>>from >>around the >>globe, it's the cube >>with digital coverage of >>IBM think 2021 >>brought to >>you by IBM >>everybody welcome back to the cubes, continuous coverage of IBM think 2021 the virtual edition, my name is Dave Volonte and we're gonna talk about observe ability front and center for devops and developers, things are really changing. We're going from monitoring and logs and metrics and just this mess and now we're bringing in a I and machine intelligence and with us is Pablo Baron, who is the Ceo of inst ana, which is an IBM company that IBM acquired november of 2020. Pablo great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So you know, I always love to talk to founders and co founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After 55 I'm sure grinding but relatively short years. Why did you guys start in stana? And what were some of the trends that you saw in that you're seeing now in the observe ability space? >>Yeah, that's a very good question. So, um, the journey began ah, as we worked in the company called code centric, the majority of the founders and uh, we actually specialized in troubleshooting uh, well, real hard customer performance problems. We used all different kinds of A PM solutions for that. You know, we, we've built expertise like collectively maybe 300 years in the whole company. So we would go from one um, adventure into the other and see customers suffer and help them, you know, overcome this trouble. At some point we started seeing architectures coming up that were not well covered by the classic KPM sellers, like people went after this. Sudha, Sudha, Sudha virtualization all in containers, you know, just dropping random workloads into container running this maybe in cabinet as well. Not not actually not 56 ago, but years ago. But you get the point, we started with the heavy continues container ization and we've seen that a classic A PM solution that is heavily, you know, like machinery rented and and some of them you've encountered by the number of CPU etcetera etcetera. They were very well suited for this. Plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adopting to change continuously. We've seen this coming and we really, we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, hey, uh, I think it's time to just implement a new one. Right? So we started that adventure with the idea of a constant change, with the idea of everything is containers, with idea of everything goes towards glove needed. People just run random uh workloads of all different versions that are linked altogether than this. Whole microservices trend came up where people would just break down their monoliths and resilience of literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with that. >>So let me pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't kubernetes when you started in the middle part of last decade. You know, containers have been around for a long time, but kubernetes weren't, it wasn't mainstream back then. So you had some foresight uh and and the market has just come right into your vision but but maybe talk a little bit about the way A. P. M. Used to work. It was, I started to talk about this. It was metrics, it was traces, it was logs, it was make your eyes bleed type of type of stuff. Um, and maybe you can talk about how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So well there is very, very many um cases this. So first of all we always have seen that the work that you should not be doing by hand. I mean we already said that you should not be doing this and you should be automating as much as possible. We see this everywhere in the industry that everything gets more and more automated. We want to animate through the whole continuous delivery cycle. Unfortunately monitoring was the space that probably never was automated before installing a came into place. So our idea was, hey, just just get rid of the unnecessary work because you keep people busy with stuff they should not be doing like manually watching dashboards, setting up agents with every single software change, like adopting configuration etcetera, etcetera, etcetera. All of these things can be done automatically, you know, to very, very, very large extent. And that's what we did. We did this from the beginning, everything we approached, we, we, we think twice about can we automate, you know, the maximum out of it And only if we see that it's, it's, you know, too much an effort, etcetera. We will, we will probably not do this, but otherwise we're not, we don't do the same thing. You know, you can compromise the other right? The other aspect is, so this is different to the classic A PM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring etcetera, etcetera etcetera. This is this is a totally different approach the other approaches continuous change and you know, adapting to the continuous change, container comes up, you need to know what this kind of workload, what kind of work load this thing is, how it is connected to all the others. And then at some point probably it's gonna it's gonna go through the change and get a new versions etcetera etcetera. You need to capture this whole life cycle without really changing your monitoring system. Plus, if you move your workloads from the classic Monolith, through microservices on to cuba needs, you kind of transitioning, you know, it's a journey and this journey, you want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figure out what is payment in your system. This is a stable abstraction. It doesn't matter if you deliver it on containers. Doesn't matter if this is just a huge JBM that owns the whole box alone. It simply doesn't matter. So we we decoupled everything infrastructure from everything logic and uh the foundation for this is what we call the dynamic ground. It technically is pretty much a data structure. Regular graph data structure with, you know, connections in multiple directions from different notes. But the point is that we actually decompose the whole, I teach geography. This is the term I like to use because there is, there is no other its infrastructure, its topology, it is on the other hand, just, you know, same sides of the same thing. When you have a limits process, it can be HIV m it's just at the same time, it can be approached with an application, it's the same thing and given different names and this different faces of this thing can be linked with everything else in a totally different way. So we're decomposing this from the beginning of the product which allows us to to have a very deep and hierarchical understanding of problems when it appears. So we can nail it not down to a metric. That probably doesn't make sense to any user but really name the cause by look in this J. V. M, the drop wizard metric exercise that is misbehaving. This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So um the the classic eight pm as I said, it is a very expert heavy um, territory we try to automate the expert. We have this guy called stan this is your you know, kind of virtual devoPS engineer has a I in there. It has some artificial brain, it never sleeps, it observes all of the problems. It really is an amazing guy because nobody likes him because he always tells you what's broken. You don't need to invite them to the party and give them a raise just there and conserving your systems. >>I like stand, I like stand better than fred, no offense to fred but friends of the guy in the lab coat that I have to call every time to help me fix my problems and what you're describing is end to end visibility or observe ability in terms that norm either normal people can understand or certainly stand, can understand and can automate. And that kind of leads me to this notion of anti patterns um getting software, we think of anti patterns as you know you have software hairballs and software bloat, you've got stovepipe systems, your your data guy by background and so you will understand stovepiped data systems, there's organizational examples of of of anti patterns like micromanagement or over an analysis by paralysis. If you will, how do anti patterns fit into this world? Of observe ability? What do you see? >>Oh there's many, I could write a whole book actually about that. Um let me just list a few. So first of all it is valid for any kind of automation, what you can automate you should not be doing by hand, this is a very common entire pattern. People are just doing work by hand just because the lazy word, you know like repetitive work or there is no kind of foundation to automate that whatever the reason, this is clearly an anti pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observe ability monitoring space is so hard, You normally send your best people watching grants who want them to contribute to the business value rather than waste the time observing charts that like 99 of them are normal. The other aspect, of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of observe ability and let them learn on the subject. Which is also not a good thing because you cannot really I mean there are so many unknown unknowns for people who are not experts in the space. They will not catch the problem. You will go through pain, right? So it's not the learning project, that's not the research from a project. This is very essential to the operation of humor, business and humanity. And there's many examples like that, >>right? Yeah. So I want to end by just sort of connecting the dots so this makes a lot of sense. And if you think about, you know, Ivan Kushner said that IBM has got to win the architectural battle for hybrid cloud. And when I think of Hybrid cloud, I think of on prem connecting to public cloud, not only the IBM public cloud but other public clouds going across clouds going to the edge, bringing open shift and kubernetes to the edge and developing new supporting new workloads. So as I. T. Is like the university keeps expanding and it gets more and more and more complicated. So to your point humans are not going to be able to solve the classic performance problems in the classic way. Uh they're gonna need automation. So it really does fit well into iBMS hybrid cloud strategy, your, your thoughts and I'll give you the last word. >>Yeah, totally. I mean, I'm IBM generally is of course very far ahead in regards to research AI and all these things this death, sorry, those could be combined with an stand a very, very, you know, natively right. We we are prepared to automate using AI all of the well, I would want to claim that all of the monitoring observe ability problems. Of course, there is manual work in some, you know, in some cases you simply don't know what people want to observe. So you kind of need to give them names and that's where people come in. But this is more creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um requiring in stana gets, you know, the foundation for all of the things that used to be done by hand. Now, fully automated, combined within standard, combined with Watson, the ions, This is, this is huge. This is like a real great story, like the best research of the world eating. Uh, probably the best a PMC. >>That's great Pablo, really appreciate you taking us through Astana and the trends and observe ability and what's going on at IBM. And congratulations on your, your success and thanks for hanging with us with all the craziness going on at your abode. And uh really, it was a pleasure having you on. Thank you. >>Thanks a lot. >>All right, and thank you for watching everybody says Dave Volonte and our ongoing coverage of IBM, think 2021 you're watching the Cube? Yeah. Mhm

>>from around the globe. It's the Cube with digital coverage of Dell Technologies. World Digital experience Brought to you by Dell Technologies. Hello, everyone. And welcome back to the cubes Coverage of Del Tech World 2020. With me is Jeff Boudreau, the president general manager of Infrastructure Solutions group Deltek. Jeff, always good to see you, my friend. How you doing? >>Good. Good to see you. >>I wish we were hanging out a Sox game or a pat's game, but, uh, I guess this will dio But, you know, it was about a year ago when you took over leadership of I s G. I actually had way had that sort of brief conversation. You were in the room with Jeff Clark. I thought it was a great, great choice. How you doing? How you feeling Any sort of key moments the past 12 months that you you feel like sharing? >>Sure. So I first I want to say, I do remember that about a year ago. So thank you for reminding me. Yeah, it's, uh it's been a very interesting year, right? It's been it's been one year. It was in September was one year since I took over I s G. But I'm feeling great. So thank you for asking. I hope you're doing the same. And I'm really optimistic about where we are and where we're heading. Aziz, you know, it's been an extremely challenging year in a very unpredictable year, as we've all experienced. And I'd say for the, you know, the first part of the year, especially starting in March on I've been really focused on the health and safety of our, you know, the families, our customers and our team members of the team on a lot of it's been shifting, you know, in regards to helping our customers around, you know, work from home or education and learn from home. And, you know, during all this time, though, I'll tell you, as a team, we've accomplished a lot. There's a handful of things that I'm very proud of, you know, first and foremost, that states around the customer experience we have delivered on our best quality in our product. NPS scores in our entire history. So something I'm extremely proud of during this time around our innovation and innovation engine, we part of the entire portfolio which you're well aware of. We had nine launches in nine weeks back in that May in June. Timeframe. So something I'm really proud of the team on, uh, on. Then last, I'd say it's around the team and right, we shifted about 90% of our workforce from the office tow home, you know, from an engineering team. That could be, you know, 85% of my team is engineers and writing code. And so, you know, people were concerned about that. But we didn't skip a beat, so, you know, pretty impressed by the team and what they've done there. So, you know, the strategy remains unchanged. Uh, you know, we're focused on our customers integrating across the entire portfolio and the businesses like VM ware and really focused on getting share. So despite all the uncertainty in the market, I'm pretty pleased with the team and everything that's been going on. So uh, yeah, it's it's been it's been an interesting year, but it's really great. I'm really optimistic about what we have in front of us. >>Yeah, I mean, there's not much you could do a control about the macro condition on it, you know it. Z dealt to us and we have to deal with it. I mean, in your space. It's the sort of countervailing things here one is. Look, you're not selling laptops and endpoint security. That's not your business right in the data center. Eso. But the flip side of that is you mentioned your portfolio refresh. You know, things like Power Store. You got product cycles now kicking in. So that could be, you know, a buffer. What are you seeing with Power Store and what's the uptake look like? They're >>sure. Well, specifically, let me take a step back and the regards the portfolio. So first, you know, the portfolio itself is a direct reflection in the feedback from all our partners and our customers over the last couple of years on Day two, ramp up that innovation. I spent a lot of time in the last few years simplifying under the power brands, which you're well aware of, right? So we had a lot of for a legacy EMC and Legacy dollars. Really? How do we simplify under a set of brands really over delivering innovation on a fewer set of products that really accelerating in exceeding customer needs? And we did that across the board. So from power edge servers, you know, power Max, the high end storage, the Powerball, all that we didn't hear one. And just most recently. And, you know, it's part of the big launches. We had power scale. We have power flex for software to find. And, of course, the new flagship offer for the mid range, which is power store. Um, Specifically, the policy of the momentum has been building since our launch back in May. And the feedback from our partners and our customers has been fantastic. And we've had a lot of big wins against, you know, a lot of a lot of our core competitors. A couple examples one is Arrow Electronics SAA, Fortune 500 Global Elektronik supplier. They leverage power Store to provide, you know, basically both, you know, enterprise computing and storage needs for their for their broader bases around the world on there, really taking advantage of the 41 data reduction, really helping them simplify their capacity planning and really improve operational efficiencies specifically without impacting performance. So it's it's one. We're given the data reductions, but there's no impact on performance, which is a huge value proffer for arrow another big customers tickets and write a global law firm on their reporting to us that over 90 they've had a 90% reduction in their rack space, and they've had over five times two performance over a core competitors storage systems azi. They've deployed power store around the world, really, and it's really been helping them. Thio easily migrate workloads across, so the feedback from the customers and partners has been extremely positive. Um, there really citing benefits around the architecture, the flexibility architecture around the micro services, the containers they're loving, the D M or integration. They're loving the height of the predictable data reduction capabilities in line with in line performance or no performance penalties with data efficiencies, the workload support, I'd say the other big things around the anytime upgrades is another big thing that customers we're really talking about so very excited and optimistic in regards as we continue to re empower store the second half of the year into next year really is the full full year for power store. >>So can I ask you about that? That in line data reduction with no performance hit is that new ipe? I mean, you're not doing some kind of batch data reduction, right? >>No, it's It's new, I p. It's all patented. We've actually done a lot of work in regards to our technologies. There's some of the things we talk about GPS and deep use and smart Knicks and things like that. We've used some offload engines to help with that. So between the software and the hardware, we've had leverage new I. P. So we can actually provide that predictable data reduction. But right with the performance customers need, So we're not gonna have a trade off in regards. You get more efficiencies and less performance or more performance and less efficiency. >>That's interesting. Yeah, when I talked to the chip guys, they talk about this sort of the storage offloads and other offloads we're seeing. These alternative processors really start to hit the market videos. The obvious one. But you're seeing others. Aziz. Well, you're really it sounds like you're taking advantage of that. >>Yeah, it's a huge benefit. I mean, we should, you know, with our partners, if it's Intel's and in videos and folks like that broad comes, it's really leveraging the great innovation that they do, plus our innovation. So if you know the sum of the parts, can you know equal Mauritz a benefit to our customers in the other day? That's what it's all about. >>So it sounds like Cove. It hasn't changed your strategy. I was talking toe Dennis Hoffman and he was saying, Look, you know, fundamentally, we're executing on the same strategy. You know, tactically, there's things that we do differently. But what's your summarize your strategy coming in tow 2021. You know, we're still early in this decade. What are you seeing is the trends that you're trying to take advantage of? What do you excited about? Maybe some things that keep you up at night? >>Yeah, so I'd say, you know, I'll stay with what Dennis said. You know, it's our strategy is not changing its a company. You probably got that from Michael and from job, obviously, Dennis just recently. But for me, it's a two pronged approach. One's all about winning the consolidation in the core infrastructure markets that we could just paid in today. So I think Service Storage Network, we're already clear leader across all those segments that we serve in our you know, we'll continue to innovate within our existing product categories. And you saw that with the nine launches in the nine weeks in my point on that one is we're gonna always make sure that we have best debris offers. If it's a three tier, two tier or converge or hyper converged offer, we wanna make sure that we serve that and have the best innovation possible. In addition to that, though, the secondary piece of the strategy really is around. How do we differentiate value across or innovating across I S G? You know, Dell Technologies and even the broader ecosystems and some of the examples I'll give you right now that we're doing is if you think about innovating across icy, that's all about providing improved customer experience, a set of solutions and offers that really helped simplify customer operations, right? And really give them better T CEOs or better. S L. A. An example of something like that's cloud like it's a SAS based off of that we have. That really helps provide great insights and telemetry to our customers. That helps them simplify their I T operations, and it's a major step forward towards, you know, autonomous infrastructure which is really what they're asking for. Customers of a very happy with the work we've done around Day one, you know, faster, time to value. But now it's like Day two and beyond. How do you really helped me Kinda accelerate the operations and really take that away from a three other big pieces innovating across all technologies. And you know, we do this with VM Ware now live today, and that's just writing. So things like VX rail is an example where we work together and where the clear leader in H C I. Things like Delta Cloud Uh, when we built in V M V C F A, B, M or cloud foundation in Tan Xue delivering an industry leading hybrid cloud platform just recently a VM world. I'm sure you heard about it, but Project Monterey was just announced, and that's an effort we're doing with VM Ware and some other partners. They're really about the next generation of infrastructure. Um, you know, I guess taking it up a notch out of the infrastructure and I've g phase, you know, some of the areas that we're gonna be looking at the end to end solutions to help our customers around six key areas. I'm sure John Rose talking about the past, but things like cloud Edge five g A i m l data management security. So those will be the big things. You'll see us lean into a Z strategies consistent. Some big themes that you'll see us lean into going into next year. >>Yeah, I mean, it is consistent, right? You guys have always tried to ride the waves, vector your portfolio into those waves and add value. I'm particularly impressed with your focus on customer experience, and I think that's a huge deal. You know, in the past, a lot of companies yours included your predecessor. You see, Hey, throwing so many products at me, I can't I don't understand the portfolio. So I mean, focusing on that I think is huge right now because people want that experience, you know, to be mawr cloudlike. And that's that's what you got to deliver. What about any news from from Dell Tech world? Any any announcements that you you wanna highlight that we could talk about? >>Sure. And actually, just touching back on the point you had no about the simplification that is a major 10 of my in regards the organization. So there's three key components that I drive once around customer focus, and that's keeping customers first and foremost. And everything we do to is around axillary that innovation. Engine three is really bringing everything together as one team. So we provide a better outcome to our customers. You know, in that simplification after that you talk about is court toe what we're driving. So I want to do less things, I guess better in the notion of how we do that. What that means to me is, as I make decisions that want to move away from other technologies and really leverage our best of breed type shared type, that's technology. I p people I p I can, you know, e can exceed customer needs in those markets that were serving. So it's actually allows me to x Sorry, my innovation engine, because I shift more and more resource is onto the newer stock now for Del Tech world. Yes, We got some cool stuff coming. You probably heard about a few of them. Uh, we're gonna be announcing a project project Apex. Hopefully you've been briefed on that already. This isn't new news or I'll be in trouble. But that's really around. Our strategy about delivering, simple, consistent as a service experiences for our customers bringing together are dealt technology as a service offering and our cloud strategy together. Onda also our technology offerings in our go to market all under a single unified effort, which Ellison do would be leading. Um, you know, on behalf of our executive leadership team s, that's one big area. And there is also another big one that I'll talk about a sui expand our as a service offers. And we think there's a big power to that in regards to our Dell Technologies. Cloud console solving will be launching a new cloud console that will provide uniformed experience across all the resources and give users and ability toe instantly managed every aspect of their cloud journey with just a few clicks. So going back to your broader point, it's all about simplicity. >>Yeah, we definitely all over Apex. That's something I wanted to ask you about this notion of as a service, really requiring it could have a new mindset, certainly from a pricing and how you talk about the customer experience that it's a whole new customer experience. Your you're basically giving them access. Thio What I would consider more of a platform on giving them some greater flexibility. Yeah, there's some constraints in there, but of course, you know the physical only put so much capacity and before him. But the idea of being ableto dial up, dial down within certain commitments is, I think, a powerful one. How does it change the way in which you you think about how you go about developing products just in terms of you know, this AP economy Infrastructure is code. How how you converse about those products internally and externally. How would you see that shaking >>out Dave? That's an awesome question. And it's actually for its front center. For everything we do, obviously, customers one choice and flexibility what they do. And to your point as we evolved warm or as a service, no specific product and product brands and logos on probably the way of the future. It's the services. It's the experience that you provide in regards to how we do that. So if you think about me, you know, in in infrastructure making infrastructure as a service, you really want to define what that customer experiences. That s L. A. That they're trying toe realize. And then how do we make sure that we build the right solutions? Products feature functions to enable that a law that goes back to the core engineering stuff that we need to dio right now, a lot of that stuff is about making sure that we have the right things around. If it's around developer community. If it's around AP rich, it's around. SdK is it's all about how do we leverage if it's internal source or external open source, if you will. It's regards to How do we do that? No. A thing that I think we all you know what you're well aware but we ought to keep in mind is that the cloud native applications are really relevant. Toe both the on premises, wealthy off premise. So think about things around portability reusability. You know, those are some great examples of just kind of how we think about this as we go forward. But those modern applications were required modern infrastructure, and regardless of how that infrastructure is abstracted now, just think about things like this. Aggregation or compose ability or Internet based computing. It's just it's a huge trend that we have to make sure we're thinking of. So is we. We just aggregate between the physical layers to the software layers and how we provide that to a service that could be think of a modern container based asset that could be repurposed. Either could be on a purpose built thing. It could be deployed in a converge or hyper converged. Or it could be two points a software feature in a cloud. Now, that's really how we're thinking about that, regards that we go forward. So we're talking about building modern assets or components That could be you right once we used many type model, and we can deploy that wherever you want because of some of the abstraction of desegregation that we're gonna do. >>E could see customers in the in the near term saying, I don't care so much about the product. I want the fast one all right with the cheaper one e. >>It's kind of what you talking about, that I talked about the ways. If you think about that regards, you know, maybe it's on a specific brand or portfolio. You look into and you say, Hey, what's the service level that I'd wanted to your point like Hey, for compute or for storage, it's really gonna end up being the specific S l A. And that's around performance or Leighton see, or cost or resiliency they want. They want that experience in that that you know, And that's why they're gonna be looking for the end of the end state. That's what we have to deliver is an engineering. >>So there's an opportunity here for you guys that I wonder if you could comment on. And that's the storage admin E. M. C essentially created. You know, you get this army of people that you know pretty good of provisioning lungs, although that's not really that's a great career path for folks. But program ability is, and this notion of infrastructure is code as you as you make your systems more programmable. Is there a skill set opportunity to take that army of constituents that you guys helped train and grow and over their careers and bring them along into sort of the next decade? This new era? >>I think the the easy answer is yes, I obviously that's a hard thing to do and you go forward. But I think embracing the change in the evolution of change, I think is a great opportunity. And I think there is e mean if you look step back and you think about data management, right? And you think about all the you know all data is not created equal and you know, and it has a life cycle, if you will. And so if it's on edge to Korda, Cloward, depending think about data vaults and data mobility and all that stuff. There's gonna be a bunch of different personas and people touching data along the way. I think the I T advance and the storage admin. They're just one of those personas that we have to help serve and way talk about How do we make them heroes, if you will, in regards to their broader environment. So if they're providing, if they evolve and really helped provide a modern infrastructure that really enables, you know infrastructure is a code or infrastructure as a service, they become a nightie hero, if you will for the rest of team. So I think there's a huge opportunity for them to evolve as the technology evolves. >>Yeah, you talked about you know, your families, your employees, your team s o. You obviously focused on them. You got your products going hitting all the marks. How are you spending your time these days? >>Thes days right now? Well, we're in. We're in our cycle for fiscal 22 planning. Right? And right now, a lot of that's above the specific markets were serving. It's gonna be about the strategy and making sure that we have people focused on those things. So it really comes back to some of the strategy tents were driving for next year. Now, as I said, our focus big time. Well, I guess for the for this year is one is consolidation of the core markets. Major focus for May 2 is going to be around winning in storage, and I want to be very specific. It's winning midrange storage. And that was one of the big reasons why Power Store came. That's gonna be a big focus on Bennett's really making sure that we're delivering on the as a service stuff that we just talked about in regards to all the technology innovation that's required to really provide the customer experience. And then, lastly, it's making sure that we take advantage of some of these growth factors. So you're going to see a dentist. Probably talked a lot about Telco, but telco on edge and as a service and cloud those things, they're just gonna be key to everything I do. So if you think about from poor infrastructure to some of these emerging opportunities Z, I'm spending all my time. >>Well, it's a It's a big business and a really important one for Fidel. Jeff Boudreau. Thanks so much for coming back in the Cube. Really a pleasure seeing you. I hope we can see each other face to face soon. >>You too. Thank you for having me. >>You're very welcome. And thank you for watching everybody keep it right there. This is Dave Volonte for the Cube. Our continuing coverage of Del Tech World 2020. We'll be right back right after this short break

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome to the Cubes coverage of VMRO 2020 Virtual this The Cube Virtual I'm John for your host, covering all the action for VM World not in person. This year it's virtual, so we're bringing you the virtual interviews remotely. We've got two great guest here. Marc Lemire, senior vice president general manager of the Cloud Services business unit at VM Ware and David Brown is the vice president for two at AWS Amazon Web services. Both Cube alumni's great to see you guys remotely Thanks. Coming on eso i first vm worlds not face to face. Usually it's great event reinvents Also gonna be virtual again. It's, you know, we're gonna get the content out there, but people still gotta know the news is gonna know what's going on. Um, I remember three years ago, I interviewed Pat Kelsey and Andy Jassy in San Francisco on the big announcement of AWS and VM Ware Uh, vm ware on a W s. Really? Since then, what a great partnership Not only has VM where have cleaned up their clarity around cloud. But the business performance mark has been phenomenal. Congratulations. All the data that we're reporting shows customers are leaning into it heavily Great adoption and super happy success. A US congratulations as well for great partnership. Mark three years, Uh, with the industry defining partnership. Ah, lot of people were skeptical. We're on the right side of history, I gotta say, we called >>it. That's right. It's an update. Yeah, No, look, we're super excited. Like you said, It's the third year anniversary of this game changing partnership and look, the relationship could not be stronger right across engineering the product teams to go to market teams really getting stronger and deeper every day. And at the end of the day, you know, of course, what it's about is innovating on behalf of our customers, delivering compelling new capabilities that allow them thio, migrate and modernize. And, you know, look, we're just really pleased with the partnership, right? And I think, as a result of that depth of joint engineering, building and delivering the service together, you know, we're proud to be able to say that it addresses are preferred public cloud partner for the Starbase workloads. >>You know, I remember at the time David talking to Terry Wise Ah, native West Side and Andy, of course on Ragu the architect for this vision of the partnership. And this changed how vm Ware has been doing partnerships on. I want to talk about that because I think that's a great use case of what I call the new cloud native reality that everyone's living in. But before we get there, Mark, there's some news tied around AWS and VM. Where could you take a minute to, uh, share the news around what's going on with VM World 10 0 You got connect. You got all kinds of enhancements. Just the update on the news. >>Yeah, sure. So you know, we continue Thio, listen closely to our customers and continue to deliver them new value, new capabilities and a few things we're gonna highlight at being world. The first is we've heard from many customers, you know, they love the ability to rapidly migrate their visa service workloads to the AWS Cloud and VMC on AWS is really a game changer. From that perspective on dso that continues to be really, really compelling use case for many customers. But what they've also said to us is, Look, it's not just about migrating to the cloud. It's also about migrating and then modernizing. And so, together with AWS, we have really brought together the richest set of tools for our customers to enable them to modernize those applications. Of course, we've talked about before. Customers have access to the full rich set of AWS services on Ben within VM or called on AWS. We're now announcing support for native kubernetes capabilities within VM Ware Cloud in eight of us taking advantage of the VM Ware Tansy Communities, good service. So we're really excited about bringing that that service in particular to our joint customers and then three other kind of key innovation that we're going to be talking about is around networking, right? And as our customer environments get larger and larger and they're looking to create a fairly sophisticated apologies between their on Prem Data Center between multiple VMC and AWS instances and between perhaps multiple native aws vpc s, we've done a lot of work together to really simplify the way that customers can connect all those environments together. Onda, maybe Dave wants toe talk a little about that. >>It did chime in. What's What's the news on your end to? What's the relationship and an update from the Amazon side for VM World? >>Yeah, absolutely. I mean, the partnership has just been incredible working with being where Right, Right? Right from four years ago, when we first started with the idea of what could be a W s and beyond where do together. I think we've seen really deep engineering engagement, but also leadership engagement on support from leadership on both sides was really set. Set us up for the partnership that we have today, which has been phenomenal. You know, Mark was just talking about the transit connect feature that beyond whereas adopting and what you really seen, there is years of innovation on the networking side of the sea to where we've really understood deeply what customers need from a network. Understood the fact that they're trying to recreate some of those large networked apologies that they're doing on premise on, then trying to support them in a cloud way of supporting them in a cloud about, like, way. And so, you know, transit gateways to service under the hood that we released about two years ago. It reinvent. And so what we've been doing with being where he's working out. What is Transit Gateway mean within the VM Ware environment? And so really bringing customers that that rich connectivity that they need? You know, whether it's between the BBC's between the VM Ware environments, even back to on Prem or between regions on DSO. That's what transit connect now on being where it's gonna be utilizing and bringing to customers we're pretty excited about. You know what that means for our customers? >>You know, one of the trends I see coming out all the announcements. David, I want to get your thoughts on it because we talked briefly a few months ago, uh, for your summit virtual. But I want you to kind of put it in context of VM Ware because you're seeing virtualization of physical things. You know, Nick's with Project Monterey and all that stuff with within video and software. You see to you guys have seen this vision not just compute, but you talk about networking. You know, you have the really the first time this convergence of physical own software virtual and This is not new to you guys. I know this is the premise of Amazon Cloud. First, you have the building blocks as three NBC too. But now a slew of other services. But this trend is gonna continue. Certainly with covert and work at home, there's mawr need firm or compute more different kinds of compute. You got the physical layer from the network of the devices. This isn't gonna go away. I mean, I would just need some interviews about Space Force, and they're talking about software to find, um, devices you can't do break fix in the space. So you know all this is gonna be done with software and this idea of the physical virtual coming together I mean, I know I love the Virtual Cube were not in person, which we were. But this virtualization trend around the hardware this is this'll is all about the sea, but the sea spinning for years. How does that relate >>to be inward customer? So, I mean, I think the VM ware customers experience which realization right long before ec2 was around as well. When being we're back in the day with being workstation, uh, it's it's kind of central to what they've been able to do, you know, being able to virtualized environments, being able to stand up environments ready very quickly on a physical machine is what the English board for the customer, Easy to started in a similar place. You know, the strength of the C two is being able to get a B m in a few minutes. Andi, you know, we've just grown the what we can support in a virtualized world. So you think about where we started with very simple machines, you know, today is supporting things like HPC and and advanced. You know, accelerators like GP use. And if p g A s and so we've already pushed the virtual world now, interestingly enough, you know, Vienna is obviously doing the same thing with their hyper visor. You know, many, many happy customers there. The really interesting thing it was through the innovation that we were doing on the easy to side to work out. How do we really get the most out of virtualization? Historically, virtualization is being played with things like jitter and just performance. You couldn't really get the network performance there with CPU would stall and those are sort of the old issues. The cloud in the innovation we've been doing is largely gotten rid of those. And so it's actually almost the the the ability to remove the virtualization from easy to. That really was the ingredient that enabled us to allow VM Ware to run on this. And so that's where it all started. Back in late 2016 we started to work with my team saying, You know, we've actually built the ability through our nitro system, um, to not require our virtualization layer. And then we could replace that virtualization with the VM Ware virtualization layer and that that set us up for what we have today, right? That that made VM ware on AWS a reality that gave the VM Ware customer you know, the full VM ware virtualization support, which is what the applications have been. Both Paul, that's what they've really come. Thio love. I don't want to change all of that when they moved to the cloud and so being able to move those workloads to the cloud for being where you know on on AWS and and get the benefit of great hardware design together with the great opera visor from being where obviously, it's a virtual the end of the day with a lot of innovation that we need to make him that >>mark. I wanna get your thoughts on this because I remember when we again years ago when we covered it again on the right side of history of the prediction, we said It's gonna be a great thing, afraid of us. And the end where some of the other commentary was at that time was Oh, my God. VM was lost at the capitulated Amazon is gonna suck all the thousands and thousands of VM where customers into the cloud and they're gonna eat him up in Vienna. Where is gonna be sitting there? Uh, you know, inside of the road. Okay. Not the case. Your business performance has been exceptional. Okay? The customers have been resonating with the offering. It's been a win win. Can you talk about the business momentum and how this continues to go? Because again, everyone got it wrong on that side. This has been exactly how you guys had heated up. I mean, a little bit here, and they're not exactly, But from a business perspective, it hit the mark. What's your thoughts? >>Yeah. No. Look, we've been incredibly pleased that the customer adoption that we've seen for the service, um, in fact, you know, the total workload count on the service has increased by over 140% versus this time last year, right? So clearly, customers are adopting the service at a large scale on growing rapidly. But I think you sort of feel that killed that back a little bit, right? It's It's really driven by three use cases and the value that we're able to deliver the customers right? And so if you're a customer, that's gotta be severe based workload in your own data center, and you want to move to the AWS Cloud. You know the fastest, lowest cost lowest Chris Way to move that workload is using VM Ware Cloud on AWS, right? And so it's that use case. It's powering a lot of that consumption. Another interesting use case that Xdrive in a lot of demand and that we continue to invest and expand is disaster recovery, right? So there's some customers that still want to run some more clothes in their own data centers, but they'd like to build leverage the public cloud as a target for disaster recovery. And you think about it you're talking about, you know, Cloud delivered as a service and the elasticity and all of those benefits. Those really playoff strongly in the d r use case where you Onley really want to spend up that capacity in the scenario where you actually need it, right in the case of a natural disaster. And so VM were recently acquired a company called Atrium and we're using that technology to enable a new service we call VM Ware. Cloud D are on top of the VMC on AWS offering, and this is a really powerful capability because it allows our customers to significantly reduce the cost of disaster recovery by taking advantage of AWS is low cost s three storage, combined with some unique capabilities in the day trip service that allows us to store the V M. D. K. Is very cost effectively on the next three storage. And then, in the case of a disaster, we can spin up those hosts. You know, they've talked about the nitro host. I've been spin up those bare metal host with the being more hyper visor on it and automatically restart those workloads without requiring any. VM conversion is because, of course, it's all all these fear based, right? So you know, it's so we're really pleased with the business performance, but you know, sort of behind that, of course, is the value that we can deliver to our joint customers together. >>You know, the integration thing is interesting again. I think the success is that there's a partnership at the highest levels and trickles down into engineering. David, talk about what's next for AWS because, you know, after cloud, you've got cloud native integrations. They're gonna be needed across more partners and more customers. Um, but they don't wanna do the heavy lifting, right? So So if I'm a customer like, hey, you know what? I just want Mawr Cloud scale. I want more cloud capabilities, but I don't want to do all this integration. How does how does Amazon view that conversation? Because again, that's one of the things that every interview, every reinvent every time I talk to Andy and the team. It's undifferentiated, heavy lifting what our customers asking for free from from you guys. VM, where customers and What's the What's your thoughts on this? What do you guys thinking about right now? >>Absolutely. I think market head on a couple of key points there as well or at the customer in this case, off. I have a workload today that I run in my data center or running a cola facility, whatever it might be. And I run it for many years, Um, in many cases working with customers in industries like healthcare and finance. You know, where they've actually had these thes applications qualified or certified? I'm to actually one on that hardware. And so, you know, requiring them to move to a different hyper visor is obviously a ready they'd lift and may slow down the ultimate migration to the cloud. Um And so having vm ware cloud on AWS and the ability to say to those customers, you know, just bring your application and you'll workload and and honestly the benefit of the entire ecosystem that VM Ware provides and come and enjoy that on AWS and burst into aws eso that's just been enormously beneficial for our in customer, For AWS is probably aware. I think that's the thing that really makes the partnership incredibly strong. And from there, you know, these customers can pivot. And so one of the things that we've been doing together with Vienna, where is ongoing innovation? Right. So we recently just launched, um, support for our I three n uh storage instance type, which offers up to 50% discount storage per gig with VM ware. And there's a lot that went into that behind the scenes to make sure that that instance type is perfectly tuned for what VM were needed for their end customer. We're very excited to get that out. There are many, many customers so excited about the benefit that that brings to them, right? So they're getting all the benefit of AWS innovation while they keep the benefits that they've been enjoying on the VM Ware side. Um, and you know, that speaks to the largest sort of approach that AWS has taken in in several industries across several industries. Right being where, I think is probably the best example of that. But if you look at many other areas like our networking products, customers will often come to us and say, you know, I love using a certain type of load balance. So I love using this firewall. Um, you know, within my environment. And we have great partnerships of all those companies to say if your customer, while joint customer, wants to use whatever appliance, whatever application, you know, we have a full market place full of thousands of applications that are all certified to run on us. We want to make sure we can meet those customers where they are and simplify the immigration story for them as much as we can. >>All right, So I gotta put you guys on the spot. Mark will start with you, but you can't get the same answer. Um, to the same question. The question is, what are the customers most happy with with the partnership from a feature perspective? What's the one? What? What would you say, Mark, um is the big Ah ha. This really is amazing. I'm so happy because of this feature capability. >>Yeah, yeah, I mean, a little bit back to the discussion we're having before, but I think you know the killer use case Really for the service today is that cloud migration use case I was talking about before. And if you think about what it might have taken them previously. Right? Uh, you know, expensive time consuming. Um, you know, it requires changes to their environment. In some cases, with with VM or cloud on AWS, we could take the cloud migration that would previously been taken them perhaps years, millions or tens of millions of dollars. And we can shrink that down toe literally months, right. We have some customers like m i t. That migrated hundreds of applications literally over a weekend. Right. And we're able to do that because it's the same core enterprise Class V, and where capabilities of the customers already optimized their application to run on in their own data centers that now we've enabled on AWS as a cloud service so that that cloud migration use case kind of combined with the fact that we're, um that were delivered to them as a service in the AWS cloud. I think is, uh, you know, one of the one of the use cases that a lot of customers find extremely attractive. >>Alright, David, your turn from an M. A w s perspective. What are people happy with you for on this partnership? What praises? Are you getting some your way When someone says, Hey, man, this partners has been great. Amazon really is awesome for this. What would you say to that? >>Eso, you know, watch book about the migration I was going to choose sort of, You know, once they're in aws, um, the benefits of the power brakes writes the ability to scale on the mind. E think one of the great things about the record in AWS that VM Ware did is already built it as a cloud native service. And so, you know, the customers are able to provision additional capacity very easily. We have that capacity available on AWS, and so they're able to meet any sort of unexpected demand of scale. Um, and then together with the breadth of services that we have on a diverse is Well, you know, you and we've we thought very carefully about how being were customer would want to consume those and to make sure that the whole system set up to allow that to happen. And so allowing them to to broaden what they're using over time, is there. Engineers and teams find other services that allow them to innovate faster and, you know, bold more interesting applications so that it integrates incredibly well between AWS and VMware and customers benefit from that. >>I wanna ask you guys, um, or in the industry side, um, to comment on cloud native, um, mainly because one we cover it into it's kind of important trend. Um, recently, snowflake went public with the largest i p on the history of the of Wall Street, and it's an enterprise company. Okay, Um, and I was using that as an example because actually being where was the second most popular, uh, Hypo happens to be another enterprise company if and I was commenting on this, and I want to get your reaction to it And that is, is that if you look at the mega trend that's going on now, of all the things people talk about, it's the cloud native That's the most interesting, because this is all the value. If you look at the modern applications all the way down to the networking, everything in between. It's all about cloud native, And it's not just about cloud public cloud. It's not about It's an operating model when we talk about that. But Cloud native is the big wave that people are on. And if you're on it, your modern. This is not just hand waving. It's legit. I mean, you're seeing benefits of it. You're seeing speed, time to value all the things that people talk about, it, the events. Could you guys comment on why Cloud native is so important today and why customers and developers should be really thinking through what that is for them. Um, David will start with you. >>Absolutely. So for us part native really means, you know, have you built your application in a way that takes advantage of the benefits of the cloud? And so are you able to scare the application horizontally? Are you able, Thio? You know, building away That's redundant Across multiple data centers. Are you able to utilize services that are provided by, you know, aws, the cloud provider Thio to not have your teams build that And so what it ultimately means is you're able to spend more time focused on on building stuff that really matters. You know, if your application So you mentioned Snowflake, you know there are a great AWS customer work very closely with them and and they're able Thio, have us around a lot of the infrastructure, all the infrastructure for them in the power. And they can really focus on building an absolutely incredible data, whereas in solution for their end customer and we innovate very closely with them. And so that's really what it means, you know. And I think organizations that have gotten themselves there ready get a lot of benefit. They're able to innovate faster. They're able Thio deliver more to the end customer. You know, we spent a lot of time with companies that you wouldn't say a cloud native today and as a cloud provider, azi exciting as it is to support the cloud native customer, it's also incredibly important that we find a way to support the company. That's on a journey towards adopting the cloud, right? They've got a long history. Maybe they've been around for many, many, many years. Andi, I've got a large application stack that they need to move. And so that's where our migration programs really support customers. You need to bring non card native applications and then we're able to work with them over time to make them, you know, more cloud native and get a lot of those benefits. And so it's a journey that I think many of companies on. Some started there, and some have a way to get their differently. Has a lot of benefit. >>Isn't Snowflake really in Just a example of value creation? I mean, it's not about that. They're on Amazon. You're happy about that. But it shows that you don't have to go a certain way. If you create value, speed, scale speaks for itself. So that's just that could be an enterprise. That could be startup. That could be the Cube. It could be anybody, right? I mean, don't you see it that way? >>Absolutely. Absolutely. I mean, they had a great use case that a customer need. It's in a really interesting area, obviously dealing with big data. And so I think you know, there's there's really no limit there, >>Mark. You guys are in the modern app. That's what you're hearing. It's one of the things that people gonna wanna come out of co vid. They're gonna wanna have a growth strategy. Cloud native. Why is it important? And what's your take on this? What's your reaction to the cloud native being the big wave? >>Yeah, I mean, I think. I think Dave said it. You know very well. I mean, when I talked to customers, you know, regardless of where they are in that journey, they all have some form of digital transformation agenda. Right? And at the end of the day, they wanna deliver better services to their end customers because they know that's what different is going to differentiate them. Or they want a better empower their employees, right? And as part of trying to deliver that value to their customers, their employees, you know, they want to focus their time and energy on the things that really differentiate them. Right? And, you know, for many of them that that means, you know, they don't wanna have to worry about, you know, upgrading some infrastructure software, right? That's not that's not delivering value to their to their customers. And so, you know, I think as they go down that journey, you know, we're really pleased to be ableto partner. What they did you ask to be able to create these, uh, you know, these powerful platforms together between VM ware and AWS that really deliver a lot of value to customers and allow them to focus on what's important their business, right? And, you know, by bringing together those enterprise class VM, or capabilities that hundreds of thousands of customers trust for their most mission critical workloads. Combining that with eyes, they have talked about the possibility of agility, the scalability of the dust cloud and then sort of, you know, not just those existing workloads, but also enabling a rich set of new services those customers can take advantage of to modernize. You know, whether it's VM Ware services like I talked about before with our native kubernetes capability built into BMC or whether it's the you know, hundreds and growing portfolio abated bus services, you know, giving them all, giving them the power of that full toolkit as a service so they can focus on building value on top. I mean, that's e think, really they want an equation. But that's why so many customers are moving down that path together with us. >>Well, congratulations. I want to say to you because David Lynch has been digging into the buyer behavior data, looking at the what the budget projections gonna be and VM ware on AWS has been strongly performing, and it's doing really well. Congratulations. And David. Great to have you back on. And you got reinvent less than 60 days away. Can you give us a little taste, teaser and taste of what you got going on? I know you can't reveal, but what kind of generally we're gonna be seeing at reinvent, uh, with E c two and your team >>absolutely reinvents a little different this year. It's It's obviously virtual on, so we're pretty excited about that. We think it will bring a new flavor. And so there's a lot of planning going on both in terms of product delivery. It was a It was a great time of year for us as we finish up a lot about big releases aimed at reinvent, then obviously working on content and presentations. And so, you know, a lot of interesting stuff for customers to think about is that >>they're not revealing anything. You just you know. Okay, you're gonna have some announcements. I'm sure you see two. That's a big announcements. Exactly. Hiding the ball, as they say. David Brown, vice president of Easy to it. Amazon Web services. AWS, Markle, Omar s v P. And GM. A cloud Service business unit at VM Ware. Um, great partnership. Congratulations. We'll be following it. Thanks for coming. I appreciate it. Thank >>you very much. >>Okay, I'm John. For with the Cube. We're here in Palo Alto. Remote for the Cube. Virtual for VM World 2020. Virtual couldn't be face to face. We're doing our best with our cube virtual to get you the content. Thanks for watching.

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. >>Hey, welcome back, everybody. Jeff Frick here with the Cube. We have a cube conversation today talking about an exciting announcement coming out of our friends over it at V M, where it's the second generation via VMware Cloud on Dell EMC. And to tell us more about it, we've got a couple Cube alumni that we're always happy to have on. First off, we're joined by Matt Morgan. He is the VP of marketing at VMware. Matt, Great to see you. Great CTO. And then Wei Wang, She's the product or director of product marketing of the VMware way. Great to see you as well. >>Nice to see you, Jeff. >>So, first off, hope you guys were getting through. Ah, the stay at home and work from home and family. Everything good >>thes air. Unprecedented times for sure, But we're fortunate and we're doing fine. I hope everything is going well with you and your family. >>Yeah, Thank you. I mean, we are lucky to be an IT space. So we can We can flip the digital much easier than some industries. Let's jump into this announcement. Second generation via VMware Cloud on Dell, EMC. You guys only announced this in production like a year ago. So, Matt, what? What kind of drove a second generation already know What were some of the drivers and what what is the essence of the second generation? >>Yeah, the space is moving really fast. As you know, Public Cloud has captured the imagination of practically every IT organization on the planet. Because the public cloud provides a new way of doing business. It allows you to consume technology on demand, allows you to have the elasticity, allows you to have op ex financial treatment. But more importantly, it takes you out of the core management business. No more hardware refreshes. No more operational control of the core infrastructure. This is all delivered as a service. The problem is, in order to get this value, you have to turn to the public cloud. You have to actually replace your workload in the data center that someone else managed, and that data center might be far away from the data that is being generated. And so in many cases, It's just simply not practical to move all of your workloads there. So on premise, technology is still going to be important. What VMware announced way back in 2000 and 18 I think it was August 2018 at VM World is Project Dimension, and the whole concept was about delivering the cloud to the data center but truly allowing you to run your data center or data center infrastructure in a truly manage, cloud centric way. We then commercialized it when we announced via VMware Cloud on Dell, EMC, the product and the uptake has been off the hook. We've seen industry analysts like you saw with Rick. We've seen our customers really embrace this technology, and we've got an enormous feedback and that feedback is also driven a new set of requirements. And the truth is, while we envisioned this technology to clearly be an edge play, our customers are telling us it's a data center play. They believe that they can reimagine their data center to operate just like a cloud, and by deploying via VMware cloud on Dell EMC. This facilitates their needs to do that, but they needed a new class of system something a lot more powerful than our first generation, something that could take on all of the workloads. In fact, there's a slide. If you want to pull it up, we kind of illustrate this. The second generation solution is all about turning the volume up to 11. We are enabling organizations to put two times as many VMS on this technology. They, in effect, can run twice as many workloads. More importantly, for a nightie architect, they can design a system that will take on the most demanding, most complex business critical applications with largest set of data and be able to manage that as a entity but in a cloud model on premises. >>Now, Matt I'm struck a little bit because, you know, first if you talk about edge and this was really, you know, kind of a response to growth of the edge and the anticipated growth of edge and I ot and then at the now you're saying really, you know, there's this great opportunity in the data center, and I think we had Rick on from IDC, talked about local cloud as a service, so that's spanning a pretty wide range of environments, workloads, all types of demand. So what are the real critical, you know, kind of functional capabilities of a local cloud as a service and specifically with VMware Cloud. >>So we partnered with Rick when he was defining this category. And if you look at what Rick's research, he sees this category growing. I think too close to $5 billion all in revenue, that all in revenue is coming in the next 2.5 years. That's a faster scale out than we saw HCI. And in his research he's finding the same information that we found when we did our early customer surveys. We have identified a real need at the edge, but let's not underplay that. If you look at a 5G cell tower, typically they need compute that's local. They're gonna be tons of these erected over the next few years, and they don't have on-premise IT infrastructure people to manage that technology, so there's an opportunity to have a managed approach where the compute is local, but it's managed as a cloud. Clearly, the solution is custom designed for that, but I can look at a dozen other IoT centric opportunity. Let's talk about energy production. An offshore oil rig. Again, no IT Staff. The need for compute lots of sensor data, the opportunity to deliver a managed approach gives you that capacity. Let's look at agriculture again, pushing out compute to the edge. So this edge component is another hyper growth area or information technology, and we have a great solution. Custom built for that. However, as I had mentioned right, the growth of use cases includes the most important, the most significant business critical apps that are really big gaps that live in the data center. This can include a variety of different use cases. Think about a hospital. They have data centers in each of the regions. That's all perfect fit for this. Talk about a technology base for virtualized desktop infrastructure. Think about having to deploy an SAP application. There's a dozen more I can think of right off the top of my head. But what we did with the second generations we listen >>to the customer. >>The customers wanted more power. They wanted more capacity. They wanted the opportunity to have a full rack that could beat their expectations on the capacity and power side so that they can fulfill their requirements, and that's what this >>is all about. >>So that's great, Matt way, you're You're a little bit more in the weeds in the product development. What are some of the things that you're excited about in this second gen offering that maybe people aren't as aware of or maybe is a little bit below the radar, >>Right? Okay, so let me first and talk about that. This is truly, as Matt pointed out, is not an insignificant release, right? This is not incremental. We, for example, that our customer we're rolling out a full 40 to argue rack that is support the traditional use cases and also that more than use cases and thinking about also a brand new eastern type that we call internal people Montt medium that in which we doubled not the sock account, but also the CPU moving from a to 24 CPUs to a 48 total and double our realm Rama 368 to 700 before and also doubling to introducing all flash like envy. MB based flash secondary storage for, um, 11 point half to 23 terabytes. And all these is really to honing in what might have pointed out that enterprise class. You know, the hi workloads, very density work clothes, right? You can put into the area 12 to 15. This kind of notes offer development and allows you to have that in the data center and to making sure that you have that kind of capacity for performance. We have that. The second thing I want to mention, as you can imagine, is the VD I I think virtual desktop infrastructure cannot be more important have this environment. Everybody is looking at it, and especially for the highly regulated industries like healthcare. So VMware right? We help for where the market leader with our offerings as a VM or horizon solution. So what happens in this release is we actually 35? We'll be certified on the VM or as horizon solution to making sure that we offer that enterprise distributed capacity to the industry that we really want to run up fast and also to making sure that they obviously cannot have actually support to have that capacity to offer the remote workers to front line healthcare workers and other business continuity type off use cases to that capacity for video. The last one is actually as you can imagine. Also in this environment is data backup and recovery. Right? The the enterprises are looking for a solution that in which they can not only backup protect and also search for search for the things that they can actually, for historical reasons. So in this release, we're actually certified to solutions for back up the 1st 1 of course, with our friends at Dell. Right, Dell data protect solution. The 2nd 1 is that's an industry leading solution right there. And the 2nd 1 is actually the beam, though so but with both solutions now, we can truly offer our customers who are looking for enterprise strength a backup solution to for the continuity and also for this to continue to operate in this environment. >>So I'm just curious. Before we let you go, you talked about this being a pretty significant release and we've talked about markets basis from edge back into the data center. Ah, and really kind of enterprise class heavy workloads, critical workloads, applications running this so as you look forward, you know, not give me any secrets out in terms of roadmap. But Where do you see this? This class of application evolving. >>So I think that you can imagine the week we talked to a variety of customers there different ways. We can actually expand this many off our retail customers has talked about their suggestions and 5G towers. Not only we can expand it to a data center, we probably will actually offer this type of solutions into, for example, a substantial retail shop or a back of pizza shop that's going small on one end. The other end is, I think, that many of our customers have expressed interest off off colocators, right. They're working with in other geographical areas that they're actually working with local providers that that they don't they don't own themselves. They do not even wanted to purchase right the cooling and managing the space. So they want us to provide an integrated solution with many of the large colocators, but as well as some of the niche colocators, so that we can offer that end to end and offer that together a city platform to our partners. So that's where we're going >>very exciting space, and you guys do. Move quick, Matt. I'll give you the last word before we sign out where people get more information. Wouldn't g A Or I guess, or is it is G. I think we are, Um, give us the last word. >>Yes, so yes, the services available. People can get more information BMR dot com And I think you know the truth of the matter is the cloud is an operating model. It's not an individual data center location, right? And the idea of a cloud. A cloud operating model that could be hybrid that can move from public cloud data centers to your own own data centers to the edge to everywhere in between, including MSC's VMware provides a great platform that standardizes across that on one of the things that is a driver for VMware customers is their ability to eat their existing workloads without having to modify re factor or rework the right. I have a workload that I sit in a data center in a public cloud of VM where simply V motion or use HC X to move that workload, and I could be up and running instantly on that consistency as a lot of flexibility, agility and, you know, it helps people do things faster. So I think those of my final comments it was really good to see you, Jeff. Thanks for having us. You >>do. Thanks for checking in. Ah, I think it's the first time we've done one of these, But certainly we've spent lots of time together around the Cube set. So Ah, I'm glad everybody's healthy and this to show passed. So keep working hard to keep delivering great products. And thanks again for stopping by. >>Thank you. >>Alright, He's Matt and way. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time. Yeah, yeah, yeah, yeah.

>>from the Silicon Angle Media office in Boston, Massachusetts. It's the Cube now here's your host, Dave Vellante. >>Hello, everyone. And welcome to this breaking analysis. We're here to assess the VM Ware v Sphere seven announcement, which is the general availability of so called Project Pacific. VM Ware has called this the biggest change to V sphere in the last 10 years. Now Project Specific Pacific supports kubernetes and natively in VM Ware environments. Why is this important? This is critical for multi and hybrid cloud because Kubernetes and its surrounding orchestration enable application portability and management. Yeah, as we've been reporting, VM Ware is one of the big players eyeing multi cloud, along with a crowded field of aspirants that include IBM with Red hat, Microsoft, Cisco, Google and a host of specialists in the ecosystem. Like how she and rancher as well play. Some players have focused in their respective stack swim lanes like security and data protection, storage, networking, etcetera. And with me to dig into this announcement is stew. Minutemen's Do is a senior analyst at Wiki Bond and co host of The Cube is too good to see you and let's get into it great to talk about this state. Okay, so the Sphere seven, what is being announced? And why is it relevant? >>Yes. So, David, as you said in the open, this is the general availability of what they talked about at VM World 2019 as Project Pacific. So it really is integrating kubernetes into V sphere. The VM ware, of course, will position this is that they're now enabling, you know, the 90% of the data centers around the world that have VM ware. Hey, your kubernetes enabled. Congratulations. You're cloud native. Everything like that. Only being a little facetious here. But this is very important. How do we get from where we were to live in this more cloud? Native environments. So containers in general and kubernetes specifically are being a first class citizen. There's a lot of work, Dave, and my understanding this has been going on for a number of years. You know, it's not like they just started working at this six months ago. A overhaul to how this works. Because it's not just we're going to stick a couple of containers on top of, you know, the guest operating system in the virtual machine. But there is a supervisor cluster for kubernetes at the hyper visor level. And there's a lot of, you know, in the weeds things that we're all trying to understand and figure out because you've got you know, we've got a hyper visor and you've got VM. And now you've got the containers and kubernetes on. Some of them are living in my data center. Some VM ware, of course, lives on multiple clouds like the VM ware on AWS. Solutions of this will go there on and, you know, how do I manage that? How does this impact my operations? You know, how did this change my application portfolio? Because, you know, the early value proposition for VM Ware always was. Hey, you're gonna put VM ware on there. You don't need to touch your applications. Everything runs like it did before you were running windows APS on a physical server. You move into virtual. It's all great. There's a lot of nuance and complexity. So when VM Ware says this is the biggest change in a decade probably is, I think back to you know, I remember when the fx 2.0, rolled out in V motion really changed the landscape. That was big V balls. Move to really ah storage. To really understand that architecture and really fix storage was was a huge undertaking that took many years. This this definitely stacks up with some of those previous changes to really change the way that we think about VM Ware. I think the advertising you have even seen from being where some places is don't think of them as VM ware their cloud where our container ware with like because vm zehr still there. But VM Ware is much more than VMS today, >>so this feels like it's bm were trying to maintain its relevance in a cloud native world and really solidify its because, let's face it, VM Ware is a platform that Pat Gelsinger's has ride. The Waves tried many times in many angles to try to ride the cloud wave, and it's finally settled on the partnerships with AWS specifically. But others on DSO really Is this their attempt to become cloud native, not get left behind and be cloud naive? His many say >>Yeah, great question, David. Absolutely. There's the question as to you know what's happening with my applications, you know lots of customers. They say, Well, I'm just going to satisfy the environments. Watched the huge growth of companies like service now workday. Those applications, well, customers don't even know what they live on. Do they live on virtualization? Environment is a containers I don't need to worry about because SAS takes care of that. If I'm building modern applications, well, I'm probably not starting with VMS. Containers are the way that most people are doing that. Or they might even be going serverless now if we take these environments. So how does VM ware make sure that they have the broadest application support? Kubernetes really won the container orchestration wars on. And this is a way that VM ware now can enable customers to move down that path to modernize their environments on. And what they wanna have is really some consistency between what's happening in the cloud and happening in the environments that they control >>themselves. Vm ware saying that containers in our first class citizen within v sphere what does that mean? Why is that important? First of all, are they really And what does that mean? And why is that important? >>Yes. So, Dave, my understanding is, you know, absolutely. It's their, You know, the nuances that you will put there is. You know, we're not just running bare metal servers with Lennox and running containers on top of it. It is. You're still sitting on top of the hyper visors. One of the things I'm trying to understand when you dig down is you know what? The device driver level VM ware always looked a little bit like Linux. But the people that use it and operate it, they're not letting people Dave, these, you know, the OS. The number one os that always ran on VM ware was Windows and the traditional applications that ran there. So when we talk about containers and we're enabling that in a kubernetes environment, there are some questions about how do we make sure that my applications get certified? Dave, you got a lot of history knowing things like s ap and Oracle. I need to make sure that we've tested everything in this works. This is not what we were running traditionally in VM ware and VM ware. Just thanks. Hey, v Sphere seven, turn the crank. Everything certified Well, I would tell customers make sure you understand that your application has been tested, that your Eyes V has certified this environment because this is definitely, as VM Ware says, a huge architectural change. So therefore, there's some ripple effects to make sure that what I'm doing in this environment stays fully supported. Of course, I'm sure VM Ware is working with their huge ecosystem to make sure that all the pieces or environment you mentioned things like data protection. We absolutely know that VM Ware is making sure the day one the data protection plugs in and supported in these environments when you're using the kind of kubernetes persona or containers solutions in V sphere. >>Well, this brings me to my next question. I mean, we were talking to Bernard Golden the other day and he was saying, You know, Kubernetes is necessary for multi cloud, but it's insufficient. And so this seems to me to be a first step and, as I say, VM ware maintaining and growing its relevance. But there's gonna be a roadmap here that goes beyond just containers and portability. There's other management factors you mentioned security of enabling the ecosystem to plug in. So maybe talk about that a little bit in terms of what's necessary to really build this out over the next >>decade. And actually, it's a great point. So, first of all, you know, V. Sphere, of course, is the core of VM Ware's business. But there's only a piece of the overall portfolio said this lives in. I believe they would consider this part of what they call their Tansu family. Tando is their cloud native overarching piece of it, and one of the updates is their product hands admission control. Which of the existing product really came out of the Hep D Oh acquisition is how we can really manage any kubernetes anywhere, and this is pure software. Dave. I'm sure you saw the most recent earnings announcement from VM Ware, and you know what's going sass. What's going subscription? VM Ware is trying to build out some of their software portfolio that that isn't kind of the more traditional shrink wrap software, so Tan Xue can manage any kubernetes environment. So, of course, day one Hey, obviously or seven, it's a kubernetes distribution. Absolutely. It's going to manage this environment and but also if I've got Cooper days from azure kubernetes from Amazon communities from other environment. Tanja can manage across all of those environments. So when when you're what VM Ware has always done. If you think back in the early days of virtualization, I had a lot of different servers. How do I manage across those environments? Well, VM ware was a layer that lived across them. VM Ware is trying to do the same thing in the cloud. Talk about multi cloud. And how do I manage that? How do we get value across them? Well, there's certain pieces that you know VM Ware is looking to enable with their management software to go across them. But there are a lot of other companies, you know, Amazon Google actually not Amazon yet for multi cloud. But Microsoft and Google absolutely spent a lot of time talking about that in the last year. A swell as you mentioned. Companies like Rancher and Hashi Corp absolutely play across What Lots of these multi cloud. Well, >>let's talk about the competition. Who do you see is the number one competitors >>Well, so the number one competitor absolutely has to be red hat, Dave. So you know, when I've been in the kubernetes ecosystem for a number of years for many years. When I talk to practitioners, the number one, you know what kubernetes you're using? Well, the answer for many years was, Well, I'm grabbing it, you know, the open source and I'm building my own stack. And the reason customers did that was because there wasn't necessarily maturity, and this was kind of leading edge, bleeding edge customers in this space. The number two besides build my own was Red Hat was because I'm a red hat customer, a lot of Lennox tooling the way of building things the way my application developers do. Things fit in that environment. And therefore, that's why Red Hat has over 2000 open shift customers leading distribution for Kubernetes. And you know, this seems purely directly targeted at that market. That red hat did you know it was a big reason why IBM spent $34 billion on the Red Hat acquisition is to go after this multi cloud opportunity. So you know, absolutely this shot across the bow because Red Hat is a partner of VM Ware's, but absolutely is also a competitive >>Well, Maritz told me years ago that's true. We're with everybody and you could see that playing out. What if you look at what VM Ware could do and some of their options if they gave it away, that would really be a shot across the bow at open shift, wouldn't it? >>Yeah, absolutely, Dave, because kubernetes is not free if you're enabling kubernetes on my Google environment, I, you know, just within the last week's awesome things that were like, Okay, wait. If you're testing an environment, yes, it is free. But, you know, started talking about the hourly charges for the management layer of kubernetes. So you know kubernetes again. A color friend, Cory Quinn. Communities absolutely is not free, and he will give you an earful and his thoughts on it s o in Amazon or Google. And absolutely, Dave, it's an important revenue stream for red hat. So if I'm vm ware and you know, maybe for some period of time, you make it a line item, it's part of my l. A. You know, a good thing for customers to look out for is when you're renegotiating your l a toe, understand? If you're going to use this, what is the impact? Because absolutely, you know, from a financial standpoint, you know, Pat Gelsinger on the VM Ware team has been doing a lot of acquisitions. Many of those Dave have been targeted at this space. You know, not to step Geo, but a bit NAMI. And even the pivotal acquisition all fit in this environment. So they've spent billions of dollars. It shouldn't be a net zero revenue to the top line of what VM Ware is doing in the space. >>So that would be an issue from Wall Street's perspective. But at the same time, it's again, they're playing the long game here. Do we have any pricing data at this point? >>So I still have not gotten clear data as to how they're doing pricing now. >>Okay, Um, and others that are in there and in the mix. We talked about Red Hat. Certainly Microsoft is in there with Arc. I've mentioned many times Cisco coming at this from a networking perspective. But who else do you see and then Antos with Google? >>Yeah. And you know, Dave, all the companies we're talking about here, you know, Pat Gelsinger has had to leverage his intel experience to how to balance that line between a partner with everybody but slowly competing against everybody. So, you know, we've spent many hours talking about the VM Ware Amazon relationship. Amazon does not admit the multi cloud a solution yet and does not have a management tool for supporting all of the kubernetes environment. But absolutely Microsoft and Google do. Cisco has strong partnerships with all the cloud environment and is doing that hybrid solution and Dave Justice nothingto expand on a little bit there. If you talk about V sphere, you say, Okay, Visa or seven trolling out Well, how long will it take most of the customer base to roll to this environment? There will be some that absolutely want to take advantage of kubernetes and will go there. But we know that is typically a multi year process to get most of the install base over onto this. And if you extend that out to where VM Ware is putting their solution into cloud environments, there's that tension between, you know, Is there a match actually, between what I have in my data center and what is in the managed environment managed by VM Ware and Amazon, or manage for to support some of the other cloud environment. So the positioning always is that you're going to do VM Ware everywhere, and therefore it's going to be consistent everywhere. Well, the devil's in the details because I have control on what's in my data center, and I might have a little bit less control to some of those managed services that I'm consuming. So absolutely something to keep a close eye on. And not just for VM, where everybody is having these concerns. Even if you talk about the native kubernetes distributions, most of the kubernetes services from the cloud providers are not, you know, immediately on the latest revision of kubernetes, >>right, So Okay, well, let's let's talk about that. Remember when open Stack first came out? It was a Hail Mary against Amazon. Yeah, well, the new Hail Mary and looks like it has more teeth is kubernetes right, because it allows portability and and and of course, you know Amazon doesn't publicly say this, but it's not. That's not good for Amazon. If you're reporting things, applications, moving things around, moving them out of the Amazon cloud, and that makes it easier. Of course, Amazon does support kubernetes right, But you've got >>alternatives. So, David, it's fascinating. So I've talked to many practitioners that have deployed kubernetes and one of the top reasons that they say that why they're using Kubernetes is so they have options with the cloud. When you also ask them what cloud they're running, they're running Amazon. Did they have planned to move off of it? Well, probably not. I had a great customer that I didn't interview with that one of the Cube con shows, and they actually started out with Azure just because it was a little further head with kubernetes and then for the services they wanted. They ended up moving to AWS and Dave. It's not a click a button and you move from one kubernetes to another. You need toe match up and say, Okay, here's the five or six services I'm using. What are the equivalent? What changes do I need to make? Multi cloud is not simple. Today, I mentioned Hashi Corp is one of those companies that help people across these environments. If you have haji solution and you're managing across multiple clouds, you look in the code and you understand that there's a lot of difference between those different clouds, and they simplify that. But don't eliminate it. Just it is not. There is not a way today. This is not a utility when you talk about the public cloud. So you know Kubernetes absolutely is existentially a little bit of a threat to Amazon but Amazon still going strong in that space. And you know that the majority of customers that have deployed kubernetes in the public cloud are doing it on Amazon just because of their position in the marketplace and what they're. >>So let's double click on that. So Jassy, an exclusive interview with John Furrier before last year's re invent, said, Look, we understand there's a lot of reasons why people might choose multiple clouds, you know, go through them in a developer preference. And I think I think, you know, people want o optionality and reduce lock in potentially. But I've always said, by the way, just as an aside, that that the risk of lock in it is far down on the list relative to business value, people will choose business value over over, you know, no lock in every time. About 15% of the customers you might not agree. Nonetheless, Jassy claimed that typically when you get into a multiple cloud environment, he didn't use the term multi cloud that it's it's not a 50 50. It's a premier primary cloud supplier. So might be 70 30 or 80 20 or even 90 10. But it's really that kind of, you know, imbalance. First of all, do you see that? And then what does that mean for how they approach of this space? Multi cloud and in particular. >>So I'm sorry. You're asking how Amazon should approach the space. And you've said that I don't think they'll >>eventually enter this market place. >>Yeah, you know, absolutely, Dave. You know, first of all, in general, yes, I do agree. It is not. There are certain financial companies that, you know, have always chosen two of everything. Because for regulation and you know certain we need to protect ourselves. We're gonna have to suppliers. We're going to keep them as even as possible. But that is a corner case. Most customers I have a primary cloud. That's what I'm doing. That what I t tries to get everybody on and you need to have Is there a reason why you want to use a secondary or tertiary cloud because there's a service that they need. Of course, Google. You often run it. It's like, Oh, well, there's certain data services that they're doing well And, of course, the business productivity solutions that Microsoft's doing where the relationship with Oracle that are driving people towards Microsoft. But just as we saw Amazon soften on their hybrid solutions, we spent a lot of time at re invent talking about all the various hybrid solutions. Um, since their customers are going to have multiple clouds on and even you take most of their customers that have M and a involved you buy another company, they might be using another cloud. As Microsoft's position in the marketplace has grown, you would expect that Amazon would have not just migration services but management services to match what customers need, especially in this kubernetes environment, seems that it seems a natural fit for them. It's possible they might just leverage, you know, partnerships with red hat VM ware, you know, in some of the other players for the time being. But if the market gets big enough and customers are asking for it, that's usually when Amazon response >>So let's let's wrap with what this means to the customer. And I've said that last decade really multi cloud was a symptom of multi vendor and not so much of the strategy that's changing. You know, clearly, jokes CIOs are being called in to clean up the crime scene on do you know, put in edicts corporate edicts around security and governance and compliance and so forth. So it started to become a complicated situation for a lot of companies. We've said that multi cloud is gonna it's gonna be they're going. People are going to put the right war load and the right cloud, etcetera, and this advantages to certain clouds. But what should customers be thinking specifically as it relates to v. Sphere seven? >>Yes. So, Dave, the biggest thing I would say that people need to look at it is that understanding in your organization that that boundary and line between infrastructure and application people have often looked at you looked at the ascendancy of VM Ware, Andi V. M's and then what's happening with cloud and containers. And we think of it from an infrastructure standpoint that I'm just changing the underlying pieces. This is where it lives and where I put things. But the really important thing is it's about my data and my applications, Dave. So if I'm moving an application to a new environment, how do I take advantage of it? You know, we don't just move it to a new environment and run it the same way we were doing it. I need to take advantage of those new environments. Kubernetes is involved in infrastructure, but the real piece is how I have my application, my developers, my app. Dev's working on this environment and therefore it might be that if VM Ware's the right environment, I'm doing a lot of it that the development team says, Hey, I need you to give me a pool and provisioned this for me and I can have my sandbox where I can move really fast. But VM Ware helped initially customers when they went from physical to virtual, move faster. From an infrastructure standpoint, what it needs to do to really enable this environment is help me move faster on the application side. And that's a big gap from VM. Ware's history is where the pivotal people and hefty O people and bit NAMI and all the new people are helping along to help that whole cloud native team. But that is a big shift from customers. So for this to be successful, it's not just, oh, the virtualization admin. He upgraded to the new thing. He made some changes and said, Okay, hey, I can give you a kubernetes cluster when you need it. It's really understanding what's going to happen on the application side in a lot of that is going to be very similar to what you're doing in cloud environments. And I think this is Dave often where your customers, they say, Oh, well, I did that cloud and it was too expensive and it was too hard, and I repatriated. Everything else is, well, you probably didn't plan properly and you didn't understand what you're getting yourself into. And you jumped into the deep end of the pool and oh, wait, I forgot how to learn how to swim. So you know, that is where we are. You know, Dave, you know the technology parts. Always the easiest piece. It's getting all of the organizational and political things sorted out. And you know the developer we know how important that is, we're seeing. It's great to see VM Ware pushing faster in this environment. Kudos to them for how fast they moved. Project Pacific to G. A. That is really impressive to see and can't wait to hear the customers roll out because if this is successful, we should be hearing great transformation stories from customers as to how this is enabling their business, enabling them to move faster on. You know, that has been what, one of the favorite stories that I've been telling with customers on the Cube last couple of years. >>The vast majority of VM Ware's business, of course, is on print, and essentially they're doing here is enabling developers in their customer base and the half a 1,000,000 customers to really develop in a cloud native manner. The question is, you know, from a ah, from a cultural standpoint, is that actually gonna happen? Or the developers gonna reject the organ and say, No, I want to develop in AWS or Microsoft in the cloud. I think VM Ware would say, We're trying to embrace no matter where they want to develop, but they're still going to be. That's interesting organizational tension or developer attention in terms of what their primary choices is. They're not. >>Yeah, Dave, Absolutely. We've been saying for years. That cloud is not a location. It is an operating model. So this is helping to enable that operating model more in the data center. There's still questions and concerns, of course around, you know, consumption on demand versus you know, whether whether you've bought the entire thing as more and more services become available in the public cloud, are those actually enabled to be able to be used, you know, in my data center hosted environment. So you know, this story is not completed, but we're definitely ready. I believe we're saying it's the multi clouds Chapter three of what? We've been watching >>you and you're seeing a major tam expansion yet again from VM Ware that started with the NSX. And then, of course, went in tow networking and storage. And now they've got a cloud security division. We're talking about the the cloud native capabilities here and and on and on, it goes to thanks for helping us break this VC seven announcement down and good job fixed. All right. And thank you for watching everybody. This is Dave Volante for stew Minimum. We'll see you next time on the Cube. >>Yeah,

>>Live from Orlando, Florida It's the cue covering Microsoft Ignite Brought to you by Cohee City. >>Hello, everyone. And welcome to the Cubes live coverage of Microsoft Ignite. We're kicking off three days of live coverage here at the Orange County Civic Center Convention Center. Sorry, I'm your host. Rebecca Knight coasting along side of stew Minutemen. Do we have so much to cover? So many new products? So many new strategies. New Emphasis Head knew new buzzwords, tech intensity and democratization. Uh, you were here. You were in the hub. You heard Satya Nadella live on the main stage. I'd like to just get your initial impressions and initial thoughts of of his keynote, and we're gonna dig into all of >>them. Rebecca, it's great to be here second year doing it with you here. Your background, really on business. Productivity. Really enjoyed doing this one within you. Chew said Walter Wall. Three days of covered The place is just buzzing with activity. 26,000 in attendance for a show that's been called soft night for I think it's been about six years. It was tech head back in the day we talked about last year, you know, this was originally, you know, the windows and office. You know, administrators show and has really matured over time. Trust was a big topic of conversation. And you know what? With my general thing, they rearrange some of the logistics of it. I actually, you know, usually I'm sitting with the press and the analyst upfront. Actually, you know, when in the shoes of the attending here, which meant I stood in our for almost two hours waiting to be one of the 3000 out of 26,000 to go get a seat and communication was a little bit weird and we kind of move in. But I did get a nice seat. Such intel was up on front. I thought they covered a lot of ground and it ran well, logistically. For those of us that were watching from the main stage, I heard remotely, you know, as sometimes happens, you know, Internet or things that there could be some calendars. It is with all of these cloud shows that we go to you just get this barrage of so many different things, everything from you know, really interesting as your arc, which we're gonna spend a bunch of time talking about through all of the latest. Aye. Aye. And the power things that they're going on all the way down through dynamics and teams and devices and EJ and on DDE down to the browser and the search engine. So so many different things. You know, Microsoft, Of course. You know, one of the store words in technology, but clearly laying out Ah, lot of announcements, books worth of you work of all of the announcement that go out there. And you know, general, take that I get for most people is they definitely are impressed so far. And they're gonna spend all week digging in tow, learn more, >>So we're gonna We're gonna dig in right now. But But I also just want to say that setting the scene doll, this is October 25th. Microsoft was given the jet, announced it was announced it was given the jet I contract. This was a big surprise. And this is Microsoft, which is a distant number two to AWS. Did Sathya seem on a high from that still or what is your impression? >>Unless I missed it, I didn't catch anything about it. Absolutely. I've talked to some people around the show, Talk to somebody appears in the media and analyst community. That air talking about it absolutely was a big surprise. Anybody that's interested in this go check out John. For years written down on this, David Lantz has done a lot of analysis. We've been looking at this quite a bit. Amazon really had one this deal, and it went through courts and Oracle, you know, pushed against really hard to try to make for the Amazon, did it. General Mattis writes about it in his book that I think you came out recently, You know, from the president down to make sure that Amazon did not get this politics entry. The high level is it's $10 billion over 10 years, but when you look into it, number one is the minimum purchase. In the first years only like a 1,000,000. It's expected to be more like 202 150 million in the 1st 2 years, but it is a big deal. Microsoft really spent a lot of time the last couple of years going deeper into public sector, making sure they've got the governance and the compliance sergeant is Kino talked about the 54 azure regions and what they're doing. They're still work that Microsoft needs to do. They don't have the Level six security yet which Amazon does that They've been given less than a year to get that, to make sure that they can fulfill this. But a lot of pieces and there will be lots of other government contracts, but lots of intrigue there. I think it goes back to thing we mentioned trust. Can the government trust that Microsoft will allow them to do all they need to do? There's a lot of office 3 65 in the government. And, of course, Microsoft does. This other thing. There's a bunch of in the government is they use Oracle. We know that Oracle and Amazon are still butting heads. You don't expect to see Oracle on Amazon, you know, shaking hands on stage any time soon. At Oracle OpenWorld This year you saw Oracle allowing their solution to run on Azure in friendly licensing terms because you can run Oracle on AWS. But oracles gonna do everything you can to make sure that the licensing terms her onerous in that environment, they want you to do it on their infrastructure or on their environment and really opening up to Azure. Now, the government contrast that they can run it there. And for me, that trust resident. When I talk to the partner ecosystem, there definitely is some concern about Amazon's power in the marketplace and what they will do. Amazon, to their credit, has a big ecosystem there. Marketplace is phenomenal and they are open and give customers choice. But obviously, just like if you serve on amazon dot com, if it's a Amazon Basics or Amazon provider solution, they're probably going toe move that them in that way. Every company does this for, you know, Google makes sure that they optimize for their ads and everything like that. Microsoft in the past was known for optimizing their licensing revenue. Today they're more trusted. They're more open. I think Santa leaves that on the from the top. But you know so many things that they need to dig into. So Jet I not something I'd expect to spend a lot of time on this week, But thank you for bringing it up happily undertone. Because what the moral of the stories today cloud is AWS and Azure are the clear leaders. Yes, AWS still has a sizable lead. A measure is slowly eating into that lead. But as a as a user, as an enterprise, as any company out there, you can't be wrong by choosing either of those solutions. And one of Microsoft's embracing is that multi cloud environment going back to art will talk about how do I live in that multi cloud world? Eight of us still leads with their hybrid solution and use eight of us don't use other clouds. Azure is more embracing of a multi cloud world. >>So so let's talk about that now. But I just in terms of the trust at a time where there is such deep and tremendous skepticism, a big tech in government right now, the trust really is a crucial element. We're gonna We're gonna talk about that today with a lot of our guests two developments that you're most interested in. And I really want to dig into here as your ark. We're gonna start azure Arkin Power platform. But as your brand new today, uh, your thoughts, your impressions? >>Yes. So, as your ark, I can automate update with my policies across any environment, not just azure. So where I look at this and say, OK, do I manage azure with this? Absolutely. It's got kubernetes in it, so I should be able to move things around if need be. My my data center. In what? I'm putting their all of the azure stack and EJ hub all of these azure pieces in my data center. Can I manage that with us? Of course. The question is, what about if I'm using Google? Service is if I'm using A W S service is in the demo that they ran. They showed 80 was and said, Oh, we can manage that I said, That's great that they can. But will customers actually do that? There's a certain skill set. There's no way a program for it. And of course, AWS has its tooling that everybody uses their. So we've been trying to get that single pane of glass of, you know, for more than my entire career. And the techies I talked to is that pane of glass is nothing but P a. I n is the joke we always make. So it is great that they've done this by the way it's on Lee in Tech preview right now, so it's great that they have this. We've been saying for years that Microsoft, if you talk about hybrid, has the lead when you talk about thought, leadership and solutions. But really, that hybrid solution is azure and data center, and I've got my APs that live everywhere. So 03 65 or in my data center in there. What we're really hearing here is a comprehensive reimagining of hybrid, as we've been talking about it more recently is I really blur the lines between my data center, the public cloud and even the edge. So it's great to see Microsoft do this. I got a lot of friends that are at the V M World Europe Show in Barcelona this week. We've been talking about this in the V M where environment for last couple of years of the VM, where on AWS via where on Azure V M wear on Google, Oracle, IBM and more. So it's great that Microsoft has stepped up here. In some ways. It makes me really think how I thought about Microsoft because Microsoft has been, in my mind a leader and hybrid and realizing that they need to really, really make a significant change to the portfolio. To really deliver on the promise of hybrid and multi My definition of when we will have a true multi con solution is when the value that extract from the system is greater than the sum of the parts. And absolutely that's not where we are today. Microsoft has a lot of pieces. Absolutely. They have a right to be one of the leaders pulling those pieces together. And really, it is a place where you see Microsoft and IBM, where partnering, but also all going to be that leader in the management of my cloud native environment. And we're gonna spend a lot of time this week talking to the developers because that's another area that sought to spend a lot of time. Those two point 6,000,000 citizen developers, as he calls them. I'm sure you must have really loved Rebecca. 61% of job openings for developers are outside of the tech sector. >>Well, exactly, and that is that is such a huge point and that's what Sathya said. That's always been our sweet spot wear for the citizen developers and we want to democratize computing. We want to make sure that you can bring your best self to work and be your most productive self to work in. So many of the tools that they have introduced today are all about creativity, collaboration, time management, productivity, individual time productivity as well as team productivity. So there's a lot of exciting developments today. Let's talk about power platform. Speaking of the parts and pieces What what does it do? What most interests you and excites you about power platform >>boy. So you know, first, the last thing. The citizen developers. It's funny when most people do, you know, where do I start? And I started to excel. And of course, Microsoft is probably the company that most people I'm old enough now that I remember, you know, using the spreadsheets before Excel was the leader that it was there. But the power platform, The thing I've been looking at is way were here a year ago. There was no power platform. Did we talk a lot about a I Absolutely. We talk about data warehousing and business intelligence and all of these things. So I'm trying to understand how much of This is just the new umbrella. Platt, the new umbrella messaging around it and how much there's new products. I talked to a couple people that dig in straight here. I talked to a couple of Microsoft Mbps. Which way? There are lots of them here. I haven't mentioned it, Rebecca already. But the community at the show is excellent. It is welcoming. It is engaging. Diversity is front and center at this show and Microsoft Great kudos for that because it ties into that citizen developers. But when you talk about the power platform, it's about enabling the citizen developers. So a few announcements in their power automate is really there are p a solution. We've got power virtual agents, which is understanding natural language and conversations. Such actually did a cute little thing. He went toe like universal and fought the demi Gorgon from stranger things. Stranger things, fan. I thought it was really cute and everything. But, he explained, he's like, Okay, here's you know it's understanding my name and saying, Get back to me. It's understanding the movements that I'm doing and turning that into what what's happening so way. Understand that we're still relatively early into gaining the full benefits out of a I hear. But there's a lot of tooling, and from what the people I've talked to is the power platform absolutely is much more than just a rebranding. There are acquisitions that have come in. There are software launches and you know, Microsoft in the agile, continuously shipping code mode that everybody is in these days, you know, is going through a lot of veneration. So I believe that you know that the platform was announced back in the spring, and something that I've seen with Microsoft and many companies like Cisco, that air going heavily of software, a platform of software, actually could be a unifying factor forcing function between all of these groups. So rather than saying, Oh my gosh, Microsoft, you've got, you know, 1000 different software packages that I would by no, no, that's not the way you think about it. You know, they don't come on a CD or disk anymore. Instead, it's there's something that I plug into on it, cloud enabled. It's able to be, you know, purchase interruptible model. So we've got number of guests that that power platform absolutely is. You know, hearing good things in the ecosystem and absolutely, you know, you know, it is a strength of Microsoft when you talk about the leverage and use of data in a business environment, on is their legacy. >>And this is a company that is going from strength to strength right now, really firing on all four senators cylinders, azure office, 3 65 windows. We haven't talked about fortnight and the other gaming elements here, but in terms of, um, usage issues, I know there were There were a couple of hiccups last week. >>Yeah, so you know, outages or something. People are definitely worried about the cloud. There was reported last week that there was some availability and performance issues. They were throttling things back. They were saying you couldn't scale and we're like, Wait, you know, infinite compute, infinite storage on demand. That's what we need. And from some of the things I heard from the community, the gaming platforms actually were impacting this and actually gaming that run across both AWS and azure. So it definitely is a little bit of a red flag. You know, your azure, your your your microsoft, and you want to talk about that you are a leader in the face. You can trust them. We're gonna keep you going. Well, you know, cos have spent decades making sure that their data centers have the up time and reliability that we need. You know, when I talk to the big cloud providers, they have some of the same conversation we were having back in the infrastructure world, You know, 15 years ago about data availability and data loss, You know? D u D E l date on availability and data loss. It was a four letter word. You can't have it. You would have war rooms and make for the things you know. Don't go down so little bit of a red flag especially, you know, will there be any contesting of the government deal? You don't want something sitting there saying Oh, hey, wait. I have a critical you know d o d operation. That needs to happen. Wait, We can't speak out when we need it. You know that. That's a no No. >>Right. Exactly. Well, this is these air, all the topics we're going to get into and then some over the next three days, it's gonna be an action packed show. I'm looking forward to it. A lot of great guests to thanks >>so much. I can't wait. I >>hope you'll stay tuned for more of the cubes. Live coverage of Microsoft IC night coming up in just a little bit.

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue now Here's your host Day Volonte. >> Hello, everyone, this is David lot. They fresh fresh off the red eye from VM World 2019. And what I wanted to do was share with you some analysis that I've done with our friends at E. T. R. Enterprise Technology Research. We've begun introducing you to some of their data. They have this awesome database 4500 panel, a panel of 4500 end users end customers, and they periodically go out and do spending surveys. They've given me access to that spending data and what I wanted to do because because you had a number of companies announced this this quarter, I wanted to do a storage drill down so pure. Announced in late July, Del just announced yesterday late August. Netapp was mid August. HP was last week again late August, and IBM was mid July. So you have all these companies, some of which are pure plays like pure netapp. Others of you know, big systems companies on DSO. But nonetheless, I wanted to squint through the data and share with you the storage spending snapshot for the second half of 2019. So let's start with the macro. >> What you heard on the conference calls was some concern about the economy. There's no question that the tariffs are on people's minds, particularly those with large exposure exposure in China. I mean, Del obviously sells a lot of PCs in China, so they're very much concerned about that. IBM does a lot of business there, pure, really. 70% appears business roughly is North America, so they're not as exposed so But the macro is probably looks like about 2% GDP growth for the quarter i. D. C. Has the overall tech market growing at two ex GDP. Interestingly, a Gartner analyst told me in May on the Cube that there is no correlation between GDP and I t spend, which surprised me. Some people disagree with that, but But that surprised me. But nonetheless, we we still look at GDP and look at that ratio. Sometimes the other macro is component costs for years. For the storage business the last several years, NAND pricing has been a headwind. Supply has been down, it's kept prices up. It has kept all flash arrays more expensive relative to some of the spinning disc spread the brethren something that we thought would attenuate sooner. It finally has. Nan pricing is now a tailwind, so prices air coming down. What that does is it opens up new workloads that we're really kind of the domain of spinning disk before big data kind of workloads is an example. Not exclusively big data, but it just opens up more workloads for storage companies, particularly Flash Cos The other big macro we're seeing is people shifting to subscription models. They want to bring that cloud like model to the data wherever two lives on Prem in ah, hybrid environment in a public cloud and company storage companies trying to be that that data management plane across clouds, whether on prime it. And that's a That's a big deal for a lot of these companies. I'll talk a little bit more about that, so you're seeing this vision of a massively parallel, scalable distributed system play out >> where >> data stays where it lives. Edge on Prem Public Cloud and storage is really a key part of that. Obviously, that's where the data lives, but you're not seeing data move across clouds so much. What you are seeing is metadata, move and compute. Move to the data so that type of architecture is being set up. It's supported by architecture's, not the least of which are all flash, and so I want to get into it. >> Now I want to share with you some data on this slide. If you wouldn't mind bringing it up. Alex on spending momentum. So the title size spending moment of pure leads, the storage packs and what this shows is the vendor on the left hand side. And it essentially looks at the breakdown of the spending survey where e t r ask the buyers of the different companies products. What percent of the spending is going to go toward replacing? They're gonna replace the vendor. Are they gonna decrease? Spend. That's the bright red is replace. The sort of pinkish is decreased, the spending. The gray is flat. The sort of evergreen forest green is increase in the lime. Green is ad, so if you take the lime green in the forest, green ad and the grow on you subtract the rest. You get the net score, so the higher the net score, the better. you can see here that pure storage has the highest net score by far 48%. I'll show you some data later. That correlates to that when we pull out some of the data from the income statements. >> So this is Ah, the >> July 2019 spending intention surveys specifically asking relative to the second half what the spending intentions are. So this looks good for pure on again. I'll show you Cem, Cem Cem Income State income statement data that really affirms this Hewlett Packard Enterprise actually was pretty strong in the spending survey. Particularly nimble is growing HP Overall, the storage business was was down a little bit, I think, three points, but nimble was up 28%. So you're seeing some spending activity there. Netapp did not have a great quarter. They were down substantially. I'll show you that in a minute. On dhe, it looks like they've got some work to do. Deli M. C. I had a flat quarter. Dell has a such a huge install base. They're everywhere on DSO. Everybody wants a piece of their pie. Del. After the merger of the acquisition of the emcee, their storage share declined. They then bounce back. They had a much, much stronger year last year, and now it's sort of a dogfight with the rest. IBM IBM is in a major cycle shift. IBM storage businesses is heavily tied to its mainframe businesses. Mainframe business was way, way down, its overall systems. Business was down, even though power was up a little bit. But the mainframe is what drives the systems business, and it drags along a lot of storage. IBM has got a new mainframe announcement that it's got to get out. It's got a new high end storage announcement that it's got to get out, and it's really relying on that. So you can see here from the E T. R data, you know, pure way out ahead of the pack continues to gain share about over 1000 respondents to this. So a lot of shared accounts by shared accounts mean the number of accounts that that actually have some combination of multiple storage vendors. And so they were able to answer this 1068 respondents pure the clear winner here. Now let's put this into context. So the next slide I want to show you some of the key performance indicators from the June quarter off the income statements. >> So again you see, I get the vendor. The revenue for the quarter of the year to year growth for that quarter relative to last year. The gross margin in the free cash flow, just some of the key performance indicators that I'd like to look at. So look at pure Let's go, Let's go to the third column Look at growth pure 28% growth. Del flat 0% for this is just for storage. There's a storage growth. NETAPP down 16% end up in a bad quarter, HP down 3%. IBM down 21% Do due to the cycle that I discussed, You see the revenue, um, pure, growing very, very fast. But you know, from a small base or at 396 million versus compared that to Dell's 4.2 billion net APs 1,000,000,000 plus H p e. Almost a billion in IBM not nearly as large. And then look at the gross margin line. Pure is the industry's leading gross margin. It's just slightly above 69%. Dell is a blended that Asterix is a blended gross margin, so it includes PCs, servers, service's of V M wear, everything and, of course, storage. So now, when dehl was a public company before it went private, it's gross. Margins were in the high teens. So Del is in gross margin heaven with with both E, M C and V M wear now as part of its portfolio NetApp high gross margins of 67%. But that gross margin is largely driven by its gross margins from software and maintenance. And so that's a screen considerable contributor. Their product gross margins air in the mid fifties, kind of where I think E. M. C. Probably is these days. And when the emcee was a public company, it's gross. Margins were in the mid sixties, but then, as it was before, went private. I think it was dipping into the high fifties as I recall you CHP again, that's a blended gross margin, just roughly around 34%. I don't have as much visibility on their their storage gross margins. I would I would say they are below, in my view, what DMC and net out well below what Netapp would be on then IBM. That's again blended gross margin includes hardware. Software service is 47.4% probably half or more of IBM businesses. Professional service is on. IBM has, of course, a large software business as well. So and then the free cash flow you can see pure crushing it from the standpoint of of gaining share, I mean way, way ahead of the other market players, but only 14 million in free cash flow. So coming from a much, much smaller base, however pure, is purely focused on storage. So there are Andy. All their R and D is going into that storage space. DEL. Free cash flow very large. 3.4 billion that again is across the entire company. Net App. You can see 278 million h p e 648 million great quarter for HP from a free cash flow standpoint, I think year to date they're probably 838 140 million. So big Big quarter. For them. An IBM A 2.4 billion again. Dell, HP, IBM. That's across the company, as is the gross margin. So the the spending data from E. T. R. Really shows us that pure, strong Aziz showed you that very high net score and the intentions look strong, so I would suspect pure is going to continue to lead in the market share game. I don't see that changing. Certainly there's no evidence in the data. I think I think everybody else is in a sort of a dogfight del holding firm, you know, 0%. You'd like to see a little bit of growth out of that, but I think Del is actually, you know, Dell's key metric is, Are we growing faster than the market? That's that's they're sort of a primary criterion in metric for Dell is to grow faster than the overall market because that means you're growing some share. I think Del is comfortable with that. Della's gross margins actually were helped this this quarter by the fact that Dell server business was down 12%. There was a higher storage mix, so it propped up the margin a little bit. But again, generally speaking, it looks like pure is the market share winner here, but much, much smaller than the other guys. HB limbo very strong, and it shows up in the survey data from E T. R. And an IBM just needs to get a new product cycle out. So we'll come back. >> We'll take a look at this in in in in January and see how you know what it looked like and will continue to fall. Obviously, the income statement and the public reporting pure accelerate is coming up next month. Justin in mid September. I have no doubt, you know, pure has been first in a lot of different areas, right? They were first really all flash Ray. The only all flash. You're a company that ever reached escape velocity. They were they in Nutanix for the first kind of new $1,000,000,000 companies that people said would never have a billion dollar company. Pure is a pure play storage company, you know? Well, over a billion. Now, you know, they were first with that evergreen model. They made a lot of play there. You know, the first with envy, Emmy and first with the Nvidia relationships with Superior likes to be first. I have no doubt and accelerate next month down in Austin, curious that they picked Austin in Dell's backyard. I have no doubt that they're gonna have some other firsts at that show. Cuba be there watching just off of the emerald, the other big player here. Of course, that I'm not showing his v. San visa is very, very strong. You know, the D. E. T. Our data shows that, and certainly the data from the income statement shows of'em were NSX, the networking products, their cell phone to find network in their self defined storage of the the the V San. Very, very strong Pat Girl singer on the Cube. We asked him last week, Thio, take us through. So if someone has big memories and one of them was sort of East san, Excuse me. One of them was V San, and the board meeting at with Joe Tucci was on the Vienna where board really put a lot of pressure on Pat's and you can't do this to me. It's funny. Emcee had the shackles on the M, where for a number of years, but the shackles are off and visa is very, very strong. So these are some of the things we're keeping an eye on. Thanks for watching everybody busy day Volante, Cuban sites. We'll see you next time

>> live from San Francisco celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Welcome back to San Francisco. We continue our coverage here. Live on the Cube. 10th year John of covering Veum World This is 29 teens version John for John Wall's Got to have inside the Moscone Center. We're joined now by Varun Chabrol It was the vice president of marketing at Delhi M. C. Good to see you today. >> Thanks for having me. >> How's your week been? So far? >> It's been amazing. How can you don't get excited? All the innovation we're seeing this week >> we'll hear about some big announcements. Do you guys have made? And Moon Young Man Azzedine, who is the vice president of product marketing that for cloud security and works based solutions at Veum wear when you're good to see you. >> Good to see you again. You, By >> the way, you might be the busiest guy here. Yesterday, when you came into the set, you were coming in. Just spoken to 1300 people in a standing room only session You coming out? 500 folks, How many sessions have you done? The seven. So >> you don't count the the one on one with the analyst. And, uh, you know, the customers and partners and press. And tomorrow actually host ah 140 press media analyst on campus in Palo Alto from Asia Pacific because they float all the way from Asia >> plus 140. Yeah, it's a piece of cake. >> Yeah, hose them from 10 to 4. So, I mean, >> you're always smiling >> knowing that this is a pretty wide audience to whom you've been speaking. But just generally, what are you if there's a common thread at all about the kinds of questions that people are coming to you with, or or the concerns or maybe just the things they want to talk about being inspired. But what they're hearing here at the show, >> Okay. Now, according to two aspects of it, one obviously from analysts themselves, you know, they are actually have been very complimentary about the way we've taken our approach. I'm not sure if you could have paid attention. In the last couple of years, we've been talking especially the cloud side, the narrative, to be very much about use cases, solving problems. You know the key? No, we talked about hate my grade modernize. It wasn't about Hey, I've got the next big product here with all these features and capabilities. You do this and that. So we're gonna shifted out narrative. And it was very, you know, the the analyst across the boat. You know, we've been seeing an appreciative of the fact that you actually changing a narrative to be re compelling and we're gonna reflected. And we have some things here like Cloud City, where it's not a standard demo boot. It's a it's ah, Customers walk in and they touch and feel and see which we did it, Adele technology will, too. It's like, What's your business? Probably going through these applications. I'm sitting. I don't know if I should be modernizing them or should be migrating into Amazon. A ridge or so. So you know that narrative the analysts are appreciative off, and that reflects into the customer conversations I've been having in the briefings, like one on one with customers. They're really kind of lost us. D'oh! Hey, I've I'm working in this environment. There's a lot of pressure for me. Thio modernize my applications or go adopt my cloud. First strategy is where do I start? Where do I go? It's like, you know, there's a big pressure, so they just want clarity. I think in the end, everything we're gonna we're doing in our study that comes out obviously the buzzword for this weird world. It stanza, right? And, you know, >> we've won the product announcements was >> actually Brandon can Oh, yeah. Branding announcement, to be honest is yeah, because we're trying to bring together, as you know, in Tansy has landed in Bill Run Manage billed as in you know how our intent to acquire Pivotal Already acquired Big Tommy. How all our different acquisitions with different brand names are coming together to establish our bills portfolio again. The sphere. Everybody knows the sphere Project Pacific P ks. All of those create a good run time, environment and manageability like Adi manage with assets from ve Franta gain morbid Nami and you know it. So this multiple brands that are coming into this package off Iran. So we had a creative tan Xue too, you know, put forward statement together that yes is going to be 78 different brands coming into this, but going forward to stand. >> So so that's a great strategy on De Liam Seaside on Del Technology. Michael Dell was in here and I asked him. I said he could have been number one in everything you could. Let's talk about I'm number one in servers again. You kind of get on HP, little baby. But those air peace parts now. So we've got the cloud game. It's bringing despair it at parts together kind and making it coherent from a positioning standpoint and understandable and deployable. So you guys are going down there. That's your cloud strategy. Take a minute to explain that. >> Yeah, absolutely, John. So So what? What we've been doing. We announced this at Del Technologies will this year. But, you know, in the cloud infrastructure space, we're working very closely with the anywhere too tightly integrate our hardware solutions with their their cloud software. And we think that by combining these two in a tightly integrated joined engineer, jointly engineered solutions coupled with the service, is that you know, both of'em were and l e m c bring the customers we think we have. We're giving customers are very consistent experience both with their own premises, infrastructure with public cloud as well as with the edge cloud. And that's really what we're trying to do. That's what we've been building upon and uniting the announcements this week. You know, just just hopefully show customers that the sky's the limit, whether it's not just your infrastructure management. Also app development. Managing your APS both traditional and and cloud native. It's all here for And >> what's the big takeaway free from your standpoint that you'd like people to know about what's going on? Adele the emcee for the VM. Where relation. What's the big top item? >> Yeah, there's there's there's just so much good Doctor Wait forever drank the town about. If someone rises >> way, only have two hours >> time work. The most important thing that people should should know about it, >> you know, both deli M. C and V. M. R. I think, are very, very customer driven companies that we respond to customer feedback and we try to respond to them very fast. That's been true to our respective lifetimes and what we've done in the so that I think there's two broad areas of collaboration. One is in the cloud space, which is all about, you know, making sure that the the innovation that GM is bringing the market, we're providing that in a toy tightly integrated infrastructure solution. Right. So we announced from a deli in seaside support for Vienna, where p ks being deployed automatically on Vieques trail using VCF return. Our customers can you know, a lot of teams were telling us we have our developers and turning developers banging slash knocking on the door, saying we need to build a cloud. Native applications. You need to give us an environment that we can use. And you know, if if all righty, if these IittIe teams don't turn around and give them something relatively quickly Well, guess what? The developers will go somewhere else, right? Yeah, exactly. So And if you look at the kubernetes environment today, if you really look look at what the work that's required to set up kubernetes and ready infrastructure. So a lot of scripting a lot of manual, you know, work command line interface is testing stuff. And what what? V m r p k s does. And you know what times you will do as well is really makes it easy when we've taken that with the magic of the American Foundation sitting on top of the exhale to make it super easy for our customers to be able to deploy kubernetes ready infrastructure and then have it be ready for scale, right? And then the important thing here also is this is the same infrastructure of the expelling bcf that our customers are using for traditional applications as well, right? Trying to reduce that complexity. Give them the one platform. So this cloud, you know, we had we were doing the same integration on just with R A C I platform, but also with our best to breach storage or we're not working with the C f. And then we're also making investments on data protection like it's so important to be able to manage your data in this multi cloud world. We have applications sitting everywhere, data. We all know that it is a crown jewel. So >> it's really a king validating from the Vienna a point of view. How that works right is is about applications is about the infrastructure, and it's about the operation and it really kind of together as we talk about Han Xue p. K s is giving our customers that Chuy's off. You pick Cuban eighties, you know, environments, application choice. >> Um, >> it took us. Actually, we didn't We didn't arrive it in that order. Wait. Did it. In the outer off Infrastructure Plot Foundation is a critical piece of the joint engineering. But being aware and the Della Bella Technologies is really from aviary perspective. It took Locke Foundation, and that's the stack that runs in every public cloud. So, you know AWS as your G C P 4000 plus, you know, cloud provider partners. But Flat Foundation is a platform that was validated on. They'll take hardware and you know, that's the package. But now, as you see, we're lighting that it's same infrastructure up for traditional and culminated applications. >> I think the app sides important to point out, because if you could ve m wears heritage, you look at Dale's heritage. You had abs that ran on PCs absent, ran on servers, client server. And if you look at the fertilization that wasn't under the covers, apt an innovation that didn't require code changes. So that's the DNA that you guys have. Now, when you think about like cloud to point out which we've been riffing on that concept that's basically enterprise cloud mean donut. Hybrid cloud applications are gonna drive. The value on our premises is that they're going to be customer requirements that traditionally wouldn't have fit in the product. Marketing, management, featureless customs. Gonna define what they want. They'll build it, and then they'll dictate to the infrastructure to make it run. What? We can't do that yet. It'll be, Yes, we cannot be enabled to be dynamics. This is a a new cloud. 2.0, feature. This changes the complete game on suppliers >> completely agree. You know to your point, because, you know, you bring it thio back toward civilization. We've been going higher up the stack on So Day zero virtualization infrastructure will virtual eyes. So the line off abstraction has just been climbing from hardware retort realization next to like, you know, Pat platform of the service, and you kind of were working up our way down infrastructure. Now that base infrastructure platform looks like plants. Right? >> And there were times out a little bit over here. On the upside, you meet in the middle of >> it in the middle >> that is Hello, >> absolutely so ap and at middle wears shrinking down this way. Infrastructures. You know that the cloud incriminating stride in the middle to say, Well, that's a bit of, you know, infrastructure is a Kodak and pull. He's a bit of a AP AP eyes I can can I draw from And that's kind of nice future middleware. But our dad, I >> mean, I think applications air in charge, right? I mean, that's not sure That's the dynamic. That's the way it should be. But it never was that way before is basically the infrastructure was your gating factor. The network exact cloud two points Network security data. Yes, Dev Ops. A true Dev Ops Devane, Ops, Infrastructures Code. >> The only point I wanted to add is the reason the emphasis on abscess change acts in the past. Used to be a business support system after today is business. >> Yeah, I mean, it's >> really or you're you're gonna live or die based on the digital services you provide your customers. The other thing I was going to say about cloud 2.0, is that it's also becoming increasingly clear when we Dr customers that, um, customers are realizing Cloud is not a place right. There was this kind of cloud. One point it was okay. Big honking data centers, hyper skaters will be found now is that customers have gone through that process of and there's a lot more maturity in terms of understanding. What is good, better running on premises. What is what's better running in public Cloud? There's a place for both of them and that, um, and the cloud is actually the automation, the service delivery. It's Maurin operation and a way of being almost than a place. >> And what is it? Well, what does it do for you all? Then, in terms of challenge, especially at your teams, because you talk about all this customization, you're allowing the application to almost drive. You know, you're changing places in terms of who's the power of the relationship? Yes. Oh, me, yeah, How what? What does that do for you? Oh, in terms of how you approach that, how you change of mindset and how you change what you deliver? >> I think John, it's the way I think about it is that both daily emcee in Vienna, or any technology provider that's worth their salt is in the business of building platforms. Right? And platforms are essentially extensible. They're really they really provide a foundation that other people can innovate on top of it. And that's how I think you handled the customers issue. If one thing I think we can all agree on is that I t has always taught us there's no one size fits. All right? Right. So I think providing choice along every single dimension is super important for our >> customers. Yeah, I think that platform thing is a huge point. And I was gonna ask that question before John got jumped in because one of the things that you just brought up was platform is you guys have to build an enabling platform. One as suppliers. Okay, The successful cloud to point out cos are ones that are innovating in weird areas. Monitoring, for instance, they who will have thought that monitoring now observe ability would be such a massive, lucrative sector four. I pose M and A Why? Because it's data. It's instrumentation. This is operating system kind of thinking here is like network. So thinking like a platform on the supplier size one, the customers got to start thinking like a platform because their stakeholders air their internal developers or a P I shipping to suppliers. This is new for enterprises. This is news requires full hybrid capability. This requires date at the center of the value proposition. >> That's again the biggest value is business and I tr coming together on the area of applications and data. Yeah, that's starting up giving because the successful businesses are the ones who leveraged. Those guys have failed in the future, or the ones who don't pay attention to how critical applications are to the business logic and how critical data is to be able to mine and get the behavioral analytics to get ahead. And >> now the challenge in all this. But I'm learning and covering some of the public sector activity from the C I. A contract Jedi with Amazon to we had Raytheon Her here earlier is another customer example with another client is that procurement? And how they do business is not just a technical thing. There's like all this old legacy, things like, How do you procure technology, who you hire her and we hire developers? We build our own stack, so there's a lot of things going on. >> Yes, and you know, it's really interesting on the even on the procurement front, how our customers experience with Cloud has changed expectations, right, And that's really what we're doing with the McLaren DMC is what customers told us is, Hey, I love the agility of the cloud portal based access. Easy procurement. I love just being able to click a button and not have to navigate all this complexity. I need that for my own premises infrastructure. Imagine FRA structure. And that's, you know, in an example, while all of these dynamics are really all converging, >> well, if you can create abstraction, layer on a level of complexity and make things easy, simple and affordable, that's good business. Model >> one of our customers without taking the name right. The massive retailer you know they're spinning up, um, the retail outlets like crazy. They measure success in This was one truck roll, so they wanna have the entire infrastructure come into stand up one of the retail outlets in one truck roll. When everything comes in one button push that everything gets in a provision and up together. >> So that means I gotta have full software instrumentation automation Got intelligence. This is kind of where cloud 2.0, will lead us all >> likely. And that's expectation now that they go so fast and deploying this one Truck roll Hardware's there. Switch it on from the cloud it stood up and they're in operation 24 hours. >> Well, guys, we're going to get you on our power panels in our Palace of studio on this topic cloudy. But it's gonna be very aggressive and controversial topic because it's going to challenge the status quo. And that's really what this we're talking about >> that's in our DNA. >> And the good news is that that's more time with John. >> So as we before, we say so long, we've talked about clients. We talked about the folks you bet here. We talked about the presentation on this thing and what they're all getting out of it. What are you getting out of this? I mean, what are your takeaways? As you had back to your respective work orders, you get first. Okay? >> I think for me the biggest takeaway is just how incredibly vibrant via more user communities. I mean, it is unlike anything else I've seen before and now with the things like Project Pacific. I just feel like it's It's an opportunity for this community to be able to take the skills they have right now and actually go into this brave new world of containers with so much help forces having to do this all by yourself. Which means it's gonna be, you know, if you think about how largest community is, think about how much innovation this will spore in the container space and because of that in the application space and then because of that in business is I mean, this is a It just feels like a tipping point for me >> to me. Sure, I got high fives from every tech geek, you know, when we came out, you know, I also on our technical advisory boats for the company that these are the hot core geeks who were followed and you know us to the, you know, these were the fans and they were like, you know, they always kind of like if you walk out of them and you talk to them and they, uh how did it work? Because they my bar, you have a very high bar. They cut through all your marketing messaging. They go right to the hay. Is there meet in this And the high fives? I got the hajj. I got out. This is like, guys, you're nailing it. That's enough to tell me that a This is, like, 10 years ago. Yeah, that body. It's like you're so busy. I'm still smiling because the energy is I >> can't give you a hug. Give me a high five. Right. Good work, gentlemen. Thanks for the time. Always, he's still smiling to >> get you to a step. >> Good deal. Thanks for being with us. Thank you. Live on the Cube. You're watching our coverage in world 2019. Where? San Francisco. Back with more. Right after this.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to San Francisco, everybody. My name is David Lantz. I'm here with my co host John Troia. This is Day three of V M World 2019 2 sets. >> This is >> our 10th year at the M. World Cube is the leader in live enterprise tech coverage. Marry on Blondie is here. He's the C m o and chief evangelist that 10 tree by DDN Yes, sir. He's joined by Graham Breezes The Field CTO at 10 Tree also by DDN Recent acquisition jets Great to see you. >> Likewise, as they say, we're back. I like I like to call it a hibernation in the sense that people may have not known where did Ian or 10 Trias and Tension by Dede and, as the name implies, were acquired a year ago at the M World August 31st of 2018. And in the year since, we've been ableto invest in engineering support, my joining the company in marketing to take this solution, we've been able to save thousands of customers millions of man hours and bring it to a larger number of users. Way >> first saw 10 tree, we said, Wow, this is all about simplification. And Jonah Course you remember that when you go back to the early early Dick Cube days of of'em World, very complex storage was a major challenge. 10 Tree was all about simplifying that. Of course, we know DDN as well is the high performance specialist and have worked with those guys for a number of years. But take >> us >> back Married to the original vision of 10 Cherie. Is that original vision still alive? How was it evolved? >> Well, I'd say that it's, ah, number one reason why we're a part of the DD and family of brands because, as, ah, portfolio company, they're looking good. Bring technologies. I'm the marketing guy for our enterprise or virtual ization audience, and the product sets that cover high performance computing have their own audience. So for me, I'm focused on that. Graham's also focused on that, and, uh, really what continues to make us different today is the fact we were designed to learn from the beginning to understand how virtual machines end to end work with infrastructure. And that's really the foundation of what makes us different today. The same thing, right? >> So from the very beginning we were we were built to understand the work clothes that we service in the data center. So and that was virtual machines. We service those on multiple hyper visors today in terms of being able to understand those workloads intrinsically gives us a tremendous capability. Thio place. I owe again understanding that the infrastructure network storage, hyper visor, uh, weaken view that end end in terms of a latent a graph and give customers and insight into the infrastructure how it's performing. I would say that we're actually extending that further ways in terms of additional workload that we're gonna be able to take on later this year. >> So I know a lot >> of storage admits, although I I only play one on >> TV, but, uh, no, consistently >> throughout the years, right? 10 tree user experiences that is the forefront there. And in fact, they they often some people have said, You know what? I really want to get something done. I grab my tent Reeboks and so it can't talk. Maybe some examples of one example of why the user experience how the user experiences differ or why, why it's different. >> I'll start off by saying that I had a chance being new to the company just two weeks to meet a lot of 10 tree users. And prior to taking the job, I talkto us some folks behind the scenes, and they all told me the same thing. But what I was so interested to hear is that if they didn't have 10 tree, they'd otherwise not have the time to do the automation work, the research work, the strategy work or even the firefighting that's vital to their everyday operations. Right? So it's like, of course, I don't need to manage it. If I did, I wouldn't be able to do all these other things. And I think that's it. Rings true right that it's hard to quantify that time savings because people say, 0 1/2 of it. See, that's really not much of the greater scheme of things. I don't know. 1/2 50. Working on strategic program is a huge opportunity. Let's see >> the value of 10 tree to our end users and we've heard from a lot of them this week actually spent a fantastic event hearing from many of our passionate consumers. From the very beginning. We wanted to build a product that ultimately customers care about, and we've seen that this week in droves. But I would say the going back to what they get out of it. It's the values and what they don't have to do, so they don't have to carve up ones. They don't have to carve up volumes. All they have to do is work with the units of infrastructure that air native to their environment, v ems. They deal with everything in their environment from our virtual machine perspective, virtual machines, one thing across the infrastructure. Again, they can add those virtual machines seamlessly. They can add those in seconds they don't have toe size and add anything in terms of how am I gonna divide up the storage coming in a provisional I Oh, how am I going to get the technical pieces right? Uh, they basically just get place v EMS, and we have a very simplistic way to give them Ah, visualization into that because we understand that virtual machine and what it takes to service. It comes right back to them in terms of time savings that are tremendous in terms of that. >> So let's deal with the elephant in the room. So, so 10 tree. We've talked about all the great stuff in the original founding vision. But then I ran into some troubles, right? And so what? How do you deal with that with customers in terms of just their perception of what what occurred you guys did the eye poets, et cetera, take us through how you're making sure customers are cool with you guys. >> I'm naturally, glass is half full kind of guy from previous, uh, times on the Cube. The interesting thing is, not a lot of people actually knew. Maybe we didn't create enough brand recognition in the past for people to even know that there was a transition. There were even some of our customers. And Graham, you can pile on this that because they don't manage the product every day because they don't have to. It's kind of so easy they even for gotten a lot about it on don't spend a lot of time. I'd say that the reason why we are able to continue. Invest today a year after the acquisition is because retaining existing customers was something that was very successful, and to a lot of them, you can add comments. It wasn't easy to switch to something. They could just switch to something else because there's no other product, does these automatic things and provides the predictive modeling that they're used to. So it's like what we switched to so they just kept going, and to them, they've given us a lot of great feedback. Being owned by the largest private storage company on planet Earth has the advantages of strong source of supply. Great Leverett reverse logistics partnerships with suppliers as a bigger company to be able to service them. Long >> trial wasn't broke, so you didn't need to fix it. And you were ableto maintain obviously a large portion of that customer base. And what was this service experience like? And how is that evolving? And what is Dede and bring to the table? >> So, uh, boy DD and brings so many resources in terms of bringing this from the point when they bought us last year. A year ago today, I think we transition with about 40 people in the company. We're up about 200 now, so Ah, serious investment. Obviously, that's ah have been a pretty heavy job in terms of building that thing back up. Uh, service and support we've put all of the resource is the stated goal coming across the acquisition was they have, ah, 10. Tree support tender by DNC would be better than where 10 tree support was. We fought them on >> rate scores, too. So it's hard to go from there. Right? And >> I would say what we've been doing on that today. I mean, in terms of the S L. A's, I think those were as good as they've ever been from that perspective. So we have a big team behind us that are working really hard to make sure that the customer experience is exactly what we want. A 10 tree experience to be >> So big messages at this This show, of course, multi cloud kubernetes solving climate change, fixing the homeless problem in San Francisco. I'm not hearing that from you guys. What's what's your key message to the VM world? >> Well, I personally believe that there's a lot of opportunity to invest in improving operations that are already pretty darn stable, operating these environments, talking to folks here on the floor. These new technologies you're talking about are certainly gonna change the way we deploy things. But there's gonna be a lot of time left Still operating virtualized server infrastructure and accelerating VD I deployments to just operationalized things better. We're hoping that folks choose some new technologies out there. I mean, there's a bill was a lot of hype in past years. About what technology to choose. We're all flash infrastructure, but well, I'd liketo for the say were intelligent infrastructure. We have 10 and 40 get boards were all flash, but that's not what you choose this. You choose this because you're able to take their operations and spend more your time on the apse because you're not messing around with that low level infrastructure. I think that there's a renaissance of, of, of investment and opportunity to innovate in that space into Graham's point about going further up the stack. We now have data database technology that we can show gives database administrators the direct ability to self service their own cloning, their own, staging their own operations, which otherwise would be a complex set of trouble tickets internally to provision the environment. Everyone loves to self service. That's really big. I think our customers love. It's a self service aspect. I see the self service and >> the ability to d'oh again, not have to worry about all the things that they don't have to do in terms of again not having to get into those details. A cz Morrow mentioned in terms of the database side, that's, ah, workload, the workload intelligence that we've already had for virtual machines. We can now service that database object natively. We're going to do sequel server later this year, uh, being ableto again, being able to see where whether or not they've got a host or a network or a storage problem being able to see where those the that unit they're serving, having that inside is tremendously powerful. Also being able the snapshot to be able to clone to be able thio manage and protect that database in a native way. Not having to worry about, you know, going into a console, worrying about the underlying every structure, the ones, the volumes, all the pieces that might people people would have to get involved with maybe moving from, like, production to test and those kinds of things. So it's the simplicity, eyes all the things that you really don't have to do across the getting down in terms of one's the volumes, the sizing exercises one of our customers put it. Best thing. You know, I hear a lot of things back from different customer. If he says the country, the sentry box is the best employee has >> I see that way? Reinvest, Reinvest. I haven't heard a customer yet that talks about reducing staff. Their I t staff is really, really critical. They want to invest up Kai throw buzzword out there, Dev. Ops. You didn't mention that it's all about Dev ops, right? And one thing that's interesting here is were or ah, technology that supports virtual environments and how many software developers use virtual environments to write, test and and basically developed programmes lots and being able to give those developers the ability to create new machines and be very agile in the way they do. Their test of is awesome and in terms of just taking big amounts of data from a nap, if I can circling APP, which is these virtual machines be ableto look at that on the infrastructure and more of her copy data so that I can do stuff with that data. All in the flying virtualization we think of Dev Ops is being very much a cloud thing. I'd say that virtual ization specifically server virtualization is the perfect foundation for Dav ops like functionality. And what we've been able to do is provide that user experience directly to those folks up the stacks of the infrastructure. Guy doesn't have to touch it. I wanted to pull >> a couple of threads together, and I think because we talked about the original vision kind of E m r centric, VM centric multiple hyper visors now multi cloud here in the world. So what >> are you seeing >> in the customers? Is that is it? Is it a multi cloud portfolio? What? What are you seeing your customers going to in the future with both on premise hybrid cloud public. So where does where does 10 tree fit into the storage portfolio? >> And they kind of >> fit all over the map. I think in terms of the most of the customers that we have ultimately have infrastructure on site and in their own control. We do have some that ultimately put those out in places that are quote unquote clouds, if you will, but they're not in the service. Vendor clouds actually have a couple folks, actually, that our cloud providers. So they're building their own clouds to service customers using market. What >> differentiates service is for serving better d our offerings because they can offer something that's very end end for that customer. And so there's more. They monetize it. Yeah, and I think those type of customers, like the more regional provider or more of a specialty service provider rather than the roll your own stuff, I'd say that Generally speaking, folks want tohave a level of abstraction as they go into new architecture's so multi cloud from a past life I wrote a lot about. This is this idea that I don't have to worry about which cloud I'm on to do what I'm doing. I want to be able to do it and then regards of which clouded on it just works. And so I think that our philosophy is how we can continue to move up the stack and provide not US access to our analytics because all that analytic stuff we do in machine learning is available via a P I We have ah v r o plug in and all that sort of stuff to be able allow that to happen. But when we're talking now about APS and how those APS work across multiple, you know, pieces of infrastructure, multiple V EMS, we can now develop build a composite view of what those analytics mean in a way that really now gives them new inside test. So how can I move it over here? Can I move over here? What's gonna happen if I move it over here over there? And I think that's the part that should at least delineate from your average garden variety infrastructure and what we like to call intelligent infrastructure stopping that can, Actually that's doing stuff to be able to give you that data because there's always a way you could do with the long way. Just nobody has time to do with the long way, huh? No. And I would actually say that you >> know what you just touched on, uh, going back to a fundamental 10 tree. Different churches, getting that level of abstraction, right is absolutely the key to what we do. We understand that workload. That virtual machine is the level of abstraction. It's the unit infrastructure within a virtual environment in terms of somebody who's running databases. Databases are the unit of infrastructure that they want to manage. So we line exactly to the fundamental building blocks that they're doing in those containers, certainly moving forward. It's certainly another piece we're looking. We've actually, uh I think for about three years now, we've been looking pretty hard of containers. We've been waiting to see where customers were at. Obviously Of'em were put. Put some things on the map this week in terms of that they were pretty excited about in terms of looking in terms of how we would support. >> Well, it certainly makes it more interesting if you're gonna lean into it with someone like Vienna where behind it. I mean, I still think there are some questions, but I actually like the strategy of because if I understand it correctly of Visa, the sphere admin is going to see the spear. But ah ah, developers going to see kubernetes. So >> yeah, that's kind of cool. And we just want to give people an experience, allows them to self service under the control of the I T department so that they can spend less time on infrastructure. Just the end of the I haven't met a developer that even likes infrastructure. They love to not have to deal with it at all. They only do it out. It assessed even database folks They love infrastructural because they had to think about it. They wanted to avoid the pitfalls of bad infrastructure infrastructures Code is yeah, way we believe in that >> question. Go to market. Uh, you preserve the 10 tree name so that says a lot. What's to go to market like? How are you guys structuring the >> organizational in terms of, ah, parent company perspective or a wholly owned subsidiary of DDN? So 10 tree by DDN our go to market model is channel centric in the sense that still a vast majority of people who procure I t infrastructure prefer to use an integrator or reseller some sort of thing. As far as that goes, what you'll see from us, probably more than you did historically, is more work with some of the folks in the ecosystem. Let's say in the data protection space, we see a rubric as an example, and I think you can talk to some of that scene where historically 10 Tree hadn't really done. It's much collaboration there, but I think now, given the overall stability of the segment and people knowing exactly where value could be added, we have a really cool joint story and you're talking about because your team does that. >> Yeah, so I would certainly say, you know, in terms of go to market Side, we've been very much channel lead. Actually, it's been very interesting to go through this with the channel folks. It's a There's also a couple other pieces I mentioned you mentioned some of the cloud provider. Some of those certainly crossed lines between whether they're MSP is whether they are resellers, especially as we go to our friends across the pond. Maybe that's the VM it'll Barcelona discussion, but some of those were all three, right? So there are customer their service providers there. Ah ah, channel partner if you want terms of a resellers. So, um, it's been pretty interesting from that perspective. I think the thing is a lot of opportunity interview that Certainly, uh, I would say where we're at in terms of, we're trying to very much. Uh, we understand customers have ecosystems. I mean, Marco Mitchem, the backup spaces, right? Uh, customers. We're doing new and different things in there, and they want us to fit into those pieces. Ah, and I'd certainly say in the world that we're in, we're not tryingto go solve and boil the ocean in terms of all the problems ourselves we're trying to figure out are the things that we can bring to the table that make it easier for them to integrate with us And maybe in some new and novel, right, >> So question So what's the number one customer problem that when you guys hear you say, that's our wheelhouse, we're gonna crush the competition. >> I'll let you go first, >> So I'd say, you know, if they have a virtualized environment, I mean, we belong there. Vermin. Actually, somebody said this bed is the best Earlier again. Today in the booze is like, you know, the person who doesn't have entries, a person who doesn't know about 10 tree. If they have a virtual environment, you know, the, uh I would say that this week's been pretty interesting. Lots of customer meetings. So it's been pretty, pretty awesome, getting a lot of things back. But I would say the things that they're asking us to solve our not impossible things. They're looking for evolution's. They're looking for things in terms of better insights in their environment, maybe deeper insights. One of the things we're looking to do with the tremendous amount of data we've got coming back, Um, got almost a million machines coming back to us in terms of auto support data every single night. About 2.3 trillion data points for the last three years, eh? So we're looking to make that data that we've gotten into meaningful consumable information for them. That's actionable. So again, again, what can we see in a virtual environment, not just 10 tree things in terms of storage of those kinds of things, but maybe what patches they have installed that might be affecting a network driver, which might affect the certain configuration and being able to expose and and give them some actionable ways to go take care of those problems. >> All right, we gotta go marry. I'll give you. The last word >> stated simply if you are using virtual, is a Shinto abstract infrastructure. As a wayto accelerate your operations, I run the M where, if you have ah 100 virtual machine, 150 virtual machines, you could really benefit from maybe choosing a different way to do that. Do infrastructure. I can't say the competition doesn't work. Of course, the products work. We just want hope wanted hope that folks could see that doing it differently may produce a different outcome. And different outcomes could be good. >> All right, Mario Graham, Thanks very much for coming to the cubes. Great. Thank you so much. All right. Thank you for watching John Troy a day Volante. We'll be back with our next guest right after this short break. You're watching the cube?

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Welcome back, I'm stew minimum like co host for this segment is Justin War, and this is the 10th year of the Cube here at VM World 2019 when the lobby of Mosconi North and happened. Welcome to the program first, a first time guest on the program. June Yang, who is the vice president of product management and engineering at VM. Where. Thank you so much for joining us. >> Thank you for having me. >> And welcoming back to the program is Marin Cabra, who's the vice president. Product marketing of Cloud at Delhi emcee for in Great to See You, thanks to All right, June so many different pieces talking about Cloud Way. Think back 10 years ago, you know, Pomerance was talking about it like it's the software mainframe. What we're talking because, you know, even back then, you know, Cloud isn't really it's not a destination or a place. You know, there is no cloud is just somebody else's computer. It's more of an operating model, so of course, the VM work cloud on various solutions. Of course. Sitting here with Del, I'm sure we'll be talking about the V. MacLeod, a deli emcee. But just give us over a little bit about you know, you're in a lot of customer meetings. You know what's resonating with your customers. What are they coming to you tow? Discuss when it comes to their overall cloud strategy? >> Yeah, I think for a lot of customers, they're really looking for both the hybrid cloud story as well as a multi call story. I mean, this is something that Pat spend quite a bit of time talking to you on the Mondays keynote. We see customers clearly. Many of them have very large existing footprints on premises and edges again as a growing segment off their infrastructure. It's also getting very significant, making very significant investment over there. And of course, the public cloud itself. So we see many customer really trying to straddle the combination off the private cloud, the public cloud and the edge side, and our strategy is really we want to have a consistent infrastructure that's running everywhere, so therefore we have a consistent operational model that enables the customer and their advance to be to do that. >> Yeah, In some ways, it reminds me back. You know, in the early days when I worked with VM where every group had some application they'd built and you know which server they bought, you know, you know, they would run VM. We're underneath that because it would help with the efficiency in there. So in some ways, is multi cloud similar to what we had in multi vendor back in the day, >> I mean, we think of, you know, you think about the first it oration. Of'em were right. We're really thinking about We're taking the hype, the hyper visor, and making all the hardware underneath that to be really invisible right you're using, You're dealing with a high. You're doing the hyper visor and really hide it a head virginity off. What's underneath that? And then we talk about our STD Sierra, which is really focusing software defined data center were virtualized not only compute, but also storage and network as well and really hide in the head Virginity for that. And so the third iteration flies really looking at the cloud as the next level off you know, different instructor comes from money again. We want to go to hide that and offer consistent operational model there. >> So from the customer perspective, back in the day when Vienna, where was new It was new and scary for a lot of customers. And we had we saw that with cloud as well. So 10 years ago, Cloud was evil and wrong, and we should never use it. Customers have moved on in both of those cases Have we have We reached the point now where cloud is just Yes, it's accepted and we're going to be doing it. Are we? Are we going to have another battle about whether hybrid or multi cloud or customers just moved past that and are now looking at? We know what we want to use this for, so we know that we need to choose it. We're not gonna be moving everything to the cloud, but we're not gonna be putting everything in V EMS either. We're going to choose what is the right solution for the for the different views. Guys, >> I think over the last court, a couple of years that has become sort of the defective standard people comfortable with the cloud people comfortable with on premises. They know that it's gonna be hybrid cloud world. It's gonna be a multi cloud world. >> So Varun, we talked about the VM War cloud on Delhi M C. We had a number of conversations back. Adelle Technologies World. You know, earlier this year when you look out in the general market place, they're like, Oh, I look at the family. Well, Della's the hardware Veum. Where's the software? There are a lot of announcements this week that we're the cross pollination of pieces, and a lot of those are software pieces from the Dell family that tie into what's happening on VCF and the like. So bring us the update. >> Mr Was, as June said, both Daddy M. C and V M were incredibly customer driven companies, right? So what we've been hearing from customers is one. They're really excited about being able to try out the Ember cloud and a GMC, so we're very, very happy to be working with the hammer to bring this to market first. So that's something that that our customers have been asking us for. But then, along with that, as customers start understanding the model of the fully manage data. So you know the fully manage infrastructure you can. The next question that customers have is okay. I can now focus on higher value added service is And one of the things that immediately comes up next is okay. What about my data out? We're protected, right? I'm gonna be running applications on this. And we've already spoken on this show many times before. Data is increasingly one off our organization's most valuable assets. It's a competitive differentiator. Bc news, Every day, if it falls in the wrong hands, what happens? Right? So what we've been doing now, in addition to the three amazing amount of work that we've been doing the June's team to bring this to market, they've also been working on the data protection side. So now the deli emcee data protection is now validated to be working on Williams of you, MacLeod and DMC as the data protection solution. So this means that customers can not only take advantage of the the integration that we have on the infrastructure earlier. You can also take advantage of just have the peace of mind that our industry leading data protection solutions Will will be there to help them manage the data and protect their data. >> So it sounds like it's something that you don't have to think about it as an afterthought, which is often the challenge with data protection. If you if you wait to think about it, it never happens. So this pretty much just comes. We know it's gonna work. Turn it on Day one. Just have it. Start with your data being protected and just have that baked into the way that you run your operations so that it no longer becomes spinning up a specific backup project. Because those things that they always expensive, there's no there's no perceived value to the business of doing this, whereas if it's just now part off, this is how you run your infrastructure. So this is how you stand up via MacLeod on Delhi emcee, and this is just how you should do business. >> You know, it's absolutely like that way. What would we find? That's really exciting. What the Hammer Claw Run DMC is. Customers are asking us to deliver the cloud model right to their data centers do their edge locations, so that's how they want to consume software solutions as well. So what's amazing about the solution is you're you're doing everything to the browser. So that's how you're gonna cause you Data protection becomes an ad on service that you want to add on that. And I'm sure over time we're gonna enter the capabilities as well. But it's really that's the key part here. The ease of consumption it Sorry, The ease of use and basically being able to consume things through the browser is a game changer for for infrastructure, on data in the data center on the edge. >> So June 1 of the things that definitely has caught our attention and one of the bigger announcements this week is Tom Zoo in the con to Mission Control. That's what they call it because from going to have multiple locations, we've been looking for my entire career in I t o. You know, we're gonna have some tool that's going to manage across these environments and made a VM wear cloud, you know, on Delhi emcee. But I probably of'em were cloud on some of the public clouds, and I you might also be doing some kubernetes. That's not even with the V a more pieces, so help paint a picture is kind of where we are today and where we're going when it comes to you know that management consumption and maybe even some of the finances in getting to that cloud operating model across all my environments. >> Yeah, tonsil Vincenzo is a kind of follow. Your name for a number of products was in that tons of mission control, of course, is one part of that. The way we view Content Zoo is that this is really a multi called platform. We understand that customers of developers in particular, wanted to use consume, consume carbon eighties cluster and the often they want to choose communities. Cluster based on different cloud for variety reasons, sometimes cause something's resiliency, sometimes just geographical availability. And then there needs the way to be able to see this in the consolidated fashion. And that's what tons of mission control does. And that's when I showcase yesterday the keynote to really show that you can now have a single pane glass to be able to see all of these clusters across multiple clouds and and then be able to, you know, do some troubleshooting and so forth making things much easier that, of course, buildup Holly policies on top of these clusters and then welcome propagated changes and making sure those in force. So those are some really, really, I think, really good operational capabilities that really simplifies the data. The operational cut, you know, kind of the task that operator has to do its part of the >> driver for this, that that enterprises who got this investment in v sphere. So they've spent 10 years of 10 more years investing in envy sphere. And then all of a sudden, you've got these cloud people who want to come and do things in a completely different way. So now, as a business, I either I have to make a choice of what do I invest a lot of money in both of these things? Do I move everything to one model? It sounds like you're actually trying to provide customers with away. That's a look. You've already made these investments and you don't have to throw them all away. You can still operate things here, but you can also have these cloud things without having to move everything off into a completely different operating model. Is that fairly >> accurate. So I think we're very customer driven by We want to deliver what customer wants to. It wants to be able to consume S o. You know, That's why you know, part of the reason we're so excited about a Project Pacific on top of the V sphere side is really customer has made a huge investment on the visa for platform. And we've got 500,000 customers out there and tons of customers does. He becomes their standard in the data center and that you now have a kubernetes coming in and containers coming in and we don't want a customer. Have to do a siloed platform for it. And by embedding communities directly into V's for yourself, we have now made V's fear The platform for containers and for VMC Sport was well, so that investment customer has made on the on the VCR side. Now kind of moves out to people to cover the communities and containers as well. And because our std see and our hybrid cloud story we're taking the same V sphere across to be a mark on the deli Emcee the Mark child on aws mbm were cloud, you know on edge and so forth. That means all this benefits that fracture. Pacific greens is now going everywhere. >> Having spoken to some clients about the experience of even managed community service is it's really, really painful for them. So being about having these of use of these fear, if you could bring that to group in a visa and have that is a manage service, I'm sure you'll make a lot of people very happy. >> That's that's why we're so excited about it. >> Do you want to click one level further on the product Pacific stuff? Because the thing that struck me at first it's like, Wait, you know, containers and communities That's gonna be the cloud and being, you know, feast fear. We want to modernize it. But you know, that's not what I want to put in the public cloud. But Product Pacific. Is this primarily a data center offering? If I'm doing via more cloud in a public cloud to expect to be leveraging the native public cloud and then tan to helps me manage across them? Is that how we think of them? Or am I not getting the full story? >> So I think a little bit about you think about. There's 111 track is you can do is all these fear based clouds, right? These fear based on premise the sphere based on dahlia MSI ve sphere based on top of you know, public cloud right, That's one track if you follow that track than Project Pacific essentially allows you to be able to run both kubernetes and virtual machines on a single platform. Now, if customers also wanted to be able to run a native cloud, then this is what kind of bring tons of mission control in, because that's a multi called story. So that was kind of what paddle trying explain at the keynote in terms of hybrid cloud versus the versus the multi cloud. >> Okay, so you don't actually have to make a choice of one way of saying things, the tyranny of the single glass of pain. I have to make choices and you can't have a lot of things. And if there's one thing enterprises, height is that that's dedicating themselves to just one way of doing things, they like to have choice. >> We want to give them choices. Well, >> s O. B. Having that ability to be able to make those choices and have it be an end decision instead of war. I think that's >> so one of the questions we've gotten from customers this week is you know, your partners he had VM wear have just made a lot of acquisitions. It's a lot of integration work that needs to get it done. Their bills got strong experience in these things. That sit on top of the stack gives a little bit of what we should see going forward on your planet. >> I mean, I think if there's anything that's that's apparent this week, is that being there and L Technologies are just getting started. I mean, even as a having having known a little bit about some of these announcements, it was just so exciting to see all that stuff come Rio. And we're very, very excited to continue to work with the, um, where to bring. You know, Tan Xue. The various components attends a more Cooper container stuff as well, as well as other other capabilities that we saw in you realize orchestrator and automation. We want to bring that to our customers in an integrated fashion so that it's easy for them to deploy just easy for them to use. And so I think what you're seeing here is just the start. >> That sounds fantastic. Yeah. So all of this investment that women there were saying from from the M wear and from Delhi and see like our customers going to see the payoff immediately, like tomorrow. Or we're going to have to wait. Another wait for some of these investments and integration is to pay off. How long are we going away? >> You think a lot of this is coming to fruition already? We announced availability. Of'em were called on Dahlia emcee at B M World. So it's ready for customer to purchase today, right? If a customer wanted Thio, you know much like what I demolition at the keynote. If a customer has a data center, they want to stood up wherever they need to be taken, literally place, order and be able to get that right. So that's the benefit they can have immediately. And of course, a lot of the longer term things have been talking about by layering additional capabilities. When Project Pacific comes into for a shin, this becomes available, you know, across the veer mark Wild and tell'em see products as well. I mean, these things will all kind of continuous snowballing as we go forward. But there's immediate benefit today and they'll be ongoing benefit as we go forward, making additional investment. >> Excellent. I don't have to wait forever. >> Yes, yes, it's about instant gratification. That's the trick. Now >> what? Wonder if you could speak to kind of changing application portfolio. His customers are modernizing, Going cloud native on that, what's the impact on your platforms and what are you seeing and hearing from customers? >> You know, uh, there is obviously a lot of interest in containers, and customers are either already trying it out or having some sort of applications that her back is there or they have or they're looking at it and saying, This seems really interesting. In some ways, it seems very, very similar to what What I saw from customers five years ago when people were saying, I'm gonna move everything to the public club and, you know, sometimes you hear a little bit of I'm gonna move everything to containers. I think what we will likely see over the next few years is a little bit of rationalization, just like we saw with public and private, is that it's both. I think we will continue to see sort of traditional applications and new applications live in more off of'em centric model. And I think there will be as their new applications being built or as I squeeze package of their applications to be more container friendly. We'll see some go that way. I you know, if anything, I've learned it is One thing I've learned in the I T industry in all these years is there really isn't a one size fits all solution. We get very excited about things, >> and we're like, Oh, >> everybody's going to do this But the reality is, things balanced themselves out and into June's point as a vendor. What we want to do is we want to give our customers choice. But we know that there's no one size fits all, and we want them to choose what's right for their business and help them achieved their goals. >> So, June last question I have for you. Congratulations on the keynote yesterday way Heard way. No, a lot of the inside work and, you know, heard like the guy that swim across the English Channel like that got added to the agenda, you know, like days beforehand flew way. Understand? What happened with demos and last minute gives a little bit is to kind of the making of the team that helped put that together. You know anything that you know, you were super excited. That actually made the final stage that you might not have thought would've gotten there, >> you know, we started out was we were very ambitious, right? And we put in 15 or 16 demos into it. And as we started putting things together, time was our biggest enemy, you know? You know our friend Joe, who is, you know, running the day to show he was telling me you are 30 seconds over on this particular done, though you are 45 seconds on the other day. You give yourself credit here. I'm trying to tell the story here. So, unfortunately, we actually had to cut some demos out just because he couldn't fit into the scope of time. We want to make sure the story really comes out and the customer really understood what we're trying to show. I mean, I'm just so excited as part of the, you know, me doing the key day to keynote. I actually learned about a bunch of products I wasn't that familiar with. And so I was like, Wow, I didn't even know were doing that. And so just to see the amount of capabilities that we're bringing to bear, it's pretty astonishing and it's it's exciting. >> June, I'll say It reminds me of other cloud shows where there's so much going on so much new products getting launched that no single person can keep up with that. But thank you, June and Vern for helping our audience learn a little bit more about the areas that you're doing with >> my pleasure. >> Thank you for having us. >> Justin Warren. I'm still Minuteman back with more coverage at VM World 2019. Thank you for watching the Cube

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back, everyone. Day three Q coverage here in San Francisco for V emerald. 2019. I'm just for a student, Um, in here with David Lan. Take days free kick off. We have two sets wall to wall coverage. Guys, this is the time where we get to take a deep breath two days under our belts look and reflect on all the news we've covered in a dark to last analysis sessions but also kind of riff on. We got two nights in hallway conversations we learned a lot of the party means do. I learned a lot last night. Dave. I know you. You learned a lots, do you, Thomas? When things that the chatter Certainly twittersphere hashtag the emerald. A lot of action on there, but it's the hallway conversations. It's the party that people have a few cocktails in them day that you start to hear the truth. The real deal comes out, >> No doubt. And and again Jon Stewart, there's real concern over from the from the practitioners we talked to about this acquisition spree. Are they going to be integrated? Are they going to just throw all this stuff at us and keep jamming products and service is down our throats? Or is this going to be a coherent set of solutions that solves our problem? We also had a little little interesting side conversation about, you know, Snowflake, Frank's lumens new company and how basically Frank is bringing back the Pirates from Data Domain and from service. Now Mike Scarpelli is over there. He's a rock star. CFO Beth White is eventually is back over there. And Frank's Lupin. He's the guy who takes companies from, you know, 100 million to a billion, so that's gonna be >> very serious money making him going on there. >> We have been following his career for a number of years now. We watched him take data domain. We watched him pull that that rabbit out of his hat with the sale with net app, and then the emcee swooped in. And then we saw what he did service. Now we've documented this is an individual to watch, you know, >> he's a world class management team member I mean, he's executes. >> Oh, yeah, no doubt. And >> he has >> a formula that's been proven and in time and time again. And to me, the biggest testament salute Min is the success of the continued success of Data Domain. After he left Hey, he really helped clean up the emcees data protection mess. Um, and then the second thing is, look at service now is performance after he left, I haven't missed a beat. And, yeah, John Donahoe, great executive and all, but it's because Frank's Lubin had everything in place and that was a really well run >> dry. And they got a nice little oracle like business model. >> Yeah. No, you're right. They kind of, you know, the big complaint now as well. Your price is too high that Oracle. >> What have you learned? What you hear in the hallways? I mean, a lot of chatter. >> Yes, John, we We've been reflecting back a lot. It's 10 years in 10th year of the Cube here and back here in San Francisco. The new Mosconi, our third show that I've been at this year in Mosconi and we always track year to year. But since it's been what 45 years since we were here for VM World. When I talked to the average vendor. When I talk to you know, the analysts here were like, Oh, thank goodness we're not in Vegas. When I talked to the average attendee, they're like, Oh my God, what happened to San Francisco since last time we were here? It is too expensive. And the experience walking around San Francisco has really not nearly as nice as it might have been five or 10 years ago. And many of them we were talking to, Ah, woman that runs an event that has been Vegas in San Francisco. And she said, Oh, we did in San Francisco and got tremendous feedback. Don't do it there again. Brings back to Vegas both for costs and the enjoyment of being around the environment. >> Where was a shit show here in San Francisco is horrible right now, I got to say to your right eye was walking this morning from my hotel. Literally. A homeless person passed out the middle of the sidewalk. Um, your smells like urine. It's P, and it's It's just I mean, it's really bad this tense now. I mean City of San Francisco is gonna do some. Mosconi, by the way, has been rebuilt. Awesome. So, you know, in terms of the new Mosconi stew, that's a serious upgrade. Hotel rooms are scarce and just the homeless problem. It's just ridiculous. I don't know what they're >> doing. So one of the other big things when I was reflecting coming into here two years ago when VM wear really started down right before the war on AWS announcement, they made a big announcement. IBM because they had sold off the cloud air toe Oh, VH And for two years Oh, VH was a big partner, Talked about that transition, said we handed off this great asset over h isn't here at the show. I was like, Oh, my gosh, you know, that was, you know, such a big story and other companies like New >> 12. That's good. One lets someone who's not at the show and why. Yeah, oh, VH wired to hear >> They aren't here because, well, they've got customers. More of them are in Europe That was supposed to be a big entry into the United States. Obviously, it wasn't as valuable for them to be here, even though I'm sure they're still part of that service provider ecosystem. They have other big one for us, and we've had on the Cube Nutanix. You know, we've had Dheeraj Pandey. First time we had him on was that this show is still the majority of Nutanix. Customers are VM where customers I've talked to lots of Nutanix customers at the event, even part of the analyst event. Some of the customers I talked to were like, Oh, yeah, my hardware stacks Nutanix and amusing NSX. And I'm using other things there. But they are not here. They're not allowed to be at the show. And I >> mean, they were blatantly told they can't come. >> They can't come here. They can't come to the regional things. They can't do the partner things. So that that that relationship is definitely >> from red hat. What kind of presence have you seen from Red s? >> So their number companies like red Hat that they're kept at a lower level of sponsorship. So they're here. They participate, you know. Open shift, of course, is you know, big enemy for cloud native. Lots of open shift runs on V sphere. So many of those companies that are part of the ecosystem, but not the ones that they want to celebrate and put front and forward. So it's always interesting kind of walk around on those. Even Microsoft is an interesting relationship for, you know, decades with the M wear. You know, of course, azure they partner with. But hyper V was long a competitors. So, you know, we understand those competitive relationships >> could be interesting. Stew and Dave on the ecosystem Jerry Chan Day when we just doing my interview yesterday on the other set mentioned that the ecosystem reinvents itself the community. The question now is with Delhi emceeing Del Technologies obviously heard Michael Dell essentially laying out his plan, which is he's got. He's trying to keep people distracted, but the bottom line is going to top people putting together the cloud right well service provider model. So you know, that's what he's gonna be a big impact. VM wear the crown jewel of Del Technologies certainly is looking more and more like It's >> well and yesterday remember the first VM world we did in 2010? It was It was del I mean course and see only the time Who's Del? It was H p Yes, the emcee was there, but it was net app. I mean, everybody could've had equal standing yesterday at the keynotes. It was Project Dimension of V M, where cloud on Delhi emcee and long keynotes >> data protection into the VM were >> also it's It's all very heavily, you know, Jeff Clarke has his his thumb on, you know, the the deli emcee folks pushing that through Veum where Michael is orchestrating the whole thing. Pat obviously is allowing it. I was sitting in the audience Next next, Some folks from Netapp they're like, you know, this kind of a bummer. Calvin Sito from h p e tweeted Wow how to stick it in the face of your ecosystem partners. He then later went on Facebook saying, Hey, I love this ecosystem, so sort of balancing it out because, you know, he wants to be a good, good citizen, but clearly the ecosystem partners who basically brought VM where you know, to the the position where it's in through distribution, our little ruffled. Right now you can't blame him, But at the same time, the mandate is clear. Michael Dell is driving his products and his solutions through VM were period the end. And, you know, if you don't like it, leave >> right. They had such great success with V San and VX rail in that joint product development and go to market. If they can replicate that with a number of other solutions, they get that the synergies. If >> you don't like it, don't leave. That leave is worse than that. They say you don't like it, you know, invited you. But >> how about what Pat said yesterday in the Cube about when they announced on Gwen heavily leaned into V san. He said publicly that Joe Tucci was pissed and I hate her. They were going at it so that so that shows you the change, right? I mean, so so so e m. C. When it owned VM where was very cautious about allowing Veum wears a software company to drive value somewhere Now is just acting like a software company. >> Well, I think I mean, I learned last night's do, um and you can appreciate this. I learned that the top executives of'em where are looking heavily and working hard at understanding and drive them kubernetes cloud native thing because this is not a throwaway deal. This is not a you know, far anything that they are investing. They get their top brass tech execs on kubernetes fto. Two big players job. Ada, Craig McCaw calumnies. We know interviews since day one, but I think the cloud native thing is going to be interesting. And I think it's gonna be evolution. I think there's gonna be a very dynamic road thing's gonna be a series, of course, corrections, but directionally they're all in on. They're going for it, they're not. >> And actually, I had a, you know, good discussion with Chad Attack. It's a good friend of the program now working at GM, where for the first time, but came from AMC worked at Pivotal. He said, culturally, such a gap between VM wear don't have to touch your app, you know, move everything along lifted shift is nice and easy versus pivotal, you know must go completely You know, dual programming, you know, agile everything there, so bridging those because there's multiple paths and the rail pharaoh announcement is that would be cloud native stuff that won't necessarily go to the EMS. We're going to retool V EMS to now be a platform for kubernetes so that they have a few passed to bridge or to build towards the future. Here's the >> answer strategy. Discussion That and Rayo Farrell was now running Cloud native. Think this is just really >> ties in the interesting discussion that I had with some folks was that you've essentially got well, Jerry Chen brought this up last time we had him on it and reinventing because >> we have >> a conversation all the time about this Amazon have to go up the stack. And Jerry Chen made a really he said, Look, it they're not They're not gonna become an e r peace offer company. What they're gonna do is give tools to the builders so that they can disrupt Europea. They can disrupt service. Now they can disrupt Oracle. That's their strategy, at least for now. Okay, so what does that say? I think the strategy discussion inside of'em were and and l is about by whatever clouds gonna be 35 to 50% of the market. Fine. And the cloud native abs. Great. But you got this mission critical. E r p is an example. Database saps that are on Prem. What we have to do is keep them there. So we're going to sell to the incumbents and we're going to give them cloud native tools, toe modernize. Those APS have build new acts on Prem, and that's the that is the collision course that's coming. So the big question is, can the cloud native guys and AWS disrupt that >> huge? I've always said I'm is on and like the way they're coming in, a tsunami is coming in. And who's gonna build that sea wall to stop it right? And that's essentially only hope that these guys have. You look at all the competitive strategy. Was Oracle. Whoever just gotta stop it? You can't like >> the sea >> wall. That's a great building. A sea wall I was, I would say, is Is that you know, they're only hope at this point is to, you know, get in the game because see Amazon is the stack. They're not really moving up the stack. You hear that from Cisco and Dale and other people? That's where it's a game of musical chairs. Right now, the music's you know, there's still a lot of shares left, but soon chairs getting pulled away and Cisco Deli emcee VM, where they're all fighting for these big chairs. And one >> thing >> we talked about yesterday is that VM wears very directional, product driven. Otherwise they pick a direction, is a statement of direction and don't really have a lot of meat on the bone. In the product side, Sister is actually in market with service providers there in market with NETWORKINGS to this no vapor there that's installed basis and incumbent business. You have developers Esso Baton talks about suffered to find data center, suffer defined networking. I mean, come on, Really. I mean, they're getting there, but it didn't have the complete solution. Cisco >> Coming into this week, I expected here a bit more about the progress and all the customers of'em wear on AWS and feel like Vienna actually downplayed the AWS. We know what a strong partnership it is at every Amazon show we go to, and we got a lot of them Now there's a big presence there, and I can talk to customers that are starting to roll out and move there, but it felt like it was David's. You pointed out there are some messaging differences when you talk about multi cloud and how they're positioning it. So, you know, put those >> here Amazon. If your Amazon you're not happy with Microsoft Dell Technologies World The big announcement that was positioned a cloud foundation Although it wasn't a joint engineering, But the press picked it up as though the Amazon deal has been replicated with Microsoft and Google. I mean, you gotta be gotta be hurt if your Amazon >> So I've I've just been taking notes this this event, there's I've noted at least five major points of difference between a W s what they're saying and their philosophy and the anywhere so eight of us. We know they they don't talk multi cloud. They've told their partners, If you're doing joint marketing with us, you cannot say multi cloud aws that reinforce John. We saw this. Steven Schmidt said that this narrative that security is broken doesn't help the industry. Security's not broken, you know, we're doing great. The state of the nation is wonderful. Aws Matt. Not really. I agree. By the way. Uh, that's not the case. I agree with Pat saying Security's broken. It's a do over VM where wants to be the best infrastructure and developer software company. Who's the best infrastructure and software development platform. Eight of us. The M one wants to be the security cloud. Who's the security cloud? Eight of us. And then, uh, they talked about 10,000 cloud data Listeners are those really cloud data centers at Vienna. And the last one was this was a little nuanced Veum was talking about We know about migrating, modernize, lifted ship shift and then modernize The empire's not talking about modernize and then migrate. If you want to. I totally in conflict >> as a collision course. That's got Look, look, look at the data center was Look, it looks like we're going. We're going away, right to the data center. Staying. That's music to Michael Dell's VM. Where's years they live in the Data City? Do you pointed out yesterday? Data Senate goes away. So does begin. Where's business? >> One of things. I'm surprised. I'm wondering you both have talked to some of the service fighter telco pieces of'em, where they're doing that project dimension, which is the VM where stack on del that looks just like outposts on. And I know they had deployments on this for months. If I was them, you know, it's everybody's hearing about Outpost to talk about it, being more like we're already doing it in. This has you in that Amazon ecosystem. It might be a little strong for the Amazon story, but have you been hearing any about that this week? >> I think they keep a lot of cards close to the chest, but it's clear from the announces that they're doing certainly del the VM, where on Delhi Emcee Cloud or whatever it's called, it's not a cloud but their their infrastructure that is essentially a managed service. That's gonna be really strong for I t. People, because I think that the value proposition of going toe i t and saying we have this, you don't need to do anything. It's very strong, I mean, because I didn't want him >> and justified because this the project to mention it is that single, that thinner stack like what we saw on Outpost in the Amazon video, as opposed to Veum, where cloud on AWS, which is the full C i r h d. I stack. >> I haven't heard anything still on >> well, but the conversation I had from from Vienna, where standpoint, they could make money on that manage service. That's why it's the preferred partnership, right? And so that's their part of their cloud play. If you don't have a public cloud, I said this yesterday, you have to redefine Cloud and you have to get into cloud service. And that's what's happening. And that's exactly what's happening. And what I like about what V M where is doing is they are transitioning their model to a sass based model. Now it's only 12 and 1/2 percent of the revenues today. But both pivotal and carbon black are gonna add, you know, ah, $1,000,000,000 next year to that subscription based $3 billion in year two. Um, and so you know, Pat said the other day, I think we could get to 50 50. I don't necessarily think in the near term we're gonna go beyond that. It's not the Adobe >> way could be critical. Critical of'em were in some areas, but I gotta tell you their core strength that they went to a software operators on the data center friend of prices. That's been a great strategy. Focusing on their core building from there is Jerry 10 point out adding other products so their software company, So I think they're really got a good solution. And you? The data shows that people are increasing their spending, John. Just one based on >> that. Because I had a couple of really good conversation with customers, customers that would deploy VCF So they've got the full stack on there. So using H C I, but not necessarily on Dell hardware, could be Cisco Hardware. Could be HB hardware in the like or they're buying NSX. But the virtual ization team owns it, and they get kind of put in. A box storage team says That's not the array I'm used to buy. Well, maybe I'll put a pure storage box and put it in between. The networking team says I'm refreshing my Cisco hardware. You know, we're like, but we have NSX, and it's great. Well, you can use NSX over there. We're going to use a C I over here. So the term I heard from a number of customers is organizations still have hardware to find roles, and they're trying to figure out how to move to that software world. Which hurts me, cause I spent years trying to get beyond silos and helping people you know, move through those environments. And still, in 2019 it's a big challenge. That organizational shift is we know how tough that is. >> So just couple points in the data, because you're right. There are some countervailing trends, though. So, yes, people are spending Maurin VM where in the second half. But at the same time, the data shows that cloud is hurting VM wear spend. So this that's kind of gets interesting. Our containers gonna kill VM where? No, there's no evidence that container's air hurting VM where spend. But there's clearly risks there, you know, as we've talked about who's best position of multi cloud. Well, it turns out three guys with the public cloud are best positioned in multi Google and Microsoft on, and so and then the pivotal thing is interesting, and ties ties all this in so that the data is actually really interesting. It's like you're seeing tugs at both sides, and I think your your notion about the seawall is dead on. That's exactly what they're doing. >> You see that with Oracle's trying to stop jet. I just want they can't win this one to stop Amazon just on the tracks gave great data. Great reporting, Stoop. Good observations. Get all the day that night and parties we're gonna certainly keep doing that. Day three of wall to wall coverage here. You bringing to the insights and interviews here live from the Emerald Twin 19. Stay with us for more after this short break.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum, World 2019 brought to you by IBM Wear and its ecosystem partners. >> Welcome back. This is The Cube. Live at VM World, 2019 times. Too many men with my co host Justin Warren, David Dante, John Ferrier. John Wall's John Troyer. Like a certain founding fonder, Alexander Hamilton, the Cube is going non stop coverage for the three days Habito. Welcome back to our program. Two of our Cube alumni's Lynn Lucas, who is the chief marketing officer of Cohee City. And she's brought along John White, who is the chief innovation officer at Expedient. Thank you both for joining us. >> Happy to be here. Happy 10 year anniversary to the cute >> Well, thank you so much. And you know, so many people we've known over the years. Actually, the first time I met John wait was I believe in this whole, you know, at VM World, you know, talk about what's going on. Eso You know, I always love talking to the service riders because it's been going through just a massive transformation, you know, all along on you, John, you've got a different title Since the last time I interviewed you, You been involved in the strategy You and I have gone toe cloud shows together and some of the other things they're so bring us up to speed as to, you know, expedient here at the show. And, uh, what brings you here with cohesive? >> Yes. Oh, yeah, thanks to your right. But I think it's probably five or six years ago. Maybe I asked too. You said, Hey, what do you know about the service provider community? Cause I wanted to kind of educate you because it was something that's been fairly new and expedience been in that industry for a long time. We were mainly in infrastructure of the service provider, man. The service providers are rounding on all that I t. Stuff that people need and ah, this VM world is a huge one for us. Last year we launched Enterprise Cloud, which is a product based on VM. Where's full softer to find stack And that was something we wanted to go to market with to give an alternative people, When you say Hey, I need to go to the cloud and you realize that okay. I really can't just take my APS and lift and shift and go there. There's another place for you that's a little a little more familiar. And as we see 20,000 people know VM were obviously that air here. So that's usually what what's usually happening in the Enterprise. So we're talking with those folks, and so we would launch that platform. We thought about everything differently. We were running virtualization since, 06 of seven, and we wanted to change everything back up platforms as well as needing things like scale out now, as were necessity at that point. So this VM worlds are coming out because we had, ah, release that last year. And now we have a lot of good customers to talk about on that platform. 12 months later. >> Yeah, well, Lynn, first of all, congratulations because, you know, I know John sits on customer counsels for some of these events. I've dug into a bunch of the networking pieces with him and actually was, you know, we spent a bunch of years. We went to a bunch of shows together and he was looking at the some of the various vendors and a bunch of the new startups and cohesive E is the one that you know really stepped up provided the solution that he was looking for. So it's been interesting to hear service fighters. You were usually the first ones that companies were talking to. But bring brings the cohesive story there. >> Yeah, and so were a super pleased and honored to have expedient working with Cohee City. And John has been instrumental in really providing a lot of direction to us on what his needs are and how to make the product even better for for him and the service provider community, it's a huge part of our go to market strategy. We believe that with the massive growth in the interest in hybrid and Justus John was saying, There's so many customers that really aren't equipped to deal with How do I move to ah hybrid cloud strategy, whether that before compliance reasons, whether that be geographical reasons under you've seen them all. And so this is something where we feel really thrilled to have the, um, where's cloud partner of the Year working with us and to help serve customers with the expedient enterprise Cloud platform. >> Congratulations on that team. And right when we first met five years ago Public cloud for VM wear And for most of the service bodies, it was the enemy, all right. It's like, Oh, my gosh. There, you know, you went toe Amazon reinvent and create a little bit of partnership. So give us the update on hybrid. What that means and how solutions like, Oh, he city, you know, help you provide services to your customer. >> Yeah, it's funny you mentioned. I mean, that's you would ask me, What are you doing here? What are you doing here? Because it was going out doing this research, seeing where the market was on containers on adoption of Claude practices. So we wanted to make sure that we were very open with all the different solutions that are out there. And that's been our strategy from the from the start. So building enterprise cloud was one thing we need to do to come to market with a platform like everybody else. But multi cloud is really where we have focused. And it's funny. I mean, when I when I first started coming to the M world, it was very product centric, you know, you had this product, you could do X with it. And here's the return that you would get at it. And when you're coming to the emerald now it's more about platforms. And that's really what I found most interesting with Cohee City when I first met Mohit, probably two and 1/2 3 years ago, was that he was focusing on the platform of data management. And that's really what the problem was. It wasn't now, specifically, it wasn't data protection. Specifically, it was What all can you do with that with that data management? And we're You know, we're spending a ton of time with Cohee City on. We were building multi Tennessee with them to them, be able to support that. And that's what we're delivering on now. So it's it's it's the scale out now's it's ah, data protection. And then we're taking those service is and then putting him in eight of us in azure or wherever it might be because it doesn't matter to us, because long term we want to care about the long term I t care and feeding and focus on that as our value prop instead of just actually which silo >> it lives in. Yeah, and right from the very beginning, I remember speaking to Kohei City very, very early on when it just sort of come out of stealth. And it was baked into into the product the idea of data management that it was going to be much more, much more than just data protection. So, what are you seeing now that we have a lot of years of product development has clearly gone into it since we first looked at it then. But what are you seeing? Customers using the platform for here in 2019? >> Well, we started a little bit more unique than most other customers. I think we talked about this, you know, throughout CO e city. And we actually started on a scale out now's platform s. So we have one of our clients homes dot com who? They're with us this week because they have a really interesting you. No need for this type of enterprise. Cloud there with us and they're talking about all the different benefits they received out. And they started actually with on the file side of things homes dot com, real estate, online real estate. So I think you know about how many images and how many fouls you have out there. We have 2.6 billion images right now running on the cohesive platform. That was 2.6 billion and a 30% annual growth rate. Yes. So the numbers are crazy. You can't put those on any other traditional now, as that's out there. Uh, so we used a he city first to get started there, and then the backups really were the icing on the cake. So last October, we built We started going out the Nats platform to handle those images. And if you actually go to homes dot com right now, it's being served fully out Enterprise cloud from a container and virtual machine layer and then on the back end from Cohee City. And they were using that to protect it as well. >> And I think that if I add on to that is really a testament to the, you know, the foundation that mo it built, which is a true distributed file system, Google like, in that sense. And I think correct me if I'm wrong, John. But you know, you then also saw while that benefit of a platform approach and not another silo for the backup and having co he city help solve the challenges for both files as well as data protection and then maybe one day in the future. Looking at some of the things that we're doing now that we're doing more security on running APS and things like that on the platform as that may be an extension for you, >> Yeah, that's that's definitely a big focus of our effort, the global d duplication that you get with CO he city. When you add all those files in all the different customers, we have all the different virtue machines. Ah, the ratios were hitting or just insane. And it's something we decided as a service provider that we we said, OK, this technology, we actually want to give that benefit back to the customer. And so when somebody buys data stores from us on the data production, they buy what they're actually consuming on the disk. So you could have 100 terabytes in all of your V EMS. If you only need one terabyte, that's all you're buying from us. And that's a lot of the power of that platform that we get with cohesive. >> Yeah. So, John, wanna help? They want you to help us understand the nuance of something. We're platform? Yeah. Has a little bit of new Monsanto. Little bit, a little loaded thing. GM was the platform. Cohesive is a platform. You use both of them. So just help us understand how cohesive Ian Veum wear and all those things that they go together. They're not, you know, competing against each other in as your architectural Or are they? They're >> not competing there two layers, In my opinion, where you have your primary stores really living in and the M R and secondary storage is everything else on Cohee City. Ah, what? The nice thing is, they did a lot of cool things to kind of marry the two together. Um, one of the one of the tools that we're using Aesthetic ahi city is called Instant on or instant Restore a Virtue machines so we can actually spin up a virtual machine almost instantaneously. It lives on the Coast City platform. Once it's rehydrated, then does a storage the emotion automatically into the V, m or environment. So we're able to do migration or if we had, You know, we have a bad ransomware attack and we need to restore 100 V EMS within a few minutes. We can instantly bring those back up in the cohesive platform and then move them to a production virtual environment once it's done. And that's something that we weren't able to do with our existing vendor. And that was something we needed to actually go and focus on because being in the healthcare space being in the compliance space, that's that's a big problem for us. >> Yeah, just add, I think that, um Vienna, where is clearly one of our most important partners. The very first area that mo it developed was data protection, for I am where, I would say, well north of 70 75% of our customers are protecting their Veum, where environments We have a very large customer that's protecting over 18,000 V EMS on Cohee City. So with the certifications that we have with V. C. D. And with the integrations, as you've mentioned with of you realize it's it's really it's a partnership. Andi think we're adding a lot of value to the customers that are building on V. M. where is >> very complimentary for sure. >> Yeah, it's been interesting that to see how customers choosing to go with a platform like like expedient because, as you mentioned earlier, stewed like five years ago, Cloud was the enemy. And but we're being told that on a public card is gonna take everything, and it's just gonna own all of the environment where is now? In 2019 we found that the story is actually much more complicated than that. Some of us probably believe that at the time I put my hand up is one of those that customers actually needed to live in multiple places. It's not a story of or it's a story of end, so you do need to be ableto have something which can work well with others on the same way we've got. We've got co, he's ity and V M. Where is it? Well, they're not really competing with each other. They work better together and particularly as customers scale, we find my any any kind of enterprise customer is header a genius, so you have to have solutions that give them options and that work together well with you have to play nicely with others. >> I think that's exactly right. And part of what we've done is built a software to find solution and to also give John expedient flexibility. How do you want to deploy for your customers? The solution. Is it in the, uh, the hyper scaler? Is it Hello, somewhere? Is that your own cloud? And so that's part of the advantage. I think all in one solution that then you can give your customers some flexibility as well as to how they want to consume the service as well. >> Absolutely meaning the flexibility And you mentioned software only, and are, you know, software or suffer to find that was something that was big for us. When we're looking for partnerships, we have a standardized hardware build that we want to use. And that was all built on Del. And it was something that, you know, we were able to work with obesity to get that standardized so we can continue to roll out. Excuse that we were most comfortable with. And they could just have the software layer on top. >> Yeah. So you've managed to do this successfully. You're going really well. Yeah. What's next? >> Well, um you know we have, you know, So in we ordered in October of last year. Right now we have six petabytes online enrolling. So that's that's great. You know, that's that's good to see. That's going to continue to grow at a pretty rapid rate. Data is something that obviously, we all know is never gonna shrink on. We're gonna continue to grow that with new customer acquisitions, and that's everything where we want to continue to go with this, Uh, this product specifically is on the data management side. The things that they're doing in Helios to start to get understanding and awareness in value out of that data that's sitting there is really, really important and exciting for us in the future. We deal what tonic compliance PC idea says hip. And we want to make sure that the data that we're storing inside of there will be compliant by those. So being able to write an application to see if the credit card numbers in a file or in a database by using the cozy platform that we brought us value. Same thing goes with a lot of the ransomware protection they're doing. So if you see a foul that gets encrypted, then I know. Okay, I have a problem. I better go look at that and give me a time stamped, Actually. Go on, restore from instead of actually trying toe, you know, pick around. And hopefully I find it when it before it was encrypted. So we're really excited about those opportunities is the future and seeing what data management can just bring to it. >> Well, Lynn, always a pleasure to catch up with you. Thank you so much for joining us again. And John, my friend, this is your six time on the program, actually gonna have a celebration in New England in a little over unveil for, ah, six s o right in New England. So for Justin Warren, I'm stupid him in. We love talking about sports here, and, uh, yeah, the Cuban way have the Niners and the Patriots for the team there. But as always, Thank you for watching the cue

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Hey, welcome back here and live here in Mosconi North. The Emerald 2019 Cube Live coverage on Shopping Day Volante Jr Jr. Who's here? EVP general manager, Telco and Edge of Cloud for Vienna. Where Thanks for coming on. Thanks for having me. I know you're super busy. We don't have a lot of time. Get right to it. Um five g a big part of the key. No discussion that's gonna enable a whole bunch of Pakal the pregame show pre gaming not even talk about that. Also. Telco on the Edge Computing Big part Michael Dell said, Edges the future Now these air to emerging areas for you guys. What's the positioning? What's the update? >> No, absolutely. I mean, if you look a tw telecom infrastructure. For the longest time, telcos have played a role just as pure basic connectivity providers. And with five g coming on board, they finally have an opportunity to break out of that and redefine the cloud off the future. So for us the big opportunity around five g is not just the better provisioning off like Higher Man With Service is to consumer for voice and data buy the whole set off new enterprise service is that can be provided on top of this five g network. And in order to be able to do that, you really need to go in with a virtualized telco Cloud architecture. Underneath that, and so we are working with carriers globally now preparing them for five G with an architecture that's going to help them deploy. New service is faster for both their consumer as well as enterprise. >> Going to be the white knight at, so to speak. For these telcos because they've been struggling for years over the top and any kind of differentiates service is even in the network layer. Exactly. I've had tons of rack and stack machine, so they're after their well, well stacked up in terms of computer storage. Also connectivity to the edge. That's the back hall. So you have back haul, which is connectivity. Companies that have massive expertise in scale but fumbling in operational cloud natives that >> by not just that, but I also think that having the idea off on application platform that allows them to go and deploy service is faster and then decide whether they're just going to play at the network connectivity level or at the application tear or a full SAS tear. These are all options that are open to them now with this notion off. Telco five G coupled with an NFI and cloud telco cloud infrastructure. Underneath that and never before have they had this option to doing that. And this is now open to them >> and the cloud native is there greenfield for AP supporter having applications on top of it. Exact icing on the cake, right? >> Exactly, Exactly. And so they're all looking at core architectures and then, potentially, their radio architectures now all being opened up toe deploying new service is that are much faster to provisions and then extending that to EJ and >> five G's deploying. So we know it's out there. So it is pre game is Pat, Guzman said. You know, not even an inning Yet in the metaphor of baseball innings, I >> gotta ask you get my phone. That's not that's fake ill. I know it >> did that with four g to >> skeptic e stands for evolution, which is coming soon. >> That's vaporware for tell Coke language. The surface area is going to radically get bigger with this capability. Yeah, security's gonna be baked in. This is the number one concern for io ti. And more importantly, industrial I ot We've been reporting on silicon angle dot com. This is a national security issue because we're under cyber attacks. Town's getting locked out with ransomware critical infrastructure exposed. We're free country, and I want to be free. We don't lock down. So you have security built into this new promiscuous landscape that is called the coyote Edge. Because you wanna have no perimeter. You want the benefits of cloud. But one whole malware is in there. One take over physical device could cost lives. >> Yeah, there's a big concern. Yeah. What's your thoughts? Yeah, No. So I think there >> are two ways of looking at it. One is the way you looked at it in terms of the security perimeter expanding and then us making sure that we have the right level off infrastructure security baked in to enable this to be an easier, manageable security architecture. This is sort of the pitch you heard from Mia Mary, even in the context of our acquisition of carbon black and how we're thinking about baking security into the infrastructure, the other way of looking at this is if you think about some of the concerns around providers off telecom infrastructure today and how there might be or might not be security back doors. This is happening in today's hardware infrastructure. Okay, so in fact, I would argue that a sick software defined architecture, er, actually ends up providing you greater levels of security. Because what you now have is the option off running all of these network functions as secured as software workloads in a policy envelope that you can introspect. And then you can decide what kind of security you want to deploy on what kind of workload. >> That's an innovative approach. But it doesn't change much, really, from an infrastructure standpoint, does it? Or does it? >> No, it does, >> because now, instead of having a hardware box where you have to worry, I mean, if it's a close, hard red box and you don't quite know what is happening there, the question is, is that more secure than a infrastructure radio running the software that you can actually introspect. I would argue that the software defined approach is more secure than having a hardware box that you don't know. >> I would buy the premise that certainly we know that supply chain concerned. You know the speculation Super Micro, which never was proved. >> It doesn't matter who the vendor is or what the country is. It really is a concern in terms of not being able to introspect what has happened Going inside >> for my tea shop. I'm running VM where operating I want developers. So now you're going to tell Coz you revitalize their business model? They had a rule out appy. Now what did you see? That connecting is gonna be connective tissue between >> I'll think about it. I didn't feel goto a telco. We look at really three stakeholders in there. One is I t the second Is there be to be or enterprise facing business and then the 3rd 1 is their core and access network or the CTO. We're now have a value proposition of having a uniform architecture across all three stakeholders with the uniform ability to create applications and drop it on top of each of these infrastructures with the ability to manage and secure these again in a uniform way, not just that, but also make this work well with other cloud infrastructures private, hyper scale, public as well as EJ. >> That's table stakes. You have to do that. These jokers have to operate whatever >> well it is, But it's not. I mean, if you think about what the infrastructure off a tailcoat today is, it's far from that, because it's it's sort of a closed environment. You can't access anything from a telco environment in order to go build an application to it, and it does not resemble anything like any club >> you could enable Telco. Just I'm just kind of thinking connecting the dots here real time in the Cube. If I'm a telco, hell, I'll take that VM wear on a deli and see model. Make me a cloud and I'll sell Cloud Service is to markets that kind of >> it is. Actually it's a very important part of our business model because most telcos would not move their own infrastructure from a network standpoint onto a public cloud. But they are eagerly awaiting the ability to operate their own network as a cloud, and if they can have somebody manage that for them, then that is very much within the >> you're enabling. An increase in the number of cloud service provides potentially the paint on the makeup of the telco tier one tier two tier three size. Pretty much >> potentially. I mean, it's taking an existing operator and having them operate in a more agile way and potentially increasing anew form off a cloud service >> provided telcos wouldn't move into the public cloud because of they want to control. And the cost is that right or it's >> mostly control. It's not about cost. It's about taking What is your sort of coordinating for, ah, packet corps or for a radio network? Yeah, and there is also an angle around competition, I think telcos our what in about the Amazons of the world and the azure eyes of the world potentially becoming a service provided >> themselves. And that's what I wanted to ask you about the business impact of all this discussion you guys were having is, you know, the cost for bits coming down. The amount of data is increasing faster. You got over the top providers just, you know, picking off the telcos. Telcos can't compete their infrastructures of so hardened. Will this all change that? >> Absolutely So. I think that it has the potential to changing all that. I don't think all the telcos will take advantage of it. Some off them might end up being more traditional and sort of sticking to where they were. But for those that are willing to make the leap, I mean, as an example, Vodafone is a customer that has actually gone in with this architecture with us. A. T and T is working with us with the Vela Cloud software from via Mary bringing a new form off branch computer branch connectivity through SD man. So these are all examples of telcos that are actually leading the >> charter. But if they don't lean in, they have this vision there either. Well, it's either because they're protected by their local government or they're going to go out of business. No, I would >> agree. I mean, it's sort of silly from our standpoint to be talking about five G and not thinking about this as the architecture for five, right? I mean, if you only focus on radio waves and your wireless network that's like a part of the problem, but you really need to have the ability to deploy these agile service's. Otherwise, you could get killed by >> the O. T. T. So how do you compete against the competition? What's the business plan that you have? C. Five G? We see that in the horizon that's evolving its evolution, so to speak. Pun intended on edge is certainly very relevant for enterprises, whether it's manufacturing or industrial or just people. Yeah, >> I'd say there are two things. One is a CZ. I'm sure you heard from folks at GM, where our vision is this notion of any any anywhere. We've talked about any cloud at any application that any device. So that becomes one of the strongest different chaining factors in terms of what V Amir can bring. Tow any of our customers compared to the competition, right? Nobody can actually make it really across these dimensions. If you then take that architecture and use that to deploy a telco cloud, we're now making investments that are telco specific that allow the tailcoat than take this and make the most out of it. As an example, we're investing in open stack we're investing in container ization. We just bought a company called Johanna and Johanna essentially allows the operator to go and provide metrics from their radio access networks. Use at that to train a learning engine and then feed that back so that the operator can tune their network to get like fewer dropped calls in the region. So if you combined technology like that with this, any cloud infrastructure that we have underneath that that's the best in class deployment methodology for any. Tell Cho to deploy >> five. Your business model metrics for you internally is get Maur deployments. What stage of development five G certainly is in a certain stage, but you know, edges there. Where is the Progress bar? If you're the kind of oh, >> it's actually mold phenomenally. I mean, every time we have conversations like this, we're moving about further in terms off. How many carriers are deploying on via mare on a telco cloud Architecture? How many subscribers are basically being serviced by an architectural like this? And then how many network functions are being deployed? Two of'em air architecture. So we are over 100 carriers now we are over. We have about 800 million subscribers, or so that about globally are being serviced by a V M Air supported network. On then, we have essentially over 120 network functions that >> are operating on top of you. Usually bring in all the same stuff that's announced that the show that stuff's gonna fold into the operating platform or Joe Chuckles have different requirements. Off course. It's >> both. We take the best of what is there from the sort of overall vehement factory and then as a team. My team then builds other widgets on top that are telco specific. >> How big is your your tam up Terry for you? >> Well, so the best way to look at it as telcos globally spend about a trillion dollars in capital investment and then probably to X that in terms of their operating expenditure over the course off all of the things that they do right? And out of that, I would say probably a tent off that. So if you take about $100 billion opportunity, opens itself up toe infrastructure investment in terms off the kinds of things that we're talking about now, they're not gonna move from like 0 200 of course. So if you take some period of time, I would say good subset off that $100 billion opportunity is gonna open itself up >> to it. This kind of business cases, eliminating that two x factor, at least reducing it. Is that exactly? That's not just that Service is that's, >> ah, cost reduction alternative. But then you have the ability to go deploy. Service is faster, so it's really a combination off both sort of carrot and the stick, right? I mean, the character here is the ability to go monetize More new service is with five G faster. The stick is that if you don't do it, Ortiz will get there faster and your costs off. Deploying your simple service is will increase his >> telcos, in your opinion, have what they have to do to get the DNA chops to actually be able to compete with the over to top OT T providers and be more agile. I mean, it's obviously sort of new skills that they have to bring in a new talent. Yeah, >> well, first and foremost, they need toe get to a point where their infrastructure is agile and they get into a business model off knowing how to monetize that agile infrastructure. So, for example, they could offer network as a service on a consume as you go basis. They could offer a platform as a service on top off that network in order for or titties to go build applications so they can do Rev shares with the forties. Or they could have offer. Full service is where they could go in and say, We are the conferencing provider for videoconferencing for enterprises. I mean, these are all models that >> the great conversation love to do. Your Palo Alto? Yes. Have you in our studio want to do more of a deep dive? We love the serious, super provocative, and it's important Final question for you. Though Pat Sr here on the Cube, lay asked him, Look back in the past 10 years. Yeah, look back in the next 10 years. What waves should everyone be riding? He said three things that working security and kubernetes humans being number one actually promoting convinced everyone for the ride, for obvious reasons, clouded. I get that, but networking Yeah, that's your world. That's changing. Which which events do you go to where you meet your audience out there in the telco because networking is a telco fundamental thing. Sure moving packets around. This is a big thing, >> eh? So far, operator networking related stuff, I would say. I mean the biggest shows that for us would be Mobile World Congress as an example, right? It's where many operators are. But I would also say that when we do our own events like this is the ember. But the movie forums in in Asia packers an example. A lot of the telco conversations I find they are best done one on one before. Yeah, the forums are our forums, but we will goto have one on one conversations or small group conversations >> with our telco customers. Locals Shakaar Thanks for spending. You get a hard stop. Very busy. >> Thank you. Thanks for having me >> here, Sugar Yaar, Who's here inside the Cube bringing down five G, which is still pregame. A few winning something first thing is gonna come up soon, but edges super hot. A lot of telco customers be back with more live coverage of the emerald after this short break

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.