the word, the hybrid nature of things. So what are they doing? They're pushing stuff out to the edge, so... >> With the same operating model. >> With the same operating model. >> Similar. I mean, it's limited, right? >> So you see- >> You can't run a lot of database on outpost, you can run RES- >> You see this clash of Titans where some may have written off traditional IT infrastructure vendors, might have been written off as part of the past. Whereas hyperscale cloud providers represent the future. It seems here at this show they're coming head to head and competing evenly. >> And this is where I think a company like Dell or HPE or Cisco has some advantages in that they're not going to compete with the telcos, but the hyperscalers will. >> Lisa: Right. >> Right. You know, and they're already, Google's, how much undersea cable does Google own? A lot. Probably more than anybody. >> Well, we heard from Google and Microsoft this morning in the keynote. It'd be interesting to see if we hear from AWS and then over the next couple of days. But guys, clearly there is, this is a great wrap of day one. And the crazy thing is this is only day one. We've got three more days of coverage, more news, more information to break down and unpack on theCUBE. Look forward to doing that with you guys over the next three days. Thank you for sharing what you saw on the show floor, what you heard from our guests today as we had about 10 interviews. Appreciate your insights and your perspectives and can't wait for tomorrow. >> Right on. >> All right. For Dave Vellante and Dave Nicholson, I'm Lisa Martin. You're watching theCUBE's day one wrap from MWC 23. We'll see you tomorrow. (relaxing music)

>> Announcer: theCUBE's live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (upbeat music) >> Welcome to the Fira in Barcelona, everybody. This is theCUBE's coverage of MWC 23, day one of that coverage. We have four days of wall-to-wall action going on, the place is going crazy. I'm here with Dave Nicholson, Lisa Martin is also in the house. Today's ecosystem day, and we're really excited to have Manish Singh who's the CTO of the Telecom Systems Business unit at Dell Technologies. He's joined by Doug Wolf who's the head of strategy for the Telecom Systems Business unit at Dell. Gents, welcome. What a show. I mean really the first major MWC or used to be Mobile World Congress since you guys have launched your telecom business, you kind of did that sort of in the Covid transition, but really exciting, obviously a huge, huge venue to match the huge market. So Manish, how did you guys get into this? What did you see? What was the overall thinking to get Dell into this business? >> Manish: Yeah, well, I mean just to start with you know, if you look at the telecom ecosystem today, the service providers in particular, they are looking for network transformation, driving more disaggregation into their network so that they can get better utilization of the infrastructure, but then also get more agility, more cloud native characteristics onto their, for their networks in particular. And then further on, it's important for them to really start to accelerate the pace of innovation on the networks itself, to start more supply chain diversity, that's one of the challenges that they've been having. And so there've been all these market forces that have been really getting these service providers to really start to transform the way they have built the infrastructure in the past, which was legacy monolithic architectures to more cloud native disaggregated. And from a Dell perspective, you know, that really gives us the permission to play, to really, given all the expertise on the work we have done in the IT with all the IT transformations to leverage all that expertise and bring that to the service providers and really help them in accelerating their network transformation. So that's where the journey started. We've been obviously ever since then working on expanding the product portfolio on our compute platforms to bring Teleco great compute platforms with more capabilities than we can talk about that. But then working with partners and building the ecosystem to again create this disaggregated and open ecosystem that will be more cloud native and really meet the objective that the service providers are after. >> Dave Vellante: Great, thank you. So, Doug the strategy obviously is to attack this market, as Manish said, from an open standpoint, that's sort of new territory. It's like a little bit like the wild, wild west. So maybe you could double click on what Manish was saying from a, from a strategy standpoint, yes, the Telecos need to be more flexible, they need to be more open, but they also need this reliability piece. So talk about that from a strategy standpoint of what you guys saw. >> Doug: Yeah, absolutely. As Manish mentioned, you know, Dell getting into open systems isn't something new. You know, Dell has been kind of playing in that world for years and years, but the opportunity in Telecom that came was opening of the RAN, the core network, the edge, all of these with 5G really created a wide opening for us. So we started developing products and solutions, you know, built our first Telecom grade servers for open RAN over the last year, we'll talk about those at the show. But you know, as, as Manish mentioned, an open ecosystem is new to Telecom. I've been in the Telecom business along with Manish for, you know, 25 plus years and this is a new thing that they're embarking on. So started with virtualization about five, six years ago, and now moving to cloud native architectures on the core, suddenly there's this need to have multiple parties partner really well, share specifications, and put that together for an operator to consume. And I think that's just the start of really where all the challenges are and the opportunities that we see. >> Where are we in this transition cycle? When the average consumer hears 5G, feels like it's been around for a long time because it was hyped beforehand. >> Doug: Yeah. >> If you're talking about moving to an open infrastructure model from a proprietary closed model, when is the opportunity for Dell to become part of that? Is it, are there specific sites that have already transitioned to 5G, therefore they've either made the decision to be open or not? Or are there places where the 5G transition has taken place, and they might then make a transition to open brand with 5G? Where, where are we in that cycle? What does the opportunity look like? >> I'll kind of take it from the typology of the operator, and I'm sure Manish will build on this, but if I look back on the core, started to get virtualized you know, back around 2015-16 with some of the lead operators like AT&T et cetera. So Dell has been partnering with those operators for some years. So it really, it's happening on the core, but it's moving with 5G to more of a cloud-like architecture, number one. And number two, they're going beyond just virtualizing the network. You know, they previously had used OpenStack and most of them are migrating to more of a cloud native architecture that Manish mentioned. And that is a bit different in terms of there's more software vendors in that ecosystem because the software is disaggregated also. So Dell's been playing in the core for a number of years, but we brought out new solutions we've announced at the show for the core. And the parts that are really starting that transition of maybe where the core was back in 2015 is on the RAN and on the edge in particular. >> Because NFV kind of predated the ascendancy of cloud. >> Exactly, yeah. >> Right, so it really didn't have the impact that people had hoped. And there's some, when you look back, 'cause it's not same wine, new bottle as the open systems movement, there are a lot of similarities but you know, you mentioned cloud, and cloud native, you really didn't have, back in the nineties, true engineered systems. You didn't really have AI that, you know, to speak of at the sort of volume of the data that we have. So Manish, from a CTO's perspective, how are you attacking some of those differences in bringing that to market? >> Manish: Yeah, I mean, I think you touched on some very important points there. So first of all, the duck's point, a lot of this transformation started in the core, right? And as the technology evolution progress, the opportunities opened up. It has now come into the edge and the radio access network as well, in particular with open RAN. And so when we talk about the disaggregation of the infrastructure from the software itself and an open ecosystem, this now starts to create the opportunity to accelerate innovation. And I really want to pick up on the point that you'd said on AI, for example. AI and machine learning bring a whole new set of capabilities and opportunities for these service providers to drive better optimization, better performance, better sustainability and energy efficiency on their infrastructure, on and on and on. But to really tap into these technologies, they really need to open that up to third parties implementation solutions that are coming up. And again, the end objective remains to accelerate that innovation. Now that said, all these things need to be brought together, right? And delivered and deployed in the network without any degradation in the KPIs and actually improving the performance on different vectors, right? So this is what the current state of play is. And with this aggregation I'm definitely a believer that all these new technologies, including AI, machine learning, and there's a whole area, host area of problems that can be solved and attacked and are actually getting attacked by applying AI and machine learning onto these networks. >> Open obviously is good. Nobody's ever going to, you know, argue that open is a bad thing. It's like democracy is a good thing, right? At least amongst us. And so, but, the RAN, the open RAN, has to be as reliable and performant, right, as these, closed networks. Or maybe not, maybe it doesn't have to be identical. Just has to be close enough in order for that tipping point to occur. Is that a fair summarization? What are you guys hearing from carriers in terms of their willingness to sort of put their toe in the water and, and what could we expect in terms of the maturity model of, of open RAN and adoption? >> Right, so I mean I think on, on performance that, that's a tough one. I think the operators will demand performance and you've seen experiments, you've really seen more of the Greenfield operators kind of launch. >> Okay. >> Doug: Open RAN or vRAN type solutions. >> So they're going to disrupt. >> Doug: Yeah, they're going to disrupt. >> Yeah. >> Doug: And there's flexibility in an open RAN architecture also for 5G that they, that they're interested in and I think the Brownfield operators are too, but let's say maybe the Greenfield jump first in terms of doing that from a mass deployment perspective. But I still think that it's going to be critical to meet very similar SLAs and end user performance. And, you know, I think that's where, you know, maturity of that model is what's required. I think Brownfield operators are conservative in terms of, you know, going with something they know, but the opportunities and the benefits of that architecture and building new flexible, potentially cost advantaged over time solutions, that's what the, where the real interest is going forward. >> And new services that you can introduce much more quickly. You know, the interesting thing about Dell to me, you don't compete with the carriers, the public cloud vendors though, the carriers are concerned about them sort of doing an end run on them. So you provide a potential partnership for the carriers that's non-threatening, right? 'Cause you're, you're an arms dealer, you're selling hardware and software, right? But, but how do you see that? Because we heard in the keynote today, one of the Teleco, I think it was the chairman of Telefonica said, you know, cloud guys can't do this alone. You know, they need, you know, this massive, you know, build out. And so, what do you think about that in terms of your relationship with the carriers not being threatening? I mean versus say potentially the cloud guys, who are also your partners, I understand, it's a really interesting dynamic, isn't it? >> Manish: Yeah, I mean I think, you know, I mean, the way I look at it, the carriers actually need someone like Dell who really come in who can bring in the right capabilities, the right infrastructure, but also bring in the ecosystem together and deliver a performance solution that they can deploy and that they can trust, number one. Number two, to your point on cloud, I mean, from a Dell perspective, you know, we announced our Dell Telecom Multicloud Foundation and as part of that last year in September, we announced what we call is the Dell Telecom Infrastructure Blocks. The first one we announced with Wind River, and this is, think of it as the, you know, hardware and the cashier all pre-integrated with lot of automation around it, factory integrated, you know, delivered to customers in an integrated model with all the licenses, everything. And so it starts to solve the day zero, day one, day two integration deployment and then lifecycle management for them. So to broaden the discussion, our view is it's a multicloud world, the future is multicloud where you can have different clouds which can be optimized for different workloads. So for example, while our work with Wind River initially was very focused on virtualization of the radio access network, we just announced our infrastructure block with Red Hat, which is very much targeted and optimized for core network and edge, right? So, you know, there are different workflows which will require different capabilities also. And so, you know, again, we are bringing those things to these service providers to again, bring those cloud characteristics and cloud native architecture for their network. >> And It's going to be hybrid, to your point. >> David N.: And you, just hit on something, you said cloud characteristics. >> Yeah. >> If you look at this through the lens of kind of the general world of IT, sometimes when people hear the word cloud, they immediately leap to the idea that it's a hyperscale cloud provider. In this scenario we're talking about radio towers that have intelligence living on them and physically at the base. And so the cloud characteristics that you're delivering might be living physically in these remote locations all over the place, is that correct? >> Yeah, I mean that, that's true. That will definitely happen over time. But I think, I think we've seen the hyperscalers enter, you know, public cloud providers, enter at the edge and they're dabbling maybe with private, but I think the public RAN is another further challenge. I think that maybe a little bit down the road for them. So I think that is a different characteristic that you're talking about managing the macro RAN environment. >> Manish: If I may just add one more perspective of this cloud, and I mean, again, the hyperscale cloud, right? I mean that world's been great when you can centralize a lot of compute capability and you can then start to, you know, do workload aggregation and use the infrastructure more efficient. When it comes to Telecom, it is inherently it distributed architecture where you have access, you talked about radio access, your port, and it is inherently distributed because it has to provide the coverage and capacity. And so, you know, it does require different kind of capabilities when you're going out and about, and this is where I was talking about things like, you know, we just talked, we just have been working on our bare metal orchestration, right? This is what we are bringing is a capability where you can actually have distributed infrastructure, you can deploy, you can actually manage, do lifecycle management, in a distributed multicloud form. So it does require, you know, different set of capabilities that need to be enabled. >> Some, when talking about cloud, would argue that it's always been information technology, it always will be information technology, and especially as what we might refer to as public cloud or hyperscale cloud providers, are delivering things essentially on premises. It's like, well, is that cloud? Because it feels like some of those players are going to be delivering physical infrastructure outside of their own data centers in order to address this. It seems the nature, the nature of the beast is that some of these things need to be distributed. So it seems perfectly situated for Dell. That's why you guys are both at Dell now and not working for other Telecom places, right? >> Exactly. Exactly, yes. >> It's definitely an exciting space. It's transformed, the networks are under transformation and I do think that Dell's very well positioned to, to really help the customers, the service providers in accelerating their transformation journey with an open ecosystem. >> Dave V.: You've got the brand, and the breadth, and the resources to actually attract an ecosystem. But I wonder if you could sort of take us through your strategy of ecosystem, the challenges that you've seen in developing that ecosystem and what the vision is that ultimately, what's the outcome going to be of that open ecosystem? >> Yeah, I can start. So maybe just to give you the big picture, right? I mean the big picture, is disaggregation with performance, right, TCO models to the service providers, right? And it starts at the infrastructure layer, builds on bringing these cloud capabilities, the cast layer, right? Bringing the right accelerators. All of this requires to pull the ecosystem. So give you an example on the infrastructure in a Teleco grade servers like XR8000 with Sapphire, the new intel processors that we've just announced, and an extended array of servers. These are Teleco grade, short depth, et cetera. You know, the Teleco great characteristic. Working with the partners like Marvel for bringing in the accelerators in there, that's important to again, drive the performance and optimize for the TCO. Working then with partners like Wind River, Red Hat, et cetera, to bring in the cast capabilities so you can start to see how this ecosystem starts to build up. And then very recently we announced our private 5G solution with AirSpan and Expeto on the core site. So bringing those workloads together. Similarly, we have an open RAN solution we announce with Fujitsu. So it's, it's open, it's disaggregated, but bringing all these together. And one of the last things I would say is, you know, to make all this happen and make all of these, we've also been putting together our OTEL, our open Telecom ecosystem lab, which is very much geared, really gives this open ecosystem a playground where they can come in and do all that heavy lifting, which is anyways required, to do the integration, optimization, and board. So put all these capabilities in place, but the end goal, the end vision again, is that cloud native disaggregated infrastructure that starts to innovate at the speed of software and scales at the speed of cloud. >> And this is different than the nineties. You didn't have something like OTEL back then, you know, you didn't have the developer ecosystem that you have today because on top of everything that you just said, Manish, are new workloads and new applications that are going to be developed. Doug, anything you'd add to what Manish said? >> Doug: Yeah, I mean, as Manish said, I think adding to the infrastructure layers, which are, you know, critical for us to, to help integrate, right? Because we kind of took a vertical Teleco stack and we've disaggregated it, and it's gotten a little bit more complex. So our Solutions Dell Technology infrastructure block, and our lab infrastructure with OTEL, helps put those pieces together. But without the software players in this, you know, that's what we really do, I think in OTEL. And that's just starting to grow. So integrating with those software providers with that integration is something that the operators need. So we fill a gap there in terms of either providing engineered solutions so they can readily build on or actually bringing in that software provider. And I think that's what you're going to see more from us going forward is just extending that ecosystem even further. More software players effectively. >> In thinking about O-RAN, are they, is it possible to have the low latency, the high performance, the reliability capabilities that carriers are used to and the flexibility? Or can you sort of prioritize one over the other from a go to market and rollout standpoint and optimize one, maybe get a foothold in the market? How do you see that balance? >> Manish: Oh the answer is absolutely yes you can have both We are on that journey, we are on that journey. This is where all these things I was talking about in terms of the right kind of accelerators, right kind of capabilities on the infrastructure, obviously retargeting the software, there are certain changes, et cetera that need to be done on the software itself to make it more cloud native. And then building all the surrounding capabilities around the CICD pipeline and all where it's not just day zero or day one that you're doing the cloud-like lifecycle management of this infrastructure. But the answer to your point, yes, absolutely. It's possible, the technology is there, and the ecosystem is coming together, and that's the direction. Now, are there challenges? Absolutely there are challenges, but directionally that's the direction the industry is moving to. >> Dave V.: I guess my question, Manish, is do they have to go in lockstep? Because I would argue that the public cloud when it first came out wasn't nearly as functional as what I could get from my own data center in terms of recovery, you know, backup and recovery is a perfect example and it took, you know, a decade plus to get there. But it was the flexibility, and the openness, and the developer affinity, the programmability, that attracted people. Do you see O-RAN following a similar path? Or does it, my question is does it have to have that carrier class reliability today? >> David N.: Everything on day one, does it have to have everything on day one? >> Yeah, I mean, I would say, you know, like again, the Greenfield operators I think we're, we're willing do a little bit more experimentation. I think the operators, Brownfield operators that have existing, you know, deployments, they're going to want to be closer. But I think there's room for innovation here. And clearly, you know, Manish came from, from Meta and we're, we've been very involved with TIP, we're very involved with the O-RAN alliance, and as Manish mentioned, with all those accelerators that we're working with on our infrastructure, that is a space that we're trying to help move the ball forward. So I think you're seeing deployments from mainstream operators, but it's maybe not in, you know, downtown New York deployment, they're more rural deployments. I think that's getting at, you know, kind of your question is there's maybe a little bit more flexibility there, they get to experiment with the technology and the flexibility and then I think it will start to evolve >> Dave V.: And that's where the disruption's going to come from, I think. >> David N.: Well, where was the first place you could get reliable 4K streaming of video content? It wasn't ABC, CBS, NBC. It was YouTube. >> Right. >> So is it possible that when you say Greenfield, are a lot of those going to be what we refer to as private 5G networks where someone may set up a private 5G network that has more functions and capabilities than the public network? >> That's exactly where I was going is that, you know, that that's why you're seeing us getting very active in 5G solutions that Manish mentioned with, you know, Expeto and AirSpan. There's more of those that we haven't publicly announced. So I think you'll be seeing more announcements from us, but that is really, you know, a new opportunity. And there's spectrum there also, right? I mean, there's public and private spectrum. We plan to work directly with the operators and do it in their spectrum when needed. But we also have solutions that will do it, you know, on non-public spectrum. >> So let's close out, oh go ahead. You you have something to add there? >> I'm just going to add one more point to Doug's point, right? Is if you look on the private 5G and the end customer, it's the enterprise, right? And they're, they're not a service provider. They're not a carrier. They're more used to deploying, you know, enterprise infrastructure, maintaining, managing that. So, you know, private 5G, especially with this open ecosystem and with all the open run capabilities, it naturally tends to, you know, blend itself very well to meet those requirements that the enterprise would have. >> And people should not think of private 5G as a sort of a replacement for wifi, right? It's to to deal with those, you know, intense situations that can afford the additional cost, but absolutely require the reliability and the performance and, you know, never go down type of scenario. Is that right? >> Doug: And low latencies usually, the primary characteristics, you know, for things like Industry 4.0 manufacturing requirements, those are tough SLAs. They're just, they're different than the operator SLAs for coverage and, you know, cell performance. They're now, you know, Five9 type characteristics, but on a manufacturing floor. >> That's why we don't use wifi on theCUBE to broadcast, we need a hard line. >> Yeah, but why wouldn't it replace wifi over time? I mean, you know, I still have a home phone number that's hardwired to align, but it goes to a voicemail. We don't even have handset anymore for it, yeah. >> I think, well, unless the cost can come down, but I think that wifi is flexible, it's cheap. It's, it's kind of perfect for that. >> Manish: And it's good technology. >> Dave V.: And it works great. >> David N.: For now, for now. >> Dave V.: But you wouldn't want it in those situations, and you're arguing that maybe. >> I'm saying eventually, what, put a sim in a device, I don't know, you know, but why not? >> Yeah, I mean, you know, and Dell offers, you know, from our laptop, you know, our client side, we do offer wifi, we do offer 4G and 5G solutions. And I think those, you know, it's a volume and scale issue, I think for the cost structure you're talking about. >> Manish: Come to our booth and see the connected laptop. >> Dave V.: Well let's, let's close on that. Why don't you guys talk a little bit about what you're going on at the show, I did go by the booth, you got a whole big lineup of servers. You got some, you know, cool devices going on. So give us the rundown and you know, let's end with the takeaways here. >> The simple rundown, a broad range of new powered servers, broad range addressing core, edge, RAN, optimized for those with all the different kind of acceleration capabilities. You can see that, you can see infrastructure blocks. These are with Wind River, with Red Hat. You can see OTEL, the open telecom ecosystem lab where all that playground, the integration, the real work, the real sausage makings happening. And then you will see some interesting solutions in terms of co-creation that we are doing, right? So you, you will see all of that and not to forget the connected laptops. >> Dave V.: Yeah, yeah, cool. >> Doug: Yeah and, we mentioned it before, but just to add on, I think, you know, for private 5G, you know, we've announced a few offers here at the show with partners. So with Expeto and AirSpan in particular, and I think, you know, I just want to emphasize the partnerships that we're doing. You know, we're doing some, you know, fundamental integration on infrastructure, bare metal and different options for the operators to get engineered systems. But building on that ecosystem is really, the move to cloud native is where Dell is trying to get in front of. And we're offering solutions and a much larger ecosystem to go after it. >> Dave V.: Great. Manish and Doug, thanks for coming on the program. It was great to have you, awesome discussion. >> Thank you for having us. >> Thanks for having us. >> All right, Dave Vellante for Dave Nicholson and Lisa Martin. We're seeing the disaggregation of the Teleco network into open ecosystems with integration from companies like Dell and others. Keep it right there for theCUBE's coverage of MWC 23. We'll be right back. (upbeat tech music)

>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington, AWS's marketplace seller conference. It's the big news within the Amazon partner network, combining with marketplaces, forming the Amazon partner organization, part of a big reorg as they grow the next level NextGen cloud mid-game on the chessboard. Cube's got cover. I'm John fur, host of Cub, a great guests here from data bricks, both cube alumnis, Jack Anderson, GM of the and VP of the data bricks partnership team. For ADOS, you handle that relationship and Joel Minick vice president of product and partner marketing. You guys are the, have the keys to the kingdom with data, bricks, and AWS. Thanks for joining. Thanks for good to see you again. Thanks for >>Having us back. Yeah, John, great to be here. >>So I feel like we're at reinvent 2013 small event, no stage, but there's a real shift happening with procurement. Obviously it makes it's a no brainer on the micro, you know, people should be buying online self-service cloud scale, but Amazon's got billions being sold to their marketplace. They've reorganized their partner network. You can see kind of what's going on. They've kind of figured it out. Like let's put everything together and simplify and make it less of a website marketplace merge our partner to have more synergy and friction, less experiences so everyone can make more money and customer's gonna be happier. >>Yeah, that's right. >>I mean, you're run relationship. You're in the middle of it. >>Well, Amazon's mental model here is that they want the world's best ISVs to operate on AWS so that we can collaborate and co architect on behalf of customers. And that's exactly what the APO and marketplace allow us to do is to work with Amazon on these really, you know, unique use cases. >>You know, I interviewed Ali many times over the years. I remember many years ago, I think six, maybe six, seven years ago, we were talking. He's like, we're all in ons. Obviously. Now the success of data bricks, you've got multiple clouds. See that customers have choice, but I remember the strategy early on. It was like, we're gonna be deep. So this is speaks volumes to the, the relationship you have years. Jack take us through the relationship that data bricks has with AWS from a, from a partner perspective, Joel, and from a product perspective, because it's not like you got to Johnny come lately new to the new, to the scene, right? We've been there almost president creation of this wave. What's the relationship and has it relate to what's going on today? >>So, so most people may not know that data bricks was born on AWS. We actually did our first 100 million of revenue on Amazon. And today we're obviously available on multiple clouds, but we're very fond of our Amazon relationship. And when you look at what the APN allows us to do, you know, we're able to expand our reach and co-sell with Amazon and marketplace broadens our reach. And so we think of marketplace in three different aspects. We've got the marketplace, private offer business, which we've been doing for a number of years. Matter of fact, we we're driving well over a hundred percent year over year growth in private offers and we have a nine figure business. So it's a very significant business. And when a customer uses a private offer that private offer counts against their private pricing agreement with AWS. So they get pricing power against their, their private pricing. >>So it's really important. It goes on their Amazon bill in may. We launched our pay as you go on demand offering. And in five short months, we have well over a thousand subscribers. And what this does is it really reduces the barriers to entry it's low friction. So anybody in an enterprise or startup or public sector company can start to use data bricks on AWS and pay consumption based model and have it go against their monthly bill. And so we see customers, you know, doing rapid experimentation pilots, POCs, they're, they're really learning the value of that first use case. And then we see rapid use case expansion. And the third aspect is the consulting partner, private offers C P O super important in how we involve our partner ecosystem of our consulting partners and our resellers that are able to work with data bricks on behalf of customers. >>So you got the big contracts with the private offer. You got the product market fit, kind of people iterating with data coming in with, with the buyers you go. And obviously the integration piece all fitting in there. Exactly. Exactly. Okay. So that's that those are the offers that's current and what's in marketplace today. Is that the products, what are, what are people buying? I mean, I guess what's the Joel, what are, what are people buying in the marketplace and what does it mean for >>Them? So fundamentally what they're buying is the ability to take silos out of their organization. And that's, that is the problem that data bricks is out there to solve, which is when you look across your data landscape today, you've got unstructured data, you've got structured data, you've got real time streaming data, and your teams are trying to use all of this data to solve really complicated problems. And as data bricks as the lake house company, what we're helping customers do is how do they get into the new world? How do they move to a place where they can use all of that data across all of their teams? And so we allow them to begin to find through the marketplace, those rapid adoption use cases where they can get rid of these data, warehousing data lake silos they've had in the past, get their unstructured and structured data onto one data platform and open data platform that is no longer adherent to any proprietary formats and standards and something. >>They can very much, very easily integrate into the rest of their data environment, apply one common data governance layer on top of that. So that from the time they ingest that data to the time they use that data to the time they share that data inside and outside of their organization, they know exactly how it's flowing. They know where it came from. They know who's using it. They know who has access to it. They know how it's changing. And then with that common data platform with that common governance solution, they'd being able to bring all of those use cases together across their real time, streaming their data engineering, their BI, their AI, all of their teams working on one set of data. And that lets them move really, really fast. And it also lets them solve challenges. They just couldn't solve before a good example of this, you know, one of the world's now largest data streaming platforms runs on data bricks with AWS. >>And if you think about what does it take to set that up? Well, they've got all this customer data that was historically inside of data warehouses, that they have to understand who their customers are. They have all this unstructured data, they've built their data science model, so they can do the right kinds of recommendation engines and forecasting around. And then they've got all this streaming data going back and forth between click stream data from what the customers are doing with their platform and the recommendations they wanna push back out. And if those teams were all working in individual silos, building these kinds of platforms would be extraordinarily slow and complex, but by building it on data bricks, they were able to release it in record time and have grown at, at record pace >>To not be that's product platform that's impacting product development. Absolutely. I mean, this is like the difference between lagging months of product development to like days. Yes. Pretty much what you're getting at. Yeah. So total agility. I got that. Okay. Now I'm a customer I wanna buy in the marketplace, but I also, you got direct Salesforce up there. So how do you guys look at this? Is there channel conflict? Are there comp programs? Because one of the things I heard today in on the stage from a Davis's leadership, Chris was up there speaking and, and, and moment I was, Hey, he's a CRO conference, chief revenue officer conversation, which means someone's getting compensated. So if I'm the sales rep at data bricks, what's my motion to the customer. Do I get paid? Does Amazon sell it? Take us through that. Is there channel conflict? Is there or an audio lift? >>Well, I I'd add what Joel just talked about with, with, you know, what the solution, the value of the solution our entire offering is available on AWS marketplace. So it's not a subset, the entire data bricks offering and >>The flagship, all the, the top, >>Everything, the flagship, the complete offering. So it's not, it's not segmented. It's not a sub segment. It's it's, you know, you can use all of our different offerings. Now when it comes to seller compensation, we, we, we view this two, two different ways, right? One is that AWS is also incented, right? Versus selling a native service to recommend data bricks for the right situation. Same thing with data bricks. Our Salesforce wants to do the right thing for the customer. If the customer wants to use marketplace as their procurement vehicle. And that really helps customers because if you get data bricks and five other ISVs together, and let's say each ISV is spending, you're spending a million dollars, you have $5 million of spend, you put that spend through the flywheel with AWS marketplace. And then you can use that in your negotiations with AWS to get better pricing overall. So that's how we, >>We do it. So customers are driving. This sounds like, correct. For sure. So they're looking at this as saying, Hey, I'm gonna just get purchasing power with all my relationships because it's a solution architectural market, right? >>Yeah. It makes sense. Because if most customers will have a primary and secondary cloud provider, if they can consolidate, you know, multiple ISV spend through that same primary provider, you get pricing >>Power, okay, Jill, we're gonna date ourselves. At least I will. So back in the old days, it used to be, do a Barney deal with someone, Hey, let's go to market together. You gotta get paper, you do a biz dev deal. And then you gotta say, okay, now let's coordinate our sales teams, a lot of moving parts. So what you're getting at here is that the alternative for data bricks or any company is to go find those partners and do deals versus now Amazon is the center point for the customer so that you can still do those joint deals. But this seems to be flipping the script a little bit. >>Well, it is, but we still have VAs and consulting partners that are doing implementation work very valuable work advisory work that can actually work with marketplace through the C PPO offering. So the marketplace allows multiple ways to procure your >>Solution. So it doesn't change your business structure. It just makes it more efficient. That's >>Correct. >>That's a great way to say it. Yeah, >>That's great. So that's so that's it. So that's just makes it more efficient. So you guys are actually incented to point customers to the marketplace. >>Yes, >>Absolutely. Economically. Yeah. >>E economically it's the right thing to do for the customer. It's the right thing to do for our relationship with Amazon, especially when it comes back to co-selling right? Because Amazon now is leaning in with ISVs and making recommendations for, you know, an ISV solution and our teams are working backwards from those use cases, you know, to collaborate, land them. >>Yeah. I want, I wanna get that out there. Go ahead, Joel. >>So one of the other things I might add to that too, you know, and why this is advantageous for, for companies like data bricks to, to work through the marketplace, is it makes it so much easier for customers to deploy a solution. It's, it's very, literally one click through the marketplace to get data bricks stood up inside of your environment. And so if you're looking at how do I help customers most rapidly adopt these solutions in the AWS cloud, the marketplace is a fantastic accelerator to that. You >>Know, it's interesting. I wanna bring this up and get your reaction to it because to me, I think this is the future of procurement. So from a procurement standpoint, I mean, again, dating myself EDI back in the old days, you know, all that craziness. Now this is all the, all the internet, basically through the console, I get the infrastructure side, you know, spin up and provision. Some servers, all been good. You guys have played well there in the marketplace. But now as we get into more of what I call the business apps, and they brought this up on stage little nuance, most enterprises aren't yet there of integrating tech on the business apps, into the stack. This is where I think you guys are a use case of success where you guys have been successful with data integration. It's an integrator's dilemma, not an innovator's dilemma. So like, I want to integrate, so now I have integration points with data bricks, but I want to put an app in there. I want to provision an application, but it has to be built. It's not, you don't buy it. You build, you gotta build stuff. And this is the nuance. What's your reaction to that? Am I getting this right? Or, or am I off because no, one's gonna be buying software. Like they used to, they buy software to integrate it. >>Yeah, >>No, I, cause everything's integrated. >>I think AWS has done a great job at creating a partner ecosystem, right. To give customers the right tools for the right jobs. And those might be with third parties, data bricks is doing the same thing with our partner connect program. Right. We've got customer, customer partners like five tra and D V T that, you know, augment and enhance our platform. And so you, you're looking at multi ISV architectures and all of that can be procured through the AWS marketplace. >>Yeah. It's almost like, you know, bundling and unbundling. I was talking about this with, with Dave ante about Supercloud, which is why wouldn't a customer want the best solution in their architecture period. And it's class. If someone's got API security or an API gateway. Well, you know, I don't wanna be forced to buy something because it's part of a suite and that's where you see things get suboptimized where someone dominates a category and they have, oh, you gotta buy my version of this. Yeah. >>Joel, Joel. And that's Joel and I were talking, we're actually saying what what's really important about Databricks is that customers control the data. Right? You wanna comment on that? >>Yeah. I was say the, you know what you're pushing on there we think is extraordinarily, you know, the way the market is gonna go is that customers want a lot of control over how they build their data stack. And everyone's unique in what tools are the right ones for them. And so one of the, you know, philosophically I think really strong places, data, bricks, and AWS have lined up is we both take an approach that you should be able to have maximum flexibility on the platform. And as we think about the lake house, one thing we've always been extremely committed to as a company is building the data platform on an open foundation. And we do that primarily through Delta lake and making sure that to Jack's point with data bricks, the data is always in your control. And then it's always stored in a completely open format. And that is one of the things that's allowed data bricks to have the breadth of integrations that it has with all the other data tools out there, because you're not tied into any proprietary format, but instead are able to take advantage of all the innovation that's happening out there in the open source ecosystem. >>When you see other solutions out there that aren't as open as you guys, you guys are very open by the way, we love that too. We think that's a great strategy, but what's the, what am I foreclosing? If I go with something else that's not as open what what's the customer's downside as you think about what's around the corner in the industry. Cuz if you believe it's gonna be open, open source, which I think opens our software is the software industry and integration is a big deal, cuz software's gonna be plentiful. Let's face it. It's a good time to be in software business, but cloud's booming. So what's the downside from your data bricks perspective, you see a buyer clicking on data bricks versus that alternative what's potentially is should they be a nervous about down the road if they go with a more proprietary or locked in approach? Well, >>I think the challenge with proprietary ecosystems is you become beholden to the ability of that provider to both build relationships and convince other vendors that they should invest in that format. But you're also then beholden to the pace at which that provider is able to innovate. And I think we've seen lots of times over history where, you know, a proprietary format may run ahead for a while on a lot of innovation. But as that market control begins to solidify that desire to innovate begins to, to degrade, whereas in the open format. So >>Extract rents versus innovation. Exactly. >>Yeah, exactly. >>But >>I'll say it in the open world, you know, you have to continue to innovate. Yeah. And the open source world is always innovating. If you look at the last 10 to 15 years, I challenge you to find, you know, an example where the innovation in the data and AI world is not coming from open source. And so by investing in open ecosystems, that means you were always going to be at the forefront of what is the >>Latest, you know, again, not to date myself again, but you look back at the eighties and nineties, the protocol stacked for proprietary. Yeah. You know, SNA at IBM deck net was digital, you know, the rest is, and then TCP, I P was part of the open systems, interconnect, revolutionary Oly, a big part of that as well as my school did. And so like, you know, that was, but it didn't standardize the whole stack. It stopped at IP and TCP. Yeah. But that helped interoperate, that created a nice defacto. So this is a big part of this mid game. I call it the chessboard, you know, you got opening game and mid game. Then you got the end game and we're not there. The end game yet cloud the cloud. >>There's, there's always some form of lock in, right. Andy jazzy will, will address it, you know, when making a decision. But if you're gonna make a decision you want to reduce as you don't wanna be limited. Right. So I would advise a customer that there could be limitations with a proprietary architecture. And if you look at what every customer's trying to become right now is an AI driven business. Right? And so it has to do with, can you get that data outta silos? Can you, can you organize it and secure it? And then can you work with data scientists to feed those models? Yeah. In a, in a very consistent manner. And so the tools of tomorrow will to Joel's point will be open and we want interoperability with those >>Tools and, and choice is a matter too. And I would say that, you know, the argument for why I think Amazon is not as locked in as maybe some other clouds is that they have to compete directly too. Redshift competes directly with a lot of other stuff, but they can't play the bundling game because the customers are getting savvy to the fact that if you try to bundle an inferior product with something else, it may not work great at all. And they're gonna be they're onto it. This is >>The Amazon's credit by having these, these solutions that may compete with native services in marketplace, they are providing customers with choice, low >>Price and access to the S and access to the core value. Exactly. Which the >>Hardware, which is their platform. Okay. So I wanna get you guys thought on something else. I, I see emerging, this is again kind of cube rumination moment. So on stage Chris unpacked, a lot of stuff. I mean this marketplace, they're touching a lot of hot buttons here, you know, pricing compensation, workflows services behind the curtain. And one of the things he mentioned was they talk about resellers or channel partners, depending upon what you talk about. We believe Dave and I believe on the cube that the entire indirect sales channel of the industry is gonna be disrupted radically because those players were selling hardware in the old days and software, that game is gonna change. You know, you mentioned you guys have a program, want to get your thoughts on this. We believe that once this gets set up, they can play in this game and bring their services in which means that the old reseller channels are gonna be rewritten. They're gonna be refactored with this new kinds of access. Cuz you've got scale, you've got money and you've got product and you got customers coming into the marketplace. So if you're like a reseller that sold computers to data centers or software, you know, value added reseller or V or business, >>You've gotta evolve. >>You gotta, you gotta be here. Yes. How are you guys working with those partners? Cuz you say you have a part in your marketplace there. How do I make money? If I'm a reseller with data bricks with eight Amazon, take me through that use case. >>Well I'll let Joel comment, but I think it's, it's, it's pretty straightforward, right? Customers need expertise. They need knowhow. When we're seeing customers do mass migrations to the cloud or Hadoop specific migrations or data transformation implementations, they need expertise from consulting and SI partners. If those consulting SI partners happen to resell the solution as well. Well, that's another aspect of their business, but I really think it is the expertise that the partners bring to help customers get outcomes. >>Joel, channel big opportunity for re re Amazon to reimagine this. >>For sure. Yeah. And I think, you know, to your comment about how to resellers take advantage of that, I think what Jack was pushing on is spot on, which is it's becoming more about more and more about the expertise you bring to the table and not just transacting the software, but now actually helping customers make the right choices. And we're seeing, you know, both SI begin to be able to resell solutions and finding a lot of opportunity in that. Yeah. And I think we're seeing traditional resellers begin to move into that SI model as well. And that's gonna be the evolution that >>This gets at the end of the day. It's about services for sure, for sure. You've got a great service. You're gonna have high gross profits. And >>I think that the managed service provider business is alive and well, right? Because there are a number of customers that want that, that type of a service. >>I think that's gonna be a really hot, hot button for you guys. I think being the way you guys are open this channel partner services model coming in to the fold really kind of makes for kind of that super cloudlike experience where you guys now have an ecosystem. And that's my next question. You guys have an ecosystem going on within data bricks for sure. On top of this ecosystem, how does that work? This is kinda like hasn't been written up in business school and case studies yet this is new. What is this? >>I think, you know, what it comes down to is you're seeing ecosystems begin to evolve around the data platforms and that's gonna be one of the big kind of new horizons for us as we think about what drives ecosystems it's going to be around. Well, what is the, what's the data platform that I'm using and then all the tools that have to encircle that to get my business done. And so I think there's, you know, absolutely ecosystems inside of the AWS business on all of AWS's services, across data analytics and AI. And then to your point, you are seeing ecosystems now arise around data bricks in its Lakehouse platform, as well as customers are looking at well, if I'm standing these Lakehouse up and I'm beginning to invest in this, then I need a whole set of tools that help me get that done as well. >>I mean you think about ecosystem theory, we're living a whole nother dream and I'm, and I'm not kidding. It hasn't yet been written up and for business school case studies is that we're now in a whole nother connective tissue ecology thing happening where you have dependencies and value proposition economics connectedness. So you have relationships in these ecosystems. >>And I think one of the great things about relationships with these ecosystems is that there's a high degree of overlap. Yeah. So you're seeing that, you know, the way that the cloud business is evolving, the, the ecosystem partners of data bricks are the same ecosystem partners of AWS. And so as you build these platforms out into the cloud, you're able to really take advantage of best of breed, the broadest set of solutions out there for >>You. Joel, Jack, I love it because you know what it means the best ecosystem will win. If you keep it open. Sure. You can see everything. If you're gonna do it in the dark, you know, you don't know the outcome. I mean, this is really kind we're talking about. >>And John, can I just add that when I was in Amazon, we had a, a theory that there's buyers and builders, right? There's very innovative companies that want to build things themselves. We're seeing now that that builders want to buy a platform. Right? Yeah. And so there's a platform decision being made and that ecosystem gonna evolve around the >>Platform. Yeah. And I totally agree. And, and, and the word innovation get kicks around. That's why, you know, when we had our super cloud panel was called the innovators dilemma with a slash through it called the integrated dilemma, innovation is the digital transformation. So absolutely like that becomes cliche in a way, but it really becomes more of a, are you open? Are you integrating if APIs are the connective tissue, what's automation, what's the service message look like. I mean, a whole nother set of kind of thinking goes on and these new ecosystems and these new products >>And that, and that thinking is, has been born in Delta sharing. Right? So the idea that you can have a multi-cloud implementation of data bricks, and actually share data between those two different clouds, that is the next layer on top of the native cloud >>Solution. Well, data bricks has done a good job of building on top of the goodness of, and the CapEx gift from AWS. But you guys have done a great job taking that building differentiation into the product. You guys have great customer base, great grow ecosystem. And again, I think in a shining example of what every enterprise is going to do, build on top of something operating model, get that operating model, driving revenue. >>Yeah. >>Well we, whether whether you're Goldman Sachs or capital one or XYZ corporation >>S and P global NASDAQ, right. We've got, you know, these, the biggest verticals in the world are solving tough problems with data breaks. I think we'd be remiss cuz if Ali was here, he would really want to thank Amazon for all of the investments across all of the different functions, whether it's the relationship we have with our engineering and service teams. Yeah. Our marketing teams, you know, product development and we're gonna be at reinvent the big presence of reinvent. We're looking forward to seeing you there again. >>Yeah. We'll see you guys there. Yeah. Again, good ecosystem. I love the ecosystem evolutions happening this next gen cloud is here. We're seeing this evolve kind of new economics, new value propositions kind of scaling up, producing more so you guys are doing a great job. Thanks for coming on the Cuban, taking time. Chill. Great to see you at the check. Thanks for having us. Thanks. Going. Okay. Cube coverage here. The world's changing as APN comes to give the marketplace for a new partner organization at Amazon web services, the Cube's got a covered. This should be a very big growing ecosystem as this continues, billions of being sold through the marketplace. Of course the buyers are happy as well. So we've got it all covered. I'm John furry, your host of the cube. Thanks for watching.

>>The cube presents, Dell technologies world brought to you by Dell. >>Hey everyone. Welcome back to the cubes coverage of day. One of Dell technologies world 2022. Live from the Venetian in Las Vegas. They're excited. I dunno if you heard that a group behind me, very excited to be here. Lisa Martin, Dave ante. We're very pleased to welcome Jules Johns SVP of channel from McQuin. Jill, welcome to the program. >>Thank you for having me. I appreciate it. >>And those people back there are very excited. If you heard that big applause >>That >>Went live <laugh> so the, the vibe here is fantastic for the first live Dell technologies world since 2019. A lot of people here, this expo hall is packed a lot of, of momentum here, but there's also a lot of momentum critics. Talk to us about what's going on. >>Well, and you know, so, so many exciting things for Equinex and, you know, in this partnership of Dell, it gives us a chance to, to share that, uh, with partners here throughout the conference. So we are very excited, as you said about, and we just, we named to the fortune 500 this year, 77 quarters of growth consecutively, but underpinning that is having made huge investments in what is the world's largest footprint of global data centers, 240 of them on six continent in 66 markets, but then interconnecting them. So they have the connections that Dell customers need to the clouds. They have the connections that they need to all of the future SaaS providers, so that foresight to put together that interconnection network across our footprint has set us on the path we're on today, which we're very grateful, um, to be at in. And, and really this, the things that are happening with Equinex and Dell together can, couldn't be more of the moment. >>Talk to me about that. The, the last two years, the moments of the last two years have been very challenging. They have for everyone. How has the partnership evolved in that time? >>Well, you know, we at together, Dell and Equinix, what we're doing is really helping, helping our shared interface, customers navigate the complexities of their digital transformation and, and digital transformation is hard and it's not a one and done, and it's not an overnight solution. And so what we are doing is partnering with Dell to think about putting a dedicated Dell it stack in an Equinex data center to give customers that sovereign adjacency so that they can have that security proximate to our, all the clouds and, and, and all, everything else. They need to participate in the ecosystem. And then pairing that with, you know, these interconnected enterprises. So Dell and we are helping customers then be able to have some of their solution on Preem some of their solution in the cloud access, public clouds, and use that collectively to diff fine. We're calling the intelligent edge together. And that intelligent edge means so many different things to customers, but it is really our honor to work together with Dell to help each customer define that for themselves. >>E's amazing company, like you said, it's, it's, you know, I didn't realize it was that many consecutive quarters, but it's a 60 billion plus market cap. If you look at the stock chart, blow your mind, really incredibly successful. And part of the reason it's funny, you know, 10, 15 years ago, people thought, well, oh, 10 years ago, anyway, the cloud is gonna hurt companies like equity. It was exact opposite it. And, and that's because, you know, Charles Phillips used to joke friends. Don't let friends build data centers. Yes. Right. And, and it's not a good use of capital for most companies, unless you're in the data center business. Now, of course you have some of your own as a service offerings. We do. What's the overlap with, with Dell? How do they compliment each other? It, >>It's a good question because, you know, and we get that, are you and Dell in fact competitors, and no, we see them as who complimentary. And in fact, we're working with Dell to bring to market things like something we call power edge, which involves their servers and power store, which involves their storage. And, and then V RIL, which is really the hyperconverged infrastructure. And those are just few first of a series of offerings we expect to bring to market with Dell. And if you think about metal and, and it's Equinex metal that people sometimes think is a competitor, but what metal does for customers is it really allows them to advance, have the equipment placed in our data centers so that they can access that capacity. And according to spikes or needs that they have that equipment in our data centers, that's there for them to avail themselves of that capacity is most often Dell equipment. So we are really doing and executing that bare metal is a service together. >>What are some of the, the things that you're hearing from, from your partner community, in terms of the partnership with Dell, what are partners supposed be excited, the momentum there what's going on in the partner community? >>So, you know, that is that's, that's what near and dear to my heart, since that's what I'm responsible for. Equinex is global partnerships, and they are very excited about what we're doing with Dell. And to be honest with you, all of our top partners are also top partners of Dell. So it makes that we bring it together. So, you know, big categories of partners like the world's largest global network service providers, some of whom are here and who will meet with the at T orange business services. Those folks, in addition to the world's largest global systems integrators, Kendra, Deloitte, Accenture, we pro, uh, all DXC. All of these are partners that Dell and we will meet with together to further our, what we call power three, that together we're better because as much as Dell and Equinex are delivering the customers, most often don't have the experience. They need to execute it without a partner. So they are relying on those partners to take what we are doing and make it their own. And so, so if they're excited about it, it is a, it's a big opportunity for them from a, a revenue services, a and an opportunity for them to step into a next level, trusted advisor status. So partners are excited and, and we're gonna be spending a lot of time with them the next few days. Do you >>See Equinix? You know, these cuz these partnerships are not bespoke partnerships, it's an ecosystem that's organic and evolving and, and growing. Can it be, are you a dot connector in a way, can it be a flywheel effect in your ecosystem? >>Well, I mean our, so our E ecosystems that, um, that we provide wide range of those from high frequency trading to connected cars, um, to the internet things, many and content providers that we are, we do see it as our role to, you know, the 10,000 and growing customers that are in our 240 data centers and six continents that provide those ecosystems. It's, it is our mission to continue to grow that and enrich it because that does differentiate us greatly from another data center provider. And it's the combination of the ecosystem that you find and the people you can connect to at Equinex, and then also the leverage of our fabric in order to be able to access your future needs. >>And it's a lot of technology underneath these, you know, it's that first layer one, I guess, if you will, of the data center, right. And so a lot of your, your customers or your cus your partner's customers, they just don't want to be in that business. As we were saying before, I mean, it's just too expensive. The, the power requirements are going through the roof, so you gotta be really good at managing power. >>You do. In fact, you know, so first of all, you're right, it's extremely difficult for them to also be able to make that kind of commitment, to keep a data center. They would ran, they would manage themselves at the level that Equinex is able to invest. So it's very difficult for people to do it themselves, but even show another, you mentioned actually about the power is near and dear to our hearts because is super committed to sustainability. And so we've made a commitment to holy renewable energy. And it's something that we talk a lot about how we also help partners like Dell meet their initiatives, so, or partners like at T meet their connected climate goals. So we, we are actually using that and coming together with Dell on that story, so that, and, and then helping to amplify that with our partners. And, >>And that's, that's how do you do that? That's putting data centers where you can cool with ambient air. Is it being near the Columbia river? How what's, what's your strategy in that regard, >>Uh, and sustainable. I have to be honest to you. I, uh, I would be out of my depth if I didn't say >>This is the high level. Yeah. >>So, um, we are deploying some of the latest technologies about that, and then experts people who, you know, who all they do is really help us to, um, to reduce the carbon footprint and be able to offset that, be able to use solar, be able to use wind, be able to take advantage of that. And then also to, um, to navigate what's available when you're in 240 locations on six cotton, it's not the same options to reduce your power consumption. And your burden are different in Africa, as you just discovered with our main one acquisition than they are in India, or then they are in, in other parts of the world. So it is for us a journey, and we've been assembling a lot of the talent to do that, but >>You're so large now, even a small percentage improvement can really move the needle. >>And I think because we are the largest, it is incumbent upon us to really set the standard and be committed to it. And, um, and we do see other people following, which is, is a good thing for all of us. Well, >>How important is that in your partnership conversations that partners have that same focus and commitment on ESG that Equinix has >>Partners care a lot about it, but, uh, customers ask us both all the time. I mean, we increasingly see a portion of an RFP or a scope of work asking before I decide to go with Equinex and Dell, tell me how you're going to impact the environment. Tell me about your commitment. And so, um, so we are committed to it, but customers are demanding it to >>Where >>Do you go ahead please? >>Oh, I was just gonna say, it's, it's coming from the, from the voice of a customer, which Equinox is listening to, we know Dell is listening to it as well. >>I'm so >>Sorry. One more time that, that the, the sustainability of the ESG demand is coming from the customers. You were saying, it, >>It both like, I mean, we wanna do the right thing and we've made commitments to it, but our customers are holding us accountable to it. And, you know, sustainability is now a board level priority. It is for us. And it is for companies like Dell and it is for partners and customers. >>It really is. It's it's, I mean, it's up there with security in terms of the board level conversation, where do you want to see the partner ecosystem in the, the, the next let's call it three to five years in your business? You can look out that far. >>Well, you know, I, I think that, um, they, our partners, um, and I, that, I mean, Dells and our mutual partners, you know, are, we've been listening to customers with Dell to deliver a flexible set of options for how customers would consume Equinex and Dell. So our partners are gonna be integrating a variety of those in order to meet the customer where they are in that journey, whether they wanna buy apex as a service, whether they wanna buy Equinex metal, whether they wanna have car some, uh, a partner put together, bespoke, do it yourself, combination with other services. Uh, I, I mean, the customers are going to demand a choice of options. I think partners are gonna embrace multiple versions of that so that they can, you know, to meet the customer where they are and take them >>Well, that's, that's incredibly important these days to meet customer where they are, the customers have a lot of choice. It is, but everything that we're all doing is for the customer, ultimately at the end of the day, <laugh> >>Yes, it, it, it, it is. And, and, you know, the customers are getting Savier, but we are all still early in this journey, as far as the edge, you know, I mean, I think we are all still, um, we're all still grappling at the, at for right now. We like to say that as customers are looking to define that the, the footprint that we offer together with Dell gives them an, an awfully robust set of choices for now. And then we wanna continue to invest and expand to be wherever they need us. >>Well, that's the thing about your business? It's it's optionality. I mean, you can't, I mean, the cloud has a lot of stuff, but you can't get everything you want in the cloud. You can, and you can put anything in your data center. That's, that's, you know, it, >>You can, but you may not know what you need yet. And so that's one of the things we spend a lot of time having our solutions, architects and our sales people together, but they'll talk about future proofing, their strategy. So future proofing, that combination of OnPrem and in an Equinex data center, and maybe some public and future proofing leveraging our fabric so that they might elect different SaaS space services or cloud based services a year to five years from now than the year, even thinking about today. And, and they may expand their edge over time, because they may, they may sort of see that as a, at the customer end point today, most businesses are still sort of using a footprint like ours as their edge, but that could change. And so we wanna be there when it does. >>Yeah. That's a great point because you don't wanna necessarily have to rip it out every cup of years. If you, if you, if you can have a, an architecture that can grow. Yeah, sure. You might want to upgrade it >>Well, and it's one, that's one of the most appealing things about services like metal, where they also, uh, they do sort of prevent that sort of rip and replace, but they also help people navigate the supply chain shortages that are going on right now. So this that's been, this has been a trying two years for supply chain shortages, and being able to take advantage of Dell equipment already staged at an Equinex data center and partners can then bring their customers a quicker immediate response. Have >>You also seen this? You mentioned the supply chain shortages, some of the many challenges that we've experienced in a last few years, how much of a factor has the great resignation been? The labor shortages, the cybersecurity skills gap on, on folks coming, Tolin saying help. We don't have the resources here to do this ourselves. >>We have been fortunate to, to not, to, to be, um, if you're asking about how the reservation has affected us as a company, no, >>Your customers >>Or customers that has oh, okay. Yes. So it is, it is a challenge for them, but it's an opportunity for our partners. So what I see there is it's been challenging for customers to hold onto that talent, but partners are filling that gap and we've access Aon fortunate to hold onto a lot of our best and brightest. And so we put them together with our partner and we try to help customers fill those gaps. >>Well, that's most important thing, filling those gaps. >>You, you ever been one in inside one of these ultra modern data centers? I have not, >>Not yet. >>It's pretty cool. Isn't it? I mean, >>Have you, have you ever had a tour of one? >>I I've never had a tour of an Equinix data center, but I've seen some modern data centers that will blow your mind. Well, >>I mean, they, they come with all the requisite, uh, bio and man traps and all of the bells and, and, and whistles that are actually the first slay of physical security. But then once you get into the data center, then we have sort, we get into the virtual and the digital security that you would expect. So it's, >>Yeah, it's good. And you know, it's not like you drive by the data center, it's a big sign. Here's the data center. It is kind of, you know, they're trying to stay a little hidden and then like, it's get in. It's like getting into fork knots. It's probably harder. And then, but then the it's, it's like this giant clean room, right? It's amazingly clean and just huge. >>There are all >>Your >>Mind. And inside this data centers, all the world's networks come together and peer, and then we have inside their, the, the most direct rom reps to the cloud. So you would expect there, there's a, there's a lot of wires and pipes running very neatly through a very secure, >>Clean systems and power system >>Environment. For sure. >>Amazing engineering. >>It is really >>A >>Tour. You should, you, if they do, you let people tour >>Your, I, I will bring both of you on a tour. Awesome. >>I, my guess >>Would love to. >>Yeah. Great. Sounds fantastic >>On that. So >>Last >>Couple, we'll bring a camera. <laugh> Oh, no, we're not allowed. Not today. >>No phones, no phones sequester. So what, what are some of the things that you're excited about seeing and hearing the next couple of days as this is the first time we've all gotten to be together in so long? >>So, um, well, you know, we are excited about the conversations that we're gonna have power of three that I was talking about. So, you know, we really pride ourselves on sort of having that combination add up to more, to benefit the customer. And so this will be sort of a coming out party of sorts for Equinex and Dell will meet with you almost 20 different global partners that are really important to both of us. So I am most excited about those conversations and about, uh, the education I'm gonna get on the ways they're thinking about integrating it differently, because that is good choice for the market. That is good choice for the customer set. So for the enterprises out there, so that I'm most excited about. Awesome. >>Sounds like tremendous opportunity, lots going on this week, but thank you for coming on, just talking An hour of Equinix and Dell better together, the way that your channel partner program is growing. And of course the momentum of the company will can't wait to see what happens next year. Thank >>You. Thank you. Well, we aim to deliver and thank you again for having us. Thanks, >>Jules. Our pleasure for Dave Volante. I'm Lisa Martin, and you're watching the cubes live coverage day one, Dell technologies world live from Las Vegas, stick around. We'll be right back with our next guest.

>>Hello everyone Welcome to the cubes coverage of cubic on cloud native come here in person in L A 2021. I'm john ferrier, host of the Cuban Dave Nicholson host cloud host for the cube and of course former host of the cube steve minutemen. Now at red hat stew, we do our normal keynote reviews. We had to have you come back first while hazard and red hat >>john it's phenomenal. Great to see you nice to have Dave be on the program here too. It's been awesome. So yeah, a year and a day since I joined Red hat and uh, I do miss you guys always enjoyed doing the interviews in the cube. But you know, we're still in the community and still interacting lots, >>but we love you too. And Davis, your new replacement and covering the cloud angles. He's gonna bring little stew mo jokes of the interview but still, we've always done the wrap up has always been our favorite interviews to do an analysis of the keynote because let's face it, that's where all the action is. Of course we bring the commentary, but this year it's important because it's the first time we've had an event in two years too. So a lot of people, you know, aren't saying this on camera a lot, but they're kind of nervous. They're worried they're weirded out. We're back in person again. What do I feel? I haven't seen people, I've been working with people online. This is the top story. >>Yeah, john I thought they did a really good job in the keynote this morning. Normally, I mean this community in general is good with inclusion. Part of that inclusion is hey, what are you comfortable with if your remote? We still love you and it's okay. And if you're here in person, you might see there's wrist bands of green, yellow, red as in like, hey, you okay with a handshake. You want to do there or stay the f away from me because I'm not really that comfortable yet being here and it's whatever you're comfortable with. That's okay. >>I think the inclusion and the whole respect for the individual code of conduct, C N C. F and limits Foundation has been on the front end of all those trends. I love how they're taking it to a whole nother level. David, I want to get your take because now with multi cloud, we heard the same message over and over again that hey, open winds, okay. Open winds and still changing fast. What's your take? >>Open absolutely wins. It's uh, it's the present. It's the future. I know in some of the conversations we've had with folks looking back over the last seven years, a lot of things have changed. Um, whenever I think of open source anything, I go back to the foundations of Lennox and I remember a time when you had to reboot a Linux server to re scan a scuzzy bus to add a new storage device and we all sort of put our penguin hats on and kind of ignored that for a while. And uh, and, and as things are developed, we keep coming into these new situations. Multi cluster management was a big, big point of conversation in the keynote today. It's fascinating when you start thinking about something that was once sort of a back room science experiment. Absolutely. It's the center of the enterprise now from a software >>from an open tour standpoint security has been one of those front and center things. One of the day, zero events that got a lot of buzz coming at the beginning of the week was secure supply chain. So with the Solar Wind act going in there, you know, we remember cloud, wait, can I trust it with the security? Open source right now. Open source and security go together. Open source and the security in the cloud all go together. So you know that that wave of open source, obviously one of the things that brought me to red hat, I'd had a couple of decades, you know, working within the enterprise and open source and that that adoption curve which went through a few bumps in the road over time and it took time. But today, I mean open sources have given this show in this ecosystem are such proof >>points of a couple things. I noticed one, I want to do a shout out for the folks who put a nice tribute for dan Kaminsky who has passed away and we miss him. We saw on the Cube 2019, I believe he's on the Cube that year with Adam on big influence, but the inclusiveness do and the community is changing. I think security has changed a lot and I want to get your guys take on this. Security has forced a lot of things happen faster data, open data. Okay. And kubernetes to get hardened faster stew. I know your team's working on it. We know what Azure and amazon is working on it. What do you guys think about how security's been forcing the advances in kubernetes and making that stable? >>Yeah. So john security, you know, is job one, it is everyone's responsibility. We talk about it from a container and kubernetes standpoint. We think we have a relatively good handle on what's happening in the kubernetes space red hat, we made an acquisition earlier this year of stack rocks, which was one of the leading kubernetes native security pieces. But you know, john we know security isn't just a moat anymore in a wall that you put up every single piece. You need to think about it. Um, I've got a person from the stack rocks acquisition actually on my team now and have told him like hey, you need to cross train all of us. We need to understand this more from a marketing standpoint, we need to talk about it from a developer standpoint. We need to have consideration of it. It's no longer, hey, it works okay on my machine. Come on, It needs to go to production. We all know this shift left is something we've been talking about for many years. So yes, security, security, security, we cannot overemphasize how important is um, you know, when it comes to cooper, I think, you know, were relatively mature, we're crossing the chasm, the adoption numbers are there, so it's not an impediment anymore. >>It's totally next level. I don't agree with this too. David, get your thoughts on this whole adoption um, roadmap that put it together, one of the working groups that we interviewed has got that kind of navigate, kinda like trailheads for salesforce, but that speaks to the adoption by mainstream enterprises, not the hard core, >>you know, >>us devops guys, but like it goes into mainstream main main street enterprise had I. T. Department and security groups there, like we got a program faster. How do you see the cloud guys in this ecosystem competing and making that go faster. >>So it's been interesting over the last decade or more often, technology has been ahead of people's comfort level with that technology for obvious reasons, it's not just something went wrong, it's something went wrong. I lost my job. Really, really bad things happened. So we tend to be conservative. Rightfully so in the sometimes there are these seminal moments where a shift happens go back sort of analogous go back to a time when people's main concern with VM ware was how can I get support from Microsoft and all of a sudden it went from that within weeks to how can I deploy this in my enterprise very, very quickly. And I'm fascinated by this concept of locking down the supply chain of code, uh sort of analogous to https, secure, http. It's the idea of making sure that these blocks of code are validated and secure as they get implemented. You mentioned, you mentioned things like cluster and pad's security and infrastructure security. >>Well, David, you brought up a really good point. So get off is the instance creation of that. How can I have my infrastructure as code? How can I make sure that I don't have drift? It's because I could just, it'll live and get hub and therefore it's version controlled. If I try to do something, it will validate that it's there and keep me on version because we know john we talked about it for years on the cube, we've gone beyond human scale if I don't build automation into it, if I don't have the guard rails in place because humans will mess things up so we need to make sure that we have the processes and the automation in place and kubernetes was built for that automation at its core, putting in, we've seen get up the Argosy, D was only went graduated, you know, the one dato was supported as coupon europe. Earlier this year, we already had a number of our customers deploying it using it. Talking publicly >>about it too. I want to get the kid apps angle and that's a good call out there and, and mainly because when we were on the cute, when you work, you post with with us, we were always cheerleading for Cuban. It we love because we've been here every single coupon. We were one saying this is gonna be big trust us and it is, it happens to so, but now we've been kind of, we don't have to sell it anymore. We don't, I mean not that we're selling it, but like we don't have to be a proponent of something we knew was going to happen, it happened. You're now work for a vendor red hat you talk to customers. What is that next level conversation look like now that they know it's real, they have to do it. How is the tops and then modern applications development, changing. What are your observations? Can you share with us from a redhead perspective as someone who's talking to customers, you know, what does real look like? >>Yeah. So get off is a great example of that. So, you know, certain of our government agencies that we work with, you know, obviously very secured about, you know, we want zero trust who do we put in charge of things. So if they can have, you know that that source of truth and know that that is maintained and lockdown and not await some admin is gonna mess something up on us either maliciously or oops, by accident or anything in between. That's why they were pushing that adoption of that kind of technology. So absolutely they, for the most part john they don't want to have to think about the infrastructure piece anymore. What if developers want the old past days was I want to be able to, you know, write once deploy anywhere, live anywhere, containers helps that a little bit. We even have in the container space. Now you can, you can use a service deployment model with Okay. Natives, the big open source project that, you know, VM ware ourselves are working on google's involved in it. So, you know, having us be able to focus on the business and not, you know, running the plumbing anymore. >>That's exactly, that's exactly, that's what we're so psyched for. Okay guys, let's wrap this up and and review the keynote day will start with you. What do you think of the keynote? What were the highlights? What do you take away from the taste keynote? >>So you touched on a couple of things, uh inclusion from all sorts of different angles. Really impressive. This sort of easing back into the world of being face to face. I think they're doing a fantastic job at that. The thing that struck me was something I mentioned earlier. Um moving into multi cluster management in a way that really speaks to enterprise deployments and the complexity of enterprise deployments moving forward? It's not just, it's not just, I'm a developer, I'm using resources in the cloud. I'm doing things this way, the rest of the enterprises doing it a legacy way. It's really an acknowledgement that these things are coming together increasingly. That's what really struck me >>to do. What's your takeaway from the end? >>So there's been a discussion in the industry, you know, what do the next million cloud customers look like we've crossed the chasm on kubernetes. One of the things they announced the keynote is they have a new associate level certification because I tell you before the keynote, I stopped by the breakfast area, saturday table, talk to a couple people. One guy was like, hey, I'm been on amazon for a bunch of years, but I'm a kubernetes newbie, I'm here to learn about that. It's not the same person that five years ago was like, I'm gonna grab all these projects and pull them down from getting, build my stack and you know, have a platform team to manage it from a red hat standpoint, we're delivering our biggest growth areas in cloud services where hey, I've got an SRE team, they can manage all that because can you do it? Sure you got people maybe you'll hire him, but wouldn't you rather have them work on, you know, that security initiative or that new application or some of these pieces, you know, what can you shift to your vendor? What can you offload from your team because we know the only constant is that things are gonna there's gonna be gonna be new pieces and I don't want to have to look at, oh there's another 20 new projects and how does that fit? Can I have a partner or consultant in sc that can help me integrate that into my environment when it makes sense for me because otherwise, oh my God, cloud, So much innovation. How do I grasp what I want? >>Great stuff guys, I would just say my summary is that okay? I'm excited this community has broken through the pandemic and survived and thrived people were working together during the pandemic. It's like a V. I. P. Event here. So that my keynote epiphany was this is like the who's who some big players are here. I saw Bill Vaz from amazon on the on the ground floor on monday night, He's number two at a W. S. I saw some top Vcs here. Microsoft IBM red hat the whole way tracks back. Whole track is back and it's a hybrid event. So I think we're here for the long haul with hybrid events where you can see a lot more in person, V. I. P. Like vibe people are doing deals. It feels alive too and it's all open. So it's all cool. And again, the team at C. N. C. F. They do an exceptional job of inclusion and making people feel safe and cool. So, great job. Thanks for coming on. I appreciate it. Good stuff. Okay. The keynote review from the cube Stupid Man shot for Dave Nicholson. Thanks for watching >>mm mm mm.

>>Yeah. >>Hello. Welcome to the Special Cube conversation here in Palo Alto, California. I'm John for a host of the Cube. We have a conversation around a I for the enterprise. What this means I got two great guests. John Finelli, Vice President, virtual GPU at NVIDIA and Maurizio D V D C T o University of Pisa in Italy. Uh, Practitioner, customer partner, um, got VM world coming up. A lot of action happening in the enterprise. John. Great to see you. Nice to meet you. Remotely coming in from Italy for this remote. >>John. Thanks for having us on again. >>Yeah. Nice to meet >>you. I wish we could be in person face to face, but that's coming soon. Hopefully, John, you were talking. We were just talking about before we came on camera about AI for the enterprise. And the last time I saw you in person was in Cuba interview. We were talking about some of the work you guys were doing in AI. It's gotten so much stronger and broader and the execution of an video, the success you're having set the table for us. What is the ai for the enterprise conversation frame? >>Sure. So, um, we, uh we've been working with enterprises today on how they can deliver a I or explore AI or get involved in a I, um uh, in a standard way in the way that they're used to managing and operating their data centre. Um, writing on top of you know, they're Dell servers with B M or V sphere. Um, so that AI feels like a standard workload that night organisation can deliver to their engineers and data scientists. And then the flip side of that, of course, is ensuring that engineers and data scientists get the workloads position to them or have access to them in the way that they need them. So it's no longer a trouble ticket that you have to submit to, I t and you know, count the hours or days or weeks until you you can get new hardware, right By being able to pull it into the mainstream data centre. I can enable self service provisioning for those folks. So we actually we make a I more consumable or easier to manage for I t administrators and then for the engineers and the data scientists, etcetera. We make it easy for them to get access to those resources so they can get to their work right away. >>Quite progress in the past two years. Congratulations on that and looking. It's only the beginning is Day one Mercy. I want to ask you about what's going on as the CTO University piece of what's happening down there. Tell us a little bit about what's going on. You have the centre of excellence there. What does that mean? What does that include? >>Uh, you know, uh, University of Peace. Are you one of one of the biggest and oldest in Italy? Uh, if you have to give you some numbers is around 50 K students and 3000 staff between, uh, professors resurgence and that cabinet receive staff. So I we are looking into data operation of the centres and especially supports for scientific computing. And, uh, this is our our daily work. Let's say this, uh, taking us a lot of times, but, you know, we are able to, uh, reserve a merchant percentage of our time, Uh, for r and D, And this is where the centre of excellence is, Uh, is coming out. Uh, so we are always looking into new kinds of technologies that we can put together to build new solutions to do next generation computing gas. We always say we are looking for the right partners to do things together. And at the end of the day is the work that is good for us is good for our partners and typically, uh, ends in a production system for our university. So is the evolution of the scientific computing environment that we have. >>Yeah. And you guys have a great track record and reputation of, you know, R and D, testing software, hardware combinations and sharing those best practises, you know, with covid impact in the world. Certainly we see it on the supply chain side. Uh, and John, we heard Jensen, your CEO and video talk multiple keynotes. Now about software, uh, and video being a software company. Dell, you mentioned Dale and VM Ware. You know, Covid has brought this virtualisation world back. And now hybrid. Those are words that we used basically in the text industry. Now it's you're hearing hybrid and virtualisation kicked around in real world. So it's ironic that vm ware and El, uh, and the Cube eventually all of us together doing more virtual stuff. So with covid impacting the world, how does that change you guys? Because software is more important. You gotta leverage the hardware you got, Whether it's Dell or in the cloud, this is a huge change. >>Yeah. So, uh, as you mentioned organisations and enterprises, you know, they're looking at things differently now, Um, you know, the idea of hybrid. You know, when you talk to tech folks and we think about hybrid, we always think about you know, how the different technology works. Um, what we're hearing from customers is hybrid, you know, effectively translates into, you know, two days in the office, three days remote, you know, in the future when they actually start going back to the office. So hybrid work is actually driving the need for hybrid I t. Or or the ability to share resources more effectively. Um, And to think about having resources wherever you are, whether you're working from home or you're in the office that day, you need to have access to the same resources. And that's where you know the the ability to virtualize those resources and provide that access makes that hybrid part seamless >>mercy What's your world has really changed. You have students and faculty. You know, Things used to be easy in the old days. Physical in this network. That network now virtual there. You must really be having him having impact. >>Yeah, we have. We have. Of course. As you can imagine, a big impact, Uh, in any kind of the i t offering, uh, from, uh, design new networking technologies, deploying new networking technologies, uh, new kind of operation we find. We found it at them. We were not able anymore to do burr metal operations directly, but, uh, from the i t point of view, uh, we were how can I say prepared in the sense that, uh, we ran from three or four years parallel, uh, environment. We have bare metal and virtual. So as you can imagine, traditional bare metal HPC cluster D g d g X machines, uh, multi GPU s and so on. But in parallel, we have developed, uh, visual environment that at the beginning was, as you can imagine, used, uh, for traditional enterprise application, or VD. I, uh, we have a significant significant arise on a farm with the grid for remote desktop remote pull station that we are using for, for example, uh, developing a virtual classroom or visual go stations. And so this is was typical the typical operation that we did the individual world. But in the same infrastructure, we were able to develop first HPC individual borders of utilisation of the HPC resources for our researchers and, uh, at the end, ai ai offering and ai, uh, software for our for our researchers, you can imagine our vehicle infrastructure as a sort of white board where we are able to design new solution, uh, in a fast way without losing too much performance. And in the case of the AI, we will see that we the performance are almost the same at the bare metal. But with all the flexibility that we needed in the covid 19 world and in the future world, too. >>So a couple things that I want to get John's thoughts as well performance you mentioned you mentioned hybrid virtual. How does VM Ware and NVIDIA fit into all this as you put this together, okay, because you bring up performance. That's now table stakes. He's leading scale and performance are really on the table. everyone's looking at it. How does VM ware an NVIDIA John fit in with the university's work? >>Sure. So, um, I think you're right when it comes to, uh, you know, enterprises or mainstream enterprises beginning their initial foray into into a I, um there are, of course, as performance in scale and also kind of ease of use and familiarity are all kind of things that come into play in terms of when an enterprise starts to think about it. And, um, we have a history with VM Ware working on this technology. So in 2019, we introduced our virtual compute server with VM Ware, which allowed us to effectively virtual is the Cuda Compute driver at last year's VM World in 2020 the CEOs of both companies got together and made an announcement that we were going to bring a I R entire video AI platform to the Enterprise on top of the sphere. And we did that, Um, starting in March this year, we we we finalise that with the introduction of GM wears V, Sphere seven, update two and the early access at the time of NVIDIA ai Enterprise. And, um, we have now gone to production with both of those products. And so customers, Um, like the University of Pisa are now using our production capabilities. And, um, whenever you virtualize in particular and in something like a I where performances is really important. Um, the first question that comes up is, uh doesn't work and And how quickly does it work Or or, you know, from an I t audience? A lot of times you get the How much did it slow down? And and and so we We've worked really closely from an NVIDIA software perspective and a bm wear perspective. And we really talk about in media enterprise with these fair seven as optimist, certified and supported. And the net of that is, we've been able to run the standard industry benchmarks for single node as well as multi note performance, with about maybe potentially a 2% degradation in performance, depending on the workload. Of course, it's very different, but but effectively being able to trade that performance for the accessibility, the ease of use, um, and even using things like we realise, automation for self service for the data scientists, Um and so that's kind of how we've been pulling it together for the market. >>Great stuff. Well, I got to ask you. I mean, people have that reaction of about the performance. I think you're being polite. Um, around how you said that shows the expectation. It's kind of sceptical, uh, and so I got to ask you, the impact of this is pretty significant. What is it now that customers can do that? They couldn't or couldn't feel they had before? Because if the expectations as well as it worked well, I mean, there's a fast means. It works, but like performance is always concerned. What's different now? What what's the bottom line impact on what country do now that they couldn't do before. >>So the bottom line impact is that AI is now accessible for the enterprise across there. Called their mainstream data centre, enterprises typically use consistent building blocks like the Dell VX rail products, right where they have to use servers that are common standard across the data centre. And now, with NVIDIA Enterprise and B M R V sphere, they're able to manage their AI in the same way that they're used to managing their data centre today. So there's no retraining. There's no separate clusters. There isn't like a shadow I t. So this really allows an enterprise to efficiently deploy um, and cost effectively Deploy it, uh, it without because there's no performance degradation without compromising what their their their data scientists and researchers are looking for. And then the flip side is for the data science and researcher, um, using some of the self service automation that I spoke about earlier, they're able to get a virtual machine today that maybe as a half a GPU as their models grow, they do more exploring. They might get a full GPU or or to GPS in a virtual machine. And their environment doesn't change because it's all connected to the back end storage. And so for the for the developer and the researcher, um, it makes it seamless. So it's really kind of a win for both Nike and for the user. And again, University of Pisa is doing some amazing things in terms of the workloads that they're doing, Um, and, uh and, uh, and are validating that performance. >>Weigh in on this. Share your opinion on or your reaction to that, What you can do now that you couldn't do before. Could you share your experience? >>Our experience is, uh, of course, if you if you go to your, uh, data scientists or researchers, the idea of, uh, sacrificing four months to flexibility at the beginning is not so well accepted. It's okay for, uh, for the Eid management, As John was saying, you have people that is know how to deal with the virtual infrastructure, so nothing changed for them. But at the end of the day, we were able to, uh, uh, test with our data. Scientists are researchers veteran The performance of us almost similar around really 95% of the performance for the internal developer developer to our work clothes. So we are not dealing with benchmarks. We have some, uh, work clothes that are internally developed and apply to healthcare music generator or some other strange project that we have inside and were able to show that the performance on the beautiful and their metal world were almost the same. We, the addition that individual world, you are much more flexible. You are able to reconfigure every finger very fast. You are able to design solution for your researcher, uh, in a more flexible way. An effective way we are. We were able to use the latest technologies from Dell Technologies and Vidia. You can imagine from the latest power edge the latest cuts from NVIDIA. The latest network cards from NVIDIA, like the blue Field to the latest, uh, switches to set up an infrastructure that at the end of the day is our winning platform for our that aside, >>a great collaboration. Congratulations. Exciting. Um, get the latest and greatest and and get the new benchmarks out their new playbooks. New best practises. I do have to ask you marriage, if you don't mind me asking why Look at virtualizing ai workloads. What's the motivation? Why did you look at virtualizing ai work clothes? >>Oh, for the sake of flexibility Because, you know, uh, in the latest couple of years, the ai resources are never enough. So we are. If you go after the bare metal, uh, installation, you are going into, uh, a world that is developing very fastly. But of course, you can afford all the bare metal, uh, infrastructure that your data scientists are asking for. So, uh, we decided to integrate our view. Dual infrastructure with AI, uh, resources in order to be able to, uh, use in different ways in a more flexible way. Of course. Uh, we have a We have a two parallels world. We still have a bare metal infrastructure. We are growing the bare metal infrastructure. But at the same time, we are growing our vehicle infrastructure because it's flexible, because we because our our stuff, people are happy about how the platform behaviour and they know how to deal them so they don't have to learn anything new. So it's a sort of comfort zone for everybody. >>I mean, no one ever got hurt virtualizing things that makes it makes things go better faster building on on that workloads. John, I gotta ask you, you're on the end video side. You You see this real up close than video? Why do people look at virtualizing ai workloads is the unification benefit. I mean, ai implies a lot of things, implies you have access to data. It implies that silos don't exist. I mean, that doesn't mean that's hard. I mean, is this real people actually looking at this? How is it working? >>Yeah. So? So again, um you know for all the benefits and activity today AI brings a I can be pretty complex, right? It's complex software to set up and to manage. And, um, within the day I enterprise, we're really focusing in on ensuring that it's easier for organisations to use. For example Um, you know, I mentioned you know, we we had introduced a virtual compute server bcs, um uh, two years ago and and that that has seen some some really interesting adoption. Some, uh, enterprise use cases. But what we found is that at the driver level, um, it still wasn't accessible for the majority of enterprises. And so what we've done is we've built upon that with NVIDIA Enterprise and we're bringing in pre built containers that remove some of the complexities. You know, AI has a lot of open source components and trying to ensure that all the open source dependencies are resolved so you can get the AI developers and researchers and data scientists. Actually doing their work can be complex. And so what we've done is we've brought these pre built containers that allow you to do everything from your initial data preparation data science, using things like video rapids, um, to do your training, using pytorch and tensorflow to optimise those models using tensor rt and then to deploy them using what we call in video Triton Server Inference in server. Really helping that ai loop become accessible, that ai workflow as something that an enterprise can manage as part of their common core infrastructure >>having the performance and the tools available? It's just a huge godsend people love. That only makes them more productive and again scales of existing stuff. Okay, great stuff. Great insight. I have to ask, What's next one's collaboration? This is one of those better together situations. It's working. Um, Mauricio, what's next for your collaboration with Dell VM Ware and video? >>We will not be for sure. We will not stop here. Uh, we are just starting working on new things, looking for new development, uh, looking for the next beast. Come, uh, you know, the digital world is something that is moving very fast. Uh, and we are We will not We will not stop here because because they, um the outcome of this work has been a very big for for our research group. And what John was saying This the fact that all the software stock for AI are simplified is something that has been, uh, accepted. Very well, of course you can imagine researching is developing new things. But for people that needs, uh, integrated workflow. The work that NVIDIA has done in the development of software package in developing containers, that gives the end user, uh, the capabilities of running their workloads is really something that some years ago it was unbelievable. Now, everything is really is really easy to manage. >>John mentioned open source, obviously a big part of this. What are you going to? Quick, Quick follow if you don't mind. Are you going to share your results so people can can look at this so they can have an easier path to AI? >>Oh, yes, of course. All the all the work, The work that is done at an ideal level from University of Visa is here to be shared. So we we as, uh, as much as we have time to write down we are. We are trying to find a way to share the results of the work that we're doing with our partner, Dell and NVIDIA. So for sure will be shared >>well, except we'll get that link in the comments, John, your thoughts. Final thoughts on the on the on the collaboration, uh, with the University of Pisa and Delvian, where in the video is is all go next? >>Sure. So So with University of Pisa, We're you know, we're absolutely, uh, you know, grateful to Morocco and his team for the work they're doing and the feedback they're sharing with us. Um, we're learning a lot from them in terms of things we can do better and things that we can add to the product. So that's a fantastic collaboration. Um, I believe that Mauricio has a session at the M World. So if you want to actually learn about some of the workloads, um, you know, they're doing, like, music generation. They're doing, you know, covid 19 research. They're doing deep, multi level, uh, deep learning training. So there's some really interesting work there, and so we want to continue that partnership. University of Pisa, um, again, across all four of us, uh, university, NVIDIA, Dell and VM Ware. And then on the tech side, you know, for our enterprise customers, um, you know, one of the things that we actually didn't speak much about was, um I mentioned that the product is optimised certified and supported, and I think that support cannot be understated. Right? So as enterprises start to move into these new areas, they want to know that they can pick up the phone and call in video or VM ware. Adele, and they're going to get support for these new workloads as they're running them. Um, we were also continuing, uh, you know, to to think about we spent a lot of time today on, like, the developer side of things and developing ai. But the flip side of that, of course, is that when those ai apps are available or ai enhanced apps, right, Pretty much every enterprise app today is adding a I capabilities all of our partners in the enterprise software space and so you can think of a beady eye enterprises having a runtime component so that as you deploy your applications into the data centre, they're going to be automatically take advantage of the GPS that you have there. And so we're seeing this, uh, future as you're talking about the collaboration going forward, where the standard data centre building block still maintains and is going to be something like a VX rail two U server. But instead of just being CPU storage and RAM, they're all going to go with CPU, GPU, storage and RAM. And that's going to be the norm. And every enterprise application is going to be infused with AI and be able to take advantage of GPS in that scenario. >>Great stuff, ai for the enterprise. This is a great QB conversation. Just the beginning. We'll be having more of these virtualizing ai workloads is real impacts data scientists impacts that compute the edge, all aspects of the new environment we're all living in. John. Great to see you, Maurizio here to meet you and all the way in Italy looking for the meeting in person and good luck in your session. I just got a note here on the session. It's at VM World. Uh, it's session 22 63 I believe, um And so if anyone's watching, Want to check that out? Um, love to hear more. Thanks for coming on. Appreciate it. >>Thanks for having us. Thanks to >>its acute conversation. I'm John for your host. Thanks for watching. We'll talk to you soon. Yeah,

>>text, you know, consumer opens up their iphone and says, oh my gosh, I love the technology behind my eyes. What's it been like being on the shark tank? You know, filming is fun, hang out, just fun and it's fun to be a celebrity at first your head gets really big and you get a good tables at restaurants who says texas has got a little possess more skin in the game today in charge of his destiny robert Hirschbeck, No stars. Here is CUBA alumni. Yeah, okay. >>Hi. I'm john Ferry, the co founder of silicon angle Media and co host of the cube. I've been in the tech business since I was 19 1st programming on many computers in a large enterprise and then worked at IBM and Hewlett Packard total of nine years in the enterprise brian's jobs from programming, Training, consulting and ultimately as an executive salesperson and then started my first company with 1997 and moved to Silicon Valley in 1999. I've been here ever since. I've always loved technology and I love covering you know, emerging technology as trained as a software developer and love business and I love the impact of software and technology to business to me creating technology that starts the company and creates value and jobs is probably the most rewarding things I've ever been involved in. And I bring that energy to the queue because the Cubans were all the ideas are and what the experts are, where the people are and I think what's most exciting about the cube is that we get to talk to people who are making things happen, entrepreneur ceo of companies, venture capitalists, people who are really on a day in and day out basis, building great companies and the technology business is just not a lot of real time live tv coverage and, and the cube is a non linear tv operation. We do everything that the T. V guys on cable don't do. We do longer interviews. We asked tougher questions, we ask sometimes some light questions. We talked about the person and what they feel about. It's not prompted and scripted. It's a conversation authentic And for shows that have the Cube coverage and makes the show buzz. That creates excitement. More importantly, it creates great content, great digital assets that can be shared instantaneously to the world. Over 31 million people have viewed the cube and that is the result. Great content, great conversations and I'm so proud to be part of you with great team. Hi, I'm john ferrier. Thanks for watching the cube. >>Hello and welcome to the cube. We are here live on the ground in the expo floor of a live event. The AWS public sector summit. I'm john for your host of the cube. We're here for the next two days. Wall to wall coverage. I'm here with Sandy carter to kick off the event. Vice president partner as partners on AWS public sector. Great to see you Sandy, >>so great to see you john live and in person, right? >>I'm excited. I'm jumping out of my chair because I did a, I did a twitter periscope yesterday and said a live event and all the comments are, oh my God, an expo floor a real events. Congratulations. >>True. Yeah. We're so excited yesterday. We had our partner day and we sold out the event. It was rock them and pack them and we had to turn people away. So what a great experience. Right, >>Well, I'm excited. People are actually happy. We tried, we tried covering mobile world congress in Barcelona. Still, people were there, people felt good here at same vibe. People are excited to be in person. You get all your partners here. You guys have had had an amazing year. Congratulations. We did a couple awards show with you guys. But I think the big story is the amazon services for the partners. Public sector has been a real game changer. I mean we talked about it before, but again, it continues to happen. What's the update? >>Yeah, well we had, so there's lots of announcements. So let me start out with some really cool growth things because I know you're a big growth guy. So we announced here at the conference yesterday that our government competency program for partners is now the number one industry in AWS for are the competency. That's a huge deal. Government is growing so fast. We saw that during the pandemic, everybody was moving to the cloud and it's just affirmation with the government competency now taking that number one position across AWS. So not across public sector across AWS and then one of our fastest growing areas as well as health care. So we now have an A. T. O. Authority to operate for HIPPA and Hi trust and that's now our fastest growing area with 85% growth. So I love that new news about the growth that we're seeing in public sector and all the energy that's going into the cloud and beyond. >>You know, one of the things that we talked about before and another Cuban of you. But I want to get your reaction now current state of the art now in the moment the pandemic has highlighted the antiquated outdated systems and highlighted help inadequate. They are cloud. You guys have done an amazing job to stand up value quickly now we're in a hybrid world. So you've got hybrid automation ai driving a complete change and it's happening pretty quick. What's the new things that you guys are seeing that's emerging? Obviously a steady state of more growth. But what's the big success programs that you're seeing right now? >>Well, there's a few new programs that we're seeing that have really taken off. So one is called proserve ready. We announced yesterday that it's now G. A. And the U. S. And a media and why that's so important is that our proserve team a lot of times when they're doing contracts, they run out of resources and so they need to tap on the shoulder some partners to come and help them. And the customers told us that they wanted them to be pro served ready so to have that badge of honor if you would that they're using the same template, the same best practices that we use as well. And so we're seeing that as a big value creator for our partners, but also for our customers because now those partners are being trained by us and really helping to be mentored on the job training as they go. Very powerful program. >>Well, one of the things that really impressed by and I've talked to some of your MSP partners on the floor here as they walk by, they see the cube, they're all doing well. They're all happy. They got a spring in their step. And the thing is that this public private partnerships is a real trend we've been talking about for a while. More people in the public sector saying, hey, I want I need a commercial relationship, not the old school, you know, we're public. We have all these rules. There's more collaboration. Can you share your thoughts on how you see that evolving? Because now the partners in the public sector are partnering closer than ever before. >>Yeah, it's really um, I think it's really fascinating because a lot of our new partners are actually commercial partners that are now choosing to add a public sector practice with them. And I think a lot of that is because of these public and private partnerships. So let me give you an example space. So we were at the space symposium our first time ever for a W. S at the space symposium and what we found was there were partners, they're like orbital insight who's bringing data from satellites, There are public sector partner, but that data is being used for insurance companies being used for agriculture being used to impact environment. So I think a lot of those public private partnerships are strengthening as we go through Covid or have like getting alec of it. And we do see a lot of push in that area. >>Talk about health care because health care is again changing radically. We talked to customers all the time. They're like, they have a lot of legacy systems but they can't just throw them away. So cloud native aligns well with health care. >>It does. And in fact, you know, if you think about health care, most health care, they don't build solutions themselves, they depend on partners to build them. So they do the customer doesn't buy and the partner does the build. So it's a great and exciting area for our partners. We just launched a new program called the mission accelerator program. It's in beta and that program is really fascinating because our healthcare partners, our government partners and more now can use these accelerators that maybe isolate a common area like um digital analytics for health care and they can reuse those. So it's pretty, I think it's really exciting today as we think about the potential health care and beyond. >>You know, one of the challenge that I always thought you had that you guys do a good job on, I'd love to get your reaction to now is there's more and more people who want to partner with you than ever before. And sometimes it hasn't always been easy in the old days like to get fed ramp certified or even deal with public sector. If you were a commercial vendor, you guys have done a lot with accelerating certifications. Where are you on that spectrum now, what's next? What's the next wave of partner onboarding or what's the partner trends around the opportunities in public sector? >>Well, one of the new things that we announced, we have tested out in the U. S. You know, that's the amazon way, right, Andy's way, you tested your experiment. If it works, you roll it out, we have a concierge program now to help a lot of those new partners get inundated into public sector. And so it's basically, I'm gonna hold your hand just like at a hotel. I would go up and say, hey, can you direct me to the right restaurant or to the right museum, we do the same thing, we hand hold people through that process. Um, if you don't want to do that, we also have a new program called navigate which is built for brand new partners. And what that enables our partners to do is to kind of be guided through that process. So you are right. We have so many partners now who want to come and grow with us that it's really essential that we provide a great partner, experienced a how to on board. >>Yeah. And the A. P. M. Was the amazon partner network also has a lot of crossover. You see a lot a lot of that going on because the cloud, it's you can do both. >>Absolutely. And I think it's really, you know, we leverage all of the ap in programs that exist today. So for example, there was just a new program that was put out for a growth rebate and that was driven by the A. P. N. And we're leveraging and using that in public sector too. So there's a lot of prosecutes going on to make it easier for our partners to do business with us. >>So I have to ask you on a personal note, I know we've talked about before, your very comfortable the virtual now hybrid space. How's your team doing? How's the structure looks like, what are your goals, what are you excited about? >>Well, I think I have the greatest team ever. So of course I'm excited about our team and we are working in this new hybrid world. So it is a change for everybody uh the other day we had some people in the office and some people calling in virtually so how to manage that, right was really quite interesting. Our goals that we align our whole team around and we talked a little bit about this yesterday are around mission which are the solution areas migration, so getting everything to the cloud and then in the cloud, we talk about modernization, are you gonna use Ai Ml or I O T? And we actually just announced a new program around that to to help out IOT partners to really build and understand that data that's coming in from I O T I D C says that that idea that IOT data has increased by four times uh in the, during the covid period. So there's so many more partners who need help. >>There's a huge shift going on and you know, we always try to explain on the cube. Dave and I talked about a lot and it's re platform with the cloud, which is not just lift and shift you kind of move and then re platform then re factoring your business and there's a nuance there between re platform in which is great. Take advantage of cloud scale. But the re factoring allows for this unique advantage of these high level services. >>That's right >>and this is where people are winning. What's your reaction to that? >>Oh, I completely agree. I think this whole area of modernizing your application, like we have a lot of folks who are doing mainframe migrations and to your point if they just lift what they had in COBOL and they move it to a W S, there's really not a lot of value there, but when they rewrite the code, when they re factor the code, that's where we're seeing tremendous breakthrough momentum with our partner community, you know, Deloitte is one of our top partners with our mainframe migration. They have both our technology and our consulting um, mainframe migration competency there to one of the other things I think you would be interested in is in our session yesterday we just completed some research with r C T O s and we talked about the next mega trends that are coming around Web three dato. And I'm sure you've been hearing a lot about web www dot right? Yeah, >>0.04.0, it's all moving too fast. I mean it's moving >>fast. And so some of the things we talked to our partners about yesterday are like the metaverse that's coming. So you talked about health care yesterday electronic caregiver announced an entire application for virtual caregivers in the metaverse. We talked about Blockchain, you know, and the rise of Blockchain yesterday, we had a whole set of meetings, everybody was talking about Blockchain because now you've got El Salvador Panama Ukraine who have all adopted Bitcoin which is built on the Blockchain. So there are some really exciting things going on in technology and public sector. >>It's a societal shift and I think the confluence of tech user experience data, new, decentralized ways of changing society. You're in the middle of it. >>We are and our partners are in the middle of it and data data, data data, that's what I would say. Everybody is using data. You and I even talked about how you guys are using data. Data is really a hot topic and we we're really trying to help our partners figure out just how to migrate the data to the cloud but also to use that analytics and machine learning on it too. Well, >>thanks for sharing the data here on our opening segment. The insights we will be getting out of the Great Sandy. Great to see you got a couple more interviews with you. Thanks for coming on. I appreciate you And thanks for all your support. You guys are doing great. Your partners are happy you're on a great wave. Congratulations. Thank you, john appreciate more coverage from the queue here. Neither is public sector summit. We'll be right back. Mhm Yeah. >>Mhm. Mhm robert Herjavec. People obviously know you from shark tank

value in jobs is probably the most rewarding >>things I've ever been involved >>in And I bring that energy to the queue because the cube is where all the ideas are and where the experts are, where the people are And I think what's most exciting about the cube is that we get to talk to people who are making things happen, entrepreneurs ceo of companies, venture capitalists, people who are really on a day in and day out basis, building great companies and the technology business is just not a lot of real time live tv coverage and and the cube is a non linear tv operation. We do everything that the T. V guys on cable don't do. We do longer interviews. We asked tougher questions. We >>ask sometimes some light questions. We talked about the person and what >>they feel about it's not prompted and scripted. It's a conversation authentic and for shows that have the cube coverage and makes the show buzz that creates excitement. More importantly, it creates great content, great digital assets that can be shared instantaneously to the world. Over 31 million people have viewed the cube and that is the result of great content, great conversations and I'm so proud to be part of a Q with great team. Hi, I'm john barrier, Thanks for watching the cube boy. >>Okay, welcome back everyone cube coverage of AWS amazon web services public sector summit in person here in Washington D. C. I'm john Kerry host of the cube with Sandy carter and Lynn martin Vm ware Vice president of government education and healthcare. Great to see you both cube alumni's although she's been on since 2014 your first time in 2018 18 2018. Great to see you. Great to see you. Thanks for coming on. Yeah, thanks for having us. So VM ware and 80 of us have a huge partnership. We've covered that announcement when Andy and Pat nelson was the Ceo. Then a lots happened, a lot of growth. A lot of success. Congratulations. Thank you. What's the big news with AWS this year in >>public sector. So we just received our authorization to operate for Fed ramp high. Um and we actually have a lot of joint roadmap planning. You are kicking off our job today with the Department of Defense and I. L five for the defense customers is also in process. So um a lot of fruits of a long time of labor. So very excited, >>awesome. So explain what does the Fed ramp authority to operate mean? What is >>that all about? So I would say in a nutshell, it's really putting a commercial offering through the security protocols to support the federal government needs. Um and there's different layers of that depending on the end user customers. So Fed ramp i across this, across all the civilian and non classified workloads in the federal government. Um probably applicability for state, local government as well with the new state Gramp focus. Um Fed ramp. I will meet or exceed that. So it will be applicable across the other parts of the government as well and all operated, you know, in a controlled environment jointly. So you get the VM ware software stack on top of the platform from A W. S and all the services that is more VM >>ware, faster deployed usage, faster acceleration. >>Yeah, so I would say um today the government operates on VM ware across all of the government, state, local and federal, um some workloads are still on prem many and this will really accelerate that transformation journey to the cloud and be able to move workloads quicker onto the BMC on AWS platform without free architect in your >>application, without giving away any kind of VM World Secret because that's next week. What is the value proposition of VM ware cloud, on AWS? What is the, what is the, what is the main value proposition you guys see in the public >>sector? So I see three and then Sandy chime in their two, I would say, you know, the costs in general to operate In the Cloud vs on prem or significant savings, we've seen savings over 300% on some customers. Um the speed on the application movement I think is a >>huge >>unique benefit on BMC on AWS. So traditionally to move to native cloud, you have to really do a lot of application were to be able to move those workloads where on BMC on AWS to move them pretty fast. And it also leverages the investments that the government agencies have already made in their operational tools and things of that nature. So it's not like a full reinvestment for something new but really leveraging both the skill sets in the data center in the I. T. Shops and the tools and investments you've bought over the past. And then the third area I would say is really getting the agility and flexibility and speed of a cloud experience. >>What's your, what's your reaction to the partnership? >>You know, we were just talking uh in a survey to our customers and 67% of them said that the velocity of the migration really matters to them. And one of the things that we do really well together is migrate very quickly, so we have workloads that we've migrated that have taken you know weeks months uh as opposed to years as they go over, which is really powerful. And then also tomorrow VM ware is with us in a session on data led migration. We were talking about data earlier and VM ware cloud on Aws also helps to migrate over like sequel server, database oracle databases so that we can also leverage that data now on the cloud to make better decisions and >>real time decisions as >>well. It's been really interesting to watch the partnership and watching VM ware transform as well, not only the migrations are in play with the public sector, there's a lot of them, believe me, healthcare, you name every area. It's all, all those old systems are out there. You know, I'm talking about out there. But now with microservices and containers, you've got tansy and you got the whole cloud, native VM ware stack emerging that's going to allow customers to re factor This is a dynamic that is kind of under reported >>Migration is one thing. But I think, I think that the whole Tan Xue portfolio is one of the most interesting things going on in VM ware. And we also have some integration going on on D. M. C on AWS with tan to we don't have that pentagram. Yeah. For the government market, but it's on the road mapping plans and we have other customers And I would say, you know, some of my non federal government customers were able to move workloads in hours, not even days or weeks. There you go, literally back and forth. And very impressive on the BMC on AWS platform. So, um, as we expand things in with the Tan Xue platform is, you know, Sandy talked about this yesterday and our partners summit, Everyone's talking about containers and things like that. VM ware is doing a lot of investment around the cooper Netease plus the application migration work and things of that nature. >>I'd love to get you guys reaction to this comment because I've seen a lot of change. Obviously we're all seeing it. I've actually interviewed a bunch of aWS and VM ware customers and I would call um some of the categories skeptics the old school cloud holding the line. And then when the pandemic hit those skeptics flip over because they see the value. In fact I actually interviewed a skeptic who became an award winner who went on the record and said I love hey w I love the cloud. I was a skeptic because you saw the value the time to value. This is really a key dynamic. I know it's kind of thrown out a lot of digital transformation or I. T. Modernization but the agility and that kind of speed. It becomes the number one thing. What's your reaction to the skeptics converting? And then what happens >>next? Um So I think there's still a lot of folks in I. T. That our tree huggers or I call him several huggers uh um pick your term. And I think that um there is some concern about what their role will be. So I think one of the differences delivering cloud services to your internal constituents is really understand the business value of the applications and what that delivers from a mission perspective back to your client. And that's a shift for data center owners to really start thinking more from the customer mission perspective than or my servers running you know, do you have enough storage capacity blah blah blah. So I think that creates that skepticism and part of that's around what's my role going to be. So in the cloud transformation of a customer, there's all this old people part that becomes really the catalyst and I think the customers that have been very sad and really leverage that and then retool the business value back to the end users around the mission have done the best job. >>I mean we talk about this all the time, it's really hard to get the best debris partners together and then make it all work cloud, it becomes easier than doing it very bespoke or waterfall way >>Yeah, I have to say with the announcement yesterday, we're going to have a lot more partner with partners. So you and I have talked about this a few times where we bring partners together to work with each other. In fact, Lynn is going to go meet with one of those partners right after the interview um that want to really focus in on a couple of particular areas to really drive this and I think, you know, part of the, you know, as your re factoring or migrating VMro over the other big benefit is skills, people have really strong, these fear skills, the sand skills, >>operation >>operation tools Yeah. And so they want to preserve those, I think that's part of the beauty of doing VM ware cloud on Aws is you get to take those skills with you into the new world as well, >>you know, I was going to just ask the next question ai ops or day two operations, a big buzzword Yeah and that is essentially operation mindset, that devoPS DEVOps two is coming. Emily Freeman gave a keynote with our last event we had with with amazon public showcase revolution and devops devoPS 2.0 is coming which is now faster, security is built in the front end, so all these things are happening so now it's coming into the public sector with the GovCloud. So I have to ask you Lynn what are some of the big successes you've had with on the gulf cloudy, just Govcloud. >>So I would say we've had a lot of customers across the state local side especially um that weren't waiting for fed ramp and those customers were able to move like I mentioned this earlier and you guys just touched on it. So I think the benefit and the benefit, one of our best customers is Emmett Right? Absolutely mitt, God bless them. They've been on every cloud journey with VM ware since 2014 we moved in my three years now and talk about a skeptic. So although Mark is very revolutionary and tries new things, he was like oh who knows and literally when we moved those workloads it was minutes and the I. T shop day one there was no transformation work for them, it was literally using all the tools and things in that environment. So the progress of that and the growth of the applications that have been able to move their things. That took 2 to 3 years before we're all done within six months and really being able to expand those business values back out for the services that he delivers to the customers. So I think you'll see quite a bit across state, local federal government. You know, we have U. S. Marshals, thank them very much. They were our sponsor that we've been working with the last few years. We have a defense customer working with us around aisle five. >>Um you know, if we could also thank Coal Fire because Cold Fire is one of our joint partners talking about partner partners and they were played a critical role in helping BM We're cloud on AWS and get the fed ramp high certifications. >>They were R three p. O. We hired them for their exercise expertise with AWS as well as helping the BMR. >>Well the partnership with the war has been a really big success. Remember the naysayers when that was announced? Um it really has worked out well for you guys. Um I do want to ask you one more thing and we don't mind. Um One of the biggest challenges that you see the blockers or challenges from agencies moving to the cloud cover cloud because you know, people are always trying to get those blockers out of the way but it's an organizational culture is a process technology. What's your what's your take on that land. Um >>I think a lot does have to do with the people and the organizational history. I think somewhere you need a leader and a champion that really wants to change for good. I call Pat, used to call a tech for good. I love that. Right to really, you know, get things moving for the customers. I mean one of the things I'm most proud about supporting the government business in general though is really the focus on the mission is unparalleled, you know, in the sectors we support, you say, education or government or healthcare. Right? All three of those sectors, there's never any doubt on what that focuses. So I think the positives of it are like, how do you get into that change around that? And that could be systems, there's less what's VMC ON AWS as we mentioned, because the tools already in the environment so they know how to use it. But I do think there's a transformation on the data center teams and really becoming moving from technology to the business aspects a little bit more around the missions and things of that. >>What's interesting is that it's so, I mean, I actually love this environment even though it's kind of hard on everyone. Education and health care have been disrupted unprecedented ways and it's never gonna change back? Remember healthcare, hip data silos, silos, education don't spend on it. >>That education was the most remarkable part. Unbelievable. I started working in february before school started with one of the large cities everyone can guess and just the way they were able to pivot so fast was amazing and I don't think anybody, I think we did like five years of transformation in six months and it's never going to go back. >>I completely a great yes education. We just did a piece of work with CTS around the world and education is one of the most disrupted as you said health care and then the third one is government and all three of those are public sector. So the three most disruptive sectors or mission areas are in public sector which has created a lot of opportunity for us and our partnership to add value. I mean that's what we're all about right customer obsession working backwards from the customer and making sure that our partnership continues to add value to those customers >>while we love the tech action on the cube. Obviously we'd like to document and pontificate and talk about it. Digital revolution. Every application now is in play globally. Not just for I. T. But for society, public sector more than ever is the hottest area on the planet. >>Absolutely. And I would say that now our customers are looking at E. S. G. Environmental, they want to know what you're doing on sustainability. They want to know what you're doing for society. We just had a bid that came in and they wanted to understand our diversity plan and then open governance. They're looking for that openness. They're not just artificial intelligence but looking at explainable AI as well. So I think that we have a chance to impact environment societies and governance >>and you mentioned space earlier. Another way I talked with closure. I mean I'm an interview today too, but what's happening with space and what you can monitor disasters, understand how to deploy resources to areas that might have challenges, earthquakes or fires or other things. All new things are happening. >>Absolutely. And all that data people like to say, why are you spending money on space? There's so many problems here, but that data that comes from space is going to impact us here on earth. And so all the things that we're doing, all that data could be used with VM ware cloud on AWS as well. >>Well, you watch closely we got some space coverage coming. I got a big scoop. I'm gonna release soon about something behind the dark side of the moon on in terms of space sovereignty coming a lot of action, cybersecurity in space. That's really heavy right now. But >>aren't you glad that VMC cloud on AWS isn't hidden on the dark side of the moon. It's >>right on the congratulations. Thanks for coming on. You guys are doing great. Thanks for >>thanks for sharing. Congratulations. >>Okay, cube coverage here continues. AWS public sector summit in Washington D. C live for two days of coverage be right back. Thank you. Mhm. Mhm mm mm hmm.

>>Yeah. Hello and welcome back to the cubes coverage of AWS public sector summit here in Washington D. C. We're live on the ground for two days. Face to face conference and expo hall and everything here but keith brooks who is the director and head of technical business development for a dress government Govcloud selling brains 10th birthday. Congratulations. Welcome to the cube. Thank you john happy to be E. C. 2 15 S three is 9.5 or no, that maybe they're 10 because that's the same day as sqs So Govcloud. 10 years, 20 years. What time >>flies? 10 years? >>Big milestone. Congratulations. A lot of history involved in Govcloud. Yes. Take us through what's the current situation? >>Yeah. So um let's start with what it is just for the viewers that may not be familiar. So AWS Govcloud is isolated. AWS cloud infrastructure and services that were purposely built for our U. S. Government customers that had highly sensitive data or highly regulated data or applications and workloads that they wanted to move to the cloud. So we gave customers the ability to do that with AWS Govcloud. It is subject to the fed ramp I and D O D S R G I L four L five baselines. It gives customers the ability to address ITAR requirements as well as Seaga's N'est ce MMC and Phipps requirements and gives customers a multi region architecture that allows them to also designed for disaster recovery and high availability in terms of why we built it. It starts with our customers. It was pretty clear from the government that they needed a highly secure and highly compliant cloud infrastructure to innovate ahead of demand and that's what we delivered. So back in august of 2011 we launched AWS GovCloud which gave customers the best of breed in terms of high technology, high security, high compliance in the cloud to allow them to innovate for their mission critical workloads. Who >>was some of the early customers when you guys launched after the C. I. A deal intelligence community is a big one but some of the early customers. >>So the Department of Health and Human Services, the Department of Veterans Affairs, the Department of Justice and the Department of Defense were all early users of AWS GovCloud. But one of our earliest lighthouse customers was the Nasa jet propulsion laboratory and Nasa Jpl used AWS GovCloud to procure Procure resources ahead of demand which allowed them to save money and also take advantage of being efficient and only paying for what they needed. But they went beyond just I. T. Operations. They also looked at how do they use the cloud and specifically GovCloud for their mission programs. So if you think back to all the way to 2012 with the mars curiosity rover, Nasa Jpl actually streamed and processed and stored that data from the curiosity rover on AWS Govcloud They actually streamed over 150 terabytes of data responded to over 80,000 requests per second and took it beyond just imagery. They actually did high performance compute and data analytics on the data as well. That led to additional efficiencies for future. Over there >>were entire kicking they were actually >>hard core missing into it. Mission critical workloads that also adhere to itar compliance which is why they used AWS GovCloud. >>All these compliance. So there's also these levels. I remember when I was working on the jetty uh stories that were out there was always like level for those different classifications. What does all that mean like? And then this highly available data and highly high availability all these words mean something in these top secret clouds. Can you take us through kind of meetings >>of those? Yeah absolutely. So it starts with the federal compliance program and the two most popular programs are Fed ramp and Dodi srg fed ramp is more general for federal government agencies. There are three levels low moderate and high in the short and skinny of those levels is how they align to the fisma requirements of the government. So there's fisma low fisma moderate fisma high depending on the sensitivity of the government data you will have to align to those levels of Fed ramp to use workloads and store data in the cloud. Similar story for D. O. D. With srg impact levels to 45 and six uh impacts levels to four and five are all for unclassified data. Level two is for less sensitive public defense data levels. Four and five cover more sensitive defense data to include mission critical national security systems and impact level six is for classified information. So those form the basis of security and compliance, luckily with AWS GovCloud celebrating our 10th anniversary, we address Fed ramp high for our customers that require that and D. O. D impact levels to four and five for a sensitive defense guy. >>And that was a real nuanced point and a lot of the competition can't do that. That's real people don't understand, you know, this company, which is that company and all the lobbying and all the mudslinging that goes on. We've seen that in the industry. It's unfortunate, but it happens. Um, I do want to ask you about the Fed ramp because what I'm seeing on the commercial side in the cloud ecosystem, a lot of companies that aren't quote targeting public sector are coming in on the Fed ramp. So there's some good traction there. You guys have done a lot of work to accelerate that. Any new, any new information to share their. >>Yes. So we've been committed to supporting the federal government compliance requirements effectively since the launch of GovCloud. And we've demonstrated our commitment to Fed ramp over the last number of years and GovCloud specifically, we've taken dozens of services through Fed ramp high and we're 100% committed to it because we have great relationships with the Fed ramp, Jabor the joint authorization board. We work with individual government agencies to secure agency A. T. O. S. And in fact we actually have more agency A. T. O. S. With AWS GovCloud than any other cloud provider. And the short and skinny is that represents the baseline for cloud security to address sensitive government workloads and sensitive government data. And what we're seeing from industry and specifically highly regulated industries is the standard that the U. S. Government set means that they have the assurance to run control and classified information or other levels of highly sensitive data on the cloud as well. So Fed ramp set that standard. It's interesting >>that the cloud, this is the ecosystem within an ecosystem again within crossover section. So for instance um the impact of not getting Fed ramp certified is basically money. Right. If you're a supplier vendor uh software developer or whatever used to being a miracle, no one no one would know right bed ramp. I'm gonna have to hire a whole department right now. You guys have a really easy, this is a key value proposition, isn't it? >>Correct. And you see it with a number of I. S. V. S. And software as the service providers. If you visit the federal marketplace website, you'll see dozens of providers that have Fed ramp authorized third party SAAS products running on GovCloud industry leading SAAS companies like Salesforce dot com driven technology Splunk essay PNS to effectively they're bringing their best of breed capabilities, building on top of AWS GovCloud and offering those highly compliant fed ramp, moderate fed ramp high capabilities to customers both in government and private industry that need that level of compliance. >>Just as an aside, I saw they've got a nice tweet from Teresa Carlson now it's plunk Govcloud yesterday. That was a nice little positive gesture uh, for you guys at GovCloud, what other areas are you guys moving the needle on because architecturally this is a big deal. What are some areas that you're moving the needle on for the GovCloud? >>Well, when I look back across the last 10 years, there were some pretty important developments that stand out. The first is us launching the second Govcloud infrastructure region in 2018 And that gave customers that use GovCloud specifically customers that have highly sensitive data and high levels of compliance. The ability to build fault tolerant, highly available and mission critical workloads in the cloud in a region that also gives them an additional three availability zones. So the launch of GovCloud East, which is named AWS GovCloud Us East gave customers to regions a total of six availability zones that allowed them accelerate and build more scalable solutions in the cloud. More recently, there is an emergence of another D O D program called the cybersecurity maturity model, C M M C and C M M C is something where we looked around the corner and said we need to Innovate to help our customers, particularly defense customers and the defense industrial based customers address see MMC requirements in the cloud. So with Govcloud back in December of 2020, we actually launched the AWS compliant framework for federal defense workloads, which gives customers a turnkey capability and tooling and resources to spin up environments that are configured to meet see MMC controls and D. O. D. Srg control. So those things represent some of the >>evolution keith. I'm interested also in your thoughts on how you see the progression of Govcloud outside the United States. Tactical Edge get wavelength coming on board. How does how do you guys look at that? Obviously us is global, it's not just the jet, I think it's more of in general. Edge deployments, sovereignty is also going to be world's flat, Right? I mean, so how does that >>work? So it starts back with customer requirements and I tie it back to the first question effectively we built Govcloud to respond to our U. S. Government customers and are highly regulated industry customers that had highly sensitive data and a high bar to meet in terms of regulatory compliance and that's the foundation of it. So as we look to other customers to include those outside of the US. It starts with those requirements. You mentioned things like edge and hybrid and a good example of how we marry the two is when we launched a W. S. Outpost in Govcloud last year. So outpost brings the power of the AWS cloud to on premises environments of our customers, whether it's their data centers or Coehlo environments by bringing AWS services, a. P. I. S and service and points to the customer's on premises facilities >>even outside the United States. >>Well, for Govcloud is focused on us right now. Outside of the U. S. Customers also have availability to use outpost. It's just for us customers, it's focused on outpost availability, geography >>right now us. Right. But other governments gonna want their Govcloud too. Right, Right, that's what you're getting at, >>Right? And it starts with the data. Right? So we we we spent a lot of time working with government agencies across the globe to understand their regulations and their requirements and we use that to drive our decisions. And again, just like we started with govcloud 10 years ago, it starts with our customer requirements and we innovate from there. Well, >>I've been, I love the D. O. D. S vision on this. I know jet I didn't come through and kind of went scuttled, got thrown under the bus or whatever however you want to call it. But that whole idea of a tactical edge, it was pretty brilliant idea. Um so I'm looking forward to seeing more of that. That's where I was supposed to come in, get snowball, snowmobile, little snow snow products as well, how are they doing? And because they're all part of the family to, >>they are and they're available in Govcloud and they're also authorized that fed ramp and Gov srg levels and it's really, it's really fascinating to see D. O. D innovate with the cloud. Right. So you mentioned tactical edge. So whether it's snowball devices or using outposts in the future, I think the D. O. D. And our defense customers are going to continue to innovate. And quite frankly for us, it represents our commitment to the space we want to make sure our defense customers and the defense industrial base defense contractors have access to the best debris capabilities like those edge devices and edge capable. I >>think about the impact of certification, which is good because I just thought of a clean crows. We've got aerospace coming in now you've got D O. D, a little bit of a cross colonization if you will. So nice to have that flexibility. I got to ask you about just how you view just in general, the intelligence community a lot of uptake since the CIA deal with amazon Just overall good health for eight of his gum cloud. >>Absolutely. And again, it starts with our commitment to our customers. We want to make sure that our national security customers are defense customers and all of the customers and the federal government that have a responsibility for securing the country have access to the best of breed capability. So whether it's the intelligence community, the Department of Defense are the federal agencies and quite frankly we see them innovating and driving things forward to include with their sensitive workloads that run in Govcloud, >>what's your strategy for partnerships as you work on the ecosystem? You do a lot with strategy. Go to market partnerships. Um, it's got its public sector pretty much people all know each other. Our new firms popping up new brands. What's the, what's the ecosystem looks like? >>Yeah, it's pretty diverse. So for Govcloud specifically, if you look at partners in the defense community, we work with aerospace companies like Lockheed martin and Raytheon Technologies to help them build I tar compliant E. R. P. Application, software development environments etcetera. We work with software companies I mentioned salesforce dot com. Splunk and S. A. P. And S. To uh and then even at the state and local government level, there's a company called Pay It that actually worked with the state of Kansas to develop the Icann app, which is pretty fascinating. It's a app that is the official app of the state of Kansas that allow citizens to interact with citizens services. That's all through a partner. So we continue to work with our partner uh broad the AWS partner network to bring those type of people >>You got a lot of MST is that are doing good work here. I saw someone out here uh 10 years. Congratulations. What's the coolest thing uh you've done or seen. >>Oh wow, it's hard to name anything in particular. I just think for us it's just seeing the customers and the federal government innovate right? And, and tie that innovation to mission critical workloads that are highly important. Again, it reflects our commitment to give these government customers and the government contractors the best of breed capabilities and some of the innovation we just see coming from the federal government leveraging the count now. It's just super cool. So hard to pinpoint one specific thing. But I love the innovation and it's hard to pick a favorite >>Child that we always say. It's kind of a trick question I do have to ask you about just in general, the just in 10 years. Just look at the agility. Yeah, I mean if you told me 10 years ago the government would be moving at any, any agile anything. They were a glacier in terms of change, right? Procure Man, you name it. It's just like, it's a racket. It's a racket. So, so, but they weren't, they were slow and money now. Pandemic hits this year. Last year, everything's up for grabs. The script has been flipped >>exactly. And you know what, what's interesting is there were actually a few federal government agencies that really paved the way for what you're seeing today. I'll give you some examples. So the Department of Veterans Affairs, they were an early Govcloud user and way back in 2015 they launched vets dot gov on gov cloud, which is an online platform that gave veterans the ability to apply for manage and track their benefits. Those type of initiatives paved the way for what you're seeing today, even as soon as last year with the U. S. Census, right? They brought the decennial count online for the first time in history last year, during 2020 during the pandemic and the Census Bureau was able to use Govcloud to launch and run 2020 census dot gov in the cloud at scale to secure that data. So those are examples of federal agencies that really kind of paved the way and leading to what you're saying is it's kind >>of an awakening. It is and I think one of the things that no one's reporting is kind of a cultural revolution is the talent underneath that way, the younger people like finally like and so it's cooler. It is when you go fast and you can make things change, skeptics turned into naysayers turned into like out of a job or they don't transform so like that whole blocker mentality gets exposed just like shelf where software you don't know what it does until the cloud is not performing, its not good. Right, right. >>Right. Into that point. That's why we spend a lot of time focused on education programs and up skilling the workforce to, because we want to ensure that as our customers mature and as they innovate, we're providing the right training and resources to help them along their journey, >>keith brooks great conversation, great insight and historian to taking us to the early days of Govcloud. Thanks for coming on the cube. Thanks thanks for having me cubes coverage here and address public sector summit. We'll be back with more coverage after this short break. Mhm. Mhm mm.

>>mm >>Welcome back to HPD discovered 2021. The virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks David yourself you've been good, >>yep. Doing great thank you. Hey you've heard the term follow the money, we're gonna follow the data. How >>about right >>So HP and wien you're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows. And uh of course we miss miss being face to face this year but next year we'll be back rocket but uh talk a little bit about what that milestone means to you. >>Yeah Thanks. Dave. And you're right. It is a milestone. I mean when you look at alliances or partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X Number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology. Um and 10 years is a long time. I mean how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased that the investment from both sides as maintained and grown through that time period. Um And as you said it's a shame we're not doing this in person but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for this government. >>Well, congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of hard y and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships. It was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. And it's a really cheesy answer, but it's it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what built that foundation, We were the launch back up part of the three part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said as HP has evolved through that period, the divestiture and the overall movement of their portfolio. We've continued to listen to each other on what is important to both parties. But while that's great from the relationship and the alliance, the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period in our needs have changed. I mean we started with servers, we worked with storage, we're with green labour? S moral like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been killed. >>So what are the waves that you're you're surfing here, You put on the binoculars and look forward what are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah. Great question. I mean we're focused on three things for the for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection. And the reason for that is that if you look at the diversity of the portfolio, HP has you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs, that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving forward and that whatever decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>We'll talk about that speedy recovery. There's so much in the news today, we're seeing all this, all this ransomware. I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate when, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you you lose in that recovery and you try to compress that RP. Oh right. Is as tight as possible. And that's the other sort of value that that customers look for from a combination of HPV and VM. So, but I want to ask you, so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement, Yes, you did a really interesting report recently and they're saying that spending on data center protection is going to grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization. And so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, you know, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green Lake is key to how things are moving forward and other things that the storage departments doing as well as they look at some of their new ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you decide you want to consume the HP portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally I want to I want to talk about the cast and acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought after you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go, oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously. How does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall? >>Yeah that's a great question and there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it But as you exactly said, this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty. And you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites, with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition uh VM and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic in an economic downturn. It's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is as a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago where where HP envy emceeing joint success in the marketplace? It would have been, well of course, virtualization, it's all the >>rage. Where >>are you seeing success today? >>And that's a great question and it's interesting you talk about it with the pandemic. I'll be honest, the last recession us that I was in the digital messaging market and at that point when economies get tight, everybody invest in cheaper types of marketing, which is digital messaging. Now we've got a pandemic and guess what, everybody is looking at this area of the market again with protection. And I think to your point, it's a great Russian. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with office 365 etcetera, what you're seeing is that hybrid need. We're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer. And because we have it so well baked into all the different parts of the portfolio, it's a seamless ability to just continue to exp fan utilization of the portfolio. So from our point of view, we're seeing fantastic against bright success. We're seeing it in some of these verticals like medical, like financial, the big corcoran pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing people look at what I would classify as some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic provider for the foundation of the core business. Now, what we're finding is that coming to HP envy and saying, hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on. So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing all of our regions come up. Um, and the reason why that's important is sometimes you see alliances that have success in one market or one area, We're seeing the year over year growth in a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's telling us is that the customers resonate on what we're producing together. And so from that point of view, we're very ubiquitous in our level of value to customers and we're hoping to carry that on moving forward. >>Well, it's two trusted brands. Obviously, you know, the Hewlett Packard enterprise name and that stands out and is no longer start up with a funny name is >>you're proven >>In the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um, earlier this year, wondering how that impacted the alliance? Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name, but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition and I D. C. Just released some fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth for the second half of 2020. Moving us up into the number two position for the first time, which again, is a testament to the success were also having with HP and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP primera, we increase it with HP nimble. We also made a really significant when we're working with HP store. Once we did a lot of evolution on that for a huge space savings, which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that, what I >>love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and >>I've been talking a lot of your >>executives recently, you've, you've, you've thrown out that stand a lot number two. Number two. But, but when I was in to see everybody wanted to be number one at something, so you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, >>but you're not >>doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection and you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not gonna claim number one now until we get to number one and we'll claim real number one. So I like that about you guys. You, you set the mark the mark high. But so I love that. Um, >>I appreciate it. Yeah. How should >>people be thinking about the future of your relationship with HP the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances. And when you look about, when you ask the question, excuse me. Dave about, you know, where do we see the HP envy moving forward, consistency, consistency is key for us for 10 years. We've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you talk to are the executives about. When you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regards to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in the, in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks, uh, certainly the competitive landscape gets tougher and tougher, but you guys are, are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, and hey, we do this together. So we're great to see it moving forward, >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us. For HP. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. >>Mm.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>Welcome back to HPD discovered 2021 the virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks. David yourself you've been good, >>yep dude, great, thank you. Hey, you've heard the term follow the money, we're going to follow the data. How about so HP and Wien? You're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows and uh of course we miss miss being face to face this year but next year we'll be back rocking but uh talk a little bit about what that milestone means to you. >>Yeah, Thanks. Dave. And you're right. It is a milestone. I mean when >>you look at alliances or >>Partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology um and 10 years is a long time. I mean, how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased at the investment from both sides as maintained and grown through that time period. Um and as you said, it's a shame we're not doing this in person, but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for discovered. Well, >>congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of marijuana and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release, but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its, you know, competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships and was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. >>And it's a really >>cheesy answer, but it's, it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what >>Built that foundation, we were the launch back up part of the three >>part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said, as HP has evolved through that period, the divestiture and >>the overall movement of their portfolio. >>We've continued to listen to each other on what >>is important to both parties. But while that's great from the relationship and the alliance, >>the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period and our needs have changed. I mean we started with servers, we worked with storage, we're with green lake esmeralda like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been q. >>So what are the waves that you're, you're surfing here, You put on the binoculars and look forward. What are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah, great question. I mean we're focused on three things for the, for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection and the reason for that is that if you look at the diversity of the portfolio HP has, you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving >>forward and that whatever >>decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>You talk about that speedy recovery, there's so much in the news today, we're seeing all this, all this ransomware, I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you lose in that recovery and you try to compress that arpeggio right is to so as tight as possible. And that's the other sort of value that that customers look for from a combination of HP envy them. So, but I want to ask you so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And we're how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way, kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement. S you did a really interesting report recently and they're saying that spending on data center protection is gonna grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization and so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green like his key to how things are moving forward and other things that the storage departments doing as well as they look at some of their >>new >>ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you >>decide you want to consume the HP >>portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally. I want to I want to talk about the casting acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought. After you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously how does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall. >>Yeah that's a great question. And there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it but as you exactly said this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty and you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition of'em and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic, in an economic downturn, it's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is is a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago, where where hp envy emceeing joint success in the marketplace, it would have been, well of course virtualization, it's all the rage. Where are you seeing success today? >>And that's a great question and it's >>interesting you talk about it with the pandemic. >>I'll be honest, the >>last recession us had, I was in the digital messaging market and at that >>point when economies get tight, everybody invest >>in cheaper types of marketing, which is digital messaging. Now, we've got a pandemic and guess what, everybody's looking at this area of the market again with protection. And I think to your point, it's a great question. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with Office 365 etcetera. What you're seeing is that hybrid me, we're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer >>and because we >>have it so >>well baked into all the >>different parts of the portfolio, it's a seamless ability to just continue to expand the utilization of the portfolio. So from our point of view, we're seeing fantastic enterprise success. We're seeing it in some of these verticals >>like medical, like >>financial, the big corporate pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing, people will look at what I would classify some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic >>provider for the >>foundation of the core business. Now, what we're finding is that coming to HP envy and saying, Hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on? So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing >>all of our regions come up. Um and the reason why >>that's important is sometimes you see alliances that have success in one market or one area, we're seeing the year >>over year growth in >>a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's >>telling us is that the customers resonate on what we're producing together. And so from >>that point of view we're very >>ubiquitous in our level of value to customers and we're hoping to carry that on moving >>forward. Well it's >>two trusted brands. Obviously, you know the Hewlett Packard Enterprise name and that stands out and is no longer a start up with a funny name is You've proven in the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um earlier this year, wondering how that impacted the alliance. Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition. And I D. C just >>released some >>fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth For the second half of 2020. Moving us up into the number two position for the first time, which again is a testament to the success were also having with hp and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP Primera. We increase it with HP Nimble. We also made a really significant when we're working with HB store. Once we did a lot of evolution on that for a huge space savings which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that. >>What I love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and I've been talking a lot of your executives recently, you've, you've thrown out that stand a lot number two. Number two. But, but when I was about to see everybody wanted to be number one at something. So you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, but you're not doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection. And you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not going to claim number one now until we get the number one will claim real number one. So I like that about you guys, you, you set the mark, the mark high. But so I love that. Um, >>I appreciate I have >>how should people be thinking about the future of your relationship with H. P. E. You know, the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure that you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances And when you look about, when you ask the question, excuse me Dave about, you know, where do we see the HP envy moving forward, >>consistency, consistency >>Is key for us for 10 years, we've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you've talked to, other executives about when you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regard to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks. Uh, certainly the competitive landscape gets tougher and tougher, but you guys are are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, >>and hey, we do this together. So we're great to see >>it moving forwards. >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us for hp. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. Mhm. Mhm

>>mhm, mm. All right. Mhm. Mhm, mm mm. Mhm. Yeah, mm. Mhm. Yeah, yeah. Mhm, mm. Okay. Mm. Yeah, Yeah. >>Mhm. Mhm. Yeah. Welcome to future cloud made possible by Cisco. My name is Dave Volonte and I'm your host. You know, the cloud is evolving like the universe is expanding at an accelerated pace. No longer is the cloud. Just a remote set of services, you know, somewhere up there. No, the cloud, it's extending to on premises. Data centers are reaching into the cloud through adjacent locations. Clouds are being connected together to each other and eventually they're gonna stretch to the edge and the far edge workloads, location latency, local laws and economics will define the value customers can extract from this new cloud model which unifies the operating experience independent of location. Cloud is moving rapidly from a spare capacity slash infrastructure resource to a platform for application innovation. Now, the challenge is how to make this new cloud simple, secure, agile and programmable. Oh and it has to be cloud agnostic. Now, the real opportunity for customers is to tap into a layer across clouds and data centers that abstracts the underlying complexity of the respective clouds and locations. And it's got to accommodate both mission critical workloads as well as general purpose applications across the spectrum cost, effectively enabling simplicity with minimal labor costs requires infrastructure i. E. Hardware, software, tooling, machine intelligence, AI and partnerships within an ecosystem. It's kind of accommodate a variety of application deployment models like serverless and containers and support for traditional work on VMS. By the way, it also requires a roadmap that will take us well into the next decade because the next 10 years they will not be like the last So why are we here? Well, the cube is covering Cisco's announcements today that connect next generation compute shared memory, intelligent networking and storage resource pools, bringing automation, visibility, application assurance and security to this new decentralized cloud. Now, of course in today's world you wouldn't be considered modern without supporting containers ai and operational tooling that is demanded by forward thinking practitioners. So sit back and enjoy the cubes, special coverage of Cisco's future cloud >>From around the globe. It's the Cube presenting future cloud one event, a world of opportunities brought to you by Cisco. >>We're here with Dejoy Pandey, a VP of emerging tech and incubation at Cisco. V. Joy. Good to see you. Welcome. >>Good to see you as well. Thank you Dave and pleasure to be here. >>So in 2020 we kind of had to redefine the notion of agility when it came to digital business or you know organizations, they had to rethink their concept of agility and business resilience. What are you seeing in terms of how companies are thinking about their operations in this sort of new abnormal context? >>Yeah, I think that's a great question. I think what what we're seeing is that pretty much the application is the center of the universe. And if you think about it, the application is actually driving brand recognition and the brand experience and the brand value. So the example I like to give is think about a banking app uh recovered that did everything that you would expect it to do. But if you wanted to withdraw cash from your bank you would actually have to go to the ATM and punch in some numbers and then look at your screen and go through a process and then finally withdraw cash. Think about what that would have, what what that would do in a post pandemic era where people are trying to go contact less. And so in a situation like this, the digitization efforts that all of these companies are going through and and the modernization of the automation is what is driving brand recognition, brand trust and brand experience. >>Yeah. So I was gonna ask you when I heard you say that, I was gonna say well, but hasn't it always been about the application, but it's different now, isn't it? So I wonder if you talk more about how the application is experience is changing. Yes. As a result of this new digital mandate. But how should organizations think about optimizing those experiences in this new world? >>Absolutely. And I think, yes, it's always been about the application, but it's becoming the center of the universe right now because all interactions with customers and consumers and even businesses are happening through that application. So if the application is unreliable or if the application is not available is untrusted insecure, uh, there's a problem. There's a problem with the brand, with the company and the trust that consumers and customers have with our company. So if you think about an application developer, the weight he or she is carrying on their shoulders is tremendous because you're thinking about rolling features quickly to be competitive. That's the only way to be competitive in this world. You need to think about availability and resiliency. Like you pointed out and experience, you need to think about security and trust. Am I as a customer or consumer willing to put my data in that application? So velocity, availability, Security and trust and all of that depends on the developer. So the experience, the security, the trust, the feature, velocity is what is driving the brand experience now. >>So are those two tensions that say agility and trust, you know, Zero Trust used to be a buzzword now it's a mandate. But are those two vectors counter posed? Can they be merged into one and not affect each other? Does the question makes sense? Right? Security usually handcuffs my speed. But how do you address that? >>Yeah that's a great question. And I think if you think about it today that's the way things are. And if you think about this developer all they want to do is run fast because they want to build those features out and they're going to pick and choose a piece and services that matter to them and build up their app and they want the complexities of the infrastructure and security and trust to be handled by somebody else is not that they don't care about it but they want that abstraction so that is handled by somebody else. And typically within an organization we've seen in the past where this friction between Netapp Sec ops I. T. Tops and and the cloud platform Teams and the developer on one side and these these frictions and these meetings and toil actually take a toll on the developer and that's why companies and apps and developers are not as agile as they would like to be. So I think but it doesn't have to be that way. So I think if there was something that would allow a developer to pick and choose, discover the apis that they would like to use connect those api is in a very simple manner and then be able to scale them out and be able to secure them and in fact not just secure them during the run time when it's deployed. We're right off the back when the fire up that I'd and start developing the application. Wouldn't that be nice? And as you do that, there is a smooth transition between that discovery connectivity and ease of consumption and security with the idea cops. Netapp psych ops teams and see source to ensure that they are not doing something that the organization won't allow them to do in a very seamless manner. >>I want to go back and talk about security but I want to add another complexity before we do that. So for a lot of organizations in the public cloud became a staple of keeping the lights on during the pandemic but it brings new complexities and differences in terms of latency security, which I want to come back to deployment models etcetera. So what are some of the specific networking challenges that you've seen with the cloud native architecture is how are you addressing those? >>Yeah. In fact, if you think about cloud, to me that is a that is a different way of seeing a distributed system. And if you think about a distributed system, what is at the center of the distributed system is the network. So my my favorite comment here is that the network is the wrong time for all distribute systems and modern applications. And that is true because if you think about where things are today, like you said, there's there's cloud assets that a developer might use in the banking example that I gave earlier. I mean if you want to build a contact less app so that you get verified, a customer gets verified on the app. They walk over to the ATM and they were broadcast without touching that ATM. In that kind of an example, you're touching the mobile Rus, let's say U S A P is you're touching cloud API is where the back end might sit. You're touching on primary PS maybe it's an oracle database or a mainframe even where transactional data exists. You're touching branch pipes were the team actually exists and the need for consistency when you withdraw cash and you're carrying all of this and in fact there might be customer data sitting in salesforce somewhere. So it's cloud API is a song premise branch. It's ass is mobile and you need to bring all of these things together and over time you will see more and more of these API is coming from various as providers. So it's not just cloud providers but saas providers that the developer has to use. And so this complexity is very, very real. And this complexity is across the wide open internet. So the application is built across this wide open internet. So the problems of discovery ability, the problems of being able to simply connect these apis and manage the data flow across these apis. The problems of consistency of policy and consumption because all of these areas have their own nuances and what they mean, what the arguments mean and what the A. P. I. Actually means. How do you make it consistent and easy for the developer? That is the networking problem. And that is a problem of building out this network, making traffic engineering easy, making policy easy, making scale out, scale down easy, all of that our networking problems. And so we are solving those problems uh Francisco. >>Yeah the internet is the new private network but it's not so private. So I want to go back to security. I often say that the security model of building a moat, you dig the moat, you get the hardened castle that's just outdated now that the queen is left her castle, I always say it's dangerous out there. And the point is you touched on this, it's it's a huge decentralized system and with distributed apps and data, that notion of perimeter security, it's just no longer valid. So I wonder if you could talk more about how you're thinking about this problem and you definitely address some of that in your earlier comments. But what are you specifically doing to address this and how do you see it evolving? >>Yeah, I mean, that's that's a very important point. I mean, I think if you think about again the wide open internet being the wrong time for all modern applications, what is perimeter security in this uh in this new world? I mean, it's to me it boils down to securing an API because again, going with that running example of this contact lists cash withdrawal feature for a bank, the ap wherever it's it's entre branch SAs cloud, IOS android doesn't matter that FBI is your new security perimeter. And the data object that is trying to access is also the new security perimeter. So if you can secure ap to ap communication and P two data object communication, you should be good. So that is the new frontier. But guess what software is buggy? Everybody's software not saying Cisco software, everybody's Softwares buggy. Uh software is buggy, humans are not reliable and so things mature, things change, things evolve over time. So there needs to be defense in depth. So you need to secure at the API layer had the data object layer, but you also need to secure at every layer below it so that you have good defense and depth if any layer in between is not working out properly. So for us that means ensuring ap to ap communication, not just during long time when the app has been deployed and is running, but during deployment and also during the development life cycle. So as soon as the developer launches an ID, they should be able to figure out that this api is security uses reputable, it has compliant, it is compliant to my to my organization's needs because it is hosted, let's say from Germany and my organization wants appears to be used only if they are being hosted out of Germany so compliance needs and and security needs and reputation. Is it available all the time? Is it secure? And being able to provide that feedback all the time between the security teams and the developer teams in a very seamless real time manner. Yes, again, that's something that we're trying to solve through some of the services that we're trying to produce in san Francisco. >>Yeah, I mean those that layered approach that you're talking about is critical because every layer has, you know, some vulnerability. And so you you've got to protect that with some depth in terms of thinking about security, how should we think about where where Cisco's primary value add is, I mean as parts of the interview has a great security business is growing business, Is it your intention to to to to add value across the entire value chain? I mean obviously you can't do everything so you've got a partner but so has the we think about Cisco's role over the next I'm thinking longer term over the over the next decade. >>Yeah, I mean I think so, we do come in with good strength from the runtime side of the house. So if you think about the security aspects that we haven't played today, uh there's a significant set of assets that we have around user security around around uh with with do and password less. We have significant assets in runtime security. I mean, the entire portfolio that Cisco brings to the table is around one time security, the secure X aspects around posture and policy that will bring to the table. And as you see, Cisco evolve over time, you will see us shifting left. I mean, I know it's an overused term, but that is where security is moving towards. And so that is where api security and data security are moving towards. So learning what we have during runtime because again, runtime is where you learn what's available and that's where you can apply all of the M. L. And I models to figure out what works what doesn't taking those learnings, Taking those catalogs, taking that reputation database and moving it into the deployment and development life cycle and making sure that that's part of that entire they have to deploy to runtime chain is what you will see. Cisco do overtime. >>That's fantastic phenomenal perspective video. Thanks for coming on the cube. Great to have you and look forward to having you again. >>Absolutely. Thank you >>in a moment. We'll talk hybrid cloud applications operations and potential gaps that need to be addressed with costume, Das and VJ Venugopal. You're watching the cube the global leader in high tech coverage. Mhm >>You were cloud. It isn't just a cloud. It's everything flowing through it. It's alive. Yeah, connecting users, applications, data and devices and whether it's cloud, native hybrid or multi cloud, it's more distributed than ever. One company takes you inside, giving you the visibility and the insight you need to take action. >>One company >>has the vision to understand it, all the experience, to securely connect at all on any platform in any environment. So you can work wherever work takes you in a cloud first world between your cloud and being cloud smart, there's a bridge. Cisco the bridge to possible. >>Okay. We're here with costume does, who is the Senior Vice President, General Manager of Cloud and compute at Cisco. And VJ Venugopal, who is the Senior Director for Product Management for cloud compute at Cisco. KTV. J. Good to see you guys welcome. >>Great to see you. Dave to be here. >>Katie, let's talk about cloud you And I last time we're face to face was in Barcelona where we love talking about cloud and I always say to people look, Cisco is not a hyper Scaler, but the big public cloud players, they're like giving you a gift. They spent almost actually over $100 billion last year on Capex. The big four. So you can build on that infrastructure. Cisco is all about hybrid cloud. So help us understand the strategy. There may be how you can leverage that build out and importantly what a customer is telling you they want out of hybrid cloud. >>Yeah, no that's that's that's a perfect question to start with. Dave. So yes. So the hybrid hyper scholars have invested heavily building out their assets. There's a great lot of innovation coming from that space. Um There's also a great innovation set of innovation coming from open source and and that's another source of uh a gift. In fact the I. T. Community. But when I look at my customers they're saying well how do I in the context of my business implement a strategy that takes into consideration everything that I have to manage um in terms of my contemporary work clothes, in terms of my legacy, in terms of everything my developer community wants to do on DEVOPS and really harnessed that innovation that's built in the public cloud, that built an open source that built internally to me, and that naturally leads them down the path of a hybrid cloud strategy. And Siskel's mission is to provide for that imperative, the simplest more power, more powerful platform to deliver hybrid cloud and that platform. Uh It's inter site we've been investing in. Inner side, it's a it's a SAS um service um inner side delivers to them that bridge between their estates of today that were closer today, the need for them to be guardians of enterprise grade resiliency with the agility uh that's needed for the future. The embracing of cloud. Native of new paradigms of deVOPS models, the embracing of innovation coming from public cloud and an open source and bridging those two is what inner side has been doing. That's kind of that's kind of the crux of our strategy. Of course we have the entire portfolio behind it to support any, any version of that, whether that is on prem in the cloud, hybrid, cloud, multi cloud and so forth. >>But but if I understand it correctly from what I heard earlier today, the inter site is really a linchpin of that strategy, is it not? >>It really is and may take a second to totally familiarize those who don't know inner side with what it is. We started building this platform quite a few years back and we we built a ground up to be an immensely scalable SAs, super simple hybrid cloud platform and it's a platform that provides a slew of service is inherently and then on top of that there are suites of services, the sweets of services that are tied to infrastructure, automation. Cisco, as well as Cisco partners. The streets of services that have nothing to do with Cisco um products from a hardware perspective. And it's got to do with more cloud orchestration and cloud native and inner side and its suite of services um continue to kind of increase in pace and velocity of delivery video. Just over the last two quarters we've announced a whole number of things will go a little bit deeper into some of those but they span everything from infrastructure automation to kubernetes and delivering community than service to workload optimization and having visibility into your cloud estate. How much it's costing into your on premise state into your work clothes and how they're performing. It's got integrations with other tooling with both Cisco Abdi uh as well as non Cisco um, assets and then and then it's got a whole slew of capabilities around orchestration because at the end of the day, the job of it is to deliver something that works and works at scale that you can monitor and make sure is resilient and that includes that. That includes a workflow and ability to say, you know, do this and do this and do this. Or it includes other ways of automation, like infrastructure as code and so forth. So it includes self service that so that expand that. But inside the world's simplest hybrid cloud platform, rapidly evolving rapidly delivering new services. And uh we'll talk about some more of those day. >>Great, thank you, Katie VJ. Let's bring you into the discussion. You guys recently made an announcement with the ASCIi corp. I was stoked because even though it seemed like a long time ago, pre covid, I mean in my predictions post, I said, ha, she was a name to watch our data partners. Et are you look at the survey data and they really have become mainstream? You know, particularly we think very important in the whole multi cloud discussion. And as well, they're attractive to customers. They have open source offerings. You can very easily experiment. Smaller organizations can take advantage. But if you want to upgrade to enterprise features like clustering or whatever, you can plug right in. Not a big complicated migration. So a very, very compelling story there. Why is this important? Why is this partnership important to Cisco's customers? Mhm. >>Absolutely. When the spot on every single thing that you said, let me just start by paraphrasing what ambition statement is in the cloud and computer group. Right ambition statement is to enable a cloud operating model for hybrid cloud. And what we mean by that is the ability to have extreme amounts of automation orchestration and observe ability across your hybrid cloud idea operations now. Uh So developers and applications team get a great amount of agility in public clouds and we're on a mission to bring that kind of agility and automation to the private cloud and to the data centers and inter site is a quickie platform and lynchpin to enable that kind of operations. Uh, Cloud like operations in the in the private clouds and the key uh As you rightly said, harsher car is the, you know, they were the inventors of the concept of infrastructure at school and in terra form, they have the world's number one infrastructure as code platform. So it became a natural partnership for Cisco to enter into a technology partnership with harsher card to integrate inter site with hardship cops, terra form to bring the benefits of infrastructure as code to the to hybrid cloud operations. And we've entered into a very tight integration and uh partnership where we allow developers devops teams and infrastructure or administrators to allow the use of infrastructure as code in a SAS delivered manner for both public and private club. So it's a very unique partnership and a unique integration that allows the benefits of cloud managed i E C. To be delivered to hybrid cloud operations. And we've been very happy and proud to be partnering with Russian government shutdown. >>Yeah, Terra form gets very high marks from customers. The a lot of value there. The inner side integration adds to that value. Let's stay on cloud native for a minute. We all talk about cloud native cady was sort of mentioning before you got the the core apps, uh you want to protect those, make sure their enterprise create but they gotta be cool as well for developers. You're connecting to other apps in the cloud or wherever. How are you guys thinking about this? Cloud native trend? What other movies are you making in this regard? >>I mean cloud native is there is one of the paramount I. D. Trends of today and we're seeing massive amounts of adoption of cloud native architecture in all modern applications. Now, Cloud Native has become synonymous with kubernetes these days and communities has emerged as a de facto cloud native platform for modern cloud native app development. Now, what Cisco has done is we have created a brand new SAs delivered kubernetes service that is integrated with inter site, we call it the inter site community service for A. Ks. And this just geared a little over one month ago. Now, what interstate kubernetes service does is it delivers a cloud managed and cloud delivered kubernetes service that can be deployed on any supported target infrastructure. It could be a Cisco infrastructure, it could be a third party infrastructure or it could even be public club. But think of it as kubernetes anywhere delivered as says, managed from inside. It's a very powerful capability that we've just released into inter site to enable the power of communities and clog native to be used to be used anywhere. But today we made a very important aspect because we are today announced the brand new Cisco service mess manager, the Cisco service mesh manager, which is available as an extension to the KS are doing decide basically we see service measures as being the future of networking right in the past we had layer to networking and layer three networking and now with service measures, application networking and layer seven networking is the next frontier of, of networking. But you need to think about networking for the application age very differently how it is managed, how it is deployed. It needs to be ready, developer friendly and developer centric. And so what we've done is we've built out an application networking strategy and built out the service match manager as a very simple way to deliver application networking through the consumers, like like developers and application teams. This is built on an acquisition that Cisco made recently of Banzai Cloud and we've taken the assets of Banzai Cloud and deliver the Cisco service mesh manager as an extension to KS. That brings the promise of future networking and modern networking to application and development gives >>God thank you. BJ. And so Katie, let's let's let's wrap this up. I mean, there was a lot in this announcement today, a lot of themes around openness, heterogeneity and a lot of functionality and value. Give us your final thoughts. >>Absolutely. So, couple of things to close on, first of all, um Inner side is the simplest, most powerful hybrid cloud platform out there. It enables that that cloud operating model that VJ talked about, but enables that across cloud. So it's sad, it's relatively easy to get into it and give it a spin so that I'd highly encouraged anybody who's not familiar with it to try it out and anybody who is familiar with it to look at it again, because they're probably services in there that you didn't notice or didn't know last time you looked at it because we're moving so fast. So that's the first thing. The second thing I close with is um, we've been talking about this bridge that's kind of bridging, bridging uh your your on prem your open source, your cloud estates. And it's so important to to make that mental leap because uh in past generation, we used to talk about integrating technologies together and then with public cloud, we started talking about move to public cloud, but it's really how do we integrate, how do we integrate all of that innovation that's coming from the hyper scale, is everything they're doing to innovate superfast, All of that innovation is coming from open source, all of that innovation that's coming from from companies around the world, including Cisco, How do we integrate that to deliver an outcome? Because at the end of the day, if you're a cloud of Steam, if you're an idea of Steam, your job is to deliver an outcome and our mission is to make it super simple for you to do that. That's the mission we're on and we're hoping that everybody that's excited as we are about how simple we made that. >>Great, thank you a lot in this announcement today, appreciate you guys coming back on and help us unpack you know, some of the details. Thank thanks so much. Great having you. >>Thank you >>Dave in a moment. We're gonna come back and talk about disruptive technologies and futures in the age of hybrid cloud with Vegas Rattana and James leach. You're watching the cube, the global leader in high tech coverage. >>What if your server box >>wasn't a box at >>all? What if it could do anything run anything? >>Be any box you >>need with massive scale precision and intelligence managed and optimized from the cloud integrated with all your clouds, private, public or hybrid. So you can build whatever you need today and tomorrow. The potential of this box is unlimited. Unstoppable unseen ever before. Unbox the future with Cisco UCS X series powered by inter site >>Cisco. >>The bridge to possible. Yeah >>we're here with Vegas Rattana who's the director of product management for Pcs at Cisco. And James Leach is the director of business development for U. C. S. At the Cisco as well. We're gonna talk about computing in the age of hybrid cloud. Welcome gentlemen. Great to see you. >>Thank you. >>Thank you because let's start with you and talk about a little bit about computing architectures. We know that they're evolving. They're supporting new data intensive and other workloads especially as high performance workload requirements. What's this guy's point of view on all this? I mean specifically interested in your thoughts on fabrics. I mean it's kind of your wheelhouse, you've got accelerators. What are the workloads that are driving these evolving technologies and how how is it impacting customers? What are you seeing? >>Sure. First of all, very excited to be here today. You're absolutely right. The pace of innovation and foundational platform ingredients have just been phenomenal in recent years. The fabric that's writers that drives the processing power, the Golden city all have been evolving just an amazing place and the peace will only pick up further. But ultimately it is all about applications and the way applications leverage those innovations. And we do see applications evolving quite rapidly. The new classes of applications are evolving to absorb those innovations and deliver much better business values. Very, very exciting time step. We're talking about the impact on the customers. Well, these innovations have helped them very positively. We do see significant challenges in the data center with the point product based approach of delivering these platforms, innovations to the applications. What has happened is uh, these innovations today are being packaged as point point products to meet the needs of a specific application and as you know, the different applications have no different needs. Some applications need more to abuse, others need more memory, yet others need, you know, more course, something different kinds of fabrics. As a result, if you walk into a data center today, it is very common to see many different point products in the data center. This creates a manageability challenge. Imagine the aspect of managing, you know, several different form factors want you to you purpose built servers. The variety of, you know, a blade form factor, you know, this reminds me of the situation we had before smartphones arrived. You remember the days when you when we used to have a GPS device for navigation system, a cool music device for listening to the music. A phone device for making a call camera for taking the photos right? And we were all excited about it. It's when a smart phones the right that we realized all those cool innovations could be delivered in a much simpler, much convenient and easy to consume through one device. And you know, I could uh, that could completely transform our experience. So we see the customers were benefiting from these innovations to have a way to consume those things in a much more simplistic way than they are able to go to that. >>And I like to look, it's always been about the applications. But to your point, the applications are now moving in a much faster pace. The the customer experience is expectation is way escalated. And when you combine all these, I love your analogy there because because when you combine all these capabilities, it allows us to develop new Applications, new capabilities, new customer experiences. So that's that I always say the next 10 years, they ain't gonna be like the last James Public Cloud obviously is heavily influencing compute design and and and customer operating models. You know, it's funny when the public cloud first hit the market, everyone we were swooning about low cost standard off the shelf servers in storage devices, but it quickly became obvious that customers needed more. So I wonder if you could comment on this. How are the trends that we've seen from the hyper scale, Is how are they filtering into on prem infrastructure and maybe, you know, maybe there's some differences there as well that you could address. >>Absolutely. So I'd say, first of all, quite frankly, you know, public cloud has completely changed the expectations of how our customers want to consume, compute, right? So customers, especially in a public cloud environment, they've gotten used to or, you know, come to accept that they should consume from the application out, right? They want a very application focused view, a services focused view of the world. They don't want to think about infrastructure, right? They want to think about their application, they wanna move outward, Right? So this means that the infrastructure basically has to meet the application where it lives. So what that means for us is that, you know, we're taking a different approach. We're we've decided that we're not going to chase this single pane of glass view of the world, which, frankly, our customers don't want, they don't want a single pane of glass. What they want is a single operating model. They want an operating model that's similar to what they can get at the public with the public cloud, but they wanted across all of their cloud options they wanted across private cloud across hybrid cloud options as well. So what that means is they don't want to just consume infrastructure services. They want all of their cloud services from this operating model. So that means that they may want to consume infrastructure services for automation Orchestration, but they also need kubernetes services. They also need virtualization services, They may need terror form workload optimization. All of these services have to be available, um, from within the operating model, a consistent operating model. Right? So it doesn't matter whether you're talking about private cloud, hybrid cloud anywhere where the application lives. It doesn't matter what matters is that we have a consistent model that we think about it from the application out. And frankly, I'd say this has been the stumbling block for private cloud. Private cloud is hard, right. This is why it hasn't been really solved yet. This is why we had to take a brand new approach. And frankly, it's why we're super excited about X series and inter site as that operating model that fits the hybrid cloud better than anything else we've seen >>is acute. First, first time technology vendor has ever said it's not about a single pane of glass because I've been hearing for decades, we're gonna deliver a single pane of glass is going to be seamless and it never happens. It's like a single version of the truth. It's aspirational and, and it's just not reality. So can we stay in the X series for a minute James? Uh, maybe in this context, but in the launch that we saw today was like a fire hose of announcements. So how does the X series fit into the strategy with inter site and hybrid cloud and this operating model that you're talking about? >>Right. So I think it goes hand in hand, right. Um the two pieces go together very well. So we have uh, you know, this idea of a single operating model that is definitely something that our customers demand, right? It's what we have to have, but at the same time we need to solve the problems of the cost was talking about before we need a single infrastructure to go along with that single operating model. So no longer do we need to have silos within the infrastructure that give us different operating models are different sets of benefits when you want infrastructure that can kind of do all of those configurations, all those applications. And then, you know, the operating model is very important because that's where we abstract the complexity that could come with just throwing all that technology at the infrastructure so that, you know, this is, you know, the way that we think about is the data center is not centered right? It's no longer centered applications live everywhere. Infrastructure lives everywhere. And you know, we need to have that consistent operating model but we need to do things within the infrastructure as well to take full advantage. Right? So we want all the sas benefits um, of a Ci CD model of, you know, the inter site can bring, we want all that that proactive recommendation engine with the power of A I behind it. We want the connected support experience went all of that. They want to do it across the single infrastructure and we think that that's how they tie together, that's why one or the other doesn't really solve the problem. But both together, that's why we're here. That's why we're super excited. >>So Vegas, I make you laugh a little bit when I was an analyst at I D C, I was deep in infrastructure and then when I left I was doing, I was working with application development heads and like you said, uh infrastructure, it was just a, you know, roadblock but but so the target speakers with Cisco announced UCS a decade ago, I totally missed it. I didn't understand it. I thought it was Cisco getting into the traditional server business and it wasn't until I dug in then I realized that your vision was really to transform infrastructure, deployment and management and change them all. I was like, okay, I got that wrong uh but but so let's talk about the the ecosystem and the joint development efforts that are going on there, X series, how does it fit into this, this converged infrastructure business that you've, you've built and grown with partners, you got storage partners like Netapp and Pure, you've got i SV partners in the ecosystem. We see cohesive, he has been a while since we we hung out with all these companies at the Cisco live hopefully next year, but tell us what's happening in that regard. >>Absolutely, I'm looking forward to seeing you in the Cisco live next year. You know, they have absolutely you brought up a very good point. You see this is about the ecosystem that it brings together, it's about making our customers bring up the entire infrastructure from the core foundational hardware all the way to the application level so that they can, you know, go off and running pretty quick. The converse infrastructure has been one of the corners 2.5 hour of the strategy, as you pointed out in the last decade. And and and I'm I'm very glad to share that converse infrastructure continues to be a very popular architecture for several enterprise applications. Seven today, in fact, it is the preferred architecture for mission critical applications where performance resiliency latency are the critical requirements there almost a de facto standards for large scale deployments of virtualized and business critical data bases and so forth with X series with our partnerships with our Stories partners. Those architectures will absolutely continue and will get better. But in addition as a hybrid cloud world, so we are now bringing in the benefits of canvas in infrastructure uh to the world of hybrid cloud will be supporting the hybrid cloud applications now with the CIA infrastructure that we have built together with our strong partnership with the Stories partners to deliver the same benefits to the new ways applications as well. >>Yeah, that's what customers want. They want that cloud operating model. Right, go ahead please. >>I was going to say, you know, the CIA model will continue to thrive. It will transition uh it will expand the use cases now for the new use cases that were beginning to, you know, say they've absolutely >>great thank you for that. And James uh have said earlier today, we heard this huge announcement, um a lot of lot of parts to it and we heard Katie talk about this initiative is it's really computing built for the next decade. I mean I like that because it shows some vision and you've got a road map that you've thought through the coming changes in workloads and infrastructure management and and some of the technology that you can take advantage of beyond just uh, you know, one or two product cycles. So, but I want to understand what you've done here specifically that you feel differentiates you from other competitive architectures in the industry. >>Sure. You know that's a great question. Number one. Number two, um I'm frankly a little bit concerned at times for for customers in general for our customers customers in general because if you look at what's in the market, right, these rinse and repeat systems that were effectively just rehashes of the same old design, right? That we've seen since before 2000 and nine when we brought you C. S to market these are what we're seeing over and over and over again. That's that's not really going to work anymore frankly. And I think that people are getting lulled into a false sense of security by seeing those things continually put in the market. We rethought this from the ground up because frankly future proofing starts now, right? If you're not doing it right today, future proofing isn't even on your radar because you're not even you're not even today proved. So we re thought the entire chassis, the entire architecture from the ground up. Okay. If you look at other vendors, if you look at other solutions in the market, what you'll see is things like management inside the chassis. That's a great example, daisy chaining them together >>like who >>needs that? Who wants that? Like that kind of complexity is first of all, it's ridiculous. Um, second of all, um, if you want to manage across clouds, you have to do it from the cloud, right. It's just common sense. You have to move management where it can have the scale and the scope that it needs to impact your entire domain, your world, which is much larger now than it was before. We're talking about true hybrid cloud here. Right. So we had to solve certain problems that existed in the traditional architecture. You know, I can't tell you how many times I heard you talk about the mid plane is a great example. You know, the mid plane and a chastity is a limiting factor. It limits us on how much we can connect or how much bandwidth we have available to the chassis. It limits us on air flow and other things. So how do you solve that problem? Simple. Just get rid of it. Like we just we took it out, right. It's not no longer a problem. We designed an architecture that doesn't need it. It doesn't rely on it. No forklift upgrades. So, as we start moving down the path of needing liquid cooling or maybe we need to take advantage of some new, high performance, low latency fabrics. We can do that with almost. No problem at all. Right, So, we don't have any forklift upgrades. Park your forklift on the side. You won't need it anymore because you can upgrade gradually. You can move along as technologies come into existence that maybe don't even exist. They they may not even be on our radar today to take advantage of. But I like to think of these technologies, they're really important to our customers. These are, you know, we can call them disruptive technologies. The reality is that we don't want to disrupt our customers with these technologies. We want to give them these technologies so they can go out and be disruptive themselves. Right? And this is the way that we've designed this from the ground up to be easy to consume and to take advantage of what we know about today and what's coming in the future that we may not even know about. So we think this is a way to give our customers that ultimate capability flexibility and and future proofing. >>I like I like that phrase True hybrid cloud. It's one that we've used for years and but to me this is all about that horizontal infrastructure that can support that vision of what true hybrid cloud is. You can support the mission critical applications. You can you can develop on the system and you can support a variety of workload. You're not locked into one narrow stovepipe and that does have legs, Vegas and James. Thanks so much for coming on the program. Great to see you. >>Yeah. Thank you. Thank you. >>When we return shortly thomas Shiva who leads Cisco's data center group will be here and thomas has some thoughts about the transformation of networking I. T. Teams. You don't wanna miss what he has to say. You're watching the cube. The global leader in high tech company. Okay, >>mm. Mhm, mm. Okay. Mhm. Yeah. Mhm. Yeah. >>Mhm. Yes. Yeah. Okay. We're here with thomas Shiva who is the Vice president of Product Management, A K A VP of all things data center, networking STN cloud. You name it in that category. Welcome thomas. Good to see you again. >>Hey Sam. Yes. Thanks for having me on. >>Yeah, it's our pleasure. Okay, let's get right into observe ability. When you think about observe ability, visibility, infrastructure monitoring problem resolution across the network. How does cloud change things? In other words, what are the challenges that networking teams are currently facing as they're moving to the cloud and trying to implement hybrid cloud? >>Yeah. Yeah, visibility as always is very, very important. And it's quite frankly, it's not just it's not just the networking team is actually the application team to write. And as you pointed out, the underlying impetus to what's going on here is the data center is where the data is. And I think we set us a couple years back and really what happens the applications are going to be deployed uh in different locations, right. Whether it's in a public cloud, whether it's on prayer, uh, and they are built differently right there, built as microservices, they might actually be distributed as well at the same application. And so what that really means is you need as an operator as well as actually a user better visibility. Where are my pieces and you need to be able to correlate between where the app is and what the underlying network is that is in place in these different locations. So you have actually a good knowledge while the app is running so fantastic or sometimes not. So I think that's that's really the problem statement. What what we're trying to go afterwards, observe ability. >>Okay, and let's double click on that. So a lot of customers tell me that you gotta stare at log files until your eyes bleed and you gotta bring in guys with lab coats who have phds to figure all this stuff out. So, so you just described, it's getting more complex, but at the same time you have to simplify things. So how how are you doing that, >>correct? So what we basically have done is we have this fantastic product that that is called 1000 Ice. And so what this does is basically as the name, which I think is a fantastic fantastic name. You have these sensors everywhere. Um, and you can have a good correlation on uh links between if I run from a site to aside from a site to a cloud, from a cloud to cloud and you basically can measure what is the performance of these links. And so what we're, what we're doing here is we're actually extending the footprint of these thousands agent. Right? Instead of just having uh inversion machine clouds, we are now embedding them with the Cisco network devices. Right? We announced this with the catalyst 9000 and we're extending this now to our 8000 catalyst product line for the for the SD were in products as well as to the data center products the next line. Um and so what you see is is, you know, half a saying, you have 1000 eyes, you get a million insights and you get a billion dollar of improvements uh for how your applications run. And this is really uh, the power of tying together the footprint of where the network is with the visibility, what is going on. So you actually know the application behavior that is attached to this network. >>I see. So okay. So as the cloud evolves and expands it connects your actually enabling 1000 eyes to go further, not just confined within a single data center location, but out to the network across clouds, et cetera, >>correct. Wherever the network is, you're going to have 1000 I sensor and you can't bring this together and you can quite frankly pick if you want to say, hey, I have my application in public cloud provider, a uh, domain one and I have another one domain to, I can't do monitor that link. I can also monitor have a user that has a campus location or branch location. I kind of put an agent there and then I can monitor the connectivity from that branch location all the way to the let's say corporations that data centre, our headquarter or to the cloud. And I can have these probes and just we have visibility and saying, hey, if there's a performance, I know where the issue is and then I obviously can use all the other foods that we have to address those. >>All right, let's talk about the cloud operating model. Everybody tells us it's really the change in the model that drives big numbers in terms of R. O. I. And I want you to maybe address how you're bringing automation and devops to this world of of hybrid and specifically how is Cisco enabling I. T. Organizations to move to a cloud operating model? Is that cloud definition expands? >>Yeah, no that's that's another interesting topic beyond the observe ability. So really, really what we're seeing and this is going on for uh I want to say a couple of years now, it's really this transition from operating infrastructure as a networking team more like a service like what you would expect from a cloud provider. Right? It's really around the network team offering services like a cloud provided us. And that's really what the meaning is of cloud operating model. Right? But this is infrastructure running your own data center where that's linking that infrastructure was whatever runs on the public club is operating and like a cloud service. And so we are on this journey for why? So one of the examples uh then we have removing some of the control software assets, the customers that they can deploy on prayer uh to uh an instance that they can deploy in a cloud provider and just busy, insane. She ate things there and then just run it that way. Right. And so the latest example for this is what we have our identity service engine that is now limited availability available on AWS and will become available in mid this year, both in Italy as unusual as a service. You can just go to market place, you can load it there and now you create, you can start running your policy control in a cloud, managing your access infrastructure in your data center, in your campus wherever you want to do it. And so that's just one example of how we see our customers network operations team taking advantage of a cloud operating model and basically employing their, their tools where they need them and when they need them. >>So what's the scope of, I hope I'm saying it right. Ice, right. I see. I think it's called ice. What's the scope of that like for instance, turn in effect my or even, you know, address simplify my security approach. >>Absolutely. That's now coming to what is the beauty of the product itself? Yes. What you can do is really is that there's a lot of people talking about else. How do I get to zero trust approach to networking? How do I get to a much more dynamic, flexible segmentation in my infrastructure. Again, whether this is only campus X as well as a data center and Ice help today, you can use this as a point to define your policies and then any connect from there. Right. In this particular case we would instant Ice in the cloud as a software load. You now can connect and say, hey, I want to manage and program my network infrastructure and my data center on my campus, going to the respective control over this DNA Center for campus or whether it is the A. C. I. Policy controller. And so yes, what you get as an effect out of this is a very elegant way to automatically manage in one place. What is my policy and then drive the right segmentation in your network infrastructure? >>zero. Trust that, you know, it was pre pandemic. It was kind of a buzzword. Now it's become a mandate. I wonder if we could talk about right. I mean I wonder if you talk about cloud native apps, you got all these developers that are working inside organizations. They're maintaining legacy apps. They're connecting their data to systems in the cloud there, sharing that data. I need these developers, they're rapidly advancing their skill sets. How is Cisco enabling its infrastructure to support this world of cloud? Native making infrastructure more responsive and agile for application developers? >>Yeah. So, you know, we're going to the top of his visibility, we talked about the operating model, how how our network operators actually want to use tools going forward. Now, the next step to this is it's not just the operator. How do they actually, where do they want to put these tools, how they, how they interact with these tools as well as quite frankly as how, let's say, a devops team on application team or Oclock team also wants to take advantage of the program ability of the underlying network. And this is where we're moving into this whole cloud native discussion, right? Which is really two angles, that is the cloud native way, how applications are being built. And then there is the cloud native way, how you interact with infrastructure. Right? And so what we have done is we're a putting in place the on ramps between clouds and then on top of it we're exposing for all these tools, a P I S that can be used in leverage by standard uh cloud tools or uh cloud native tools. Right. And one example or two examples we always have and again, we're on this journey for a while is both answerable uh script capabilities that exist from red hat as well as uh Ashitaka from capabilities that you can orchestrate across infrastructure to drive infrastructure, automation and what what really stands behind it is what either the networking operations team wants to do or even the ap team. They want to be able to describe the application as a code and then drive automatically or programmatically in situation of infrastructure needed for that application. And so what you see us doing is providing all these capability as an interface for all our network tools. Right. Whether it's this ice that I just mentioned, whether this is our D. C. And controllers in the data center, uh whether these are the controllers in the in the campus for all of those, we have cloud native interfaces. So operator or uh devops team can actually interact directly with that infrastructure the way they would do today with everything that lives in the cloud, with everything how they brought the application. >>This is key. You can't even have the conversation of op cloud operating model that includes and comprises on prem without programmable infrastructure. So that's that's very important. Last question, thomas our customers actually using this, they made the announcement today. There are there are there any examples of customers out there doing this? >>We do have a lot of customers out there that are moving down the past and using the D. D. Cisco high performance infrastructure, but also on the compute side as well as on an exercise one of the customers. Uh and this is like an interesting case. It's Rakuten uh record and is a large tackle provider, a mobile five G. Operator uh in Japan and expanding and is in different countries. Uh and so people something oh, cloud, you must be talking about the public cloud provider, the big the big three or four. But if you look at it, there's a lot of the tackle service providers are actually cloud providers as well and expanding very rapidly. And so we're actually very proud to work together with with Rakuten and help them building a high performance uh, data and infrastructure based on hard gig and actually phone a gig uh to drive their deployment to. It's a five G mobile cloud infrastructure, which is which is uh where the whole the whole world where traffic is going. And so it's really exciting to see this development and see the power of automation visibility uh together with the high performance infrastructure becoming reality and delivering actually services, >>you have some great points you're making there. Yes, you have the big four clouds, your enormous, but then you have a lot of actually quite large clouds. Telcos that are either approximate to those clouds or they're in places where those hyper scholars may not have a presence and building out their own infrastructure. So so that's a great case study uh thomas, hey, great having you on. Thanks so much for spending some time with us. >>Yeah, same here. I appreciate it. Thanks a lot. >>I'd like to thank Cisco and our guests today V Joy, Katie VJ, viscous James and thomas for all your insights into this evolving world of hybrid cloud, as we said at the top of the next decade will be defined by an entirely new set of rules. And it's quite possible things will evolve more quickly because the cloud is maturing and has paved the way for a new operating model where everything is delivered as a service, automation has become a mandate because we just can't keep throwing it labor at the problem anymore. And with a I so much more as possible in terms of driving operational efficiencies, simplicity and support of the workloads that are driving the digital transformation that we talk about all the time. This is Dave Volonte and I hope you've enjoyed today's program. Stay Safe, be well and we'll see you next time.