>>Hello everyone and welcome back to Motor City, Michigan. We're live from the Cube and my name is Savannah Peterson. Joined this afternoon with my co-host John Ferer. John, how you doing? Doing >>Great. This next segment's gonna be awesome about application modernization, scaling pluses. This is what's gonna, how are the next generation software revolution? It's gonna be >>Fun. You know, it's kind of been a theme of our day today is scale. And when we think about the complex orchestration platform that is Kubernetes, everyone wants to scale faster, quicker, more efficiently, and our guests are here to tell us all about that. Please welcome to Char and Andy, thank you so much for being here with us. You were on the Red Hat OpenShift team. Yeah. I suspect most of our audience is familiar, but just in case, let's give 'em a quick one-liner pitch so everyone's on the same page. Tell us about OpenShift. >>I, I'll take that one. OpenShift is our ES platform is our ES distribution. You can consume it as a self-managed platform or you can consume it as a managed service on on public clouds. And so we just call it all OpenShift. So it's basically Kubernetes, but you know, with a CNCF ecosystem around it to make things more easier. So maybe there's two >>Lights. So what does being at coupon mean for you? How does it feel to be here? What's your initial takes? >>Exciting. I'm having a fantastic time. I haven't been to coupon since San Diego, so it's great to be back in person and see old friends, make new friends, have hallway conversations. It's, it's great as an engineer trying to work in this ecosystem, just being able to, to be in the same place with these folks. >>And you gotta ask, before we came on camera, you're like, this is like my sixth co con. We were like, we're seven, you know, But that's a lot of co coupons. It >>Is, yes. I mean, so what, >>Yes. >>Take us status >>For sure. Where we are now. Compare and contrast co. Your first co con, just scope it out. What's the magnitude of change? If you had to put a pin on that, because there's a lot of new people coming in, they might not have seen where it's come from and how we got here is maybe not how we're gonna get to the next >>Level. I've seen it grow tremendously since the first one I went to, which I think was Austin several years ago. And what's great is seeing lots of new people interested in contributing and also seeing end users who are trying to figure out the best way to take advantage of this great ecosystem that we have. >>Awesome. And the project management side, you get the keys to the Kingdom with Red Hat OpenShift, which has been successful. Congratulations by the way. Thank you. We watched that grow and really position right on the wave. It's going great. What's the update on on the product? Kind of, you're in a good, good position right now. Yeah, >>No, we we're feeling good about it. It's all about our customers. Obviously the fact that, you know, we have thousands of customers using OpenShift as the cloud native platform, the container platform. We're very excited. The great thing about them is that, I mean you can go to like OpenShift Commons is kind of a user group that we run on the first day, like on Tuesday we ran. I mean you should see the number of just case studies that our customers went through there, you know? And it is fantastic to see that. I mean it's across so many different industries, across so many different use cases, which is very exciting. >>One of the things we've been reporting here in the Qla scene before, but here more important is just that if you take digital transformation to the, to its conclusion, the IT department and developers, they're not a department to serve the business. They are the business. Yes. That means that the developers are deciding things. Yeah. And running the business. Prove their code. Yeah. Okay. If that's, if that takes place, you gonna have scale. And we also said on many cubes, certainly at Red Hat Summit and other ones, the clouds are distributed computer, it's distributed computing. So you guys are focusing on this project, Andy, that you're working on kcp. >>Yes. >>Which is, I won't platform Kubernetes platform for >>Control >>Planes. Control planes. Yes. Take us through, what's the focus on why is that important and why is that relate to the mission of developers being in charge and large scale? >>Sure. So a lot of times when people are interested in developing on Kubernetes and running workloads, they need a cluster of course. And those are not cheap. It takes time, it takes money, it takes resources to get them. And so we're trying to make that faster and easier for, for end users and everybody involved. So with kcp, we've been able to take what looks like one normal Kubernetes and partition it. And so everybody gets a slice of it. You're an administrator in your little slice and you don't have to ask for permission to install new APIs and they don't conflict with anybody else's APIs. So we're really just trying to make it super fast and make it super flexible. So everybody is their own admin. >>So the developer basically looks at it as a resource blob. They can do whatever they want, but it's shared and provisioned. >>Yes. One option. It's like, it's like they have their own cluster, but you don't have to go through the process of actually provisioning a full >>Cluster. And what's the alternative? What's the what's, what's the, what's the benefit and what was the alternative to >>This? So the alternative, you spin up a full cluster, which you know, maybe that's three control plane nodes, you've got multiple workers, you've got a bunch of virtual machines or bare metal, or maybe you take, >>How much time does that take? Just ballpark. >>Anywhere from five minutes to an hour you can use cloud services. Yeah. Gke, E Ks and so on. >>Keep banging away. You're configuring. Yeah. >>Those are faster. Yeah. But it's still like, you still have to wait for that to happen and it costs money to do all of that too. >>Absolutely. And it's complex. Why do something that's been done, if there's a tool that can get you a couple steps down the path, which makes a ton of sense. Something that we think a lot when we're talking about scale. You mentioned earlier, Tohar, when we were chatting before the cams were alive, scale means a lot of different things. Can you dig in there a little bit? >>Yeah, I >>Mean, so when, when >>We talk about scale, >>We are talking about from a user perspective, we are talking about, you know, there are more users, there are more applications, there are more workloads, there are more services being run on Kubernetes now, right? So, and OpenShift. So, so that's one dimension of this scale. The other dimension of the scale is how do you manage all the underlying infrastructure, the clusters, the name spaces, and all the observability data, et cetera. So that's at least two levels of scale. And then obviously there's a third level of scale, which is, you know, there is scale across not just different clouds, but also from cloud to the edge. So there is that dimension of scale. So there are several dimensions of this scale. And the one that again, we are focused on here really is about, you know, this, the first one that I talk about is a user. And when I say user, it could be a developer, it could be an application architect, or it could be an application owner who wants to develop Kubernetes applications for Kubernetes and wants to publish those APIs, if you will, and make it discoverable and then somebody consumes it. So that's the scale we are talking about >>Here. What are some of the enterprise, you guys have a lot of customers, we've talked to you guys before many, many times and other subjects, Red Hat, I mean you guys have all the customers. Yeah. Enterprise, they've been there, done that. And you know, they're, they're savvy. Yeah. But the cloud is a whole nother ballgame. What are they thinking about? What's the psychology of the customer right now? Because now they have a lot of choices. Okay, we get it, we're gonna re-platform refactor apps, we'll keep some legacy on premises for whatever reasons. But cloud pretty much is gonna be the game. What's the mindset right now of the customer base? Where are they in their, in their psych? Not the executive, but more of the the operators or the developers? >>Yeah, so I mean, first of all, different customers are at different levels of maturity, I would say in this. They're all on a journey how I like to describe it. And in this journey, I mean, I see a customers who are really tip of the sphere. You know, they have containerized everything. They're cloud native, you know, they use best of tools, I mean automation, you know, complete automation, you know, quick deployment of applications and all, and life cycle of applications, et cetera. So that, that's kind of one end of this spectrum >>Advanced. Then >>The advances, you know, and, and I, you know, I don't, I don't have any specific numbers here, but I'd say there are quite a few of them. And we see that. And then there is kind of the middle who are, I would say, who are familiar with containers. They know what app modernization, what a cloud application means. They might have tried a few. So they are in the journey. They are kind of, they want to get there. They have some other kind of other issues, organizational or talent and so, so on and so forth. Kinds of issues to get there. And then there are definitely the quota, what I would call the lag arts still. And there's lots of them. But I think, you know, Covid has certainly accelerated a lot of that. I hear that. And there is definitely, you know, more, the psychology is definitely more towards what I would say public cloud. But I think where we are early also in the other trend that I see is kind of okay, public cloud great, right? So people are going there, but then there is the so-called edge also. Yeah. That is for various regions. You, you gotta have a kind of a regional presence, a edge presence. And that's kind of the next kind of thing taking off here. And we can talk more >>About it. Yeah, let's talk about that a little bit because I, as you know, as we know, we're very excited about Edge here at the Cube. Yeah. What types of trends are you seeing? Is that space emerges a little bit more firmly? >>Yeah, so I mean it's, I mean, so we, when we talk about Edge, you're talking about, you could talk about Edge as a, as a retail, I mean locations, right? >>Could be so many things edges everywhere. Everywhere, right? It's all around us. Quite literally. Even on the >>Scale. Exactly. In space too. You could, I mean, in fact you mentioned space. I was, I was going to >>Kinda, it's this world, >>My space actually Kubernetes and OpenShift running in space, believe it or not, you know, So, so that's the edge, right? So we have Industrial Edge, we have Telco Edge, we have a 5g, then we have, you know, automotive edge now and, and, and retail edge and, and more, right? So, and space, you know, So it's very exciting there. So the reason I tag back to that question that you asked earlier is that that's where customers are. So cloud is one thing, but now they gotta also think about how do I, whatever I do in the cloud, how do I bring it to the edge? Because that's where my end users are, my customers are, and my data is, right? So that's the, >>And I think Kubernetes has brought that attention to the laggards. We had the Laed Martin on yesterday, which is an incredible real example of Kubernetes at the edge. It's just incredible story. We covered it also wrote a story about it. So compelling. Cuz it makes it real. Yes. And Kubernetes is real. So then the question is developer productivity, okay, Things are starting to settle in. We've got KCP scaling clusters, things are happening. What about the tool chains? And how do I develop now I got scale of development, more code coming in. I mean, we are speculating that in the future there's so much code in open source that no one has to write code anymore. Yeah. At some point it's like this gluing things together. So the developers need to be productive. How are we gonna scale the developer equation and eliminate the, the complexity of tool chains and environments. Web assembly is super hyped up at this show. I don't know why, but sounds good. No one, no one can tell me why, but I can kind of connect the dots. But this is a big thing. >>Yeah. And it's fitting that you ask about like no code. So we've been working with our friends at Cross Plain and have integrated with kcp the ability to no code, take a whole bunch of configuration and say, I want a database. I want to be a, a provider of databases. I'm in an IT department, there's a bunch of developers, they don't wanna have to write code to create databases. So I can just take, take my configuration and make it available to them. And through some super cool new easy to use tools that we have as a developer, you can just say, please give me a database and you don't have to write any code. I don't have to write any code to maintain that database. I'm actually using community tooling out there to get that spun up. So there's a lot of opportunities out there. So >>That's ease of use check. What about a large enterprise that's got multiple tool chains and you start having security issues. Does that disrupt the tool chain capability? Like there's all those now weird examples emerging, not weird, but like real plumbing challenges. How do you guys see that evolving with Red >>Hat and Yeah, I mean, I mean, talking about that, right? The software, secure software supply chain is a huge concern for everyone after, especially some of the things that have happened in the past few >>Years. Massive team here at the show. Yeah. And just within the community, we're all a little more aware, I think, even than we were before. >>Before. Yeah. Yeah. And, and I think the, so to step back, I mean from, so, so it's not just even about, you know, run time vulnerability scanning, Oh, that's important, but that's not enough, right? So we are talking about, okay, how did that container, or how did that workload get there? What is that workload? What's the prominence of this workload? How did it get created? What is in it? You know, and what, what are, how do I make, make sure that there are no unsafe attack s there. And so that's the software supply chain. And where Red Hat is very heavily invested. And as you know, with re we kind of have roots in secure operating system. And rel one of the reasons why Rel, which is the foundation of everything we do at Red Hat, is because of security. So an OpenShift has always been secure out of the box with things like scc, rollbacks access control, we, which we added very early in the product. >>And now if you kind of bring that forward, you know, now we are talking about the complete software supply chain security. And this is really about right how from the moment the, the, the developer rights code and checks it into a gateway repository from there on, how do you build it? How do you secure it at each step of the process, how do you sign it? And we are investing and contributing to the community with things like cosign and six store, which is six store project. And so that secures the supply chain. And then you can use things like algo cd and then finally we can do it, deploy it onto the cluster itself. And then we have things like acs, which can do vulnerability scanning, which is a container security platform. >>I wanna thank you guys for coming on. I know Savannah's probably got a last question, but my last question is, could you guys each take a minute to answer why has Kubernetes been so successful today? What, what was the magic of Kubernetes that made it successful? Was it because no one forced it? Yes. Was it lightweight? Was it good timing, right place at the right time community? What's the main reason that Kubernetes is enabling all this, all this shift and goodness that's coming together, kind of defacto unifies people, the stacks, almost middleware markets coming around. Again, not to use that term middleware, but it feels like it's just about to explode. Yeah. Why is this so successful? I, >>I think, I mean, the shortest answer that I can give there really is, you know, as you heard the term, I think Satya Nala from Microsoft has used it. I don't know if he was the original person who pointed, but every company wants to be a software company or is a software company now. And that means that they want to develop stuff fast. They want to develop stuff at scale and develop at, in a cloud native way, right? You know, with the cloud. So that's, and, and Kubernetes came at the right time to address the cloud problem, especially across not just one public cloud or two public clouds, but across a whole bunch of public clouds and infrastructure as, and what we call the hybrid clouds. I think the ES is really exploded because of hybrid cloud, the need for hybrid cloud. >>And what's your take on the, the magic Kubernetes? What made it, what's making it so successful? >>I would agree also that it came about at the right time, but I would add that it has great extensibility and as developers we take it advantage of that every single day. And I think that the, the patterns that we use for developing are very consistent. And I think that consistency that came with Kubernetes, just, you have so many people who are familiar with it and so they can follow the same patterns, implement things similarly, and it's just a good fit for the way that we want to get our software out there and have, and have things operate. >>Keep it simple, stupid almost is that acronym, but the consistency and the de facto alignment Yes. Behind it just created a community. So, so then the question is, are the developers now setting the standards? That seems like that's the new way, right? I mean, >>I'd like to think so. >>So I mean hybrid, you, you're touching everything at scale and you also have mini shift as well, right? Which is taking a super macro micro shift. You ma micro shift. Oh yeah, yeah, exactly. It is a micro shift. That is, that is fantastic. There isn't a base you don't cover. You've spoken a lot about community and both of you have, and serving the community as well as your engagement with them from a, I mean, it's given that you're both leaders stepping back, how, how Community First is Red Hat and OpenShift as an organization when it comes to building the next products and, and developing. >>I'll take and, and I'm sure Andy is actually the community, so I'm sure he'll want to a lot of it. But I mean, right from the start, we have roots in open source. I'll keep it, you know, and, and, and certainly with es we were one of the original contributors to Kubernetes other than Google. So in some ways we think about as co-creators of es, they love that. And then, yeah, then we have added a lot of things in conjunction with the, I I talk about like SCC for Secure, which has become part security right now, which the community, we added things like our back and other what we thought were enterprise features needed because we actually wanted to build a product out of it and sell it to customers where our customers are enterprises. So we have worked with the community. Sometimes we have been ahead of the community and we have convinced the community. Sometimes the community has been ahead of us for other reasons. So it's been a great collaboration, which is I think the right thing to do. But Andy, as I said, >>Is the community well set too? Are well said. >>Yes, I agree with all of that. I spend most of my days thinking about how to interact with the community and engage with them. So the work that we're doing on kcp, we want it to be a community project and we want to involve as many people as we can. So it is a heavy focus for me and my team. And yeah, we we do >>It all the time. How's it going? How's the project going? You feel good >>About it? I do. It is, it started as an experiment or set of prototypes and has grown leaps and bounds from it's roots and it's, it's fantastic. Yeah. >>Controlled planes are hot data planes control planes. >>I >>Know, I love it. Making things work together horizontally scalable. Yeah. Sounds like cloud cloud native. >>Yeah. I mean, just to add to it, there are a couple of talks that on KCP at Con that our colleagues s Stephan Schemanski has, and I, I, I would urge people who have listening, if they have, just Google it, if you will, and you'll get them. And those are really awesome talks to get more about >>It. Oh yeah, no, and you can tell on GitHub that KCP really is a community project and how many people are participating. It's always fun to watch the action live to. Sure. Andy, thank you so much for being here with us, John. Wonderful questions this afternoon. And thank all of you for tuning in and listening to us here on the Cube Live from Detroit. I'm Savannah Peterson. Look forward to seeing you again very soon.

>>Welcome back everyone to the cubes, live coverage here at VMware Explorer, 22. We're here on the ground on the floor of Mosco. I'm John for David ante. We're at kit Goldberg, CTO of VMware, the star of the show, the headliner@supercloud.world. The event we had just a few weeks ago, kit. Great to see you super excited to, to chat with you. Thanks for coming on. Oh >>Yeah. Happy to be here, man. It's been a wild week. Tons of excitement. We are jazzed. We're jacked, like to look at things >>For both, of course, jacked up and jazzed. Ready to go. So you got UN stage loved your keynote, you know, very CTO oriented, hit the, all your marks cloud native, the vSphere eight intro. Yep. More performance, more power. Yeah, more efficiency. And now the cloud native over the top, you shipped a white paper a few weeks ago, which we discussed at our super cloud event. Yep. You know, really laying out the narrative of cloud native. This is the priority for you. Is that true? Is that your only priority? What are the things going on right now for you that are your top priorities, >>Top priorities. So absolutely at a high level, it's flushing out this vision that, that we're talking about in terms of what we call cross cloud services. Other people call multi-cloud, you guys have super cloud, but the point is, I think what we see is that there's these different sort of vertical silos, the different public clouds they're on-prem data center edge. And what we're looking at is trying to create a new type of cloud something that's more horizontal in architecture. And I think this is something that we realize we've been doing at VMware for a while, and we gave it a name, we call it cross cloud. But what's important is that while we do bring a lot of value there, we can't possibly do everything. This has to be an industrywide movement. And so I think what we're really excited about is figuring out, okay, how do we actually build an architecture and a framework such that there's clear sort of lines of responsibility. Here's what one company does. Here's what another one does make sure that there's clean sort of APIs between that basically an overall architecture and structure. So that's probably one of the, the high level things that we're doing as an organization right now. >>What's been the feedback here at VMware Explorer, obviously the new name, Explorer rag laid that out in the keynote. Yep. It's about moving forward. Not replacing the community. Yep. Extending the world core and exploring new frontiers multicloud. Obviously one of them key. Yeah. Very clever actually names dig into it. It's nuanced. What's been the reaction. Yep. You're right. Yep. You're crazy. I love it. I need it. It's it's too early. It's perfect timing. No, it's a bit of, what's the feedback always a little >>Bit of everything, you know, I think one of us firstno people didn't really understand it. I think people were confused about what it was, but now that we're here in person, I think generally speaking, I'm hearing a lot of positive things about it. We've been gone or been apart for three years now, right? Since the last in person one, and this is an interesting opportunity for recreation sort of rebirth, right? We've certainly lost some traditions during the COVID pandemic, but also gives us the opportunity to build new ones. And to your point, world was always associated with virtualization. And of course, we're still doing that. We're still doing cloud infrastructure, but we're doing so much more. And given this focus on multi-cloud that I just mentioned and how it is the go forward focus for VMware, we wanted to evolve the conference to have that focus. And so I've been actually really pleased to see how many folks for it's their first time here. Right? They haven't been Tom worlds before and you know, this broader sort of conference that we're creating to, to apply to the support, more disciplines, different focus areas, you know, application development, developers, platform teams, you got cloud management things with aria, public cloud management, networking security, and user computing, all in addition to the core infrastructure bits. >>So John all week's been paying homage to, to Andy Grove talking about, let chaos rain and then rain in the chaos. Right. And so when you talk to customers, that chaos message cloud chaos, how is it resonating? Are they aware of that chaos? Are they saying, yes, we have cloud chaos or some saying, eh, yeah. It's okay. Everything's good. And they just maybe have some blind spots. What do >>You think? Yeah. I'm actually surprised at how strongly it's resonating. I mean, I think we knew that we were onto something, but people even love the specific term. They're like cloud chaos. I never thought about it that way, but you're like, you're absolutely right. It was a movie. It's a great, yeah. I know. Sounds like a thriller, but, but what we sort of, the picture we paint there about these silos across clouds, the duplication of technologies, duplication of teams and training, all this stuff. People realize that's where they're at. And it's one of those things where there's this headlong rush to cloud for good reasons. People wanted to be in the agility, but now they're dealing with some of that complexity that, that gets built up there and it absolutely is chaos. And while speed is great, you need to somehow balance that speed with control things like security compliance. These are sort of enterprise requirements that are sort of getting left out. And I think that's the realization, that's the sort of chaos that we're hitting on. >>It's almost like when in bus, in business school, you had the economic lines when break even hits, you know, cloud had a lot of great goodness to it. Yep. A lot of great value. It still does on the CapEx side, but as distributed computing architectures become reality. Yep. Private cloud instantiation of hybrid cloud operations. Now you've got edge and opening up all these new, new net new applications. Yep. What are you seeing there? And it's a question we've been asked some of the folks in the partner network, what are some of those new next gen apps that are gonna be enabled by, by this next wave edge specifically? Yeah. More performance, more application development, more software. Yeah. More faster, cheaper going on here. Kind of a Moore's law vibe there. What's next. >>Yeah. So, you know, when we look at edge, so, okay. Take today. Today. Edge is oftentimes highly customized software and hardware. It's not general purpose or to cloud technologies. And while edge is certainly gonna be limited. You can't just infinitely scale. Like you can in the cloud and the network bandwidth might be a little bit limited. You still wanna imagine it or manage it as if it were another cloud location, right. That like, I wanna be able to address it. Just like I addressed a certain availabilities done within AWS. I wanna be able to say the specific edge location at, you know, wherever somewhere here in San Francisco, let's say right now there's a few different things though. The first of which is that you got to manage at scale. Cause you don't have with cloud, you got a small number of very large locations with edge. >>You got a large number of very small locations. And so it's the scale is inverted there. So what this means is that you probably can't exactly specify which edge you want to go to. What instead you wanna say is more relational. Like I've got an IOT device out there. I want my app to be in data to be near it. And the system needs to figure out, okay, where do I put that thing? And how do I get it near it? And there may be some different constraints. You have cost security, privacy, it may be your edge or maybe telco edge location, you know, one, one of these sorts of things. Right? And so I think where we're going there is to enable the movement of applications and data to the right place. And this again goes back to the whole cross cloud architecture, right? >>You don't wanna be limited in terms of where you put an app, you wanna have that flexibility. This is the whole, you know, we use the term cloud smart. Right. And that's what it means. It's like put the, the app where it needs to be sort of the right tool for the right job. And so I think the innovation though, it's gonna be huge. You're gonna see new application architectures that the app can be placed near a user near a device near like a, an iPhone or near an IOT device, like a video camera. And the way that you manage that is gonna be much kind of infrastructure is code base. Yeah. So I think there's huge possibilities there. And it's really amazing to see just real quick on the telco side, what's happening there as well. The move to 5g, the move to open ran telco is now starting to adopt these data center and cloud technologies kinda standard building blocks that we use now out at the edge. So I think, you know, the amount of innovation that we're gonna see, >>It's really the first time on telco, they actually have a viable, scalable opportunity to, to put real gear data center, liked capabilities yep. At a location for specific purpose. Yeah. The edge function. >>Yeah. And well, and what we, without >>Building a, a monster >>Facility. Exactly. Yeah. It's like the base of a cell tower or something telephone closet. But what we've been able to do is improve these general purpose technologies. Like you look at vSphere in our hypervisor today. We are great at real time workloads, right? Like as a matter of fact, you look at performance on vSphere versus bare metal. Oftentimes an app runs faster on vSphere now because of all the efficiency and scale and so forth we can bring. So it means that these telecom applications that are very latency sensitive can now run fun on there. But Hey, guess what? Once you have a general purpose server that can run some of the telecom apps, well, Hey, you got extra space to run other apps. Maybe you could sell that space to customers or partners. And you know, then you have this new architecture >>Is the dev skill, a, a barrier for the, for the telcos, where are we at >>With that? It, it, it is. I think the barriers are really, how do you provide, I dunno if it's a skill set. I mean, there's probably some skill set aspects. I think in my mind, it's more about giving them the APIs to get access to that. Like, as I said, you're not gonna have developers knowing, okay, here are the specific geographic locations of all the cell towers in San Francisco and set what you're gonna say again, I need to be near this thing. And so you used geolocation and figure out, just put it some, put it in the right place. I don't really care. Right. So again, I think it's an evolution of management evolution of the APIs that developers use to access. Like today, I'm gonna say, okay, I know my app needs to be on the east coast so I can use us east one. I know the specific AZs at a, at a cloud level. That makes sense at an edge level. It doesn't, you're not gonna know. Okay. Like the specific cross streets or whatever, you gotta let the system figure that >>Out kid. I know you gotta go on. Times's tight, real quick. You got a session here on web three. Yeah. The Cube's got the, you know, the cube versus coming soon. We might be heavy. The cube versus coming powered by arm token, we had all kinds of stuff going on. Yep. You saw the preview a couple years ago. We did with the Cuban. Anyway, you did a session on web three and DM. VMware's rolling real quick. What was that about? Yeah, what's the purpose? >>What's the direction. That was a fascinating conversation. So I was talking about web three. It was talking about why enterprises haven't really started even to scratch the surface of the potential of web three. So part of it was like, okay, what is web three? It's a buzz words. We talked through that. We talked through the use of blockchain, how that sits with the core of a lot of web three. We talked about the use of cryptocurrency and how that makes sense. We talked about the consumerization, continuing consumerization of it. We've seen it with end user devices. We may well see it with some of the web three changes around ownership, individual ownership of data, of assets, et cetera. That's gonna have a downstream impact on enterprises, how they go to market their commercial models. So it was a fascinating discussion that unfortunately it's hard to summarize, but gotten to a lot of the nuances of this and some of the, are >>You bullish on >>It? Very bullish, a hundred percent. Like I think blockchain is a hugely enabling technology and not from a cryptocurrency standpoint, put that aside. All the enterprise use cases, we have customers like broad bridge financial today leveraging VMware blockchain, doing a hundred billion in transactions a day with the sort of repo market >>You think defi is booming >>Defi. So I, I think we're just starting to get there. But what you find is oftentimes these trends start on the consumer side and then all of a sudden they surprise enterprises. >>They call it a tri tried tread five traditional fi finance >>Versus okay. >>Any >>Other way around? No, no, no. But I'm saying is that it's, these consumer trends will start to impact enterprises. But what I'm saying is that enterprises need to be ready now or start preparing now for those comings. >>And what's the preparation for that? Just education learning. Yeah. >>Education learning, looking at blockchain, use cases, looking at what will this enable consumers to do that they couldn't do before there is gonna be a democratization of access to data. You're still gonna wanna have gatekeepers. You're still gonna wanna have enterprises or services that add value on top of that, but it's gonna be a bit more of an open ecosystem now, and that's gonna change some of the market dynamics in subtle ways. >>Okay. So we got one minute left. I want to ask you, what's your impression of the super cloud event we had also, you were headlining and you guys were a big part of bringing the, a large C of great people together. Are you happy with the outcome? What do you think's next for? >>Absolutely. No. I was super excited to see how much reception and engagement it got from across the industry. Right? So many different entry participants, so many different customers, partners, et cetera, viewing it online have had a lot of conversations here at explore already. As you know, you know, VMware, we put out a white paper, our point of view on what is a multi-cloud service. What is the taxonomy of those services? Again, as I mentioned before, we need to get as an industry to a place where we have alignment about this overall architecture to enable interoperability. And I think that's really the key thing. If we're gonna make this industry architectural shift, which is what I see coming, this is what we got. >>And you're gonna be jumping all in with this and helping out if we need you >>Hundred percent. All right. >>All in. I really love your transparency on the, on your white paper. Check out the white paper online on vmware.com. It's the cross cloud cloud native. I, I call the, the mission statement. It's not a Jerry McGuire memo. It's more me than that. It's the, it's the direction of cloud native. Yep. And multi-cloud thanks for coming on and, and thanks for doing that too. >>No, of course. And thanks for having me. Thanks. Love the discussion. >>Okay. More live coverage here at world Explorer, VMware Explorer, after the short break.

>> We're back at the Seaport in Boston. Dave Vellante and Paul Gill. You're watching The Cubes coverage of Red Hat Summit, 2022. A little different this year, a smaller venue. Maybe a thousand people. Love the keynotes, compressed. Big virtual audience. So we're happy to be coming to you live, face to face. It's been a while since we've had these, for a lot of folks, this is their first in person event. You know, it's kind of weird getting used to that, but I think in the next few months, it's going to become the new, sort of quasi abnormal. Francis Chow is here. He's the Vice President and GM of In-Vehicle OS and Edge at Red Hat. Francis, welcome. That's the most interesting title we've had all week. So thanks for coming here. >> Thank you, Dave. Thank you, Paul, for having me here. >> So The Edge, I mean The Edge is, we heard about the International Space Station. We heard about ski boots, of course In-Vehicle. What's the Edge to you? >> Well, to me Edge actually could mean many different things, right? The way we look at Edge is, there is the traditional enterprise Edge, where this is the second tier, third tier data centers that this extension from your core, the network and your centralized data center, right to remote locations. And then there are like Telco Edge, right? where we know about the 5G network, right Where you deploy bay stations and which would have a different size of requirements right. Of traditional enterprise edge networks. And then there are Operational Edge where we see the line of business operating on those locations, right? Things like manufacturing for oil rigs, retail store, right? So very wide variety of Edge that are doing OT type of technology, and then last but not least there is the customer on or kind of device edge where we now putting things into things like cars, as you said, like ski booth, and have that interaction with the end consumers. >> Is this why? I mean, there's a lot of excitement at Red. I could tell among the Red hat people about this GM deal here is this why that's so exciting to them? This really encompasses sort of all of those variants of the edge in automotive, in automobile experience. Doesn't it? >> I think why this is exciting to the industry and also to us is that if you look at traditionally how automotive has designed, right the way the architect vehicle today has many subsystems, they are all purpose viewed, very tight cut, coupled with hardware and software. And it's very difficult to reuse, right? So their cause of development is high. The time to develop is long and adding to that there is a lengthy safety certification process which also kind of make it hard. Because every time you make a change in the system you have to re-certify it again. >> Right. >> And typically it takes about six to 12 months to do so. Every time you make a change. So very lengthy passes, which is important because we want to ensure occupants are safe in a vehicle. Now what we bring to the table, which I think is super exciting is we bring this platform approach. Now you can use a consistent platform that is open and you can actually now run multiple doming applications on the same platform which means automakers can reuse components across model years and brands. That will lower the development cost. Now I think one of the key things that we bring to the table is that we introduce a new safety certification approach called Continuous Safety Certification. We actually announced that in our summit last year with the intent, "Hey, we're going to deliver this functional certified Linux platform" Which is the first four Linux. And the way we do it is we work with our partner Excedr to try to define that approach. And at the high level the idea really is to automate that certification process just like how we automate software development. Right, we are adding that monitoring capabilities with functional safety related artifacts in our CI three pipeline. And we are able to aim to cut back that kind of certification time to a fraction of what is needed today. So what we can do, I think with this collaboration with GM, is help them get faster time to market, and then lower development costs. Now, adding to that, if you think about a modern Linux platform, you can update it over the air, right? This is the capability that we are working with GM as well. Now what customers can expect now, right for future vehicle is there will be updates on apps and services, just like your cell phone, right. Which makes your car more capable over time and more relevant for the long term. >> So there's some assumptions you're making at the edge. First of all, you described a spectrum retail store which you know, to me, okay, it's Edge, but you can take an X-86 box or a hyper converged infrastructure throw it in there. And there's some opportunities to do some stuff in real time, but it's kind of an extension natural extension of IT. Whereas in vehicle you got to make some assumptions spotty connectivity to do software download and you can't do truck rolls at the far edge, right? None of that is okay, and so there's some assumptions there and as you say, your role is to compress the time to market, but also deliver a better consumer >> Absolutely. >> Experience, so what can we expect? You started to talk about the future of in vehicle, you know, or EVs, if you will, what should we expect as consumers? You, you're saying over the year software we're seeing that with some of the EV makers, for sure. But what's the future look like? >> I think what consumers can expect is really over a period of time, right? A similar experience, like what you have with your mobile mobile device, right? If you look back 15, 20 years, right? You buy a phone, right? That's the feature that you have with your phone, right? No update, it is what it is right, for the lifetime of the product which is pretty much what you have now, if you buy a vehicle, right. You have those features capabilities and you allow it for the lifetime of the vehicle. >> Sometimes you have to drive in for a maintenance, a service to get a software update. >> We can talk about that too right. But as we make the systems, update-able right you can now expect more frequent and seamless update of both the operating system and the application services that sit on top of that. Right, so I think right in the future consumers can expect more capable vehicles after you purchase it because new developmental software can now be done with an update over the air. >> I assume this relationship with GM is not exclusive. Are you talking with other automakers as well? >> We are talking to auto makers, other auto makers. What we working with GM is really a product that could work for the industry, right? This is actually what we both believe in is the right thing to do right? As we are able to standardize how we approach the infrastructure. I think this is a good thing for the whole industry to help accelerate innovation for the entire industry. >> Well which is sort of natural next question. Are we heading toward an open automotive platform? Like we have an open banking platform in that industry. Do you see the possibility that there could be a single platform that all or most of the auto makers will work on? >> I wouldn't use the word single, but I definitely would use the word open. Right? Our goal is to build this open platform, right. Because we believe in open source, right. We believe in community, right. If we make it open, we have more contributors to come in and help to make the system better in a way faster. And actually like you said, right. Improve the quality, right, better. Right, so that the chance of recall is now lower with, with this approach. >> You're using validated patterns as part of this initiative. Is that right? And what is a validated pattern? How is it different from a reference architecture? Is it just kind of a new name for reference architecture? or what value does it bring to the relation? >> For automotive right, we don't have a validated pattern yet but they can broadly kind of speak about what that is. >> Yeah. >> And how we see that evolve over time. So validated pattern basically is a combination of Red Hat products, multiple Red Hat products and partner products. And we usually build it for specific use case. And then we put those components together run rigorous tests to validate it that's it going to work, so that it becomes more repeatable and deployable for those particular edge use cases. Now we do work with our partners to make it happen, right. Because in the end, right we want to make a solution that is about 80% of the way and allow our partners to kind of add more value and their secret sauce on top and deploy it. Right, and I'll give you kind of one example, right You just have the interview with the Veterans Affairs team, right. One of our patents, right? The Medical Diagnosis Pattern, right. Actually we work with them in the early development stage of that. Right, what it does is to help make assessments on pneumonia with chest X rates, right. So it's a fully automated data pipeline. We get the chest x-ray from an object store use AIML to diagnose whether there's new pneumonia. And then I'll put that in a dashboard automated with the validated pattern. >> So you're not using them today, but can we expect that in the future? It sounds like >> Yes absolutely it's in the works, yes. >> It would be a perfect vertical. >> How do you believe your work with GM? I mean, has implications across Red hat? It seems like there are things you're going to be doing with GM that could affect other parts of your own product portfolio. >> Oh, absolutely. I think this actually is, it's a pivotal moment for Red Hat and the automotive industry. And I think broadly speaking for any safety conscious industry, right. As we create this Proof-point right that we can build a Linux system that is optimized for footprint performance, realtime capabilities, and be able to certify it for safety. Right I think all the adjacent industry, right. You think about transportation, healthcare, right. Industry that have tight safety requirements. It's just opened up the aperture for us to adjust those markets in the future. >> So we talked about a lot about the consumerization of IT over the last decade. Many of us feel as though that what's going on at the Edge, the innovations that are going on at the Edge realtime AI inferencing, you know, streaming data ARM, the innovations that ARM and others are performing certainly in video until we heard today, this notion of, you know, no touch, zero touch provisioning that a lot of these innovations are actually going to find their way into the enterprise. Kind of a follow on fault of what you were just talking about. And there's probably some future disruptions coming. You can almost guarantee that, I mean, 15 years or so we get that kind of disruption. How are you thinking about that? >> Well, I think you company, right. Some of the Edge innovation, right. You're going to kind of bring back to enterprise over time. Right but the one thing that you talk about zero touch provisioning right. Is critical right? You think about edge deployments. You're going to have to deal with a very diverse set of environments on how deployments are happen. Right think about like tail code based stations, right. You have somewhere between 75,000 to 100,000 base stations in the US for each provider right. How do you deploy it? Right, if you let's say you push one update or you want the provision system. So what we bring to the table in the latest open shift release is that, hey we make provisioning zero touch right, meaning you can actually do that without any menu intervention. >> Yeah, so I think the Edge is going to raise the bar for the enterprise, I guess is my premise there. >> Absolutely. >> So Francis, thanks so much for coming on The Cube. It's great to see you and congratulations on the collaboration. It's a exciting area for you guys. >> Thank you again, Dave and Paul. >> Our pleasure, all right keep it right there. After this quick break, we'll be back. Paul Gill and Dave Vellante you're watching The Cubes coverage Red Hat Summit 2022 live from the Boston Seaport. Be right back.

(upbeat music) >> Okay, I'm back. I'm John Furrier with theCube. We're here in the middle of the action at Mobile World Congress at Cloud City is where the action is. Danielle Royston and Telco DR. Digital disruption here happening. This next interview I did with Casey Choi, the Executive Vice President at Samsung. I did this remotely. He couldn't be here in person. We wanted to bring him in for a conversation. I had a chance to record this with him. He talks about the intelligent Human Edge or Industry 4.0. It was about Edge computing, Samsung as a leader. Obviously we know what they do. They're part of this IOT revolution, Casey Choi, brilliant executive I really enjoyed my conversation. Take a listen. (upbeat music) Welcome to theCube's coverage of Mobile World Congress, 2021. I'm John Furrier host of theCube. We're here with Cube alumni, Casey Choi's Executive Vice President and GM of the Global Mobile B2B Team, Communications Team at Samsung. Casey, great to see you. Thank you for coming off for the special Remote Mobile World Congress. We're here in person, but also hybrid event. We got a lot of remote interviews. Thank you for taking the time to speak with me. >> John. Great to see you. Great as always to be with you and great to be at least here, virtually with the team and in Barcelona from WC. >> You know, in Samsung, we think about the edge. You are leading a team that's driving this innovation. We've talked in the past about Industry 4.0, but the innovation at the intelligent edge, human edge is a big part of it, with 5G. It's just another G, but it's not just another G you got to have a backbone. You got to have a back haul. You got to have an interconnection. You have commercial, not just consumer technology. So the edge is becoming both this human and device commercial environment. So the industry is quickly moving to this. You call it the 4.0 trend. What do you see happening? This is a clear change over the Telco is not what it used to be. Change is coming fast. A lot of disruption, what's your view? >> Yeah, I think we see a number of things done. And certainly from our perspective, which is, I think we've got somewhat of a unique view on this because of our huge focus really in consumer use and attitudes. And certainly it's been informed by what we've seen, what we've all collectively seen over the last year and a half or so, and are still seeing today. And I think one of the things that we're certainly experiencing is I think the edge is it's expanding further out. I think it's also getting more tightly coupled in many respects to the human factor. And it's not just a set of billions of discrete sensors anymore. And I think the evolution of our thinking around this has changed quite a bit from the IOT Version One variant of this. We put more of what I would call billions of these things, communicating all kinds of information, either to the cloud or the data centers and doing it in a very voluminous way. And what we're saying is with the advent of more the human to machine interface, and certainly the capabilities that we're saying both on the network and the device side, it's really redefining how we're thinking about edge. And certainly here at Samsung and with some of our partners, and we're starting to call this more of the intelligent human edge, where the human factor really begins to play a big role in how we're defining the Internet Of Things. And those things include really people. And this is how we're looking at it. >> I love the theme, the human edge, I think that's very relevant. I want to get a human aspect of here tied into the industry side, because as we emerge from the pandemic and move to a broader economic recovery, you see the psychology of the industry where cloud is one of the shining examples of what the pandemic highlighted cloud speed, cloud agility. And now you're seeing with openness in the Teleco industry, that cloud is coming in, open cloud interoperability. So coming out of the pandemic, cloud is the theme is driving an economic recovery, which is driving the psychology of we're back to real life, we're back to business, but it's not business as usual. The fashion is changing. The attitudes are changing. You mentioned that, and now the disruption of how cloud will be implemented. And it seems to be Telco is where these edge and cloud are just completely radically changing, what was once a kind of a slow moving Telco space. So how do you see the partnerships and coming out of the pandemic, some of the response of cloud impact, cloud technology, public cloud impact on this new Telcom? >> Yeah. Let me try to unpack that a little bit. I think we see two dimensions on this, certainly on the carrier side, the operator's side of the equation, we're certainly partnered with everybody across the globe on that. Certainly there's been a definitive impact around software defined everything, right? So, and this has been accelerated really by the standards that have started to develop around 5G. And even now there's a lot of discussion and I'm sure there'll be a lot of it around WMC about 6G and what is happening there. But I think with the advent of things like O-RAN for example, and some of the activity that we're seeing really around NEC type solutions and opportunities, the traditional role of the carrier and the operator is evolving and has to evolve, right? It is now much more aligned with the provision of these types of services that are very different from the type of data or voice services that we've seen in the past. So certainly we're seeing that transition. The second big transition is really around the notion of hybridity. Now we've been talking about this now in the industry for a while, but I think it's really starting to take firm root the idea of not only multiple clouds, but clouds that are deployed either on prem or certainly, available as a service in its various forms. So I think that combination along with the advances that we're seeing in the technology, and this was both on the connectivity side. So certainly around the ultra reliable, low latency communications, what we're seeing with things like slicing, for example, starting to take root as well as frankly, the devices themselves are getting that much more powerful and compact. This is what we're saying with SOC technologies is what we're seeing with the functions being moved more and more to on device capability. So I think about hybrid, I mean, in my past to think about it more as a small data center. How do you compact it, move it out to somewhere else. Now we're thinking about it more in terms of the type of processing capability that you can put really in the hands of the human or hands of the device. And at that point, you really start to get different use cases, start to emerge from that. So this is how we're thinking about this extension and what I'm talking about more as, an expansion on the edge, further out. >> I love is it splicing or slicing, what's the term? Slicing is the technology? >> Slicing, network slicing. >> Slicing, not splicing cable. >> Yeah. >> Slicing. >> Not splicing cable, no. >> Okay so this come up a lot, so splicing kind of points to this end to end, workflows. You look at some of the modern development, the frameworks of successful, you're seeing these multifunctional teams kind of having an end to end visibility into the modern application workflow from CIC pipeline, whatever. Now, if you take the concept of O-RAN you mentioned Open Radio Access Networks, this kind of brings up this idea of interoperability, because if you're going to have end to end and you add edge to it, you have to have the ability to watch something go end to end, but it's never been like that in the past because you had to traverse multiple networks. So this becomes kind of this hybrid a little bit deeper. Can you share how you see that and how Samsung's working with folks and how you guys are addressing this because you can be at the edge, but ultimately you've got to integrate. So you've got openness, you've got the idea of interoperability issues, and you ultimately have to move around and work with other networks, other clouds and other systems. This is not, it's not always like that. So can you share how this is evolving and how real this is and what is your view on it. >> Yeah, our thinking on this. I mean, let me start by maybe tackling this in a little bit of a different angle. One of the things that we see as one of the barriers around interoperability has really been more on the application side of the equation. And this is actually the third component in making all of this work. And let me just be very clear in what I'm saying here, I think in terms of mobile architectures and really Edge architectures, it has been one of the last bastions, if you will of closed architectures, there've been very much what I would call purpose-built architectures at the edge. Certainly that's been driven by things like the industrial side coming together with more of the commercial side of the equation, but we think it's time really to extend the interoperability of what we are seeing really on the IT side of the equation and really driven by cloud native. This was really in the area of containers. It's in the area of microservices, it's in the area of cloud native development. And if we're really talking about this, we really need to extend that interoperability from the application point of view on the data point of view, really to the end point. And this is where some of the work that we're doing, and we really embarked on in earnest last year with Red Hat and IBM, and with VMware for example, in really opening up that edge architecture to really the open source community, as well as really to the microservices architectures that we have now seen propagate down from the cloud into hybrid architecture. So this has been really one of the key focus areas for us. The network interoperability has really been driven by the standards that we've seen and that have been really adopted by the industry. And when it comes to, for example 5G standards. what we've been more focused on quite honestly, is the interoperability on the application and data side. And we think that by extending, if you will, that write once run many type concepts down into the edge and into the device, that this is going to open up really a wealth of opportunity for us on the application and on the data side. >> That's awesome, I love the openness, love the innovation you guys are doing. I think that's where the action is and that's where the growth is going to be. I do have to ask you how you see edge computing in the IOT era in terms of security. Are we more vulnerable because of it now? And how are you guys addressing the issue of security and data privacy at the edge? What's your opinion on that? What's Samsung doing? >> I mean, we just have to look at the news today, it's obvious that we are more vulnerable, right? There's no doubt that points of vulnerability are being exposed and they're probably being exposed in now industrial areas, right? Certainly with what we've seen, just even recently with some of the attacks that, that have occurred. So a couple of things there, number one, we are relying very heavily on our long history around establishing root of trust in kind of zero trust environments. We've had our Knox platform as an example, we just celebrated, in fact, our 10th year of the product. In fact, it was announced at MWC back about 10 years ago. So this is something that, that we're celebrating, it's an anniversary. Our belief on this is that we really need to ensure that we maintain a hardware-based route across when it comes to the edge. We can't only rely upon software protection at that layer. We can't naturally rely upon some of the network protections that are there. So, we've shipped about 3 billion devices with our Knox Security Suite over the last 10 years. And this is something that we're relying very heavily on. Not only for again, that hardware based root of process. So one of the key solutions, there's our Knox Vault product, which we just released a few months back. This is really a safe within a safe concept, really ensuring that the biometric password and other user data is protected. It's really what drives some of our strategy around making sure that we rely upon something that protects all of the back doors that are resident, not only at the software layer, but at the hardware layer as well. And then management is the other key piece of this, security without the ability of managing these thousands to millions of devices is really somewhat compromised. So we've extended a lot of our Knox management capability at our device level really to address some of those particular attributes, as well as these fleets become more prominent. And they start to take on workloads that are more critical to IOT type workloads. >> Casey, great to have you on. Your insight's awesome. Love what you're doing at Samsung. And again, you're a leader, you've been there, you've seen those cycles of innovation. I have to ask you my final question for you is a personal one and a professional one. The last Mobile World Congress was 2019. In person, last year was canceled a lot's happened in the industry since 20 something months ago. Now we're going to be in person, a lot of hybrid still remotely, but there'll be people in person. The world's changed. What is the big change in the Telco, Telco Cloud, Telco Edge, what's happened in these 20 plus months since the last Mobile World Congress that people should pay attention to? What's the most important thing in your mind? >> Most important? Thank God John. You're putting me on the spot here, right? I think it's wisdom to be quite honest with you. I mean, we've certainly all collectively learned a lot in terms of user patterns and what people need and want. And I hope to think that collective wisdom is going to be a key part of how we drive this going forward. And then if I can just pick one more, I would say re-invention, I think what we're starting to see is that coming out of, again from 2019 to what we're seeing now, we do see this opportunity reinventing and rethinking. And I think that's the difference. And the pace of that is going to really dictate how we look at this and how we collectively solve these challenges. So I hope to think we're wiser and that we're more imaginative coming out of this. And again after being in this industry for 30 years, we've not seen the types of things that we've seen over the last couple. So I hope to think that this is a pivot point for all of us. >> Well, Samsung is certainly a leader in many areas and great to see you on theCube here and the theme in your talks around intelligence, human edge innovation, open. This is a force that's happening. And I think the big change, as you said, the wisdom combined with a reinvention is happening and it's going to be very interesting ride, should be fun to work on. >> It will be John and I thank you for our friendship and our relationship over the years. It's always great to see you and to be with you. And again, we're very optimistic as we always have, coming out of this And again, thanks for the time and have a great MWC. >> You too, Casey Choi, Executive Vice President General Manager of the Global Mobile Business to Business Unit Commercial Unit at Samsung. This is theCube's coverage of Mobile World Congress. I'm John Furrier. Thanks for watching. Okay. We're back here. That was Casey Choi. Talk about wisdom, collective wisdom coming out of the pandemic. Great friend of theCube, great friend of the industry doing great work there. Casey Choi. Like we are doing here on the ground at Mobile World Congress in Cloud City, as well as Adam and the team in the studio. So back to you, Adam and team.

(upbeat music) >> Okay, welcome back to "theCUBE" stage here in cloud city, TelcoDr, Telco digital revolution. We had a chance to talk to Rob Haberman, CTO of Nokia software. Great interview as part of our hybrid program here, but we're still on the floor onsite. Let's go listen to my great interview with Ron and what he had to say about the power of the cloud. (upbeat digital music) And welcome to "theCUBE's" coverage of Mobile World Congress, 2021. It's an in-person and hybrid event and we're here in Palo Alto through remote interview as part of the hybrid, getting as much content as possible, is a great guest Ron Haberman, who is the CTO of Nokia Cloud Network Services known as CNS. Ron's an expert. He's going to come in and share with us his vision and his commentary on openness in the cloud, Telco cloud, the changes at the Edge, of so much going on, so much innovation that's changing the game, that's going to impact lives and society. Ron, thank you for coming on "theCUBE" for this Mobile World Congress special segment. >> Thank you, glad to be here. >> So the transformation in the cloud is so amazing with 5G. You've got cloud native developers, you've got enterprises changing their architectures, and cloud service probably going to the next level. 5G certainly is a great edge, but the strength of the cloud combined with the new modern applications really is going to be the power. And you start to see people starting to think differently around how developers are building apps and how companies are working together. It's not just one company ruling the world anymore, it's a lot of interoperability, interconnections, a lot of API's openness, kind of sounds like a network. It sounds like a network effect. This is a big deal. What's your take on this whole shift as 5G gets enabling a fast edge and cloud native go hand in hand. What's your take? >> I think 5G and the transformation to cloud native, generically speaking, go very nicely hand in hand. It's important to understand that 5G is not just another G, really because it's more intended for consumption by businesses and not just consumer. And what it means is that it would have a vast impact on how development is done, how the deployment is done and the type of features that would be required from the network. So when we went on our path to start developing for cloud native, primarily, for 5G, it went beyond just being cloud ready. And we started looking at how do we expand the operability with the ecosystems? How do we go into topics such as continuous delivery? How do we create collaboration between CSPs and cloud providers, such as we can provide the advancements. Now, there are quite a few subtopics in the transformation. For example, these might be obvious, but without automation there's really no ability to create a cloud native delivery process. If you're on the cloud, you're creating speed and ability to innovate as well as access, but you also are now required to create a better security system in ways to tie things back together. The multi-vendor environment and the path that it would enable to move to as a service model is again, a topic that can really be established as part of this transition to cloud native and has been greatly in focus for us. And finally there is a bit of a balancing act in some of the use cases in how do we use new technologies such as machine learning, in creating new use cases. For Nokia as a supplier of both the network functions, which are now getting distributed into public cloud in the private cloud, and on the Edges, as well as control systems of different types of OSS, BSS, including charging, enablement, IOP, et cetera, et cetera. It's really about how do we bring these things together in a way that creates use cases that the service providers can position, especially in their now quest to go after B2B, in leveraging their network. >> Yeah, and you guys bring huge strength there on the Nokia side. I want to ask you specifically, as CSPs are collaborating with you guys to leverage that strength of cloud native and open, the question comes up is how fast can they get to a modern, agile, open infrastructure and how fast can they enable value? And that's where this whole interoperability thing, or this interplay between cloud native and innovation hub comes together. Can you take us through how you see that? How cloud service providers are approaching cloud native today? Because that's really kind of where the focus is, how do I get the operating value, with the speed and agility of development, and obviously built in all the security and everything else? That seems to be the disruptor and let's face it, it's been a slow world in the telco place. So cloud has been a speed game with value, but it's an operator game too. What's your thoughts? >> That's right. And look, I'll take you maybe just a little bit into the history of this transition because only just a few years ago, most networks were really build purely with what we're now referring to as SPMS, physical network functions, really a equipment that was installed in a certain pop locations and created the network. We started this transition to virtualization in the world of VMS and then cloud ready and now cloud native. And it's been a few years for these things to come together. And maybe the most important thing that we must get right, is that as we dis-aggregate and in a way it complicates the deployment, if you would, by a few factors, we want to give the tools to indeed go fast, because the name of the game in moving to cloud native is to speed up innovation. So what we've been doing and in collaboration now with Google, is on the one hand, we need to make sure that all of the network functions, the operating models work, into this aggregated cloud. They can go all the way from a private data center through the Edge, into the central data center. Then on the Nokia side, we have to bring the capabilities to tie networks together, be able to migrate workloads between the locations. And maybe most importantly, as we release new versions of our software, as we enable new capabilities, we want to put it in the hands of the service providers and in turn the developers right away. So we need to enable true continuous delivery in the sense that is very familiar in the cloud world, but quite new to telco. So we have- >> You know. All right sorry- >> Go ahead. >> I'm sorry to interrupt, continue. >> Maybe just to give a very practical example of a customer that we share in Europe, Telenet we're starting with an on-premise Anthos based type of deployment, but keeping an eye on moving to the Edge and into the broader cloud, really enabling themselves to be in a multi region and with true Northbound open interfaces for new use cases to be implemented. >> Yeah, Ron, I want to get your thoughts on this. Dave Vellante, my cohost and I we're talking just in an earlier segment around how major inflection points have some characteristics. They all have characters in common. Usually it's proprietary to open shifts happen. And one in point we were looking at was like the nineties, the late eighties, early nineties, when you had proprietary networking protocol stacks, and then OSI stack came out. Obviously we know what happened from there TCP/IP created the best biggest wave of innovation in the computer history we've seen. Similar things happened here. And I won't say proprietary per se, but there were 5G and telcos stuff, that's kind of like operator centric legacy. Are you starting to see this openness come back and I'm not going to say a full stack, but new kinds of disruption and 5G is opening up the door because it's not just consumer technology. A lot of people like the CEO of Intel saying this is a business technology, commercial technology, more than consumer because of the characteristics. And you combine that with cloud native and say openness with scale with cloud services, but you mentioned Google, that's a public cloud. And so public cloud is going to be a disruption, 'cause it brings scale. So it reminds me of this inflection point where you have this new shift and you mentioned networks, these networks are connecting. So you've got a public cloud and Google's known for their networks and their cloud is being highly scalable and secure. But they're not the only network in town. You got a 5G and you got Backhaul, you got all kinds of new heterogeneous environments. What's your comment on that? Because this is what people are talking about. Where's the shift going to go? What wave is this? What's this going to look like? Is this a true disruption or is it more of the same? What's your thoughts? >> I think it's a true disruption. One of the biggest parts of 5G that would enable these new use cases is slicing. Now slicing is a big word describing something that most of us in networks know for quite some time, really the ability to create some kind of a piece of the network that is shared between partners for a particular purpose, with a particular SLA that contains bandwidth and licensing or requirements, locations, et cetera, et cetera. Now the ultimate goal is for an enterprise to be able to interface with the public cloud and with their operator and consume resources completely dynamically. Now, you talked about Google and public cloud. And obviously anybody that used GCP knows that at any point in time, you can go into a region, you can reserve what you need, use what you need, create results, and then either keep it move away, open new locations, et cetera, et cetera. One thing is missing, the connectivity over the mobile air interface to your user. And slicing allows us to combine the power of the true cloud with the ability to dynamically and programmatically, create a slice for a particular purpose. And for us, the ultimate goal is that really networks would become programmable and a developer or their user would be able to interface with the system and literally create network in code. Now there's going to be quite a lot of building blocks required to reach that goal, given that today, most of it is static. But it starts with at least being able to orchestrate resources out of the network, tie them into termination point that by themselves are annex, that are cloud native and potentially even running in the true public cloud and then attach them into a use case. Now you also mentioned openness and Nokia had been on this open path for quite some time in creating choice for our customers, but now with Google coming in with GCP for example, the interface that we create with technology such as Apogee enable openness, not just for our customer being the CSP, but also for the developer to come in from the outside and reside within the ecosystem that they chose and still be able to consume and even create services dynamically. And we enable it with products that interface with that on the other side, which we can get in there. >> Yeah, what's interesting. What you're saying is interesting, I would just call it out because I think it's important. We hear this all the time is that with the Edge and the devices, people are managing an end to end workflow from an application standpoint. But that's very difficult when you don't have networks that are being managed as a heterogeneous environment. So that's a key point you made. So the question I have for you is how can operators best manage this wave? Because this is the holy grail you're talking about here. We're talking about end to end visibility into the workflow as a developer, with the shift left security being built in. No one's debating that, everyone knows that. So as an operator, how do I starting today operate and manage through this? 'Cause I got to operate a large network. It's almost like swapping the engine out at 30,000 feet in the airplane. So how should operators think about taking this step? >> So the first thing to do is to really just accept the fact that there is going to be true legacy... And there are plenty of 3G networks today still operating around the world. There's going to be, to what is now starting to look like semi legacy. So VNX that have only been delivered to networks, maybe in the past couple of years and will carry 4G traffic and will stay in production for quite some time and manage this transition between PMS, VMs, running VNX, VMs running containerized workloads, and true cloud native, which may be bare metal. And as we're working with Google on Anthos, it literally enables this transition by creating a position for us to put the workload in each step of the path, as well as in multiple locations around the network. And what Nokia brings into this equation, it's also a unified view for the operator. So if you're an operator that today runs on VMs on prem, you have some workflows defined and you've been running them in a certain way, we want to keep that view as similar as possible with the tooling that you were enabled to use over the past few years, but create extensions that connects us into the containerized workflow and then a true cloudified workflow out of the same environment. And this is actually in part what we've been collaborating both with some CSPs, as well as with Google on enabling. >> Ron Haberman, CTO, Nokia Cloud Network Services Group, thank you so much for that insight, great commentary. Thank you for sharing your perspective on the future of telco, telco cloud, telco Edge, unifying those networks end to end. Great stuff, thank you for coming on "theCube." >> Thank you. >> Okay, this is Cube's coverage of Mobile World Congress 2021. We're in person and we're virtual, it's a hybrid event. Thanks for watching. >> John clearly the power of the public cloud in that interview. Great job, by the way, >> It was great to get Nokia and to hear the operator impact, and that's awesome. More to come. So back to the studio, Adam and the team back at the studio.

>>Okay, welcome back to the cubes coverage of Del tech world. I'm john for your host of the cube we're here for virtual coverage were not yet face to face as we start to come out of covert, we're still doing the remote but we got the cube virtual. We're here with Dennis Hoffman, senior Vice President, General Manager for the telecom Systems business group within Dell Technologies dead. It's great to see you. Thanks for coming in CUba alumni. Thanks for coming on. >>My pleasure, john great to see you and look forward to the days when we can stop doing this virtually. >>Well, you guys have been certainly pumping out a lot of content and right now telco cloud telco disruption is big. We heard Michael Dell last event and even when we were in person in real life, we he was really laying down the five G leadership now with hybrid cloud, um, standardized, pretty much I mean, consensus is no, no debate really. It's hybrid multi cloud on the horizon. That's still just a subsystem of basically distributed computing A. K. A hybrid cloud makes the edge a huge part of the story this year. And the innovations all around telecom, Edge in five G have been around and they're changing really fast. What's how are these Edge in five G technologies impacting the market today? >>Yeah, it's uh is fascinating times, I'll tell you they are providing really the ultimate carrots, you know, the catalyst for um innovation in the market and really driving the world's network operators To uh want to take advantage of all the opportunity that the edge presents and that 5G enables. And it's, you know, at the end of the day, it's really forcing folks to think hard about if they have the right network architectures to enable that to capture that opportunity to have the right kind of capabilities. And so we're seeing an awful lot of interest in network desegregation, network modernization, various forms of adopting the technology is you and I are familiar with from years of what's going on in data center evolution are really starting to hit the telco network now at a really, really interesting time >>while we're on the landscape. Do you want to get your opinion on something? I've been hearing a lot, certainly in interviewing other folks here at Dell tech world and in the industry about how the edge and the data compute equation and the connectivity has changed how they're going to lay out essentially their factory, their plants, their operations and certainly covid pushing everyone at home has changed the game on how data is being computed on and how apps are being built. This is a huge five G opportunity certainly when you start to get into the business impact, autonomous vehicles, I've been doing stories about autonomous boats and everything we could have an autonomous cube soon. So, you know, everything is autonomous which drives to this whole edge piece, What's your take on that? >>Yeah, you know, it's, it's funny for years we've been talking about on prem and off prem, like there's two problems there turns out there's a third Prem, right? There is the other premises and that is not the private data center and not the public cloud. And when you stop and think about it, it it makes sense because at the end of the day, wherever we can get data, we can create digital advantage and it's always been cheaper and more effective and faster to move compute to data than to move data to compute. So technology is like 5G are beginning to make it possible to run very interesting applications in very different places and capture what is predicted to be some 3/4 of the data created over the next decade is going to get created somewhere other than a private data center or a public cloud. And that's the edge, you know, in telcos, look at that third premises as their opportunity to get another bite of the apple on services. Four G was kind of a story of the over the top. Players really took the profit pool and made a lot of money from the over to the netflix is to the itunes and so on and so forth. But when you come back to Five G and think of it kind of as the Enterprise G, it's a chance now for the world's network operators to really get a chunk of that profit pool that comes from the emergence of this third premises called the edge >>Enterprise G. I love that, I'm gonna steal that from you. It's a great, great uh >>somebody else >>uh Yeah, the new trend, but it's a business, it's a business opportunity again, totally cool. And consumers to um okay, so you got your out on the road a lot. I know that we've talked in the past on the cube. There's a lot of discussions in the industry, as well as customers that you're having. What are you hearing? What are the some of the pain points are, see Covid has unveiled unveiled new use cases, people had had adapted to it. There's adaptations that are out there that are new and then things that might not happen again. What are you hearing from customers? >>Yeah, I would say in summary, we're hearing a mix of optimism and uncertainty, optimism around all the stuff we just talked about and that you mentioned, you know, it's it's a blank from anywhere. World right work from anywhere, learn from anywhere. Medicine from anywhere. And you know, if the pandemic has taught us anything, it's about the absolute necessity of communications technology to the world we live in today. The uncertainty comes from this question of, okay, so I know that there's this big opportunity and I know that I need to modernize my network architecture and kind of change the way I operate to capture it all. But the architecture is I run on today, make that really hard. And the architecture is that that the modern data center is built on, We know they work. But how do I get them in a way that allows me to build a resilient, high performance agile communications network. Um, you know, today we uh we face a world in which we see, we have a world in which solutions are delivered very fairly monolithically in the network uh for network operators but going forward, the power to potentially decompose all of that is wonderful provided it can be recomposed in a way they can consume. And I think that's where the uncertainty lies. There's a lot of testing and trialing of pieces of applications of underlying hardware, infrastructure, servers, accelerators, um certainly different types of virtualization and container ization technologies. But in the end these networks need to run it many many many nines um and they need to be extremely robust and pulling together a lot of different components from the open ecosystem is a daunting challenge for most of the network operators. >>You know, I hear you saying about the opportunity recognition and the re factoring how we called re composing this opportunity here and again. I like this enterprise G angle because what it means is that it's not the consumer the only it's it's everything. It's a complete consumer ization of I. T. So it's a whole another edge landscape. Prem third, the third premise is the edge. All good. I've always so set on the cube and certainly Dave and I have David and I have riffed on this is that you know, everything is now cloud operations and the data center is a big edge and then you've got other pieces that are just edges. A distributed system kind of sounds like a computer in the cloud. So this is kind of operating model. So I have to ask the question which is in telco, if it's gonna be distributed like that and it's going to be operated at scale, how is Dell responding to capture the mind share and customers using Dell in this new telco disruption? Because it's kind of you got to keep the lights on and you gotta also get them in a position to take advantage of the new opportunity. How are you responding? >>Yeah, Well, we're trying to we're literally trying to fill that gap, you know, the talking to the world's uh modern or say the world's telecom network operations leaders. We've uh we've had a lot of conversations with folks about what they need to do and what's holding them back from really in many ways taking advantage of the digital transformation that that's kind of rippling through the economy. And as they kind of laid that out to us, we decided that it was an enormous opportunity for Dell that this this uh you know, this new network will be fundamentally built on computer technology uh and it will be open industry standard computer technology. And on top of that we will use virtualization. And if this begins to sound like the way data centers are being built, because that's exactly what's happening. But more than that, I think there's a need for an at scale substantial provider that the world's biggest carriers can bet on and feel they can trust as a strategic partner to not only pull the ecosystem together, validated, certified, curated a little bit uh, and deliver it as an outcome, but then stand behind it running and importantly, do all of that in a way that doesn't constrain the continuous innovation. That's really the hallmark of some of these modern architecture. So for us, we see, you know, an opportunity that is literally perfectly built for a company like dealt and that's why we decided to invest in it. That's why you hear Michael talking about it a lot. Uh it's um, you know, it's it's really super well aligned with our strategy, we think it's actually key to winning the edge. Uh and and it's also really well aligned with our purpose, you know what this company exists to accelerate human progress through technology. And this little slice of it is all about accelerating communications and the transformation of modern networks to do exactly that right, To help close the digital divide, to bring fair and equitable medicine and learning to all, um and to allow us all to work from wherever we're working. So it's uh it's something that we're excited about on multiple levels and we think the company is really built for the distributed computing environment that a modern telco network represents. >>Yeah, what's interesting is that the value that you guys can enable at the edge, his real impact, It's not just data center and compute and have applications. Remember the old days I got my crm in my E. R. P and I got my apps on my systems and it's all good now. Business is completely software enables, it's the entire business and the business is software naval, which means that you have to have that edge. So I totally love of the positioning and strategy. I have to ask you if you don't mind, where is the residents with customers when you look at the telco enablement there that you're enabling them to do what's resonating the most, what's jumping out from the telescopes in terms of what Dell's doing for them And the customers, you mentioned tele medicine, which by the way, is an amazing impact to the world. Just one example. But where's the residence? >>Yeah. You know, first we we are what we are. Right. So it's, I think with a lot of conversations, it begins with, um, the telecommunications network needs server technology, but it needs very specific kinds of server technology built in very specific ways. Um, the, you know, the needs of compute at the base of a cell tower on a hill in Montana in the middle of winter are different than we've been building for data centers for years. So I think the first thing that resonates it, I need it, I need a very specific kind of open compute, uh, infrastructure hardware foundation that is industry standard. And, and we turn to somebody like Delta do do exactly that. But what we've learned is there's so much more than that because really we need to begin to deliver outcomes on top of that foundation. Uh, First outcome, we need to deliver his modern operations and maintenance of a distributed network. Zero touch provisioning, zero touch upgrading. How can we impact the total cost of maintenance and ownership in a meaningful way, um, for a network that is in fact constructed out of a fabric of server. On top of that there's the actual network core network services, Edge, the radio access network. And how do we successively open up each section of the network, driving computing storage all the way to the edge? Because for many organizations in the world, many enterprises, their edge will actually be on the telco premises. Right. The telco edge will be their edge. Some of the bigger companies certainly can build their own. But as you get in the world of medium and small business, the person they buy their circuits from and their communications from. If they have the ability to deliver them private slices of networks and virtual compute and storage, that's going to be how they get after it. So you know for us that next piece that resonates is the ability to pull together solutions like we've been doing for years with the ex rail hyper converged the stuff we did with the C. E. Back in the day and then last >>I'm just saying that you know you're bringing up things that kind of sound. It's super complex physical plant and equipment. You're talking about real hard and purpose built devices in the past very operational technology oriented stuff and then that has to have I. T. Agility right? And then have scalability behind it and complete you know integration this is not obvious and easy. It's hard. >>Yeah. No I mean software doesn't run on software right? Software runs on hardware and so as much as a lot of the power and the interest comes from what the application can do underlying it all is a capability to distribute, compute and storage to where the application or the software wants to run or runs best. That's what's really cool about five G is its ability to do the stuff you mentioned earlier on, you know, the, the G Wiz stuff, drones and autonomous and a AR and VR and all the things that ultra reliable, low latency communication would make possible on a grand scale that really bring the machines into the picture, not just humans on the edge. It's the stuff, right? That that's on the edge and we've been talking about it for a long time, but none of it's gonna matter if we don't put this infrastructure foundation in place. Then we got to lay an open marketplace of containerized network functions. Virtualized network functions on top of that all to enable our network operators to deliver interesting services to end users. It's >>super exciting. I got to say that it's a super exciting because you know, it's coming it's like the energies there, it's like the, you know, the storm's coming of disruption in the innovation because you think about what containers and cloud native kubernetes the cloud native technologies can do for legacy because its shelf life and more headroom, right? So you can you can win these telcos can actually not only pivot but line extension into new capabilities. So they tend to be very strong technically is an operator, operator networks, the hard tech stuff, physical stuff and software but not known for it. I mean but now there's a huge opportunity that's gonna come around the corner. I'm bullish on Iot and edge where you have the O. T. And I. T. Coming together. It's really compelling And it's going to be radically different I think in the next 5 to 10 years what's your take on that in terms of outlook? >>Couldn't agree more. Yeah I mean it's you know it's for those of us are in the industry always the knowledge of what's coming or the belief in what's coming. The hype precedes the actual development. But you know just as I don't know 15 20 years ago the idea that you can completely disrupt the taxi industry with an app and a four G smartphone service was in nobody's mind except maybe a couple of people. You >>know it >>makes you wonder what is the what is the uber equivalent of a business service that will be fundamentally enabled by the architecture we just described that we're not thinking about right now and that's why every time we move from a centralized computing model to a decentralized computing models that decentralized computing models dramatically larger than a centralized, >>way >>bigger than mainframe. Edge, way bigger than client server, which is already way bigger than cloud, Public. Cloud. And so I think it's, you know, there's a, there's a lot of promise, a lot of excitement. Still a long way to go though. A lot of the stuff we're talking about still is not actually rolled out into the network. Um and that's kind of the opportunity for somebody like them. >>Yeah. And decentralized and open winds. It's funny you mentioned high, we were talking David was just talking with Michael Dell and Pat Gelsinger in 2013. We're talking hybrid cloud, that's 78 years ago. Okay, so good stuff. Let's get into the news real quick. Um Deltek World, you've got some news coming. Uh Let's dig into it. Please share some of the outlook of the news. You're gonna be you're you're announcing here? >>Yeah, thanks. Sure, john, I mean, we're gonna be announcing two things relative to the telecom portfolio. Uh and they're both reference architectures with VM ware. One is the second edition of the telco cloud platform for five G. Um, so that's a Delvian where reference architecture, that is exactly what we just talked about. It's this open software defined on industry standard hardware platform, um for running 5G applications. And then the other one is the first version of the telco cloud platform for the radio access network, TCP ran as we would call it. Um and as we start to push this technology from the core out towards the edge of the telecom network. So to really interesting developments in in deep partnership with VM ware and stuff, we've been working on for a while stuff, we are in fact working on with customers and delivering today and we'll be making formal announcements about those at the D T W show. >>Awesome. Dennis, thanks for coming on the Cuban, sharing the update and thanks for the industry insight. Uh, I love the telco shift that's going on. It's an extension of existing, I think cloud native saves the day here with telco and allows the completely different landscape to evolve. So you guys were on top of it. Thanks for sharing S VP and general manager, the telecom systems business with Dell Dennis. Hoffman. Thanks for coming on. >>Thanks john Okay >>cube coverage here. Del Tech world. I'm john for a year. Thanks for watching. Yeah.

>> Hello, my name is Peter Moser. I'm a chief technologist and IoT and AI strategist for HPE. And with me today is John Carter. He's the director of the ProLiant Product Management family. And we are going to talk to you about how we can take your business to the next level using the intelligent edge. So what is the edge? Why should you care? Well, when you look at IDC and Gartner's and others they're reporting that over 55 billion nest with the B devices will be deployed by 2022. That's not too far down the road from now and these devices are all going to be creating data. Well, most businesses also has been reported using less than 6% of all available data. So what all this is going to do is compound that challenge. Then you look at another data point, where over 50% of all new data is going to be created at the edge, indeed be processed at the edge. So when you have things like sensors and video cameras, all creating data, the need to deal with that data as close to where it's being created, as possible, is the most economic way of dealing with that data. But most importantly, it's also necessary from a timing standpoint that you'll get value from that data as quickly as you can, in many cases and the best way to do that is processing the data where it's being created. So let's take a look at what the intelligent edge looks like. Think about the connectivity that's necessary to connect these new video cameras, these new sensors and other types of devices you're going to be creating its data. That connectivity has to be secure and it has to be intelligent. Why does it have to be intelligent? Cause you want to be able to authenticate anything that wants to connect to that network fabric before it's allowed to do anything at all. So that means you going to have to have a high degree of intelligence like machine learning, for instance, to really understand what that is that device is trying to connect to your network and what kind of credentials that device should have. Then once you do that, then you need to have the necessary processing capabilities to then to be able to ingest that data, analyze that data and to create the necessary action to be able to act on that data. So not only do you have to have that pervasive connectivity via wireless or wired connectivity but also you have to have that data center class compute that enables you to adjust this massive amount of data and then to be able to create the insight necessary to act on that data and do so in a secure manner. So what does edge computing look like? Well, for many businesses, they need to make a decision and have that insight within milliseconds because milliseconds do matter. Say for instance, you're running a process where you're manufacturing an item. When you're going through say quality control, you want to be able to detect a defect in a microsecond so or little seconds to be able to know do I need to shut down the plant to enable me or to shut down that production run to enable me to then determine what caused that defect before I create too much of defective products and have all that waste or in worst case scenario, that product goes out of the door and you end up with a massive recall which can damage your brand. But then think about autonomous operations. What COVID has showed us is that businesses need a higher degree of resiliency because when your workers can't come to work, then what do you do? You get more and more businesses relying on automation to allow them to keep their plant operations functioning and enabling their workers to work remotely to be able to monitor and to control operations. Of course, security and compliance underlines all of this. Everything has to be secure to make sure that your edge environment stays secure not only from a connectivity standpoint but to make sure that no bad actors get on your network cause a lot of people have a false sense of security thinking that because it's behind the corporate firewall, they're okay. That's simply not true cause over 40% of all cyber attacks occur through phishing events. That means they steal legitimate credentials from employees and use those to access the network to see if you have to have other forms of or ways of identifying these types of attacks and then identifying and isolating them and containing them. And that's where having intelligence built into the network is so important. But with many customers that they may do a project that use case, if you will, the edge they have a challenge with scaling. And that is where it's important to have an architectural design in the right edge-based solution that enables you to now have a successful pilot. But to be able to scale that into a full production solution and one that can be replicated across all your sites. Because at the edge you have a combination of compute, storage and networking, which are all integral in creating a solution necessary to drive your business. But these solutions have to be managed because typically at the edge, we don't have the resources like we do in the data center. And so we rely on having data center class management capabilities but at the edge, it allows remote resources to manage that compute, storage, networking assets there at the edge. But additionally should customers want to consume an edge-based service, HPE offers consumption-based services that allow you to manage those resources remotely but then have a dashboard that enables you to have that transparency to share the state of all those assets with your different stakeholders. And so you see here a fusion between the edge and the cloud because they're not really mutually exclusive like some people think. The edge and the cloud do work together but what we're finding is, the edge has to have a higher degree of resiliency and independence because if you think about it, many businesses today in especially remote locations, don't have the same connectivity options that a business in a big city might have. They have lot of low bandwidth circuits for instance and some of these circuits aren't very reliable. So businesses need to have the capability of running their operations independent of any kind of connectivity to a data center or the cloud. That's what's key about the intelligent edge. But when that connectivity is there, they want the ability to have remote access to those edge resources and the ability to monitor their state, to be able to resume operations with remote capabilities. Okay, now let's look at some customer examples where the intelligent edge is helping drive real business value. HPE has a manufacturing customer that makes hard drives and for them quality is paramount because their customers store their data on their hard drives. So this customer needed the ability using computer vision or in other words a video camera looking through electron microscope to be able to scan away from the hard drive and make a determination in less than 10 milliseconds, is there a defect on this wafer? And the action was to stop the process, determine what caused the defect, remedy the problem before they produce too many drives and then have a substantial amount of waste, or in worst case scenario actually ship the drives and have a recall. So HPE was able to put an intelligent edge solution in place that allowed them to scan for defects and then be able to act upon any identified defects in less than nine milliseconds. We also had a very large retailer where the challenge is with self checkout is shrinkage or many cases also known as theft. For these customers, they need to be able to use computer vision to be able to scan and clearly detect at checkout what the customer was doing. Did it have an actual problem with the checkout process or were they trying to undermine and circumvent the checkout process and hide the scanning of the actual barcode. This required again less than 10 millisecond response time to be able to make the determination, what the customer is doing, do they have a real problem or are they circumventing the barcode process and then to be able to act upon that. HPE was able to put an in-store solution that allowed them to capture video from all the different checkout stands and to give them those insights in the timeframe that they needed. We also had a very large customer that has a supply chain optimization challenge that wanted the ability to be able to map the demand signal when they had an order to the supply chain to know could they deliver or meet that order requirement by the date that the customer specified based on the status of their supply chain. So one of the things that COVID has pointed out is that there's a lot of supply chain disruptions because depending on where the supply is coming from or in particular if it has to be shipped from overseas, there could be disruptions and the availability of that supply and HPE was was able to help our customers create an intelligent edge solution that enabled them to be able to better map the demand signal with available supply. Then with healthcare, with COVID, many of our customers' healthcare providers had to change the way they delivered healthcare and what they needed to do was change the way that they did what we call distance healthcare, where they were able to use edge-based technology to then deliver healthcare to their customers or their patients remotely. And HPE was able to put together a solution that enabled them. It's a virtual desktop solution that enabled them to use their devices from their homes to be able to deliver care to their patients. Then lastly, well the things that COVID has also brought to the forefront is the ability for businesses to enable their employees to be able to run their operations remotely from home. Again, this is where the need to provide data center class management capabilities at the edge were critical because they couldn't have employees go into the plants because of COVID restrictions. So the IT staff had to work from home and then manage the edge devices remotely and they had to have the right tools to enable them to do that. So what I'd like to do is hand the conversation over to John to talk about the the HPE assets that enable these types of use cases. So John, do you want to share a little bit about the HPE portfolio? >> Thanks, Peter. What I really appreciated about what you talked about was the idea that no edge use case is quite the same. With that in mind, HPE has developed a portfolio of technologies to really optimize around those different use cases, whether it's one of those AI and inferencing workloads, like you were talking about, where you might use one of our great AMD platforms like the DL385 or 365, or maybe it's more of a traditional data center workload that you've extended out or dis-aggregated onto the edge. There you might consider one of our time tested workhorses like the ProLiant DL360 or 380. And we've even got new products for emerging workloads like on Telco on their edge where we've designed the brand new DL110 for virtualized RAN environments, specifically meeting some of those Telco needs around acceleration and data movement. Finally, some of the examples you talked about really around the manufacturing floor, or other specialized environments where you might have different ambient temperature requirements or other things. This is where HPE edge line really shines. So as you can see here, we've got a lot of different options for you in regards to how you right-size the type of resources for your particular workload. On the left side, you'll see our 1U,1P; very small form factor DL325, really great where you need fewer processing resources but a lot of other high performance access to NVMe or accelerators. Think of things like VDI. When you're tying to put a lot of users into a smaller space, you can move up to one of our devices that offers larger storage footprints. Look at the DL345 or the DL385, both really designed to maximize access to things like NVMe or acceleration while giving you the right balance between process or another resource. Or you can choose to use one of our time-tested answers like the DL360 and 380. These are two of the world's best selling servers and they've been used in environments and applications all over the map. Anything you can think, of these servers have been implemented for. So you can trust that they've been tested, that they've been used and that we've really spent the time optimizing exactly how those servers work for you. And then as mentioned before, we look to continue offering new servers that will help to really bring the exact kind of workload resources needed for new environments as well, specifically the Telco edge. >> Thank you John. For many of our customers, they don't have the resources or the expertise to get started with the intelligent edge. So it's important that they find a partner that has not only the expertise but the partner ecosystem which is critical to help them on their journey. And so what HPE focuses on is bringing the right partners to bear for our customers to help first understand what's the customer trying to accomplish? What's important to them? And focusing on solutions that are going to deliver the business value that the customer expects and then to put together a pilot that's going to not only show the customer the solution that's going to deliver the value that they expect but a pilot platform that can scale is one of the things with the examples I shared earlier, once the customer finish those pilots, they're ready to scale this across all the organization. It was critical for them to have a solution that would scale with their size and these are large companies. So they have multiple sites in some cases, thousands of site, so it's critical. That's a solution scale. So HPE Pointnext Services has that expertise. They have those relationships with the partners to come in, understand what you're trying to accomplish, understand your existing environment which is critical, cause we want to leverage as much of the customer's existing investment as possible but then to bring in the additional capabilities that are necessary to deliver the outcome that the customer wants but to make sure that it is secure. And it all starts with HPE Silicon Root of Trust where it begins with the build process where we make sure that our compute assets are secure all through the build process, there are Silicon Root of Trust even in delivery when the assets powered down, we have tamper-proof capabilities to determine if that asset's been tampered with in transit and then most importantly once it's put into production to make sure that the device stays secure once it's beaded up. Then again to bear for our customers' solutions that solve their business problems; running on the industry's best technology but to give the customer the option of either procuring it or consuming it as a service. Many customers don't know where to get started. We can help you with that as well. First is they want to know how can I improve my decision making process? How can I improve the efficiency of my operations? And for many of our customers, that's doing it locally. Cause all of our customers have a cloud strategy, a hybrid cloud strategy and we incorporate that into the solutions that we build for our customers. We help them really focus in zero end on a pilot project that's going to deliver the business value that they expect. Therefore many of our customers, a lot of these projects never make it out of the lab. They test and test and test and then for some of them when they put it into production, it doesn't scale, so they have to start all over again. So it's important that they have a partner that has experience to help them pick the right use case. But the most importantly, put it in the right architecture that can scale. Then we put together a business model. For many of our customers especially because of COVID, they want options. They want to conserve capital. They don't want to spend their capital on buying a solution. They want to consume a service. And HPE GreenLake services offers that where our customers, if they choose, can have HPE not only build the solution, deploy it, but they manage it for the customer and allow the customer use their resources to focus on creating new services for the business. We even offer leases and other options as well. It is important that customers when they architect an edge-based solution that they architect one that is foundational for all their sites. This also helps customers reduce their costs and also reduces the complexity of the solution going forward. So HPE's GreenLake services gives customers the option of consuming services just like the public cloud at the edge with the transparency that the public cloud offers as well by giving customers that full dashboard view of the status of their edge-based infrastructure so that they can report out and provide that transparency to their stakeholders but also to bring in the partner ecosystem that goes with that. The partner ecosystem that allows you to create the platform to find the right solutions that run on those platforms, be an artificial intelligence or IoT or data pipelines, whatever it might be is necessary to drive the use cases that the customer needs to improve their business. But also financial services to give the customer choice on how they want to deploy their solutions, they want to capital acquire it, then want to lease it or do they want to consume it as a service. If you'd like to learn more about the products you've heard about today, here are two links to our ProLiant or edge line servers. So on behalf of John and myself, we want to thank you for your time today and hope you found this information useful. Thank you.

>> From around the globe, it's The Cube, presenting Cube on Cloud, brought to you by SiliconANGLE. >> Welcome back to Cube on Cloud. I'm Paul Gillin, enterprise editor of SiliconANGLE. As we look ahead at what is in store for the cloud this year, one of the intriguing possibilities that has emerged is the rise of vertical clouds. IBM has been a leader in this area with its launch in late '19 of the IBM Financial Services cloud. That's a services-ready public cloud with exceptional security, as well as a policy framework for certifying compliance and services from the IBM subsidiary, Promontory. Now, with the IBM Financial Services cloud, that has been a major focus of our next guest, Hillery Hunter. She is the Vice President and CTO of IBM Cloud, an IBM Fellow, and a veteran of, I believe, three previous appearances on The Cube. Am I right, Hillery? >> Yep, sounds about right. Great to be back here today. >> Thanks for joining us. So let's start with getting an update on the IBM Financial Services cloud. What progress have you made in signing up customers and your ecosystem of partners? >> Yeah, we've made really significant progress advancing the IBM Cloud for Financial Services since we last talked, and we're really at that place of establishing a trusted platform for the industry. Just in some specifics, in addition to Bank of America which we had talked about as our U.S. anchor partner for the program, we've announced several global banks that are partnering with us for the global expansion of the program, including BNP party bar, which is one of Europe's largest banks. More than 70 ASVs are signed up with us now as part of the program and adopting IBM Cloud for Financial Services. This level of ecosystem is exciting because it means that banks will have the opportunity to transform what they're doing, but do so in a way which is driven by security and compliance so that they can be confident in those deployments on IBM Cloud for Financial Services. We also released the IBM Cloud policy framework for Financial Services. This is both the security and compliance posture of the environment, as well as guidance on controls, reference architectures, automation to help people onboard. And so both ISVs and banks now are able to onboard to this environment, and offer their wares and deploy their workloads. So it's a really exciting state for us on the program, and we're really in a place where there'll be an ongoing cadence of additional releases and announcements of additional partnerships and clients. So it's an exciting time in the program. >> One of the distinctive features, I think, of this launch is that you're working actively with your customers. They're working with you on building policy frameworks, as well as, I imagine, the features that you're offering on the cloud. How do you orchestrate all of these different customers and get them involved in, actually, co-development. >> Yeah, the ecosystem conversation and the partnership conversation are two of the fundamental aspects of the program. Like you said, this isn't just us sitting off in a bubble and inventing the future. We're working internally with partners within IBM, like IBM Promontory, which is a consultancy that has deep, deep regulatory expertise in jurisdictions globally, with IBM Security Services, and then with these individual partners and banks and clients. One of the ways that we bring everything together is through our council. So our council, our Cloud Council for Financial Services, is where we have global, systemically important financial institutions partnered with us and working together with one another, and that covers CIOs, it covers chief security officers, risk officers, et cetera. So we have some formality around how we work with all of these partners, really, as a body and as a group. >> And what have you learned from this experience? If you were to go into other vertical clouds, what have been the lessons? >> Ecosystem is so important. As I look at this space, I see that everyone has an existing business. They have a platform they're running, they have clients they're trying to service, but the software providers into this space are looking, themselves, to transform. They're looking to transform from being software vendors to being SaaS providers. The banks and financial institutions themselves are looking to transform from working on their own premises to benefit from the elasticity and the scale and the optionality that being in public cloud provides. So there's a lot of parties themselves that are trying to transform, and a lot of vendors into the financial space that are looking to transform. And in that time of a lot of change, ecosystem is absolutely key. And so the ISE and SaaS providers providing their wares on the cloud for financial services is really just as important as those financial services institutions, so that everyone can make that transition together, and so that banks that are looking to digitally transform can leverage partners that are really at the forefront of that change and that innovation in platforms for the industry. >> Would you say that there are- Is this the first of many? Are there going to be other vertical IBM clouds, or is the range of industries that really need that kind of specificity, limited? I think it's actually not limited, though I will say that within the space of industries that are heavily regulated, there's obviously a deeper need for specific cloud embodiments and cloud implementation, so regulated industries like insurance, like telco, health care, et cetera, these are the ones, I think, where there's the greatest opportunity to do verticals that are specific to industry. But as we look at this, this is absolutely part of an IBM Cloud strategy to deliver industry-specific clouds. And this comes from our decades of expertise. Even in financial services, being able to leverage those other entities within IBM that I mentioned, our regulatory background with companies, having helped them address regulatory needs for specific industries, and then translating that into cloud and cloud technologies. And then coming up from the other side, in terms of the technologies themselves, we've partnered with key industries to deliver security, and data protection, and cryptography technologies, and such, on premises, and we're contextualizing that now for cloud and public cloud deployments. And so it brings together the pieces of decades of expertise in platforms, and technology, and regulations, and contextualizes it into cloud, and I absolutely think that's an opportunity for other industries as well. >> Can you give us a bit of a preview? Do you have specific industries in mind? Is there a timeframe? >> Yeah, so late last year we did announce a second industry-specific cloud initiative, and that was IBM Cloud for Telco. So we have in that ecosystem, now, over 40 partners that are now, that are working with IBM and with Red Hat, especially with clients and partners that are looking to help with that transition into 5G and increasing use of IOT. 5G is really this disruptive opportunity for that industry, and also just for many other different types of companies and institutions that are looking to deploy with more efficiency, better operational efficiency, deploy with AI capabilities, really being able to do things at cellular network EDGE, and the places that they're doing business using IOT devices, and 5G will enable much of that to really transform and flourish. So a couple of the partners, initially, in addition to that ecosystem that I mentioned in Cloud for Telco, we've got Samsung working with us, Nokia, AT&T, et cetera, and so these partnerships and capabilities around network EDGE and specific capabilities in Cloud for Telco are that second public announcement that we've made around industry-specific cloud. >> And as far as your competitive position is concerned, are you taking away business from your competitors when you partner with these telcos and these banks, or is this an entirely new line of business that was not previously in the cloud? >> Yeah, these are really, I think, in, by and large, new opportunities. As we look at, for example, how we, as customers, expect to engage with our bank, we are looking to increasingly engage with a bank in a digital way, use our applications, use mobile devices. We're looking for individual bank outlets, branch outlets of a banking institution, to be increasingly smart, to service our needs more quickly, et cetera. And so as we look at 5G and telco EDGE, it's about delivery of smarter capabilities and such. I think much of it really is about, in this digital transformation space, about creating new capabilities, creating new experiences, creating new ways of engagement, and engagement and opportunity to customize and personalize, I think most of those are new experiences and new capabilities for most companies. >> So speak about IBM's positioning right now. You're not one of the big three cloud providers, unlikely to become one, but you do have a big cloud business, and you've got the verticals, you've got the multicloud. I know IBM has been a big champion of multicloud. How is IBM distinctively positioned in the cloud market right now? >> Yeah, we are all-in on hybrid cloud and AI, and if you listen to our CEO and chairman, you'll hear that. It is a really consistent message since he came into his role as as our CEO. So being all-in on hybrid cloud and AI, we really are looking to help our clients transform into holistic cloud architecture. So when I say all-in on hybrid cloud, I mean that there's been a lot of, I jokingly say, random acts of cloud usage. People have ended up using cloud because there's some SaaS function that they want, or some particular line of business has been highly motivated to pursue some service on a particular cloud. And hybrid cloud is really about taking a step back, having a holistic architecture for cloud consumption. And in that sense, clouds are IBM's partners. And we're really looking to enable our clients to have consistency in their deployments, to consolidate across their IT estate and across their cloud deployments so that they can have a common platform, so they can have efficiency in how their developers deploy capabilities, so they can deploy more quickly with security and compliance patterns, and have oversight over everything that's going on in a consistent way that really enables them to have that velocity in their business. And so when we then position things like industry cloud, we're leveraging IBM-specific technologies to deliver differentiated capabilities in data privacy, data protection, security and compliance, for these industries, in public cloud, yes, but it's in the context of helping our clients overall across all the different things, some of which may not need all of that data privacy or be leveraging particular SaaS content. We're looking to help them really have cloud architecture, have a holistic conversation across hybrid cloud, and yet to still be able to choose particular cloud deployments on our cloud for industries that enables data protection and policy for the most sensitive and enterprise grade things that they're looking to do at the core of their business. >> So speaking of hybrid hybrid cloud, the major cloud providers, Amazon, Microsoft, Google, Oracle's another one, all have on-premises offerings right now. Several of them are working with telcos to expand their reach out into co-location and into telecom data centers, all of this being to enable this distributed cloud fabric, a hybrid cloud fabric. What's IBM's play in this area? Do you have a similar strategy or is it different? >> Yeah, I really think, and I think you maybe wanted to get a little bit into trends and predictions here in this conversation, and we absolutely see that need for distributed cloud, for cloud to really be alive in all the places where it needs to be, in all the places that someone is doing business, and in a consistent way across cloud environments, to be one of those major trends that's emerging as a really hot conversation. We have introduced IBM Cloud Satellite, that is IBM's hybrid cloud, as a service platform. It enables our clients to leverage OpenShift and Kubernetes environments, developer tooling, consistency in a cloud catalog, visibility and control over all their resources across different environments, and to be able to run end-to-end with consistency from on-premises, to EDGE, to different public cloud providers, and this is absolutely something that, across industries but within, also, those industries, that we're focused on in particular, that we're seeing a lot of interesting conversations emerge, because if cloud is everywhere, if cloud is distributed and can be on premises and in public cloud, it enables this consistency and this parity, really that brings together that seamlessness, not just the random acts of cloud usage. It means that using cloud can be something that drives speed of release of new product. It means that you can deliver more capability and functionality into a retail outlet where you're doing business, or a banking brick-and-mortar location. You can have AI for IT ops and understand what's going on across those different environments, and ensure things are kept secure, and patched, and updated, and you're responding to incidents in efficient ways. And so, really, having a consistent cloud environment and a distributed cloud environment across different locations, it's really key to leveraging the promises of what everyone had originally hoped to get out of cloud computing. >> And of course, one of IBM's distinctive advantages in this area is, you've got a huge hardware install base out there. How do all those 360 mainframes figure into this? >> Yeah, with the OpenShift capabilities and our (audio skips) relations with Red Hat in this area, we are able to actually help our clients leverage Kubernetes, and Linux, and all those things, even on the mainframe. So across the mainframe family, the IBM power family, where folks may also have AIX or IBM i deployments, people can now do Linux, they can do OpenShift, they can do Kubernetes, and we have core technologies that enable that really to be stitched together, and I think that's one of the unique perspectives that IBM has in this whole conversation about hybrid cloud. There are many different definitions of hybrid cloud, but we really view it as stretching from the traditional enterprise IT, like you said, there's a lot of IT out there, and being able to also incorporate OpenShift and Kubernetes in a common cloud platform, on traditional enterprise IT, on private cloud, on fresh deployments, on private cloud, Amazon public cloud, that really is the whole IT estate. So when we talk about hybrid cloud, when we talk about distributed cloud, we're really talking about the entirety of the IT state, not just new deployments of SaaS, or something like that. >> So as someone who's on the front lines of what customers are asking about cloud, do you see customer, the questions that they're asking, changing? Are their decision criteria changing for how they choose a cloud provider? >> Yeah, I think that there's definitely a lot more conversation, and especially in this current era where there's an accelerated rate of cloud adoption, there's a lot more conversation around things like security, data protection, data privacy, being able to run in an environment that you trust not just, is it a cloud and what does it do, but can I trust it? Do I understand how my data is protected, how my workloads are secured? That's really why we started Cloud for Financial Services, because that industry shepherds such vital data, so the reason that they are highly regulated is because of the importance of what they are stewarding, very important data and financial information. So we began there with the Cloud for Regulated Industries, there with with Financial Services, but I see that across all industries. I was participating on a panel with a bunch of CIOs, and I was there interviewing some CIOs who were from a much more consumer-facing, and also from from foods industry, et cetera, and their conversation was exactly the same as I have with many other clients, which is that their cloud choices, their efficiency in cloud deployment, now are largely driven by the ability to get to a secure posture and the ability to demonstrate to their internal security and risk teams that they understand their data protection and data privacy posture. So we are seeing lots of pickup and conversation opportunity around confidential computing, specifically, and that's really about enabling our clients to have full authority and privacy in their computing, in their code, in their data, even when running in a cloud environment. And so I do see a shift. Everyone's more concerned about security, and I think we have great technologies, and we've been working with core partners to establish, and harden, and create generations of technology that can really answer those questions. >> I have to ask you about that term, confidential computing. I haven't heard that before. What does that involve? >> Yeah, it is a buzzword to watch out here for in 2021. So confidential computing means being able to run in an environment where there are others, in a cloud computing environment, for example, but still have full privacy and authority over what you're doing. So you are effectively in an enclave. Imagine yourself protected and secured. And so our confidential computing technology is, we're actually on, basically, our fourth generation of the hardware and software technologies to create that strong degree of isolation. This enables us to deliver a really rich portfolio, frankly, the richest portfolio in the industry, of actual services delivered using confidential computing and secure enclaves. And so we can enable our customers to solution things in a way, for example, where their data can not even be visible to our cloud operators, or where they retain full control over a database, and have full privacy as they're running in that environment. These are really great considerations, but they impact everything from health care, financial services. We have other partners and clients who are working to protect consumer data through these means, et cetera. And so across different industries, everyone's really looking at this topic of data privacy and data protection. And so we have a whole suite and a whole family of confidential computing-based services that we're able to offer, to offer those assurances and that privacy to them in their cloud computing. >> I do have to ask you about the multicloud, because this is a topic of constant debate in the industry of whether customers want to shift workloads across multiple clouds to protect themselves from lock-in. Is that a fantasy? Is that too restrictive? This has been a key part of IBM strategy is enabling the multicloud. How do you see customer attitudes developing right now? How do they want to use multiple clouds, or, in fact, do they? Are they concentrating perhaps more of their workloads in one or two? >> Yeah, we believe vendor lock-in goes against the true spirit of hybrid cloud, that desire to have consistency across environments, that desire to- and the business need to have continuity and resiliency and operations, et cetera, and so I do see this as a really important topic. From the perspective of managing environments, I think in multicloud, I think folks are starting to realize that multicloud isn't necessarily a strategy, it's a reality. People have deployments in lots of different cloud environments that happen somewhat organically, in many cases, and so the key question is how to then get to visibility and control over those resources. I think two of the core topics in that are multicloud management, being able to understand clusters, and virtual machines, and other things that are deployed across different environments, and manage them with a common set of policies, for example. And then, in addition to multicloud management, AI for IT operations is another really important topic in multicloud, being able to respond to incidents, understand and analyze and leverage AI for understanding what's going on across those environments is another really core topic. And then as you said, distributed cloud is a means of getting that consistency. Having a common control and deployment plane across those different environments can help it not just be accidental usage of multiple cloud environments, but very intentional deployment, based on the needs of particular workloads to the environment that they're best suited to. And that's really what you want to aim for. Not that multicloud is necessarily, I guess I would say, is a- It is a complexity that is manageable through these new types of technologies and multicloud management, and such like that, and distributed cloud. >> Well, Hillery 'tis the season for predictions, it's January. Everyone's prognosticating about what the future will look like. What do you think are going to be the main trend lines in cloud this year? >> Yeah, I sprinkled a few in there as we were talking, but I really do think that the conversation around hybrid cloud, number one, how to have an open innovation ecosystem for cloud, where you have consistency across environments, not just random acts of cloud usage, but intentional and holistic architecture. I really see that as the transition, as the second wave of of cloud adoption. And then, secondly, is we were talking earlier about security. Everyone is wondering about data policy, data privacy. We've always taken a strong stance that our client's data is their data. We are not going to be using their data to further develop our AI services on our cloud, or something. We have deployed technologies in confidential computing that enable them to keep full control over their keys so that even our cloud operators don't have access to data, computing in secure enclaves where they have a strong degree of isolation and full privacy and authority over their workload. I really think these two topics, open and secure hybrid computing and with consistency across environments, with distributed cloud technology, and secondly, security. I think these are really important topics for 2021. And they may seem a little bit obvious, but I think it's important as people look at this to look for technologies that are multiple generations into this journey, partner with folks who are committed very clearly to an open ecosystem and open source innovation on the one hand, and secondly, when we talk about security and data protection, you want to know that that provider is several generations into that journey so you really know that that technology has been vetted out, is at production scale, and has a stable basis. And so I think this is the year when folks are transitioning from cloud adoption to consistency in cloud, and security and privacy in cloud. >> A final question, and it has nothing to do with cloud. You're an IBM Fellow, and I see that term turn up occasionally with other other people I've spoken to from IBM. What is an IBM Fellow, how do you become one, and what privileges and responsibilities does it entail? >> Yeah, it's an exciting opportunity to be an IBM Fellow. There's about a hundred active IBM Fellows right now, so there aren't too many of us, but there is a small community of us. IBM Fellow is IBM's highest technical designation within our technical population, so I do have a role within our cloud business, but as one of our technical leaders, get to interact with the other Fellows, work on strategy for IBM in technology overall as a company, and I also get to be a trusted advisor to many of our clients, and so I get to work with CTOs and CIOs and VP of Application Development profiles, and VP of IT, and things like that, in our different clients, and really help them wrestle through those struggles of future IT transformation. And so part of what I enjoy most about the role, and the Fellow role, is being able to be that trusted advisor to many of our clients. There's been so much change in this last year for everyone, and being able to also help our technical population through that, in various means, and then help our clients through all of that change, and really being able to take and grasp onto the opportunities that this last year has had in the way that we work has changed, and the way that companies are looking to deliver capabilities has changed. So that's, for me, the exciting part of the role. >> Well, you're one in a hundred, then, and you do a great job of articulating the IBM strategy, and also the cloud landscape. Hillery Hunter, VP and CTO, excuse me, CTO of IBM Cloud, thank you so much for joining us today on Cube on Cloud. >> Thanks so much for having me. It was a pleasure. >> I'm Paul Gillin, stick with us. (upbeat music)

>>From around the globe. It's the cube presenting cube on cloud brought to you by Silicon angle. >>Welcome back to coupon cloud I'm Paul Gillan enterprise editor of Silicon angle. You know, as we look ahead at what is in store for the cloud this year, one of the intriguing possibilities that has emerged is the rise of vertical clouds. IBM has been a leader in this area with its launch in late 19 of the IBM financial services cloud. That's a services ready public cloud with exceptional security, as well as Polly, a policy framework for certifying compliance and services from the IBM subsidiary. Promintory now with the IBM financial services cloud, uh, that has been a major focus of our next guest, Hillary Hunter. She is the vice president and CTO of IBM cloud and IBM fellow and a veteran of, I believe, three previous appearances on the cube. Am I right Hillary? >>Yep. Sounds about right. Great to be back here today. >>Thanks for joining us. So let's start with getting an update on the IBM financial services cloud. What progress have you made in signing up customers and your ecosystem of partners? >>Yeah, you know, we've made really significant progress, uh, progress in advancing the IBM cloud for financial services since we last talked, you know, and, and we're really at that place of establishing a trusted platform for the industry, just in, you know, some specifics in addition to bank of America, which we had talked about as our us anchor partner for the program. Um, we've announced several global banks, um, that are partnering with us for the global expansion of the program, including BNP party, you know, which is one of Europe's largest banks. Um, more than 70 ASVs are signed up with us now as part of the program and adopting IBM cloud for financial services, this level of sort of ecosystem is, is exciting because it means that, you know, banks will have the opportunity to, to transform what they're doing, but do so in a way, which is driven by security and compliance, um, so that they can be confident in those deployments on IBM cloud for financial services. >>We also released the IBM cloud policy framework for financial services. This is both the sort of security and compliance posture of the environment, as well as, you know, guidance on controls, reference architectures automation to help people on board. And so both ISBNs and banks now are able to, um, onboard to this environment and offer their wares and deploy their workloads. So it's a really exciting state for us on the program. And we're really in a place where there'll be, you know, an ongoing cadence of, you know, additional releases and announcements of additional partnerships and clients. So it's an exciting time in the program. >>Uh, one of the distinctive features I think of this, uh, of this launch is that you're working actively with your customers. They're working with you on building policy frameworks, as well as I imagined the features that you're offering on the cloud. How do you orchestrate all of these different customers and get them involved and actually co-development >>Yeah. You know, it's the ecosystem conversation and the partnership conversation are two of the fundamental aspects of the program. Like you said, this isn't, you know, just us sitting off in a bubble, inventing the future. Um, you know, we're working internally with partners, uh, within IBM like IBM Promintory, um, which is a consultancy that has deep, deep regulatory expertise and in jurisdictions globally with IBM security services. And then with these individual partners and banks and clients, one of the ways that we bring everything together is through our councils. So our council, our cloud council for financial services, um, it's where we have global systemically important financial institutions partnered with us and, and working together with one another. And, and that covers, you know, CIO is it covers chief security officers, risk officers, et cetera. Um, so we have some formality around how we work with, um, all of these partners, uh, really as a body and as a group. >>And what have you learned from this experience? I mean, if you were to go into the, uh, into other vertical clouds, what have been the lessons >>Ecosystem is so important, right? It's as I look at this space, I see that, you know, everyone has an existing business, they have a platform they're running, they have clients they're trying to service. Um, but those, the software providers into this space are looking themselves to transform their they're looking to transform from being a software vendors, to being SAS providers, the banks and financial institutions themselves are looking to transform from working on their own premises to benefit from the Alaska city and the scale and the optionality of, you know, that being in public cloud provides. So there's a lot of, um, parties themselves that are trying to transform and a lot of vendors into the financial space that are looking to transform. And in that time of a lot of change ecosystem is, is absolutely key. And so, um, the ISE and SAS providers, you know, providing their wares on the cloud for financial services is, is really just as important as those financial services institutions so that everyone can make that transition together. Um, and so that banks that are looking to digitally transform can, can leverage partners that are really at the forefront of that change in that innovation and in platforms for the industry. >>Would you say that there are, is this the first of many, I mean, are there going to be other vertical financial or other vertical IBM clouds or is the range of industries that really need that kind of specificity limited? >>I think it's, it's actually not limited, you know, though, I will say that within the space of industries that are heavily regulated, there's obviously a deeper need for sort of specific cloud embodiments and cloud implementation. So regulated industries like insurance, like telco healthcare, et cetera. Um, these are the ones I think, where there's the greatest opportunity to do verticals that are specific to industry. Um, but you know, as we look at this, this is absolutely part of an IBM cloud strategy to deliver industry specific clouds. And, and, and this comes from our decades of expertise, right? Even in financial services, being able to leverage, you know, those other entities within IBM that I mentioned, right. You know, our, our regulatory, um, background with companies, you know, having helped them address regulatory needs for specific industries, and then translating that into cloud and cloud technologies. Right. And, and then coming up from the other side, you know, in terms of the technologies themselves, we've partnered with key industries, um, to deliver security and data protection and cryptography technologies and such on premises. And we're contextualizing that now for cloud and public cloud deployments. And so it kind of brings together the pieces of decades of expertise and platforms and technology and regulations and contextualizes it into cloud. And I absolutely think that's, you know, an opportunity for, for other industries as well. >>Can you give us a bit of a preview? I mean, do you have specific industries in mind? Is there a time? >>Yeah, so, so, uh, late last year we did announce a second industry specific cloud initiative and that was IBM cloud for telco. So we have in that ecosystem now over 40 partners that are announced, that are working with IBM and with red hat, especially with, um, clients and partners that are looking to help with that transition into 5g and increasing use of IOT. 5g is really this disruptive opportunity for that industry. And, and also just for many other different types of companies and institutions that are looking to deploy with more efficiency, better operational efficiency, deploy with AI capabilities, really being able to do things that like cellular network edge, um, and the places that they're doing business using IOT devices and 5g will enable much of that to really transform and flourish. So a couple of the partners, initially, in addition to that ecosystem that I mentioned in cloud for telco, um, you know, we've got Samsung working with us, Nokia ATNT, et cetera. Um, and so, you know, these, these partnerships and, and capabilities around network edge, um, and specific capabilities in cloud for telco, um, are sort of that second, you know, public announcement that we've made around industry specific cloud, >>As far as your competitive position is concerned. I mean, are, are you taking away business from your competitors when you partner with these, these telcos and these banks, or is this an entirely new line of business that was not previously in the cloud? >>Yeah. You know, these are really, I think in, by and large new opportunities as we look at, you know, for example, how we as customers expect to engage with, um, you know, our bank, right. You know, we are looking to increasingly engage with a bank in a digital way, use our applications, use mobile devices. We're looking for, you know, individual bank outlets, uh, branch outlets of, of a banking institution to be increasingly smart, to service our needs, you know, more quickly, et cetera. Um, and so as we look at, you know, 5g and telco edge, it's about delivery of sort of smarter capabilities and such. I think much of it really is about in this digital transformation space about, you know, creating new capabilities, creating new experiences, creating new ways of engagement, um, and engagement and an opportunity to customize and personalize. Um, I think most of those are sort of new experiences and new capabilities for most companies. >>So speak about IBM's positioning right now. I mean, you're not one of the big three cloud providers to, to become one. Uh, but you do have as a big cloud business and, uh, you've, you've got the verticals, you've got the multi-cloud, uh, I know IBM is big, has been a big champion of multi-cloud. I mean, how is IBM distinctively positioned in the cloud market right now? >>Yeah. You know, we are all in, on hybrid cloud and AI. And if you listened to our CEO and chairman, you'll hear that it is a really consistent message. And he, since he came into his role as, as our CEO, um, so being all in, on hybrid cloud and AI, you know, we really are looking to help our clients transform into holistic cloud architecture. Right? So, so when I say all in, on hybrid cloud, I mean that, you know, it's, there's been a lot of sort of, I jokingly say random acts of cloud usage, right? People have ended up using cloud because there's some SAS function that they want, or some particular line of business has been highly motivated to pursue some service on a particular cloud. And hybrid cloud is really about taking a step back, having a holistic architecture for cloud consumption. And in that sense, you know, uh, clouds, uh, are IBM's partners. >>Um, and we're really looking to enable our clients to have consistency in their deployments to consolidate across their it estate and across their cloud deployments so that they can have, um, a common platform, so they can have efficiency in how their developers to like capabilities. So they can deploy more quickly with security and compliance patterns and have oversight over everything that's going on in a consistent way that really enables them to have that velocity in their business. And so when we then, you know, positioned things like industry cloud, we're leveraging IBM specific technologies to deliver differentiated capabilities and data privacy, data protection, security compliance, where these industries in public cloud. Yes. But it's in the context of helping our clients overall across all the different things. Some of which may not need all of that data privacy or, or, or be leveraging particular SAS content we're looking to help them really have cloud architecture have a holistic conversation across hybrid cloud. Um, and yet to still be able to choose particular cloud deployments on our cloud for industries, um, that enables data protection and policy for the most sensitive and, and enterprise grade things that they're looking to do at the core of their business. >>So speaking of hybrid hybrid cloud, I mean the major cloud providers, Amazon, Microsoft, Google, Oracle, and other one all have on premises offerings right now. Uh, several of them are working with telcos to expand their reach out into, uh, into co-location and into telecom, uh, data centers. Uh, all of these things were to enable is this distributed cloud fabric kind of a hybrid cloud fabric what's, IBM's play in this area. Uh, do you have a similar strategy or is it different? >>I really think, and I think you maybe wanted to get a little bit into sort of, you know, trends and predictions here in this conversation and, and, and, you know, we, we absolutely see that need for distributed cloud for cloud to really kind of be alive in all the places where it needs to be in, in all the places that someone is doing business and in a consistent way across cloud environments, um, to be one of those major trends, that's emerging as a really hot conversation. We have introduced IBM cloud satellite, um, that is IBM's hybrid cloud as a service platform, um, and enables our clients to leverage, um, uh, OpenShift and Kubernetes environments, developer tooling, uh, consistency in a cloud catalog, visibility and control over all their resources, um, across different environments. And to be able to run end, to end with consistency from on-premises to edge to different public cloud providers. >>Um, and this is absolutely something that across industries, but, you know, within also those industries that we're focused on in particular, um, that we're seeing a lot of interesting conversations emerge because if cloud is sort of everywhere, if cloud is distributed and can be on premises and in public cloud, it enables this consistency in this parody, um, really that sort of brings together that, that seamlessness, not just the random acts cloud usage, right? I mean, it means that using cloud, um, can be something that, that drives, you know, speed of release of new product. It means that you can deliver more capability and functionality into, you know, a retail outlet where you're doing business or a banking, you know, brick and mortar location. Um, you can have, you know, AI for it ops and understand what's going on across those different environments and ensure things are kept secure and patched and updated, and you're responding to incidents in efficient ways. Um, and so really having a consistent cloud environment and a distributed cloud environment across different locations, um, it's really key to leveraging the promises of what everyone had originally hoped to get out of out of cloud computing. >>Of course, one of IBM's distinctive, uh, advantages of this area is you've got a huge hardware install base out there. I mean, how do all those three 60 mainframes figuring it out, figure into this, >>Um, with the OpenShift capabilities in our Clara operations with red hat in this area, we are able to actually help our clients leverage Kubernetes and Linux and all those things, even on the mainframe. So across the mainframe family, the IBM power family, um, you know, where folks may also have AIX or IBMI deployments, people can now do Lennox, they can do open shifts, they can do Coopernetti's. Um, and we have core technologies that enable that really to be stitched together. And I think that's one of the unique perspectives that IBM has in this whole conversation about hybrid cloud. Um, there are many different definitions of hybrid cloud, but we really view it as stretching from the traditional enterprise. It, like you said, there's a lot of it out there and being able to also incorporate OpenShift and Kubernetes in a common cloud platform, um, on traditional enterprise, it on private cloud, on fresh deployments, on private cloud, Amazon public cloud, that really is the whole it estate. So when we talk about hybrid cloud, when we talk about distributed cloud, really talking about the entirety of VIT state, not just sort of new deployments of, of SAS or something like that. >>So as someone who's on the front lines of, you know, what customers are asking about cloud, do you see customer the questions that they're asking changing? Are they, are they their decision criteria changing for how they choose a cloud provider? >>Yeah. You know, I think that, um, there's definitely a lot more conversation, especially in this current era where there's an accelerated rate of cloud adoption. Um, there's a lot more conversation around things like security, um, data protection, data, privacy, being able to run in an environment that you trust, not just is it a cloud and what does it do, but can I trust it? Do I understand how my data is protected, how my workloads are secured? Um, you know, that's really why we started cloud for financial services because that industry shepherds such vital data, right? So the reason that they are highly regulated is because of the importance of what they are stewarding very important data and financial information. Um, so, you know, we began there with the cloud for regulated industries there with, with financial services, but I see that across all industries, I was participating on a panel, um, that was, uh, with a bunch of CEOs. >>And I was there interviewing some CEOs who were from a much more sort of consumer facing and also from, from foods industry, et cetera. And their conversation was exactly the same as I have with many other clients, which is that their cloud choices, their efficiency and cloud deployment now are largely driven by the ability to get to a secure posture and the ability to demonstrate their, to their internal security and risk teams that they understand their data protection, data, privacy posture. So we are seeing lots of pickup and, and conversation opportunity around confidential competing specifically. Um, and you know, that's really about enabling, uh, our clients to have full authority and privacy in their computing, in their code and their data, even when running in a cloud environment. And so I do see a shift everyone's more concerned about security, and I think we have great technologies and we've been working with core partners to establish and harden and, and create, um, generations of technology that can really answer those questions. >>I have to ask you about that term confidential computing. I haven't heard that before. What, what does that involve? >>Yeah. You know, it's, it is a buzzword to watch out here for an in 2021. So confidential computing means being able to run in an environment where there are others in a, in a cloud computing environment, for example, um, but still have full privacy and authority over what you're doing. So you are effectively in an enclave, uh, imagine yourself sort of protected and secured. And so our confidential competing technologies, um, we're actually on basically our fourth generation of, of, of the hardware and software technologies to create that strong degree of isolation. Um, this enables us to deliver a really rich portfolio. Um, frankly, the, the, the richest portfolio in the industry of actuals services delivered, um, using confidential, competing and secure enclaves. And so we can enable our customers to solution things in a way, for example, where their data, you know, can not even be visible to our cloud operators or where they, uh, retain, you know, full control over, you know, a database and have full privacy as they're running in that environment. Um, these are really great, um, you know, considerations, but they impact everything from health care financial services. Uh, we have other partners and clients who are working to protect consumer data, um, you know, through these means et cetera. And so, um, across different industries, everyone's really looking at this topic of data, privacy, data protection. Um, and so we have a whole suite and whole family of confidential competing based, uh, services that we're able to offer to, uh, offer those assurances and that privacy to them in their cloud competing. >>I do have to ask you about the multi-cloud because this is a topic of constant debate in the industry of whether customers want to move shift workloads across multiple clouds to protect themselves from lock-in. I mean, is that a fantasy? Is that real? Is that a too restrictive? Uh, this has been a key part of IBM strategy is enabling the multi-cloud. How do you see customer attitudes developing right now? How do they want to use multiple clouds or in fact, do they, are they, are they, uh, concentrating perhaps more of their workloads in one or two? >>Yeah. You know, we believe vendor locking goes against the true spirit of hybrid cloud, right. Um, that desire to have consistency across environments, um, that desire to, uh, and the business need to have, you know, continuity and resiliency and operations, et cetera. Um, and so I do see this as a really important topic, um, from the perspective of, you know, managing environments, I think in multi-cloud, um, I think folks are starting to realize that multicloud isn't necessarily a strategy. It's a reality. Um, people have deployments in lots of different cloud environments, um, that happened somewhat organically in many cases. And so the key question is how to then get to visibility and control over those resources. Um, I think kind of two of the, the, the core topics in that are multicloud management, um, you know, being able to understand, you know, clusters and virtual machines and other things that are deployed across different environments and manage them with a common set of policies, for example. >>Um, and then in addition to multicloud management, um, I, for it, operations is another really important topic in, in multi-cloud being able to respond to incidents, understand and analyze and leverage AI, um, for what's going on for understanding what's going on across those environments, um, is another really core topic. And then as you said, you know, distributed cloud is a means of getting that consistency, having a common, you know, control and deployment plane across those different environments, um, can help it not just be sort of accidental usage of multiple cloud environments, but very intentional deployment based on the needs of particular workloads to the environment that they're best suited to. Um, and, and that's really what you want to aim for. Um, not that multi-cloud is necessarily, um, you know, uh, uh, I guess I would say is, is it is a, um, it is a complexity that is manageable, um, through these, you know, new types of technologies and multicloud management and such like that, and cloud >>Well, uh, Hillary TIS, the season for predictions is January, uh, everyone's prognostic table of what the future will look like. What do you think are going to be the main trend lines in cloud this year? Yeah, >>You know, I, I sort of sprinkled a few in there as we were talking, but I really do think that, um, the conversation around hybrid cloud number one, how to have an open innovation ecosystem for cloud, where, um, you have a consistency across environments, you know, not just random acts of cloud usage, but intentional and holistic architecture. Um, I really see that as the transition to sort of the second wave of, of cloud adoption. Um, and then secondly, as we were talking earlier about security, right, everyone is wondering about data policy and data privacy. Um, we've always taken a strong stance that, you know, our client's data is, is, is their data. We are not going to be using their data to, you know, further develop our, um, you know, AI services on our cloud or something. Um, we have deployed technologies and confidential computing that enabled them to keep full control over their keys so that, you know, even our caught operators center have access to data, um, competing in secure enclaves, where they have a strong degree of isolation and full privacy and authority over their workload. >>I really think, you know, these two topics open and secure hybrid computing and with consistency across environments, but distributed cloud technology. Um, and secondly, security, I think these are really important topics for 2021, and they may seem a little bit obvious, but I think it's important as people look at this to look for technologies that are multiple generations into this journey, right. Um, you know, partner with, um, folks who, um, are, you know, committed, uh, very clearly to an open ecosystem and open source innovation on the one hand. Um, and secondly, you know, um, when we talk about security and data protection, you want to know that that provider is several generations into that journey. Um, you know, so you really know that that technology has been vetted out is that production scale and has the stable basis. And so I think this is the year when folks are transitioning from cloud adoption, uh, to consistency in cloud and security and privacy in cloud >>Final question. And it has nothing to do with cloud. You're an IBM fellow. And I see that term, uh, turn up occasionally with other other people I've spoken to from IBM, what is it? IBM fellow, how do you become one and what right. Privileges and responsibilities as an entail. >>Yeah. You know, it's an exciting opportunity to be an IBM fellow. There's about a hundred active IBM fellows, um, right now. Um, so there aren't too many of us, but there is a small community of us. Um, IBM fellow is IBM's highest technical designation within our technical population. Um, so I do have a role within our cloud business. Um, but as one of our technical leaders, um, get to interact with the other fellows, um, you know, work on strategy for IBM in technology overall as a company. Um, and I also get to sort of be a trusted advisor to many of our clients. And so, um, I get to with CTOs and CEOs and VP of application development, um, you know, kind of, kind of profiles and VP of, of it and things like that, um, in our different clients and really help them wrestle through those struggles, um, of, you know, future it transformation. >>And so, um, you know, part of what I enjoy most about sort of the role and, and the fellow role is, is being able to kind of be that trusted advisor to many of our clients. There's been so much change in this last year for everyone. Um, and being able to, you know, also, you know, help our technical population through that, you know, in various means and then help our clients, um, through all of that change and really being able to take and grasp onto the opportunities, um, that this last year has had in the way that we work has changed. And the way that companies are looking to deliver capabilities has changed. Um, so that's, for me, the exciting part of, of the role, >>Or you're wondering a hundred then, and you do a great job of articulating the IBM strategy and also the, uh, the cloud landscape, Hillary Hunter, VP and CTO, excuse me, CTO of IBM cloud. Thank you so much for joining us today on Cuban cloud. >>Thanks so much for having me. It was a pleasure. >>I'm Paul Gillan stick with us.

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome back to the cubes. Virtual coverage of VM World 2020 Virtual I'm John for your host of the Cube, our 11th year covering V emeralds. Not in person. It's virtual. I'm with my coast, Dave. A lot, of course. Ah, guest has been on every year since the cubes existed. Sanjay Putin, who is now the chief operating officer for VM Ware Sanjay, Great to see you. It's our 11th years. Virtual. We're not in person. Usually high five are going around. But hey, virtual fist pump, >>virtual pissed bump to you, John and Dave, always a pleasure to talk to you. I give you more than a virtual pistol. Here's a virtual hug. >>Well, so >>great. Back at great. >>Great to have you on. First of all, a lot more people attending the emerald this year because it's virtual again, it doesn't have the face to face. It is a community and technical events, so people do value that face to face. Um, but it is virtually a ton of content, great guests. You guys have a great program here, Very customer centric. Kind of. The theme is, you know, unpredictable future eyes is really what it's all about. We've talked about covert you've been on before. What's going on in your perspective? What's the theme of your main talks? >>Ah, yeah. Thank you, John. It's always a pleasure to talk to you folks. We we felt as we thought, about how we could make this content dynamic. We always want to make it fresh. You know, a virtual show of this kind and program of this kind. We all are becoming experts at many Ted talks or ESPN. Whatever your favorite program is 60 minutes on becoming digital producers of content. So it has to be crisp, and everybody I think was doing this has found ways by which you reduce the content. You know, Pat and I would have normally given 90 minute keynotes on day one and then 90 minutes again on day two. So 180 minutes worth of content were reduced that now into something that is that entire 180 minutes in something that is but 60 minutes. You you get a chance to use as you've seen from the keynote an incredible, incredible, you know, packed array of both announcements from Pat myself. So we really thought about how we could organize this in a way where the content was clear, crisp and compelling. Thekla's piece of it needed also be concise, but then supplemented with hundreds of sessions that were as often as possible, made it a goal that if you're gonna do a break out session that has to be incorporate or lead with the customer, so you'll see not just that we have some incredible sea level speakers from customers that have featured in in our pattern, Mikey notes like John Donahoe, CEO of Nike or Lorry beer C I, a global sea of JPMorgan Chase partner Baba, who is CEO of Zuma Jensen Wang, who is CEO of video. Incredible people. Then we also had some luminaries. We're gonna be talking in our vision track people like in the annuity. I mean, one of the most powerful women the world many years ranked by Fortune magazine, chairman, CEO Pepsi or Bryan Stevenson, the person who start in just mercy. If you watch that movie, he's a really key fighter for social justice and criminal. You know, reform and jails and the incarceration systems. And Malala made an appearance. Do I asked her personally, I got to know her and her dad's and she spoke two years ago. I asked her toe making appearance with us. So it's a really, really exciting until we get to do some creative stuff in terms of digital content this year. >>So on the product side and the momentum side, you have great decisions you guys have made in the past. We covered that with Pat Gelsinger, but the business performance has been very strong with VM. Where, uh, props to you guys, Where does this all tie together for in your mind? Because you have the transformation going on in a highly accelerated rate. You know, cov were not in person, but Cove in 19 has proven, uh, customers that they have to move faster. It's a highly accelerated world, a lot. Lots changing. Multi cloud has been on the radar. You got security. All the things you guys are doing, you got the AI announcements that have been pumping. Thean video thing was pretty solid. That project Monterey. What does the customer walk away from this year and and with VM where? What is the main theme? What what's their call to action? What's what do they need to be doing? >>I think there's sort of three things we would encourage customers to really think about. Number one is, as they think about everything in infrastructure, serves APS as they think about their APS. We want them to really push the frontier of how they modernize their athletic applications. And we think that whole initiative off how you modernized applications driven by containers. You know, 20 years ago when I was a developer coming out of college C, C plus, plus Java and then emerge, these companies have worked on J two ee frameworks. Web Logic, Be Aware logic and IBM Web Street. It made the development off. Whatever is e commerce applications of portals? Whatever was in the late nineties, early two thousands much, much easier. That entire world has gotten even easier and much more Micro service based now with containers. We've been talking about kubernetes for a while, but now we've become the leading enterprise, contain a platform making some incredible investments, but we want to not just broaden this platform. We simplified. It is You've heard everything in the end. What works in threes, right? It's sort of like almost t shirt sizing small, medium, large. So we now have tens Ooh, in the standard. The advanced the enterprise editions with lots of packaging behind that. That makes it a very broad and deep platform. We also have a basic version of it. So in some sense it's sort of like an extra small. In addition to the small medium large so tends to and everything around at modernization, I think would be message number one number two alongside modernization. You're also thinking about migration of your workloads and the breadth and depth of, um, er Cloud Foundation now of being able to really solve, not just use cases, you are traditionally done, but also new ai use cases. Was the reason Jensen and us kind of partner that, and I mean what a great company and video has become. You know, the king maker of these ai driven applications? Why not run those AI applications on the best infrastructure on the planet? Remember, that's a coming together of both of our platforms to help customers. You know automotive banking fraud detection is a number of AI use cases that now get our best and we want it. And the same thing then applies to Project Monterey, which takes the B c f e m A Cloud Foundation proposition to smart Knicks on Dell, HP Lenovo are embracing the in video Intel's and Pen Sandoz in that smart make architectural, however, that so that entire world of multi cloud being operative Phobia Macleod Foundation on Prem and all of its extended use cases like AI or Smart Knicks or Edge, but then also into the AWS Azure, Google Multi Cloud world. We obviously had a preferred relationship with Amazon that's going incredibly well, but you also saw some announcements last week from, uh, Microsoft Azure about azure BMR solutions at their conference ignite. So we feel very good about the migration opportunity alongside of modernization on the third priority, gentlemen would be security. It's obviously a topic that I most recently taken uninterested in my day job is CEO of the company running the front office customer facing revenue functions by night job by Joe Coffin has been driving. The security strategy for the company has been incredibly enlightening to talk, to see SOS and drive this intrinsic security or zero trust from the network to end point and workload and cloud security. And we made some exciting announcements there around bringing together MAWR capabilities with NSX and Z scaler and a problem black and workload security. And of course, Lassiter wouldn't cover all of this. But I would say if I was a attendee of the conference those the three things I want them to take away what BMR is doing in the future of APS what you're doing, the future of a multi cloud world and how we're making security relevant for distributed workforce. >>I know David >>so much to talk about here, Sanjay. So, uh, talk about modern APS? That's one of the five franchise platforms VM Ware has a history of going from, you know, Challenger toe dominant player. You saw that with end user computing, and there's many, many other examples, so you are clearly one of the top, you know. Let's call it five or six platforms out there. We know what those are, uh, and but critical to that modern APS. Focus is developers, and I think it's fair to say that that's not your wheelhouse today, but you're making moves there. You agree that that is, that is a critical part of modern APS, and you update us on what you're doing for that community to really take a leadership position there. >>Yeah, no, I think it's a very good point, David. We way seek to constantly say humble and hungry. There's never any assumption from us that VM Ware is completely earned anyplace off rightful leadership until we get thousands, tens of thousands. You know, we have a half a million customers running on our virtualization sets of products that have made us successful for 20 years 70 million virtual machines. But we have toe earn that right and containers, and I think there will be probably 10 times as many containers is their virtual machines. So if it took us 20 years to not just become the leader in in virtual machines but have 70 million virtual machines, I don't think it will be 20 years before there's a billion containers and we seek to be the leader in that platform. Now, why, Why VM Where and why do you think we can win in their long term. What are we doing with developers Number one? We do think there is a container capability independent of virtual machine. And that's what you know, this entire world of what hefty on pivotal brought to us on. You know, many of the hundreds of customers that are using what was formerly pivotal and FDR now what's called Tan Xue have I mean the the case. Studies of what those customers are doing are absolutely incredible. When I listen to them, you take Dick's sporting goods. I mean, they are building curbside, pick up a lot of the world. Now the pandemic is doing e commerce and curbside pick up people are going to the store, That's all based on Tan Xue. We've had companies within this sort of world of pandemic working on contact, tracing app. Some of the diagnostic tools built without they were the lab services and on the 10 zoo platform banks. Large banks are increasingly standardizing on a lot of their consumer facing or wealth management type of applications, anything that they're building rapidly on this container platform. So it's incredible the use cases I'm hearing public sector. The U. S. Air Force was talking about how they've done this. Many of them are not public about how they're modernizing dams, and I tend to learn the best from these vertical use case studies. I mean, I spend a significant part of my life is you know, it s a P and increasingly I want to help the company become a lot more vertical. Use case in banking, public sector, telco manufacturing, CPG retail top four or five where we're seeing a lot of recurrence of these. The Tan Xue portfolio actually brings us closest to almost that s a P type of dialogue because we're having an apse dialogue in the in the speak of an industry as opposed to bits and bytes Notice I haven't talked at all about kubernetes or containers. I'm talking about the business problem being solved in a retailer or a bank or public sector or whatever have you now from a developer audience, which was the second part of your question? Dave, you know, we talked about this, I think a year or two ago. We have five million developers today that we've been able to, you know, as bringing these acquisitions earn some audience with about two or three million from from the spring community and two or three million from the economic community. So think of those five million people who don't know us because of two acquisitions we don't. Obviously spring was inside Vienna where went out of pivotal and then came back. So we really have spent a lot of time with that community. A few weeks ago, we had spring one. You guys are aware of that? That conference record number of attendees okay, Registered, I think of all 40 or 50,000, which is, you know, much bigger than the physical event. And then a substantial number of them attended live physical. So we saw a great momentum out of spring one, and we're really going to take care of that, That that community base of developers as they care about Java Manami also doing really, really well. But then I think the rial audience it now has to come from us becoming part of the conversation. That coupon at AWS re invent at ignite not just the world, I mean via world is not gonna be the only place where infrastructure and developers come to. We're gonna have to be at other events which are very prominent and then have a developer marketplace. So it's gonna be a multiyear effort. We're okay with that. To grow that group of about five million developers that we today Kate or two on then I think there will be three or four other companies that also play very prominently to developers AWS, Microsoft and Google. And if we're one among those three or four companies and remembers including that list, we feel very good about our ability to be in a place where this is a shared community, takes a village to approach and an appeal to those developers. I think there will be one of those four companies that's doing this for many years to >>come. Santa, I got to get your take on. I love your reference to the Web days and how the development environment change and how the simplicity came along very relevant to how we're seeing this digital transformation. But I want to get your thoughts on how you guys were doing pre and now during and Post Cove it. You already had a complicated thing coming on. You had multi cloud. You guys were expanding your into end you had acquisitions, you mentioned a few of them. And then cove it hit. Okay, so now you have Everything is changing you got. He's got more complex city. You have more solutions, and then the customer psychology is change. You got to spectrums of customers, people trying to save their business because it's changed, their customer behavior has changed. And you have other customers that are doubling down because they have a tailwind from Cove it, whether it's a modern app, you know, coming like Zoom and others are doing well because of the environment. So you got your customers air in this in this in this, in this storm, you know, they're trying to save down, modernized or or or go faster. How are you guys changing? Because it's impacted how you sell. People are selling differently, how you implement and how you support customers, because you already had kind of the whole multi cloud going on with the modern APS. I get that, but Cove, it has changed things. How are you guys adopting and changing to meet the customer needs who are just trying to save their business on re factor or double down and continue >>John. Great question. I think I also talked about some of this in one of your previous digital events that you and I talked about. I mean, you go back to the last week of February 1st week of March, actually back up, even in January, my last trip on a plane. Ah, major trip outside this country was the World Economic Forum in Davos. And, you know, there were thousands of us packed into the small digits in Switzerland. I was sitting having dinner with Andy Jassy in a restaurant one night that day. Little did we know. A month later, everything would change on DWhite. We began to do in late February. Early March was first. Take care of employees. You always wanna have the pulse, check employees and be in touch with them. Because the health and safety of employees is much more important than the profits of, um, where you know. So we took care of that. Make sure that folks were taking care of older parents were in good place. We fortunately not lost anyone to death. Covert. We had some covert cases, but they've recovered on. This is an incredible pandemic that connects all of us in the human fabric. It has no separation off skin color or ethnicity or gender, a little bit of difference in people who are older, who might be more affected or prone to it. But we just have to, and it's taught me to be a significantly more empathetic. I began to do certain things that I didn't do before, but I felt was the right thing to do. For example, I've begun to do 25 30 minute calls with every one of my key countries. You know, as I know you, I run customer operations, all of the go to market field teams reporting to me on. I felt it was important for me to be showing up, not just in the big company meetings. We do that and big town halls where you know, some fractions. 30,000 people of VM ware attend, but, you know, go on, do a town hall for everybody in a virtual zoom session in Japan. But in their time zone. So 10 o'clock my time in the night, uh, then do one in China and Australia kind of almost travel around the world virtually, and it's not long calls 25 30 minutes, where 1st 10 or 15 minutes I'm sharing with them what I'm seeing across other countries, the world encouraging them to focus on a few priorities, which I'll talk about in a second and then listening to them for 10 15 minutes and be, uh and then the call on time or maybe even a little earlier, because every one of us is going to resume button going from call to call the call. We're tired of T. There's also mental, you know, fatigue that we've gotta worry about. Mental well, being long term. So that's one that I personally began to change. I began to also get energy because in the past, you know, I would travel to Europe or Asia. You know, 40 50%. My life has travel. It takes a day out of your life on either end, your jet lag. And then even when you get to a Tokyo or Beijing or to Bangalore or the London, getting between sites of these customers is like a 45 minute, sometimes in our commute. Now I'm able to do many of these 25 30 minute call, so I set myself a goal to talk to 1000 chief security officers. I know a lot of CEOs and CFOs from my times at S A P and VM ware, but I didn't know many security officers who often either work for a CEO or report directly to the legal counsel on accountable to the audit committee of the board. And I got a list of these 1,002,000 people we called email them. Man, I gotta tell you, people willing to talk to me just coming, you know, into this I'm about 500 into that. And it was role modeling to my teams that the top of the company is willing to spend as much time as possible. And I have probably gotten a lot more productive in customer conversations now than ever before. And then the final piece of your question, which is what do we tell the customer in terms about portfolio? So these were just more the practices that I was able to adapt during this time that have given me energy on dial, kind of get scared of two things from the portfolio perspective. I think we began to don't notice two things. One is Theo entire move of migration and modernization around the cloud. I describe that as you know, for example, moving to Amazon is a migration opportunity to azure modernization. Is that whole Tan Xue Eminem? Migration of modernization is highly relevant right now. In fact, taking more speed data center spending might be on hold on freeze as people kind of holding till depend, emmick or the GDP recovers. But migration of modernization is accelerating, so we wanna accelerate that part of our portfolio. One of the products we have a cloud on Amazon or Cloud Health or Tan Xue and maybe the other offerings for the other public dog. The second part about portfolio that we're seeing acceleration around is distributed workforce security work from home work from anywhere. And that's that combination off workspace, one for both endpoint management, virtual desktops, common black envelope loud and the announcements we've now made with Z scaler for, uh, distributed work for security or what the analysts called secure access. So message. That's beautiful because everyone working from home, even if they come back to the office, needs a very different model of security and were now becoming a leader in that area. of security. So these two parts of the portfolio you take the five franchise pillars and put them into these two buckets. We began to see momentum. And the final thing, I would say, Guys, just on a soft note. You know, I've had to just think about ways in which I balance work and family. It's just really easy. You know what, 67 months into this pandemic to burn out? Ah, now I've encouraged my team. We've got to think about this as a marathon, not a sprint. Do the personal things that you wanna do that will make your life better through this pandemic. That in practice is that you keep after it. I'll give you one example. I began biking with my kids and during the summer months were able to bike later. Even now in the fall, we're able to do that often, and I hope that's a practice I'm able to do much more often, even after the pandemic. So develop some activities with your family or with the people that you love the most that are seeing you a lot more and hopefully enjoying that time with them that you will keep even after this pandemic ends. >>So, Sanjay, I love that you're spending all this time with CSOs. I mean, I have a Well, maybe not not 1000 but dozens. And they're such smart people. They're really, you know, in the thick of things you mentioned, you know, your partnership with the scale ahead. Scott Stricklin on who is the C. C so of Wyndham? He was talking about the security club. But since the pandemic, there's really three waves. There's the cloud security, the identity, access management and endpoint security. And one of the things that CSOs will tell you is the lack of talent is their biggest challenge. And they're drowning in all these products. And so how should we think about your approach to security and potentially simplifying their lives? >>Yeah. You know, Dave, we talked about this, I think last year, maybe the year before, and what we were trying to do in security was really simplified because the security industry is like 5000 vendors, and it's like, you know, going to a doctor and she tells you to stay healthy. You gotta have 5000 tablets. You just cannot eat that many tablets you take you days, weeks, maybe a month to eat that many tablets. So ah, grand simplification has to happen where that health becomes part of your diet. You eat your proteins and vegetables, you drink your water, do your exercise. And the analogy and security is we cannot deploy dozens of agents and hundreds of alerts and many, many consoles. Uh, infrastructure players like us that have control points. We have 70 million virtual machines. We have 75 million virtual switches. We have, you know, tens of million's off workspace, one of carbon black endpoints that we manage and secure its incumbent enough to take security and making a lot more part of the infrastructure. Reduce the need for dozens and dozens of point tools. And with that comes a grand simplification of both the labor involved in learning all these tools. Andi, eventually also the cost of ownership off those particular tool. So that's one other thing we're seeking to do is increasingly be apart off that education off security professionals were both investing in ah, lot of off, you know, kind of threat protection research on many of our folks you know who are in a threat. Behavioral analytics, you know, kind of thread research. And people have come out of deep hacking experience with the government and others give back to the community and teaching classes. Um, in universities, there are a couple of non profits that are really investing in security, transfer education off CSOs and their teams were contributing to that from the standpoint off the ways in which we can give back both in time talent and also a treasure. So I think is we think about this. You're going to see us making this a long term play. We have a billion dollar security business today. There's not many companies that have, you know, a billion dollar plus of security is probably just two or three, and some of them have hit a wall in terms of their progress sport. We want to be one of the leaders in cybersecurity, and we think we need to do this both in building great product satisfying customers. But then also investing in the learning, the training enable remember, one of the things of B M worlds bright is thes hands on labs and all the training enable that happened at this event. So we will use both our platform. We in world in a variety of about the virtual environments to ensure that we get the best education of security to professional. >>So >>that's gonna be exciting, Because if you look at some of the evaluations of some of the pure plays I mean, you're a cloud security business growing a triple digits and, you know, you see some of these guys with, you know, $30 billion valuations, But I wanted to ask you about the market, E v m. Where used to be so simple Right now, you guys have expanded your tam dramatically. How are you thinking about, you know, the market opportunity? You've got your five franchise platforms. I know you're very disciplined about identifying markets, and then, you know, saying, Okay, now we're gonna go compete. But how do you look at the market and the market data? Give us the update there. >>Yeah, I think. Dave, listen, you know, I like davinci statement. You know, simplicity is the greatest form of sophistication, and I think you've touched on something that which is cos we get bigger. You know, I've had the great privilege of working for two great companies. s a P and B M where the bulk of my last 15 plus years And if something I've learned, you know, it's very easy. Both companies was to throw these TLS three letter acronyms, okay? And I use an acronym and describing the three letter acronyms like er or s ex. I mean, they're all acronyms and a new employee who comes to this company. You know, Carol Property, for example. We just hired her from Google. Is our CMO her first comments like, My goodness, there is a lot of off acronyms here. I've gotta you need a glossary? I had the same reaction when I joined B. M or seven years ago and had the same reaction when I joined the S A. P 15 years ago. Now, of course, two or three years into it, you learn everything and it becomes part of your speed. We have toe constantly. It's like an accordion like you expanded by making it mawr of luminous and deep. But as you do that it gets complex, you then have to simplify it. And that's the job of all of us leaders and I this year, just exemplifying that I don't have it perfect. One of the gifts I do have this communication being able to simplify things. I recorded a five minute video off our five franchise pill. It's just so that the casual person didn't know VM where it could understand on. Then, when I'm on your shore and when on with Jim Cramer and CNBC, I try to simplify, simplify, simplify, simplify because the more you can talk and analogies and pictures, the more the casual user. I mean, of course, and some other audiences. I'm talking to investors. Get it on. Then, Of course, as you go deeper, it should be like progressive layers or feeling of an onion. You can get deeper. It's not like the entire discussion with Sanjay Putin on my team is like, you know, empty suit. It's a superficial discussion. We could go deeper, but you don't have to begin the discussion in the bowels off that, and that's really what we don't do. And then the other part of your question was, how do we think about new markets? You know, we always start with Listen, you sort of core in contact our borough come sort of Jeffrey Moore, Andi in the Jeffrey more context. You think about things that you do really well and then ask yourself outside of that what the Jason sees that are closest to you, that your customers are asking you to advance into on that, either organically to partnerships or through acquisitions. I think John and I talked about in the previous dialogue about the framework of build partner and by, and we always think about it in that order. Where do we advance and any of the moves we've made six years ago, seven years ago and I joined the I felt VM are needed to make a move into mobile to really cement opposition in end user computing. And it took me some time to convince my peers and then the board that we should by Air One, which at that time was the biggest acquisition we've ever done. Okay. Similarly, I'm sure prior to me about Joe Tucci, Pat Nelson. We're thinking about nice here, and I'm moving to networking. Those were too big, inorganic moves. +78 years of Raghu was very involved in that. The decisions we moved to the make the move in the public cloud myself. Rgu pack very involved in the decision. Their toe partner with Amazon, the change and divest be cloud air and then invested in organic effort around what's become the Claudia. That's an organic effort that was an acquisition fast forward to last year. It took me a while to really Are you internally convinced people and then make the move off the second biggest acquisition we made in carbon black and endpoint security cement the security story that we're talking about? Rgu did a similar piece of good work around ad monetization to justify that pivotal needed to come back in. So but you could see all these pieces being adjacent to the core, right? And then you ask yourself, Is that context meaning we could leave it to a partner like you don't see us get into the hardware game we're partnering with. Obviously, the players like Dell and HP, Lenovo and the smart Knick players like Intel in video. In Pensando, you see that as part of the Project Monterey announcement. But the adjacent seas, for example, last year into app modernization up the stack and into security, which I'd say Maura's adjacent horizontal to us. We're now made a lot more logical. And as we then convince ourselves that we could do it, convince our board, make the move, We then have to go and tell our customers. Right? And this entire effort of talking to CSOs What am I doing is doing the same thing that I did to my board last year, simplified to 15 minutes and get thousands of them to understand it. Received feedback, improve it, invest further. And actually, some of the moves were now making this year around our partnership in distributed Workforce Security and Cloud Security and Z scaler. What we're announcing an XDR and Security Analytics. All of the big announcements of security of this conference came from what we heard last year between the last 12 months of my last year. Well, you know, keynote around security, and now, and I predict next year it'll be even further. That's how you advance the puck every year. >>Sanjay, I want to get your thoughts. So now we have a couple minutes left. But we did pull the audience and the community to get some questions for you, since it's virtually wanted to get some representation there. So I got three questions for you. First question, what comes after Cloud and number two is VM Ware security company. And three. What company had you wish you had acquired? >>Oh, my goodness. Okay, the third one eyes gonna be the turkey is one, I think. Listen, because I'm gonna give you my personal opinion, and some of it was probably predates me, so I could probably safely So do that. And maybe put the blame on Joe Tucci or somebody else is no longer here. But let me kind of give you the first two. What comes after cloud? I think clouds gonna be with us for a long time. First off this multi cloud world, you just look at the moment, um, that AWS and azure and the other clouds all have. It's incredible on I think this that multi cloud from phenomenon. But if there's an adapt ation of it, it's gonna be three forms of cloud. People are really only focus today in private public cloud. You have to remember the edge and Telco Cloud and this pendulum off the right balance of workloads between the data center called it a private cloud. The public cloud on one end and the telco edge on the other end. I think we're in a really good position for workloads to really swing between all three of those locations. Three other part that I think comes as a sequel to Cloud is cloud native. All of the capabilities a serverless functions but also containers that you know. Obviously the one could think of that a sister topics to cloud but the entire world of containers. The other seat, uh, then cloud a cloud native will also be topics, but these were all fairly connected. That's how I'd answer the first question. A security company? Absolutely. We you know, we aspire to be one of the leading companies in cyber security. I don't think they will be only one. We have to show this by the wealth on breath of our customers. The revenue momentum we have Gartner ranking us or the analysts ranking us in top rights of magic quadrants being viewed as an innovator simplifying the stack. But listen, we weren't even on the radar. We weren't speaking of the security conferences years ago. Now we are. We have a billion dollar security business, 20,000 plus customers, really strong presences and network endpoint and workload and Cloud Security. The three Coppola's a lot more coming in Security analytics, Cloud Security distributed workforce Security. So we're here to stay. And if anything, BMR persist through this, we're planning for multi your five or 10 year timeframe. And in that course I mean, the competition is smaller. Companies that don't have the breadth and depth of the n words are Andy muscle and are going market. We just have to keep building great products and serving customer on the third man. There's so many. But I mean, I think Listen, when I was looking back, I always wondered this is before I joined so I could say the summit speculatively on. Don't you know, make this This is BMR. Sorry. This is Sanjay one's opinion. Not VM. I gotta make very, very clear. Well, listen, I would have if I was at BMO in 2012 or 2013. I would love to about service now then service. It was a great company. I don't even know maybe the company's talk, but then talk about a very successful company at that time now. Maybe their priorities were different. I wasn't at the company at the time, but I can speculate if that had happened, that would have been an interesting Now I think that was during the time of Paul Maritz here and and so on. So for them, maybe there were other priorities the company need to get done. But at that time, of course, today s so it's not as big of a even slightly bigger market cap than us. So that's not happening. But that's a great example of a good company that I think would have at that time fit very well with VM Ware. And then there's probably we don't look back and regret we move forward. I mean, I think about the acquisitions we have made the big ones. Okay, Nice era air watch pop in black. Pivotal. The big moves we've made in terms of partnership. Amazon. What? We're announcing this This, you know, this week within video and Z scaler. So you never look back and regret. You always look for >>follow up on that To follow up on that from a developer, entrepreneurial or partner Perspective. Can you share where the white spaces for people to innovate around vm Where where where can people partner and play. Whether I'm an entrepreneur in a garage or venture back, funded or say a partner pivoting and or resetting with Govind, where's the white spaces with them? >>I think that, you know, there's gonna be a number off places where the Tan Xue platform develops, as it kind of makes it relevant to developers. I mean, there's, I think the first way we think about this is to make ourselves relevant toe all of that ecosystem around the C I. C. D type apply platform. They're really good partners of ours. They're like, get lab, You know, all of the ways in which open source communities, you know will play alongside that Hash E Corp. Jay frog there number of these companies that are partnering with us and we're excited about all of their relevancy to tend to, and it's our job to go and make that marketplace better and better. You're going to hear more about that coming up from us on. Then there's the set of data companies, you know, con fluent. You know, of course, you've seen a big I p o of a snowflake. All of those data companies, we'll need a very natural synergy. If you think about the old days of middleware, middleware is always sort of separate from the database. I think that's starting to kind of coalesce. And Data and analytics placed on top of the modern day middleware, which is containers I think it's gonna be now does VM or play physically is a data company. We don't know today we're gonna partner very heavily. But picking the right set of partners been fluent is a good example of one on. There's many of the next generation database companies that you're going to see us partner with that will become part of that marketplace influence. And I think, as you see us certainly produce out the VM Ware marketplace for developers. I think this is gonna be a game changing opportunity for us to really take those five million developers and work with the leading companies. You know, I use the example of get Lab is an example get help there. Others that appeal to developers tie them into our developer framework. The one thing you learn about developers, you can't have a mindset. With that, you all come to just us. It's a very mingled village off multiple ecosystems and Venn diagrams that are coalescing. If you try to take over the world, the developer community just basically shuns you. You have to have a very vibrant way in which you are mingling, which is why I described. It's like, Listen, we want our developers to come to our conferences and reinvent and ignite and get the best experience of all those provide tools that coincide with everybody. You have to take a holistic view of this on if you do that over many years, just like the security topic. This is a multi year pursuit for us to be relevant. Developers. We feel good about the future being bright. >>David got five minutes e. >>I thought you were gonna say Zoom, Sanjay, that was That was my wildcard. >>Well, listen, you know, I think it was more recently and very fast catapult Thio success, and I don't know that that's clearly in the complete, you know, sweet spot of the anywhere. I mean, you know, unified collaboration would have probably put us in much more competition with teams and, well, back someone you always have to think about what's in the in the bailiwick of what's closest to us, but zooms a great partner. Uh, I mean, obviously you love to acquire anybody that's hot, but Eric's doing really well. I mean, Erica, I'm sure he had many people try to come to buy him. I'm just so proud of him as a friend of all that he was named to Time magazine Top 100. But what he's done is phenomenon. I think he could build a company that's just his important, his Facebook. So, you know, I encourage him. Don't sell, keep building the company and you'll build a company that's going to be, you know, the enterprise version of Facebook. And I think that's a tremendous opportunity to do this better than anybody else is doing. And you know, I'm as an immigrant. He's, you know, China. Born now American, I'm Indian born, American, assim immigrants. We both have a similar story. I learned a lot from him. I learned a lot from him, from on speed on speed and how to move fast, he tells me he learns a thing to do for me on scale. We teach each other. It's a beautiful friendship. >>We'll make sure you put in a good word for the Kiwi. One more zoom integration >>for a final word or the zoom that is the future Facebook of the enterprise. Whatever, Sanjay, Thank >>you for connecting with us. Virtually. It is a digital foundation. It is an unpredictable world. Um, it's gonna change. It could be software to find the operating models or changing you guys. We're changing how you serve customers with new chief up commercial customer officer you have in place, which is a new hire. Congratulations. And you guys were flexing with the market and you got a tailwind. So congratulations, >>John and Dave. Always a pleasure. We couldn't do this without the partnership. Also with you. Congratulations of Successful Cube. And in its new digital format, Thank you for being with us With VM world here on. Do you know all that you're doing to get the story out? The guests that you have on the show, they look forward, including the nonviable people like, Hey, can I get on the Cuban like, Absolutely. Because they look at your platform is away. I'm telling this story. Thanks for all you're doing. I wish you health and safety. >>I'm gonna bring more community. And Dave is, you know, and Sanjay, and it's easier without the travel. Get more interviews, tell more stories and tell the most important stories. And thank you for telling your story and VM World story here of the emerald 2020. Sanjay Poon in the chief operating officer here on the Cube I'm John for a day Volonte. Thanks for watching Cube Virtual. Thanks for watching.

>> Narrator: From around the globe, it's theCUBE with digital coverage VMworld 2020. Brought to you by the VMware and its ecosystem partners. >> Everyone, welcome to "theCUBE's" virtual coverage of VMworld 2020. I'm John furrier with my cohosts, Stuart Miniman and Dave Vellante. 10 years covering VM it's our 11th Vmworld, 2010 was our first. Guys, this is an unusual event. It's not in person. Analyzing the keynotes and essentially the main announcements in the general sessions. Let's analyze VMworld 2020. I know it's hard, we're not in person. A lot of the hallway conversations we're grabbing on Twitter. Obviously we've got our Cube interviews on "theCube".net. There's a link on the front page of the VMworld site. Check it out and go check out all the dozens of interviews we're doing here with our community. But, the event is "Digital Foundation "For An Unpredictable World," that's the theme. Most of the announcements are around future architecture, but the blocking and tackling is around AI With NVIDIA. You got security and you got some really key announcements around networking Stuart. So guys, what's your take on all this? Because, VMware has to set the table. They've made good moves under Gelsinger, last few years, you're seeing another Q2 successful quarter, Dave, you're starting to see VMware's investments pay off Raghu and the brain child who are behind VMware making these calls Stuart. Guys, this is the VMware's moment to go to the next level. What's your thoughts, Dave, we'll start with you. >> Well, I mean, as always you saw VMware have on stage some really high profile guests. So John Donahoe from Nike, who knows a little bit about the enterprise, right? He left ServiceNow after a couple of years, stint. Ironically ServiceNow is pushing a hundred billion dollar valuation. Nike's at 150. But he's more comfortable in the consumer world. CEO of Nvidia. I think that's a key move, Nvidia the arm acquisition. That's going to be critical at the edge. You're seeing VMware just throw its blanket around telco Edge cloud with VMware cloud and AWS, which is doing very well. We're going to talk about that in our cube segment. You're, seeing them really go after hybrid. And so they're really about expanding their marketplace and they've done a great job of that. For translating engineering into customer value and getting paid for it. >> I want to come back to you Dave, on this edge because some of the key trends that I think we've been on now that the whole world is kind of realizing that they're kind of going mainstream. One's been the edge and you mentioned ARM, and we got analysis on that. Stuart, cloud native, we've been banging on the cloud native drone. We've been riding that wave, now with the Snowflake IPO just happened earlier, you starting to see cloud native, everything is coming true. It's kind of evolving in front of us right now and the whole world is now on board with this new mega trend enterprise computing companies, the largest IPO, since we enrolled, actually if you look at Snowflake, so you start to see cloud native and Enterprise Technology as the next wave, this is huge. And VMware is a big part of it. Your thoughts from how they did the show. >> Yeah, so John, one of the questions we always ask is, how fast are customers moving? Are the vendors moving along with them? Our friend and often co-hosts in "theCube" Keith Townsend said, and it was kind of faint praise. "VMware has moved at the speed of the CIO." Dave, I've heard you so many times this year say that the impact of the pandemic, that the financial ramifications has been an accelerator for many of the transformational journeys that we've been talking about. Move to cloud much faster adopting cloud native faster. Companies that have gone through their digital transformation, are able to react much faster. And to be honest, I'm not sure that VMware's moving fast enough. We've seen them do a number of big acquisitions over the last few years. Some of them are doing great. Carbon Black, great to see them go deeper into the security space. We've talked a lot about that before. Some of the others, Pivotal came out of VMware and got pulled back in. Datrium was a recent acquisition. What we hear inside is, some of those groups and product lines have been trimmed back. So as companies are looking to move faster, they're looking to AWS is that bar. And while AWS is a big partner for VMware and very important, how many people will get to VMware on AWS and say, well, maybe I can scale back what my VMware state is, or maybe those some environments. So, we've said for the longest time, cloud is a double edged sword for many players you need to partner as closely as you can to keep that momentum going forward. But VMware is also getting cut by some of those deals. Boy, John, there was a big news a couple of weeks before the show here about how the VMware cloud on AWS, it's doing great. And if it's a big deal, the channel often gets cut out of it and Amazon's taking it. So there definitely are some things that put up a little bit warning lights for me as to who is winning, when it comes to the partnership. >> That's a great point, the ecosystem in VMware, out of 10 years we've been covering here, this is our 11th year with ""theCube"," we've always had that ecosystems evolving. And I think cloud native to me really sees how that's driving them with cloud. We saw that, serverless, you starting to see cloud native. And what cloud proved Dave was that developers really shouldn't care about the infrastructure being abstracted away. But now you look at multiple clouds, with VMware's now moving into having a multicloud kind of backbone, connected to these environments as a key strategy. But then you look at the edge. The edge is about purpose built devices, run with software and data. So whether it's at an office on a person or in space, you have these devices that is really not about the hardware, it's about the software running on them. They have to run into multiple environments. They are purpose built. They do have to run like cloud native. The edge is the next opportunity for VMware with multicloud. What's your thoughts and reaction to that? >> Well, I think there's no question. And again, the relevance of Nvidia on stage, we think that ARM and Nvidia are going to dominate AI inferencing at the edge real time, and you're going to need much more efficient processing at the edge than you're going to get with traditional x86 architectures. So today what we're seeing is a lot of companies, Dell, HPE included a throwing over x86 boxes to the edge. I think they clearly realized that ARM is going to be a player there and now with the Nvidia move. And I think, multicloud is really something that is starting to become real. I've often said multi-cloud has been more of a symptom of multi-vendor than an actual strategy. Well, that's changing. I think people don't want lock-in. I think they realize that they've got the right horse for the right course, and you're seeing Red Hat and VMware emerge as real leaders there. You're seeing it in the data, you're seeing VMware cloud on AWS. Okay, that's in AWS, but you're also seeing VMware Cloud Foundation and it's other VMware cloud capabilities emerging as in demand, a lot of spending velocity, a lot of interest gaining share. And so these are becoming real and they're becoming fundamental strategies as to your points Stuart, CIO's are catching up. And it's, actually becoming not just slideware, but real aware. >> Well, I'll debate that whole idea that CIO's are catching up, but I'd say CSOs already caught up. CIO's are catching up to the CSO, but this brings up the question Stuart, of what a modern app is. And this is one of the highlights of the show, modern applications, and feels a lot like kind of window dressing to the cloud native conversation because Tanzu is built into it but cloud native really is. This is where the modern apps are being built. And it's about security, it's about multiple clouds. So the question for you is, are we going to have a cloudless architecture? Because we've got serverless. Because if you think about modern apps, should you really care about which cloud it runs on? I'm sure Andy Jassy would be saying he does care. And you see Google almost shying away from having that conversation. But, Tanzu kind of speaks to a cloudless strategy. Is that something you see? >> John you're absolutely right. The goal we want is... Developers don't even want to think about the infrastructure at all. So cloudless serverless, storageless, it would all be wonderful if they didn't have to do that. Now, of course, data is the lifeblood of my business. We need to make sure that things are secure all the time. Serverless is wonderful and there's even some early connections that VMware and others in the traditional infrastructure space are tying to serverless environment. But if I look at VMware, John, this still isn't, where the app dev team people come, this is an infrastructure show and it needs to be an enabler for what they're doing. If you look at how Kubernetes integrates into VMware, it's, take your virtual estate and let's put containers in it and it can be managed in that environment. Or we've got some new tools we're developing and do some of that multicloud world, as opposed to the companies that are born in the cloud, or have a heavy leaning towards the cloud. This might not be attractive for them, but in many ways, it's extending what VMware has done for a long time. They've, got strong position here. And that's why John, as you've said, all the other clouds want to partner with VMware ' 'cause they've got just so many customers there that they will be... it's hybrid today it will be hybrid in the future. The public cloud is a pool, but the edge is also a pool. So that those new architectures like are starting to be put forward with project Monterey, give people a roadmap as to where they can go. And VMware absolutely is a key player in that discussion. >> Yeah, well, I want to bring this up real quick on project Monterey and then I want to get Dave's reaction too what the buyers are thinking about. 'Cause you know, we can debate the speed of the CIO and I'd love to have that debate in a separate segment. I think,COVID and the security threats are forcing the businesses to really be focused because if you not thinking about having an environment where people are working remotely and that's with COVID, and I'll see with the security vectors, if you don't have an architecture Stuart, then you're going to be screwed. So I think project Monterey feels to me as that VMware answer like, look, and you can have an end to end architecture. I think there's marketechure there's architecture, that's one thought. So let's react to that Stuart. How much of that do you see as, look at, if you want to move faster CIO, because they have to now move fast. COVID showed that and the ones that aren't are failing and it doesn't change the buyer behavior, Dave. Stuart we'll start with you Monterey. >> John I don't think we know yet. It is more marketecture I'd say you got to get into the whisper suites, have those discussions. There was not as much, pre-briefing on this. We talked for awhile, VMware on AWS, those solutions, they take two or three years to bake out. So I think Monterey is a good vision. They have some of the architectural underpinnings, but I'm not ready to say, "hey, you want to deploy that gear in 2020? "That's the blueprint that you want to use going forward," but it gets VMware a seat at the table. >> I'm a big fan of the project I think it's about time someone put a stake in the ground. So this is what a modern architecture looks like and love to debate that further, we'll do that another time, Dave buyers. Were they buying the VMware? What's your data tell you in terms of where the customers are right now in 2020, you've been doing a ton of breaking analysis on COVID fire behavior, spending patterns. How does VMware potentially its ecosystem stack up with all these focused cloud native, multicloud modern app and security and networking? >> Well, let's start with some data and I'll bring up this slide, which is this kind of wheel slide. And it's ETR data that talks to what we call net score. And essentially what it's doing is it's taking the green in this wheel, which is spending more and it's subtracting the red, which is spending less or leaving. And then you see that in the middle is 53% are flat. So they've got a net score at 29. What does that mean? That means this is a mature company, which is amazing to me that VMware continues to really outperform from a financial standpoint. Yeah, so you could see that, we subtract the red from the green. This is again a sign of a mature company, but the key is they've got to continue to invest. Now they make a lot of inorganic acquisitions and some organic acquisitions, but Dell, as we know, is using VMware's cashflow to restructure its balance sheet to go public, et cetera. So if you could bring up the next slide, if you would guys. This is a slide I like to share. And it shows in the vertical axis, spending momentum, which is net score and the horizontal axis, which is presence in the survey. It's a 1200 person survey or a respondent survey, IT buyers. Look where VMware cloud on AWS is. So while VMware has a 29%, net score, look at VMware cloud on AWS, look at VMware cloud, which is cloud foundation. And you can see Red Hat is in there with OpenShift, even OpenStack, believe it or not and telcos. And then just see the hyperscalers in the upper right. Everybody wants to be AWS or Azure, and you sort of see Google there. But the point of this is the momentum in hybrid cloud and multicloud, and VMware really is clearly in a very, very strong position there. So, back to your point about project Monterey, they're basically using this hybrid cloud notion to go everywhere. It's that TAM expansion that I love to talk about. And it's the innovation. The big question is if Dell's going to be squeezing VMware R&D, will it be able to continue to execute on that translation of engineering into product and customer value? That's going to be a challenge. We saw it decades ago, where IBM got squeezed doing stock buybacks and dividends R&D is the lifeblood of innovation. And so that's something that we have to watch very closely, I think. >> Just to one quick followup, Dave, we're talking about the financial pieces here we are in 2020, there's been the discussions and I know you've dug into it a bunch. By the time we get to VMworld 2021 will the ownership of VMware and the role that Michael Dell has, change? And will that impact that investment capability that you talked about? The cashflow just, I know you've done a lot of research on this and could it help educate our audience? >> Well, it's going to change the income statement of Dell because they won't have VMware in there anymore. It won't change VMware's cashflow. It will affect VMware and Dell's balance sheet. And so two companies, one chairman and the chairman is going to say, okay, let's rebalance the balance sheets and create an equilibrium. So Dell has less debt, VMware has more debt and we'll try to thread the needle so they're both investment grade, which will lower the interest costs on that debt. But fundamentally, I don't think it's going to change anything in terms of strategy, go to market, the close relationship was between Dell and VMware. the thing to watch is VMware's, Dell's piggyback. And so I would rather see a lot of that go... once this equilibrium is reached, I want to see that go more in R&D. You know, again, remember IBM has spent $6 billion in R&D for the past two decades IBM was right there. They could have invested in cloud the same way Amazon did. And in the same way that Microsoft did, they were kind of equal 20 years ago. And look what happened. You don't want that to happen to VMware. They must continue to spend on R&D and innovate. >> Oh, well let's get to the innovation strategy in a second, but I want to ask the ecosystem question, because if you go back in history guys, and remember when Pat Gelsinger had that year, where he was basically given the presentation of his life, and he was in the hot seat and there's a lot of rumors spinning around. Since then it's just been nothing but exceptional performance on as a company executing, all new bets have been played it's almost like he'd cleaned house, put the ship in the right direction they've been smooth sailing since strategically making all the right moves. Okay now that VMware is back on their footings and Dave they have a solid foundation, what happens to the ecosystem because now that their houses in order, what do they do with the ecosystem? How do you see it evolving? >> Well look, I mean the ecosystem is looking for alternatives. I mean they have to participate in VMware. It's part of their go to market. You remember Todd Neilson used to say, "For every dollar spend on a VMware license, "15 or 20 or $18 is spent in the ecosystem," you don't hear that type of ratio anymore. Maybe it still exists I'm sure it does because it's a very vibrant and robust ecosystem but look, let's face it. Jeff Clark and Michael Dell are very clear. We are going to do a much closer integration than EMC ever did. And look at HPE we're looking for alternatives, driving to the edge. That's a huge opportunity for people. VMware becomes the ecosystems cash cow, but they need new growth and new strategic opportunities. And so they got to play nice, but there's more green fields out there. >> Stuart multicloud and cloud native with Tansu I think this is a really big opportunity to reset the ecosystem with services, because it used to be vendors, you bolt on some data backup and recovery, and you have a bunch of people doing storage around VMware, and these big white spaces, they're kind of huge white spaces. But now, when you start getting into cloud native, is a whole new landscape developing. Your thoughts because we're seeing some activity, certainly companies that are building on top of clouds that are building on top of clouds. So you've got Snowflake builds on Amazon now, other clouds and you have companies building on Snowflake. So you're starting to see this kind of new interconnected cloud native landscape, your thoughts. >> Yeah, well John there's definitely a huge tug of war in the ecosystem. One of the things that's been really nice if you were a VMware partner, let's take data protection. Huge ecosystem companies like Veeam, that were created in that environment. Hot companies like Rubrik and Cohesity grew very much working in VMware. All of them now play natively with the cloud environments, but they also get pulled along when you do a VMware Cloud on AWS, on Azure, on Google, on Oracle. So VMware will pull some of the ecosystem with them, but that tug of war is well, if the customer decides to just go fully cloud native, that software needs to work there and you would think that the vendor actually makes more money if it's just natively there, there's not that middleman extra piece. So VMware has a slice the pie and like Microsoft or Oracle behind them, can they justify that value for the license that you're paying when I go to some of these environments. So VMware does not have the pull in the ecosystem Dave talked a bit about it. HPE, Cisco, IBM, all companies that were early, early big huge proponent of VMware now very much are investing heavily in alternative. So VMware major player but no longer the gravity that everyone orbits around. >> Dave, what do you think? >> I want to bring up another data point if I could I want to share something with you. This is a slide that talks about... It asks customers. Why would you not work with VMware? Why would you replace them? What are the reasons? And three things stand out to me, it's not around cloud on the very left alignment with Cloud they've taken care of that with the AWS deal and even now Oracle. And you look at the right hand side, you see technology lead or lag that's innovation. Look at how that gray a couple surveys ago, has gone down to the yellow. So that's off the table, not a problem with innovation, look at total cost of ownership that's gone down, in terms of concerns. The one concern is price and that stays up there. If that's your biggest challenge, that your price is too high, that says to me that VMware's ticking all the boxes of value. So they're in a really, really good position if they can continue to innovate and that's why I've been harping so much on innovation and R&D and key acquisitions they're are great acquire of companies. So, I see this as this data is very, very positive for VMware. If your price is too high and that's your big objection, all you need as good salespeople. >> Or also you'd lower the price and you shift the value to say new features, say cloud native or security. I'll see the movement they've been making with NSX Gelsinger famous quotes are things like, "Kubernetes the dial tone of the internet, "and NSX is the crown jewel security is a do over." So NSX Dave and Stuart, this been a big part of their theme every year. That's a core feature for their security play. That's where they're going to put a lot of value in there. You guys, what's your thoughts on that because you've got Cisco in going that " mh we're frenemies" that's what Sanjay Poonen says, but are they really frenemies? >> But culturally VMware is an engineering driven company they a great engineering team and they don't have dogma about these new... they don't get defensive about some new trends. They embraced Kubernetes, they finally figured out Cloud, they were sort of defensive originally, but they realized hey, and they got religion. So that's the smart thing to do, go on to the next way maybe take a little bit of heat if you've got to go through a transition, but they've done a phenomenal job of making those transitions and staying relevant >> What's the big wave guys? What's the big wave that VMware's riding? The 10 years out we're in we've seen the movie, we've been through a decade with VM world coverage Stuart Dave next 10 years, what's the big wave or waves plural? >> Well, cloud is the first one that they addressed no doubt and then they are in my mind, the leader, or certainly a leader in multicloud. Edge I think there's a big question Mark there, AI is going to be everywhere. I think security is the really interesting opportunity for VMware and it's going to be... the big battle and security is, do you go after these point products like Okta and CrowdStrike and Zscaler and SailPoint who are really doing very well right now in the market or do you want an integrated stack that can be, you good enough VMware will say it's best to breed. We'll see that is a huge opportunity for them because security just keeps getting more and more critical. We've seen that with COVID. >> Let's do final word on your thoughts on the next 10 years for VMware looking back and learn and looking forward. >> Yeah well Dave just building off what you were just saying there, we said that the mission for Pat Gelsinger was, could he do for VMware, what Indel had done for the longest time, which has expanded Tam, expand what markets to go into, but not completely tick off the ecosystem and have them run away. So you saw here at the show, I mean Dave, Zscaler is a partner there. Security absolutely is a monster opportunity and John networking, networking, right. But it should be multibillion dollar business for VMware and they can eat some of that multicloud environment. we talk specifically about SD-WAN, now that cloud's doing well. So VMware that's software across environments, hybrid cloud multicloud, they're well positioned today, they just need to move a little bit faster and make sure they don't bleed talent and continue to support their customers because Dave, you're right how many times have people said, "Microsoft too expensive. "Oracle's too expensive." Here we are in 2020, they still have pretty strong positions VMware still has a very strong position. >> Well, I'll just add, I think it just shows what happens when you have a technical visionary, like Gelsinger in the lead and you have an industry visionary of not just technical, not just financial, but industry luminary like Michael Dell. These are very powerful... VMware and Dell have extremely capable management teams and you're seeing it in action >> And you've got Sanjay Poonen who's a great executer as well, he knows how to execute, he knows technology. Guys it's been a great run. I got to say for me personally, I'm so excited that, for 10 years that we've had "theCube" and the team covering the enterprise tech space, you can't be more excited. At least I'm so excited at the number one IPO in the history of wall street is an enterprise tech company. You can't see any more proof points that enterprise technology is now with the whole end to end architecture with the edge. We're talking about space, we're talking about cybersecurity. We're having now conversations with "theCube" that is now ranging... It reminds me David of the B to C world it's almost like consumerized. Now the enterprise technology is now so important that is now taking over the appeal on wall street entrepreneurs, and to me, VMware can tap into that on this next wave and this will be huge. Your thoughts on- >> I think the Snowflake IPO tells us several things. One, I totally agree, it says the technology is the now trend, no question about it. It also really underscores the cloud and it underscores the demand for issues other than the big Apple, Amazon, Google, et cetera. But it's really interesting to see as well the street continues to reward growth. I mean, Snowflake has as a valuation higher than Workday comparable to VMware. In fact it exceeded VMware on its first day. So that says that the street is rewarding growth. It's rewarding technology, it's rewarding cloud. And so that's that to me says great opportunities for companies like VMware who have both growth, great cash flow, they're profitable and they have a huge, huge customer base. So right now things look good for tech >> Dave enterprise tech is hot, it's sexy. Don't you think? Enterprise tech these days? >> Used to be storage is sexy. Now Enterprise tech sexy. >> You guys great run great analysis again, VMworld's virtual, we didn't have the face to face. We didn't have the hang space, but we have the virtual cube. Virtualization has come to "theCube". We have multiple tracks on our site, check out the content. Thanks for the analysis guys. Great keynote announcement coverage of the Vmworld 2020. This is "theCube". Thanks for watching. (digital music)

>> From the cube studios in Palo Alto in Boston, connecting with our leaders all around the world. This is a cube conversation. >> Hi, I'm Stu Miniman and welcome to theCUBE conversation. I'm coming to you from our Boston area studio. We've been digging into Pesando and the technology that there've been doing. Happy to welcome to the program. Steve Hershkowitz, he's the vice president of worldwide sales with Hewlett Packard enterprise, part of the HPC, HPE Pensando, relationship. Steve, thanks so much for joining us. >> Thanks for having me, Stu. I'm really happy to be here. >> So, obviously, Pensando made a bit of a splash when they came out at the end of 2019. We were really excited to have the Cube Apple launch, had some big name guests there, including your CEO, Antonio Neri. HPE has an investment and as an OEM of Pensando, So, bring us in us to why this partnership, why this investment from HPE standpoint? >> Well, thanks Stu. So obviously there were a lot of reasons why HP would be interested in a partnership with an innovative company like Pensando standing the fact that you have the MPLS team that had developed, industry changing technologies, for their previous company at Cisco, and leveraging their expertise and their market leadership to bring new innovation to the market, which was very interesting to us. As well as, the partnership that was launched between, Pensando's chairman John Chambers and our CEO, Antonio Neri. And when you hear them speak, they talk about, being partners for life. And so I think what's unique and what's interesting to us is you'll hear our CEO, Antonio talk a lot about HP's evolution as a company and how we are absolutely the edge to Cloud Platform as a service company. And when you have a strategy that involves servicing and consumption, you have to follow the innovation engine and the market transitions up to be able to satisfy your customers and get out in front of some of the market trends. And so the technology and the innovation that Pensando brings to the market is unlike anything else that's available today that anybody else can do. And we saw this as a great opportunity for us to really serve our customers as they move more of their data to the edge and want to apply and distribute a lot of the services to the edge where the data is created and of course, where most of the data is consumed. So it's an exciting partnership for us. We also have a board seat in the company and we're very, very excited about the opportunity and our customers are really, really excited as well about the partnership. >> Yeah, it's interesting. Those of us that have watched the industry long enough, I remember back, John Chambers for many years at HP was one of Cisco's biggest partners, for a long time. It really interesting what you're talking about, some of the new opportunities, what's going on with edge. Bring us inside the partnership a little bit. How has it been going? You've got about six months since it's unveiled to the world. What can you tell us so far, now that it's seen the light of day? >> Well, so the partnership is very, very strong and I think if you ask some of the senior executives on the Pensando side, including some of the board members, they would tell you that the partnership with HPE is different than any other relationship that they have with any other company. And it is that way because we created a very unique bond through our global business unit that's responsible for bringing these products to market and defining the roadmap to a very, very unique go to market strategy that we've developed where we actually have myself leading a go to market engine of people that are helping with the enablement, with the training, with the customer interactions, qualifying opportunities, and really helping to make a market for this technology as we do have first mover advantage. So we work very closely with all aspects of the Pensando team. Our business units are aligned, our development teams are aligned, our sales teams are very, very closely aligned. Their chief revenue officer, Frank Paloma and I are tied at the hip as we bring this technology to market together with both of our sales teams. And then as we look at further innovating together, we are completely locked and aligned on the combined roadmap. So it's a unique partnership. It creates unprecedented opportunity for HPE through this partnership to gain architectural control and help our customers gain architectural control over these next generation data center networks and really make a leapfrog over any of the technologies that are available today. Really two focuses, right? One is in helping the cloud service providers that want to better compete with the 800 pound gorillas, with a much better technology, a faster technology and a technology that leapfrogs anything that they've built. And the other side of that is our ability to help enterprises as we sell more as a service offerings and more edge solutions, help our enterprises make their environments much less complex, much more secure, and really help him improve business application performance so that they can sustain competitive advantage and make their data center networks look a lot more like what the hyperscalers have built, but only a lot better and a lot faster and a lot more secure. >> Yeah. I tell you, Steve, one of the things that I've always been really admired about HP over the years is baking these solutions together. It's not just a bunch of pieces, get them at the customer site and figure it out. But, I worked on standards, I've worked on a lot of solutions over the years and HP and now HPE always makes sure when it gets to the customer, it's together, it works. The time from getting it to being able to use it, really is minimized and that focus on simplicity is something that I've seen time and again from HPE. When it comes to the Pensando solution, how does this fit in with the HPE products? Where is it fit in? What are those solutions look like today? >> It's a really, really good question, Stu. So, initially we're going to market on our ProLiant Rack Server platform and we will launch in June, general availability. These solutions, we've been offering them to customers, very select number of customers through a private skew that we've created, but it fits initially within our Rack Server portfolio. But over time you'll see us start to begin to integrate this across the entire compute portfolio, where it makes sense and where there's a market and where customers are asking for it in addition to some integration points with different business units, right? So we have this relationship is so exciting that almost every business unit within HPE is interested in figuring out what the leverage points are to help solve customer problems and create opportunities for customers. So everything from our blade servers through synergy, through our Aruba relationship, through our software, stack, we're going to be doing a lot more integration. So I think you look out for initially an opportunity to install this digital services platform where you have a lot of Rack Servers and you want to reduce the complexity and really distribute a lot of those network services that are provided today in a centralized fashion. Through a number of different black boxes with a number of different operating systems, a number of different service contracts, move those to the compute edge at the exhaust of an HPE server on a platform that's factory integrated. And that we stand behind them, we support and sell. And you made another comment about support and how HPE does a really good job at making sure that when we sell a solution, it's a tightly integrated solution that scales, that works together and their customers can count on and versus something that's loosely coupled than disjointed as you see a lot of partnerships, which we try and avoid. So one of the parts of this relationship that's unique is that HPE is actually going to be supporting and providing the L1, and the L2 support for this product on a global basis. So when our customers have an issue or they need help, they come to us and it really rounds out the relationship. So it's not just taking a portfolio or a solution and putting it into an HP server. It's a factory integrated, factory tested solution with a lot of different integrations that we stand behind, that we sell and it scales. It'll work just as well with a hundred DSPs and servers as it will with a hundred thousand. >> I'd love to drill in a little bit on, really the customer use cases there. When you talk about edge computing, first of all, there's a lot of misnomers out in the industry. Edge can be anything from the telco edge. I've seen lots of things like network function virtualization. I've talked to HPE about those network offerings in the past through down to kind of IOT devices and everything in between. You said you've got some customers that have been getting early access. Are there any patterns or anything you can tell us about what are those edge use cases that this solution is a good fit for? >> Sure Stu. I think, when we started this journey six months ago, we initially thought that the most common use case that customers would be interested, especially the large New York financial customers were the large financial customers in general would be security, right? And so we had a lot of conversations about things like East West firewall, 70, 80% of the traffic as we talk to customers nowadays, is East West, right? It's application to application traffic, where it used to be North, South and that East West traffic, especially in a virtualized world with virtualized networks and virtualized servers, has created a lot of complexity for customers. So we thought originally, security, micro-segmentation, East, West firewall encryption would be the use cases. But interestingly enough, as we started to talk to customers, what we found out pretty quickly was that many of these customers have lost track because of the sprawl in the growth of the data, in their data centers. It really lost track of which applications are talking to which applications, which people are talking to which people. And in fact, we had some customers tell us that if we were to put your system in and turn on firewall services from day one, we could potentially... it would bring our network to its knees because we've lost track of where everything is going. So, what that's led itself to is a lot of customers very interested in the first use case, which is around visibility, observability and telemetry, giving our customers the ability to really graph out and see their application patterns. Because what you can't see, you really can't secure. And then, and then what we believe will happen over time and we're starting to see this play out, is that those customers, once they have a handle on what their traffic flows are and they have some good telemetry. They have some good services on being able to get that visibility. Then they'll start to define security policy based upon those traffic patterns and use the centralized Pensando policy services manager to distribute that policy, whether it be micro-segmentation for managing and securing, virtualized traffic or East West firewall. And then later on encryption and in a future release. So that's what we're seeing. >> Excellent. I'm like, Oh, great customer data already. What you've been saying really resonates customers today know that pace of change and keeping track of things is really challenging. It's gone from something that people might be able to get a handle to with, to knowing I have to have the automation, the systems the intelligence baked into the system to be able to handle it. All right. So June, this month, you've GA the product, congratulations on getting that. So tell us what you expect to see, the Pensando HP relationship. Are there expansions in the product line? We should be looking forward through the rest of 2020 or any other pieces as look forward? >> Sure. So, we are excited about the June, launch. We're also excited about the fact that we have our large customer show coming up this year, HP discover and we're going to be profiling the new conceptual partnership at discover, giving customers, the ability to see the power of this technology and how it can really help them solve their most pressing business and technical priorities. But we have a full roadmap that we've built out jointly with our partners at Pensando that involves taking this platform across different parts of our portfolio. One of the things that we'll be doing as we launch almost immediately is we're going to be putting this on our flagship GreenLake offer, right? Which is our, as a service offering. And so customers will have the ability to purchase Pensando's solutions under GreenLake and then over time we'll enhance that to provide the detailed metering that our customers have come to know through that platform. So I think you'll see a big splash there. And then there's a lot of work being done to leverage the SDKs that Pensando was providing to provide better integration into some of our workflows and some of our tools. And again, as I mentioned to you earlier, Stu, almost every business unit in our company has got meetings going on with Pensando trying to figure out how they can leverage the power of this technology to help HPE, gain and sustain longterm competitive advantage as customers move from these old legacy, three tier networks that are very complicated to run and they have to stitch the lands together. They have to go through different service chaining to get simple things done. I think there's going to be a lot of work going on across all of our business units to keep Pensando front and center and help us deliver this platform jointly so that we're differentiated. One other thing I think is important too is that we're also building a whole host of differentiated services around this platform. So things like professional services, training services, security assessment services, right. We're gaining a lot of experience through the trial and proof of concept process that we're going through right now and we're building runbooks right? To be able to sort of document exactly what we've learned as we do these big implementations and these trials and be able to bring those to our customers in the form of services that they can use as they look to migrate and modernize these legacy networks. >> Excellent. Well Steve, sounds like just the GA is step one. You and your team have your hands full with a lot of pieces. As you go to market with this and expand that offering, really impressive. We're taking this. Want to give you the final word Pensando HPE and what customers should be looking for? >> Stu, I think our customers should look forward to the GA launch coming out towards the end of June. And this technology is very exciting because if I had to sum it up in basically, three statements it would be this solution combined with what HP has the ability to deliver and support will absolutely help our customers simplify their environments, reduce a lot of operational complexity there by reducing significant cost as they look to rearchitect and build their next generation data center networks. Secondarily, this solution, our combined solution together will help every customer, especially those in the financial industry or highly regulated industries really substantially improve their security posture and reduce the amount of risk that they have in their environments. And then lastly, and I think almost as equally as important, is the fact that this solution, because it's built on a highly programmable, customization, that's traditionally used in networking technology, not necessarily seen at the exhaust of a server, is going to give our customers the ability to exponentially improve their application performance so that when business applications run faster, it gives them opportunities to get to market faster with their own products and drive additional revenue to sustained longterm competitive advantage. So we're excited about the opportunities to... it's going to be a lot of fun. >> Excellent. Well, Steve Hershkowitz, thank you so much for the update. Congratulations on the launch and absolutely we'll be keeping track of the progress. >> Thank you for your time. Happy to be here. >> All right. I'm Stu Miniman and thank you for watching theCUBE. (soft music)

>> Announcer: From theCUBE studios in Palo Alto and Boston, it's theCUBE, covering IBM Think brought to you by IBM. >> Hi, there, this is Dave Vellante. We're back at the IBM Think 2020 Digital Event Experience are socially responsible and distant. I'm here in the studios in Marlborough, our team in Palo Alto. We've been going wall to wall coverage of IBM Think, Kit Chee here is the Vice President, and general manager of Cloud and Enterprise sales at Intel. Kit, thanks for coming on. Good to see you. >> Thank you, Dave. Thank you for having me on. >> You're welcome, and Evaristus Mainsah, Mainsah is here. Mainsah, he is the general manager of the IBM Cloud Pack Ecosystem for the IBM Cloud. Evaristus, it's good to see you again. Thank you very much, I appreciate your time. >> Thank you, Dave. Thank you very much. Thanks for having me. >> You're welcome, so Kit, let me start with you. How are you guys doing? You know, there's this pandemic, never seen it before. How're things where you are? >> Yeah, so we were quite fortunate. Intel's had an epidemic leadership team. For about 15 years now, we have a team consisting of medical safety and operational professionals, and this same team has, who has navigated as across several other health issues like bad flu, Ebola, Zika and each one and one virus then navigating us at this point with this pandemic. Obviously, our top priority as it would be for IBM is protecting the health and well being of employees while keeping the business running for our customers. The company has taken the following measures to take care of it direct and indirect workforce, Dave and to ensure business continuity throughout the developing situation. They're from areas like work from home policies, keeping hourly workers home and reimbursing for daycare, elderly care, helping with WiFi policies. So that's been what we've been up to Intel's manufacturing and supply chain operations around the world world are working hard to meet demand and we are collaborating with supply pains of our customers and partners globally as well. And more recently, we have about $16 Million to support communities, from frontline health care workers and technology initiatives like online education, telemedicine and compute need to research. So that's what we've been up to date. Pretty much, you know, busy. >> You know, every society that come to you, I have to say my entire career have been in the technology business and you know, sometimes you hear negative toward the big tech but, but I got to say, just as Kit was saying, big tech has really stepped up in this crisis. IBM has been no different and, you know, tech for good and I was actually I'm really proud. How are you doing in New York City? >> Evaristus: No, thank you, Dave, for that, you know, we are, we're doing great and, and our focus has been absolutely the same, so obviously, because we provide services to clients. At a time like this, your clients need you even more, but we need to focus on our employees to make sure that their health and their safety and their well being is protected. And so we've taken this really seriously, and actually, we have two ways of doing this. One of them is just on to purpose as a, as a company, on our clients, but the other is trying to activate the ecosystem because problems of this magnitude require you to work across a broad ecosystem to, to bring forth in a solution that are long lasting, for example, we have a call for code, which where we go out and we ask developers to use their skills and open source technologies to help solve some technical problems. This year, the focus was per AVADA initiatives around computing resources, how you track the Coronavirus and other services that are provided free of charge to our clients. Let me give you a bit more color, so, so IBM recently formed the high performance computing consortium made up of the feYderal government industry and academic leaders focus on providing high performance computing to solve the COVID-19 problem. So we're currently we have 33 members, now we have 27 active products, deploying something like 400 teraflops as our petaflop 400 petaflops of compute to solve the problem. >> Well, it certainly is challenging times, but at the same time, you're both in the, in the sweet spot, which is Cloud. I've talked to a number of CIOs who have said, you know, this is really, we had a cloud strategy before but we're really accelerating our cloud strategy now and, and we see this as sort of a permanent effect. I mean, Kit, you guys, big, big on ecosystem, you, you want frankly, a level playing field, the more optionality that you can give to customers, you know, the better and Cloud is really been exploding and you guys are powering, you know, all the world's Clouds. >> We are, Dave and honestly, that's a huge responsibility that we undertake. Before the pandemic, we saw the market through the lens of four key mega trends and the experiences we are all having currently now deepens our belief in the importance of addressing these mega trends, but specifically, we see marketplace needs around key areas of cloudification of everything below point, the amount of online activities that have spiked just in the last 60 days. It's a testimony of that. Pervasive AI is the second big area that we have seen and we are now resolute on investments in that area, 5G network transformation and the edge build out. Applications run the business and we know enterprise IT faces challenges when deploying applications that require data movement between Clouds and Cloud native technologies like containers and Kubernetes will be key enablers in delivering end to end data analytics, AI, machine learning and other critical workloads and Cloud environments at the edge. Pairing Intel's data centric portfolio, including Intel's obtain SSPs with Red Hat, Openshift, and IBM Cloud Paks, enterprise can now break through storage bottlenecks and have unconstrained data availability in the hybrid and multicloud environments, so we're pretty happy with the progress we're making that together with IBM. >> Yeah, Evaristus, I mean, you guys are making some big bets. I've, you know, written and discussed in my breaking analysis, I think a lot of people misunderstand IBM Cloud, Ginni Rometty arm and a bow said, hey, you know, we're after only 20% of the workloads are in cloud, we're going after the really difficult to move workloads and the hybrid workloads, that's really the fourth foundation that Arvin you know, talks about, that you and IBM has built, you know, your mainframes, you have middleware services, and in hybrid Cloud is really that fourth sort of platform that you're building out, but you're making some bets in AI. You got other services in the Cloud like, like blockchain, you know, quantum, we've been having really interesting discussions around quantum, so I wonder if you can talk a little bit about sort of where you're allocating resources, some of the big bets that, that you're making for the next decade. >> Well, thank you very much, Dave, for that. I think what we're seeing with clients is that there's increasing focus on and, and really an acceptance, that the best way to take advantage of the Cloud is through a hybrid cloud strategy, infused with data, so it's not just the Cloud itself, but actually what you need to do to data in order to make sure that you can really, truly transform yourself digitally, to enable you to, to improve your operations, and in use your data to improve the way that you work and improve the way that you serve your clients. And what we see is and you see studies out there that say that if you adopt a hybrid cloud strategy, instead of 2.5 times more effective than a public cloud only strategy, and Why is that? Well, you get thi6ngs such as you know, the opportunity to move your application, the extent to which you move your applications to the Cloud. You get things such as you know, reduction in, in, in risk, you, you get a more flexible architecture, especially if you focus on open certification, reduction and certification reduction, some of the tools that you use, and so we see clients looking at that. The other thing that's really important, especially in this moment is business agility, and resilience. Our business agility says that if my customers used to come in, now, they can't come in anymore, because we need them to stay at home, we still need to figure out a way to serve them and we write our applications quickly enough in order to serve this new client, service client in a new way. And well, if your applications haven't been modernized, even if you've moved to the Cloud, you don't have the opportunity to do that and so many clients that have made that transformation, figure out they're much more agile, they can move more easily in this environment, and we're seeing the whole for clients saying yes, I do need to move to the Cloud, but I need somebody to help improve my business agility, so that I can transform, I can change with the needs of my clients, and with the demands of competition and this leads you then to, you know, what sort of platform do you need to enable you to do this, it's something that's open, so that you can write that application once you can run it anywhere, which is why I think the IBM position with our ecosystem and Red Hat with this open container Kubernetes environment that allows you to write application once and deploy it anywhere, is really important for clients in this environment, especially, and the Cloud Paks which is developed, which I, you know, General Manager of the Cloud Pak Ecosystem, the logic of the Cloud Paks is exactly that you'll want plans and want to modernize one, write the applications that are cloud native so that they can react more quickly to market conditions, they can react more quickly to what the clients need and they, but if they do so, they're not unlocked in a specific infrastructure that keeps them away from some of the technologies that may be available in other Clouds. So we have talked about it blockchain, we've got, you know, Watson AI, AI technologies, which is available on our Cloud. We've got the weather, company assets, those are key asset for, for many, many clients, because weather influences more than we realize, so, but if you are locked in a Cloud that didn't give you access to any of those, because you hadn't written on the same platform, you know, that's not something that you you want to support. So Red Hat's platform, which is our platform, which is open, allows you to write your application once and deploy it anyways, particularly our customers in this particular environment together with the data pieces that come on top of that, so that you can scale, scale, because, you know, you've got six people, but you need 600 of them. How do you scale them or they can use data and AI in it? >> Okay, this must be music to your ears, this whole notion of you know, multicloud because, you know, Intel's pervasive and so, because the more Clouds that are out there, the better for you, better for your customers, as I said before, the more optionality. Can you6 talk a little bit about the rela6tionship today between IBM and Intel because it's obviously evolved over the years, PC, servers, you know, other collaboration, nearly the Cloud is, you know, the latest 6and probably the most rel6evant, you know, part of your, your collaboration, but, but talk more about what that's like you guys are doing together that's, that'6s interesting and relevant. >> You know, IBM and Intel have had a very rich history of collaboration starting with the invention of the PC. So for those of us who may take a PC for granted, that was an invention over 40 years ago, between the two companies, all the way to optimizing leadership, IBM software like BB2 to run the best on Intel's data center products today, right? But what's more germane today is the Red Hat piece of the study and how that plays into a partnership with IBM going forward, Intel was one of Red Hat's earliest investors back in 1998, again, something that most people may not realize that we were in early investment with Red Hat. And we've been a longtime pioneer of open source. In fact, Levin Shenoy, Intel's Executive Vice President of Data Platforms Group was part of COBOL Commies pick up a Red Hat summit just last week, you should definitely go listen to that session, but in summary, together Intel and Red Hat have made commercial open source viable and enterprise and worldwide competing globally. Basically, now we've65 used by nearly every vertical and horizontal industr6y. We are bringing our customers choice, scalability and speed of innovation for key technologies today, such as security, Telco, NFV, and containers, or even at ease and most recently Red Hat Openshift. We're very excited to see IBM Cloud Packs, for example, standardized on top of Openshift as that builds the foundation for IBM chapter two, and allows for Intel's value to scale to the Cloud packs and ultimately IBM customers. Intel began partnering with IBM on what is now called Pax over two years ago and we 6are committed to that success and scaling that, try ecosystem, hardware partners, ISVs and our channel. >> Yeah, so theCUBE by the way, covered Red Hat summit last week, Steve Minima and I did a detailed analysis. It was awesome, like if we do say so ourselves, but awesome in the sense of, it allowed us to really sort of unpack what's going on at Red Hat and what's happening at IBM. Evaristus, so I want to come back to you on this Cloud Pack, you got, it's, it's the kind of brand that you guys have, you got Cloud Packs all over the place, you got Cloud Packs for applications, data, integration, automation, multicloud management, what do we need to know about Cloud pack? What are the relevant components there? >> Evaristus: I think the key components is so this is think of this as you know, software that is designed that is Cloud native is designed for specific core use cases and it's built on Red Hat Enterprise Linux with Red Hat Openshift container Kubernetes environment, and then on top of that, so you get a set of common services that look right across all of them and then on top of that, you've got specific both open source and IBM software that deals with specific plant situations. So if you're dealing with applications, for example, the open source and IBM software would be the run times that you need to write and, and to blow applications to have setups. If you're dealing with data, then you've got Cloud Pack to data. The foundation is still Red Hat Enterprise Linux sitting on top of with Red Hat Openshift container Kubernetes environment sitting on top of that providing you with a set of common services and then you'll get a combination of IBM zone open, so IBM software as well as open source will have third party software that sits on top of that, as well as all of our AI infrastructure that sits on top of that and machine learning, to enable you to do everything that you need to do, data to get insights updates, you've got automation to speed up and to enable us to do work more efficiently, more effectively, to make your smart workers better, to make management easier, to help management manage work and processes, and then you've got multicloud management that allows you to see from a single pane, all of your applications that you've deployed in the different Cloud, because the idea here, of course, is that not all sitting in the same Cloud. Some of it is on prem, some of it is in other Cloud, and you want to be able to see and deploy applications across all of those. And then you've got the Cloud Pack to security, which has a combination of third party offerings, as well as ISV offerings, as well as AI offerings. Again, the structure is the same, REL, Red Hat Openshift and then you've got the software that enables you to manage all aspects of security and to deal with incidents when, when they arise. So that gives you data applications and then there's integration, as every time you start writing an application, you need to integrate, you need to access data security from someplace, you need to bring two pipes together for them to communicate and we use a Cloud Pack for integration to allow us to do that. You can open up API's and expose those API so others writing application and gain access to those API's. And again, this idea of resilience, this idea of agility, so you can make changes and you can adapt data things about it. So that's what the Cloud Pack provides for you and Intel has been an absolutely fantastic partner for us. One of the things that we do with Intel, of course, is to, to work on the reference architectures to help our certification program for our hardware OEMs so that we can scale that process, get many more OEMs adopt and be ready for the Cloud Packs and then we work with them on some of the ISV partners and then right up front. >> Got it, let's talk about the edge. Kity, you mentioned 5G. I mean it's a really exciting time, (laughs) You got windmills, you got autonomous vehicles, you got factories, you got to ship, you know, shipping containers. I mean, everything's getting instrumented, data everywhere and so I'm interested in, let's start with Intel's point of view on the edge, how that's going to evolve, you know what it means to Cloud. >> You know, Dave, it's, its definitely the future and we're excited to partner with IBM here. In addition to enterprise edge, the communication service providers think of the Telcos and take advantage of running standardized open software at the Telco edge, enabling a range of new workloads via scalable services, something that, you know, didn't happen in the past, right? Earlier this year, Intel announced a new C on second generation, scalable, atom based processes targeting the 5G radio access network, so this is a new area for us, in terms of investments going to 5G ran by deploying these new technologies, with Cloud native platforms like Red Hat Openshift and IBM Cloud Packs, comm service providers can now make full use of their network investments and bring new services such as Artificial Intelligence, augmented reality, virtual reality and gaming to the market. We've only touched the surface as it comes to 5G and Telco but IBM Red Hat and Intel compute together that I would say, you know, this space is super, super interesting, as more developed with just getting started. >> Evaristus, what do you think this means for Cloud and how that will evolve? Is this sort of a new Cloud that will form at the edge? Obviously, a lot of data is going to stay at the edge, probably new architectures are going to emerge and again, to me, it's all about data, you can create more data, push more data back to the Cloud, so you can model it. Some of the data is going to have to be done in real time at the edge, but it just really extends the network to new horizons. >> Evaristus: It does exactly that, Dave and we think of it and which is why I thought it will impact the same, right? You wouldn't be surprised to see that the platform is based on open containers and that Kubernetes is container environment provided by Red Hat and so whether your data ends up living at the edge or your data lives in a private data center, or it lives in some public Cloud, and how it flows between all of them. We want to make it easy for our clients to be able to do that. So this is very exciting for us. We just announced IBM Edge Application Manager that allows you to basically deploy and manage applications at endpoints of all these devices. So we're not talking about 2030, we're talking about thousands or hundreds of thousands. And in fact, we're working with, we're getting divided Intel's device onboarding, which will enable us to use that because you can get that and you can onboard devices very, very easily at scale, which if you get that combined with IBM Edge Application Manager, then it helps you onboard the devices and it helps you divide both central devices. So we think this is really important. We see lots of work that moving on the edge devices, many of these devices and endpoints now have sufficient compute to be able to run them, but right now, if they are IoT devices, the data has been transferred to hundreds of miles away to some data center to be processed and enormous pass and then only 1% of that actually is useful, right? 99% of it gets thrown away. Some of that actually has data residency requirements, so you may not be able to move the data to process, so why wouldn't you just process the data where the data is created around your analytics where the data is spread, or you have situations that are disconnected as well. So you can't actually do that. You don't want to stop this still in the supermarket, because there's, you lost connectivity with your data center and so the importance of being able to work offline and IBM Edge Application Manager actually allows you so it's tournament so you can do all of this without using lots of people because it's a process that is all sort or automated, but you can work whether you're connected or you're disconnected, and then you get replication when you get really, really powerful for. >> All right, I think the developer model is going to be really interesting here. There's so many new use cases and applications. Of course, Intel's always had a very strong developer ecosystem. You know, IBM understands the importance of developers. Guys, we've got to wrap up, but I wonder if you could each, maybe start with Kit. Give us your sense as to where you want to see this, this partnership go, what can we expect over the next, you know, two to five years and beyond? >> I think it's just the area of, you know, 5G, and how that plays out in terms of edge build out that we just touched on. I think that's a really interesting space, what Evaristus has said is spot on, you know, the processing, and the analytics at the edge is still fairly nascent today and that's growing. So that's one area, building out the Cloud for the different enterprise applications is the other one and obviously, it's going to be a hybrid world. It's not just a public Cloud world on prem world. So the whole hybrid build out What I call hybrid to DoD zero, it's a policy and so the, the work that both of us need to do IBM and Intel will be critical to ensure that, you know, enterprise IT, it has solutions across the hybrid sector. >> Great. Evaristus, give us the last word, bring us home. >> Evaristus: And I would agree with that as well, Kit. I will say this work that you do around the Intel's market ready solutions, right, where we can bring our ecosystem together to do even more on Edge, some of these use cases, this work that we're doing around blockchain, which I think you know, again, another important piece of work and, and I think what we really need to do is to focus on helping clients because many of them are working through those early cases right now, identify use cases that work and without commitment to open standards, using exactly the same standard across like what you've got on your open retail initiative, which we're going to do, I think is going to be really important to help you out scale, but I wanted to just add one more thing, Dave, if you if you permit me. >> Yeah. >> Evaristus: In this COVID era, one of the things that we've been able to do for customers, which has been really helpful, is providing free technology for 90 days to enable them to work in an offline situation to work away from the office. One example, for example, is the just the ability to transfer files and bandwidth, new bandwidth is an issue because the parents and the kids are all working from home, we have a protocol, IBM Aspera, which will make available customers for 90 days at no cost. You don't need to give us your credit card, just log on and use it to improve the way that you work. So your bandwidth feels as if you are in the office. We have what's an assistant that is now helping clients in more than 18 countries that keep the same thing, basically providing COVID information. So those are all available. There's a slew of offerings that we have. We just want listeners to know that they can go on the IBM website and they can gain those offerings they can deploy and use them now. >> That's huge. I knew about the 90 day program, I didn't realize a sparrow was part of that and that's really important because you're like, Okay, how am I going to get this file there? And so thank you for, for sharing that and guys, great conversation. You know, hopefully next year, we could be face to face even if we still have to be socially distant, but it was really a pleasure having you on. Thanks so much. Stay safe, and good stuff. I appreciate it. >> Evaristus: Thank you very much, Dave. Thank you, Kit. Thank you. >> Thank you, thank you. >> All right, and thank you for watching everybody. This is Dave Volante for theCUBE, our wall to wall coverage of the IBM Think 2020 Digital Event Experience. We'll be right back right after this short break. (upbeat music)

>>Yeah, yeah, yeah, yeah, yeah. >>Welcome to this Special Cube conversation. We're gonna unpack and have a casual conversation around the big news that VM Ware just announced the sphere 7.7 point. Oh, or V. Sphere seven. Chris Prasad, senior vice president, General manager of the Sphere Cloud Platform Business unit. Paul Turner, VP of product. Guys, we just chatted about the big news. Congratulations. Um, the bottom line, if I'm a customer, I'm moving into the cloud. I see this as really an either an enabler or blocker. You guys actually think it's an enabler? Um, I'm not saying it's a blocker, but as a customer, I just need to know, Is it going to help me go faster? I'm going cloud, Which means I've been told I got to get on the cloud you got Amazon might have azure or multiple clouds with workloads sitting around. I gotta pull them all together and make them work. But right now, I just got to get my operations cloud native necessarily kind of pressure point. >>Oh, for sure. One of the biggest drivers that you see happen in the industry right now is kubernetes. Why? Why is kubernetes taking off communities taking off because it gives you cloud independence. It gives you the ability to run with same operating model, whether it's in Google Cloud, Amazon's Cloud, Microsoft Cloud or any other cloud service. What we're doing with version seven instruction bring that same kubernetes cloud independent operating model directly in divisor. So now all of your infrastructure platforms that are out there, 90% of I T environments are all kubernetes ready platforms on. That's really powerful. So what we've done is just taken a totally different kind of, um ah, scope on how cloud should be Cloud should be any cloud. It should be independent of one particular flavor of it and on developers should be able to work then in a much more agile way. >>You just see, I've been following VM where you know my career since it was founded. And, you know, with the Cube coverage over the years is they see the innovation. You guys do a lot of great stuff. Of course, we keep on our teams to minimum. And David Lantz he made some good calls with these v san. We saw the early stuff with V Cloud Air Kind of saw that kind of going in this direction, But it's been really innovation going on around you guys. I'll see with NSX has exploded and V Sphere has been the core thing. As you guys look at the cloud model, you guys made some good moves with Amazon. I've always felt that you guys could be that Switzerland that that layer of connection points between as enterprise really moved from old way of provisioning, too much more seamless operating model where they have a deal with cyber security. They gotta deal with all the stuff that's going to come from APS that's going to come from the APP store. When you bought Hep D Oh, I was like, That's actually really smart move. You started bringing that cloud native vibe into V sphere, and that's what's essentially happening here. Isn't it? >>Exactly. This is like the the coming out party for that, like it's V Sphere having all the hefty oh goodness embedded in it. And what they would see is that because we have such a huge presence in the on Prem space, this provides the fastest bad for customers to get to the cloud. So today I mean this? I don't want this point to be lost on the today. You know, we are running the same VM Ware Cloud Foundation, our on Prem on Amazon in Google and many of the same code base. Same code base, right? It's the exact same thing. So now what does that give you as a customer? It gives you the same operational model across all these clouds. Because customers today, we thought that they're setting up set of processes and tools or Amazon. Then you go to Azure. You're doing a different set than their training people to do that. And, you know, you could get into compliance and other issues where things fall through the cracks. Right? When you do that here, the same platform you said your policies wants it applies to all the clouds. You can move your workloads between clouds, right? That's a V motion. Essentially, we don't know the >>last kept on that one, but that's ideal would be crippled >>today. It is happening today and we have thousands of other partners which are the tier two service providers who are all also offering that. So we have a huge grab off these providers are in which we live in the same platform. >>Yeah, I want to add something else, actually, to that as well. Which is? This is an open platform, which is really powerful, right? This is based on kubernetes for developers, which means you can run on the V sphere platform, and that is a hybrid infrastructure that is the most ubiquitous infrastructure out there. But if you actually want to take your application actually deployed onto a native application Native Cloud, you can do that as well. Um, and so it's very important for us to keep the platform open while making broadest available on >>Dev ops. I mean, first, I totally agree. I think open wins, But the end of the day, I think this operating consistency is a big story because it's kind of like nuance. But it is really the most important customers care about, because if you're operating successfully seamlessly across cloud, it's better. So the question I have on the Dev Op side because the dream has always been infrastructure as code. So are you guys there with this? Do you consider this V Sphere seven kind of infrastructures code from a developer? Is it all being taken care of. How close are we in your mind's eye to infrastructure as code. >>Now it's 100% there. I mean, we made the announcement around Hangzhou, which is a set off other products and capabilities that we add to what the sphere has and that whole stack. And the solution is for this targeted at the modern developer. So we have all the capabilities that the developers need to do infrastructure as scored, to deploy their applications and deployed across all these clouds. >>And I want I want to add to that the infrastructure as code really has two parts to it. We look at how do I provide the developers infrastructure's code, which is what we're doing with kubernetes enablement and we have our V San product is available. In fact, all storage services from V sphere available through that andare NSX services are available through kubernetes. So you've got full infrastructures code for developers. But infrastructures code also means how do you deploy large scale infrastructures and manage them as code? How do people actually manage the operations and the deployment of services? And so you're right in your admin team actually have a full layer of enhanced lifecycle management provisioning off configurations and settings across infrastructure. All of that is now managed, as >>that's almost under the hood kind of stuff. But that's important because networking is going to play a big role in all of this from a security standpoint and also compute storage. Pretty much looking, looking good, but networking becomes a huge part of what's under the hood. >>Yeah, I mean, look at networking is what enables us to connect all these clouds together, right? And NSX being the underlying platform for us enables us to have one single layer across all these clouds with the same operating model. So NSX is very critical. >>I want to get your guys thoughts on some little history lesson here or scar tissue, as we say in the industry. You know, I remember back during the Hadoop days, 2010 the big data movement hit, and it was just going to save us all. It's gonna be great, but what ended up happening was this very hard to stand up these clusters and what happened was the commitment the vision was there, but it was just really hard to manage and stand up clusters and hire people to do this. So it has some use cases, but it just really kind of fell down. We saw Open Stack have a similar trajectory where good on paper, things had used cases. But it's just so hard to manage the trends. We're moving very, very fast. Cloud was here. Cloud Computing kind of took everyone by storm and just got rid of all those things. And so they kind of dying. >>No. But if you think about why open Stack didn't go anywhere in the end, it's because of the operational complexity right? It took a lot to set it up, and he had essentially invest a lot more than keeping it running right. And then what we're doing is saying you don't have to worry about that aspect because it's built into the platform that you already know, right? So we have taken that complexity out completely, and so you just have this fear. The administrators know how to set up and run and do life cycle, and this year, and you get kubernetes, go >>back to my original question. If that's the case, which, by the way, I think that's the way to think about it. Then I found the customer acceleration. I can draft up with the movement of cloud as fast as I can Go is having any kind of blockers. >>Fastest lamb like cloud >>ran to the cloud >>and fastest fastest ramp to a cloud operating model, which means that all of your developers can now actually run as quickly as they can, building their applications independent of I t. In a much more dynamic way. So you want to move to that cloud operating model. That's why Kubernetes is so important on the infrastructure side. We've actually, of course, made it a much easier platform to manage. But but it's the agility that matters. >>You guys have done some great innovation. I think you've got a good ear to the market, made some good moves. Looking good. This is a great vision. I got to get your guys take on the edge. Big discussion. Five g. Certain years love that kind of vision. But the end of the day and edge. Now, if you talk about cloud operations, everything's an edge, right? So what does edge mean for V sphere? How do you guys look at the edge of the network. And as these applications with the sensors or whatever happening at the edges, How does this V Sphere look at that? How do you guys look? >>So, uh, for let me just I would say that, you know, we we have, ah, data center edge, right? We just think of it as, um, retail stores, Starbucks, right. They have a kind of a mini data center application running there. That's one kind of edge that people talk about. Then you have the kind of the telco edge, but a lot of the crossing of the five year data is happening, right? Where the cell tower, Selden. We're done. And then you have the devices. You just the cars, the You know what you have at home and we're not right. And then and we can play across all of these because we have the platform. I don't know if you know, but ah, v sphere, as the platform is, is embedded in many devices today. It's in the army. It's embarking leaders it. So it has a form factor that can live in all these devices. We certainly play in the data center, so we're well suited to play the >>piece for anywhere. >>Yeah, that is exactly right. >>I think we're already We're already at the data center edge, as we've talked about that is, it's a very common deployment use case for earlier versions of the sphere, and it will continue to be the value that you guys it's not not new at all. I think the telco edge is actually a very interesting one, particularly the five G switch over. So you know what's happening. There is. There's a whole radio access networks and you're looking at the V Ron as a big initiative there. Which is how do we bring virtualization as a service they're into into those networks? Container deployments becomes very important as well. So we actually have a platform with version seven that actually can give the telco edge and five G network deployments a much more secure, predictable runtime environment. So that's really powerful as well. And it's containers and VMS because many of those applications that are deployed a telco edge our container based applications. >>It's interesting, you know, we talk about stacks in our last segment and you guys talking about the news and now having all these stacks later on. But think about the evolution of the industry with cloud. A whole new sets of services are emerging mentioned Telco Edge. So it just looks different. What's the same kind of open model that open systems brought us, but just a little bit different? It's a distributed cloud security computer, same concepts, new new capabilities. >>Not just to add to that, I mean the biggest innovation John is happening in the hardware layer by the computer, sort of getting disaggregated. There is a lot of acceleration that is going on that are specialized chips, a six effigies that are being built into the servers and and memory's getting pulled outside because the interconnect is getting fast enough for those things to happen. And so a lot of the innovation that we do as a platform that we didn't talk about much today is really a data layer, because we had to virtual eyes all of that and provide it to the level. Of course, >>yeah, it's great. It's a great architecture. I think I just add more complexity that's coming and you guys can help. Abstract away is you just look at cybersecurity and the role of data. You got to get in front of all these these trends to get that automation dev ops going because without any automation and software is just people can't handle the inbounds. It's a big problem. >>Yeah, you really need, um, your platforms to provide intrinsic security. It shouldn't be. It shouldn't be an option. It shouldn't be something the developers need to worry about. It should be something that's just part of the platform. And that's one of the things that we see is critical and actually built into Visa or seven. And you've seen that we've made a number of acquisitions recently. Actually, in the security piece, it's it's so that we can purposely build into your runtime environment, which is your VM environment container environment that we're running. We actually build in intrinsic security would build in a dynamic checking off the scope of an application in real time. Um, while those applications running, which is very key. >>Paul, >>Thanks for sharing all that great stuff. I want to get one final thought for both of you before we wrap up is we've been seeing and we've been reporting kind of the three ways of the cloud wave one was public. We all kind of know how that turned out. Awesome Cloud Native Born in the Cloud Wave two is well right now with a lot of intensity hybrid that's got a range of definitions. And then the third wave that's coming fast is multi cloud. So I want to get your thoughts on hybrid. A lot of energy, a lot of spend a lot of dollars investment in hard causing people in hybrid. I know we have different definitions. Is also different versions of hybrid. How do you define hybrid? And how does that become a path to the next wave? Or is it a path of next wave? What's your take? >>So it's absolutely the bad the next, I would say the hybrid, in our view, is the same platform running on which cloud do you want to use in our platform, as we talked about spans all the major clouds today giving the same operating model, and that's what we view as the hybrid cloud story. But the next one is the ability to mix native cloud workloads and services with that, and we already have a set of products and services that target that it's the times. A portfolio that I talked about is all focused on the multi cloud journey. So we kind of support both, and we're looking forward and aggressively going after the multi cloud. >>I think it's important to think of them as is completely complimentary of each other, right? A hybrid infrastructure platforms. So you know, a single I T organization can actually have one operating experience for their entire infrastructure, independent of Cloud Private Cloud Public Cloud Services. But Multi Cloud is about developers. It's about developers able to deploy their applications on any cloud environment that they need to, and they don't need to worry about infrastructure. So hybrid cloud is really about, ah, hybrid infrastructure that we can deploy everywhere, multi cloud and the services that we're providing to developers is all about how you could be independent of any cloud deployment that you want. It could be a hybrid infrastructure you deploy on. It could be on a standard public cloud service, >>and what's interesting is not. Not not all clouds are created equal. I mean, Amazon has much more capability in Azure and Google, but they're finding their swim lanes. But again it's all about the workload. The workload decides which cloud to work on. And that's right. You guys just agnostic? Yes, For the operator. Well, well, Thanks for the insight, guys. Appreciate you did a little post wrap of the news. Thanks for hiring. Thank you. Big news. These fear seven Q breakdown here. I'm John Furrier. Thanks for watching, >>right? Yeah.

>> From the SiliconANGLE media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hello, everyone, and welcome to this week's episode of theCUBE Insights, powered by ETR. In this Breaking Analysis, I want to do a quasi post-mortem on AWS re:Invent, and put the company's prospects into context using some ETR spending data. First I want to try to summarize some of the high-level things that we heard at the event. I won't go into all the announcements in any kind of great detail, there's a lot that's been written out there on what was announced, but I will touch on a few of the items that I felt were noteworthy and try to give you some of the main themes. I then want to dig into some of the spending data and share with you what's happening from a buyer's perspective in the context of budgets, and we'll specifically focus on AWS's business lines. And then I'm going to bring my colleague Stu Miniman into the conversation, and we're going to talk about AWS's hybrid strategy in some detail, and then we're going to wrap. So, the first thing that I want to do is give you a brief snapshot of the re:Invent takeaways, and I'll try to give you some commentary that you might not have heard coming out of the show. So, to summarize re:Invent, AWS is not being on rinsing and repeating, they have this culture of raising the bar, but one thing that doesn't change is this shock and awe that they do of announcements, it comes out each year, and it's obvious. It's always a big theme, and this year Andy Jassy really wanted to underscore the company's feature and functional lead relative to some of the other cloud providers. Now the overarching theme that Jassy brought home in his keynote this year is that the cloud is enabling transformation. Not just teeny, incremental improvement, he's talking about transformation that has to start at the very top of the organization, so it's somewhat a challenge and an appeal to enterprises, generally versus what is often a message to startups at re:Invent. And he was specifically talking to the c-suite here. Jassy didn't say this, but let me paraphrase something that John Furrier said in his analysis on theCUBE. He said if you're not born in the cloud, you basically better find the religion and get reborn, or you're going to be out of business. Now, one of the other big trends that we saw this year at re:Invent, and it's starting to come into focus, is that AWS is increasingly leveraging its acquisition of Annapurna with these new chip sets that give it higher performance and better cost structures and utilization than it can with merchant silicon, and specifically Intel. And here's what I'll say about that. AWS is one of the largest, if not the largest customer of Intel's in the world. But here's the thing, Intel wants a level playing field. We've seen this over the years, where it's in Intel's best interest to have that level playing field as much as possible, in its customer base. You saw it in PCs, in servers, and now you're seeing it in cloud. The more balanced the customer base is, the better it is for Intel because no one customer can exert undue influence and control over Intel. Intel's a consummate arms dealer, and so from AWS's perspective it makes sense to add capabilities and innovate, and vertically integrate in a way that can drive proprietary advantage that they can't necessarily get from Intel, and drive down costs. So that's kind of what's happening here. The other big thing we saw is latency, what Pat Gelsinger calls the law of physics. Well a few years ago, AWS, they wouldn't even acknowledge on-prem workloads, and Stu and I are going to talk about that, but clearly sees hybrid as an opportunity now. I'm going to talk more on detail and drill into this with Stu, but a big theme of the event was moving Outposts closer to on-prem workloads, that aren't going to be moving into the cloud anytime soon. And then also the edge, as well as, for instance, Amazon's Wavelength announcement that puts Outposts into 5G networks at major carriers. Now another takeaway is that AWS is unequivocal about the right tool for the right job, and you see this really prominently in database, where I've counted at least 10 purpose-built databases in the portfolio. AWS took some really indirect shots at Oracle, maybe even direct shots at Oracle, which, Oracle treats Oracle Database as a hammer, and every opportunity as a nail, antithetical to AWS's philosophy. Now there were a ton of announcements around AI and specifically the SageMaker IDE, specifically Studio, SageMaker Studio, which stood out as a way to simplify machine intelligence. Now this approach addresses the skillset problem. What I mean by that is, the lack of data scientists to leverage AI. But one of the things that we're kind of watching here is, it's going to be interesting to see if it exacerbates the AI black box issue. Making the logic behind the machines' outcomes less transparent. Now, all of this builds up to what we've been calling next-gen cloud, and we're entering a new era that goes well beyond infrastructure as a service, and lift and shift workloads. And it really ties back to Jassy's theme of transformation, where analytics approaches new computing models, like serverless, which are fundamental now, as is security, and a topic that we've addressed in detail in prior Breaking Analysis segments. AWS even made an announcement around quantum computing as a service, they call it Braket. So those are some of the things that we were watching. All right, now let's pivot and look at some of the data. Here's a reminder of the macro financials for AWS, we get some decent data around AWS financials, and this chart, I've showed before, but it's AWS's absolute revenue and quarterly revenue year on year with the growth rates. It's very large and it's growing, that's the bottom line, but growth is slowing to 35% last quarter as you can see. But to iterate, or reiterate, we're looking at a roughly 36 billion dollar company, growing at 35% a year, and you don't see that often. And so, this market, it still has a long way to go. Now let's look at some of the ETR tactical data on spending. Now remember, spending attentions according to ETR are reverting to pre-2018 levels, and are beginning to show signs of moderation. This chart shows spending momentum based on what ETR calls net score, and that represents the net percentage of customers that are spending more on a particular platform. Now, here's what's really interesting about this chart. It show the net scores for AWS across a number of the company's markets, comparing the gray, which is October '18 survey, with the blue, July '19, and the yellow, October '19. And you can see that workspaces, machine learning and AI, cloud overall, analytic databases, they're all either up or holding the same levels as a year ago, so you see AWS is bucking the trend, and even though spending on containers appears to be a little less than last year, it's holding firm from the July survey, so my point is that AWS is really bucking that trend from the overall market, and is continuing to do very very well. Now this next slide takes the same segments, and looks at what ETR refers to as market share, which is a measure of pervasiveness in the survey. So as you can see, AWS is gaining in virtually all of its segments. So even though spending overall is softening, AWS in the marketplace, AWS is doing a much better job than its peers on balance. Now, the other thing I want to address is this notion of repatriation. I get this a lot, as I'm sure do other analysts. People say to me, "Dave, you should really look into this. "We hear from a lot of customers "that they moved to the cloud, "now they're moving workloads back on-prem "because the cloud is so expensive." Okay, so they say "You should look into this." So this next chart really does look into this. What the chart shows is across those same offerings from AWS, so the same services, the percent of customers that are replacing AWS, so I'm using this as a proxy for repatriation. Look at the numbers, they're low single digits. You see traditional enterprise vendors' overall business growing in the low single digits, or shrinking. AWS's defections are in the low single digits, so, okay, now look at this next chart. What about adoptions, if the cloud is slowing down, you'd expect a slowdown in new adoptions. What this data shows is the percent of customers that are responding, that they're adding AWS in these segments, so there's a new platform. So look, across the board, you're seeing increases of most of AWS's market segments. Notably, in respondents citing AWS overall at the very rightmost bars, you are admittedly seeing some moderation relative to last year. So that's a bit of a concern and clearly something to watch, but as I showed you earlier, AWS overall, that same category, is holding firm, because existing customers are spending more. All right, so that's the data portion of the conversation, hopefully we put that repatriation stuff to bed, and I now want to bring in Stu Miniman to the conversation, and we're going to talk more about multicloud, hybrid, on-prem, we'll talk about Outposts specifically, so Stu, welcome, thank you very much for coming on. >> Thanks Dave, glad to be here with you. >> All right, so let's talk about, let's start with multicloud, and dig into the role of Kubernetes a little bit, let me sort of comment on how I think AWS looks at multicloud. I think they look at multicloud as using multiple public clouds, and they look at on-prem as hybrid. Your thoughts on AWS's perspective on multicloud, and what's going on in the market. >> Yeah, and first of all, Dave, I'll step back for a second, you talked about how Amazon has for years had shots against Oracle. The one that Amazon actually was taking some shots at this year was Microsoft, so, not only did they talk about Oracle, they talked about customers looking to flee their SQL customers, and I lead into that because when you talk about hybrid cloud, Dave, if you talked to any analyst over the last three, four years and you say "Okay, what vendor is best position in hybrid, "which cloud provider has the "best solution for hybrid cloud?" Microsoft is the one that we'd say, because their strong domain in the enterprise, of course with Windows, the move to Office 365, the clear number two player in Azure, and they've had Azure Stack for a number of years, and they had Azure Pack before that, they'd had a number of offerings, they just announced this year Azure Arc, so three, we've had at least three generations of hybrid multicloud solutions from Microsoft, Amazon has a different positioning. As we've talked about for years, Dave, not only doesn't Amazon like to use the words hybrid or multicloud, for the most part, but they do have a different viewpoint. So the partnership with VMware expanded what they're doing on hybrid, and while Andy Jassy, he at least acknowledges that multicloud is a thing, when he sat down with John Furrier ahead of the show, he said "Well, there might be reasons why customers "either there's a group inside "that has a service that they want, "that they might want to do a secondary cloud, "or if I'm concerned that I might fall out of love "with this primary supplier I have, "I might need a second one." Andy said in not so, just exactly, said "Look, we understand multicloud is a thing." Now, architecturally, Amazon's positioning on this is that you should use Amazon, and they should be the center of what you're doing. You talked a lot about Outposts, Outposts, critical to what Amazon is doing in this environment. >> And we're going to talk about that, but you're right, Amazon doesn't like to talk about multicloud as a term, however, and by the way, they say that multicloud is more expensive, less secure, more complicated, more costly, and probably true, but you're right, they are acknowledging at least, and I would predict just as hybrid, which we want to talk about right now, they'll be talking about, they'll be participating in some way, shape, or form, but before we go to multicloud, or hybrid, what about Kubernetes? >> So, right, first of all, we've been at the KubeCon show for years, we've watching Kubernetes since the early days. Kubernetes is not a magic layer, it does not automatically say "Hey, I've got my application, I can move it willy-nilly." Data gravity's really important, how I architect my microservices solution absolutely is hugely important. When I talk to my friends in the app dev world, Dave, hybrid is the way they are building things a lot, if I took some big monolithic application, and I start pulling it apart, if I have that data warehouse or data store in my data center, I can't just migrate that to the cloud, David Floyer for years has been talking about the cost of migration, so microservice architecture's the way most customers are building, a hybrid environment often is there. Multicloud, we're not doing cloud bursting, we're not just saying "Oh hey, I woke up today, "and cloud A is cheaper than cloud B, "let me move my workload." Absolutely, I had a great conversation with a good Amazon customer that said two years ago, when they deployed Kubernetes, they did it on Azure. You want to know why, the Azure solution was more mature and they were doing Azure, they were doing things there, but as Amazon fully embraced Kubernetes, not just sitting on top of their solution, but launched the service, which is EKS, they looked at it, and they took an application, and they migrated it from Azure to Amazon. Now, migrating it, there's the underlying services and everybody does things a little bit different. If you look at some of the tooling out there, great one to look at is HashiCorp has some great tooling that can span across multiple clouds, but if you look at how they deploy, to Azure, to Google, to AWS, it's different, so you got to have different code, there's different skillsets, it's not a utility and just generic compute and storage and networking underneath, you need to have specific skills there, so Kubernetes, absolutely when I've been talking to users for the last few years and saying "Why are you using Kubernetes?" The answer is "I need that eject lever, "so that if I want to leave AWS with an application, "I can do that, and it's not press a button and it's easy, "that easy, but I know that I can move that, "'cause underneath the pods, and the containers, "and all those pieces, the core building blocks "are the same, I will have to do some reconfiguration," as we know with the migration, usually I can get 80 to 90 percent of the way there, and then I need to make the last minute-- >> So it's a viable hedge on your AWS strategy, okay. >> Absolutely, and I've talked to lots of customers, Amazon shows that most cloud Kubernetes solutions out there are running on Amazon, and when I go talk to customers, absolutely, a lot of the customers that are doing Kubernetes in the public cloud are doing that on Amazon, and one of the main reasons they're using it is in case they do want to, as a hedge against being all-in on Amazon. >> All right, let's talk about Outposts, specifically as part of Amazon's hybrid strategy, and now their edge strategy as well. >> Right, so Azure Stack, I mentioned earlier from Microsoft has been out there for a few years. It has not been doing phenomenally well, when I was at Microsoft Ignite this year, I heard basically certain government agencies and service providers are using it and basically acting, delivering Azure as a service, but, Azure Stack is basically an availability zone in my data center, and Amazon looked at this and says "That's not how we're going to build this." Outposts is an extension of your local region, so, while people look at the box and they say, I took a picture of the box and Shu was like, "Hey, whose server and what networking card, "and the chipset and everything," I said "Hold on a second. "You might look at that box, "and you might be able to open the door, "but Amazon is going to deploy that, "they're going to manage that, "really you should put a curtain in front of it "and say pay no attention to what's behind here, "because this is Amazon gear, it's an Amazon "as a service in your data center, "and there are only a few handful of services "that are going to be there at first." If I want to even use S3, day one, the Amazon native services, you're going to just use S3 in your local region. Well, what if I need special latency? Well, Amazon's going to look at that, and see what's available, so, it is Amazon hardware, the Amazon software, the Amazon control plane, reaching into that data center, and very scalable, it's, Amazon says over time it should be able to go to thousands of racks if you need, so absolutely that cloud experience closer to my environment, but where I need certain applications, certain latency, certain pieces of data that I need to store there. >> And we've seen Amazon dip its toe into the hybrid on-prem market with Snowball and Greengrass and stuff like that before, but this is a much bigger commitment, one might even say capitulation, to hybrid. >> Well, right, and the reason why I even say, this is hybrid, but it's all Amazon, it is not "Take my private cloud and my public cloud "and tie 'em together," it's not, "I've taken cloud to customer" or IBM solution, where they're saying "I'm going to put a rack here "and a rack there, and it's all going to work the same." It is the same hardware and software, but it is not all of the pieces-- >> VMware and Outposts is hybrid. >> Really interesting, Dave, as the native AWS solution is announced first here in 2019, and the VMware solution on Outposts isn't going to be available until 2020. Draw what you will, it's been a strong partnership, there are exabytes of data in the VMware cloud on AWS now, but yeah, it's a little bit of a-- >> Quid pro quo, I think is what you call that. >> Well I'd say Amazon is definitely, "We're going to encroach a little bit on your business, "and we're going to woke you into our environment, too." >> Okay, let's talk about the edge, and Outposts at the edge, they announced Wavelength, which is essentially taking Outposts and putting it into 5G networks at carriers. >> Yeah, so Outposts is this building block, and what Amazon did is they said, "This is pretty cool, "we actually have our environment "and we can do other things with it." So sometimes they're just taking, pretty much that same block, and using it for another service, so one that you didn't mention was AWS Local Zones. So it is not a whole new availability zone, but it is basically extending the cloud, multi-tenant, the first one is done for the TME market in Los Angeles, and you expect, how does Amazon get lower latency and get closer, and get specialized services, local zones are how they're going to do this. The Wavelength solution is something they built specifically for the telco environment. I actually got to sit down with Verizon, this was at least an 18 month integration, anybody that's worked in the telco space knows that it's usually not standard gear, there's NEBB certification, there's all these things, it's often even DC power, so, it is leveraging Outposts, but it is not them rolling the same thing into Verizon that they did in their environments. Similar how they're going to manage it, but as you said, it's going to push to the telco edge and in a partnership with Verizon, Vodafone, SK, Telecom, and some others that will be rolling out across the globe, they are going to have that 5G offering and this little bit, I actually buy it from Amazon, but you still buy the 5G from your local carrier. It's going to roll out in Chicago first, and enabling all of those edge applications. >> Well what I like about the Amazon strategy at the edge is, and I've said this before, on a number of occasions on theCUBE Breaking Analysis, they're taking programmable infrastructure to the edge, the edge will be won by developers in my view, and Amazon obviously has got great developer traction, I don't see that same developer traction at HPE, even Dell EMC proper, even within VMware, and now they've got Pivotal, they've got an opportunity there, but they've really got a long way to go in terms of appealing to developers, whereas Amazon I think is there, obviously, today. >> Yeah, absolutely true, Dave. When we first started going to the show seven years ago, it was very much the hoodie crowd, and all of those cloud-native, now, as you said, it's those companies that are trying to become born again in the cloud, and do these environments, because I had a great conversation with Andy Jassy on air, Dave, and I said "Do we just shrink wrap solutions "and make it easy for the enterprise to deploy, "or are we doing the enterprise a disservice?" Because if you are truly going to thrive and survive in the cloud-native era, you've got to go through a little bit of pain, you need to have more developers. I've seen lots of stats about how fast people are hiring developers and I need to, it's really a reversal of that old outsourcing trend, I really need IT and the business working together, being agile, and being able to respond and leverage data. >> It's that hyperscaler mentality that Jassy has, "We got engineers, we'll spend time "on creating a better mousetrap, on lowering costs," whereas the enterprise, they don't have necessarily as many resources or as many engineers running around, they'll spend money to save time, so your point about solutions I think is right on. We'll see, I mean look, never say never with Amazon. We've seen it, certainly with on-prem, hybrid, whatever you want to call it, and I think you'll see the same with multicloud, and so we watch. >> Yeah, Dave, the analogy I gave in the final wrap is "Finding the right cloud is like Goldilocks "finding the perfect solution." There's one solution out there, I think it's a little too hot, and you're probably not smart enough to use it just yet. There's one solution that, yeah, absolutely, you can use all of your credits to leverage it, and will meet you where you are and it's great, and then you've got Amazon trying to fit everything in between, and they feel that they are just right no matter where you are on that spectrum, and that's why you get 36 billion growing at 35%, not something I've seen in the software space. >> All right, Stu, thank you for your thoughts on re:Invent, and thank you for watching this episode of theCUBE Insights, powered by ETR, this is Dave Vellante for Stu Miniman, we'll see you next time. (techno music)

>>Ly from San Diego, California. It's the cube covering to clock in cloud native con brought to you by red hat, the cloud native computing foundation and its ecosystem Marsh. >>Welcome back to San Diego. It's CubeCon cloud native con 2019. You're watching the cube. I'm streaming in my cohost for three days of live coverage is John Troyer and happened at welcome fresh off the keynote stage to my right is as hers as har who's the chief architect for telco at red hat and the man that was behind the scenes for a lot of it, hunting Garcia, telco solutions manager at red hat. A gentlemen, thanks so much for joining us and a very interesting keynote. So you know 5g uh, you know, my background's networking, we all watch it. Um, uh, let's say my telco provider already says that I have something related to five G on my phone that we grumble a little bit about, but we're not going to talk about that where we are going to talk about his keynote. Uh, we had a China mobile up on stage. Uh, maybe a, I love a little bit behind the scenes as you were saying. Uh, you know, the cloud native enabled not just uh, you know, the keynote and what it's living, but it gets a little bit of what >>well, sure. Um, look, when we took on this particular project to build a cloud native environment, uh, for five genes, we spent a lot of time planning and in fact this is a guy who actually did, you know, most of that work, um, to do a lot of planning in terms of picking different components and getting that together. Um, one of the things that cloud native environment allows us to do is bring things up quickly. The resilience part of it and the scale bar, right? Those are the two important components and attributes of cloud native. In fact, what happened last night was obviously one of the circuit breakers trapped and we actually lost power to that particular entire part that is onstage. I mean, nobody knows about this. I didn't talk about it as part of the keynote, but guess what? Through because it was cloud native because it was built in an automated fashion. People were able to work. Yes, they spent about three hours or so to actually get that back up. But we got it back up and running and we showed it live today. But what, I'm not trying to stress on how it failed a white fail. I'm trying to stress on how quickly things came back up and more important. The only cloud native way of doing things could have done that. Otherwise it wouldn't have been possible. All right. >>as, as the man behind the scenes there. Uh, it's great when we have, you know, here's actually the largest telco provider in the world. Uh, you know, showing what it, it's happened. So the title Kubernetes everywhere that telco edge gets a little bit of a hind, the scenes as to kind of the, the, the mission of building the solution and how you got it, you know, your, your, your customers, your partners, uh, engaged and excited to participate in. >> This is what's that very thirsting enterprise through realize. Actually, we took four months around, uh, 15 partners. And, uh, I would say partners >>because in that case, I'm taking, uh, uh, bell Canada and China mobile is a partners. They are part of the project. They were giving us a requirement, helping us all the way to it and together other, uh, more, uh, commercial partners. And of course, uh, as whatsover Allianz, like the team in the and the open interface, Allianz is, we're working with us is, was about 8,200 people working behind the scenes to get this work, uh, to have a lab, uh, directly, completely set up with a full, uh, Fuji containerized MoMA and network in France, uh, have the same in Montreal. Fuji and fogey called directly Montiel as well, uh, in one of our partners, uh, Calum labs and then bringing here the fudgey pop, uh, and have everything connected to the public cloud. So we have everything in there. So all the technology, all the mobile technology was there. >>We have enterprise technology that we're using to connect all the, all the labs and the, and the pop here with the public cloud to. Uh, um, technology and we have of course deployed as, as a, as our, uh, was mentioning. We deployed Kubernete is on the public cloud and we have as well Kubernete is open, rehabbed, open stack, uh, sorry. They had OpenShift container platform running on the, on all the premise in the lab in France and Davi, Marcia and they pop here. Uh, as I say, it was kind of an interesting enterprise. We have some hiccups last night, but uh, we were able to put that out the world telco, >>very specialized, very high service level agreements. I always want by phone to work and so a little bit, uh, uses different terminology than the rest of it sometimes. Right. And MP and VNF and VCO. But so maybe let's real to tell people a little bit like what are we actually talking about here? I mean, people also may not be following edge and, and teleco and what's actually sitting in their home town or, or it used to be embedded chips and none, it was a like Linux, but we're actually talking about installing Kubernetes clusters in a lot of different, really interesting typologies. That's absolutely true actually with the way how, and described it as perfect in the sense that we actually had Kubernetes clusters sitting in a data center environment in France, in Montreal and a remote pop that's sitting here on stage. So it was not just independent clusters but also stretch clusters where we actually had some worker nodes here that will attach back to the Montreal cluster. >>So the flexibility that it gave us was just awesome. We can't achieve that. Uh, you know, in general. But you brought up an interesting topic around, uh, you know, Getty or, uh, or, or the Teleco's operating environment, which is different and cloud native principles has, are a little bit different where they weren't very high availability, they weren't very high reliability with good amount of redundancy. Well, cloud native and actually those attributes to you. But the operational model is very different. You have to almost use codas throwaway hardware as throwaway and do a horizontal scale model to be able to build that. Whereas in the older environment, hardware was a premium switches and routers with a premium and you couldn't have a failure. So you needed all of those, you know, compliance of high availability and upgradability and so on. Here I'm upgrading processes in Linux, I'm upgrading applications. I can go deploy anytime, tear them down. Anytime I'm monitoring the infrastructure, using metrics, using telemetry. That wasn't the case before. So a different operating environment, but it provides actually better residency models than what telcos are actually yesterday. Yeah. >>Um, it's a complicated ecosystem to put all these pieces together. Uh, it gives, gives a little insight as to, uh, you know, red hats, leadership and uh, the, the, the partners that help you put it in. >>I will let him answer that. >>Um, is another, our first rodeo. We have been working on the vitro central office project with the, with the leaner foundation, uh, networking and Hopi NFV community for three last years. Uh, let's say, and the interesting part of this one is that even though we typically get with working with what the technology that they are using now, uh, we decided it's time to go with the technologies that we'll be using from now on. Um, but of course, uh, there is a set of partners that we need. We need to build the infrastructure from scratch. So for example, we have a Lenovo that was bringing all the, all the servers, uh, for the, for the set up in, uh, and here in San Diego, which actually the San Diego pub was built originally in Raleigh, Illinois, facilities and cheap all over the country to here for the show. Uh, and uh, then we have the fabric part. >>So the networking part, that's his cologne. Uh, this was working and bringing us the software defined fabric, uh, to connect all the different future. And then, then we start building this over layers on top. So we have, they had OpenShift container platform for the to completely deploy over metal servers. And then we start adding all the rest of the components, like the four G core fundamental Tran, like dividing for GFG radio from Altron, uh, together with Intel come Scott. That's his building. He started building the mobile part of it in Montreal, a San Diego. And then we add on top of that. Then we start adding the IMS core in the public cloud and then we connect everything through the by tuning. >>So a couple of things that I'd like to highlight in terms of coordinating partners, getting to know when they're ready, figuring out an onboarding process that gives them a sandbox to play with their configurations first before you connect them back into the main environment. Partitioning that working simultaneously with Malden, we had a Slack board that was full of messages every day. We had a nonstop, you know, every morning we had a scam call, right then it's like a scrum meeting every morning, just a daily stand up from eight 30 to nine 30. And we continue that all over the day. >>So as her, one of the things I really like to China mobile, uh, when they talked about in the keynote, first of all they said, you know, the problem is, you know, 20 by 2026, you know, it's, it's rainbows and unicorns and you know, 5g, uh, you know, will help enable so much around the planet. Seriously. Um, but you know, today she, she talked about major challenge in the rollout and infrastructure and service and capability. So, you know, help us understand a little bit the hype from reality of where we are with five G what we could expect. >>Absolutely. We are going through the hype phase right now, right? We are absolutely all the operators want FFG service to be delivered for sure. The reason why they want it to be delivered as they don't want to be left behind. Now there are some operators when we in more opportunistic and looking at 5g as a way to insert themselves into different conversations, IOT conversation, um, smart city conversation, right? Um, edge compute conversation. So they're being very strategic about how the big, the set of technologies, how they go deploy in that particular infrastructure and strategically offer capabilities and build partnerships. Nobody's going to rip out their existing three G four G network and replace that with 5g by 2026. It's not gonna happen, but what will happen by 2026 is an incremental phase of services that will be continued to offer. As an example, I'll give you, um, cable providers are looking at 5g as a way to get into homes because they can deploy in millimeter wave band a radio closer to the house and get a very high speed multi-gigabit high speed connection into the home without having to worry about what's your copper look like? >>Do I have fiber to the home? Do I have fiber to the business and so on. And so. So that's actually an interesting, >>okay, so you're saying solving the last mile issue in a very targeted use. >>Absolutely. So that's one. The other area might be running a partnership with BMW Toyota in, you know, some of these car companies to provide telemetry back from cars into their own, you know, operating environment so that they know what's going on, what's being used, how is it being used, how can we, how can we do provide diagnosis before the car actually begins to fail? Uh, big, you know, private environments like oil and gas mining, they are going to deploy public safety and security where all of these, you know, policemen on and safety personnel are required to now use body cams. Now you have video feeds coming from hundreds of people. There are deployment and incidents. Now you can take that information you need high speed broadband, you need the ability to analyze data and do analytics and provide feedback immediately so that they can actually act. So do three, this specific targeted use case, even a country like India where they're talking about using 5g for very specific use cases, not replacing your phone calling. >>I love that point. And it kind of ties back into some of the other things you were saying about the a agility and the operational model. And I relate it back to it. You know, my, again, my perception of some telco maybe 20 years old and that they had a tendency to do very monolithic projects. And you know, when you're out, when you're rolling out a infrastructure across the country, there's a certain, uh, monolithic nature to it. But you're talking about rolling out one, rolling out individual projects rolling out. That's also the advice we give to it. Try it with one thing, you know, try open shift with that one application and then also though, but it takes uh, the upskilling and the cultural model. So true with your telco petitioners who are, we're on Slack, they're with you and I, you know, I don't, I don't know if there's any relation, any other kinds of things to pull out about the mirror of, of the it transformation with telco transformation and colon Turner. That's actually a good point that you bring up, >>right? Look, the costs of building, if I have infrastructure from ground up is extremely high. If they want to completely revamp that. You're talking about replacing every single radio, you're talking about adding capacity more adding, you know, backhaul capacity and so on. So that isn't going to happen overnight. It's going to happen. It may take even more 10 years. Right. I mean in the most interesting thing, that stat stack that I saw was even LTE is going to grow. LTE subscriber count is going to grow for the next two years before it flatmates. So we're not going to LTE four G that's been around for a decade almost. Right. And it's going to still grow for the next two years, then it's going to flatten and then you'll start to see more 5g subscribers. Now back to the point that you were bringing up in terms of operational model change and in terms of how things will be I D principles applying it principles to telco. >>Um, there are still some challenges that we need to solve in Coobernetti's environment in particular, uh, to address the teleco side of the house. And in fact through this particular proof of concept, that was one of the things we were really attempting to highlight and shine a light on. Um, but in terms of operational models, what use applicable and it will now be totally applicable on the telco network, the CIC pipeline. There's delivery of applications and software that testing and integration, the, you know, um, operational models. Absolutely. Those, in fact, I actually have a number of service providers and telcos that I talked to who are actually thinking about a common platform for it end telco network. And they are now saying, okay, red hat, can you help us in terms of designing this type of a system. So I think what could speak to you a little bit about, uh, in this context is how the same infrastructure can be used for any kind of application. So you want to talk about how the community's platform can be used to deploy CNS and then to deploy applications and how you've shown that. Yeah. Well this is what, >>what we have been doing, right. So we have, uh, the coordinators platform does, is actually deploy and the services we have, all these partners are bringing their Cloudnative uh, function, uh, applications on top of that, that what we are calling the CNF the quantities and network functions. And basically what we were doing as well during the whole process is that we have, those partners are still developing, still finishing the software. So we were building and deploying at the same time and testing on the same time. So during the last four months, and even I can tell you even just to deny >>even last night, so the full CACD pipeline that we deploy in ID side, here it is in operation on the network side. >>Well yeah. So, so I, I want to give you the final word cause you know, John was talking about it cycles, you know, if you think about enterprises, how long they used to take to deploy things, uh, and what cloud data is doing for them. Uh, it sounds like we're going through a similar trends. >>Absolutely big in a big way. Um, telcos are actually deploying a private cloud environment and they're also leveraging public cloud in mind. In fact, sometimes they using public cloud as sandbox for their development to be completed until they get deployed and private. Claremont, they still need the private time enrollment for their own purposes, like security, data sovereignty and uh, you know, their own operational needs. So, but they want to make it as transparent as possible. And in fact, that was one of the things we want to also attempted to show, which is a public cloud today, a private cloud and bare metal, a private cloud on OpenStack. And it was like, and you know, it came together, it worked, but it is real. That's more important. And, uh, for enterprise and for telcos to be literally going down the same path with respect to their applications, their services and their operational models. I think this is really a dream come true. >>Well, congratulations on the demo. Uh, but even more importantly, congratulations on the progress. Great to see, uh, you know, the global impact that's going to have in the telecommunications market. Definitely look forward to hearing more than. >>Thank you very much. Thank you. The opportunity to >>actually be here. All right. For John Troyer, I'm Stu Miniman back with lots more here from CubeCon Claude, date of con 2019 in San Diego, California. Thanks for watching the queue.