>>We're seeing green here at Vemo in 2022, you're watching the cube, Dave ante and David Nicholson wrapping up our second day of coverage. Dave, good show. Good to be, you know, again, good to be back. This is our third show in a row. We're a Cuban as well. So the cube is, is out there, but same every, every show we go to so far has been most of the people here haven't been out in two plus years. Yeah. Right. And, and, and they're like, Hey, let's go. Let's hug. Let's shake. I got my red band on cuz we've been on a lot of shows or just being careful <laugh> um, you know, Hey, but it's great to see people back, uh, >>Absolutely >>Such a different vibe than virtual virtual sucks. Everybody hates it now, but now it's going hybrid. People are trying to figure that out. Yeah. Uh, but it's, it's in your view, what's different. What's the same >>In terms of, uh, in person versus hybrid kind of what's happened since what's >>Different being here now versus say 2019, not that you were here in 2019, but a show in 2019. >>I, I think there's right now, there's a certain sense of, uh, of appreciation for the ability to come and do this. Mm-hmm <affirmative> um, >>As opposed to on we or oh, another show, right? >>Yeah. Yeah, exactly. And, and, uh, a personal opinion is that, um, I think that the hybrid model moving forward is going to end up being additive. I don't know that I don't, you know, people say we'll never go back to having in person the way we did before. Um, I'm holding out hope that that's not the case because I, I think so there's so much value to the kinds of conversations that we have, not only here on the set with folks in person, but just the hallway conversations, uh, the dinner conversations, um, those are so critical, uh, not only with between vendors and customers, but between different business units. Um, you know, I, I, I came into this thinking, you know, I know Veeam very well. I've known them since the beginning. Um, but you think I'm going to a conference to talk about backup software and it wasn't like that at all. I mean, this is, this is an overarching, very, very interesting subject to cover. So how is it different? I think people are appreciative. I wouldn't say we're backed full throttle a hundred percent, um, uh, back in the game yet. But, uh, but we we're getting there. Some >>Of the highlights Veeam now, number one, statistical tie for first place in revenue. There aren't a lot of segments, especially in storage where Dell is not number one, I guess technically Dell is like, I don't know, half a percentage point ahead, but Veeam's gonna blow by that. Unless Dell gets its data, >>Protect me as the luxury of focus, they can focus >>Like a laser on it focus. Right? That, that we, we saw this in the P PC where focused, we saw Dell's ascendancy cuz they were focused on PCs, right? Yeah. We saw Seagate on dis drives Intel and microprocesors Oracle on databases and, and, and Veeam applied that model to what they call modern data protection. Um, and, and the, so the reason why we think they're gonna go past is they growing at 20 plus percent each year. And, and I can almost guarantee Dell's data protection business isn't although it's been in a, I, I sense a downward slope lately, they don't divulge that data. Um, but if they were growing nicely, they would be talking about it. So I think they've been kind of hiding that ball, but Dell, you know, you can't count those guys out they're baby. >>No, you can't. And there's always >>A, they don't like to lose. They get that EMC DNA still in >>There. Yeah. You take, you can, you might take your eye off the ball for a little while to focus on other things. But uh, I think it'll be healthy for the industry at large, as Veeam continues to take market share. There's definitely gonna be pushback from, from others in the field, but >>The pure software play. Um, and you know that no hardware agenda thing and all that I think is, is clearly in Veeam's favor. Uh, but we'll see. I mean, Dell's got other, other strengths as do others. I mean, this is, this is, let's not forget this, this, this market is crowded and getting kind. I mean, you got, you got other players, new, new entrants, like cohesive in Rubrik Rubic, by the way is the one I was kind of referring to. That seems to be, you go to their LinkedIn, they seem to be pivoting to security. I was shocked when I saw that. I'm like, wow, is that just like a desperation move? Is that a way to get your valuation up? Is that, is there something I'm missing? I, I don't know. I haven't talked to those guys in a little bit, need to get, get there, but cause he and Rubrik couldn't get to IPO prior to, uh, you know, the, the, the, the, the tech sell off the tech lash. >>If you will Veeam, didn't need toves. We have 30% EBITDA and, and has had it for a while. So they've been, they caught lightning in a bottle years ago, and then now they got the inside capital behind them. Um, you got new entrance, like, like Kuo, you got com. Vault is out there. You still got, you know, Veritas is still out there competing and you know, a number of other, you get you got is wherever HP software landed in, in the MicroStrategy, uh, micro strategy. <laugh> um, no not micro strategy anyway, in that portfolio of companies that HP sold its software business to, you know, they're still out there. So, you know, a lot of ways to, to buy backup and recovery software, but these guys being the leader is no surprise. >>Yeah. You know, it's, I, I, I have to say it to me. It's a classic story of discipline >>Microfocus, sorry, >>Microfocus. Yeah, that's right. That's right. You know, it's funny. I, I, I could see that logo on a, I know I've got a notebook at home. Um, but, but theme is a classic example of well disciplined growth where you're not playing the latest buzzword game and trying to create adjacent businesses that are really, that might sound sexy, but have nothing to do with your core. They've been very, very disciplined about their approach, starting with, you know, looking at VMFS and saying, this is what we're gonna do, and then branching out from there in a logical way. So, so they're not out ahead of the tips of their skis in a way that some others have have gotten. And those, you know, sometimes swinging for the fence is great, but you can strike out that way also. And they've been hitting, you know, you could say they've been hitting singles and doubles just over and over and over again for years now. Well, that's been a great strategy. >>You've seen this a lot. I mean, I, I think you watched this at EMC when you were there as you, it was acquisitions to try to keep the growth up. It was, it was great marketing. I mean, unbelievable marketing cloud meets big data. Oh yeah. And you'd hear on CNBC. AMC is the cloud company. You're like, eh, fucking have a cloud. So, so you, you you've seen companies do that to your point about getting ahead of your skis. VMs never done that EMS like, eh, this is the product that works great. Yeah. Customers love it. They buy it, you know, we got the distribution channel set up and so that's always been, been, been part of their DNA. Um, and I think the other piece is putting meat on the bone of the tagline of modern data protection. When I first heard that I'm like, mm, okay. >>But then when you peel the onion on that, the core is back up in recovery, a lot of focus on recovery. And then the way they, I remember it was there in the audience when they announced, you know, support for bare metal, people went crazy. I'm like, wow, okay. They cuz they used to say, oh, never virtualization forever. Okay. So they beat that drum and you never say never in this business, do you, and then moving on to cloud and hybrid and containers and we're hearing about super cloud now, and maybe there'll be an edge use case there it's still unclear what that pattern is. You've talked about that with Zs, but it's not clear to me where you put your muscle yet in, um, in edge, but really being able to manage all that data that is people talk about data management that starts to be data management. And they've got a footprint that enables 'em to do that. >>Yeah. And, and I'd like to see that same discipline approach. That's gotten them here to continue no need to get on board a hype cycle. Um, what I really love from a business execution perspective from Veeam is the fact that they know their place in terms of the, their strategic advisory role for end user customers and their places largely in partnership with folks in the channel partners, large and small, um, in a couple of the conversations we had over the last few days, we talked about this idea that there are fewer and fewer seats at the table. Uh, working with customers, customers can't have 25 strategic vendor partners and a lot of smaller niche players that focus on something even as important as backup will pretend that they are, that they hold the same sort of strategic weight as a hyperscale cloud provider. Does they pretend that they're gonna be there in the CX O meetings? Um, when they're not Veeam knows exactly how to best leverage what they do with customers and that's through partners in the channel. >>The other thing is, um, new CEO, a non Eron, uh, the fifth CEO, I think I'm correct. Is that right at, at VE yes. Um, so two founders, uh, and then when Peter McKay came on, he was co CEO. Um, and then, um, yep. And let's see, I think yep. You the fifth. Okay. So each of the CEOs kind of had their own mark. Right. Um, and we asked an on in the analyst thing, what do you want your legacy to be? And I, I loved his answer. He's like, this is a fragmented business with a lot of adjacencies and we are the leader in revenue, but we only have 12% revenue share. I want to take that to 25%, 40%. That's like EMC at 30 plus percent of the storage market, Cisco of 60% of the networking market. Wow. If anybody could ever get there, but so 25 to 30% of a market that's that's big. Yeah. I liked his demeanor thought he had a really good style philosophy. Well-spoken well spoken. So new leadership, obviously insight brought him in to take them to the next level. Um, and, and really drive. I gotta believe get ready for IPO. We kind of admitted that. >>Yeah. And I, and IPO for them, one thing he mentioned is that, um, in this case, this is not an IPO let's high five and go to Vegas and get table service because now we finally have money. Uh, they're not doing, you know, obviously an injection in capital from an IPO is always a good thing or should be a good thing if handled properly, but that's not their primary driver. So it'll be very interesting to see if they can hit the timing. Right. Um, how that, how that works out >>Well and, and bill large is his was predecessor. Uh, he, he, he took over, uh, once the company, excuse me, went private. Um, >>Yeah, that phone backed up. >>I still good in the mic once the company went private, uh, well, no, they were always private. Once they got acquired for five plus billion dollars from inside capital, um, they, they put bill in charge, perfect choice for the transition. And it was like, okay, bill. It's like, when you, my brother's a sailor. He says, Hey, take, take the wheel, see that lighthouse or see that tree go for it, keep it on track. And that's what bill did. Perfect. And he knew the company knew where all the skeletons were buried and, and was perfect. Perfect transition for that. Now they're bringing in somebody who they feel can take it to the next level. They're at a billion. He said he could see 5 billion and, and beyond. So that's kind of cool. Um, the other thing was ecosystem as companies got a really robust ecosystem, all the storage array vendors came on. >>The, the, the backup appliance companies, you know, came on to the cube and had a presence here. Why? Because this is where all the customers are. This is the leader in backup in recovery. Yeah. They all want to partner with that leader. Now they're at out the other shows as well, uh, for the Veeam competitors, but frankly, Veeam, Veeam competitors. They don't have, like you said, they're pure play. Many of them don't have a show like this, or it's a smaller event. Um, and so they gotta be here. Uh, and I think the, the, the other thing was the ransomware study. What I really liked about Veeam is they not only just talked about it, they not only talked about their solution. They sh they did deep dive surveys and shared a ton of data with guys that knew data. Um, Dave Russell and Jason Buffington, both former analysts, Russell was a Gartner very well respected top Gartner analyst for years. Jason buff, Buffington at ESG who those guys did always did some really good, still do deep research. So you had them representing that data, but sharing it with the community, of course, it's, it's gonna be somewhat self-serving, but it wasn't as blatant. It that wasn't nearly as blatant as I often see with these surveys, gender surveys, I'll look at 'em. I can tell within like, seconds, whether it's just a bunch of marketing, you know, what, or there's real substance. Yeah. And this one had real substance to >>It. Yeah. And it's okay. When substance supports your business model. >>Yeah. Cool. >>It's great. Good >>Marketing. But yeah, as an best marketing, I'm not gonna use it. The whole industry can use this and build on it. Yeah. I think there were a lot of unanswered questions. I, what I love about Vema is they're going back and they, they did it in February. They, they updated it just recently. Now they're going back and doing more cuz they want to get it by country. So they're making investments. And then they're sharing that with the industry. I love that. >>It'll be interesting to see if they continue it over time, how things change if things change. Um, one of the things that we really didn't talk a lot about is, uh, and you know, it's, I know it's talked about behind closed doors, um, this idea of, uh, stockpiling day zero exploits, and the fact that a lot of these, these >>Things, >>A lot of these problems arguably could have been headed off, had our taxpayer funded organizations, shared information with private industry in a more timely fashion. Um, um, we had, um, uh, uh, was it, uh, Gina from AWS who gave the example of, uh, the not Petia, uh, experience in the hospital environment. And that came directly out of frankly a day zero exploit that the NSA had identified years earlier within Microsoft's operating system. And, uh, somehow others got ahold of that and used it for nefarious means. So the intent to stockpile and hang onto these things is always, um, noble, but sometimes the result is, uh, less than desirable. So that's, it'll be an interesting conversation. >>We'd be remiss if we didn't mention the, the casting acquisition, the, the, the container data protection, small piece of the business today. Uh, but strategic in the sense that, yeah, absolutely. If you want to appeal to developers, if, if, if, if, if you want to be in the cloud, you know, you better be able to talk containers generally in Kubernetes specifically. So they gotta play there as well. >>Well, they, they, they hit virtualization cloud containers. Maybe I'm missing something in between, but they seem to be >>Ransomware >>Catching waves effectively. Yeah. Ransomware, uh, catching waves effectively, uh, again, not in an artificial buzzword driven way, but in a legitimate disciplined business growth approach that, uh, that's impressive. >>And I, and I think Danny mentioned this, we, he said we've been a PLG product led growth company. Um, and I think they're evolving now. We talked about platforms versus product. We still got still a product company. Uh, but they're bill wants to build out a Supercloud. So we're watching that very closely. I, I think it is a thing. You got a lot of grief for the term, super cloud. Some people wince at it, but it's, there's something brewing. There's something different. That's not just cloud public cloud, not hybrid cloud, not private cloud it's across cloud it's super cloud. All right, Dave, Hey, it was a pleasure working with you this week. Always kind of funny. I mean, we're, the crew was out in, uh, in Valencia, Spain. Yeah. Uh, they'll in fact, they'll be broadcasting, I believe all the way through Friday. Uh, that's an early morning thing for the, uh, for the west coast and, but east coast should be able to catch that easily. >>Of course you can all check out all the replays on the cube.net, also YouTube, youtube.com/silicon angle go to wikibon.com. There's some, you know, research there I publish every week and, and others do, uh, as well, maybe not as frequently, but, uh, we have a great relationship with ETR. I'm gonna poke into some data protection stuff in their survey. See if I can find some interesting, uh, data there. And don't forget to go to Silicon an angle.com, which is all the news. This is the cube, our flagship production we're out at VEON 2022. Thanks for watching.

>>The cube is back at Vemo 2022. I was happy to be live. Dave ante, Dave Nicholson and Dave Russell three Daves. Dave is the vice president of enterprise strategy at Veeam. Great to see you again, my friend. Thanks for coming >>On. Uh, it's always a pleasure. And Dave, I can remember your name. I can't remember >>Your name as well. <laugh> so wow. How many years has it been now? I mean, add on COVID is four years now. >>Yeah, well, three, three solid three. Yeah, Fallon blue. Uh, last year, Miami little secret. We're gonna go there again next year. >>Okay, so you joined Veeam >>Three. Oh, me four. Yeah, >>Yeah, yeah. Four is four, right? Okay. Wow. >>Um, time flies, man. >>Interesting. What your background, former analyst analyze your time at Veeam and the market and the changes in the customer base. What, what have you seen? What are the big takeaways? Learnings? >>Yeah. You know, what's amazing to me is we've done a lot more research now, ourselves, right? So things that we intuitively thought, things that we experienced by talking to customers, and of course our partners, we can now actually prove. So what I love is that we take the exact same product and we go down market up market. We go across geographies, we go different verticals and we can sell that same exact product to all constituencies because the differences between them are not that great. If it was the three Dave company or the 3m company, what you're looking for is reliable recovery, ease of use those things just transcend. And I think there used to be a time when we thought enterprise means something very different than mid-market than does SMB. And certainly your go to market plans are that way, but not the product plans. >>So the ransomware study, we had Jay buff on earlier, we were talking about it and we just barely scratched the surface. But how were you able to get people to converse with you in such detail? Was it, are you using phone surveys? Are you, are, are you doing web surveys? Are you doing a combination? Deep >>Dives? Yeah. So it was web based and it was anonymous on both ends, meaning no one knew VE was asking the questions. And also we made the promise that none of your data is ever gonna get out, not even to say a large petroleum company, right. Everything is completely anonymized. And we were able to screen people out very effectively, a lot of screener questions to make sure we're dealing with the right person. And then we do some data integrity checking on the back end. But it's amazing if you give people an opportunity, they're actually very willing to tell you about their experience as long as there's no sort of ramification about putting the company or themselves at risk. >>So when I was at IDC, we did a lot of surveys, tons of surveys. I'm sure you did a lot of surveys at Gartner. And we would look at vendor surveys like, eh, well, this kind of the questions are rigged or it's really self-serving. I don't sense that in your surveys, you you've, you've always, you've still got that independent analyst gene. Is that, I mean, it's gotta be, is it by design? Is it just happen that ransomware is a topic that just sort of lends itself to that. Maybe you could talk about your philosophy there. >>Yeah. Well, two part answer really, because it's definitely by design. We, we really want the information. I mean, we're using this to fuel or inform our understanding of the market, what we should build next, what we should message next. So we really want the right data. So we gotta ask the right questions. So Jason, our colleague, Julie, myself, we work really hard on trying to make sure we're not leading the witness down a certain path. We're not trying to prove our own thesis. We're trying to understand what the market really is thinking. And when it comes to ransomware, we wanna know what we don't know, meaning we found a few surprises along the way. A lot of it was confirmational, but that's okay too. As long as you can back that up, cuz then it's not just Avenger's opinion. Of course, a vendor that says that they can help you do something has data that says, they think you uni have a problem with this, but now we can actually point to it and have a more interesting kind of partnership conversation about if you are like 1000 other enterprises globally, this may be what you're seeing. >>And there are no wrong answers there. Meaning even if they say that is absolutely not what we're seeing. Great. Let's have that conversation that's specific to you. But if you're not sure where to start, we've got a whole pool of data to help guide that conversation. >>Yeah. Shout out to Julie Webb does a great job. She's a real pro and yes. And, and really makes sure that, like you say, you want the real, real answers. So what were some of the things that you were excited about or to learn about? Um, in the survey again, we, we touched just barely touched on it in 15 minutes with Jason, but what, what's your take? Well, >>Two that I'd love to point out. I mean, unfortunately Jason probably mentioned this one, you know, only 19% answered when we said, did you pay the ransom? And only 19% said, no, I didn't pay the ransom. And I was a hundred percent successful in my recovery. You know, we're in Vegas, one out of five odds. That's not good. Right? That's a go out of business spot. That's not the kind of 80 20 you want to hear. That's not exactly exactly. Now more concerning to me is 5% said no ransom was asked for. And you know, my phrase on that is that's, that's an arson event. It's not an extortion event. Right. I just came to do harm. That's really troubling. Now there's a huge percentage there that said we paid the ransom about 24% said we paid the ransom and we still couldn't restore the data. So if you add up that 24 in that five, that 29%, that was really scary to me. >>Yeah. So you had the 19%. Okay. That's scary enough. But then you had the wrecking ball, right? Ah, we're just gonna, it's like the mayhem commercial. Yes. Yeah. See ya. Right. Okay. So <laugh>, that's, that's wild. So we've heard a lot about, um, ransomware. The thing that interests me is, and we've had a big dose of ransomware as analysts in these last, you know, 12, 18 months and more. But, but, but it's really escalated. Yeah. Seems like, and by the way, you're sharing this data, which is amazing. Right. So I actually want to dig in and steal some of the, the data. I think that's cool. Right? Definitely. You gave us a URL this morning. Um, so, but you, your philosophy is to share the data. So everybody sees it, your customers, your prospects, your competitors, but your philosophy is to why, why are you sharing that data? Why don't you just keep it to yourself and do it quietly with customers? >>Yeah. You know, I think this is such a significant event. No one vendor's gonna solve it all. Realistically, we may be tied for number one in market share statistically speaking, but we have 12.5%. Right. So we're not gonna be able to do greater good if we're keeping that to ourselves. And it's really a notion of this awareness level, just having the conversation and having that more open, even if it's not us, I think is gonna be beneficial. It speaks to the value of backup and why backup is still relevant this day and age. >>I dunno if you're comfortable answering this, but I'll ask anyway, when you were a Gartner analyst, did you get asked about ransomware a lot? >>No. >>Very rarely or never. >>Almost never. Yeah. And that was four years ago. Literally. Like it >>Was a thing back then, right? I mean it wasn't of course prominent, but it was, it was, I guess it wasn't that >>20 16, 20 17, you know, it's, it's interesting because at a couple of levels you have the, um, the willingness of participants to share their stories, which is a classic example of people coming together to fight a common fo. Yeah, yeah. Right. In the best of times, that's what happens. And now you're sharing that information out. One of the reasons why some would argue we've gotten to this place is because day zero exploits have been stockpiled and they haven't been shared. So you go to, you know, you go, you go through the lineage that gets you to not pet cat as an example. Yes. And where did it come from? Hey, it was something that we knew about. Uh, but we didn't share it. Right. We waited until it happened because maybe we thought we could use it in, in some way. It's, it's an, it's an interesting philosophical question. I, I don't know. I don't know. I don't know where, if that's, uh, the third, it's the one, the third rail you don't want to touch, but basically we're, we are, I guess we're just left to sort through whatever, whatever we have to sort through in that regard. But it is interesting left to industry's own devices. It's sharing an openness. >>Yeah. You know, it's, I almost think it's like open source code. Right? I mean, the promise there is together, we can all do something better. And I think that's true with this ransomware research and the rest of the research we do too. We we've freely put it out there. I mean, you can download the link, no problem. Right. And go see the report. We're fine with that. You know, we think it actually is very beneficial. I remember a long time ago, it was actually Sam Adams that said, uh, you know, Hey, there's a lot of craft brewers out there now, you know, is, are you as a craft brewery now? Successful? Are you worried about that? No. We want every craft brewery to be successful because it creates a better awareness. Well, an availability market, it's still Boston reference. >>What did another Boston reference? Yes. Thank you, >>Boston. And what <laugh>. >>Yeah. So, you know, I, I, I feel like we've seen these milestone, you know, watershed events in, in security. I mean, stucks net sort of yeah. Informed us what's possible with nation states, even though it's highly likely that us and Israel were, were behind that, uh, the, the solar winds hack people are still worried about. Yes. Okay. What's next. Even, even something now. And so everybody's now on high alert even, I don't know how close you guys followed it, but the, the, uh, the Okta, uh, uh, breach, which was a fairly benign incident. And technically it was, was very, very limited and very narrow in scope. But CISOs that I talked to were like, we are really paranoid that there's another shoe to drop. What do we do? So the, the awareness is way, way off the charts. It begs the question. What's next. Can you, can you envision, can you stay ahead? It's so hard to stay ahead of the bad guys, but, but how are you thinking about that? What this isn't the end of it from your standpoint? >>No, it's not. And unfortunately it's because there's money to be made, right? And the barrier to entry is relatively low. It's like hiring a Hitman. You know, you don't actually have to even carry out the bad act yourself and get your own hands dirty. And so it's not gonna end, but it it's really security is everyone's responsibility. Veeam is not really a full time security company, but we play a role in that whole ecosystem. And even if you're not in the data center as an employee of a company, you have a role to play in security. You know, don't click that link, lock the door behind you, that type of thing. So how do you stay ahead of it? I think you just continually keep putting a focus on it. It's like performance. You're never gonna be done. There's always something to tune and to work on, but that can be overwhelming. So the positive I try to tell someone is to your point, Dave, look, a lot of these vulnerabilities were known for quite some time. If you were just current on your patch levels, this could have been prevented, right? You could have closed that window. So the thing that I often say is if you can't do everything and probably none of us can do something and then repeat, do it again, try to get a little bit better every period of time. Whether that's every day, every quarter, what case may be, do what you can. >>Yeah. So ransomware obviously very lucrative. So your job is to increase the denominator. So the ROI is lower, right? And that's a, that's a constant game, right? >>Absolutely. It is a crime of opportunity. It's indiscriminate. And oftentimes non-targeted now there are state sponsored events to your point, but largely it's like the fishermen casting the net out into the ocean. No idea with certainty, what's gonna come back. So I'm just gonna keep trying and trying and trying our goal is to basically you wanna be the house on the neighborhood that looks the least inviting. >>We've talked about this. I mean, any, anyone can be a, a, a ransomware as to go in the dark web, ransomware's a service. Oh, I gotta, I can put a stick into a server and a way I go and I get some Bitcoin right. For it. So, so that's, so, so organizations really have to take this seriously. I think they are. Um, well you tell me, I mean, in your discussions with, with, with customers, >>It's changed. Yeah. You know, I would say 18 months ago, there was a subset of customers out there saying vendors, crying Wolf, you know, you're trying to scare us into making a purchase decision or move off of something that we're working with. Now. I think that's almost inverted. Now what we see is people are saying, look, my boss or my boss's boss's boss, and the security team are knocking on my door asking, what are we gonna do? What's our response? You know, how prepared are we? What kind of things do we have in place? What does our backup practice do to support ransomware? The good news though, going back to the awareness side is I feel like we're evangelizing this a little less as an industry. Meaning the security team is well aware of the role that proper backup and availability can play. That was not true. A handful of years ago. >>Well, that's the other thing too, is that your study showed the closer the practitioner was to the problem. Yes. The more problems there were, that's an awareness thing. Yes. That's not a, that's not, oh, just those guys had visibility. I wanna ask you cuz you've You understand from an application view, right. There's only so much Veeam can do. Um, and then the customer has to have processes in place that go beyond just the, the backup and recovery technology. So, so from an application perspective, what are you advising customers where you leave off and they really have to take over this notion of shared responsibility is really extending beyond cloud security. >>Yeah. Uh, the model that I like is interestingly enough, what we see with Caston in the Kubernetes space. Mm-hmm <affirmative> is there, we're selling into two different constituencies, potentially. It's the infrastructure team that they're worried about disaster recovery. They're worried about backup, but it's the app dev DevOps team. Hey, we're worried about creating the application. So we're spending a lot of focus with the casting group to say, great, go after that shift, left crowd, talk to them about a data availability, disaster recovery, by the way you get data movement or migration for free with that. So migration, maybe what you're first interested in on day one. But by doing that, by having this kind of capability, you're actually protecting yourself from day two issues as well. >>Yeah. So Let's see. Um, what haven't we hit on in this study? There was so much data in there. Uh, is that URL, is that some, a private thing that you guys shared >>Or is it no. Absolutely. >>Can, can you share the >>URL? Yeah, absolutely. It's V E E so V two E period am so V with the period between the E and the a forward slash RW 22. So ransomware 22 is the research project. >>So go there, you download the zip file, you get all the graphics. Um, I I'm gonna dig into it, uh, maybe as early as this, this Friday or this weekend, like to sort of expose that, uh it's you guys obviously want this, I think you're right. It's it's it's awareness needs to go up to solve this problem. You know, I don't know if it's ever solvable, but the only approach is to collaborate. Right. So I, I dunno if you're gonna collaborate with your head-to-head competitors, but you're certainly happy to share the data I've seen Dave, some competitors have pivoted from data protection or even data management to security. Yes. I see. I wonder if I could run a premise by, I see that as an adjacency to your business, but not sort of throwing you into the security bucket. What are your thoughts on that? >>Yeah. You know, certainly respect everything other competitors are doing, you know, and some are getting very, you know, making some good noise and getting picked up on that. However, we're unapologetically a backup company. Mm-hmm, <affirmative>, we're a backup company. First. We're worried about security. We're worried about, you know, data reuse and supporting shift, left types of things, but we're not gonna apologize for being in the backup availability business, not, not at all. However, there's a role that we can play. Having said that that we're a role. We're a component. If you're in the secondary storage market, like backup or archiving. And you're trying to imply that you're going to help prevent or even head off issues on the primary storage side. That might be a little bit of a stretch. Now, hopefully that can happen that we can go get better as an industry on that. >>But fundamentally we're about ensuring that you're recoverable with reliability and speed when you need it. Whether we're no matter what the issue is, because we like to say ransomware is a disaster. Unfortunately there's other kind of disasters that happen as well. Power failures still happen. Natural issues still occur, et cetera. So all these things have to be accounted for. You know, one of our survey, um, data points basically said all the things that take down a server that you didn't plan on. It's basically humans at the top human error, someone accidentally deleted something and then malicious humans, someone actually came after you, but there's a dozen other things that happened too. So you've gotta prepare for all of that. So I guess what I would end up with saying is you remember back in the centralized data centers, especially the mainframe days, people would say, we're worried about the smoking hole or the smoking crater event. Yeah. Yeah. The probability of a plane crashing into your data bunker was relatively low. That was when it got all the discussion though, what was happening every single day is somebody accidentally deleted a file. And so you need to account on both ends of the spectrum. So we don't wanna over rotate. And we also, we don't want to signal to 450,000 beam customers around the world that we're abandoning you that were not about backup. That's still our core >>Effort. No, it's pretty straightforward. You're just telling people to back up in a way that gives them a certain amount of mitigation yes. Or protection in the event that something happens. And no, I don't remember anything about mainframe. He does though though, much older than me >>EF SMS. So I even know what it stands for. Count key data don't even get me started. So, and, and it wasn't thank you for that answer. I didn't mean to sort of a set up question, but it was more of a strategy question and I wish wish I could put on your analyst hat because I, I feel, I'll just say it. I feel as though it's a move to try to get a tailwind. Maybe it's a valuation play. I don't know. But I, I, it resonated with me three years ago when everybody was talking data management and nobody knew what that meant. Data management. I'm like Oracle. >>Right. >>And now it's starting to become a little bit more clear. Um, but Danny Allen stuff and said, it's all about the backup. I think that was one of his keynote messages. So that really resonated with me cuz he said, yeah, it starts with backup and recovery. And that's what, what matters most to these customers. So really was a strategy question. Now maybe it does have valuation impact. Maybe there's a big market there that can be consolidated. You know, uh, we, this morning in the analyst session, we heard about your new CEO's objectives of, you know, grabbing more market share. So, and that's, that's an adjacency. So it's gonna be interesting to see how that plays out far too many security vendors. As, as we know, the backup and recovery space is getting more crowded and that is maybe causing people to sort of shift. I don't know, whatever right. Or left, I guess, shift. Right. I'm not sure, but um, it's gonna be really interesting to watch because this has now become a really hot space after, you know, it's been some really interesting momentum in certain pockets, but now it's everywhere it's coming ubiquitous. So I'll give you the last word Dave on, uh, day one, VEON 20, 22. >>Yeah. Well boy, so many things I could say to kind of land the plane on, but we're just glad to be back in person. It's been three years since we've had a live event in those three years, we've gone from 300,000 customers to 450,000 customers. The release cadence, even in the pandemic has been the greatest in the company's history in 2020, 2021, there's only about three dozen software only companies that have hit a billion dollars and we're one of them. And that, you know, that mission is why hasn't changed and that's why we wanna stay consistent. One of the things Danny always likes to say is, you know, we keep telling the same story because we're not wanting to deviate off of that story and there's more work to be done. And to honors point, you know, Hey, if you have ambitious goals, you're gonna have to look at spreading your wings out a little bit wider, but we're never gonna abandon being a backup. Well, >>It's, it's clear to me, Dave on was not brought in to keep you steady at a billion. I think he's got a site set on five and then who knows what's next? Dave Russell, thanks so much for coming back in the cube. Great to >>See always a pleasure. Thank you. >>All right. That's a wrap for Dave one. Dave ante and Dave Nicholson will be backed tomorrow with a full day of coverage. Check out Silicon angle.com for all the news, uh, youtube.com/silicon angle. You can get these videos. They're all, you know, flying up Wiki bond.com for some of the research in this space. We'll see you tomorrow.

>>Okay, welcome back everyone to the cubes coverage here in San Francisco, California of AWS summit, 2022. I'm John Farry host of the cube AWS summit in New York city. Coming up in the summer. We'll be there as well for live interviews there. Events are back and we're excited. I have a great guest here y'all you of CEO and co-founder and Juna security based outta Palo Alto. Great to have you coming on the queue. Appreciate it. Yeah. >>Thanks. >>Thanks for having, so tell us about what you guys are doing. You guys have a really cool cost of confidential computing. Take a minute to explain what the company does. >>Sure. So, uh, at high level confidential computing is the ability to take any workload, any piece of data, regardless of sensitive, it is and run it completely isolated, completely private, completely protected, essentially on any infrastructure, uh, and that enables organizations to take any, any workload and move it to UN you know, um, sensitive, potential sensitive locations, like the public cloud, where somebody else is managing your infrastructure. >>So basically the problem you solve is you provide security layer for workloads. >>Exactly. >>Exactly's also govern in security issues, but also just general hacking, >>Right? Oh, ex exactly. Essentially any, any organization having any type of sensitive information, think about, you know, financial services, think about healthcare, think about, you know, oil and gas that need to protect the data where they're gonna drill next. Any, any kind of organization that has sensitive information has that issue and needs to protect data in any environment they run in. >>So Amazon would be like, wait a minute. We're secure. What come on. >>Uh, actually AWS is, uh, is one of our partners and we we're actually building on top of, uh, a new technology that AWS, uh, built called, uh, nitro enclaves. And actually all the public clouds have built a technology like this. Uh, the reason why they've done this is to security and privacy are the number one. And number two reasons why people don't move more workloads to the public cloud. Mm-hmm <affirmative>. So what the public clouds have done is added this technology to be able to tell their customers one is we don't have any access to your data running on top of our infrastructure. And number two, be able to turn to the government and tell them, uh, during the case with the iPhone and, uh, the FBI or the FBI to apple asked him for data on the iPhone. Yeah. And apple said, we just can't, we don't have access to that data. This is exactly what the public clouds want to be able to do, turn to the government and tell them we just don't have access to our customer's data. >>Wow. That's gonna put a lot of pressure. So talk about the surface area of attacks. How has that changed? What do you guys, what's your role in that obviously this no perimeter anymore in the cloud, the security is dead. That's a huge issue. >>Yeah, of course. So, so I guess what we fit into this, as I mentioned, all the clouds added, uh, this technology, uh, what we fit in is very similar to what VMware did for virtualization, right? Virtualization was this extremely powerful technology that everybody knew was going to change the world. You wouldn't have the public cloud without virtualization. Uh, the problem was, it was very difficult to use very, very low level because it was a hardware technology. And then every, uh, vendor built a different technology. This is exactly the case now with confidential computing, every cloud added, uh, uh, a hardware level technology to go support this. But one it's very low level. It's very, very difficult to use. And every cloud added the different technology, which makes it even harder for organizations to go use. We added a softer stack exactly like VE VMware did for virtualization to make it super simple, to use and ubiquitous across the different clouds. >>How did you come up with the idea? What did this all come from? Were you scratching and inch and security? Did you have one of those things like, Hey, I can solve this problem. What's the origination story? Where did this all start? >>Yeah, it's actually, so I I've been in security for, you know, over 20 years now. Um, and I kept running into that same problem. Right. I, I was in the, I was actually in, um, unit 8,200, which is the really equivalent of the NSA. Uh, I was then, uh, in the private sector and I was, uh, a bunch of companies open DNS, Cisco, and, and I kept running into that same issue. And when you kind of peeled the layers of the onion of what the core security problem was, it always came back to how do you protect data while it's being used, which is essentially the core, the same sort of core problem, the confidential computing solves. Um, but there was never a solution. There was never a way to solve this. Uh, and, uh, above four years ago, my co-founder, uh, just finished his PhD at Stanford and he ran into, there's finally a way to do this. Finally, the CPU vendors have built something in, uh, the clouds are going to adopt this. This is going to allow you to one finally solve that huge problem that always existed. And, and number two, this allows you to kind of rearchitect security the right way, uh, because this has always been the core problem that people try to somehow mitigate never having a good solution. >>It's like putting a rapper around it, an envelope and saying secure. >>Exactly. So was this >>PhD working at Stanford in parallel to industry momentum at the same time Sarah Diply? Or was it kind of like, was he working with partners already in his program? >>Yeah, so he just, uh, this was something was happening and this is, uh, this has been going on for, well over a decade. It, it actually funny enough, it started with the, uh, with cell phones. I dunno if you ever thought, you know, what happens if you lose your phone, you have the biometric data, right? Your fingerprint or your face ID. Can somebody get that information out the phone if you lose it? And what the, the phone vendors have done is basically put techn, confidential computing technology to make sure that even if somebody gets physical access to your device, they're not going to be able to get access to that data. And what the, the evolution was is that the Intel AMD, the CPU vendors have realized, wait, this is a really, really great idea. Yeah, you should put it on the server side as well. >>And that started with Intel in 2015. So this has been an evolution, uh, and now essentially every, every one of the CPU vendors is now supporting this. You have Intel and R and AMD and video just announced, uh, their confidential, uh, uh, GPU solution, uh, all the clouds and I've adopted this. Uh, so my, my co-founder when he ran into this, this was as this was, uh, starting to, to happen. He got extremely excited, but he has noticed a big problem of everyone is coming up with different solutions. We're gonna need to build a layer, a software layer on top of this, uh, to, so >>You have, you have to get this to be de facto >>Exactly standard. >>Oh, how's that going? So Amazon's a partner, >>Amazon's a partner. Aw. Uh, Azure is a partner. Uh, we can run on top of essentially any, any one of the clouds out there >>They're enabling you to do that. Cuz they're they want to buy into security. >>Exactly. They want the benefit. Exactly. They want tell their customers, you can move anything to the cloud because we don't have any access to your data. This helps us, them essentially sell cloud >>A couple things around. Um, I want to ask about performance, but before I get to that, yep. It seems like this whole protective data thing has always been like a database thing. Not so much low level re resetting, if you will, it's almost a reset. It's not like just protect your data in the database. >>Oh yeah. Yes. It's different. Yes, exactly. It's funny because uh, you bring sort of the right exact right point. Really. You kind of think about where data can reside. There're essentially three locations. There's data at rest, which is essentially data in a database or file system. There's data in transit, which is data on the, you know, in the network. Yep. Uh, and then there's data use and the data and use piece is essentially when an application needs to process data, it has to decry it and load it completely in the clear, in memory in order to process it. Got it. And at that point, the data is not decade. This is why it's so hard for organizations to move data to the cloud or to run data and geographies where they're not, you know, they don't trust the government or don't trust the, the admins. >>So injecting some malware or vulnerability or attack in the workload while it's running is just another attack, vector. >>Exactly. Or just, or just stealing the data. If you, if you have access to the infrastructure, if you can run code, you can then just basically look in the memory and get all the data out of it. And, and to some extent, even the, the, the encryption keys you use for data, rest those keys, leaving the clear in memory. So even that hasn't been completely solved. Got it. Now that you have this component, you can finally solve, you know, solved our problem and protect the data regardless of where it resides. >>All right. So I gotta a performance question cause remember going, even back to the earlier encryption. Yeah. There's always overhead penalty. Yes. But cloud's a beautiful thing you can spend compute up and you're talking about now, the, the CPU vendors are kind of getting involved. >>Yes. Talk >>About the security, uh, how you mitigate that. Is it an issue? No issue. Why? Yeah, >>Actually, actually, uh, you talk about performance because I think this is a really, really great point. What's nice about this. Uh, and uh, this is why the, the, the, the sort of the benefit of the CPU vendors doing this performance has always essentially had two underlying issues. One is performance, as you mentioned. And the other one is ease of use. This is, this is sort of the, the piece we add to that. We make it super simple to use when you can take essentially any workload and run it securely on top of any, any one of these solutions and the performing thing, the, the heavy lifting is done by the hardware vendors themselves, which means there's a another, uh, chip next to the CPU that does all the heavy lifting encryption, which is very similar. I don't know if you remember the, uh, um, uh, the TLS, you know, the SL acceleration cards. Yeah. This was exactly the same thing. It was this, you know, chip outside the CPU. So it's not, uh, in the sort of the critical path that does all the heavy lifting. And this is what allowed, uh, TLS or HTB TTP HTTPS to become the default where you now protect every website. And this is sort of when security becomes transparent and there's no performance impact, like why, why would you use it for everything? >>It becomes a no brainer unless there's legacy baggage, right. >>In >>Dogma around use this approach, culture issue, or technical, right. Unwind those two, two things. So what's your a take on that? What's your react. Culture's easy. Just like, I think that's easy to fix. We want better security get on board or see you later. Exactly. Technical architecture could be an inhibitor. How do you see that is the blocker? How do you unwind that? How do you get that to >>Reset? So it's exactly the value that we bring to the table. We build a software stack to make it super simple. You don't need to, you know, you don't need to rewrite the application. You don't need to recompile, it's essentially security becoming a part of the infrastructure. You essentially have security as just a piece of the infrastructure that makes it super simple to get a no brainer. Yeah, exactly. The way, you know, TLS was it's. Yeah. We're a software vendor. >>All right. So how do I see it integrating with Amazon? It's gonna get into the chip level. They're enabling hooks for you. Exactly. That's how it works. >>So there's essentially the, uh, all the cloud vendors have enabled these technologies for Amazon it's yeah. It's essentially this hardware capability. We, we have access to it and we're a software layer on top of it to make it simple, similar to, again, what M VMware did for virtualization and what, um, some extent, this is what, uh, Microsoft has done for the CPU, what windows is right. Every time there's a new, really amazing hardware, hardware, uh, feature. You need a software sec on top of it to make it simple use. >>What's great about the cloud is, is that you kind of have that whole operating system mindset now being democratized across everything. Right. I mean, it's a systems thinking in software, right. With all the cap X of the cloud. Yes. And you're decoupled from it and you're riding on top of >>It. Exactly. >>It's an amazing opportunity as a co-founder or just if, if there was no cloud, how hard were this to be the two <laugh>, I mean, like almost impossible. Yep. So very cool. All right. Take a minute to explain what you guys are working on. How big is the company, what you guys are doing right now, you're hiring, you're looking for people funding, give a, give some, uh, give, give some, give a plug to the company. >>Sure. So, uh, we're, uh, we're a series B company, uh, lost, uh, raised 30 million from insight in the last round. Um, we're, uh, we're about 80 people right now. We're growing extremely aggressively. Um, mostly on the salsa and the cells go to market side just because of the demand that we're seeing in the market, but we're also growing on the engineering side. So again, if, uh, we're always happy to talk to >>Side about Palo Alto probably have remote teams, >>Uh, we're based in Palo Alto. So the, the, the, the sort of headquarters and most of the team is in Palo Alto, but yeah, we're very open to remote. We have now engineers in all across the us, and also outside the us as well, just because COVID made it sort of very easy to, to do >>That. Right. I mean, you got a good product, great idea, and a great opportunity. I mean, this is, you know, Dave LAN and I had at a VM world, I think it was like 2013. Now we're dating ourselves. <laugh> this is when we started covering AWS. Yep. He asked pat Gelsinger, it might have been 2015. Cause the CEO of VMware at the time. Yeah. Is security a Doover. Yep. And he's like, absolutely. And this is now happening. This is a security Mulligan, a redo over, this is what we need. Right. >>Exactly. And this is why, so, uh, we're part of a, uh, something called the confidential computing consortium, which essentially has all the large, all the, you know, the cloud vendors, the CPU vendors, VMware is a part of this as well. Basically the, this is sort of too big of a shift for these large organizations to ignore the, and uh, yeah. VMware is definitely going to have a, a part of >>This. Awesome. Well, congratulations. You guys are gonna probably be really huge or get bought out pretty quickly. <laugh> we're I think >>This, this is a huge, this is just a huge opportunity. We can become the VMware of security. So I think this is, you know, I'm hoping to stay independent. >>Yeah. Congratulations on a great venture. Love the idea. And again, every application should run this way. It's no, uh, if you can get that security built in yep. You gotta shield. Right. You wrap it up, probe it anywhere exactly made the best cloud >>Win. Exactly. Right. Exactly. >>And that's, what's gonna happen. That's >>That's >>Why I love the Silicon angle of Amazon Silicon play. Yes. As that Silicon gets better. >>Yes. >>It only helps this, these kinds of use cases. Right? >>Exactly. We, we, again, we, we leverage, we leverage these technologies and to some extent, this is, this is actually part of the, the value we talk to customers about, because this is sort of the cutting edge of technology and security. And this keeps evolving. As, as I mentioned in video, just announced their confidential GPS. We provide this layer on top of it where organizations don't have to go and kind of rebuild every application as this evolves and just use our people >>Who know me in the cube know I'm a Hawk when it comes to cybersecurity. I think the red line is people operating below the red line. And, and why should companies have to provision their own militia? Exactly. This is essentially the shield they can put up. Exactly. And not rely on the government who just know what they're doing. Exactly. >>So get exactly security should be easy. Should be, should be us everywhere. I >>Should you get a lot of banking customers, FinTech customers coming on board. Exactly. Right. Outta the gate. Yeah. Thanks for coming on the queue. Yeah. Appreciate. Thank you. Live coverage here. San Francisco, California. I'm John farrier with the cube. We'll be right back with more after this short break.

(upbeat music) >> Welcome everybody to VeeamON 2021 you're watching theCUBE. My name is Dave Villante. You know in 2020 cyber adversaries they seize the opportunity to really up their game and target workers from home and digital supply chains. It's become increasingly clear to observers that we're entering a new era of cyber threats where infiltrating companies via so-called Island Hopping and stealthily living off the land meaning they're using your own tools and infrastructure to steal your data. So they're not signaling with new tools that they're in there. It's becoming the norm for sophisticated hacks. Moreover, these well-funded and really sophisticated criminals and nation States are aggressively retaliating against incident responses. In other words, when you go to fix the problem they're not leaving the premises they're rather they're tightening the vice on victims by holding your data ransom and threatening to release previously ex filtrated and brand damaging information to the public. What a climate in which we live today. And with me to talk about these concerning trends and what you can do about it as Gil Vega, the CISO of Veeam Gil great to see you. Thanks for coming on. >> Great to see you, Dave. Thanks for having me. >> Yeah. So, you know, you're hearing my intro. It's probably understating the threat. You are a Veeam's first CISO. So how do you see the landscape right now? >> That's right. Yeah. And I've been with the company for just over a year now, but my background is in financial services and spent a lot of time managing cybersecurity programs at the classified level in Washington DC. So I've gleaned a lot of scar tissue from lots of sophisticated attacks and responses. But today I think what we're seeing is really a one-upmanship by a sophisticated potentially nation state sponsored adversaries, this idea of imprisoning your data and charging you to release it is it's quite frightening. And as we've seen in the news recently it can have devastating impacts not only for the economy, but for businesses. Look at the gas lines in the Northeast right now because of the quality of a pipeline, a ransomware attack. I just, the government just released an executive order this morning, that hopes to address some of the some of the nation's unpreparedness for these sophisticated attacks. And I think it's time. And I think everyone's excited about the opportunity to really apply a whole of government approach, to helping critical infrastructure to helping and partnering with private sector and imposing some risks, frankly, on some of the folks that are engaged in attacking our country. >> A number of years ago, I often tell this story. I had the pleasure of interviewing Robert Gates the former Defense Secretary. And it was a while ago we were talking about cyber and he sits on a number of boards. And we were talking about how it's a board level issue. And, and we're talking about cyber crime and the like and nation States. And I said, well, wait, cyber warfare, even. And I said, "But don't we have the best cyber tech. I mean, can't we go on the offense?" And he goes, "Yeah, we do. And we can, but we have more to lose." And to your point about critical infrastructure, it's not just like, okay, we have the most powerful weapons. It's really we have the most valuable infrastructure and a lot to lose. So it's really a tricky game. And this notion of having to be stealthy in your incident response is relatively new. Isn't it? >> It is. It is. And you know, there are, you mentioned that and I was surprised you mentioned because a lot of people really don't talk about it as you're going into your response your adversaries are watching or watching your every move. You have to assume in these days of perpetual state of compromise in your environments, which means that your adversaries have access to your environment to the point that they're watching your incident responders communicate with one another and they're countering your moves. So it's sort of a perverse spin on the old mutually assured destruction paradigm that you mentioned the United States has the world's largest economy. And quite frankly the world's most vulnerable, critical infrastructure. And I would concur with Director Gates or Secretary Gates rather it is assessment that we've got to be awfully careful and measured in our approach to imposing risks. I think the government has worked for many years on defining red lines. And I think this latest attack on the colonial pipeline affecting the economy and people's lives and potentially putting people's lives at risk is towing also the close to that red line. And I'm interested to see where this goes. I'm interested to see if this triggers even a, you know a new phase of cyber warfare, retaliation, you know proactive defense by the National Security Community of the United States government. Be interesting to see how this plays out. >> Yeah, you're absolutely right though. You've got this sort of asymmetric dynamic now which is unique for the United States as soon as strongest defense in the world. And I wanted to get it to ransomware a bit. And specifically this notion of ransomware as a service it's really concerning where criminals can actually outsource the hack as a service and the bad guys will set up, you know, on the dark web they'll have, you know, help desks and phone lines. They'll do the negotiations. I mean, this is a really concerning trend. And obviously Veeam plays a role here. I'm wondering as a, as a SecOps pro what should we be doing about this? >> Yeah, you mentioned ransomware as a service, whereas RWS it's an incredibly pernicious problem perpetrated by sophisticated folks who may or may not have nation state support or alliances. I think at a minimum certain governments are looking the other way as it relates to these criminal activities. But with ransomware as a service, you're essentially having very sophisticated folks create very complex ransomware code and distributed to people who are willing to pay for it. And oftentimes take a part of the ransom as their payment. The, issue with obviously ransomware is you know the age old question, are you going to pay a ransom or are you not going to pay a ransom? The FBI says, don't do it. It only encourages additional attacks. The Treasury Department put out some guidance earlier earlier in the year, advising companies that they could be subject to civil or criminal penalties. If they pay a ransom and the ransom goes to a sanction density. So there's danger on all sides. >> Wow okay. But so, and then the other thing is this infiltrating via digital supply chains I call it Island Hopping and the like, we saw that with the solar winds hack and the scary part is, you know different malware is coming in and self forming and creating different signatures. Not only is it very difficult to detect, but remediating, you know, one, you know combined self formed malware it doesn't necessarily take care of the others. And so, you know, you've got this sort of organic virus, like thing, you know, create mutating and that's something that's certainly relatively new to me in terms of its prevalence your thoughts on that and how to do it. >> Yeah, exactly right. You know, the advent of the polymorphic code that changes the implementation of advanced artificial intelligence and some of this malware is making our job increasingly difficult which is why I believe firmly. You've got to focus on the fundamentals and I think the best answers for protecting against sophisticated polymorphic code is,are found in the NIST cybersecurity framework. And I encourage everyone to really take a close look at implementing that cybersecurity framework across their environments, much like we've done here, here at Veeam implementing technologies around Zero Trust again assuming a perpetual state of compromise and not trusting any transaction in your environment is the key to combating this kind of attack. >> Well, and you know, as you mentioned, Zero Trust Zero Trust used to be a buzzword. Now it's like become a mandate. And you know, it's funny. I mean, in a way I feel like the crypto guys I know there's a lot of fraud in crypto, but but anybody who's ever traded crypto it's like getting into Fort Knox. I mean, you got to know your customer and you've got to do a little transaction. I mean, it's really quite sophisticated in terms of the how they are applying cybersecurity and you know, most even your bank isn't that intense. And so those kinds of practices, even though they're a bit of a pain in the neck, I mean it's worth the extra effort. I wonder if you could talk about some of the best practices that you're seeing how you're advising your clients in your ecosystem and the role that Veeam can play in helping here. >> Yeah, absolutely. As I mentioned so many recommendations and I think the thing to remember here so we don't overwhelm our small and medium sized businesses that have limited resources in this area is to remind them that it's a journey, right? It's not a destination that they can continually improve and focus on the fundamentals. As I mentioned, things like multi-factor authentication you know, a higher level topic might be micro-segmentation breaking up your environment into manageable components that you can monitor a real time. Real time monitoring is one of the key components to implementing Zero Trust architecture and knowing exactly what good looks like in your environment in a situation where you've got real-time monitoring you can detect the anomalies, the things that shouldn't be happening in your environment and to spin up your response teams, to focus and better understand what that is. I've always been a proponent of identity and access management controls and a key focus. We've heard it in this industry for 25 years is enforcing the concept of least privilege, making sure that your privileged users have access to the things they need and only the things that they need. And then of course, data immutability making sure that your data is stored in backups that verifiably has not been changed. And I think this is where Veeam comes into the equation where our products provide a lot of these very easily configured ransomware protections around data and your ability to the ability to instantly back up things like Office 365 emails, you know support for AWS and Azure. Your data can be quickly restored in the event that an attacker is able to in prison that with encryption and ransom demands. >> Well, and so you've certainly seen in the CISOs that I've talked to that they've had to obviously shift their priorities, thanks to the force march to digital, thanks to COVID, but Identity access management, end point security cloud security kind of overnight, you know, Zero Trust. We talked about that and you could see that in some of these, you know, high flying security stocks, Okta Zscaler, CrowdStrike, they exploded. And so what's in these many of these changes seem to be permanent sort of you're I guess, deeper down in the stack if you will, but you, you compliment these toolings with obviously the data protection approach the ransomware, the cloud data protection, air gaps, immutability. Maybe you could talk about how you fit in with the broader, you know, spate of tools. I mean, your, my eyes bleed when you look at all the security companies that are out there. >> Yeah for sure. You know, I'm just going to take it right back to the NIST cybersecurity framework and the five domains that you really need to focus on. Identify, protect, detect, respond, and recover, you know and until recently security practitioners and companies have really focused on on the protect, identify and protect, right and defend rather where they're focused on building, you know, moats and castles and making sure that they've got this, you know hard exterior to defend against attacks. I think there's been a shift over the past couple of years where companies have recognized that the focus needs to be on and respond and recover activities, right? Assuming that people are going to breach or near breach, your entities is a safe way to think about this and building up capabilities to detect those breaches and respond effectively to those breaches are what's key in implementing a successful cybersecurity program where Veeam fits into this since with our suite of products that that can help you through the recovery process, right? That last domain of the NIST cybersecurity framework it'll allow you to instantaneously. As I mentioned before, restore data in the event of a catastrophic breach. And I think it provides companies with the assurances that while they're protecting and building those Zero Trust components into their environments to protect against these pernicious and well-resourced adversaries there's the opportunity for them to recover very quickly using the VM suite of tools? >> Well, I see, I think there's an interesting dynamic here. You're pointing out Gil. There's not no longer is it that, you know, build a moat the Queen's leaving her castle. I always say, you know there is no hardened perimeter anymore. And so you've seen, you know, the shift obviously from hardware based firewalls and you I mentioned those other companies that are doing great but to me, it's all about these layers and response is a big in recovery is a huge part of that. So I'm seeing increasingly companies like Veeam is a critical part of that, that security cyber data protection, you know, ecosystem. I mean, to me it's just as important as the frontline pieces of even identity. And so you see those markets exploding. I think it's, there's a latent value that's building in companies like Veeam that are a key part of those that data protection layer you think about you know, defense strategies. It's not just you, the frontline it's maybe it's airstrikes, maybe it's, you know, C etcetera. And I see that this market is actually a huge opportunity for for organizations like yours. >> I think you're right. And I think the proof is in, you know in the pudding, in terms of how this company has grown and what we've delivered in version 11 of our suite, including, you know features like continuous data protection, we talked about that reliable ransomware protection support for AWS S3 Glacier and Azure archive the expanded incident recovery, and then support for disaster recovery and backup as a service. You know, what I found most interesting in my year here at Veeam is just how much our administrators the administrators in our company and our customers companies that are managing backups absolutely love our products that ease of use the instant backup capabilities and the support they receive from Veeam. It's almost cultish in terms of how our customers are using these products to defend themselves in today's pretty intense cyber threat environment. >> Well, and you talked about the NIST framework, and again big part of that is recovery, because we talked about earlier about, do you pay the ransom or not? Well, to the extent that I can actually recover from having all my data encrypted then I've got obviously a lot more leverage and in many ways, I mean, let's face it. We all know that it's not a matter of if it's, when you get infiltrated. And so to the extent that I can actually have systems that allow me to recover, I'm now in a much much stronger position in many respects, you know and CISOs again, will tell you this that's where we're shifting our investments >> Right. And you've got to do all of them. It's not just there's no silver bullet, but but that seems to me to be just a a misunderstood and undervalued part of the equation. And I think there's tremendous upside there for companies like yours. >> I think you're right. I think what I'll just add to that is the power of immutability, right? Just verifiably ensuring that your data has not changed because oftentimes you'll have attackers in these low and slow live off the land types of attacks change your data and affect its integrity with the Veeam suite of tools. You're able to provide for immutable or unchanged verifiable data and your backup strategy which is really the first step to recovery after a significant event. >> And that's key because a lot of times the hackers would go right after the backup Corpus you know, they'll sometimes start there is that all the data, you know, but if you can make that immutable and again, it, you know there's best practices there too, because, you know if you're not paying the cloud service for that immutability, if you stop paying then you lose that. So you have to be very careful about, you know how you know, who has access to that and you know what the policies are there, but again, you know you can put in, you know so a lot of this, as you know, is people in process. It's not just tech, so I'll give you the last word. I know you got to jump, but really appreciate.. >> Yeah, sure. >> You know, the only, the only thing that we didn't mention is user awareness and education. I think that is sort of the umbrella key focus principle for any successful cybersecurity program making sure your people understand, you know how to deal with phishing emails. You know, ransomware is a huge threat of our time at 90% of ransomware malware is delivered by phishing. So prepare your workforce to deal with phishing emails. And I think you'll save yourself quite a few headaches. >> It's great advice. I'm glad you mentioned that because because bad user behavior or maybe uninformed user behaviors is the more fair way to say it. It will trump good security every time. Gil, thanks so much for coming to the CUBE and and keep fighting the fight. Best of luck going forward. >> Great. Thank you, Dave. >> All right. And thank you for watching everybody. This is Dave Villante for the CUBEs continuous coverage VeeamON 2021, the virtual edition. We will be right back. (upbeat music)

>> From the SiliconANGLE Media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hello everyone, and welcome to this week's episode of theCUBE insights, powered by ETR. In this breaking analysis, I'm going to provide a little detail on the recent announcement that Insight Partners was acquiring Veeam for five billion dollars. There was a lot of information on the announcement in press releases and in news articles, so what I really want to focus on is what it means for the industry generally, and for the data protection community specifically. So, very briefly this was a five billion dollar exit for Veeam on top of a five hundred million dollar investment lead by the same Insight Partners last year. I think it had earlier investments, kind of a rent, with an option to buy. New management is being promoted from within, which I think is significant, to replace the two founders. Andrei Baronov and Ratmir Timashev are going to step down after the transition and give up their board seats. Veeam is a fascinating company. It started in the 2006, 2007 time frame, after the two founders, who met in college, formed and sold Aleta software to Quest. Then they started a company called AMUST Software, from which they created Veeam. You never hear about AMUST, but I believe it's the engineering and development arm of Veeam. Now the new CEO of Veeam, Bill Largent told theCUBE that AMUST is now a wholly owned subsidiary of Veeam and it won't effect any of the engineering assets that exist in Prague and in Russia. So this I the thing about Veeam, it's a very closely held company controlled by it's two founders, with a domicile in Switzerland. My understanding is Baronov is, well he's the technical guru, and he's a resident of that country in Switzerland, and the HQ there is very lean, the sizable engineering teams, as they say, is in Russia and Prague. Timashev resides in the US, and he's a marketing genius, who helped create this company, and it's always punched above it's weight class with, epic parties, and great products. Now interestingly, Veeam's rise, it coincided with the ascendancy of VMware. Veeam became the standard backup software for small to medium size companies within VMware shops. Their products are renowned for being simple, and working as advertised, and their customer support is outstanding by all accounts. But the US business lagged, despite the fact that most of VMware's business is in the Americas. You'd think you think if they super glued themself to VMware their Americas business would be higher. So a few years ago they decided to really go hard after the enterprise and they brought in Peter Mckay, from VMware, and he began to build up a US presence. But the enterprise business, it requires a lot of things that were kind of antithetical to Veeam. So think about long sales cycles, expensive sales people, belly to belly selling, with the expectations of, road maps, and clarity around enterprise feature sets. Now McKay was named CEO with Baronov, who continued to run engineering. So it was a bit of a culture clash. You got the sales oriented leader wanting the engineering team to turn on a dime and help close large deals, and satiate partners like HPE and Sysco, and you've got this genius co-leader, slash engineer, with an incredible track record of delivering features that the customer loves. So it really didn't work out and then Veeam scaled back on it's ambitions some what. At it's annual user conference in Miami last year, Ratmir came on theCUBE, and he talked about how Veeam's act one was all about dominance in virtualized environment. Let's listen to what he said about act two and then we'll come back and talk about it >> That was act one, we dominated it, we grew from zero to one billion within 10, 12 years. We added three hundred fifty thousand customers over that time frame, and now it's act two. What is act two? Act two is the, again, the new major industry transformation to a hybrid cloud. What are the similarities? Again, Veeam is in a great position because we're at the right time at the right place with a brilliant product. >> Now what we know is that act two is about a few things, one, as Ratmir said, hybrid cloud, multi cloud management, etcetera. But it's also about an awesome exit for it's two founders. Wow five billion dollars, five x revenue multiple, handing over the reigns is really the third thing this is about and creating more traditional governance structure for Veeam. Now they're moving from a governance structure that was closely held and opaque to one that is still going to be closely held, but ideally somewhat less opaque. Which brings me to inside partners. In the money world, you basically have a spectrum of investors. On the one side you've got banks, who are the most conservative. On the other side you've got VCs, now they're the most aggressive, of course. Now somewhere in the middle, you have private equity firms. Now they traditionally invest in companies, and they squeeze them for EBITDA, and they suck money out. But inside is more of a hybrid. They invest in a number of companies as VCs, they take a portion of the ownership. And to me they're more of a rule of forty PE, meaning it's not just about EBITDA, it's about growth plus EBITDA. So a rule of thirty or a rule of forty PE company, they can dial down EBITDA and go for growth, or dial up EBIT and moderate growth. So it's a great model. So I would expect Insight to bring structure and leadership to Veeam, with the goal of taking the company public at some point, because they like to sell to companies for all cash, I don't see a logical buyer at these kind of price points for this company in this market. It's growing market but it's still not a giant market. All right let's shift gears a little bit and get into some of the ETR data. Here's a narrative they put out recently that, to me, sums it up well. ETR said Veeam is one of the few vendors growing share among customers vs previous surveys in the storage sector. And that said, spending intentions are decelerating and continue to look poor in the largest sectors and Veeam trails Rubrik and Cohesity, although on a larger user base. So you can see by this statement that Veeam is of course doing well, but there are some cracks in the enterprise armor that I want to talk about and drill into a little bit. Now this now this Arline customer quote also, to me, sums up one of the reasons for Veeam's success. What this person said is if I want to do a Veeam back up to the cloud, it's basically point and click, very easy to use. Now I've talked to dozens, if not hundreds of Veeam customers, and they all say the same thing, it just works, that's kind of their motto. So this is the big reason why Veeam has steadily gained gained share over time. Now take a look at this chart, which shows the progression over time of Veeam's progress in terms of what ETR calls market share. Now remember, market share is a measure of pervasiveness in the ETR data set. And you can see, in the data, that Veeam has had a steady rise since ETR started tracking them at critical mass back in 2014. And you can see the steady decline in the survey for Veritas and Commvault and what appears to be, rapid momentum building for Rubrik and Cohesity, two companies that I said in my 2020 predictions breaking analysis that would continue to do well this year. Now notice I had to black out the January 2020 survey, which is ending shortly, so stay tuned for those results. But let's drill into Veeam's performance a little bit more. What this chart shows is a candlestick of net score and market share across all the respondents in the ETR survey for Veeam. Remember net score is a measure of spending momentum that subtracts customers that are spending less, the red, from those spending more, the greens. And it's represented over time by this blue line that you see. You can see that this blue line, it bounces around but it holds steady in the past couple of years pretty generally, and really in that thirty to forty percent range which you see on the left hand axis. Now that yellow line, is market share or pervasiveness, it also continues to climb steadily as I showed you in the previous chart. Now again this is amongst all respondents. Let's now take a look at this chart which isolates Veeam's performance in the largest companies, that enterprise push. Notice the pictures is somewhat choppier. Market share is okay, although unlike the previous chart, it's not steady. This is stunning. Peter McKay left in October 2018, and that's when Veeam really pulled back on it's big enterprise push, and you can see, there's a noticeable and steady drop there based on ETR data. So what's happening here is we are entering a new chapter for Veeam, act two so to speak. With new leadership and new governance. Danny Allen is taking over CTO, he previously ran strategy, Bill Largent is going to be CEO, the HQ is moving into the US. So in my opinon, Veeam's issues in the US have been more execution related than anything else. Veeam is a leader. So partnerships with Nutanix, Sysco, HPE, NetApp, should continue to improve and be somewhat productive, actually largely productive. Let's talk a little bit about Veeam's architecture, and a point of discussion that you often hear in the community. Veeam's a Window's based architecture. Now is that a blessing or is that a curse? Well the pros are that the Veeam team came out of a Windows world, and they know the platform very well. They are amazingly good at adding function, without screwing up performance somewhere else. You saw this a couple years back when they were making a big push on the enterprise and they increased the file sizes, and the number of objects that they could support. Another example is when Veeam added cloud back up, it was a really good product, version one. Unlink many products, when they first tried to port to the cloud, that wasn't the case. Recovery from the cloud is very tricky. Things are out of sync, you got a metadata challenge, and generally Veeam was able to achieve consistent levels of performance with it's cloud product. Now flip side of this, is that if you look at most, if not all, modern architectures today, are based on Linux. And once you start getting into mulit cloud, and cross cloud management, you're going to bump into and be interfacing with lots of Linux based systems. So Veeam is going to have migrate code, and maintaining consistent performance is going to be tougher. But as David Fourier, my colleague points out, there are many many ways to skin a cat, and Veeam's engineering team has really, based on it's track record, has proven that it can solve tough problems, and really deliver a great product consistently. I think the bigger issue and challenge for Veeam again, is execution in the US, and of course the enterprise. Customers in EBC's executive briefing centers, they want to see road maps, and enterprise features, and specials. And so we'll see, if that's something that Veeam has an appetite for. If they do, and I'm one of the incumbents, I'd be worried that Veeam could do a land and expand. Where Veeam isn't as strong in large enterprises, big companies they buy from Veeam. Maybe it's a smaller division, or remote location, but it's not like they don't do business in large accounts, they do. So in a way, they've already landed and they have an opportunity to expand, so that's something to pay attention to. If I'm an enterprise customer, I would be pressing Veeam on it's roadmap, and having them clarify their vision around hybrid and multi cloud management. Will Veeam be more transparent and willing to do specials for the enterprise, and their big partners, who expect them, when they say jump, they expect Veeam to say how high. How will Veeam's culture change, is the other thing I want to focus on. As the two founders step down, are they going to be able to main their engineering ethos, and customer loyalty, and can they figure out the enterprise. I'm a big fan of founder lead companies, when founders leave cultures often change. When founders stay, they're intensely committed, even beyond great CEOs who aren't founders. Look at Michael Dell. He went to the mat to keep his company against the great icon, now look at Dell technologies, after the EMC acquisition, it was completely transformed. Look at Oracle, look at the lengths that Larry Ellison goes to win. Compare that to a great CEO Joe Tucci, when he was at EMC, but you know when he was done, he was done, it was over. It wasn't his baby. So my point is how will this effect Veeam's culture and prospects in the long term. For me the bottom line is the big opportunity's in the US. And that's about execution. And I expect with the move to US HQ, new management, I expect they're going to see consistent market share gains, that's going to continue. The enterprise however, that's going to take longer, it's going to require more patience and more money. And with Veeam transitioning from essentially the two founder's lifestyle business into a company that's really built for an exit, they're going to have more money to invest, greater transparency, I hope, and a path to really build on their past successes. So this Dave Vellante signing out from the latest episode of theCUBE insights, powered by ETR. Thanks for watching everybody and we'll see you next time. (upbeat music)

>> Narrator: Live from Las Vegas, it's The Cube covering Dell EMC World 2017. Brought to you buy Dell EMC. >> Welcome back here live in Las Vegas on The Cube at Dell EMC 2017. We are live from The Venetian continuing our Day One coverage here on the show along with Keith Townsend, I'm John Walls. Did you have a good lunch? >> I'm ready to go, John. >> Excellent, excellent. It's all about data protection right now and with us to talk about that is Beth Phalen, who is the President of the Data Protection Division at Dell EMC and Jim Clancy, the SVP of Sales in Data Protection as well. Jim, good to see you, sir. >> Thanks for having us, guys. >> Alright, so big news for you today. Led off with a couple of key announcements. Beth, take us through those, what was the news that you were making from the stage? >> Absolutely, two big announcements today. First, is the Integrated Data Protection Appliance which is an end-to-end appliance that gives you box to backup in less than three hours. While the customers are looking for simplicity but they still need the fantastic dedup, up to 55:1, the performance, the scales they get with our Data Protection Suite, our data protection portfolio, so now we're bringing it to them as an integrated appliance. Couldn't be happier about it. >> Great, so big news there, and announcement number two. >> We had a second one, too, which was cloud data protection. With a special focus on cloud Disaster Recovery, our customers want to leverage the cloud to have the DR site in a cloud, a public cloud, or perhaps a separate private cloud. They also want to be able to run Data Domain in the cloud environment. So as of today, you can run Data Domain Virtual Edition on AWS Or Azure and soon you'll be able to run it in Virtustream. >> So Jim, put that into practice for me now. If I'm one of your partners and I know that I've got some extra layers or extra opportunities, now what does that mean to me? >> Well firstly, we start with our partners. I think we've had such an incredible journey together supporting our customers' requirements. Well those continue to change and they struggle with things like the amount of information that they need to recover from, they need to back up, they need to store. For us, we're giving them that next conversation with their customers. So the new challenges are being met by data protection from Dell Technologies and our partners are going to benefit from that because they have the trusted advisors in their accounts. They want to be able to go and work with their customers and the new challenges and deliver. So Beth and her team have delivered from a technology to allow us to go and capture that mind share with our customers working together with our partners. >> So Jim, backup appliance, very high market. A lot of investments and a lot of startups in that market. What differentiates this solution over those competitors? >> Well first off, we're in the number one position in this market for a reason. It really comes down to our technology. So our customers have been pushing us saying, We need it to be simple, make it simple, make it simple. Because then they're running out of time every day on what they can do. I think we're taking our industry-leading technology and bundling it together as a simple, high-performance solution is the first thing. The second thing is the total experience that Dell brings to the marketplace. Our customers always are counting on us that if there ever is a challenge, who's going to be there to help us, right? If I ever need that next application comes on the line and how am I going to protect it? Who can come in a design that? That's what we deliver. So the things that we deliver are the experience vs. a point product. And by the way, from a point product, with our new announcement we're going to be able to take on any competitor in this marketplace. But it's the full experience that separates us from anybody in this marketplace today which is why we're number one and we're going to continue that leadership. >> So Beth mentioned the second announcement, cloud, which is a huge part of our new hybrid portfolios. What cloud services are we compatible with out the gate with your new solution? >> The cloud services that we're developing at the end of the gate, is that what you said? So first of all, if we take a step back the cloud is really multi-steps for customers to take advantage of it. Some customers are extending to the cloud. So they may have a full on-prem Data center that they want to leverage the cloud for perhaps long-term retention. That's one thing you can do. The second is a lift and shift. When they may choose to move some of their applications to the cloud. Now for that, they can run DD VE with NetWorker and CloudBoost and still have that same operations for the data protection that they did from on-prem. So the first is extent of the cloud. The second is lift and shift to the cloud. The third is something that you'll hear us talk more about. It's beginning to refactor their applications to be more cloud-native. Which is another area that we're very engaged and working on. >> So for a lift and shift scenario one of the things that we're concerned about on the customer side, is cost. When we're backing up to the cloud, it doesn't cost must to get it there but getting it back. Do you guys help with that scenario? >> We do, because first of all, all of the data is going to be deduped before it gets sent out to the cloud so it's a small amount of data that needs to come back. And second, with this most recent announcement if you're using the cloud DR capabilities you can bring that application back up in the cloud itself without having to bring the data back. So the data is stored and it's sort of format on the cloud is certainly the best value. Then you could actually bring that application up in AWS, as an example. >> So let's talk too from a staff retention, or staff training rather, what do my staff have to learn new of these solutions, if anything? >> It's a great question. Because of the things we pride ourselves on is making them seamless extensions of the products that we already sell. So that you don't have to introduce a brand new product to your environment. You can manage from NetWorker from Data Protection Suite to initiate the launch and retention or the Cloud DR. >> So the look and feel is what they're using today. What we've done is we've just extended the use cases that our customers are coming to us on, saying, I need to move data to the cloud, I want to make sure that I can leverage my existing technology and get that done. That's a big advantage to us because our customers are comfortable, understand the tools that they leverage today, and if they can just extend it instead of bringing something new in and learning something new, because every one of our customers does not have time to learn new tools, new products-- >> Well they really don't want that. >> Yeah, they don't want that. >> That's the last thing they want, right. >> Yeah, and I wanted to add on to what Beth said. We've been selling in the cloud for well over a year now. So this is just another few use cases that we're adding to our customers' requirements. So we have hundreds of petabytes that are being protected in the cloud today, whether it's some of the ones that Beth mentioned or Virtustream, so we're already in the cloud. This is just a more thought leadership. This is more of a technology leadership that we're announcing today. So we're extending our leadership as we extend our customers to the cloud. >> So what are the big picture stuff? We're talking about people moving more work. You've got tons of data, right? We have so much more. How is all this coming together in terms of where your section of the business is going, how you're responding to those kinds of trends, and what do you see coming down the road? >> It's a great question. So one of the things we talk about is people moving away from data centers to centers of data. When you look at with IOT, with all the distribution of where data is stored or coming from right now, it becomes more and more of a challenge to make sure A) You know where all your data is and B) That you're confident that it's protected. So given the capabilities and more and more distributive services giving people the ability to see where all of the data resides and the protection state, is one thing. I think the term data fog is beginning to start coming into the conversation. People have been mentioning it. It makes a point, right? It's not in one place anymore, it's not a lake. It's all over the place. Think about the challenge for CIOs to have the confidence that it's still protected and that they could get it back. >> So with all this distributed data one of the challenges that we have is the metadata around that data. Knowing what's where, analytics around that. Do you guys help solve that challenge? >> We do, in a few different ways. >> One thing in particular is, as of last year, we have a SaaS offering which is ECDA, Enterprise Copy Dating Analytics. That lets you have a global view of where your data is and it's really moving into more machine learning. So it's not just reporting. It's allowing the customer to get smarter and smarter about where his or her data is maybe not as protected as it could be and where they might want to take some actions to increase their levels of protection. >> We're pretty exited about it because we've gotten an overwhelming response from our partners and our customers that this is where we need to go. So everything we're talking about has been things that we've been going through with our customers for years saying, Okay we need to get here, we need to get here. and how do you help us get to that path vs. doing these individual things? There's a strategy behind all of this but it really comes back from our customers and our partners saying, This is what we need, we know you're going to get us here but let's try to get there sooner than later. I think Beth and team have delivered on that again. >> So this is a transformation. Again, big theme of this show. Help us with the big picture. How does this copy data, secondary data market that you guys are helping us with solve that support that digital transformation? >> We heard Michael talk about it on stage today, right? The ability of what we can do having a greater amount of leverage around the data that we all have right now is mind blowing in terms of accelerating medical diagnosis, driving more capability around awareness, around risks and sometimes of security. There's a level of knowledge that we've become more adept at mining the data that we have and then leveraging, machine learning, to analyze it. It's going to give us leaps and bounds of acceleration in whatever business objective we're looking out to achieve. >> If you had to pick a use case you're most proud of when it comes to your new solution set, give us the best one. >> I'll let you go first. >> I love the new things that we've done with the cloud data protection. Giving people the ability to be able to extend seamlessly is something that they've been asking for and to have it now and be able to offer it is really fantastic. >> I'd have to agree. Our customers want data protection everywhere. They don't care where that data sits. They don't want to be handcuffed on where they can actually protect their data or recover from that data. So they're working really strongly and tightly with us because we are the leader in this market and we just proved it again that we're going to keep up that leadership. Data protection everywhere is important and I think the cloud extension and leadership is what puts us in that position. We're really excited about that. >> It's an asset no matter where it is, right? So you have to protect it. >> That's right. >> Data fog, though, I think I live my life in data fog. (laughter) >> I like that, that's cool. >> Beth and Jim, thanks for being with us. We appreciate the time on The Cube and best of luck. >> Thank you. >> Nice talking to you. >> We'll continue live here from Las Vegas with Dell EMC World 2017 and you're watching The Cube.

it's the cube covering vmworld 2015 brought to you by VMware and its ecosystem sponsors now your hosts John furrier and Dave vellante okay welcome back everyone we are live in San Francisco moscone north lobby here for vmworld 2015 this is silicon angles the Q this is our flagship program we go out to the events and extract the Sigma noise i'm john frieda found us look at a humdrum echoes dave vellante co-founder Wikibon calm research our next guest is Robin Matlock the CMO of VMware we are in the cubes set and the two sets here this year we have the director set new innovation here at vmworld again setting the stage the leadership of VMware and the person behind all this is Robin Matlock CMO thanks so much first of all for letting us come and do your lobby here it's been great so far it's one say thank you you guys you know we love having you you're a big part of this program for us six years now we've been watching the transformation it's been interesting this year has been fun to watch because of all the outside noise and certainly the products are doing great at Gelson's keynote this morning was really a home run he really knocked it out of the park so the messaging is tight this year really good it's looking forward it's got a longer perspective it's not a short-term driven messaging it is that by design i mean this is kind of showing the future yeah absolutely we really tried to change things up this year and you know that's important is that we have to reinvent we have to make ourselves relevant and part of it is taking something like the program at vmworld and making sure that every year it delivers fresh new a different perspective for these attendees so we changed things we started with Karl talking about one cloud any application any device very much frame the conversation for V emerald in the keynotes but also more of a 12 18 24 month kind of view and today we closed with Pat Gelsinger on the stage and you're right that was all about forward-looking what lies in the next to 35 years and what is our point of view on it and I agree with you I think that really did an amazing job this morning the ecosystems changing we've been monitoring the ecosystem on our crowd chat platform some great conversations with the thought leaders it's changing the demographics seem to be changing you own IP they got great market share and traditional IT that's being where's legacy wheelhouse so the Ops guys are all here but sad event the DevOps focus is really scratching the services at a whole new developer community do you guys were you guys aware of that is that kind of like the big AHA this year was it is that a big part of the ecosystem can you share some color and how this dev ops team is now resonating through the ecosystem sure and without a doubt it i wouldn't call it an aha i think it's a very strategic intentional move frankly the reality is the world is changing and it's impacting IT you know as part of the core of that transformation so I T needs to change to be relevant for business and DevOps is a part of that how are we going to build applications in this cloud native world how are we going to do it faster more agile and serve our businesses quicker well DevOps plays a key role there and what we can do is help IT serve at development community I mean obviously we had a lot of big announcements that are coming out this week and we wanted to make sure we had a way to deliver that content to this new audience so the ecosystem is evolving and it needs to because part of it is how we all transform so I'm glad you're noticing some of those changes are very strategic I mean the other thing about vmworld that that is been since day one is the core of the practitioner you know community and the peers and people are excited to be here they look forward to it they come early to hang out with their friends but a lot of parties but the content is very much around the customer and so you've been able to preserve that but at the same time you know provide an interesting layer of you know senior management perspectives high level customers when you talk about that chair at the core we really do see vmworld as a technical conference that would be the one thing that's anchored in the ground now as the people that need to engage with technology and as technology itself shifts and changes and VMware's offerings shift and change the ecosystem we have to be able to address a broader set of different types of audience so the practitioners are core but now you get the DevOps audience you get mobility professionals you get networking opps people you get you know storage folks so although the content will always stay very educational and technical in nature i do think we've done a really good job starting to broaden to appeal to these different audience types and so that's the other piece that i wanted to address is i think you know the roles are shifting with in IT and sometimes to me what this conference does it allows people who want a different career path to find one here they don't have to go to 10 different conferences and that's unique I think in the industry there was a wonderful tweet you'll have to pull it up for your audience and I'm sorry I can't reference the gentleman that did it but it it was at the end of yesterday while KITT kolbert and Rio Pharaoh were presenting we ran over a little bit so some people were moving on to their sessions and he tweeted that those that are leaving the hall right now I predict they may not have jobs five years from now because of the shifts and changes and how relevant it is to be in this cloud native world well I think if you know initially the the knee-jerk reaction to that change is somewhat negative and disconcerting but I think when people come to this event and they get back on the plane they start thinking about the opportunities they see this affords a lot of different avenues and it's really grown tremendously over the years i think vmware is doing a lot to help people bridge the two worlds and that's a big part of our philosophy it's a big part of how we're helping customers kind of get from point A to point B and helping the practitioners leverage the skills they've built over the last decade and really apply those to what's going to be required of them on the next decade I'm glad you mentioned that was a big theme of Pat's talk you know the bridge and you hear a lot of talk from the analyst community you know Gartner particular talks about bimodal IT my friends at IDC talk about the third platform but the problem i've always had with that is it's more silos like you know you don't want to be part of the old and i want to be part of it both what you guys are saying your messaging is we're going to bring the existing that asset base that you have along we recognize you want to go from point A to point B without just ripping everything out and so that's fundamental to the strategy and that's coming through in the messaging that's great to hear that is funny Massimino Ray fairing is the guy who said the cube we just pulled it up on our real-time analytics system but he said I feel those leaving you know during kit cobra session may be without a job in five years fact hashtag fact but that is a vibe of the show what are some of the stats on the number share some of the inside the numbers attendees sessions what can you share yes I mean I'm really proud of the stats actually so we exceeded our goal we have 23 5 23 thousand and five hundred plus attendees and they're still coming in the door as you can see out at the registration desk so biggest vmworld ever really solid growth and the demographics is shifting we're starting to see more of these new audience types so really excited about that we have over 400 breakout sessions very well subscribed the demand for the breakouts is quite incredible we have almost 300 289 or so exhibitors and the solutions exchange there is simply no more floor space if I could add another building I'd be able to scale out and get another hundred in the door but I'm just simply have a finite resource of space and we're chatting over Howard feet let's go there so I got it I got to ask about that there's never anyone it's always hard to please everybody at these events and you always feel oh nothing new at vmworld they have people coming oh sorry so fresh and relevant so you have you have a lot of people from the old guard and the new guard kind of coming together as Pat said cowboys and farmers kind of working together it's just quote on the q what is that vibe right now how would you describe that because you thought people scratching their heads and saying what's new this year femur I'm not seeing anything new so for the record sheriff Oakes what's new this year absolutely the new stuff yeah I think there's a lot of new stuff but we are getting into a more iterative development world where you know we're doing kind of lots of little or releases instead of you know five years ago where you just you held out for two years and then it was just one huge release you've got the evo SDDC that was new right and within that STD evo SDC manager brand new quickest way to really implement and get to a software-defined data center a tightly integrated software stack with new management capabilities to under you know manage the underlying hardware in infrastructure you have the whole photon platform right which kit Kolbert and rail Pharaoh launched so the photon platform which is largely open sourced with the exception of the very small in a just enough virtual machine all brand new photon OS photon controller the photon machine part of the photon platform then today we talked about business mobility so you have the workspace sweet Sanjay talked about that what we're doing with air watch we also then of course rolled out security and NSX 6.2 we have all kinds of new cloud services that came out vCloud air the disaster recovery on demand some new sequel database as a service technology so they're really I can just focus on stage Tigers are shaking it up here guys so I got to ask you so as a CMO your job is to kind of watched the trends walk to fashion if you will in the industry and you know the trend oh it says don't fight fashion you got to be fashionable and be relevant I get that but it's a hard thing to market vmware is its unique company you have a core a lot of things going on around the company I'll see the Federation EMC conversations you have customers that are changing hat laid out essentially a whole new future vision what's going to happen to VMware it basically devices world global global company how do you market that and how do you what's your approach and and what's your philosophy how do you how do you do that I think one of the most important things and I hope you got this from the keynotes this week is we are unifying behind a common narrative that is really relevant to our business and the value we deliver to our customers and everything we do somehow connects to that storyline and that's really this concept of one cloud any application any device and ago by one cloud I mean really the simplicity of managing something as one but it's really about a multiple cloud unified hybrid cloud strategy all delivering any application on any device I think the other common theme that we anchored around is what is our relevance to applications because at the end of the day that's what the business cares about so we've worked really hard to make sure that our customers understand how is it what we're doing is enabling them to deliver modern and traditional applications to their business really in any way they want to comply observation there Robin is when so that's great to have the high level messaging but when you test beneath Italy we ask pat ok so how do you live in that heterogeneous world and he basically explained ok took each of the levels of the stacks that is what we're doing there we can't do it at the you know this level we are will do it at this level with a very precise answer as to how that strategy turns along to reality so that to me is the ultimate test not just marketing a little marketing tagline and the reason why that's so important is because that when you test it with the customers and they're actually gonna be doing it you know down the road can't B's give a tie back and that's yeah thank you i would agree customers it has to be has to be relevant to customers I the end of the day they need trust in the vendor ok that I ask a question that everyone wants to know what's the party the big party everyone I mean VMware always has parties as so many parties going on did the event I mean I think there's like 10 different parties happening tonight now if we can't go to all of them but we'll try our best the big party at 18 c 4 share the big party yes it is always one of the highlights of the week i must say for all this technology it boils down to how great is a party well I have good news the San Francisco Giants cooperated and they went ahead and left town for a Wednesday night so we're able to get the park which is fabulous love being at the park so we're back at the park we're featuring two great bands and we very intentionally picked bands that are the up-and-comers you know not the kind of tried and true rock and roll we're going for someone sees every year all the different question the envelope John so you better get comfortable and come out and hang out with us Neon Trees opens up the act and then we're closing with Alabama Shakes and the rumor on the street is if you want to go to a good concert you go see Alabama Shakes perform so come join us it's going to be our walk we'll do our best to sneak into the VIP booth like they did her imagine dragons I hope to see you there okay thanks so much for coming on the guy know you're super busy thanks for sharing the insights and time and update almost love what you guys are doing it's a great audience love to have you thank you it would be back more live at San Francisco moscone north the Emerald 2015 things are shaking up up and coming new things a lot of stuff happening we'll be back after this short break