we're back at vemma in 2022 we're here at the aria hotel in las vegas this is thecube's continuous coverage we're day two welcome to the cxo session we have ceo cto cso chief strategy officer brett diamond is the ceo justin jardina is the cto and dante orsini is the chief strategy officer for 11 11 systems recently named i guess today the impact cloud service provider of the year congratulations guys welcome thank you welcome back to the cube great to see you again thank you great likewise so okay brett let's start with you tell give us the overview of 11 1111 uh your focus area talk about the the the island acquisition what that what that's all about give us the setup yeah so we started 11-11 uh really with a focus on taking the three core pillars of our business which are cloud connectivity and security bring them together into one platform allowing a much easier way for our customers and our partners to procure those three solution sets through a single company and really focus on uh the three main drivers of the business uh which you know have a litany of other services associated with them under each platform okay so so justin cloud connectivity and security they all dramatically changed in march of 2020 everybody had to go to the cloud the rather rethink the network had a secure remote worker so what did you see from a from a cto's perspective what changed and how did 11 respond sure so early on when we built our cloud even back into 2008 we really focused on enterprise great features one of which being uh very flexible in the networking so we found early on was that we would be able to architect solutions for customers that were dipping their toe in the cloud and set ourselves apart from some of the vendors at the time so if you fast forward from 2008 until today we still see that as a main component for iaz and draz and the ability to start taking into some of the things brett talked about where customers may need a point-to-point circuit to offload data connectivity to us or develop sd-wan and multi-cloud solutions to connect to their resources in the cloud in my opinion it's just the natural progression of what we set out to do in 2008 and to couple that with the security um if you think about what that opens up from a security landscape now you have multiple clouds you have different ingress and egress points you have different people accessing workloads in each one of these clouds so the idea or our idea is that we can layer a comprehensive security solution over this new multi-cloud networking world and then provide visibility and manageability to our customer base so what does that mean specifically for your customers because i mean we saw obviously a rapid move toward endpoint um cloud security uh identity access you know people really started thinking rethinking that as opposed to trying to just you know build a moat around the castle right um what does that mean for for your customer you take care of all that you partner with whomever you need to partner in the ecosystem and then you provide the managed service how does that work right it does and that's a great analogy you know we have a picture of a hamburger in our office exploded with all the components and they say a good security policy is all the pieces and it's really synonymous with what you said so to answer your question yes we have all that baked in the platform we can offer managed services around it but we also give the consumer the ability to access that data whether it's a ui or api so dante i know you talk to a lot of customers all you do is watch the stock market go like this and like that you say okay the pandemic drove all these but but when you talk to csos and customers a lot of things are changing permanently first of all they were forced to march to digital when previously they were like we'll get there i mean a lot of customers were let's face it i mean some were serious about it but many weren't now if you're not a digital business you're out of business what have you seen when you talk to customers in terms of the permanence of some of these changes what are they telling you well i think we go through this for ourselves right the business continues to grow you've got tons of people that are working remotely and that are going to continue to work remotely right as much as we'd like to offer up hybrid workspace and things like that some folks are like hey i've worked it out i'm working out great from home right and also i think what justin was saying also is we've seen time go on that operating environment has gotten much more complex you've got stuff in the data center stuff it's somebody's you know endpoint you've got various different public clouds different sas services right that's why it's been phenomenal to work with veeam because we can protect that data regardless of where it exists but when you start to look at some of the managed security services that we're talking about we're helping those csos you get better visibility better control and take proactive action against the infrastructure um when we look at threat mitigation and how to actually respond when when something does happen right and i think that's the key because there's no shortage of great security vendors right but how do you tie it all together into a single solution right with a vendor that you can actually partner with to help secure the environment while you go focus on the things they're more strategic to the business i was talking to jim mercer at um red hat summit last week he's an idc analyst and he said we did a survey i think it was last summer and we asked customers to your point about there's no shortage of security tools how do you want to buy your security and you know do you want you know best to breed bespoke tools and you sort of put it together or do you kind of want your platform provider to do it now surprisingly they said platform provider the the problem is that's aspirational for a lot of platforms providers so they've got to look to a managed service provider so brett talk about the the island acquisition what green cloud is how that all fits together so we acquired island and green cloud last year and the reality is that the people at both of those companies and the technology is what drove us to making those acquisitions they were the foundational pieces to eleven eleven uh obviously the things that justin has been able to create from an automation and innovation perspective uh at the company is transforming this business in a litany of different ways as well so those two acquisitions allow us at this point to take a cloud environment on a geographic footprint not only throughout the us but globally uh have a security product that was given to us from from the green cloud acquisition of cascade and add-on connectivity to allow us to have all three platforms in one all three pillars so i like 11 11 11 is near and dear to my heart i am so where'd the name come from uh everybody asked me this question i think five times a day so uh growing up as a kid everyone in my family would always say 11 11 make a wish whenever you'd see it on the clock and uh during coven we were coming up with a new name for the business my daughter looked at the microwave said dad it's 11 11. make a wish the reality was though i had no idea why i'd been doing it for all that time and when you look up kind of the background origination derivation of the word uh it means the time of day when everything's in line um and when things are complex especially with running all the different businesses that we have aligning them so that they're working together it seemed like a perfect man when i had the big corner office at idc i had my staff meetings at 11 11. because the universe was aligned and then the other thing was nobody could forget the time so they gave him 11 minutes to be there now you'll see it all the time even when you don't want to so justin we've been talking a lot about ransomware and and not just backup but recovery my friend fred moore who you know coined the phrase backup is one thing recovery is everything and recovery time network speeds and and the like are critical especially when you're thinking cloud how are you architecting recovery for your clients maybe you could dig into that a little bit sure so it's really a multitude of things you know you mentioned ransomware seeing the ransomware landscape evolve over time especially in our business with backup and dr it's very singular you know people protecting against host nodes now we're seeing ransomware be able to get into an environment land and expand actually delete backups target backup vendors so the ransomware point i guess um trying to battle that is a multi-step process right you need to think about how data flows into the organization from a security perspective from a networking perspective you need to think about how your workloads are protected and then when you think about backups i know we're at veeam vmon now talking about veeam there's a multitude of ways to protect that data whether it's retention whether it's immutability air gapping data so while i know we focus a lot sometimes on protecting data it's really that hamburg analogy where the sum of the parts make up the protection so how do you provide services i mean you say okay you want immutability there's a there's a line item for that um you want faster or you know low rpo fast rto how does that all work for as a customer what what am i buying from you is it just a managed service we'll take care of everything platinum gold silver or is it if if you don't mind so i'm glad you asked that question because this is something that's very unique about us years ago his team actually built the ip because we were scaling at such an incredible rate globally through all our joint partners with veeam that how do we take all the intelligence that we have in his team and all of our solution architects and scale it so they actually developed a tool called catalyst and it's a pre-sales tool it's an application you download it you install it it basically takes a snapshot of your environment you start to manipulate the data what are you trying to do dave are you trying to protect that data are you backing up to us are you trying to replicate for dr purposes um you know what are you doing for production or maybe it's a migration it analyzes the network it analyzes all your infrastructure it helps the ses know immediately if we're a feasible solution based on what you are trying to do so nobody in the space is doing this and that's been a huge key to our growth because the channel community as well as the customer they're working with real data so we can get past all the garbage and get right to what's important for them for the outcome yeah that's huge who do you guys sell to is it is it more mid-sized businesses that maybe don't have the large teams is it larger enterprises who want to complement to their business is it both well i would say with the two acquisitions that we made the go-to-market sales strategies and the clientele were very different when you look at green cloud they're selling predominantly wholesale through msps and those msps are mostly selling to smbs right so we covered that smb market for the most part through our acquisition of green cloud island on the other hand was more focused on selling direct inbound through vars through the channel mid enterprise big enterprise so really those two acquisitions outside of the ip that we got from the systems we have every single go-to-market sale strategy and we're aligned from smb all the way up to the fortune 500. i heard a stat a couple months ago that that less than 50 of enterprises have a sock it blew me away and you know even small businesses need one they may not be able to afford but certainly a medium size or larger business should have some kind of sock is it does that stat jive with what you're seeing in the marketplace 100 if that's true the need for a managed service like this is just it's going to explode it is exploding yeah i mean 100 right there is zero unemployment in the cyberspace right just north america alone there's about a million or so folks in that space and right now you've got about 600 000 open wrecks just in north america right so earlier we talked about no shortage of tools right but the shortage of head count is a significant challenge big time right most importantly the people that you do have on staff they've got alert fatigue from the tools that they do have that's why you're seeing this massive insurgence in the managed security services provider lack of talent is number one challenge for csos that's what they'll tell you and there's no end in sight to that and it's you know another tool and and it's amazing because you see security companies popping up all the time billion dollar evaluations i mean lacework did a billion dollar raise and so so there's no shortage of funding now maybe that'll change you know with the market but i wanted to turn our attention to the keynotes this morning you guys got some serious love up on stage um there was a demo uh it was a pretty pretty cool demo fast recovery very very tight rpo as i recall it was i think four minutes of data loss is that right was that the right knit stat i was happy it wasn't zero data loss because there's really you know no such thing uh but so you got to feel good about that tell us about um how that all came about your relationship with with veeam who wants to take it sure i can i can take a step at it so one of the or two of the things that i'm um most excited about at least with this vmon is our team was able to work with veeam on that demo and what that demo was showing was some cdp-based features for cloud providers so we're really happy to see that and the reason why we're happy to see that is that with the veeam platform it's now given the customers the ability to do things like snapshot replication cdp replication on-prem backup cloud backup immutability air gap the list goes on and on and in our opinion having a singular software vendor that can provide all that through you know with a cloud provider on prem or not is really like the icing on the cake so for us it's very exciting to see that and then also coupled with a lot of the innovation that veeam's doing in the sas space right so again having that umbrella product that can cover all those use cases i'll tell you if you guys can get a that was a very cool demo if we can get a youtube of that that that demo i'll make sure we put it in the the show notes and uh of this video or maybe pop it into one of the blogs that we write about it um so so how you guys feel i mean this is a new chapter for you very cool with a couple of acquisitions that are now the main mainspring of your strategy so the first veeam on in a couple years so what's the vibe been like for you what's the nighttime activity the customer interaction i know you guys are running a lot of the back end demos so you're everywhere what's the what's the vibe like at veeamon and how does it feel to be back look at that one at dante as far as yeah you got a lot of experience here yeah let me loose on this one dave i'm like so excited about this right it's been it's been far too long to get face to face again and um veeam always does it right and i think that uh for years we've been back-ending like all the hands-on lab infrastructure here but forget about that i think the part that's really exciting is getting face-to-face with such a great team right we have phenomenal architects that we work with at veeam day in and day out they put up with us pushing them pushing and pushing them and together we've been able to create a lot of magic together right but i think it's you can't replace the human interaction that we've all been starving for for the last two years but the vibe's always fantastic at veeam if you're going to be around tonight i'll be looking forward to enjoying some of that veeam love with you at the after party yeah that's well famous after parties we'll see if that culture continues i have a feeling it will um brett where do you want to take 11 11. a new new phase in all of your careers you got a great crew out here it looks like i i love that you're all out and uh make some noise here people let's hear it all right let's see you this is the biggest audience we've had all week where do you want to take 11 11. i think you know if uh if you look at what we've done so far in the short six months since the acquisitions of green cloud and ireland obviously the integration is a key piece we're going to be laser focused on growing organically across those three pillars we've got to put more capital and resources into the incredible ip like i said earlier that just and his team have created on those front ends the user experience but you know we made two large acquisitions obviously mna is a is a key piece for us we're going to be diligent and we're probably going to be very aggressive on that front as well to be able to grow this business into the global leader of cloud connectivity and security and i think we've really hit a void in the industry that's been looking for this for a very long time and we want to be the first ones to be able to collaborate and combine those three into one when the when the cloud started to hit the steep part of the s-curve kind of early part of the last decade people thought oh wow these managed service providers are toast the exact opposite happened it created such a tailwind and need for consistent services and integration and managed services we've seen it all across the stack so guys wish you best of luck congratulations on the acquisitions thank you uh hope to have you back soon yeah thank you around the block all right keep it right there everybody dave vellante for the cube's coverage of veeamon 2022 we'll be right back after this short break

>>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.

(digital music) >> Welcome back to VeeamON 2022. We're in the home stretch, actually, Dave Nicholson and Dave Vellante here. Daniel Fried is the general manager and senior vice president for EMEA and Worldwide Channel. Daniel, welcome to theCUBE. You got a big job. >> No, I don't have a big job. I have a job that I love. (chuckles) >> Yeah, a job you love. But seriously Veeam, all channel. I mean it has been. >> Yeah, I mean, it's something which just, just a few seconds on, on that piece here, the channel piece, it's something that I love because the ecosystem of partners, an ecosystem of partners, is something which is spending its time moving and developing and changing. You've got a lot of partners changing their roles, their missions, the type of services, type of product that they offer. They all adapt to what the market needs and all the markets around the world are very different because of all these different cultures, languages, and everything. So it's very interesting. In the middle of all that, you know, these tens of thousands of partners and you try to create and try to understand how you can organize, how you can make them happy. So this is fantastic. >> So you're a native of the continent in Europe, obviously. We heard Anton, today, who couldn't be here or chose not to be here, cause he's supporting family and friends in Ukraine. What's the climate like now? Can you share with us what's it like Europe? Just the overall climate and obviously the business climate. >> So the overall climate, the way I see it or I feel it, and obviously there may be some different opinions, that I will always appreciate as also very good opinions. My view is that it seems in Europe that there are a distinction between what people do for businesses, Their thinking for the business, which may be impacted by the situations that we know in Europe between, because of obviously the issues between Ukraine, because of Russia, let's put it this way. And then there is the personal view, which is okay. That happens from time to time, but life continues and we just continue pushing things and enjoying life, and getting the families together and so on and so forth. So, this is in most of the countries in Europe. Obviously, there are a number of countries, which are a little bit more sensitive, a little bit more impacted. All the ones who are next to Russia, or Belarus, so on and so forth. From an emotional standpoint, which is totally understandable. But overall, I'm pretty impressed by how the economy, how people, how the businesses are, you know, continue to thrive in Europe. >> Has Brexit had any...? What impact, if any, has it had? >> So for us Veeam, the impact is... So first there is an impact which is on the currencies. So all the European currencies are no, have slowed down and, and the US dollar is becoming much stronger. >> Despite its debt. >> Right. >> Shouldn't be, but yeah. >> But that doesn't impact on the business. I just... >> Yeah. Right. >> So everything which is economical, macroeconomical is impacted. We have the inflation also, which has an impact, which also has increased because of the oil, because of the gas of everything that they have been stuck, to be stuck. But people get used to it. As Veeam from a business standpoint, one of the big things is we stopped sales, selling into Russia and into Belarus and we are giving our technology, our product, our solutions for free to Ukraine. And that was a piece of the business that we were doing, within EMEA, which was non-neglectable. So it's, I would say a business hole, now that we need to try to fill with accelerating the business service in the other countries of Europe. >> I mean, okay. So thank you for that but we really didn't see it in last quarter's numbers that you guys shared with I mean, IBM. Similarly IBM said, it's noticeable, but it's not really a big impact on our business, but given the cultural ties that you had to Russia and the affinity, I mean you knew how to do business in Russia. It's quite remarkable that you're able to sort of power through that. How about privacy in, around data, in Europe, particularly versus the US? it seems like Europe is setting the trend on things like privacy, certainly on things like acquisitions, we saw the arm acquisition fail. >> Yeah. So there is a big difference. Effectively, there is a big difference between, I would say North America and the rest of the world. And I would say that EMEA, and within EMEA would say the EU is leading very much on what we call server sovereign cloud. So data privacy, which in other words, data is to as much as possible is to remain within either the EU or better within each of the countries, which means that there is again... It's I would say for in EMEA it's good, I would say for the business, for the partners, because then they have to develop around the cloud a number of functions to ensure that because of this data privacy, because of this GDPR or rules and things, all the data remains and resides in a given geographical environment. So it's, which is good because it creates a number of opportunities for the partners. It makes obviously the life of customers and their self a bit more difficult. But again, I think it's good. It's good. It's part of all the way we structure and we organize. And I think that it's going to expand because data is becoming so key, a key limit, a key asset of companies that we absolutely need to take care of it. And it is where Veeam plays a big role in that because we help paying companies managing their data and secure the data in sort of way. >> Yeah. Ransomware has been a big topic of conversation this week. Do you sense that the perception of that as a threat is universal? Are there, are there differences between North America and the EU and other parts of the world? Universal? >> Yeah, it is universal. We see that everywhere. And I think this is a good point, a good question too, is that it's very interesting because we need to get acquainted to the fact that we are going to ever. And so we are going to be attacked. No way out, no. There... Anybody the morning, is waking up, is going on emails and click clicking on an email. Too late. Was a run somewhere. What can you do against that? You know, all humans make mistakes. You can't so it'll happen, but where, where it's absolutely very important and where Veeam plays a big role and where our partners are going to play an even bigger role with our technology is that they can educate the customers to understand that, to have run somewhere is not an issue. What has, what happened is not a problem. What they have to do is to organize so that if they have run somewhere, their letter is safe. And this is where our place a big place. A couple hours back, I was, I was doing a kind of bar with something else. It's totally crazy, but that's okay. I'm going to say it. It's about the COVID. What, no, what do we do? Do we have, do we have something against COVID? No. People were going to get COVID, certainly many people still doing it, but what is important is to be capable of not being too sick. So it is the prevention, which is important. It's the same thing here. So there is this mindset we have psychologically with the partners and they have, they have to provide that services to their customers on how to organize their data using the technology of Veeam in order to be safe, if anything happens. >> So another related question, if I may. When Snowden blew the whistle on the NSA and divulged that the NSA was listening to all the phone calls, there was seemed to be at the time, as I recall, a backlash sentiment in Europe, particularly toward big tech and cloud providers and skepticism toward the cloud. Has the pandemic and the reliance on cloud and the rise of ransomware changed that sentiment? Had the sentiment changed before then? Obviously plenty of Cloud going on in Europe. But can you describe that dynamic? >> Yeah, no, I think that's... Yeah. I think that people were too... You know, as usual. It absolutely reminds me when I was at VMware, when we went from the physical boxes to the virtual machines. I remember the IT people in the company said, "No, I want to be capable of touching." Something here. When you talk about cloud, you talk about something which is virtual, but virtual outside, even outside somewhere. So there is a resistance, psychological resistance to where is my data? How do I control my data? And that is, I think that is very human. Then you need to, you know, it takes time. And again, depending on the cultures, you need to get acquainted to it. So that's what happened be before the pandemic, but then the pandemic took place. And then there was a big problem. There was nobody anymore in the data centers because they couldn't work there and then people were starting to, to work remotely. So the IT needed to be organized to compensate for all these different changes. And cloud was one of them where the data could be stored, where the data could reside, where things could happen. And that's how actually it has accelerated at least in a number of countries where people are a bit leg out to accept the adoption of cloud, cloud-based data. >> So is there a difference in terms of the level of domination by a small group of hyperscale clouds versus smaller service providers? You know, in theory, you have EU behaving in a unified way in sort of the same way that the United States behaves in sort of a federated way. Do you have that same level of domination or is there more, is there more market share available for smaller players in cloud? Any regional differences? >> Yeah. There are big differences. There are big differences again, because of this sovereignty, which is absolutely approved very much in Europe. I'm tell you, I'm going... I'm giving you an example that it was in, I think in October last year, somewhere. The French, the French administration said, "We don't want anymore. Any administration investing in Microsoft 365, because the data is in Azure. The data is out in the cloud." That's what they said. So now these last days, this last week that has changed because Microsoft, you know, introduced a number of technologies, data centers in France, and so on and so forth. So things are going to get better. But the sovereignty, the fact that the data, the privacy of data, everything has to remain in the countries is doing something like the technology of the hyperscalers is used locally wrapped by local companies like systematic writers, local systematic writers, to ensure that the sovereign is set and that the privacy of the data is for real and according to GDPR. So again, it's a value add. It makes things more complex. It doesn't mean that the Google, the Google cloud, the Azure, or the AWS are not going to exist in Europe, but there are going to be a number of layers between them and the customers in order to make sure that everything is totally brought up and that it complies with the EU regulations. >> Help us understand the numbers, Daniel. So the number of customers is mind-boggling it's over 400,000 now, is that right? >> Yeah. Correct. >> Yes. Comparable to VMware, which is again, pretty astounding and the partner ecosystem. Can you help us understand the scope of that? Part one. part two is how do you service and provide that partnership love to all those companies? >> The partners. So yeah, we have about 35,000 around the world, 35,000 partners, but again, it's 10 times less than Microsoft, by the way. So, and this is very interesting. I often have the questions, how do we manage? So first of all, we do tiering, like anybody does. >> Sure. >> We have an organization for that. And we have a two chair sales motion. That means that we use the distributors to take care of the mass, the volume of the smaller, smaller partners. We help the distributors, we help. So it's a leverage system. And we take care obviously more directly, of the large partners or the more complex partners or the ones of interest. But we don't want to forget any of those because even the small one is very important to us because he has these customers maybe in the middle of nowhere, but he's got a few of them. And again, to have a few of these customers, when you adapt, you know, it makes.. At the end, it makes a big business. You know, one plus one plus 1 million times makes, you know, makes huge things. And plus we are in the recurring business now, now that we've introduced three, four years ago, our subscription licenses, which means that it's only incremental. So it's just like the know the telephony, know the telephony business, where the number, the cell phone plans, you know, it's always grabbing as many as possible consumers in this case. So it was the same thing or I have the same, the same kind of, I do a parallel with the French, the French bakery, the French Boulangerie where I say they do their business with the baguette. And then from time to time, they sell the patisserie or they sell the cake, cookie or something, but the same of small things makes a big things. So it is important to have all these small partners everywhere that, that have their small customers or big customers, and that can serve them. So that's that's way. We segment by geography and what we do now is, it is something which is new. We segment by competencies. So it's what I call the soft segmentation. Because if not, we will have a lot of these partners competing to each other, just to sell Veeam. Veeam being number one in many countries, that is what is taking place. And we want them to be happy. We want, we don't want them to fight against each other. So what we do is we do soft segmentation and soft segmentation is this partner is competent in this field with that kind of use case doing this or this or this or this. It's just like you, when you go to the restaurant, you want the restaurant next to your place. So you click for the geography and then you want to, to go for Indian food. So you click restaurant Indian food, and then you want something. So we want to give that possibility to the customers to say, "Yeah, I think I know what I want." And then you can just click and get the partners or the list of partners, which are the most suited for, for his needs. So it's what I call the soft segmentation. The other thing which is important is the network. It's very interesting because when we look at a lot of companies, it's not the network. You've got VARs, you've got cloud and service providers. You've got SARs, you've got all the things. But if you take each of those individually, they don't have the competencies to answer all the request of the customer. So the networking is partnering with partner. That means to have the, the connection so that the partner A who has his customer, but these customer's are requests that this partner cannot fulfill because it's not its competency. That it's going to find the partners or the other partners that can feel this competency and work together. And then it's between them to have the model that they want so that together they can please the customer with their requests. >> Do you ever want to have VeeamON... I mean, I'm happy it's in the US and I like going to Europe, but you, have you ever want to have VeeamON in Europe? >> Yeah, we have VeeamON. We have many VeeamONs in Europe. >> Yeah. The mini ones. Okay. >> VeeamON tours. >> Globally. So where do you have them? >> Europe in APJ, that's what we do. Yes. >> Where do you do it in a APJ? In Japan, obviously in... >> Yeah. I don't know all the locations, tens and tens of them. >> A lot of them. Okay. >> The small ones. What we do, replicate what is done here on one day and then it goes. >> And you'll do that in UK. France, Germany. >> Yeah. Yeah. >> Local. >> And also small countries in Saudi, in South Africa, in Israel, in Bulgaria, in all these countries. Because, you know, we can be virtual. That's nice. >> Oh, right. >> But I love to be having a breakfast or a lunch or drink next to a partner or a customer because you learn so much more. The informal information is so important to understand how the business and how the market develops and what the needs are of customers and so on and so forth. >> How was the European attendance this year? It must have been down. It's hard to get into US. It's actually easier to go back to Europe. >> Virtually I, don't have the numbers, but I- >> No. Virtual. I'm sure it was huge. Yeah. But physical. >> Physical here, we've got about 300, 300 Europeans. >> Yeah. Okay. Out of, do we know? What are the numbers here? Do we know? Have we heard numbers? >> I know 45 was supposed to be around 45K combined. >> That's hybrid. >> So, yeah. >> It's hard to get into the US. We're still figuring that out. So I'm not surprised, but now you... >> But it's complimentary. Yeah. >> Do you go to 'em all? >> No >> You can't. >> No. That's not possible. I cannot. I actually, I would love... >> But some, yes. >> I would love to be capable of duplicate myself, but- >> You go to the one. >> I'm unique. >> You go to the one in France, obviously. Yeah? >> Yeah. Usually in France. Well... >> Depends if you're home. >> Yeah. You know, that is interesting is, the way we organize, the way we organize in Europe is I really want the local leaders to be the ones managing the countries. I'm there to support. I'm not there to be, you know? Yeah. The big boss is coming, he showing. No. It is not that. Again, if they request me to come, if they want me to pass a message to certain type of customer partners, I'll do that. But I don't want to run the show. It's not the way I manage that. >> Yeah. I get that. You want to respect that as if you show up in France and that's your home country, it's like rat man showing up here. It's like taking over the stage. You'll be like, you know, it's our turn. >> But it's just like, you know, I give you another example. So obviously we have... It's even the headquarters, the EMEA headquarters is in France. Right? But it is the French office. And I don't go there. I try not to be there because it is the place for the French people taking care of the French market. And for the French manager, if I go there, everybody's going to come and ask me questions and ask me to make decisions and things. No, they have to run their business. >> So where do you spend, where and how do you spend your time? >> In airports and in planes. (indistinct) What are you asking? >> Of course. >> Do you have another question? >> Actually, if we have time really quickly on just on that subject of sovereignty, we are here in Nevada just across the border, California. People in California have no problem at all, replicating things here for disaster recovery, because it's in the US. Now, is there sort of a cultural sense that tearing down those borders from a sovereignty perspective within Europe would fundamentally change the business climate and maybe tilt things in favor of the AWS and GCPs of the world instead of local regional business? The joke that I heard recently from someone, I thought it was funny. I don't know if it would offend either Germans or French, but it was that it was that AWS was confused and they were planning on putting a data center in Strasbourg, because they thought it was in Germany and it was- >> A joke. >> But the point is, the point is it's like, it's a gum bear. >> Is it true? >> No. But it was a dumb American joke. This was told by a French person basically saying... >> But this person was certainly not from- >> Yes. Right. >> Tell you, because I would've been a very bad way. >> But the point is this idea that you have these mega hyper clouds coming in and saying, "Okay, boom, we're putting one here and you're going to use us regardless of the country you're in." How does that, you know... Is there a push within the EU to tear those barriers down? Or are those sovereignty walls enjoyed by the majority because of the way that it changes the business climate? Any thoughts from that perspective? >> Oh yeah. Yeah. To me, it's very simple. It is a hybrid thing. That means that these big hyperscalers are there, not going to be used but what they do is they're going to partition themselves and work with these local people. So that their big thing appears as being independent, smaller data centers. That's the only thing, you know. You build a house and then you put walls between the different, between the different rooms. That's the only thing that happens. So it's not at all, no. At all to Azures or Google cloud. No, it's not that. It just means that there is a structure and organization that has to be put in place in order that the data resides in given geographical locations using their infrastructures, their technologies. That make, does it make sense? >> Yeah. Except that it puts them in the position of having to have a physical presence in each place, which is advantageous in one way and maybe less efficient in another. >> Yeah. But there are some big markets. >> Yeah. And they eventually got to get there. Right. I mean... >> Yeah. >> They started it. One patient in the world where they restarted was in ANZ. And that's what they did. You know, what, 5, 6, 7 years ago. They put their data centers over there because they wanted to gain the Australian market and the New Zealand market. >> So build it and they will come. Daniel, thanks so much for coming to the theCUBE. Very interesting conversation. >> Pleasure. >> Appreciate it. >> Thank you very much. >> All right, we're wrapping up. Day two at VeeamON 2022. Keep it right there. Dave and I will be back right after this break. (vibrant music)

(upbeat music) >> Hi everybody. We're back at VeeamON 2022, we're winding down coverage to The Cube day two. We've done a lot of VeeamON. We're at the Aria hotel, smaller physical audience, huge hybrid audience, little different program. Great keynotes, really loved the keynote yesterday and today kind of product day today. Sean Smith is here with myself and David Nicholson. He's the staff Solution Architect at VMware. Sean, thanks for coming on the Cube, taking some time with us. >> Hey guys. Great to be here and great to be in person again. >> Yeah, it sure is. Hoping to see VMworld is no longer VMworld, right? >> It's VMware Explore now. Yep. >> Okay. Awesome. Looking forward to that. That was one of the first shows we ever did. It's kind of got that same vibe, I hope you don't lose that, the core of VMware. >> What we've been told is it's still going to be, the core of what we do and it's going to be the showcase of VMware. >> Which is the ecosystem, great vibe. You always know a million people there, which is great fun. How's it going at VMware today? I mean, let's start there. It's been a while since we've talked physically with... >> Yeah. VMware is, we've come through the pandemic, fairly well, relative speaking to what others have done. I'm part of the VCPP Program, the VMware Cloud Provider Program, and I look after cloud service providers, cloud builders, people who are actually building out networks for customers and environments that are very specialized and focusing on their needs and VMware is forefront with cloud service providers these days, doing really well. >> The last time we were physically proximate to VMware executives, I think Pat Gelsinger was still the CEO, Dell still owned the majority of VMware. So that spin happened. So that's good. I think the ecosystem in particular is probably really happy about that. Does it have any effect on your world? >> From a day to day business perspective, not really, right. Obviously we still have a very tight relationship with Dell. We still do a lot of innovative solutions and products with the Dell team. We have a tight integration there. It really gives us the opportunity to also work with many other vendors as well. And focus on solutions that our customers are looking for really, is where VMware is tryna focus. >> Yeah. It's funny, we were at Red Hat Summit last week. IBM Think was right across the street there was very little mention, if any, I think they talked about an IBM mainframe at Red Hat Summit. That was it. I mean IBM fully owns Red Hat, but a lot of people said, we hope that it's going to be like VMware and you guys have always had that independent culture. >> Fiercely independent. >> Fiercely independent. Yes. >> Yes. It's like when you coach, I don't know me anyway, when I coach my kids baseball, I'm a tougher on them than am with the other kids. I think you guys were sometimes tougher on your own or... And rightly so, you have a huge ecosystem. >> We do. >> That is epic. And so you have to look out for that. VMware has always done that. VCPP the V is for a VMware what's what's the acronym. >> So the CPP is Cloud Provider Program. It's a program that's specifically aimed at our cloud service providers. There's several solutions within the program, which are really focused on helping them build business, helping them go to market, helping them with being able to, for certain part of it compete with the hyperscalers and our support several cloud providers, mostly out of the Northeast, and they're doing really well. They're doing well against the hyperscalers, they very often provide solutions that are not easy to get on a hyperscaler. When you want to have customer interaction and things like that. So the VCP Program as I said, is really tailored, it has solutions which are very much focused on allowing them to build their businesses as a cloud service provider. >> Just a follow up if I may. >> Yeah. >> So the history of VMware Cloud has been really interesting. At one point vCloud Air, we know what happened there. This is not vCloud Air. >> This is not vCloud Air. It's got nothing to do with vCloud Air. It's really a program where we provide solutions that the cloud builders build with, right? So it's software solutions. There's no hardware involved. There's no VMware having the environment, it's really cloud providers building solutions. >> So it's interesting, Dave, this has come full circle, you used to work at Virtustream. There was point Rodney was like, bring it on AWS, correlation and back said, we can't lose to a book seller and all that was just, fun marketing talk for media people like us. But the interesting thing is, well, so VMware Cloud on AWS. Huge success of VMware Cloud Foundation. Doing really well. And obviously you've got momentum. Everybody thought, not everybody. >> It's in Google's, in Azure, it's in Oracle. >> Yeah, yeah. Sorry. >> It's an IBM. >> IBM a... >> It's an IBM. >> Number one in IBM. Yeah. >> And so a lot of people thought, I shouldn't say everybody, but a lot of people thought, MSPs, the cloud service providers, non-hyperscalers are cooked through 2010, 2011. The exact opposite happened. >> It's 100%. >> It's growing like crazy. We want to understand why, but it's come full circle. >> Yeah, it certainly has. I mean, the industry has changed considerably and especially over the last few years with COVID, I will say that the cloud service providers that are support and by the way, Virtustream was one of them, when I first joined VMware, I supported Virtustream. And they have had to adapt their businesses, the hyperscalers have come at them with everything that they've got and honesty, the cloud service providers that I support are phenomenal growth. They they're growing on a par with what some of the hyperscalers are doing. So there's definitely a place for cloud service providers, they've got great business, they've got great customers, great relationships. And it's as I said, it's growing a huge business. >> So we've talked a lot about theme from the perspective of the idea of a Supercloud. Something that can overlay a variety of on-premises and off-premises providers and provide sort of a unified view, unified management methodology. How much is what at least was formerly known as the SDDC stack, the Software Defined Data Center stack, still a part of VMwares vision that is right in line with that, from what Veeam is doing. How much of your business is deploying SDDC stacks that are then customized in one way or another. >> 100% of it. >> 100% of it. Right, okay. >> Yeah. So, when you're talking about having that single view of everything in the cloud provider program, there's a product called VMware Cloud Director. and it is the multi-tenant view of the infrastructure and the environment that the cloud providers are building. Right. So VMware Cloud Director has gone through many iterations and we've recently launched Cloud Director Service, which is a SaaS offering of the product. But what it actually does is you put it on top of VMC on AWS. you put it on top of GCVE, you put it on top of the cloud service providers, SDDCs, right. All of these are SDDCs underneath. >> AVS and Azure. >> AVS and Azure. >> I was associated with that. So I must have it mentioned. >> Exactly. >> They're all SDDC's. >> SDDC's, yeah, yeah, exactly. And as well as your on premise environment. Right. So all of these federate together through the VMware Cloud Director, and you end up having a single pane of glass across all of those environments. So whether it's running in the hyperscale, or running on your premises, running in a cloud service provider's environment, you have a single view, a single interface that you log into and you can see everything that's going on inside your environment. So it really brings that holistic, single view of everything to reality. >> How about from a licensing perspective? >> So from a licensing perspective... >> I'm a non-premises customer, I'm running VMware on-prem, I have been, I was at world VMworld 2004 and enjoyed BattleBots. So hopefully you'll start bringing BattleBots back. >> We will have to. >> And now I'm dealing with a service provider. That is one of the partners that you're working with. How does that licensing work? >> So the Cloud Provider Program actually has a slightly different licensing model to what you would have on premises, right? They have a rental model with VMware, it's a PAYGo model, right. One of the great things about the program is that it's consumption based. So it makes it easy for cloud service providers to build a consumption based business, which is kind of where everything is moving, right? >> Yeah, for sure. >> So whether you have an on-premise environment that's licensed through what we call perpetual or ELA licensing, from a VMware perspective, you can still layer on top, that cloud service provider solution VCD, right? And you would obviously have a financial relationship with the cloud service provider in terms of the environment that you have with them. And they will be able to hook up that environment to your on-premises environment and get that single view. So the licensing is not a restriction, right, you can still continue to have your traditional licensed environment in your data center, as well as being able to connect into these seamlessly, right. That's the great thing about it. And that's where VMC, AVS, GCVE, the OCVS, the Oracle version, the RBM one, you can bring all of these together and really look at it from a holistic perspective, bring in things like NSX-T and other solutions like that VM as well, it works seamlessly across all these environments. >> I am talking about Supercloud, I asked Raghu last year, who's virtually at VMworld, I kind of explained that concept of hiding the complexity, the abstraction layer, being able to hide the underlying primitives and APIs, seems like it's evolving. One of the things he said was yes, but if developers want to go there, we let them. And that was a key point, because you're getting more into that DevOps. >> Correct 100%. >> And I would imagine the cloud service providers really oftentimes need for their reasons to get to those underlying primitives and APIs. >> And actually VCD is the enabler, right? So VCD allows you to provide a container based service sitting right alongside your IAS in the same SDDC, right? We're not even talking about segregating them out, you can have it inside the exact same SDDC, all linked together, all taking a common security approach to what's going on and providing you with that ease of use. So from an end user perspective, the DevOps type of people, VCD is an awesome solution, because they can go in fire up a new VM, or fire up a new container or whatever, without having to go through the rigmarole of asking IT for a VM, or asking somebody's permission, as a organization, you would give your DevOps teams certain amount of resources, how they use it's up to them, right? Whether they put containers in there or they bring VMs, it's all there. And it's all in one single solution. >> You mentioned that your community is doing very well growing it let's call it 35, 40% a year. And it's a market that's quite large worldwide. Because it's a lot of local, regional CSPs, a lot of big country CSPs and you said... >> It's four and a 1/2 thousand of them. So, it's huge. >> There you >> Versus four hyperscalers. >> Yeah, exactly. >> Include Alibaba. So, they might be individually smaller, but collectively they're larger. But you said that the hyperscalers coming after them with everything they had was a comment that you made, are customers choosing CSPs over hyperscalers? If so, when and why. >> Sometimes they are choosing CSPs over hyperscalers, but not always, very often they're choosing CSPs and hyperscalers, right. And it really depends on what their needs are. So historically speaking, it's been everybody rushing to the hyperscalers because that's the flavor of the day let's move out of our data center. It's much cheaper to run everything in these hyperscalers, and they do it. And then the bill comes in and reality suddenly hits. And it's definitely not as cheap as they thought it was going to be, right. So there's many aspects that cause tenants to not only rethink that, but also repatriate, right. Repatriation is a big thing for our cloud service providers. Things like egress costs, most cloud service providers have no egress costs, right? They encourage movement of things amongst themselves and for their tenants, because that's what they want, right? So egress costs are a huge problem for many tenants who come into these environments and that's sometimes why they would choose a CSP over a hyperscaler. But really, it's more about choosing the right place for your workload. There are workloads that belong in hyperscalers, right? And if you have a solution with a CSP like VCD, that allows you not only to be able to connect your on premises and the CSP, but also the hyperscalers and actually have a much more holistic solution where you can determine where you want to put stuff and put it in the right place. It's more about that, than it is about choosing one over the other really. >> Yeah, and sometimes it's more of a business differentiation than a technical one. Is it a hyperscale or is it a CSP? If you're licensing the SDDC stack and you're running it on IAS in Amazon or in Google or Azure? >> I think the other thing too is the CSPs oftentimes they manage service providers, right? Is that true? >> The relationship, right? And that's one of the things if you talk to a cloud service provider and yesterday I was, I had a session and I was talking to a bunch of people about VMware stuff. And I said to them, how many of you have tried to pick up a phone and talk to somebody at AWS? And there was laughter, because the reality is that what AWS does is a kind of one size fits all approach, right? There isn't somebody on the end of the phone that you can pick up and call, if they have a major outage that outage is affecting 1000s of different customers and you one of those thousands really means nothing to them, right? Whereas a cloud service provider, generally speaking, has a very tight one-on-one relationship with both from an engineering perspective, right. With their tenants, but also at a higher managerial level. So they create those relationships and those relationships often drive these things. It's not always financial, there is a financial component to it, but very often it's the relationship, have they got somebody that they can talk to? If they getting many different solutions, can they get all those solutions from one provider? And if they can, it's much easier for them to manage from a... >> And I think so does that manage service... There's also a lot of things that despite their breadth and portfolio that the cloud service providers don't support, you can't do Oracle rack in the cloud, right? But you can in a service provider. >> Exactly. >> And Oracle, look you can negotiate with Oracle, so you can get similar pricing AWS, but this price is two x. They're either on-prem or in Oracle. So I could take my Oracle instance, stick it into a managed service provider or cloud service provider, do whatever I need to, and there are I'm sure 1000s of configurations like that, that aren't necessarily identically supported, security edicts that aren't necessarily exactly the same, so many specials that managed service say welcome to your point. AWS is as long as it's black, it's good. >> Yeah, exactly. And that's the thing, right? Those cloud service providers are doing exactly that. They have Oracle racks in there, they have all sorts of those solutions that are there in their data centers. And proximity is also an issue, right? Very often the people who are using those systems need their ancillary things to be close by, they can't be 10s or 20s or 30 milliseconds away, they need to be sub millisecond connectivity. And those are the areas where the cloud service providers really shine, they can offer those solutions that really enable their tenants to get what they want at the end of the day. Again to your point, you can negotiate with Oracle, but these cloud service providers do it day in and day out. Who wants their business? >> Who wants to do that with Oracle anyway, their lawyers are smarter than yours. Veeam, what are you doing with Veeam, in resilient architectures and cyber recovery? >> Yeah, we are a sponsor here at the event and Veeam is a great partner with VMware and we're great partner to them. A lot of cloud service providers actually use Veeam as their primary backup solution for their tenants, right. VMware Cloud Director that I was talking about just now, the thing that gives you a view of everything over the top, Veeam was actually one of the very first vendors to integrate with VCD. And you can use your Veeam environment directly from the screen, you right click, and you say do a backup and that's as easy as that from a Veeam perspective. So we have a lot of integrations with Veeam. We help the cloud service providers, ransomware is a big talking thing around this event, but all over the place, right? So a lot of the solutions that Veeam brings to the party, these cloud service providers are also deploying into their environments to help with ransomware. They have so many solutions that help those cloud service providers provide a holistic solution. >> Well, Veeam was basically founded saying, Hey, we're going to better our business on VMware. I first saw Veeam at a V mug, I think in Boston, and I was like, who is Veeam? VMware is that their product? It was just so you guys have had a long relationship, even though initially VMware was probably saying the same thing, who the heck are these guys? Well, how do you like them now? Sean, thanks so much for... >> Thank you. It's been great to be here. Appreciate it. Thank you for watching. Keep it right there. We'll be back shortly. We'll get a couple more segments left. Dave and I are going to wrap up later in the day, you watching The Cube at VeeamON 2022, be right back. (upbeat music)

>>Hi, this is Dave Volonte. We're winding down Day two of the Cubes coverage of Vim on 2022. We're here at the area in Las Vegas. Myself and Dave Nicholson had been going for two days. Everybody's excited about the VM on party tonight. It's It's always epic, and, uh, it's a great show in terms of its energy. Danny Allen is here. He's cto of in his back. He gave the keynote this morning. I say, Danny, you know, you look pretty good up there with two hours of sleep. I >>had three. >>Look, don't look that good, but your energy was very high. And I got to tell you the story you told was amazing. It was one of the best keynotes I've ever seen. Even even the technology pieces were outstanding. But you weaving in that story was incredible. I'm hoping that people will go back and and watch it. We probably don't have time to go into it, but wow. Um, can you give us the the one minute version of that >>long story? >>Sure. Yeah. I read a book back in 2013 about a ship that sank off Portsmouth, Maine, and I >>thought, I'm gonna go find that >>ship. And so it's a long, >>complicated process. Five >>years in the making. But we used data, and the data that found the ship was actually from 15 years earlier. >>And in 20 >>18, we found the bow of the ship. We found the stern of the ship, but what we were really trying to answer was torpedoed. Or did the boilers explode? Because >>the navy said the boilers exploded >>and two survivors said, No, it was torpedoed or there was a German U boat there. >>And so >>our goal was fine. The ship find the boiler. >>So in 20 >>19, Sorry, Uh, it was 2018. We found the bow and the stern. And then in 2019, we found both boilers perfectly intact. And in fact, the rear end of that torpedo wasn't much left >>of it, of course, but >>data found that wreck. And so it, um, it exonerated essentially any implication that somebody screwed >>up in >>the boiler system and the survivors or the Children of the survivors obviously appreciated >>that. I'm sure. Yes, Several >>outcomes to it. So the >>chief engineer was one >>of the 13 survivors, >>and he lived with the weight of this for 75 years. 49 sailors dead because of myself. But I had the opportunity of meeting some of the Children of the victims and also attending ceremonies. The families of those victims received purple hearts because they were killed due to enemy action. And then you actually knew how to do this. I wasn't aware you had experience finding Rex. You've >>discovered several of >>them prior to this one. But >>the interesting connection >>the reason why this keynote was so powerful as we're a >>team, it's a data conference. >>You connected that to data because you you went out and bought a How do you say this? Magnanimous magnetometer. Magnetometer, Magnetometer. I don't know what that >>is. And a side >>scan Sonar, Right? I got that right. That was >>easy. But >>then you know what this stuff is. And then you >>built the model >>tensorflow. You took all the data and you found anomalies. And then you went right to that spot. Found the >>wreck with 12 >>£1000 of dynamite, >>which made your heart >>beat. But >>then you found >>the boilers. That's incredible. And >>but the point was, >>this is data >>uh, let's see, >>a lot of years after, >>right? >>Yeah. Two sets of data were used. One was the original set of side scan sonar >>data by the historian >>who discovered there was a U boat in the area that was 15 years old. >>And then we used, of >>course, the wind and weather and wave pattern data that was 75 years old to figure out where the boiler should be because they knew that the ship had continued to float for eight minutes. And so you had to go back and determine the models of where should the boilers >>be if it exploded and the boilers >>dropped out and it floated along >>for eight minutes and then sank? Where was >>that data? >>It was was a scanned was an electronic was a paper. How did you get that data? So the original side scan sonar data was just hard >>drive >>data by the historian. >>I wish I could say he used them to >>back it up. But I don't know that I can say that. But he still had >>the data. 15 years later, the >>weather and >>wind and wave data, That was all public information, and we actually used that extensively. We find other wrecks. A lot of wrecks off Boston Sunken World War Two. So we were We were used to that model of tracking what happened. Wow. So, yes, imagine if that data weren't available >>and it >>probably shouldn't have been right by all rights. So now fast forward to 2022. We've got Let's talk about just a cloud >>data. I think you said a >>couple of 100 >>petabytes in the >>cloud 2019. 500 in, Uh, >>no. Yeah. In >>20 2200 and 42. Petabytes in 20 2500 Petabytes last year. And we've already done the same as 2020. So >>240 petabytes >>in Q one. I expect >>this year to move an exhibit of >>data into the public cloud. >>Okay, so you got all that data. Who knows what's in there, right? And if it's not protected, who's going to know in 50 60 7100 years? Right. So that was your tie in? Yes. To the to the importance of data protection, which was just really, really well done. Congratulations. Honestly, one of the best keynotes I've ever seen keynotes often really boring, But you did a great job again on two hours. Sleep. So much to unpack here. The other thing that really is. I mean, we can talk about the demos. We can talk about the announcements. Um, so? Well, yeah, Let's see. Salesforce. Uh, data protection is now public. I almost spilled the beans yesterday in the cube. Caught myself the version 12. Obviously, you guys gave a great demo showing the island >>cloud with I think it >>was just four minutes. It was super fast. Recovery in four minutes of data loss was so glad you didn't say zero minutes because that would have been a live demos which, Okay, which I appreciate and also think is crazy. So some really cool demos, Um, and some really cool features. So I have so much impact, but the the insights that you can provide through them it's VM one, uh, was actually something that I hadn't heard you talk about extensively in the past. That maybe I just missed it. But I wonder if you could talk about that layer and why it's critical differentiator for Wien. It's >>the hidden gem >>within the Wien portfolio because it knows about absolutely >>everything. >>And what determines the actions >>that we take is the >>context in which >>data is surviving. So in the context of security, which we are showing, we look for CPU utilisation, memory utilisation, data change rate. If you encrypt all of the data in a file server, it's going to blow up overnight. And so we're leveraging heuristics in their reporting. But even more than that, one of the things in Wien one people don't realise we have this concept of the intelligent diagnostics. It's machine learning, which we drive on our end and we push out as packages intervene one. There's up to 200 signatures, but it helps our customers find issues before they become issues. Okay, so I want to get into because I often time times, don't geek out with you. And don't take advantage of your your technical knowledge. And you've you've triggered a couple of things, >>especially when the >>analysts call you said it again today that >>modern >>data protection has meaning to you. We talked a little bit about this yesterday, but back in >>the days of >>virtualisation, you shunned agents >>and took a different >>approach because you were going for what was then >>modern. Then you >>went to bare metal cloud hybrid >>cloud containers. Super Cloud. Using the analyst meeting. You didn't use the table. Come on, say Super Cloud and then we'll talk about the edge. So I would like to know specifically if we can go back to Virtualised >>because I didn't know >>this exactly how you guys >>defined modern >>back then >>and then. Let's take that to modern today. >>So what do you >>do back then? And then we'll get into cloud and sure, So if you go back to and being started, everyone who's using agents, you'd instal something in the operating system. It would take 10% 15% of your CPU because it was collecting all the data and sending it outside of the machine when we went through a virtual environment. If you put an agent inside that machine, what happens is you would have 100 operating systems all on the same >>server, consuming >>resources from that hyper visor. And so he said, there's a better way of capturing the data instead of capturing the data inside the operating system. And by the way, managing thousands of agents is no fun. So What we did is we captured a snapshot of the image at the hyper visor level. And then over time, we just leverage changed block >>tracking from the hyper >>visor to determine what >>had changed. And so that was modern. Because no more >>managing agents >>there was no impact >>on the operating system, >>and it was a far more >>efficient way to store >>data. You leverage CBT through the A P. Is that correct? Yeah. We used the VCR API >>for data protection. >>Okay, so I said this to Michael earlier. Fast forward to today. Your your your data protection competitors aren't as fat, dumb and happy as they used to be, so they can do things in containers, containers. And we talked about that. So now let's talk about Cloud. What's different about cloud data protection? What defines modern data protection? And where are the innovations that you're providing? >>Let me do one step in >>between those because one of the things that happened between hypervisors and Cloud was >>offline. The capture of the data >>to the storage system because >>even better than doing it >>at the hyper visor clusters >>do it on the storage >>array because that can capture the >>data instantly. Right? So as we go to the cloud, we want to do the same thing. Except we don't have access to either the hyper visor or the storage system. But what they do provide is an API. So we can use the API to capture all of the blocks, all of the data, all of the changes on that particular operating system. Now, here's where we've kind of gone full circle on a hyper >>visor. You can use the V >>sphere agent to reach into the operating system to do >>things like application consistency. What we've done modern data protection is create specific cloud agents that say Forget >>about the block changes. Make sure that I have application consistency inside that cloud operating >>system. Even though you don't have access to the hyper visor of the storage, >>you're still getting the >>operating system consistency >>while getting the really >>fast capture of data. So that gets into you talking on stage about how synapse don't equal data protection. I think you just explained it, but explain why, but let me highlight something that VM does that is important. We manage both snapshots and back up because if you can recover from your storage array >>snapshot. That is the best >>possible thing to recover from right, But we don't. So we manage both the snapshots and we converted >>into the VM portable >>data format. And here's where the super cloud comes into play because if I can convert it into the VM portable data format, I can move >>that OS >>anywhere. I can move it from >>physical to virtual to cloud >>to another cloud back to virtual. I can put it back on physical if I want to. It actually abstracts >>the cloud >>layer. There are things >>that we do when we go >>between clouds. Some use bio, >>some use, um, fee. >>But we have the data in backup format, not snapshot format. That's theirs. But we have been in backup format that we can move >>around and abstract >>workloads across. All of the infrastructure in your >>catalogue is control >>of that. Is that Is >>that right? That is about >>that 100%. And you know what's interesting about our catalogue? Dave. The catalogue is inside the backup, and so historically, one of the problems with backup is that you had a separate catalogue and if it ever got corrupted. All of your >>data is meaningless >>because the catalogue is inside >>the backup >>for that unique VM or that unique instance, you can move it anywhere and power it on. That's why people said were >>so reliable. As long >>as you have the backup file, you can delete our >>software. You can >>still get the data back, so I love this fast paced so that >>enables >>what I call Super Cloud we now call Super Cloud >>because now >>take that to the edge. >>If I want to go to the edge, I presume you can extend that. And I also presume the containers play a role there. Yes, so here's what's interesting about the edge to things on the edge. You don't want to have any state if you can help it, >>and so >>containers help with that. You can have stateless environment, some >>persistent data storage, >>but we not only >>provide the portability >>in operating systems. We also do this for containers, >>and that's >>true if you go to the cloud and you're using SE CKs >>with relational >>database service is already >>asked for the persistent data. >>Later, we can pick that up and move it to G K E or move it to open shift >>on premises. And >>so that's why I call this the super cloud. We have all of this data. Actually, I think you termed the term super thank you for I'm looking for confirmation from a technologist that it's technically feasible. It >>is technically feasible, >>and you can do it today and that's a I think it's a winning strategy. Personally, Will there be >>such a thing as edge Native? You know, there's cloud native. Will there be edge native new architectures, new ways of doing things, new workloads use cases? We talk about hardware, new hardware, architectures, arm based stuff that are going to change everything to edge Native Yes and no. There's going to be small tweaks that make it better for the edge. You're gonna see a lot of iron at the edge, obviously for power consumption purposes, and you're also going to see different constructs for networking. We're not going to use the traditional networking, probably a lot more software to find stuff. Same thing on the storage. They're going to try and >>minimise the persistent >>storage to the smallest footprint possible. But ultimately I think we're gonna see containers >>will lead >>the edge. We're seeing this now. We have a I probably can't name them, but we have a large retail organisation that is running containers in every single store with a small, persistent footprint of the point of sale and local data, but that what >>is running the actual >>system is containers, and it's completely ephemeral. So we were >>at Red Hat, I was saying >>earlier last week, and I'd say half 40 50% of the conversation was edge open shift, obviously >>playing a big role there. I >>know doing work with Rancher and Town Zoo. And so there's a lot of options there. >>But obviously, open shift has >>strong momentum in the >>marketplace. >>I've been dominating. You want to chime in? No, I'm just No, >>I yeah, I know. Sometimes >>I'll sit here like a sponge, which isn't my job absorbing stuff. I'm just fascinated by the whole concept of of a >>of a portable format for data that encapsulates virtual machines and or instances that can live in the containerised world. And once you once you create that common denominator, that's really that's >>That's the secret sauce >>for what you're talking about is a super club and what's been fascinating to watch because I've been paying attention since the beginning. You go from simply V. M. F s and here it is. And by the way, the pitch to E. M. C. About buying VM ware. It was all about reducing servers to files that can be stored on storage arrays. All of a sudden, the light bulbs went off. We can store those things, and it just began. It became it became a marriage afterwards. But to watch that progression that you guys have gone from from that fundamental to all of the other areas where now you've created this common denominator layer has has been amazing. So my question is, What's the singer? What doesn't work? Where the holes. You don't want to look at it from a from a glass half empty perspective. What's the next opportunity? We've talked about edge, but what are the things that you need to fill in to make this truly ubiquitous? Well, there's a lot of services out there that we're not protecting. To be fair, right, we do. Microsoft 3 65. We announced sales for us, but there's a dozen other paths services that >>people are moving data >>into. And until >>we had data protection >>for the assassin path services, you know >>you have to figure out how >>to protect them. Now here's the kicker about >>those services. >>Most of them have the >>ability to dump date >>out. The trick is, do they have the A >>P? I is needed to put data >>back into it right, >>which is which is a >>gap. As an industry, we need to address this. I actually think we need a common >>framework for >>how to manage the >>export of data, but also the import of data not at a at a system level, but at an atomic level of the elements within those applications. >>So there are gaps >>there at the industry, but we'll fill them >>if you look on the >>infrastructure side. We've done a lot with containers and kubernetes. I think there's a next wave around server list. There's still servers and these micro services, but we're making things smaller and smaller and smaller, and there's going to be an essential need to protect those services as well. So modern data protection is something that's going to we're gonna need modern data protection five years from now, the modern will just be different. Do you ever see the day, Danny, where governance becomes an >>adjacency opportunity for >>you guys? It's clearly an opportunity even now if you look, we spent a lot of time talking about security and what you find is when organisations go, for example, of ransomware insurance or for compliance, they need to be able to prove that they have certifications or they have security or they have governance. We just saw transatlantic privacy >>packed only >>to be able to prove what type of data they're collecting. Where are they storing it? Where are they allowed to recovered? And yes, those are very much adjacency is for our customers. They're trying to manage that data. >>So given that I mean, >>am I correct that architecturally you are, are you location agnostic? Right. We are a location agnostic, and you can actually tag data to allowable location. So the big trend that I think is happening is going to happen in in this >>this this decade. >>I think we're >>scratching the surface. Is this idea >>that, you know, leave data where it is, >>whether it's an S three >>bucket, it could be in an Oracle >>database. It could be in a snowflake database. It can be a data lake that's, you know, data, >>bricks or whatever, >>and it stays where >>it is. And it's just a note on the on the call of the data >>mesh. Not my term. Jim >>Octagon coined that term. The >>problem with that, and it puts data in the hands of closer to the domain experts. The problem with that >>scenario >>is you need self service infrastructure, which really doesn't exist today anyway. But it's coming, and the big problem is Federated >>computational >>governance. How do I automate that governance so that the people who should have access to that it can have access to that data? That, to me, seems to be an adjacency. It doesn't exist except in >>a proprietary >>platform. Today. There needs to be a horizontal >>layer >>that is more open than anybody >>can use. And I >>would think that's a perfect opportunity for you guys. Just strategically it is. There's no question, and I would argue, Dave, that it's actually >>valuable to take snapshots and to keep the data out at the edge wherever it happens to be collected. But then Federated centrally. It's why I get so excited by an exhibit of data this year going into the cloud, because then you're centralising the aggregation, and that's where you're really going to drive the insights. You're not gonna be writing tensorflow and machine learning and things on premises unless you have a lot of money and a lot of GPS and a lot of capacity. That's the type of thing that is actually better suited for the cloud. And, I would argue, better suited for not your organisation. You're gonna want to delegate that to a third party who has expertise in privacy, data analysis or security forensics or whatever it is that you're trying to do with the data. But you're gonna today when you think about AI. We talked about A. I haven't had a tonne of talk about AI some >>appropriate >>amount. Most of the >>AI today correct me if you think >>this is not true is modelling that's done in the cloud. It's dominant. >>Don't >>you think that's gonna flip when edge >>really starts to take >>off where it's it's more real time >>influencing >>at the edge in new use cases at the edge now how much of that data >>is going to be >>persisted is a >>point of discussion. But what >>are your thoughts on that? I completely agree. So my expectation of the way >>that this will work is that >>the true machine learning will happen in the centralised location, and what it will do is similar to someone will push out to the edge the signatures that drive the inferences. So my example of this is always the Tesla driving down the road. >>There's no way that that >>car should be figuring it sending up to the cloud. Is that a stop sign? Is it not? It can't. It has to be able to figure out what the stop sign is before it gets to it, so we'll do the influencing at the edge. But when it doesn't know what to do with the data, then it should send it to the court to determine, to learn about it and send signatures back out, not just to that edge location, but all the edge locations within the within the ecosystem. So I get what you're saying. They might >>send data back >>when there's an anomaly, >>or I always use the example of a deer running in front of the car. David Floyd gave me that one. That's when I want to. I do want to send the data back to the cloud because Tesla doesn't persist. A tonne of data, I presume, right, right less than 5% of it. You know, I want to. Usually I'm here to dive into the weeds. I want kind of uplevel this >>to sort of the >>larger picture. From an I T perspective. >>There's been a lot of consolidation going on if you divide the >>world into vendors >>and customers. On the customer side, there are only if there's a finite number of seats at the table for truly strategic partners. Those get gobbled up often by hyper >>scale cloud >>providers. The challenge there, and I'm part of a CEO accreditation programme. So this >>is aimed at my students who >>are CEOs and CIOs. The challenge is that a lot of CEOs and CIOs on the customer side don't exhaustively drag out of their vendor partners like a theme everything that Saveem >>can do for >>them. Maybe they're leveraging a point >>solution, >>but I guarantee you they don't all know that you've got cast in in the portfolio. Not every one of them does yet, let alone this idea of a super >>cloud and and and >>how much of a strategic role you can play. So I don't know if it's a blanket admonition to folks out there, but you have got to leverage the people who are building the solutions that are going to help you solve problems in the business. And I guess, as in the form of >>a question, >>uh, do you Do you see that as a challenge? Now those the limited number of seats at >>the Table for >>Strategic Partners >>Challenge and >>Opportunity. If you look at the types of partners that we've partnered with storage partners because they own the storage of the data, at the end of the day, we actually just manage it. We don't actually store it the cloud partners. So I see that as the opportunity and my belief is I thought that the storage doesn't matter, >>but I think the >>organisation that can centralise and manage that data is the one that can rule the world, and so >>clearly I'm a team. I think we can do amazing things, but we do have key >>strategic partners hp >>E Amazon. You heard >>them on stage yesterday. >>18 different >>integrations with AWS. So we have very strategic partners. Azure. I go out there all the time. >>So there >>you don't need to be >>in the room at the table because your partners are >>and they have a relationship with the customer as well. Fair enough. But the key to this it's not just technology. It is these relationships and what is possible between our organisations. So I'm sorry to be >>so dense on this, but when you talk about >>centralising that data you're talking about physically centralising it or can actually live across clouds, >>for instance. But you've got >>visibility and your catalogues >>have visibility on >>all that. Is that what you mean by centralised obliterated? We have understanding of all the places that lives, and we can do things with >>it. We can move it from one >>cloud to another. We can take, you know, everyone talks about data warehouses. >>They're actually pretty expensive. >>You got to take data and stream it into this thing, and there's a massive computing power. On the other hand, we're >>not like that. You've storage on there. We can ephemeral e. Spin up a database when you need it for five minutes and then destroy it. We can spin up an image when you need it and then destroy it. And so on your perspective of locations. So irrespective of >>location, it doesn't >>have to be in a central place, and that's been a challenge. You extract, >>transform and load, >>and moving the data to the central >>location has been a problem. We >>have awareness of >>all the data everywhere, >>and then we can make >>decisions as to what you >>do based >>on where it is and >>what it is. And that's a metadata >>innovation. I guess that >>comes back to the catalogue, >>right? Is that correct? >>You have data >>about the data that informs you as to where it is and how to get to it. And yes, so metadata within the data that allows you to recover it and then data across the federation of all that to determine where it is. And machine intelligence plays a role in all that, not yet not yet in that space. Now. I do think there's opportunity in the future to be able to distribute storage across many different locations and that's a whole conversation in itself. But but our machine learning is more just on helping our customers address the problems in their infrastructures rather than determining right now where that data should be. >>These guys they want me to break, But I'm >>refusing. So your >>Hadoop back >>in their rooms via, um that's >>well, >>that scale. A lot of customers. I talked to Renee Dupuis. Hey, we we got there >>was heavy lift. You >>know, we're looking at new >>ways. New >>approaches, uh, going. And of course, it's all in the cloud >>anyway. But what's >>that look like? That future look like we haven't reached bottle and X ray yet on our on our Hadoop clusters, and we do continuously examine >>them for anomalies that might happen. >>Not saying we won't run into a >>bottle like we always do at some >>point, But we haven't yet >>awesome. We've covered a lot of We've certainly covered extensively the research that you did on cyber >>security and ransomware. Um, you're kind of your vision for modern >>data protection. I think we hit on that pretty well casting, you know, we talked to Michael about that, and then, you know, the future product releases the Salesforce data protection. You guys, I think you're the first there. I think you were threatened at first from Microsoft. 3 65. No, there are other vendors in the in the salesforce space. But what I tell people we weren't the first to do data capture at the hyper >>visor level. There's two other >>vendors I won't tell you they were No one remembers them. Microsoft 3 65. We weren't the first one to for that, but we're now >>the largest. So >>there are other vendors in the salesforce space. But we're looking at We're going to be aggressive. Danielle, Thanks >>so much for coming to Cuba and letting us pick your brain like that Really great job today. And congratulations on >>being back >>in semi normal. Thank you for having me. I love being on all right. And thank you for watching. Keep it right there. More coverage. Day volonte for Dave >>Nicholson, By >>the way, check out silicon angle dot com for all the written coverage. All the news >>The cube dot >>net is where all these videos We'll we'll live. Check out wiki bond dot com I published every week. I think I'm gonna dig into the cybersecurity >>research that you guys did this week. If I can >>get a hands my hands on those charts which Dave Russell promised >>me, we'll be right back >>right after this short break. Mm.

(pleasant music) >> We're back at Veeamon 2022. We're here at the Aria hotel in Las Vegas. This is theCube's continuous coverage. We're in day two. Welcome to the CXO session. We have CEO, CTO, CSO, chief strategy officer. Brett Diamond is the CEO, Justin Giardina is the CTO, and Dante Orsini is the chief strategy officer for 11:11 Systems recently named, I guess today, the impact cloud service provider of the year. Congratulations, guys. Welcome to theCube. Welcome back to theCube. Great to see you again. >> Thank you. >> Great. >> Likewise. >> Thanks for having us. Okay, Brett, let's start with you. Give us the overview of 11:11, your focus area, talk about the Island acquisition, what that's all about, give us the setup. >> Yeah, so we started 11:11, really, with a focus on taking the three core pillars of our business, which are cloud, connectivity, and security, bring them together into one platform, allowing a much easier way for our customers and our partners to procure those three solution sets through a single company and really focus on the three main drivers of the business, which, you know, have a litany of other services associated with them under each platform. >> Okay, so Justin, cloud connectivity and security, they all dramatically changed in March of 2020. Everybody had to go to the cloud, had to rethink the network, had to secure remote workers. So what did you see, from a CTO's perspective, what changed and how did 11:11 respond? >> Sure, so early on, when we built our cloud, even back into 2008, we really focused on enterprise grade features, one of which being very flexible in the networking. So we found early on was that we would be able to architect solutions for customers that were dipping their toe in the cloud and set ourselves apart from some of the vendors at the time. So if you fast forward from 2008 until today, we still see that as a main component for IaaS and DRaaS and the ability to start taking into some of the things Brett talked about, where customers may need a point to point circuit to offload data connectivity to us, or develop SD-WAN and multi-cloud solutions to connect to their resources in the cloud. In my opinion, it's just the natural progression of what we set out to do in 2008. And to couple that with the security, if you think about what that opens up from a security landscape, now you have multiple clouds, you have different ingress and egress points, you have different people accessing workloads in each one of these clouds, so the idea or our idea is that we can layer a comprehensive security solution over this new multi-cloud networking world and then provide visibility and manageability to our customer base. >> So what does that mean specifically for your customers? Because, I mean, we saw obviously a rapid move toward end point, cloud security, identity access. You know, people really started rethinking that as opposed to trying to just, you know, build a moat around the castle. >> Right. >> What does that mean for your customer? You take care of all that? You partner with whomever you need to partner in the ecosystem and then you provide the managed service? How does that work? >> Right. It does and that's a great analogy. You know, we have a picture of a hamburger in our office, exploded with all the components and they say, a good security policy has all the pieces and it's really synonymous with what you said. So to answer your question, yes. We have all that baked in the platform. We can offer managed services around it, but we also give the consumer the ability to access that data, whether it's a UI or API. >> So Dante, I know you talked to a lot of customers. All you do is watch the stock market go like this and like that and you say, okay, the pandemic drove all these, but when you talk to CISOs and customers, a lot of things are changing permanently. First of all, they were forced to march to digital when previously, they were like, eh, we'll get there. I mean, a lot of customers were. Let's face it. I mean, some were serious about it, but many weren't. Now, if you're not a digital business, you're out of business. What have you seen when you talk to customers in terms of the permanence of some of these changes? What are they telling you? >> Well, I think, you know, we go through this ourselves, right? The business continues to grow. You've got tons of people that are working remotely and they are going to continue to work remotely, right? As much as we'd like to offer up hybrid workspace and things like that, some folks are like, hey, I've worked it out. I'm working out great from home, right? And also, I think what Justin was saying also is, as we've seen time go on, that operating environment has gotten much more complex. You've got stuff in the data center, stuff in somebody's, you know, endpoint, you've got various different public clouds, different SAS services, right? That's why it's been phenomenal to work with Veeam because we can protect that data regardless of where it exists. But when you start to look at some of the managed security services that we're talking about, we're helping those CSOs, you know, get better visibility, better control, and take proactive action against the infrastructure when we look at threat mitigation and how to actually respond when something does happen, right? And I think that's the key because there's no shortage of great security vendors, right? But how do you tie it all together into a single solution, right, with a vendor that you can actually partner with to help secure the environment while you go focus on the things that are more strategic to the business? >> I was talking to Jim Mercer at Red Hat Summit last week. He's an IDC analyst and we did a survey, I think it was last summer, and we asked customers to your point about, there's no shortage of security tools. How do you want to buy your security? And, you know, do you want, you know, best to breed bespoke tools and you sort of put it together or do you kind of want your platform provider to do it? Now surprisingly, they said platform provider. The problem is, that's aspirational for a lot of platform providers, so they got to look to a managed service provider. So Brett, talk about the Island acquisition, what Green Cloud is, how that all fits together. >> So we acquired Island and Green Cloud last year and the reality is, the people at both of those companies and the technology is what drove us to making those acquisitions. They were the foundational pieces to 11:11. Obviously, the things that Justin has been able to create from an automation and innovation perspective at the company is transforming this business in a litany of different ways, as well. So, those two acquisitions allow us at this point to take a cloud environment on a geographic footprint, not only throughout the US but globally, have a security product that was given to us from the Green Cloud acquisition of Cascade, and add on connectivity to allow us to have all three platforms in one, all three pillars in one. >> So I like 11:11. 11:11 is near and dear to my heart. So where'd the name come from? >> Everybody asked me this question, I think, five times a day. So growing up as a kid, everyone in my family would always say 11:11 make a wish whenever you'd see it on the clock. And during COVID, we were coming up with a new name for the business. My daughter looked at the microwave, said, dad, it's 11:11, make a wish. The reality was though, I had no idea why I'd been doing it for all that time and when you look up kind of the background origination, derivation of the word, it means the time of day when everything's in line and when things are complex, especially with running all the different businesses that we have, aligning them so that they're working together, it seemed like the perfect thing >> So when I had the big corner office at IDC, I had my staff meetings at 11:11. >> Yep. >> Because the universe was aligned and then the other thing was, nobody could forget the time. So they gave me 11 minutes to be there, so they were never late. >> And now you'll see it all the time, even when you don't want to. (chuckles) >> So Justin, we've been talking a lot about ransomware and not just backup, but recovery. My friend, Fred Moore, who, you know, coined the phrase backup is one thing, recovery is everything, and recovery time, network speeds and the like are critical, especially when you're thinking cloud. How are you architecting recovery for your clients? Maybe you could dig into that a little bit. >> Sure. So it's really a multitude of things. You know, you mention ransomware. Seeing the ransomware landscape evolve over time, especially in our business with backup NDR, is very singular, you know, people protecting against host nodes. Now we're seeing ransomware be able to get into an environment, land and expand, actually delete backups, target backup vendors. So the ransomware point, I guess, trying to battle that is a multi-step process, right? You need to think about how data flows into the organization from a security perspective, from a networking perspective, you need to think about how your workloads are protected, and then when you think about backups, I know we're at Veeamon now talking about Veeam, there's a multitude of ways to protect that data, whether it's retention, whether it's immutability, air gapping data. So, while I know we focus a lot sometimes on protecting data, it's really that hamburger analogy where the sum of the parts make up the protection. >> So how do you provide services? I mean, do you say, okay, do you want immutability? There's a line item for that. You want low RPO, fast RTO? How does that all work as a customer? What am I buying from you? Is it just a managed service? We'll take care of everything, platinum, gold, silver, or is it? >> If you don't mind, so I'm glad you asked that question because this is something that's very unique about us. Years ago, his team actually built the IP because we were scaling at such an incredible rate globally through all our joint partners with Veeam that, how do we take all the intelligence that we have and his team and all of our solution architects and scale it? So they actually developed a tool called Catalyst, and it's a pre-sales tool. It's an application. You download it, you install it. It basically takes a snapshot of your environment. You start to manipulate the data. What are you trying to do, Dave? Are you trying to protect that data? Are you backing up to us? Are you trying to replicate it for DR purposes? You know, what are you doing for production, or maybe it's a migration? It analyzes the network. It analyzes all your infrastructure. It helps the SEs know immediately if we're a feasible solution based on what you are trying to do. So, nobody in the space is doing this and that's been a huge key to our growth because the channel community, as well as the customer, they're working with real data. So we can get past all the garbage, you get right to what's important for them for the outcome. >> Yeah, that's huge. Who do you guys sell to? Is it more mid-size businesses that maybe don't have the large teams? Is it larger enterprises who want to compliment to their business? Is it both? >> Well, I would say with the two acquisitions that we made to go to market sales strategies and the clientele were very different, when you look at Green Cloud, they're selling predominantly wholesale through MSPs and those MSPs are mostly selling to SMBs, right? So we covered that SMB market for the most part through our acquisition of Green Cloud. Island, on the other hand, was more focused on selling direct, inbound, through VARs through the channel, mid-enterprise, big enterprise. So really, those two acquisitions outside of the IP that we got from the systems, we have every single go to market sales strategy and we're aligned from SMB all the way up to the Fortune 500. >> I heard a stat a couple months ago that less than 50% of enterprises have a SAQ. That blew me away. And, you know, even small businesses need one. They may not be able to afford, but there's certainly a medium size or a larger business should have some kind of SAQ. Does that stat jive with what you're seeing in the marketplace? >> A hundred percent. >> If that's true, the need for a managed service like this, it's going to explode. It is exploding, I mean. >> Yeah, I mean, a hundred percent, right? There is zero unemployment in the cyberspace, right? Just North America alone, there's about a million or so folks in that space and right now you've got about 600,000 open recs just in North America, right? So earlier, we talked about no shortage of tools, right? But the shortage of headcount is a significant challenge, big time, right? Most importantly, the people that you do have on staff, they've got alert fatigue from the tools that they do have. That's why you're seeing this massive surgence in the managed security services provider. >> Lack of talent is number one challenge for CISOs. That's what they'll tell you and there's no end in sight to that. And it's, you know, another tool and it's amazing 'cause you see security companies popping up all the time. I mean, billion dollar valuations, I mean, Lacework did a billion dollar raise. And so, there's no shortage of funding. Now, maybe that'll change, you know, with the market but I wanted to turn our attention to the keynotes this morning. You guys got some serious love up on stage. There was a demo. It was a pretty cool demo, fast recovery, very tight RPO, as I recall. It was, I think, four minutes of, of data loss? Is that right? Is that the right stat? I was happy it wasn't zero data loss 'cause there's really, you know, no such thing, but so you got to feel good about that. Tell us about how that all came about, your relationship with Veeam. Who wants to take it? >> Sure, I can take a stab at it. So two of the things that I'm most excited about, at least with this Veeamon, is our team was able to work with Veeam on that demo, and what that demo was showing was some CDP based features for cloud providers. So we're really happy to see that and the reason why we're happy to see that is that with the Veeam platform, it's now given the customers the ability to do things like snapshot replication, CDP replication, on-prem backup, cloud backup, immutability air gap, the list goes on and on. And in our opinion, having a singular software vendor that can provide all that, you know, with a cloud provider on-prem or not is really like, the icing on the cake. So for us, it's very exciting to see that, and then also coupled with a lot of the innovation that's Veeam's doing in the SAS space, right? So again, having that umbrella product that can cover all those use cases. >> I'll tell you, that was a very cool demo. If you can get a YouTube of that demo, I'll make sure we put it in the show notes of this video or maybe pop it into one of the blogs that we write about it. So, how do you guys feel? I mean, this is a new chapter for you. Very cool, with a couple of acquisitions that are now the main spring of your strategy, so the first Veeamon in a couple years. So what's the vibe been like for you? What's the nighttime activity, the customer interaction? I know you guys are running a lot of the backend demos, so you're everywhere. What's the vibe like at Veeamon and how does it feel to be back? >> I'll give that one to Dante as far as the vibes, so far. >> Yeah, yeah, you got a lot of experience. >> Yeah, let me loose on this one, Dave. I'm like, so excited about this, right? It's been far too long to get face to face again and Veeam always does it right. And I think that for years, we've been back ending like, all the hands on lab infrastructure here, but forget about that. I think the part that's really exciting is getting face to face with such a great team, right? We have phenomenal architects that we work with at Veeam day in and day out. They put up with us, pushing them, pushing them, pushing them and together, we've been able to create a lot of magic together, right? But I think you can't replace the human interaction that we've all been starving for, for the last two years. But the vibe's always fantastic at Veeam. If you're going to be around tonight, I'll be looking forward to enjoying some of that Veeam love with you at the after party. >> Yeah, well, famous after parties. We'll see if that culture continues. I have a feeling it will. Brett, where do you want to take 11:11? New phase in all of your careers. You got a great crew out here, it looks like. I love that you're all out and, make some noise here, people. Let's hear it! (audience cheering) You see, this is the biggest audience we've had all week. Where do you want to take 11:11? >> I think, you know, if you look at what we've done so far in the short six months since the acquisitions of Green Cloud and Island, obviously the integration is a key piece. We're going to be laser focused on growing organically across those three pillars. We've got to put more capital and resources into the incredible IP, like I said earlier, that Justin and his team have created on those front ends, the user experience. But, you know, we made two large acquisitions, obviously M and A is a key piece for us. We're going to be diligent and we're probably going to be very aggressive on that front as well, to be able to grow this business into the global leader of cloud connectivity and security. And I think we've really hit a void in the industry that's been looking for this for a very long time and we want to be the first ones to be able to collaborate and combine those three into one. >> When the cloud started to hit the steep part of the S-curve, kind of early part of last decade, people thought, oh wow, these managed service providers are toast. The exact opposite happened. It created such a tailwind and need for consistent services and integration and managed services. We've seen it all across the stacks. So guys, wish you best of luck. Congratulations on the acquisitions, >> Thank you. >> And hope to have you back soon. >> Absolutely, thanks for having us. >> All right, keep it right there everybody. Dave Vellante for theCube's coverage of Veeamon 2022. We'll be right back after this short break. (pleasant music)

(soft intro music) >> Welcome back to theCUBE's coverage of VeeamON 2022. Dave Vellante with David Nicholson. Brian Schwarz is here. We're going to stay on cloud. He's the director of product management at Google Cloud. The world's biggest cloud, I contend. Brian, thanks for coming on theCUBE. >> Thanks for having me. Super excited to be here. >> Long time infrastructure as a service background, worked at Pure, worked at Cisco, Silicon Valley guy, techie. So we're going to get into it here. >> I love it. >> I was saying before, off camera. We used to go to Google Cloud Next every year. It was an awesome show. Guys built a big set for us. You joined, right as the pandemic hit. So we've been out of touch a little bit. It's hard to... You know, you got one eye on the virtual event, but give us the update on Google Cloud. What's happening generally and specifically within storage? >> Yeah. So obviously the Cloud got a big boost during the pandemic because a lot of work went online. You know, more things kind of being digitally transformed as people keep trying to innovate. So obviously the growth of Google Cloud, has got a big tailwind to it. So business has been really good, lots of R&D investment. We obviously have an incredible set of technology already but still huge investments in new technologies that we've been bringing out over the past couple of years. It's great to get back out to events to talk to people about 'em. Been a little hard the last couple of years to give people some of the insights. When I think about storage, huge investments, one of the things that some people know but I think it's probably underappreciated is we use the same infrastructure for Google Cloud that is used for Google consumer products. So Search and Photos and all the public kind of things that most people are familiar with, Maps, et cetera. Same infrastructure at the same time is also used for Google Cloud. So we just have this tremendous capability of infrastructure. Google's got nine products that have a billion users most of which many people know. So we're pretty good at storage pretty good at compute, pretty good at networking. Obviously a lot of that kind of shines through on Google Cloud for enterprises to bring their applications, lift and shift and/or modernize, build new stuff in the Cloud with containers and things like that. >> Yeah, hence my contention that Google has the biggest cloud in the world, like I said before. Doesn't have the most IS revenue 'cause that's a different business. You can't comment, but I've got Google Cloud running at $12 billion a year run rate. So a lot of times people go, "Oh yeah, Google they're third place going for the bronze." But that is a huge business. There aren't a lot of 10, $12 billion infrastructure companies. >> In a rapidly growing market. >> And if you do some back of napkin math, whatever, give me 10, 15, let's call it 15% of that, to storage. You've got a big storage business. I know you can't tell us how big, but it's big. And if you add in all the stuff that's not in GCP, you do a lot of storage. So you know storage, you understand the technology. So what is the state of technology? You have a background in Cisco, nearly a networking company, they used to do some storage stuff sort of on the side. We used to say they're going to buy NetApp, of course that never happened. That would've made no sense. Pure Storage, obviously knows storage, but they were a disk array company essentially. Cloud storage, what's different about it? What's different in the technology? How does Google think about it? >> You know, I always like to tell people there's some things that are the same and familiar to you, and there's some things that are different. If I start with some of the differences, object storage in the Cloud, like just fundamentally different. Object storage on-prem, it's been around for a while, often used as kind of like a third tier of storage, maybe a backup target, compliance, something like that. In the cloud, object storage is Tier one storage. Public reference for us, Spotify, okay, use object storage for all the songs out there. And increasingly we see a lot of growth in-- >> Well, how are you defining Tier one storage in that regard? Again, are you thinking streaming service? Okay. Fine. Transactional? >> Spotify goes down and I'm pissed. >> Yeah. This is true. (Dave laughing) >> Not just you, maybe a few million other people too. One is importance, business importance. Tier one applications like critical to the business, like business down type stuff. But even if you look at it for performance, for capabilities, object storage in the cloud, it's a different thing than it was. >> Because of the architecture that you're deploying? >> Yeah. And the applications that we see running on it. Obviously, a huge growth in our business in AI and analytics. Obviously, Google's pretty well known in both spaces, BigQuery, obviously on the analytics side, big massive data warehouses and obviously-- >> Gets very high marks from customers. >> Yeah, very well regarded, super successful, super popular with our customers in Google Cloud. And then obviously AI as well. A lot of AI is about getting structure from unstructured data. Autonomous vehicles getting pictures and videos around the world. Speech recognition, audio is a fundamentally analog signal. You're trying to train computers to basically deal with analog things and it's all stored in object storage, machine learning on top of it, creating all the insights, and frankly things that computers can deal with. Getting structure out of the unstructured data. So you just see performance capabilities, importance as it's really a Tier one storage, much like file and block is where have kind of always been. >> Depending on, right, the importance. Because I mean, it's a fair question, right? Because we're used to thinking, "Oh, you're running your Oracle transaction database on block storage." That's Tier one. But Spotify's pretty important business. And again, on BigQuery, it is a cloud-native born in the cloud database, a lot of the cloud databases aren't, right? And that's one of the reasons why BigQuery is-- >> Google's really had a lot of success taking technologies that were built for some of the consumer services that we build and turning them into cloud-native Google Cloud. Like HDFS, who we were talking about, open source technologies came originally from the Google file system. Now we have a new version of it that we run internally called Colossus, incredible technologies that are cloud scale technologies that you can use to build things like Google Cloud storage. >> I remember one of the early Hadoop worlds, I was talking to a Google engineer and saying, "Well, wow, that's so cool that Hadoop came. You guys were the main spring of that." He goes, "Oh, we're way past Hadoop now." So this is early days of Hadoop (laughs) >> It's funny whenever Google says consumer services, usually consumer indicates just for me. But no, a consumer service for Google is at a scale that almost no business needs at a point in time. So you're not taking something and scaling it up-- >> Yeah. They're Tier one services-- for sure. >> Exactly. You're more often pairing it down so that a fortune 10 company can (laughs) leverage it. >> So let's dig into data protection in the Cloud, disaster recovery in the Cloud, Ransomware protection and then let's get into why Google. Maybe you could give us the trends that you're seeing, how you guys approach it, and why Google. >> Yeah. One of the things I always tell people, there's certain best practices and principles from on-prem that are just still applicable in the Cloud. And one of 'em is just fundamentals around recovery point objective and recovery time objective. You should know, for your apps, what you need, you should tier your apps, get best practice around them and think about those in the Cloud as well. The concept of RPO and RTO don't just magically go away just 'cause you're running in the Cloud. You should think about these things. And it's one of the reasons we're here at the VeeamON event. It's important, obviously, they have a tremendous skill in technology, but helping customers implement the right RPO and RTO for their different applications. And they also help do that in Google Cloud. So we have a great partnership with them, two main offerings that they offer in Google. One is integration for their on-prem things to use, basically Google as a backup target or DR target and then cloud-native backups they have some technologies, Veeam backup for Google. And obviously they also bought Kasten a while ago. 'Cause they also got excited about the container trend and obviously great technologies for those customers to use those in Google Cloud as well. >> So RPO and RTO is kind of IT terms, right? But we think of them as sort of the business requirement. Here's the business language. How much data are you willing to lose? And the business person says, "What? I don't want to lose any data." Oh, how big's your budget, right? Oh, okay. That's RPO. RTO is how fast you want to get it back? "How fast do you want to get it back if there's an outage?" "Instantly." "How much money do you want to spend on that?" "Oh." Okay. And then your application value will determine that. Okay. So that's what RPO and RTO is for those who you may not know that. Sometimes we get into the acronym too much. Okay. Why Google Cloud? >> Yeah. When I think about some of the infrastructure Google has and like why does it matter to a customer of Google Cloud? The first couple things I usually talk about is networking and storage. Compute's awesome, we can talk about containers and Kubernetes in a little bit, but if you just think about core infrastructure, networking, Google's got one of the biggest networks in the world, obviously to service all these consumer applications. Two things that I often tell people about the Google network, one, just tremendous backbone bandwidth across the regions. One of the things to think about with data protection, it's a large data set. When you're going to do recoveries, you're pushing lots of terabytes often and big pipes matter. Like it helps you hit the right recovery time objective 'cause you, "I want to do a restore across the country." You need good networks. And obviously Google has a tremendous network. I think we have like 20 subsea cables that we've built underneath the the world's oceans to connect the world on the internet. >> Awesome. >> The other thing that I think is really underappreciated about the Google network is how quickly you get into it. One of the reasons all the consumer apps have such good response time is there's a local access point to get into the Google network somewhere close to you almost anywhere in the world. I'm sure you can find some obscure place where we don't have an access point, but look Search and Photos and Maps and Workspace, they all work so well because you get in the Google network fast, local access points and then we can control the quality of service. And that underlying substrate is the same substrate we have in Google Cloud. So the network is number one. Second one in storage, we have some really incredible capabilities in cloud storage, particularly around our dual region and multi-region buckets. The multi-region bucket, the way I describe it to people, it's a continent sized bucket. Single bucket name, strongly consistent that basically spans a continent. It's in some senses a little bit of the Nirvana of storage. No more DR failover, right? In a lot of places, traditionally on-prem but even other clouds, two buckets, failover, right? Orchestration, set up. Whenever you do orchestration, the DR is a lot more complicated. You got to do more fire drills, make sure it works. We have this capability to have a single name space that spans regions and it has strong read after write consistency, everything you drop into it you can read back immediately. >> Say I'm on the west coast and I have a little bit of an on-premises data center still and I'm using Veeam to back something up and I'm using storage within GCP. Trace out exactly what you mean by that in terms of a continent sized bucket. Updates going to the recovery volume, for lack of a better term, in GCP. Where is that physically? If I'm on the west coast, what does that look like? >> Two main options. It depends again on what your business goals are. First option is you pick a regional bucket, multiple zones in a Google Cloud region are going to store your data. It's resilient 'cause there's three zones in the region but it's all in one region. And then your second option is this multi-region bucket, where we're basically taking a set of the Google Cloud regions from around North America and storing your data basically in the continent, multiple copies of your data. And that's great because if you want to protect yourself from a regional outage, right? Earthquake, natural disaster of some sort, this multi-region, it basically gives you this DR protection for free and it's... Well, it's not free 'cause you have to pay for it of course, but it's a free from a failover perspective. Single name space, your app doesn't need to know. You restart the app on the east coast, same bucket name. >> Right. That's good. >> Read and write instantly out of the bucket. >> Cool. What are you doing with Veeam? >> So we have this great partnership, obviously for data protection and DR. And I really often segment the conversation into two pieces. One is for traditional on-prem customers who essentially want to use the Cloud as either a backup or a DR target. Traditional Veeam backup and replication supports Google Cloud targets. You can write to cloud storage. Some of these advantages I mentioned. Our archive storage, really cheap. We just actually lowered the price for archive storage quite significantly, roughly a third of what you find in some of the other competitive clouds if you look at the capabilities. Our archive class storage, fast recovery time, right? Fast latency, no hours to kind of rehydrate. >> Good. Storage in the cloud is overpriced. >> Yeah. >> It is. It is historically overpriced despite all the rhetoric. Good. I didn't know that. I'm glad to hear. >> Yeah. So the archive class store, so you essentially read and write into this bucket and restore. So it's often one of the things I joke with people about. I live in Silicon Valley, I still see the tape truck driving around. I really think people can really modernize these environments and use the cloud as a backup target. You get a copy of your data off-prem. >> Don't you guys use tape? >> Well, we don't talk a lot about-- >> No comment. Just checking. >> And just to be clear, when he says cloud storage is overpriced, he thinks that a postage stamp is overpriced, right? >> No. >> If I give you 50 cents, are you going to deliver a letter cross country? No. Cloud storage, it's not overpriced. >> Okay. (David laughing) We're going to have that conversation. I think it's historically overpriced. I think it could be more attractive, relative to the cost of the underlying technology. So good for you guys pushing prices. >> Yeah. So this archive class storage, is one great area. The second area we really work with Veeam is protecting cloud-native workloads. So increasingly customers are running workloads in the Cloud, they run VMware in the Cloud, they run normal VMs, they run containers. Veeam has two offerings in Google that essentially help customers protect that data, hit their RPO, RTO objectives. Another thing that is not different in the Cloud is the need to meet your compliance regulations, right? So having a product like Veeam that is easy to show back to your auditor, to your regulator to make sure that you have copies of your data, that you can hit an appropriate recovery time objective if you're in finance or healthcare, energy. So there's some really good Veeam technologies that work in Google Cloud to protect applications that actually run in Google Cloud all in. >> To your point about the tape truck I was kind of tongue in cheek, but I know you guys use tape. But the point is you shouldn't have to call the tape truck, right, you should go to Google and say, "Okay. I need my data back." Now having said that sometimes the highest bandwidth in the world is putting all this stuff on the truck. Is there an option for that? >> Again, it gets back to this networking capability that I mentioned. Yes. People do like to joke about, okay, trucks and trains and things can have a lot of bandwidth, big networks can push a lot of data around, obviously. >> And you got a big network. >> We got a huge network. So if you want to push... I've seen statistics. You can do terabits a second to a single Google Cloud storage bucket, super computing type performance inside Google Cloud, which from a scale perspective, whether it be network compute, these are things scale. If there's one thing that Google's really, really good at, it's really high scale. >> If your's companies can't afford to. >> Yeah, if you're that sensitive, avoid moving the data altogether. If you're that sensitive, have your recovery capability be in GCP. >> Yeah. Well, and again-- >> So that when you're recovering you're not having to move data. >> It's approximate to, yeah. That's the point. >> Recovering GCV, fail over your VMware cluster. >> Exactly. >> And use the cloud as a DR target. >> We got very little time but can you just give us a rundown of your portfolio in storage? >> Yeah. So storage, cloud storage for object storage got a bunch of regional options and classes of storage, like I mentioned, archive storage. Our first party offerings in the file area, our file store, basic enterprise and high scale, which is really for highly concurrent paralyzed applications. Persistent disk is our block storage offering. We also have a very high performance cash block storage offering and local SSDs. So that's the main kind of food groups of storage, block file object, increasingly doing a lot of work in data protection and in transfer and distributed cloud environments where the edge of the cloud is pushing outside the cloud regions themselves. But those are our products. Also, we spend a lot of time with our partners 'cause Google's really good at building and open sourcing and partnering at the same time hence with Veeam, obviously with file. We partner with NetApp and Dell and a bunch of folks. So there's a lot of partnerships we have that are important to us as well. >> Yeah. You know, we didn't get into Kubernetes, a great example of open source, Istio, Anthos, we didn't talk about the on-prem stuff. So Brian we'll have to have you back and chat about those things. >> I look forward to it. >> To quote my friend Matt baker, it's not a zero sum game out there and it's great to see Google pushing the technology. Thanks so much for coming on. All right. And thank you for watching. Keep it right there. Our next guest will be up shortly. This is Dave Vellante for Dave Nicholson. We're live at VeeamON 2022 and we'll be right back. (soft beats music)

>>Welcome back to the cubes coverage of Veeam on 2022 at the RS. Nice to be at the aria. My co-host Dave Nicholson here. We spend a lot of time at the Venetian convention center, formerly the sand. So it's nice to have a more intimate venue. I really like it here. George Burg is joining us. He's the vice president of data protection at vast data, a company that some of you may not know about. George. >>Welcome a pleasure. Thank you so much for having me. >>So VAs is smoking hot, raised a ton of dough. You've got great founders, hard charging, interesting tech. We've covered a little bit on the Wikibon research side, but give us the overview of the company. Yeah, >>If I could please. So we're here at the, you know, the Veeam show and, you know, the theme is modern data protection, and I don't think there's any company that epitomizes modern data protection more than vast data. The fact that we're able to do an all flash system at exabyte scale, but the economics of cloud object based deep, cheap, and deep archive type solutions and an extremely resilient platform is really game changing for the marketplace. So, and quite frankly, a marketplace from a data protection target space that I think is, is ripe for change and in need of change based on the things that are going on in the marketplace today. >>Yeah. So a lot of what you said is gonna be surprising to people, wait a minute, you're talking about data protection and all flash sure. I thought you'd use cheap and deep disc or, you know, even tape for that or, you know, spin it up in the cloud in a, in a deep archive or a glacier. Explain your approach in, in architecture. Yeah. At a >>High level. Yeah. So great question. We get that question every day and got it in the booth yesterday, probably about 40 or 50 times. How could it be all flash that at an economic point that is the fitting that of, you know, data protection. Yeah. >>What is this Ferrari minivan of which you speak? >>Yeah, yeah, yeah. The minivan that goes 180 miles an hour, right. That, you know, it's, it's really all about the architecture, right? The component tree is, is somewhat similar to what you'll see in other devices. However, it's how we're leveraging them in the architecture and design, you know, from our founders years ago and building a solution that just not, was not available in the marketplace. So yeah, sure. We're using, you know, all flash QLC drives, but the technology, you know, the advanced next generation algorithms or erasure coding or rage striping allows us to be extremely efficient. We also have some technologies around what we call similarity, some advanced data reduction. So you need less, less capacity if you will, with a vast system. So that obviously help obviously helps us out tremendously with their economics. But the other thing is I could sell a customer exactly what they need. If you think about the legacy data protection market purpose built back of appliances, for example, you know, ALA, Adele, Aita, and HP, you know, they're selling systems that are somewhat rigid. There's always a controller in a capacity. It's tied to a model number right. Soon as you need more performance, you buy another, as soon as you need more capacity, you buy another, it's really not modular in any way. It's great >>Model. If you want to just keep, keep billing the >>Customer. Yeah. If, if that, if yeah. And, and I, I think, I think at this point, the purpose, you know, Dave, the purpose built backup appliance market is, is hungry for a change. Right. You know, there's, there's not anyone that has one. It doesn't exist. I'm not just talking about having two because of replication. I'm it's because of organic growth. Ransomware needs to have a second unit, a second copy. And just, and just scalability. Well, you >>Guys saw that fatigue with that model of, oh, you need more buy more, >>Right? Oh, without a doubt, you said we're gonna attack that. Yeah. Yeah. Sorry. No, no, no. That's great. Without a doubt. So, so we can configure a solution exactly. To the need. Cause let's face it. Every single data center, every single vertical market, it's a work of art. You know, everyone's retention policies are different. Everyone's compliance needs are different. There might be some things that are self mandated or government mandated and they're all gonna be somewhat different. Right? The fact of the matter is the way that our, our architecture works, disaggregated shared everything. Architecture is different because when we go back to those model numbers and there's more rigid purpose built back of appliances, or, or maybe a raise designed specifically for data protection, they don't offer that flexibility. And, you know, I, I, I think our, our, our, our entry point is sized to exactly what the need is. Our ease of scalability. You need more performance. We just add another compute, another compute box, what we call our C box. If you need more capacity, we just add another data box, a D box, you know, where the data resides. And, you know, I, you know, especially here at Veeam, I think customers are really clamoring for that next generation solution. They love the idea that there's a low point of entry, but they also love the idea that, that it's easy to scale on demand, you know, as, as needed and as needed basis. >>So just, I wanna be just, I want to go down another layer on that architecturally. Cause I think it's important for people to understand. Sure, exactly what you're saying. When you're talking about scaling, there's this concept of the, of the sort of devil's triangle, the tyranny of this combination of memory, CPU and storage. Sure. And if you're too rigid, like in an appliance, you end up paying for things you don't need. Correct. When all I need is a little more capacity. Correct. All I need is a little more horsepower. Well, you wanna horsepower? No, you gotta buy a bunch of capacity. Exactly. Oh, need capacity. No, no. You need to buy expensive CPUs and suck a bunch of power. All I need is capacity. So what, so go through that, just a little more detail in terms of sure. How you cobble these systems together. Sure. My, the way my brain works, it's always about Legos. So feel free to use Legos. >>Yeah. We, so, so with our disaggregated solution, right. We've separated basically hardware from software. Right. So, so, so that's a good thing, right? From an economic standpoint, but also a design and architecture standpoint, but also an underlining underpinning of that solution is we've also separated the capacity from the performance. And as you just mentioned, those are typically relatively speaking for every other solution on the planet. Those are tied together. Right? Right. So we've disaggregated that as well within our architecture. So we, we again have basically three tier, tier's not the right word, three components that build out a vast cluster. And again, we don't sell like a solution designed by a model number. And that's typically our C boxes connected via NVMe over fabric to a D box C is all the performance D is all the capacity because they're modular. You can end up like our, our baseline product would start out as a one by one, one C box one D box, right? >>Connected again, via different, different size and Vme fabrics. And that could scale to hundreds. When we do have customers with dozens of C boxes, meeting high performance requirements, keep in mind when, when vast data came to market, our founders brought it to the market for high performance computing machine learning, AI data protection was an afterthought, but those found, you know, foundational things that we're able to build in that modularity with performance at scale, it behooves itself, it's perfect fit for data protection. So we see in clients today, just yesterday, two clients standing next to each other in the same market in the same vertical. I have a 30 day retention. I have a 90 day retention. I have to keep one year worth of full backups. I have to keep seven years worth of full backups. We can accommodate both and size it to exactly what the need is. >>Now, the moment that they need one more terabyte, we license into 100 terabyte increments so they can actually buy it in a sense, almost in arrears, we don't turn it off. We don't, there's not a hard cat. They have access to that capacity within the solution that they provide and they can have access immediate access. And without going through, let's face it. A lot of the other companies that we're both thinking of that have those traditional again, purpose-built solutions or arrays. They want you to buy everything up front in advance, signing license agreements. We're the exact opposite. We want you to buy for the need as, and as needed basis. And also because the fact that we're, multi-protocol multi-use case, you see people doing many things within even a single vast cluster. >>I, I wanna come back to the architecture if I, I can and just understand it better. And I said, David, Flo's written a lot about this on our site, but I've had three key meetings in my life with Mosia and I, and I you've obviously know the first week you showed up in my offices at IDC in the late 1980s said, tell me everything, you know about the IBM mainframe IO subsystem. I'm like, oh, this is gonna be a short meeting. And then they came back a year later and showed us symmetric. I was like, wow, that's pretty impressive. The second one was, I gave a speech at 43 south of 42 south. He came up and gave me a big hug. I'm like, wow. He knows me. And the third one, he was in my offices at, in Mabo several years ago. And we were arguing about the flash versus spinning disc. And he's like, I can outperform an all flash array because we've tuned our algorithms for spinning disc. Everybody else is missing that. You're basically saying the opposite. Correct. We've turned tuned our algorithms to, for QC David Flos says Dave, there's a lot of ways to skin a cat in this technology industry. So I wanted to make sure I got that right. Basically you're skinning the cat with different >>Approach. Yeah. We've also changed really the approach of backup. I mean, the, the term backup is really legacy. I mean, that's 10, 12 years of our recovery. The, the story today is really about, about restore resiliency and recovery. So when you think about those legacy solutions, right, they were built to ingest fast, right? We wanna move the data off our primary systems, our, our primary applications and we needed to fit within a backup window. Restore was an afterthought. Restore was, I might occasionally need to restore something. Something got lost, something got re corrupted. I have to restore something today with the, you know, let's face it, the digital pandemic of, of, of cyber threats and, and ransomware it's about sometimes restoring everything. So if you look at a legacy system, they ingest, I'm sorry. They, they, they write very fast. They, they, they can bring the data in very quickly, but their restore time is typically about 20 to 25%. >>So their reading at only 20, 25% of their right speed, you know, is their rate speed. We flip the script on that. We actually read eight times faster than we write. So I could size again to the performance that you need. If you need 40 terabytes, an hour 50 terabytes an hour, we can do that. But those systems that write at 40 terabytes an hour are restoring at only eight. We're writing at a similarly size system, which actually comes out about 51 terabytes an hour 54 terabytes. We're restoring at 432 terabytes an hour. So we've broken the mold of data protection targets. We're no longer the bottleneck. We're no longer part of your recovery plan going to be the issue right now, you gotta start thinking about network connectivity. Do I have, you know, you know, with the, with our Veeam partners, do we have the right data movers, whether virtual or physical, where am I gonna put the data? >>We've really helped customer aided customers to rethinking their whole Dr. Plan, cuz let's face it. When, when ransomware occurs, you might not be able to get in the building, your phones don't work. Who do you call right? By the time you get that all figured out and you get to the point where you're start, you want to start recovering data. If I could recover 50 times faster than a purpose built backup appliance. Right? Think about it. Is it one day or is it 50 days? Am I gonna be back online? Is it one hour? Is it 50 hours? How many millions of dollars, tens of thousands of dollars were like, will that cost us? And that's why our architecture though our thought process and how the system was designed lends itself. So well for the requirements of today, data protection, not backup it's about data protection. >>Can you give us a sense as to how much of your business momentum is from data protection? >>Yeah, sure. So I joined VAs as we were talking chatting before I come on about six months ago. And it's funny, we had a lot of vast customers on their own because they wanted to leverage the platform and they saw the power of VAs. They started doing that. And then as our founders, you know, decided to lean in heavily into this marketplace with investments, not just in people, but also in technology and research and development, and also partnering with the likes of, of Veeam. We, we don't have a data mover, right. We, we require a data mover to bring us the data we've leaned in tremendously. Last quarter was really our, probably our first quarter where we had a lot of marketing and momentum around data protection. We sold five X last quarter than we did all of last year. So right now the momentum's great pipeline looks phenomenal and you know, we're gonna continue to lean in here. >>Describe the relationship with Veeam, like kind of, sort of started recently. It sounds like as customer demand. Yeah. But what's that like, what are you guys doing in terms of engineering integration go to market? >>Yeah. So, so we've gone through all the traditional, you know, verifications and certifications and, and, and I'm proud to say that we kind of blew the, the, the roof off the requirements of a Veeam environ. Remember Veeam was very innovative. 10, 12 years ago, they were putting flash in servers because they, they, they want a high performing environment, a feature such as instant recovery. We've now enabled. When I talked about all those things about re about restore. We had customers yesterday come to us that have tens of thousands of VMs. Imagine that I can spin them up instantaneously and run Veeam's instant recovery solution. While then in the background, restoring those items that is powerful and you need a very fast high performance system to enable that instant. Recovery's not new. It's been in the market for very long, but you can ask nine outta 10 customers walk in the floor. >>They're not able to leverage that today in the systems that they have, or it's over architected and very expensive and somewhat cost prohibitive. So our relationship with Veeam is really skyrocketing actually, as part of that, that success and our, our last quarter, we did seven figure deals here in the United States. We've done deals in Australia. We were chatting. I, I, I happened to be in Dubai and we did a deal there with the government there. So, you know, there's no, there's no specific vertical market. They're all different. You know, it's, it's really driven by, you know, they have a great, you know, cyber resilient message. I mean, you get seen by the last couple of days today and they just want that power that vast. Now there are other systems in the marketplace today that leverage all flash, but they don't have the economic solution that we have. >>No, your, your design anticipated the era that we're we're in right now from it, it anticipated the ability to scale in, to scale, you know, in >>A variety. Well, listen, anticipation of course, co coincidental architecture. It's a fantastic fit either way, either way. I mean, it's a fantastic fit for today. And that's the conversations that we're having with, with all the customers here, it's really all about resiliency. And they know, I mean, one of the sessions, I think it was mentioned 82 or 84% of, of all clients interviewed don't believe that they can do a restore after a cyber attack or it'll cost them millions of dollars. So that there's a tremendous amount of risk there. So time is, is, is ultimately equals dollars. So we see a, a big uptick there, but we're, we're actually continuing our validation work and testing with Veeam. They've been very receptive, very receptive globally. Veeam's channel has also been very receptive globally because you know, their customers are, you know, hungry for innovation as well. And I really strongly believe ASBO brings that >>George, we gotta go, but thank you. Congratulations. Pleasure on the momentum. Say hi to Jeff for us. >>We'll we'll do so, you know, and we'll, can I leave you with one last thought? Yeah, >>Please do give us your final thought. >>If I could, in closing, I think it's pretty important when, when customers are, are evaluating vast, if I could give them three data points, 100% of customers that Triva test vast POC, vast BVAs 100% Gartner peer insights recently did a survey. You know, they, they do it with our, you know, blind survey, dozens of vast customers and never happened before where 100% of the respondents said, yes, I would recommend VA and I will buy VAs again. It was more >>Than two respondents. >>It was more, it was dozens. They won't do it. If it's not dozens, it's dozens. It's not dozen this >>Check >>In and last but not. And, and last but not least our customers are, are speaking with their wallet. And the fact of the matter is for every customer that spends a dollar with vast within a year, they spend three more. So, I mean, if there's no better endorsement, if you have a customer base, a client base that are coming back and looking for more use cases, not just data protection, but again, high performance computing machine learning AI for a company like VA data. >>Awesome. And a lot of investment in engineering, more investment in engineering than marketing. How do I know? Because your capacity nodes, aren't the C nodes. They're the D nodes somehow. So the engineers obviously won that naming. >>They'll always win that one and we, and we, and we let them, we need them. Thank you. So that awesome product >>Sales, it's the golden rule. All right. Thank you, George. Keep it right there. VEON 20, 22, you're watching the cube, Uber, Uber right back.

(bright upbeat music) >> Welcome back to theCUBE's coverage of VeeamON 2022. We're here at the Aria in Las Vegas. This is day two, Dave Vallante with David Nicholson. You know with theCUBE, we talked about the cloud a lot and the company that started the cloud, AWS. Jeanna James is here. She's the Global Alliance Manager at AWS and a data protection expert. Great to see you. Thanks for coming on theCUBE again. >> Thanks so much for having me, Dave. It's great to be here in person with everyone. >> Yes, you know, we've done a few events live more than a handful. Thanks a lot to AWS. We've done a number. We did the DC Summits. Of course, re:Invent was huge out here last year. That was right in between the sort of variant Omicron hitting. And it was a great, great show. We thought, okay, now we're back. And of course we're kind of back, but we're here and it's good to have you. So Veeam, AWS, I mean, they certainly embrace the cloud. What's your relationship there? >> Yeah, so Veeam is definitely a strong partner with AWS. And as you know, AWS is really a, you know, we have so many different services, and our customers and our partners are looking at how can I leverage those services and how do I back this up, right? Whether they're running things on premises and they want to put a copy of the data into Amazon S3, Amazon S3 Infrequent Access or Amazon S3 Glacier Deep Archive, all of these different technologies, you know Veeam supports them to get a copy from on-prem into AWS. But then the great thing is, you know, it's nice to have a copy of your data in the cloud but you might want to be able to do something with it once it gets there, right? So Veeam supports things like Amazon EC2 and Amazon EKS and EKS Anywhere. So those customers can actually recover their data directly into Amazon EC2 and EKS Anywhere. >> So we, of course, talked a lot about ransomware and that's important in that context of what you just mentioned. What are you seeing with the customers when you talk to them about ransomware? What are they asking AWS to do? Maybe we could start unpacking that a bit. >> Yeah, ransomware is definitely a huge topic today. We're constantly having that conversation. And, you know, five years ago there was a big malware attack that was called the NotPetya virus. And at that time it was based on Petya which was a ransomware virus, and it was designed to go in and, you know, lock in the data but it also went after the backup data, right? So it hold all of that data hostage so that people couldn't recover. Well, NotPetya was based on that but it was worse because it was the seek and destroy virus. So with the ransomware, you can pay a fee and get your data back. But with this NotPetya, it just went in, it propagated itself. It started installing on servers and laptops, anything it could touch and just deleting everything. And at that time, I actually happened to be in the hospital. So hospitals, all types of companies got hit by this attack. And my father had been rushed to the emergency room. I happened to be there. So I saw live what really was happening. And honestly, these network guys were running around shutting down laptops, taking them away from doctors and nurses, shutting off desktops. Putting like taping on pictures that said, do not turn on, right? And then, the nurses and staff were having to kind of take notes. And it was just, it was a mess, it was bad. >> Putting masks on the laptops essentially. >> Yeah, so just-- >> Disinfecting them or trying to. Wow, unplugging things from the network. >> Yes, because, you know, and that attack really demonstrated why you really need a copy of the data in the cloud or somewhere besides tape, right? So what happened at that time is if you lose 10 servers or something, you might be able to recover from tape, but if you lose a hundred or a thousand servers and all of your laptops, all in hours, literally a matter of hours, that is a big event, it's going to take time to recover. And so, you know, if you put a copy of the backup data in Amazon S3 and you can turn on that S3 Object Lock for immutability, you're able to recover in the cloud. >> So, can we go back to this hospital story? 'Cause that takes us inside the disaster potential. So they shut everything down, basically shut down the network so they could figure out what's going on and then fence it off, I presume. So you got, wow, so what happened? First of all, did they have to go manual, I mean? >> They had to do everything manually. It was really a different experience. >> Going back to the 1970s, I mean. >> It was, and they didn't know really how to do it, right? So they basically had kind of yellow notepads and they would take notes. Well, then let's say the doctor took notes, well, then the nurse couldn't read the notes. And even over the PA, you know, there was an announcement and it was pretty funny. Don't send down lab work request with just the last name. We need to know the first name, the last name, and the date of birth. There are multiple Joneses in this hospital so yeah (giggles). >> This is going to sound weird. But so when I was a kid, when you worked retail, if there was a charge for, you know, let's say $5.74 and, you know, they gave you, you know, amount of money, you would give them, you know, the penny back, count up in your head that's 75, give them a quarter and then give them the change. Today, of course, it works differently. The computer tells you, how much change to give. It's like they didn't know what to do. They didn't know how to do it manually 'cause they never had the manual process. >> That's exactly right. Some of the nurses and doctors had never done it manually. >> Wow, okay, so then technically they have to figure out what happened so that takes some time. However they do that. That's kind of not your job, right? I dunno if you can help with that or not. Maybe Amazon has some tooling to do that, probably does. And then you've got to recover from somewhere, not tape ideally. That's like the last resort. You put it on a Chevy Truck, Chevy Truck Access Method called CTAM, ship it in. That takes days, right? If you're lucky. So what's the ideal recovery. I presume it's a local copy somewhere. >> So the ideal-- >> It's fenced. >> In that particular situation, right? They had to really air gap so they couldn't even recover on those servers and things like that-- >> Because everything was infected on on-prem. >> Because everything was just continuing to propagate. So ideally you would have a copy of your data in AWS and you would turn on Object Lock which is the immutability, very simple check mark in Veeam to enable that. And that then you would be able to kick off your restores in Amazon EC2, and start running your business so. >> Yeah, this ties into the discussion of the ransomware survey where, you know, NotPetya was not seeking to extort money, it was seeking to just simply arrive and destroy. In the ransomware survey, some percentage of clients who paid ransom, never got their data back anyway. >> Oh my. >> So you almost have to go into this treating-- >> Huge percentage. >> Yeah, yeah, yeah. >> Like a third. >> Yeah, when you combine the ones where there was no request for ransom, you know, for any extorted funds, and then the ones where people paid but got nothing back. I know Maersk Line, the shipping company is a well studied example of what happened with NotPetya. And it's kind of chilling because what you describe, people running around shutting down laptops because they're seeing all of their peers' screens go black. >> Yes, that's exactly what's happening. >> And then you're done. So that end point is done at that point. >> So we've seen this, I always say there are these milestones in attacks. I mean, Stuxnet proved what a nation state could do and others learned from that, NotPetya, now SolarWinds. And people are freaking out about that because it's like maybe we haven't seen the last of that 'cause that was highly stealth, not a lot of, you know, Russian language in the malware. They would delete a lot of the malware. So very highly sophisticated island hopping, self forming malware. So who knows what's next? We don't know. And so you're saying the ideal is to have an air gap that's physically separate. maybe you can have one locally as well, we've heard about that too, and then you recover from that. What are you seeing in terms of your customers recovering from that? Is it taking minutes, hours, days? >> So that really de depends on the customers SLAs, right? And so with AWS, we offer multiple tiers of storage classes that provide different SLA recovery times, right? So if you're okay with data taking longer to recovery, you can use something like Amazon S3 Glacier Deep Archive. But if it's mission critical data, you probably want to put it in Amazon S3 and turn on that Object Lock for immutability sake. So nothing can be overwritten or deleted. And that way you can kick off your recoveries directly in AWS. >> One of the demos today that we saw, the recovery was exceedingly fast with a very small data loss so that's obviously a higher level SLA. You got to get what you pay for. A lot of businesses need that. I think it was like, I didn't think it was, they said four minutes data loss which is good. I'm glad they didn't say zero data loss 'cause there's really no such thing. So you've got experience, Jeanna, in the data protection business. How have you seen data protection evolve in the last decade and where do you see it going? Because let's face it, I mean when AWS started, okay, it had S3, 15 years ago, 16 years ago, whatever it was. Now, it's got all these tools as you mentioned. So you've learned, you've innovated along with your customers. You listened to your customers. That's your whole thing, customer obsession. >> That's right. >> What are they telling you? What do you see as the future? >> Definitely, we see more and more containerization. So you'll see with the Kasten by Veeam product, right? The ability to protect Amazon EKS, and Amazon EKS Anywhere, we see customers really want to take advantage of the ability to containerize and not have to do as much management, right? So much of what we call undifferentiated heavy lifting, right? So I think you'll see continued innovation in the area of containerization, you know, serverless computing. Obviously with AWS, we have a lot going on with artificial intelligence and machine learning. And, you know, the backup partners, they really have a unique capability in that they do touch a lot of data, right? So I think in the future, you know, things around artificial intelligence and machine learning and data analytics, all of those things could certainly be very applicable for folks like Veeam. >> Yeah, you know, we give a lot of, we acknowledge that backup is different from recovery but we often fall prey to making the mistake of saying, oh, well your data is available in X number of minutes. Well, that's great. What's it available to? So let's say I have backed up to S3 and it's immutable. By the way my wife keeps calling me and saying she wants mutability for me. (Jeanna laughs) I'm not sure if that's a good thing or not. But now I've got my backup in S3, begs the question, okay, well, now what do I do with it? Well, guess what you mentioned EC2. >> That's right. >> The ability exists to create a restore environment so that not only is the data available but the services are actually online and available-- >> That's right-- >> Which is what you want with EKS and Kasten. >> So if the customer is running, you know, Kubernetes, they're able to recover as well. So yes, definitely, I see more and more services like that where customers are able to recover their environment. It might be more than just a server, right? So things are changing. It's not just one, two, three, it's the whole environment. >> So speaking of the future, one of the last physical theCUBE interviews that Andy Jassy did with us. John Furrier and myself, we were asking about the edge and he had a great quote. He said, "Oh yeah, we look at the data center as just another edge node." I thought that was good classic Andy Jassy depositioning. And so it was brilliant. But nonetheless, we've talked a little bit about the edge. I was interviewing Verizon last week, and they told me they're putting outposts everywhere, like leaning in big time. And I was saying, okay, but outpost, you know, what can you do with outpost today? Oh, you can run RDS. And, you know, there's a few ecosystem partners that support it, and he's like, oh no, we're going to push Amazon. So what are you seeing at the edge in terms of data protection? Are customers giving you any feedback at this point? >> Definitely, so edge is a big deal, right? Because some workloads require that low latency, and things like outpost allow the customers to take advantage of the same API sets that they love in, you know, AWS today, like S3, right? For example. So they're able to deploy an outpost and meet some of those specific guidelines that they might have around compliance or, you know, various regulations, and then have that same consistent operational stance whether they're on-prem or in AWS. So we see that as well as the Snowball devices, you know, they're being really hardened so they can run in areas that don't have connected, you know, interfaces to the internet, right? So you've got them running in like ships or, you know, airplanes, or a field somewhere out in nowhere of this field, right? So lots of interesting things going on there. And then of course with IoT and the internet of things and so many different devices out there, we just see a lot of change in the industry and how data is being collected, how data's being created so a lot of excitement. >> Well, so the partners are key for outposts obviously 'cause you can't do it all yourself. It's almost, okay, Amazon now in a data center or an edge node. It's like me skating. It's like, hmm, I'm kind of out of my element there but I think you're learning, right? So, but partners are key to be able to support that model. >> Yes, definitely our partners are key, Veeam, of course, supports the outpost. They support the Snowball Edge devices. They do a lot. Again, they pay attention to their customers, right? Their customers are moving more and more workloads into AWS. So what do they do? They start to support those workloads, right? Because the customers also want that consistent, like we say, the consistent APIs with AWS. Well, they also want the consistent data protection strategy with Veeam. >> Well, the cloud is expanding. It's no longer just a bunch of remote services somewhere out there in the cloud. It's going to data centers. It's going out to the edge. It's going to local zones. You guys just announced a bunch of new local zones. I'm sure there are a lot of outposts in there, expanding your regions. Super cloud is forming right before our eyes. Jeanna, thanks so much for coming to theCUBE. >> Thank you. It's been great to be here. >> All right, and thank you for watching theCUBE's coverage. This is day two. We're going all day here, myself, Dave Nicholson, cohost. Check out siliconangle.com. For all the news, thecube.net, wikibon.com. We'll be right back right after this short break. (bright upbeat music)

(calm music) >> Hi everybody. We're here at VeeamON 2022. This is day two of the CUBE's continuous coverage. I'm Dave Vellante. My co-host is Dave Nicholson. A ton of energy. The keynotes, day two keynotes are all about products at Veeam. Veeam, the color of green, same color as money. And so, and it flows in this ecosystem. I'll tell you right now, Michael Cade is here. He's the senior technologist for product strategy at Veeam. Michael, fresh off the keynotes. >> Yeah, yeah. >> Welcome. Danny Allen's keynote was fantastic. I mean, that story he told blew me away. I can't wait to have him back. Stay tuned for that one. But we're going to talk about protecting containers, Kasten. You guys got announcements of Kasten by Veeam, you call it K10 version five, I think? >> Yeah. So just rolled into 5.0 release this week. Now, it's a bit different to what we see from a VBR release cycle kind of thing, cause we're constantly working on a two week sprint cycle. So as much as 5.0's been launched and announced, we're going to see that trickling out over the next couple of months until we get round to Cube (indistinct) and we do all of this again, right? >> So let's back up. I first bumped into Kasten, gosh, it was several years ago at VeeamON. Like, wow this is a really interesting company. I had deep conversations with them. They had a sheer, sheer cat grin, like something was going on and okay finally you acquire them, but go back a little bit of history. Like why the need for this? Containers used to be ephemeral. You know, you didn't have to persist them. That changed, but you guys are way ahead of that trend. Talk a little bit more about the history there and then we'll get into current day. >> Yeah, I think the need for stateful workloads within Kubernetes is absolutely grown. I think we just saw 1.24 of Kubernetes get released last week or a couple of weeks ago now. And really the focus there, you can see, at least three of the big ticket items in that release are focused around storage and data. So it just encourages that the community is wanting to put these data services within that. But it's also common, right? It's great to think about a stateless... If you've got stateless application but even a web server's got some state, right? There's always going to be some data associated to an application. And if there isn't then like, great but that doesn't really work- >> You're right. Where'd they click, where'd they go? I mean little things like that, right? >> Yeah. Yeah, exactly. So one of the things that we are seeing from that is like obviously the requirement to back up and put in a lot of data services in there, and taking full like exposure of the Kubernetes ecosystem, HA, and very tiny containers versus these large like virtual machines that we've always had the story at Veeam around the portability and being able to move them left, right, here, there, and everywhere. But from a K10 point of view, the ability to not only protect them, but also move those applications or move that data wherever they need to be. >> Okay. So, and Kubernetes of course has evolved. I mean the early days of Kubernetes, they kept it simple, kind of like Veeam actually. Right? >> Yeah. >> And then, you know, even though Mesosphere and even Docker Swarm, they were trying to do more sophisticated cluster management. Kubernetes has now got projects getting much more complicated. So more complicated workloads mean more data, more critical data means more protection. Okay, so you acquire Kasten, we know that's a small part of your business today but it's going to be growing. We know this cause everybody's developing applications. So what's different about protecting containers? Danny talks about modern data protection. Okay, when I first heard that, I'm like, eh, nice tagline, but then he peel the onion. He explains how in virtualization, you went from agents to backing up of VMware instance, a virtual instance. What's different about containers? What constitutes modern data protection for containers? >> Yeah, so I think the story that Danny tells as well, is so when we had our physical agents and virtualization came along and a lot of... And this is really where Veeam was born, right, we went into the virtualization API, the VMware API, and we started leveraging that to be more storage efficient. The admin overhead around those agents weren't there then, we could just back up using the API. Whereas obviously a lot of our competition would use agents still and put that resource overhead on top of that. So that's where Veeam initially got the kickstart in that world. I think it's very similar to when it comes to Kubernetes because K10 is deployed within the Kubernetes cluster and it leverages the Kubernetes API to pull out that data in a more efficient way. You could use image based backups or traditional NAS based backups to protect some of the data, and backup's kind of the... It's only one of the ticks in the boxes, right? You have to be able to restore and know what that data is. >> But wait, your competitors aren't as fat, dumb and happy today as they were back then, right? So it can't... They use the same APIs and- >> Yeah. >> So what makes you guys different? >> So I think that's testament to the Kubernetes and the community behind that and things like the CSI driver, which enables the storage vendors to take that CSI abstraction layer and then integrate their storage components, their snapshot technologies, and other efficiency models in there, and be able to leverage that as part of a universal data protection API. So really that's one tick in the box and you're absolutely right, there's open source tools that can do exactly what we're doing to a degree on that backup and recovery. Where it gets really interesting is the mobility of data and how we're protecting that. Because as much as stateful workloads are seen within the Kubernetes environments now, they're also seen outside. So things like Amazon RDS, but the front end lives in Kubernetes going to that stateless point. But being able to protect the whole application and being very application aware means that we can capture everything and restore wherever we want that to go as well. Like, so the demo that I just did was actually a Postgres database in AWS, and us being able to clone or migrate that out into an EKS cluster as a staple set. So again, we're not leveraging RDS at that point, but it gives us the freedom of movement of that data. >> Yeah, I want to talk about that, what you actually demoed. One of the interesting things, we were talking earlier, I didn't see any CLI when you were going through the integration of K10 V5 and V12. >> Yeah. >> That was very interesting, but I'm more skeptical of this concept, of the single pane of glass and how useful that is. Who is this integration targeting? Are you targeting the sort of traditional Veeam user who is now adding as a responsibility, the management of protecting these Kubernetes environments? Or are you at the same time targeting the current owners of those environments? Cause I know you talk about shift left and- >> Yeah. >> You know, nobody needs Kubernetes if you only have one container and one thing you're doing. So at some point it's all about automation, it's about blueprints, it's about getting those things in early. So you get up, you talk about this integration, who cares about that kind of integration? >> Yeah, so I think it's a bit of both, right? So we're definitely focused around the DevOps focused engineer. Let's just call it that. And under an umbrella, the cloud engineer that's looking after Kubernetes, from an application delivery perspective. But I think more and more as we get further up the mountain, CIS admin, obviously who we speak to the tech decision makers, the solutions architects systems engineers, they're going to inherit and be that platform operator around the Kubernetes clusters. And they're probably going to land with the requirement around data management as well. So the specific VBR centralized management is very much for the backup admin, the infrastructure admin or the cloud based engineer that's looking after the Kubernetes cluster and the data within that. Still we speak to app developers who are conscious of what their database looks like, because that's an external data service. And the biggest question that we have or the biggest conversation we have with them is that the source code, the GitHub or the source repository, that's fine, that will get your... That'll get some of the way back up and running, but when it comes to a Postgres database or some sort of data service, oh, that's out of the CI/CD pipeline. So it's whether they're interested in that or whether that gets farmed out into another pre-operations, the traditional operations team. >> So I want to unpack your press release a little bit. It's full of all the acronyms, so maybe you can help us- >> Sure. >> Cipher. You got security everywhere enhance platform hardening, including KMS. That's key- >> Yeah, key management service, yeah. >> System, okay. With AWS, KMS and HashiCorp vault. Awesome, love to see HashiCorp company. >> Yeah. >> RBAC objects in UI dashboards, ransomware attacks, AWS S3. So anyway, security everywhere. What do you mean by that? >> So I think traditionally at Veeam, and continue that, right? From a security perspective, if you think about the failure scenario and ransomware's, the hot topic, right, when it comes to security, but we can think about security as, if we think about that as the bang, right, the bang is something bad's happen, fire, flood, blood, type stuff. And we tend to be that right hand side of that, we tend to be the remediation. We're definitely the one, the last line of defense to get stuff back when something really bad happens. And I think what we've done from a K10 point of view, is not only enhance that, so with the likes of being able to... We're not going to reinvent the wheel, let's use the services that HashiCorp have done from a HashiCorp vault point of view and integrate from a key management system. But then also things like S3 or ransomware prevention. So I want to know if something bad's happened and Kasten actually did something more generic from a Veeam ONE perspective, but one of the pieces that we've seen since we've then started to send our backups to an immutable object storage, is let's be more of that left as well and start looking at the preventative tasks that we can help with. Now, we're not going to be a security company, but you heard all the way through Danny's like keynote, and probably when he is been on here, is that it's always, we're always mindful of that security focus. >> On that point, what was being looked for? A spike in CPU utilization that would be associated with encryption? >> Yeah, exactly that. >> Is that what was being looked- >> That could be... Yeah, exactly that. So that could be from a virtual machine point of view but from a K10, and it specifically is that we're going to look at the S3 bucket or the object storage, we're going to see if there's a rate of change that's out of the normal. It's an abnormal rate. And then with that, we can say, okay, that doesn't look right, alert us through observability tools, again, around the cloud native ecosystem, Prometheus Grafana. And then we're going to get insight into that before the bang happens, hopefully before the bang. >> So that's an interesting when we talk about adjacencies and moving into this area of security- >> We're talking to Zeus about that too. >> Exactly. That's that sort of creep where you can actually add value. It's interesting. >> So, okay. So we talked about shift left, get that, and then expanded ecosystem, industry leading technologies. By the way, one of them is the Red Hat Marketplace. And I think, I heard Anton's... Anton was amazing. He is the head of product management at Veeam. Is been to every VeeamON. He's got family in Ukraine. He's based in Switzerland. >> Yeah. >> But he chose not to come here because he's obviously supporting, you know, the carnage that's going on in Ukraine. But anyway, I think he said the Red Hat team is actually in Ukraine developing, you know, while the bombs are dropping. That's amazing. But anyway, back to our interview here, expanded ecosystem, Red Hat, SUSE with Rancher, they've got some momentum. vSphere with Tanzu, they're in the game. Talk about that ecosystem and its importance. >> Yeah, and I think, and it goes back to your point around the CLI, right? Is that it feels like the next stage of Kubernetes is going to be very much focused towards the operator or the operations team. The CIS admin of today is going to have to look after that. And at the moment it's all very command line, it's all CLI driven. And I think the marketplace is OpenShift, being our biggest foothold around our customer base, is definitely around OpenShift. But things like, obviously we are a longstanding alliance partner with VMware as well. So their Tanzu operations actually there's support for TKGS, so vSphere Tanzu grid services is another part of the big release of 5.0. But all three of those and the common marketplace gives us a UI, gives us a way of being able to see and visualize that rather than having to go and hunt down the commands and get our information through some- >> Oh, some people are going to be unhappy about that. >> Yeah. >> But I contend the human eye has evolved to see in color for a very good reason. So I want to see things in red, yellow, and green at times. >> There you go, yeah. >> So when we hear a company like Veeam talk about, look we have no platform agenda, we don't care which cloud it's in. We don't care if it's on-prem or Google Azure, AWS. We had Wasabi on, we have... Great, they got an S3 compatible, you know, target, and others as well. When we hear them, companies like you, talk about that consistent experience, single pane of glass that you're skeptical of, maybe cause it's technically challenging, one of the things, we call it super cloud, right, that's come up. Danny and I were riffing on that the other day and we'll do that more this afternoon. But it brings up something that we were talking about with Zeus, Dave, which is the edge, right? And it seems like Kubernetes, and we think about OpenShift. >> Yeah. >> We were there last week at Red Hat Summit. It's like 50% of the conversation, if not more, was the edge. Right, and really true edge, worst cases, use cases. Two weeks ago we were at Dell Tech, there was a lot of edge talk, but it was retail stores, like Lowe's. Okay, that's kind of near edge, but the far edge, we're talking space, right? So seems like Kubernetes fits there and OpenShift, you know, particularly, as well as some of the others that we mentioned. What about edge? How much of what you're doing with container data protection do you see as informing you about the edge opportunity? Are you seeing any patterns there? Nobody's really talking about it in data protection yet. >> So yeah, large scale numbers of these very small clusters that are out there on farms or in wind turbines, and that is definitely something that is being spoken about. There's not much mention actually in this 5.0 release because we actually support things like K3s,(indistinct), that all came in 4.5, but I think, to your first point as well, David, is that, look, we don't really care what that Kubernetes distribution is. So you've got K3s lightweight Kubernetes distribution, we support it, because it uses the same native Kubernetes APIs, and we get deployed inside of that. I think where we've got these large scale and large numbers of edge deployments of Kubernetes and that you require potentially some data management down there, and they might want to send everything into a centralized location or a more centralized location than a farm shed out in the country. I think we're going to see a big number of that. But then we also have our multi cluster dashboard that gives us the ability to centralize all of the control plane. So we don't have to go into each individual K10 deployment to manage those policies. We can have one big centralized management multi cluster dashboard, and we can set global policies there. So if you're running a database and maybe it's the same one across all of your different edge locations, where you could just set one policy to say I want to protect that data on an hourly basis, a daily basis, whatever that needs to be, rather than having to go into each individual one. >> And then send it back to that central repository. So that's the model that you see, you don't see the opportunity, at least at this point in time, of actually persisting it at the edge? >> So I think it depends. I think we see both, but again, that's the footprint. And maybe like you mentioned about up in space having a Kubernetes cluster up there. You don't really want to be sending up a NAS device or a storage device, right, to have to sit alongside it. So it's probably, but then equally, what's the art of the possible to get that back down to our planet, like as part of a consistent copy of data? >> Or even a farm or other remote locations. The question is, I mean, EVs, you know, we believe there's going to be tons of data, we just don't.. You think about Tesla as a use case, they don't persist a ton of their data. Maybe if a deer runs across, you know, the front of the car, oh, persist that, send that back to the cloud. >> I don't want anyone knowing my Tesla data. I'll tell you that right now. (all laughing) >> Well, there you go, that one too. All right, well, that's future discussion, we're still trying to squint through those patterns. I got so many questions for you, Michael, but we got to go. Thanks so much for coming to theCUBE. >> Always. >> Great job on the keynote today and good luck. >> Thank you. Thanks for having me. >> All right, keep it right there. We got a ton of product talk today. As I said, Danny Allan's coming back, we got the ecosystem coming, a bunch of the cloud providers. We have, well, iland was up on stage. They were just recently acquired by 11:11 Systems. They were an example today of a cloud service provider. We're going to unpack it all here on theCUBE at VeeamON 2022 from Las Vegas at the Aria. Keep it right there. (calm music)

>>Welcome back to VMO 2022. We're in the home stretch. Now, Dave ante for Dave Nicholson, and we're excited to have drew Schlissel on he's the director of product marketing at wasabi, and he is joined by Dustin Albertson, the manager of cloud and application alliances, product, product management at Veeam software. Dustin, did I get that right? You got it right. All right. You're gonna explain all those little titles in a moment. So wasabi is a company cool name, but you may not know much about them drew. What does wasabi do? >>We do cloud storage, plain and simple. It is the one thing we do extremely well. It's S3 compatible, and it covers a broad range of use cases, right? Primarily we work with Veeam on backup and recovery, and >>We're gonna get into that. But when we, what there's a lot of people do cloud storage, a lot of people do object store. What makes you wasabi unique >>Simplicity, predictability performance security, right? Predictability. Let's talk about price, right? That's the thing that gets people's attention, right? Oh, sure. Okay. You can look at it. One of two ways. It's either one fit the price of all the hyperscalers, significant difference there, or right. For fundamentally the same price. You get five times more storage, which makes a huge difference, especially in the backup space. When you want to have a lot of backups, right. Folks would prefer to have months of backups as opposed to days or weeks. Right? >>How do you, how do you do that? Because, because there's, you know, maybe >>It sounds like magic, doesn't >>It? Yeah. Yeah. I mean, you know, look at us, we've all been around the block quite a few times and we know that the bits and the bites and the bolts are all basically the same. What are you doing to get that level of? >>I can't tell you >>Secret's secret. It's secret. >>Look, it, it doesn't have to be that expensive. Okay. Now granted, there's some things obviously we do that are proprietary and different from, >>Well, like stealing electricity from your neighbor or something. I mean, what, >>You just run a cord over a >>Absolutely that's one way to cut down on price. But because we are so focused on just the storage, right. And our founders, you know, the gentleman who founded Carbonite, no a thing or two about storage. Sure. Right. We have a very highly optimized stack, very efficient. You know, you guys know what raw to usable story is. Right? You've gone through that TCO analysis before, and we're highly efficient in how we use the raw storage. And we pass that price on to our customers. Right. We believe that a low price cloud storage, right? One tier always hot, always available. It gives our customers the ability to spend their money in other places. Right. >>Well, and, and there's a price umbrella that the public cloud guys have is kind of a gift that they've given you. Hey, look at Amazon's operating profits last quarter. It was 35%. Those are like Oracle operating margins. Not that I, we don't know what your operating margins are, but I I've followed David friend's career for a long, long time. He's got good nose for business. But so Dustin, when you, when you hear drew talk about the ability to retain that much data, what does that mean for Veeam customers? >>So the primary thing for Veeam customers is the ease of use. I would say, you know, the, the performance and things like that are all nice, right? They're, they're important. But primarily what I see is people say how easy it is to use and how easy it is to price. Now, the objective, you know, the alternative is you go to another cloud provider and you say, well, how much will this cost me per month? You really have to underst yes, you really have to understand object storage, how Veeam works, how we're moving data, all the API calls, all of that to really kind of correlate out a guesstimate of what your price would be per month. You know, with LASA it's, it's a flat fee it's per terabyte. You know what it is gonna be? That's it? There's no API charges. There's no egres. So the customers really love that. Ease of use this become one of the most popular endpoints for object storage for our customers. >>Imagine this, right? You go to best buy and you buy a refrigerator and you bring it home and you stock it with all your favorite drinks and snacks. Okay. You on game day, you go and you open the fridge and you hear a sound Bing. And it's your phone and it's your credit card company telling you that you've been charged a door opening fee. Okay. And then you grab a beer out of that fridge, Bing, Bing, and you hear another ring and now you're getting a beer extraction fee. Okay. Now I want to be fair to, you know, all the sponsors here, but okay. With wasabi, you can open that door. You could stand there. You can air condition, the whole house. You can take a beer out and put a beer back or whatever your favorite beverage is. And you're not gonna hear that noise. Okay. Very straightforward. Like in, in geometry class, right? The slope of a line Y equals MX plus B B equals zero. Okay. Well, >>Whoa. Well, you had me at free beer. You didn't, >>You don't, but you understand why? >>Why would you, you don't need to go see >>To open your fridge and take out a beverage, take out a snack. Okay. That's the predictable part of wasabi. That's what's resonating so strongly with folks where everything else is in this world. Unpredictable. >>So ease, simplicity. Maybe the answer to that is, well, there's all this other stuff in the cloud. I can just, it's convenient for me. It's right there. So how do you address that convenience factor? All these other services, you know, that I can get streaming and machine learning and all that other great stuff. How do you address that? >>Sometimes all you need is storage. Okay. That no, it that's yet put, okay. That's beauty of wasabi. We're not trying to be everything to everyone. We're trying to be one thing executed very well for a, a specific set of users and use cases. >>I may be a little objective here, but I, I, you know, I've grown up with you guys, right? You, you, you were one of the first partners that I started working with and, and, you know, I've seen you kind of grow, but one of the things I think that you've done a real good job at is, is like you say, sticking to your, your lanes, you know, just going after use cases that just need data. Right. I don't need to get into the AI or the analytics or all of this. We just do this and do it well. And, and people have resonated with that. Right? Yeah. >>So big topic here of course is ransomware. Yeah. 3, 2 11, 0. What is that? What are the threes? The twos, the ones >>That's you, you gotta explain that one. Okay. >>So forever we had the 3, 2, 1 rule, right? Like three copies of data, two different, two different copies, two different media types. Yeah. One offsite. And then one is, is testing. And then zero now is, is validation. BA basically reuse that data. Make sure that you're testing it because if you're not, if you're following through two one, and you're not actually testing your data, is it really good? You don't know. You're just, you may have bad copies spread out all over the place. So one of the things where wasabi shines is is that they don't have these E risk charges. They don't have these API charges. So you can test that data. You can, after you send a backup up there, restore it somewhere else and validate that it works and then get rid of it. And it's still sitting up there in BAA. >>So you're not trying to balance your activities and your operational requirements with your, with your bill. Correct. You're not getting yelled at, by the, the controller at the end of the month. >>You're unconstrained. Yeah. Right. And I think also imutability comes into play. Correct. As well. >>Talk about >>That. Right. So, you know, we heard this morning in the keynote, right? That backup data sets are, you know, one of the main attack vectors, right. For cyber criminals. And it makes sense, right. They take down your primary systems and they control your backup systems. They've got you. You have no choice, but to pay that ransom. Okay. So mutability, that means that your backups are untouchable, your root user, your admins, the folks at wasabi, the folks at Veeam, nobody can alter that data period. End of story. Okay. That saves you from yourself that saves you from the hackers, right? I mean the most disturbing story I've read about cyber warfare right now is that people are getting bribe offers from these cyber gangs. And they're just, you know, for a couple of Bitcoin handing over the keys to the kingdom with imutability, you're actually safe from that scenario. >>So that's a service, correct? >>No, it's a feature. >>Okay. So can I turn it off? >>Yeah. You don't have to use it. >>No. Can I, after I've, after I've turned it on, can I turn it off? >>Oh, it's up to you. I mean, why don't you talk about >>That? Yeah. Yeah. So it's, it's an API. So if let's say you send some backups up there today and you set it for two weeks and you decide today. Oh, I made a mistake. I wanna turn it off. You can't turn it off. Yeah. >>Okay. So as long as you set that policy, it's, it's a big warning, right? You can't undo this. Correct. Okay. So even if I come, come to jump to the admin with a bunch of Bitcoin yep. He or she can't undo, right? >>Nope. That's right. And you can set it for two weeks, two months, two years. Right. You can use it to secure your backups. Yep. Right. You can also use that same feature in compliance situations. Right. Regulatory environments, where you've gotta retain customer data for, you know, 5, 7, 10 years. Right. By using that imutability feature, you guarantee the integrity of that data for whatever period you set. >>And it's a feature it's not a paid for service. Is that right? >>It is included as part of the service. >>Okay. So I don't >>Free beer and free meat. >>I think I'm correct that some, some competitors you're paying for that service. So if you turn it off, there's a, if you don't stop paying, there's a, there's a theory. They could turn it off on you. They will warn you. >>Sure. But >>That says to me that somebody could be tempted by a few Bitcoin. >>That's not a mutable. Well's >>Notable. I agree. Yeah. Yeah. Yeah. >>Well, and, and there is a charge to use it in other places because it's an API request. Right. It's an action. It's opening the fridge. >>It's like texting. Yes. Maybe a charge. >>Yeah. I remember. I remember those days. Was it 10 cents? A 10 cents a message or something Telegraph. >>Yeah. >>Yeah. >>Yeah. You still get those messages. Right? Text, text fees may apply. I'm like really? Okay. So tell me more about, so you got me. I'm sold. Okay. I've I've David friends got good job. Got cred, got credibility. Okay. But I have some other questions. Like where's my data. You guys running your own data centers. What's your global footprint. How do you deal with data sovereignty? All that stuff. >>So right now, oh boy. Now I'm on the spot. I wanna say 11 locations around the world. It's our gear. We're running it in concert with folks who are helping us host that system. Right. But we have complete control of course, over our systems. We're everywhere. Right? Just open, let's see. Toronto Frankfurt, Paris, London, Sydney just spun up in the last week. We've got Singapore coming online. I think in the next two weeks. Two >>In Japan. >>Yep. Two in Japan, multiple locations in the United States. So in terms of sovereignty, right, as long as folks are keeping it within, you know, their, their physical boundaries, not a problem. And if folks want to use, you know, other locations in other countries, great. We can support that as well. >>So you got momentum as a business. I mean, that's pretty clear. Yeah. Just from the discussions I've had with, with folks like David, and obviously you you're excited about this, where's it coming from? Is it really that, that price factor that's driving people to you? Is it Dustin said simplicity. I mean, where are you seeing the momentum geographies? Where is it? Where's the action. >>I I'll say, you know, from my point of view, it's, it's been a combination of all that, right? It, it's simple. It's easy to use a, like a user can, any user who's not cloud friendly, right. Can log in and create one. It's a simple portal to create a bucket and then start sending stuff off site. But also they've, they've kind of, they reminded me of a younger Veeam, like when they first started, because they went after the channel and they went and started these partner programs and, and MSP programs and things like that that have been really successful as far as one of the key markets is MSPs. Right? Because they, you know, want a cheap place to put this data. They don't wanna have to buy appliances. They don't wanna have to go to AWS and things like that. So this has been really appealing to >>Them. You know, it's interesting. So I have a, we have a partnership with a data company down in New York called enterprise technology research. We write a breaking analysis every week and we use a lot of their data. One of the things that popped up recently, maybe a year ago, OpenStack I'm like OpenStack. So we dug in like where's OpenStack and what it was was MSPs didn't want pay the VTax. Right. So they were rolling their own with, with open source and open stack. It was red hat services, blah, blah, blah. But it sounds like a similar dynamic, especially with the MSPs. >>I, so I think we've, I, I hate to use the, the metaphor, but I will. Right. There's a perfect storm happening, right. Especially in the last, what, two years. All right. The cloud has been gaining traction, but we've been around long enough to see the pendulum swinging. Right. Some folks went crazy for the cloud and then they got their bill and then they went crazy to get back out of the cloud. But now, you know, with distributed workforces, with the, you know, the, the constant attacks on their, their on-prem systems, right. The growth in cloud across the board has been phenomenal. I know you're a market watcher. Right. I know you guys are keeping close eyes. I saw your recent analysis on the cybersecurity firms. Right. It continues to grow. There's no question about it. We're we're on that wave. Right. And I think we've, you know, we're not, we're, we're, I don't know if it's the long board or the short little snappy board. Yes. We actually identify and, and, and went after the opportunity to partner with Veeam very early on, because it's the perfect work case work, work load. >>How long can you sustain that? And still resist the temptation to come out with some new shiny object to distract people? >>I >>Mean, what, what, what does that, what does that look like in terms of, as you look out in this laser focused yeah. Addressable market that you're going after now. >>So, you know, the best part about being here this week is having great conversations and, and talking to folks about what they're seeing in the marketplace and the different verticals. I don't think we've even scratched the surface of any of the verticals that we are working in today. Right. First and foremost, when it comes to backup and recovery, there's so much more opportunity with Veeam, right? Whether it's healthcare, manufacturing, logistics, analytics, backup of IML, you know, analysis, I think it's almost limitless, right. Data's growing what, 40, 80% year, over year, depending on who you ask. Right. Then the other things that we do, which maybe folks don't even know about, we have a burgeoning business in video surveillance, right. We're working with all the top partners in that sector. And the takeup is phenomenal because they are tweaking their technology to maintain a relatively small cash, right. OnPrem or in the central office. And then they're just kind of, you know, tearing that off to the cloud to have essentially a bottomless backup or archive of that footage. And they can do it at 4k. Here's the best part, right. When AK comes out, guess what, you know, that data set doubles in size. >>Right. But that's right in your zone. That's not stepping out that that's not stepping after that's that's classic leveraging. Good >>Answer. In other words. Yeah. Yeah. Thank you. >>I mean, if >>You're, if you're, if you're hitting singles and doubles all day long, right. Do you have to switch to be a power hitter and go for the fences and drop your batting average down, but hope that your slugging percentage goes up. I think you keep hitting singles doubles, you know, in triples, >>A lot of people on Sandhill road or, you know, at the bar at the Rosewood would disagree with you. Wow. And so I, I appreciate the discipline. >>Yeah. And it's true. And, and as we know, the industry is littered with a lot of those names that just didn't didn't make it >>Let's stay positive, you know? >>Okay. No he's saying yeah, no, no. A lot of guys at sand hill road would say, no, you gotta go for it. Yeah. You gotta, you gotta forget these singles. We want, >>Yeah. We need home runs gotta be >>Shiny. Well, I mean, look at Vema as a, as a, as an example right. Of a disciplined approach. Right. Exactly. To, to a space that they have steadily grown. I mean, congratulations. Right. You guys have been identified by IDC, right. Is essentially, you know, co number ones. And I expect that to be the number one in the market. Right. I think, you know, David friend clearly has provided excellent guidance, right. To steer the company that way. And I'm just really happy >>To be about that. Oh. And the Tam is data. Right. And you're, you're just another node on the data universe. Right. Which is, that's what you want. You want, you don't necessarily wanna move it around. Yeah. If you don't have to. >>It is interesting though. I mean, we, we are seeing more and more analysts identifying with Sabi as like the fourth player. Yeah. Which is pretty cool. Right. And I also heard it from some good sources this week that let's say one of the hyperscalers has, you know, started to yeah. Have conversations about us. Let's just >>Leave it. That's good. It means you're bothering people. Yeah. Said, all right, guys, we gotta go. Thanks so much for coming on the queue. Thank you. Great to have you. That was easy. Thank you. Appreciate it. Very welcome. All right. Keep it right there. We'll be back to wrap up day one from VMO in 2022, right back.

>>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.

(upbeat music) >> We're back at the ARIA in Las Vegas you're watching theCUBE's coverage of Veeamon 2022 live in person, but there's a big hybrid event going on. Close to 40,000 people watching online. This is the CEO segment. The newly minted CEO Anand Eswaran is here. And it's great to see you. Thanks for coming on. First time on theCUBE. >> Yeah, first time on theCUBE, excited to be here. Newly minted, those words, I haven't heard those for a long time. But thank you for the warm introduction, Dave. >> So why Veeam? What did you see that attracted you to Veeam? You have a great career, awesome resume. Why Veeam? >> A lot of different things. You know, it started with when I spent a good bit of time... I spent months with, you know, Insight, with Bill Largent who is now the chair of the board. And for me a few things, one, it started with the company culture. I absolutely loved... I spent time with our engineering team that it's an innovation-focused culture. It's an engineering-focused culture, which is so critical to any software company. And so that was the first place. And I spent a good bit of time with customers, reading, research, you know, brilliant products, always innovating. You know, even though it's a category you would think is fairly mature. I mean, when Veeam for example, did instant recovery. I mean, that was extreme innovation. And so that was the first thing which was appealing. The second thing was, you know, yes, we've reached a billion, but it still has that, you know, feel of a start up. It still has that feel of a... Jeff Bezos says this best, "A day one culture." Which is super critical, you know, we scale but you don't want to lose your soul and what made you special in the first place. And then you come down to the rest of the stuff, it's an execution machine. You know, it's an absolutely interesting category, especially in the day and the world we live in right now. You know, the proliferation of bad actors, security, backup, recovery, you know, everything you... Ransomware is starting to become you know, a meaningful threat to every company. So many different things coming together. This category is an interesting place. But that's not all, I feel that we are going to see this category evolve and shape very differently. You're going to see adjacencies coming and you're going to see in a couple of years or three years you're not going to just look at this and say, "Hey, it's backup and recovery." And so it's an opportunity to shape what is going to be a very important inflection point in this whole space. So a whole bunch of things. Excited about it. >> So flip question, why Anand? What did Insight see and the board see? What do you see as your key skills that they wanted here? Go after that opportunity- >> You should also get insight on this man. And you should ask them this question. I know Peter and Sokolov (laughs) >> So, you know, I don't know... I'll tell you where I think there's relevant experience is if I look at the future of Veeam. I think the first thing is we've got to think through what the next evolution of Veeam is. You know, there's a ton of work to do even in the path we are on, on data protection. And the team is absolutely brilliant at that. But how do you start to think ahead? How do you think about data management? How do you think about, you know, where are the adjacencies and how does it... How do you shape and reshape the category? You know, and I have some experiences in that. As I look at growth, Veeam has done a phenomenal job you know, 35,000 partners, an execution machine. I mean, just last year we grew ARR, you know, 27% we are sustaining that growth. But as I look ahead, you know there's huge opportunities to further accelerate our share in the enterprise to actually go work with creating multiple layers of partnerships beyond the very successful partnerships we already have. You know, how do you start to get GSIs in the mix? How do you start to get MSPs in the mix? How do you start to actually get to being a core part of the portfolio and platform of our primary storage partners, HPE, Pure Storage and so on. So reinvigorating and creating a multidimensional partnership strategy is key as well. And then just my experience in, you know I ran the enterprise for Microsoft and so those sort of experiences sort of are very relevant to our next step of the journey as well. And finally, you know I think the one thing which matters most for me and yeah, you realize... Again, I think we've forgotten what it means to have a microphone on. But culture, you know, I spent a lot of time in every company I've worked in, in contributing to the culture of what shapes and you know how do you create a purpose-led company and how do you get on that path? Which is a very, very important conversation inside Veeam. you know, and we already do that... You know, there's a huge focus on purpose. There's a huge focus on diversity. There's a huge focus on inclusion, but you know, the cultural aspect of Veeam attracted me to it. And I think my work and my passion for it attracted me to Veeam as well. So just a few of those things. >> Yeah, you speak from the heart, you can sense that. Dave and I were talking with Zias about platform versus product. Now you've got some experience with platforms, obviously, Microsoft, you know the amazing platform. RingCentral Zias brought up. And then I brought up HP, which actually never could figure out its software platform. So you've seen some successes. You've seen some, you know, couldn't ever get there. Do you see Veeam as a platform company? >> You know, the way I look at it is this. I mean, I may actually not answer your question directly but I'll answer the question. >> Dave: Okay. >> Which is, if you look at the biggest successes in the industry, call it Microsoft, Adobe now- >> Dave: Sure. >> Salesforce, eventually the path from a high growth startup to scale is platform and partners. That is the key. >> Dave: Ecosystem- >> So yeah. Platform and the ecosystem. So it all comes together. And so, yes, I mean, I think we already do that. I mean, we have a singular platform today for the multiple workloads we protect from, you know physical to cloud, to Kubernetes to the hybrid architectures the ability to actually, you know restore your data into any cloud, you know, back up from AWS restore into Azure or a physical data center. So we already have a robust platform in place but the scale or the growth from where we are a billion to the next set of milestones 2, 3, 5, 10 is going to be an absolute maturity and amp of platform partnerships ecosystem. >> That's a high wire act. When you talk about platform and scaling, you know, think about moving forward, when you have pressure to grow, often the easiest thing to grow is to acquire and add adjacencies that might not be as core to your core value proposition as they could be. How do you navigate that as you move forward in a world where... Look, Veeam was founded in an age when it was all about meantime between failure, recovery point, recovery time objectives. Now the big concern is malicious actors. So Veeam has been able to navigate that transition very well so far, but how do you do that? How do you balance that moving forward? This idea of platform is a desirous state to be in but you don't want to be a fake platform where you just glue a bunch of things on. >> It all comes down to thinking through where we see the world going from this point in time. How do you see technology evolving? How do you see the outside's, you know influences evolving. And when I say influences, it's, you know, just a euphemism for all the bad actors we expect to see getting even more active. So, you know, the way I think about it is either platform or acquisitions are not things you do piecemeal or point in time. It all needs to accrue to a larger strategy of how you create the ability for all of your customers to own protect, secure, you know their data and eventually create intelligence from it so that they can actually be proactive about it. So that, you know, if that's the thing, you know, our ambition is starting to become how do we sort of secure the world's data and help companies create intelligence from it so they can be proactive about it? You know, everything else sort of accrues from there the platform we evolve from the platform we already have, you know, stems from it. The acquisitions we may do, will do evolves from it. It all are... You know, its pieces coming together to the overall puzzle framework we've already created. >> Yeah. I have so many questions for you. And I want to get into a little bit of your philosophy, but before we do it, I want touch on the TAM a little bit more. You mentioned in the analyst discussion this morning that the market's fragmented. A lot of people think, "Oh, backup, storage, we'll just put it together. You know, Dell now or EMC brought it all together." But they're just dramatically different markets. You're seeing some of your competitors. One in particular is now kind of pivoting to security. It's an adjacency, but it's, yeah, I'm not sure you want to walk into that mess but it's clearly part of a data protection strategy. And you said you want your... My words, legacy to be a significant increase in market share, dominant position in the market. Even if it's number two, whatever, number one's nice, great. But much larger share than what is your 10, 12% today. How do you think about the TAM? It's so undercounted, I think. You know, we used to look at purpose built backup appliances, "Oh, it's a couple billion dollar market and it's a ceiling there." It reminds me of service management with ServiceNow. It's virtually unlimited TAM because it's data. How do you look at the TAM? >> How much time do you have? >> I know, I got so many questions- >> But I'll tell you this, right? You got to piece this question very carefully because I'll look at it in a variety of different ways. Number one, if you do nothing, if you just do nothing. I mean, today, as I shared in IDCs latest report last week we were joined number one, you know, for the first time we actually got- >> Dave: Yeah. Congratulations. That's a big milestone. >> That's huge, that's exciting. >> Dave: And that's revenue by the way. That's not licenses- >> Yeah. That's in share. But the thing is this, right? If, if you look at share, we are at 12%, you know as is the... You know, so 12% is not representative of how I think about number one. When you look at a market with a clear winner you expect to see 40 to 60% market share. So doing nothing is an opportunity to actually continue the path we are on which is taking share from every one of the top five significantly and growing as fast as we are. I mean, we are going to be on a path to, you know doubling our market share in the next two to three years. So there's share to gain doing nothing. And this is... You know what? This is the first and the most simplest aspect of TAM. Now layer in other aspects of TAM but just still stay in data protection. You know, talk about every single SaaS workload coming on. I mean, I shared 270 million Teams' users right now monthly actives. The TAM, if you were able to secure every one of those Teams' users and protect the data, I mean that's close to 6 or $7 billion. It's not factored in into any of the TAM numbers you see right now. Gartner talked about 13. You know, others talked about TAM being 40. I mean, but SaaS workloads, you know each of them are not factored in as much as it could be right now. So, you know, we are bringing in Salesforce, Microsoft 365. We secure 11 million paid users with Microsoft 365 backup. And so add all of them on, execute. We see a path to taking share and getting from here 12 to 25 to 40 and being an outsize number one. And then you'd come down to what you said, which is how do you think about adjacencies? Now, at Veeam, yeah, messaging is important, but unlike some of the competitors, we don't use words frivolously. If we say something, data protection, modern data protection, ransomware attacks, we mean it. And there's product truth behind it. We do not use frivolous security words to create a message and get attention and have no product truth behind it. That's where we are. We expect to see adjacencies come up. We expect Veeam to beyond execution and bringing in more SaaS workloads to look at the next layer of data management. We expect us to create partnerships which allow us to go do that meaningfully. And as time goes, you should expect us to be the prime influencer in reshaping this category with other adjacencies coming in. But we talk about it and there's product truth behind it. >> I wanted to get into your philosophy of management a little bit. I went to your LinkedIn recently and I loved the little graphic that you had. But I know a lot of people put up a picture of a pretty lake or mountains. I got theCUBE up there. You had a number of items. I wonder if I could read. You had a rocket ship, which was very cool. You had teamwork, you had innovation. I wrote down ABC, always be closing, Alec Baldwin. But everybody sells, I think is what it was and then keep it simple. >> Anand: Yep. >> I really like that. I mean, people going to... If they're going to evaluate Veeam they're going to go to your LinkedIn page. So tell us where that came from what your philosophy is as a manager. >> Yeah, no. So there's a few things and this is the philosophies which I put on is a meld of what I believe in and what Veeam believes in and has believed in for a long time which is life starts with a customer. For us, everything starts with a customer. You know, even the product creation philosophy 15 years back was, "Hey let's not just create some check marks and create a feature because someone, you know thought it's an important check mark to have." What is the value it creates for the customer? And is it different enough, unique enough, where, you know, it actually creates a moment where the customer sees the value impact their core business. That's where it all starts for us at Veeam. And then everything we do relates back to, "Is this moving the ball enough for our customers and for our partners and for our developers and users?" Everything comes back to there. Are we easy enough to do business with? You know, are we keeping it simple? Simple to use. A product should be really simple. It should be brain dead simple, you know are our processes such that, you know it's easy for us to connect with our partners, connect with our customers, connect with our users, you know it all comes back to keeping it really simple. And then, you know, I come down to a set of personal philosophies, which matters as well, which is, you know, how do we make sure that, you know, we used to say everyone is in sales, but we got to evolve it. Everyone is in customer success because we all know that it's not just the first sale which matters which was true 15 years back, what matters today is, yeah, the sale matters, everybody is there to sell. But what matters even more is the whole company rallies behind the customer's success at every step along the way. Because when you do that, you don't need to sell. You know, you get in through BBR and then we have a world of workloads to actually create value for the customer with, from, you know Microsoft 365 backup or, you know soon to come Salesforce backup cost. And we see that on net retention or, you know... And it's manifested in numbers, right? It's manifested in growth. It's manifested in net retention and it's manifested in NPS. I mean, Dave, I'm hugely excited about that, man. NPS of 80 where we are. I mean, you guys have been around for quite a bit. I mean, that's huge numbers. I mean, that's- >> Apple's- >> Apple was 76 or 77. And so eventually that is what matters more for me because it's... Share is important. And I'm excited about, you know, IDC saying, "You're joint number one." Hugely important, but that is a consequence. Growth is important. 25% ARR growth in Q1, super important but that is a consequence. What really matters is value for your customers. And the number one metric I look at is NPS, you know and NPS at 80, all the other things start to happen pair it with the engineering culture the innovation culture we have, long roadmap ahead. >> Veeam has made some... What appear to be, from the outside anyway, pretty successful acquisitions. Kasten is an obvious one. I remember it wasn't the first time I met Ratmir. It was maybe the third or fourth time we were at like a late night, Peter Bell party this Highland Capital at VMware. And we were walking down Howard Street. I see Ratmir and some of his colleagues, we start chatting. We, you know, got into a good conversation. I'm like, "What about an IPO?" He goes, "We're not doing an IPO. We don't need to do an IPO." And then several years later on theCUBE, he's like, "No, I'd be open to an IPO." And then of course the big acquisition happened. So you've got an opportunity here M and A obviously is a possibility. But what about the IPO in your future? Presumably, that's something Insight wants to do. What can you tell us about that? >> No, it's a great question. I was waiting when you were going to ask me that question. But this is what I would say which is, by the way, Veeam, at today's numbers, I mean, we shared numbers at the end of last year. 1.1 billion in ARR, 1.2 in revenues, 99.99% organic, right? You know, Kasten was the only acquisition we shared how Kasten is a blip at this point in time. And so the philosophy has always been organic. And as I look ahead, this is how I think about it. I think the pace of market change is going to be extreme. And so we will be a lot more open-minded, thinking about acquisitions for complimentary technologies which allow us to expand TAM and think about adjacencies, more to come there. IPO, see the good thing is this, a lot of companies want to enter the public markets to raise money, create liquidity. That's not the primary lens for us. And so the good news is that, you know we are incredibly profitable. We shared, you know, 30% EBITDA, you know, for 2021. So money is not the issue, but we do think that we entering the public markets is a good thing for a variety of other reasons, because when you are public and it comes with the, you know, transparency, which we believe we're already transparent. But it puts the focus on you. And that creates even better growth impetus. Especially as you go work with large enterprise customers they are a lot more amenable and you know and so we feel that it's a strategy of growth not a strategy of liquidity for us, but stay tuned. You know, I fully expect for something like that to happen sometime towards the middle of next year, to the end of next year. >> Yeah, we had a similar conversation with Frank Slootman they obviously were able to raise money. But wow, what a change since the snowflake IPO in terms of just the brand value. And again, so many questions. I thought your keynote was great, by the way. >> Anand: Thank you. I love the focus on, you know, ransomware, of course. I thought the bot jokes were great. Keep 'em coming. I mean, I really did enjoy- >> (laughs) Absolutely. >> It lightens things up. So thanks so much for coming on theCUBE, really appreciate your time. >> Absolutely appreciate it, Dave and Dave. By the way, I mean, it's funny, I mean about, you know, Dave and Dave, Dave and David reminded me of Thompson and Thompson, guess which comic book they're from? >> Thompson and Thompson- >> Thompson and Thompson. I don't know. >> Don't know. >> Tin Tin. >> Oh (laughs). >> (laughs) So you got to go read up. You guys don't look anything like that, but Dave and Dave, was an absolute pleasure. My first theCUBE and look forward to many more to come. >> Love to have you back- >> Absolutely. >> All right. Thank you for watching. >> Thank you. >> Keep it right there. TheCUBE's coverage of Veeamon 2022, 2 days of wall to wall coverage here at the ARIA in Las Vegas, we'll be right back. (upbeat music)

(digital pulsing music) >> We're back at VeeamON 2022. My name is Dave Vellante. I'm here with my co-host David Nicholson. I've got another mass boy coming on. Patrick Osborne is the vice president of the storage business unit at HPE. Good to see you again, my friend. It's been a long time. >> It's been way too long, thank you very much for having me. >> I can't even remember the last time we saw each other. It might have been in our studios in the East Coast. Well, it's good to be here with you. Lots have been going on, of course, we've been following from afar, but give us the update, what's new with HPE? We've done some stuff on GreenLake, we've covered that pretty extensively and looks like you got some momentum there. >> Quite a bit of momentum, both on the technology front and certainly the customer acquisition front. The message is certainly resonating with our customers. GreenLake is, that's the transformation that's fueling the future of Hewlett Packard Enterprise. So the momentum is great on the technology side. We're at well over 50 services that we're providing on the GreenLake platform. Everything from solutions and workloads to compute, networking and storage. So it's been really fantastic to see the platform and being able to really delight the customers and then the momentum on the sales and the customer acquisition side, the customers are voting with their dollars, so they're very happy with the platform, certainly from an operational perspective and a financial consumption perspective and so our target goal, which we've said a bunch of times is we want to be the hyperscaler on on-prem. We want to provide that customer experience to the folks that are investing in the platform. It's going really well. >> I'll ask you a question, as a former analyst, it could be obnoxious and so forth, so I'll be obnoxious for a minute. I wrote a piece in 2010 called At Your Storage Service, saying the future of storage and infrastructure as a service, blah, blah, blah. Now, of course, you don't want to over-rotate when there's no market, there was no market for GreenLake in 2010. Do you feel like your timing was right on, a little bit late, little bit early? Looking back now, how do you feel about that? >> Well, it's funny you say that. On the timing side, we've seen iterations of this stops and start forever. >> That's true. Financial gimmicks. >> I started my career at Sun Microsystems. We talked about the big freaking Web-tone switch and a lot of the network is the computer. You saw storage networks, you've seen a lot, a ton of iterations in this category, and so, I think the timing's right right now. Obviously, the folks in the hyperscaler class have proved out that this is something that's working. I think for us, the big thing that's really resonating with the customers is they want the operational model and they want the consumption model that they're getting from that as a service experience, but they still are going to run a number of their workloads on-prem and that's the best place to do it for them economically and we've proved that out. So I think the time is here to have that bifurcated experience from operational and financial perspective and in the past, the technology wasn't there and the ability to deliver that for the customers in a manner that was useful wasn't there. So I think the timing's perfect right now to provide them. >> As you know, theCUBE has had a presence at HPE Discover. Previous, even HP Discover and same with Veeam. But we got a long history with HP/HPE. When Hewlett Packard split into two companies, we made the observation, Wow, this opens up a whole new ecosystem opportunity for HPE generally, in storage business specifically, especially in data protection and backup, and the Veeam relationship, the ink wasn't dry and all of a sudden you guys were partnering, throwing joint activities, and so talk about how that relationship has evolved. >> From my perspective, we've always been a big partnering company, both on the route to market side, so our distributors and partners, and we work with them in big channel business. And then on the software partnership side, that's always evolving and growing. We're a very open ecosystem and we like to provide choice for our customers and I think, at the end of the day, we've got a lot of things that we work on jointly, so we have a great value prop. First phase of that relationship was partnering, we've got a full boat of product integrations that we do for customers. The second was a lot of special sauce that we do for our customers for co-integration and co-development. We had a huge session today with Rick Vanover and Frederico on our team here to talk about ransomware. We have big customers suffering from this plague right now and we've done a lot together on the engineering side to provide a very, very well-engineered, well thought out process to help avoid some of these things. And so that wave, too, of how do we do a ton of co-innovation together to really delight our customers and help them run their businesses, and I think the evolution of where we're going now, we have a lot of things that are very similar, strategically, in terms of, we all talk about data services and outcomes for our customers. So at the end of the day, when we think about GreenLake, like our virtual machine backup as a service or disaster recovery, it's all about what workloads are you running, what are the most important ones, where do you need help protecting that data? And essentially, how can we provide that outcome to you and you pay it as an outcome. And so we have a lot of things that we're working on together in that space. >> Let's take a little bit of a closer look at that. First of all, I'm from California, so I'm having a really hard time understanding what either of you were saying. Your accents are so thick. >> We could talk in Boston. >> Your accents are so thick. (Dave laughing) I could barely, but I know I heard you say something about Veaam at one point. Take a closer look at that. What does that look like from a ransomware perspective in terms of this concept of air gaping or immutable, immutable volumes and just as an aside, it seems like Veeam is a perfect partnership for you since customers obviously are going to be in hybrid mode for a long time and Veeam overlays that nicely. But what does it look like specifically? Immutable, air gap, some of the things we've been hearing a lot about. >> I'm exec sponsor for a number of big HPE customers and I'll give you an example. One of our customers, they have their own cloud service for time management and essentially they're exploited and they're not able to provide their service. It has huge ripple effect, if you think about, on inability to do their service and then how that affects their customers and their customers' employees and all that. It's a disaster, no pun intended. And the thing is, we learn from that and we can put together a really good architectures and best practices. So we're talking today about 3-2-1-1, so having three copies of your data, two different types of media, having an offline copy, an offsite copy and an offline copy. And now we're thinking about all the things you need to do to mitigate against all the different ways that people are going to exploit you. We've seen it all. You have keys that are erased, primary storage that is compromised and encrypted, people that come in and delete your backup catalog, they delete your backups, they delete your snapshots. So they get it down to essentially, "I'm either going to have one set of data, it's encrypted, I'm going to make you pay for it," and 40 percent of the time they pay and they get the data back, 60 percent of the time they pay and they get maybe some of the data back. But for the most part, you're not getting your data back. The best thing that we can do for our customers that come with a very prescriptive set of T-shirt configuration sizes, standardization, best practices on how they can take this entire ecosystem together and make it really easy for the customers to implement. But I wouldn't say, it's never bulletproof, but essentially, do as much as you can to avoid having to pay that ransomware. >> So 3-2-1-1, three copies, meaning local. >> Patrick: Yeah. >> So you can do fast recovery if you need to. Two different types of media, so tape fits in here? Not necessarily flashing and spinning disks. Could it be tape? >> A lot of times we have customers that have almost four different types. So they are running their production on flash. We have Alletras with HPE networking and servers running specific workloads, high performance. We have secondary storage on-prem for fast recovery and then we have some form of offsite and offline. Offsite could be object storage in the cloud and then offline would be an actual tape backup. The tape is out of the tape library in a vault so no one can actually access it through the network and so it's a physical copy that's offline. So you always have something to restore. >> Patrick, where's the momentum today, specifically, we're at VeeamON, but with regard to the Veeam partnership, is it security and ransomware, which is a new thing for this world. The last two years, it's really come to the top. Is it cloud migration? Is it data services and data management? Where's the momentum, all of the above, but maybe you could help us parse that. >> What we're seeing here at Hewlett Packard Enterprise, especially through GreenLake, is just an overall focus on data services. So what we're doing is we've got great platforms, we always had. HPE is known as an engineering company. We have fantastic products and solutions that customers love. What we're doing right now is taking, essentially, a lot of the beauty of those products and elevating them into an operational experience in the cloud, so you have a set of platforms that you want to run, you have machine critical platform, business critical, secondary storage, archival, data analytics and I want to be able to manage those from the cloud. So fleet management, HCI management, protocol management, block service, what have you, and then I want a set of abstracted data services that are on top of it and that's essentially things like disaster recovery, backup, data immutability, data vision, understanding what kind of data you have, and so we'll be able to provide those services that are essentially abstracted from the platforms themselves that run across multiple types of platforms. We can charge them on outcome based. They're based on consumption, so you think about something like DR, you have a small set of VMs that you want to protect with a very tight RPO, you can pay for those 100 VMs that are the most important that you have. So for us driving that operational experience and then the cloud data service experience into GreenLake gives customers a really, gives them a cloud experience. >> So have you heard the term super cloud? >> Patrick: Yeah. (chuckles) >> Have you? >> Patrick: Absolutely. >> It's term that we kind of coined, but I want to ask you about it specifically, in terms of how it fits into your strategy. So the idea is, and you kind of just described it, I think, whether your data is on-prem, it's in the cloud, multiple clouds, we'll talk about the edge later, but you're hiding the underlying complexities of the cloud's APIs and primitives, you're taking care of that for your customers, irrespective of physical location. It's the common experience across all those platforms. Is that a reasonable vision, maybe, even from a technical standpoint, is it part of HPE strategy and what does it take to actually do that, 'cause it sounds nice, but it's probably pretty intense? >> So the proof's in the pudding for us. We have a number of platforms that are providing, whether it's compute or networking or storage, running those workloads that they plum up into the cloud, they have an operational experience in the cloud and now they have data services that are running in the cloud for us in GreenLake. So it's a reality. We have a number of platforms that support that. We're going to have a set of big announcements coming up at HPE Discover. So we led with Alletra and we have a block service, we have VM backup as a service and DR On top of that. That's something that we're providing today. GreenLake has over, I think, it's actually over 60 services right now that we're providing in the GreenLake platform itself. Everything from security, single sign on, customer IDs, everything, so it's real. We have the proof point for it. >> So, GreenLake is essentially, I've said it, it's the HPE cloud. Is that a fair statement? >> A hundred percent. >> You're redefining cloud. And one of the hallmarks of cloud is ecosystem. Roughly, and I want to talk more about you got to grow that ecosystem to be successful in cloud, no question about it. And HPE's got the chops to do that. What percent of those services are HPE versus ecosystem partners and how do you see that evolving over time? >> We have a good number of services that are based on HPE, our tried and true intellectual property. >> You got good tech. >> Absolutely, so a number of that. And then we have partners in GreenLake today. We have a pretty big ecosystem and it's evolving, too. So we have customers and partners that are focused, our customers want our focus on data services. We have a number of opportunities and partnerships around data analytics. As you know, that's a really dynamic space. A lot of folks providing support on open source, analytics and that's a fast moving ecosystem, so we want to support that. We've seen a lot of interest in security. Being able to bring in security companies that are focused on data security. Data analytics to understand what's in your data from a customer perspective, how to secure that. So we have a pretty big ecosystem there. Just like our path at HPE, we've always had a really strong partnership with tons of software companies and we're going to continue to do that with GreenLake. >> You guys have been partner-friendly, I'll give you that. I'm going to ask Antonio this at Discover in a couple of weeks, but I want to ask you, when you think about, again, to go back to AWS as the prototypical cloud, you look at a Snowflake and a Redshift. The Redshift guys probably hate Snowflake, but the EC2 guys love them, sell a lot of compute. Now you as a business unit manager, do you ever see the day where you're side by side with one of your competitors? I'm guessing Antonio would say absolutely. Culturally, how does that play inside of HPE? I'm testing your partner-friendliness. How would you- >> Who will you- >> How do you think about that? >> At the end of the day, for us, the opportunity for us is to delight our customers. So we've always talked about customer choice and how to provide that best outcome. I think the big thing for us is that, from a cost perspective, we've seen a lot of customers coming back to HPE repatriation, from a repatriation perspective for a certain class of workloads. From my perspective, we're providing the best infrastructure and the best operational services at the best price at scale for these costumers. >> Really? It definitely, culturally, HPE has to, I think you would agree, it has to open up. You might not, you're going to go compete, based on the merit- >> Absolutely. >> of your product and technology. The repatriation thing is interesting. 'Cause I've always been a repatriation skeptic. Are you actually starting to see that in a meaningful way? Do you think you'll see it in the macro numbers? I mean, cloud doesn't seem to be slowing down, the public cloud growth, I mean, the 35, 40 percent a year. >> We're seeing it in our numbers. We're seeing it in the new logo and existing customer acquisition within GreenLake. So it's real for us. >> And they're telling you? Pure cost? >> Cost. >> So it's that's simple. >> Cost. >> So, they get the cloud bill, you do, too. I'd get the email from my CFO, "Why the cloud bill so high this month?" Part of that is it's consumption-based and it's not predictable. >> And also, too, one of the things that you said around unlocking a lot of the customer's ability from a resourcing perspective, so if we can take care of all the stuff underneath, the under cloud for the customer, the platform, so the stores, the serving, the networking, the automation, the provisioning, the health. As you guys know, we have hundreds of thousands of customers on the Aruba platform. We've got hundreds of thousands of customers calling home through InfoSight. So we can provide a very rich set of analytics, automated environment, automated health checking, and a very good experience that's going to help them move away from managing boxes to doing operational services with GreenLake. >> We talk about repatriation often. There was a time when I think a lot of us would've agreed that no one who was born in the cloud will ever do anything other than grow in the cloud. Are you seeing organizations that were born in the cloud realizing, "Hey, we know what our 80 percent steady state is and we've modeled this. Why rent it when we can own it? Or why rent it here when we can have it as operational cost there?" Are you seeing those? >> We're seeing some of that. We're certainly seeing folks that have a big part of their native or their digital business. It's a cost factor and so I think, one of the other areas, too, that we're seeing is there's a big transformation going on for our partners as well, too, on the sell-through side. So you're starting to see more niche SaaS offerings. You're starting to see more vertically focused offerings from our service provider partners or MSPs. So it's not just in either-or type of situation. You're starting to see now some really, really specific things going on in either verticals, customer segmentation, specific SaaS or data services and for us, it's a really good ecosystem, because we work with our SP partners, our MSP partners, they use our tech, they use our services, they provide services to our joint customers. For example, I know you guys have talked to iland here in the past. It's a great example for us for customers that are looking for DR as a service, backup as a service hosting, so it's a nice triangle for us to be able to please those customers. >> They're coming on to tomorrow. They're on 11/11. I think you're right on. The one, I think, obvious place where this repatriation could happen, it's the Sarah Wong and Martin Casano scenario where a SaaS companies cost a good sold become dominated by cloud costs. And they say, "Okay, well, maybe, I'm not going to build my own data centers. That's probably not going to happen, but I can go to Equinix and do a colo and I'm going to save a ton of dough, managing my own infrastructure with automation or outsourcing it." So Patrick, got to go. I could talk with you forever. Thank you so much for coming back in theCUBE. >> Always a pleasure. >> Go, Celts. How you feeling about the, we always talk sports here in VeeamON. How are you feeling about the Celts today? >> My original call today was Celtics in six, but we'll see what happens. >> Stephen, you like Celtics? Celtics six. >> Stephen: Celtics six. >> Even though tonight, they got a little- >> Stephen: Still believe, you got to believe. >> All right, I believe. >> It'd be better than the Miami's Mickey Mouse run there, in the bubble, a lot of astronauts attached to that. (Dave laughing) >> I love it. You got to believe here on theCUBE. All right, keep it right- >> I don't care. >> Keep it right there. You don't care, 'cause you're not from a sports town. Where are you in California? >> We have no sports. >> All right, keep it right there. This is theCUBE's coverage of VeeamON 2022. Dave Vellante for Dave Nicholson. We'll be right back. (digital music)