welcome back to vmworld 2013 this is our special live coverage live in San Francisco California this is the cube so look at angles flagship program we go out for the advantix track the signal from the noise talk to the tech athletes talk to the entrepreneurs talk to the customers talk to the party stuff to the execs join my coach Dave vellante and we're here the very special guest Sanjay from the new GM of the end-user computing business unit at vmware welcome back to the queue your cube alumni from sa p of which we've done for four years as well it's our fourth year vmware great to see you on the cube nice to be back executive at vmware so what a year it's been the whole theme has changed in 10 years a 10 year anniversary of vmworld defy convention change and our past conversations you can handle that your have so much experience at s 8 p-9 convinced that's made a by convention and and it via more need some help at the end user computing here at strategic area so over to my data center hybrid cloud and use computing pat simplified it down to three areas you're heading up and use a computing strategic to say the least for vmware what's your take of what that is today where has it been and what motivated you to come to vmware from sa p which had great edge mobile mobile analytics everything's happening at sa be great mobility okay you know i think what got you I've always loved being here so so first off thank you guys for having me back i looked at the way in which end users have been using computing and as you know I've been in the business user space practically all my life analytics big data in the last 15 18 months in mobile so I saw this as a great opportunity for a company that was came to extend their brand from the data center to the desktop and whether desktop is going my views of the desktop obviously is not just the laptop for the future of these mobile devices so the desktop of today is clearly going to move into the cloud there's mobile and then there's machines your Tesla your thermostat your refrigerator these are all the ways in which we think about children and these are all going to be end-user computing devices as personal computers absolutely not there is more software today in your car and then there was in the first spacecraft 1970 I believe that or not so from our perspective and you think about the types of players and technology infrastructure players that are going to be strong I believe that needs to be three core disciplines to what that company you have in terms of technology now cover the other aspen tree one was management technology the other security and virtualization and quite frankly I felt the VMware had much better access than any of the other companies to make that happen for what end-user computing the other aspect of it was VMware's always been accompanied this value of innovation we look at the roots of this company it's an innovative product and go to market it's an innovation company I wanted to be close to an innovating team the culture is very much of innovation from product to go to market and then you know from a joking perspective thirdly my commute got 50 yards shorter I used to turn left now I turn right 50 yards shorter that was effective and the campus is nice at the end of this beautiful campus as well I was SI p but I got to ask you about the end-user computing cuz you know one of the things Dave and I were talking about earlier we love that stack that Joe Tucci Pat Gelsinger and Palmer's laid out in 2010 you know four years ago and it was some call it the software mainframe cloud computing and it was beautiful nice we all recognize dad bill in the stack but there was some misfires virtualization expanded he could flash date of fabric all kind of was happening software to find jumped in there and and changed a little bit didn't change the direction but the top of the stack it was some misfires and just didn't feel right was that a factor that come in with a clean sheet of paper was it a turnaround situation was it just ok reboot reset grow what was the the dynamics at the top of the stack that yeah I don't think first off you want to go I mean I felt this was a company that had a tremendous brand 500,000 customers you know 40 50 million but this is a company that's a brand this year so that's always a good place to start you're not creating a brand you're building on that brand that was very very important but as you looked at where the data center was going it's moving to the cloud and cloud computing and we have a clear strategy there to play in cloud computing that was very very important to me but in terms of where the end-user computing opportunity was I saw this as just being the first inning the VDI space virtual desktops it really is a two player market there and I think our competitor isn't innovating very much we have an opportunity to be the innovator and gain market share and overtake them to be number one I'm here to be the number one player in bi but mobile were just in the beginning of that inning if you would the first to second and it's a wide open market social computing we've got social constants a great product Tim Young's the CEO of that company he's the real deal and in social computing we think that those areas desktop mobile social and where they're going to go are at least the first three aspects of where a user computing has a lot a lot of opportunity just Sanjay we the first three shows we ever did we did emc world was the first one we ever did with the Cuban and right after that we did SI p sapphire and then vmworld was always interesting to contrast you know the sort of infrastructure shows the sapphire and we saw the transformation of SI p pretty substantially particularly after the sybase acquisition so you had you know serious management as top management thrust toward mobile and then you also the acquisition of sybase gave you some of the management technology the security and and maybe not the virtualization piece but you really began to change the discourse and you and the customers bought into it so that was I felt a catalyst this there's an outside observer is that true and then what's the catalyst here was it cleaning up sort of what I used to call the misfit toys creating the pivotal piece and getting more focused bringing in the new leader what is that that catalyst you know I think force I was very blessed to see a transformation of saap from systems of record to systems of engagement I was very involved as you know in the analytics to the data and the mobile business much of that catalyst is still valid systems of record the systems our engagement so a lot of what's happening the end user computing area is those systems of engagement that continues that's abroad but then as I looked at the IT trends or the Big Data of mobile of social of cloud there's at least three or four of those now that we have an opportunity to play here in a big way yes there was an opportunity to redefine things with almost a clean slate in many areas and a fantastic team both patent and joe tucci were involved in recruiting me here have a grand vision and a great vision of where this is going they're fantastic executives and then the rest of the executive team from called to jonathan to everybody else here world-class people that i felt i could just culturally fit in very well with and in this area you know as you know business users stuff and end-user computing has been my passion me so it's a very natural area for me too hopefully extend what I've done in the last 15 20 years into something like their help to melt this company and then from a revenue perspective if we can double the revenue this company with hopefully a good par they're coming from and use your computer this will continue to be a very very hopefully well market capitalized company and also you mentioned SI p about you know the cloud they've had some cloud issues we've seen some ships and some some things they ever the mobile they were kicking butt on we saw that right away and you're in that but I looking at your view on the competition because Damon are talking yesterday are the first day about Ballmer's resignation and just did a reorg announcement goodly intelligent edge of the network so the conversation was disruptor or sustainer you know who are you right i mean vmware technology driven company is not sustaining anything still disrupting microsoft obviously kind of sustaining the status quo so so the question is who's your competitors is it a Microsoft is it someone else who's in your rear-view mirror and who's who you looking to laugh on the field I mean clearly if you look at each of our businesses there are different ones but in the core data center stuff traditionally computer in Microsoft but we are far and ahead a market share leader you know in that at least seventy percent plus so that's a very strong position there in the way the cloud is going it's open mark it's a complete open opportunity I think you heard from Pat Gelsinger a message where we're going to embrace an appropriate places OpenStack so you're going to see this not be a combative but a place where it's it's collaborative in some places in the end user computing area we are in some areas number two behind Citrix but I view it as a huge opportunity we're bigger them and as a brand as a company and my ambition here is to play to be number one and in the areas of mobile there is no clear leader it's very much an open area especially relates to mobile management of mobile security in the enterprise mobile and the good news i think in the end user computing especially as you think about the new aspects of mobile there is no one device operating system in the laptop world you guys both have max but windows is still about eighty ninety percent market share their in the device operating world of mobile it's a heterogenous world already from the get-go iOS Android Windows Mobile and that actually creates much more of an opportunity for a Switzerland type of player to be a leader in management security and virtualization so much of those dynamics you know I think requires to being innovative but my gentle attitude on competitors is you don't obsess about it clearly you have to UM ambition to be number one and competition keeps you honest but I'm much more focused not on who's in the rearview mirror competitors I describe some of them in that league but a lot of where we believe we should be going you were talking a little bit before I caught the Internet of Things at the industrial internet and Cisco calls the internet of everything i love the cube because we get to do all these great events we were at the GE industrial internet launch and and I know pivotal so they're a big partner in a part of that right so I wanted to scrape because get to talk to all the smartest people like you and extract their their knowledge so I want to understand the roadmap for the customer so you take down the enterprise with what used to be known as a VDI is it a parallel path to the Internet of Things or the industrial Internet talk about that look I think you know first off you've got to think about where the desktop is today and where the desktop is going because that's the primary aspect of where people have traditionally been using their computing time has been on the desk top 10 for 20 years ago you probably did all your email on a desktop area today a significant part of that is on smartphones okay as little as possible so the world of the time spent between a desktop and a mobile device is changing we've seen it especially since iOS came out now the fact of the matter is that computing inside machines is not not a new concept it's been there for a while but the ability to manage them secure them potentially virtualized on is something that's very nation and one way I believe there'll be an opportunity so my view is that whether it's the desktop whether it's a mobile whether it's a machine the technologies are going to have some common substrate a fabric that are going to be common to all of them but there's going to need to be some miniaturization you can't apply potentially the exact same software you have in the data center to a tiny thermostat and not the beauty of it is we've got smart engineers we have understand the miniaturization aware this technology needs to apply and we're going to play this out i think the machine a machine Internet of Things opportunities well ahead of us we're in the beginning of that but the good opportunity there is it's 50 billion plus things tens of billions of devices and so and so forth the other thing that I think is important is that there are other technologies i mentioned management security virtualization there are other technologies that I think they're also going to play social computing what is the appropriate place for how people are going to collaborate in processes I don't think that's been that it's well understood in the consumer world because you see the facebooks in the LinkedIn but there is some mirror of that in the enterprise which i think is wide open any machine learning big data those kinds of trends will drive a lot of how you're going to collaborate not just between man to man man dies yeah right otherwise the Steelers opportunity that's the automation piece that keeps on coming back as the automation I got to answer since you brought up the thermostat thing and you're kind of riffing on that you've a lot of experience and certainly SI p in the verticals it's interesting mobile has different verticals they know how you talk to financial services government is that a constraint or an opportunity I think it's a great opportunity I think that any company that grows horizontal which is what we've done you know we're fight i'm in three the most baffling stat when Pat and Joe talked to me was that VMware's 500,000 customers that's huge but most of that growth has happened horizontally there's been no gradually an industry verticals ation one of the things we did very well at SAAP was industry verticals there's now SI p is a 40 year old company you'd expect that what we're going to start doing and end-user computing is starting to vertical eyes some of our aspects of how we sell for example in VDI we're finding a number of healthcare places where they want to equip physicians and clinicians with either laptops or devices now where you can get get to their clinical records medical records on a device that's completely locked down and virtualized so that you don't have to worry about that device or that laptop getting locks that's a real real opportunity for virtualization in healthcare the same and government we're seeing the same in many of the very very sophisticated branch and local type of remote you know office type of settings so increasingly we think both the desktop and mobile they're going to be vertical use cases and we'll start building out technology and both solutioning of them that allow them over I want your app sunk in the industry and I think some of them that are very relevant our health care banking federal and then you know several the other sectors where there's lots of employees very distributed and sense and also ones where you've got to ensure that the data doesn't leave their device laptop or mobile Sanjay ponen here inside the cube now with VMware GM at the end user computing group thanks for coming inside the cube I'll give you the final words I want to ask you I'll see your senior executive great leadership move for VMware you can come in with your running shoes on there's no no real delay there so I'm expecting to see some great stuff from you but what's your objective you're gonna get ingratiating from the new culture which is not going to be hard for you again left turn vs right turn your understand tech what's your going to be here your personal objectives over the next couple months as you get in and start to you know put together the plan I mean obviously metrics or clean the objects are clear SDDC hybrid cloud and use a computing Europe and fear piece what are you going to roll out and I think you all as you know in any software company your assets of your people so my first focus is to really understand the fabric of our team of people it's a it's a smaller team than s API to worry about 65,000 people here it's 15,000 but in my own team getting to understand how we can continue to retain and grow great talent we have a fantastic team not just if we remember also in my immediate team and we're going to continue to grow that team and in that I think you'll find great innovation secondly we're going to define goals that are revenue and market share related that a both short-term and long-term to be number one than the undisputed number one in every aspect of our market in some of our markets there are existing competitors being other ones we're completely creating new markets and third we're going to go and make customers enormously successful I think when you make customers successful with great innovation and great people you have a fantastic business right and I could envision you know over a multi-year period imagine that VMware's twice the size that we are today five billion dollar company if a significant part of that could come from end-user computing that's going to be a phantom great you know morale-boosting and better shut the streets down here in San Francisco like to do with oracle openworld right down 23,000 people estimated here everybody else is going right up straight up so vmworld you can a vision that fifty fifty billion dollar Tim you know 39 million billion market cap I mean you could I could see that within i double the revenue you guys do the estimators but double right along with it and then you gotta focus make we talked we talked to pat you got to figure out that your camp and then it yeah we can double the revenue triple mark it was all good problems and now we're dreaming a little bit but I think you guys ringing the future before you create an aftermarket most inspirational thing we could do is help our employees and our customers be in that future and that's what I'm excited to do sanjay pune we're here at vm will be document it's our fourth straight vmworld will be continuing document we're here in the cube thank you for coming on your check athlete looking forward to seeing you with your running shoes on and using computers needs a big lift they have the right guy for a job be right back with the cube with our next guest our friends at Andreessen Horowitz and a hot start up in the space in virtualization I'll be right back after this short break