>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Hello, everybody. Welcome to Von 2022, the live version. Yes, we're finally back live. Last time we did Von was 2019 live. Of course we did two subsequent years, uh, virtual. My name is Dave Valante and we've got two days of wall to wall coverage of VEON. As usual Veeam has brought together a number of customers, but it's really doing something different this year. Like many, uh, companies that you see, they have a big hybrid event. It's close to 40,000 people online and that's sort of driving the actual program where the content is actually different for the, the, the virtual viewers versus the onsite onsite. There's the, the V I P event going on, they got the keynotes. VM is a company who's a ancy occurred during the, the VMware rise. They brought in a new way of doing data protection. They didn't use agents. They, they protected at the hypervisor level. >>That changed the way that people did things. They're now doing it again in cloud, in SAS, in containers and ransomware. And so we're gonna dig into that. My cohost is Dave Nicholson this week, and we've got a special guest Zs Carava who is the principal at ZK research. He's an extraordinary analyst Zs. Great to see you, David. Thanks for coming out. Absolutely good to see you Beon. Great to be here. Yeah, we've done. Von act, live things have changed so dramatically. Uh, I mean the focus ransomware, it's now a whole new Tam, uh, the adjacency to security data protection. It's just a Zs. It's a whole new ballgame, isn't it? >>Well, it is. And, and in fact, um, during the keynote, they, they mentioned that they've, they're now tied at number one in, for, you know, back of a recovery, which is, I think it's safe to say Veeam. Does that really well? >>I think from a that's tied with Dell. Yes. Right. They didn't, I don't think they met Dell as >>Keto. And, uh, but I, you know, they've been rising Dell, EMC's been falling. And so I think >>It's somebody said 10 points that Dell lost and sharing the I data. >>It's not a big surprise. I mean, they haven't really invested a whole lot, >>I think anyway, >>Anyways, but I think from a Veeam perspective, the question is now that they've kind of hit that number one spot or close to it, what do they do next? This company, they mentioned, I was talking the CTO yesterday. You mentioned they're holding X bite of customer data. That is a lot of data. Right. And so they, they do back recovery really well. They do it arguably better than anybody. And so how do they take that data and then move into other adjacent markets to go create, not just a back recovery company, but a true data management platform company that has relevancy in cyber and analytics and artificial intelligence and data warehousing. Right? All those other areas I think are, are really open territory for this company right now. >>You know, Dave, you were a CTO at, at EMC when you, when you saw a lot of the acquisitions that the company made, uh, you, you know, they really never had a singular focus on data protection. They had a big data protection business, but that's the differentiator with Veeam. That's all it does. And you see that shine through from a, from a CTO's perspective. How do you see this market changing, evolving? And what's your sense as to how Vema is doing here? >>I think a lot of it's being driven by kind of, uh, unfortunately evil genius, uh, out in the market space. Yeah. I know we're gonna be hearing a lot about ransomware, uh, a lot about some concepts that we didn't really talk about outside of maybe the defense industry, air gaping, logical air gaping, um, Zs, you mentioned, you know, this, this, this question of what do you do when you have so many petabytes of data under management exabytes now exabytes, I'm sorry. Yeah, I see there I'm I'm already falling behind. One thing you could do is you could encrypt it all and then ask for Bitcoin in exchange for access to that data. >>Yes. That is what happens a >>Lot of them. So we're, we're getting, we're getting so much of the evil genius stuff headed our way. You start, you start thinking in those ways, but yet to, to your point, uh, dedicated backup products, don't address the scale and scope and variety of threats, not just from operational, uh, uh, you know, mishaps, uh, but now from so many bad actors coming in from the outside, it it's a whole new world. >>See us as analysts. We get inundated with ransomware solutions. Everybody's talking about it across the spectrum. The thing that interested me about what's happening here at VEON is they're, they're sort of trotting out this study that they do Veeam does some serious research, you know, thousands of customers that got hit by ransomware that they dug into. And then a, a larger study of all companies, many of whom didn't realize or said they hadn't been hit by ransomware, but they're really trying to inject thought leadership into the equation. You saw some of that in the analyst session this morning, it's now public. Uh, so we could talk about it. What were your thoughts on that data? >>Yeah, that was, uh, really fascinating data cuz it shows the ransomware industry, the response to it is largely reactive, right? We wait to get breach. We wait to, to uh, to get held at ransom I suppose. And then we, a lot of companies paid out. In fact, I thought there's one hospital in Florida, they're buying lots and lots of Bitcoin simply to pay out ransomware attacks. They didn't even really argue with them. They just pay it out. And I think Veeam's trying to change that mentality a little bit. You know, if you have the right strategy in place to be more preventative, you can do that. You can protect your data and then restore it right when you want to. So you don't have to be in that big bucket of companies that frankly pay and actually don't get their data back. Right. >>And like a third, I think roughly >>It's shocking amount of companies that get hit by that. And for a lot of companies, that's the end of their business. >>You know, a lot of the recovery process is manual is again a technologist. You understand that that's not the ideal way to go. In fact, it's probably a, a way to fail. >>Well, recovery's always the problem when I was in corporate, it used to joke that we were the best at backup, terrible at recovery. Well, you know, that's not atypical. >>My Fred Fred Moore, who was the vice president of strategy at a company called storage tech storage technology, corpor of storage tech. He had a great, uh, saying, he said, backup is one thing. Recovery is everything. And he started, he said that 30 years ago, but, but orchestration and automating that orchestration is, is really vital. We saw in the study, a lot of organizations are using scripts and scripts are fragile here they break. Right? >>Yeah, no, absolutely. Absolutely. Um, unfortunately the idea of the red run book on the shelf is still with us. Uh, uh, you know, scripting does not equal automation necessarily in every case, there's still gonna be a lot of manual steps in the process. Um, but you know, what I hope we get to talk about during the next couple of days is, you know, some of the factors that go into this, we've got day zero exploits that have already been uncovered that are stockpiled, uh, and tucked away. And it's inevitable that they're gonna hit. Yeah. So whether it's a manual recovery process or some level of automation, um, if you don't have something that is air gapped and cut off from the rest of the world in a physical or logical way, you can't guarantee >>That the, the problem with manual processes and scripting is even if you can set it up today, the environment changes so fast, right? With shadow it and business units buying their own services and users storing things and you know, wherever, um, you, you can't keep up with scripts in manual. Automation must be the way and I've been, and I don't care what part of it. You work in, whether it's this area in networking, communications, whatever automation must be the way I think prior to the pandemic, I saw a lot of resistance from it pros in the area of mission. Since the pandemic, I've seen a lot of warming up to it because I think it pros, I just realized they can't do their job without it. So, so you >>Don't, you don't think that edge devices, uh, lend themselves to manual >>Recovery, no process. In fact, I think that's one of the things they didn't talk about. What's that is, is edge. Edge is gonna be huge. More, every retailer, I talk to oil and gas, company's been using it for a long time. I've, you know, manufacturing organizations are looking at edge as a way to put more data in more places to improve experiences. Cuz you're moving the data closer, but we're creating a world where the fragmentation of data, you think it's bad now just wait a couple of years until the edge is a little more, you know, uh, to life here. And I think you ain't see nothing yet. This is this world of data. Everywhere is truly becoming that. And the thing with edge is there's no one definition, edge, you got IOT edge cellular edge, campus edge, right? Um, you know, you look at hotels, they have their own edge. I talked to major league baseball, right? They have every, stadium's got its own edge server in it. So we're moving into a world. We're putting more data in more places it's more fragmented than ever. And we need better ways of managing Of securing that data. But then also being able to recover for when >>Things happen. I was having that Danny Allen, he used the term that we coined called super cloud. He used that in the analyst meeting today. And, and that's a metaphor for this new layer of cloud. That's developing to your point, whether it's on-prem in a hybrid across clouds, not just running on the cloud, but actually abstracting away the complexity of the underlying primitives and APIs. And then eventually to your point, going out to the edge, I don't know if anyone who has an aggressive edge strategy Veeam to its credit, you know, has gone well beyond just virtualization and gone to bare metal into cloud. They were the containers. There was first at SAS. They acquired Caston who was a partner of theirs and they tried to acquire them earlier, but there was some government things and you know, that whole thing that got cleaned up and now they've, they own Caston. And I think the edge is next. I mean, it's gotta be, there's gonna be so much data at the edge. I guess the question is where is it today? How much of that is actually persisted? How much goes back to the cloud? I don't think people really have a good answer for that yet. >>No. In fact, a lot of edge services will be very ephemeral in nature. So it's not like with cloud where we'll take data and we'll store it there forever with the edge, we're gonna take data, we'll store it there for the time, point in time we need it. But I think one of the interesting things about Veeam is because they're decoupled from the airline hardware, they can run virtual machines and containers, porting Veeam to whatever platform you have next actually isn't all that difficult. Right? And so then if you need to be able to go back to a certain point in time, they can do that instantly. It's, it's a fascinating way to do backup. Are >>You you' point about it? I mean, you remember the signs up and down, you know, near the EMC facility, right outside of Southborough no hardware agenda that that was Jeremy Burton when he was running Verto of course they've got a little hardware agenda. So, but Veeam doesn't Veeam is, you know, they they're friendly with all the hardware players of pure play software, couple other stats on them. So they're a billion dollar company. They've now started to talk about their ARR growth. They grew, uh, 27% last year in, in, in annual recurring revenue, uh, 25%, uh, in the most recent quarter. And so they're in, in the vast majority of their business is subscription. I think they said, uh, 73% is now subscription based. So they really trans transitioned that business. The other thing about vem is they they've come up with a licensing model that's very friendly. >>Um, and they sort of removed that friction early on in the process. I remember talking to TIR about this. He said, we are gonna incent our partners and make it transparent to them, whether it's, you know, that when we shift from, you know, the, the, the, the crack of, of perpetual license to a subscription model, we're gonna make that transparent to partners. We'll take care of that. Essentially. They funded that transition. So that's worked very well. So they do stand out, I think from some of the larger companies at these big portfolios, although the big portfolio companies, you know, they get board level contacts and they can elbow their ways in your thoughts on that sort of selling dynamic. >>So navigating that transition to a subscription model is always fraught with danger. Everybody wants you to be there, but they want you to be there now. Mm-hmm <affirmative>, they don't like the transition that happens over 1824 months to get there. Um, >>As a private company, they're somewhat shielded from what they would've been if they were appli. Sure, >>Exactly. But, but that, but that bodes well from a, from a, a Veeam perspective. Um, the other interesting thing is that they sit where customers sit today in the real world, a hybrid world, not everything is in the cloud or a single cloud, uh, still a lot of on-prem things to take care of. And, >>And there will be for >>A long time exactly. Back to this idea. Yeah. There's a very long tail on that. So it's, it's, it's well enough to have a niche product that addresses a certain segment of the market, but to be able to go in and say all data everywhere, it doesn't matter where it lives. We have you covered. Um, that's a powerful message. And we were talking earlier. I think they, they stand a really good shot at taking market share, you know, on an ongoing basis. >>Yeah. The interesting thing about this market, Dave is they're, you know, although, you know, they're tied to number one with Dell now, they're, it's 12%, right? This reminds me of the security industry five, six years ago, where it's so fragmented. There's so many vendors, no one really stood out right. Then what happened in security? It's a little company called Palo Alto networks came around, they created a platform story. They moved into adjacent markets like SDWAN, they did a lot of smart acquisitions and they took off. I think vem is at that similar point where they've now, you know, that 12% number they've got some capital. Now they could go do some acquisitions that they want do. There's lots of adjacent markets as they talk about this company could be the Palo Alto of the data management market, if you know, and based on good execution. But there's certainly the opportunities there with all the data that they're holding. >>That's a really interesting point. I wanna stay that in a second. So there's obviously, there's, there's backup, there's recovery, there's data protection, there's ransomware protection, there's SAS data protection. And now all of a sudden you're seeing even a company like Rubrik is kind of repositioning as a security play. Yeah. Which I'm not sure that's the right move for a company that's really been focused on, on backup to really dive into that fragmented market. But it's clearly an adjacency and we heard Anan the new CEO today in the analyst segment, you know, we asked him, what's your kinda legacy gonna look like? And he said, I want to, I want to, defragment this market he's looking at. Yeah. He wants 25 to 45% of the market, which I think is really ambitious. I love that goal now to your point, agree, he, he sure. But that doubles yeah. >>From today or more, and he gets there to your point, possibly through acquisitions, they've made some really interesting tuck-ins with Castin. They certainly bought an AWS, uh, cloud play years ago. But my, my so, uh, Veeam was purchased by, uh, private equity inside capital inside capital in January of 2020, just before COVID for 5 billion. And at the time, then COVID hit right after you were like uhoh. And then of course the market took off so great acquisition by insight. But I think an IPO is in their future and that's, uh, Zs when they can start picking up some of these adjacent markets through every day. >>And I think one of the challenges for them is now that the Holden XAB bited data, they need to be able to tell customers things they, the customer doesn't know. Right. And that's where a lot of the work they're doing in artificial intelligence machine learning comes into play. Right. And, and nobody does that better than AWS, right? AWS is always looking at your data and telling you things you don't know, which makes you buy more. And so I think from a Veeam perspective, they need to now take all this, this huge asset they have and, and find a way to monetize it. And that's by revealing these key insights to customers that the customers don't even know they have. And >>They've got that monitor monitoring layer. Um, it's if you called it, Danny, didn't like to use the term, but he called it an AI. It's really machine learning that monitors. And then I think makes recommendations. I want to dig into that a little bit with it. >>Well, you can see the platform story starting to build here. Right. And >>Here's a really good point. Yeah. Because they really have been historically a point product company. This notion of super cloud is really a platform play. >>Right. And if you look in the software industry, look across any, any segment of the software industry, those companies that were niche that became big became platforms, Salesforce, SAP, Oracle. Right. And, and they find a way to allow others to build on their platform. You know, companies, they think like a Citrix, they never did that. Yeah. And they kind of taped, you know, petered out at a certain level of growth and had to, you know, change. They're still changing their business model, in fact. But I think that's Veeam's at that inflection point, right. They either build a platform story, enable others to do more on their platform or they stagnate >>HP software is another good example. They never were able to get that platform. And we're not able bunch of spoke with it, a non used to work there. Why is it so important Dave, to have a platform over a product? >>Well, cynical, Dave says, uh, you have a platform because it attracts investment and it makes you look cooler than maybe you really are. Um, but, uh, but really for longevity, you have, you, you, you have to be a platform. So what's >>The difference. How do you know when you have platform versus it? APIs? Is it, yeah. Brett, is it ecosystem? >>Some of it is. Some of it is semantics. Look at when, when I'm worried about my critical assets, my data, um, I think of a platform, a portfolio of point solutions for backing up edge data stuff. That's in the cloud stuff that exists in SAS. I see that holistically. And I think guys, you're doing enough. This is good. Don't, don't dilute your efforts. Just keep focusing on making sure that you can back up my data wherever it lives and we'll both win together. So whenever I hear a platform, I get a little bit, a little bit sketchy, >>Well platform, beats products, doesn't >>It? Yeah. To me, it's a last word. You said ecosystem. Yes. When you think of the big platform players, everybody B in the customer, uh, experience space builds to build for Salesforce. First, if you're a small security vendor, you build for Palo Alto first, right? Right. If you're in the database, you build for Oracle first and when you're that de facto platform, you create an ecosystem around you that you no longer have to fund and build yourself. It just becomes self-fulfilling. And that drives a level of stickiness that can't be replicated through product. >>Well, look at the ecosystem that, that these guys are forming. I mean, it's clear. Yeah. So are they becoming in your view >>Of platform? I think they are becoming a platform and I think that's one of the reasons they brought on and in, I think he's got some good experience doing that. You could argue that ring kind of became that. Right. The, when, you know, when he was ring central. >>Yeah. >>Yeah. And, uh, so I think some, some of his experiences and then moving into adjacencies, I think is really the reason they brought him in to lead this company to the next level. >>Excellent guys, thanks so much for setting up VEON 20, 22, 2 days of coverage on the cube. We're here at the area. It's a, it's a great venue. I >>Love the area. >>Yeah. It's nice. It's a nice intimate spot. A lot of customers here. Of course, there's gonna be a big Veeam party. They're famous for their parties, but, uh, we'll, we'll be here to cover it and, uh, keep it right there. We'll be back with the next segment. You're watching the cube VEON 20, 22 from Las Vegas.

>>Hello everyone Welcome to the cubes coverage of cubic on cloud native come here in person in L A 2021. I'm john ferrier, host of the Cuban Dave Nicholson host cloud host for the cube and of course former host of the cube steve minutemen. Now at red hat stew, we do our normal keynote reviews. We had to have you come back first while hazard and red hat >>john it's phenomenal. Great to see you nice to have Dave be on the program here too. It's been awesome. So yeah, a year and a day since I joined Red hat and uh, I do miss you guys always enjoyed doing the interviews in the cube. But you know, we're still in the community and still interacting lots, >>but we love you too. And Davis, your new replacement and covering the cloud angles. He's gonna bring little stew mo jokes of the interview but still, we've always done the wrap up has always been our favorite interviews to do an analysis of the keynote because let's face it, that's where all the action is. Of course we bring the commentary, but this year it's important because it's the first time we've had an event in two years too. So a lot of people, you know, aren't saying this on camera a lot, but they're kind of nervous. They're worried they're weirded out. We're back in person again. What do I feel? I haven't seen people, I've been working with people online. This is the top story. >>Yeah, john I thought they did a really good job in the keynote this morning. Normally, I mean this community in general is good with inclusion. Part of that inclusion is hey, what are you comfortable with if your remote? We still love you and it's okay. And if you're here in person, you might see there's wrist bands of green, yellow, red as in like, hey, you okay with a handshake. You want to do there or stay the f away from me because I'm not really that comfortable yet being here and it's whatever you're comfortable with. That's okay. >>I think the inclusion and the whole respect for the individual code of conduct, C N C. F and limits Foundation has been on the front end of all those trends. I love how they're taking it to a whole nother level. David, I want to get your take because now with multi cloud, we heard the same message over and over again that hey, open winds, okay. Open winds and still changing fast. What's your take? >>Open absolutely wins. It's uh, it's the present. It's the future. I know in some of the conversations we've had with folks looking back over the last seven years, a lot of things have changed. Um, whenever I think of open source anything, I go back to the foundations of Lennox and I remember a time when you had to reboot a Linux server to re scan a scuzzy bus to add a new storage device and we all sort of put our penguin hats on and kind of ignored that for a while. And uh, and, and as things are developed, we keep coming into these new situations. Multi cluster management was a big, big point of conversation in the keynote today. It's fascinating when you start thinking about something that was once sort of a back room science experiment. Absolutely. It's the center of the enterprise now from a software >>from an open tour standpoint security has been one of those front and center things. One of the day, zero events that got a lot of buzz coming at the beginning of the week was secure supply chain. So with the Solar Wind act going in there, you know, we remember cloud, wait, can I trust it with the security? Open source right now. Open source and security go together. Open source and the security in the cloud all go together. So you know that that wave of open source, obviously one of the things that brought me to red hat, I'd had a couple of decades, you know, working within the enterprise and open source and that that adoption curve which went through a few bumps in the road over time and it took time. But today, I mean open sources have given this show in this ecosystem are such proof >>points of a couple things. I noticed one, I want to do a shout out for the folks who put a nice tribute for dan Kaminsky who has passed away and we miss him. We saw on the Cube 2019, I believe he's on the Cube that year with Adam on big influence, but the inclusiveness do and the community is changing. I think security has changed a lot and I want to get your guys take on this. Security has forced a lot of things happen faster data, open data. Okay. And kubernetes to get hardened faster stew. I know your team's working on it. We know what Azure and amazon is working on it. What do you guys think about how security's been forcing the advances in kubernetes and making that stable? >>Yeah. So john security, you know, is job one, it is everyone's responsibility. We talk about it from a container and kubernetes standpoint. We think we have a relatively good handle on what's happening in the kubernetes space red hat, we made an acquisition earlier this year of stack rocks, which was one of the leading kubernetes native security pieces. But you know, john we know security isn't just a moat anymore in a wall that you put up every single piece. You need to think about it. Um, I've got a person from the stack rocks acquisition actually on my team now and have told him like hey, you need to cross train all of us. We need to understand this more from a marketing standpoint, we need to talk about it from a developer standpoint. We need to have consideration of it. It's no longer, hey, it works okay on my machine. Come on, It needs to go to production. We all know this shift left is something we've been talking about for many years. So yes, security, security, security, we cannot overemphasize how important is um, you know, when it comes to cooper, I think, you know, were relatively mature, we're crossing the chasm, the adoption numbers are there, so it's not an impediment anymore. >>It's totally next level. I don't agree with this too. David, get your thoughts on this whole adoption um, roadmap that put it together, one of the working groups that we interviewed has got that kind of navigate, kinda like trailheads for salesforce, but that speaks to the adoption by mainstream enterprises, not the hard core, >>you know, >>us devops guys, but like it goes into mainstream main main street enterprise had I. T. Department and security groups there, like we got a program faster. How do you see the cloud guys in this ecosystem competing and making that go faster. >>So it's been interesting over the last decade or more often, technology has been ahead of people's comfort level with that technology for obvious reasons, it's not just something went wrong, it's something went wrong. I lost my job. Really, really bad things happened. So we tend to be conservative. Rightfully so in the sometimes there are these seminal moments where a shift happens go back sort of analogous go back to a time when people's main concern with VM ware was how can I get support from Microsoft and all of a sudden it went from that within weeks to how can I deploy this in my enterprise very, very quickly. And I'm fascinated by this concept of locking down the supply chain of code, uh sort of analogous to https, secure, http. It's the idea of making sure that these blocks of code are validated and secure as they get implemented. You mentioned, you mentioned things like cluster and pad's security and infrastructure security. >>Well, David, you brought up a really good point. So get off is the instance creation of that. How can I have my infrastructure as code? How can I make sure that I don't have drift? It's because I could just, it'll live and get hub and therefore it's version controlled. If I try to do something, it will validate that it's there and keep me on version because we know john we talked about it for years on the cube, we've gone beyond human scale if I don't build automation into it, if I don't have the guard rails in place because humans will mess things up so we need to make sure that we have the processes and the automation in place and kubernetes was built for that automation at its core, putting in, we've seen get up the Argosy, D was only went graduated, you know, the one dato was supported as coupon europe. Earlier this year, we already had a number of our customers deploying it using it. Talking publicly >>about it too. I want to get the kid apps angle and that's a good call out there and, and mainly because when we were on the cute, when you work, you post with with us, we were always cheerleading for Cuban. It we love because we've been here every single coupon. We were one saying this is gonna be big trust us and it is, it happens to so, but now we've been kind of, we don't have to sell it anymore. We don't, I mean not that we're selling it, but like we don't have to be a proponent of something we knew was going to happen, it happened. You're now work for a vendor red hat you talk to customers. What is that next level conversation look like now that they know it's real, they have to do it. How is the tops and then modern applications development, changing. What are your observations? Can you share with us from a redhead perspective as someone who's talking to customers, you know, what does real look like? >>Yeah. So get off is a great example of that. So, you know, certain of our government agencies that we work with, you know, obviously very secured about, you know, we want zero trust who do we put in charge of things. So if they can have, you know that that source of truth and know that that is maintained and lockdown and not await some admin is gonna mess something up on us either maliciously or oops, by accident or anything in between. That's why they were pushing that adoption of that kind of technology. So absolutely they, for the most part john they don't want to have to think about the infrastructure piece anymore. What if developers want the old past days was I want to be able to, you know, write once deploy anywhere, live anywhere, containers helps that a little bit. We even have in the container space. Now you can, you can use a service deployment model with Okay. Natives, the big open source project that, you know, VM ware ourselves are working on google's involved in it. So, you know, having us be able to focus on the business and not, you know, running the plumbing anymore. >>That's exactly, that's exactly, that's what we're so psyched for. Okay guys, let's wrap this up and and review the keynote day will start with you. What do you think of the keynote? What were the highlights? What do you take away from the taste keynote? >>So you touched on a couple of things, uh inclusion from all sorts of different angles. Really impressive. This sort of easing back into the world of being face to face. I think they're doing a fantastic job at that. The thing that struck me was something I mentioned earlier. Um moving into multi cluster management in a way that really speaks to enterprise deployments and the complexity of enterprise deployments moving forward? It's not just, it's not just, I'm a developer, I'm using resources in the cloud. I'm doing things this way, the rest of the enterprises doing it a legacy way. It's really an acknowledgement that these things are coming together increasingly. That's what really struck me >>to do. What's your takeaway from the end? >>So there's been a discussion in the industry, you know, what do the next million cloud customers look like we've crossed the chasm on kubernetes. One of the things they announced the keynote is they have a new associate level certification because I tell you before the keynote, I stopped by the breakfast area, saturday table, talk to a couple people. One guy was like, hey, I'm been on amazon for a bunch of years, but I'm a kubernetes newbie, I'm here to learn about that. It's not the same person that five years ago was like, I'm gonna grab all these projects and pull them down from getting, build my stack and you know, have a platform team to manage it from a red hat standpoint, we're delivering our biggest growth areas in cloud services where hey, I've got an SRE team, they can manage all that because can you do it? Sure you got people maybe you'll hire him, but wouldn't you rather have them work on, you know, that security initiative or that new application or some of these pieces, you know, what can you shift to your vendor? What can you offload from your team because we know the only constant is that things are gonna there's gonna be gonna be new pieces and I don't want to have to look at, oh there's another 20 new projects and how does that fit? Can I have a partner or consultant in sc that can help me integrate that into my environment when it makes sense for me because otherwise, oh my God, cloud, So much innovation. How do I grasp what I want? >>Great stuff guys, I would just say my summary is that okay? I'm excited this community has broken through the pandemic and survived and thrived people were working together during the pandemic. It's like a V. I. P. Event here. So that my keynote epiphany was this is like the who's who some big players are here. I saw Bill Vaz from amazon on the on the ground floor on monday night, He's number two at a W. S. I saw some top Vcs here. Microsoft IBM red hat the whole way tracks back. Whole track is back and it's a hybrid event. So I think we're here for the long haul with hybrid events where you can see a lot more in person, V. I. P. Like vibe people are doing deals. It feels alive too and it's all open. So it's all cool. And again, the team at C. N. C. F. They do an exceptional job of inclusion and making people feel safe and cool. So, great job. Thanks for coming on. I appreciate it. Good stuff. Okay. The keynote review from the cube Stupid Man shot for Dave Nicholson. Thanks for watching >>mm mm mm.

>>mm Welcome to VM World 2021 2 days of virtual discussions on innovation. Multi cloud application modernization, securing your data new ways to work transforming the network expanding to the edge and loads of content to help build your digital business. My name is Dave Volonte and you're watching the cube and with me today is Carol Carpenter who's the chief marketing officer of VM. Where carol Great to see you again. Welcome back to the program. >>Thank you Dave. It's great to be here. >>Okay, well, so when we last talked last year at VM World, I honestly thought we'd be back face to face this year. Seems like we learn more every day every week. Every month. How did this year's event come together? What were your priorities in shaping the program? >>You know, I'm with you. I really hoped we would be together in person this year and here we are, another year of virtual. We are primarily all virtual again, which has some really big benefits in that we're able to reach new audiences who in the past couldn't afford to fly, could afford to take the days And it's taught us a lot. So we really approached this year as how do we create a VM world experience that is filled with digestible bites. You know, the notion that any of us are going to sit still for 3-2 days, three days and pay attention full time. This is a pretty antiquated notion. You know, we all like to to take little bites and tastes of content here and there and so we really designed the whole program to do just that. And with this go ahead. >>No, please carry on. >>No, I was going to say one of the things we really wanted to do this year with the M world. The reason the theme is imagined that is we wanted to show the world that VM World is not about your parents, BM world that this is a company while we're very proud of our virtualization past, what we offer today really spans the gamut as you pointed out everything from networking to security to application development platforms. So it's a it's just a different different company with different products and solutions for customers. >>And I love the whole concept of digestible called stackable bites and love that. And you've put together a pretty impressive lineup. You got superstar names, you got, you got stars inside of our industry and then you you know the tech people might know but you've got well known celebrities. What are you looking forward to this year and you know especially around customer and partner engagements. >>Yeah and thank you for highlighting all of that. Like I am super excited about all the different luminaries who are speaking. I am most excited about the customers and partners. Every session will have a customer's part of it. Either a customer speaking or a customer story or customer quotes really speaking to the value and with that we have hundreds of customers presenting customers. Like some you might expect like Fedex to new sas based customers like toast who provides restaurant software and they just went public to companies like space ape games who provide online games. So a real boy, I think a real diversity of customers um, in terms of their transformations and how they're leveraging the VM ware solutions. And then our partner ecosystem really excited. This year we added a new level of sponsorship to bring in some of the um, I would say younger customers and younger partners, partners like, you know, Reddit and um, you know, couch face and others who are bringing new solutions to market. >>We have some great names, they're toast. I think the local boston company, we've, we've been following them so excited to to hear what they have to say. Now let's talk a little bit about the virtual world, This is your second virtual VM world. I'm interested in what you're doing differently. I want to talk about learning, but, but what are you looking forward to in in, in in that sense? And how has the event grown? >>Well, the event has definitely grown in terms of the platform. I think the expectations in terms of numbers of attendees were expecting, you know, over 100,000. Um, and even in this zoom fatigued world, we still expect high level of engagement. The biggest changes. We have made one the more stackable content that we've been talking about two. We focused this year on a high level of interactivity, so we have slack channels set up for almost every session. We expect both speakers, customers prospects to really engage. And and then third area that's different is we amped up all of the different activities. We know that people want to interact and network in other ways. So, you know, some of the usual things like the bourbon tasting, the wine tasting, but also yoga classes and opportunities to learn from a magician, Even golf tips for those of us who love golfing, um really trying to mix it up and create a higher level of interactivity. In addition to all of the platforms you expect for hands on, learning, hands on labs, practitioner classes, All that's still there. We just wanted to increase the level of engagement. >>That's super fun, really innovating in that regard. You're right. I mean it's so easy to just to multitask and get lost. But if I know like if I'm really into yoga or I want some golf tip, I'm gonna come back at that time and it'll, you'll re engage me. So I love that, you know, the cube, we have a unique privilege of participating in a very wide spectrum of events as you can imagine. And we were deeply integrated carol into one of the industry's first big hybrid events this year at mobile world Congress this >>summer. We thought >>that was like the light of the end of the tunnel, but of course we've seen a pullback of sorts but we're still doing some physical, we do a lot of virtual, we were doing these hybrid events. We've been involved in events where they, you know, the host and the guests are there with no audience. So I'm curious as to how you see the evolution of conferences in this post isolation era. What's the learnings? What's changed and what does the future look like for events? >>Yeah, I mean I've talked with a lot of my industry peers about this, including the folks over at Mobile World Congress. Um, I don't think the large, the monolithic event with hundreds of thousands of people um, is in the cards for our near future. And so we've been rethinking like what does a physical event look like or a set of physical events look like next year. That would have an online component. We're we've always had an online component. So we certainly are not. We won't be shedding that anytime soon. The ability to reach new audiences. New targets, new user groups, we absolutely will keep that. I think in terms of the physical presence is exactly what you said. It will be hybrid. Um, we are looking at a series, don't quote me on this because we haven't finalized, but we are considering a series of in person, more local, more regional events with smaller groups. People still want that engagement, customers still want a network and talk with each other. Our users want to talk to each other are vima groups are our new groups like our DEvoPS loop group. The deVOPS folks, they all still want a network, so we want to provide that. But in a smaller, safer, more localized setting. And I think that's the future for a lot of companies. It puts a bigger toll and, and makes more work for us as the company who's hosting, meaning you and you too Dave, you'll be hopefully traveling with us two more of these locations, but it creates a little more strain on the team who is posting. >>You know, it's funny as you well know when we first started doing virtual events, like I said, we've always been been virtual, but largely it was okay. Here are the keynotes, you know, come watch. Uh, and now you're like, say you gave great examples of how you're increasing the engagement, getting much more creative and, and, and it was a lot unknown last year, especially like class March. It was like, okay and virtual events are harder in many respects than physical events and so much of the process has changed different roles. And I think we're seeing the same thing now with with hybrid, there's a lot that's unknown and a lot of trial and error, a lot of experimentation and, but I think at the end of the day, you can actually have the best of both worlds. You can get your what you described, I would, I would call it a VIP locally. V. I. P. Event maybe even role based they have the technical folks, it used to have conferences within conferences, you have your C. I. O. Event, you'd have your event and so I see a kind of return to that maybe I could say smaller and and safer and then a a much much larger audience and in the case it's different in terms of you know converting those into loyal customers and so forth. But but I think overall it's a much much bigger pond ocean that we're playing in. >>Absolutely I think of it as we're going to bring the um world too our customers and prospects and partners and you know it's pretty amazing. The other part of this you asked earlier about like speakers and some of the luminaries the fact is getting everyone to travel to one place at one point in time always had its share of logistical challenges and being able to, you know, some of it can be recorded in advance some of it will be in person. Like one thing we did this year is we recorded our ceo Ragu with six other ceos of hyper scholars talking about the future of multi cloud and what it means and the role that VM ware plays in this. That's pretty hard to do. Like to get all six of them together in one place at the same time. You know how everyone's schedules so compacted so that's what virtual gives us an opportunity to do reach, have more interesting speakers, lots of different speakers who potentially couldn't all travel. >>You don't want to miss that, that event or replay. Um, let's talk about your role as chief marketing officer. You're obviously putting your fingerprints on this new ever you new era. You had no choice you could have entered in. Yeah. We always talked about digital now is like if you're not a digital business, you're out of business and you're, you're living it now. But but I'm interested in in your strategy for global marketing, the organization, The brand in the coming decade. Like you say, the next 10 years are going to be like the last 10 years. >>That's right. Well let's talk about the brand. So VM ware, The name itself is so tightly associated to virtualization and VMS, right, Which is an amazing history and the story of success. That was really what we like to talk about is chapter One, We pioneered server virtualization laying the foundation for what today is the cloud. And then chapter two, we went bigger and broader and we virtualize the entire data center and now here we are, we're in chapter three and this is the next phase of our brand and our promise to customers, which is really focused on customer based innovation and helping our customers innovate and multi cloud. We really believe it's the center of gravity for everything we do. It's in our DNA. It's what how we take constraints which is a very multi cloud can be complex. There are challenges of you know are for customers operating in a multi cloud world. How do we take that help them turn it into an asset, How do we help them take that and give them freedom and control? And that's what our brand is about. It's about the ant is that you can help your developers move faster and retain enterprise control. It's that you can have enterprise apps on any cloud and you can have control and cost savings and enterprise management. So that's what the brand is about. That power of aunt and um and um in terms of how our marketing team is evolving a big piece is exactly what you said. You know just digital everything digital first customers want to learn try buy online and as a company you know VM ware we're shifting our business model from on premise license software to more assassin subscription services And you can see that in our earnings and how we've been shifting and it's quite exciting because with assassin subscription based model you know it's all about customers getting full value in helping customers achieve their value and consumption. So for our marketing team we have shifted from okay we want to get you to the sale and one and done to how do we really drive a full life cycle with a customer, how do we help them land and expand and use the products and get value from them and have a meaningful relationship. It's much more um of a full life cycle. So we're really excited. We, we love what we're doing um particularly on the acquisition side, getting helping customers to learn try by more easily in a digital world and then being able to follow them through with some physical, physical engagement, uh events like the um world and really helping them get the most value out of the products. >>VM ware is really quite an amazing company I'm super excited for as one individual has been following this company for a long time to see the next chapter and the thing a couple of things you mentioned innovation and I see so many companies today, they may have a big customer base, they just, it's easy for them. Easy quotes to milk that customer base and put out new products that sort of lifecycle products. Multi cloud is challenging and one of the hallmarks of VM ware is it's always had a leader that deeply understands technology. You've done that again with with Ragu and so engineering and really drives that innovation. So when I think about cloud generally and you know, there was some start stops with VMware's cloud strategy but then you said, you know what the cloud is an opportunity, it's a gift, we're gonna lean in and then you develop some really interesting partnerships like you said, you got all the big cloud companies up up on stage here this year. And so multi cloud is going to require deep engineering in a vision to really bring that uh, together. And I think, you know, VM ware is, he's one of a handful, you know, small handful of companies that can actually pull that off. >>Well, thank you. Dave, we think so for sure. I mean, we have the history and the foundation and the relationships to be able to do that. I think that um what's what's hard sometimes is that, you know, people may or may not know all the different things we do this multi cloud chapter is really a, It's the reality, 75% of our customers are operating living in a multi cloud world. And if you look at some of the data, it looks like 80, are going that way. And so how do we help them simplify? How do we help customers simplify and innovate for the future? It's definitely in our DNA it's how we take constraints and turn them into an asset for our customers. We, we really believe that it shouldn't be so complex and that we want our customers to have flexibility and choice used to be able to pick which application for which cloud and at any point in time change your mind as well when there are new capabilities on those clouds. And for us, you know, you've hit it on the head, we did realize and we did learn that we don't really want to compete with the hyper scale ear's, what they're doing is pretty unique. What we want to do is help customers consume and accelerate their innovation faster. >>Well, I love the messages and and really appreciate carol your time explaining to our cube audience, going to your vision is the CMO. And you know, we look forward to an interesting chapter ahead with hybrid events, hybrid cloud, multi cloud and all the rest. Thanks so much for coming back in the cube. >>Absolutely. Thank you for having me. Dave >>You're very welcome and thank you for watching. Keep it right there for more great content to cubes coverage of VM World 2021. The virtual edition will be right back. >>Mhm

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. >>This is a cube conversation >>live on. Welcome to the Special Cube Virtual coverage of AWS Summit Online. This is an event of virtual event by AWS. We're covering with the Virtual Cube his Amazon, so it would have no >>looking started. We started. Thank you. Right >>everyone, welcome to this Special Cube. Virtual coverage of the AWS Summit Virtual Online This is an event that Amazon normally has in person in San Francisco, but now it's virtual around the world. Seoul, Korea, in Tokyo, all over the world, in Asia Pacific and in North America, I'm John Furrier Dave Jones Stew Minimum. Let's do We're kicking off aws Virtual with the Cube Virtual. I'm in Palo Alto with the quarantine crew. You're in Massachusetts in Boston when the quarantine crew there still great to have you on to talk about AWS Virtual summit. >>Yeah, John, it's it's great to see you. Ah, it's been ah, you know, interesting times doing all these remote interviews A Z Many of us say I don't blame hotels, but I do miss the communities I do miss the hallway conversation. But great to see you, John. Love the Midnight Madness shirt. We >>want to thank Amazon for stepping up with some sponsorship for allow us to do the Virtual Cube alongside their virtual event because now it's a global community. It's all virtual. There are no boundaries. The Cube has no boundaries to We've got a great program. We have Cory Quinn coming up. Expect to hear from him last week in AWS is known for is a rising star in the community. Certainly Cube guest and also guest host and analyst for the Cube. We spent to hear all the latest from his big zoom post controversy to really what's going on in AWS around what services are hot. I know you're going to a great interview with him, but that's not what Amazon we're seeing a ton of activity, obviously, most recently last week was the jet, I think, which was an agency protest kind of confidential. Microsoft blew that up big time with a post by their worldwide comes person. Frank Shaw countered by Drew Heard Who's the coms globally for end of us and so a war of words is ensuing. This is again pointing to the cloud Native War that's going on with a jet I conference gets Jedi contract a $10 billion which is awards to Microsoft. This shows that the heat is on to do. This is a absolute bloodbath between AWS and Microsoft. We're seeing it play out now virtually with Amazon ai Large scale cloud. This is huge. This is this is another level. A def con one. Basically your thoughts. >>Yeah, John, you know, you've covered this really well and really impressing plot number one you talk about You know, this requirement When AWS launched the govcloud had the CIA as a client early on many years ago. It was the green light for many companies to go from. Wait. Is the club secure enough? Do well, good enough for the federal government in the US It's probably good enough for the enterprise. When Microsoft one jet I they didn't have all the certifications to meet what was in the contract? They had a ticking clock. Make sure that they could meet those security engagements. Aziz. Well, as you know what, one of the pieces the esports that move was working, made a partnership announced with Azure. We know the federal government uses Oracle quite a bit, though they can now run that in azure and not have the penalties from Oracle. So you know that many have said, you know Hey, AWS, why don't you kind of let that one go? You got federal business, but those ripple effect we understand from one contract kind of move things around. >>Well, my take on this is just the tip of the teapot. Either Microsoft's got something that we don't know where they're running scared. My predictions do is that the clock is gonna take out D o. D. Is going award the contract again to Microsoft because I don't think the d. O. D. Wants to change basically on the data that I'm getting from my reporting. And then, ultimately Amazon will keep this going in court because Microsoft has been deficient on winning the deal. That is by the judge and in government contracts. As you know, when you're deficient, you're ineligible. So, essentially on the tech specs, Microsoft failed to meet the criteria the contract and they're deficient. They still can't host top secret content even if they wanted to. This is going to be a game changer when if this comes out to be true, it will be a huge tech scandal. If it's true, then am I gonna have egg on their face? OK, so we passed. This speaks to the large scale problems that are having with Cove it. You're seeing Amazon. They're all working at home, but they still got to run the servers. They >>can do >>it. They got cloud native. You've got Dev ops. But for their customers to be people who are trying to do hybrid. What >>are you >>hearing in terms of the kinds of situations that people are doing? Are they still going to work with maths on our There's still data centers that need to be managed. What >>are >>you hearing in the tech world's do around Covad 19. And as the cloud becomes more apparent, it's obvious that if you're not cloud native, you're going to be on the wrong side of history. Here is pretty obvious. >>Yeah, well, absolutely. John. There there is a bit of a Elwyn behind cloud. Everything from you mentioned work from home. Everybody needs to be on their VPN. They need to access their service access their services where they are. If you've got a global workforce, if you thought that your infrastructure was going to be able to handle that, you might not be in for a WS is meeting that need. There's been some of the cloud providers that have had performance issues have had to prioritize which customers can get access to things AWS standing strong. They're meeting their customers and their answering the call of cloud. You know, we know that AWS puts a huge investment into their environment. If you compare an availability zone from AWS, you know, it is very, very sturdy. It's not just, you know, a you know, a small cluster on. And they say, Hey, we can run all over the place, you know, to be specific It's, you know, John Azure has been having some of those performance issues and has been from concerns. Corey actually wrote a really good article talking about that. It actually put a bad you on public cloud in general. But we know not all public cloud with the same, though, you know, Google has been doing quite well, you know. Managing the demand spike, though, has AWS. Microsoft has needed to respond a little bit. >>It's just mentioned Microsoft's outages. Microsoft actually got caught on eight K filing, which you just have to be going through, and they noticed that they said they had all this up. Time for the cloud. Turns out it wasn't the cloud. It was the teams product. They had to actually put a strike a line through it legally. So a lot of people getting called out, it doesn't matter. It's a crisis. I think that's not gonna be a core issue is gonna be what technology has been needed the most. And I got to ask you still, when was the last time you and I talked about virtual desktops? Because, hey, if you're working at home and you're not at your desk, you need might need some stuff on your desk. This >>is a real issue. >>I mean, it's a >>kind >>of a corner case in tech, but virtual desktops. If >>you're not >>at the office, you need to have that at home. This is a huge issue. It's been a surge >>in demand. Yeah, there were jokes in the community that you know, finally, it's the year of VD I, but desktop as a service. John is an area that took a little while to get going. You know, Dave Volante and I were just having about this. You and Dave interviewed me when Amazon released workspaces, and it was like, Ah, you know, Citrix is doing so well and VD I, you know, isn't the hotness anymore, But that's not service as grown. If you talk about desktop as a service compared to V i p. I is still, you know, a bit of a heavy lift. Even if you've got, you know, hyper converged infrastructure. Roll this out. It's a couple of months to put these whole solutions together. Now, if you have some of that in perspective, can you scale it and you build them up much faster? Yes, you can. But if you're starting to enable your workforce a little bit faster, desktop as a service is going to be faster. AWS has a strong solution with work base. Is it really is that enablement? And it's also putting pressure on the SAS providers. One. They need scale and do they need to be responsive that some of their customers need to scale up really fast and some of them dial things down. Always worry about some of these on track that the SAS providers, but you in. So you know, customers need to make sure they're being loud and clear with their providers. If you need help. If you need to adjust something, you know, push back on them because they should be responsive because we know that there is a broad impact on this. But it will not be a permanent impact, though you know, these are the times that companies need to work closely with customers because otherwise you will. You will either make a customer for life, or you will have somebody that will not be saying about you for a long >>while. Still, let's just quickly run through some of the highlights so far on the virtual conference virtual event. Aussie Amazon Pre announced last month the Windows Migration Service, which has been a big part of their business. They've been doing it for 11 years, so we're gonna have an interview with an AWS person to talk about that also app Flows announced as well as part of the virtual kind of private, you know, private checks. So you're seeing that right here. Large scale data lakes breaking down those silos, moving data from the cloud from the console into the top. Applicants like Salesforce is a big one. That was kind of pre announced. The big story here is the Kendra availability and the augmented AI availability. Among other things, this is the big story. This kind of shows the Amazon track record they pre announced at reinvent, trying to run as fast as they can to get it shipping the focus of AI. The focus of large scale capacity, whether it's building on top of GC, too. Server list. Lambda ai. All this is kind of coming together data, high capacity, operational throughput and added value. That seems to be the highlights. Your reaction? >>Yeah, John, You know, at flow is an interesting one. We were just talking about asp providers. An area that we've been spending a lot of time talking with. The system is you know, my data is all over the place, you know? Yes, there's my data centers public, but there's all of these past provides. So, you know, if I have data in service now, I have it in workday. I have a sales force you know, how do I have connectors there? How do I You're that How do I protect that, though? Amazon, you know, working with a broad ecosystem and helping to pull that together. Eyes definitely an interesting one. What? Kendra definitely been some good buzz in the ecosystem for a while. They're You know, the question is on natural language processing and a I, you know, where are the customers with these deployments? Because some of them, if they're a little bit more long term, Egypt might be the kind of projects that get put on pause rather than the ones that are critical for me to run the business today. >>And I just did a podcast with the VM ware ecosystem last week talking about which projects will be funded. Which ones won't. It brings up this new virtual work environment where, you know, some people are going to get paid and some people aren't. If you're not core to the enterprise, you're probably not going to get paid. If you're not getting a phone call to come into work, you're probably gonna get fired. So there will be project that will be cut and projects that will be funded certainly virtual events, which I want to talk to you about in a minute to applications that are driving revenue and or engagement around the new workforce. So the virtualization of business is happening now. We joke because we know server virtualization actually enabled the cloud. Right? So I think there's going to be a huge Cambrian explosion of applications. So I want to get your thoughts. The folks you've been talking to the past few months, what are you hearing in terms of those kinds of projects that people will be leaning into and funding versus ones they might put on hold? Have you heard anything? >>Yeah. Well, you know, John, it's interesting when you go back at its core, what is AWS and they want to enable built. So, you know, the last couple of years we've been talking about all of the new applications that will get built. That's not getting put on hold, Jones. You know it. What? I do not just to run the business but grow the business. I need the We'll have applications at the core of what we do. Data and applications, Really. Or what? Driving companies today. So that piece is so critically important and therefore AWS is a very strategic partner there. >>I'm saying the same things Do I think the common trend that I would just add to that would be I'm seeing companies looking at the covert crisis is the opportunity and frankly in some cases, an excuse to lay people off, and that's kind of you're seeing some of that. But the >>end of >>the day that people are resetting, reinventing and then putting new growth strategies together that still doesn't change business still needs to get done. So great point. It's to virtual events were here with the AWS summit. Normally run the show floor. The Cube. We're here with the Virtual Cube doing our virtual thing. It's been interesting to a lot of our events have converted to virtual. Some have been canceled, but most of them have been been running on the virtual. We've been plugged in, but the cube is evolving, and I want to get your thoughts on how you see the Cube evolving. I've been getting a lot of questions that came again on the VM Ware community podcast. How is the Cube morphed and I know that we've been working hard with a lot of our customers. How have we evolved? Because we're >>in the >>middle of this digital way, this virtualization away. The Cube is in there. We've been successful. That's been different use cases. Some have been embedded into the software. Amazon's got their own run a show. But events are more than just running the show content. >>Yeah, more John, >>more community behind us to your thoughts and how well Cube has evolved. And what are you seeing? >>I'm glad, John. You just mentioned community. So you know, you and I have talked many times on air that, you know, the Cube is much network in the community as it is a media company. So, you know, first of all, it's been so heartening over the last couple of months that we've been putting out. We're still getting some great feedback from the community. One of things I personally miss is, you know, when we step off the stage and you walk the hallway and you bump into people that know when they ask your questions were you know, they share some of the things that they're going through. That data that we always look for is something we still need. So I'm making sure that reach out to friends, you know, diving back into the social channels to make sure that we understand the pulse of what's going on. But you know, John, you know, our community has always been online, though a big piece of the Cube is relatively unchanged. Other than we're doing all the interviews, we have to deal with everyone's home systems in home network. Every once in a while you hear a dog barking in the background or, you know, a child running, but it actually humanized. So there's that opportunity or the communities to rally together. Some of my favorite interviews have been, you know, the open source communities that are gathering together toe work on common issues, a lot of them specifically for the global endemic, you know, And so there are some really good stories out there. I worry when you talk about companies that are think, Hey, this There have been so many job losses in this pandemic that it just is heartbreak. So, you know, we've loved when the tech community is helping to spur new opportunities, great new industries. I had a great interview that I did with our friends from a cloud guru, and they've seen about a 20 to 30% increase on people taking the online training. And one of the main things that they're taking training on is the one on one courses on AWS on Google and on Azure, as well as an interesting point. John, they said, Multi cloud is something that come up. So you know, 2020 we've been wondering. Is aws going to admit that multi cloud is a thing, or are they going to stick with their hybrid message and, you know, as their partners not talk about? It's >>been interesting on the virtual queue because we and Amazon's been a visionary and this leading Q B virtual with them. It's become a connective tissues to between the community. And if you think about how much money the companies they're saving by not running the physical events and with the layoffs, as you mentioned, I think that could be an opportunity for the Cube to be that connective tissue to bring people together. I think that's the mission that we hope will unfold, but ultimately, digital investments will probably go up from this. I'm seeing a lot of great conversion around. Okay, So the content, What does it mean to me? Is that my friend group are my friends involved? How do I learn? How do I discover? How do I connect? And I think the interesting thing about the Cube is we've seen that up front. And I think there's a positive sign of heads do around virtualization of the media and the community. And I think it's going to be economic opportunity. And I hope that we could help people find either jobs or ways to re engage and reconnect. So again, reinvents coming. You got VM World. All >>these big shows do They dropped so much cash. Can you answer? They >>put all that cash with the community. I think that's a viable scenario. >>Yeah. No, Absolutely. John. There there is, you know, big money and events, you know? Yes, there are less cost. They're also, you know, almost none of them are charging for people to attend, and very few of them are urging the bunker. So, you know, big shift in and how we have to look at these. It needs to be a real focus on content. I mean from our standpoint, John, from day one. We've been doing this a decade now. In the early days when it was a wing and a prayer on the technology, it was always about the content. And the best people help extract that signal from the noise. So, you know, some things have changed the mission overall days. >>And you know what? Amazon is being humble. They're saying we're figuring it out. Of course, we're psyched that we're there with the Virtual Cube students do. Thanks for spending the time kicking off this virtual coverage wrap up. Not >>as good as face to face. >>Love to be there on site. But I think it's easy to get guests used to in the virtual world. But we're gonna go to a hybrid as soon as it comes back to normal. Sounds like clouds to public hybrid virtual. There it is too. Thanks so much. Okay, that's the cube coverage for AWS Summit. Virtual online. That's the Cube virtual coverage. I'm sure. First Amendment, Thanks for watching. Stay tuned for the next segment. Yeah, >>yeah, yeah, yeah