why from the mandalay bay convention center in las vegas it's the cues covering vmworld 2016 rock you buy vmware and its ecosystem sponsors we are here live in las vegas at mandalay bay in the hang space at vmworld 2016 this is the cube silicon angles flagship program where we go out to the events that extract the signal from noise i'm john for my host John Tory with tech reckoning our next guest is vegetable Shan who is the senior director of product management at HP storage HPE storage EP enterprise welcome back to the cube good to see you hey John good to see you you guys obviously a big partner with VMware in the ecosystem is the update men all flash all the time it's a flash crazy world now yeah if you want to talk about flash you know so to your earlier comment about vmware partnerships we work with them vmware community across many different areas right flash storage being one of them key one just because many of these virtualized environments today depend so heavily on the storage and flash makes it a very very attractive option for four people running virtualized environments so talk about where it's all fitting in with vmware for you guys after you you know the three par success story dave vellante always raves about the best knowledge is HP's ever done is a gift that keeps on giving as he always says now with the all-flash side of it how is it impacting the data storage data protection all the integrated stuff that the customers are looking for is to change the game a bit or what's just i think you know if I if I may there's the core of an all-flash offering right and if you brought down the core you can say it's about performance it's about affordability right and clearly when all flash started performance was the key then there was the affordability wave and then there's even now what you would call data services way it's right where the ability to do snapshots or quality of service so I would mark those as the core then you could ask other table stakes sorry those are those tables say say you go thank you table stakes yeah and then some other question is if we look outside the core because the core is pretty much understood today right there's still lots of things outside of the core so for example how do you protect the flash array right how do you do data protection in a bit of a flash because the considerations are different your performance is different your application characteristics at difference so what I do a data protection that's one aspect the other aspect is your infrastructure right your host connectivity you know your bottleneck used to be storage you'll eliminate that bottleneck where is the bottleneck now is it on your host pipes and then the third thing I'd say sort of outside the core would be you know there are new environments coming up containerized environments are an interesting place where you may develop on one environment and choose to deploy in another in these cloud native apps again how does a flash array operate in those kinds of environments so outside of the main court a lot very interesting areas to look at about HP enterprises and specifically don't want the flash the data protection in the host side connectivity not so much the storage or talk about the difference of those areas and now they all work together yeah so let's look at the data protection first right and so what are the attributes of data protection that matter in a flash environment first of all how often are you taking your data protection snaps for example are you using snapshots do you go direct to a backup device what is the latency impact in taking the backup what happens to your backup windows how do you restore quickly if you are snapping every hour on the hour do you go back with the full backup apply incrementals can you do synthetic folds so lots of different elements here and I think the point of view is you could take back up from a point of view I've got to back up my entire environment I vmc array of IBM arrays of HP arrays have a whole environment here to backup right or you can say hey in my flash environment how do I ensure it's optimized just like what veem did with you know virtualize backups right they took a very specific approach not the same thing can be said with data protection and flash do you see so put the story for primary storage yeah how do you distort change then as you're backing up to another flash device RP are you saying that look in the field so so that's interesting you say that because you have different choice points now right so i could have to prime arrays replicating each other that I could be backing up the secondary array to addy duplicating device that's one option the other options I could be having my primary array backing up to a deduplication device and replicating the deduplication level or the device level here or I could be replicating at the host level so I think there are different choice points question is how do you choose one versus the other and their trade offs right there sort of pros and cons um and and you want to be able to offer the customers that choice as well as the guidance as to when you would do one versus the other I love the way you're talking about generations we've gotten to this one this core system now of this generation of solid say yes but there's all these other technologies coming down the pipe we talk a lot about nvme and connectivity and we talk a lot about 3dx point and that's going to change everything where do those fit into the this framework that you that you've been talking about so you go back down into the core and look at performance right because there's got to be a performance next that's our industry it never stays the same right things always move and so the key to looking through those technologies that you asked about John is to look at sort of the n to n path of an i/o and it starts from an application it traverses some kind of fabric it gets to what I would call a controller fabric on the storage side and then from that control of fabric weather data is processed dee doop compress for example it gets written to back-end right and so you have to look at that end-to-end path so some of the technologies that we've been talking about talks about the different points here so nvme as a back-end connectivity for back-end media to the controllers that significantly cuts the lengthy down now but if you look at the latency envelope today the lion's share of the length C is not with the SAS protocol back end its with the media right and so if you did nvme you want to pair it up with storage class memory to get the benefit of that latency and then you want to ensure as well that you are talking say nvme over fabric to your host so that the protocol delays there go away and so again here you can see how envy me impacts choice of media choice of host connectivity so you get that end to niño optimization talk about what's next for flash performance specifically across the host fabric controller fabric and the media back-end fabric yeah so I think you have to then figure out now as in all emerging technologies there's probably going to be different choice points right so we look at a host to front end storage port connectivity that traditionally has been fibre channel we are seeing a rise of I skazhi and ethernet so the question is what does that do with when 25 Giggy 25k Ethan it comes to play right do we see a shift there a tip there maybe I don't know I think again you want to be able to offer choice points and if you can reduce that whole plane see using Ethernet technologies I think that's going to be a segment of the market that's gonna be very attracted to it we've been diving down deep into the technology stack I'm curious if you're seeing the buying center shift as we get to more integrated virtualization teams cloud teams do you have to talk about these technologies down to them and to understand how to buy storage so yeah so that's a very interesting point because there is a segment of the market that says hey I am looking at a vm level or an application level right and I and I don't want to associate all the different component metrics so I think that's the growing trend and hyper convergence for example is a perfect example of that where people want to look at the vm level or even at the application level and you know as we get more and more entrenched in two lines of businesses wanting to develop key competitive capabilities we need to be able to do what exactly what you just said what's the hpe story now that now that you're HPE storage is an important component of what you what you all are doing us I mean in relation to what John was asking what's the future what's the future looking like it you guys talking about in terms of your storage platform so the opportunity for us is to bring you know the collection of different technologies to bear on our customers and I and I view it as two things so job one is for us to be the best storage vet out there in the world if i took that storage myopic view of things right but we're not a small company where a large company and so that's a job to that says how do we the storage and the server and the networking and the compute play together right so we've got to bring the one plus one plus one equals five story and that means the opportunity HP can bring right whether it's things like composable infrastructure where you can say look i have one set of infrastructure for mission-critical applications one set for my cloud native applications why should i have two infrastructures for that i should have one infrastructure that allows me to compose the elements as I see fit for those environments some of them have different attributes I shouldn't have to have different sets of infrastructure to do both nothing to me that's a great opportunity we can bring to our customers about HP Enterprise now and storage give us the update was going on in the business office of the vmware ecosystem thin strategic you guys again like you mentioned been there for a very long time been a big big big partner of vmware but how's business in general at HP enterprise storage business what's the update what's the shiny new toy what's the where's the meat and Wiz what's going on you accepting yeah so so from an HP storage perspective clearly all flashes one of the rock stars there we're doing great with all flash good traction we're seeing a lot of interests around software-defined storage and hyper convergence and you know it's interesting on the software-defined side we've taken the same approach as we as well take on the primary side because we offer now what we call a common data fabric where you can deploy software either in a running on a proliant server or blade server you can deploy that same software as an appliance if that's how you want to consume it you can deploy it as part of a hyper converge packet we even offer it's part of our Helion OpenStack cloud distribution private cloud distribution so again bringing one technology one offering that can span multiple shape and form factors help make it simple for the customer otherwise they're going to do or deploy 13 different things so final question fish as a veteran of the tech business industry hace storage is your focus here at vml what are you taking back with you home as a key walk away item from vmworld share with the folks what you're learning what's that what's the vibe what's what's what are you going to take home with you as a walk away pretty much vehicles always been a great show right it's probably the one place where you know it's got such a rich ecosystem of vendors such a rich ecosystem some offering both complimentary and competitive so you know we have the stone we called frenemy right you're a friend in some places an enemy in others which is great because it just gives you places to collaborate and give new capability to your customers the vibes great at vmworld very rich ecosystem they're doing a lot of great technology innovations in cloud and software-defined we partner in Maine spaces we compete in some yeah but hey that's just the way the cookie crumbles and customers one choice fish thanks so much for sharing your inside the cube great to see you see at HP discover coming up in London in December yes right i think it's december or is that it's quite not much of a neighbor okay and yeah right yeah so big events european version of hpe discover which we just had an amazing set of interviews the cube was there could still get an angle website web site com or youtube com still gonna go check out the HP Enterprise discover videos tons of storage videos with all the big dogs on there thanks we spending the time now here I am world thank you if we are live at the mandalay bay in the hang space at vmworld 2016 john free with john schuer with tech reckoning we write back you're watching the cube

live from the mandalay bay convention center in las vegas it's the cues covering vmworld 2016 rock you buy vmware and its ecosystem sponsors welcome back everyone we're live here in las vegas for vmworld 2016 where the mandalay bay convention center in the hang space winding down day three of three days of wall-to-wall coverage been a great vmworld i got to say it's been one of the best ever i've been to in the past seven years with the cube and a lot of great announcements i'm john ford's costume in this week and the two sets coming to an end our next guest final guest is a GF it tells the senior vice president of product development for vmware cloud services business unit welcome to the q great to see you thanks here great to be here I'm glad you spent the time to come on board here and talk to us so they had a lot of things going on it's been a cloudy picture these days and VMware certainly with the cloud strategy but also clearly in pat's keynote on Monday opening day and certainly Smoove announcements answer from Sanjay putin and others you see that coalescing around what the cloud strategy is for VMware it's not to have their own public cloud but to really be that cross cloud connector correct architectural II like Lego blocks are all snapping together nsx viste and all this that's working together so take a minute to just talk about which products that you guys have other in this new cloud business unit so first of all thank you for the opportunity i run a business unit we form last year called cloud providers software business unit the only reason for my existence now is to make software for service providers VMware last year made the shift from being our cloud service for let ourselves we cloud air to being enabling other cloud providers to build VMware base clouds and the result of the world the great work will be doing is vmware called foundation vmware car foundation is that packaging of compute network storage virtualized to build any cloud and IBM is an example of a week other network partner who is building out a vmware base cloud using the american foundation so think about the cloud and network as our distribution channel for standing up and delivering VMware IP for building clouds through their cloud services the two things the roots of VMware software-based absolutely and partnering absolutely you gotta say hey you know what do we go all in on cloud get distracted or do we go back to our roots data center right and let the cloud game play out that you have some time for a lot of your customers aren't fully going to public loud and they are in different forms absolutely absolutely a cloud needed startup life so I'll give an example right I have 4,200 service providers in might be caught our network 119 countries 99.5 percent temp covered with partners who have their capital deployed using VMware technology with their unique managed services show me one other cloud that's built on any other technology that has a scale this reach these kinds of services that's really what we call it a network is all about it's a big chest move I want you to just I'm going to ask it again so we can get it on camera here describe what the vCloud air network is yes so vCloud air network is 4,200 service providers in 119 countries delivering VMware compatible cloud the epitome of that is someone who's delivering a complete cloud built on vmware cloud foundation but many of my partners have vSphere base clouds vSphere plus NSX and when they take all the components of software-defined data center integrate them that's we can wear my cloud foundation and IBM is an example who said we're all in we're going to give you a full data center in minutes using VMware cloud foundation early in October announced a similar partnership with OVH Oviatt can stand up a STD see on demand in 60 minutes think about it your data center in 60 minutes on a public cloud fully compatible watch what you're running on from this is huge so AJ I'm wondering if you can for audience kind of give us a little compared and contrasted Oh VMware's really dominant in the enterprise data center you're talking about a you know a nice software stack that goes in the service providers would be it with the azure stack that Microsoft's talking about bringing out next year you know there's some similarities absolutely competitive yeah but the beauty for me 15 million Williams about fifteen percent of them are going to move to the cloud what's the simplest way for a customer take a VMware we em and move it to a public cloud our customers want to get other data center business they don't want to get out of vmware they want a private cloud experience in a public cloud setting and get it on demand VMware offers that with the stack we offered with vmware cloud foundation great well you know one of the you know interesting dynamics to watch in this vmware ecosystem is kind of the changing role in the channel now the channel has been critically important to you know really the beginning days of vmware um you know service providers is who you're working at you talk about kind of that dynamic there's some part of the channel that really understands cloud some are turning in service writers some work with service providers what do you see happening what's happening inside out so you know the marketplace of solution providers of ours we used to sell software and set it up and on Prem a service provider with a cloud holster and I called sis Oh who's trying to provide consulting or managed services on third-party cloud that's all blurring right my focus at the bu is on those guys building clouds but also reselling third-party services so the market is moving between build a cloud high-margin tap into third-party cloud services and deliver a complete cloud experience to our customers CPS be you might be you is really focused on those 4,200 service providers delivering that on the go-to-market side were shifting the company from a perpetual company to a subscription sales company so everything I do is subscription-based what we haven't told the market is weak area network is a couple hundred million dollar subscription business for us we grew twenty five percent year-on-year ten percent quarter-on-quarter this is huge you know there's a mid-year that everything is going to public cloud the reality is everything is going to a VMware managed cloud delivered through a week later Network well if those service providers can attract the onboarding of new customers absolutely the question we just thought with module earlier is that you know I look at like the iPhone the iPhone came out a whole new generation of that came on the iphone that was a growth spurt so if you look at all net new companies going starting right they'll probably start native on the cloud correct will they have a role for VMware absolutely as they're going to probably want to interface via their cloud all right so let's take your typical enterprise how much percentage of the development is net new development how much percent of the budget goes to net new app development don't know less than ten percent in a typical organization unless your netflix or uber and that is your business that is your budget so anywhere from five to fifty traditional enterprise about ten traditional enterprise correct right so ninety percent of the workload what customers saying is I want to be out of the data center business I want to free up that cost so i can put more money for net new development when they do that they first want to move to a public cloud hopefully a vmware managed service private cloud and then they're saying let me add new application with containers cloud service etc so i don't think it's VMware losses and the public clouds win it's an extension this is why we introduced cross cloud services yeah we're expecting customers to use public mega clouds and these VMware clouds in a mix-and-match manner tell me an example so let's just say that Amazon doesn't want to play ball with you guys or Azure and they kind of get let me stay tuned on that one by the way I know that so Pat Pat's answer was we just you know sling api's around we'll do it that way so you could have a lightweight in to interface with API like get that so if they kind of don't play ball if they do hope you sneering that they might that's going to be important to have that use my view is the cloud is a new hardware we will make our software available on as many clouds as we make possible and where we don't our valuable move beyond compute to add value in the air security management right governance visibility we don't need them to open up the api's you already have api's that's the design center we need to add value on top VMware always has been a management company a delivery company for optimizing workloads the new hardware is a cloud vm will continue i'd value on top so aj one of the concerns i'd heard from the really the vmware partners on vCloud air was how do they differentiate how do they make money so did tell us with vCloud air network and cloud foundation you know what is the answer so what we're doing is we're leveling the playing field of VMware IP that we had in vCloud air and our on prem and making available to everyone every partner differentiates itself in a different way so when i go to a soft layer they're differentiating on their bare metal service their compliance their GTS service when you go to OVH they're providing a soft service developer cloud as well as they were to go after the mid-market very cost-effectively when you go to a skyworks they're doing on security and compliance every one of them has their unique IP and their managed services there is no one-size-fits-all they are differentiating and they're all growing all growing north of thirty percent which is a great you know the market is really evolving and people are finding that niche as they go after this business what I love about vmworld this year is the competitive strategy 3d chess game going on with the VMware exec it is plus the clarity absolutely other the back to the roots back to the roots of the roots on software back to the data center and looking at that future but in the cloud I think you got some time my opinion you have time to catch up to what how that hardware game plays out as you say but the question on the software you mentioned your job is to is to do software right the role of the developers will be the canary in the coal mine yes how do you guys look at the developer community because if they all flock dude as Pat calls amazon the developer cloud right how are you guys going to engage the developer community has that fit of your plans oh uh Greg I just got my IBM friend sent me their forest a report for IBM was rated as the number one developer car for enterprise here's an example of bluemix cognitive services all being pulled in running on a vmware cloud our strength is they're taking the best of breed ecosystem making sure that the workload then lands on a vmware cloud I don't think what a developer company amex Oracle I know what it takes to build a java community and we're not going to get there on our own and working with Cabernet DS for the container imposter manager that's the strategy we support those working with Cloud Foundry I'm the treasurer of our foundry it's about enabling the ecosystem we hide Dirk as an open source leader it's about embracing the open source community bringing the communities to VMware was just trying to create our own so that's hardcore for you the national strategy absolutely the case of central of our strategy we've been Switzerland we won the game we continue wanted to be Switzerland and attract the marketplace that's awesome and one final question your big takeaway as you leave vm world this year all the conversations you talk to customers here's a very customer centric very impressed with the customers doing a lot of talking here and seeing like people going to relieve they can see the clarity and the strategy and kind of how the products are fitting together and certainly the integration I was very strong this year what's your takeaway for for you to go back to the ranch and talk to your your team and your colleagues I think the excitement is really the customer momentum we have the number of conversations were having with customers their plans to start adopting it I had an IBM rep called me and saying who's the VMware rep I can call because all the stuff i saw i want to bring vmware into my accounts so a channel is pulling for us yeah we're in a great position I'm really excited for the name it brings back to either VMware that was that independent absolutely no software work with everyone the hardware vendors brought us even in the weekend were optimizing their the infrastructure we believe the similarly the service providers the system integrators they need an a VMware landing pad and when Herod had a great line on the cube yesterday when I asked you know what is take on vmware is and we were riffing he was thinking out loud and he said something pretty profound he said vmware is always in their DNA has always been to solve complex problems make them simplify and create an abstraction layer this audience of this cloud networks interesting you're creating a cloud abstraction layer in the power of numbers I love numbers and that is a competitive move against the the Amazon Web Services and Azure tell me 119 countries who has data centers there I do all right without a single penny out of my pocket okay cloud is the new hardware according to AJ AJ thank you for spending time wrapping up vmworld for us this year thank you thanks for being here again and we'll talk more about cloud foundry as we'd love cloud foundry so that's the cube I'm John Force too many men wrapping up vmworld day three thanks for watching all the videos are up on youtube.com slash SiliconANGLE of course code SiliconANGLE com so going on TV and Wikibon calm for all the best research thanks for watching our coverage of vmworld 2016

why from the mandalay bay convention center in las vegas it's the kue covering vmworld 2016 brought to you by vmware and its ecosystem sponsors now here's your host John furrier hey welcome back everyone we are here live in Las Vegas at the mandalay bay convention center in the hang space at vmworld 2016 i'm john fervid SiliconANGLE is our flagship program the cube where we go out to the events and extract the signal it annoys this is our seventh year covering vmworld and every year it gets bigger and better the cube and the guests on the content and I'm here with the person who's made it happen from day one Robyn Matlock was the CMO of VMware first of all congratulations on a great event and thank you for supporting the cube for seven years it's been fantastic and it gets better every year you well I'm thrilled to be here and you know a huge fan of the cube you're an integral part of the program so here we go again John we're ingesting all the day that we're analyzing and we're providing great great videos a lot of volume but what an interesting thing I want to get your take on because you have written the vmworld bus for a very long time don't remind me it's changed and grown and one of the conversations we've had all week is what I've been calling ecosystem two point oh what is the ecosystem going to evolve into for vmware and vm world and it's been interesting and so on to get your take on and one of the things that it was striking was what pat kelsey has said to me yesterday on the cube interview was VMware's not only if not a prop one product company anymore it has grown to be a multiple set of products on technologies which has created a diverse and growing community absolutely can you add some color to that because this has been it's always been the community is very strong in VMware vmworld and VMware so but it's evolving that's honestly shifting and changing it in bad way it's just growing and morphing can you comment on there I think it's a really interesting topic it's in it's a rich topic because it as VMware's business is changing first of all our value about the community has never changed I mean we really value an ecosystem our customers wanted expect that we work and play really well with the variety of technologies that are in their but of course is our business in portfolio has grown and expanded the nature of the types of companies that are engaged in and around as shifts and changes to and if it doesn't then we're probably all going to have some issues down the road so I think it's a lot like driven from customers what do they want all of us vendors to do to work together so their life is easier yeah and the other thing David's lawyer is the CTO Wikibon is very technical comment that it's the best vmworld ever from a statement of direction standpoints very clear that the data center role that vmware has and this intercloud in which we call Pat calls it cross cloud is a real rich area for innovation and growth oh I think we're just on the cusp of the potential of that so you heard us talk about the cross cloud architecture and we broke that down into a few things like the VMware cloud foundation that's recension the software-defined data center stack all with lifecycle management that you can consume on-premise and off premises the IBM partnership the opportunity for the V clutter network partners I mean there's just so many the size O's are involved in this it's just really it's almost like a whole economy that can integrate into this broader you know offering I guess with all that in mind how are you managing the logistics because you know it's pretty obvious at vmworld is back in Vegas Moscone is pretty much under construction for the next few years you're going to be here for a couple more years yes here for a couple more you learn and it's just growth in this community what's how do you do that what's the key keys to that you know I think first of all it's about really making sure you're connecting with your customers and your partners and it's about experiences right it's making sure that you're getting them the rich content this is a technical conference so we're going to be measured by did we showcase and engage our audience with the right kind of technical information give them hands-on access to the things that they want to learn and further their careers and you know I always use that it's like we've got to stay close to our customers so any feedback that you've heard positive areas to work on what are your thoughts and as you look back now it's day three looking out over the past few days and we can I say one of the things I'm most proud of and I am seeing it in the Twittersphere is the fact that we had a lot of customers do the talking customers do the showing there were over a hundred summer's here this week on panels in labs in keynotes on videos all talking about their experiences and this group of people they want to hear from their colleagues in their peers so I think customers really helped us this time tell our story and help people understand what does this mean for their business so customers coming on today on the cube so you continue to watch if you're out there I got to ask you the question because one of the things I every every cube event I always have my little puzzle pieces I want to try to figure out how know where the puzzle corners are and I've been asking all the VMware executives kind of hidden question but it's basically this what does VMware scan for and I've been kind of getting a couple different answers so you're obviously CMO so you're going to be right on message I want to get your thoughts on that but before your answer the best answer came from a former VMware employee Steve arid who is the CTO now he's a venture capitalist and just off the cuff II just said VMware likes to make complexity go away they want to simplify complexity create abstraction layers and that's essentially the theme of the show here so it's that how do you guys talk about that because the customers want to see the direction of VMware what is the official messaging what is is that is he on targeting me sees that you kind of made it comment like it's in the DNA of VMware I would agree that you know simplifying complexity is in our DNA I think it's a little bit hard to say that today's IT world though is simple III think we all have a long journey to really make IT simple I think we're about unleashing the innovation from IT and in order to do that you have to simplify the complicated so they can focus on the strategic right but I would say and our core what we're really about is how do we unleash that potential and remove obstacles simplify complexity to ensure they can contribute to their businesses with the most impact at the accelerated pace as possible that's why i think pats across cloud is interesting because that is certainly probably one of the most complex things to do absolutely to the cross cloud and only getting more complicated i think that's what we're seeing now you know fast for the cloud era is maturing but what we're finding now is businesses have many clouds they have SAS applications they have their private cloud they have multiple public clouds they have managed cloud services and we know we've been down this route before in the old compute server world managing these silos can become extremely complicated so I think right now we're already thinking about how do we drive this and simplify this other comment from our analyst kick off this morning and breaking down kind of the vmworld ecosystem and VMware and I like to get your thoughts on kind of the internal VMware conversation because I know and obviously the dell transaction with emc is going to be on the 7th so that's public now so but VMware it seems that David floyer said is unleashed and Michael Dell's making a commitment to VMware that's pretty sincere about being independent and partnering well I'm kind of seemed like EMC kind of had that invisible hand is invited to this David Floria said this but share some of the VMware because this is in the DNA is to be independent right you're right it is definitely in our culture and i think michael has been extremely consistent I've been with him in many meetings both public private and he is never wavered from his commitment to support VMware's independence to support our ecosystem and to really open up opportunities for us to grow at our full potential and I we are partnered with dell for a decade right this is not new to us and we have a great relationship with them regardless of this acquisition I think the opportunities and the doors are going to open even further there's a lot more we can do together but I really feel we've got a really good balance he knows that our ecosystem is the core success factor for us so ecosystem is a big big part of the success so in your definition what is the ecosystem two point oh I think the ecosystem involves a variety of things first of all there's emerging technologies their service providers their sizes there's the telcos there's ISVs there's the SAS providers there's the two-tier distribution the channel partners the people who touch the customers there's a consultants I mean I think it's just all evolving with us kind of in one big tornado you know I think it's all those things to get a lot of growth it's not a moving parts no and how about containers that so that you know a whole nother dimension right do and I was saying the container buzz was talking to Jerry Chen last night and say last year's all about containers only one session the cloud native session yesterday they did talk about it but it didn't dominate the show like it did last year the cross cloud really kinda was great and I'll see the end user computing stuff seems really compelling yeah I think things kind of ebb and flow it depends what's really new and so you know there's kind of different focuses each year I so give us the internal or our marketing philosophy now that you have stuff clicking together now with the product side you see the NSX with vsphere playing nicely it's a lot of stuff d-san is exploding the product the products are clicking absolutely oh there's a great chair that pad announced okay with it we'll do that later but how does that get marketed no product teams going to do it yes because it's interesting there's standalone products but also work well integrated yeah you know we're at this very interesting chasm and i would say we're kind of in our teenage years right now in my analogy and that when these products let's take virtual San or NSX when they're first coming out the door they need to be incubated and they need almost like startup attention and as marketers we wanted to give them that really dedicated focus but it's time for us now to grow into our 20s and what we need to do is to be more solution oriented and we need to be more industry oriented look at verticals and help our customers associate what's the impact in my world whether it's retail or its government or its healthcare so you'll see marketing at VMware shit more vertical solutions and verticals yes and by line of business kind of thing going on more mature more businesses I think it's really thing of the day our customers don't think about our line of businesses they think about what business problems are they trying to solve and they you know whatever business units we have is irrelevant to them I've taught in some of the VCS last night at that light speed party and a lot of Silicon Valley DC's were there and I said you know there's no Gartner Magic Quadrant for this horizontal solution set so you know usually have the magic quadrant you know the leadership's by categories but now you have this new kind of disruptive solution set which could be a vsphere here there and kind of stuff kind of cobble together integrated there's no magic quadrant for that so it's really hard for customers to find out the playbook right and we have to make that really simple for customers i also think that's the potential that vmware has which maybe is unique to a point product startup that they have one product we can put these things together for even more impact more value and a more seamless experience because i think that's key it's got to come together as an experience I no question Robin what are you going to take away from vmworld this year we're gonna take back to the ranch what are going to digest what are you going to share with your with your team and your colleagues that you've learned from this show you know I think we're really we're executing I think we've created a great experience I think we've attracted the right kinds of attendees you know this is just the first of many because we roll this program into barcelona in six weeks then we roll the following week all over asia i'm off to mumbai vented beijing we're just going to roll through Asia through December so the key is we're onto this right the content is right the cross cloud architecture is really resonating the cloud foundation it makes sense workspace one we just got to stay the course help make this stuff really simple and clear for our customers and partners that's great stuff it does make a lot of sense in and it's got clarity and you can see the 20 mile stare the straight and narrow and congratulations on a great vmworld John thank you so much appreciate it Robin Matlock CMO here inside the cube live at the Hang space the mandalay bay convention for vmworld 2016 you watching the cube

>> live from the Mandalay Bay Convention Center in Las Vegas. It's the King covering via World 2016 brought to you by IBM Wear and its ecosystem sponsors. Now here's your host stew minimum. Welcome back to the Cube here at VM World 2016. Happy to welcome back to the PO program. Christos Caramel analysts. Who's the fellow in CTO of the V A more storage and availability business unit. Thank you for joining us again. >> About to be buck >> Storage is a big focus here. Big announcements around. Not only the sand, but everything happened in the storage room. Tell us what you've been working on the last year. >> Yeah, quite a few things. As you know, Miss Olsen has become practically mainstream product now, especially since we saved the very same 6.2 back in March 2016 with a number of new enterprise grade features for space efficiency. New availability. Fisher's with the razor calls right 56 The product is really taking off. Taking off, especially in old flask configurations, is becoming the predominant model that our customers are using. So ultimately, of course, customers buy a new product like this on and hyper converts product because of the operational efficiencies and brings to their data centers. The way I present this is you have the personal efficiency off public clouds into your private data center now. But this is for me is thus the stepping stone for even a longer term term, bolder vision will have around the stores, the data management. So, the last several months now, I have been working on a new range of projects. Main theme. There is moving up the stock from stores and the physical infrastructure implications. It has two data management on starting with data protection on overall and managing the life cycle of your data for protection, for disaster recovery, for archival, so that you can have tools to be able to effectively and efficiently discover your data. Mine your data. Use them by new applications, including cloud native applications and a dent even know that this may sound a little controversial coming from Vienna, where sitio even moving your data to public clouds and allow application mobility freely between private public clouds. >> Yeah, it's really interesting and wonder if you can packed out a little bit for us, Veum, where, of course, really dominant, the Enterprise Data Center. We're trying to understand where Veum, where fits into the public cloud on how you cut both support the existing ecosystem and move forward. So, you know, it's interesting off >> course. There are silences. There are many open questions. I do not claim that we have the answers to everything. Everything. But you do see that we put a lot of emphasis on that because it is obvious that the I T world is evolving. Our own customers are gradually slowly, but certainly there start incorporating public clouds into the bigger I T organizations that have. So our goal is to start delivering value to our customers based on clouds, starting with what they have today into the data centers. Let me give you a specific example in the case of Virtual San, who have some really cool tools for Mona's in your infrastructure in a holistic way, computer networking and now stores a SZ part of that you have ah solutions and tools that allow the customer to monitor constantly there covered infrastructure, the configuration of that. The class is the network servers controller's down to individual devices, and we provide a lot of data to the customers, not only for the health but also for the performance off the off the infrastructure data to the customer can today used to perform root cause analysis of potential issues to decide how to optimize there. Infrastructure in the world clothes. But that is actually pretty no sophisticated house. You cannot expect a lot 500 thousands 1000 customers. Of'em were to be ableto do this kind of sophisticate analysis. So what we're working on right now is a set off analytics tools that do all this data Kranz ink and analysis a root cause analysis on DDE evaluation of the infrastructure on because of the customer instead of providing data now we're providing answers and suggestions now way want to be able to deliver those analytics in a very rapid cadence. So what we do is we develop all those things in via Morse. Cloud will collect data from the customer side through telemetry, the emir's phone home product, and we get off the data up in our club. We crunch the data on because of the customer, and we use really sophisticated methods that will be evolving over time and eventually will be delivering feedback and suggestions at a kind level to the customer that can be actionable. For example, weekend point out that certain firm were the 1st 1 off certain controllers, and the infrastructure is falling behind. I may have problems or point out to a certain SS thes uh, a problem getting close to the end off life. For more sophisticated thing. Starts us reconfigure your application with a different policy for data distribution to achieve better performers. The interesting thing is that going to be, you're going to be combining data from must multiple sites, multiple customers to be able to do this holistic analytics and say, You know what? Based on trance, I see. Another customer says. It says You also do that. Now they're really coursing out of this is that the customer does not have to go and use yet another portal on a public cloud to take advantage of that. But they in fact, we send all that feedback through the this fear you. I own premise to the customers, so really cool. So you have the best of both wars. There are big development off analytics using actually behind the senses a really complex cloud native application with the existing tools that the customers are usedto in on premise. So this is just one example >> crystals. Could you give us a little bit of insight as the guiding light for your development process? Do you use that kind of core customers that you're pulling in and working in? Is it a mandate from above that says, you know, Hey, we need to build a more robust and move up the stack. You know, what are some of the pieces that lead to the development that you >> know? This is a very interesting point. I must start by stating that vehement has always bean admitting they're driven company. Um, and look for products were, you know, ideas that were, you know, Martin by engineers, while others thought that was not your not even visible, of course, Mutualization in several stages. But features like the Muslim or stores of emotion Oreo even, you know, ideas kind of ritual, son, right. Claiming that I could do very effectively rate six in software was something that was not really, you know, appreciated in the industrial area stages. So a lot of the innovation is a grassroots innovation. We have our engineers exposed directly to customers customer problems off course. They also understand what is happening in the industry. The trends, whether that is encounter as its case these days with a new generation off first or its cover that is emerging, or where that that is a trend. Samoan customers, for example, using public clouds in certain ways where that is for doing testing dead or archiving their data way. Observe those things and then through a grassroots. Therefore, all this get amalgamated into some concrete ideas. I'm not saying that all those ideas result into products, but we definitely have a very open mind in letting engineers experiment and prove sometimes common sense to be wrong. So this is the process thesis. How Virtual Son started were a couple of us went to our CEO back then for marriage and suggested we do this drastic thing that is called no softer stores on that you can run the soft store of stock in software on the same servers that we visualize, and we're under V. M. So this is really how the process has always been working and this is still the case and we're very proud of this culture. This is one way we're actually tracking opens enduring talent in the competent. >> Yeah, I was loved digging into some of the innovation processes. Had a good chat with Steve Harris, former CEO of GM, where if I remember right? One of the thing processes user called flings, whereas you can actually get visibility from the outside it to some of those kind of trials and things that are going on that aren't yet fully supported yet. >> Absolutely. And that is still the case. Probably the best known fling these days is the HTML five days they you I for your sex, which is used extensively, both internally in the humor where it actually started as a tool for that purpose, but now wild by the community. And that Flynn gave us a lot off insides and how to evolve our mainstream user interface for for this fear, proper notes, Astoria sex. So this is exactly this alternative process that leads us to test the water and feel much more confident when we make bigger and investments in in Ireland, >> right architecturally via Moore has been around for quite a while now. I had a good talk with such a Pagani Who? I m f s earlier today and we were talking about, you know, new applications and new architectures when vms foot fest was built. You know, nobody's thinking about containers. You know, they weren't thinking about applications like duper some of these more cloud native applications. How do you take into consideration where things were going? How did these fit into, you know, kind of traditional VM wear V sphere. You know what things need to change? How do you look at kind of the code basis? >> Right. So first of all of'em affairs, I must say it's probably the most mature and most widely adopted class. The file system in the industry for over 10 years now has been used to visualize enterprise grade store, its stores, alien networks, and it was going to have a role for many years to come. But on the other hand, we all are technologists, and we understand that the product is designed with certain assumptions and constraints, and the EM affairs was designed back in the meat to thousands toe address the requirements for ritual izing lungs, and you know the traditional volumes that you'd be consuming from a disgrace. Now the world is changing, right. We have a whole new generation off solid state devices for stores. Servers on softer on commodity servers with Commodity stores Devices is becoming as your own reports that have been indicating the predominant no mortal of delivering stores in there in the enterprise that the sender and off course in even public clouds with copper scale storage. So what? The requirements there? Some things are changing. You need the store. Its plot from that can really take out the violence of the very low latency is off those devices. I was at Intel Developer for form a couple of weeks ago, and their intel announced for first time performance numbers for the new generation off Envy Me devices obtained that include the three D Chris Point technology under the covers. Latents is at around 10 microseconds, right and Iost per second scruples that are in the several kinds of thousands, if not millions so completely young game changer. And that is not the only company that is coming up with this technology. So you need to invest now in new technologies that can take the can harness the capabilities of this new devices, lightweights protocols like Envy me. In fact, I see envy me as the protocol is not just a protocol to accident device, but I can see a future for that off. Replacing Scott Z into the software start soon, and this is committing specific days. But soon will be sipping a vision off this fear that comes with ritual and via me in the guest visual ization of envy Me. So you can see here where we're heading and envy me, becoming a predominant protocol for the transport and for brutalizing stores. >> Interesting. And we've got a long history of things that start on. The guests Usually then takes a lot of engineering work to get them down to the hyper visor themselves. So, you know, without having to give away too much, is that we see that kind of progression sometime in the future. For some of these new memory, architectures >> certainly certainly are the sex store stock, and this is the stuff that is used by Veum infest by ritual son. It has been designed again for another era off stores. Now we are regarding a lot of these things there, and I cannot disclose too much detail, obviously, but I can tell that it's going to be a very different software stock. Much leaner, much more optimized for local, very fast devices and ultimately envying me is going to be a key technology in this new store stock. >> All right, so just last follow up on that topic. I think about kind of a new memory architectures. What's going on? As of September 7th, Del will acquire TMC. There's the relationship between A. M, C and V M wear. So could we expect some of these new memory technologies impacting things to be something that you'll work even closer with a deli emcee? And >> that is definitely case irrespective off the deal between the emcee and Dell, which, as you said, it's going to be closing. It seems pretty soon. From what I read in the newspapers, >> Michael confirmed, it's finally official. Some of the pathetic ALS. >> Yes, we're moving ahead with this new technologists, and we're working closely with all the partners micro intel and many of the other car vendors that are introducing such technologies to incorporate them into our systems into our software, for example, I see great opportunities for this very fast Cayenne dude owns but still quite expensive technologies to be used, for example, to store meta data. Things like duplication. Costabile is those kind off meta data that have an impact through because of my own verification to the performance that is perceived by the application by moving meta data like that into those tears are going to make a great difference in terms of performance consistent, late and see predictability of the day for the application. Now, thanks to the relations with del Auntie em. See, I can hope that some of these technologies will find their way into several platforms sooner than later. So all of us and our customers would benefit from that. >> All right? What? Christos really appreciate getting the update from you. Lots happening on the storage world. We're kind of talking about. One of my things coming into this this'll week was, if we can really simplify storage, we might actually have a storage. This world doesn't mean it reduces the value of storage or the importance of it, but gonna help the users to be able to move beyond that, we'll be back with lots more coverage here from the emerald 2016. You're watching the Cube. Glad to be here. Whatever. Apply from the Mandalay Bay Convention Center in Las Vegas. It's the King covering via World 2016 brought to you by IBM Wear and its ecosystem sponsors. Now here's your host stew minimum. Welcome back to the Cube here at VM World 2016. Happy to welcome back to the PO program. Christos Caramel analysts. Who's the fellow in CTO of the V A more storage and availability business unit. Thank you for joining us again. >> Glad to be back.

>> Narrator: 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. Now, here are your hosts, John Furrier and Stu Miniman. >> Hello, welcome back everyone. We're live here at VMworld 2016 in Las Vegas, the Mandalay Bay Convention Center. We're actually in the hang space, broadcast booth It's theCube's SilliconANGLE's flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier and my co-host Stu Meneman, our next guest, Pat Gelsinger, CEO of VMware. Great to see you again. Every VMworld, every year that we've done the VMworld, you've been on theCube. >> Well, it's always a pleasure. You guys are fun. You do your homework. I enjoy our time together, and I can't imagine VMworld without theCube. Look, we are really impressed with the vision you've laid out, because the number one question we get asked on theCube and in backchannels like CrowdChat and Twitter, is VMware ecosystem is looking for the straight and narrow, they want that, they want to see the path, the 90-mile stair if you will, so they can actually accelerate their business. >> Pat: Yeah. >> Can you laid that out, and just quickly review what your key points were for the folks that didn't capture the full keynote. >> Well, clearly we said, boy, we gave clear data with regard to what the cloud market looks like, what it's going to look like today, 2021, 2030, crossover points, and really the key summary of that is it's a complex world. It's going to be a multi-cloud environment for our customers, and they want to know, how do I not only build hybrid clouds, private clouds, and how do I take advantage of public clouds? And we gave a comprehensive view of what that looks like, the cross-cloud architecture. Here's a way that we can bring all cloud embodiments into a common framework. Cross-cloud architecture, two big components are part of it, build your private cloud, enable that as a service, that's a cloud foundation, bring it together, vSAN, vSphere, NSX, along with new lifecycle management capabilities, making that easy, do it as a service with IBM and our partnership that we announced there, but we expect many more of those with other vCloud Air Network partners, and then the cool new Cross-Cloud Services. Make those available, embrace any cloud, and then give our enterprise customers the tools to manage in this cross-cloud or multi-cloud environment. >> John: What's the catalyst for this announcement? Was it an epiphany, was it more that the market was ready for it? Because now, multi-cloud, but how you talk about it, any device anywhere, that's been the previous message. But now it catalyzes around this positioning. What was the moment of truth where you said okay, this is, we're going with this. It doesn't seem like you're betting the ranch on this, but it is betting the ranch on this in a way, because this is, as you said, the future, and it's going to be mostly your journey. So why did it come together? >> A couple of things happened. If you remember last year's VMworld, we did this little NSX demo where it says, we can connect NSX onto the cloud, you remember that? >> Yeah. >> Literally, Guido comes into Raghu and I, about two weeks before VMworld last night, and he says "we've got to work it. And can I demo it in my session?" Right, at the thing. Raghu looked at each other and he says, "Okay, let's do it. Let's see how people respond to it." So that was one catalyst. The second catalyst, we had a couple of customer meetings where the customer said to us, and he says, "This is my best. I'm doing this on Amazon, I'm exploring Azure over here, I've got a boatload of VMware, I'm doing this many- help me solve these problems. So it was clearly customer feedback, and there's a vibrant response we had from this little last-minute demo that we did at last year's VMworld, and sort of out of that, we said, "Let's really take this seriously. Let's go dive deeply into it." And as Guido said in the keynote, we've now talked to about a couple hundred customers and a huge response, and some, you know, usually when you do a cool new product, people say let me try that. In this case, the response we've gotten is, I need that now. I mean, it's a very definitive response. These are the kind of things I need to manage today's problems, so I guess Guido's already late in getting it done, so I've got to crack the whip harder and get this in the market. >> So it's not so much retooling, though we did talk about yesterday at the things, you're kind of mid-flight but you're adjusting to the market. >> Absolutely. Absolutely. And clearly our cloud journey's been one where, you know, if you go back and I gave some of the data 2011, no one expected the public cloud to be where it was, where it is today. I mean, it clearly accelerated faster, some of the ease of use, efficiency characteristics, hey, this is a capability that nobody quite expected to grow this rapidly. And it's now permeated Enterprise customers who are starting to take advantage of it. But they don't have the tools to really take advantage of it. >> So some key leads we were reading yesterday in your keynote, you know we always like to read between the lines, kind of like the messaging inside of it. >> Sometimes you get it right, sometimes, you know. >> We get it right most of the time. Your comment, your sit-down with Michael Dell was really interesting, okay. Because this is an open ecosystem play. His first point was about open ecosystem. You've been banging on this from day one since you've been CEO of VMware, since the throw of the first pitch of the NetApp event that got viral with that jersey on. >> I went to the NetApp customer partner event last night, every year I'm there as well. Just like theCube, I go to the NetApp event. >> He could say that you have been hardcore about open ecosystem from day one, and with the merger now set for the 7th, the merger that you can transact on the 7th, you still want to be independent. The open ecosystem is super important to you, and Michael, I heard it right from his mouth. Share some color on why and how that's going to evolve. Will everyone have untempered access to VMware, will all partners have the same level of access and visibility? >> The simple answer is yes. We're going to continue exactly on that strategy as we go forward. And clearly I'm going to do more with Michael and the Dell team, you know, as we see that going forward. But it's incumbent upon us, even as we do more with Dell, that we lean in more aggressively to our HP, to our Lenovo, to our Fujitsu, and our other partners as well. So we see that as a critical part. And I say the VMware ecosystem is evolving. Five years ago, would you have had the cadre of security and networking vendors? No. Would you have expected to have all the system integrators? No. I mean, we're clearly expanding. Service provider partners, our ecosystem has broadened our product portfolio, it's becoming a broader statement as well. So that's a commitment. We're going to remain a platform play, an ecosystem play, and obviously, with Michael's comments onstage, he's cheering us on. He's saying, I'm going to grow my business with VMware faster, and I hope all of the other ecosystem partners grow faster than I do. >> Is this going to be a persona change? Because now, if you look at VMware's ecosystem, which has been robust, there's some good salivation going on, there's a change-up as the ecosystem shifts. vCenter was once the big thing, now you've got NSX and all this other stuff in the cloud. Is there a persona changeover in who the target customers are in the ecosystem? >> Well, clearly, I mean, the customer's the same. It remains sort of that IT buyer, which increasingly, as I talked about in the keynote, is becoming a business buyer, but it's that core IT Enterprise customer. We're not a consumer company, we're not an app company, we're an infrastructure company and we're going to satisfy that broadly across the industry. >> John: Yeah. >> But in that context, I mean, look at it. You know, over here we have the Internet of Things. Wow, you know, we have the NFV zone. We're having a broader and broader set of who is our ecosystem, and that's absolutely going to continue as we go forward because solutions to things that we do are permeating more and more of the entire business landscape as we go forward. It's a really fun time. You know, even though I like to joke with Michael that he was younger when I first met him. And against that, you know, he and I have both been at this for over three decades. But in many regards, it feels like we're just getting started. It really is a fun period. >> So Pat, the management suite has been a challenge for the industry in general. VMware has, as John said, strong presence with vCenter. As you start reaching out to some of these environments, why does VMware kind of have the right to think that it's going to be at the center of this discussion for some of your customers, especially as they talk about like Microsoft, they've got strong pieces there. Big partners like Intel, Amazon in the play, so why VMware? >> Well, I think there's a couple of aspects to it. And, who is better to be a neutral player, to enable people to have cloud freedom? Right? If you just start with that question, and we'd say hey, we enable people to have hardware freedom. It's in our ethos to have this platform play, to have a broader ecosystem, open APIs, it's what we do. And in the cloud world, hmm, Amazon, okay, they have a legitimate role. But are they going to be the best ones to do private and public, or enable Azure or AliCloud? I think we have a very legitimate position there to say, hey, we're a neutral player, we can be cross-player, cross-industry. Secondly, the technology assets that we have, what we demonstrated on stage yesterday with Guido, think if you didn't have NSX and vRealize and some of the storage assets? That was many, many years of engineering and we pulled all of those pieces together for a comprehensive demonstration of all of those pieces in nine months. That's because we have a rich set of technologies that we can bring to this Cross-Cloud Services. >> So VMware's got a pretty sophisticated stack there, lots of customer options. When we look at the cloud native states, things change a lot. You've got a lot of open source in there, most customers don't buy shrink-wrapped software, they take a lot of components, they tend to put some things together. There's been a little open source, but we've talked for many years about, open source isn't one of the primary revenue drivers for VMware. It's not kind of core to the business. Is that changing? How do you keep making money in the open source world? How do you compete? >> I think there's two different aspects to that that I'd like to, you know, one is, essentially our strategy is, enable these new environments on the VMware franchise. So what's my revenue model? I'm going to keep selling vSphere, I'm going to sell NSX, I'm going to sell vSAN, our management tools, et cetera, even as I add more open source components into those environments. And hey, I'm pretty happy. What's the price point of it going to be? It's free, if you're an Enterprise Plus customer. We're just adding it as another set of capabilities on top of it. It's all open source bits, you've, you know, Stu, have you downloaded it yet off GitHub? >> I have not. >> Pat: You have not? I'm disappointed to hear that. Get on it, right? Get back to work. >> You've got to code tonight, Stu. No party. >> Right? You know. Too much partying for you, Stu. But it's going to be available. We're engaging this open source community, in an open source way, but we're adding our industry rock-hard components, and that's important. Because enterprises are going to start deploying containerized applications. And then you're going to start asking questions. Are they secured? Are they managed? Do you have, like it said onstage, are they monitored? How are you going to network them? And all of the sudden, it's not going to be some lightweight stateless application, you're going to start saying, this is a better way to do stateful applications. What about resilience for that? Get back to the rock-hard questions that infrastructure guys know how to handle. So this is a way to saying yes to those problems but also saying yes to these cool new developer things as well. And in our sense, you know, we think we're well-positioned to go do it, but hey, some of it may be open source projects, and hey, we're showing that we're going to support those, we're going to deliver those, we're going to embrace those as well. So I'm sure that we hired Dirk Hohndel, a longtime friend. I hired him before at Intel, so now we brought him over here to VMware. Because we clearly see, we have to enhance our position overall in the open source community. Not a strong point for VMware in the past, and we're quite committed to changing that perception going forward. >> A lot of great code in the open source, but you mentioned those things about the infrastructure. I want to get back to that point. Those complex things. Automations now playing a big role, we saw the demo today with vSAN,Yanbing was just, one push of a button, a lot of policy, automatic policy automation, that's a great direction. >> Pat: Oh, yeah. >> So, I like that direction. But now I want to bring that back to Cross-Cloud. NSX with security and automation, and protection with the vSphere and then Cross-Cloud. How do you look at this? Because I know you're a strategist, so I think we'll get the strategist angle here. It's like the inter-networking data, I was riffing with Stu earlier about inter-networking has spawned because of all these networks needed to be connected together. And that became >> A whole industry. >> A huge industry. A lot of wealth created, a lot of innovation. Inter-clouding, or Cross-Cloud as you call it, is that dynamic. How do you play well? IBM's onstage, there's no Amazon onstage. I didn't see Microsoft. Are we going to see the other clouds come in to the fold, or are you going to go to them and partner with them? >> So let's, you know, one of the architectural principles of Cross-Cloud is public APIs. So I'm not requiring any unique support from Amazon and Azure, and that's an important statement as well, because now I go to a customer who's taken advantage of Amazon, and they can look at some of those Cross-Cloud Services and then says, well, what if Amazon doesn't support you in the future? And we say, these are standard APIs. They're supporting hundreds of customers on those APIs. It's important, right, that we're engaging with, I'll say, the way that the cloud is being presented to customers and giving them better tools to manage. Now that does not mean I'm not going to do more work in integrating more deeply and partnering with them. >> So does that support like the Amazon S3 API then? >> Pat: Of course. >> Okay. >> John: Well, Sling API's a little bit different. >> Management APIs is actually more appropriate to look at it in that respect as well. How do you spawn, how do you stop, how do you manage VMs, how do you do availability cells, those are the things more appropriate to a management tool in that regard. But those are public API, public interfaces, we're taking advantage of all of those. And we are going to work more closely with the Azures and the Amazons as well, we're going to invest in those partnerships. And there may be areas that we compete with them, but we're going to go do as much as we can, because that's what our customers are asking us to do. Give me better support for those environments, which workloads can I put there? Can I network? Can I secure? Maybe in some cases I don't want my groups using nonpub, or non, you know, multi-cloud APIs. Another case is, hey, I am fully comfortable saying, >> Pick the right cloud for the job kind of thing. >> Absolutely. Right >> Is your philosophy. So slinging APIs is pretty trivial relative to interfacing with the cloud, but the customer might want to go deeper, and, because that might create a complexity issue around, and also functionality might not be as robust as, say, deeper stack integration for data management and whatnot. Are you worried, or we're watching, certainly, like Microsoft, if they feel the proprietary aspect of their stack around data for instance, that's the holy grail, it can get sticky, but still be quote 'open' but not proprietary. >> Yeah. >> So the lock inspect is the lack of openness, per se, to say with data. >> And by the way, you know, I mean, in that respect, what we want to do is present to customers the tools that they can manage those decisions. For instance, a customer may say, hey, I love that machine learning API that Google offers. It's giving me a great competitive advantage, it's not available on any other cloud, and we're going to say, hey, it's proprietary API, if you use it and your data's there, you've picked that service, but we're still going to help you manage and secure it. Another workload, the customer might say, Hey, this workload, I want to make sure has multi-cloud landing zones associated with it. So we're going to help him manage those decisions as well, because if you stay in this domain, I can make it run anywhere, I'll be able to do cross-optimize it, maybe geo-optimize it, et cetera. So it's giving them the tools to manage those decisions. Because I think, hey, you know, Microsoft, they're going to do really well with things related to collaboration of 365. I think Google, I think they're going to do really well around data machine learning. IBM Enterprise, great cloud. Amazon, hey, they've won this round of the developer cloud. Each of them has sort of staked turfs that are very clear, they're going to present value to customers, and our view is, we're going to make those all more readily consumer, suitable for enterprises to run, manage, secure, and connect their workloads into those environments. And build the connectivity into their private clouds, their vCloud Air Networks, their manage clouds as well, that's what we can uniquely do. >> Amazon is going strong in the enterprise. I agree they've won the developer cloud, but they're aggressively going after the enterprise. Mainly Oracle for now, but I'm sure they might think about speech ed that you have. >> Oh, sure. Sure, absolutely. But, you know, in that space, moving a lightweight application, okay, done. Right, you do an OEF conversion, you're done, man, you sell it like that. Oh, you've got to move the full network configuration, IP address ability, right? I've got to deal with different- oh my gosh. Those are hard things to do. The easy stuff moves pretty easy. The hard stuff, okay, that's where we're at now as we address Enterprise customers, and you just don't pick those up and relocate those onto Amazon, Azure, or anyplace else. You know, that's really where the strength of VMware lies. >> So Pat, Dave Vellante is, you know, just at this point, he can't be here for the interview, so I'm a surrogate for him. >> I refuse this interview, not having Dave here. >> John: He says, Pat, I love you forever. That's what he says. >> He asked me to have your commentary on the new era of IT. Officially announced today, the Dell EMC deal, September 7th it will go down, you know, of course that has ramifications on VMware. HP split recently. Lots of, I mean, major signal changes to the industry. What's your take? >> Yeah, you know, as I described before, this is a very disruptive period of the IT industry. Consolidation of portions of it, we think as the hardware industry has matured, stabilized, you know, not growing, still cashflow rich but not growing, we think consolidation is a very natural phase of that industry's maturation. And against that, the Dell move, it's a very bold move given the size of it, but if you look at the cashflows of the companies, as Michael says, it's pretty easy math. It wasn't that hard to, you know, this is how much the cashflow is, this is how much the debt payment is, the math works. Do the deal. >> And Michael said, if you don't understand that VMware is hugely important to that, you don't understand the math. >> Right. For that, you know, clearly, having a controlling interest there, he gets it. We have a lot of growth potential as well, evaluation increase, potential strategic role, but he also realizes that the independence of VMware is critical as well. A software company is very different than a hardware company and our position in the industry, the ecosystem, he respects that greatly. We also think that we're far from done with disruptions elsewhere. We just saw Rackspace go private. Wow, you know, that's another structured shift. Changes in the structure of Citrix as a company, at Five, as they go through their transitions in this next phase of growth, Palo Alto, a good friend Mark McLaughlin, they're driving their software and service revenue growth from hardware. Lots of changes in the industry. Collectively, we look at those and we say, boy, this period of change, disruption, radical growth, consolidation of different places, VMware sits now at a very stable and comfortable place. I've got a great battle sheet, I've got a clear path in front of me, going back to the beginning of the interview, and, right, behind my battle sheet, is this huge turbo-charged engines that is cheering for our growth, distributing us, and even a bigger battle sheet behind us. So we sit in a very uniquely wonderful position. >> I have a final question for what a great, I know you've got another point, and thanks for, first of all, thanks for your time again. What's the biggest disruption that you're watching that's motivating you, whether it's lighting a fire under your feet, or just something that you see that's so epic, and get out for that next week, as you said, if you're not out for that next week, you're driftwood. >> Can I give you two? >> John: Yeah. >> So the one that I think is clearly the biggest is the shift to the public cloud. And I'll just say, that's why the Cross-Cloud announcement was so critical. Also, I wanted to demystify some of the numbers in the keynote. So we went out there and said, very specifically, this is where it's going to be, SaaS, and IaaS, and where it's going to be at different points in time, because I think there's been all sorts of numbers floating around the industry of what it's going to look like over time. But clearly, this public cloud's becoming a big deal. If we have to present ourselves as relevant and critical to our customers in that transition, so I'll say that's the one that we have to navigate through to really position VMware for the next couple decades. The other one that I point out is really, as we talked about, the IoT and the device picture. Wow, we're going to have more machine-connected devices in 2019, >> Love that stat, by the way. >> Than human-connected devices. And that presents enormous business opportunity, right, security threats and opportunities, data infrastructure to go with it, IT, as I would say, IT has left the nest. It's now permeated, >> And software's, a primary function of all the new software that has to be written to handle those situations. >> And in that sense, you want to say, even though I'm three and a half decades in the industry, it sort of feels like we're just getting started. >> You had a spring in your step until you had a cast on it, so you still, you've got to be careful you don't break down. As you get older, your bones get a bit more hard to recover. >> That's right. >> Pat, thanks so much for spending the time, great to see you again. >> Always a pleasure. >> Pat Gelsinger, inside theCube, here in VMworld 2016 in Las Vegas. >> Mr. Vellante must be here next year. >> Dave, man date. Stu Miniman and I, Stu, you did good. You held your own. Pat, as usual, great. This is theCube, you're watching theCube at VMworld, I'm John Furrier and Stu Miniman. (techno beat)

[Voiceover] Live from the Mandalay Bay Convention Center in Las Vegas it's The Cube. Covering VMworld 2016. Brought to you by Vmware and it's ecosystems sponsors. Now, here are your hosts, John Furrier and Stu Miniman. >> Welcome back everyone we are here live in Las Vegas for VMworld 2016 at the Mandalay Convention Center. We're in the hang space where The Cube is located. I'm John Furrier with Stu Miniman. We're here with Chad Sakac the President of EMC's Converged Platform division formerly known as VCE. Welcome back. Great to see you. Fist pump. >> It's good to see you. >> Seven years we've been doing The Cube you've been on it every single year. >> I can't believe it. >> We love having you on. >> The Cube has become a fixture of VMworld for me. Seeing you guys. Your good looking faces. It puts a smile on my face. But I can't believe it's been seven years. That's insane. >> Yeah. The seven year itch as they say in VMworld. So I got to ask you. You're always candid and colorful. But you've seen the transition. You've been in the trenches. Coding. Now you're president of a division. Big division doing great. >> It's terrifying isn't it? (laughs) >> It's interesting. The Cube is bigger. We're all getting bigger. What's your take right now? You've seen the journey. Seven years. Where are we? >> VMworld has always had a huge community. One of the things that's been defining about VMware's whole journey has been the community. And that's one thing that has stayed pretty constant. Right? There's a lot of people here. This time in Vegas. Previously in San Fran. They share a passion and a love for all things that Vmware is doing. That said. It's a very different show. It's a very different context. It's a very different ecosystem. Literally at the beginning it was one product. Right? Now if you look at the keynotes they have to struggle to get all of the awesome into an hour and a half and do it in two days. Right? And they can only hit certain highlights. Sanjay did a great job today. Kit did a great job. My favorite, Yanbing. Yanbing Li has got passion, energy and loves her baby vSAN. But imagine trying to cram all of that stuff in previously in years past. If you go back seven years that would've been all of Vmworld would it had just been on just one thing. Right? And then obviously the other thing that's going on is the entire ecosystem has changed. So we're seeing consolidation in the ecosystem. But we're also seeing, I think Pat actually did the best job I've ever seen of that realistic balance of what's happening in traditional IT, private, public hybrid cloud models. And how that's going to play out over the next few years. But there' no question that public clouds are a huge part of the landscape for here. For now. For tomorrow. Forever. >> Pat got some criticism on Twitter. Also, some blog posts out there said that the keynote was a snoozer. But it was straight talk. And that's what the ecosystem wants and we're hearing. Stu might have his own opinion on this but what I'm hearing is I want to see the path. I want to see where VMware is going to be going so I can get behind that train. Clarify. Show me the straight and narrow roadways so I can turn up the gas a little bit. >> There's the expression that basically says the customer is always right. Or the people are always right. You can trust the people. Sometimes the customer is wrong. And sometimes the people are wrong. So last year they went bananas over vMotioning of VM between two clouds. Because it plays to the base. It plays to the audience who are like I love vMotion. Why wouldn't vMotion between clouds make sense? The reality of it is that while that was cool and technically accurate. This year's demonstration of basically saying no, you're not going to motion vm between on prem and public clouds very often, if at all. But you will need to be able to do things that bridge public clouds. Is actually a much more correct and relevant answer for the market. Now the difficulty is is that sometimes you're telling people things before there ready to fully internalize it. >> Embrace it. (laughs) It's shock of the system almost. Really. So you play the base. It's a lot like politics in that way. But I got to ask you the question. >> By the way. Just like in politics if you constantly play to the base you never move forward. >> Yeah. And this has always been a diverse ecosystem. So let's start with the cloud things. Obviously ecosystem is back on the table, I'd say. It's front and center. It's always been front and center but as it consolidates we're seeing its straight path. The question that people want to know is. Will everyone have fair access to the VMware as an independent company visa the new big mega merger was announced by Michael Dell just minutes ago that September seventh will be the close date. >> What are you talking about? >> Dell Technologies. >> What? (laughter) >> You can talk about it. Dell announced it. Michael tweeted about it. >> We're not bait and switching you. We'll show you his tweets if you want. >> I'm joking. I'm joking. And by the way, I'm so pumped and so excited. Frankly, I think not everybody understands exactly what's going on inside the industry. The server storage and networking ecosystems as stand alones are actually shrinking. As workloads move to SAS. As workloads move to public cloud IOS. The parts of the ecosystem that are growing are customers that are basically saying they want converged, hyper-converged and turnkey software stacks and that's they way they want to consume. They want to simplify stuff down. To be able to pull that off you have to have all the ingredients inside the stack. Increasingly, you will not be able to be competitive without having all the those components in the stack. And this is why I am passionate that convergence hyper-convergence and convergence and also turnkey software stacks will be at the center of Dell Technologies. And I keep telling Michael and he keeps agreeing which is a good thing. Right? The reality of it is is that we cannot, in spite of that statement being true, it is also true that people will continue to want variability. That may a be a declining set but it's a bigger set of customers. And the customers are like I'm all in on turnkey. So this one is smaller but growing faster this one's a much bigger ecosystem of, I'll mix and match whatever I want and put it together. Alright? So if you look at Yanbing's section. So she said HP with vSAN. Then she went VxRail and Yanbing thanks for the shout out during the session. That was awesome. They were powering basically some great events with Di data and powerful things in small packages. That's a highly integrated system. And then they brought up a customer that was totally building it themselves. Right? So it literally in a span of two minutes you had the continuum of build it yourself, a turnkey thing and it build it yourself. So will it be sustained? Yeah. Can you expect that we are going to lean in like crazy on our integrated stack? Yeah. But will we do it in exclusion of the ecosystem? No. >> There's just different use cases. >> Yeah. VxRail is winning in the marketplace because it's a highly opinionated vSphere HCIA. If you don't have vSphere. You don't like VMware it's not the HCIA for you. Right? However, more customers say yes than they say no. And that's awesome. But we know that we're going to need to create a next generation of the Microsoft Azure stack. On prem HCIA. It won't be built by the VxRail team. But there customers want it that way. And we're not talking about it a lot this week. But last week we launched VxRack new treno which is a turnkey open stack KVM SUSE based thing. Choice baby. >> So Chad, first of all the Dell deal is announced. So this is the final nail in the coffin of VCE, correct? >> Absolutely. Of course not. The reason that we are shifting the way we talk about VCE is something really simple. If I say VCE what's the first thing that appears in your brain? >> Stu: vBlock. >> Va-blah vBlock. And that's a good thing in a sense. >> How much revenue did you do last year, Chad? >> Three point five plus billion dollars. Almost entirely in vBlock and VxBlock. >> That would be a nice a public company on it's own. >> On it's own. Right. And growing at 40% cumulative annual growth rates. That is amazing. Right? >> It's not a fail. >> And by the way the thing that's interesting is that hasn't slowed down one iota in spite of the fact that everyone knows the Dell deal is going to close. However, the difficult it is is that we are no longer just he vBlock group. We have these hyper converged appliances that are growing like sync and customers are voting with their feet and their dollars. I think in a short amount of time we'll be the number one by customer, by revenue HCIA player in the market. But furthermore, we also do these turnkey cloud stacks. So realistically VCE is more of a product brand than it is a company brand. And we're no longer a separate company. We're a part of VMC and on the seventh we'll be part of Dell EMC. >> Chad, can you help us connect the dots? We've got the converged infrastructure. The platform. You've got some SUSE team. Talk about SAS and public cloud. How does Dell, EMC, VMware stay relevant going forward and play a part in that whole story? >> So it's a great question. I'm going to try to see if I can do this in an uncharacteristically concise way. Do you believe that hybrid cloud models will win? >> Stu: Sure. >> Chad: Do you really believe it? >> I mean what we have today isn't really good hybrid cloud but that's where we need to go. >> So, by the way, we need to make the on premise clouds as simple and easy to consume in utilized modes as the public clouds are. >> Stu: Love that. >> Chad: Right. However, I think that it is inherent that economics, governance, data gravity will always balance out some workloads biasing toward public. Some biasing towards private. Furthermore, do you think that there will be one cloud model that will win? Will it all be the VMware SDDC cloud? Will it all be Azure? Will it all be Amazon? Will it all be cloud foundry? Will it all be SoftLayer? >> Well Andy Jassy has an answer for you but many people will differ with that. Including Satcha and Michael and everybody else. >> I think that there's never been in the history of all time any sustained period where there's a singularity of a stack. >> VMware has done pretty good for a while. >> Yep. But, by the way, there's never been in all of history any extended period of time when there's been a singularity of a stack. Right? So our point of view is very simple. My mission in the converged platform division today is basically to build turnkey CI and HCI to power VMware powered clouds and Cloud Foundry power clouds. Tomorrow, meaning on the seventh, immediately my strategic posture toward Microsoft pivots. EMC has always had a partnership with Microsoft but nothing like Dell's. Right? So immediately, I'm going to go. Well we must have the best on and off premises version of the Microsoft Azure stack. Dell currently leads in that market but it's very early days of that. We go from having two clouds both on and off premises. To a third one that we add. And then of course there's a fourth one which says if you want to run your most mission critical, business critical, classic apps. Virtustream is the way to go for an SAP legacy landscape. That you want to put in the cloud. That needs to have an on premise variant too. So, four clouds. Each one on and off premises. Each one available in Capex or utilitized models. If we can pull that off we can be the strongest cloud player on the market bar none. I think that's cool. >> With the choice as the key sales pitch to the client which is pick the cloud that does the best job. >> The thing that's interesting is that sometimes choice is a euphemism for blah. Like I have no strategy. I have no opinion. It's just pick whatever you want and assemble it. What I'm describing is something a little different. Which is a choice between four highly opinionated turnkey offers. >> Okay. >> Right? Now of course, we'll enable customers to build there own things but I think that over time less and less customers are going to want to do that. >> And Chad, I think that points to what we've seen in the wave of converged infrastructure and cloud is we need to get out of that heterogenous mess where I've got the poor guy buried in wires. Running around. Trouble tickets and everything else like that. It needs to be simpler. We need to have the management tools. Chad, I want to get your viewpoint on VMware. One of the criticisms I've heard is kind of the cloud management stack. We've been swinging a bunch at this and we don't yet have a solution that customers are happy with. Where do you think we are? Where do we need to go? >> So, you've been around the block on this and customers who are watching this have been around the block on this. Cloud management platforms are tough. Its actually a very, very fragmented market. With very little consolidation in the past or even looking forward. Now inside that space vRealize is actually the strongest. And it's the most deployed. It's the most widely used. But again, I don't want to make it sound like ahh we're number one. Right? Clearly there's a lot of work to be done. Last night I was talking with Sajay who heads up the vRealize suite team. And what we've seen is that the team has done a lot of work out of the 6.x, 6.5 dot and you know 6.X days into the 7.X days. And customer feedback is that it's much closer to the mark. A in terms of core product workflow, upgrade-ability. All of those sorts of things. But also in the fact that it actually has extended out to be able to automate and deploy on top of Azure and AWS. In the beginnings of the extended cloud connects vision. Now that said. In those four opinionated cloud stacks. Now this is my personal opinion, here Stu. So I always have to safe harbor all that jazz. (laughs) I think that what you see is you see those highly opinionated cloud stacks. The CMP layers, the top part of it, being able to speak to each other but always favoring their own ecosystem. Right? I think that we're going to be in that mode for a long time. >> So Chad, some people might not be aware that in addition to the VCE products in there that the solutions piece and the cloud that you have. The progress that you've made. We've talked to some of your team. I think we've got Peter coming on today. Can you talk about the EHC NHC maybe even share a bit of revenue if you can. >> Yeah. Sure. First things first, it's important to understand this at its core. The original idea of VCE, which is now eight years old, was a basic premise that says we have a pile of giblets that are all awesome. However, customers struggled to assemble them. And they want to have a turnkey offer that they can lean on us to not only deploy but sustain, support as a single offering. That was the origination story. Replace server networking compute with hypervisor, IT business operations a CMP all of those things and you have the enterprise hybrid cloud. We started getting lots of feedback from customers. We love vSphere. We love vRealize. We love vRealize automation and operations. We love all of this log-in sites stuff. We're all in with Vmware can you guys give us the easy button? Right? And so we started on version one. Then on version two, version three, 3.5 and this week we announced version 4.0. Right? We're now up to hundreds of customers so it's still in the hundreds. But it is the most curated. The most turnkey way to get the VMware SDDC deployed. Now, I still think we have a long ways to go. Because we need to make it so push button, easy. And cloud foundations that Pat announced on Monday. Is a core part of that. Think of cloud foundations turning to validated designs and the enterprise hybrid cloud being the ultimate manifestations. >> Chad, just a clarification. Hundreds of customers but from a revenue standpoint that's probably bigger than the hyper-converged market. >> So you know what's fascinating. That's actually a fact. So I hadn't really thought about it. But we're currently on a revenue run rate that we don't disclose publicly, but I'm like, how do I tiptoe around this? It is larger than the largest HCIA players by a good market margin. >> Right. >> So you're talking about hundreds of millions of dollars worth of annual revenue. And customers are saying, look I'm in. I saw the keynote. I'm aligned with VM where I want to go. Right? And enterprise hybrid cloud is designed to do that. We keep reiterating on it. On virtual geek there's a whole slew of details on the 4.0 lease. And then the other thing that we started to see is we started to see customers say, I get it. With the enterprise hybrid cloud you've made my IT operations for classic IT better. How do you help my developers build the digital enterprise? Which doesn't start with infrastructure. And it doesn't start with IAS. It starts with the way developers see the world. Which is the platform layer. And we're on version 1.1 now of the native hybrid cloud which is targeted at how do we build a platform for building cloud native apps? And that starts not with infrastructure. Not with VMware. Not with EMC. Not with servers or network. It starts with cloud foundry. >> Chad, we got to wrap. I want to get one final point in and I want to get your thoughts on it. It's more of a historical perspective but also kind of a futuristic. Take your EMC hat off and put the personal Chad hat on. The ecosystem. Where is it going to go? Obviously it's consolidating. Which means it's shifting. So the old ecosystem was great and robust as you mentioned. It's not necessarily dying. It's just shifting. It's consolidating. So that means it's shifting to something else where there will be growth. Where is it moving? Where is that puck going so people can skate to where the puck will be? >> That's a great question, John. I'm always a geek at heart. I'm always going to run that vSphere cluster in my basement. It gives me joy and gratitude on cool new intel NUC. Great stuff. But in my new job. (laughs) as the leader of a big business. The broad landscape picture is fascinating. This isn't actually rocket science. You can decode it remarkably and quickly. In industries that are declining or under pressure. Secular pressure. Consolidation is inevitable and you have to pick your partners wisely. I think people underestimate how much giants that they would think of as safe and secure bets are under pressure. Michael was wise enough to take first mover advantage. Because in those periods no one has shrunk themselves to success. Right? Conversely, you see very diversified ecosystems. When you see a very diversified ecosystem ergo cloud management platforms. Ergo security, like oh my goodness, the number of security startups and players. A hyper converged startups. I count 39 of them at the last turn. Right? They go through a life cycle of explosion of ecosystems and then inevitable consolidation phase. And people look at that consolidation phase and say oh, the fun is all over. No that means that the fun has begun because your actually starting to really move the needle at customers. Right? So you can expect to see consolidation and security space. You can expect to see by the way very disruptive point technologies occur. The container ecosystem is going to explode and then consolidate. And when you see that consolidation happening the container act Sysco acquisition is one of the earlier indications in that space but just one of them. It means that it's moving from sizzle to steak. Again, look at the open stack ecosystem. About a year ago everyone was like, all the fun is over. All of them have consolidated down into the big massive players. It's because people are now getting down- >> John: Rubber is hitting the road. >> Rubber is hitting the road. >> So where is it going now? Where is the fun going to be? >> The fun is definitely going to be very much in new data fabrics and new applications. There's no rocket science there. The space that you saw the tip of the iceberg on the cloud. Cloud connection of how you can bridge. Bridge doesn't mean migrate it means create connective tissue between on premises and off premises clouds. It's going to be really, really interesting. I think one thing that is fascinating is roles for human beings that span functions. That is the new magic mojo. When I find someone who is a developer. Who understands infrastructure they've got mojo. When you find someone who understands the span of what's going on inside the ecosystem that person's got a bright future. >> As they say in baseball, the players have to have multiple tools in their bag. Chad, we got to break but great conversation. Thanks for coming on. Really appreciate it. Good seeing you. Congratulations on all your business success and September seventh is going to be the big close date for the mega transaction. >> It's going to be awesome and by the way guys, congrats to you. Seven years of this is great. I can't wait for next year. It'll be a lot of fun. >> Thanks. Chad Sakac here inside The Cube. Where all the things are happening at VMworld inside the Hang Space at the Mandalay Bay this year for VMworld 2016. I'm John Furrier with Stu Miniman. We'll be right back. You're watching The Cube. (upbeat music)

>> live from the Mandalay Bay Convention Center in Las Vegas. It's the cues covering via World 2016 brought to you by IBM Wear and its ecosystem sponsors. Now here you're Hope's Stool Minimum and John Walls. And welcome back to Las Vegas. Here on the cubicle, tear our coverage. Of'em world here. Mandalay Bay along with minimum. I'm John Woes. Thanks for joining us here for our coverage throughout the next three days. All that's happened in Vienna World. Almost 25,000 attendees to pretty good crowd. Well, I hadn't heard the number, so that would be the largest bm world ever. If we believe the numbers, so no reason not to With John Gill Martin, Who is the vice president? General manager of the integrated assistant business at VM. Where, John. Thanks for being with us once again. It's always a pleasure. Thanks for having me. You know, like you bet I am at this point. Yeah. Tell us about the vibe of the show. First off, day one things underway. A lot of excitement, I would think. Yeah, it's fantastic. You know, I think this is my 11 PM world in a row s so I've got to see a huge evolution in this program is amazing to see how much has changed over the years. Going back, you know, it used to be a server virtualization. What is this thing and where we are today? It's so different. There's a lot of excitement. People trying to figure out how to manage and deal with all the change happen in the industry right now. So, John, one of the things we're all coming into this week looking at is kind of the the cloud management suite, which is right in your area. Can you help us unpack? We looked at kind of V cloud sweet, and then there was some STD see stuff, and now it's cloud foundations. How did these things relate? Is it rebranding, Renaming, repackaging? Help us understand, Actually. So with that foundation, that's one of the key announcements we made today. The objective. There is what I think. How do we take what we have been talking about? Whats offered by Data Center and just make it easy? I don't make it easy for our customers to deploy easy for them to architect easy that even offer as a service from public cloud. That's kind of a key concept. So we are taking and integrating together the key components of softer, defined compute storage and network. There are wrapping some new capabilities to automate deployment autumn E provisioning. And so some ways is an extension, but also in evolution of what we've been doing previously. Okay, but this is still a software offering. Correct is what >> one of the components inside of that >> s O. There's four key components inside of my foundation. There's peace here, virtual sand NSX that gives you that software defined across all three domains and >> then a new component >> that we call STD. See, Manager. So what the SEC Manager does is sort of the glue that brings it all together to bring that integrated experience. It takes all the work that our customers do around you. How do I think about design? How does architect how to deploy? How'd I manage patches and upgrades over time and just automates all that inside of software so they can go from air medal systems deployed cloud infrastructure very, very quickly. So So what was the gap? You know what? What do you dress in here in terms of improvement in terms of change. You're talking about doing something a little bit differently for customers. Use a visa. What have you, But we're trying to get done it. So the key thing, just like the two key new things in this that are really different one is that just making it really easy on the private cloud side. But then we also take exactly that same sort of technologies and also work with our partners to offer it as a service. That's also the really new thing that we're doing today. So we had an announcement today with IBM as part of their IBM cloud. They're offering Cloud Foundation as a service, which >> means customers and go to a >> portal and provisioned out capacity based upon 100% consistent infrastructure. >> That means, you know, if I need some more capacity, as you have it inside my data center provisioned it out inside IBM Cloud. And now I have seen management tools, the same operations, everything I do in my data center. I can now do inside of this cloud environment. We'll extend that after other partners in the future. We'll send that out into the crowd air next quarter. This is really a great way for customers to start extending our migrating into the cloud. But do it based upon without having the architect. The applications are fundamentally change how they operate. >> Eso We've been arguing. We've been trying to figure out this hybrid cloud thing to the last few years, and there's many companies that are saying Okay, here's the software sack. You can put it in your own data center, or you can put it in some kind of public cloud environment. We see IBM does that sum. We see Oracle do that. Microsoft, of course, has azure and azure stacks coming some diamond next year. Is this The em wears answer to say OK in the data center where you know and love these fear, this is a full set, and then you can put it in IBM Soft Layer or a bunch of other writers. >> Yes, it is that concept of a consistent stack, yet a seem stacked inside the day's center, exactly the same stack outside the data center. So it is 100% consistent, right? That's part of what's really attractive about that. And then his customers think about well, what are the management tools or the cloud management platform, but I won't run on top of that. That can extend very seamlessly now across multiple environments. >> Okay, what about the interconnection between different locations? How does that >> work? So interconnections. You can take advantage of NSX and what it does around stretching, stretching, networking across environments like it's a very powerful capability to really think about it, really, as it's seamless extension of the data center. That's one of the unique capabilities and obviously with IBM has a first partner. They have almost having 50 data centers around the world, so it becomes very easy to collate. Locate your applications close to your private data center, which >> is important. So IBM is the first partner. How does this fit into, like the V Cloud their network, then, where you have thousands of >> partners already? Yeah, so they're the first Qatar network partner to offer a service, and then we expect that are working with other because our network partners to do the same offer Cloud Foundation as a service and, you know, kind of underlying that technology is this s CDC manager, which makes it easy for them as well. They go provision out these infrastructures very quickly and easily. >> Yeah, when you're about customers, what are the pain points that you were hearing from them that you were dressing? Because we take about the sophistication of technology, these of use efficiencies, high performance, all this stuff. It couldn't be any better, but obviously could have been better. So what we're hearing from them that led you to develop the new product. >> Well, the big thing is his customers were trying to think about how to the leverage public cloud is part of their architectures. You can kind of, It's pretty clear, that kind of result they want. They want to able to have an environment where their application owners and the developers sort of don't even know where things are running. They wanted to be a little bit transparent, kind of seamless. At the same time, they want to be able to have the ability to maintain control, maintain security policies, maintain operational control over the environment, have good insight into it. And so I sort of challenge that we're walking into, and your traditional infrastructure still very much stands in the way people trying to support the developers, people enterprise has spent too much time hugging components together trying to make things work together. And that's just not value added activity. It's not differentiating. It doesn't help them compete in the marketplace. And so we saw is what happened. We help them get out of that business and focus more on the things they want to do above the infrastructure layer. That's sort of the whole rationale for building a foundation was, Just take everything that they do today That's on value, out of activity. Put that in software, automated public empire the cloud and they can focus on what there is value out of business on. >> One of the challenges we've been facing in this transformation is kind of the go to market. If I think about traditionally the sphere, you know Veum. He's got a great channel partnership Lotto, EMS in the early days, and now, I mean just a huge amount of channel parts that know how to sell it, know how to make money. Cloud is a big shift for them. There's only a small percent of the channel that kind of understands this with IBM, kind of as a first partner. How do you see this playing out with kind of official panic Channel partners, service providers and the whole go to market. >> As you point out, it's clearly an evolving story. Right and different partners were kind of thinking about it in different ways. You know, there's still, you know, definitely in on premise opportunity that they're going after. But clearly having a good crowd strategy is going to be important for every reseller out there in every partner. And some of that is gonna be thinking about what are the kind of service is that you can offer your customers to help them make that transition. Yeah, if you think about you know, if I want to extend my data center, I need to migrate workloads or re architect workloads. Those types of service is I think they're going to be critical to become experts in and help customers. We think about their long term strategy. The fact is, the customers are gonna move warm or the workloads into clouds of some type over the next few years, and they're gonna need help in your advice and guidance and migration surfaces to get there. So there's a real business to go be built around those kinds of opportunities. >> Okay. Can you give us a little bit of what should we be looking for? Going forward, You know, if their customers that are running this stack already before it was called this And how do we How could we benchmark to say whether or not you're successful by the time we come back next year? >> Yeah, that's a good question. >> Tough questions, >> A challenge. So now it's a great question. So this software is gonna be available later this week, so it's actually generally available on September 1st. So it's just coming in the marketplace now. And so we've been working with Summerlee Beta customers on this over the last couple a couple of months, get great feedback and really help this steer perfectly towards this public cloud opportunity S O. I would expect as we come back in a few months, we'd be able to talk about our kind of initial lighthouse customers and how they're doing. But we see just huge interest in this right now, right? Customers want to move, and companies want to move away from kind of plugging things together. They want away from individuals, components. They really are looking to buy Seymour integrated ways. This is kind of a key enabling technology to help him do that. And we could do that also with our partners. >> Yeah, Um, one of the big challenges we've had is everybody is always like, okay, but my needs are a little bit different. So we understand that if we can eliminate diversity of the environments in the homogeneity is good, I can repeat it. I understand it. But everybody, all that you know, that's the problem with ideas. They always want to tweak it. So what do you do when they say, Oh, you know, the sand's great. But, you know, you've got all these ecosystem part partners in storage. I kind of want this storage. And it's ex. I understand some pieces. Maybe I want over. Yes, but I wanted till some other pieces. What do you do for customers that want to kind of go outside of this initial package? What kind of choice and options that they have? >> Yeah. Yeah, it's, uh so just like this year, you know, these here is sort of been the universal platform for running virtual machines and has a lot of those connections into different things, so foundation fundamentally is based on the sphere. So for the take storage, for example, no keys here can connect to external storage. We can connect national storage and on a road map for the automation software inside. We'll look at how we can take advantage of external storage and some of these things as well, so as new as we talk to customers. And we, as we learned those areas that are consistent across many, we can start to bring some of those things in tow the equation as well. This gives us a very powerful starting point, and we can look at what are the right connections out system? >> And do you still have folks who are trying to hang on to say I understand what you're doing understands the new service of a new opportunity here, But I'm not ready to cut the Courtauld away. And how do you bring them along to showing them? There are new efficiencies here and there is a better bottom line benefit to you. >> I think you know the history of I t is a history of things remaining right. So you still have a I actually feel mainframes. Eso this transition will take time. This is not gonna be on overnight time type of changes. We moved to these types of architectures that are fully suffered a find, but we made a huge amount of progress thus far. We have over 5000 customers on virtual sand. Your NSX is going incredibly fast. Both of these approved points that these are the architecture's customers are trying to move to the end of the same time. Though we have to find the right the right starting points. What is the right project to start with? This doesn't have to be a wholesale change. The data center it could be. Let's take a virtual desktop project and run now on top of that foundation must take a new invite. New server applications, unemployed run that on foundation. And just like the sphere kind of started with these use cases that expanded over time. Same thing of foundation. We could start with a project and then and that shows success to move into other projects. >> John, you've been with the, um where for quite a few years you've done two stints of the company as you hear the outside world talking about, you know, cloud and where things were going. What do you think people don't understand about bm Worse position in the cloud marketplace going forward. >> You know the one thing you know, I've talked a lot right now about Cloud Foundation, which was one of our announcements. I think the other thing that is really unique that we talked about this week is, uh, something called across Cloud Architecture and said across Cloud service Is that in addition foundation and what we're recognizing is just like with server virtualization, we were able to abstract multiple types of servers and provide consistent layer we're going to do the same. Thing is we were across multiple clouds. Even non GM were based clouds, right, working with Amazon Azure Google. And I think that's one thing that is maybe even surprising, folks. And it's very different than kind of the company strategy going back 10 years ago. So we are fully embracing that these will be part of our customer strategy in the future. We do expect to see them, but we see a unique opportunity for us to go help them when it comes to managing applications across the networking security where we have really unique assets we can help with. And also data management. Government. >> Well, John, I know you said it takes time. Transition state time. >> Still gave you a year. >> Yeah. So next year at the world will come back and the update you on the progress that we've made, >> we look forward to it. Thank you for joining us and the best left down the road. We'll see a year from now. >> Fantastic. Thank you very much. >> You bet John Gill Martin from VM where we'll be back with more from Veum World here in Vegas. Right after this, You're watching the Cube.

>> Voiceover: 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. Now here's your host, John Furrier. >> Welcome back everyone. We're here live at VMworld 2016 here in Las Vegas. This is the seventh year of coverage for SiliconANGLE Media's theCUBE, it's our flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier. My co-host John Troyer with TechReckoning. Our next guest is CUBE alumn, one of our favorite guests, Sanjay Poonen who runs the end user computing, he's the General Manager, End User Computing Division of VMware, and also Head of Global Marketing now. Congratulations. New job role to oversee all of marketing, to bring that unified view across the company. Good to see you again, welcome back. >> Thank you John, and the John and John Show. I'm happy, I always love being on your show. >> Yeah, we have another John Walls on the other set over there, so it's three Johns hosting here in theCUBE. >> My middle name is John, let me tell you that, so I fit in the community. >> So Sanjay I want to get right into it. So you're giving us a preview here, folks, for tomorrow, the Keynote, you're the main act kicking off the Keynote tomorrow. A lot of big announcements, a couple super secret announcements that you can't share but you've got some new stuff going on in terms of new announcements, in terms of enhancements and new technologies. So can you share a little bit about tomorrow's announcements and what we'd expect at the Keynote. >> Yeah, thank you. So for everybody watching, make sure you dial in at nine o'clock tomorrow. I mean, the reality is, a key part of this client server to mobile cloud transformation is preparing people for a public cloud, digitally transforming the datacenters and preparing for public cloud, that's what you heard today. And the second piece of that, it's almost like two halves of the egg shell, the bottom part being the datacenter, the top part is preparing end users for an increasingly mobile world. And there we have this concept of a digital workspace, Workspace ONE that we introduced, and we're going to announced some new innovations there which really allow you to bring three things together. >> New products or new enhancements? >> In today's day and age when you're going cloud first, we're moving so fast so we don't do things in one big whole. I mean, for example, with AirWatch, we're doing probably like one incremental big feature every five, ten days. So we are doing things a lot more in the pace of cloud type company. So we don't really bundle everything to one big release. But nonetheless, we really focus our efforts around three gears, we're going to hear about tomorrow, one is the entire basis of how people work is driven now by identity management, and access to apps and identity. So you're going to see that tomorrow. And identity management becomes the important piece of the puzzle that's a control point for people's access to apps. Secondly you're going to hear about unified endpoint management and the worlds of desktop and mobile coming together. A good example of that is Windows 10. I'm going to talk about that more tomorrow. And third is a very important area of management and security, and how we think about endpoint management and endpoint security 'coz security is becoming one of the key missing linchpins that we think we can actually bring together in this digital workspace. So Workspace ONE with key focuses on areas like management and security. >> So you've been kind of, we've been interviewing you now three years. Congratulations, now at VMware, came from SAP as an executive there, now three years in. We've been watching your career, the end user computing evolve. The big bold movement down the field was the AirWatch acquisition. We've then seen a variety of different integration points in there. Give us an update on where it's come from and where, now we see where it's going, you just laid that out, but what are some of the specifics on how it's evolving because now with the cloud decision for the company, to say, okay, public cloud is in our equation with that Pat's announcement today, you've been kind of waiting for that engine, you've been kind of like, hurry up and wait for that to happen. So that's now, it's happening. Take us through how AirWatch in this piece evolved. >> Yeah, when we acquired AirWatch, part of it was our fundamental recognition that without a mobile strategy, you could end user computing. That's the name of our group is end user computing. You could end it 'coz we really needed something. So we looked at the space and we wanted something that was cloud first. They were, I would say, a close number, two or three, Mobile Line, I think was technical lead or maybe Good was, but they had a cloud architecture. We liked that about them. And was about a hundred million-dollar business. We disclosed at the end of last year that business was over 370 million in all in bookings. So you could see how rapidly we've taken them, they're almost 4X in two years. And the overall end user computing business was about a half billion when I joined. We announced at the end of last year, was a 1.2 billion all in bookings run rate company. When I joined it was about 30,000 customers. We're now about 65,000 customers. So reality is, we're now one of the top major businesses within the company. There's a lot of momentum. And that's been, I think, one of the better software acquisitions anybody's done the last two or three years. >> And strategically speaking, the digital transformation framework is essentially around this digital workspace area. >> It came out of that mobile space. And the part that we are now starting to see with clearer lenses in the course of the last six to 12 months is that identity management becomes an important piece to add to VDI mobile management. So we've added a third pillar of focus. And we feel like CIOs shouldn't have to buy VDI from one set of vendors, mobile device management, mobile management from a second, and then identity management from a third. These are coalescing into a digital workspace. So a big focus there. And allows us to also expand into new areas, for example, Iot, we can talk about it this time, and areas like endpoint security. >> It seems like, talking about identity management, that to you is right out of your security story. It seems like identity then has to become the fundamental pillar of security of end users in today's enterprise. How does your security story play into-- >> Yeah that's a very good point John. And I would say you're absolutely right. When we are increasingly selling our end user computing solutions, we're finding a key influencing buyer is the CISO. 40% of people have come to our mobile connect conferences are important to the CISO. Identity is a security topic too. So if you pull up for a second, the VMware security story now is very simple. It's in three parts. Number one, we can protect the datacenter. NSX now, one of the key propositions is micro-segmentation. That's a security seller. Number two, we can protect the endpoint with solutions like AirWatch and TrustPoint, we can get to TrustPoint this time. And number three, we can protect the middle, the user. So protect the datacenter, protect the endpoint, and protect the middle, the user. And all of those make us a very strong story appealing to the CISO. And then we take a bevy of partners with us that have even stronger brands and security. For example, one of our lead partners is Palo Alto. We're working very closely with them in NSX. We're working very closely with them in AirWatch. We're working very closely with them in identity. Another example of partners, F5. So we picked the group of partners that have very strong brands and security. And we found things that we do well. We partner with them in things that they do well. It's a really good story to both the CIO and the CISO. >> So much of the cloud story, as well as the end user story, is also about timing. We've been waiting on public cloud. Pundits talk about the death of private cloud but they don't say what year really. And so a lot of the end user story kind of we had to wait on, VDI, we had to wait on the devices. How do you as a leader of this company look at timing and when the market is ready for something? >> Well, I mean John, I think you have to really look at trends. And I had a fundamental premise coming in that the two Cs, and I'll talk about this more on tomorrow's Keynote, that we really needed to attack with venom was cost and complexity in the VDI market. And part of the reason as I talked to customers that many VDI projects failed, were cost and complexity. So we took a chainsaw to cost and complexity. And it turns out with a lot of what we've invented in the software-defined datacenter, software-defined storage that we were among the first to drive, hyper converged infrastructure, NSX for micro-segmentation, the fundamental premise of this sphere and all that you can do in areas like 3D graphics, we could engineer a solution that was 30 to 40% cheaper than the competition from VDI and app promoting. Complexity. We decided that VDI and app promoting needed to be one platform as opposed to sort of a competition that had like a, two separate products for VDI and app promoting. So these all were things that lowered the total cost of ownership and made that easy. Similarly with mobile, the two S's we attack there was simplicity and security. And we've had some core, I would say, these are the type of things, as a leader, you have to keep telling your teams, is your north pole. We're attacking cost and complexity. Another example of cost and complexity is moving stuff to the cloud. Three years ago we were the first to announce desktop as a service. What was one of the messages this morning, IBM, now embracing that desktop as a service in their cloud, working with us both in IBM cloud and IBM GTS. It's come a long way in three years. >> So I got to ask you about the aspect of unification. We're hearing that tomorrow you're announcing a huge shift in how customers buy and that it ultimately will change the equation on their cost side which is eliminating these point solutions out there. This unification endpoint, I don't know what you're calling it, can you share, give a little bit of leg, as Dave Vellante would say, on this morning tomorrow on this announcement, this consolidation or unification. How should we think about this? >> I mean, I think, and hopefully it's not a surprise 'coz we've been building up this momentum as opposed to one big mega announcement. Workspace ONE is really the coming together of three core areas. VDI and everything related to the way in which we manage desktops and apps, mobile management, and identity management. And in each of those spaces, if you don't look at us, there are point vendors doing each of those. And our differentiation is one, it's unified, second, it's a cloud first solution, many cases the folks have not yet moved to the cloud, and then we extend the capabilities of things like Workspace ONE, optimized for our datacenter where it needs to, into new areas like, for example, security. So we think as you lay this out and then build a partnership ecosystem, with not just security vendors but apps vendors, we're going to have a very large apps vendor on stage with me tomorrow, for the first time on stage, so I'm not going to tell you who it is, but come tomorrow you'll hear that. >> Microsoft, SAP, Salesforce? >> You've got some obvious candidates but it's one of those folks. >> It is one of those folks? >> How many big ones left, right? Some of them have been buying everybody. >> We've got some scoop this year on theCUBE. >> But that's an example of where VMware is taking the lead at embracing an apps ecosystem. >> So I got to ask you, you're a student of history and text, so back in the old days, back in the 90s, when dial-up in internet, Office Connections, Radioservers was a buzzword, you'd have to dial up into a facility, and you have to be authenticated. Pretty straightforward back in the day. But now the authentication, if you will, is coming from endpoints that are, like, anything. Uber could be inside the enterprise and app. So this notion of endpoints is interesting. It's also complicated. So there's not only a security surface area, there's also a cost area to deploy these solutions. Is that the kind of what Workspace ONE does? I mean am I getting it right? Am I thinking it right as an access method? >> I think you've got one piece of it right and I think you're exactly right. In the world of mobile, my fingerprint now becomes, police know that that's unique usually-- >> So does Apple. >> Right. And my retina scan becomes it. So you've got very sophisticated phones, it doesn't have to be complicated ones, that can give you either the fingerprint or the retina scan. You'd have to physically cut my thumb off and pluck my eye. I dare you to do both of those to replicate me. So you can move away from a very-- >> That's two-factor authentication right there. >> Yes, multi-factor, right? So you can move away from tokens becoming your only avenue of multi-factor authentication. You can do things smoothly. But it doesn't end there. Endpoints security has to be re-thought to really work at speed and at scale, so that's why we partnered with this hot security company, you're going to see them also on display tomorrow, Tanium. And with them we built a product called TrustPoint. And we use it internally at VMware. In fact one of the things you're going to see in the demos I do tomorrow, there's going to be lots of demos in 25 minutes, of day of the life of how VMware uses technology both in Workspace ONE and endpoint security. Tanium's one of the hottest products that we internally use and we combine some of our IP with theirs, and created a product called TrustPoint in a Google-like interface. I can search to find all endpoints in the enterprise, what potential apps are running on them, what potential malware's on them, quarantine it and maybe even take action on them with some of the technologies we have from AirWatch. So we've combined the best of Tanium and VMware's technology and this is going to be a real hot solution for areas like Windows 10. >> And what's the uptake you're taking on traction given where you're business is going? You've got some good performance now. What's your expectation on uptake on some of these, this Workspace ONE and the end space? >> If you look at our success so far, I told them, when I joined the company, the business was about a half a billion. We announced the end of last year, it's on a 1.2 billion run rate. So we've effectively more than doubled the business, doubled the customer count. And I think that on our path from 1.2 to two billion over multiple number of years, these solutions are going to become very critical to our growth. Horizon in the desktop portfolio, AirWatch in the mobile portfolio, identity management, and TrustPoint. And when I talk to our sales guys, I say, "Listen, there's enough there to feed "a lot of potential customers," and when I look at our customer count, 65,000 customers, we're still about 9, 10% penetrated inside the overall VMware base. If we can double, triple our customer base, there's no reason why this couldn't be a multi-billion dollar business. >> Alright, so for CXOs whether that's CIOs, chief data officers, chief revenue officers, any CXO, chief security officers, CISOs, all that stuff, for they're watching out there and tomorrow's Keynote, how would you summarize if you have to boil out your point of view and your theme for tomorrow, and some of the key takeaways? >> Four words, consumer-simple, enterprise-secure. There's an element of simplicity that gives you all the productivity that you need with Workspace ONE and your end user world. And then there's a message of security that the IT wants. The users benefit from simplicity, IT benefits from security. Users benefit from choice, IT benefits from control. And you'll hear that very, hopefully, fairly clearly tomorrow. >> Sanjay, final question, your team, VMware, you've amassed quite a team, the performance have been great, when you go back to the ranch inside Palo Alto headquarters and throughout the world, what's your marching orders to the team? What's the guiding principle that you put forth with respect to keeping the pace of innovation to match up the cadence of what's expected, not only by potentially your customers, but also your potential partners and competitors? >> First off, I'm a big believer in serve and leadership. So you have to lead by values that replicate, there's no success without successors, so I'm a hound for talent, I'm always looking for ways by which, just like the warriors, we create the best end user computing team bar none, and I think we've been very fortunate to create that team in every area. There's more talent that we should be hiring. I hear about them and we go recruit them. But once we've got a good team, we keep them focused on the mission. I mean obviously we have a revenue growth goal, and at the core of it, beyond just selling things, we want to make the customers successful. So we keep customer as our north pole. Customer satisfaction for VMware has been the highest of any IT vendor. When you look at many of these, Temkin research does a survey of customer satisfaction, we're among the top five, almost consistently the last few years. And then we make sure that in the products that we build, customer first, serve and leadership at the top, customer-focused, and we are building products, I mean we're an engineering-centric company so we want to build the best products that have a leap factor over the competition. >> So the warriors have a style of play-outs. You have Steph Curry who's just, lights up. But they're not afraid to shoot the three. They're good on transition, great speed. What is your differentiation as an organization? What's that x factor? What's the one thing you can point to? >> I mean, I think, listen, we were probably a little bit lethargic in end user computing. John was joking about this before we just had the show. We want to build great factors and we're a little bit edgy. I mean I've been called everything on Twitter from the Nostradamus of EUC to all kinds of, but we're aggressive, but I will tell you that if people watch me in Twitter, it's never, in the words of The Godfather, it's never personal. It's strictly business. So we have fun. We're a little edgy out there. We're in your face, we want to compete, we want to win every deal but it's never personal. I mean it's just like Steph Curry. You're going to compete hard on the court, but after the game, you go and have a drink with Kobe Bryant or Lebron James or whoever-have-you. >> Well final question, I didn't get this 'coz it's such a good product conversation and organization with your group, now you're heading up marketing, as the VMware, a very community-driven, very data-driven company, thoughts on marketing, you have it on social media, do you see social as being a part of marketing? Do you look at that? Do you look at certain ideas that you see that you put forth? >> First off I think Robin Matlock, our CMO has been doing an amazing job, so I told her this as I took over marketing and communications. Oliver Roll, our Chief Communications Officer is also doing great. Listen, I'm just going to throw more wood in the fire. Things are going good. Let's just get them from good to great. This show is one of the most cultistic shows on the planet because of the way in which she and her team have built this thing. It just gets better and better. But there's a few things I think you're going to see us do more. Customer-based marketing, having customers become our spokespeople. I dream of a day where every ad that we have is the biggest companies in the world or the smallest companies using our technology to either make their business more efficient or save lives. And then increasingly over time, we're going to be also doing vertical-based marketing in certain industries. And social media is a great way of getting that work across. >> We'll you've been on theCUBE as an SAP executive, now three years at VMware, certainly this is seven years you've been with CUBE and you guys do it right, so Robin and team and now you. Thanks for your support, appreciate everything. >> Thank you John and John. >> Sanjay Poonen, the General Manager, End Use Computing, and Global Head of Marketing for VMware here inside theCUBE. I'm John Furrier with John Troyer. You're watching theCUBE. (upbeat music)

>> 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)

>> 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. Now, here are your hosts, John Furrier and Stu Miniman. >> Welcome back, everyone. We're live here in Las Vegas for VMworld 2016. This is SiliconANGLE Media's theCUBE. It's our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier and my co-host this week, Stu Minniman, for three days of wall-to-wall coverage. Our next guest is the chairman and CEO of Dell Technologies, Inc., that's the first time we've actually used that. Congratulations on, I think last Thursday or Wednesday, the name officially became Dell Technology. Michael Dell, welcome back to theCUBE. >> Thank you. Super excited to be with you and obviously super excited about the formation of Dell Technologies as we bring together Dell and EMC and VMware and Pivotal and RSA and Virtustream and SecureWorks and so many other great organizations. >> So Dell Technology, now it's official, but EMC, Dell EMC is not yet official. Quick, give us the update. That's the number one thing people are asking. What's the update with the merger and the China situation. What's the quick update there from your standpoint? >> You know, we announced this back in October of last year and we're very much on track with the original timeline that we said, which was that we'd close between May and October of this year, and on the original terms. So everything is moving along and we're making great progress. >> Chinese government not playing monkey business with you, looking at the big mega-merger and thinking, whoa, slow down. >> We're continuing to work with them, and as I said, we're on track with the original schedule and terms that we said when we announced it back in October of last year. >> Exciting things on the global landscape, we'll get to that in a second. But I want to get your thoughts on VMworld because this is a geek show and this is a technology show and on the keynote they're showing debugging ports, migrating from the cloud, I mean you don't see that. You usually see the pomp and circumstance, all the glamour. Here, I mean you're a geek, you're always getting down and dirty with the technology. Thoughts on this community, because this is, these guys roll their sleeves up. And by the way, they're very vocal on social media so you can always get the Twitter feed, but your thoughts on VMworld, the culture of this ecosystem? >> I thought the demos that Guido showed were incredibly cool, showing sort of the evolution of virtualization to the software-defined data center to the hybrid cloud to now Cross-Cloud and all the things that you can do. And as you saw, live examples with Citibank and Columbia and J & J, these are real live organizations. And of course at VMworld you have the ecosystem of VMware in all of its glory, with the whole industry coming together and, as you said, a passionate group of individuals that are excited about what they're doing and VMware is kind of a big part of how the industry is evolving. And we're thrilled be an even bigger part of it now than we have been in the past. It's not my first time to come to VMworld, of course. >> But again, with now Dell Technologies looming, and the merger is going to be a big part of that. >> Yes. >> Technologies, and I'll ask that specific question later. But I do want to get your thoughts as someone who has been in the industry as a power broker, founder, CEO, now going private, you've seen all the waves of innovation. The ecosystem has become a really important part of it in your world there was the Wintel and the developer communities during those days, for the software business, aka the computer industry per se, but now we're on a new inflection point where the computer industry-like movement is happening with cloud and data center, hyper-converged environments. What does the ecosystem mean? Because we've seen the ecosystem kind of sitting there kind of waiting for this explosion with the cloud. Your thoughts on what the ecosystem means in this new era, vis-a-vis other times in history? >> You know, I don't see them waiting. You think about the kind of armada of companies that are coming along as the ecosystem evolves. Again, you see it out there on the show floor. You take NSX as an example. There's tremendous growth in software-defined networking. And NSX is kind of leading the way. And you see all the leading networking companies in the world here at VMworld using NSX as the platform for the software-defined network. It's just another great example. The original growth in the hypervisor and then into software-defined storage, software-defined networking and you can, if you look further on the show floor, right, you'll see kind of software-defined everything. And all aspects of the network, layers four through seven, eventually being virtualized. From the cutting edge -- >> John: So, virtualized stack. >> New things all the way to the mainstream and of course there's a lot of growth in our industry around converged and hyper-converged because it's making it easy to deploy these solutions in a rapid fashion and we're right in the middle of all this. >> So Michael, you speak pretty passionately about VMware and their role in the ecosystem. There's still a lot of noise out there that people I don't think understand how you're going to finance the debt and there's many people, like still during the keynote this morning, they're like, as soon as the deal's done, VMware is going to be sold off. Really, hardware companies don't want to do software. >> Absolutely incorrect. That's totally wrong. Anybody that says that has no clue what they're talking about. So look, I think first thing is you've got do do some math. If you look at the combined cash flows of Dell and EMC and VMware, what you find is they're many, many times greater than the debt service. And so we have, in fact, an advantage capital structure that allows us to not only do what we're doing and have tremendous scale and investment in innovation, roughly $4.5 billion annually invested in R & D, the largest enterprise systems company in the world, the strongest supply chain, and also have the speed and flexibility with some of these new startup instances. You guys are familiar with what we're doing with Pivotal and Cloud Foundry and all the great things that are going on there. With SecureWorks, with Boomi, so we've got both the speed and agility of a startup plus the scale and breadth with the broadest ecosystem and access to customers, and while we're here at VMworld, we're not just about VMware, right? Dell Technologies is a company that embraces all of the major ecosystems, be it the Microsoft ecosystem, the Linux and OpenStack and container ecosystems. So the hardware platforms that we're creating allow customers the broadest set of solutions to be able to stand up against their requirements. >> So back at Dell World, Michael, you talked about, you had Satya Nadella up on stage, how Microsoft fits and understanding, you know, in many ways Dell Technologies is an arms supplier to a lot of environments. You've got the enterprise data center. You've got the public cloud. Where do you see VMware in this evolving multi-cloud very varied ecosystem? >> I think if you look at VMware's business in the first half of this year, it's done quite well. And when I look at the trends for the forward outlook and kind of growth characteristics, VMware is making a very nice transition into this emerging cloud world. And it's doing that by taking the whole virtualization and software-defined technologies beyond the hypervisor into the whole software-defined data center. And things like the VMware Cloud Foundations make it a lot easier to do that, whether you're doing it on premise in a private cloud or whether you're a service provider, a telco, an IBM, for example. And I think you'll see others as well. And customers that have embranced VMware and of course there are 500,000 plus around the world, are looking for ways to be able to extend out to the public cloud. And the kinds of announcements you saw today with IBM, with the VMware Cross-Cloud initiative, will allow for this to extend deep into the public clouds. >> We're getting some questions from Twitter. I'll read a few of them here. Two questions. Have you met Chairman Chang and what's he like? And two, what of the technologies in the portfolio are you most excited about. And I asked VMware or Dell Technologies and they asked, both. So two questions. Have you met Chairman Chang and what's he like? And what technology are you most excited about? >> I have met a number of the distinguished folks over in China for sure, whether it be in one on one meetings or in group meetings and I'm over there on a pretty regular basis. China is the second largest market in the world for Dell to sell its products. So it's also the second largest economy in the world so that shouldn't be too surprising. But we have roughly $5.5 billion business in China, a big part of our supply chain. On the second question, you know, it's kind of like saying >> John: Your favorite child. >> Which of your children do you love the most, right? So that's not, you can get in a lot of trouble with that. But when I look across the whole -- >> We need to categorize here. I'll just rephrase the question because I think that's, I mean that's a political response, I get that. But let's go into, where do you see the disruption coming from? If you had to point out a disruptive enabler that is a lever for the portfolio, where would you look at and say okay, that's going to be a real enabling technology that's going to one, propel Dell on a domestic and global basis, and two, power the ecosystem? >> I think this digital transformation is real. And I think that we are at the very beginning of this period of time where the cost to make things intelligent is approaching zero and the number of them is going to explode. And so the influence and impact that our industry has on the world will expand geometrically as a result. And so the challenge that every organization is going to have, is how do you take all this information in real time and also in time series, because I think there will be some value to the historical data, and turn it into better insights, to be able to make better decisions, to make better products and services. And we're just at the very beginning of that. So, to me, that is the most exciting thing going on and obviously, we're right in the middle of that from lots of different perspectives. >> I've got to ask you a personal question. And I want to get your thoughts on this as someone who's been in the industry and is a chess master, 3D chess player, also running a big business, global business, billions of dollars. In 1994, Bill Gates wrote The Road Ahead and he talked about the future and he completely missed the internet in his forward-looking book. And I bring that up because now we're living in a time where IOT and autonomous vehicles, looking at digital state, digital transformation is a big part of that, so I ask the question, do you worry about missing something? I don't mean FOMO, fear of missing out, but there are big moves being made like technology in autonomous vehicles, drones, all this AI going on, machine learning, do you look at that and go hmmm. Is that on your mind, like maybe you might miss something and how do you handle that? >> It's a good point. If you look at all the smartest people in the industry, whatever that means, and you say what's their ability to predict what happens in five years, 10 years, 15 years, it's actually not been very good, right? And so that has been humbling, if somebody included me in that category of people that could try to do that. But we've got a lot of smart folks. I think we have, at the core of our company, this concept of having big ears, which means we want to listen and we want to learn. And our job is to take all these things that we're learning from our customers and all of our understanding of the core molecular elements of technology, and make the magic happen in the middle that go solves the problems that customers have. >> Do you see IOT and cars and this kind of consumer experience very real for Dell Technologies to play in? >> I think there's no question that the elemental cost of computing is declining and whenever you see that happening, you see, it's like a gas, right? It expands to fit the space available. And I think you'll absolutely see this explosion, proliferation, you're already seeing it. We have hundreds of IOT projects going already within our company and we know of many, many others, so it's real. >> It's in the early phase of the hype cycle. Michael, we've got to wrap but I want to ask one final question and then kind of wrap it up. Everyone wants to know, what's the future of VMware in your words, talk to the customers that are watching and the people in the ecosystem and employees and partners. What is the future of VMware in the Dell Technologies vision? >> I think VMware has got a very bright future. I've seen this in the past where people said, Oh, you know, the PC is dead so forget about Dell. Everything's going to the cloud, so forget about all these other companies. I don't think that's quite the way it all works. So what I see in VMware is an incredibly vibrant ecosystem that's getting stronger. I see VMware remaining independent and we're obviously the majority shareholder and helping to ensure the ecosystem stays very, very strong. And I see very exciting new things, like NSX. Extending the reach of virtualization technology well beyond the core original business of VMware which was a great business and continues to actually be a great business. >> Michael, thanks for spending the time, with your busy schedule, to join us on theCUBE. I appreciate it. Great to see you. Michael Dell here inside theCUBE. I'm John Furrier with Stu Miniman. You're watching theCUBE from SiliconANGLE Media. We'll be right back with more. I'm John Furrier with Stu Miniman. We'll be right back.

fly from the mandalay bay convention center in las vegas it's the q's covering via world 2016 rock you buy vmware and its ecosystem sponsors now here's your host John furrier hey welcome back everybody live here in Las Vegas the Mandalay Bay it to hang space at vmworld 2016 here in Las Vegas I'm John for John Truett tech reckoning you watching the cube our next guest is Patrick Osborne with HPE Enterprise HP Enterprise welcome back to the cube thank you yeah always great to be back here on the cube gotta love the energy day to rock and tonight's going to be the big night but you know day three and last night what coverage big unless that's just a opening night you know it is if one sees each other great show here vm roll out see the open ecosystem number one message we heard out of michael dell's mouth pat kelson is banging hard cross cloud which has been an HP strategy quite frankly for multiple years yeah see you guys in the middle with all the storage talk about your view on that ecosystem what's going on yeah i mean it's a huge very important ecosystem for us at HP we've been a partner of vmware for i think we're going on 16 17 years at this point right so we are definitely one of the the largest infrastructure partners for vmware and it's part of from a storage perspective it's a huge part of our ecosystem so everything from software-defined hyper converge 3par all flash all the data protection offerings a lot of that sits within the vmware ecosystem so huge partner for us and i don't see that changing okay so give us the update on the storage world obviously with the keynotes today you saw v san is exploding with depth vmworld urine product management so you have to kind of set the roadmap any changes errors has there been a lot of movement on the roadmap relative to the key features that cuz one obviously flashes Q you see that but what's going on in the product management side because it's kind of a moving train it seems to be gravitating around software for virtualized storage or storage as a service but what's the main points on that you're seeing the ships and where is it settling yeah so I from from my perspective from a product management view you know we were more of a software development organization in storage than we ever have been so the days of bending sheet metal and qualifying parts and making you know custom hardware is that's not the focus right the focus is in the software so you know when they talk about hyper converge the values in the software even when we talk about great operating systems and platforms like 3par all the value that is in the software so from us you know we gotta keep pace with some of the innovations there and it's clear that you know customers want the option of storage co-located with their compute and you know we do that through partnerships with vmware we have our own intellectual property on our own offerings around storevirtual and some of the hyper converged offerings we have so for me that from a product management standpoint that is definitely shifting into software very quickly talk a little more about storevirtual I'm very fascinated by the hyper converged market how it's developing the kind of customers that are that are you're seeing out there what are you seeing as the target market in the end the road map here that that we're seeing in front of us for hyper convergence original particular store virtual is a key component of that roadmap going forward for us we use it as an enabling technology for a number of form factors which is really important for us it's not just a virtual storage appliance that you bring your the software and then you bring your own x86 servers with different kind of media we use it for for example like two weeks ago we just launched a an arm-based I'll callable I scuzzy and fibre channel array right that's based on store virtual we can take that same intellectual property you can build your own software-defined hyper converge platform with that same IP we actually take that and embed it in appliances so we we have our own hyper converge offerings like the HD 380 so for us it's like this core piece of our software defined strategy that has a bunch of different formats that you know meet different use cases for customers in terms of the appliance kind of that market how are you seeing what what is the market for that who what kind of customers are you saying for that kind of um so storevirtual has been around for for some time we've got a number of deployments in different incantations we probably had over 250,000 deployments of that technology in the field and what we see is that some customers who have gone and let's say built their own hyper converge right so they're aggregating storage across multiple servers for virtualized storage that takes a degree of work to do that on your own right so some people like to do that some people don't and then they move to an appliance experience which for the HD 380 for example you can have that thing up and running and provisioning VMS in 15 minutes so having the ability to deliver from the factory a track scale a number of hyper converge appliances for folks that are doing at that scales it's pretty important right so we see customers who want that ease of use that simplicity you don't get as many knobs right in customization right but at the end of day do you really need that right so the 15 minute no nerd knob thing how important is that to you in terms of product management is that the future of the direction um for some customers yes right so it depends on which kind of custom you're talking about and which segment right if I'm let's say a smaller customer or i'd say like or even a remote office you know that doesn't have a lot of trained IT staff and they really know for example vmware right you want to make it as simple as possible you don't want to break context out of the UI that you use the most going to be they'll do all those tasks there so from a simplicity standpoint that's what you need when you need scale right and you need to be able to tune things for specific workloads then you want knobs right and to be able to provide both those form factors it's kind of unique for store virtual how do you guys approach now the vmware ecosystem has its as its evolving with the cloud you saw IBM cloud on stage sales scores on there today obviously very open open ecosystem is what they're really really working on what areas are you guys tweakin with vmware going forward with the key key intersection point so for us I you know we want to provide customers choice on the platforms so you know you're very you know well aware of our compute line right we've sell a dl 380 every time a baby's born and so you know we want to make sure that for our customers who are choosing vmware our infrastructure is the first of choice right servers networking storage and we want to put as much context into the VMware management plane you know to make that very simple for them to use and stand up in terms of strategy around some of the areas of plug it's Ron the management so being able to plug in to our one view infrastructure management plane and being able to support all those functions within VMware's it's pretty important to us in terms of the VMware ecosystem and training and ableman buying center are you as a product manager having to direct more of your attention again to the to the virtualization admin versus the maybe 10 years ago it was the storage admin absolutely so the days of dedicated storage admin especially a dedicated backup you know data protection admin even some of the folks on the networking side now right you have to be able to provide context within a virtualized world so a lot of that stuff is moving to other areas where you have I and screen capture in different places then you would break context and go into you know a storage widget or a networking widget or even go to your you know your favorite backup software so what we're seeing at HP is that we cus tomers are coming to us buying more vertically integrated systems so the whole kit and caboodle oh say I want a vertically orient you know integrated system from HP I want to buy another one from a you know another portfolio vendor and for us from a product management standpoint making all of those pieces work together seamlessly is the challenge right you want to drive as much complexity out of that it's possible where I don't have to rack servers I don't have to worry about fibre channel or I skazhi networking or VLAN tagging or all the things that go along with deploying a complex three-tiered architecture so for a from a product manager standpoint it's my goal to get those reduce those clicks you know keep the eyeballs focused on one simple Chris you you I that's that's the that's the Holy Grail about the customer environment right now what are the top conversations you're having with customers you can boil them down and what's the pattern that you're seeing is it changing is the narrative changed out so you guys have a great story with composable infrastructure love that messaging I came out of HP discover this year what so what are some of the substantive conversations can you rank them stack rank amor yeah they oh yeah hold the pattern people right so i need to you know i need to do more with less from an FTE perspective so i need to manage a in order of magnitude more infrastructure per FTE than i was doing three years ago that's you know that's a big one the second one is time to value so the days of entering a service ticket to get you know a full application stack to test you know your app your middle where your database and your storage that can't take 47 days anymore right you want to be able to submit that ticket and have an environment for your developers up and running within hours if not you know instantaneously because that's what they expect from the cloud right so that's a challenge for us we're getting some tweets here shop direct message one is I think this guy plays the Jazz so question is did playing jazz help your career in storage actually so yes very much so two on two fronts oh I play a lot of music so I'm up on stage a lot right so you better be able to bring it right when you got to bring the heat you got to bring the heat right and then you know from for jazz it's definitely you know you learn the changes right you learn the melody but you have to improvise right so at the end of the day you know and up in front of customers and obviously with two heavyweights like yourself you got to be able to do some tap dancing that's awesome well hey you know what and the cube is like a jazz band you're doing great step up in the big games it's always good to sit in you know it's kind of riff and see where the conversation goes up some style after you know go with the changes no real agenda just kind of get down yeah it's a good it's a good opportunity and it's good to see you congratulations all your success love seeing in person Patrick thanks for clearing the insights and storage final word what's your takeaway from vmworld just share with the folks what you're going to walk away with this year from the show every year I come here I think what L could you possibly do right you know you've seen it all but you every year I come here and it's you know whether it's a take on some older architectures like server-side caching with you know a company like de Triomphe or example or you see you know a high-end storage or reincarnated you always see some new stuff and people are doing new things where you didn't think there would be any space for any more innovation in this so that's for me as a kind of a nerd and a product manager and a tech geek like that I love that just seeing the new stuff every year yeah they definitely it's definitely a geek culture here at vmworld for sure that's why I love it and we are here breaking it down inside the cube at the in the Hang space on day two of vmworld 2016 I'm John forage for you be back with more you're watching the cube

live from Las Vegas it's the cute cuddly emc world 2016 brought to you by emc now here are your hosts John furrier and Dave vellante okay welcome back everyone we are here live at emc world 2016 SiliconANGLE media's the cube it's our flagship program we go out to the events and extract the signal from the noise i'm john for it my coast gave a lot there next is Robin Matlock was the CMO of VMware here on the cube cube alumni great to see you Robin thanks for joining us thanks happy to be here as always say no we just thought the jeremy bird news now the seam of gel technologies which he was illuminating the challenges of his branding challenge it's gonna be interesting to watch that happen but as a CMO you got to be plugged into all the themes so when i get your to get your thoughts on the show here and then you got the big show come up with vmworld what's your take on this because looking at the landscape there's a lot of change it's a challenge for marketers to try to make that message relevant what your thoughts of this show certainly the looming acquisition what's your thoughts on the show and how they're doing and and yeah so I think you have two big things there what's my thoughts on this show I think they've done a fabulous job Jeremy you know I go way back with Jeremy he's a fabulous market here one of the best in the industry and I mean this place is alive you know I think he has done some amazing creative things on stage on of you saw the keynote today I thought the James Bond thing was exceptional very entertaining keeps people engaged you know but also delivering really interesting content so I thought today's focus on cloud native was particularly interesting so I think he's doing a really good job of focusing on what people need to run their businesses today but also giving a nod out to the future and where the industry is going and the other thing that big discussion here I want to get your thoughts on this and is the first time pad Dell singers not here at emc world certainly a lot of hallway conversations it even surprised Joe Tucci who was Dave asked in the analyst session you know where's Pat guess was even on the cube every time so we had we miss you do not if you're watching this why isn't he here and just clear the air on the speculation of why he's not here there's a conspiracy theories are everywhere just let's clear the air on that first of all you guys crack me up if we run things the same every year you get bored you start coming up with all kinds of theories and rationale as to what's going on behind the scenes let me just put these rumors to rest Pascal singer is is fired up and excited about vmware and our future and the role we play in the dell technologies family as he ever has been when you do these events you think first and foremost what are the big messages or stories that i need to tell the marketplace it's no different than at vmworld then the second thing is who's the most appropriate person to come and tell these stories well the bottom line is the daily MC merger is probably one of the biggest most important messages that had to get covered here at emc world who's better to tell that story than Michael Dell and Joe Tucci right then there was a whole lot of great product information lots of new products being announced the best people to tell that are your CTOs your technical people we brought that you know some of the top talent from VMware ray o'farrell a longtime veteran of VMware was on stage yesterday talking about V realized in the control plane for a multi cloud world today KITT Kolbert you know one of the favorite VMware CTOs talking about cloud native so look there's nothing more to it than that Pat's alive and well trust me he's very engaged joe said that to the analyst he said look basically we only give Michael some time and we have all this product stuff to Paley's and that's a huge I mean they have a slew of announcements so it really took to summarize this is time slot issues they have been limited time on stage I mean Chad had to Russia's demo at the end so that seems to be the issue Michael needed to be out there up front obviously I don't even see it as an issue to be honest john i don't think it's an issue i think it's an opportunity at the end of the day what were the right things to cover what were the right speakers to cover those and you know I'm the one that called a shot for Pat I didn't think it was the right place i think really a rail farrell and kick Kolbert work yeah option kit was on the queue yesterday I'm all saurian given some great great commentary as well okay great so get that out of the way it's one of the clearly as a pat is our number one guest on the cube you know I don't you do that well there's number one Michael Dell I think it's given him a run for his money he's trying we're trying to see you at vmworld the corners let's talk about what's coming up because i see that pat will be on stage at vmworld so so he is going to have to put that together last year he delivered a really epic King no I thought it was very well done really talk about the future of the industry and vmware's role in it what's changed since then for you guys what can you share with us without you know tipping tipping the hand on the show theme because now we're gonna we were some almost there for vmworld last year to this year what's going on what's what's happening yeah I think there's gonna be a personal it'll be a lot of exciting things at vmworld and you have to be there delivered experience it firsthand we've laid out a vision for the industry and a lot of what we're doing is delivering on that vision I think there's things rapidly changing in our world that we know that for example cloud is changing every year there's kind of a new dimension to what's happening and how people are using clouds we think there's tremendous opportunities as we think about multiple clouds on how our customers are thinking about their workloads in a multi cloud world so I think you'll find a lot of interesting things we're doing in that front the whole roll of business mobility continues to evolve and change how does that relate to how I'm running my business on-premise or in the cloud I think you'll find a lot of neat things in that area and then this big wave of modern applications at the end of the day we're running our business on these big mission critical applications but the rapid iterative development process is really fundamentally changing the kind of value we can deliver back to the business and what we need to support that and do that as IT organizations to our line of business to people like me yeah CMOS who consume applications like nobody else in the business they don't excuse me you'll find a lot of focus on those areas well VMware has become such a strategic part of customers you know roadmaps and it's not just VMware it's the entire ecosystem that's what makes vmworld the best show this is the best enterprise show because everybody's there it's usually in San Francisco hey yeah is an awesome place to be I've got some additions on that we're in Vegas this year we I love it in our home turf in San Francisco we do to bottom line is mosconi's going through a lot of construction right now is there don't maybe the experience if you know is right for our great it's still the best under pressure because it is such a community and so you've got it you know you've got to keep elevating that right so you got the core technical content have some fun we saw some fun you know today so can you tell us kind of you know generally what we can expect this year yeah well first of all I think the audiences are evolving and you know our core traditional VI admin you know your virtual infrastructure admin of course that is the essence of the participation at vmworld but trust me new audience types are joining and coming to this event the networking side of the house you're seeing a lot more engagement participation their storage frankly there's overlap people come here they also go to vmworld your DevOps community is starting to find great value in a program like a vm world um some business executives but I'd say it is foundation it's a technical conference and it's the architects the CTOs and the class he updated the digital transformation I know that the air wash purchase was one that was a really good deal Sanjay poonen lead senior leader over there that the company has been doing very very well I've been seeing some updates on that what's going on with that cuz that's gonna bring in a whole nother IOT / application global peace any updates there from digital transformation conversations because at the end of the day as a CMO I feel like I'm at the tip of the spear of digital transformation you know I'm pushing the envelope about how we look at analytics and business intelligence and how we change the experience with our engagement with customers and partners how do I serve content more dynamically more relevant based on digital profiles that people who come and engage with us so i love this conversation and you know i think at the heart of all that we're doing is to accelerate digital transformation and make sure that I t plays the right critical role in that because the end of the day line of business has options and they are driving sometimes around IT but this is a really fantastic went for IT to be the experts in software software agility and really building apps for the business that are more relevant and you know really helpful and that I think is what VMware can really accelerate you mentioned the analytics I have a question for you around can you or how can you operationalize those analytics so you know traditionally the analytics have been insights for a few you gotta line up bill the cube takes forever how are you able to or are you able to operationalize those endings put those tool those tools in the hands of the people that can actually affect digital engagement in the front lines I think there's two dimensions to that I mean first of all you have to build your analytics environment on top of an agile infrastructure because at the end of the day the foundation has to be agile enough to serve a variety of different requirements changing requirements so you know obviously we have a big play on infrastructure infrastructure as a service and the foundations of that and the kind of root challenges their networking big bottleneck right so i might have this great infrastructure to compute on demand but I can't get my networking put you know protocols in place security risk things like that but then on the other hand you have to be able to consume these applications analytics is just one of many how do we ensure that i can get that out to my user community in the device form factor that they choose all controlled and governed effectively by me as an IT i think that really plays to both ends of the vmware strategy what we're doing in business mobility to allow you to transform experiences in engagement with customers and partners and employees but that also what we're doing kind of at the foundational level to ensure that the foundation can support these high demand applications that are distributed that micro services are a very different architecture from you know yesterday's are you doing that with your your team I mean you're gonna dogfooding that capability I don't know yeah vmware is one of the largest you know we are one of the biggest customers were the first customer for our technologies if i had my phone with you i could show you workspace one how i have access to my apps one button one push all completely under governance and control that's really the future of vmware it's the really the new form of user consumption of technology you guys are trying to make it easy your stand-up apps like workspaces and what not workspace one is breakthrough it's really break through and it you're right we're usually not engaging at the consumer level of enterprise right we're usually the back office were in that data center we're kind of in the bowels of IT but workspace one puts us forefront we're on the device now the user knows who vmware is now they're engaging with our applications and think it's really streamlined their experience to give them access to any app with one thumb print yeah and you know religious thing you've always been an enabling technology for innovation now it's moving up the stack so it's very interest to see that progress final question is that on that front I get that that's great news on the ecosystem what's change with the ecosystem because you know as you said vm was a very technical community yeah very engaging you don't have you have your shin you haven't they don't have your share fair of people who like to raise their hand and telling what do you think so a great active community so what are they saying what's the feedback from the community what are people raising their hands and and and saying and to you guys and and what's the conversation like right now I mean first of all um feedback from our ecosystem is fabulous i mean vmworld is really great case that he go look at the solutions exchange at vmworld it's just buzzing i can tell you we've pretty much are almost not quite but almost sold out of all the real estate that we have to offer in Vegas when we come here in late August I think that you could system that was changing evolving but you have really great evidence of new things happening I mean look at the X rail that got announced here between VMware and EMC look at the new pivotal cloud foundry photon platform bundle that we just announced last week you know so some real solutions orientation coming together in these partnerships and of course the broad ecosystem relative to cloud I think sis and SOS are getting very engaged with VMware in new ways we have a rich channel program I definitely think cloud providers service providers that's a kind of evolving and definitely growing part of our ecosystem and then I think even some of the traditional partners that we've had in the past you're seeing more solution oriented focus from those types of partnership Robin thanks so much for taking the time out of your busy schedule to come share your insights on the cube anytime great Robin Matlock the CMO of VMware here sharing her thoughts about the industry in the show and also the upcoming vmworld 2016 which will be in Mandalay Bay this year not San Francisco because Moscone is going to be half under construction so got to do a little you know interim step here should be a great show it'll be our seventh VMware world this year like EMC we all started there so I want to thank you for all the support and appreciate enabling us to be successful thank you so much always a pleasure Robin Matlock on the cube I'm John Faraday volante you're watching the cube looking back at the history of Dell