(upbeat music) >> 2020 was the most unpredictable year of our lives, a forced shutdown of global economies left everyone have the conclusion that the tech industry spending would decline and of course it did, but you'd hardly know it if you watch the stock market and the momentum of several well-positioned companies. Those firms that had products and services that catered to the pivot to work from home, SAS based solutions were focused on business resiliency and cloud saw huge growth. The forced match to digital turned a buzzword into reality overnight, where if you weren't a digital business, you were out of business. And one of the companies participating in that growth trend was Veeam. Veeam virtual is scheduled to take place on May 25th and 26th. And it's one of our favorite physical events and the Cube will be there again as a virtual participant. One of our traditions prior to VeeamON has always been to bring in an executive into the Cube and talk not only about what to expect at the show, but what's happening in the market. And with me is many times Cube alum Danny Allan is the chief technology officer at Veeam. Danny welcome is always great to see you. >> I am delighted to be here again. Disappointed it's virtual, but excited to talk with you. >> Yeah, me too. You know, it's coming. It's getting jabbed but you know, you look at the surprises here. I mean, look at the chip shortage, you know everybody thought, Oh, well stop ordering chips. I mean furniture, et cetera, cars. And it's just kind of crazy. What was your expectation going into the pandemic and what did you actually see looking back? >> Well, it's funny, you never know what's going to happen. And for the first few weeks I would say there's a lot of disruption because all of a sudden you have people who've been going into an office for a long time, working from home and you know, from an R&D perspective at Veeam those people weren't used to working from home. So there's a lot of uncertainty I'll say for the first three or four weeks but what very quickly picked up was the opportunity. I'll say to focus more specifically on delivering things for our customers. And one of the things obviously that just exploded was use of digital technologies like Slack and Microsoft teams. And as you say, Veeam was well positioned to help customers as they move towards this new normal, as they say. >> So what were some of the growth vectors that you guys saw specifically that were helping your customers going to get get through this time? >> Yeah well, people always associate Veeam with knowing data protection for the virtual environment but two things really stood out last year as our emerging markets. One was Office365, and I think that's due to the uptake of Microsoft teams. I mean, if you look at the Microsoft results, you can see that people are doing SaaS. And we were very well positioned to take advantage of that. Help customers move towards collaborating online. So that was a huge growth vector for us. And the second one was cloud. We had more data moving to cloud than ever before in Veeam history. And that continues on into 2021. >> You guys, well, yeah, let's talk more about that set SAS piece of your business. You were very early on in terms of SAS data protection. You kind of had to educate the market. People are like, well, why do I need to back up my SAS doesn't the cloud provider do that? And then you sort of you had to educate, so it was you were early and but it's really paid off. Maybe talk about how that trend has benefited some of your customers. >> Yeah. So if you go back four years, we didn't even have data protection for Office365. And over the last four years, we've emerged into the market leader the largest in protection for Office365. And as you say, it was about education. Early on people knew that they needed to protect exchange when they ran it on premises. And when they first went to the cloud there was this expectation of, Hey Microsoft or my provider will do that for me. And very quickly they realized that's not the case and there's still the same threats. It might not be hardware failure, but certainly misconfiguration or deleted items or ransomware in 2021, sorry, 2020 was massive. And so we do data protection for Exchange, for SharePoint online, for one drive, and most recently for Microsoft teams. And so that data protection obviously helps organizations as they adopt Office365 and SaaS technologies. >> I sent him my last breaking analysis. When you look at the ETR data, Veeam has been really steady. You know, some competitors spike up and come down, others, you know, maybe aren't doing so well or the larger established players don't have as much momentum. It just seems like Veeam even though you cross the billion dollar revenue mark, you've been able to keep that spending momentum up. And I think it's, I would observe it's a function of your ability to identify that the waves and ride those waves and anticipate them. We just talked about SAS, talked about virtualization. You were there cloud, we'll talk about that more as well, plus your execution. It seems like since the acquisition by insight you guys have continued to execute. I wonder if you could help the audience understand how do you think about the phases that Veeam has gone through in its ascendancy and where you're headed? >> Yeah. And so I look at it as three things, it's having the right product, but it's not just enough to have the right product, the right product it's the right timing and it's the right execution. So if you think about where Veeam started, it was all in data protection for vSphere, for the hypervisor. And that was right at the time when VMware was taking off and the modernized data center was being virtualized. And so that helped us grow, I'll say into a $600 million company, but then about four years ago, we see the ascendancy of SaaS and specifically Office365. And so, you know, we weren't first to market but I would argue the timing with the best product, with the right execution has turned that into a massive a very significant contribution to our bottom line. And then actually the third wave through 2020 is the adoption of cloud. We moved last year, 242 petabytes into cloud storage and already in the first quarter of 2021, we've moved to 100 petabytes. So there's this massive adoption or migration of data into the cloud. And Veeam has been positioned with the right product, at the right time, with the right execution, to take advantage of that. >> So I wonder if you could help us quantify that IDC data you know, the IDC did a good job quantifying the market. Maybe you could share with us sort of your position there, maybe some of the growth that we're seeing. Can you add some color to that? >> Yeah. We have some very exciting results from the recent IDC report. So in the second half of 2020, we saw 17.9% year over year growth in our revenue. That was actually triple the closest competitor. And our sequential growth was over 21%. So massive growth and all of that is in the second half of the year, 563 million in revenue. So over a billion dollar company. So these aren't just, you know, 20% growth on small numbers. This is on a very significant number. And we see that continuing forward, we'll be announcing some things I'm sure at VMR coming up in a few weeks here, but that trend continues. And again, it's the right product, right time, with the right execution. >> Cloud continues to roll on. You're seeing, you know, solid weather. If you add them all up the big four 30 plus percent growth you're seeing Azure, even higher growth. You know, AWS is huge, Google growing, Google cloud, probably in the 60 to 70% range. So cloud still hot, it's kind of gone mainstream but there's still feels like there's a long way to go there. What's happening in cloud? You guys, again, leaning in, riding that wave. What can you tell us? >> We are leaning in, you're going to see some things coming up at Veeam related to that. But two things I would say, one is we're in the marketplace of all three of the major hyperscalers. So there's a Veeam backup for AWS, Veeam backup for Azure, and a Veeam backup for GCP. And not only is there products that are purpose-built for those clouds in the marketplace, all three of them have integrations to the core Veeam platform. And so this isn't just standalone products while it is in the marketplace, it's integrated into the full strategy around modern data protection for the organizations. And so I am thrilled about some of the things that we're going to be showing in there but we're leaning in very closely with those. We think we're in early days, like I say maybe first, second year, and it will be the next decade as they truly emerge into their dominant position. But even more than cloud if you asked me what I get excited about looking forward certainly cloud adoption is massive, but Kubernetes, that's what's enabling some of the models of both on-prem and cloud hosted. And we're clearly doing some things there as well. >> So I'm glad you brought that up because I think the first time I ever sort of stumbled into a company that was actually doing data protection for containers was out of a VeeamON event. It was one of your exhibitors. And I was like, Hmm, that's an interesting name. And yeah, of course he ended up buying the company. But so, you know, it's funny, right? Because containers have been around forever. And then when you started to see Kubernetes come to for, containers are really ephemeral they really didn't, you know, they weren't persistent but they didn't have state, but that's changing. I wonder if you could give us your perspective as to how you're thinking about that whole space. >> I truly believe that the third big wave of technology transformation, the first was around physical systems and mainframes and things. And then we went into the virtualized era. I think that the third world is not the cloud. I actually think it is containers. Now why containers? Because as you mentioned, Dave, they're a femoral, they're designed for the world of consumption. Everything else is designed for you, install it. And then you build to the high watermark. The whole thing about containers is that they're a femoral and they're built for the consumption model. The other thing about containers is that they're highly portable. So you can run it on premises with OpenShift but then you can move it to GKE or HKS or EKS or any of the big cloud platforms. So it definitely aligns with organization's desire to modernize and to choose the infrastructure of best choice. Now, at the same time, the reason why they haven't taken off I would argue as quickly as they could have is because they've been really complex, in early days the complexity of containers was very difficult, but the model, the platform or ecosystem is evolving, they are becoming more simple. And what is happening is IT operations teams are now considering the developer, their customer and they're building self-service models for the developers to be more productive. So I think of this as platform apps and certainly backup and security is a part of this but it is moving and we're seeing traction actually faster than it would have predicted in early 2020. >> Yeah. We've been putting forth this vision of a layer that abstracts the complexity of the underlying clouds whether it's on prem, across clouds, eventually the edge and containers are linchpin to enabling that. Let's talk about VeeamON 2021. Show us a little leg, give us a preview. >> So we always come with the excitement and we always come with showing a sneak peek of what's to come. So certainly we're going to celebrate some of the big successes. We brought version 11 to market earlier this year that had security capabilities around ransomware type, continuous data protection it at a whole lot of things. So we're going to celebrate some of the products have already recently launched but we're also going to give a sneak peek of what's coming over 2021. Now, if you ask me what that is, we talk an awful lot about cloud. So you should expect to see things around Veeam backup for AWS and Azure and GCP. You should expect to see things around our Kubernetes data protection with our casting Cape 10 product, you should expect to see evolution of capabilities with our SaaS data protection with Office365. So we're going to give a sneak peek of lots of things to come. And as always, we bring lots of innovation to the market. It's not just another checkbox theme has always said, how can we do it differently? How can we do a better? And then we're going to show that to our customers at VeeamON. >> Well, we're always super excited to participate in the Veeam community. We've always had a lot of fun. They're great events. Yes, it's virtual, but you guys always have an interesting spin on things and make it fun. It's May 25th and 26th. It starts at 9:00 AM Eastern time. You go to Veeam V-E-E-A-M.com and sign up, make sure you do that and check out all the content. The Cube of course will be there. I will be interviewing executives, customers, partners. There's tons of content for practitioners. And, you know, as always you guys got the great demos and always a few surprises. So Danny, really looking forward to that and really appreciate your time and the Cube today. >> Thank you, Dave. >> All right. And thank you for watching. This is Dave Vellante for the Cube. Again, May 25th and 26th 9:00 AM. Eastern time, go to veeam.com and sign up. We'll see you there. (upbeat music)

>> Narrator: From around the globe, it's theCUBE! With digital coverage of Dell Technologies World Digital Experience. Brought to you by Dell Technologies. >> Hey, welcome back, everybody. Jeffrey here with theCUBE coming to you from our Palo Altos studios with continuing coverage of the Dell Technology World 2020, The Digital Experience. We've been covering this for over 10 years. It's virtual this year, but still have a lot of great content, a lot of great announcements, and a lot of technology that's being released and talked about. So we're excited. We're going to dig a little deep with our next two guests. First of all we have Paul Perez. He is the SVP and CTO of infrastructure solutions group for Dell technologies. Paul's great to see you. Where are you coming in from today? >> Austin, Texas. >> Austin Texas Awesome. And joining him returning to theCUBE on many times, Kit Colbert. He is the Vice President and CTO of VMware cloud for VMware Kit great to see you as well. Where are you joining us from? >> Yeah, thanks for having me again. I'm here in San Francisco. >> Awesome. So let's jump into it and talk about project Monterrey. You know, it's funny I was at Intel back in the day and all of our passwords used to go out and they became like the product names. It's funny how these little internal project names get a life of their own and this is a big one. And, you know, we had Pat Gelsinger on a few weeks back at VM-ware talking about how significant this is and kind of this evolution within the VMware cloud development. And, you know, it's kind of past Kubernetes and past Tanzu and past project Pacific and now we're into project Monterey. So first off, let's start with Kit, give us kind of the basic overview of what is project Monterey. >> Yep. Yeah, well, you're absolutely right. What we did last year, we announced project Pacific, which was really a fundamental rethinking of VMware cloud foundation with Kubernetes built in right. Kubernetes is still a core to core part of the architecture and the idea there was really to better support modern applications to enable developers and IT operations to come together to work collaboratively toward modernizing a company's application fleet. And as you look at companies starting to be successful, they're starting to run these modern applications. What you found is that the hardware architecture itself needed to evolve, needed to update, to support all the new requirements brought on by these modern apps. And so when you're looking at project Monterey, it's exactly that it's a rethinking of the VMware cloud foundation, underlying hardware architecture. And so you think about a project model or excuse me, product Pacific is really kind of the top half if you will, Kubernetes consumption experiences great for applications. Project Monterey comes along as the second step in that journey, really being the bottom half, fundamentally rethinking the hardware architecture and leveraging SmartNic technology to do that. >> It's pretty interesting, Paul, you know, there's a great shift in this whole move from, you know, infrastructure driving applications to applications driving infrastructure. And then we're seeing, you know, obviously the big move with big data. And again, I think as Pat talked about in his interview with NVIDIA being at the right time, at the right place with the right technology and this, you know, kind of groundswell of GPU, now DPU, you know, helping to move those workloads beyond just kind of where the CPU used to do all the work, this is even, you know, kind of taking it another level you guys are the hardware guys and the solutions guys, as you look at this kind of continuing evolution, both of workloads as well as their infrastructure, how does this fit in? >> Yeah, well, how all this fit it in is modern applications and modern workloads, require a modern infrastructure, right? And a Kit was talking about the infrastructure overlay. That VMware is awesome at that all being, I was coming at this from the emerging data centric workloads, and some of the implications for that, including Phillip and diversity has ever been used for computing. The need to this faculty could be able to combine maybe resources together, as opposed to trying to shoehorn something into a mechanical chassis. And, and if you do segregate, you have to be able to compose on demand. And when you start comparing those, we realized that we were humping it up on our conversion trajectory and we started to team up and partner. >> So it's interesting because part of the composable philosophy, if you will, is to, you know, just to break the components of compute store and networking down to a small pieces as possible, and then you can assemble the right amount when you need it to attack a particular problem. But when you're talking about it's a whole different level of, of bringing the right hardware to bear for the solution. When you talk about SmartNics and you talk about GPS in DPS data processing units, you're now starting to offload and even FPG is that some of these other things offload a lot of work from the core CPU to some of these more appropriate devices that said, how do people make sure that the right application ends up on the right infrastructure? This is that I'm, if it's appropriate using more of a, of a Monterey based solution versus more of a traditional one, depending on the workload, how is that going to get all kind of sorted out and, and routed within the actual cloud infrastructure itself? That was probably back to you a Kit? >> Yeah, sure. So I think it's important to understand kind of what a smart NIC is and how it works in order to answer that question, because what we're really doing is to kind of jump right to it. I guess it's, you know, giving an API into the infrastructure and this is how we're able to do all the things that you just mentioned, but what does a SmartNic? Well, SmartNic is essentially a NIC with a general purpose CPU on it, really a whole CPU complex, in fact, kind of a whole system on server right there on that, on that Nic. And so what that enables is a bunch of great things. So first of all, to your point, we can do a lot of offload. We can actually run ESX. >> SXI on that. Nic, we can take a lot of the functionality that we were doing before on the main server CPU, things like network virtualization, storage, virtualization, security functionality, we can move that all off on the Nic. And it makes a lot of sense because really what we're doing when we're doing all those things is really looking at different sort of IO data paths. You know, as, as the network traffic comes through looking at doing automatic load balancing firewall and for security, delivering storage, perhaps remotely. And so the NIC is actually a perfect place to place all of these functionalities, right? You can not only move it off the core server CPU, but you can get a lot better performance cause you're now right there on the data path. So I think that's the first really key point is that you can get that offload, but then once you have all of that functionality there, then you can start doing some really amazing things. And this ability to expose additional virtual devices onto the PCI bus, this is another great capability of a SmartNic. So when you plug it in physically into the motherboard, it's a Nic, right. You can see that. And when it starts up, it looks like a Nic to the motherboard, to the system, but then via software, you can have it expose additional devices. It could look like a storage controller, or it could look like an FPGA look really any sort of device. And you can do that. Not only for the local machine where it's plugged in, but potentially remote machines as well with the right sorts of interconnects. So what this creates is a whole new sort of cluster architecture. And that's why we're really so excited about it because you got all these great benefits in terms of offload performance improvement, security improvement, but then you get this great ability to get very dynamic, just aggregation. And composability. >> So Kit, how much of it is the routing of the workload to the right place, right? That's got the right amount of say, it's a super data intensive once a lot of GPU versus actually better executing the operation. Once it gets to the place where it's going to run. >> Yeah. It's a bit of a combination actually. So the powerful thing about it is that in a traditional world, where are you want an application? You know, the server that you run it, that app can really only use the local devices there. Yes, there is some newer stuff like NVMe over fabric where you can remote certain types of storage capabilities, but there's no real general purpose solution to that. Yet that generally speaking, that application is limited to the local hardware devices. Well, the great part about what we're doing with Monterey and with the SmartNic technology is that we can now dynamically remote or expose remote devices from other hosts. And so wherever that application runs matters a little bit less now, in a sense that we can give it the right sorts of hardware it needs in order to operate. You know, if you have, let's say a few machines with a FPGA is normally if you have needed that a Fiji had to run locally, but now can actually run remotely and you can better balance out things like compute requirements versus, you know, specialized Accella Requirements. And so I think what we're looking at is, especially in the context of VMware cloud foundation, is bringing that all together. We can look through the scheduling, figure out what the best host for it to let run on based on all these considerations. And that's it, we are missing, let's say a physical device that needs, well, we can remote that and sort of a deal at that, a missing gap there. >> Right, right. That's great. Paul, I want to go back to you. You just talked about, you know, kind of coming at this problem from a data centric point of view, and you're running infrastructure and you're the poor guy that's got to catch all the ASAM Todd i the giant exponential curves up into the right on the data flow and the data quantity. How is that impacting the way you think about infrastructure and designing infrastructure and changing infrastructure and kind of future proofing infrastructure when, you know, just around the corners, 5g and IOT and, Oh, you ain't seen nothing yet in terms of the data flow. >> Yeah. So I come at this from two angles. One that we talked about briefly is the evolution of the workloads themselves. The other angle, which is just as important is the operating model that customers are wanting to evolve to. And in that context, we thought a lot about how cloud, if an operating model, not necessarily a destination, right? So what I, and when way we laid out, what Kit was talking about is that in data center computing, you have operational control and data plane. Where did data plane run from the optimized solution? GPU's, PGA's, offload engines? And the control plane can run on stuff like it could be safe and are then I'm thinking about SmartNic is back codes have arm boards, so you can implement some data plane and some control plane, and they can also be the gateway. Cause, you know, you've talked about composability, what has been done up until now is early for sprint, right? We're carving out software defined infrastructure out of predefined hardware blocks. What we're talking about is making, you know, a GPUs residents in our fabric consistent memory residence of a fabric NVME over fabric and being able to tile computing topologies on demand to realize and applications intent. And we call that intent based computer. >> Right. Well, just, and to follow up on that too, as the, you know, cloud is an attitude or as an operating model or whatever you want to say, you know, not necessarily a place or a thing has changed. I mean, how has that had to get you to shift your infrastructure approach? Cause you've got to support, you know, old school, good old data centers. We've got, you know, some stuff running on public clouds. And then now you've got hybrid clouds and you have multi clouds, right. So we know, you know, you're out in the field that people have workloads running all over the place. So, but they got to control it and they've got compliance issues and they got a whole bunch of other stuff. So from your point of view, as you see the desire for more flexibility, the desire for more infrastructure centric support for the workloads that I want to buy and the increasing amount of those that are more data centric, as we move to hopefully more data driven decisions, how's it changed your strategy. And what does it mean to partner and have a real nice formal relationship with the folks over at VMR or excuse me, VMware? >> Well, I think that regardless of how big a company is, it's always prudent. As I say, when I approached my job, right, architecture is about balance and efficiency and it's about reducing contention. And we like to leverage industry R and D, especially in cases where one plus one equals two, right? In the case of, project Monterey for example, one of the collaboration areas is in improving the security model and being able to provide more air gap isolation, especially when you consider that enterprise wants to behave as service providers is concerned or to their companies. And therefore this is important. And because of that, I think that there's a lot of things that we can do between VMware and Dell lending hardware, and for example, assets like NSX and a different way that will give customers higher scalability and performance and more control, you know, beyond VMware and Dell EMC i think that we're partnering with obviously the SmartNic vendors, cause they're smart interprets and the gateway to those that are clean. They're not really analysis, but also companies that are innovating in data center computing, for example, NVIDIA. >> Right. Right. >> And I think that what we're seeing is while, you know, ambivalent has done an awesome job of targeting their capability, AIML type of workloads, what we realized this applications today depend on platform services, right. And up until recently, those platform services have been debases messaging PI active directory, moving forward. I think that within five years, most applications will depend on some form of AIML service. So I can see an opportunity to go mainstream with this >> Right. Right. Well, it's great. You bring up in NVIDIA and I'm just going to quote one of Pat's lines from, from his interview. And he talked about Jensen from NVIDIA actually telling Pat, Hey Pat, I think you're thinking too small. I love it. You know, let's do the entire AI landscape together and make AI and enterprise class workloads from being more in TANZU, you know, first class citizens. So I, I love the fact, you know, Pat's been around a long time industry veteran, but still, kind of accepted the challenge from Jensen to really elevate AI and machine learning via GPS to first class citizen status. And the other piece, obviously this coming up is ed. So I, you know, it's a nice shot of a, of adrenaline and Kit I wonder if you can share your thoughts on that, you know, in kind of saying, Hey, let's take it up a notch, a significant notch by leveraging a whole another class of compute power within these solutions. >> Yeah. So, I mean, I'll, I'll go real quick. I mean, I, it's funny cause like not many people really ever challenged Pat to say he doesn't think big enough, cause usually he's always blown us away with what he wants to do next, but I think it's, I think it's a, you know, it's good though. It's good to keep us on our toes and push us a bit. Right. All of us within the industry. And so I think a couple of things you have to go back to your previous point around this is like cloud as a model. I think that's exactly what we're doing is trying to bring cloud as a model, even on prem. And it's a lot of these kinds of core hardware architecture capabilities that we do enable the biggest one in my mind, just being enabling an API into the hardware. So the applications can get what they need. And going back to Paul's point, this notion of these AI and ML services, you know, they have to be rooted in the hardware, right? We know that in order for them to be performing for them to run, to support what our customers want to do, we need to have that deeply integrated into the hardware all the way up. But that also becomes a software problem. Once we got the hardware solved, once we get that architecture locked in, how can we as easy as possible, as seamlessly as possible, deliver all those great capabilities, software capabilities. And so, you know, you look at what we've done with the NVIDIA partnership, things around the NVIDIA GPU cloud, and really bringing that to bear. And so then you start having this, this really great full stack integration all the way from the hardware, very powerful hardware architecture that, you know, again, driven by API, the infrastructure software on top of that. And then all these great AI tools, tool chains, capabilities with things like the NVIDIA NGC. So that's really, I think where the vision's going. And we got a lot of the basic parts there, but obviously a lot more work to do going forward. >> I would say that, you know, initially we had dream, we wanted this journey to happen very fast and initially we're baiting infrastructure services. So there's no contention with applications, customer full workload applications, and also in enabling how productive it is to get the data over time, have to have sufficient control over a wide area. there's an opportunity to do something like that to make sure that you think about the probation from bare metal vms (conversation fading) environments are way more dynamic and more spreadable. Right. And they expect hardware. It could be as dynamic and compostable to suit their needs. And I think that's where we're headed. >> Right. So let me, so let me throw a monkey wrench in, in terms of security, right? So now this thing is much more flexible. It's much more software defined. How is that changing the way you think about security and basic security and throughout the stack go to you first, Paul. >> Yeah. Yeah. So like it's actually enables a lot of really powerful things. So first of all, from an architecture and implementation standpoint, you have to understand that we're really running two copies of VXI on each physical server. Now we've got the one running on the X86 side, just like normal, and now we've got one running on the SmartNIC as well. And so, as I mentioned before, we can move a lot of that networking security, et cetera, capabilities off to the SmartNic. And so what does this going toward as what we call a zero trust security architecture, this notion of having really defense in depth at many different layers and many different areas while obviously the hypervisor and the virtualization layer provides a really strong level of security. even when we were doing it completely on the X86 side, now that we're running on a SmartNic that's additional defense in depth because the X86 ESX doesn't really know it doesn't have direct access to the ESX. I run it on the SmartNic So the ESXI running on the SmartNic, it can be this kind of more well defended position. Moreover, now that we're running the security functionality is directly on the data path. In the SmartNic. We can do a lot more with that. We can run a lot deeper analysis, can talk about AI and ML, bring a lot of those capabilities to bear here to actually improve the security profile. And so finally I'd say this notion of kind of distributed security as well, that you don't, that's what I want to have these individual points on the physical network, but I actually distribute the security policies and enforcement to everywhere where a server's running, I everywhere where a SmartNic is, and that's what we can do here. And so it really takes a lot of what we've been doing with things like NSX, but now connects it much more deeply into hardware, allowing for better performance and security. >> A common attack method is to intercept the boot of the server physical server. And, you know, I'm actually very proud of our team because the us national security agency recently published a white paper on best practices for secure group. And they take our implementation across and secure boot as the reference standard. >> Right? Moving forward, imagine an environment that even if you gain control of the server, that doesn't allow you to change bios or update it. So we're moving the root of trust to be in that air gap, domain that Kit talked about. And that gives us a way more capability for zero across the operations. Right. >> Right, right. Paul, I got to ask you, I had Sam bird on the other day, your peer who runs the P the PC group. >> I'm telling you, he is not a peer He's a little bit higher up. >> Higher than you. Okay. Well, I just promoted you so that's okay. But, but it's really interesting. Cause we were talking about, it was literally like 10 years ago, the death of the PC article that came out when, when Apple introduced the tablet and, you know, he's talked about what phenomenal devices that PCs continue to be and evolve. And then it's just funny how, now that dovetails with this whole edge conversation, when people don't necessarily think of a PC as a piece of the edge, but it is a great piece of the edge. So from an infrastructure point of view, you know, to have that kind of presence within the PCs and kind of potentially that intelligence and again, this kind of whole another layer of interaction with the users and an opportunity to define how they work with applications and prioritize applications. I just wonder if you can share how nice it is to have that kind of in your back pocket to know that you've got a whole another, you know, kind of layer of visibility and connection with the users beyond just simply the infrastructure. >> So I actually, within the company we've developed within a framework that we call four edge multicloud, right. Core data centers and enterprise edge IOP, and then off premise. it is a multicloud world. And, and within that framework, we consider our client solutions group products to be part of the yes. And we see a lot of benefit. I'll give an example about a healthcare company that wants to develop real time analytics, regardless of whether it's on a laptop or maybe move into a backend data center, right? Whether it's at a hospital clinic or a patient's home, it gives us a broader innovation surface and a little sooner to get actually the, a lot of people may not appreciate that the most important function within Centene, I considered to be the experienced design thing. So being able to design user flows and customer experience looked at all of use is a variable. >> That's great. That's great. So we're running out of time. I want to give you each the last word you both been in this business for a long time. This is brand new stuff, right? Container aren't new, Kubernetes is still relatively new and exciting. And project Pacific was relatively new and now project Monterrey, but you guys are, you know, you're, multi-decade veterans in this thing. as you look forward, what does this moment represent compared to some of the other shifts that we've seen in IT? You know, generally, but you know, kind of consumption of compute and you know, kind of this application centric world that just continues to grow. I mean, as a software is eating everything, we know it, you guys live it every day. What is, where are we now? And you know, what do you see? Maybe I don't want to go too far out, but the next couple of years within the Monterey framework. And then if you have something else, generally you can add as well. Paul, why don't we start with you? >> Well, I think on a personal level, ingenuity aside I have a long string of very successful endeavor in my career when I came back couple years ago, one of the things that I told Jeff, our vice chairman is a big canvas and I intend to paint my masterpiece and I think, you know, Monterey and what we're doing in support of Monterey is also part of that. I think that you will see, you will see our initial approach focus on, on coordinator. I can tell you that you know how to express it. And we know also how to express even in a multicloud world. So I'm very excited and I know that I'm going to be busy for the next few years. (giggling) >> A Kit to you. >> Yeah. So, you know, it's funny you talk to people about SmartNic and especially those folks that have been around for awhile. And what you hear is like, Hey, you know, people were talking about SmartNic 10 years ago, 20 years ago, that sort of thing. Then they kind of died off. So what's different now. And I think the big difference now is a few things, you know, first of all, it's the core technology of sworn and has dramatically improved. We now have a powerful software infrastructure layer that can take advantage of it. And, you know, finally, you know, applications have a really strong need for it, again, with all the things we've talked about, the need for offload. So I think there's some real sort of fundamental shifts that have happened over the past. Let's say decade that have driven the need for this. And so this is something that I believe strongly as here to last, you know, both ourselves at VMware, as well as Dell are making a huge bet on this, but not only that, and not only is it good for customers, it's actually good for all the operators as well. So whether this is part of VCF that we deliver to customers for them to operate themselves, just like they always have, or if it's part of our own cloud solutions, things like being more caught on Dell, this is going to be a core part about how we deliver our cloud services and infrastructure going forward. So we really do believe this is kind of a foundational transition that's taking place. And as we talked about, there is a ton of additional innovation that's going to come out of it. So I'm really, really excited for the next few years, because I think we're just at the start of a very long and very exciting journey. >> Awesome. Well, thank you both for spending some time with us and sharing the story and congratulations. I'm sure a whole bunch of work for, from a whole bunch of people in, into getting to getting where you are now. And, and as you said, Paul, the work is barely just begun. So thanks again. All right. He's Paul's He's Kit. I'm Jeff. You're watching the cubes, continuing coverage of Dell tech world 2020, that digital experience. Thanks for watching. We'll see you next time. (Upbeat music)

>>LA from Las Vegas. It's the cube hovering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Good morning. Welcome back to the cubes coverage of AWS reinvent 19 from Las Vegas. Lisa Martin with Stu Miniman. Stu, this is day three of two sets of coverage for the cube and this expo hall has not gotten any less busy. Tons of people still here. >>Lisa, 65,000 I'm sure the throats are a little bit raw. The feet are tired, but there's so much good information and yeah, excited to dig in with some more of our guests. >>Yeah, so much good information that we have. Dell EMC back. Yes, we had them yesterday. There's more to talk about today. Please welcome a couple of guests. We've got Nick Brackney, senior consultant cloud at product marketing. Welcome to the queue of your first time. Happy to have you and Bob Ganley. I feel like it's been about 18 hours, maybe 20 senior consultant cloud product marketing. Welcome back. Thank you. So guys, lots of news like AWS news shot out of the cannon. One of the things though that you can't help but talk about at any event is multi-cloud organizations. The CIO is tell us on the cube all the time. We've inherited the multi-cloud. Sometimes Dave Valentic calls it a crime scene, right? For various reasons. It's not necessarily strategic, but it is becoming a reality. Talk to us about what Dell EMC is seeing. What your customer base with respect. Sorry, that's for Nick multi-cloud. Why, what are you seeing? How are you helping customers navigate it? >>Yeah, I think that, uh, there's a lot of diversity in needs for their customer base and it's really challenging for any one vendor to provide all of the solutions that they need. And so that's, that's where it's really about being able to offer them choices and giving them support to be in the right cloud for their workload. And so as we talk about this idea of cloud in the state, you said, you know, if, if they're in one or more clouds, it's really important that they have consistency across those clouds because otherwise the crime scene turns into something that's a, a management headache for everyone. >>Yeah. Nick, I wonder if we could tease that out a little bit because consistency's important. You know, when I think about, you know, multi-vendor in the data center for years, you know, VMware did a pretty good job of abstracting a certain layer. I'm a little worried that we're trying to recreate some of the silos of the past, you know, in giant cloud environment. So how do we make sure we learn from the past? And because skill sets are very different, the products underneath are very different. So while there might be certain point applications that I might need, the message here at Amazon is, you know, they've got the broadest and deepest environments they are. If you're doing multi-cloud, they're gum. Do one of them. So, you know, bring us inside your customers and how we make sure that we don't end up with that crime scene that Dave talked about and uh, all the pieces. >>I think first off, you can't look at technology in a vacuum. You really have to be thinking about people and processes. What can a business actually consume? You know, we run into a lot of talking about containers and containers is a great path forward to go cloud native. And that's really easy if you're starting from scratch. If you have a thousand apps though that currently sit in on premises, it's really challenging to make that move. And you know, which ones do I replatform, which ones do I lift and shift. And so I think that's one of the things we're doing with, you know, I work with VMR cloud foundation is we have one platform that can handle both virtualization and containers so you can have a orderly progression towards cloud native. >>What about the people part of it? I think we talked about this a little bit yesterday, Bob, and that's actually something that has come up in a lot of our conversations is it's not just about the technology for many reasons. How do you help the people? Because part of that's cultural and that's a really a challenging change to undergo. >>You know, I think you have to meet them where they are. Right? And that's, I read an article and someone said that the, uh, for, for analytics that most CEOs still are using Excel. There are all these other really advanced analytics things, but that's what they're most comfortable with. So when we look at the, the fact that all these organizations have really standardized on VMware, that's a really easy move for them to make because you can take your existing skill sets, you know, the, the investments you've made in the software defined data center and now you can extend them to the cloud and you can take the existing best practices that you have in your data center and you can move those to the cloud. So you're not surprised when you get there with all of the configurations and all the management, all the security challenges. >>And I want to add to that actually because I think one of the underlooked aspects of this whole thing is the idea that, like you said, if you have silos of operation, then you've got challenges. And so I like to say security for example, begins with who are you, what do you have access to? So if you have different ways of doing that on prem than in cloud, you're by definition at a riskier state. Same thing for compliance. Same thing for automation. If you've got multiple different tools to use, you know, it's just harder to do. So I think, you know, the consistency thing is very, very important. >>Excellent. Bob, you, you're the straight man for my next question here because, uh, if you listen to our hosts here of AWS, they don't use that multi-cloud word yet. The biggest conversation of discussion that I've had across with AWS with customers and uh, you know, with the ecosystem here has been outposts and absolutely Amazon might not even use the hybrid term, but absolutely is that extension between inconsistency between the public cloud and in my data center. So I'd like to hear, you know, Dell Dell's perspective outposts of course, hugely important. Sure. >>You know, I think it'd be really easy or almost trite to say that, Oh, you know, Amazon is justifying the fact that there's on prime infrastructure, right? I mean, Andy comes out and says 97% of it revenue still on prem. I think, you know, everybody understands that. I think it comes down to the following investment protection, trust and choice and investment protection is about organizations today have a huge investment in the way they're doing business now and clearly VM where's the lion's share of on-prem virtualization today? So it makes sense to extend that investment toward hybrid cloud and there's a very natural path to do that from the perspective of trust. When you look at on prem infrastructure, who better to work with in Dell EMC? I mean we're number one in HCI, number one in servers, number one in storage, we know how to do on prem and now with Dell technologies cloud we're extending that to a very consistent hybrid cloud model with AWS. >>Uh, and the third thing is, you know, choice, which is outposts is interesting because it's a completely managed service. Some organizations want that managed service. What we bring to the table with Dell technologies cloud is either Delta technologies, cloud platform, which is you manage it the way you normally manage it or the VMware cloud on Dell EMC, which is a completely managed service. So we have the data center as a service offering. We have the you manage it mr customer, which aligns with the way they're doing business. And I think last but not least is this whole idea of cloud economics and this concept of allowing people to pay for things by the drink, which is something that, you know, we're helping organizations do with their on premise. >>Bob actually just want to make sure I understand what you're talk about that managed service, the outpost solutions with VMware's expected in 2020. Does that then roll under the Dell technology cloud offering on E on VMware? I just want to make sure how I ended, how that is expected to. >>Yeah. So no it doesn't because that's essentially um, the Amazon hardware with the VMware stack on it on premises. And what we're offering for a data center as a service solution is a VMware cloud on Dell EMC, formerly known as project dimension, which is, you know, the trusted Dell EMC hardware with the verified VMware stack very tightly integrated. So it's cloud like operations on premise. >>Yeah. Yeah. So similar consumption models, similar design points, but different hardware stacks, >>consumption models, which is I think, yeah, I was going to say one of the other things you have to look at too when you're thinking about why now, why is this happening? And I think it's because people are starting to realize something that we've been saying for a long time, which is that cloud isn't a place, it's an operating model. And so by being able to bring that into the data center, what you're doing is you're extending it to more workloads. And I think that's great for customers. That's what they want and that's what we're trying to build ourselves. >>Bob, a question for you, some of the aligning with Stewart's question this week since the announcement of outpost, what Amazon is doing announced last year coming to fruition now, what are some of the things that you're hearing around the event from Dell EMC customers? Are they, are they understanding what that opportunity is for them? Yeah, >>we've been doing this for a while, right? So, um, VMware cloud on Dell EMC has been general availability since VM world of 2019 we announced it in 2018 we've got tons of customers that are very interested, thousands of customers running, um, within VMware cloud on AWS and now looking at this data center as a service solution, as an extension to that on prem. The thing that's cool about it is that they don't have to touch the hardware, they don't have to touch the software. It all gets managed remotely, but it's used just like on prem infrastructure. Right. So it's a great solution. >>Yup. Nica what one of the things that always gets talked about here is there's a big shift from apex to AFEX, uh, at this show. Uh, one of the things that surprises me as customers get all excited, Amazon comes out with new feature and they said, Hey, we're going to give you insight and we're going to save you 30% over what you were paying last year. Just because you probably weren't configuring it crate in your world. If you came to a customer and said, Oh, Hey, we oversold you stuff in this there, they'd probably be walking you out the door. But Dell has been doing some interesting things, going more cloud native with the economic model. Maybe speak a little bit to that. >>I have, I mean, I think it's something that's great. You know, cloud economics makes it easy to get going with a, with a small investment and scale out and, and, uh, move more quickly when be more agile. And so what we wanted to do was bring that same agility and ability to kind of innovate, uh, and, and not have the cost be a barrier by then extending that across our portfolio at Dell technologies on demand. So that's really about, you know, whether you want to do metered usage, whether you want a subscription or whether, you know, I want to, uh, you know, purchase hardware upfront, wait till I'm going to hit the switch and turn it on, and then I'll start getting built. But then I have the idea, the same thing as cloud, where it's, it's this idea of unlimited capacity at your fingertips, right? It's, it's not actually unlimited. We sometimes see that some, even some clouds run out of space, but it's, it's, you're able to move quicker. You don't have to wait those three, four, six weeks for the hardware to come in because it's already sitting there. >>Well, in legacy businesses don't have that much time because there are invariably in every industry, there is a born in the cloud company that is moving faster, has a different mindset and it's probably chomping at the bit right behind them. Take over that business. If that legacy enterprise isn't able to work fast enough. >>Absolutely. But what really makes us really interesting is that we're still offering you more choices, right? So the thing is, is there are certain workloads that break cloud economics, whether it's massive storage that, you know, I always tell people, you spin up and spin down VMs, you never delete data because that is super valuable to your business or you know, uh, we find certain workloads that are steady state, right? You know, cloud is really great when you're scaling up. Scaling down, when you're, you know, flipping off the switch of the lights. When you leave the room, if you leave it on all the time it can add up. And so it's really nice not just about bringing the cloud economics into the data center, but by bringing that consistent experience across both the data center and your cloud is now you can let the business requirements and the application requirements determine what the best place to put the workload is. Yeah. >>So, sorry. So Bob won, one of the big themes at this show is transformation. You've got it on your hat. When we talk about the cloud native space, uh, we were said there were the cloud native companies, they were born in the cloud. We said there are many companies that are becoming born again in the cloud. You know, bring us inside a little bit. What you're seeing, just the discussion point is you just can't incrementally get there. It requires, you know, executive management, uh, involvement and you know, it is a radical change in the way you build your application. And that has a ripple effect through everything that you do. >>Yeah, absolutely does. When you think about it, there is an evolution happening in application architectures and that evolution is from physical to virtual to now infrastructure is a service to add the additional efficiency and automation orchestration. Now container as a service, as we see organizations moving toward cloud native and containers to platform as a service and function as a service. And when you think about that, organizations need to bring their existing investments in virtualized applications forward as they're adding on containers as they're looking at this next generation cloud native. So we believe the right solution is to preserve that investment and bring that forward. So we've been adding cloud native, um, you know, standard upstream Kubernetes distribution to, uh, our Dell technologies cloud platform and that allows organizations to extend our investments. So that's one thing is that architectural evolution. The second thing is what I call the operational evolution that's happening as well. And the operational evolution is, you know, cloud has revolutionized the way people look at it because it's so easy to use. So what we're doing is bringing that operational evolution to the data center as well, where we're completely integrating the on prem infrastructure so that you can life cycle management in an automated fashion. And we're doing that both for infrastructure as a service and now for container as a service for Cooper daddy's. So we're excited about both the architectural and operational evolution. >>Well, and Nick, I'd be curious your viewpoint of this show, it's really a interesting mix of you've got enterprise, you've got developers, you've got everything in between and personas. So brick is inside something for the conversations you're having, how you worked with some of those different personas. >>I think it's really interesting because the shift towards containers means a shift dev ops. And when you're looking at that, uh, I think what's lost in the way is when I went and talked to my friends who spent a lot of time as it ops folks, they think very differently than developers. When something goes wrong, their immediate reaction is, please roll it back. Whereas a developer, thanks, hold on, let me add some more code to this and we'll fix it that way. And so I think the challenge right now is, is the burden is shifting and it's shifting towards developers. And one of the things I think with our solution and you know, hopefully, you know, project Pacific with VMware, what's coming down the path where they're, they're injecting, you know, containers into vSphere, all of that. Hopefully what's going to come out of that is, is you're going to make the job a little bit easier for developers because when you start doing dev ops or God forbid dev sec ops, and you're burdening these people with all these responsibilities, how are they still gonna innovate? That's really a big challenge. And I think when I'm at a show like this, I hear it from both sides. So it's really fascinating to hear the different perspectives and they're not necessarily aligned. >>Yeah, it's just that the, the quick note on that, in order's keynote, he puts out the giant thing on the board. You know, everything fails all the time. That's not what the enterprise was used to in the old world. And that's what that transformation is a little bit uncomfortable for many of them. >>And speaking of being uncomfortable, you know, Bobby talked about cloud, especially next gen cloud brings up opportunities, a lot of opportunity, but with it comes architectural change as you mentioned, uh, operational change but cultural change. Final questions and thoughts, Nick, from you, what are in the respect of the opportunity, but those changes, what are some of the biggest mistakes that you're seeing enterprises make and how can they avoid those? >>Yeah, so I mean, the first thing is I think that people have been sweeping mandates. When people say cloud first as a mandate, I think what they're, what they're missing in that is there's so much exuberance. They're not thinking through what is the workload need, what does the business need? And cloud should absolutely be a big part of anyone's strategy moving forward. But you need to be thoughtful about what you do. And, and uh, Pat Pat Gelsinger talks about there's three laws, the laws of physics, the laws of economics and then the laws of the land. You know, I always joke around, we still haven't managed to find a way to travel faster than the speed of light. So latency is always an issue. And then the second thing is, uh, around the shared responsibility model. You know, when you move to infrastructure as a service, people think, wow, I, I, they're taking care of everything. This is super easy. And what they haven't always figured out is that they're still on the hook for a lot of things from a security perspective, from a manageability perspective, from a data protection perspective. And if you fail to actually address those, then you might run into some problems down the line. >>Guys, good stuff. Always so much to talk about. Thank you both for joining Stu and me on the program today. Bob, I probably see again at the airport tonight. We appreciate you joining soon and stick around on the QTC is later today. Andy Jassy AWS CEO is going to be on, but for now, I'm Lisa Martin for. Thanks for watching the cube.

>>Locke from Las Vegas. It's the cube covering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Well, welcome back to the cube live here in Las Vegas for AWS reinvent 2019 it's the cubes seventh year, eighth year of reinvent. We've been there almost from the beginning. I'm John ferry with Dave Volante extracting the signal from the noise. The two great guests here chew senior leaders, VMware, auntie that were Sanjay Poonan, COO of VMware cube alumni, Mike Clayville, vice president of worldwide commercial sales and business development for AWS guys. You're the senior leaders out on the field making things happen. I got to say the AWS VMware relationship, which we covered a couple of years ago when Gelsinger and Jassy were doing the little love Fest, they're in San Francisco. A lot of people were skeptical. This show here, we're hearing things like, that's my Superbowl moment. Things are working great. Cloud is scaling, so congratulations and welcome to the cube. Good to see you. Thank you. Yeah. All right, so let's get to the relationship. >>Talk about you guys' relationship and how it's morphed into such a success. We're hearing great feedback. The numbers on the research at day's been digging into shows. Customer spend is up. Is that the wave of cloud? Is that the integration? Sanjay, what's going on? Give us, gives you up to, Oh, I think we're delighted. You know Mike obviously and I have been friends for years. He's had some connections with VMware in his past that certainly helped in setting up this partnerships. So we're grateful to Mike and Andy and the team for that and it's, you know, two and a half to three years now since we announced it. Tremendous amount of customer interest. Listen, you know we said at the beginning of this, when you take sort of the King of the public cloud and the King, the private cloud together and don't force customers to say these have to be separate doors, you're going to do them both together. >>Customers liked that message and what we've been really doing over the course of the last 1218 months is perfecting use cases for this platform. I think to us, the key word is migrations. Cloud migrations. When people are moving their workloads off an app off VMware vSphere or cloud foundation, we want this to be the best place for it to land. We are McCloud in AWS for migration opportunity and anything short of that refactoring app would we, you know, not something that would be a good use of people's time and money because they should be then modernizing with all the wonderful services that Amazon's built, one they've migrated. So we've really perfected our message in the course of the last six, 12 months to two M's, migrate and modernize, migrate and modernize. So we could migrate you into this Avenue and then modernize with a set of container and other services. So that messes working. We put on stage at VMworld and there are many of them here, two big Amazon customers, VMware cloud, Amazon, Freddie Mac and IHS market. And they were telling our tens of thousands customers at those shows and similarly many of them here, that that's the best option to be able to do things. >>Yeah, it's great. It's great by the way, because it's a frictionless migration, right? So you've got a platform that same code base working on pram, same cloud based and cloud creating a seamless integration between the two platforms. We're finding customers very in enthralled by that. I say they say they love that because it's less disruptive for them. Yeah. But at the same time they say, but eventually I want to change my operating model to really drive profits to my bottom line. So could you talk a little bit about what that journey looks like? And I'm really interested in longer term Sanjay, how you play in that. I look Mike, sorry. So the first thing I'd say that one of the real reasons I love it is because they've got a big investment today and that investment is in skills. That investment is in operational processes. That investment is in licensing and all of that comes along with them on their journey. Whether it's a migration journey or a migration to modernize journey, it's working. So when you're talking about the bottom line, like you are, this is a great play for that bottom line. >>Yeah, I know. And I'd say, listen, from our perspective, we want to take a Freddie Mac. When they spoke at VMworld, they have I think 800 applications, 50 of whom are SAS and the other 750 are custom built, deep Lee virtualized and they're going to move all of them over the course of the next 12 months. I fell off my chair when I, when I heard how fast they planned to do it. IHS market has very a variety of very spread accounts and Amazon. Now we're going to help them move a lot of their workloads there. Once they're there, we want them to then use the tools that Amazon's bill. I'll give you two examples, maybe some of their backup tools into S3 CloudWatch some of their analytical monitoring types of tools. So there's going to be, and then of course AI database services and the best place once you've moved it there is to make sure that that migrated stack is stable. >>You have the best of the VMware tools, V center, V motion, all you know and the best of the Amazon tools. So when people start to see this, I think the myth of Sarah's saying refactor and replatform that application, which is in essence like taking a home. Okay. And having to destroy the home and completely rebuild it. Right? And that's just a meal, a waste of money and time when you could migrate it and then modernize it. So we just need to get that story well understood. Get our, you know, I, I mean Amazon probably has a few million customers. We have a half a million customers. If all of those customers can hear the story and beginning their journey with us, I think we will tip this in a way. Starting >>to tip, to get the, back to the point of your question as well. Look, our two companies have been engineering these solutions together deeply. So this just isn't a paper arbiters. Yeah. This is an engineering partnership that started years ago and what that means is as customers migrate to a beam ware on AWS, now they have access to over 175 AWS services, can it, right. Significant native access to a broad range of services that they can continue to innovate, identify new business models and it all seamlessly integrates back into a single platform. >>Yeah. One of the things I always said when I talked to Andy and Amazon folks is that the competitive advantage of the businesses scale and also the new announcements that come in. So one of the things we heard yesterday from a customer, uh, one of your joint customers was, you know, I asked him about outpost, which you guys now are going to ship in 2020, which was announced you already got native outpost, general availability. He goes, look it, we'd love VMware. We could probably look at VMware and kind of poke at things, maybe do things differently. But frankly I don't want to have to rearchitect my stack because I want the data science stuff from studio a Sage maker studio because the demand for the business results is coming in from the new capabilities. So this seems to be the trend where the migration is just lift and shifts, keep the operational flow going, foundation and the business value over the top is whatever you guys can bring in from an NSX and then the apps. Is this something that you're hearing more of? Because this points to all of us, the discussion around the platform is irrelevant because the business value is coming in from the data. Yeah. What, how do you guys react to that? Is that something that you're hearing? >>Well, the first thing I would say is the, you know, the pundents will tell you that by 2020 90% of customers will be in a hybrid model. So you know, the migration is, you talk about is in play and, and arguably 2020 will be the year of the most migrations in history if those pendants are correct. Right. And so that gets a lot of customers in the mode of being able to leverage a BMC and then be able to take advantage of all the, you know, the extensive amount of data services we have available. But if you ask me, where do you know, what are the, what are the big reasons driving the migration? It's traditional economics, right? It's, I'm, I don't need to be a capital expense heavy organization anymore. Why do I have to build data centers? Why do I have to extend data centers? Why am I building, why am I buying air conditioning that's not differentiating my business? Right? All of those things are creating drivers for this migration. Now as you begin the migration, that's when you begin to see, wow, imagine the simplicity of the same code base, same operational processes. I don't have to retrain a bunch of people just moving it right onto the cloud and now let me really dig in to the new services available from AWS. Look for those new business. >>I suppose having that focus of differentiation and VMware and saying, let's keep it and expand it to the edge and do things like that. And yeah, absolutely. I mean, listen, I think they had Cerner yesterday on stage and I think it was interesting to hear the CEO, they're talking about three verbs, migrated, modernize, and innovate. I mean that's the thing thing. So I think when you, when you start to see that becoming a very active dialogue, not just from CEOs but from CEOs and boards that are saying, listen, you know, part of the reason we want to move to the cloud is an increase our bruiser agility. It's not just a cost reduction. Yeah. I mean I don't need to have 80 data centers have, I could have half a zero a one or two so that I get, but beyond cost, if we can kind of get agility going faster. >>And for many of these folks, I think when I sit down in their customer advisory councils, when I, when we are advising them, they're all trying to serve their customers better, get data to become sort of the oil of their ability to make decisions better and AI and analytics sort of help in that area. And then of course, getting more efficient in lowering costs and risks. And I think when you're doing it, the scale that both of us have experienced doing, we understand data centers really well. We've software defined them for 20 years. These guys understand cloud probably better than anybody else. When we bring that sort of scale together and as Mike pointed out, a deeply engineered solution, we have a, we have a significant R and D investment in this and we're doing that jointly with them. When I often sit down in our joint QPRs, I joke about it with Mike and Andy and others, I sometimes forget, is that a VMware person speaking or an Amazon person because there's finishing each other's sentences. So there's a lot of that joint trust they've built and we just now have to keep showing that this is a solution that's innovating every three months because you're running on monthly and quarterly cycles and get large customers. I mean to us now, it's less so about the noise of getting everybody on stage. It's much more of a showing customer attraction. >>So I wonder if we could talk about one of the other big problems in the industry. Mikey talked about deep engineering and you guys are, you know, you're never done right, but you've solved that problem or solving that problem of making it easy for customers, VM-ware customers to run in the cloud. There's another big problem it could be concerned about customers is security and there seems to be somewhat of a dissonance. And I wonder if you could share with us maybe some of the thinking around this. So Steven Schmidt for instance, who is Amazon CSO says, Hey, the state of security in the cloud is, is great. And it is, it's, you know, you don't have a lot of technical debt coming in to the game. Pat Gelsinger is saying, Hey, you know, security, the state of security in my world is broken. So what's the conversation with you guys in terms of addressing that big concern on the minds of CEOs? And >>yeah, I'll start and they might feel free to add them. Thomas, I mean we've talked to Steve, we're like Steve, he's a very, he's a, he's an innovator and a thought leader in security. We're coming at it from a place that's complimentary to some of the point of views of, of Amazon. Um, and I shared this at our last VM world discussion. When we look at the, the, the control points of security where traditional security spent network, endpoint, identity, cloud and analytics, those are five, four control points where a lot of security is spent inside the $50 billion security market. We picked two that we're going to do really well. The network and endpoint NSX has been doing really well there. Now granted a bunch of that is on prem. It's replacing or complimenting Cisco, Palo Alto, checkpoint fire, a flash for a railroad bed, F five NetScaler spent. >>And now that business 13,000 customers in has become a 40, 50% of its security use cases. The network we just acquired, carbon black aide runs on the Amazon platform. It runs, uh, a next gen endpoint security. That's, you know, an evolution from the old world of Symantec, McAfee, you know, and there were only two vendors doing this at scale carbon black and CrowdStrike, we built, we built, we bought the better one. So when you put those together and collect a significant amount of telemetry from that, we think we could do something highly differentiated and security. So VMware, his goal and to the extent that Amazon or others are doing things in security that compliment our view of it, we'll build on it, right? Whether it's identity and access tools, whether it's load balancers, whether it's security, event management capabilities. >>Well we're in, we're integrating those two into the security in the cloud, which makes it seamless security, which is critical. >>Goal would be, listen, when we go and when we talked about this is what we're doing, security, we go to Mike and Andy and Steve and said, listen, this is our ambitions and security. We don't view Amazon as a competitor. And that's why he's very much complimented. They'll will be on the fringes. They have a load balancer. We now have a cloud. But that's okay. But that's the bigger part. If they were going off for endpoint security, as we be competitive there, if they were going up in network secure, but they're not. So I think when we share our intents, which we do very openly, we have open kimono sessions. He, this is where we are, this is where we're going. That's what we, and we go deep in that >>trust luck, but this is a historic partnership. This is not a partnership that I've seen anywhere in the industry in my 35 years. This is something that's at the next level and I think you'll look back, history will look back at this partnership and and recognize that its impact on cloud is going to be substantial. >>You hope you guys deserve a lot of credit and again, the critics were critical of the announcement. We were obviously favor, we saw the vision, but I think what surprised me most is that the spend numbers reflect is you guys clarified your cloud play with this move. The customers saluted it 100% they were on board and the numbers are showing it, but as Andy and you guys go to the next level, I got to get your thoughts on this trend of transformation. We have two means. We started in the cube this week. One was if you take the T out of cloud native, it's cloud naive. And the other one is what I said in my post about being reborn in the cloud. So you've got born in the cloud, startups and growth and enterprises were becoming reborn, okay? In the cloud, which means they're transforming. >>So as that trillions of dollars that are coming into the migration, you look at the numbers, there's only 20% of it spend in cloud. Roughly give or take. You're talking about trillions of dollars of new money. You guys are the commercial guys. Hey look, it's still day one for the cloud. It's still day one. I agree. You have a lot of people who might not make the migration, might die of starvation. Okay? As they move to the new model, you guys are out there have to take and you're going to go get that cash. What are you guys seeing? Cause this is a big trillions and trillions of dollars are on the table. You started Mike off. Well look. So, >>you know, uh, Sanjay talked about you see these customers and how enthusiastic they are about the opportunity here, right? And, and Freddie Mac's a great example of 100 million lines of code, and I've got to get out of three data centers in 24 months. Bam, they're out in 10, 10 months, 10 months, right? Um, 100 million lines of code over hundreds of, of applications done in 10 months. Now imagine the rest that the company can do now that they got that behind him, right? And that's what we're seeing is this partnership enables our customers to get a bunch done very economically, much faster, and now they can get onto the other things that they need to do. >>Yeah. And I'd build on that. Listen, you know, we track about a trillion dollars of it spend. And if you add up all of the cloud spend today, it's probably a, I mean, Amazon and Salesforce are probably the biggest in infrastructure and apps. It's probably 150 billion in total cloud spend, maybe 200 billion. So that's 15 to 20% of the total it spend, which is massive, but it's still as, as my points, that's early innings is that 20% it's probably going to become 50% at some point soon, right? If you look at the pace at which the cloud companies are growing, so the key question is, is going to go as 150 billion, the 1 trillion total number is going to grow, but probably a little bit faster and GDP most every 5% max, who's going to go grab that 150 Boone as it goes from 150 billion to 500 billion and the on premise spend slows down. >>Right? Um, I think that, you know, I think Amazon is very well positioned and from our perspective at VMware, we have a, you know, 10 $11 billion business. We're trying to tilt this increasingly more cloud. We announced our earnings call, 13% of it now is hybrid cloud and SAS, that 13% should become 2025 50. They are a pure cloud company. 100% of their businesses is cloud. We're in that transition. But why are we in that transition? Because we see that 150 billion of it spend likely becoming 500 billion. And if we don't get it somebody else's well hybrids, are we a tailwind for you guys? Because outpost is actually a statement that says hybrid at the edge. Now the data centers an edge, you've got edge. What is an edge? So cloud operations is now the standard and we, I mean, we actually coined the term hybrid six years ago and everyone could five, six years ago and everyone really laughed at us and now I think it's being validated. So it's, it's very gratifying now that Amazon has a similar vision to hybrid as us. Uh, we believe both the VMware cloud on Amazon outpost and BMR cloud running on outpost, we're very committed to that joint vision. >>Yeah. You're talking about the spending data and you know, VMware yet another revenue hit. I was pretty consistent in that and that standpoint. But if you look at the spending data, virtually every sort of traditional company with very few exceptions is you're seeing a share shift to the cloud. VMware is an exception. It didn't use to be that way a couple of years ago, but you're embracing the cloud really changed and became, you may cloud a tailwind right now to headwind. >>I think this partnership helped in that area and you put it right, right. Everything in life is either an opportunity or a threat. I think, and I've talked about it in your show before, cloud and containers were a significant threat. When I joined Amazon, sorry, when I was partners with Amazon, I joined VMware six years ago. I asked Pat and I said, listen, I think the threats to VMR, Amazon and Docker in 2013 now Docker is a whole different story. Kubernetes took their head out. Uh, but to our credit we joined credit, we partnered here and I think from our perspective, see, we at VMware aren't able to do a complete pivot like Adobe did to say burn the boats on, on premise and completely shift everything. SAS. Why? Because customers still want NSX on prem. Customers still want our HCI product on prem. People are still buying vSphere on prem. >>So we've got this more delicate balance of starting to shift and on-prem business. The aircraft carrier, you know at the time, 5,000,000,005, six years ago now, 11 billion to something that's a blend of on prem and cloud. While the cloud part grows a lot faster, that 13% of revenue we announced our earnings call is growing 40% yeah. So we can keep that growing foster and foster while the on-prem business is not decaying, it's still growing but not growing at the same pace, plus changing its end, make that transition a few years from now to being a lot more of a cloud company. >>The other thing you're seeing in the spending data, I wonder if you could comment is, you know, digital initiatives really started in earnest, let's say 2016 and people were doing a lot of experimentation. They were throwing everything for the new stuff against the wall. And what we're seeing now is they're narrowing the new and they were keeping the legacy stuff around because they were sort of running in parallel to hedge their bets. What we're seeing now is less experimentation in the new, and they're starting to unplug some of the older stuff. What they're not unplugging is cloud and they're hanging on to VMware and we're seeing, you know, spending levels revert to pre 2018 levels. I wonder what you guys are seeing at the macro. >>Well, the first thing I would say is I see experimentation continuing to accelerate, right? All of the new functionality that we bring out every day. Everybody's excuse, you're the sandbox for us. It's very invigorating because we love people to experiment and, uh, and we, you know, a lot of those experiments turned into amazing new startups as an example. And, or a bunch of those experiments turned into major new project projects in our, in our big, uh, enterprises. So we're continuing to see a real push towards experimentation and driving agility into the business. I don't know. Yeah, >>no, I, well, Mike, I'd agree. I mean, listen, we in some senses, uh, we have a very good strong, you know, on-premise business and when we see a really innovative company that's in the order of 33 35%, that's already 35 three 35 billion growing in the forties 30 to 40% I mean that's incredible. When we see companies like Salesforce and Adobe that are giant SAS companies approaching, you know, 10 1115 20 billion growing 2020 5% I think that infrastructure is a service and SAS business for us are trailblazers of where this cloud is headed now, these, the biggest companies in infrastructure and in SAS and we follow that. Now we have to then navigate to say, listen, the growth rates and the spending is going to be reflected by cloud spend that's heavily spending on there. And the way in which the on premise world is what spending, we have a bunch of hardware companies, we work very closely. >>We're watching how that spending is, is playing OD, whether it's Cisco, whether it's HP, whether it's Lenovo, Dell and others. And then of course we've got VM. We're sitting right in between and I think what we're trying to manage as you got a whole world of on-prem driven primarily by hardware companies. You've got a bunch of these cloud new companies, Amazon, Salesforce, Adobe, and we have a right in the middle saying, okay, listen, we want to be dragged by both while many of our customers still want some on prem. It's a delicate balance, but there's no, um, I mean we are very clear within VMware. We want to be led by a cloud first policy wherever we can. I'll give you an example. Workspace one, manage these devices. We want a company five years ago named AirWatch, why did we buy them versus somebody else? >>It was cloud. It was cloud-first that business now and use a computing has stilted itself to be primarily cloud-based, very subscription-based. It was on premise VDI at the time Mike was at the company six, seven years ago. It's become now completely cloud based on the back of a workspace one, you know, kind of thing. So that's how we're thinking about it. The new acquisitions we've done, whether it's carbon black, whether it's Velo club, it's CloudHealth. They're all cloud-based. Well, you guys made a good bet on cloud operations. That's the real shift. The cloud operation model is right in your wheelhouse. You guys have operators, VMware, you guys have cloud operations everywhere now edge with outpost. Congratulations. I want to say, Sanjay, it's been a great journey with you. You've been with the cube all 10 years. All seven years. We've been actually the 10 year anniversary. >>We've been documenting the history. Wow. The historic moments like you guys together writing AWS, really appreciate it. and of course that was good to see more action coming. Cloud 2.0 next gen. Cloud competition controversies. I mean what? You can't ask for a better movie here. John. Dave, I'm going to, we're going to bring mugs next time. Okay. We're going to have mugs.. I'm John for Dave a lot. They saw Jay Poon and Mike Clayville, the leaders, senior leaders of AWS and VMware out with their customers here on the queue. This is our AWS Intel set in the middle of the floor here at reinvent 2019 our seventh year. Thanks for watching more coverage day two of the queue. We'll be right back.

>> Announcer: Live from San Francisco. Celebrating 10 years of high tech coverage, it's theCUBE. Covering VMWorld 2019, brought to you by VMware and it's ecosystem partners. >> Stu: Welcome back. I'm Stu Miniman, my co-host Justin Warren. And you are watching theCUBE. We have two sets, three days, here at VMWorld 2019. Our 10th year of the show. And happy to welcome back to our program, two of our theCUBE Alumni. We were at VeeamON earlier this year down in Miami, but sitting to my right is Ratmir Timashev, who is the co-founder and executive vice president of global sales and marketing with Veeam, and joining us also is Danny Allan, who's the vice president of product strategy also at Veeam. Thank you so much both for joining us. >> Thanks for having us Stu. >> Thank you. >> All right so, Ratmir, let's start. Veeam has been very transparent as to how the company is doing. You know, there's all this talks about unicorns and crazy evaluations or anything like that? But give us the update on, you know, actual dollars and actually what's happening in your business. >> Ratmir: Absolutely, we're always transparent. So actually, there's this term, unicorn, right? So does it mean one billion in valuation, or one billion in revenue (chuckles)? >> Stu: It is valuation. >> Yeah, I know that. So, Veeam is not unicorn anymore, right? Veeam is one billion in bookings. So, yeah, the major trend in the industry, is that we're moving from perpetual to subscription, because we're moving on-prem to hybrid cloud. And Veeam is actually leading that wave. So where we've been always known to be very customer friendly to do business with, easy to do business with, from the channel, from the customer perspective, and that's the major trend. If the customers are moving to hybrid cloud, we have to move to there, from our business model to a hybrid cloud. So we're changing our business model, to make it very easy for customers. >> Ratmir, that's not an easy adjustment. We've watched some public companies go through a little bit of challenges as you work through, you know there's the financial pieces, there's the sales pieces of that, since... Give us a little bit of the, how that works? You know, you just retrain the sales force and go or-- >> That is awesome, awesome question. That that is awesome point, that it's extremely painful. Extremely painful, and for some company, like everybody says Adobe is the best example of moving from perpetual or traditional business model to a subscription, right. So annual, even monthly subscription. For us it's even ten times more difficult than Adobe, because, we're not only moving from perpetual to subscription. We're moving, we're changing our licensing unit, per socket which is VMware traditional to pure VM or pure workload or pure instance, right. What we call instance, basically means, so it's extremely painful, we have to change how we do business, how we incentivize our sales people, how we incentivize our channel, how we incentivize our customers. But that's inevitable, we're moving to a hybrid cloud where sockets don't exist. Sockets, there are no sockets in the hybrid cloud. There are workloads and data. Data and applications. So we have to change our business model, but we also have to keep our current business model. And it's very difficult in terms of the bookings and revenue, when we give a customer an option to buy this way or that way. Of course they will choose the way that is the less expensive for them, and we're ready to do that. We can absorb that, because we're a private company, and we're approachable and we're fast growing. So we can afford that, unlike some of the public companies or companies that, venture capital finance. >> So how do you make that kind of substantial change to the... I mean changing half your company, really. To change that many structures. How do do you do that without losing the soul of the company? And like Veeam, Veeam is famous for being extremely Veeamy. How do you make all those sorts of changes and still not lose the soul of the company like that? How do you keep that there? >> That's an awesome question, because that's 50% of executive management discussions, are about that questions, right. What made Veeam successful? Core value, what we call, core values, there are family values, there are company core values every company has. So that's the most important. And one of them is, be extremely customer friendly, right. So easy to do business with. That's the number one priority. Revenue, projects, number two, number three, being doing the right things for the customer is number one. That's how we're discussing, and we're introducing a major change on October 1st. >> Ah yes. >> Another major change. We've done this major changes in the last two years, moving to subscription. So we started that move, two, two-and-a-half years ago, by introducing our product for Office 365, backup, when that was available only for, on subscription basis, not perpetual. So we're moving in subscription, to the subscription business model in the the last three years. On October 1st, 2019, in one month, we introducing another major change. We are extremely simplifying our subscription licensing and introducing, what we will call Veeam Universal License. Where you can buy once and move or close everywhere. From physical to VMware to Hyper-V to a double SS, ash or back to VMware and back to physical. I'm joking. (lauging) >> All right, Danny, bring us inside the product. We've watched the maturity, ten years of theCUBE here, Veeam was one of the early big ecosystems success stories, of course it went into Multi-Hypervisor, went into Multicloud. You know Ratmir, just went through all of the changes there. Exciting the VUL I guess we'll call it. >> Ratmir: VUL >> VUL, absolutely. So on the product piece, how's the product keeping in line with all these things. >> So our vision is to be the most trusted provider, backup solutions that enable high data management. So backup is still a core of it and it's the start of everything that we do. But if you look what we've done over the course of this year, it's very much about the cloud. So we added the ability, for example, to tier things into object storage in the hyperscale public cloud and that has been taking off, gang busters into S3 and into Azure Blob storage. And so that's a big part of it. Second part of it, in cloud data management is the ability to recover, if you're sending your data into the cloud, why not recover there? So we've added the ability to recover workloads in Azure, recover workloads in EC2. And lastly of course, once your workloads are in the cloud, then you want to protect it, using cloud-native technology. So we've addressed all of these solutions, and we've been announcing all these exciting things over the course of 2019. >> The product started off as being VM-centrical, VM Only back in the day. And then you've gradually added different capabilities to it as customers demanded, and it was on a pretty regular cadence as well. And you've recently added, added cloud functionality and backups there. What's the next thing, customers are asking for? 'Cause we've got lots of workloads being deployed in edge, we've got lots of people doing things with NoSQL backups, we've got Kubernetes, is mentioned every second breath at this show. So where are you seeing demand for customers that you need to take the product next? So we've heard a lot about Kubernetes obviously, the shows, the containers it's obviously a focus point. But one of the things we demoed yesterday. We actually had a breakout session, is leveraging an API from VMR called the VCR API for IO filtering. So it basically enables you to fork the rights when you're writing down to the storage level, so that you have continuous replication in two environments. And that just highlights the relationship we have with VMware. 80% of our customers are running on VMware. But that's the exciting things that we're innovating on. Things like making availability better. Making the agility and movement between clouds better. Making sure that people can take copies of their data to accelerate their business. These all areas that we are focusing on. >> Yeah, a lot of companies have tried to, multiple times have tried to go away from backup and go into data management. I like that you don't shy away from, ah, yeah we do backup and it's an important workload, and you're not afraid to mention that. Where's some other companies seem to be quite scared of saying, we do backup, 'cause it's not very cool or sexy. Although well, it doesn't have to be cool and sexy to be important. So I like that you actually say that yes we do backup. But we are also able to do some of these other bits and pieces. And it's enabled by that backup. So you know, copy, data management, so we can take copies of things and do this. Where is some of the demand coming around what to do with that data management side of things. I know there's, people are interested in things like, for example, data masking, where you want to take a copy of some data and use it for testing. There's a whole bunch of issue and risks around in doing that. So companies look for assistance from companies like Veeam to do that sort of thing. Is that where you're heading with some of that product? >> It is, there's four big use cases, DevOps is certainly one of them, and we've been talking about Kubernetes, right, which is all about developers and DevOps type development, so that's a big one. And one of the interesting things about that use case is, when you make copies of data, compliance comes into play. If you need to give a copy of the data to the developer, you don't want to give them credit card numbers or health information, so you probably want to mask that out. We have the capability today in Veeam, we call it, Staged Restore, that you could actually open the data in the sandbox to manipulate it, before you give it to the developer. But that's certainly one big use case, and it's highlighted at conferences like this. Another one is security, I spent a decade in security. I get passionate about it, but pentesting or forensics. If you do an invasive test on a production system, you'll bring the system down. And so another use case of the data is, take a copy, give it to the security team to do that test without impacting the production workload. A third one would be, IT operations, patching and updating all the systems. One of the interesting things about Veeam customers. They're far more likely to be on the most recent versions of software, because you can test it easily, by taking a copy. Test the patch, test the update and then roll it forward. And then a forth huge use case that we can not ignore is the GDPR in analytics and compliance. There's just this huge demand right now. And I think there's going to be market places opened in the public cloud, around delegating access to the data, so that they can analyze it and give you more intelligence about it. So GDPR is just a start, right. Were is my personally identifiable information? But I can imagine workload where a market place or an offering, where someone comes in and says, hey, I'll pay you some money and I'll classify your data for you, or I'll archive it smartly for you. And the business doesn't have to that. All they have to do is delegate access to the data, so that they can run some kind of machine learning algorithm on that data. So these are all interesting use cases. I go back, DevOps, security IT operations and analytics, all of those. >> So Ratmir, when I go to the keynote, it did feel like it was Kubernetes world? When I went down the show floor it definitely felt like data protection world. So it's definitely been one of the buzzier conversations the last couple of years at this show. But you look, walk through the floor, whether it be some of the big traditional vendors, lots of brand new start ups, some of the cloud-native players in this space. How do you make sure that Veeam gets the customers, keeps the customers that they have and can keep growing on the momentum that you've been building on? >> That's a great question, Stu. Like Pat Gelsinger mention that, number of applications has grown in the last five years, from 50 million to something like 330 million, and will grow to another almost 800 million in the next five years, by 2024. Veeam is in the right business, Veeam is the leader, Veeam is driving the vision and the strategy, right. Yeah, we have good competition in the form of legacy vendors and emerging vendors, but we have very good position because we own the major part of your hybrid cloud, which is the private cloud. And we're providing a good vision for how the hybrid cloud data management, not just data protection, which just Danny explained, should be done, right. I think we're in a good position and I feel very comfortable for the next five, ten years for Veeam. >> It's a good place to be. I mean feeling confident about the future is... I don't know five to ten years, that's a long way out. I don't know. >> Yeah I agree, I agree, it used to be like that, now you cannot predict more than six moths ahead, right. >> Justin I'm not going to ask him about Simon now, it's-- >> Six months is good yeah, six months maximum, what we can predict-- >> We were asking Michael Dell about the impact of China these days, so there's a lot of uncertainty in the world these day. >> Ratmir: Totally. >> Anything macro economic, you know that, you look at your global footprint. >> No we're traditional global technology company that generates most of the revenue between Europe and North America and we have emerging markets like Asia-Pac and Latin. We're no different than any other global technology company, in terms of the revenue and our investment. The fastest growing region of course is Asia-Pac, but our traditional markets is North America and Europe. >> Hailing from Asia-Pac, I do know the region reasonably well and Veeam is, yeah Veeam is definitely, has a very strong presence there and growing. Australia used to be there, one of our claims to fame, was one of the highest virtualized workload-- >> And Mohai is the cloud adapter. >> Cloud adoption. >> Yes, we like new shiny toys, so adopt it very, very quickly. Do you see any innovation coming out of Asia-Pac, because we use these things so much, and we tend to be on that leading edge. Do you see things coming out of the Asia-Pac teams that notice how customers are using these systems and is that placing demand on Veeam. >> Absolutely, but Danny knows better because he just came back from the Asia-Pacific trip. >> Justin: That's right, you did. >> Yeah, I did, I always say you live in the future, because you're so many hours ahead. But the reality is actually, the adoption of things like Hyper-convergence infrastructure, was far faster in areas like NZ, the adoption of the cloud. And it's because of New Zealand is part of the DAid, Australia is very much associated with taking that. One of the things that we're seeing there is consumption based model. I was just there a few weeks ago and the move to a consumption and subscription based model is far further advanced in other parts of the world. So I go there regularly, mostly because it gives me a good perspective on what the US is going to do two years later, And maybe AMEA three years later. It gives us a good perspective of where the industry is going-- >> It's not to the US it comes to California first then it spreads from there. (lauging) >> Are you saying he's literally using the technology of tomorrow in his today, is what we're saying. >> Maybe me I can make predictions a little bit further ahead there. >> Well you live in the future. >> All right I want to give you the both, just a final word here, VMWorld 2019. >> It's always the best show for us. VMWorld is the, I mean like Danny said, 80% of our customers is VMware, so it's always the best. We've been here for the last 12 years, since 2007. I have so many friends, buddies, love to come here, like to spend three, four days with my best friends, in the industry and just in life. >> I love the perspective here of the Multicloud worlds, so we saw some really interesting things, the moving things across clouds and leveraging Kubernetes and containers. And I think the focus on where the industry is going is very much aligned with Veeam. We also believe that, while it starts with backup up, the exciting thing is what's coming in two, three years. And so we have a close alignment, close relationship. It's been a great conference. >> Danny, Ratmir, thank you so much for the updates as always and yeah, have some fun with some of your friends, in the remaining time that we have. >> We have a party tonight Stu, so Justin too. >> Yeah, I think most people that have been to VMWorld are familiar with the Veeam party, it is famous, definitely. >> For Justin Warren, I'm Stu Miniman, we'll be back with more coverage here, from VMWorld 2019. Thanks for watching theCUBE. (electronic music)

>> Hi, I'm Stu Miniman, and this is special On the Ground of theCUBE here at the VTUG Summer Slam 2019. We've had the pleasure of knowing the VTUG team for quite awhile back actually, when it was the New England VMUG was when I started attending. When it switched to the VTUG at Gillette Stadium's when we started doing theCUBE there. And happy to bring back to the program first, Chris Harney, who is the one who created this as a true user event. And joining him is his wife Dawn Harney, who we know is behind the scenes organizing all of this event. So, Dawn and Chris, thank you so much for joining us and thank you for sharing this community and educational process with all of us. >> Thanks Stu, it's been a pleasure. >> All right, so, Chris, we really want this, it's a celebration. Sixteen years; back in 2003 the number one movie of the year was actually Finding Nemo. Of course we waited a long time for there. It goes without saying that all of us were a little bit younger. And boy, in those days, I started working with VMR in 2002, so that journey of virtualization was real early. There was no cloud talking we had kind of the XSP's and some of the earlier things. But so much has changed, and what I have loved is this journey that the users that are attending here. We're actually here in the Expo hall, and if you look, why are there no people in here right now? Because they are all in the break out sessions understanding what are the skill sets that they need today and tomorrow to help them in their journey; virtualization, cloud, DevOps, all of these changes there. Chris, you started this as a user to help share with your peers, so, we've had you on the program many times, bring us back. >> Yeah, so think back to 2003. There was no way to share information. There's no Google, no YouTube, no Facebook groups, Meetups, no Game of Thrones. >> We had to go to books and stuff like that. >> Exactly. >> Read the paper. >> So white papers, those were the big deal. You had the Microsoft books that were two inches thick and glossy. >> Yeah, I wonder how many of our younger audience would know the acronym RTFM? Read The Fine Manual please, is what we're doing. Dawn, this event, as I said, we've been at the winter event at Gillette Stadium, you brought in some of the Patriot players we've had the pleasure of interviewing. This Summer event is epic. I know people that come from very long distances to swim in the community, get the information. There's a little bit of lobster at the end of the day. >> There's a lot of lobster at the end of the day. >> So give us the community that you look to help build and foster, and what this event has meant to you over the years. >> For me it's really a place for everybody in the community to come together and share their knowledge with their peers. Something may work for me maybe it will work for you. Let's get together and talk about it. The best way to learn something is from somebody that may have done it, or done it, messed it up, learned something, like to share it with you. So, it really is about working with your peers, learning something from your sponsors and all these companies that you work with everyday. What's new, what's going on. So this is the place to go to get all that. >> Wait, Dawn, I thought you weren't a tech person. >> I'm not a tech person. >> That answer was spot on because one of the things I loved about the virtualization community, is we were all learning in the early days. And it required a little bit of work. There's this theory known as the IKEA effect. Sometimes if you actually help build it a little bit, you actually like it a little bit more. And this community really epitomizes that in the virtualization community and cloud. We've been talking about cloud now for a decade but it's still relatively early days on how this multi-hybrid cloud fits together, how operations are changing, so, Chris, bring us through a little bit of that arc. >> Well, I'll think about it, back in 2003, there was only VMwire. There was only one virtualization platform, if you didn't use VMwire, you were doing bare metal Windows install or Unix install on physical servers. Well, back when we changed, there was Hyper-V, that was coming out, AWS was just coming out, so that's when we kind of made the jump from just being a VMwire user to a virtual technology. So we could talk about the cloud, we could share those experiences and have that same journey together, and hopefully learn and lead, get smarter together as a group, you can learn faster as a group than you can by yourself. >> Yeah, and as we know, Chris, and we've talked about this, the IT industry is never "Hey, give me a clean "sheet of paper and we'll start everything." We know it is additive and all of these things go together, so cloud did not obviate the need for virtualization, so all of these things go together, and how do I make sure as my job doesn't get completely eliminated or, I was talking to somebody who said "If I've been doing the same thing for 10 years, "will I be out of a job?" They said, "Well hopefully you really really like "what you're doing cause if you think "you can keep doing what you're doing, "that is all you will ever be able to do." And I thought that was a very poignant comment. >> Yeah, Matt Broberg's talk this morning about what's your next job going to be, what skillsets do you need to be relevant in 10 years, and it's the same thing, I mean we said the same thing 10, 15 years ago. You can't be a Windows admin anymore, you can't be a VMwire admin anymore, you can't be a cloud admin anymore in five years. >> Yeah, so Dawn, give our audience a little bit of the scope of this event, as I said, I know people that have flown in from the Carolinas, from Colorado, from all over, from California and the like, 16 years of this event, this community is not just New England, it really has had a broad impact. >> Right, and it's huge, people plan their vacations around this, I've had people come from Europe, they fly over here, stay in the state of Maine, they go to L.L. Bean, they do all those things because they plan their vacation, they know they need to be here for the VTUG event, so it's meant a lot, because you do get so many different variety of people, you have the sponsors, you have the end users, you have media, you have bloggers, you have pretty much just everybody comes together to really be that community, so it's meant a lot to me, it's been a long 16 years but it's meant a lot. >> All right, so the question people are asking, this is the final VTUG, so no more winter event at Gillette, this is the final event tonight at Gritty's, so explain to us how that happened. >> It is the final event, 16 years, we're all getting older, it's bittersweet, but we've just realized that it takes a lot of time to put these together, it takes a lot of sponsors, it takes a lot of users, the users continue to come, but unfortunately the sponsors pay for it, and really don't have that following with the sponsors that we used to have, unfortunately. >> There are a lot more events, there are a lot more ways to find customers, so they're going to the meetups and they're doing their own events. >> Yeah, to your opening point Chris, 16 years ago it was much tougher to find sources. Now the challenge we have is there's too many options out there, there are too many events, trust me, I go to too many events, but this one has always been one that we've always looked forward, so please from the community, want to say thank you so much, it has always been one of our favorite things to kick off the year with when we do the winter one, and the summer one, I've made this trip a couple of times, it is a little warm in here, I think brings back to the roots of this event, remember it was four or five years ago it was 110 degrees out, and then you switched to this facility, so of course the air conditioning decides to go out, because we know in IT, sometimes things break. >> Start in the heat, end in the heat. >> So Chris, want to give you the final word for the final VTUG. >> You know, I'm just very proud and happy with this community, it truly is a community, it wasn't us, it wasn't theCUBE, it wasn't the vendors, it was everyone working together to make a community that helped each other out, so thanks to everyone. >> Chris and Dawn, thank you so much, we're happy to be a small piece of this community, and look forward to staying in touch with you in your future endeavors. Thanks so much, I'm Stu Miniman, we have a full day of coverage here, keynote speaker, some of the users that have traveled around, really focusing on the community here at the VTUG Summer Slam, as always, thank you for watching theCUBE.

>> Live from Las Vegas, It's theCube. Covering VMworld 2018. Brought to you by VMware and it's ecosystem partners. >> Welcome back, this is day three of three days live wall to wall coverage of VMworld 2018. This is theCube, I'm Stu Miniman, and my co-host this morning is Justin Warren. How about I welcome back to our program two Cube Alum's from the VMVare storage and availity business unit. Yanbing Li, second time in The Cube this week, is the senior vice president >> Yes. >> and general manager of the group. And Christos Karamanolis, is the fellow and CTO, thank you both for joining us. >> Great to be here. >> Great to be here. >> Alright, so first of all, congratulations. A lot of news this week, a lot of excitement around it. And we're talking off cameras, there's so much there that people don't understand some of the work that went into this. And some highlights as to things that I know VMWare thinks will be very game changing over the next couple of years. So, we're excited to dig into this. Yanbing, why don't you start us off with a little bit of an overview from your group as to the news this week. >> Yeah, happy to do that. I think, so, we are seeing a lot of customer energy around what we're doing in storage and availability. You know, there's huge momentum behind product like vSan and our customers are truly embracing HCI in very mainstream use cases, and we've seen customer after customer have gone all in, meaning they're taking HCI and made a determination to run that for all of their virtualized workload. So, very exciting time. But what's more interesting is their expanded view on what HCI is about. Certainly, we started with virtualizing computer and storage together on servers. But we're seeing rapid expansion of that definition. You know, we've been a believer that HCI is foundationally a software lab architecture. I think know, there's more recognition in that. And it's also going from just computers and storage to the full stack of the entire software defined data center. It's expanding into the cloud, as you've seen from VMCI WS. It's expanding to the edge, expanding from just traditional apps to cloud native apps. You know, we've announced beta for vSan to become the storage platform for Kubernetes' Navisphere environment. So, a lot of exciting expansion around how customers want to see HCI. And if you look at HCI, hybrid cloud, SDDC, the boundary around these three is not very very clear. I think they're all converging to work, something that's very common. >> Yeah, Christos? I want you to help unpack this a little bit for us. I remember speaking to you a couple of years ago, and your team. We know how many years of effort went into, set the ground work for vSan. with the underlying things that arrived with the API's, and development with your partner ecosystem. Taking vSan as a foundation... Oh, it's going to work with Kubernetes and cloud and everything. It's not a simple port, like, you know, no offense to the hardware people, but putting it on a new platform? Alright, you need to test it, integrate it, make it a couple tweaks, but. The software level, there's a lot of things that go on here. Talk about what the team's been working on, some of the big architectural things that've been happening. >> Oh, yes, absolutely. There are some fundamental changes. We never stop, we never declare that we have finished what we are doing. Obviously, the world is changing around us. Not only the hardware, as you know. There are many important changes there, with NVMe becoming now very prevalent, and renewed aero-technologies appearing, like persistent memory. But, for us, a focal point the last year or so has been, how do we move our entire software stack data on being outlined earlier, into any type of environment, including public clouds? So, you see now, with a few more clouds in AWS, the customers can run applications there without having to re-platform them. It's the exact same environment. So, a keystone of that environment is the storage. How do you virtualize storage? How do you deal with any type of infrastructure? So, vSan was developed for physical devices, SS disc and magnetic disc, more recently NVMe. Now, what we want to give is the option to our customers to use the cost efficiencies of cloud storage. Without the those sacrificing the semantics, the properties the vSphere stack. So, we did a lot of engineering to make vSan work on top of EBS. So, it may sound simple when you announce it at the keynote of VMWorld, but it took lot of hard engineering to adapt a platform. vSphere and vSan was designed for physical hardware, do not work on virtual storage volume. So, that is just one example, there are more examples. For cloud-native use cases, as you said. >> Yeah, I don't think people quite understand the implications of that. The fact that you can use things in the same way in multiple different locations, the whole idea behind multi-cloud-- If you can operate it in the same way as you can on site as you can in whichever cloud you choose. For enterprises who are used to doing things one way, and have made big investments in VMWare, this just opens up an entire universe of opportunity for them. >> Absolutely, and you get the best of both worlds, right? You have the same operational model, the same characteristics I can run now on Amazon applications that use vSphere, ETSI, or the motion pictures that require cell storage. On the cloud, you do not have cell storage. EBS volumes can be accessed by one host at a time, and like stores that need the networks, and vSan brings those stores their networks and semantics, all in software of course, on the cloud. So, I can run my traditional applications, as well as some new generation applications. And for us, strategically, what we've done with EBS? If you think about that is one step into a much bolder vision where vSan becomes this common storage platform that virtualize any type of storage. Physical, or cloud, or virtual, so we expose the same operational model, and the same store semantics to all those who run these three platforms. And this is, you know, just one step. >> And it's not how you-- there is the common operation model that's very appealing to all the enterprise customers. But we are truly marrying the strength and the capabilities of vSan and vSphere and the VMR platform was what EBS uniquely provide. That's elasticity, scalability, but you know, we have a much richer set of data services that we've already viewed into the whole VMR stack. >> Yeah, Yanbing, you bring up some really interesting points. When we put our critical analysis hat on, when the partnership was announced. It was like, "Well, Amazon's got access to 500,000 "VMWare customers, we're going to start "getting customers comfortable with Amazon. Great, they can start moving over." The thing that really caught a lot our attention is, it's some of the Amazon services that are now coming to the VMWare customers. So, EBS is a really good one. When you talk about, you know, the database capabilities that Amazon has, that now I can do on premises, this is a partnership, a two-way street. Its not, you know, just a one way. Maybe speak a little bit about that maturation, and, you know, definitely want to get from Christos, also. There's questions about some of the technical ways of how that works. >> Yeah, what I'm excited is exactly what you described. This is not a one way street, it's really bi-directional. And the levels of collaboration is not just superficial. It's deep levels of integration and leveraging each other to strength, in terms of both technology as well as customer reach. I think that what make the partnership is, you know, people can see that is taking to whole new level. And Christos has been very deeply involved with the various solution architects, and when we examine how we take RDS back on Prime to a VMR environment, I think he can tell a lot more stories behind that. >> For us, actually, it was a great learning experience, I must admit. Because, obviously, we see strongly the desire for our classroom is to start moving from managing the low level, nitty gritty details of the physical IT infrastructure, which we were, you know, traditionally helping them to do, to moving up the starter. Many of them now, they want to have their own users, their own customers, internal customers, to run all those applications. And what are the most critical components of business critical applications? They are the databases, right? So, how can we make the life of our customers easier, how can we provide them the tools to offer data, databases, as a service to their own users? So, this has been our high level objective, and of course, our partnership with AWS helps us deliver some of those properties. >> Christos, I want you to go one level deeper for us. Because some people it's like, >> I'd be happy to. "Wait, RDS, that's, you know, the cool new databases "in Amazon. Wait, I can do something on--" Is that an extension, am I putting things back and forth? Those of us that lived through the virtualization were getting databases just virtualized took years and a lot of hard work. And, I can't just have a database spanning between these, and moving back and forth. This isn't, you know, -- We haven't broken the laws of physics. >> We have not, because here-- >> Help us explain >> What is and isn't possible today. >> Absolutely. First of all, let me highlight what are the main pain points of customers. It's one thing to set up your application and install it and run it. But then there are all the day two operations, right? How do you patch the software, the operating system, the database? How do you scale it, up or down? How do you, even more to the performance, how do you do data protection, backup, disaster recovery? Those are really painful, difficult tasks, that involve a lot of work from expert database administrators that they'd rather be doing some of the important things that address the business earnings, right? So, our objective is to address this. Now, to your point, how do we, you know? What about those laws of physics? How can we have services on the cloud and service on a premise? What we announce here, this RDS, Relational Database Services, on VMWare, it is a fully stand alone service that runs on VMWare environment on premises. There are no dependencies on the public cloud, you have your data sets on your own data centers, and this is actually a major requirement of customers. Whether it's for compliance reasons, or security, or company policy, we insure that your data stays in your data center, while you still get all the benefits of a managed database that you don't need to do all those, you know, little tedious operational tasks I mentioned earlier. Moreover, we support data protection using, actually, underlying vSphere features. Like ETSI and clustering, or even data protection by creating copies of your database in another available domain within your data center. And this is a lot of work that VMWare did to make this happen, as you can imagine. So, that's a lot of infrastructural work, but we support the full range of features that you get on AWS, without having to go over the wire and, you know, break those laws of physics. >> I don't think people have quite understood how profound that is. We're here at a VMWare show, I've spent a lot of time with developers, and the developers are going to love this. Because, now they can use exactly the same way that they operate in public cloud, which they've loved for many years. Being able to do that on site? The way application development is going to happen inside enterprises, where they want to keep it on site, they want to keep it under they're own control, they want their data secured inside their own data centers. The ability for them to do that, and still develop applications in the same way that they could as cloud-native? Cloud-native now means that it runs on site. This is going to be amazing. >> Absolutely. Our customers explicitly tell us that they want to consume, not storage, but data. Those abstractions that matter to the application. So much so, that they have been asking us already, "Hmmm, what is next?", right? "Can you offer us some of this new generation databases?", you know, "the Mongoose or the Cassandra's of the world? "Can we have some similar experience with those "because they're very painful to deploy "and manage in the data centers." So, I cannot make any commitment, of course, but this is an indication of how much interest there is in this type of services. >> Yeah, it really does show you, I think, some of the strategic intent from VMWare. And this is a very clear move for what is going to be possible for customers to actually be able to do on site, it's really quite exciting. >> And for us, you know. Our role providing all the storage related capability, and we've been strongly expanding our application footprint to cover the Hadoop, the Cassandra, the Mango DV type of application as well as containerize the applications. And, you know, we have introduced a lot of new capability or solution that address exactly like that. >> Containerize the applications, for example, against the announcement, I think, didn't receive the attention, that in my opinion, it deserved is supporting natively in vSphere, and with vSan, specifically, cloud-native use cases. Actually, we're introducing a controlled playing, and expanding our store's controlled playing, to manage natively, container volumes. So, now, the same way today, our customers can visit builders through the UI or API's, and have management workflows for virtual machines and virtual disc, VMDK's. Now, they can also manage volumes of containers. And, as you've heard also, we are working with Kubernetes being our main focal point and with PKS to support natively Kubernetes on vSphere, down the road. >> Yeah, great point. I wonder, since we're talking about storage here, you've talked about Kubernetes, we talked about what's in the cloud and on premises. Give us the updated view how VMWare views and how you're helping customers with-- Data can't-- I can't just move, you know, data anywhere, so. While it's good to have similar frameworks, and different-- similar tools there, but still, where data lives, what I move, how I move it, do I move it, how that whole, kind of, data locality is seen today? >> The answer, we have been very keen in defining what we doing in the broader category of data management. From data mobility to protection to analytics, and to life cycle management, the whole slew of that. And we've been starting by building a lot of-- First of all, our job is to make vSan a storage platform that can enable these different demands of data. So, we've expanded vSan's roll from purely from delivering block storage now to offer file, and down the road, object. Cuz a lot of the new data will be consumed in an object like format. And we've also been painting our roadmap for the broader data management, so. >> Yes, exactly. On one hand, we'll provide the platform for primary storage that serves all the needs of the applications, block, file, object, we may even consider a native file interface, actually, for zero data copies, since you were asking about the technical details. I'm very excited about that, you know. We'll see, some of these things will come in the future. But, then, given that you have the platform, what you are building on top of that is data mobility and data protection workflows that are driven by policies. The very first step in that direction is our disaster recovery as a service we offer for hybrid clouds. There, the new model is that, even how you manage your data is as a service. Not a traditional model of installing software and a hundred different bits and pieces that have to integrate with each other and operate. Very simple, you go to a portal, and you manage your data, in this case, starting with disaster recovery use cases. You specify policies, like recovery point objectives. Down the road you may also give the options for recover time objectives. And, also, specify, by policies, what of your data want to be archived and stay on your data center, what of the data can go to the public cloud through your, you know, the hybrid models of cloud model we offer. So, our goal down the road is quite ambitious in offering comprehensive, uniform data management across clouds, that goes all the way from the edge, your Motofy's, your oil rig, all the way to the enterprise, the Cassandra's, to the hybrid clouds. And data mobility there is, you know, using our data transport, our archival capabilities that are coming with vSan Native Snapshot that we also announced at this VMWorld. These will give you the ability to manage your data across all those environments. >> Alright, so, last thing I just want to say. It's interesting to watch this space because we say there's a lot happening under the scenes that people don't understand. I was seeing some research lately saying where AWS lives in the storage ecosystem. I've written an article, couple a years ago. They were the quiet, billion dollar, you know, storage company. And one analyst firm said,"Oh, they're number 3, "and they'll be number 1 in storage." Wikibon actually published a report this month talking about what we call true private cloud. And in our support where we look at the software ecosystem, Yanbing, do you remember who we had number 1 on the list there when you picked >> Ah, yeah... software plus the ecosystem around there for -- >> I remember it clearly, you said it's VMWare. >> Yeah, so, you know, it surprises some people when you look it there, but I'm sure it's no surprise to you and your team, I'm sure. >> So, you know what we've started with vSan is quickly becoming a big way of how all of vSphere customers consume storage. And certainly, that has been our initial focus. But what we are doing for the cloud, what we are doing for the next generation applications. I think we are re-imagining a lot of the things. And it's great to have people like Christos, who started this journey many many years ago, and continue to expand our horizon. Yeah, this is an exciting time for our business unit, and certainly for VMWare, and our customers. >> Christos, in the end, really appreciate us being able to geek out, dig into some of the really important innovations happening in this space. For Justin Warren, I'm Stu Miniman, still a full third day live coverage here from VMWorld 2018, thanks for watching theCube.

For Las Vegas, it's the cube covering vm world 2018, brought to you by vm ware and its ecosystem partners. Ladies and gentlemen, Vm ware would like to thank it's global diamond sponsors and it's platinum sponsors for vm world 2018 with over 125,000 members globally. The vm ware User Group connects via vmware customers, partners and employees to vm ware, information resources, knowledge sharing, and networking. To learn more, visit the [inaudible] booth in the solutions exchange or the hemoglobin gene vm village become a part of the community today. This presentation includes forward looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors including those described in the 10 k's 10 q's and k's vm ware. Files with the SEC. Ladies and Gentlemen, please welcome Pat Gelsinger. Welcome to vm world. Good morning. Let's try that again. Good morning and I'll just say it is great to be here with you today. I'm excited about the sixth year of being CEO. When it was on this stage six years ago were Paul Maritz handed me the clicker and that's the last he was seen. We have 20,000 plus here on site in Vegas and uh, you know, on behalf of everyone at Vm ware, you know, we're just thrilled that you would be with us and it's a joy and a thrill to be able to lead such a community. We have a lot to share with you today and we really think about it as a community. You know, it's my 23,000 plus employees, the souls that I'm responsible for, but it's our partners, the thousands and we kicked off our partner day yesterday, but most importantly, the vm ware community is centered on you. You know, we're very aware of this event would be nothing without you and our community and the role that we play at vm wares to build these cool breakthrough innovations that enable you to do incredible things. You're the ones who take our stuff and do amazing things. You altogether. We have truly changed the world over the last two decades and it is two decades. You know, it's our anniversary in 1998, the five people that started a vm ware, right. You know, it was, it was exactly 20 years ago and we're just thrilled and I was thinking about this over the weekend and it struck me, you know, anniversary, that's like old people, you know, we're here, we're having our birthday and it's a party, right? We can't have a drink yet, but next year. Yeah. We're 20 years old. Right. We can do that now. And I'll just say the culture of this community is something that truly is amazing and in my 38 years, 38 years in tech, that sort of sounds like I'm getting old or something, but the passion, the loyalty, almost a cult like behavior that we see in this team of people to us is simply thrilling. And you know, we put together a little video to sort of summarize the 20 years and some of that history and some of the unique and quirky aspects of our culture. Let's watch that now. We knew we had something unique and then we demonstrated that what was unique was also some reasons that we love vm ware, you know, like the community out there. So great. The technology I love it. Ware is solid and much needed. Literally. I do love Vmr. It's awesome. Super Awesome. Pardon? There's always someone that wants to listen and learn from us and we've learned so much from them as well. And we reached out to vm ware to help us start building. What's that future world look like? Since we're doing really cutting edge stuff, there's really no better people to call and Bmr has been known for continuous innovation. There's no better way to learn how to do new things in it than being with a company that's at the forefront of technology. What do you think? Don't you love that commitment? Hey Ashley, you know, but in the prep sessions for this, I thought, boy, what can I do to take my commitment to the next level? And uh, so, uh, you know, coming in a couple days early, I went to down the street to bad ass tattoo. So it's time for all of us to take our commitment up level and sometimes what happens in Vegas, you take home. Thank you. Vm Ware has had this unique role in the industry over these 20 years, you know, and for that we've seen just incredible things that have happened over this period of time and it's truly extraordinary what we've accomplished together. And you know, as we think back, you know, what vm ware has uniquely been able to do is I'll say bridge across know and we've seen time and again that we see these areas of innovation emerging and rapidly move forward. But then as they become utilized by our customers, they create this natural tension of what business wants us flexibility to use across these silos of innovation. And from the start of our history, we have collectively had this uncanny ability to bridge across these cycles of innovation. You know, an act one was clearly the server generation. You know, it may seem a little bit, uh, ancient memory now, but you remember you used to walk into your data center and it looked like the loove the museum of it passed right? You know, and you had your old p series and your z series in your sparks and your pas and your x86 cluster and Yo, it had to decide, well, which architecture or am I going to deploy and run this on? And we bridged across and that was the magic of Esx. You don't want to just changed the industry when that occurred. And I sort of called the early days of Esx and vsphere. It was like the intelligence test. If you weren't using it, you fail because Yup. Servers, 10 servers become one months, become minutes. I still have people today who come up to me and they reflect on their first experience of vsphere or be motion and it was like a holy moment in their life and in their careers. Amazing and act to the Byo d, You know, can we bridge across these devices and users wanted to be able to come in and say, I have my device and I'm productive on it. I don't want to be forced to use the corporate standard. And maybe more than anything was the power of the iphone that was introduced, the two, seven, and suddenly every employee said this is exciting and compelling. I want to use it so I can be more productive when I'm here. Bye. Jody was the rage and again it was a tough challenge and once again vm ware helped to bridge across the surmountable challenge. And clearly our workspace one community today is clearly bridging across these silos and not just about managing devices but truly enabling employee engagement and productivity. Maybe act three was the network and you know, we think about the network, you know, for 30 years we were bound to this physical view of what the network would be an in that network. We are bound to specific protocols. We had to wait months for network upgrades and firewall rules. Once every two weeks we'd upgrade them. If you had a new application that needed a firewall rule, sorry, you know, come back next month we'll put, you know, deep frustration among developers and ceos. Everyone was ready to break the chains. And that's exactly what we did. An NSX and Nice Sierra. The day we acquired it, Cisco stock drops and the industry realizes the networking has changed in a fundamental way. It will never be the same again. Maybe act for was this idea of cloud migration. And if we were here three years ago, it was student body, right to the public cloud. Everything is going there. And I remember I was meeting with a cio of federal cio and he comes up to me and he says, I tried for the last two years to replatform my 200 applications I got to done, you know, and all of a sudden that was this. How do I do cloud migration and the effective and powerful way. Once again, we bridged across, we brought these two worlds together and eliminated this, uh, you know, this gap between private and public cloud. And we'll talk a lot more about that today. You know, maybe our next act is what we'll call the multicloud era. You know, because today in a recent survey by Deloitte said that the average business today is using eight public clouds and expected to become 10 plus public clouds. And you know, as you're managing different tools, different teams, different architectures, those solution, how do you, again bridge across, and this is what we will do in the multicloud era, we will help our community to bridge across and take advantage of these powerful cycles of innovation that are going on, but be able to use them across a consistent infrastructure and operational environment. And we'll have a lot more to talk about on this topic today. You know, and maybe the last item to bridge across maybe the most important, you know, people who are profit. You know, too often we think about this as an either or question. And as a business leader, I'm are worried about the people or the And Milton Friedman probably set us up for this issue decades ago when he said, planet, right? the sole purpose of a business is to make profits. You want to create a multi-decade dilemma, right? For business leaders, could I have both people and profits? Could I do well and do good? And particularly for technology, I think we don't have a choice to think about these separately. We are permeating every aspect of business. And Society, we have the responsibility to do both and have all the things that vm ware has accomplished. I think this might be the one that I'm most proud of over, you know, w we have demonstrated by vsphere and the hypervisor alone that we have saved over 540 million tons of co two emissions. That is what you have done. Can you believe that? Five hundred 40 million tons is enough to have 68 percent of all households for a year. Wow. Thank you for what you have done. Thank you. Or another translation of that. Is that safe enough to drive a trillion miles and the average car or you could go to and from Jupiter just in case that was in your itinerary a thousand times. Right? He was just incredible. What we have done and as a result of that, and I'll say we were thrilled to accept this recognition on behalf of you and what you have done. You know, vm were recognized as number 17 in the fortune. Change the world list last week. And we really view it as accepting this honor on behalf of what you have done with our products and technology tech as a force for good. We believe that fundamentally that is our opportunity, if not our obligation, you know, fundamentally tech is neutral, you know, we together must shape it for good. You know, the printing press by Gutenberg in 1440, right? It was used to create mass education and learning materials also can be used for extremist propaganda. The technology itself is neutral. Our ecosystem has a critical role to play in shaping technology as a force for good. You know, and as we think about that tomorrow, we'll have a opportunity to have a very special guest and I really encourage you to be here, be on time tomorrow morning on the stage and you know, Sanjay's a session, we'll have Malala, Nobel Peace Prize winner and fourth will be a bit of extra security as you come in and you understand that. And I just encourage you not to be late because we see this tech being a force for good in everything that we do at vm ware. And I hope you'll enjoy, I'm quite looking forward to the session tomorrow. Now as we think about the future. I like to put it in this context, the superpowers of tech know and you know, 38 years in the industry, you know, I am so excited because I think everything that we've done over the last four decades is creating a foundation that allows us to do more and go faster together. We're unlocking game, changing opportunities that have not been available to any people in the history of humanity. And we have these opportunities now and I, and I think about these four cloud, you have unimaginable scale. You'll literally with your Amex card, you can go rent, you know, 10,000 cores for $100 per hour. Or if you have Michael's am ex card, we can rent a million cores for $10,000 an hour. Thanks Michael. But we also know that we're in many ways just getting started and we have tremendous issues to bridge across and compatible clouds, mobile unprecedented scale. Literally, your application can reach half the humans on the planet today. But we also know that five percent, the lowest five percent of humanity or the other half of humanity, they're still in the lower income brackets, less than five percent penetrated. And we know that we have customer examples that are using mobile phones to raise impoverished farmers in Africa, out of poverty just by having a smart phone with proper crop, the information field and whether a guidance that one tool alone lifting them out of poverty. Ai knows, you know, I really love the topic of ai in 1986. I'm the chief architect of the 80 46. Some of you remember what that was. Yeah, I, you know, you're, you're my folk, right? Right. And for those of you who don't, it was a real important chip at the time. And my marketing manager comes running into my office and he says, Pat, pat, we must make the 46 a great ai chip. This is 1986. What happened? Nothing an AI is today, a 30 year overnight success because the algorithms, the data have gotten so much bigger that we can produce results, that we can bring intelligence to everything. And we're seeing dramatic breakthroughs in areas like healthcare, radiology, you know, new drugs, diagnosis tools, and designer treatments. We're just scratching the surface, but ai has so many gaps, yet we don't even in many cases know why it works. Right? And we'll call that explainable ai and edge and Iot. We're connecting the physical and the digital worlds was never before possible. We're bridging technology into every dimension of human progress. And today we're largely hooking up things, right? We have so much to do yet to make them intelligent. Network secured, automated, the patch, bringing world class it to Iot, but it's not just that these are super powers. We really see that each and each one of them is a super power in and have their own right, but they're making each other more powerful as well. Cloud enables mobile conductivity. Mobile creates more data, more data makes the AI better. Ai Enables more edge use cases and more edge requires more cloud to store the data and do the computing right? They're reinforcing each other. And with that, we know that we are speeding up and these superpowers are reshaping every aspect of society from healthcare to education, the transportation, financial institutions. This is how it all comes together. Now, just a simple example, how many of you have ever worn a hardhat? Yeah, Yo. Pretty boring thing. And it has one purpose, right? You know, keep things from smacking me in the here's the modern hardhat. It's a complete heads up display with ar head. Well, vr capabilities that give the worker safety or workers or factory workers or supply people the ability to see through walls to understand what's going on inside of the equipment. I always wondered when I was a kid to have x Ray Vision, you know, some of my thoughts weren't good about why I wanted it, but you know, I wanted to. Well now you can have it, you know, but imagine in this environment, the complex application that sits behind it. You know, you're accessing maybe 50 year old building plants, right? You're accessing HVAC systems, but modern ar and vr capabilities and new containerized displays. You'll think about that application. You know, John Gage famously said the network is the computer pat today says the application is now a network and pretty typically a complicated one, you know, and this is the vm ware vision is to make that kind of environment realizable in every aspect of our business and community and we simply have been on this journey, any device, any application, any cloud with intrinsic security. And this vision has been consistent for those of you who have been joining us for a number of years. You've seen this picture, but it's been slowly evolving as we've worked in piece by piece to refine and extend this vision, you know, and for it, we're going to walk through and use this as the compass for our discussion today as we walk through our conversation. And you know, we're going to start by a focus on any cloud. And as we think about this cloud topic, you know, we see it as a multicloud world hybrid cloud, public cloud, but increasingly seeing edge and telco becoming clouds in and have their own right. And we're not gonna spend time on it today, but this area of Telco to the is an enormous opportunity for us in our community. You know, data centers and cloud today are over 80 percent virtualized. The Telco network is less than 10 percent virtualized. Wow. An industry that's almost as big as our industry entirely unvirtualized, although the technologies we've created here can be applied over here and Telco and we have an enormous buildout coming with five g and environments emerging. What an opportunity for us, a virgin market right next to us and we're getting some early mega winds in this area using the technologies that you have helped us cure rate than the So we're quite excited about this topic area as well. market. So let's look at this full view of the multicloud. Any cloud journey. And we see that businesses are on a multicloud journey, you know, and today we see this fundamentally in these two paths, a hybrid cloud and a public cloud. And these paths are complimentary and coexisting, but today, each is being driven by unique requirements and unique teams. Largely the hybrid cloud is being driven by it. And operations, the public cloud being driven more by developers and line of business requirements and as some multicloud environment. So how do we deliver upon that and for that, let's start by digging in on the hybrid cloud aspect of this and as we think about the hybrid cloud, we've been talking about this subject for a number of years and I want to give a very specific and crisp definition. You're the hybrid cloud is the public cloud and the private cloud cooperating with consistent infrastructure and consistent operations simply put seamless path to and from the cloud that my workloads don't care if it's here or there. I'm able to run them in a agile, scalable, flexible, efficient manner across those two environments, whether it's my data center or someone else's, I can bring them together to make that work is the magic of the Vm ware Cloud Foundation. The vm ware Cloud Foundation brings together computer vsphere and the core of why we are here, but combines with that networking storage delivered through a layer of management and automation. The rule of the cloud is ruthlessly automate everything. We laid out this vision of the software defined data center seven years ago and we've been steadfastly working on this vision and vm ware. Cloud Foundation provides this consistent infrastructure and operations with integrated lifecycle management automation. Patching the m ware cloud foundation is the simplest path to the hybrid cloud and the fastest way to get vm ware cloud foundation is hyperconverged infrastructure, you know, and with this we've combined integrated then validated hardware and as a building block inside of this we have validated hardware, the v Sand ready environments. We have integrated appliances and cloud delivered infrastructure, three ways that we deliver that integrate integrated hyperconverged infrastructure solution. And we have by far the broadest ecosystem of partners to do it. A broad set of the sand ready nodes from essentially everybody in the industry. Secondly, we have integrated appliances, the extract of vxrail that we have co engineered with our partners at Dell technology and today in fact Dell is releasing the power edge servers, a major step in blade servers that again are going to be powering vxrail and vxrack systems and we deliver hyperconverged infrastructure through a broader set of Vm ware cloud partners as well. At the heart of the hyperconverged infrastructure is v San and simply put, you know, be San has been the engine that's just been moving rapidly to take over the entire integration of compute and storage and expand to more and more areas. We have incredible momentum over 15,000 customers for v San Today and for those of you who joined us, we say thank you for what you have done with this product today. Really amazing you with 50 percent of the global 2000 using it know vm ware. V San Vxrail are clearly becoming the standard for how hyperconverge is done in the industry. Our cloud partner programs over 500 cloud partners are using ulv sand in their solution, you know, and finally the largest in Hci software revenue. Simply put the sand is the software defined storage technology of choice for the industry and we're seeing that customers are putting this to work in amazing ways. Vm Ware and Dell technologies believe in tech as a force for good and that it can have a major impact on the quality of life for every human on the planet and particularly for the most underdeveloped parts of the world. Those that live on less than $2 per day. In fact that this moment 5 billion people worldwide do not have access to modern affordable surgery. Mercy ships is working hard to change the global surgery crisis with greater than 400 volunteers. Mercy ships operates the largest NGO hospital ship delivering free medical care to the poorest of the poor in Africa. Let's see from them now. When the ship shows up to port, literally people line up for days to receive state of the art life, sane changing life saving surgeries, tumor site limbs, disease blindness, birth defects, but not only that, the personnel are educating and training the local healthcare providers with new skills and infrastructure so they can care for their own. After the ship has left, mercy ships runs on Vm ware, a dell technology with VX rail, Dell Isilon data protection. We are the it platform for mercy ships. Mercy ships is now building their next generation ship called global mercy, which were more than double. It's lifesaving capacity. It's the largest charity hospital ever. It will go live in 20 slash 20 serving Africa and I personally plan on being there for its launch. It is truly amazing what they are doing with our technology. Thanks. So we see this picture of the hybrid cloud. We've talked about how we do that for the private cloud. So let's look over at the public cloud and let's dig into this a little bit more deeply. You know, we're taking this incredible power of the Vm ware Cloud Foundation and making it available for the leading cloud providers in the world and with that, the partnership that we announced almost two years ago with Amazon and on the stage last year, we announced their first generation of products, no better example of the hybrid cloud. And for that it's my pleasure to bring to stage my friend, my partner, the CEO of aws. Please welcome Andy Jassy. Thank you andy. You know, you honor us with your presence, you know, and it really is a pleasure to be able to come in front of this audience and talk about what our teams have accomplished together over the last, uh, year. Yo, can you give us some perspective on that, Andy and what customers are doing with it? Well, first of all, thanks for having me. I really appreciate it. It's great to be here with all of you. Uh, you know, the offering that we have together customers because it allows them to use the same software they've been using to again, where cloud and aws is very appealing to manage their infrastructure for years to be able to deploy it an aws and we see a lot of customer momentum and a lot of customers using it. You see it in every imaginable vertical business segment in transportation. You see it with stagecoach and media and entertainment. You see it with discovery communications in education, Mit and Caltech and consulting and accenture and cognizant and dxc you see in every imaginable vertical business segment and the number of customers using the offering is doubling every quarter. So people were really excited about it and I think that probably the number one use case we see so far, although there are a lot of them, is customers who are looking to migrate on premises applications to the cloud. And a good example of that is mit. We're there right now in the process of migrating. In fact, they just did migrate 3000 vms from their data centers to Vm ware cloud native us. And this would have taken years before to do in the past, but they did it in just three months. It was really spectacular and they're just a fun company to work with and the team there. But we're also seeing other use cases as well. And you're probably the second most common example is we'll say on demand capabilities for things like disaster recovery. We have great examples of customers you that one in particular, his brakes, right? Urban in those. The brings security trucks and they all armored trucks coming by and they had a critical need to retire a secondary data center that they were using, you know, for Dr. so we quickly built to Dr Protection Environment for $600. Bdms know they migrated their mission critical workloads and Wallah stable and consistent Dr and now they're eliminating that site and looking for other migrations as well. The rate of 10 to 15 percent. It was just a great deal. One of the things I believe Andy, he'll customers should never spend capital, uh, Dr ever again with this kind of capability in place. That is just that game changing, you know, and you know, obviously we've been working on expanding our reach, you know, we promised to make the service available a year ago with the global footprint of Amazon and now we've delivered on that promise and in fact today or yesterday if you're an ozzie right down under, we announced in Sydney, uh, as well. And uh, now we're in US Europe and in APJ. Yeah. It's really, I mean it's very exciting. Of course Australia is one of the most virtualized places in the world and, and it's pretty remarkable how fast European customers have started using the offering to and just the quarter that's been out there and probably have the many requests customers has had. And you've had a, probably the number one request has been that we make the offering available in all the regions. The aws has regions and I can tell you by the end of 2019 will largely be there including with golf clubs and golf clap. You guys have been, that's been huge for you guys. Yeah. It's a government only region that we have that a lot of federal government workloads live in and we are pretty close together having the offering a fedramp authority to operate, which is a big deal on a game changer for governments because then there'll be able to use the familiar tools they use and vm ware not just to run their workloads on premises but also in the cloud as well with the data privacy requirements, security requirements they need. So it's a real game changer for government too. Yeah. And this you can see by the picture here basically before the end of next year, everywhere that you are and have an availability zone. We're going to be there running on data. Yup. Yeah. Let's get with it. Okay. We're a team go faster. Okay. You'll and you know, it's not just making it available, but this pace of innovation and you know, you guys have really taught us a few things in this respect and since we went live in the Oregon region, you know, we've been on a quarterly cadence of major releases and two was really about mission critical at scale and we added our second region. We added our hybrid cloud extension with m three. We moved the global rollout and we launched in Europe with m four. We really add a lot of these mission critical governance aspects started to attack all of the industry certifications and today we're announcing and five right. And uh, you know, with that, uh, I think we have this little cool thing you know, two of the most important priorities for that we're doing with ebs and storage. Yeah, we'll take, customers, our cost and performance. And so we have a couple of things to talk about today that we're bringing to you that I think hit both of those on a storage side. We've combined the elasticity of Amazon Elastic Block store or ebs with ware is Va v San and we've provided now a storage option that you'll be able to use that as much. It's very high capacity and much more cost effective and you'll start to see this initially on the Vm ware cloud. Native us are five instances which are compute instances, their memory optimized and so this will change the cost equation. You'll be able to use ebs by default and it'll be much more cost effective for storage or memory intensive workloads. Um, it's something that you guys have asked for. It's been very frequently requested it, it hits preview today. And then the other thing is that we've worked really hard together to integrate vm ware's Nsx along with aws direct neck to have a private even higher performance conductivity between on premises and the cloud. So very, very exciting new capabilities to show deep integration between the companies. Yeah. You know, in that aspect of the deep integration. So it's really been the thing that we committed to, you know, we have large engineering teams that are working literally every day. Right on bringing together and how do we fuse these platforms together at a deep and intimate way so that we can deliver new services just like elastic drs and the c and ebs really powerful, uh, capabilities and that pace of innovation continue. So next maybe. Um, maybe six. I don't know. We'll see. All right. You know, but we're continuing this toward pace of innovation, you know, completing all of the capabilities of Nsx. You'll full integration for all of the direct connect to capabilities. Really expanding that. You're only improving licensed capabilities on the platform. We'll be adding pks on top of for expanded developer a capabilities. So just. Oh, thank you. I, I think that was formerly known as Right, and y'all were continuing this pace of storage Chad. So anyway. innovation going forward, but I think we also have a few other things to talk about today. Andy. Yeah, I think we have some news that hopefully people here will be pretty excited about. We know we have a pretty big database business and aws and it's. It's both on the relational and on the nonrelational side and the business is billions of dollars in revenue for us and on the relational side. We have a service called Amazon relational database service or Amazon rds that we have hundreds of thousands of customers using because it makes it much easier for them to set up, operate and scale their databases and so many companies now are operating in hybrid mode and will be for a while and a lot of those customers have asked us, can you give us the ease of manageability of those databases but on premises. And so we talked about it and we thought about and we work with our partners at Vm ware and I'm excited to announce today, right now Amazon rds on Vm ware and so that will bring all the capabilities of Amazon rds to vm ware's customers for their on premises environments. And so what you'll be able to do is you'll be able to provision databases. You'll be able to scale the compute or the memory or the storage for those database instances. You'll be able to patch the operating system or database engines. You'll be able to create, read replicas to scale your database reads and you can deploy this rep because either on premises or an aws, you'll be able to deploy and high high availability configuration by replicating the data to different vm ware clusters. You'll be able to create online backups that either live on premises or an aws and then you'll be able to take all those databases and if you eventually want to move them to aws, you'll be able to do so rather easily. You have a pretty smooth path. This is going to be available in a few months. It will be available on Oracle sql server, sql postgresql and Maria DB. I think it's very exciting for our customers and I think it's also a good example of where we're continuing to deepen the partnership and listen to what customers want and then innovate on their behalf. Absolutely. Thank you andy. It is thrilling to see this and as we said, when we began the partnership, it was a deep integration of our offerings and our go to market, but also building this bi-directional hybrid highway to give customers the capabilities where they wanted cloud on premise, on premise to the cloud. It really is a unique partnership that we've built, the momentum we're feeling to our customer base and the cool innovations that we're doing. Andy, thank you so much for you Jordan Young, rural 20th. You guys appreciate it. Yeah, we really have just seen incredible momentum and as you might have heard from our earnings call that we just finished this. We finished the last quarter. We just really saw customer momentum here. Accelerating. Really exciting to see how customers are starting to really do the hybrid cloud at scale and with this we're just seeing that this vm ware cloud foundation available on Amazon available on premise. Very powerful, but it's not just the partnership with Amazon. We are thrilled to see the momentum of our Vm ware cloud provider program and this idea of the vm ware cloud providers has continued to gain momentum in the industry and go over five years. Right. This program has now accumulated more than 4,200 cloud partners in over 120 countries around the globe. It gives you choice, your local provider specialty offerings, some of your local trusted partners that you would have in giving you the greatest flexibility to choose from and cloud providers that meet your unique business requirements. And we launched last year a program called Vm ware cloud verified and this was saying you're the most complete embodiment of the Vm ware Cloud Foundation offering by our cloud partners in this program and this logo you know, allows you to that this provider has achieved the highest standard for cloud infrastructure and that you can scale and deliver your hybrid cloud and partnering with them. It know a particular. We've been thrilled to see the momentum that we've had with IBM as a huge partner and our business with them has grown extraordinarily rapidly and triple digits, but not just the customer count, which is now over 1700, but also in the depth of customers moving large portions of the workload. And as you see by the picture, we're very proud of the scope of our partnerships in a global basis. The highest standard of hybrid cloud for you, the Vm ware cloud verified partners. Now when we come back to this picture, you know we, you know, we're, we're growing in our definition of what the hybrid cloud means and through Vm Ware Cloud Foundation, we've been able to unify the private and the public cloud together as never before, but we're also seeing that many of you are interested in how do I extend that infrastructure further and farther and will simply call that the edge right? And how do we move data closer to where? How do we move data center resources and capacity closer to where the data's being generated at the operations need to be performed? Simply the edge and we'll dig into that a little bit more, but as we do that, what are the things that we offer today with what we just talked about with Amazon and our VCP p partners is that they can consume as a service this full vm ware Cloud Foundation, but today we're only offering that in the public cloud until project dimension of project dimension allows us to extend delivered as a service, private, public, and to the edge. Today we're announcing the tech preview, a project dimension Vm ware cloud foundation in a hyperconverged appliance. We're partnered deeply with Dell EMC, Lenovo for the first partners to bring this to the marketplace, built on that same proven infrastructure, a hybrid cloud control plane, so literally just like we're managing the Vm ware cloud today, we're able to do that for your on premise. You're small or remote office or your edge infrastructure through that exact same as a service management and control plane, a complete vm ware operated end to end environment. This is project dimension. Taking the vcf stack, the full vm ware cloud foundation stack, making an available in the cloud to the edge and on premise as well, a powerful solution operated by BM ware. This project dimension and project dimension allows us to have a fundamental building block in our approach to making customers even more agile, flexible, scalable, and a key component of our strategy as well. So let's click into that edge a little bit more and we think about the edge in the following layers, the compute edge, how do we get the data and operations and applications closer to where they need to be. If you remember last year I talked about this pendulum swinging of centralization and decentralization edge is a decentralization force. We're also excited that we're moving the edge of the devices as well and we're doing that in two ways. One with workspace, one for human optimized devices and the second is project pulse or Vm ware pulse. And today we're announcing pulse two point zero where you can consume it now as a service as well as with integrated security. And we've now scaled pulse to support 500 million devices. Isn't that incredible, right? I mean this is getting a scale. Billions and billions and finally networking is a key component. You all that. We're stretching the networking platform, right? And evolving how that edge operates in a more cloud and that's a service white and this is where Nsx St with Velo cloud is such a key component of delivering the edge of network services as well. Taken together the device side, the compute edge and rethinking and evolving the networking layer together is the vm ware edge strategy summary. We see businesses are on this multicloud journey, right? How do we then do that for their private of public coming together, the hybrid cloud, but they're also on a journey for how they work and operate it across the public cloud and the public cloud we have this torrid innovation, you'll want Andy's here, challenges. You know, he's announcing 1500 new services or were extraordinary innovation and you'll same for azure or Google Ibm cloud, but it also creates the same complexity as we said. Businesses are using multiple public clouds and how do I operate them? How do I make them work? You know, how do I keep track of my accounts and users that creates a set of cloud operations problems as well in the complexity of doing that. How do you make it work? Right? And your for that. We'll just see that there's this idea cloud cost compliance, analytics as these common themes that of, you know, keep coming up and we're seeing in our customers that are new role is emerging. The cloud operations role. You're the person who's figuring out how to make these multicloud environments work and keep track of who's using what and which data is landing where today I'm thrilled to tell you that the, um, where is acquiring the leader in this space? Cloudhealth technologies. Thank you. Cloudhealth technologies supports today, Amazon, azure and Google. They have some 3,500 customers, some of the largest and most respected brands in the, as a service industry. And Sasa business today rapidly span expanding feature sets. We will take cloudhealth and we're going to make it a fundamental platform and branded offering from the um, where we will add many of the other vm ware components into this platform, such as our wavefront analytics, our cloud, choreo compliance, and many of the other vm ware products will become part of the cloudhealth suite of services. We will be enabling that through our enterprise channels as well as through our MSP and BCPP partners as well know. Simply put, we will make cloudhealth the cloud operations platform of choice for the industry. I'm thrilled today to have Joe Consella, the CTO and founder. Joe, please stand up. Thank you joe to your team of a couple hundred, you know, mostly in Boston. Welcome to the Vm ware family, the Vm ware community. It is a thrill to have you part of our team. Thank you joe. Thank you. We're also announcing today, and you can think of this, much like we had v realize operations and v realize automation, the compliment to the cloudhealth operations, vm ware, cloud automation, and some of you might've heard of this in the past, this project tango. Well, today we're announcing the initial availability of Vm ware, cloud automation, assemble, manage complex applications, automate their provisioning and cloud services, and manage them through a brokerage the initial availability of cloud automation services, service. Your today, the acquisition of cloudhealth as a platform, the aware of the most complete set of multicloud management tools in the industry, and we're going to do so much more so we've seen this picture of this multicloud journey that our customers are on and you know, we're working hard to say we are going to bridge across these worlds of innovation, the multicloud world. We're doing many other things. You're gonna hear a lot at the show today about this year. We're also giving the tech preview of the Vm ware cloud marketplace for our partners and customers. Also today, Dell technologies is announcing their cloud marketplace to provide a self service, a portfolio of a Dell emc technologies. We're fundamentally in a unique position to accelerate your multicloud journey. So we've built out this any cloud piece, but right in the middle of that any cloud is the network. And when we think about the network, we're just so excited about what we have done and what we're seeing in the industry. So let's click into this a little bit further. We've gotten a lot done over the last five years. Networking. Look at these numbers. 80 million switch ports have been shipped. We are now 10 x larger than number two and software defined networking. We have over 7,500 customers running on Nsx and maybe the stat that I'm most proud of is 82 percent of the fortune 100 has now adopted nsx. You have made nsx these standard and software defined networking. Thank you very much. Thank you. When we think about this journey that we're on, we started. You're saying, Hey, we've got to break the chains inside of the data center as we said. And then Nsx became the software defined networking platform. We started to do it through our cloud provider partners. Ibm made a huge commitment to partner with us and deliver this to their customers. We then said, boy, we're going to make a fundamental to all of our cloud services including aws. We built this bridge called the hybrid cloud extension. We said we're going to build it natively into what we're doing with Telcos, with Azure and Amazon as a service. We acquired the St Wagon, right, and a Velo cloud at the hottest product of Vm ware's portfolio today. The opportunity to fundamentally transform branch and wide area networking and we're extending it to the edge. You're literally, the world has become this complex network. We have seen the world go from the old defined by rigid boundaries, simply put in a distributed world. Hardware cannot possibly work. We're empowering customers to secure their applications and the data regardless of where they sit and when we think of the virtual cloud network, we say it's these three fundamental things, a cloud centric networking fabric with intrinsic security and all of it delivered in software. The world is moving from data centers to centers of data and they need to be connected and Nsx is the way that we will do that. So you'll be aware of is well known for this idea of talking but also showing. So no vm world keynote is okay without great demonstrations of it because you shouldn't believe me only what we can actually show and to do that know I'm going to have our CTL come onstage and CTL y'all. I used to be a cto and the CTO is the certified smart guy. He's also known as the chief talking officer and today he's my demo partner. Please walk, um, Vm ware, cto ray to the stage. Right morning pat. How you doing? Oh, it's great ray, and thanks so much for joining us. Know I promised that we're going to show off some pretty cool stuff here. We've covered a lot already, but are you up to the task? We're going to try and run through a lot of demos. We're going to do it fast and you're going to have to keep me on time to ask an awkward question. Slow me down. Okay. That's my fault if you run along. Okay, I got it. I got it. Let's jump right in here. So I'm a CTO. I get to meet lots of customers that. A few weeks ago I met a cio of a large distribution company and she described her it infrastructure as consisting of a number of data centers troll to us, which he also spoke of a large number of warehouses globally, and each of these had local hyperconverged compute and storage, primarily running surveillance and warehouse management applications, and she pulls me four questions. The first question she asked me, she says, how do I migrate one of these data centers to Vm ware cloud on aws? I want to get out of one of these data centers. Okay. Sounds like something andy and I were just talking exactly, exactly what you just spoke to a few moments ago. She also wanted to simplify the management of the infrastructure in the warehouse as themselves. Okay. He's age and smaller data centers that you've had out there. Her application at the warehouses that needed to run locally, butter developers wanted to develop using cloud infrastructure. Cloud API is a little bit late. The rds we spoken with her in. Her final question was looking to the future, make all this complicated management go away. I want to be able to focus on my application, so that's what my business is about. So give me some new ways of how to automate all of this infrastructure from the edge to the cloud. Sounds pretty clear. Can we do it? Yes we can. So we're going to dive right in right now into one of these demos. And the first demo we're going to look at it is vm ware cloud on aws. This is the best solution for accelerating this public cloud journey. So can we start the demo please? So what you were looking at here is one of those data centers and you should be familiar with this product. It's a familiar vsphere client. You see it's got a bunch of virtual machines running in there. These are the virtual machines that we now want to be able to migrate and move the VMC on aws. So we're going to go through that migration right now. And to do that we use a product that you've seen already atx, however it's the x has been, has got some new cool features since the last time we download it. Probably on this stage here last year, I wanted those in particular is how do we do bulk migration and there's a new cool thing, right? Whole thing we want to move the data center en mass and his concept here is cloud motion with vsphere replication. What this does is it replicates the underlying storage of the virtual machines using vsphere replication. So if and when you want to now do the final migration, it actually becomes a vmotion. So this is what you see going on right here. The replication is in place. Now when you want to touch you move those virtual machines. What you'll do is a vmotion and the key thing to think about here is this is an actual vmotion. Those the ends as room as they're moving a hustler, migrating remained life just as you would in a v motion across one particular infrastructure. Did you feel complete application or data center migration with no dying town? It's a Standard v motion kind of appearance. Wow. That is really impressive. That's correct. Wow. You. So one of the other things we want to talk about here is as we are moving these virtual machines from the on prem infrastructure to the VMC on aws infrastructure, unfortunately when we set up the cloud on VMC and aws, we only set up for hosts, uh, that might not be, that'd be enough because she is going to move the whole infrastructure of that this was something you guys, you and Andy referred to briefly data center. Now, earlier, this concept of elastic drs. what elastic drs does, it allows the VMC on aws to react to the workloads as they're being created and pulled in onto that infrastructure and automatically pull in new hosts into the VMC infrastructure along the way. So what you're seeing here is essentially the MC growing the infrastructure to meet the needs of the workloads themselves. Very cool. So overseeing that elastic drs. we also see the ebs capabilities as well. Again, you guys spoke about this too. This is the ability to be able to take the huge amount of stories that Amazon have, an ebs and then front that by visa you get the same experience of v Sign, but you get this enormous amount of storage capabilities behind it. Wow. That's incredible. That's incredible. I'm excited about this. This is going to enable customers to migrate faster and larger than ever before. Correct. Now she had a series of little questions. Okay. The second question was around what about all those data centers and those age applications that I did not move, and this is where we introduce the project which you've heard of already tonight called project dementia. What this does, it gives you the simplicity of Vm ware cloud, but bringing that out to the age, you know what's basically going on here, vmc on aws is a service which manages your infrastructure in aws. We know stretch that service out into your infrastructure, in your data center and at the age, allowing us to be able to manage that infrastructure in the same way. Once again, let's dive down into a demo and take a look at what this looks like. So what you've got here is a familiar series of services available to you, one of them, which is project dimension. When you enter project dimension, you first get a view of all of the different infrastructure that you have available to you, your data centers, your edge locations. You can then dive deeply into one of these to get a closer look at what's going on here. We're diving into one of these The problem is there's a networking problem going on in this warehouse. warehouses and we see it as a problem here. How do we know? We know because vm ware is running this as a managed service. We are directly managing or sorry, monitoring your infrastructure or we discover there's something going wrong here. We automatically create the ASR, so somebody is dealing with this. You have visibility to what's going on, but the vm ware managed service is already chasing the problem for you. Oh, very good. So now we're seeing this dispersed infrastructure with project dementia, but what's running on it so well before we get with running out, you've got another problem and the problem is of course, if you're managing a lot of infrastructure like this, you need to keep it up to date. And so once again, this is where the vm ware managed service kicks in. We manage that infrastructure in terms of patching it and updating it for you. And as an example, when we released a security patch, here's one for the recent l, one terminal fault, the Vmr managed service is already on that and making sure that your on prem and edge infrastructure is up to date. Very good. Now, what's running? Okay. So what's running, uh, so we mentioned this case of this software running at the edge infrastructure itself, and these are workloads which are running locally in those age, uh, those edge locations. This is a surveillance application. You can see it here at the bottom it says warehouse safety monitor. So this is an application which gathers images and then stores those images He said my sql database on top there, now this is where we leverage the somewhere and it puts them in a database. technology you just learned about when Andy and pat spoke about disability to take rds and run that on your on prem infrastructure. The block of virtual machines in the moment are the rds components from Amazon running in your infrastructure or in your edge location, and this gives you the ability to allow your developers to be able to leverage and operate against those Apis, but now the actual database, the infrastructure is running on prem and you might be doing just for performance reasons because of latency, you might be doing it simply because this data center is not always connected to the cloud. When you take a look into under the hood and see what's going on here, what you actually see this is vsphere, a modified version of vsphere. You see this new concept of my custom availability zone. That is the availability zone running on your infrastructure which supports or ds. What's more interesting is you flip back to the Amazon portal. This is typically what your developers are going to do. Once again, you see an availability zone in your Amazon portal. This is the availability zone running on your equipment in your data center. So we've truly taken that already as infrastructure and moved it to the edge so the developer sees what they're comfortable with and the infrastructure sees what they're comfortable with bridging those two worlds. Fabulous. Right. So the final question of course that we got here was what's next? How do I begin to look to the future and say I am going to, I want to be able to see all of my infrastructure just handled in an automated fashion. And so when you think about that, one of the questions there is how do we leverage new technologies such as ai and ml to do that? So what you've got here is, sorry we've got a little bit later. What you've got here is how do I blend ai in a male and the power of what's in the data center itself. Okay. And we could do that. We're bringing you the AI and ml, right? And fusing them together as never before to truly change how the data center operates. Correct. And it is this introduction is this merging of these things together, which is extremely powerful in my mind. This is a little bit like a self driving vehicle, so thinking about a car driving down the street is self driving vehicle, it is consuming information from all of the environment around it, other vehicles, what's happening, everything from the wetter, but it also has a lot of built in knowledge which is built up to to self learning and training along the way in the kids collecting lots of that data for decades. Exactly. And we've got all that from all the infrastructure that we have. We can now bring that to bear. So what we're focusing on here is a project called project magna and project. Magna leverage is all of this infrastructure. What it does here is it helps connect the dots across huge datasets and again a deep insight across the stack, all the way from the application hardware, the infrastructure to the public cloud, and even the age and what it does, it leverages hundreds of control points to optimize your infrastructure on Kpis of cost performance, even user specified policies. This is the use of machine language in order to fundamentally transform. I'm sorry, machine learning. I'm going back to some. Very early was here, right? This is the use of machine learning and ai, which will automatically transform. How do you actually automate these data centers? The goal is true automation of your infrastructure, so you get to focus on the applications which really served needs of your business. Yeah, and you know, maybe you could think about that as in the past we would have described the software defined data center, but in the future we're calling it the self driving data center. Here we are taking that same acronym and redefining it, right? Because the self driving data center, the steep infusion of ai and machine learning into the management and automation into the storage, into the networking, into vsphere, redefining the self driving data center and with that we believe fundamentally is to be an enormous advance and how they can take advantage of new capabilities from bm ware. Correct. And you're already seeing some of this in pieces of projects such as some of the stuff we do in wavefront and so already this is how do we take this to a new level and that's what project magnet will do. So let's summarize what we've seen in a few demos here as we work in true each of these very quickly going through these demos. First of all, you saw the n word cloud on aws. How do I migrate an entire data center to the cloud with no downtime? Check, we saw project dementia, get the simplicity of Vm ware cloud in the data center and manage it at the age as a managed service check. Amazon rds and Vm ware. Cool Demo, seamlessly deploy a cloud service to an on premises environment. In this case already. Yes, we got that one coming in are in m five. And then finally project magna. What happens when you're looking to the future? How do we leverage ai and ml to self optimize to virtual infrastructure? Well, how did ray do as our demo guy? Thank you. Thanks. Thanks. Right. Thank you. So coming back to this picture, our gps for the day, we've covered any cloud, let's click into now any application, and as we think about any application, we really view it as this breadth of the traditional cloud native and Sas Coobernetti is quickly maybe spectacularly becoming seen as the consensus way that containers will be managed and automate as the framework for how modern APP teams are looking at their next generation environment, quickly emerging as a key to how enterprises build and deploy their applications today. And containers are efficient, lightweight, portable. They have lots of values for developers, but they need to also be run and operate and have many infrastructure challenges as well. Managing automation while patch lifecycle updates, efficient move of new application services, know can be accelerated with containers. We also have these infrastructure problems and you know, one thing we want to make clear is that the best way to run a container environment is on a virtual machine. You know, in fact, every leader in public cloud runs their containers and virtual machines. Google the creator and arguably the world leader in containers. They runs them all in containers. Both their internal it and what they run as well as G K, e for external users as well. They just announced gke on premise on vm ware for their container environments. Google and all major clouds run their containers and vms and simply put it's the best way to run containers. And we have solved through what we have done collectively the infrastructure problems and as we saw earlier, cool new container apps are also typically some ugly combination of cool new and legacy and existing environments as well. How do we bridge those two worlds? And today as people are rapidly moving forward with containers and Coobernetti's, we're seeing a certain set of problems emerge. And Dan cone, right, the director of CNCF, the Coobernetti, uh, the cloud native computing foundation, the body for Coobernetti's collaboration and that, the group that sort of stewards the standardization of this capability and he points out these four challenges. How do you secure them? How do you network and you know, how do you monitor and what do you do for the storage underneath them? Simply put, vm ware is out to be, is working to be is on our way to be the dial tone for Coobernetti's. Now, some of you who were in your twenties might not know what that means, so we know over to a gray hair or come and see me afterward. We'll explain what dial tone means to you or maybe stated differently. Enterprise grade standard for Cooper netties and for that we are working together with our partners at Google as well as pivotal to deliver Vm ware, pks, Cooper netties as an enterprise capability. It builds on Bosh. The lifecycle engine that's foundational to the pivotal have offerings today, uh, builds on and is committed to stay current with the latest Coobernetti's releases. It builds on Nsx, the SDN container, networking and additional contributions that were making like harbor the Vm ware open source contribution for the container registry. It packages those together makes them available on a hybrid cloud as well as public cloud environments with pks operators can efficiently deploy, run, upgrade their coopernetties environments on SDDC or on all public clouds. While developers have the freedom to embrace and run their applications rapidly and efficiently, simply put, pks, the standard for Coobernetti's in the enterprise and underneath that Nsx you'll is emerging as the standard for software defined networking. But when we think about and we saw that quote on the challenges of Kubernetes today, we see that networking is one of the huge challenge is underneath that and in a containerized world, things are changing even more rapidly. My network environment is moving more quickly. NSX provides the environment's easily automate networking and security for rapid deployment of containerized environments that fully supports the MRP chaos, fully supports pivotal's application service, and we're also committed to fully support all of the major kubernetes distribution such as red hat, heptio and docker as well Nsx, the only platform on the planet that can address the complexity and scale of container deployments taken together Vm Ware, pks, the production grade computer for the enterprise available on hybrid cloud, available on major public clouds. Now, let's not just talk about it again. Let's see it in action and please walk up to the stage. When di Carter with Ray, the senior director of cloud native marketing for Vm ware. Thank you. Hi everybody. So we're going to talk about pks because more and more new applications are built using kubernetes and using containers with vm ware pts. We get to simplify the deploying and the operation of Kubernetes at scale. When the. You're the experts on all of this, right? So can you take as true the scenario of how pks or vm ware pts can really help a developer operating the Kubernedes environment, developed great applications, but also from an administrator point of view, I can really handle things like networking, security and those configurations. Sounds great. I love to dive into the demo here. Okay. Our Demo is. Yeah, more pks running coubernetties vsphere. Now pks has a lot of cool functions built in, one of which is Nsx. And today what I'm going to show you is how NSX will automatically bring up network objects as quick Coobernetti's name spaces are spun up. So we're going to start with the fees per client, which has been extended to Ron pks, deployed cooper clusters. We're going to go into pks instance one, and we see that there are five clusters running. We're going to select one other clusters, call application production, and we see that it is running nsx. Now a cluster typically has multiple users and users are assigned namespaces, and these namespaces are essentially a way to provide isolation and dedicated resources to the users in that cluster. So we're going to check how many namespaces are running in this cluster and more brought up the Kubernetes Ui. We're going to click on namespace and we see that this cluster currently has four namespaces running wire. We're going to do next is bringing up a new name space and show that Nsx will automatically bring up the network objects required for that name space. So to do that, we're going to upload a Yammel file and your developer may actually use Ku Kata command to do this as well. We're going to check the namespace and there it is. We have a new name space called pks rocks. Yeah. Okay. Now why is that guy now? It's great. We have a new name space and now we want to make sure it has the network elements assigned to us, so we're going to go to the NSX manager and hit refresh and there it is. PKS rocks has a logical robber and a logical switch automatically assigned to it and it's up and running. So I want to interrupt here because you made this look so easy, right? I'm not sure people realize the power of what happened here. The developer, winton using Kubernetes, is api infrastructure to familiar with added a new namespace and behind the scenes pks and tardy took care of the networking. It combination of Nsx, a combination of what we do at pks to truly automate this function. Absolutely. So this means that if you are on the infrastructure operation, you don't need to worry about your developer springing up namespaces because Nsx will take care of bringing the networking up and then bringing them back down when the namespace is not used. So rate, but that's not it. Now, I was in operations before and I know how hard it is for enterprises to roll out a new product without visibility. Right, so pks took care of those dates, you operational needs as well, so while it's running your clusters, it's also exporting Meta data so that your developers and operators can use wavefront to gain deep visibility into the health of the cluster as well as resources consumed by the cluster. So here you see the wavefront Ui and it's showing you the number of nodes running, active parts, inactive pause, et cetera. You can also dive deeper into the analytics and take a look at information site, Georgia namespace, so you see pks rocks there and you see the number of active nodes running as well as the CPU utilization and memory consumption of that nice space. So now pks rocks is ready to run containerized applications and microservices. So you just get us a very highlight of a demo here to see a little bit what pks pks says, where can we learn more? So we'd love to show you more. Please come by the booth and we have more cool functions running on pks and we'd love to have you come by. Excellent. Thank you, Lindy. Thank you. Yeah, so when we look at these types of workloads now running on vsphere containers, Kubernedes, we also see a new type of workload beginning to appear and these are workloads which are basically machine learning and ai and in many cases they leverage a new type of infrastructure, hardware accelerators, typically gps. What we're going to talk about here is how in video and Vm ware have worked together to give you flexibility to run sophisticated Vdi workloads, but also to leverage those same gpu for deep learning inference workloads also on vsphere. So let's dive right into a demo here. Again, what you're seeing here is again, you're looking at here, you're looking at your standard view realized operations product, and you see we've got two sets of applications here, a Vdi desktop workload and machine learning, and the graph is showing what's happening with the Vdi desktops. These are office workers leveraging these desktops everyday, so of course the infrastructure is super busy during the daytime when they're in the office, but the green area shows this is not been used very heavily outside of those times. So let's take a look. What happens to the machine learning application in this case, this organization leverages those available gpu to run the machine learning operations outside the normal working hours. Let's take a little bit of a deeper dive into what the application it is before we see what we can do from an infrastructure and configuration point of view. So this machine learning application processes a vast number of images and it clarify or sorry, it categorizes these images and as it's doing so, it is moving forward and putting each of these in a database and you can see it's operating here relatively fast and it's leveraging some gps to do that. So typical image processing type of machine learning problem. Now let's take a dive in and look at the infrastructure which is making this happen. First of all, we're going to look only at the Vdi employee Dvt, a Vdi infrastructure here. So I've got a bunch of these applications running Vdi applications. What I want to do is I want to move these so that I can make this image processing out a application run a lot faster. Now normally you wouldn't do this, but pot insisted that we do this demo at 10:30 in the morning when the office workers are in there, so we're going to move older Vdi workloads over to the other cluster and that's what you're seeing is going on right now. So as they move over to this other cluster, what we are now doing is freeing up all of the infrastructure. The GPU that Vdi workload was using here. We see them moving across and now you've freed up that infrastructure. So now we want to take a look at this application itself, the machine learning application and see how we can make use of that. Now freed up infrastructure we've got here is the application is running using one gpu in a vsphere cluster, but I've got three more gpu is available now because I've moved the Vdi workloads. We simply modify the application, let it know that these are available and you suddenly see an increase in the processing capabilities because of what we've done here in terms of making the flexibility of accessing those gps. So what you see here is the same gps that youth for Vdi, which you probably have in your infrastructure today, can also be used to run sophisticated machine learning and ai type of applications on your vsphere infrastructure. So let's summarize what we've seen in the various demos here in this section. First of all, we saw how the MRPS simplifies the deployment and operating operation of Kubernetes at scale. What we've also seen is that leveraging the Nvidia Gpu, we can now run the most demanding workloads on vsphere. When we think about all of these applications and these new types of workloads that people are running. I want to take one second to speak to another workload that we're seeing beginning to appear in the data center. And this is of course blockchain. We're seeing an increasing number of organizations evaluating blockchains for smart contract and digital consensus solutions. So this tech, this technology is really becoming or potentially becoming a critical role in how businesses will interact each other, how they will work together. We'd project concord, which is an open source project that we're releasing today. You get the choice, performance and scale of verifiable trust, which you can then bring to bear and run in the enterprise, but this is not just another blockchain implementation. We have focused very squarely on making sure that this is good for enterprises. It focuses on performance, it focuses on scalability. We have seen examples where running consensus algorithms have taken over 80 days on some of the most common and widely used infrastructure in blockchain and we project conquered. You can do that in two and a half hours. So I encourage you to check out this project on get hub today. You'll also see lots of activity around the whole conference. Speaking about this. Now we're going to dive into another section which is the anti device section. And for that I need to welcome pat back up there. Thank you pat. Thanks right. So diving into any device piece of the puzzle, you and as we think about the superpowers that we have, maybe there are no more area that they are more visible than in the any device aspect of our picture. You know, and as we think about this, the superpowers, you know, think about mobility, right? You know, and how it's enabling new things like desktop as a service in the mobile area, these breadth of smartphones and devices, ai and machine learning allow us to manage them, secure them and this expanding envelope of devices in the edge that need to be connected and wearables and three d printers and so on. We've also seen increasing research that says engaged employees are at the center of business success. Engaged employees are the critical ingredient for digital transformation. And frankly this is how I run vm ware, right? You know, I have my device and my work, all my applications, every one of my 23,000 employees is running on our transformed workspace one environment. Research shows that companies that, that give employees ready anytime access are nearly three x more likely to be leaders in digital transformation. That employees spend 20 percent of their time today on manual processes that can be automated. The way team collaboration and speed of division decisions increases by 16 percent with engaged employees with modern devices. Simply put this as a critical aspect to enabling your business, but you remember this picture from the silos that we started with and each of these environments has their own tribal communities of management, security automation associated with them, and the complexity associated with these is mind boggling and we start to think about these. Remember the I'm a pc and I'm a Mac. Well now you have. I'm an Ios. I'm a droid and other bdi and I'm now a connected printer and I'm a connected watch. You remember citrix manager and good is now bad and sccm a failed model and vpns and Xanax. The chaos is now over at the center of that is vm ware, workspace one, get it out of the business of managing devices, automate them from the cloud, but still have the mentor price. Secure cloud based analytics that brings new capabilities to this critical topic. You'll focus your energy on creating employee and customer experiences. You know, new capabilities to allow like our airlift, the new capability to help customers migrate from their sccm environment to a modern management, expanding the use of workspace intelligence. Last year we announced the chromebook and a partnership with HP and today I'm happy to announce the next step in our partnerships with Dell. And uh, today we're announcing that Dell provisioning for Vm ware, workspace one as part of Dell's ready to work solutions Dallas, taking the next leap and bringing workspace one into the core of their client to offerings. And the way you can think about this as Literally a dell drop ship, lap pops showing up to new employee. day one, productivity. You give them their credential and everything else is delivered by workspace one, your image, your software, everything patched and upgraded, transforming your business, right beginning at that device experience that you give to your customer. And again, we don't want to talk about it. We want to show you how this works. Please walk to the stage with re renew the head of our desktop products marketing. Thank you. So we just heard from pat about how workspace one integrated with Dell laptops is really set up to manage windows devices. What we're broadly focused on here is how do we get a truly modern management system for these devices, but one that has an intelligence behind it to make sure that we're kept with a good understanding of how to keep these devices always up to date and secure. Can we start the demo please? So what we're seeing here is to be the the front screen that you see of workspace one and you see you've got multiple devices a little bit like that demo that patch assured. I've got Ios, android, and of course I've got windows renewal. Can you please take us through how workspace one really changes the ability of somebody an it administrator to update and manage windows into our environment? Absolutely. With windows 10, Microsoft has finally joined the modern management body and we are really excited about that. Now. The good news about modern management is the frequency of ostp updates and how quickly they come out because you can address all those security issues that are hitting our radar on a daily basis, but the bad news about modern management is the frequency of those updates because all of us in it admins, we have to test each and every one of our applications would that latest version because we don't want to roll out that update in case of causes any problems with workspace one, we saw that we simply automate and provide you with the APP compatibility information right out of the box so you can now automate that update process. Let's take a quick look. Let's drill down here further into the windows devices. What we'll see is that only a small percentage of those devices are on that latest version of operating system. Now, that's not a good thing because it might have an important security fix. Let's scroll down further and see what the issue is. We find that it's related to app compatibility. In fact, 38 percent of our devices are blocked from being upgraded and the issue is app compatibility. Now we were able to find that not by asking the admins to test each and every one of those, but we combined windows analytics data with APP intelligent out of the box and be provided that information right here inside of the console. Let's dig down further and see what those devices and apps look like. So knew this is the part that I find most interesting. If I am a system administrator at this point I'm looking at workspace one is giving me a key piece of information. It says if you proceed with this update, it's going to fail 84, 85 percent at a time. So that's an important piece of information here, but not alone. Is it telling me that? It is telling me roughly speaking why it thinks it's going to fail. We've got a number of apps which are not ready to work with this new version, particularly the Mondo card sales lead tracker APP. So what we need to do is get engineering to tackle the problems with this app and make sure that it's updated. So let's get fixing it in order to fix it. What we'll do is create an automation and we can do this right out of the box in this automation will open up a Jira ticket right from within the console to inform the engineers about the problem, not just that we can also flag and send a notification to that engineering manager so that it's top of mine and they can get working on this fixed right away. Let's go ahead and save that automation right here, ray UC. There's the automation that we just So what's happening here is essentially this update is now scheduled meeting. saved. We can go and update oldest windows devices, but workspace one is holding the process of proceeding with that update, waiting for the engineers to update the APP, which is going to cause the problem. That's going to take them some time, right? So the engineers have been working on this, they have a fixed and let's go back and see what's happened to our devices. So going back into the ios updates, what we'll find is now we've unblocked those devices from being upgraded. The 38 percent has drastically dropped down. It can rest in peace that all of the devices are compliant and on that latest version of operating system. And again, this is just a snapshot of the power of workspace one to learn more and see more. I invite you all to join our EOC showcase keynote later this evening. Okay. So we've spoken about the presence of these new devices that it needs to be able to manage and operate across everything that they do. But what we're also seeing is the emergence of a whole new class of computing device. And these are devices which are we commonly speak to have been at the age or embedded devices or Iot. And in many cases these will be in factories. They'll be in your automobiles, there'll be in the building, controlling, controlling, uh, the building itself, air conditioning, etc. Are quite often in some form of industrial environment. There's something like this where you've got A wind farm under embedded in each of these turbines. This is a new class of computing which needs to be managed, secured, or we think virtualization can do a pretty good job of that in new virtualization frontier, right at the edge for iot and iot gateways, and that's gonna. That's gonna, open up a whole new realm of innovation in that space. Let's dive down and taking the demo. This spaces. Well, let's do that. What we're seeing here is a wind turbine farm, a very different than a data center than what we're used to and all the compute infrastructure is being managed by v center and we see to edge gateway hose and they're running a very mission critical safety watchdog vm right on there. Now the safety watchdog vm is an fte mode because it's collecting a lot of the important sensor data and running the mission critical operations for the turbine, so fte mode or full tolerance mode, that's a pretty sophisticated virtualization feature allowing to applications to essentially run in lockstep. So if there's a failure, wouldn't that gets to take over immediately? So this no sophisticated virtualization feature can be brought out all the way to the edge. Exactly. So just like in the data center, we want to perform an update, so as we performed that update, the first thing we'll do is we'll suspend ft on that safety watchdog. Next, we'll put two. Oh, five into maintenance mode. Once that's done, we'll see the power of emotion that we're all familiar with. We'll start to see all the virtual machines vmotion over to the second backup host. Again, all the maintenance, all the update without skipping a heartbeat without taking down any daily operations. So what we're seeing here is the basic power of virtualization being brought out to the age v motion maintenance mode, et cetera. Great. What's the big deal? We've been doing that for years. What's the, you know, come on. What's the big deal? So what you're on the edge. So when you get to the age pack, you're dealing with a whole new class of infrastructure. You're dealing with embedded systems and new types of cpu hours and process. This whole demo has been done on an arm 64. Virtualization brought to arm 64 for embedded devices. So we're doing this on arm on the edge, correct. Specifically focused for embedded for age oems. Okay. Now that's good. Okay. Thank you ray. Actually, we've got a summary here. Pat, just a second before you disappear. A lot to rattle off what we've just seen, right? We've seen workspace one cross platform management. What we've also seen, of course esx for arm to bring the power of vfx to edge on 64, but are in platforms will go no. Okay. Okay. Thank you. Thanks. Now we've seen a look at a customer who is taking advantage of everything that we just saw and again, a story of a customer that is just changing lives in a fundamental way. Let's see. Make a wish. So when a family gets the news that a child is sick and it's a critical illness, it could be a life threatening illness. The whole family has turned upside down. Imagine somebody comes to you and they say, what's the one thing you want that's in your heart? You tell us and then we make that happen. So I was just calling to give you the good news that we're going to be able to grant jackson a wish make, which is the largest wish granting organizations in the United States. English was featured in the cbs 60 minutes episode. Interestingly, it got a lot of hits, but uh, unfortunately for the it team, the whole website crashed make a wish is going through a program right now where we're centralizing technology and putting certain security standards in place at our chapters. So what you're seeing here, we're configuring certain cloud services to make sure that they always are able to deliver on the mission whether they have a local problem or not is we continue to grow the partnership and work with vm ware. It's enabling us to become more efficient in our processes and allows us to grant more wishes. It was a little girl. She had a two year old brother. She just wanted a puppy and she was forthright and I want to name the puppy in my name so my brother would always have me to list them off a five year old. It's something we can't change their medical outcome, but we can change their spiritual outcome and we can transform their lives. Thank you. Working together with you truly making wishes come true. The last topic I want to touch on today, and maybe the most important to me personally is security. You got to fundamentally, when we think about this topic of security, I'll say it's broken today and you know, we would just say that the industry got it wrong that we're trying to bolt on or chasing bad, and when we think about our security spend, we're spending more and we're losing more, right? Every day we're investing more in this aspect of our infrastructure and we're falling more behind. We believe that we have to have much less security products and much more security. You know, fundamentally, you know, if you think about the problem, we build infrastructure, right? Generic infrastructure, we then deploy applications, all kinds of applications, and we're seeing all sorts of threats launched that as daily tens of millions. You're simple virus scanner, right? Is having tens of millions of rules running and changing many times a day. We simply believe the security model needs to change. We need to move from bolted on and chasing bad to an environment that has intrinsic security and is built to ensure good. This idea of built in security. We are taking every one of the core vm ware products and we are building security directly into it. We believe with this, we can eliminate much of the complexity. Many of the sensors and agents and boxes. Instead, they'll directly leverage the mechanisms in the infrastructure and we're using that infrastructure to lock it down to behave as we intended it to ensure good, right on the user side with workspace one on the network side with nsx and microsegmentation and storage with native encryption and on the compute with app defense, we are building in security. We're not chasing threats or adding on, but radically reducing the attack surface. When we look at our applications in the data center, you see this collection of machines running inside of it, right? You know, typically running on vsphere and those machines are increasingly connected. Through nsx and last year we introduced the breakthrough security solution called app defense and app defense. Leverages the unique insight we get into the application so that we can understand the application and map it into the infrastructure and then you can lock down, you could take that understanding, that manifest of its behavior and then lock those vms to that intended behavior and we do that without the operational and performance burden of agents and other rear looking use of attack detection. We're shrinking the attack surface, not chasing the latest attack vector, you know, and this idea of bolt on versus chasing bad. You sort of see it right in the network. Machines have lots of conductivity, lots of applications running and something bad happens. It basically has unfettered access to move horizontally through the data center and most of our security is north, south. MosT of the attacks are eastwest. We introduced this idea of microsegmentation five years ago, and by it we're enabling organizations to secure some networks and separate sensitive applications and services as never before. This idea isn't new, that just was never practical before nsx, but we're not standing still. Our teams are innovating to leap beyond 12. What's next beyond microsegmentation, and we see this in three simple words, learn, imagine a system that can look into the applications and understand their behavior and how they should operate. we're using machine learning and ai instead of chasing were to be able to ensure good where that that system can then locked down its behavior so the system consistently operates that way, but finally we know we have a world of increasing dynamic applications and as we move to more containerize the microservices, we know this world is changing, so we need to adapt. We need to have more automation to adapt to the current behavior. Today I'm very excited to have two major announcements that are delivering on this vision. The first of those vsphere platinum, our flagship vm ware vsphere product now has app defense built right in platinum will enable virtualization teams. Yeah, go ahead. Yeah, let's use it. Platinum will enable virtualization teams you to give an enormous contribution to the security profile of your enterprise. You could see whatever vm is for its purpose, its behavior until the system. That's what it's allowed to do. Dramatically reducing the attack surface without impact. On operations or performance, the capability is so powerful, so profound. We want you to be able to leverage it everywhere, and that's why we're building it directly into vsphere, vsphere platinum. I call it the burger and fries. You know, nobody leaves the restaurant without the fries who would possibly run a vm in the future without turning security on. That's how we want this to work going forward. Vsphere platinum and as powerful as microsegmentation has been as an idea. We're taking the next step with what we call adaptive microsegmentation. We are fusing Together app defense and vsphere with nsx to allow us to align the policies of the application through vsphere and the network. We can then lock down the network and the compute and enable this automation of the microsegment formation taken together adaptive microsegmentation. But again, we don't want to just tell you about it. We want to show you. Please welcome to the stage vj dante, who heads our machine learning team for app dispense. Vj a very good vj. Thanks for joining us. So, you know, I talked about this idea right, of being able to learn, lock and adapt. Uh, can you show it to us? Great. Yeah. Thank you. With vc a platinum, what we have done is we have put in everything you need to learn, lock and adapt, right with the infrastructure. The next time you bring up your wifi at line, you'll actually see a difference right in there. Let's go with that demo. There you go. And when you look at our defense there, what you see is that all your guests, virtual machines and all your host, hundreds of them and thousands of virtual machines enabling for that difference. It's in there. And what that does is immediately gets you visibility into the processes running on those virtual machines and the risk for the first time. Think about it for the first time. You're looking at the infrastructure through the lens of an application. Here, for example, the ecommerce application, you can see the components that make up that application, how they interact with each other, the specific process, a specific ip address on a specific board. That's what you get, but so we're learning the behavior. Yes. Yeah, that's very good. But how do you make sure you only learn good behavior? Exactly. How do we make sure that it's not bad? We actually verify me insured. It's all good. We ensured that everybody these reputation is verified. We ensured that the haven is verified. Let's go to svc host, for example. This process can exhibit hundreds of behaviors across numerous. Realize what we do here is we actually verify that failure saw us. It's actually a machine learning models that had been trained on millions of instances of good, bad at you said, and then automatically verify that for okay, so we said, you. We learned simply, learn now, lock. How does that work? Well, once you learned the application, locking it is as simple as clicking on that verify and protect button and then you can lock both the compute and network and it's done. So we've pushed those policies into nsx and microsegmentation has been established actually locked down the compute. What is the operating system is exactly. Let's first look at compute, protected the processes and the behaviors are locked down to exactly what is allowed for that application. And we have bacon policies and program your firewall. This is nsx being configured automatically for you, laurie, with one single click. Very good. So we said learn lock. Now, how does this adapt thing work? Well, a bad change is the only constant, but modern applications applications change on a continuous basis. What we do is actually pretty simple. We look at every change as it comes in determinant is good or bad. If it's good, we say allow it, update the policies. That's bad. We denied. Let's look at an example as asco dxc. It's exhibiting a behavior that they've not seen getting the learning period. Okay? So this machine has never behave this This hasn't been that way. But. way. But again, our machine learning models had seen thousands of instances of this process. They know this is normal. It talks on three 89 all the time. So what it's done to the few things, it's lowered the criticality of the alarm. Okay, so false positive. Exactly. The bane of security operations, false positives, and it has gone and updated. Jane does locks on compute and network to allow for that behavior. Applications continues to work on this project. Okay, so we can learn and adapt and action right through the compute and the network. What about the client? Well, we do with workplace one, intelligence protect and manage end user endpoint, but what's one intelligence? Nsx and actually work together to protect your entire data center infrastructure, but don't believe me. You can watch it for yourself tomorrow tom cornu keynote. You want to be there, at 1:00 PM, be there or be nowhere. I love you. Thank you veejay. Great job. Thank you so much. So the idea of intrinsic security and ensuring good, we believe fundamentally changing how security will be delivered in the enterprise in the future and changing the entire security industry. We've covered a lot today. I'm thrilled as I stand on stage to stand before this community that truly has been at the center of changing the world of technology over the last couple of decades. In it. We've talked about this idea of the super powers of technology and as they accelerate the huge demand for what you do, you know in the same way we together created this idea of the virtual infrastructure admin. You'll think about all the jobs that we are spawning in the discussion that we had today, the new skills, the new opportunities for each one of us in this room today, quantum program, machine learning engineer, iot and edge expert. We're on the cusp of so many new capabilities and we need you and your skills to do that. The skills that you possess, the abilities that you have to work across these silos of technology and enabled tomorrow. I'll tell you, I am now 38 years in the industry and I've never been more excited because together we have the opportunity to build on the things that collective we have done over the last four decades and truly have a positive global impact. These are hard problems, but I believe together we can successfully extend the lifespan of every human being. I believe together we can eradicate chronic diseases that have plagued mankind for centuries. I believe we can lift the remaining 10 percent of humanity out of extreme poverty. I believe that we can reschedule every worker in the age of the superpowers. I believe that we can give modern ever education to every child on the planet, even in the of slums. I believe that together we could reverse the impact of climate change. I believe that together we have the opportunity to make these a reality. I believe this possibility is only possible together with you. I asked you have a please have a wonderful vm world. Thanks for listening. Happy 20th birthday. Have a great topic.

>> Announcer: Live from Las Vegas, it's theCube covering Dell Technologies World 2018. Brought to you by Dell EMC, and it's ecosystem partners. >> And welcome back as we continue our coverage here on theCube, of Dell Technologies 2018. Big show going on here in Las Vegas, we're at the Sands right now, 14,000 people strong in attendance. This is day two of three of live coverage right here on theCube. Along with Keith Townsend, I am John Walls and we're now joined by Matt Liebowitz who is the Global Lead of Multi-Cloud Infrastructure at Dell EMC Consulting. Matt, thank you for joining us here on theCube. >> Happy to be here. Long time listener, first time caller. (laughter) >> John: Alright. You're on the phone, Matt go. (laughter) And Vijay Kanchi, who is the Global Innovation Lead of IT Transformation at Dell EMC. First time listener as well, Vijay? >> Yes, absolutely, and delighted to be here, thank you. >> John: Or long time listener, first time caller. >> Matt: Got to get that terminology right. >> John: Matt in New Jersey you're on, go. Let's talk New Jersey Devils. Let's talk first off about the way your two units intertwine. Just so we set the table here a little bit and understand how the two of you and the people with whom you work, how you interact at Dell. >> Matt: It'd maybe make sense if you start Vijay, and then I'll... >> Yes, so we're part of Dell EMC's consulting organization, and within that consulting organization, Matt and I work together to focus on IT transformation programs. So we design and develop services for our consulting services organization, to go deliver IT transformation programs. >> John: Okay. So, digital transformation you know, thrown around quite a bit these days. >> Vijay: Yeah When you look at it from the macro picture, from an organizational standpoint, from their perspective. What does that mean, if you will, how do you get organizations to buy-in? Because I'm sure the IT professionals with whom you work, they're in large part, they're there, I would guess. But they've got to bring along an entire organization with them, and that's a tall task, Matt. >> Matt: Yeah, there's no doubt that when it comes to Cloud, and especially Multicloud, Like you said, the whole organization needs to come along for the ride. It's not something that IT can do in a vacuum, and we've seen when they try to do it in a vacuum, they're often unsuccessful. So get those stakeholders involved, outside of IT, executive level, bring them in, show them, share with them your KPI's for success. Show them what success looks like, and then bring them along for the ride. That's ultimately how you get success with Cloud. >> Keith: So let's talk progression. What are the most successful projects, at least what is the data points you see out of the most successful projects when the C-Suite says you know what, we're going to do digital transformation, IT go execute. What are the critical points of information IT needs to collect, so that they can come to Dell EMC Consulting to help execute on that strategy? >> Matt: Well it's a long list. How much time do we have? (laughter) You know again, I think success criteria, what success looks like is really important. Because I think what you said is what often happens. You know IT leaders or leaders of the organization say we need to transform, we need to change our business to adapt. >> Keith: Yeah, what is transformation, what does that even mean? >> Right. That's up to the business to define what the next stage looks like. And so that could be anything from just being able to operate like a Public Cloud, provision quickly, iterate quickly on new software and new development tools. Or it could be a major transformation of the whole business, where they're entering a new market and they need to operate a little differently. >> Keith: So what... >> Vijay: Just to add to what Matt just said, you know from a digital transformation perspective, it's all about getting velocity of application, functionality out to customers, users, and stakeholders. When a C-Suite leadership comes and says we need to go transform all our business, then they really look to IT as a significant player to enable that. And one of the biggest issues that you have in driving capability to market fast, is being able to go build infrastructure or environment pretty quickly. Most IT organizations are, you know, dealing with technical debt that's been around for at least 25, 30 years. It starts with, you know, Legacy critical systems that are potentially Mainframe, Client Server, all the way through, you know, digital platforms that they've built up. And so in order to be able to go make that work, I think the one key important thing that we always talk about is, you need to go get automation of your code delivery process, and then you need to go in and build infrastructure and environment so that you don't have as much queue time versus run time. Cause ITs have historically been in the request-response business. I'm sure in your world as well, if you need a fix to your computer, the first thing you have to do, call up or send a request that goes to somewhere, somebody is sitting behind the queue and they're processing it. And so the whole objective to make digital transformation, is to be able to reduce and eliminate the queue time eventually, and enable the run time. So that's kind of the first thing, from an operational perspective, and then from an outcomes perspective, it's about sitting down and bringing a cross-functional team of folks from Marketing, Business units, IT, Security and Compliance, and bringing them together to figure out what sort of outcomes they're looking to achieve, what does that journey look like timing-wise, from an outcomes perspective, and then work to bring everybody together to establish a shared purpose, and a shared objective. So those are some of the key things that we find that almost every single time you engage with customers, you've got to have those conversations first in order to be able to go dig under the covers to figure out where the issues are, and then start to unclog the jams where they exist. (coughing) In the plumbing of IT. (laughter) >> This is part of that people transformation Michael talked about on stage today, yesterday, and then was brought up again on stage today. Having that conversation, for someone who's usually head down, maintaining AIX, maintaining new infrastructure for a digital, we're not equipped to normally have that conversation. Where are you seeing the gaps in skill, and how do organizations close that gap so they can even come to you guys and say, you know what, we can see clearly we need to automate our CICD process, help us through that, which is where you guys excel. >> So go ahead Matt. >> Well I think that it's a challenge because sometimes they don't even know what they don't know. >> Keith: Yeah, don't know what we don't know. >> Right. And so they'll come to us and give us a request like that. We need to modernize our infrastructure, we need to automate, and deliver IT as a service. They don't really know what that means. And so they're going to need to re-skill some of their folks. And I think that's operationally very scary for individuals who work in IT. But the reality is, and you know we see this over and over again, if you want to attract the best and the brightest in IT, you need to be working with the latest technology. And so folks shouldn't be afraid of that change. They should embrace it because ultimately it's going to drive their career forward, and when they're working on the latest and the greatest, they're going to deliver value for the business instead of just keeping the lights on. >> John: And that's kind of the challenge. So it is, I just figured this out, right, (laughter) and all of a sudden, that cycle exponentially, I mean capabilities increase, your skill set is lagging, and now you've got to play catch-up as an IT professional. >> Keith: I just learned how to spell Kubernetes yesterday. (laughter) >> If you could teach me, that'd be great. >> Capital K. (laughter) >> I mean it's true though. I've been working with virtualization for a long time, and it's funny to see the progression back in 2001, 2002, where everyone just thought this thing is crazy, nobody's going to do this. You know, we get to the point where we're having conversations around virtualization-first policies, and now we're talking about Cloud-first policies. So technology and the pace of change waits for nobody. And so we have to help organizations be ready to adopt that change. >> John: What is it right now? What's the big leap you think that on the client's side, that their teams have to make? >> Vijay: So there's probably three areas that I see that they have to make some changes. So from a business perspective in IT, they need to trust IT and integrate their needs and requirements into a process where, businesses really often times don't know what specifically they want from IT. They know and they have some vision of what they want to achieve. And so they need to go sit with, in a collaborative way, that the IT teams and often times the security teams, the CISO teams, to build together, I'll call it a cross-functional team, that can really come together to tease out, and brainstorm their way through to figure out what are the outcomes that they're trying to achieve. What is the strategy, and what do they need to look like in three years from now, and then work their way back. So that's one piece, this cultural shift in how IT engages with business. The second part is around how do organizations get better? We've been hearing about the DevOps changes that drive, but DevOps is as much a tools and technologies conversation as it is a cultural shift to get the people that were authors and critics, coders and operations folks, problem creators versus problem managers and maintainers. So those roles have been very cantankerous for the last 20 years, because the operations folks are responsible in driving for stability, reliability, and availability. Whereas coders are focused on driving new innovation. So fundamentally different objectives. So in order to make that shift, you need to go in and create another environment and culture of shared pain and shared objectives and shared rewards. So that's another key chain. And then from a skills perspective, what we're finding is that, when we get to the technology and infrastructure part, the folks who used to be storage, administrators, network administrators, computer administrators, et cetera, they now have to go broader, not as much deep in silos, and they need to look at convergence, for example, infrastructure. They need to be thinking about stitching that together with security and DevOps and Cloud SecOps. And so those are the key differences. From an administrator perspective, you need to go in and take your existing skills, and expand to be more broader, versus silo. There are some new skills that are needed to enable all this. I kind of look at the third part being the new skills are, you need folks that never did this type of stuff before to go start doing Cloud Administrative, Multi-Cloud Management and Operations. You need to be able to go do what Google calls Sight Reliability Engineering, and what Cloud Foundry calls Platform Operations and Platform Engineering. So those are... >> Keith: So, even before we get there, >> Yeah, yeah >> From a brefa capability for the Dell organization, consulting organization, the requirements and demand on the organization has changed. It went from, you know I help design, install, and operationalize a VMAX and VMR infrastructure to help me enable a DevOps practice, which is two completely different sets of skill. From a practical perspective, >> Vijay: Absolutely two years ago you look at Comcast's DevOps team, that whole team is now at Wal-Mart. >> Vijay: Yep. >> How do you guys create and nurture the skill set needed to even deliver the capability from a services side? >> Well I mean, that's a great question because we have to transform too. >> Right. >> Because we have to transform and meet the needs of our customers. That's primarily the responsibility of the consulting organization, to stay on top of technology, and move into those new areas of skill. You know if you look back just a couple of years ago and you saw the kind of work that our consulting organization was doing, you know a lot of things like helping customers migrate Exchange Servers and SQL Servers, we don't do a lot of that anymore. We're helping them design and create a transformation roadmap for Multicloud. So it's really important for us to keep our folks as skilled and looking six, 12, 18 months in advance, so that we don't have the problem you just described, where our entire team moves from, you know, one organization to another, our customers need something from us and we can't deliver it. That's a high importance for us. >> Viajy: And from a consulting organization perspective, as Matt said, we are having to reinvent ourself probably at least two or three times in the last five years. That's because of the pace of change in the marketplace. And so we have a shared responsibility to help drive some of our thinking around this transformation, internally ourself. One is to be able to go figure out what other types of services we need to go build, to deliver transformational programs to our customers. So define the what. And that's primarily my responsibility. And then I work very closely with Matt to figure out, what are the skills we have in our organization today, what are the next new skills that we need to go build, and then what are the skills that we have today that we can extend to support these new things that we see coming. Such as taking infrastructure administration and management, to providing and transforming that into providing it in the context of micro services, for example. Or infrastructure as code, storage as code, security as code, et cetera. So those are some of the things that we try to make. And then from a business perspective, we are trying to build-out skills to look at what types of organizational changes do we need to make. What other types of transformational programs and transformational metrics that you need to track, so if you have an 18 month transformation program, or a nine month transformation program, that you're not going to go wait for 18 months to see if you've achieved your outcomes. We've identified KPI's for the transformation program, where you look every 90 days to say are you achieving that. So we have two teams. We have a team of what we call Discipline Leads, folks like Matt, who are championing and evangelizing our organization to say here are the things that you guys need to change to, and find training enablement, to go drive that globally around the world as part of our consulting organization. And then there are going to be skills that we don't have that we go and acquire in the marketplace. But to your point, it's not like they're sitting around waiting to be plucked off the marketplace. (laughter) So you know, part of it is finding the right people who have a little bit of the aptitude that can make the pivot, and then learn fast. So it's a little bit of everything, and it's as much an art as it is to science, to cope with that. >> Matt: It's funny too again, if you look back at our organization just a few years ago, we didn't have a focus on Public Cloud, and now we've got folks that are trained and certified and some of the best in the world at Public Cloud technologies, because we have to change and we have to transform just like our customers. >> John: You know we talk about being nimble and agility. >> Oh yeah. >> You do too, right? >> Yeah. >> You have to walk that walk as well. >> I'm less nimble the older and older I get. (laughter) >> Aren't we all, Matt? Aren't well all? >> Organizationally you're absolutely right. >> Well listen gentlemen, thanks for being here. We appreciate the time. No longer first-time callers. >> That's right. >> Alright. >> We'll be back soon. >> You're now Cube veterans. Thanks for being with us. >> Thanks for the time. >> Back with more here from Las Vegas. You're watching theCube coverage of Dell Technologies World 2018. (techno music)