>>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.

>>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.

>>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.

>>Hello, everybody. Welcome to Von 2022, the live version. Yes, we're finally back live. Last time we did Von was 2019 live. Of course we did two subsequent years, uh, virtual. My name is Dave Valante and we've got two days of wall to wall coverage of VEON. As usual Veeam has brought together a number of customers, but it's really doing something different this year. Like many, uh, companies that you see, they have a big hybrid event. It's close to 40,000 people online and that's sort of driving the actual program where the content is actually different for the, the, the virtual viewers versus the onsite onsite. There's the, the V I P event going on, they got the keynotes. VM is a company who's a ancy occurred during the, the VMware rise. They brought in a new way of doing data protection. They didn't use agents. They, they protected at the hypervisor level. >>That changed the way that people did things. They're now doing it again in cloud, in SAS, in containers and ransomware. And so we're gonna dig into that. My cohost is Dave Nicholson this week, and we've got a special guest Zs Carava who is the principal at ZK research. He's an extraordinary analyst Zs. Great to see you, David. Thanks for coming out. Absolutely good to see you Beon. Great to be here. Yeah, we've done. Von act, live things have changed so dramatically. Uh, I mean the focus ransomware, it's now a whole new Tam, uh, the adjacency to security data protection. It's just a Zs. It's a whole new ballgame, isn't it? >>Well, it is. And, and in fact, um, during the keynote, they, they mentioned that they've, they're now tied at number one in, for, you know, back of a recovery, which is, I think it's safe to say Veeam. Does that really well? >>I think from a that's tied with Dell. Yes. Right. They didn't, I don't think they met Dell as >>Keto. And, uh, but I, you know, they've been rising Dell, EMC's been falling. And so I think >>It's somebody said 10 points that Dell lost and sharing the I data. >>It's not a big surprise. I mean, they haven't really invested a whole lot, >>I think anyway, >>Anyways, but I think from a Veeam perspective, the question is now that they've kind of hit that number one spot or close to it, what do they do next? This company, they mentioned, I was talking the CTO yesterday. You mentioned they're holding X bite of customer data. That is a lot of data. Right. And so they, they do back recovery really well. They do it arguably better than anybody. And so how do they take that data and then move into other adjacent markets to go create, not just a back recovery company, but a true data management platform company that has relevancy in cyber and analytics and artificial intelligence and data warehousing. Right? All those other areas I think are, are really open territory for this company right now. >>You know, Dave, you were a CTO at, at EMC when you, when you saw a lot of the acquisitions that the company made, uh, you, you know, they really never had a singular focus on data protection. They had a big data protection business, but that's the differentiator with Veeam. That's all it does. And you see that shine through from a, from a CTO's perspective. How do you see this market changing, evolving? And what's your sense as to how Vema is doing here? >>I think a lot of it's being driven by kind of, uh, unfortunately evil genius, uh, out in the market space. Yeah. I know we're gonna be hearing a lot about ransomware, uh, a lot about some concepts that we didn't really talk about outside of maybe the defense industry, air gaping, logical air gaping, um, Zs, you mentioned, you know, this, this, this question of what do you do when you have so many petabytes of data under management exabytes now exabytes, I'm sorry. Yeah, I see there I'm I'm already falling behind. One thing you could do is you could encrypt it all and then ask for Bitcoin in exchange for access to that data. >>Yes. That is what happens a >>Lot of them. So we're, we're getting, we're getting so much of the evil genius stuff headed our way. You start, you start thinking in those ways, but yet to, to your point, uh, dedicated backup products, don't address the scale and scope and variety of threats, not just from operational, uh, uh, you know, mishaps, uh, but now from so many bad actors coming in from the outside, it it's a whole new world. >>See us as analysts. We get inundated with ransomware solutions. Everybody's talking about it across the spectrum. The thing that interested me about what's happening here at VEON is they're, they're sort of trotting out this study that they do Veeam does some serious research, you know, thousands of customers that got hit by ransomware that they dug into. And then a, a larger study of all companies, many of whom didn't realize or said they hadn't been hit by ransomware, but they're really trying to inject thought leadership into the equation. You saw some of that in the analyst session this morning, it's now public. Uh, so we could talk about it. What were your thoughts on that data? >>Yeah, that was, uh, really fascinating data cuz it shows the ransomware industry, the response to it is largely reactive, right? We wait to get breach. We wait to, to uh, to get held at ransom I suppose. And then we, a lot of companies paid out. In fact, I thought there's one hospital in Florida, they're buying lots and lots of Bitcoin simply to pay out ransomware attacks. They didn't even really argue with them. They just pay it out. And I think Veeam's trying to change that mentality a little bit. You know, if you have the right strategy in place to be more preventative, you can do that. You can protect your data and then restore it right when you want to. So you don't have to be in that big bucket of companies that frankly pay and actually don't get their data back. Right. >>And like a third, I think roughly >>It's shocking amount of companies that get hit by that. And for a lot of companies, that's the end of their business. >>You know, a lot of the recovery process is manual is again a technologist. You understand that that's not the ideal way to go. In fact, it's probably a, a way to fail. >>Well, recovery's always the problem when I was in corporate, it used to joke that we were the best at backup, terrible at recovery. Well, you know, that's not atypical. >>My Fred Fred Moore, who was the vice president of strategy at a company called storage tech storage technology, corpor of storage tech. He had a great, uh, saying, he said, backup is one thing. Recovery is everything. And he started, he said that 30 years ago, but, but orchestration and automating that orchestration is, is really vital. We saw in the study, a lot of organizations are using scripts and scripts are fragile here they break. Right? >>Yeah, no, absolutely. Absolutely. Um, unfortunately the idea of the red run book on the shelf is still with us. Uh, uh, you know, scripting does not equal automation necessarily in every case, there's still gonna be a lot of manual steps in the process. Um, but you know, what I hope we get to talk about during the next couple of days is, you know, some of the factors that go into this, we've got day zero exploits that have already been uncovered that are stockpiled, uh, and tucked away. And it's inevitable that they're gonna hit. Yeah. So whether it's a manual recovery process or some level of automation, um, if you don't have something that is air gapped and cut off from the rest of the world in a physical or logical way, you can't guarantee >>That the, the problem with manual processes and scripting is even if you can set it up today, the environment changes so fast, right? With shadow it and business units buying their own services and users storing things and you know, wherever, um, you, you can't keep up with scripts in manual. Automation must be the way and I've been, and I don't care what part of it. You work in, whether it's this area in networking, communications, whatever automation must be the way I think prior to the pandemic, I saw a lot of resistance from it pros in the area of mission. Since the pandemic, I've seen a lot of warming up to it because I think it pros, I just realized they can't do their job without it. So, so you >>Don't, you don't think that edge devices, uh, lend themselves to manual >>Recovery, no process. In fact, I think that's one of the things they didn't talk about. What's that is, is edge. Edge is gonna be huge. More, every retailer, I talk to oil and gas, company's been using it for a long time. I've, you know, manufacturing organizations are looking at edge as a way to put more data in more places to improve experiences. Cuz you're moving the data closer, but we're creating a world where the fragmentation of data, you think it's bad now just wait a couple of years until the edge is a little more, you know, uh, to life here. And I think you ain't see nothing yet. This is this world of data. Everywhere is truly becoming that. And the thing with edge is there's no one definition, edge, you got IOT edge cellular edge, campus edge, right? Um, you know, you look at hotels, they have their own edge. I talked to major league baseball, right? They have every, stadium's got its own edge server in it. So we're moving into a world. We're putting more data in more places it's more fragmented than ever. And we need better ways of managing Of securing that data. But then also being able to recover for when >>Things happen. I was having that Danny Allen, he used the term that we coined called super cloud. He used that in the analyst meeting today. And, and that's a metaphor for this new layer of cloud. That's developing to your point, whether it's on-prem in a hybrid across clouds, not just running on the cloud, but actually abstracting away the complexity of the underlying primitives and APIs. And then eventually to your point, going out to the edge, I don't know if anyone who has an aggressive edge strategy Veeam to its credit, you know, has gone well beyond just virtualization and gone to bare metal into cloud. They were the containers. There was first at SAS. They acquired Caston who was a partner of theirs and they tried to acquire them earlier, but there was some government things and you know, that whole thing that got cleaned up and now they've, they own Caston. And I think the edge is next. I mean, it's gotta be, there's gonna be so much data at the edge. I guess the question is where is it today? How much of that is actually persisted? How much goes back to the cloud? I don't think people really have a good answer for that yet. >>No. In fact, a lot of edge services will be very ephemeral in nature. So it's not like with cloud where we'll take data and we'll store it there forever with the edge, we're gonna take data, we'll store it there for the time, point in time we need it. But I think one of the interesting things about Veeam is because they're decoupled from the airline hardware, they can run virtual machines and containers, porting Veeam to whatever platform you have next actually isn't all that difficult. Right? And so then if you need to be able to go back to a certain point in time, they can do that instantly. It's, it's a fascinating way to do backup. Are >>You you' point about it? I mean, you remember the signs up and down, you know, near the EMC facility, right outside of Southborough no hardware agenda that that was Jeremy Burton when he was running Verto of course they've got a little hardware agenda. So, but Veeam doesn't Veeam is, you know, they they're friendly with all the hardware players of pure play software, couple other stats on them. So they're a billion dollar company. They've now started to talk about their ARR growth. They grew, uh, 27% last year in, in, in annual recurring revenue, uh, 25%, uh, in the most recent quarter. And so they're in, in the vast majority of their business is subscription. I think they said, uh, 73% is now subscription based. So they really trans transitioned that business. The other thing about vem is they they've come up with a licensing model that's very friendly. >>Um, and they sort of removed that friction early on in the process. I remember talking to TIR about this. He said, we are gonna incent our partners and make it transparent to them, whether it's, you know, that when we shift from, you know, the, the, the, the crack of, of perpetual license to a subscription model, we're gonna make that transparent to partners. We'll take care of that. Essentially. They funded that transition. So that's worked very well. So they do stand out, I think from some of the larger companies at these big portfolios, although the big portfolio companies, you know, they get board level contacts and they can elbow their ways in your thoughts on that sort of selling dynamic. >>So navigating that transition to a subscription model is always fraught with danger. Everybody wants you to be there, but they want you to be there now. Mm-hmm <affirmative>, they don't like the transition that happens over 1824 months to get there. Um, >>As a private company, they're somewhat shielded from what they would've been if they were appli. Sure, >>Exactly. But, but that, but that bodes well from a, from a, a Veeam perspective. Um, the other interesting thing is that they sit where customers sit today in the real world, a hybrid world, not everything is in the cloud or a single cloud, uh, still a lot of on-prem things to take care of. And, >>And there will be for >>A long time exactly. Back to this idea. Yeah. There's a very long tail on that. So it's, it's, it's well enough to have a niche product that addresses a certain segment of the market, but to be able to go in and say all data everywhere, it doesn't matter where it lives. We have you covered. Um, that's a powerful message. And we were talking earlier. I think they, they stand a really good shot at taking market share, you know, on an ongoing basis. >>Yeah. The interesting thing about this market, Dave is they're, you know, although, you know, they're tied to number one with Dell now, they're, it's 12%, right? This reminds me of the security industry five, six years ago, where it's so fragmented. There's so many vendors, no one really stood out right. Then what happened in security? It's a little company called Palo Alto networks came around, they created a platform story. They moved into adjacent markets like SDWAN, they did a lot of smart acquisitions and they took off. I think vem is at that similar point where they've now, you know, that 12% number they've got some capital. Now they could go do some acquisitions that they want do. There's lots of adjacent markets as they talk about this company could be the Palo Alto of the data management market, if you know, and based on good execution. But there's certainly the opportunities there with all the data that they're holding. >>That's a really interesting point. I wanna stay that in a second. So there's obviously, there's, there's backup, there's recovery, there's data protection, there's ransomware protection, there's SAS data protection. And now all of a sudden you're seeing even a company like Rubrik is kind of repositioning as a security play. Yeah. Which I'm not sure that's the right move for a company that's really been focused on, on backup to really dive into that fragmented market. But it's clearly an adjacency and we heard Anan the new CEO today in the analyst segment, you know, we asked him, what's your kinda legacy gonna look like? And he said, I want to, I want to, defragment this market he's looking at. Yeah. He wants 25 to 45% of the market, which I think is really ambitious. I love that goal now to your point, agree, he, he sure. But that doubles yeah. >>From today or more, and he gets there to your point, possibly through acquisitions, they've made some really interesting tuck-ins with Castin. They certainly bought an AWS, uh, cloud play years ago. But my, my so, uh, Veeam was purchased by, uh, private equity inside capital inside capital in January of 2020, just before COVID for 5 billion. And at the time, then COVID hit right after you were like uhoh. And then of course the market took off so great acquisition by insight. But I think an IPO is in their future and that's, uh, Zs when they can start picking up some of these adjacent markets through every day. >>And I think one of the challenges for them is now that the Holden XAB bited data, they need to be able to tell customers things they, the customer doesn't know. Right. And that's where a lot of the work they're doing in artificial intelligence machine learning comes into play. Right. And, and nobody does that better than AWS, right? AWS is always looking at your data and telling you things you don't know, which makes you buy more. And so I think from a Veeam perspective, they need to now take all this, this huge asset they have and, and find a way to monetize it. And that's by revealing these key insights to customers that the customers don't even know they have. And >>They've got that monitor monitoring layer. Um, it's if you called it, Danny, didn't like to use the term, but he called it an AI. It's really machine learning that monitors. And then I think makes recommendations. I want to dig into that a little bit with it. >>Well, you can see the platform story starting to build here. Right. And >>Here's a really good point. Yeah. Because they really have been historically a point product company. This notion of super cloud is really a platform play. >>Right. And if you look in the software industry, look across any, any segment of the software industry, those companies that were niche that became big became platforms, Salesforce, SAP, Oracle. Right. And, and they find a way to allow others to build on their platform. You know, companies, they think like a Citrix, they never did that. Yeah. And they kind of taped, you know, petered out at a certain level of growth and had to, you know, change. They're still changing their business model, in fact. But I think that's Veeam's at that inflection point, right. They either build a platform story, enable others to do more on their platform or they stagnate >>HP software is another good example. They never were able to get that platform. And we're not able bunch of spoke with it, a non used to work there. Why is it so important Dave, to have a platform over a product? >>Well, cynical, Dave says, uh, you have a platform because it attracts investment and it makes you look cooler than maybe you really are. Um, but, uh, but really for longevity, you have, you, you, you have to be a platform. So what's >>The difference. How do you know when you have platform versus it? APIs? Is it, yeah. Brett, is it ecosystem? >>Some of it is. Some of it is semantics. Look at when, when I'm worried about my critical assets, my data, um, I think of a platform, a portfolio of point solutions for backing up edge data stuff. That's in the cloud stuff that exists in SAS. I see that holistically. And I think guys, you're doing enough. This is good. Don't, don't dilute your efforts. Just keep focusing on making sure that you can back up my data wherever it lives and we'll both win together. So whenever I hear a platform, I get a little bit, a little bit sketchy, >>Well platform, beats products, doesn't >>It? Yeah. To me, it's a last word. You said ecosystem. Yes. When you think of the big platform players, everybody B in the customer, uh, experience space builds to build for Salesforce. First, if you're a small security vendor, you build for Palo Alto first, right? Right. If you're in the database, you build for Oracle first and when you're that de facto platform, you create an ecosystem around you that you no longer have to fund and build yourself. It just becomes self-fulfilling. And that drives a level of stickiness that can't be replicated through product. >>Well, look at the ecosystem that, that these guys are forming. I mean, it's clear. Yeah. So are they becoming in your view >>Of platform? I think they are becoming a platform and I think that's one of the reasons they brought on and in, I think he's got some good experience doing that. You could argue that ring kind of became that. Right. The, when, you know, when he was ring central. >>Yeah. >>Yeah. And, uh, so I think some, some of his experiences and then moving into adjacencies, I think is really the reason they brought him in to lead this company to the next level. >>Excellent guys, thanks so much for setting up VEON 20, 22, 2 days of coverage on the cube. We're here at the area. It's a, it's a great venue. I >>Love the area. >>Yeah. It's nice. It's a nice intimate spot. A lot of customers here. Of course, there's gonna be a big Veeam party. They're famous for their parties, but, uh, we'll, we'll be here to cover it and, uh, keep it right there. We'll be back with the next segment. You're watching the cube VEON 20, 22 from Las Vegas.

(upbeat music) >> Live from Madrid, Spain, it's theCUBE. Covering HPE Discover Madrid 2017, brought to you by Hewlett Packard Enterprise. >> We're back in Madrid, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante. I'm here with my co-host Peter Burris. And many-time Cube guest Xavier Poisson is back. He's the vice president of Cloud28+ and service providers worldwide for Hewlett Packard Enterprise. And he's joined by Eugene Viskovic, who is the chief business officer at Veon, a Cloud28+ partner. Gentlemen, welcome to theCUBE. Welcome back, Xavier, it's good to see you again. >> Thank you, hi. >> Hi. So give us the update on Cloud 28. It started out as sort of this focused European effort. It has exploded now globally. What's the update? >> So I don't remember, I don't know if you remember it. It was last year, the same event. We were in London, I believe. And we were saying, "Okay, we are 300. "How many will be next year?" I took that back. It will be 700. We are 700. >> Dave: Wow, congratulations. >> 700 members. We have been expanding in the different geographies. So also in Europe, Middle East, and Africa, but we expanded in North America, in A-Pac, Latin America, and Caribbean. So now we are present in 60 countries. We are proposing 24,000 cloud services, so the catalog has been expanding dramatically. We are offering capabilities, data center capabilities from all partners in 33 countries. And we can offer from 400 data centers already. So average we have 40,000 hits per month on the platform, acquiring members and so on. And, yes, it has been a delight to launch that everywhere. It's really taking off very, very quickly. >> And the basic value proposition, you are essentially enabling cloud partners to create cloud-like business capabilities. >> Yeah, so what we do is, first of all, we enable the partners to get known on the market on this side, to publish all their services built and consume also. So it's not only IaaS, PaaS, SaaS, but also integration services as well because it's a comprehensive value chain. Then, what we do, we're not a marketplace where people go and leave. In the center, they can speak everyday. So they publish articles, full leadership articles around security, big data, manufacturing, and so on and so on. This year, only this year, they have published 600 articles. So when you're a customer, you go to this platform. You can see the offering, but you can see how the vendor is positioning himself around the market, his value-add, and what they are doing. So digital marketing a lot, also for them. We have been increasing the value on the market of many of our partners with social media because we are very good activity in this area, and also lead-generation engine because now we have so much offerings that we can target specific campaigns for our partners in specific geographies and generate a lot of leads on the market. Last, but not least, the market is evolving. We have a lot of partners, so we create platform-connected offerings. Example we have done is a specific cloud-in-a-box for manufacturing for plants where, in six clicks, you can provision from Cloud28+ all your information system for a plant. So this is also the kind of things that we do. >> Great, okay, Eugene, tell us about Veon. Why are you in business? What's your story? >> Okay, yes. Just talk a few minutes about Veon because it's not a very well-known name around the world, and don't be ashamed if you don't know Veon because it still is the seventh largest mobile operator in the world. It's significant. We are, today, around 42,000 employees, over 12 different countries. I have to say, very unusual countries. Not the type of countries you may choose to go for holidays, but it would be a shame because, honestly, some of them are good like, you know, all Eurasia, Kyrgyzstan, Tajikistan, Armenia, Tajikistan, Kazakhstan, Georgia, Russia. We have also emerging market, Pakistan, Bangladesh, Algeria, and one, only one European market, which is Italy with WIND, WIND Three. Which means it's a very large region. We are dealing with 10, more than 10% of the total population of the globe, 235 million customers, which is significant. And within this organization, there is an enterprise division, which I'm leading, which is around 4,500 people dedicated for enterprise and wholesales. Full revenue around $3 billion, just to give you a scale on who we are. Again, not very well-known, but definitely within our footprint we are the number one in this particular region of the world. >> It's sizable, substantial business. >> Eugene: Exactly, yes. >> So what's driving your business today? Obviously mobile is exploding. >> Yes, it's clear we came from the mobile business. We are number one mobile operator in the majority of these countries. We are what we call some fixed business. And since the last two, three years when I joined the organization, we completely reorganized our business model and moving more into the what we call value added services, ICT services. And one of the components, definitely, was to try to find a partner for our cloud proposition. You need to understand that we're in a very emerging market for this type of subject. We are sitting in a very traditional way, you know, how enterprise operating. They own the infrastructure, they own data center, they own the servers, the management platform, and their own people. And they have not yet shifted to this new model, which is to try to outsource some of the infrastructure. And this is where we came into the game as a global provider in order to have enterprise really to operate the shift. There is also another interesting situation is every time we bid a cloud proposition, usually we try to centerize it and have different country. In our part of the world is not possible. We have to set up a cloud platform in every single of our countries for regulatory constraints, which is not very economical, but definitely it's an opportunity for us to lead this market especially with HP Enterprise. >> Well, it allows you to differentiate, as well, from some of the mega-cloud providers that everybody knows, everybody talks about. So is that a primary way in which you compete? >> Oh, completely. It's clear the big players today are not very well-implemented in this part of the world because of this particular constraint, outside of Italy which is a little bit different game. But it's clear in Russia and Eurasia, yes. Today there is a opportunity. We believe that we want to be the single provider within this region operating across different market segments because we're covering from SO up to multinational accounts, even government. And having a set of value propositions we can offer across every single of our countries. >> Xavier, is it common that, amongst the Cloud28+ partners, there's that theme of local presence, of course, but is there also a differential in terms of what the partners will do, the types of work they'll do, customizations? >> Yeah, typically the case of Veon is very specific because they address very specific markets. Some other players will ask different things. But what is very important in the case of Veon is, first of all, to have a ready-to-deploy solution that you can industrialize in different countries. So this is the reason why we played with one of the technology partners of Cloud28+, with Ormuco, who has a cloud-in-a-box solution that can be deployed and managed remotely if needed. But that was fitting the needs of the market. Then, what we need to do is really to engage locally. So, in this particular case, what we're going to do is to engage with the HP organization in order that when we have the needs for our customers to go for cloud computing kind of workloads, we say, "Okay, we have the solution. "We have a partner, a Cloud28+ partner, "who took the decision to go with us, "and we trust each other. "So you, Mr. Customer, you want to do "backup as a service, disaster recovery "as a service, compute, storage as a service, "or security as a service, Veon is there." And the good point is Veon is there on very qualified hardware of HP synergy with a very good solution, which is one of the solution ready for service providers of HPE and operated by a very serious tech operator with the number six on the market, this is Veon. And we go together. So in this particular case, what was interesting was to have a solution that can be deployed everywhere the same with workloads that may fit with the different expectations of the market, engage the HP people to play with and, then, we market and with Cloud28+ we'll amplify their message. We will be able to drive lead generation campaigns. We'll be able to onboard our resellers because one thing I believe is that in this kind of regions, people don't go, as you say, Eugene, directly to the cloud. They continue to go to their resellers and, "What do I need to do?" And here, you know that we have the largest reseller network in the industry. So we will introduce this solution to our resellers in order that when a reseller of HPE is in front of such a case, it can have the mind to say, "Okay, let's engage with Veon." So this is the way we are going to operate. >> So when I think of many of the Akistan countries, I think of natural resources, challenging topography, challenging terrain. How does the physical reality and the industries that typify that region impact the way you're providing cloud services? >> It's clear, we're talking sometime a very, very large geography in terms of country size. When you take only in Russia. >> Mountainous. >> Eleven time zones you have in one single country. And when we operate, yes we have to spread our capability in order to be able to touch every single country, including in some infrastructure. Especially as a carrier, I like to imagine how much we need to pull fiber, cable, across the country and have these different set up of infrastructure, cloud propositions, to make sure we can serve better in term latency especially when we're talking about financial sections and so on, which brings some level of complexity and, as I said earlier, also some level of efficiency in term investment because we are not in a perfect world, especially when we talk about the regulatory constraints, which, yes, we need to find some middle way. How we can have a better, being still competitive, but as sometimes still delivering the expected quality. But you are right. This particular part of the world require a lot of work in term of physical infrastructure and also in our team. Our people are spread across these different countries, and for that reason yes, it's not an easy situation. >> Does it drive, are you likely to see a higher demand? HPE talks about the intelligent edge. Are you likely to see a higher demand for things like the intelligent edge because of the nature of the natural resource industry's petrochemical, et cetera, mountainous regions and a lot of communities that you serve, is that going to be a driver of new services or is it going to be something else? What do you think? >> Well, I think there would be two aspects. The first one, there is, definitely, a requirement driven, very often, by very large, multinational corporations. You'll be surprised how this multinational corporations are covering this part of the world. You have natural resources. All the western industry is present. And because they are present, they need to bring their standard in term of infrastructure they are using within this particular country. That the reason, yes, the demand is coming from there. At the same time, you have the rest of the market in term of large, local businesses where it's clear. They are moving. If you're looking in our part of the world, we are exactly where we were 10 years ago in Europe, in North America, and in Asia. We are really into emerging in face, in adopting this type of infrastructure. It's clear it's going to go much more quicker because, on top of that, enterprises have big pressure to reduce costs, but at the same time not to sacrifice the quality, what they're looking. Which, again, together we're capable and we can demonstrate they can get better for less. And this is a big work, and that's the reason when Xavier was mentioning about working together in each of the countries, this was one of the critical element in choosing with HP Enterprise because I'm a mobile operator and fixed. I'm not yet organized as an ICT services or cloud. It was very important for me, if we wanted to go very quickly to associate a brand with a leading organization like HP. And I have to say, I have tested several times. Every time we say, "Okay, we are in "partnership with HP Enterprise. "We are partnered with Cloud28+." This ring immediately the bell of the enterprise we are meeting, and it's easier for us to move quicker. But, definitely, I think we have a big, big opportunity. Large market to address, but definitely something interesting to go after. >> And it's early days, it's only been two years now, what do you want from Hewlett Packard Enterprise, and what are you guys going to deliver? Let's talk road map a little bit. First, from the partner/customer. What are you driving HPE and Xavier to deliver? >> For me there would be three axes in term of development. The first one in term of value proposition. We want to be able, over the next 12, 18 months to be able to offer to the market a full set of propositions, as you mentioned earlier. But Xavier, in term of public, private, hybrid cloud, and moving to different solution, we're talking about security. And, also, we're moving into more vertical market approach. We're talking about IUT where will also be some direction. This is the first ax. The second one, it's in term of countries. We're not going to launch a platform in every single, as I said earlier. We need to do it country by country. We are starting with Russia, Ukraine, Pakistan will come behind, Algeria. Very quickly, over the next 12 months, we are going to launch one by one these different countries. And the last element for us, which is also very key, is market segment. We are organized, as I said, by market segment. SO, small-medium enterprise, large key account, multinational corporation, and government. And each of these segments have different requirements. And we need to customize our approach. This is where where working with HP and Ormuco, we want to have a very customized, bi-market segment from highly customized to off-the-shelf type proposition. But, for me, these would be the three key axes in term of development working with HP Enterprise. >> And Xavier, how does that align with your roadmap? >> Well, you know, it's fully alligned in the sense that, first of all, we are expanding a lot the value prop of Cloud28+ with ISV software vendors. And the problems of telcos and service providers moving to the cloud, that's correct there is ICT branding, and there we can help. But this is the content because one day or another, they will face what the others have been facing, even in these countries, meaning yes is not enough. So if you have a portfolio of applications, verticals, horizontal applications, that they can use to continue to satisfy the demand of the market, so it will be great for them, and we are investing a lot in this order. The other thing is today I believe that we have now reached a maturity on digital marketing with Cloud28+, which is impressive. We had a big event yesterday. I will not give to you the number of impression we had only in four hours. It has been massive. If we take that, we put this at the disposal of this partner in every single country, we will speed them on the market. So these are the two big elements. The third element is what I said about this platform connected solutions because the more we go, the more we see that our outside-in approach with Cloud28+, thinking customers first, is excellent. We need to continue on that. But, as you were mentioning, the move to the edge, we see more and more solutions for energy, for manufacturing, oil and gas, environment, that we need pure hybrid because you cannot put everything into a cloud. And where we are lucky with Veon is that they have the network. So you can imagine, they have their big cloud in a country that they could deploy also some private cloud very, very quickly in specific area within an oil and gas land or I don't know where in energy, mining, or where you have not that. And you cannot, because of latency issues you cannot go directly to the cloud, but you need to handle at the edge, send back to the cloud for analytics or AI or so on, and this will be at the disposal for them. And I believe the combination of the two for that will be for the benefit of the customer. So this is my opinion. >> I completely agree. I think they approach, in term of the partnership, as I said, I think when we're going to deal with very large organizations is going to be very infrastructure-type discussion driven. But when we're going to cool down, it's purely, definitely Sowasis, content. I want to be able to address, for example, the marketing department, how we can help them to understand the behavior of a consumer by using data, big data, you know, analytics. In term of delivery for an organization, using fleet management. In term of manufacturing, using more IUT. But when you look at these different solutions, what is below is a type of infrastructure. Is to have a cloud infrastructure where we can rely on a strong partnership, bringing this solution, and offering to our customer definitely a very cost-effective but also agile, very, you know, able to move with the market demand in a very vertical way, but definitely this is a way we want to work together. >> Excellent. All right, we have to leave it there, gentlemen. Cloud is exploding. Cloud is going to be local. We've talked about this a lot. Hybrid IT, intelligence edge with a local flavor. Gentlemen, thanks very much for coming. >> Thank you very much. >> Thank you. >> And congratulations for all the success. All right, keep it right there, everybody. We'll be back with our next guest. This is theCUBE. We're live from HPE Discover Madrid 2017. Be right back. (upbeat music)