foreign okay we're back at Falcon 2022 crowdstrike's big user conference first time in a couple of years obviously because of kova this is thecube's coverage Dave vellante and Dave Nicholson wall-to-wall coverage two days in a row Michael Rogers the series the newly minted vice president of global alliances at crowdstrike Michael first of all congratulations on the new appointment and welcome to the cube thank you very much it's an honor to be here so dial back just a bit like think about your first hundred days in this new role what was it like who'd you talk to what'd you learn wow well the first hundred days were filled with uh excitement uh I would say 18 plus hours a day getting to know the team across the globe a wonderful team across all of the partner types that we cover and um just digging in and spending time with people and understanding uh what the partner needs were and and and and it was just a it was a blur but a blast I agree with any common patterns that you heard that you could sort of coalesce around yeah I mean I think that uh really what a common thing that we hear at crowdstrike whether it's internal is extra external is getting to the market as fast as possible there's so much opportunity and every time we open a door the resource investment we need we continue to invest in resources and that was an area that we identified and quickly pivoted and started making some of those new investments in a structure of the organization how we cover Partners uh how we optimize uh the different routes to Market with our partners and yeah just a just a it's been a wonderful experience and in my 25 years of cyber security uh actually 24 and a half as of Saturday uh I can tell you that I have never felt and had a better experience in terms of culture people and a greater mission for our customers and our partners you'll Max funny a lot of times Dave we talk about this is we you know we learned a lot from Amazon AWS with the cloud you know taking something you did internally pointing it externally to Pizza teams there's shared responsibility model we talk about that and and one of the things is blockers you know Amazon uses that term blocker so were there any blockers that you identified that you're you're sort of working with the partner ecosystem to knock down to accelerate that go to market well I mean if I think about what we had put in place prior and I had the benefit of being vice president of America's prior to the appointment um and had the pleasure of succeeding my dear friend and Mentor Matthew Pauley um a lot of that groundwork was put in place and we work collectively as a leadership team to knock down a lot of those blockers and I think it really as I came into the opportunity and we made new Investments going into the fiscal year it's really getting to Market as fast as possible it's a massive Target addressable market and identifying the right routes and how to how to harness that power of we to drive the most value to the marketplace yeah what is it what does that look like in terms of alliances alliances can take a lot of shape we've we've talked to uh service providers today as an example um our Global Systems integrators in that group also what what is what does the range look like yeah I mean alliances at crowdstrike and it's a great question because a lot of times people think alliances and they only think of Technology alliances and for us it spans really any and all routes to Market it could be your traditional solution providers which might be regionally focused it could be nationally focused larger solution providers or Lars as you noted service providers and telcos global system integrators mssps iot Partners OEM Partners um and store crouchstrike store Partners so you look across that broad spectrum and we cover it all so the mssps we heard a lot about that on the recent earnings call we've heard this is a consistent theme we've interviewed a couple here today what's driving that I mean is it the fact that csos are just you know drowning for talent um and why crowdstrike why is there such an affinity between mssps and crowdstrike yeah a great question we um and you noted that uh succinctly that csos today are faced with the number one challenge is lack of resources and cyber security the last that I heard was you know in the hundreds of thousands like 350 000 and that's an old stat so I would venture to Guess that the open positions in cyber security are north of a half a million uh as we sit here today and um service providers and mssps are focused on providing service to those customers that are understaffed and have that Personnel need and they are harnessing the crowdstrike platform to bring a cloud native best of breed solution to their customers to augment and enhance the services that they bring to those customers so partner survey what tell us about the I love surveys I love data you know this what was the Genesis of the survey who took it give us the breakdown yeah that's a great question no uh nothing is more important than the feedback that we get from our partners so every single year we do a partner survey it reaches all partner types in the uh in the ecosystem and we use the net promoter score model and so we look at ourselves in terms of how we how we uh rate against other SAS solution providers and then we look at how we did last year and in the next year and so I'm happy to say that we increased our net promoter score by 16 percent year over year but my philosophy is there's always room for improvement so the feedback from our partners on the positive side they love the Falcon platform they love the crowdstrike technology they love the people that they work with at crowdstrike and they like our enablement programs the areas that they like us to see more investment in is the partner program uh better and enhanced enablement making it easier to work with crowdstrike and more opportunities to offer services enhance services to their customers dramatic differences between the types of Partners and and if so you know why do you think those were I mean like you mentioned you know iot Partners that's kind of a new area you know so maybe maybe there was less awareness there were there any sort of differences that you noticed by type of partner I would say that you know the areas or the part the partners that identified areas for improvement were the partners that that uh either were new to crowdstrike or they're areas that we're just investing in uh as as we expand as a company and a demand from the market is you know pull this thing into these new routes to Market um not not one in particular I mean iot is something that we're looking to really blow up in the next uh 12 to 18 months um but no no Common Thread uh consistent feedback across the partner base speaking of iot he brought it up before it's is it in a you see it as an adjacency to i-team it seems like it and OT used to never talk to each other and now they're increasingly doing so but they're still it still seems like different worlds what have you found and learned in that iot partner space yeah I mean I think the key and we the way we look at the journey is it starts with um Discovery discovering the assets that are in the OT environment um it then uh transitions to uh detection and response and really prevention and once you can solve that and you build that trust through certifications in the industry um you know it really is a game changer anytime you have Global in your job title first word that comes to mind for me anyway is sovereignty issues is that something that you deal with in this space uh in terms of partners that you're working with uh focusing on Partners in certain regions so that they can comply with any governance or sovereignty yeah that's that's a great question Dave I mean we have a fantastic and deep bench on our compliance team and there are certain uh you know parameters and processes that have been put in place to make sure that we have a solid understanding in all markets in terms of sovereignty and and uh where we're able to play and how that were you North America before or Americas uh Americas America so you're familiar with the sovereignty issue yeah a little already Latin America is certainly uh exposed me plenty of plenty of that yes 100 so you mentioned uh uh Tam before I think it was total available Market you had a different word for the t uh total addressable Mark still addressable Market okay fine so I'm hearing Global that's a tam expansion opportunity iot is definitely you know the OT piece and then just working better um you know better Groove swing with the partners for higher velocity when you think about the total available total addressable market and and accelerating penetration and growing your Tam I've seen the the charts in your investor presentation and you know starts out small and then grows to you know I think it could be 100 billion I do a lot of Tam analysis but just my back a napkin had you guys approaching 100 billion anyway how do you think about the Tam and what role do Partners play in terms of uh increasing your team yeah that's a great question I mean if you think about it today uh George announced on the day after our 11th anniversary as a company uh 20 000 customers and and if you look at that addressable Market just in the SMB space it's north of 50 million companies that are running on Legacy on-prem Solutions and it really provides us an opportunity to provide those customers with uh Next Generation uh threat protection and and detection and and response partners are the route to get there there is no doubt that we cannot cover 50 50 million companies requires a span of of uh of of of a number of service providers and mssps to get to that market and that's where we're making our bets what what's an SMB that is a candidate for crowdstrike like employee size or how do you look at that like what's the sort of minimum range yeah the way we segment out the SMB space it's 250 seats or endpoints and below 250 endpoints yes right and so it's going to be fairly significant so math changes with xdr with the X and xdr being extended the greater number of endpoints means that a customer today when you talk about total addressable Market that market can expand even without expanding the number of net new customers is that a fair yeah Fair assessment yep yeah you got that way in that way but but map that to like company size can you roughly what's the what's the smallest s that would do business with crowdstrike yeah I mean we have uh companies as small as five employees that will leverage crowd strike yeah 100 and they've got hundreds of endpoints oh no I'm sorry five uh five endpoints is oh okay so it's kind of 250 endpoints as well like the app that's the sweets that's it's that's kind of the Top Line we look at and then we focus oh okay when we Define SMB it's below so five to 250 endpoints right yes and so roughly so you're talking to companies with less than 100 employees right yeah yeah so I mean this is what I was talking about before I say I look around the the ecosystem myself it kind of reminds me of service now in 2013 but servicenow never had a SMB play right and and you know very kind of proprietary closed platform not that you don't have a lot of propriety in your platform you do but you they were never going to get down Market there and their Tam is not as big in my view but I mean your team is when you start bringing an iot it's it's mind-boggling it's endless how large it could be yeah all right so what's your vision for the Elevate program partner program well I I look at uh a couple things that we've we've have in place today one is um one is we've we've established for the first time ever at crowdstrike the Alliance program management office apmo and that team is focused on building out our next Generation partner program and that's you know processes it's you know uh it's it's ring fencing but it's most important importantly identifying capabilities for partners to expand to reduce friction and uh grow their business together with crowdstrike we also look at uh what we call program Harmony and that's taking all of the partner types or the majority of the partner types and starting to look at it with the customer in the middle and so multiple partners can play a role on the journey to bringing a customer on board initially to supporting that customer going forward and they can all participate and be rewarded for their contribution to that opportunity so it's really a key area for us going forward Hub and spoke model with the center of the that model is the customer you're saying that's good okay so you're not like necessarily fighting each other for for a sort of ownership of that model but uh cool Michael Rogers thanks so much for coming on thecube it was great to have you my pleasure thank you for having me you're welcome all right keep it right there Dave Nicholson and Dave vellante we'll be right back to Falcon 22 from the Aria in Las Vegas you're watching thecube foreign [Music]

(light corporate music) >> Welcome back, everyone, to VMware Explore 22. I'm John Furrier, host of theCUBE with Dave Vellante. Our 12th year covering VMware's User Conference, formerly known as VMworld, now rebranded as VMware Explore. Two great cube alumnus coming down the cube. Ricky Cooper, SVP, Worldwide Partner Commercials VMware, great to see you. Thanks for coming on. >> Thank you. >> We just had a great chat- >> Good to see you again. >> With the Discovery and, of course, Joseph George, vice president of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys this year is very curious in VMware. A lot goin' on, the name change, the event. Big, big move. Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference kind of, people were wondering what would be the barometer of the event. We're reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. >> Mhm. >> I mean, this is not a show that's lookin' like it's going to be, ya' know, going down. >> Yeah. >> This is clearly a wave. We're calling it Super Cloud. Multi-Cloud's their theme. Clearly the cloud's happenin'. We not to date ourselves, but 2013 we were discussing on theCUBE- >> We talked about that. Yeah. Yeah. >> Discover about DevOps infrastructure as code- >> Mhm. >> We're full realization now of that. >> Yep. >> This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because customers are refactoring. They are lookin' at Cloud Native. The whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. >> Yeah. >> What's going on? >> Yeah. Absolutely. We're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up, all the way up the stack, and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and your applications, customers want to live in that sort of a cloud environment and so we're seeing a renewed interest. A lot of conversations we're having with customers now, a lot of customers committing to that model where they have applications and workloads running at the Edge, in their data center, and in the public cloud in a lot of cases, but having that mobility, having that control, being able to have security in their own, you know, in their control. There's a lot that you can do there and, obviously, partnering with VMware. We've been partners for so long. >> 20 years about. Yeah. Yeah. >> Yeah. At least 20 years, back when they invented stuff, they were inventing way- >> Yeah. Yeah. Yeah. >> VMware's got a very technical culture, but Ricky, I got to say that, you know, we commented earlier when Raghu was on, the CEO, now CEO, I mean, legendary product. I sent the trajectory to VMware. Everyone knows that. VMware, I can't know whether to tell it was VMware or HP, HP before HPE, coined hybrid- >> Yeah. >> 'Cause you guys were both on. I can't recall, Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. >> Yes. I- (cross talking) >> They had a big thing with Pat Gelsinger. Dave, remember when he said, you know, he got in my grill on theCUBE live? But now you see- >> But if you focus on that Multi-Cloud aspect, right? So you've got a situation where our customers are looking at Multi-Cloud and they're looking at it not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors? You're seeing a whole seed change. You're seeing partners now looking at this. So, look at the OEMs, you know, the ones that have historically been vSphere customers are now saying, they're coming in droves saying, okay, what is the next step? Well, how can I be a Multi-Cloud partner with you? >> Yep. Right. >> How can I look at other aspects that we're driving here together? So, you know, GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be, right, let's make sure that we've got the agreements in place that support this SaaS and subscription motion going forward and then the sky's the limit for us. >> You're pluggin' that right into GreenLake, right? >> Well, here's why. Here's why. So customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to a, you know, an On-Premise. You've got the hardware, you've got the software, you've got the, you know, the guys on board to maintain this through its life cycle. >> Right. I mean, this is complicated stuff. >> Yeah. >> Now we've got a situation where you can say, hey, we can get an SLA On-Premise. >> Yeah. And I think what you're seeing is it's very analogous to having a financial advisor just manage your portfolio. You're taking care of just submitting money. That's really a lot of what the customers have done with the public cloud, but now, a lot of these customers are getting savvy and they have been working with VMware Technologies and HPE for so long. They've got expertise. They know how they want their workloads architected. Now, we've given them a model where they can leverage the Cloud platform to be able to do this, whether it's On-Premise, The Edge, or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself? How, what are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing, last time we talked to HPE Discover we talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously, the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems On-Prem is a phenomenal idea for all these customers and they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners, such as HPA, using other partners for various areas of their services implementation as well. So that's another phenomenon, you know? You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too, you know, I mean, the digital modernization that's goin' on. The transformation, whatever you want to call it, is complicated. >> Yeah. >> That's clear. One of the things I liked about the keynote today was the concept of cloud chaos. >> Yeah. >> Because we've been saying, you know, quoting Andy Grove at Intel, "Let chaos rain and rain in the chaos." >> Mhm. >> And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it kicks the inflection point, that's up into the right. So- >> Prime idea right here. Yeah. >> So GreenLake is- >> Well, also look at the distribution model and how that's changed. A couple of points on a deal. Now they're saying, "I'll be your aggregator. I'll take the strain and I'll give you scale." You know? "I'll give you VMware Scale for all, you know, for all of the various different partners, et cetera." >> Yeah. So let's break this down because this is, I think, a key point. So complexity is good, but the old model in the Enterprise market was- >> Sure. >> You solve complexity with more complexity. >> Yeah. >> And everybody wins. Oh, yeah! We're locked in! That's not what the market wants. They want some self-service. They want, as a service, they want easy. Developer first security data ops, DevOps, is already in the cycle, so they're going to want simpler. >> Yeah. >> Easier. Faster. >> And this is kind of why I'll say, for the big announcement today here at VMware Explore, around the VMware vSphere Distributed Services Engine, Project Monterey- >> Yeah. >> That we've talked about for so long, HPE and VMware and AMD, with the Pensando DPU, actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake, that's- >> That's invested in Pensando, right? >> We are. >> We're all investors. Yeah. >> What's the benefit of that? What's, that's a great point you made. What's the value to the customer, bottom line? That deep co-engineering, co-partnering, what does it deliver that others don't do? >> Yeah. Well, I think one example would be, you know, a lot of vendors can say we support it. >> Yep. >> That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car and that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando, as well as the business work to make that simple and easy, that transaction to work, and then to be able to make it available as a service, is really what made, it's, that's why it's such a winner winner with our- >> But it's also a lower cost out of the box. >> Yep. >> Right. >> So you get in whatever. Let's call it 20%. Okay? But there's, it's nuanced because you're also on a new technology curve- >> Right. >> And you're able to absorb modern apps, like, you know, we use that term as a bromide, but when I say modern apps, I mean data-rich apps, you know, things that are more AI-driven not the conventional, not that people aren't doing, you know, SAP and CRM, they are, but there's a whole slew of new apps that are coming in that, you know, traditional architectures aren't well-suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of, you know, going to the next stage, which is to go to market between the two organizations that before. At the moment, you know, HPE's running off doing various different things. We were running off to it again, it's that chaos that you're talking about. In cloud chaos, you got to go to market chaos. >> Yeah. >> But by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake- >> Mhm. >> And be known in the marketplace for these solutions? Then you get a, you know, an organization that's really behind the go to market. You can help with sales activation the enablement, you know, and then we benefit from the scale of HPE. >> Yeah. >> What are those solutions I mean? Is it just, is it I.S.? Is it, you know, compute storage? >> Yeah. >> Is it, you know, specific, you know, SAP? Is it VDI? What are you seeing out there? >> So right now, for this specific technology, we're educating our customers on what that could be and, at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with Project Monterey, and this is now allowing customers to think about, okay, where are their use cases. So I'm, rather than going and, say, use it for this, we're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level that could be somewhere else like networking as a great example, right? And allowing more of those compute cycles to be available. So where there are performance requirements for an application, where there is timely response that's needed for, you know, for results to be able to take action on, to be able to get insight from data really quick, those are places where we're starting to see those services moving onto something like a DPU and that's where this makes a whole lot more sense. >> Okay. So, to get this right, you got the hybrid cloud, right? >> [Ricky And Joseph] Yes. >> You got GreenLake and you got the distributed engine. What's that called the- >> For, it's HPE ProLiant- >> ProLiant with- >> The VMware- >> With vSphere. >> That's the compute- >> Distributed. >> Okay. So does the customer, how do you guys implement that with the customer? All three at the same time or they mix and match? What's that? How does that work? >> All three of those components. Yeah. So the beauty of the HP ProLiant with VMware vSphere-distributed services engine- >> Mhm. >> Also known as Project Monterey for those that are keeping notes at home- >> Mhm. >> It's, again, already pre-engineered. So we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, you know, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware, and because, if you're familiar and comfortable with all the things that HP ProLiant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular (indistinct). >> Sumit Dhawan had a great quote on theCUBE just an hour or so ago. He said you have to be early to be first. >> Yeah. (laughing) >> I love that quote. Okay. So you were- >> I fought the urge. >> You were first. You were probably a little early, but do you have a lead? I know you're going to say yes, okay. Let's just- >> Okay. >> Let's just assume that. >> Okay. Yeah. >> Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah. If you lead. If you're the best. >> We go to the source of the truth which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early. We're keeping our lead. What are the things that you- >> I'll say it this way. I'll say it this way. We've been in a lot of businesses where there, where we do compete head-to-head in a lot of places. >> Mhm. >> And we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well, let me go shop around. It is HP Green. Let's talk about how we actually build this solution. >> And I can tell you, from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign is that, hey, we need to see this partnership come together in GreenLake. >> Yeah. >> It's the old adage that Amazon used to coin and Andy Jassy, you know, they do the undifferentiated heavy lifting. >> [Ricky And Joseph] Yeah. >> A lot of that's now Cloud operations. >> Mhm. >> Underneath it is infrastructure's code to the developer. >> That's right. >> That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake- >> Right. >> Which is why there's no objections probably. >> Right. >> What's the choice? What are you going to shop? >> Yeah. >> There's nothing to shop around. >> Yeah, exactly. And then we've got, you know, that is really icing on the cake that we've, you know, that we've been building for quite some time and there is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Like, times are tough right now. Supply chain issues, all that stuff. We've talked, all talked about it, but at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We had a great use case. The storage team, they were provisioning with containers. >> Yes. >> Storage is a service instantly we're seeing with you guys with VMware. Your customers' bringing in a lot of that into the mix as well. I got to ask 'cause every event we talk about AI and machine learning- >> Mhm. >> Automation and DevOps are now infiltrating in with the CICD pipeline. Security and data become a big conversation. >> [Ricky And Joseph] Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on Green. Like, I've been a big fan from day one. Now, it's got maturity on it. I know it's going to get a lot more headroom to do. There's still a lot of work to do, but directionally it's pretty accurate, you know? It's going to be a success. There's still concern about security, the data layer. That's agnostic of environment, private cloud, hybrid, public, and Edge. So that's important and security- >> Great. >> Has got a huge service area. >> Yeah. >> These are on working progress. >> Yeah. Yeah. >> How do you guys view those? >> I think you've just hit the net on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here and, you know, I don't think anybody is really emerging as a true leader. It's just a continuation of, you know, tryin' to get that right because it is what is the most important thing to our customers. >> Right. >> And the industry is really sort of catching up to that. >> And, you know, when you start talking about privacy and when you, it's not just about company information. It's about individuals' information. It's about, you know, information that, if exposed, actually could have real impact on people. >> Mhm. >> So it's more than just an I.T. problem. It is actually, and from HPE's perspective, security starts from when we're picking our suppliers for our components. Like, there are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing. My golf swing. I slice right like you wouldn't believe. (John laughing) But when I go to the golf pros, they start me back at the mechanics, the foundational pieces. Here's where the problems are and start workin' on that. So my view is, our view is, if your infrastructure is not secure, you're goin' to have troubles with security as you go further up. >> Stay in the sandbox. >> Yeah. >> Yeah. So to speak, you know, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick because you mentioned supply chain on the hardware side. You're seeing a lot of open source and supply chain in software, trusted software. >> Yep. >> How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah. Security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions and we're looking at it from the infrastructure all the way up to the actual service itself and that's the beauty of having something like HPE GreenLake. We don't have to pick, is the infrastructure or the middle where, or the top of stack application- >> It's (indistinct), right? >> It's all of it. >> Yeah. >> It's all of it. That matters. >> Quick question on the ecosystem posture. So- >> Sure. >> I remember when HP was, you know, one company and then the GSIs were a little weird with HP because of EDS, you know? You had data protector so we weren't really chatting up Veeam at the time, right? And as soon as the split happened, ecosystem exploded. Now you have a situation where you, Broadcom, is acquiring VMware. You guys, big Broadcom customer. Has your attitude changed or has it not because, oh, we meet with the customers already. Well, you've always said that, but have you have leaned in more? I mean, culturally, is HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. (John laughing) >> So first of all, VMware and HPE, we've got a variety of different partners. We always have. >> Mhm. >> Well before any Broadcom announcement came along. >> Yeah, sure. >> We've been working with a variety of partners. >> And that hasn't changed. >> And that hasn't changed. And, if your question is, has our posture toward VMware changed at all, the answer's absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware and we're going to continue to work with VMware and partner with the (indistinct). >> And of course, you know, we had to spin out ourselves in November of last year, which I worked on, you know, the whole Dell thing. >> Yeah. We still had the same chairman. >> Yeah. There- (Dave chuckling) >> Yeah, but since then, I think what's really become very apparent and not, it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast and we need to rely on each other to help us as, you know, solve the customer problems that are out there. So there's a willingness to overlook some things that, in the past, may have been, you know, barriers. >> But it's important to note also that it's not that we have not had history- >> Yeah. >> Right? Over, we've got over 200,000 customers join- >> Hundreds of millions of dollars of business- >> 100,000, over 10,000, or 100,000 channel partners that we all have in common. >> Yeah. Yeah. >> Yep. >> There's numerous- >> And independent of the whole Broadcom overhang there. >> Yeah. >> There's the ecosystem floor. >> Yeah. >> The expo floor. >> Right. >> I mean, it's vibrant. I mean, there's clearly a wave coming, Ricky. We talked about this briefly at HPE Discover. I want to get an update from your perspectives, both of you, if you don't mind weighing in on this. Clearly, the wave, we're calling it the Super Cloud, 'cause it's not just Multi-Cloud. It's completely different looking successes- >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs and- >> Yep. >> You know, I think every vertical will have its own power law of Cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX- >> [Ricky And Joseph] Right. >> Has to go to in-fund statement- >> Yeah. >> CapEx goes too. Thanks for the Cloud. All that's good, but there's a wave coming- >> Yeah. >> And we're trying to identify it. What do you guys see as this wave 'cause beyond Multi-Cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece, that's a whole other story, and that's what everyone's fighting for, but everyone out in that ecosystem, it's a big wave coming. They've got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think that the Multi-Cloud is obviously at the epicenter. You know, if you look at the results that are coming in, a lot of our customers, this is what's leading the discussion and now we're in a position where, you know, we've brought many companies over the last few years. They're starting to come to fruition. They're starting to play a role in, you know, how we're moving forward. >> Yeah. >> Some of those are a bit more applicable to the commercial space. We're finding commercial customers that never bought from us before. Never. Hundreds and hundreds are coming through our partner networks every single quarter, you know? So brand new to VMware. The trick then is how do you nurture them? How do you encourage them? >> So new logos are comin' in. >> New logos are coming in all the time, all the time, from, you know, from across the ecosystem. It's not just the OEMs. It's all the way back- >> So the ecosystem's back of VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that Partner Connect 2.0. When I talked to you about Multi-Cloud and what the (indistinct), you know, the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, et cetera, you know? And the use of other partners to do other services, deployment, or this stuff is becoming prevalent. Then you've got the distributors that I talked about with their, you know, their, then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and depth, it's a points-based system we've put in place now- >> It's a big pie that's developing. The market's getting bigger. >> It's getting so much bigger. And then you help- >> I know you agree, obviously, with that. >> Yeah. Absolutely. In fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question. (indistinct cross talking) Now it's everything. >> Yeah. >> And what I think that, what we're seeing in the ecosystem, is that people are finding the spots that, where they're going to play. Am I going to be on the Edge? >> Yeah. >> Am I going to be on Analytics Play? Am I going to be, you know, Cloud Transition Play? There's a lot of players are now emerging and saying, we're- >> Yeah. >> We're, we now have a place, a part to play. And having that industry view not just of, you know, a commercial customer at that level, but the two of us are lookin' at Teleco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into the- >> (indistinct) lifting. Everyone can see their position there. >> Right. >> We're now being asked for simplicity and talk to me about partner profitability. >> Yes. >> How do I know where to focus my efforts? Am I spread too thin? And, you know, that's, and my advice that the partner ecosystem out there is, hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is a good example of that. >> Yeah. >> Sounds like composability to me, but not to go back- (laughing) Guys, thanks for comin' on. I think there's a big market there. I think the fog is lifted. People seeing their spot. There's value there. Value creation equals reward. >> Yeah. >> Simplicity. Ease of use. This is the new normal. Great job. Thanks for coming on and sharing. (cross talking) Okay. Back to live coverage after this short break with more day one coverage here from the blue set here in Moscone. (light corporate music)

>> Is and who we are today as as a country, as a universe. >> Narrator: Congratulations Reggie Jackson, (inspirational music) you are a CUBE alumni. (upbeat music) >> Announcer: Live from Las Vegas it's theCUBE covering Splunk.Conf19. Brought to you by Splunk. >> Okay, welcome back everyone it's theCUBE's live coverage here in Las Vegas for Splunk.Conf19. I am John Furrier host of theCUBE. It's the 10th Anniversary of Splunk's .Conf user conference. Our 7th year covering it. It's been quite a ride, what a wave. Splunk keeps getting stronger and better, adding more features, and has really become a powerhouse from a third party security standpoint. We got a C-SO in theCUBE on theCUBE today. Chief Information Security, John Frushour Deputy Chief (mumbles) New York-Presbyterian The Award Winner from the Data to Everywhere Award winner, welcome by theCube. >> Thank you, thank you. >> So first of all, what is the award that you won? I missed the keynotes, I was working on a story this morning. >> Frushour: Sure, sure. >> What's the award? >> Yeah, the Data Everything award is really celebrating using Splunk kind of outside its traditional use case, you know I'm a security professional. We use Splunk. We're a Splunk Enterprise Security customer. That's kind of our daily duty. That's our primary use case for Splunk, but you know, New York Presbyterian developed the system to track narcotic diversion. We call it our medication analytics platform and we're using Splunk to track opioid diversion, slash narcotic diversions, same term, across our enterprise. So, looking for improper prescription usage, over prescription, under prescription, prescribing for deceased patients, prescribing for patients that you've never seen before, superman problems like taking one pill out of the drawer every time for the last thirty times to build up a stash. You know, not resupplying a cabinet when you should have thirty pills and you only see fifteen. What happened there? Everything's data. It's data everything. And so we use this data to try to solve this problem. >> So that's (mumbles) that's great usage we'll find the drugs, I'm going to work hard for it. But that's just an insider threat kind of concept. >> Frushour: Absolutely. >> As a C-SO, you know, security's obviously paramount. What's changed the most? 'Cause look at, I mean, just looking at Splunk over the past seven years, log files, now you got cloud native tracing, all the KPI's, >> Frushour: Sure. >> You now have massive volumes of data coming in. You got core business operations with IOT things all instrumental. >> Sure, sure. >> As a security offer, that's a pretty big surface area. >> Yeah. >> How do you look at that? What's your philosophy on that? >> You know, a lot of what we do, and my boss, the C-SO (mumbles) we look at is endpoint protection and really driving down to that smaller element of what we complete and control. I mean, ten, fifteen years ago information security was all about perimeter control, so you've got firewalls, defense and depth models. I have a firewall, I have a proxy, I have an endpoint solution, I have an AV, I have some type of data redaction capability, data masking, data labeling capability, and I think we've seen.. I don't think security's changed. I hear a lot of people say, "Oh, well, information security's so much different nowadays." No, you know, I'm a military guy. I don't think anything's changed, I think the target changed. And I think the target moved from the perimeter to the endpoint. And so we're very focused on user behavior. We're very focused on endpoint agents and what people are doing on their individual machines that could cause a risk. We're entitling and providing privilege to end users today that twenty years ago we would've never granted. You know, there was a few people with the keys to the kingdom, and inside the castle keep. Nowadays everybody's got an admin account and everybody's got some level of privilege. And it's the endpoint, it's the individual that we're most focused on, making sure that they're safe and they can operate effectively in hospitals. >> Interviewer: What are some of the tactical things that have changed? Obviously, the endpoint obviously shifted, so some tactics have to change probably again. Operationally, you still got to solve the same problem: attacks, insider threats, etc. >> Frushour: Yeah. >> What are the tactics? What new tactics have emerged that are critical to you guys? >> Yeah, that's a tough question, I mean has really anything changed? Is the game really the game? Is the con really the same con? You look at, you know, titans of security and think about guys like Kevin Mitnick that pioneered, you know, social engineering and this sort of stuff, and really... It's really just convincing a human to do something that they shouldn't do, right? >> Interviewer: Yeah. >> I mean you can read all these books about phone freaking and going in and convincing the administrative assistant that you're just late for meeting and you need to get in through that special door to get in that special room, and bingo. Then you're in a Telco closet, and you know, you've got access. Nowadays, you don't have to walk into that same administrative assistant's desk and convince 'em that you're just late for the meeting. You can send a phishing email. So the tactics, I think, have changed to be more personal and more direct. The phishing emails, the spear phishing emails, I mean, we're a large healthcare institution. We get hit with those types of target attacks every day. They come via mobile device, They come via the phishing emails. Look at the Google Play store. Just, I think, in the last month has had two apps that have had some type of backdoor or malicious content in them that got through the app store and got onto people's phones. We had to pull that off people's phones, which wasn't pretty. >> Interviewer: Yeah. >> But I think it's the same game. It's the same kind to convince humans to do stuff that they're not supposed to do. But the delivery mechanism, the tactical delivery's changed. >> Interviewer: How is Splunk involved? Cause I've always been a big fan of Splunk. People who know me know that I've pretty much been a fan boy. The way they handle large amounts of data, log files, (mumbles) >> Frushour: Sure. >> and then expand out into other areas. People love to use Splunk to bring in their data, and to bring it into, I hate to use the word data leg but I mean, Just getting... >> Yeah >> the control of the data. How is data used now in your world? Because you got a lot of things going on. You got healthcare, IOT, people. >> Frushour: Sure, sure. >> I mean lives are on the line. >> Frushour: Lives are on the line, yeah. >> And there's things you got to be aware of and data's key. What is your approach? >> Well first I'm going to shamelessly plug a quote I heard from (mumbles) this week, who leads the security practice. She said that data is the oxygen of AI, and I just, I love that quote. I think that's just a fantastic line. Data's the oxygen of AI. I wish I'd come up with it myself, but now I owe her a royalty fee. I think you could probably extend that and say data is the lifeline of Splunk. So, if you think about a use case like our medication analytics platform, we're bringing in data sources from our time clock system, our multi-factor authentication system, our remote access desktop system. Logs from our electronic medical records system, Logs from the cabinets that hold the narcotics that every time you open the door, you know, a log then is created. So, we're bringing in kind of everything that you would need to see. Aside from doing something with actual video cameras and tracking people in some augmented reality matrix whatever, we've got all the data sources to really pin down all the data that we need to pin down, "Okay, Nurse Sally, you know, you opened that cabinet on that day on your shift after you authenticated and pulled out this much Oxy and distributed it to this patient." I mean, we have a full picture and chain of everything. >> Full supply chain of everything. >> We can see everything that happens and with every new data source that's out there, the beauty of Splunk is you just add it to Splunk. I mean, the Splunk handles structured and unstructured data. Splunk handles cis log fees and JSON fees, and there's, I mean there's just, it doesn't matter You can just add that stream to Splunk, enrich those events that were reported today. We have another solution which we call the privacy platform. Really built for our privacy team. And in that scenario, kind of the same data sets. We're looking at time cards, we're looking at authentication, we're looking at access and you visited this website via this proxy on this day, but the information from the EMR is very critical because we're watching for people that open patient records when they're not supposed to. We're the number five hospital in the country. We're the number one hospital in the state of New York. We have a large (mumbles) of very important people that are our patients and people want to see those records. And so the privacy platform is designed to get audit trails for looking at all that stuff and saying, "Hey, Nurse Sally, we just saw that you looked at patient Billy's record. That's not good. Let's investigate." We have about thirty use cases for privacy. >> Interviewer: So it's not in context of what she's doing, that's where the data come in? >> That's where the data come in, I mean, it's advanced. Nurse Sally opens up the EMR and looks at patient Billy's record, maybe patient Billy wasn't on the chart, or patient Billy is a VIP, or patient Billy is, for whatever reason, not supposed to be on that docket for that nurse, on that schedule for that nurse, we're going to get an alarm. The privacy team's going to go, "Oh, well, were they supposed to look at that record?" I'm just giving you, kind of, like two or three uses cases, but there's about thirty of them. >> Yeah, sure, I mean, celebrities whether it's Donald Trump who probably went there at some point. Everyone wants to get his taxes and records to just general patient care. >> Just general patient care. Yeah, exactly, and the privacy of our patients is paramount. I mean, especially in this digital age where, like we talked about earlier, everyone's going after making a human do something silly, right? We want to ensure that our humans, our nurses, our best in class patient care professionals are not doing something with your record that they're not supposed to. >> Interviewer: Well John, I want to hear your thoughts on this story I did a couple weeks ago called the Industrial IOT Apocalypse: Now or Later? And the provocative story was simply trying to raise awareness that malware and spear phishing is just tactics for that. Endpoint is critical, obviously. >> Sure. >> You pointed that out, everyone kind of knows that . >> Sure. >> But until someone dies, until there's a catastrophe where you can take over physical equipment, whether it's a self-driving bus, >> Frushour: Yeah. >> Or go into a hospital and not just do ransom ware, >> Frushour: Absolutely. >> Actually using industrial equipment to kill people. >> Sure. >> Interviewer: To cause a lot of harm. >> Right. >> This is an industrial, kind of the hacking kind of mindset. There's a lot of conversations going on, not enough mainstream conversations, but some of the top people are talking about this. This is kind of a concern. What's your view on this? Is it something that needs to be talked about more of? Is it just BS? Should it be... Is there any signal there that's worth talking about around protecting the physical things that are attached to them? >> Oh, absolutely, I mean this is a huge, huge area of interest for us. Medical device security at New York Presbyterian, we have anywhere from about eighty to ninety thousand endpoints across the enterprise. Every ICU room in our organization has about seven to ten connected devices in the ICU room. From infusion pumps to intubation machines to heart rate monitors and SPO2 monitors, all this stuff. >> Interviewer: All IP and connected. >> All connected, right. The policy or the medium in which they're connected changes. Some are ZP and Bluetooth and hard line and WiFi, and we've got all these different protocols that they use to connect. We buy biomedical devices at volume, right? And biomedical devices have a long path towards FDA certification, so a lot of the time they're designed years before they're fielded. And when they're fielded, they come out and the device manufacturer says, "Alright, we've got this new widget. It's going to, you know, save lives, it's a great widget. It uses this protocol called TLS 1.0." And as a security professional I'm sitting there going, "Really?" Like, I'm not buying that but that's kind of the only game, that's the only widget that I can buy because that's the only widget that does that particular function and, you know, it was made. So, this is a huge problem for us is endpoint device security, ensuring there's no vulnerabilities, ensuring we're not increasing our risk profile by adding these devices to our network and endangering our patients. So it's a huge area. >> And also compatible to what you guys are thinking. Like I could imagine, like, why would you want a multi-threaded processor on a light bulb? >> Frushour: Yeah. >> I mean, scope it down, turn it on, turn it off. >> Frushour: Scope it down for its intended purpose, yeah, I mean, FDA certification is all about if the device performs its intended function. But, so we've, you know, we really leaned forward, our CSO has really leaned forward with initiatives like the S bomb. He's working closely with the FDA to develop kind of a set of baseline standards. Ports and protocols, software and services. It uses these libraries, It talks to these servers in this country. And then we have this portfolio that a security professional would say, "Okay, I accept that risk. That's okay, I'll put that on my network moving on." But this is absolutely a huge area of concern for us, and as we get more connected we are very, very leaning forward on telehealth and delivering a great patient experience from a mobile device, a phone, a tablet. That type of delivery mechanism spawns all kinds of privacy concerns, and inter-operability concerns with protocol. >> What's protected. >> Exactly. >> That's good, I love to follow up with you on that. Something we can double down on. But while we're here this morning I want to get back to data. >> Frushour: Sure. >> Thank you, by the way, for sharing that insight. Something I think's really important, industrial IOT protection. Diverse data is really feeds a lot of great machine learning. You're only as good as your next blind spot, right? And when you're doing pattern recognition by using data. >> Frushour: Absolutely. >> So data is data, right? You know, telecraft, other data. Mixing data could actually be a good thing. >> Frushour: Sure, sure. >> Most professionals would agree to that. How do you look at diverse data? Because in healthcare there's two schools of thought. There's the old, HIPAA. "We don't share anything." That client privacy, you mentioned that, to full sharing to get the maximum out of the AI or machine learning. >> Sure. >> How are you guys looking at that data, diverse data, the sharing? Cause in security sharing's good too, right? >> Sure, sure, sure. >> What's your thoughts on sharing data? >> I mean sharing data across our institutions, which we have great relationships with, in New York is very fluid at New York Presbyterian. We're a large healthcare conglomerate with a lot of disparate hospitals that came as a result of partnership and acquisition. They don't all use the same electronic health record system. I think right now we have seven in play and we're converging down to one. But that's a lot of data sharing that we have to focus on between seven different HR's. A patient could move from one institution to the next for a specialty procedure, and you got to make sure that their data goes with them. >> Yeah. >> So I think we're pretty, we're pretty decent at sharing the data when it needs to be shared. It's the other part of your question about artificial intelligence, really I go back to like dedication analytics. A large part of the medication analytics platform that we designed does a lot of anomaly detections, anomaly detection on diversion. So if we see that, let's say you're, you know, a physician and you do knee surgeries. I'm just making this up. I am not a clinician, so we're going to hear a lot of stupidity here, but bare with me. So you do knee surgeries, and you do knee surgeries once a day, every day, Monday through Friday, right? And after that knee surgery, which you do every day in cyclical form, you prescribe two thousand milligrams of Vicodin. That's your standard. And doctors, you know, they're humans. Humans are built on patterns. That's your pattern. Two thousand milligrams. That's worked for you; that's what you prescribe. But all of the sudden on Saturday, a day that you've never done a knee surgery in your life for the last twenty years, you all of a sudden perform a very invasive knee surgery procedure that apparently had a lot of complications because the duration of the procedure was way outside the bounds of all the other procedures. And if you're kind of a math geek right now you're probably thinking, "I see where he's going with this." >> Interviewer: Yeah. >> Because you just become an anomaly. And then maybe you prescribe ten thousand milligrams of Vicodin on that day. A procedure outside of your schedule with a prescription history that we've never seen before, that's the beauty of funneling this data into Splunk's ML Toolkit. And then visualizing that. I love the 3D visualization, right? Because anybody can see like, "Okay, all this stuff, the school of phish here is safe, but these I've got to focus on." >> Interviewer: Yeah. >> Right? And so we put that into the ML Toolkit and then we can see, "Okay, Dr. X.." We have ten thousand, a little over ten thousand physicians across New York Presbyterian. Doctor X right over here, that does not look like a normal prescriptive scenario as the rest of their baseline. And we can tweak this and we can change precision and we can change accuracy. We can move all this stuff around and say, "Well, let's just look on medical record number, Let's just focus on procedure type, Let's focus on campus location. What did they prescribe from a different campus?" That's anomalous. So that is huge for us, using the ML Toolkit to look at those anomalies and then drive the privacy team, the risk teams, the pharmacy analytics teams to say, "Oh, I need to go investigate." >> So, that's a lot of heavy lifting for ya? Let you guys look at data that you need to look at. >> Absolutely. >> Give ya a (mumbles). Final question, Splunk, in general, you're happy with these guys? Obviously, they do a big part of your data. What should people know about Splunk 2019, this year? And are you happy with them? >> Oh, I mean Splunk has been a great partner to New York Presbyterian. We've done so much incredible development work with them, and really, what I like to talk about is Splunk for healthcare. You know, we've created, we saw some really important problems in our space, in this article. But, we're looking, we're leaning really far forward into things like risk based analysis, peri-op services. We've got a microbial stewardship program, that we're looking at developing into Splunk, so we can watch that. That's a huge, I wouldn't say as big of a crisis as the opioid epidemic, but an equally important crisis to medical professionals across this country. And, these are all solvable problems, this is just data. Right? These are just events that happen in different systems. If we can get that into Splunk, we can cease the archaic practice of looking at spreadsheets, and look up tables and people spending days to find one thing to investigate. Splunk's been a great partner to us. The tool it has been fantastic in helping us in our journey to provide best in-class patient care. >> Well, congratulations, John Frushour, Deputy Chief Information Security Officer, New York Presbyterian. Thanks for that insight. >> You're welcome. >> Great (mumbles) healthcare and your challenge and your opportunity. >> Congratulations for the award winner Data to Everything award winner, got to get that slogan. Get used to that, it's two everything. Getting things done, he's a doer. I'm John Furrier, here on theCube doing the Cube action all day for three days. We're on day two, we'll be back with more coverage, after this short break. (upbeat music)

(click and snap) >> Hi, I'm Stu Miniman with theCUBE, and we're here at the Winslow Technology Group Dell EMC User Group here in Boston in the shadows of Fenway Park. Happy to have with me Mike Franco, who's the principal solutions architect with Virtustream. Mike, thanks so much for joining us. >> Thank you Stu. Thanks for having me, and this is a terrific event. It really is. I mean to be here with one of our first channel partners, and by that I mean Winslow Group has been part of Dell for many, many years. They now sell the whole Dell EMC platform with the acquisition last year. And Virtusteam, we opened up a channel partnership just a few months ago, and they were one of the first to join. And here I am in front of hundreds of clients. This is a great opportunity. >> All right, that's great. So we've talked to Scott Winslow, his organization, some of the partners. So, I understand a lot about the Dell relationship. How WTG has been kind of expanding into cloud. Virtustream. Tell us why there's a channel partner now. What that means, and what you look to for somebody like Winslow Group. >> Well, Winslow Group opens up a lot of clients for us, okay? And we need to sell through those partners. Most of these clients are running operations, maybe in the small midsize business, which are really perfect candidates for what we do. Virtustream provides a managed cloud. So unlike the Amazons, the Googles, and the Azures which are great solutions, we're finding clients and saying, "Hey, that was good." But as we start moving to these mission critical applications. The applications that are running my business. We need a managed service. We need performance. We need IO type of critical workloads to be run in a more secure and performance- laden type of cloud. >> Yeah, Jeremy Burton gave the opening remarks. The CMO of Dell. The Dell family really has a large portfolio. I look at kind of the hybrid and multi-cloud world these days, and from a Dell standpoint, you know, VMware has a number of solutions, including VMware on AWS. Dell was working with Microsoft on the Azure (mumbles) solutions. How does Virtustream fit into the overall portfolio? How do you help position, you know, where that fits, okay? Get the mind share and (stutters) the users? >> Great question. I mean, back in May, we announced a connection, okay? So our Cloud Connect, which is vRealized into our stream based clouds. Extreme is our cloud management platform, and a technology that we use to run our off prem clouds. So clients now have the capability through vRealize automation to recognize our cloud into revision, and to modify and manage their workloads through that. We also announced in May, a partnership with our sister company Pivotal. Okay, on their Cloud Foundry. So we now have in Virtustream Enterprise Cloud, the capability to run Cloud Foundry in a managed fashion. Okay, again, Cloud Foundry is a technology that a lot of developers will be using to build applications, but it also runs those applications. And now that those applications are becoming stateful and a critical part of their business, they're looking to somebody to manage that. And now we have the capability. And then we talk about the rest of the EMC portfolio, where Native Hybrid Cloud is a package solution that's built on vRacks or vRails, right? Dell's converged black forms with the Native Hybrid Cloud or Pivotal Cloud Foundry, lay it right on top of it with the tools to be able to manage it. That's sold directly to a client, and we have the capability as Virtustream to manage those. So now the client can have these on-client premise solutions, as well as being able to tether back to our enterprise cloud. Our Virtustream Enterprise Cloud. >> Yep. Mike, we saw in the storage industry, there's lots of different solutions, because there's lots of different needs. I find there is no typical cloud strategy when it comes to most companies. But when you're talking to users, whether it be at this event or you know, out talking to customers, you know, why are they coming to Virtustream? What are the big questions they're asking you? What are the challenges that they see, and how do you help them? >> So, I see most of the time they come to us is because at these types of events, they are clients that are delighted with Dell EMC technologies, right? Dell EMC is a leader in almost every product that they sell, okay? And not only that, but the customer satisfaction, the client care service that Dell EMC provides is second to none. We're an extension of that, okay? We have the ability to manage either on prem, or of prem, and that gray area in between in helping them enable to get to the cloud. So, it really has opened up a lot of doors for Virtustream, and yes the solutions are endless. But we had the capability to manage that for them on their prem, and we've been very successful doing it. >> Great. Mike, we know SAP was one of those solutions that really Virtustream made its name on. Well, I know you continued to work on that. Can you give us, you mentioned Cloud Foundry. What are some of the applications? What are some of the big use cases that your customers are having success with? >> So in June we announced the Virtustream Healthcare Cloud. Okay, so what is that? That's our enterprise cloud, now tailored specifically for the healthcare compliance. So it's HIPAA compliant. And also, we're managing some of the more critical applications. The healthcare environment is not cloud native, okay? It's still based on the platform too, right? They virtualized the client server, the three-tiered architecture database, web and app server type of environments that the systems have reckoned, okay? We're expanding into electronic medical records, EMRs, critical client patient care, some analytics for medication. So we're moving into those other areas that's complimenting the SAP work that we're doing. >> Okay, well Mike, appreciate you giving us the updates on Virtustream. Thanks so much for joining us here at the Winslow Technology Group Dell EMC User Conference. (click and snap)

>> Hi I'm Stu Miniman with The Cube, and we're here at the Winslow Technology Group Dell EMC User Conference here at the Hotel Commonwealth in Boston. Happy to have with me Mike Berthiaume who is the northeast SE manager with Nutanix. Mike it's great to see ya. >> And I'm happy to be here Stu. Thanks for having me, appreciate it. >> So Mike, I've actually known you for a bunch of years. We've been in some of the local user groups, actually moderated a panel you were on a couple of years ago. Talk to us a little bit about Nutanix's channel and of course the relationship with Winslow. >> Excellent, I think Nutanix's channel is very strong. As you know, I think a lot of our viewers know, all of our Nutanix sales are done through the channel. So we are a 100% channel focused company. The Winslow Technology Group has been a tremendous channel partner for us in New England and other parts of the country as well growing their business down in the southeast and the New York Metro area. But they've been fantastic. And what makes them a little bit interesting, you know, they are very focused on Dell EMC, right? So being part of the Dell EMC portfolio opens up quite a few opportunities I think for Nutanix. And it really I think helps Dell EMC complete their portfolio with our technology. >> Sure, Mike absolutely. We're going to be talking to Scott Winslow today. You know, been using Dell, and I think was one of the earliest of the Dell XC customers out there. What is it for the customers that they look for, I guess specifically for Dell XC from a partner like Winslow Technology Group? >> I think from, you know, customers are looking for a partner who has their best interest at heart, right? So the value at a reseller as in specifically Winslow is going to their customers as trusted advisors, as consultants, understanding business challenges, and how to they can solve those with technology. And Nutanix is a natural fit, specifically Dell XC, due to the simplicity, you know, the non disruptive operational procedures that we can bring in. And that's some of the new exciting stuff around our enterprise cloud operating system that we recently talked about at our .NEXT conference. I think the vision that Nutanix holds is in lockstep with what Winslow is trying to do for its customer base here in New England. >> Mike, I want you to talk a little bit about your customers that you're meeting with. What do they care about? What are the drivers there? What are things like converged, hyperconverged, and cloud? Does that mean something to them, or how is it, how do they say it in their business terms? >> Yeah I think when we talk to customers, most customers today, almost all customers, know what converged infrastructure is. Hyperconverged I would say is a little bit less than a converged, but most customers are educated and understand the concepts. I think when we start talking to customers and educate them about the XC platform in Nutanix and open their eyes to this concept of enterprise cloud or enterprise cloud operating system, it changes the discussion. We see, typically I'll see a lot of light bulbs go off and a lot of, "I didn't realize that Nutanix could do that," or "I didn't realize you guys had a native integration with public cloud" or we're focused in the application stack which is again some of the announcements that we made last week, or a few weeks ago now, at .NEXT. >> Yeah, specifically around cloud, what's the, I find there is no typical state out there. Companies are all over the map trying to figure out kind of hybrid or multicloud. Give us a couple examples, probably can't give us customer names, but how are they integrating cloud? How are they building their environments to be more cloud-like, what we at Wikibon call true private cloud? What are you seeing out there in the field? >> It's a great question. So I think there is a sort of a misconception from my view that cloud is purely lift and shift. I'm going to take my applications, and I'm going to move them into public cloud or somebody else's environment. In reality, cloud is a way of doing business, right? It's a way, it's a new way of thinking about IT. We talk about mode one and mode two applications are your legacy and your more stateless applications that probably belong in a public cloud environment. And what Nutanix brings is the ability now to manage an environment in that new way, focusing both on your traditional legacy applications, but helping you move to those mode two applications, partnering with public cloud providers, specifically Google. So that's the conversation we're really having is don't think of cloud as lift and shift. Think of it as a new way of doing business. Let's figure out how cloud is going to benefit your business and align to the business style you're looking to achieve. >> Yeah, absolutely. One of the lines we've heard many times is, "Cloud is not a destination. Cloud is really an operating model for many of the users." Last thing, just what's kind of the feeling you get from people in IT today? In the keynote this morning, discussion was, "IT kind of went from a call center to supporting the business and now IT is a driver for the business." Is that what you're seeing? Where is kind of the typical IT mindset? What are they thinking about? What's exciting them, and what's worrying them? >> Yeah I think first and foremost, digital transformation has quickly become kind of the cliche term, right? Maybe one of the most hated terms in IT these days. But it's a reality I think for most folks, and understanding what digital transformation means in the business now understanding that, again IT is actually driving business value in every way. And how can they get to the level where IT's no longer in the way, you know. Long duration projects are a thing of the past. It's a move forward mentality now. Continue to push the boundaries, but yet keep, obviously keep the lights on and ensure that we're not going to disrupt existing business processes that are tried and true. So it's kind of a tough paradigm that we're in right now. And again I think Nutanix really helps because we bring that non disruptive perspective to being able to get to that next level. >> Alright, Mike Berthiaume, really appreciate you joining us here. Nutanix been a great role and working with partners like Winslow Technology Group. You're watching The Cube. We've got lots more coverage here from the WTG User Group Event.

>> Hi, I'm Stu Miniman with theCUBE and we're here at the Winslow Technology Group User Conference for Dell EMC. Happy to be joined by the keynote speaker for the event, Jeremy Burton, CMO of Dell. Jeremy great to see ya. >> Thanks Stu, always good to be on theCUBE. >> Yeah, so Jeremy, you've been on theCUBE since the inaugural event back at actually EMC World, here in Boston. >> Yeah. >> Just a short drive from where we are today >> I know, seven years. >> Yeah, seven years ago, 2010, wow, pretty amazing. One of the things you talk about Dell and EMC coming together, truly the scale and distribution is a big piece of that. So being here at a user conference for one of the partners of the company that been with Compellent since like the earliest days and with Dell and now with Dell EMC. You know, what is the importance of the channel to Dell and Dell EMC? >> Yeah I think, I mean look at relationships. A company like the Scots, they've been around 15 years. They've had wins with customers, they have trusted relationships there. And sometimes actually, they're better at presenting a solution to the customer than even we are. I mean we've got a lot of capabilities, but they're businesses deliver an outcome for the customer. And so at times they're pretty adept at really understanding you know, in local markets in particular, what that customer's business is and what the best solution for them is and giving them impartial advice. >> Yeah. Jeremy, in a recent interview you did with us, I was struck by, you talked about when we make strategy. We used to put together the five-year plan. These days, two years, things are changing drastically. >> Right. >> Turn back to, you've been with EMC and now Dell, you know, for seven years, you know, two years ago was just when Dell was looking to buy EMC. When you talked to your partners and your end user customers, how are they keeping up with change? What are some of the biggest challenges you're seeing from the user base? >> Yeah I think it's particularly difficult right now because, you know, we've all seen the cloud phenomenon. You've also got the digital thing going on at the same time. There's the big data thing going on at the same and also look, the computing devices that people use are starting to change. So, I think what you've always got to do and what we always try and do, we can't, we don't know exactly what's going to happen in future, but I think we've got a good idea of what the general themes are, and so I think the best thing we can do to help our users along with us is articulate those very clearly. What do we think of the next three, four, five years, the key themes that you should be watching are? And then you're right, like a couple of years you can have a product road map and then some aspirations beyond that what you might want to do, but the reality is if you lock into a three, four year road map and articulate it and get committed to it, I mean it could quite easily change and certainly it's more of the development team's move to like agile methodologies. There's not always really now the need to do that because you kind of build those cost corrections into the development process. >> Yeah, Jeremy, as the CMO I need to ask you about brand. >> Yeah, okay. >> So, you know, we're sitting here in the shadows of Fenway Park, used to be an EMC level, there's now a Dell EMC level. In the keynote you talked about really how Dell is a lot like Alphabet, which is the Google holding company. Dell, Dell EMC, Vergestry, Morrisey, Pivotal, VMware, all these pieces. All of the transformations going on. What do people look to the Dell family? Where do you make your mark in your brand? >> Yeah, I mean all of, the brand campaign that we're in right now, all of the effort is going and all of the money to the point is going to Dell Technologies. That was the new company that we created. And we want to make sure that people understand that Dell Technologies is maybe not what you thought. Dell was evolved. I mean most people think of Dell, they think of the PC. That's what Michael made his name selling. But Dell Technologies it goes a mile wide and a mile deep at this point and so really what we're trying to do with the brand campaign is put everything into Dell Technologies, understand the capabilities of that, and then look, over the next few years we can then reinforce what Dell, the PC business, Dell EMC, the data center business, VMware, Pivotal and so on, how they plug in. So really I think for the next year or so, we're going to kind of keep kind of beating on Dell Technologies and make sure everyone understands that. And then over time, you know, reinforce whether the ingredient brands. It really is, and Dell Technologies is a family of brands. That's the approach we're taking. >> Yeah, last thing I want to ask you, Jeremy. You talked about how we've seen the progression of kind of IT responding to the business and now IT really being a major driver for the business. >> Yeah. >> Maybe you could talk, you know, what are you seeing in customers, you know, how is it, you know, IT is a central point for so many companies? >> Yeah I mean it's exciting times. It's exciting and scary, I think, for the IT teams, because I'd even go further and say IT is the business in many companies now. I've seen many models, some companies have felt that their IT team couldn't adapt to be the new digital team and so they've created a second IT function. You know, sometimes you hear it mode one IT, mode two IT. But look, I've also been in companies where the CIO has really been like on it with the business, and they built out that capability within the existing IT structure, so I think the opportunity for IT folks is being more relevant than they've ever been in the past. And actually, supporting the business, doing real competitive differentiation, which it's maybe been a while since some IT departments landed there. And the threat though is that if you don't get on board, you could find yourself with your nose pressed against the window looking at a different IT operation doing the work that maybe you want to do as an IT pro. So it's exciting times and scary times together. >> Alright, well Jeremy Burton, appreciate you joining us here on theCUBE and we have lots of coverage here from the WTG Dell EMC User Event. Thanks for watching theCUBE.

>> Welcome everyone, we're back at the first Flink Forward Conference in the U.S. It's the Flink User Conference sponsored by Data Artisans, the creators of Apache Flink. We're on the ground at the Kabuki Hotel, and we've heard some very high-impact customer presentations this morning, including Uber and Netflix. And we have the great honor to have Xiaowei Jiang from Alibaba with us. He's Senior Director of Research, and what's so special about having him as our guest is that they have the largest Flink cluster in operation in the world that we know of, and that the Flink folks know of as well. So welcome, Xiaowei. >> Thanks for having me. >> So we gather you have a 1,500 node cluster running Flink. Let's sort of unpack how you got there. What were some of the use cases that drove you in the direction of Flink and complementary technologies to build with? >> Okay, I explain a few use cases. The first use case that prompted us to look into Flink is the classical Soch ETL case. Where basically it needs to process all the data that's necessary for such series. So we look into Flink about two years ago. The next case we use is the A/B testing framework which is used to evaluate how your machine learning model works. So, today we using a few other very interesting case, like we are using to do machine learning to adjust ranking of search results, to personalize your search results at real-time to deliver the best search results for our user. We are also using to do real-time anti-fraud detection for ads. So these are the typical use case we are doing. >> Okay, this is very interesting because with the ads, and the one before that, was it fraud? >> Ads is anti-fraud. Before that is machine learning, real-time machine learning. >> So for those, low latency is very important. Now, help unpack that. Are you doing the training for these models like in a central location and then pushing the models out close to where they're going to be used for like the near real-time decisions? Or is that all run in the same cluster? >> Yeah, so basically we are doing two things. We use Flink to do real-time feature update which change the feature at the real-time, like in a few seconds. So for example, when a user buy a product, the inventory needs to be updated. Such features get reflected in the ranking of search results to real-time. We also use it to do real-time trending of the model itself. This becomes important in some special events. For example, on China Singles Day which is the largest shopping holiday in China, it generates more revenue than Black Friday in United States already. On such a day, because things go on sale for almost 50 percent off, the user's behavior changes a lot. So whatever model you trend before does not work reliably. So it's really nice to have a way to adjust the model at real-time to deliver a best experience to our users. All this is actually running in the same cluster. >> OK, that's really interesting. So, it's like you have a multi-tenant solution that sounds like it's rather resource intensive. >> Yes. >> When you're changing a feature, or features, in the models, how do you go through the process of evaluating them and finding out their efficacy before you put them into production? >> Yeah, so this is exactly the A/B testing framework I just mentioned earlier. >> George: Okay. >> So, we also use Flink to track the metrics, the performance of these models at real time. Once these data are processed, we upload them into our Olark system so we can see the performance of the models at real time. >> Okay. Very, very impressive. So, explain perhaps why Flink was appropriate for those use cases. Is it because you really needed super low latency, or that you wanted less resource-intensive sort of streaming engine to support these? What made it fit that right sweet spot? >> Yeah, so Soch has lots of different products. They have lots of different data processing needs, so when we looked into all these needs, we quickly realized we actually need a computer engine that can do both batch processing and streaming processing. And in terms of streaming processing, we have a few needs. For example, we really need super low latency. So in some cases, for example, if a product is sold out, and is still displaying in your search results, when users click and try to buy they cannot buy it. It's a bad experience. So, the sooner you can get the data processed, the better. So with- >> So near real-time for you means, how many milliseconds does the- >> It's usually like a second. One second, something like that. >> But that's one second end to end talking to inventory. >> That's right. >> How much time would the model itself have to- >> Oh, it's very short. Yeah. >> George: In the single digit milliseconds? >> It's probably around that. There are some scenarios that require single digit milliseconds. Like a security scenario; that's something we are currently looking into. So when you do transactions in our site, we need to detect if it's a fraud transaction. We want to be able to block such transactions at real-time. For that to happen, we really need a latency that's below 10 millisecond. So when we're looking at computer engines, this is also one of the requirements we will think about. So we really need a computer engine which is able to deliver sub-second latency if necessary, and at the same time can also do batch efficiently. So we are looking for solutions that can cover all our computation needs. >> So one way of looking at it is many vendors and customers talk about elasticity as in the size of the cluster, but you're talking about elasticity or scaling in terms of latency. >> Yes, latency and the way of doing computation. So you can view the security in the scenario as super restrict on the latency requirement, but view Apache as most relaxed version of latency requirement. We want a full spectrum; it's a part of the full spectrum. It's possible that you can use different engines for each scenario; but which means you are required to maintain more code bases, which can be a headache. And we believe it's possible to have a single solution that works for all these use cases. >> So, okay, last question. Help us understand, for mainstream customers who don't hire the top Ph.D's out of the Chinese universities but who have skilled data scientists but not an unending supply, and aspire to build solutions like this; tell us some of the trade-offs they should consider given that, you know, the skillset and the bench strength is very deep at Alibaba, and it's perhaps not as widely disseminated or dispersed within a mainstream enterprise. How should they think about the trade-offs in terms of the building blocks for this type of system? >> Yeah, that's a very good question. So we actually thought about this. So, initially what we did is we were using data set and data string API, which is a relatively lower level API. So to develop an application with this is reasonable, but it still requires some skill. So we want a way to make it even simpler, for example, to make it possible for data scientists to do this. And so in the last half a year, we spent a lot of time working on Tableau API and SQL Support, which basically tries to describe your computation logic or data processing logic using SQL. SQL is used widely, so a lot of people have experience in it. So we are hoping with this approach, it will greatly lower the threshold of how people to use Flink. At the same time, SQL is also a nice way to unify the streaming processing and the batch processing. With SQL, you only need to write your process logic once. You can run it in different modes. >> So, okay this is interesting because some of the Flink folks say you know, structured streaming, which is a table construct with dataframes in Spark, is not a natural way to think about streaming. And yet, the Spark guys say hey that's what everyone's comfortable with. We'll live with probabilistic answers instead of deterministic answers, because we might have late arrivals in the data. But it sounds like there's a feeling in the Flink community that you really do want to work with tables despite their shortcomings, because so many people understand them. >> So ease of use is definitely one of the strengths of SQL, and the other strength of SQL is it's very descriptive. The user doesn't need to say exactly how you do the computation, but it just tells you what I want to get. This gives the framework a lot of freedom in optimization. So users don't need to worry about hard details to optimize their code. It lets the system do its work. At the same time, I think that deterministic things can be achieved in SQL. It just means the framework needs to handle such kind things correctly with the implementation of SQL. >> Okay. >> When using SQL, you are not really sacrificing such determinism. >> Okay. This is, we'll have to save this for a follow-up conversation, because there's more to unpack there. But Xiaowei Jiang, thank you very much for joining us and imparting some of the wisdom from Alibaba. We are on the ground at Flink Forward, the Data Artisans conference for the Flink community at the Kabuki hotel in San, Francisco; and we'll be right back.

we're simulcasting SI piece a fire on SiliconANGLE too so check out that coverage as well My partner John furrier is down there with David floyer and Jeff Frick you could tweet us at d volante he's at Jeff Frick mark to Ludo is here he's the CEO of fruition partners a company that is a systems integrator and service provider that has essentially superglued itself to the ServiceNow platform at precisely the right time mark welcome to the cube thank you so you got to be excited your big sponsor of this event a lot of customers hear about them told about thirty percent of the the end customers are actually not currently service now users so big opportunity there so how's it going yeah it's going great fantastic I think this is our fifth year if your service just tremendous tremendous to see the growth right that we're seeing here I think we are now the size as a company of the entire user conference in 2009 you know we were walking around last night and we were struck by the the number of partners in the exhibit hall you can always judge a company by the strength of its ecosystem it seems to be you know growing so talk a little bit about fruition what you guys do what your specialty is and we'll get into it sure so we actually are a our primary focus is service now so our system integrator with service now we actually started as a process consulting company that when we saw a service now we realize there's a tremendous value of being able to deploy ServiceNow solutions really faster than anything else in the market of time and this is back in two thousand eight so we not only focus on the the system integration side but also that the process definition and I think you know a third element which is what you mentioned this all the other vendors that are here we actually create a lot of the connectors between service now and these other vendors so we're starting to create kind of a broader mash of solutions integrating those other third parties with service now so when you think about you know process right do you think about the big consulting firms their deep industry expertise IBM tuloy pwc Accenture and so what what point did you say I you know but rather than take those guys head on in their wheelhouse we see this trend toward IT Service Management and the cloud and service now how did you make that decision take us through that sure actually and my background was with those larger firms all right so I kind of knew how they operated we kind of found ourselves when I till years ago a decade ago really seeing that that's the discipline that I t really needed to manage itself but we saw the the software is lagging so far behind in the ability to actually deliver what customers needed so we try to do is be very iterative so when we do process definition we don't think about it for a year we actually think about it for a couple months we have some improvement solutions but we really leverage service now to kind of help iterate that organizational change much faster than we could with any other tool so I'm by no means an ITIL expert but I've certainly worked with a lot of clients that passionate about ITIL and what they say is it's a great framework but to actually implement it you know you got to do some right heavy lifting you've got to have you know the right tool sets so how does a service now sort of bring that to life and what role does fruition play in making that real great day by the way fruition how do you bring that all the pressure man yeah sure so there's really two approaches we always go into a customer and saying you know I till it can be complicated but at the same time you're already doing I tell in many different ways you just don't call it that you might not have the rigor of the discipline so what we're able to do is kind of define those processes lightly and kind of use what a customer is already doing to actually translate that into service now and then we do kind of multiple releases on the same process so the customer kind of grows in the maturity of adopting the process with the technology so let's go through an example of that mark you're saying it's cut many customers most are already doing I tell they just don't know it or they don't call it that let's go through a simple example sure so a lot of people would say they change management is a good example where people know that it's good to talk to other people about the changes they're about to make but the level of formality and rigor with in change management varies widely so you may have some customers that you know maybe within five or ten people they might understand what they're about to change and they just kind of talk to each other randomly as that gets larger and more complicated they need more formal approvals when that gets even larger and more complicated they need to know what systems they're about to change what business cycles month end close for payroll they need to understand much more than just the technology side they need to understand the business side but customers can iterate through that maturity and they're not always ready to go and think about it for a year until they get to that that other layer because they're doing this week by week so that's kind of an example of how we mature eventually mature the process then that process gets integrated with another process so that was change integrated with asset and eventually we integrate it with incident so we kind of take what they have today we refine it and then we use service now to automate it and provide some visibility and metrics to it and then integrate it with other process so I'm imagine a customer's uh okay mark I hear you and I'm kind of skeptical we're we're a really complicated organization like you know maybe if we're just talking about our IT infrastructure at headquarters I can believe you but you know we've got a big complex application portfolio and it connects to these business processes and we want to go global with this how are you going to help me scale to that level and actually succeed so that I don't you know fall flat on my face you know two years down the road I think a lot of customers they've actually been trying to solve these problems over the years so you'll find just a good example on one customer global i should say north america they're managing 60,000 desktops and they were doing it on a hundred different spreadsheets so the data existed they already they knew the pain point they were having they just didn't have a way to consolidate the information they weren't even using tabs in this bridge yeah okay okay but so take so take me through that so how do we mature an organization like that so we're actually going to go in and basically find what data they're actually capturing we're going to find all the one-off tools and the tools are abundant IT people are great at just making up their own solutions right access database SharePoint side note spreadsheet whatever it is a fool with the tool as they say exactly so we keep finding all of these but in the end they're all trying to solve the same problem so what we're able to do is come in kind of do that discovery and see how big this problem is but in the end we then consolidated into one framework really consolidating it back into service now so some of the challenges really just letting people that they'll let go of that spreadsheet right or that access database that they had built over time when they finally let go of it we can finally consolidate the data then they see why it's much more relevant to have it in a single place than in 60 separate spreadsheet so an eye area i mean i think you're right you get this collection of tools and i've always felt like the the value that the software delivers is a function of its usage and also the productivity of the individual as they're using it so you sometimes get a tool that's not very good people have to use it and it's hard to use but so talk about the the usage profile and how you know it permeates your organization and that's one thing we've seen is with service now because the user interface is so simple and lightweight and is built on essentially web technologies and people are you never got trained on the internet right I mean you just kind of its intuitive from how you look at it and therefore the adoption is much simpler it's the the right clicking the views the reports because it's easier to use they then want to use it more rather than the resistance of using a tool that they don't quite understand they don't know how to navigate so then they create 60 spreadsheets but if it's easy to use and they enjoy using it the adoption really grows much faster so kind of we go back you know 10 or 10 years or so there was a big discussion and big name in the industry around business value CIOs were sort of struggling to sort of describe and quantify the value that I t brought to the business budgets were getting cut and so in many ways I think you're in the value business can you talk about I T value how it flows to the organization how you're helping customers realize the value that they bring to the shirts and there's a lot of reasons why people do an IT service management initiative some of it and that value it's not always the hard dollars you can't always naturally equate because we did this we save this much money you can sometimes if you were saving out hardware if you're saving on software but there's other other elements of efficiency with nit the customer interface between the business buyer and IT itself what that relationship is like so a lot of different things drive it it could be cost it could be internal efficiency it could be the relationship that the IT has with the business units all of these are actually you know very valuable for the relationship that I t has with the business it doesn't always necessarily equate to a hard or soft dollar yeah so I think I can I kind of look at it as I agree a value definitely can come from hard dollars and that that's kind of the easy one okay I'm going to do this and the save some money the the harder pieces to articulate and quantify are actually the much more valuable ones that particularly you know we heard Frank talk about the degree to which I t is embedded within the IT ness of the business so if you think about things like agility the speed do what you can deploy new applications or or fix problems and and the other is the stuffs got to be up if it goes down I lose productivity and I guess there's a risk element of that of that to talk about metrics how are metrics evolving and what do you see when you actually put you know have a successful implementation of service now within an organization what happens to the metric side how do they get shared what are the metrics how do they could share what are the KPIs people are focusing on I think the first thing that we see is that once we start to consolidate these different systems they can actually see in aggregate what's happening so 60 different spreadsheets it's hard to create a metric or dashboard from 60 disparate spreadsheets right so once it's finally within one system they can actually see what what sometimes the metrics are what do we actually own we've surprised we've surprised CIOs by saying you have 12,000 employees but you have 16,000 desktops and they just they just never knew before so that that's one element the other element so operational efficiency once in tracking changes for example now that there's this transparency we call it the fog of IT when everyone's kind of working their own silos in their own workflow without any real SLA is you don't really know what's working well or not but now when you're in a platform like service now and everyone's entering the work that they're doing well now we can see well how long did it take me to do that how much lead time did a particular Department give me to make that change how many changes actually caused system outages they didn't have that information before it maybe they had it in 10 different systems we've been at clients that actually hired people full time just to consolidate data from eight different systems to try to make something of it but now that it's actually in one system we can see you mentioned SLA for service level agreements we can see how many people are working on particular issues how many changes how many assets well how they all relate to each other so I think there's the massive benefit really as being in one system and being able to see in aggregate what is everyone's doing so I feel like we're still in the early days of realizing the potential for this type of platform because I mean to me this is basic blocking and tackling that we're talking about so let's say we get that down what gets more exciting to me is ok now as a business person how can i leverage this information to make decisions about where I should prioritize my investments I want to look at my my investments as a portfolio I got limited resources and I can look at these metrics and say ok if i invest over here I can drive some other metric and it's going to add business value are you starting to have those conversations with customers lonely started a little bit the evolution of even with service now kind of beyond the help desk as you start to talk about the services that I t is actually providing the business well those services are actually a combination of there's of course the hardware layer right what's my total cost of assets there's a software layer in the licensing that goes on top of it but let's not forget the operational layer that surrounds it so how many people did it take to implement that change how many people does it take to support that how many end users are there that are actually working on this so with a platform like service now you can actually see the total cost because it's actually all wrapped around a service ok so you see the total cost what about the value piece I want to I want to keep coming down that just because I really do think you're in the value business and and being able to realize that value is a function of our getting the cost right making sure that that's efficient but but actually placing my bets in a way that's going to drive the objectives of my organization now that's not necessarily it's not really the main focus of IT but it is the main focus of business and you're talking about forging a partnership with the business so so how are those conversations how do you see those evolving over time sure well now we can actually go to the business owner so once we've defined those services and we define the hardware the software the operational costs and this is something I t never had so we're now able to do is go to the business service owners because that that service isn't something that I t just thought up it was actually for a business unit for a particular business owner so we see those conversations where we find go to the business service owner and they'd never seen any data from IT before about this they because they really didn't know the cost right oh that's what you do I didn't know that constant this project that I'm suggesting is going to cost this much more so finally there is a conversation around metrics to be able to say well this is the cost this is the operational efficiency this is your impact on our IT department those conversations never happen before it was kind of gut reaction and they kind of felt like something was working or not working but now we're actually going with those operational metrics well to it must arm the the IT organization to basically say okay look yeah there's the capex but then there's this ongoing cost we're going to eat over the next five to seven years what's the value of that that that's bringing to the business versus maybe putting that resource elsewhere a lot of times i t just ends up owning that right that's part of the reason why we're in the set was talked about the seventy thirty you know seventy percent is keeping the lights on thirty percent his new innovation and that's why that's why you get all this sort of complaints about it2 sucking all the resources out so how has that dynamic changed in successful implementations of service now are you seeing that 7030 flip are you seeing sort of a different mindset with injuries you know what what I've seen is that as organizations mature as we go through those layers as I was mentioning once they can see the data now they're actually working on the right problems I think before they were just working on maybe the biggest the biggest outage maybe a department or division that seem to complain a lot you will exactly so they'll just management by squeaky wheel and a little gut reaction and now that they see the metrics they can see where the issue actually is so now they're targeting their effort well it's interesting it's still for some customers we've been with we've been with some customers for nine ten years it still feels like a state of chaos but they're fixing the right problems whereas before they were kind of fixing squeaky wheels without realizing the engine was completely broke so they're using those metrics to really target their efforts versus just kind of manage complaints now do you guys actually develop apps on top of service now if you talk about that a little bitter extensively so we we have an entire platform as a service group that actually a lot of customers are understanding that service now that's a platform if it already has the database it already has the workflow in jit has a reporting engine has security but more importantly it has all the data about your business I have all my business services potentially I know all my buildings and all my users I know my organizational structure so when that date is there and the tool sets there and I T is very familiar with how to use this platform as the business says hey I'd like to have another HR case management tool I'd like you to maybe we'll get a different field services tool IT SEZ wait a second let's not get another tool we already have all this data and we can already manage it with a team we already have the beauty of service now be on one platform is to add another application your system administrators don't have to learn anything new because it's the same that's the same rules it's the same scripting it's the same platform so we we've built HR case management tools we've built actually this morning coca-cola went through there a third-party access vendor management we built that globally for them we've built logistics applications for armored truck management it's kind of all over the board it's the creativity with nit finally being unleashed with an actual platform that they're familiar with and not just a series of spreadsheets so I'll give you the last word we got it we got to go but just on fruition what's your vision for the company where do you want to take it sure so really our vision is around cloud service management I think we've seen with IT Service Management helping an IT department mature to a steadier state but the disciplines around ITIL how a manage workflow planned workflow unplanned workflow on assets the disciplines of service management are broadly applicable to on HR department to a call center there are a lot of other areas within the business that actually need those that process discipline so we're actually taking cloud service management the disciplines we learned with an IT on service now taking them to the rest of the business units and actually automating within the service now planning well I think you guys got a lot of runway how do you mark to Ludo CEO of fruition partners and gradual ations on your success to date and good choice hitching your wagon to service now and good luck in the future thank you very much all right keep it right there buddy this is the cube this is Dave vellante we'll be right back with our 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