>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube. The leader in live tech coverage. Lisa Martin and David Lantz wrapping up day one of our coverage of pure accelerate. 2019. Howdy. How do y'all Hey, I >> think I started a trend. >> I think you did. So, Dave, this has been a dice shot out of a cannon. I think, as only you know, pure does. Well, we had lots of conversations. Lots of news this morning, Which was nice to hear. As pure welcomes their 10th anniversary in a couple of weeks. We talked with customers. We talked in many different industries partners, Puritans. Lots of innovation has occurred in their 1st 10 years. Charlie got up on stage this morning. Then he came to the Cube and talked about this modern data experience and the 10 X improvements and many things that they're gonna deliver. Not in the next 10 years. In the next few years. >> Yes. So we're seeing a story of growth here. It's a theme. If you look read yours press releases, they start The first line is the only storage company that's growing, which is true, at least the storage company of size of a billion dollar plus storage company and talking a lot about modern storage. To me, it's a story of entering new markets their second decade tam expansion into new ai ai workloads. Certainly the cloud trying to make the cloud of a tailwind. We have just heard from Carrie Stanton of'em Data protection is an area. You know, years ago, Uh, I remember talking to executive at Netapp Tom George and saying, Hey, we're gonna buy ah, storage backup cos you know, we're gonna preserve our partnerships with whomever con vault and Veritas in vino, whoever they're working with time and you see pure taking a similar strategy E M. C at the time did something different. They vertically integrated. They they bought a company called Llegado. They integrated into compete. And of course, now they're that sort of their stack. And so, if you were small enough now still close to $2 billion at the at the end of this fiscal year that they don't have to necessarily vertically integrate, we'll see 10 Next 10. That's the third decade, what happens there and in the customer input you're seeing. Customers are continuing to invest in pure. They're very happy. What you've seen, Lisa is customers look at pure is shifting. And I said this on the Cube earlier shifting labor in tow. Pure czar and D. Now the hyper scale is like Amazon. They'll spend time of engineering time to save money. I t practitioners of the enterprise. They'll spend money to save time and so they will happily spend money on on products if they can lower the IittIe labor costs. So totally different mindsets and you're you're seeing that's taking hold and pure really has done a great job of that. Now, as I said in my my breaking analysis, you know, a couple weeks ago, analyzing the vendors pure, clearly growing. But these things go in cycles, right? There's hard compares. You're going to see. I guarantee you're going to see these other companies, you know, chewing their models. They're big, pure talks about 10 X. The reality is, you know, Delhi emcees 10 x the size of pure right, so they throw a farm or cash on. So if you're a big whale with a big install base, that's what you do, You mind it If you're pure and you're smaller, you're 1.51 point seven billion. You go hunting. And that's the dynamic worse we're seeing. I don't see that changing dramatically for quite some time until the economy shifts and in the mindset shifts and when. Then we'll see how pure adjusts its business model from, perhaps growth to more profitability. >> And speaking of growth, they're just coming off a very successful second quarter where they announced last month in August, 28% year on year, both adding about seven that new customers a day. A lot of that attributed to innovation and the channel. They did a good job in the last 18 months or so of pivoting. They're smaller medium customer business to the channel, allowing peer to focus on much more enterprise focus. And they actually I think, even in queue to close 50% more multi $1,000,000 deals this last quarter >> and well, and while those seem like great numbers, they actually the stock got hit after the quarter. Why? Because they lowered guidance. Why, Because of this NAND pricing confusion, Nan pricing drops so fast in the quarter faster. They expected it sort of hurt revenues a little bit. They expect that that softness that continue. So they've been conservative going for it. You know, who knows of this smart to be conservative cause I wouldn't say that they're sandbagging. I say they're being conservative, you know, makes a bigger question. You know, it's storage kind of a crappy business, and we'll see. I say, that is, if you're gonna win in storage right these days, you have to gain share. Pure is gaining share della. 0% growth appears to be gaining share 0% growth. It's not a great market. So what's happening, we don't really know is cloud siphoning off demand for the traditional on Prem surgeon Could be. Can these companies make cloud a tailwind or is cloud a zero sum game? I tend to think long term, the Maur cloud, the worse it is for on Prem. So that's why everybody's scrambling for this multi cloud strategy, which is very, very early days. Multi cloud today is largely a a symptom of multi vendor versus you know, a coherent user strategy with right we're management's. Now the Big Five are trying to change that pure is playing its role. Companies like Veum and others are playing their role, so we'll see how that plays out. I do think there's a clear opportunity and multi cloud, but, um, it you know, it's unclear how large that is or whether it's just going to be a series of horses for courses. In other words, the right strategic fit for the right workload. >> So your thoughts on the evolution of their AWS partnership really looking at what they're now doing with eight of us as this bridge toe hybrid cloud customers of choice on from hosted, you know, as a service public cloud your take on this forcing function of bringing pure and AWS together of the customer base. >> Yeah, I think it's actually pretty clever. Move by pure take their engineering. It's okay. We're gonna settle, do all the heavy lifting set up AWS with e c two priority E. C. Two instances networking we're gonna mirror. We're gonna the architect of the basically block storage inside of eight of its front ending s three, which is the cheap object store? Pretty innovative. What it does is it gives customers an option for hire availability block storage that looks like pure but runs on AWS in the cloud. Very clever. And so all the advantages of OPEC's versus cap ex. You know the cloud experience, but it's the pure management experience. Eso very clever. Give pure customers who were happy. An option is there. I'm sure they're hearing from the customers. Hey, we want to go to the cloud where we heard it from the the eight of us Speaker today. Gardner Data. 88% of customers have a cloud first strategy, but 86 continue to spend on print. Right? Okay. So smart by pure to do that, I don't know how big a business that's gonna be, but it's a nice hedge. In case that really, that trend takes off >> and your thoughts on one of the other announcements today. Another first rip your We've talked about that the number of times they have there been first in a lot of things in the last 10 years transitioning offering most of their portfolio as a service and your perspective against the other competitors that you mentioned. How do you see that? >> Yeah, you know, the first your lips, they're bigger than the small companies that people have never heard of, like Zadar, a storage who actually were probably one of the first. But but they're the first again $1,000,000,000 plus company to do this. That's what customers want Customers want. The cloud experience in a big part of that cloud experience is a pricing model in the utility model. That's cloud like when AWS announced outposts, it was a clear sign that the industry had had to respond. I'm not saying this is a response to Outpost, but it's clearly a response to the cloud model so paid by the drink. You know, Op X versus cap packs of being able to have that cloud pricing model and experience across the portfolio is goodness. >> So Charlie, their CEO, talked about this morning, this modern data experience going into the next decade, it's gonna be three. Us is simple, seamless, sustainable. We all want that. I think for anything in life, your take on that from marketing to reality >> I see is anything but simple. Let's be honest. It's seamless is probably the most overused word in a >> knot. I think in future proof >> it's the chance to say that and sustainable >> eh? Well >> sustained from the standpoint, what I love about the model is way. Heard this in the customer today. Well, you know, the five year TCO was kind of a wash, but then beyond five years, it was a no brainer because we're now in that subscription model. So I guess that's that's the sort of sustainability you think its sustainability in different ways. You know, green, I t >> right >> again. I t is not really green. So, you know, good marketing. >> Well, we heard from I think we had three or four customers on today with four to legal firms, one in New Zealand, one in the States we heard from a utility company out of Tulsa, Oklahoma, and then Mercedes AMG, Petunias Motor Sport. Formula One free, very different industries, similar stories in terms of the management simplicity of pure the evergreen model of being able to swap out and take advantage of those innovations and the things that Piers is doing the r and d on from a cost perspective. But I think those were three kind of common business and I t benefits that I heard articulated by three very different industries of very different sizes. >> I mean, I think it's important. Remember, you get a really effusive commentary from the pure customers, and I'm not trying to B B negative on that. They're very, very clear that companies like pure Nutanix cohesive the rubric wien. They have great customer experiences, and they're different than what companies air used to buying very often. Having said that, when we get these, when we get into these, you know, benefit, cost benefit discussions Typically you're you're you're comparing a modern, you know, circa 2019 platform with something that's, you know, five years old, so you better have a significantly better metrics again. Having said that, you're seeing a different experience, and that's clearly coming through in the customers that you talk to with pure. They started with a clean sheet of paper, didn't have a lot of technical debt, not a lot of baggage, that alone some really smart people that, you know, in Silicon Valley, you know, inundated with all this cloud stuff, and then they brought it forth very hard to build a billion dollar storage company. Pure was the 1st 1 since Netapp. So >> that was a couple of guys going >> to do it compelling couldn't do it. Equal logic couldn't do it after you've never heard of half of these companies, right? It's been it's been many, many years, decades since you saw a billion dollar storage company. That's how hard it is and to achieve escape velocity and fewer did it, which is quite a feat. And now that now the challenge is their market cap. It's so large that four and 1/2 1,000,000,000 and growing right ostensibly that they may be become acquisition proof. Okay, that's a good thing on the one hand, cause we love independent companies. On the other hand, at some point, the Tam Tam expansion within that little niche gets very difficult. That's why, for example, e M. C. Had to go out and buy a company like Llegado, and it made some actually, you know, some other crappy Apple acquisitions that didn't work out. And then they stumbled into VM, where it was gonna part of a TAM expansion strategy, and they lucked out because they the greatest acquisition in the history of I T. But I guess my point is at some point, a billion dollar company becomes a $2 billion company. Maybe give becomes a $5 billion company, and then it's like, OK, what do we do next? How do and you're seeing that app is in there now. Netapp is a growth challenge, Um, and a Tam expansion challenge. But it's too big to get acquired. There were years for their. For years. There were rumors about Cisco required, kept the stock up. It never happened. So stock buybacks tuck in acquisitions, you know, refresh of the portfolio, squeezing out a little bit of growth, some bad quarters. You know, that's That's the nature of the big company so pure at some point we'll hit that, but I think we're a couple of 1,000,000,000 away. >> They have also done a robust job of building a robust partner ecosystem. We talked to a number of them today, Cisco in video we had on the team. Tomorrow's Blanc is on in terms of this growth that you talked about, How well positioned are they with with the strategic and technology partnerships that they are not only building but evolving quite quickly? Where does that factor into your thoughts about their future in the next decade? >> I think, um, I think the key to that is their architecture. In terms of their AP, I, uh, framework. It makes it easy to integrate. Wait, Um and to the extent that they continue to grow, the customers buy their products, loved their products. The high end p s scores all that stuff, it's easier to have a NPS score when you're a billion dollar company is when you're, you know, $50 billion company. But are you with a big portfolio? But customers, clearly you're has momentum. People want to be with a winner. If yours a winner there. Architectures easy to integrate. Relatively speaking. Thio, You know the legacy vendors and it's clean across the portfolio. And so that's that's why I think the ecosystem continues to grow. I'd like to see more growth, you know, I remember service now when they were a billion dollar company and thinking, Wow, it was about this size, you know? Now you go to service now. I mean, you see the big, uh s eyes. You see a lot of niche players bumping into him or jumping up. I'd like to see that here, and I think it will continue. >> Well, this is certainly ah good chunk larger than last year's accelerate, which was about a year and 1/2 ago. And look where we are, Dave, We're in Austin. This is Dell's backyard. This is a bold company. I was telling you earlier today when I was doing some research for our guests, something that catches my attention as a marketer that many companies cannot d'oh and that is very bold and very direct against their competitors and tell customers this is why you should be buying us. I applaud that as a marketer, and as somebody who gets to interview folks on the Q, because it's hard to do. They have this bullish culture that they've always had, and they have grown in the last 10 years. We're seeing expansion, and we're seeing them not afraid to tackle anybody that their customers are looking at. >> So I want to talk about some of the industry dynamics as well. The I T industry loves a vacuum, and I think in some respects the acquisition of the EMS see by Del created a vacuum and pure is taking advantage of that now. For a while, Gel took its eye off the ball and was storage business was affected, and then they got their act together. And now it's 0% growth. It's it's Yeah, okay, I'd like to see better growth there, but they've been doing a lot of work, and pure is referenced this and some of the pressure. This is Dallas consolidating its portfolio, which is exactly the right thing to do. Deli emcees Portfolio is way too complicated, but you have to be careful. You can't just consolidate overnight because you're alienating your customers. So there's still some of that going on. The linchpin of Del strategy is VM wear. That is the key. That's where the future is for those guys. So when AMC was an independent storage company, it would fight tooth and nail. You know, Jeremy Burton was gonna take out net app, and he didn't do it. You have all these crazy videos and they, you know, they were focused, competitive oriented company that loved its customers and was very customer focused in many respects. I mean, they're still competitive, very competitive, but they're not that independent, pure play anymore. It's now it's netapp and pure, and I feel like net episode distracted, you know, with some of the struggles that pure is really, you know, has an opportunity. You know, I I remember Scott decent years and years and years ago told me when they were nobody said We think we could be the next TMC in storage. And I was like, Really? That's a amazingly bold statement when it appeared that the storage industry was kind of disappearing and everybody was getting acquired and it was becoming this vertically integrated converged infrastructure player with storage and networking and service. And that still may happen. A cloud, everything else, Um, but, you know, if you're has an opportunity to really become the leader in in this business in, you know, has an opportunity become the number one storage company takes some time, Uh, for a while. I question is, it doesn't really make sense to have independent stores, But you still see a lot of innovation. Certainly the backup vendors startups, you know, you see smaller companies, VC money still coming in back to something you said earlier. I t generally, and storage specifically really isn't simple. It's very complicated, and it's very hard. >> Well, Dave, we have had a great first day. I'm excited to work with you tomorrow. We've got cause coming on. Kicks coming on some more customers. Lots of good stuff in store for day two. >> All right, Cool. >> Likewise for David. Dante. I'm Lisa Martin. You're watching the Cube, the leader in live coverage.

from Gillette Stadium in Foxborough Massachusetts it's the cube covering Vita winter warmer 2019 brought to you by silicon angle media hi I'm Stu minimun and this is the cube at V tug winter warmer 2019 at Gillette Stadium home of the New England Patriots the AFC Championship team going to the Super Bowl third year in a row yet again Randall right yeah paying it's my Los Angeles Rams oh so happy to welcome to the program Randall hunt who's a software engineer with AWS did a keynote this morning I believe it was a hundred AWS features in 50 minutes and felt like you we added a couple more than 100 and went a little over 50 minutes but I think we probably hit 57 minutes that was what the slide counter said but yeah I added a couple of the updates since reinvent you know reinvent is not the end of our innovation we continued releasing new stuff after that all right so our program we're not going to be showing JavaScript we're gonna take a deep breath and slow down a little bit because you know our audience absolutely knows Amazon I tell you this show remember like four years ago first time AWS presented me at Microsoft and AWS here and people heard cloud 101 and I was like come on I could have given this presentation and they were walking around like oh my god I just you know found out that you know who you know horseless carriages and I can do that do them and things like this so you know cloud we've been there for a decade but we're still I believe you know day zero day one is what Amazon always likes this is day one it's always day one so there's no way we can shove the entire reinventing keynote into this discussion so you know want to start first Tulsa rent a little bit about yourself your role what you work on and what customers you talk to sure so I studied physics and then I found out physicists don't really make any money so I became a software engineer and I worked at NASA I worked at SpaceX and worked with this company called MongoDB back then it was called Tianjin and then I am an Amazon I was my second time around in Amazon I'm a software engineer there but I'm also a Technical Evangelist and what that means is I get to travel around the world and make make all of the demos and chat with all of our customers and kind of solicit feedback from them and then kind of try to act as the voice of the customer for the service teams whenever I can get them to listen yeah so probably not going to go into open source versus software licensing of things with you because we want to make sure that we can publish I tell you space is one of those things I love it when I've interviewed people that have been in space I've talked to lots of companies that have our code in space Amazon you have I loved you know robotics and space are hard and we make it easy and I kind of laugh cuz I was an engineer as an undergrad I mean I studied a little bit of you know what it takes to break gravity and understand I always love watching you know all the shows about space and track SpaceX would you work for and things like that give me a break you haven't made space easy well I think space as a whole is getting easier this industry is becoming more approachable one of the things that we launched to reinvent this year was a ground station and this is something where if you have an S band or UHF you know satellite and leo which is low Earth orbit or mio which is medium Earth orbit you can basically down stream that data to one of these ground stations which is you know essentially attach to a region you know in this case us East 2 which is in a like Ohio area and you can go and say hey just stream this data into s3 for me or you know let me access this from my V PC which is pretty gnarly if you think about it you know you have a you have an IP address which is a satellite in space yeah I love I worked on replication technology 15 years ago and it was like okay can the application take the ping off the satellite or you know how do we do this so look we're leveraging satellites a little bit more I understand it's a great tagline to make those useful and more readily just you know it's amazing you think about when you think about my availability zones and regions it's now you know that things aren't just on the Terra Firma well I'm looking forward to the first availability zone on the on the moon or on Mars that that'll be you know when we have utopia planitia 1a that'll be the really cool AZ alright we heard the first blue origins working to Mars no well the latency you know if you have 300,000 and fit three hundred fifty thousand kilometers on average between the Earth and the moon so you know you can go around the earth it would speed of light 7.5 times every second to go to the moon is a fool I hang it's like six seven seconds or so so the latency requirements become a little bit harder there I roll more my wrong pin I have I have the Grace Hopper nanosecond which is the wit which is you know curled up and if you follow the white thing it's how long light would take to travel that and it does it in two nanoseconds so you got me I'm a physics lover and love space as does a lot of our audience so bring it down to the thing one of the things that amazon has done really well is I don't need to be a physics geek to be able to use this technology we're having arguments as to you know if I'm starting out or if I want to restart my career today do I go code or heck you know let me just use lambda and all these wonderful things that Amazon have and I might not even need to know traditional coding I mean when I learned programming you know it was you learned logic and wrote lines of code and then when you went to coding it's pulling pieces and modifying things and in the future it's it seems like serverless goes even further along that spectrum I definitely think there's opportunities for folks who have just you know I don't want to say modest coding abilities but people who were kind of you know industry adjacent scientists you know data scientists folks like that who may not necessarily be software engineers or have the they couldn't recite in Big O notation for mergesort and things like that from scratch you know but they know how to write basic code there's a lot of opportunity now for those developers and I'll call them developers to go and write a lambda function and just have it accomplishing a large portion of their business logic for their whole company I think the you know you have a spectrum of compute options you have you know ec2 on the one side and then you have containers and then as you move towards service you get this this you know spectrum between Fargate and lambda and lambda being the the chief level of abstraction but I I think in a couple cases you can you know even go further than that with things like amplify which is a service that well it's an open source project that we launched and it's also a service that we launched and it takes together a bunch of different AWS services things like app sank and kognito and lambda and it merges them all together with one CLI call you can go and say hey spin up a static site for me like a Hugo static site or something and it'll build the code pipeline build all that stuff for you without you having to you know worry about all the stuff and if developers are starting new today you know I remember when I started I really had to go deep on some of the networking stuff you know I had to learn all these different routers and like how to program them and these like the industry router so you know the million dollar ones and having to rack and stack this stuff and the knowledge is not really needed to operate of large-scale enterprise you know if you if you know a Ralph's table and you you you know V pcs you know you can run you know a multi-billion dollar company if you want yeah it's been interesting to watch too and you know I think the last five years the proliferation of services in AWS got to a point where is like oh my gosh if I wanted to kind of configure a server for my datacenter or configure an equivalent something that I wanted at AWS there was more choices in the public cloud than there was there and people like oh my gosh how do I learn it how do I do this but what we start to see is it's more don't need to do that because what do I want to do if there's an application that I can run where services that will help make it easier for me to do that because the whole it's not let me replicate what I was doing here and do it there but I have to kind of start with a clean sheet of paper and say okay well what what's the goal what data do I need what applications do I need to build and start there I'm curious what you see and how do you help companies through that so that this is a really common scenario so I this is a kind of key point here is enterprises and companies have existed since before the cloud was really around so why do we keep seeing so much uptick why do we keep seeing so many customers moving into the cloud and how do we make it easier for customers to get into the cloud with their existing workloads so along that same spectrum if you have greenfield projects if I were running my own company and I were doing everything I would absolutely start in the cloud and I would build everything as kind of cloud native and if you want to migrate these existing workloads that's part of the one of the things that we launched this year in partnership with VMware is VMware kind of interface for AWS so you can use your native vCenter and vSphere kind of control plane to access EBS to access route 53 and ec2 and all the other kind of underlying stuff that you are interested in run it you can even do RDS on VMware in my environment so that line is definitely blurring between my stuff and my stuff somewhere else and when people are talking about migrating workloads right you know you can take the lowest hanging fruit the most orthogonal piece of your infrastructure and you can say hey let me take this piece as an experimental proof of concept workload and what kind of lift and shift it into the cloud and then let me build the accoutrement the glue and all the other stuff that kind of is associated with that workload cloud native and you'll get additional agility your you know 1:1 ops person can manage this whole suite of things across 19 20 regions of AWS and you know there's kind of global availability and all this kind of good stuff that typically comes with the cloud and in addition to that as you keep moving more and more workloads over it's not like it's a static thing you know you can evolve you can adjust the application you can add new features and you can build new stuff as your move these applications over to the cloud yeah and it's interesting because just the dynamics are changing so much so there's been there's still so much movement to the cloud and then oh well some people I'm pulling stuff back and then you see you have a WS outposts so later 2019 we expect to Amazon to have you know footprint in people's environments and then you know Jeff just to make things even more complicated well the whole edge computing IOT and the like which you know everything from snowball and these pieces so the answer is it gets even more complicated but you know your your AWS I know is trying to help simplify this for use right the board I think I can say anything at all about AWS it's that if a customer is asking us to build something we are gonna do our best to make that customer happy we take customer feedback so incredibly seriously in all of our meetings all of our service team meetings you know we that voice of the customer is very strong and so if people are saying hey I want a AWS in my own datacenter you know that's kind of the genesis of outpost and it's this idea that well we have this control plane we have this hardware let's figure out how we can get it to more customers and customers are saying hey I want into my data center I want to just be able to plug in some fiber and plug in some power and I want it to work and that's the idea right we're gonna when I think of every company that I've watched there's usually something that people will gripe about and what I've been very impressed with Amazon Amazon absolutely listens and moves pretty fast to be able to address things and if you see you know if I'm a competitor of Amazon I'm like oh well you know this is the way that we get in there you know where we think we have an advantage chances are that Amazon is addressing it looking to you know move past it and you know absolutely the Amazon of 2019 is sure not the Amazon of 2018 or you know when you thought about it you know 2015 and it's big challenge for people as to because usually I think of something and you never get a second chance to make a first impression but it changes so much right everything changes that you know I need to revisit it it's like oh well this is the way I do things well Amazon has five different ways you can do that now um you know which one fits you best and I think that's important is different applications gonna have different characteristics that you want to be able to pull in and run in different ways yeah you know honestly I'm a huge fan of service I I think service is where a ton of different workloads are going to move into the future and I just see more and more companies migrating their existing you know everything from elastic Beanstalk applications so like vdq you know VMware images into the service environment and I like seeing that kind of uptick and someone recently I I can't remember who it was someone sent me a screenshot of their console with their ec2 instances in 2010 and maybe it was part of this 10-year challenge thing on Twitter where it's 2009 versus 2019 but they sent me you know they're in one large and the screenshot of the console from back then and they sent me a screenshot of 2019 and Wow things really have changed and you don't really notice it as much when you're using it every day but I can imagine you know their their Ops teams where they haven't logged into the console in three years because you know everything is done kind of in an automated fashion they set up their auto scaling group you know three years ago and then the only time they ever log in is to update to new instance types or something for the cost savings and I get messages on Twitter sometimes from people who are like whoa console got an update this is so cool and then sometimes we we get messages from people where you know we changed the EBS volume snapshotting things we had somebody who had it was like 130,000 EBS snapshots or something and they were like hey you removed my ability for me to select multiple snapshots it what it's like well you have a hundred and thirty thousand so we went in into the UI and we added a little icon that works better for large groups of snapshots you know if there's a customer pain point we will do everything we can to address it all right Randall Hunt really appreciate you sharing with us your experience what's going on with customers and absolutely that 10-year challenge we know things change fast we used to measure in decades I say now it's usually more like you know 18 to 24 months before between everything AWS in 2029 it's gonna be crazy and I can't I can't imagine what its gonna look like then all right well the cube we started broadcasting from in 2010 we appreciate you staying with us through 2019 check out the cube net for all of our programming I'm Stu minimun and thanks so much for watching the key

(upbeat music) >> Announcer: Live from Las Vegas it's theCube covering AWS re:Invent 2017 presented by AWS, Intel and our ecosystem of partners. >> Well welcome back here on theCube we are live at re:Invent, AWS's big show, and I mean big show here in Las Vegas spanning some four hotels hundreds of thousands of exhibit space and nearly 50,000 attendees gonna be a great 3 days and we're glad you're with us here on theCube. I'm John Walls, along with Lisa Martin again, glad to have you here and we're now joined by Paul Beavers who is VP of products he specializes on the RND and the product management side of the house of BMC and Paul, glad to have you with us. Say, A Cube first-timer, right? >> Yes I am, nice to meet you, glad to be here. >> John: Well go easy on ya. >> Okay, good. >> John: And a Bronco >> Yeah >> John: UCO, Central Oklahoma >> Yes, absolutely >> I'm an old Tulsa guy >> Oh, are you? >> So I know a lot about UCO My wife's a UT grad >> Alright good, we'll keep it all in the house here First, tell us about BMC first, company's been around for nearly, what, almost some 40 years, so you've gone through multiple iterations, so how'd you get to the point to where you are now and what are you doing now? >> You know, the way that I like to think about BMC is while the technology, the underlying technology has changed a lot over the years we started off with our roots in mainframe. We supported many different Unix platforms, Linux platforms different types of databases, but the one thing that has always been the same is, BMC had one overarching goal which is to help our customers succeed with IT, regardless of what the platform is. So as the industry is transitioned, I've been in the industry about 30 years and over the last 30 years as the industry's transitioned it, there has always been a need for our large enterprises, insurance companies, finance companies to be successful with their IT. And there's always a gap to be filed around making IT better and making IT functional making it perform and most importantly making sure that it's supporting the business and the business is continuing. >> And that kind of previews a question that I wanted to ask you, is as you've seen massive technology shifts since 1981, what are some of the trends that you are seeing that the business is really leading with? The business outcomes that IT has to facilitate. >> I think the, obviously there's been lots of different transitions in the business and the technology over the years since 81. I think the last five years have been the most pivotal. And the reason is because, not because there is a change in deity or the technology but because of all of the different technology and opportunities that are out there, businesses are now leveraging IT to be the business as opposed to support the business. Right, so if you take things like Uber, Netflix, Airbnb even banks today, the IT is the business, right. So if you think back about five or ten years ago, IT, a mobile app for the bank was a convenience now if you're a member of a bank and the mobile app doesn't work, you're gonna find a new bank. That's all there is to it, it is now critical. It's what digital transformation really means, it's not a buzzword, it's real and all the businesses that surround us we're at Amazon's event, right, Amazon, one of the most, the biggest digital businesses there is. All of those businesses have a new dependency on, on IT. So that change has created opportunities for companies like BMC to ensure that IT works because then we ensure that the digital businesses are working. >> And you say, you know, not a buzz word, a reality but yet there's still a lot of people on the other side of that fence, right, and they haven't made that transformation yet or they're in the process, that's what you're all about right, facilitating that, so what do you, talking to those who may be a little bit of a foot dragger, you might say, and they've got to make some different decisions now, so how do you, how are you coaxing those folks along and what's your primary messaging on that? >> There's kind of two different aspects on that. So one is from a business perspective we really want to see, if they don't digitally transform, they won't exist in five years. And I think they know that, so, I think the situation's becoming more and more dire or urgent for them. One of the things that has helped them is things like AWS, Amazon web services, in the cloud, makes it much easier to digitally transform, right. Because it's so readily available and actually there's whole businesses that are growing up on AWS. So what we do at BMC is help those customers that are the edge, they're about to make a decision around cloud. We help them ensure that they're going to be okay when they go to the cloud, right. An example would be, we've been with them now, some of these companies, large insurance company in the Midwest, we've been with them for 30 years as customer and we're still going to be there and we're still going to help them on their cloud journey. And that story gets repeated time and time again across our customer base. >> Lisa: One of the interesting things that was in the news, John Furrier wrote a great article that was published on Forbes the other day. He did an exclusive interview with Andy Jassy, the CEO of AWS, who talked about the, AWS 18 billion dollar run rate 42% growth a year, he said, you know, we haven't here by working with startups alone. We're at the precipices of this mass enterprise migration. You guys have been a partner with AWS for a while you're an ISV, what are some of the new things that you really hear at AWS re:Invent to reinforce with respect to your strategic partnership with AWS? >> You know, when, I can break that down into kinda three simple, three simple ways, right. So when you think about a cloud migration customers are typically looking, looking to do three different things, right, they're either looking to save money by lifting and shifting existing workloads and putting them into the cloud. And Amazon, that's a sweet spot for them they've been doing that for a while. But, that's kind of the entry level what we're seeing is leveraging the native services that AWS provides, not only make it cheaper for the customer but it makes it, it makes it much faster to develop apps and to succeed with digital transformation. Matter of fact, the application development within enterprises are now becoming more integrators of different cloud services and technologies as opposed to building applications from scratch. So it becomes an arms race, if you will, for the different vendors, right, the first bank to get to a mobile app, the first insurance company to do everything online. All of these different needs and capibilites around digital transformation AWS facilitates that. And they do it, they do it, they have some competition, but they're really leading, they're really leading the path. >> And in speaking of that leadership that we, I was talking about their growth rate earlier and they are in the clear lead. And they have a very consistent message coming from Andy Jassy, we're not lookin in the rear view mirror. I'm curious, you've mentioned application development a minute ago, how are, how's your conversation with in organizations, whether it's a bank or an insurance company, AWS has done a great job of attracting developers. Are you seeing the shift, in terms of your conversations, up the chain of command to the CEO, the corporate board? >> I'll answer that in two different ways. So, first of all, if you think about IT operations, right, so IT operations are the guys within these enterprises that typically make sure that IT runs. It's all about monitoring and provisioning, the work that to make IT run. That is BMC's sweet spot. And what you find in these companies is they get, they start small with a cloud strategy and then at some point they reach critical mass and the CEOs and the CIOs get nervous about okay, what if the cloud breaks, right? And so they want to manage that with the rigor and disipline that they manage typical IT operations. That's a real sweet spot for BMC. Because we can manage AWS and monitor all the applications running AWS and give those CEOs and CIOs and CFOs the comfort that their applications are going to be there when they need to, and as we already said earlier, those applications now are their businesses so the cost of an outage is way more significant that it was even five years ago. >> John: You mentioned, you know, four, five year trend this has been going on for little bit now. So just as capabilities have changed, I'm sure the questions coming in are changing too, right? So what's kind of leap frog to the head of the pack in terms of when people come to you and say, hey, I need help, but this is what's worrying me today as opposed to what was answered yesterday. >> You know, the way that I would answer that is scalability, right, so when applications go outside the enterprise, out into the consumer world, right, everybody's got the app on their mobile phone, you go from tens of thousands of users to millions of users. And so the performance metrics and the data that you generate goes into very, very large amounts of data. In order to understand performance, you have to have a new technique. And so understanding performance in modern times is really the problem at hand and that's where you start to hear about things like, big data and the ability to store petabytes of data and the ability to search and analyze that data very quickly. Leveraging machine learning and analytics that's where the big need is today. And that's where companies like BMC are rotating to be able to support that massive scale, that volume of information. Because it's no longer about a thousand users of an internal app it's about, I've got a loyal, we were talking to a grocery store the other day, they have a loyalty app with two and a half million users and by the way, if the loyalty app doesn't work they go to a different grocery store. So it's a completely different model but it's really, I would say the number one concern right now is the scale and second to that is, in order to achieve scale enterprises are leveraging much more modern technology both in the cloud and on the premises but that modern technology, you have to be able to monitor and understand the performance of that modern technology. >> One more question for you Paul. What are you most excited to hear from AWS this week? We've seen a couple of announcements that hit the wire Monday morning at midnight about AI for example. What are some of the things that you and BMC are excited to hear from your partner AWS? >> You know, I actually today, I was in the partner, key note summit. I'm excited about the way that AWS is rotating from a DevOps motion to enterprise. So they announced this week that there's actually going to be the ability for ISV's like BMC to sell product in the AWS marketplace but do it in a way that you can price it and consume it as an enterprise. So they're literally, that's actually news to me at this event, is that they're really uplifting this approach around sort of smaller groups and targeting big enterprises and for us at BMC selfishly, giving us the ability to deliver on AWS to very, very large enterprises which is our customer base, we support the global 2000. >> John: That's why you're licking your chops this week >> Exactly, absolutely Absolutely (John laughs) >> Paul, thanks for the time >> No problem, thank you >> Glad to have you on theCube and look forward to the next time down the road too. >> Paul: Absolutely, anytime. >> John: Alright, Paul Beavers, joining us from BMC >> Very nice to meet both of you >> Back with more, we're here at re:Invent we're live in Las Vegas and you are watching our coverage here on theCube. (upbeat music)