>> Announcer: From Gillette Stadium in Foxborough, Massachusetts, it's theCube! Covering VTUG Winter Warmer 2018. Presented by SiliconeANGLE. (energetic music) >> Hi, I'm Stu Miniman and this is theCube's coverage of the VTUG Winter Warmer 2018, the 12th year of this user group, fifth year we've had theCube here. I happen to have on the program a first-time guest, Kyle Ruddy, who's a Senior Technical Marketing Engineer with VMware, knows a thing or two about virtualization. >> Maybe a couple of things. >> Stu: Thanks for joining us, Kyle. >> Oh, thank you for having me. I'm happy to be here. >> All right, so Kyle, I know you were sitting at home in Florida and saying, "What I'd like to do is come up in the 20s. "It kind of feels like single digits." Why did you leave the warmth of the south to come up here to the frigid New England? >> (chuckles) Yeah, well, it was a great opportunity. I've never been to one of the VTUGs before, so they gave me a chance to talk about something that I'm extremely passionate about which is API usage. Once I got the invite, no-brainer, made the trip. >> Awesome! So definitely, Jonathan Frappier who we asked to be on the program but he said Kyle's going to be way better. (Kyle chuckles) Speak better, you got the better beard. (Kyle laughs) I think we're just going to give Frappier a bunch of grief since he didn't agree to come on. Give us first a little bit about your background, how long you been VMware, what kind of roles have you had there? >> Yeah, absolutely! So I've probably been in IT for over 15 years, a long-time customer. I did that for about 10 to 12 years of the IT span doing everything from help desk working my way up to being on the engineer side. I really fell in love with automation during that time period and then made the jump to the vendor side. I've been at VMware for about two years now where I focus on creating content and being at events like these to talk about our automation strategy for vSphere. >> Before you joined VMware, were you a vExpert? Have you presented at VMUGs? >> Yes, yes, so I've been a vExpert. I think I'm going on seven years now. I've helped run the Indianapolis VMUG for five to six years. I've presented VMUGs all over the country. >> Yeah, one of the things we always emphasize, especially at groups like this, is get involved, participate, it can do great things for your career. >> Yes, absolutely! I certainly wouldn't be here without that kind of input and guidance. >> Indy VMUG's a great one, a real large one here, even though I hear this one here has tended to be a little bit bigger, but a good rivalry going on there. I want to talk about the keynote you talked about, automation and APIs. It's not kind of the virtualization 101, so what excites you so much about it? And let's get in a little bit, talk about what you discussed there. >> Yeah, absolutely! We were talking about using Ansible with the vSphere 6.5 RESTful APIs. That's something that's new, brand new, to vSphere 6.5, and really just being able to, when those were released, allow our users and our customers to make use of those APIs in however way that they wanted to. If you look back at some of our prior APIs and our SDKs, you were a little more constrained. They were SOAP-based so there was a lot of overhead that came with those. There was a large learning curve that also came along with those. So by switching to REST, it's a whole lot more user friendly. You can use it with tools like Ansible which that was just something that Jon knew quite well. I thought that was a perfect opportunity for me to finally do a presentation with Jon. It went quite well. I think the audience learned quite a bit. We even kind of relayed to the audience that this isn't something that's just for vSphere. Ansible is something you can use with anything. >> For somebody out there watching this, how do they get started? What's kind of some of the learning curve that they need to do? What skillsets are they going to build on versus what they need to learn for new? >> Sure. A lot of the ways to really get started with these things, I've created a ton of blog posts that are out there on the VMware {code} blog. The first one is just getting started with the RESTful APIs that we've provided. There's a program that's called Postman, we give a couple of collections that you can automatically import and start using that. Ansible has some really good documentation on getting started with Ansible and whichever environment you're choosing to work or use it with. So they've got a Getting Started with vSphere, they've got a Getting Started with different operating systems as well. Those are really good tools to get started and get that integrated into your normal working environment. Obviously, we're building on automation here. We're building on... At least when I was in admin, I got involved in automation because there was a way for me to automate and get rid of those tasks, those menial tasks that I didn't really enjoy doing. So I could automate that, push that off, and get back to something that I cared about that I enjoyed. >> Yeah, great point there 'cause, yeah, some people, they're a little bit nervous, "Oh, wait, are these tools going to take away my job?" And to repeat what you were just saying, "No, no." There's the stuff that you don't really love doing and that you probably have to do a bunch. Those are the things that are probably, maybe the easiest to be able to move to the automation. How much do people look at this and be like, "Wait, no, once I start automating it, "then I kind of need to care, and feed, and maintain that, "versus just buying something off the shelf "or using some service that I can do." Any feedback on that? >> Well, it's more of a... It's a passion thing. If it's something that you're really get ingrained in, you really enjoy, then you're going to want to care and feed that because it's going to grow. It's going to expand into other areas of your environment. It's going to expand into other technologies that are within your environment. So of course, you can buy something. You could get somebody from... There are professional services organizations involved, so you don't have to do the menial tasks of updating that. Say if you go from one version to a next version, you don't have to deal with that. But if you're passionate about it, you enjoy doing that, and that's where I was. >> The other thing I picked up on is you said some of these things are new only in 6.5. One of the challenges we've always had out there is, "Oh, wait, I need to upgrade. "When can I do it? "What challenges I'm going to have?" What's the upgrade experience like now and anything else that you'd want to point out that said, "Hey, it's time to plan for that upgrade "and here are some of the things that are going to help you"? >> We actually have an End of Availability and End of Support coming up for vSphere 5.5. That's going to be coming up in here later this year in September-October timeframe. So you're not going to be able to open up a support request for that. This is a perfect time to start planning that upgrade to get up to at least 6.0, if not 6.5. And the other thing to keep in mind is that we've announced deprecation for the Windows version of vSphere. Moving forward past our next numbered release, that's going to be all vCenter Server Appliance from that point forward. Now we also have a really great tool that's called the VCSA Migration tool that you can use to help you migrate from Windows to the Appliance. Super simple, very straightforward, gives you a migration assistant to even point out some of those places where you might miss if you did it on your own. So that's a really great tool and really helps to remove that pain out of that process. >> Yeah, it's good, you've got a mix of a little bit of the stick, you got to get off! (Kyle chuckles) I know a lot of people still running 5.5 out there as well as there's the carrot out there. All the good stuff that's going to get you going. All right, hey, Kyle, last thing I want to ask is 2018. Boy, there's a lot of change going on in the industry. One, how do you keep up with everything, and two, what's exciting you about what's happening in the industry right now? >> As far as what excites me right now, Python. That's been something that's been coming up a lot more with the folks that I'm talking to. Even today, just at lunch, I was talking to somebody and they were bringing up Python. I'm like, "Wow!" This is something that keeps coming up more and more often. I'm using a lot more of my time, even my personal time, to start looking at that. And so when you start hearing the passion of people who are using some of these new technologies, that's when I start getting interested because I'm like, "Hey, if you're that interested, "and you're that passionate about it, "I should be too." So that's kind of what drives me to keep learning and to keep up with all of the latest and greatest things that are out there. Plus when you have events like this, you can go talk to some of the sponsors. You can talk and see what they're doing, how to make use of their product, and some of their automation frameworks, and with what programming languages. That kind of comes back to Python on that one because a lot more companies are releasing their automation tools for use with Python. >> Yeah, and you answered the second part of my question probably without even thinking about it. The passion, the excitement, talking to your peers, coming to events like this. All right, Kyle Ruddy, really appreciate you joining us here. We'll be back with more coverage here from the VTUG Winter Warmer 2018. I'm Stu Miniman. You're watching theCube. (energetic music)

>> Announcer: Live from Las Vegas, it's the Cube, covering InterConnect 2017, brought to you by IBM. >> Okay, welcome back everyone. We are live in Mandalay Bay in Las Vegas for Day Three coverage of IBM InterConnect 2017. This is the Cube's exclusive coverage of IBM's Cloud Show and their Watson Data, IoT and more. I'm John Furrier, my co-host Dave Vellante. Our next two guests are Matt Kalmenson, VP of North American Sales and Cloud Service Providers at Veeam and Andy Vandeveld, VP of Global Strategic Alliances at Veeam. Guys, welcome to the Cube. >> Andy: Thank you. >> Matt: Thank you for having us. >> Andy, I want you to just set the table. We are familiar with Veeam. We're going to do your event. You've got a big event coming up in New Orleans. The Cube will be there. We've been watching you guys for many, many years. The Cube is on its eighth season. I think Season One, 2010 at VMworld. You've been very, very successful. But you're not a public company, but yet you guys act like a public company. You release your revenue and earnings. Set the table about what Veeam is, where you guys are at, and the current status. >> Sure. We're a company that's been around for 10 years, founded by our founders, Andrei Baronov and Ratmir Timashev. The company has grown significantly in the data availability space over the 10 years. We just announced our earnings, or our revenue, for the first time just last quarter. Last year we did $607 million in total revenue. And that's at a 28% growth. So we're a very high-growth company, even though we're at significant run rate of revenue. We've got 2,500 employees worldwide. We'll grow that substantially this year. We've got 240,000 customers worldwide. We're growing 4,000 new customers a month. So we're really a growth company. But we're a privately-held company. We like it that way. It allows us to do things that public companies might not be able to do because of their quarterly reporting requirements. We can make investments where we think investments need to be made for the future, as opposed to having to always watch the profitability. >> Yeah, the 30-day shot clock, as they say, or the quarterly shot clock, 90-day shot clock I mean. So you guys are very successful. Congratulations. And that's, by the way, a great story that you guys kind of act like a public company without being public. So it's like the best of both worlds. You guys are doing well. Congratulations. What's the secret sauce for you guys? Just for the sound bite. We'll get into some of the questions. We have some specific questions about IBM InterConnect. But why is Veeam winning? What's happening? Because you guys are really moving the needle. Quickly explain the secret formula of why Veeam is so successful. >> Well, I think it cuts across a couple of different dimensions. One is, we have a really great culture within the company. And so we have a culture of innovation. People feel like they're invested in the success of the company. And everybody is joining in that. And I think that really helps. We have great technology. We used to have an "It Just Works" tagline. Customers love that, particularly when we talk about their backup and data-protection solutions. They don't want to have to have people monitoring it on a regular basis. It just works. So I think customers love the technology. We have a great employee base, great executive team, and we have great partnerships, like the one here with IBM. And I think those are all key to the success. >> So I want to go back a little bit and sort of set the table on some of the big mega-trends that led to Veeam's ascendancy. When you go back to the early days of virtualization, you had this situation where you had underutilized servers. And then VMware essentially allowed us to consolidate those servers and dramatically increase the utilization, 'cause applications running on these servers, the servers were highly underutilized. The one application that needed all that sort of dedicated server power was backup. So when virtualization went from nothing to whatever, 60, 70% of the market, backup got choked. And it needed an answer. And one of those answers was Veeam. And it shot up and exploded as a company. You've done very, very well. There's more to it than that, distribution channels and so forth. Now we enter the Cloud era. And people now talk beyond backup, about availability. So what can we learn from the virtualization era? What's similar, what's different now? And why is the discussion shifting from one of backup to one of sort of always-on availability? >> So, it's a really good question. And if you think about the trends that we've seen, we've gone through this trend to a completely virtualized world. Yet when we still talk to CIOs, and Veeam's gone out and done studies where we've talked to CIOs, and when we talk to them, we hear that they still have the same challenges that they've had in the past. And that is, over 90% of them are still saying that their most critical needs are application uptime and their access to data. So when we go out and talk to hundreds and thousands of CIOs, they say, "We still have these needs: "access to our applications and access to data." Yet when we talk to them about how those needs are being met, over 80% of them say there's this gap. There's this gap, and while they still have those needs, those needs are not being met. And we call that the availability gap. And Andy and I were talking this morning over a cup of coffee, and he said, "You know what the availability gap is? He said, "Think about it like this." Think about when you're using your cell phone, and that cell phone is going down to 10%, 9%, 8% and 1%. And you get that feeling inside that "I'm about to lose service." And we all know that feeling when you lose connectivity on your cell phone. Now think about that as the CIO or someone who's relying upon that data. That's the availability gap that we see in the marketplace. And that's the gap that Veeam bridges. We bridge that availability gap. So we've addressed that from a virtualization perspective and, now, moving into the physical world too. But now as we move forward, we're seeing another dynamic change in the marketplace, of course. And that's Cloud. Now consumers want to think about different ways to consume technology. They want it on-prem. They want a managed solution. They want in a public cloud. They want it in a private cloud. And the way Veeam addresses that solution is essentially by saying, "However you want to consume your technology, "that's okay by us." If you want to consume your virtualized environment and have it backed up on premises, fantastic. If you want it backed up and managed by a managed service provider, that's okay too. If you want to have that data and information and back it up in a public cloud, great. Or in a private cloud. Or move it between those environments. We'll have the solutions to meet those needs. So we're going to meet this need of having uptime of applications, uptime of data, and availability of data, minimizing that availability gap that these CIOs are facing and allow them to manage and run data and applications and have it available to them no matter what scenario or platform they're running it in. So that's a vision that's more than just selling backup insurance. >> Matt: Absolutely. >> I mean, you just kind of answered it, but I'll ask it generally. How do you guys communicate your vision to CIOs? >> Well, I think we communicate it just like Matt said. When you talk about backup, that is sort of a yesterday story. It's really about making sure that those customers can get access to their data and that they can keep their applications, and, frankly, their businesses up and running. So when we go in and have a conversation with a CIO, we can delineate for them the specific business impacts of not having a robust availability platform. And that takes on different dimensions from a product perspective. So it's not just backup and recovery anymore. It's backup and recovery, but it's availability. It's, how do you orchestrate data across platforms? These are the source of new issues that Veeam has been addressing for the past few years. And I think it's what gives us an advantage in the data protection space. >> Now, it's a very competitive market. A lot of legacy vendors, of which IBM is one of them. But yet you're here at InterConnect as a major IBM partner. Help us understand what the relationship is with IBM, where it fits in the organization. Is it just Cloud? Is it across the entire organization? Fill us in. >> Yeah, so it is a strategic partnership for us. It's not just a single business-unit partnership. We're across the business units inside of IBM. And sure, there's IBM Spectrum Protect, which is a competitive product. But there are so many more opportunities for Veeam and IBM to win together that we're not going to worry about the few areas where there's some overlap. We just announced a few months ago that we're integrating, doing snapshot integration, for IBM Storwize and SAN Volume Controller, which we'll provide in our next version, version 10. It's coming out later this year. And that's a big thing. We don't do storage integration, snapshot integration, with all storage vendors. So when we can make a commitment like that, it's a meaningful commitment to the partnership. And so we have this great relationship on the storage side and other parts, but the genesis of the partnership actually started in the Cloud area with Matt's team and some guys on Matt's team that really drove hard to get a foothold in the relationship. So I'll let Matt talk about the Cloud relationship. >> Thanks Andy, and it's been a great relationship, because, while Andy focuses on the global alliances, I have a little bit more of a narrow focus around the Cloud, which really isn't so narrow. So we tend to team up together very well. And what really got our relationship kicked off was having the VMware Cloud Foundation, which runs on the IBM Cloud, where Veeam is the essential backup product that runs the management components of that platform. So, anything on the VMware Cloud Foundation, which sits on the IBM Cloud platform, is backed up and managed by Veeam. So that's now available. And that was really the genesis of the relationship from a Cloud perspective, so that was very, very exciting. >> And Bluemix, they're in the mix? >> Bluemix is in the mix. And that VMware Cloud Foundation actually leverages the Bluemix platform. And then there's several layers of the Bluemix Cloud platform. And now we're going to be in the Bluemix catalog, what is called the IMS catalog, which will be for everyone who's looking to provision a cloud service, can go ahead and pull down and choose to provision VMware and some infrastructure and other services and have it backed up by Veeam. >> So that deal between IBM and VMware was a real catalyst for your relationship? >> Matt: A real catalyst for us. >> Now, of course, VMware's done other deals. They just did one with Amazon recently. But my understanding is the IBM relationship-- >> Well, Pat's been clear. It's a multi-cloud world. So the thing that's clear from this show is, multicloud is what's happening. So that's-- >> Well, what this has given us the ability to do is say, no matter what your customer looks like, there's an opportunity for us to partner and work together. So if you think about the VCF, the VMware Cloud Foundation, might be some organizations that are enterprise in scope, that have a large, on-premises type of deployment. So we're looking for large automation platforms that are looking to automate moving to the Cloud or maybe move back from the Cloud to on-prem, but nevertheless have these very high-end availability needs and business continuity needs. Now, if you think about the IMS platform in Bluemix, which might be a traditional hit-the-keyboard and looking for some infrastructure that you might spin up in a born-in-the-cloud company, from day one, we'll have some services available there for you as well. So you can go from a small SMB company that might be born in the Cloud to a legacy Fortune 100 company that has some kind of cloud foundation needs. And between the partnerships of our organizations we have solutions to meet those needs. >> One of the interesting things to me about Veeam is when you started out, when you were in your eating glass mode, you were going to VMUGs and doing all that sort of hard work with the hardcore VMware practitioners. Now you're on your way to a billion dollars. And you're striking partnerships with companies like IBM. How have the conversations changed in terms of who you sell to, who you're interacting with. Obviously more CIOs are probably paying attention to the investments that they're making. How has that changed? >> Well, just from the Veeam perspective, these partnerships are extremely important. Companies like IBM have relationships with enterprises that go back decades. And, for us, that's an opportunity for us to leverage their trusted advisor status with those decision makers in the enterprise. Our business started, and we have a very robust small and medium-size business. We have a strong and growing enterprise business. And we're looking for the enterprise as our growth vehicle to get to a billion dollars. So partnering with enterprise-class partners like IBM is really a key force. >> I mean, you guys can bring your value proposition pretty much to any environment. To your cell phone analogy about the battery power, which we've all seen. But, you know, Dave's on Verizon. I'm on AT&T. So this is the same dynamic in the Cloud. This is where you guys are looking for the growth. Am I getting that right? >> Yeah, I think that's a pretty good analogy. And the way I kind of think of it is, we have the best solutions in the marketplace for availability needs, regardless of the size of the organization, the end-user needs, regardless of the go-to-market strategy and regardless of the platform. So by building, and as we continue to move up market and aggressively build partnerships like the ones with IBM, it allows to address the business needs no matter what those business needs are. And partnerships like the ones with IBM allow us to scale to great lengths. >> Matt and Andy, I want to ask you a question for the folks watching, 'cause here at IBM InterConnect, the IBM relationship that you guys outlined, what's the major to-do for Veeam this year? I mean, in terms of, as you accelerate. You've got 600 million in revenue. What's the core message that you're sending the marketplace in terms of where that growth's going to come from? And what's the tag, what's the bumper sticker for Veeam right now? >> I think it's around the Cloud. I think that's an area where we're putting a heavy investment. We're hiring great people. And for us, we see that data protection is going to have to span the Cloud environment. Now, it's going to be on-prem, it's going to be in the Cloud, it's going to be a hybrid. But from our perspective >> Matt: It's everywhere. >> Yeah, becoming much more robust in the Cloud is really going to be a focus area for us this year. >> Yeah, I would agree. I would tack onto that continuing to scale into the enterprises very aggressively. We've built out a large enterprise organization strictly focused on the enterprise. We've had the technology to address the enterprise needs, but now we've dedicated sales teams and organizational structures just to address the enterprise. And continuing to bring out our Cloud sales organizations and make sure that everyone within our organizations also has a benefit by not only understanding the Cloud business, but our sales teams are compensated to sell Cloud solutions. So it's not like we have a stovepipe organization that just goes sell Cloud, and then somebody else who goes out and sells an on-prem solution. We have teams that are focused on compensation that works together so that our teams can go out and send the message of, "consumption's your decision". We want to help you make the right business decision. We want to help make the right technological decisions. But how you consume, that's up to you. And we're here to help you coach, here to help guide, here to help show some maps on how you can do that. We know we have the right availability solution no matter what needs or what consumption model of what path you want to go down. >> And the enterprise has certainly changed. And you guys understand the enterprise readiness. And you've got product leadership. So that seems to me to be the magic. >> And also the relationship with an organization like IBM because that helps us bridge those gaps. >> Well, congratulations guys, for great success and a good relationship with IBM. Great story. Love the story of being private with this kind of transparency. It's rare, and so congratulations Andy, Matt. >> Thank you. >> Thanks for joining the Cube. More live coverage. Stay with us all day, Day Three of exclusive coverage of IBM InterConnect 2017. I'm John Furrier with Dave Vellante. Stay with us. More after this short break.