okay we're back at vmworld twenty twelve i'm john fairy with SiliconANGLE calm this is the cube this is our flagship telecast we go out to the events extract a signal from the noise and share that with you i'm joe and stu miniman my co-host with this segment and martine casado the co-founder of nicera you guys are ranking number one on our trending tool that we built under networking because it moved up to the top of the list because of vmworld company had spent a billion dollars for you guys jaishree from Arista called you guys the Instagram of networking kind of tongue-in-cheek on the huge buyout but hey congratulations great wired story today SR with you guys we've done about the talent you have and you brought over the vmworld and you're the top story here so congratulations thank you welcome to the cube thank you so take us through the logic and your motion around past year okay up until the buyout what a roller coaster so just share with us personally from Europe as an entrepreneur what was it like what highlights of what happened well I guess I've been very focused on changing networking right so for me it's been largely a technical ride and since we started the company five years ago we've been focusing on developing core technology and we did that for the first three years and then the last year to us was primarily about execution and customer engagement and so you know we've spent a lot of time proving the technology getting into production doing the support and fixing out that model and so it turned out is a very natural transition point when the acquisition happened because we had gotten traction we had starting to realize how difficult it is to address a market as large as this within a small start-up and so it was very welcome to come join a much larger company where we can kind of provide this as a much box so you guys have some big backers obviously you know they're all it's all well documented in the valley but every entrepreneur has that moments like wait a minute is this what I wanted is this tea but the dollars was so good and vmware's asti growing company what clicked for you what made you go is this the right thing take us through that decision you know absolutely so I mean like to me business guides behavior and at the end of the day the goal is is how do you change networking and have a very very firm belief that the access layer to that network is moving from within the network towards the edge and so we wanted to develop technologies that can use this position to re-implement networking and software and so once you get the core technology done once you prove it out with large customers once you prove out the market the question is is kind of what is the best way to have the biggest impact and I think in some respects you can look at vmware is one of the largest networking companies in the in the world just based on port count right the number of virtual ports that they control is as large as any large networking vendor so this is the opportunity of a lifetime to change in industry so like I've been doing this now you know sdn since those doing my PhD at stanford for so going on 10 years now and this is the the opportunity of a lifetime to actually have broad broad like planet scale impact well congratulations certainly you disrupted the market not only in the validation of the acquisition but as you guys were moving out and talking about some of the deployments you guys were doing it just came out of left field for most people but in the inside baseball sure people knew it was going on in terms of like how you guys are disrupting so so congratulations thank you here I want to talk about is also the messaging here at vmworld very solid around suffered to find datacenter sure and that really kind of brings you into a whole nother beyond networking so you know we've been covering converged infrastructure that's looking a look upon you know around house storage servers and networking so its bigger now than just networking right so now you're taking it to a whole nother leg of the journey so connect the dots out there for the folks between software virtualization and software-defined networking to this to the data center help them understand what is going to happen under that next leg of the journey yeah of course so we're all familiar with compute virtualization right I mean this is how vmware initially changed the world where the time it takes to provision a workload when from weeks to literally minutes like two minutes however I t isn't about single workloads ideas about applications and all the network services that those applications require for example firewalling or security or or monitoring debugging and so even though we reduce the time it took to provisional workload from weeks two minutes you still took days to do everything else that was required so if we take a broad scope if we take a broad look at a thai tea we still realize it still takes days to provision new applications and to provision new workloads and so the only way to get past this the next step that we want to take is to virtualize every aspect of infrastructure and so there's three of those there's there's compute which is virtualized their storage which we're making good progress on and there's network and network really is a pivot piece right it's the one piece that touches everything right it is between the compute in the storage it is between the different types of compute and so if you look at large data centers even cloud data centers the long pole in the tent and provisioning is the network so we must must virtualize that so the goal is the software-defined data center that's like everything's in software everything's totally dynamic you create it on demand you can move it its liquid it's like water it'll go anywhere but in order for this dream to be realized we've got to get the network out of the way and that's what the sierra does we've been talking about going to go and Wikibon we've just kicked up a whole kind of research section on what we're calling data infrastructure and really highlighting this modern era right and we kind of use a lot of sports analogies but you know a modern era meaning the new way not the old way right so you're a classic example of disruption in a new way so talk about the enablement that you see happening from a from a marker play standpoint just you know open your mind and share the crowds and vision around what you will enable with this because networking is has to be dynamic it has that makes total sense you guys have done it what's going to happen next in your mind's eye in terms of what the possibilities are yeah yeah absolutely so I think ultimately this is where we want to get to we want to build a platform that will provide that will recreate you know every Network Service and functionality in a virtualized manner in software from the edge and that means that there can be any service available anywhere over any type of hardware at any scale that's needed and it can be done all at virtualization timeframe so this is like you do an API call you get a virtual network abstraction you add a firewall to it you you configure ackles to it and so all of network configuration all of network services all of network operations become soft state it becomes like a VM image and it's available anywhere that you want it to and so that is the first step so I believe these transformations and systems and this happened many times in the past happen in two steps the first one is you virtualize and when you virtualize you offer the same thing but in a more flexible manner like when you virtualize compute you offered an x86 cpu but you did it in software after you virtualize you can actually change the operational paradigm like when you when they created compute virtualization they didn't immediately get to migration or snapshot or rewind all these other kind of operational benefits these came later so the first step is any networking anywhere you want at any scale automatically and then the second step is like drastically changing the operational paradigm so you can do things like better security so you can rewind configuration state I mean things that we can't even think about today because now we have this ultimate point of indirection that's virtualized this virtualized layer and who's the candidate for these developers just admins net admins all the above is it going to be software programmatic I mean how does that it takes DevOps right to a level of functionality that is just mind-boggling so yeah who's the new personnel yeah it was like who's life does this impact think what happens called a CI easy out there well I mean it's a good question whose life does this impact I mean I mean immediately anybody that's building out a data center like a cloud architect is going to have this this primitive that that they can use to architect better system just like you gave them a virtual machine they use that as a primitive for building better data centers now we're giving them virtual networks as a primitive build virtual data centers so the cloud architects job gets easier application developers don't have to worry about the basics of you know the way networks work our network configuration operations will have a lot more flexibility and the virtual layer of where they can move things around as far as the physical networking layer the problem actually becomes quite a bit simpler but you still have to focus the on the problem of building a physical network so for example when server virtualization came around you didn't like reduce the need for servers you needed more servers and just like the same thing will happen with with network virtualization which is you'll still need physical networks and they're going to probably have to be better physical networks but the problem now is more of how do you build a physical network with high capacity that can support any workload and less about doing all the operational stuff you do today how does an impact we just had chris hoffman from juniper who's now a worker he's been a big security buff a great guest for us but we just were just riffing on the security problems right so give us your perspective on how this new canvas of software-defined virtualization is gonna impact security paradise yeah so I mean I think there are a couple of answers i actually think ultimately the security model is improved honestly so yeah the original work was done with the intelligence community actually the the original funding for nasira came from the intelligence community my background I used to work for the intelligence agencies and when you move everything to software we already have a fundamental security paradigm which is crust consolidation in the hypervisor right and with network virtualization you follow the same paradigm which is you you entrust the hypervisor to enforce things like isolation enforce the security but now you've got a strongly authenticated endpoint there you're not guessing about things but but it requires the security community to evolve with the virtualization community so I think that there's much more of a socialization hurdle more of a social hurdle than a technical hurdle like all of the technology is there to do good security in the cloud I think getting the traditional vendors to evolve their tools into of all they're thinking it's much more difficult so I've got one more thing to add I actually think there's an opportunity to do security in entirely new ways ones that again can transform the industry so for example with virtualization you've got deep semantics into the workloads I mean you're in the hypervisor you can look inside the VMS you know who's using them know what applications they're using guy you could even know what the documents are being sent or or read or passed around and because you have this information at the edge if you virtualize the network as well you can pass this context into the network so now instead of like looking at packets and kind of trying to guess what application there is by looking at traffic you can actually get past like the ground truth information from the hypervisor so I think we have the potential so it's like drastically improved security that's Martine if you look at the networking industry there's lots of companies that have tried to change it in the past when you talk about innovation standards have a lot of times slow things down yep you know there's the legacy thought set you know great respect for ccie s but you know they have their install base in their way of doing things so you know there's there's so many pieces that make up networking and even the first time I saw your solution there's multiple standards and open you know groups working on this so you know how do you guys tease through and work through all of these issues yeah so clearly a very complex and multifarious question so I'm going to I'm going to attack one piece of it and we can go from there one of the primary benefits of actual virtualization like actual virtualization is that what you end up with should look like what you started with right so like if you're fundamentally changing an operational paradigm you're probably not doing virtualization so for example in a network virtualization solution the physical network is still a physical Network and it needs to be managed like a physical network with physical networking tools and in order to be fully virtualized the virtual abstraction I give you if I give you a virtual network that should also look like the networks that you've kind of grown to love as a child right they should have all the counters all the debugging the ability to interpose services right and so from from that standpoint you're still preserving the interfaces that people are used to it says there's more of them so like for example when I talk to a network operator today they're like oh this is confusing I've got virtualization I say actually instead of having one network that's really complicated you've got em and simple networks now you've got a very simple physical Network and if you got any virtual networks and they all all of the same interfaces that you use to manage it however there's one catch and that one catch is is there's an additional bit of information which is how do you map this virtual world to the physical world which happened in compute virtualization as well so like everybody understood a virtual machine everybody understood the physical machine but people weren't entirely sure how you debug the mapping between the two and that's incumbent as US is software providers and solution providers to provide that to provide the ability to to map from this kind of you know like platonic virtual reality down to this kind of gritty physical reality okay so from a standard standpoint you I mean you guys helped invent OpenFlow you guys created the open V switch you're heavily involved in OpenStack Andy there's been a lot of buzz since the acquisition about you know the involvement in OpenStack and yeah yeah kind of God how many people today everything in what's your thoughts on it yeah so let me also teach a tease apart you know two things before I get to that one so in networking standards are really important and like in the way standards work he's got a bunch of people that kind of go and talk about things and they design things they agree on them that's actually quite different than open source right and like their different processes different communities different rules of engagement so let me focus on the open source first then we'll go back to the standards thank you because I perfect just to give you a little bit foreshadowing like I hope the world goes open source not open Stan so can we do to it so but we'll get there right so as far as open source yes so I wrote the first version of open flow I mean it came out of my thesis right the first three employees of nicera created the first craft of open flow and it was it was just something that we wanted to use to control switches right i mean we wrote the first reference implementation the first open flow controller you know we seeded the stanford stuff of course i'm a consulting a faculty at stanford so i was involved there we also are the primary developers behind open V switch it's in the linux kernel you know we've probably put you know many millions of dollars in developing that it's used by competitors and partners alike that's used in many clouds and then we've heavily participated in an OpenStack in particular you know where the Delete on quantum which is the networking portion of OpenStack we've done a lot of development bear so as far as the merger is concerned the acquisitions concerned none of that will change we're fully committed to open V switch to OpenStack will continue and even escalate our contribution there quick quick note on OpenStack i was told that something for folks have actually entered some code into the OpenStack of storage just kind of curious about that so and we touched many areas of OpenStack and again the the networking piece touches everything and you know we do a lot of the development on quantum and we run actually nasira internally randa an openstack cloud for internal dev cloud and we've got thousands of VMs on it that we use it and so we're heavily we're like heavy users and contributors to both OpenStack and linux I mean if you look in Linux we've actually fixed a lot of the veal and issues in the kernel right so like and we're very very involved in open source but we're involved as users right like we don't sell you know linux we don't sell OpenStack but we do believe for to have a vibrant ecosystem is nice to have these tools out there and as we use the tools we fix them and we contribute it back okay what about multi hypervisor environments because that was one of the things that really impressed me about like the open D switch is it really doesn able kind of that that multi hypervisor even more than kind of heterogeneous switches it's the multi hypervisor piece yeah that's right so if you kind of zoom away like I think we've had like a fairly myopic focus in the industry on servers over the last 10 years and it's like if you zoom away from the server to a data center you end up in this realm of heterogeneous technologies multiple cloud management systems multiple hypervisors and so when we came up with our our initial strategy of building a network virtualization layer we knew networks touch everything we must support all of those technologies and so it was like a fundamental tenant of the technology that we might support all hypervisors and physical hardware switches as well because there are workloads that are not july's and so you know open V switch itself which is the V switch that we use it's in sports in kvm bare metal linux it's been ported to bsd it's been ported to other operating systems it's been ported to top-of-rack hardware switches so we can use all of them to do to do network virtualization so mark can I want to ask you about the sufferer define partnering strategy from a technical perspective obviously we're really big believers in open source as well they love that we'd love to think it's great and it's now a business model in the industry so it's great to see all that work as vmware now with you guys in the family there go to other unifying clouds so they took a multiple clouds at this point so you know what would you bring to the table from hyper Microsoft hyper-v environment and other big vendors HP Dell yeah Microsoft what can you bring to the table in working with those guys or are you outgoing are you talking to them and and if you were having those conversations what does what would those conversations be well so the product itself that we're developing and we we do bring to market now we will continue is a network virtualization platform that's multi hypervisor right and so the goal is to have something that you can deploy into any cloud environment regardless of what CMS are running and regardless of what of what hypervisors they're using now we have many many partners whether their system integrators with the solution partners and so you know we don't have any religion on on the type of technologies in play we want to provide the best virtual networking solution in the industry and that's really our primary our primary focus let me ask you about it Trent some trends in the in the tech community in in academia and the research areas obviously at this example just randomly low-level virtual machines that kind of those kinds of shifts are happening could you talk about just what you're tracking right now that your get your eye on in terms of what's going on at some of the top university obviously low-level virtual machines at the University of Illinois and in Chicago so what other areas can you share with us that you monitoring listen this is a great question to ask a nap academic and I'm going to totally disappoint you in that I you know I i I'm on a lot of pcs and I follow a lot of research I mean you know I submit papers you know all the time and like I've mostly lost faith in the academic process on the research side lately which i haven't relevant so in terms of trends no but that's exactly the point I think that there's enough vision to last for a century and like now it's time to do work and if it were up to me we would all be taking these ideas that we've come up with over the last 10 years there's very few new ones in my opinion and we'd be executing like crazy and so well again while i'm on the pcs and while i do review the papers i do submit the papers i think we should all focus on like changing infrastructure into software executing like hell and changing the world that way and so and I don't have a really bad attitude about this especially as abuse or but it's a bad attitude okay we say it we hit it all hang out so final question for me and if she wants to get one more in and don't you can't say the acquisition as the answer what is the biggest surprise that that that you fell out of your chair over the past 24 months around you in the industry in your entrepreneurial venture here now at VMware and it could be like a surprise and this trend didn't happen that happened that you know these are the things that happened it could be good or bad what's the biggest surprise that caught you off guard this year that's 24 months yeah it's a good question I think the one that actually been a little the most shocking is how how difficult is being just very honest is how difficult to manage perception in the industry and if you look at kind of social media and you look at a lot of the buzz in the rags so much of it is generated by non disinterested parties so invested parties and so I think it's possible to be a perfectly good citizen and then get paint in a very negative light or be a very negative citizen and be painted in a very good light and it's been counterintuitive to me how you manage this effectively like almost a dynamic feedback system so for example this year has been an enormous contributor to open source I think we've contributed more than anybody in our space by you know factor of 10 or more we contributed most of the core technologies and often people like well but it's a proprietary solution on the other hand there sometimes we're like okay this is a closer source product people like we should use this here because it's the open solution and so well I think that definitely felt on both sides you know being both open source and close or sometimes it's worked for us and for the wrong reasons sometimes it's not worked for us for the right reasons and so that dynamic has been the least intuitive to me so I'm not sure I fell off my chair but definitely it's been the most surprising yeah and you know and that's what we're trying to solve a SiliconANGLE as we say we're agile media and ultimately with social media the whole media business is changing so we know one of the things that we care about here so that's why we have the qubits we just this is raw data we want to share be provocative be edgy is too it's a data-driven world and we believe the media business is absolutely screwed up beyond all recognition so so because of just lack of fact-checking just old techniques aren't working and but it's the same game right so it's just so things circulate things get branded and we've seen a time and time again I've seen great people show up as like almost painted as criminals yeah so it's just a sad state of reporting and media so would agree with you there okay John so if I if I can have that one last question your machine you know the networking industries is a big community and when you talk about kind of the jobs that people are doing today what's your recommendation to folks out there in the networking industry what should what should they start to you know we'd or you know start playing with to kind of understand where things are going down the line honestly I don't want to say a cliche but I actually really believe this one I think I think networking networks are evolving to become proper systems and proper systems in an end-to-end manner meaning that goes a very well-defined hardware a software layer they all work together and I think the data center is is becoming a large computer and I think the most important thing is to view the industry and that lens meaning you know I would get as much information as I could on how guys like Google or Amazon or Facebook build their data centers and you realize that if you do a cross-section of these things like the Capital savings the operational savings the flexibility of the software like that's changing the world and if it's not changing the world directly by changing infrastructure it's changing the world to the surfaces they deliver and understanding that model in your bones I think is the beacon going forward so if it were me the first thing I do is I really understand why they make those decisions what the benefits are and I would use that to guide my learning going forward okay Martinez out of this co-founder of this year now at do you have a title at VMware yet or do you I mean did i do I don't know my head honcho of the Sierra am where Thanks coming inside the cube really preciate it we right back with our next guest we're going to wrap up try to wrap up the day as they start to bon jovi soundcheck here at V emerald 2012 this is SiliconANGLE calm and Wikibon doors continues coverage at vmworld great thank you

>> wait. >> Okay, We're back. Live a V M. World twenty twelve. I'm John for the founder's silicon angle dot com. This is the Cube silicon angle dot TV's flagship telecast. We go out to the events and extracted signal from the noise CEOs, entrepreneurs, analysts, marketing people, developers, whoever has the signal, we want extract that share that with you. We have a special guest today. Frank's Leutnant is a sea of service. Now again, I'm John Furry. I'm joined my co host >> of Dave Alonso, a wicked bond dog. Frank, Last time we saw Europe on the stage, you had these glasses on the hat. Remember that, Elwood? So, uh, welcome to the Cube. First time on Thank you. Too many of'Em worlds. I'm sure. A little different angle now. Yeah, Service now. Very exciting. Just went public solving a big problem on DH. Added again? Yes. So tell us. How do you feel? >> That's interesting. A lot of people ask me, how did you end up in, you know, in a in an application software tap a category you spent all this time in storage. The reality is that most of my life, you know, being in the application, development, dusting and system management. So this is actually close to my wheelhouse. Stories was actually a pretty good diversion for me. Careerwise >> service now, relatively, you know, not not a household name but solving that problem. Really, There's no system of record for i t. What activities air doing? Whether it's finance, it's whether it's application portfolio project portfolio. You guys were attacking that whole nut with a software service model. I mean, it used to be a lot of point tools to do that. And you guys seem to be having a lot of success bringing that all to the cloud. >> Yeah, the irony is, is that you look at all the corporate functions, you know, finance, sales, marketing HR, I sort of ranks, you know, last or near last in terms of management sophistication, right compared to the other functional areas, because the most mighty organization have to show for themselves. They helped US management system for their work. For right now, they are to keep track of what's running in their their operation, and that service model is typical of infrastructure providers. Right? You see it, you know, with tell coast like looking t you see it with power. You tell these, like PG and E their infrastructure providers first and the service model. It is not particularly compelling, right? So what we tried to dio it's really take it from a D M V style service model standing in line waiting to be helped. Do you want this more like amazon dot com, where I help myself, It's into it. If it's online, it's productive. It's where I want to go. Teo to make requests as well. Let's receive service >> So you're selling primarily to the organization. Who you sell to in the theory is that the CEO is that the project management offices all the above >> as the servicers management is a very well defined center of responsibility in i t organization. So there's always a group of people who is in charge of that that disciplined. They're easy to find, But CEOs are always involved, and the reason is these air very high profile system rollout because everybody in it is an actor or participant, the workflow as well as the broader employee population, the enterprise, touchy systems, So you better believe that people are sensitive about this being a successful practical and it looks more like a neo system. Dan. It does an infrastructure type system >> without the AARP complexity of it. >> Yes, it's it's a mixed >> metaphor, but so So here are your roughly a hundred fifty million dollar company, you know, annualized, you nice market. >> Either way, we've we've guided to about two. Thirty five, >> thirty five this year. Okay, Great. That's >> want to make sure that their investors don't get >> background. We're sorry about that. Es to thirty five, which is why your market cap about three point six billion. I think >> way had about ninety eight percent growth and buildings in the last quarter. So the high growth, obviously it's what drives >> what's driving that. So how big is the business that you guys playing? What's your tan? >> So we think that the tam just for the narrow definition around service management is a is a multi billion dollar opportunity Because of the nature ofthe work flows, we're also expanding into the operations management area. Right? This is this is where HP lives and BMC and IBM and CIA with these very large open view Tivoli Well, because their work flows between services system management are all becoming integrator that used to be suffered spheres. Not anymore. >> And that's an enormous market. >> It i d. C. Thanks. It's about a thirteen fourteen doing dollar market, and then you have the platform is a service opportunity because our customers have just gone wild, building all kinds of spoke applications on a platform just because they could. So >> you kind of betting on the intersection of systems management, operations, management >> and the platform. >> Okay, and it's kind of jump ball, really, with the dynamic of the cloud coming in, isn't it? In terms of the competitive, it's >> Ah, it's interesting because we look another assassin categories like HR marketing. You see a whole host of players you're looking in our category on the only breakout play there has been serviced now way have predominately compete against legacy vendors, people that I just mentioned. So >> you've got some experience doing that I want >> I want to ask you about the discipline side of the market. You guys are public companies, so yeah, you're out there is all exposed and then talk about some of the product directions because out yesterday they were really showcasing the vision within VM where old way a new way, a access APS infrastructure. You know the classic in the old way. New Way, Modern era. We've been calling it in your world. You're actually replacing some pretty old stuff. I mean, I remember back in the late eighties, early nineties health testing people had that's headsets on and, you know, homegrown software developers and quit a lot of this legacy kind of mindset. So first question is, Is that true? Is there still that much baggage in that services business? From an infrastructure standpoint? And the second part, the question is, what's the new stuff that's really disrupting the market? So in the new way, what is the key features that that's happening in the services industry? >> So, you know, I already started to allude to it, right. So you want to evolve that service model from that help death centric DNP style of service experience to one that's on the line looks more consumer style. You know, the way we've learned from Apple and Yahoo and Google and people like that help yourself. If you have a problem at home with your apple TV, you're really gonna try and call Apple know you're going to go online and you find years of communities you get Teo answers ten times faster, that weight and then following these needy old models the way you reference there is an awful lot of that still living in the world off because they're focuses infrastructure, not service. That's change it, right? I mean, CEOs, I read somewhere, have a shelf life of about eighteen months, right? There's incredible impatience and dissatisfaction with how that function is running. It's costing too much money in the service is not exactly to to write home about. People are really ready to move their service malls. >> The largest answer was, Just hire someone else to do it. That was the outsourcing boom, right? So that's still brought problems, right? Legacy. So how is that still in play? So if the notion is okay, outsource it, and then the outsources has some warts on it that's got to be tweaked. What's the new version? Because you know amazon dot com and you know this new environment availability, instant access, the information we don't service etcetera is that changing it >> way believed that the move to cloud computing is really going to change the role of the CIA, all right, because infrastructure is going to become something that's behind Courtney, and it's becoming less of an infrastructure centric job. CEOs and T organizations become Mohr service engineering organizations, people that understand work flows. People understand how to automate work, flows right out. And, you know, I know how to run a database or a network or, you know, all the security dimensions and so on because we're just breaking as an industry. There just isn't enough competency and skill sets for everybody to be confident at the level that we need to be at structure. It's not scaling, right. It's sort of the way telephone switching centers were in the nineteen fifties >> means one of those things to with the CIA. Attention, I'LL get to that later. But now, with big data in real time analytics is more pressure on the service delivery side. As a business driver, you seeing that pressure as well, or is it more? We just gotta fix it now. I got to do it >> Well, nighty organizations in the lift from one crisis to the next, completely event driven, you know we haven't out its were all over it. Trying to restore service on DH. You know, we sort of live that life day in, day out. But I've never changes right So waken get ahead of this game. You know, if we start structuring, you know, the interaction model that we have with our users how we communicate with them. I mean, simple things, right when you were, you haven't out it. It would be helpful if we were able to pull status. You know, every twenty minutes us to what? What we're doing, What's going on. Right? But having infrastructure be ableto push data out? No, like that. Most organizations don't do that. They live pretty much in the dark, >> so share with our audience out there. That's watching. We have a lot of professionals and data scientists and analyst type audience that we've that we've that follows. Looking angle with Yvonne on DH. Some CEOs as well on early adopters share the folks out there. The pitch, How bad is it that their environment and how easy is it to change? It is just a norther. A magnitude sense of is a turnkey. How do you guys roll in? What's he engagement look like? It's not as hard as the things that most people might have the opinion. I don't want to get just ugly. It's painful or is it not painful? Is it quick pop now? Is it like how fast a roll in and out the infrastructure that you >> the's are extraordinarily sticky systems the system that were that we replace >> your systems of the old systems. >> The old systems are on the reason that they've been around for ten, fifteen years. They're very difficult to replace. And if you look at our girls, that's certainly testament to our compelling. The value proposition has been people have said, you know, a pain is becoming unbearable and be the view of the promised Land is looking pretty good, right? So there's both an incentive to change and to move, and secondly, there is something to move towards that is this compelling inspiring. And it really is going to change my game right, because now we tell people said, Look, if you just tryingto get to a snazzier, more modern help desk, we're not your guy, okay? Because we don't find out a compelling vision of the world. We wantto wholesale transform how you deliver service just >> take us to some of those cats you were talking before you came on about your growth tripling inside. But talk about a zoo company, which is a whole nother conversation. We could talk about it yet you have expertise in, but talk more about the customer deployments. You got some fresh funding with the AIPO. You're geared up. You go out to the market place. What are the conversations like, What are some of the stats and one of the conversation with the CIA? >> Well, the CIA is obviously are interested, first and foremost of the transformation of the service model, right? I mean, we have to get Teo service experience that's more reminiscent of people experience on the consumer side. Now we typically have to do that, that an economic equation that's very similar to what they're having right now. They're not interested in spend more. They just want to get completely refreshed, you know, platform for similar amounts of money that they're already spending because Versace, you know, we're not just taking the software, not off the after after table. We're also taking the entire infrastructure, all the operating staff, everything it takes to run that environment becomes ours, right? It's no longer in the I T department, so that looks pretty compelling to them. >> How about some of the numbers in terms of uptake with customers recently? What's the growth rate was? Can you share some numbers? >> Way have about twelve hundred price customers? We had about one hundred twenty seven the last quarter. That's that is a huge number of customers. Tio Tio ad we have. Most of our focus is on global two thousand enterprises. We have about two hundred thirty global two thousand enterprises, and they're all you know who's who names that, that people recognize Starting up Ticket's been been strong. We're running very, very hard to make sure that we have two services infrastructure. Both there's people and infrastructure to be able to accommodate that. >> Well, I'm excited to interview you because I want to ask you kind of more of a personal question. And although we just met for the first time here, your name's been kicked around as kind of a maverick operational executive who knows how to scale organization. So we're in kind of living in an era where the business value focused, whether startups and has been a lot of talk about, you know, the Facebook idea, the young kids under thirty running a billion dollar market gap, companies trying to actually move from hyped to real scale. And Palmer. It's made a comment yesterday kind of dissing Facebook of in terms of the value proposition relative to say, you know, bm where. But the question I want to ask you is, um, what's your success model for scaling an organization on DH for the younger execs out there? And for people who don't know you just chairs up on the camera? What's your philosophy as the repeatable sales, lower cost leverage model? I mean variety of different kind of ingredients. What's the Franks Lukman formula for success and scaling? Bringing a product to market and growing it? >> Well, the first order of business for for a start up venture of any sort is growth. I find that a lot of people come on a business school in trying to balance girl for profitability. Um, that mentality makes no sense to me, right? It's economics. Before accounting, accounting becomes the bastardization of economics, we run our ventures cash on booking their economic concepts, not accounting constructs, right people are trying to show profit prematurely when they can invest that money to grow. We tripled our head count over the last year. We got very far over our skis. No, we're burning a hole in our gas pals but were very clear with investors that look, we are still increasing our productivity for head. Why, when we apply to resource is to grow this franchise Growth expands our multiples, expands valuation. That's what everybody is in the business for, so so sort of summarize. Knowing your question. Most people hold back on growth, and they don't really know why they're not all out trying to drive growth and the reason that growth is so important. You need to be a breakout player. Nobody wants to be the in between player. That's neither fish nor fowl and doesn't become a dominant entity into space that it wants to be in >> and have the financing in the dry powder behind you that you were a venture capital Greylock, which no something into about investing. So that's also important part right? >> Well, you don't. That's why I said to you manage on cash you managed on bookings. Those are the economics in the business essentially, >> and you've been looking up, have some really good finances behind you, trust you who get the concepts and that's key well, continue in the right >> way went public. We also explain to investors Look, this is what we're trying to do, and this is what we need you to buy into. Otherwise, find somebody else's talk. So >> what is the going public affect? You know the perception amongst the CEO's when you chose to list on the way we had them on earlier this week? But how is that affected? The brand perception? >> That was the whole reason for us to go public, right? We didn't need to cash liquidity. Obviously, it's good for employees and investors when I pose fundamentally a branding event. You know, I used the analogy. We went from playing on Saturday to playing on Sunday. You know, all of a sudden you know you're transparent, you know, all the all the thud that gets spread about you by competition. People cannot punch you up on Iand. See what the truth is around your balance sheet. You know how abot your last quarter was? It's been three. I po was tremendous for us from a branding standpoint, >> and you've been known Teo have a reputation of really getting the product in this case, the service, right? And then really getting aggressive on the sales side. Can you talk about what you've done in the sales side? I know you've aggressively hired. >> Yeah, we You know, as I said, we tripled our head count. We went from three shells. Reasons to twelve insight. One year we spread out all over Europe today. This is a ground war. You need an army to fight it. This is not Facebook. We cannot sign up annoying people in a week. It is a business that runs over the ground so you cannot scale and drive growth business unless you have two people to run it. >> And you're selling belly to belly. That right? Absolutely. So you know, >> we're going through the front door of the elevator >> way. Okay, We're getting the hook here. We're getting hooked, but I have to quit final questions. One is just put a plug out there for service's angle dot com that Silicon Angles separate publication. We launched last year, thanks to E m. C. For helping us sponsor that but really dedicated to the new era of services. And there is some disruption. We're excited to cover you guys, so I just wanted to say Go, go check out sources angle. So Franklin asked two questions. One. What's the big disruption in the services business that most people aren't getting right now? General, you know, man and tech on the street, not the insider inside the ropes. So that's the first question. The second question. What's your goals for the year? For the business? >> Well, the interesting thing about the services business is how it's one of these areas that is sort of the least automated. Write. It runs on the concept of institutional knowledge. Phone conversations, informal communications, email and the frontier in service management is that those become software automated structure processes that is not just happening in I t able sticks. It's happening everywhere, right? What do you want to request? Food. You know, from the hotel you knew what a Virgin America, right? You know, request from your seat, something that's just, you know, on an example of how >> that's the story, you know, debate about that. >> That's how it's gonna go, right? So services it's going to become, really that I call the service fabric right? Essentially how thes processes get conducted. So we're super excited because our platform sits right in the middle of that trend and we're going to try and make that trend. >> It's eleven. Platform to the economics are fantastic and no real customs agents were brought up exactly so good margins. >> And it's just >> like the stock immediately. >> It's much more scalable in the district. Disintermediation. You know, all the all the manual effort goes into this. >> Okay, so now I know your public CEO and everything now, so you really can't be as wild as you could have you a private. But what's the outlook for year? Your personal goals for the year >> Wait, given guns from or get one quarter for years. So check with your favorite analysts. >> Okay? Growth is on the horizon. Congratulations. Frank's been great to have your leadership in the Cube. Thank you. Time Cuban great to have you. This is silicon angle dot coms. The cube will be right back with our next guest, Cynthia Stoddard from Netapp CIA, Another CIA. We're gonna get into the trenches and hear about the transformation again. We'LL be right back

(upbeat music) >> Work, sorry. >> Okay, we're live here at VMworld 2012. This is SiliconANGLE.tv's exclusive continuous coverage of VMworld. Day two, we're here, excited to have the new CEO of VMware, a long time, seven time Cube alumni when he was a lowly president of the EMC, Pat Gelsinger, with my cohost Dave. And welcome back to theCUBE. >> Hey, thank you very much guys, great to be here. >> Pleasure to see you again. >> First time as CEO, so first of all, how do you feel, tell us what it's like. Obviously, just for the folks who haven't watched the EMC World interview, I asked you a pointed question. I said Pat, if you were running VMware, what would you work on? So we'll get to that later, but. >> Okay. >> It turned out to be true. >> Turned out to, yeah once again, theCUBE got it nailed, like always, right? >> Absolutely. >> So just give us some personal color around the transition. So you know Paul, obviously you guys had great rapport, obviously, on stage yesterday. You got a standing ovation, he's being called the King on Twitter, he's got a huge respect. You guys work together, just take us through emotionally, the Pat Gelsinger, inside Pat, what went down there? How did it feel? >> And the way he, said handing over the custodianship of the community, to Pat Gelsinger, that was really, I think a great way to put it. >> Well you know, first thing, Paul and I are just great friends, you know? For 30 years, we've worked together. It's like you know, a great pick and roll team in basketball right, you know he knows when to pick, I know when to roll. You know, we just have really learned how to work together over the years. And just great respect for each other's talents. And Paul embraced me, and really endorsed me to the VMworld, and the community, in that sense, is powerful, right? But it also was intimidating. A bit of a responsibility as well. And you know, I had dinner with Tom Jorgens last night. Right, it's sort of like oh, two weeks ago, we were trying to kill each other. Now, my new best friend, right? So it is this very rapidly shifting role. As well as, we laid out a pretty bold vision this week. >> And you were at Intel too, you understand the whole partnership dynamic, we talk about this in theCUBE, the ecosystem, obviously VMware, the beginning of this massive opportunity of extending beyond the VMware look. I mean you announced, as an example, people who not VMworld, that's always been about VMware, they've been dominant in the enterprise. But yesterday you announced changes to the pricing. I mean you guys are thinking bigger now. Is that part of the plan, to think bigger, beyond VMware, and extend to other vendors? Obviously great love fest on the CEO panel yesterday, and also the demos up on stage. So talk about that mindset, and what you plan to do to take it beyond just VMware. >> Well it is very much a community. And when you think about what we're doing with software defined data center, right we're always touching everything, as Paul said. It's virtualizing the data center. And to do that, you know it's the networking guys, the security guys, the storage guys, the management guys, the new application vendors, right? It really is this ever broadening community. And as part of that is both a great opportunity, as well as a great responsibility too, all of those community players. And how can we innovate together, collectively, to bring about this next layer of fundamental innovation, agility, and speed, for the software defined data center of the future. >> So we want to get to that in a second. I want to ask you about about Paul Maritz again, just to kind of come back to the Paul thing. He has yet to be on theCUBE, so we're trying to get him on theCUBE and say it's a safe place. >> Does he not like you? What'd you do, you offended him? >> We haven't-- >> I don't know, he's... >> People want to know about him, he made some really, kind of cool, tongue in cheek comments yesterday about Facebook's valuation and VMware, everyone had a good chuckle out of it. But talk about Paul Maritz as a person. He's rarely doing public appearances, he's a total tech geek, he's a cool guy. So share with the folks out there, what's he like? >> Well you know, I think of Paul as sort of the Michael Jordan of strategy and technology, right? You know, he is just, you know, I don't think of myself as a bad strategist, this is like, the best strategist operating in the industry today around technology, and it's somebody who's deep in the technology, but also strategically very, very broad. And in that sense, his new role is really to allow him to really go focus on what he truly loves, his longterm strategy, understanding the technology trends and really going deep in that area. >> And the technology right, and he's also a huge technologist. >> Oh yeah right, you know he's sort of like, tops and bottoms, right, he's higher in the stack, I'm lower in the stack and boy, right between us, we sort of cover from sand to solutions. >> Well you said it's somewhat intimidating. And you're a lifelong hardware guy, now taking over a software company, how do you think about that, and how do you think you might change the way you approach your leadership? >> Well I think in some ways, I've always thought of myself as an infrastructure guy, right? And you know, most of silicon is done in software these days, so in that sense, I don't see it as that radical in that regard. But I have had the opportunity to really build the hardware infrastructure that every aspect of cloud is built on, and now to be able to put tops on bottoms, right, to be able to layer that software on top of it, to me is just a great opportunity, to take on this next piece of finishing that overall portfolio. >> How does he fit with Joe Tucci? Because I just love the dynamic was on there yesterday. You know, and we've had a chance to, Joe's been on theCUBE, and we've talked to him in person. Great guy, he's just such a great executive CEO. He's been around the block. Paul's like his sidekick now, and those two guys are going to cause some trouble. What's your prediction on the Joe Tucci, Paul Maritz dynamic, because you've got a strategist that no one's ever seen before in the tech business in Maritz, now with a canvas, painting a new canvas. He's done VMware, he's got that thing kicked off, laid out the roadmap in 2010, it's all filling in nicely. It's all going great, you're going to take it from there and ride that ship, and sail into good waters. But now he's now painting a new canvas. What is Joe and Paul talking about? What's that next canvas? >> Well, if you sort of think about Joe right, he's really become, at this point of his career, I'd say the elder statesman of the industry. Where everybody likes Joe, he makes everybody comfortable with him. And you know, there's just this comfort that Joe really brings to any situation. So here you have the big brains of Paul being combined with the experience, the relationships of Joe, and to me, I expect it to be a really powerful combination. >> You know I was commenting to Dave on a lot of things yesterday, and tying in some kind of trendy stuff, like Apple's market share value, and looking at that percentage of market share. And then also when you guys were up on the panel, one of the observations was, you've got the elder statesman in Tucci, and the senior experience of Joe with Pat, you and Paul, and a lot of the companies like Facebook, are run by people under the age of 35. So there's a generation of kids out there running big companies that have market caps of a billion dollars, so that's now coming on to the scene. How do you see that all playing out? Is there a trend towards business value, some kind of digs around the social media discontent, and the markets changing? You made a comment about that. But is it shifting to business value? Is that kind of what you guys are trying to get there? What do you say to those young leaders out there? And also what's happening in that market? >> Well I do think that there is this aspect of you know, building infrastructure, data centers, right, there's just this piece of okay, it's hard work, right, you have to transition people over time, your customers or CIOs, there is a level of security, confidence, et cetera, that needs to occur on that side. And then you have the dynamism of the consumer trends. And you know, Cook at Apple clearly is the elder statesman of the consumer social side of the world as well, and you know, he's not a teenager anymore, in that sense. But clearly it's this ability to generate extraordinary growth, extraordinary new valuation, as we've seen with Google and with Facebook. And how all of that matures, for social to become a sustained monetization model in the industry, isn't really proven yet. >> You know I was really liking Michael Dell on stage, trying to really make his point, I'm not going away, yeah we did a direct business model, we're the PC guys. And then he's advocating, and it's good to see him back in the game like that-- >> Yeah, me too, I think Michael, over the last two years, you know he has a tough job. HP has a tough job, to really transform those companies. And we have to say okay, Michael, he's really made progress. >> A lot of the CEOs in that PC era, they put a lot of East Coast mini computer companies out of business I think, don't want to see that happen to themselves, are a lot more paranoid to these (chuckling) year olds companies firms, and really more aggressive about staying the course. >> Yep, and Michael I think, has clearly said, I'm up for this challenge, and I'm going to take my namesake company through that challenge. >> So I got to ask you a hardware question. Because you know that business. Now you're going to be moving more into the different kind of this, with virtualization and apps. But HP and Dell are classic PC vendors. They've innovated, they were part of the whole Wintel generational shift. They have huge market shares, still. Margins yeah, are tight, but the market's changing. You guys' point about that, a new way. Apple has huge market value, and they have single digit share and growing, in hardware, yet they're so valuable. So the logic is, if you connect the dots, small, single digit share, yet huge profits. Really great, good products obviously. But they're wrapping services in other business models around the hardware, what's your take on that? I you were at Dell and HP, and saying hey, don't give up that PC business, just move fast, don't become driftwood, but what kind of services are they going to have to wrap around these products? Because the end user computing world, yes it is changing, multiple devices, but Apple has demonstrated that you can have a very strong hardware business and wrap around it. So what's your advice to those guys? >> Well I don't think of Apple as a hardware business, in that sense, I think Apple has been focused on a user experience that happens to be embodied in hardware and services, right? And in that sense, they have owned the user experience. They're maniacal about industrial design, they're maniacal about that whole experience, and have really innovated in how consumers buy, utilize, their products, and I think any aspect of things that touch the user have to have that in mind. It's all about the user experience, and they've done it well, and they've said, it's not hardware, it's not software. It's that integrative platform and experience. And my advice to anybody in that space, whether it's Dell, HP, Lenovo, RIM, Nokia, Microsoft, you have to really take that very aggressively in mind. >> So you had your put your man on the moon moment up in your keynote, you said let's get to, virtually 100% of applications, versus, I think you said 90%. That's intimidating, I'm reminded of the climber who's climbing to the top of the mountain and it's like this false summit, right? So, my question is, to get there you're going to have to lick the complexity problem. And over the years in IT, we think we've got that problem solved, and then you peel the onion, and and oh boy, there's more complexity there. To get to that 90%, you're going to have to solve that complexity problem, are we, have we solved it, are we on that path? >> Well, I think we're beginning to lay the foundation for it. And I think some of the software defined data center pieces, okay you know, we got to attack management and orchestration, we got to attack the network and security. So clearly those are elements of it. We have to make storage easy and available. But we also have to attack some of the higher level problems as well. Some of the cloud foundry, the PAZ layers as well, because it's not just about modernizing the old, with things like GemFire, and Data Fabric, and rebuilding the database environment, but it's also enabling the new, and enabling those across the multi cloud environments. And you know, so it's a lot of work to go do. But I think we've laid out the core pieces of the vision, and now my job is really to refine, execute and accelerate that endgame. >> Pat, I got to ask you about disruption and change. Joe Tucci made a comment that I thought was pretty Joe Tucci-like, when asked about the trends. And he said the horizontal's getting shorter, and the vertical's getting steeper in terms of the time, the change and the disruption. And he's hyper focused on that. I know you are too, and you tend to move fast and executive in watching your career. So let's take this software defined networking trend. I know we reported that you were in, when you took over EMC Ventures and looked at that, and you guys moved on some of those deals. So that's really key success, and we talk about it on theCUBE, but that's a game changer for VMware, like SpringSource was acquired, acquisition changed the developer landscape, now you got the Nicira deal as a game changing statement, but you have existing stuff going on like VCE, which is pioneering a lot of the vBLock stuff right? So you got VCE out there, and now you got the software defined data center at the merging side. So how do you sort that out? I know you're you know, first week on the job, or first second day on the job, but I mean you know the history. So, VC obviously, is a flagship offering is the vBLock, how does that fit into this change? I mean it's quickly, the disruption's positive. But they got to react, so a lot of the moving parts have to kind of, get tweaked. What do you see there for VCE? >> Well, and clearly you know, we have, on the SDN side, before I answer the VCE piece of it, you know we have two incredible assets. Right, we have the whole vShield, VXLAN capability, which you'd say, inside of the VMware environment was already well down the path of SDN, and now we have the Nicira assets, and NBP, and Open vSwitch, et cetera, so now, job one for us is bring those together as the most complete offering for the SDN space in the industry. You know we got two great teams. Bring those together, and unquestionably, we got the top talent in the world. So we got to make that happen, and then, we have to make that available for our partners to be able to then innovate with us, underneath us, and on top of us. We announced Sisco partnership yesterday, around how we're going to work together on that hardware, software boundary. And then with VCE, it's used them as the world class delivery vehicle for converged infrastructure, but now from the VMware role, it's hey guess what, you know HP just did a great integrated demo of their converged integrated. How are they going to participate with our SDN assets? And how do we enable them, how do we enable Dell, how do we enable the rest of the industry? >> And VCE now, how's that relationship, that's a separate company, but it's well funded and they've knocked down some good deployments. It's pretty solid, is it a high end offering? Is it more of, I mean how do you sort that out product wise? >> Well you know, VCE vBLock has always been a higher end offering, that's where UCS is positioned. It really is the premiere platform in in the industry. And we expect to continue to invest in that and partner with them, and VCE's doing well, hitting a billion dollar run weight, so we're happy with them. But as I'm quickly learning, I've got other great partners as well. >> So ecosystems obviously, are organic, they're ever changing. How do these acquisitions that you make change the balance of the ecosystem? >> Well everyone of them is aimed at, can we do it through partnership, or should we do it as an integrated offering? And that, where that line is, is never the same. Right, and we might make a decision that hey, it's better done in ecosystem today, and two years from now, hm, it's time to integrate into the core operating system of VMware, that's just the nature of how software and operating systems are built over time. Now that said, hey we're going to be an ecosystem friendly company, and even where we choose to integrate will always have OpenAPIs that enable industry innovation around us because there's more bright people outside of VMware than there are inside of VMware. So, and if we don't allow people to innovate with us, well yeah, they're going to go innovate somewhere else. >> Well, they have to move fast. You can't predict every innovation that's going to come down the road, and boom, something like Nicira was started in 2007, I mean-- >> You know, and I did a speech last year. I called it the Golden Triangle of Innovation. And there are are three primary pools of innovation. What we do organically, inside of an enterprise, like VMware, what happens in the university community, and what happens in the startup community. And we believe that we effectively have to participate in all three of those. Yeah we have our roots from Stanford and that community, and Nicira comes from Stanford and Berkeley, so clearly we see the university piece of it. We see the inorganic piece of acquisitions, and obviously organic, cool things we're that doing like VXLAN inside of the company. >> You've done a great job, I mean we can honestly say, we've been tracking you from the original interview, you did those things, and every year we ask you, we'll ask you at the end of this interview, what's your plan for the next 12 months? So congratulations on that. The question I want to ask you is, yesterday we heard abstract, pool, automate, which kind of is like code words for operating system. And you know you got to abstract away complexities, have resource management, and then automate and make all of that link and load together. >> You're pretty smart, that's good. >> (chuckles) I had to look that up this morning on Wikipedia, so that's cool, and you've also talked about your historical experience at Intel, cadence of Moore's law, so the question I want to ask you is, as you take over the helm at VMware, you have a different kind of OS cadence going on that's very rapid, as Joe Tucci pointed out. What's your Moore's Law for applications look like? Because now you have an enabling infrastructure in the VMware products and technologies as well as the ecosystem, and you've got to foster that enabling technology. So what is the cadence of the app market? >> Yeah, and you know first I'll say at the operating system level, with VMware, we say boy, we like this yearly cadence. And it's nice that it sort of matches with tick-tock model at Intel which I helped create. And sort of the major, minor releases of VMware are sort of in lock step with that. And you know, because what sets a cadence? Why shouldn't it be three or four years? What should be the right thing? And hey you know, we sort of set, we built on a firm foundation of SILICA, and we're going to align heavily on that. To me this tick-tock through through the stack, and then if I look to the next level of the stack, clearly you know, agile and sprints and so on, have allowed app development to occur, I'll say in a social, crowd sourced model in an effective way, but I think fundamentally, you got to say what is your foundation? And I'd say boy, you know a yearly major release cycle, I think there's good, solid technical foundations for that. And then making sure that you have an effective ability to continue to do continuous innovation. >> So Pat, for the last five or seven years, this industry obviously, has focused on doing more with less, operational efficiencies, obviously the conversion infrastructure trend. John talked about abstracting, automating, or pooling and automating, all those things really driving efficiencies, and you know the story with IT spending. It's flat, it's been down, but there's a thinking out there, with big data, and with new Flash architectures, that we can have major impacts on productivity. When John asked you at EMC World, what would you do if you were running VMworld, you answered, part of your answer was more tighter storage integration. I want to ask you specifically about a top down storage integration, in other words, bringing Flash, really managed from the server level, doing atomic writes, and driving new levels of productivity for organizations that go beyond just sort of cutting costs and better TCO. Can you talk about just the vision of, is that the right place to do it? In other words, controlling the metadata from fast servers versus slow storage? You know, it's an interesting transition from a storage company to now where you are as the head of VMware. >> Yeah, unquestionably, you know we have to do a better job at VMware of taking advantage of Flash on the server side, the performance capabilities of that, the IO gap that's opened up. In-memory data applications, but at the same time, we're seeing the polar extremes become more polar. The size of big data, will forever drive these larger and larger pools of scale out data on the one end, and now with in-memory and Flash technology on the server side, the things that you can do with extreme performance characteristics, at the server, at the application level, and VMware has to do a better job of making that available. And some of the things that Steve talked about with vFlash is an example of that. And we are going to do a lot better job of enabling those high performance, in-memory characteristic applications on this end, while an agent with larger and larger pools of shared storage on the other end. >> And embracing Hadoop you get one in further, you're going to bring big data analytic applications, and actually potentially feed those transaction applications that you're virtualizing in near real time, is that direction. >> Oh yeah, absolutely, but to me, the phenomenal thing is the extremes that are emerging here, where everything used to be just in a shared storage array, we're now sort of blown apart, right? Now we have high performance and memory on one end, and these massive scale platforms, and multi petabytes on the other end. It's pretty spectacular, and I said I essentially want to operate on both of them in essentially real time. >> What's interesting Pat, when we were at EMC World, I asked you can there be a red hat for Hadoop, and you said, you know, editorialized, you said you don't think it could be. We recently had that debate on SiliconANGLE and pretty much the crowd is weighing in that there is no red hat for Hadoop, mainly because just the market conditions are different. So just, I wanted to share that with you, and that we're going to continue to do that-- >> I'm glad they agree with me, I like that, so. >> You've made some good calls on big data. The question I want to ask you is though, is in the major presentation yesterday, you guys laid out the new experiences, and you talked about old way, new way. Access, it was access, app, and infrastructure, PC users, to mobile users, existing apps to new apps and big data, service to cloud. So I wanted to ask you about converged infrastructure. Because that's the old way, so a lot of the definitions around converged infrastructure has been defined as part of that old side, that side of the street that's old. Yet, in the new operating system future that we talk to everyone about, data's now a key kernel part of the design. So I want to ask you, data infrastructure, define what data infrastructure is as it relates to the new converged, if it's not replacing converged infrastructure, how has converged infrastructure changed from old to modern with data at the center of the value proposition? >> Yeah, you know, my EMC World keynote speech touched on this a little bit, this idea of data gravity. Where data gets bigger and bigger and heavier and heavier, and as the networks become agile, and VMs become mobile, things sort of move around that gravity well of the data. And I expect that to continue forward. So today, converged infrastructure, you'd say what's at the center of a vBLock? Right, you say well, sort of the UCS servers, because that's where the apps run. And I think increasingly in the future, the center of converged infrastructure's more around the storage infrastructure, because VMs are so mobile and light in comparison. But the idea of collapsing the boundaries between server, network and storage, I think is still a very fundamental concept. And when you go look inside of a Google data center, they don't quite think about it the same way. It's this array of infrastructure that is agilely available for their different applications. And I think that's fundamentally the right model. And a cloud scale version of converged infrastructure makes a lot of sense as well. >> And highly homogeneous, and many have observed, obviously, the advantage that Amazon and Google have. And you're clearly, the software defined data centers moving toward a homogeneous environment. >> Right, one common software layer across a set of services that are embodied in converged infrastructure hardware. >> And historically, homogeneous has meant you don't get best of breed. So how do you achieve best of breed? Is that through the ecosystem? Maybe, if you could elaborate on that a little bit. >> Well I think in this case, the scale operation characteristic swamp, the individual characteristics are best of breed in that sense. And they become enabled through this layer. But that hardware, software boundary is always a point of innovation. When virtualization of VMware first emerged, Mendel had this paranoia, we would rely on no hardware. We'll make it work on anything. And then over time, the hardware got better at doing things like page table mapping, memory breakthroughs, et cetera, for virtualization. All of a sudden, it's sort of like, oh the hardware's enabling better virtualization. You took advantage of it. And the same thing will emerge as you go think about converged infrastructure for networking and storage as well. The hardware will continue to evolve to better enable this virtualization layer of software and automation above it. >> We're starting at the hook, but you know we want to go, you got multi core, high megahertz clock speed right now, with Pat, we have a couple minutes left. I have two questions, one is around the future of virtualization, we're following, on SiliconANGLE.com, some of the new advances around large data centers that have commodity gear. So obviously, the usual suspects are Google, Facebook and whatnot, having a lot of commodity machines. And low level virtual machines is a really big trend now, looking at how to deploy VMwares at a programmatic layer. I don't know if you're following that. So I want you to comment on what you're following relative to some of the new trends around VMs. Obviously down to the low level, low level virtual machines and how they're playing up the stack, and then my final question after that would be, in the next 12 months, what's on your to do list? >> Yeah, well you know, I think you know, part of our task is sort of today, the leader in virtualization, is continue to leading the trends in that sense. Continuing to reduce the overhead of virtual machines, IO stack improvements, the Flash example that we gave before is a big piece of that. And continuing to enable better app affinity. You saw the Hadoop work, you know some of the big VM work around databases as well, and saying now how does, because in many ways, databases, VMs operate on, under provision hardware, and be able to over provision, and databases are over provisioning in memory for an under provisioned resource of the database, it's almost the inverse. So how do we address that? The Serengeti Hadoop work is another example of that. So there's lots of things to continue to innovate at the virtualization layer, both as you look down toward the hardware, as well as as you look up toward the application, and I think in that sense-- >> Is that where the software kind of tie in, that's why you're not seeing software-defining networking, more stuff with defined data centers? You have some ranges there, is that the part? >> Well that's a big piece of it yeah. Right, and you wanted all that to become policy based. Because you want essentially, what Steve likes to call the virtual data center to associate the policy of the application requirements as well as with the policy mechanisms of the underlying infrastructure. So that you know, the virtualization, the networking, the security elements, all of those become embodied in that as a set of services to the VM or this virtual data center. Next 12 months, obviously job one is make the transition smooth. Job two is get plan 13 in place, as the year concludes here. And then some of the key agendas of those we already talked about, operate on the SDN. We just made 1.3 billion, I better make a good use of that. Figure out our storage and security virtualization strategies, our management stack, and some of the horizon things today are really pretty thrilling for that next generation end user experience. >> Pat Gelsinger, always a blast on theCUBE, now as officially the CEO, great to have you on. >> Well actually I'm not official yet, T-minus three days now, September 1st, so I got-- >> Three days, okay September 1st. (chuckles) >> Well congratulations on the-- >> Pat Gelsinger. >> Thank you very much. >> CUBE alumni, great guy and tech athlete for sure. This is theCUBE, SiliconANGLE.com's flagship coverage of all the events extracting the signal from the noise. We'll be right back with our next guest after this short break.

>> Narrator: From San Francisco, celebrating 10 years of high-tech coverage, it's theCUBE! Covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Hey, welcome back everyone. We're here CUBE live in San Francisco, California, VMworld 2019. We're here in Moscone north lobby. I'm John Furrier with David Vellante, my co-host. Three days of coverage. Our next guest is Steve Wood, chief product officer at Dell Boomi. Steve, thanks for joining us today. Appreciate you coming on. >> Thank you. >> So we got your event coming up in DC. theCUBE will be there covering it. >> Correct, yes. >> We've been following you guys. Interesting opportunity, you're the chief product officer, you got the keys to the kingdom. You're in charge. (laughs) >> Yes sir. Oh yeah, yes. >> Tell us, what products, roadmap, pricing, all the analysis. >> (laughs) >> Take a minute to explain Boomi real quick for the folks that might not fully understand the product idea. >> Sure, yeah, yeah, absolutely. I mean, Boomi is a platform. The goal of the platform is to solve really tough technical challenges that you often meet in order to get to a business outcome of some kind. So if kind of brought that into maybe sharper focus, if you like. So Boomi started its life as an integration vendor. And its main goal is actually making it super easy to integrate your assets across cloud and on-prem. And that was a challenge at the time. A lot of the older integration tools weren't really ready for the cloud. Boomi brought forward this awesome architecture, this distribution architecture of containers that could run anywhere, integrating everything, moving your data around as needed. >> It was visionary. >> It was super visionary. >> I mean, it was early days. I was like, almost pre-cloud. >> Yeah, yeah, yeah. And actually, what was the cool thing was that you would have the benefits of cloud computing but you still could run something, like, behind your firewall, which was a really unheard of experience. Which actually starts to sound a lot like today, with Edge. But I'll kibosh that. But then, we sort of expanded into B2B, so you can connect to like, Walmart with all the sort of traditional and sort of modern protocols, kind of stuff that's been around for a while. We launched Hub for data quality, 'cause we felt like, hey, if we're connecting all of your data together, you're probably going to find it's fairly inconsistent. So we have Hub to help you manage your data quality. And then we moved into API management. We've done a huge investment this year to API-enable your integrations, but also API-enable your enterprise. And then possibly my favorite, 'cause it's an acquisition of my company, which I joined Boomi, acquisition of a workflow business. So actually not only provides workflow for people-centric processes, so really the connecting the dots from your devices and things and your infrastructure, on-prem and the cloud, all the way up to your people, driving those end-to-end experiences, but we also use the workflow product to help extend our existing products. >> So you were building a platform in your other company, and now Boomi's also in the same ethos, API-based, DevOps, complete DevOps, kind of no-code, low-code kind of thing. >> Steve: Low-code, yeah, for sure. Absolutely yes. >> What is, so what did you guys jump on, which wave is powering you guys now? Because I look at VMware, for instance, they have all these acquisitions. Their integration's going to be challenging. And just, most enterprises that are not born in the cloud, I mean, their legacy is, they got everything under the sun. And they're not necessarily talking to each other. It's a huge problem. >> No, for sure it is. And actually, it's become more of a problem as we move into machine learning and sharing data across enterprise, given access to the data for sure, ensuring it's controlled. So there's a lot going on. I think also for us, we're seeing obviously data's getting faster, you know. So as I often joke internally, nobody's asking for less data slower. >> (laughs) >> And we don't think that the volumes of data are going down anytime soon. So for us, it continues to be about the data. That for sure is the trend, the fact that it's moving faster, it's needed faster. We're going from batch to streaming, going from, you know, request-response to real-time. >> So what problems do you guys solve? You had to be nailed down and give up the problem statement, what is the main problem statement that you guys are addressing today that's most relevant? >> Yeah, the biggest problem is actually, I would say it's just unlocking your data. But in the fastest time possible. So when Boomi kind of, I guess, does well in the market, it's because we bring kind of enterprise creds, we bring you a journey to the cloud, not a cloud-only picture. We're not lookin' on-prem, tryin' to be retrofitted to the cloud. So what customers experience is they get the agility that they expect, so they get the value very, very fast. But they're also kind of ready to kind of make that transition from bein' on-prem, legacy, big vendor type, ERP, massive system to best of breed. And we help them with that change. >> I always say that, to David and I chattin', just really DevOps is about Dev and Ops, right? You want to have a great development environment so you can build those next-gen apps, which by the way, they need data, they need machine learning, all these new things are going on within microservices. It's very compelling, and everyone kind of knows that already. Or they should know it. But the dev scene's lookin' good, CID pipeline, good scene on the dev side. It's the ops side. (laughs) So I've seen a lot of enterprises really tryin' to catch up their operations, which is why VMware is continuing to do well, because they got operators. So I get that, like, they're not going to shift overnight to the Nirvana. But the role of developing and operating that app is ultimately the core digital transformation. >> Yeah, for sure, for sure. >> John: Your thoughts on that and what you guys are doing? >> Well, part of it also, like, when we looked at, so actually with the acquisition of Flow, I think it was interesting for us because it moved us also to be able to provide apps. So for example, VMware has something called Workspace ONE, which is their onboarding, help the employees onboard within the organization, connecting you to your endpoint applications. We're actually working with them on a similar thing. We have an onboarding solution to help employees onboard faster. But part of, I think, the value that we bring is that apps have traditionally, you know, been something that's heavily coded, they take a long time to do. So from integrations being heavily coded to APIs being heavily coded, and now for us, apps being heavily coded, is we kind of solve those tough types of challenges, everything from like, mobile and offline to APIs that are scalable and robust, through connecting to all of your systems including your things, and having the ability to do that. We kind of solve all of that so you can focus on what, so the true innovation. But like any cloud vendor, even if you leave it alone, it's getting faster, richer, better. So you know, it's unlike, say, coded solutions where they kind of sort of, they're a snapshot of that point in time. And if you leave them alone, they kind of slowly fade away, whereas Boomi is, we're constantly modernizing what you build on our platform. >> So the other piece about digital transformation is the data. And then you're talkin' about your data quality and information quality initiatives. That's kind of in the tailwind for you guys. So where does it all fit in terms of digital transformation, data, some of the things you were just talking about, and then the rest of the Dell family, Dell, VMware, how does it all fit together? >> Oh, sure, okay. Yeah, that's a lot. But yeah, I'll see if I can sort of give the gist it. Well so partly actually for us is like, getting data out. It feels like if you're going to transform your business, you kind of need to know what data you have. That feels like a fairly normal thing. But also, and I can't, I'll give you a teaser. We can't say more about it. But one of the things that's been interesting about the data on our platform, our metadata, which is anonymized, we have more customers for the longest time running on our cloud service, which is a multi-tenant service, which means we see how the 9000 plus customers work with other systems. And we have the metadata of how they architect that connectivity across the board, all the way out to people, all the way down to their infrastructure. We can see what's going on. So we've been doing a lot of research. And actually, showing you more about what your business is doing. And we have some really cool announcements coming up at Boomi World. >> So the truth in the data. I'm imagining machine learning. But you get to see the patterns. >> We get to see the patterns. >> Emerging. The signals, there's signals. >> Yes. And we're seeing the patterns not only in what's being built and the structure of what's being built, but how it's operating, how it's being deployed, what's most successful, how those things work. So we have a really interesting sense. So when you're going through a digital transformation, we think we can show you things that you'll not have seen before. >> So what are you showing and to whom are you showing it? >> So it'll be at Boomi World on the first of October >> (laughs) >> In Washington. So I can't say more than that. But we're going to show them some things that our platform can extract for you that we don't think any other vendor's done before. >> And today, how do you visualize that? >> Well, today actually we don't do that much to visualize it, actually. That was actually, so we've been on a real machine learning train for the past couple of years. And as we got really good at understanding the metadata we have, and we've got the data scientists involved, they started showing us more of the art of the possible. So for that I'd say we've been probably remiss in not helping customers more, exposing more of those insights. Obviously, from a transformation perspective, we unlock your data. But we think we can do a lot more. >> So is the Dell relationship largely a go-to-market one? Same question for VMware. >> Well I'd say, like, if you think about Dell, it's like, I guess, I dunno, the sort of unofficial, so the hardware part of the triangle, VMware being the server infrastructure. >> Don't tell them that. >> Yeah, sorry. >> But it's true. (laughs) >> Yeah, sorry Michael. But it's the hardware side. And VMware you've got the kind of infrastructure, DevOps, operational side. And then Boomi brings you the data. And we think that that kind of triangle is what you need to go through a digital transformation, certainly if your title is CIO. >> And Michael Dell's bullish on you guys. He was at your last event we broadcasted. He sees you guys as modern SAAS interface for companies, certainly from a transformational standpoint, as the interface in for integration. >> Yeah, for sure. I mean, it will, I guess some of our performance speaks to that. I mean, we've been a very, very high-performing, I don't want to say we're the number one performing technology in his portfolio, but it's certainly, it's either-- >> Well, you're up and to the right. That quadrant thing. >> Yes, quadrant, yes. >> What's the winning formula? Why are you winning these deals? Why are you winning customers? Why are you keeping customers? What's the real value that they're getting out of Boomi? >> So our CMO would want me to say, business outcomes accelerated, which is, hopefully you got that. >> Check, got that down. >> Oh, yeah, yeah. (laughs) >> Gold star for you, go. >> Thank you, thank you. >> Now, the truth. (laughs) >> Now the truth. (laughs) It's actually, but it is time to value. I mean, our customers, that's the, because we've solved the challenges, sure. Other vendors can say, we've solved the challenges too. But we've solved it in a low-code way, and customers see the value very, very quickly. So when we go, you know, head-to-head with a competitor on a deal, you know, like a bake-off if you like, we win pretty much every time. >> Take a minute to explain what low-code is for the folks that are, been debating what low-code is. Been a lot of Twitter wars on this. But explain what low-code is. >> I will give my explanation, sure. So low-code fundamentally is the idea that, you know, I'd say, like, the first phase, almost, of cloud, was like, hey, you're not going to code anything. The new paradigm is it's all point and click. And Salesforce, actually I used to be at Salesforce, I sold my last company to Salesforce. It was all about kind of like, the no-code approach. But I think reality is, it's like, there's different ways in which you can be productive. Sometimes point and click is by far the most productive, but it is not always the most productive way to solve a problem. Sometimes code is by far the most productive way to solve a problem. So when you provide a low-code platform, what you're really thinking about is productivity for everybody, not just the point and click, drag and drop, ease of use, but also productivity for the developers. So when they engage and they're working together to deliver a solution, it's highly productive. >> For instance, wiring up APIs is a great example, or managing containers might be a great use case of low-code. No code would be just, you know, more automation behind the simple stuff. But low-code is really more stitching stuff together. >> Yeah. And sometimes people do associate it more with application creation side, but I often think of it as, like, a role thing. If you think about, like, your company, one solution to solve the kind of app gap, or the gap in all the stuff in your backlog that needs to be done, is to hire more IT people. The other way to solve the problem is to empower everybody you have to do more with technology. So I often think about it as like, you know, software eating the world, you know, a lot of people are on the wrong side of that equation. You know, they're-- >> You talk to people who are cloud-native, or born in the cloud, their IT is the developer. I mean, they're the ones managing the configurations, and it's all either scripted away or written code for. What was IT's job? (laughs) >> You say a lot of people on the wrong side of that equation, you mean customers? >> No, I mean, well, people inside the business are often like, you know, they've got a whole bunch of stuff they want to do with technology, but there's a gatekeeper, and that gatekeeper is the developer. And it's not that they want to be a gatekeeper, it's that you need tools to be able to do it. They want to be sure the architecture's right. So low-code platforms are all about kind of bringing more people into the conversation. So I often think about it as like, take the business, and so say, your ideas don't now get translated through a whole bunch of series of weird things, you can now be very engaged in the creation process. >> So it's domain expertise meets coding capability. >> It reminds me of the old 4GL days in the '80s. You know, you had interpreters, scripting languages, kind of higher-level of abstractions. But the underlying language is hardcore, compiler, object code, you know, all that stuff under the covers has to be there, right. That's, you're putting that abstraction on top, making it easy to code. >> Yeah, absolutely. 'Cause like, I mean, what you deploy has to be credible. So what the low-code vendors are after is something where an architect would go, love that, that thing is great, I love the way it's put together, it's well-architect, well put together, and I can code around it to finish those last small issues, and kind of, you know, add my shine to it. >> 'Cause they know what they're dealing with. >> Yeah. >> Under the covers, at least. >> Yeah. But a lot of like, you know, the no-code vendors kind of went for architecturally slightly curious routes and didn't necessarily think about the whole picture. >> So you guys are all about dealing with all this complexity, helping people manage that, at least a part. How about some of these new innovations that are comin' out. I mean, the world's crazy about ML, AI, blockchain, you know, all kinds of new automations. Where do you guys fit into that? Is that an opportunity for you? >> Yeah. I mean, well, so machine learning, we're all, oop. Sorry, I tried to spill my water. We're all crazy about machine learning as well. So we're using it a lot, as I mentioned, on our metadata. But also, we see a lot of our customers using our technology to get the data out in order to surface new insights. So for example we've got, like, actually Jack in the Box would be an interesting example of kind of emerging technology. One is that they're using our technology to get data out at the point of sale. So they have to use, our technology is running at the point of sale. They have 2200 plus locations, which means we have to be able to run out there on the edge and process it right at the point of sale. But they're trying to do things like, you know, when you drive up and your license plate is scanned, they know who you are, they go, hey do you want those, that same meal again. You know, so they can predict what you want, they can help make suggestions for you. So that's a fantastic example. So, yeah. >> Great edge use cases. I mean, that's awesome. >> And then, which is one of them, but there's also, machine learning for us, we're tied with machine learning. And we are exploring the idea of actually providing machine learning as a service to our customers. That's something we're just, we're sort of eyeing that up as we've been doing more and more internally. But blockchain's the same. And we see customers playing with blockchain all the time. And actually, I guess, our pitch to customers who are looking at emerging technology is we have a group that is looking specifically at emerging technology. And because of our time to value, and because often, emerging technology is like, so what does blockchain mean to, I dunno, well, you guys, theCUBE. >> John: Supply chain. >> Steve: You know, like, how would you use it? You might want to experiment with it. >> We have a CUBEcoin. >> You have a CUBEcoin. >> And we have a reputation protocol, and we have a community software layer. >> It's actually working. >> I would track the supply chain. >> You're going to do it? >> I already built it. (laughing) It's in tech preview right now. >> Okay, well good, good. Hopefully you did it on Boomi, that'd be nice. (laughing) >> No, but I mean like, the success or maybe failure of CUBEcoin, I don't want to call it, but you know. >> It's not a utility token. Well maybe, nah. >> Right. (laughs) But like, a lot of customers want to build to experiment, so time to value's really important. We're solving those problems in those emerging technologies. >> Yeah, rapid application development and DevOps, using containers, APIs, very friendly. >> Try it out and then see, like, does this make sense? >> All right, so you got the event coming up October first to the third in Washington DC. You get a plug for that. >> I might've mentioned it. >> theCUBE will be there. You're holdin' back on some of the good stuff. The good items. We'll wait for then. >> Yeah, otherwise, yeah. Wait for the keynote, then you'll see, yes. >> (laughs) They all want to know now. Come on. (laughing) They're all like, no, don't say anything. All right. We'll leak it on Twitter later if I find out. No, no. Steve, thanks for coming on and sharing the insight. We're looking forward to chatting more at Boomi World in Washington DC. I'm John Furrier with Dave Vellante. More live coverage here in San Francisco for VMworld 2012 after this short break. (electronic music)

>> Announcer: Live from Washington DC it's The Cube. Covering .NEXT Conference. Brought to you by Nutanix. >> Good morning everybody. In 2009, infrastructure professionals, and the vendors who supplied products to them, started to realize that the cloud was real. They began to try to replicate that cloud on site. The first instantiation was what we call converged infrastructure. Converged infrastructure was essentially the combination of storage, server, and networking kind of bolted on together but prepackaged, pretested, and engineered to be installed and delivered in a more seamless fashion to minimize the amount of labor that had to go into the management of infrastructure. That was around 2009 and in that same year, Nutanix was born with a slightly different vision, to actually develop a solution that was truly cloud-like for on prem. Welcome everybody to Nutanix .NEXT 2017. This is The Cube, the leader, in live tech coverage. My name is Dave Vellante and I'm here with Stu Miniman from SiliconANGLE Wikibon, who is an expert on Nutanix, on hyper-converged infrastructure, which was the next instantiation of converged infrastructure. And now, Stu, we see this going into the cloud era. Nutanix is a company that's probably going to do close to a billion dollars this year, if not a billion. They got a two and a half billion dollar market cap. They got a gross margin model in the high fifties. They're growing at 65, 66% per year. The stock, when they did their IPO, was a meteoric rise, sort of flattened out since. It's up today, on some news that was broken by CNBC. They're doing a deal with Google. This is our, let's see, fourth? Third or fourth .NEXT >> Third year of the US show, The fourth >> Fourth overall. >> Nutanix conference overall >> we did some in Europe. >> Stu, great to be working with you. We've been together a lot this month at a number of shows. This is sort of the capstone of what we call true private cloud and a great instantiation and example of it. What are your thoughts, early thoughts, on what to hear. >> Steve, great to be with you as always, and excited to be here at this show. One of the things I love in our role as analysts is when you see something in some of the early stages. So, I first got introduced to Nutanix when they were about 20 people. Little bit smaller than say, when I first met VMware, when they were about 100 people. And to watch this company and this wave grow I remember John Furrier and I interviewed Dheeraj, CEO of Nutanix, back at VMworld 2012. And, right, infrastructure and converged infrastructure, I mean, I worked on some of the original Vblock architectures when I worked at EMC, and we're saying "Take my storage, take my network, "take my compute, put 'em together, "package 'em, integrate 'em, try to make it simpler." But when we talked to Dheeraj, it wasn't about the infrastructure, he really posited that the challenge of our day is building distributed systems, and it's really a software challenge, and that is at the core of what Nutanix's IP, what their engineering mentality is, and they've kept that going forward. We always talk about, oh, okay, in our infrastructure silos, Nutanix's vision from day one was to go beyond that, we talk about hybrid cloud or multicloud, today, that's what Nutanix is starting to deliver in their vision. When they first launched themselves as an enterprise cloud, as their marketing, everybody was like "What are you talking about? They're an HCI player, what's their cloud mission?" Making an announcement with Google shows that they are going to have some partnerships there to live in that hybrid or multicloud world. And Dave, I want to clarify, when I You know, we throw around these terms, hybrid and multi for me these days, I look at it as, hybrid is a lot of what I know you used to call federated, so how do I have a model that really looks the same whether that's just the application layer or even going down to the infrastructure layer, spreading between environments, typically my private cloud and my public cloud service writers can be in the mix there, multicloud means I've got data and I've got applications that are going to live in multiple public clouds in multiple data centers, of course we've got SaaS, so that differentiates a little differently. Things like Kubernetes are really helping that explosion and that discussion of multicloud, kind of replacing what we used to talk, with PAS, the platform as the service, where I could really be independent of the cloud, so there's a lot of nuance and detail which I'm looking forward to digging into. >> It's nuance >> Over the next two days >> But it's important nuance, because basically you're saying it's not just a bunch of hybrid, it's not just a bunch of clouds, >> Stu: Yeah. >> It's some kind of federated >> Stu: Yeah, we had >> It's a data plane and a control plane that spans multiple physical locations, essentially. >> Yeah, I worry about things like identity, I worry about things as to how to security SPAN these environments, governance of course plays in a lot, but I'm sure we'll hear things about consumption model because one of the things cloud consumption model used to be like, oh well some business guy just swipes a credit card and goes and does it, well shouldn't all infrastructure be as easy to buy as we did, I mean, you remember a decade ago we always talked about the consumerization of IT, now it's really that cloudification of IT with companies like Amazon really driving forth the model that everyone wants to copy. >> So since we've started researching Nutanix and talking to some of it's customers two years ago at the initial .NEXT conference, at the Fontainebleau in Miami. Really talked to a number of customers and you could see the enthusiasm for simplicity, you could see the desire to reduce their reliance of VMware and the vTax that was hanging over their heads, and at that time, a couple years ago Nutanix introduced Acropolis, which is essentially a hypervisor inside of what they call now the cloud operating system. But that is a strategic move by a company that's basically saying, "hey, we're not just hyper converged, "cause everybody's now pivoting "to hyper converged, we're cloud," so it's a message to the financial world, to the industry analysts, and to customers that, we have a vision and to the financial world, we have a large TAM. Financial guys are more worried about, they're always worried about TAM expansion, that's their TAM expansion plane. Now, bringing it back to some of their financials, just briefly, Nutanix essentially loses 37 cents from an operating basis, on every dollar of revenue it makes. Okay, that's I guess in vogue these days, but it's funny accounting, because they don't recognize the full value of their OEM deals, like the Dell deal, again some nuance, and there are some accounting changes that are occurring which should be a tailwind for this company from just from the optics of the income statement. So you're going to see, and I think the street's finally starting to understand this, again, stocks up today on the Google news, there's no press release yet, but CNBC broke that news, what do we know about that? >> Yeah, so first of all, right. The accounting changes coming this summer, if I remember right, I believe it's August, >> Dave: Yep. >> So that means that rather than taking the three year subscription and only taking a small piece of that today and pushing most of it out into the future, there will be a restatement of all of Nutanix's number, which, right, will be a tailwind as you said and push all that in. Google, number one, is you look at one of the most interesting dynamics of Nutanix is, been the relationship with VMware. I did an interview with Dheeraj right after the IPO, I was at the headquarters, sitting with him in this beautiful library that they have there, and he turns to me and he's like, you know, on camera, he says, "Stu, if VMware hadn't been so negative on us, and not allowing us to OEM or ship their product, I don't know if we would have launched our own hypervisor." It was not an initial plan. It was something that he's talked to the analyst community and said, this is something that was not simple, it was not something that was done lightly, it was something that, their hand was really forced because customers say, "I want the simplicity, "I want to be able to just stand it up, "I need that to come pre installed," and there was additional value that Nutanix felt they could bring. The DNA that they had, as they said, from companies like Facebook, from Google, and the like, where they understand the underlying code that they need to build to be able to build this distributor architecture. So, building off of KVM, they built the Acropolis hypervisor. One of the next big shifts coming is containerization, and this is where Google fits in. They should be able to accelerate that move, which is the thing I worried about with hyper converged, is we took our virtualized SAN environment and we just put them in slightly different form factor. It's simpler, yes, it's great, it's going to be, hopefully, a better economic environment, but how do we move the company forward faster? Two years ago, the customers were really excited cause they said, "I got my weekends back." What you want from an IT department is not to say, "hey, I'm no longer just overworked," but "I'm driving the business forward." But Dave, you've always said the role of the CIO is not just to maintain the business, but to transform and grow the business. So that's where we need things like containerization to help companies be more agile and move faster, and to have IT turn into a force that can help code, create new business lines, leverage our data more. The thing that we've heard at every storage show we've been at recently, Dave, is, NetApp actually say that "storing is boring" and that is something that we hear, is "I need to leverage our data, "we need to get it out there" and that's what I'm looking for this week, is to hear more of that cloud native piece. I was at the Cloud Foundry Summit a couple weeks ago, I can sit that on top of Nutanix. So how does partnerships like Google and some of these environments help with application modernization, analytics where I can get new, you know, take my data and create new business value, cause that's where we're going to really transform and grow companies into new revenue streams, and Nutanix is a platform to help deliver on that. >> So, Stu, since the spring when we released our latest true private cloud report, the Wikibon team, there's been a lot of talk about that report, it's implications, we had, there was a blog post today from Yaron Haviv at Iguazio saying, "you guys needs to rethink your definition of true private cloud, because the on prem guys have no chance against the cloud guys," we don't agree with that, by the way. But the notion of true private cloud, is this this on prem infrastructure that substantially mimics the public cloud, and as I said before, has a control plane that spans multiple physical locations. That's a concept that we've kind of put forth, and started to quantify, because there was so much cloud washing going on. And it really is, frankly, the savior of the existing infrastructure guys, or could be. Because their legacy business is not growing, in fact it's declining, and this is a very high growth market opportunity for these folks. So, my question to you is, can Nutanix participate in that high growth market? You know, there seems to be an aspiration, maybe I'm overstating this, but to be the next VMware, of sorts. >> Stu: Yeah, no, no. >> Can they do it? >> Exactly, and Dave you're not overstating it, I've heard people from Nutanix say that was their target. Their target wasn't to replace a flexpod, their overall vision was right, to be the next VMware. They want to be a platform to be able to grow on that. And the thing I've been looking at, at every show when we go to infrastructures, how do you live in that multicloud world? Because, you can't put blinders on and say, "Right, well, Amazon's in a corner." No, we know Amazon customers are using them. Right, as you said, Dave, I want that operational model in my own environment to build what we called a true private cloud, absolutely Nutanix is a player there. There's still work to be done for all of these infrastructure players, but what are they doing? How does their control plane span beyond that? And why should Nutanix be more than just a piece of the infrastructure? Because, there are lots and lots of players, not only the infrastructure players, lots of software companies, and the cloud companies themselves, that are going to say "I'm going to own that piece." I mean, Microsoft, identity is one of their greatest strengths. Google and Amazon, have been going after that, I mean, Amazon's eating everything, Dave. So, why should Nutanix not just eat some of the old guys, but be a player that lasts into the new world? Is looking forward to the announcements later tonight, we've got a lot of their partners and customers on here to be able to deliver proof points. And Nutanix is still growing, still doing real well, and you know, exciting stuff. >> Yeah, so we're going to be covering this, wall to wall coverage of two days. We've got some great outside guests coming in, we got Diane Greene's speaking at this event, Bill McDurmott's speaking at the event, and word is Peter McKay from Veeam is going to make another appearance, he's like The Cube, he's everywhere. (Stu chuckles) And then some really interesting outside speakers. Malhotra is here again, so really excellent line up that we have for you guys this week, two days, wall to wall coverage, this is The Cube, we'll be back from the district, live in Washington, D.C., this is Nutanix .NEXT. Be right back. (relaxed futuristic music) >> Announcer: Robert Herjavec

>> Announcer: Live from the Mandalay Bay Convention Center in Las Vegas, it's theCUBE, covering VMworld 2016. Brought to you by VMware and its ecosystem sponsors. (uptempo techno music) >> Okay, welcome back everyone. We are live here in Las Vegas for VMworld 2016. This is SiliconANGLE Media, this is theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with our guest host inside the community, Keith Townsend who's with CTO advisors, and our next guest is Bask Iyer, who's the SVP and CIO of VMware. Both of you, welcome to theCUBE. Your first host as an analyst here on theCUBE, Keith, thanks for coming on. Bask, great to see you again. >> Thank you, good to see you. >> You're not like just any old CIO. You're at VMware, it's a big company, it's a vendor in the landscape, but you also have been on the other side. You've been a practitioner, you've run for over decades, real infrastructure, really going back through the cycles of innovation. Now you're on this side serving customers on the other in this transformation stage. What a couple years it's been. Since last year when you were on theCUBE, we talked about digital transformation, eating your own dog food. First question is, what's changed this year with VMware? Obviously, a lot going on with the technologies, post-federation world. What's going on technically in the landscape for VMware? 'Cause I know you guys do a lot of early stuff inside VMware. >> Yeah, so, I think we are eating even more dog food. In fact, we are calling it drinking your own champagne because I don't like dog food, even if you make it, I'm not going to eat dog food. I've been drinking a lot of champagne. What that puts you as an IT practitioner is, I mean, you're showcasing private cloud, you're showcasing hybrid, and most of the things that we are talking about we have influence from inside. You can go to the executive staff and say, "I need to go to Amazon, I need to go to Google, "I need to connect, "I cannot be locked into a single cloud strategy "or a device strategy," and so on. I feel like our team is very much part of it. Our team is also getting more into new product development. We've developed a whole line of mobile technologies right now that makes it easier to sell something like AirWatch. It's easier to always talk about applications. Here's what you can do with applications on the mobile side. >> A lot of, certainly VMware as a company has changed, but some big executives have departed. Carl, Bill Fog, among others. Sanjay is still there, but he had the AirWatch, but now, this any cloud, any application, any device. This is not a new messaging, but there's been some product turnover. V sphere has been changing, V cloud air, we're not hearing much about that, more management layer. How has that impacted some of the champagne or your own internal incubation of the technologies? What's new there, what's shifted? >> Yeah, so what you are seeing is the change in technology is even faster, and I keep telling my team is yesterday's news wraps fish. So unless it changes, why are we here? I love the fact that we are pushing technology. The thing I see in my experience is technology always changes, but the last few years, it's faster and faster, and I don't think it's going to slow down. What has changed from last year to this year is we were the leaders in private cloud last time. I came and talked about how VMworld has one of the biggest private clouds. All the hands-on lab is run on our private clouds. But we want to go beyond that, we want to go from private cloud, hook it to the public cloud, or any cloud. I want to come back. And if you think about, when I talk to the CIO friends, while they like every cloud provider, they don't want to necessarily be locked into anybody. It's a big fear everybody has, and for people who don't believe it can happen, I've been here long enough. In the 2000, we had these guys called ASPs, if you remember. >> John: Applicant Service Providers. >> Artifice migrated to the ASP providers, and a lot of them went out of business because they lowered, they were all competing for the bottom line. Not that that's going to happen in the public cloud story, but different workloads have different needs, and you want to provide the maximum flexibility as possible. If you run a private cloud effectively, even as of today, it's definitely more cost-effective than any public cloud, but you may not want to do that. So, what do you go and tell my colleagues to say, you want a public cloud, you got it. You want Amazon, you got it. You want IBM, you got it. >> John: Choice. >> Choice. And I think VMware, if you remember, made our mark by giving the choice for you, so you can in on HP, you can go in Dell, you can go in on NetApp, you can go in on EMC. Even when EMC was the owner, still the owner, we still did not exclude you from running it on a competitive. >> And that built the ecosystem, basically. >> That built the ecosystem, the things that you see here. And Michael reiterated it today, so we are going to be available on every cloud, every platform, that helps, it creates a lot of money for people. And for CIO, just go back into the practitioner, that's what I want. I may stick to a vendor, but don't lock me in. That should be my choice. >> So, talking about fast change, VMware, infrastructure-focused company from the outside, internally, you have to deal with both developers and infrastructure guys. Martin Casedel famously said that developers are much more involved with that purchasing cycle. How has the relationship with your internal developers and your infrastructure folks? >> It's very good. I mean, but I can see Martin's point. I've worked on other companies where the developers actually worked around the infrastructure folks, because you won't get the things provisioned on time. If you run an effective infrastructure, which we do, I actually challenged my developers, developers reporting to me as well, and say, "Do whatever you want, "because I want to know what you like doing." And a lot of them work on our infrastructure because it is effective. If you do a good job, people will want to use somebody who manages (indistinct talking), but it's not true in most of the cases. Most of our infrastructure is still run the old IT way, where people just say, you know, it's going to take me years. I have to fill out the paperwork for me to get the virtual machine, I'm out of here. What I internally see is my developers actually do a lot of development, continuous development. We roll out ASAP, not that it's a big use, everybody seems to do it. But we have zero issues on infrastructure. I mean, we never talked about infrastructure, we never talked about is this going to be available, not available, how does disaster recovery work? That's what developers want. They want to just worry about continuous improvement, continuous development, does it work on mobile. Infrastructure should just handle it, right? We're able to do that internally, but I'm also telling people use Docker. I mean, it's a good one, use Containers. Use Amazon web services, use IBM. 'Cause you don't want to restrict-- >> The freedom of choice is really, >> The freedom of choice is very important. The developers are in charge. >> Bask: Exactly. >> We're pretty much on that whole. >> That's like invisible infrastructure is there to support what developers do. >> Invisible infrastructure is invisible only until it's broken. But your point is well taken, yeah. >> DevOps is great, but you still need five-nines ops, so operational focus we've seen this year, where I'm kind of smelling the theme this year is all about Dev, the operational side of cloud. So I got to ask you, we were in our, last week at a meeting at SiliconANGLE offices, we're talking about, oh, VMware. And I'm like, guys, it's all about the SDDC experience. They're like, what the hell's SDDC? Okay, it's a software defiant data center. But that was the theme a couple years ago, and then, someone else raised their hand, and what the hell does SDDC mean anyway? I want to ask you what does SDDC experience, we heard it on the keynote, actually mean? >> So, I think Ragoud defined it well as in order to react to the needs of today, you cannot hope to put in a hardware and hope that box runs. You need to free the intelligence away from the box. Let me give a practical example. You get attacks from security. Typically, their response is buy my box, put it in, and it'll take care of it. Humans cannot respond to the speed at which these attacks are happening, so you have to write algorithms, so that's software. So, the attacks to be done in software. The configuration has to be done in software. The whole idea is freeing the intelligence from all the boxes you have, and define a software layer on top of it because software will trump hardware. I mean, you need good hardware, let's not, I mean, things have to run some way. >> One experience is the guy gets to go to the beach because everything's automated? That's one experience, automated. >> That's one experience, yeah, I just think you get more work. I always say you should hire smart but lazy people because they will automate what they're doing. But what ends up happening is no good deed goes unpunished, so you just get more to do. But look, in my own case, I did every job in IT. I started in hardware, automated it, people said can you do software? Yeah, I can do it. Well, you automated this. Can you do DSEIO, can you do end-user computing? Can you run real estate, can you run shared services, can you do this? Your job becomes bigger. I don't think I'm going to sit on the beach, but you're doing more-- >> Yeah, but you're freed, essentially. I use that as a metaphor, but the idea of the beach is being excited about not being in the weeds fixing stuff and being, tired all the time. >> See, I get to do this, right? I talk to customers. The only reason I get to do this is because my infrastructure's working. If it's not working, I'm not mistaken, I have to go back and fix it. If you free up your time, then you go talk to your customers, your advisory panel. They've given me internet of things as another business unit to run. It's exciting, you're getting to the front office but I never forget it's because your back office is working. >> Stole a little bit about thunder by mentioning internet of things. Talking to customers and one of the things when I talk to customers is internet of things. What are some of the challenges you've had internally around internet of things and how has VMware solved some of those challenges. >> Yeah, so a lot of internet of things. It's coming out of hype cycle now into reality so a lot of talks where how do you control the home thermostat. Your Amazon Echo device and so and so, but what is happening now is buildings have to be automated and they have to get another 30% more efficiency. You only get 30% more efficiency. It's not just turning the light bulbs off and on when you want. You want to know what's your occupancy and do I really need this bigger building all the time. That requires intelligence. So if you have intelligence, you can really figure out do I need 400 buildings or do you need only 100 buildings. And the reason I picked something Monday as buildings is that's where a lot of people spend a lot of their money in actual buildings. For example, so the thing I tell from the IT standpoint is I think we have gone from kind of pilot stages to now you're going to get go to scale. When you get to scale, it's not fun anymore. It has to work all the time. It has to be secure. So I was talking to a bunch of CIOs a week ago and I told them how many of you have multi printers. Multi scanners and the multi devices. Everybody says that. So how many of you know that they send information on whether the toner is out to the manufacturer? Everybody puts their hands up. How many of you know that it's not sending the whole thing that you're standing over to the manufacturer? And people said, "Does it happen?" I said, I don't know. I don't know if it doesn't happen or it doesn't happen. >> John: It's a question. >> This is where you need to pay attention because your coffee machine is going to say you're out of coffee beans. Are they just sending that information or not? If you take it seriously, manufacturing. The folks actually work around IT sometimes because they don't want IT to slow it down. So if IT doesn't get involved internal things right now. Define the architecture and so on. You're opening a door for shadow IT. >> I want to just drill down that you mention IT going slow but that's exactly the point. Machine learning AI and software. There's been a huge acceleration of things like asking those kinds of questions and the infrastructure has been slowing. Certainly the network has, so for all the CXO out there. Whether it's CIO, chief data officer, chief compliant. There's a lot of CXO's out there. They're trying to figure it out. So what's you're advice to them and looking at the message of multi cloud and inter clouding and all that stuff. They got a job to do. At the end of the day they don't really care what a VMware is doing in the business. They want to know what their business is doing. How do they apply the stuff going on here at VMworld if you had to look at this VMworld this year and talk to the CXOs. What's in it for them? What's your thoughts? >> The first thing I say is have the curiosity. What happens in my job is I hear so many vaperware that you become skeptical. The problem with skeptical and being too pragmatic is your mind becomes close. So when you look at interrupt things you say, ah, is that really going to to happen. I got things to do. I can't worry about it. You can't have that. That's how you let the sass get out of your hand. That's how you come back later on the cloud. That's why BYD happened. Because we started to think Blackberry is good enough. You don't need any other phones. So you need to have this open mindset, so internal things, I tell people. >> John: Be opened. >> Be open. There's a tornado coming here and you better be involved. Now to be involved you have to take a solution for them. You can't go and say stop all projects. Let me look at architectural. Let me review them. So I tell them go with an architecture. So couple of things I tell them is there's so many gateways, so many sensors, you need to go with some ways to manage these gateways. Because like it or not they're coming to you and they're going to expect you to manage it. After the initial set up is done, they're going to say, "Hey, IT guy, you run it for me." You better be there. Go with an architect, so it's a private cloud, public cloud or it's a combination. How you manage Edge? So I tell people to get involved and there's couple of things that we're doing is manage your gateways with software. Go with the cloud in the box for IoTs, so people can give it to our manufacturing guy or your operations guy. You need to take something there. You need to be involved. >> So balancing the hopeful and the optimist. I'm hopeful that this may happen with the pragmatic. I got to make it make it run at scale, which is good. This is all about scale now with cloud. It kind of brings back the kind of looking back at history of IT which you would certainly be involved in. Lived personally is you see a sprawl of something. PCs, LANs whatever and then consolidation. Single throat to choke. Single pane of glass. These are the buzz words. We're seeing that now. We're seeing there's been a sprawl of APIs, a sprawl of microservices. A sprawl of mobile. Now are we getting to that phase where we got to manage it. >> Bask: Yeah. So you're hearing things like single, choke to throat, single pane of glass for management. What's your thoughts on that and this is really mind boggling to the customer because the CXOs are out there going. Hell, I still got to get top line revenue in these new apps for my banking app or my oil and gas application. So right now we're in a really interesting position. How do you describe that environment and what do you prescribe specifically to that CXO? >> It's a challenge or opportunity depending on how you look at it. It's very exciting to me that you have all these things exploring and there's so much more you can do in the business. So if you're an IT practitioner or CTO, this is a good time to be excited and add value to it. If you get too pragmatic, you're going to lose it or if you're a blocker. Say please hang on. Let me define the architecture for you. Let me do this for you. You're going to lose it because people are going to work around you. And my belief is the CIOs I meet right now are a lot more progressive. They realize the mistakes they made by being a little to pragmatic sometimes on technology. Not getting on it and they are jumping onboard. So the hope is I'm at a stage in my career where I want to make sure my community of CIOs do the right thing and I'm telling them this is coming. >> So you're seeing progressive mindset now-- >> I'm seeing very, very progressive minds. I see a ton more CIOs who are acting like the digital guys, pushing it and so on. The other thing to remember is, it's not always about technology. You can do the pilots but to make a change. You need people, process and technology and the CIOs are best equipped to do that. So the best for the company is to make sure you get the right CIOs. The people that are involved in the technology change start going around. >> So from a technology perspective. A lot of great news from, at least exciting news coming from Pat this morning. >> Yeah. Cloud services, cloud foundation. With your team internally, which product or what direction are you most excited to enable your team? >> Anything that makes my development go faster, I'm excited so that's why I'm interested in cloud foundation and cloud services, very much because I don't have to think about where to go and I can do it faster, good, right. The things I'm very excited about is you haven't seen the end user computing announcement which comes tomorrow or the day after. It's fantastic. I believe that enterprise mobility has not really not happened. I mean you've got what two to three million applications on the android store and the app has gone up to three million on the Apple store. But you go to most enterprises, they'll just give the email and calendar. >> John: Right. >> Email and calendar, we give access in 1999 with Blackberrys because for 17 years, You're still getting email and a calendar on your iPhone now instead of the Blackberry. That's not good progress. People haven't been created to look at mobilized enterprise platforms to develop. That's going to change. I think people are going to wake up and say how we make productive on the phone. I challenge my team and we come up the 50 yard at productivity applications. That should take a long time to develop and I can show sometime. When I showed the VCI, they also didn't want it. They wanted to go to one place to approve all the purchase orders. They don't want to go to SAP and Oracle and Sales Force and 40 different places to approve. So the mobile the revolution I think is starting to happen. In enterprise it's very, very light. You'll see that. I mean you don't want to be carrying necessarily these when you're traveling, right. >> I want to ask you, we have about a minute left and more of a personnel kind of conversation we're seeing in the industry. And one of the things that we're very passionate about SiliconANGLE is our new fellowship with the Crown Truth, our partner. We have this new fellowship called the Tech truth where we're funding fellowships in journalism. We're also going to be at the Anita Borg conflict in November for the third year. Where we're funding a special assignment on women in tech. >> Bask: Yeah. >> IT has been one of those areas where it's been mostly male dominated like developers. But yet IT isn't the old stack and rack anymore like it used to be. It's changing, shifting. How has the role of STEM and Women in Tech in science changed IT? Can you share some, I know you're involved with Anita Borg. >> Bask: Yeah. >> Thoughts on that because this is again, it's not just the IT anymore. IT is now at a global stance. Your thoughts on women in tech. >> Yeah, in the sense. We haven't done enough. I mean we are, most companies are talking and I guess compared to where we were. We make progress. It's not good enough. Having 20% in tech when you can go up to 50% is not good. The thing with STEM I say sometimes, we say we support science and sometimes we mislead women. I know a lot of people with science degrees, women with science degrees in biology or something else who are not getting employment like the coders. So we got to get through the language. Are you looking for coders? Are you looking for STEM? >> Coders. >> Right. >> Well now you have different analytics and you sort of. There's new stuff going on that's interesting. Right, I mean like coders. Not to say biology, doctors. >> I think it's really unfair if you tell people we let science possible and women actually go to classes. And they come out, the first question we ask is do you know Python? Do you know this? I'm not saying it's right or wrong that's what the industry is doing. >> John: Yeah. >> And you need to actually respect every science but if not, don't mislead people. So that's one. Silicon Valley has a problem with older gentlemen, older people. >> John: Agism. >> Agism, so that's an issue. There are not too many African Americans in Silicon Valley. So these are the elephants. I think the first steps is we haven't talk about these things. People are afraid to talk about it. That's not a good sign. You got to come back and put it, I mean, Anita Borg, I liked them because they're put the show on the table. Which is the first step and it's like an alcoholic. You are to say I'm basking in alcoholic. If you don't even say that. We're not solving it. >> I got to tell you. I was there last year. This will be our third year. It is 12,000 women and it's a great time. It's the great time-- >> Yeah, my daughter's is going. I wanted to go alone but we have to do more. So I don't want to sound down on the last minute. We've made definite progress but if you go to most Silicon Valley companies, we can't say we've done it. >> Well my wife and I just talked about men from Mars, that whole stick, but the role of IT is a lot. First there is a lot of women that are involved in tech but necessarily coding as you said, because a lot of roles in IT are changing. For instance, the data science role moves to data analyst which by the way is the F ford base. So that's kind of becoming an IT role. >> Right. Very interesting some of these jobs personas per say-- >> Yeah, yeah so last one I'll leave it with you is they could log the help desk. We used outsource the help desk. We used to treat it as not important whatever and then we find that a lot of knowledge workers are struggling for simple stuff. That can fit in my PC so that I can do my job. So we brought it back like how the Apple have genius bars. We have our own things inside but we recruited it from a organization call You're Up. And what they do is there are a lot of kids from under privileged families who don't get to finish high school. So why can't they work on help desk? Why do you need a degree? Why can't they go to a finishing school? I've worked with a lot of them. They're very passionate about what they do, very satisfying so we can talk for hours, 'cause I'm very passionate about this. We should do more with under privileged folks. We should do more with diversity in the true sense of the word. >> We'd love to have you. We're going to recruit you as a volunteer for our theCUBE team in Silicon Valley. We're doing a lot of coverage there. Certainly the fellowship has been great and we're going to be at Anita Borg Grace Hopper celebration in Houston. theCUBE will there. I'm John Furrier here with Keith Townsend. Here live at VMworld breaking it down sharing all the data. CIOs are really interested in the Cloud and certainly got the play book. Bask thanks so much for sharing your insight again. Great, great insight. Thanks for sharing the data. >> Thank you John for sharing-- >> We'll be right back with more live coverage from Las Vegas from VMworld 2012. This is SiliconANGLES theCUBE. Thanks for watching. We'll be right back. (uptempo techno music)