>> Announcer: From theCUBE studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is "Breaking Analysis" with Dave Vellante. >> The rapid pace of cloud adoption has changed the way organizations approach cybersecurity. Specifically, the cloud is increasingly becoming the first line of cyber defense. As such, along with communicating to the board and creating a security aware culture, the chief information security officer must ensure that the shared responsibility model is being applied properly. Meanwhile, the DevSecOps team has emerged as the critical link between strategy and execution, while audit becomes the free safety, if you will, in the equation, i.e., the last line of defense. Hello, and welcome to this week's, we keep on CUBE Insights, powered by ETR. In this "Breaking Analysis", we'll share the latest data on hyperscale, IaaS, and PaaS market performance, along with some fresh ETR survey data. And we'll share some highlights and the puts and takes from the recent AWS re:Inforce event in Boston. But first, the macro. It's earning season, and that's what many people want to talk about, including us. As we reported last week, the macro spending picture is very mixed and weird. Think back to a week ago when SNAP reported. A player like SNAP misses and the Nasdaq drops 300 points. Meanwhile, Intel, the great semiconductor hope for America misses by a mile, cuts its revenue outlook by 15% for the year, and the Nasdaq was up nearly 250 points just ahead of the close, go figure. Earnings reports from Meta, Google, Microsoft, ServiceNow, and some others underscored cautious outlooks, especially those exposed to the advertising revenue sector. But at the same time, Apple, Microsoft, and Google, were, let's say less bad than expected. And that brought a sigh of relief. And then there's Amazon, which beat on revenue, it beat on cloud revenue, and it gave positive guidance. The Nasdaq has seen this month best month since the isolation economy, which "Breaking Analysis" contributor, Chip Symington, attributes to what he calls an oversold rally. But there are many unknowns that remain. How bad will inflation be? Will the fed really stop tightening after September? The Senate just approved a big spending bill along with corporate tax hikes, which generally don't favor the economy. And on Monday, August 1st, the market will likely realize that we are in the summer quarter, and there's some work to be done. Which is why it's not surprising that investors sold the Nasdaq at the close today on Friday. Are people ready to call the bottom? Hmm, some maybe, but there's still lots of uncertainty. However, the cloud continues its march, despite some very slight deceleration in growth rates from the two leaders. Here's an update of our big four IaaS quarterly revenue data. The big four hyperscalers will account for $165 billion in revenue this year, slightly lower than what we had last quarter. We expect AWS to surpass 83 billion this year in revenue. Azure will be more than 2/3rds the size of AWS, a milestone from Microsoft. Both AWS and Azure came in slightly below our expectations, but still very solid growth at 33% and 46% respectively. GCP, Google Cloud Platform is the big concern. By our estimates GCP's growth rate decelerated from 47% in Q1, and was 38% this past quarter. The company is struggling to keep up with the two giants. Remember, both GCP and Azure, they play a shell game and hide the ball on their IaaS numbers, so we have to use a survey data and other means of estimating. But this is how we see the market shaping up in 2022. Now, before we leave the overall cloud discussion, here's some ETR data that shows the net score or spending momentum granularity for each of the hyperscalers. These bars show the breakdown for each company, with net score on the right and in parenthesis, net score from last quarter. lime green is new adoptions, forest green is spending up 6% or more, the gray is flat, pink is spending at 6% down or worse, and the bright red is replacement or churn. Subtract the reds from the greens and you get net score. One note is this is for each company's overall portfolio. So it's not just cloud. So it's a bit of a mixed bag, but there are a couple points worth noting. First, anything above 40% or 40, here as shown in the chart, is considered elevated. AWS, as you can see, is well above that 40% mark, as is Microsoft. And if you isolate Microsoft's Azure, only Azure, it jumps above AWS's momentum. Google is just barely hanging on to that 40 line, and Alibaba is well below, with both Google and Alibaba showing much higher replacements, that bright red. But here's the key point. AWS and Azure have virtually no churn, no replacements in that bright red. And all four companies are experiencing single-digit numbers in terms of decreased spending within customer accounts. People may be moving some workloads back on-prem selectively, but repatriation is definitely not a trend to bet the house on, in our view. Okay, let's get to the main subject of this "Breaking Analysis". TheCube was at AWS re:Inforce in Boston this week, and we have some observations to share. First, we had keynotes from Steven Schmidt who used to be the chief information security officer at Amazon on Web Services, now he's the CSO, the chief security officer of Amazon. Overall, he dropped the I in his title. CJ Moses is the CISO for AWS. Kurt Kufeld of AWS also spoke, as did Lena Smart, who's the MongoDB CISO, and she keynoted and also came on theCUBE. We'll go back to her in a moment. The key point Schmidt made, one of them anyway, was that Amazon sees more data points in a day than most organizations see in a lifetime. Actually, it adds up to quadrillions over a fairly short period of time, I think, it was within a month. That's quadrillion, it's 15 zeros, by the way. Now, there was drill down focus on data protection and privacy, governance, risk, and compliance, GRC, identity, big, big topic, both within AWS and the ecosystem, network security, and threat detection. Those are the five really highlighted areas. Re:Inforce is really about bringing a lot of best practice guidance to security practitioners, like how to get the most out of AWS tooling. Schmidt had a very strong statement saying, he said, "I can assure you with a 100% certainty that single controls and binary states will absolutely positively fail." Hence, the importance of course, of layered security. We heard a little bit of chat about getting ready for the future and skating to the security puck where quantum computing threatens to hack all of the existing cryptographic algorithms, and how AWS is trying to get in front of all that, and a new set of algorithms came out, AWS is testing. And, you know, we'll talk about that maybe in the future, but that's a ways off. And by its prominent presence, the ecosystem was there enforced, to talk about their role and filling the gaps and picking up where AWS leaves off. We heard a little bit about ransomware defense, but surprisingly, at least in the keynotes, no discussion about air gaps, which we've talked about in previous "Breaking Analysis", is a key factor. We heard a lot about services to help with threat detection and container security and DevOps, et cetera, but there really wasn't a lot of specific talk about how AWS is simplifying the life of the CISO. Now, maybe it's inherently assumed as AWS did a good job stressing that security is job number one, very credible and believable in that front. But you have to wonder if the world is getting simpler or more complex with cloud. And, you know, you might say, "Well, Dave, come on, of course it's better with cloud." But look, attacks are up, the threat surface is expanding, and new exfiltration records are being set every day. I think the hard truth is, the cloud is driving businesses forward and accelerating digital, and those businesses are now exposed more than ever. And that's why security has become such an important topic to boards and throughout the entire organization. Now, the other epiphany that we had at re:Inforce is that there are new layers and a new trust framework emerging in cyber. Roles are shifting, and as a direct result of the cloud, things are changing within organizations. And this first hit me in a conversation with long-time cyber practitioner and Wikibon colleague from our early Wikibon days, and friend, Mike Versace. And I spent two days testing the premise that Michael and I talked about. And here's an attempt to put that conversation into a graphic. The cloud is now the first line of defense. AWS specifically, but hyperscalers generally provide the services, the talent, the best practices, and automation tools to secure infrastructure and their physical data centers. And they're really good at it. The security inside of hyperscaler clouds is best of breed, it's world class. And that first line of defense does take some of the responsibility off of CISOs, but they have to understand and apply the shared responsibility model, where the cloud provider leaves it to the customer, of course, to make sure that the infrastructure they're deploying is properly configured. So in addition to creating a cyber aware culture and communicating up to the board, the CISO has to ensure compliance with and adherence to the model. That includes attracting and retaining the talent necessary to succeed. Now, on the subject of building a security culture, listen to this clip on one of the techniques that Lena Smart, remember, she's the CISO of MongoDB, one of the techniques she uses to foster awareness and build security cultures in her organization. Play the clip >> Having the Security Champion program, so that's just, it's like one of my babies. That and helping underrepresented groups in MongoDB kind of get on in the tech world are both really important to me. And so the Security Champion program is purely purely voluntary. We have over 100 members. And these are people, there's no bar to join, you don't have to be technical. If you're an executive assistant who wants to learn more about security, like my assistant does, you're more than welcome. Up to, we actually, people grade themselves when they join us. We give them a little tick box, like five is, I walk on security water, one is I can spell security, but I'd like to learn more. Mixing those groups together has been game-changing for us. >> Now, the next layer is really where it gets interesting. DevSecOps, you know, we hear about it all the time, shifting left. It implies designing security into the code at the dev level. Shift left and shield right is the kind of buzz phrase. But it's getting more and more complicated. So there are layers within the development cycle, i.e., securing the container. So the app code can't be threatened by backdoors or weaknesses in the containers. Then, securing the runtime to make sure the code is maintained and compliant. Then, the DevOps platform so that change management doesn't create gaps and exposures, and screw things up. And this is just for the application security side of the equation. What about the network and implementing zero trust principles, and securing endpoints, and machine to machine, and human to app communication? So there's a lot of burden being placed on the DevOps team, and they have to partner with the SecOps team to succeed. Those guys are not security experts. And finally, there's audit, which is the last line of defense or what I called at the open, the free safety, for you football fans. They have to do more than just tick the box for the board. That doesn't cut it anymore. They really have to know their stuff and make sure that what they sign off on is real. And then you throw ESG into the mix is becoming more important, making sure the supply chain is green and also secure. So you can see, while much of this stuff has been around for a long, long time, the cloud is accelerating innovation in the pace of delivery. And so much is changing as a result. Now, next, I want to share a graphic that we shared last week, but a little different twist. It's an XY graphic with net score or spending velocity in the vertical axis and overlap or presence in the dataset on the horizontal. With that magic 40% red line as shown. Okay, I won't dig into the data and draw conclusions 'cause we did that last week, but two points I want to make. First, look at Microsoft in the upper-right hand corner. They are big in security and they're attracting a lot of dollars in the space. We've reported on this for a while. They're a five-star security company. And every time, from a spending standpoint in ETR data, that little methodology we use, every time I've run this chart, I've wondered, where the heck is AWS? Why aren't they showing up there? If security is so important to AWS, which it is, and its customers, why aren't they spending money with Amazon on security? And I asked this very question to Merrit Baer, who resides in the office of the CISO at AWS. Listen to her answer. >> It doesn't mean don't spend on security. There is a lot of goodness that we have to offer in ESS, external security services. But I think one of the unique parts of AWS is that we don't believe that security is something you should buy, it's something that you get from us. It's something that we do for you a lot of the time. I mean, this is the definition of the shared responsibility model, right? >> Now, maybe that's good messaging to the market. Merritt, you know, didn't say it outright, but essentially, Microsoft they charge for security. At AWS, it comes with the package. But it does answer my question. And, of course, the fact is that AWS can subsidize all this with egress charges. Now, on the flip side of that, (chuckles) you got Microsoft, you know, they're both, they're competing now. We can take CrowdStrike for instance. Microsoft and CrowdStrike, they compete with each other head to head. So it's an interesting dynamic within the ecosystem. Okay, but I want to turn to a powerful example of how AWS designs in security. And that is the idea of confidential computing. Of course, AWS is not the only one, but we're coming off of re:Inforce, and I really want to dig into something that David Floyer and I have talked about in previous episodes. And we had an opportunity to sit down with Arvind Raghu and J.D. Bean, two security experts from AWS, to talk about this subject. And let's share what we learned and why we think it matters. First, what is confidential computing? That's what this slide is designed to convey. To AWS, they would describe it this way. It's the use of special hardware and the associated firmware that protects customer code and data from any unauthorized access while the data is in use, i.e., while it's being processed. That's oftentimes a security gap. And there are two dimensions here. One is protecting the data and the code from operators on the cloud provider, i.e, in this case, AWS, and protecting the data and code from the customers themselves. In other words, from admin level users are possible malicious actors on the customer side where the code and data is being processed. And there are three capabilities that enable this. First, the AWS Nitro System, which is the foundation for virtualization. The second is Nitro Enclaves, which isolate environments, and then third, the Nitro Trusted Platform Module, TPM, which enables cryptographic assurances of the integrity of the Nitro instances. Now, we've talked about Nitro in the past, and we think it's a revolutionary innovation, so let's dig into that a bit. This is an AWS slide that was shared about how they protect and isolate data and code. On the left-hand side is a classical view of a virtualized architecture. You have a single host or a single server, and those white boxes represent processes on the main board, X86, or could be Intel, or AMD, or alternative architectures. And you have the hypervisor at the bottom which translates instructions to the CPU, allowing direct execution from a virtual machine into the CPU. But notice, you also have blocks for networking, and storage, and security. And the hypervisor emulates or translates IOS between the physical resources and the virtual machines. And it creates some overhead. Now, companies like VMware have done a great job, and others, of stripping out some of that overhead, but there's still an overhead there. That's why people still like to run on bare metal. Now, and while it's not shown in the graphic, there's an operating system in there somewhere, which is privileged, so it's got access to these resources, and it provides the services to the VMs. Now, on the right-hand side, you have the Nitro system. And you can see immediately the differences between the left and right, because the networking, the storage, and the security, the management, et cetera, they've been separated from the hypervisor and that main board, which has the Intel, AMD, throw in Graviton and Trainium, you know, whatever XPUs are in use in the cloud. And you can see that orange Nitro hypervisor. That is a purpose-built lightweight component for this system. And all the other functions are separated in isolated domains. So very strong isolation between the cloud software and the physical hardware running workloads, i.e., those white boxes on the main board. Now, this will run at practically bare metal speeds, and there are other benefits as well. One of the biggest is security. As we've previously reported, this came out of AWS's acquisition of Annapurna Labs, which we've estimated was picked up for a measly $350 million, which is a drop in the bucket for AWS to get such a strategic asset. And there are three enablers on this side. One is the Nitro cards, which are accelerators to offload that wasted work that's done in traditional architectures by typically the X86. We've estimated 25% to 30% of core capacity and cycles is wasted on those offloads. The second is the Nitro security chip, which is embedded and extends the root of trust to the main board hardware. And finally, the Nitro hypervisor, which allocates memory and CPU resources. So the Nitro cards communicate directly with the VMs without the hypervisors getting in the way, and they're not in the path. And all that data is encrypted while it's in motion, and of course, encryption at rest has been around for a while. We asked AWS, is this an, we presumed it was an Arm-based architecture. We wanted to confirm that. Or is it some other type of maybe hybrid using X86 and Arm? They told us the following, and quote, "The SoC, system on chips, for these hardware components are purpose-built and custom designed in-house by Amazon and Annapurna Labs. The same group responsible for other silicon innovations such as Graviton, Inferentia, Trainium, and AQUA. Now, the Nitro cards are Arm-based and do not use any X86 or X86/64 bit CPUs. Okay, so it confirms what we thought. So you may say, "Why should we even care about all this technical mumbo jumbo, Dave?" Well, a year ago, David Floyer and I published this piece explaining why Nitro and Graviton are secret weapons of Amazon that have been a decade in the making, and why everybody needs some type of Nitro to compete in the future. This is enabled, this Nitro innovations and the custom silicon enabled by the Annapurna acquisition. And AWS has the volume economics to make custom silicon. Not everybody can do it. And it's leveraging the Arm ecosystem, the standard software, and the fabrication volume, the manufacturing volume to revolutionize enterprise computing. Nitro, with the alternative processor, architectures like Graviton and others, enables AWS to be on a performance, cost, and power consumption curve that blows away anything we've ever seen from Intel. And Intel's disastrous earnings results that we saw this past week are a symptom of this mega trend that we've been talking about for years. In the same way that Intel and X86 destroyed the market for RISC chips, thanks to PC volumes, Arm is blowing away X86 with volume economics that cannot be matched by Intel. Thanks to, of course, to mobile and edge. Our prediction is that these innovations and the Arm ecosystem are migrating and will migrate further into enterprise computing, which is Intel's stronghold. Now, that stronghold is getting eaten away by the likes of AMD, Nvidia, and of course, Arm in the form of Graviton and other Arm-based alternatives. Apple, Tesla, Amazon, Google, Microsoft, Alibaba, and others are all designing custom silicon, and doing so much faster than Intel can go from design to tape out, roughly cutting that time in half. And the premise of this piece is that every company needs a Nitro to enable alternatives to the X86 in order to support emergent workloads that are data rich and AI-based, and to compete from an economic standpoint. So while at re:Inforce, we heard that the impetus for Nitro was security. Of course, the Arm ecosystem, and its ascendancy has enabled, in our view, AWS to create a platform that will set the enterprise computing market this decade and beyond. Okay, that's it for today. Thanks to Alex Morrison, who is on production. And he does the podcast. And Ken Schiffman, our newest member of our Boston Studio team is also on production. Kristen Martin and Cheryl Knight help spread the word on social media and in the community. And Rob Hof is our editor in chief over at SiliconANGLE. He does some great, great work for us. Remember, all these episodes are available as podcast. Wherever you listen, just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me directly at David.Vellante@siliconangle.com or DM me @dvellante, comment on my LinkedIn post. And please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights, powered by ETR. Thanks for watching. Be well, and we'll see you next time on "Breaking Analysis." (upbeat theme music)

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020. Special coverage sponsored by A. W s Global Partner Network. Welcome back to the cubes Coverage Cube. Virtual coverage of AWS reinvent 2020. We're not in person this year. We have to do the all the Cube interviews remote. But we've got two great guests from the Amazon Web Services Partner Network A W s a p N. Craig Wicks, senior manager of AWS Satisfactory. Todd Golden, Principal Cloud Architect, Global SAS Tech Lead Gentlemen, Thanks for joining the Cube. Appreciate it. >>Thanks, John. >>Um, first of all, I want to get in Craig with you and just take them in to explain what is the satisfactory. Because this is a unique and growing team within AWS. Um, we've been saying it for years, but the moves to the cloud houses has been obvious is mainstream. But your team, your role is doing some interesting things. Explain. What is the satisfactory? What do you guys do? >>Yeah, Thanks, John. Really delighted to be here today. Yeah, the satisfactory. Maybe for those that may be somewhat disappointing. There's no factory, no sort of easy button for SAS. There's no templates. There's no machinery. We wish we had it. But we're really a global team of subject matter. Experts in SAS that really help AWS partners transform their business right both business and technical to the Saas model and help them do that faster with greater confidence and all the best practices that our team has learned over the years. >>And Todd, your solution architect. So you're the partner. You have to help your customers get their, um, you know, being a solution architect really is like the mechanic of the business. You gotta lay out the engine of innovation and this is what clients are trying to strive for. Can you take him and explain how your role is involved in this? Obviously, SAS is not. It makes sense on paper, but making it happen is not trivial. What do you What do you what? Your role. >>Yeah, so I'm very much, in fact, connected to Craig. We're all part of the same organization, and we're sort of very much deeply involved with these organizations. We get very much, um, embedded with these these partners that we work with and really helped them through sort of the nuts and bolts of what it means to transform an application thio multi tenant sort of SAS models. That means helping them figure out how to map that two different AWS services. It means helping them figure out how to realize the sort of the business objective objectives of transforming to sass. But really, our goal is to sort of just get into the weeds with them, figure out their specific domain because there's no one size fits all. Versace figure out how that really connects toe, where they're at in their trajectory, in terms of where they're trying to get to end of the journey is a business and then find that alignment with a W S services. So there's sort of that trifecta of lining all those bits up and sort of formulating, Ah, technical strategy that really brings all those pieces together for them. >>Craig, I want to get your thoughts on the trends, and Todd, you can weigh in to want to get your reaction. Over the weekend, I was picking some folks on on the Internet, linked in and whatnot from eight years ago when that we did our first cube at reinvent with second year of reinvent, and nobody was there in the industry press, wasn't there were the first I think press to be there. Um and a lot of people have either moved on to big positions or companies have gone public. I bought me. Major things have happened in 2013 clouds certainly rose there. SAS became the business model. Everyone kind of knows that. But the dynamics today are different when you think about the on premises and you got the edge. A big part of the themes this week in the next couple weeks as we unfold here reinvent. This >>is >>different, but the same Can you share? What is the trend that people are riding on? What's the What's the wind of innovation? >>Yeah, and certainly I would say, First of all, just personally, I've been in SAS for some time. It was involved early on, in sort of, ah, model. We called the application service provider model, which was sort of a predecessor assassin, you know, the gray hairs out to remember that one. But, uh, you know, I think first of all, I would say SAS is everywhere and people wanted to be everywhere And so there's just We just see insatiable demand for sass from from customers out there, right? And I think the challenge problem we see is that organizations that we work with just can't transition fast enough, right? The rial technical challenges that air in front of them in terms of how they build an architect, Assaf solution and but most importantly, the business model that sort of underpins. That is a huge transformation for companies that they're going through. And that's one of the things that we just see. You know, Justin, my time in satisfactory native us. The range of organizations we worked with has just changed. So, you know, early on we're working with companies and infrastructure around security and storage and those areas, and the last few years it's just expanded to all sorts of industries, from public sector oil and gas. Um, sort of financial services. You know, everyone really wants to build this model, and that's really, you know, born around the customer demand they're seeing for South. >>That's interesting. You mention challenge. I wanna get your thoughts. You mentioned a SP application service provided you remember those days, you know, vividly, mainly a tech thing, but it's really a consumption model around delivery of software and services. And, you know, Web services came on in 2000. The rest is history. We've got Amazon Web services, but now, as you get more vertically expanded oil and gas and go mainstream. But what >>are some >>of the challenges? Because as people get smarter, it's not just about self service or buy as you go. It's a business model you mentioned. Is it a managed services itself? Services has been embedded into the application. Can you share some of the new things that are emerging on the business model side that people should pay attention to? What, some of those challenges? Yeah, I >>think one of the first things is just a fundamentally are operating service, right? So that changes the dynamics to everything, for in terms of how you engage with customers to how you deliver. You know, the kind of simple thing E I often tell people is you know who's answering the pager now. If someone goes, if something goes wrong, it's not your customer. That's you right, and you have to manage and sustain that service and and really continue Thio provide innovation and value to customers. Right? That's one of the challenges we see is is organizations are now on a treadmill in terms of innovation where customers expect something from South model and you really have to deliver on that. And then one of the final points I would say is it really transforms how you think about going to market right sales and marketing your fundamentally transformed. And, um, you know, traditional ways of really selling software and technology. Um, largely go away and go away and some good ways. And SAS, where you can really put customers in experience right and have them evaluate your technology in a manner where they can have a trial experience, right in a way, toe really introduce them to technology very slowly. And then, um, they grow over time, right? As they see value in that software, which is very aligned, how we think about, you know, a AWS our own technology. >>Okay, Todd, I gotta ask you out. So you want to drive that car? The SAS car, What's under the hood with the right tires? What's the conditions? And it's a technical issues here. If I'm a customer, I'm in a PM, partner. Okay, I'm in there. I got a traditional business pandemic hits or just my business models forcing me. What's your advice? What have I got to do? What's the playbook on the technical side? How doe I go to the next level? >>Well, uh, you know, we're obviously gonna ask a lot of questions and probably the answer to that, sadly, like most technical people will say to you is it depends which is never the answer anybody wants to hear. But so we're definitely gonna ask a lot of questions you about, like where you're at. What are the immediate sort of pressures in your business? This is where the technical team people on our team tended wearing a little bit of a business hat here where we want to know before we sort of guide you down any one particular technical path, like water. Sort of the key sort of dimensions of getting you to a SAS till every model, but but probably as a theme generally were saying to people is, Let's look at how we can get you there incrementally. Let's get you into a SAS model as fast as we possibly can. So we have a lot of different sort of patterns and strategies will use that air about sort of incremental adoption of SAS, which are how can I sort of lift my existing environment, move it into a SAS model, present a SAS offering to the business, Let me operate and run, get the metrics and analytics, get the sort of operational efficiency and the Dev ops goodness of sass, and then sort of move after that into the insides of that sass application. And think about now, how can I begin to move that two more modern constructs? How can I move that into containers? Potentially? Or how can I begin to adopt server list technologies? How can I apply? I am another constructs to achieve Tenet isolation. Eso We're really just trying to put them in a position where they can sort of incrementally modernize their applications while still realizing the benefits of getting to market on a saas model. >>So you're saying that the the playbook is come in low hanging fruit is used existing core building blocks, you see two s three dynamo whatever and then hit the higher level services as you get more experience Or is there a certain recipe that you see working for customers? >>So it's it's probably less about that. It's probably It's not about necessarily where you're out in the service continuum and which services you're using. Um, well, we're gonna move you to a set of services that are probably a good set of services that are that way to move your monolith in most effectively into a saas model as a beginning point that could land you in to that could land you in containers. The more important thing we're going to do here is we're going to surround the that sort of experience with all the other moving parts that you have tow have billing metrics. We're gonna We're gonna build in on boarding so that you could get frictionless on boarding. Those are all gonna be net new things you have to build. We're probably gonna change your identity model and connect that up with cognito or one of our partners solutions eso for us. It's it's sort of grabbing your existing environment. Can we move it over effectively, maybe modernize it a little bit along the way, but more importantly, build all those horizontal concepts in leveraging the right AWS services for you, uh, to bring that to life. >>That's actually smart, aleck. The way you described it that way, it's almost as if it's the core tenant of what Amazon stood for. You standing up fast and you get value, right? So what you're saying is, whatever it takes is a variety of tools to stand it up. I mean, this is interesting, Craig, and talk if you can comment on this because one of the things that we've been reporting on, I've done probably a dozen interviews specifically around companies that have moved to the cloud early, proactively kind of in this way, not in a major radical way. But, you know, operationally they have been transforming, you know, piece by piece. How Todd you laid it out and then pandemic it. And they've had successfully position themselves to take advantage of the forcing function of necessity of dealing with, you know, remote work and all these things that just clobbered him so and again. They were on the wave at the right time. Kind of because they had to because they did the right work. This >>is a >>factor. This is gonna tell sign. Can you guys share your reaction? What you've seen with satisfactory because this >>is the >>benefit of moving to the club. Being positioned needs pandemic today. Tomorrow, its edge. What's after that? Right space. I mean, there's a lot of things. This is kind of the playbook. What's your reaction to that? Correct. >>Yeah. I certainly see, you know, organizations that we work with that have really delivering the SAS model, being more agile, right. The ability to sort of flex resource is and change the way they sell and work with customers and find ways to, um, sort of delivered to them. Um, that don't require, um, some of the things that we're really maybe some of the things that are holding them back from traditional software in terms of how fast they deliver new features and services and, you know, changing to sort of market and world dynamics very quickly. Right is a big part of that. And, you know, one of the things we talked about in the SAS model is really not just getting to sass, but being to deliver in that model, right? And dr Innovations to customers very quickly. Um, s O that you really getting sort of securing, you know, sort of them is the loyal customers and sort of a lifetime customer. Hopefully, um, you know, that's a big part of status. >>Yeah. And there's two types of organizations that you guys have been successful with. The startup, obviously, you know, category creators or disruptors will come in, you know, come in with a nap. Born in the cloud, kick some ass you've seen that movie happens all the time still going on. And then you got the existing organizations that have to stay in that innovation wave and not get crushed by the by the change can you guys share how the factories working? The satisfactory from a mix of of clients is Atmore establishes its startups in between. Give us a taste of What's the makeup? >>Yeah, it's range just to give you a range of some of the companies worked with from kind of legacy technology companies or companies that have been around in some time, like BMC, you know, f five alfresco we've all worked with over the past few years, and they've launched products with our team on a W s. You know, to kind of start ups like Matile. Ian. You know, Cloud zero. Cokie City, which just launched a data management service announced here at Reinvent um, two very kind of specific industry players. I think this is a trend we've seen most recently where, you know, we work with organizations like NASDAQ. I based tea in the aerospace, you know, area Emerson in oil and gas. We've seen in a number of oil and gas companies really come to us based on sort of dynamics, their industry and the constraints the customers are in in terms of how they could deliver the value they provide, >>is there. Is there a key thing that's popping out of all these deals that kind of has a is a tale sign of pattern or, um, a specific thing That's obvious on then, when you look at the data, when you zoom out, >>Yeah, I think one thing I would just say people underestimate the transformation. They have to go through continually. And we still have organizations that come to us, and maybe they come to Todd or others, and they're really they're envisioning This is a technical transformation, right? And they sort of want to talk all about the application and and sort of the new architecture er they they want to move to. But we really see theon pertinent A line business and technology around sass is a model, and that's really fundamental to getting it right. And so, you know, often we see organizations that really have unrealistic launch dates, you know, which is pretty common in software and services these days, but particularly a staff model. We just see that, you know, they underestimate the work in front of them and kind of what they need to bring with that >>Todd real quick for it against the announcements which are cool. Um, technical things that pop out of these organizations is there, Uh, the cream kind of rises to the top. When you look at the value proposition, what do they focused on? Technically, >>um, you know, it's interesting because to me, ah, lot of the focus tends to be more on the things that would surprise you. Like a lot of people are wanna sort of think about how to design the ins Thea click ation on the business logic of their application and take advantage of this scale on the sizing of AWS and those things, they're still all true. But but really an assassin organization with a really successful SAS organizations will see ah, lot more shift to the agility and the operational efficiency, right? So really good organizations will say we're going to invest in all the metrics and all the land analytics, all the tooling that lets us really have our finger on the pulse of what our customers are doing. And then they'll derive all their tech and their business strategy based on this really data driven experience. And I see that as the trend and the thing we certainly advocate a ton inside of the satisfactory is don't under invest in that data because that data is really especially in a multi 10 environment where everybody's running in this sort of shared environment. That data is essential to understanding how to morph your business, how to innovate, understand how your cost profile is really evolving. And so I see the really strong organizations building lots of the sort of foundational bits here, even ahead sometimes of building features and functions into their own products. >>It's not only moving fast and deploying tech is moving fast on the business model innovation as well. You're basically saying, Don't overplay your hand and try toe lock in the business model logic because it's gonna change with the data that what you're saying. >>Yeah, they're playing for for the innovation. They're playing for the agility they're playing for new markets, new segments that may evolve. And so they're really trying to put themselves in the position of being able to pivot and move. And they're really taking pride in the fact that their technology lets them do that. >>You know, that's not that's a business model That's not for the faint of heart. You know, when you have a market that has a lot of competitiveness to it and certainly was seeing the sea change happening over this year in the past few years, with cloud completely changing the playing field, winners and losers air emerging. And that's I think, this key it's you know, as I said in The Godfather, you know, you need a wartime conciliatory for these kind of times, and this is kind of what we're seeing, and I think that's a great point. Todd. Good stuff there. Um Okay. So announcements. You guys had some things on stage. Talked about Craig. You guys launching some new stuff? New programs? >>Yeah, absolutely mhm. Yeah, John, I guess our model is really to learn from a range of partners and experiences we have and then, you know, build tools and approaches to help everyone go faster, right? Because we certainly can't work with thousands organizations. And one of things that our team has had the opportunity over the last few years is published ton of articles, Blog's white papers, you know, very specific approaches to building SAS solutions. If you search Todd Golding out there on YouTube or anything, you'll find a bunch of things. But we wanted to bring on the altogether. And so we've created Central directory called Satisfactory Insights. Hug. And there's a right now over 70 unique pieces of content that our team is produced and curated. Whether you're starting on your staff journey right, you need socks one on one and business planning to level 400 right? 10 10 in isolation from Todd Golding, right. That's all there and available to you on the satisfactory program page. >>What? Some of the interesting things that came out of that that data from the insights you can share. >>Yeah, a couple things that we have we published most recently I would point to are really interesting. We just recently published a five case study where we go deeper in terms of their transformation. To really understand what was, you know, behind the scenes and that, um, we also published a white paper called the SAS Journey Framework, where for the first time, our team really broke down the journey. And what are the steps required? And what are some of the key questions you need to ask Onda Final piece I'd point to for people that Todd talks to is, we have, ah, white paper on SAS tended isolation strategies where we really go deep on on that particular challenge and what's there and that's also published and available on our satisfactory inside sub. Could you >>just define what is that mean tenant isolation strategies? What does that >>go to Todd with that for sure? >>Let's get that on the record. What is the definition of SAS tenant isolation? >>Sure, sure. So, you know, I think I've been in the room and with a lot of people that reinvent and basically have been in Chuck talks and said, You know what's tended isolation to you, and a lot of people will say Oh, that's authentication. Essentially, somebody got into the system. So now I know my system is isolated, but and a multi tenant environment right where we're running all this. These resource is in this data all co mingled from all of these different tenants. Um, it would be a huge blow to the business if one tenant somehow inadvertently exposed the resource or exposed to the resource is of another tenant. And so, fundamentally 10 of isolation is all of these techniques and strategies and architectural patterns that you use to ensure that one tenant can inadvertently get access to the resource is of another tenant s. So it's a sort of a layer of protection and security that goes beyond just the authentication and authorization schemes that you'll typically see in a cess architectures. >>So that's basically like having your own room lock and key doorway not just getting in, but no one can access your your stuff. >>Yeah, so it's a whole set of measures you could imagine. Identity and access management and other policies sort of defining tenant boundaries and saying, as each tenant is trying to access a resource or trying toe, interact with the system in some way, you've put these extra walls up to ensure that you can't cross those boundaries. >>Todd, I want to get your thoughts on this. Well, architected sas lens piece. What is this all about? >>Well, um, a WS has had for a long time the sort of the well architected framework, which has been a really great set of sort of guiding principles and best practices around how to design an architect solutions on top of AWS. And certainly SAS providers have been using that all along the way to sort of ask foundational questions of their architecture. Er But there's always been this layer of additional sort of SAS considerations that have set on top of that are that air SAS specific architectural patterns. And so what we've done is we've used this mechanism called the well architected lens that lets us essentially take our SAS architectural principles and extend the well architected framework and introduce all these concepts into the SAS and to the architecture pillars that really ask the hard SAS architecture questions so security operations reliability all the sort of classic pillars that are part of the well architected framework now have a SAS specific context added to them. Thio to really go after those areas that are unique to sass providers. And this really gives developers, architects, consultants the ability to sit down and look at a SAS application and evaluate its alignment with these best practices. And so far we can really positive response. Thio the content. >>Great job, guys doing great work. Finally, there's something new that you guys are announcing today to make life easier. Preview building SAS on a bus. What's that? What's that about? >>Sure. Eso You know you can imagine. We've been working with thes SAS providers for a number of years now, and as we've worked with them, we've seen a number of different themes emerge on and and we've run into this pattern That's pretty common where we'll see these, uh, these customers that have a classic sort of installed software model. They're installing it on premises or in the cloud, but basically each customer's sort of has their own version of the product. They have one off versions. They have their potentially have customization that are different. And while this works for some time for these businesses, what they find is they sort of run into this operational efficiency and cost wall. Whereas they're trying to grow their businesses, they they just really can't. They can't sort of keep up based on the way that they're running their current systems, and this is sort of a natural draw to move them to sass. But the other pattern that we've seen here is that these organizations are sometimes not in a position where they have the luxury of sort of going away and just saying, Hey, I'll rewrite my system or modernize it and make all of these changes. There could be any number of factors competitive pressures, market realities, cost that just make that too much of, ah, difficult process for them to be able to just take the application and rewrite it. And so what we did is sort of try to acknowledge that and say, What could we do to give you, ah, more prescriptive solution of this, the sort of turn key, easy button, if you will to say, Take my existing monolithic application that I deliver in this classic way and plug it into an existing pre built framework. An environment that is essentially includes all these foundational bits of assassin Vyron mint. And let me just take my monolith, move it into that environment and begin toe offer a SAS product to to the universe. And so what we've done is we've printed something and were introduced. We've introduced this thing called a W s SAS boost So a W s ass boost. It's not on a W s service. It is an open source reference environment. So you essentially download it. You install it into your own A W s account. And then this installs all these building blocks of sass that we've talked about. And it gives you all this sort of prescriptive ability to say, How can I now take my existing monolithic environment lifted into this experience and begin toe offer that to the market as a sash products. So it has, you know, it has billing. It has metrics and analytics. All the things we've been kind of talked about here they're all baked into that from the ground up on. We've also offered this an open source model. So our hope here is that this is really just the starting point of this solution, which, which will solve one business case. But our hope is that essentially the open source community will lean in with us, help us figure out how to evolve and make this into something that addresses a broader set of needs. >>Well, I love the SAS boost. Firstly, I wanna take the energy drink business there. Right there. It sounds like an energy drink. Give me some of that sass boost by that at 7. 11. Craig, I wanna get the final word with you. You've been the SAS business for over 20 years. You've seen this movie before. There are a lot of people who know the SAS business, and some people are learning it. You guys are helping people get there. It's different, though. Now what's different today? Because it's it's It's not just your grandfather's sass. As the expression goes, it's different. It's new dynamics. What is, uh, the most important thing people should pay attention to Whether they have a SAS legacy kind of mindset or they're new to the game. Take us >>home. Yeah, I >>think certainly, you know, getting disaster is not the end of the journey. You know, we see really successful fast provider. Just continue to differentiate, right? And then one of the things that I think we've seen successful SAT providers do is really take advantage of AWS services to go faster. Right? And that's really key, I think in this model is to really find a way to accelerate your business and deliver value faster. Andi just sort of keep that differentiation innovation there. Um, but I would just say now that there's more information out there available than ever, you know, and not only from from our team, but from a host of people that really are our SAS experts and follow the space. And so lots of resources available. Everyone >>All right, gentlemen, Thanks for coming on. Great insight. Great segment on getting to sass, sass boost Just the landscape. You guys are helping customers get there, and that's really the top priority. It's necessity is the mother of all invention during this pandemic. More than ever, uh, keeping business model going and establishing new ones. So thanks for coming on. >>Thanks for having us, John. >>Okay, It's the cubes. Virtual coverage. We are a SAS business. Now we're virtual bringing you remote. Uh, SAS Cube and, uh, more coverage with reinvent next few weeks. Thanks for watching. Okay, yeah.

>> Live from Barcelona, Spain. It's the cue covering Sisqo. Live Europe, Brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona, Everybody watching the Cube, the leader in live tech coverage. My name is Dave Valentin here with my co host Stew, Minuteman Stew Myself and John for Be here all week. Eric Hurt, Saugus Here Long time Cuba Long friend. Great to see you again. He's the CMO of IBM IBM storage division. He's joined by James Amy's, who's the head of networks at Advanced the service provider. Guys, Welcome to the Cube. Good to see again. >> Great. Thanks for having us loved being on the cute. >> So we love having you So, James, let's start with you. Tell us a little bit about advanced to want to dig into some of the networking trends. We're hearing a lot about it here. It's just go live. >> Thanks. So Advanced are a managed service provider software company based in the UK, one of the largest software companies in the UK, providing interim solutions for lots of different market verticals, including healthcare, local government, regional government, national infrastructure projects we get involved with. As well as charity sector, legal sector. A lot of education work we do, so it's real diverse portfolio of products we offer. I'm with the managed services piece. We also offer complete IT outsourcing. So this is desktop support, telephony support, printer support all the way back into integration with public cloud platforms and private cloud platforms, the majority of which is our own >> So so Eric advanced are both a customer and a partner, right? Right, right. And so you love versus stack, these guys I presume a versus stack customers as well. >> Versus stack and customer in the Versace tack, as you know, integrates Cisco, UCS, Cisco Networking Infrastructure, IBM storage of all types entry products up into the fastest all flash raise with our software spectrum, virtualized spectrum, Accelerate Family and James's company is using versus tax is part of their infrastructure, which they then offer, as you know, to a service toe and uses. James just described. >> So let's talk about some of the big trends that you guys are seeing and how you're both responding to customers and you're responding to your customer. So we're seeing two hearing today. Lot about multi cloud. We've been hearing that for a while the network is flattening your network expert love to get your your thoughts on that. Security, obviously, is a huge topic. End end management, another big topic, something that IBM is focused on. So so James, what 1 of the big mega trends that you're seeing that a driving your business decisions and your customer's activity? One >> of the big changes we're seeing is a change from large scare enterprise scale deployments off a particular type of technology on customers are now choosing because they're informed the best fit for a particular application or particular service on that may be coming to a service provider like ourselves to offer our services products to them. Uh, or they're looking for us to roam in infrastructure service for them or integrate with a public cloud offering. So the competition of the public cloud for service providers is key. Andi, I think people were looking around a few years ago thinking, How do we compete to this well, with partnerships that we have an IBM and Cisco gives us a very compelling competitive offering, but we can turn around and say, Well, we could give you a like for like, but we can give you slightly better service because we could give you guaranteed little give you guaranteed price point on. And this is all backed with key vendor certified designs. So we're not talking about going out on developing a solution that takes maybe eighteen months to take to market. This is understanding a requirement for a quick, you know, Q and A with a customer. Our line that, too, a reference architecture that we can literally just pick up off the shelf, deploy into our data centers using the standard building brought that we use across the business so Nexus nine k seven k's or our standard bread and butter inside the data center environment. As Eric pointed out, Cisco UCS is our our key Intel computer platform that we used on DH. The store wise IBM product has been a real true success story for us. So we started off being a a mixed then the house where we would align storage requirement based with what we could find in the market. That was, that was a good fit for the store. Waste products is basically just allowed us to standardize on the speed of deployment is one of the key things. So we started out with a very lengthy lead time tio service ready, which is when we start charging for revenue on If we want a ninety day build, Well, we've got a lot of special service time, A lot of engineering time getting that ready Teo, Teo and take to the customer and then we turn it on. We can start seeing revenue from that platform with versus Stack. This enabled us to accelerate how quickly we can turn that on. And we've seen that drop, too. They're literally days through standardisation elements of automation as well. Many of our environments are bespoke because we have such a wide arrange off different types of customers with different needs, but it allows us to take those standing building blocks, align them to their needs and deliver that service. >> James James, we found the peas are often in the middle of those discussions that customers are having on multi clouds. You talked a lot about the services you build. Are they also coming to you? If if you tie into the public Cloud services or yes, maybe you can help expand a little bit on how that worked. Five years ago, it was the public loves are all going to kill the man and service providers, and what we see is customers can sort out half of what's going on. They've got to be able to turn two partners like you to be able to figure this out. >> Yeah, that's a fantastic question. I think three years ago we'd be talking to our customers and they were I am going to this public cloud or I am going to build this infrastructure. Whereas now they're making more informed select decisions based on what's right. The drive to the hosted office and voice platforms offered by Microsoft.  There's a big drive and many of our ITO customers are going in that direction, but it's how we integrate that with their legacy applications. Some of the ERP solutions that some of our customers use have had millions of pounds of investment into them, and that's not something they can just turn off and walk away  from over night. So it's how we're integrating that. We're doing that at the network level, so it's how we're pairing with different service providers, bringing that in integrating that I'm offering it to them as a solution on what we try to, we try to try and position ourselves is really it's the same experience. Regardless of where we're placing IT consumptional workload, it doesn't matter whether it's inside our data centers, whether we're talking one of the public cloud platforms or even on premise. So we have quite a few customers that still have significant presence on premise, because that's right for their business, depending on what they're doing, especially some of the research scientists. >> So you've got to deliver flexibility in your architecture, and you talk a lot about software to find you guys made it big. You move to software to find, you know, a couple years ago, actually, maybe discuss how that fits in to how you're servicing advanced another client? >> Sure. So you know, IBM Storage has embraced multi cloud for several years. No, our solutions. While, of course, they work with IBM, Cloud and IBM cloud private work with Amazon. They work with Azure Google Cloud and in fact, some are products. For example, the versus Stack not only is advanced using it, but we've got pry forty or fifty public, small, medium sized cloud providers that our public references for the versus stack and spectrum protect Now, which is our backup product number one in the Enterprise. Back up space expect from detectives Got at least three hundred cloud providers. Medium, small and big. Who offered the engine underneath for their backup is a service is spectrum protect, so we make sure that weather PR transparent cloud tearing our cyber resiliency technology. What we doing? Backup archive object storage works with essentially all cloud providers. That way, someone like James A. CSP MSP can leverage our products. And we, like I said, we have tons of public records around versus Stack for that, but so can an enterprise. And in fact, I saw survey recently, and it was done in Europe and in North America that when you look at a roughly two billion US size revenue and up the average company of that sizing up, we'll use five different public cloud riders at one time. Where that it be due to legal reasons whether that be procurement. You know, the Web is really the Internet, and go Cloud is really just It's been around for twenty some years. So in bigger accounts, guess what is now involved procurement. Well, we love that you did that deal with IBM club, but you are going to get a competitive quote now from Amazon and Microsoft, right? So that's driven it legal's driven it. Certain countries, right? The data needs to stay in that country, even if your cloud if eyeing it, it's so to speak. So the clap water doesn't have a data center there. Guess what another geographer used different. And then you, of course, still have some large entities that still allow regional buying pattern so they'll have three or four different cloud providers that air quote certified by corporate. And then you could use whichever one you want, So we make sure that we could take advantage of that. Wade and IBM We ride the wave. We don't fight the way. >> So you've got in that situation. You these multi cloud you got different AP eyes, you get different frameworks. How d'you abstract all that complexity you got, Francisco coming at it From a networking standpoint, I b m. Now with Red Hat is good. Be a big player in that that world. VM where What do you guys do? James, in terms of of simplifying all that multi cloud complexity >> for people. I think some of it is actually demystifying on DH. It's engaging with our partners to understand what the proposition is on, how we can develop that on a line that to learn their own business but more importantly, to the needs of our customers. We've got some really, really talented technicians worked within within advance, and we've got a number of different forums that allow them to feed back their ideas. We've got thie alignment between those partners on DH, some of those communities, so that we can have an open discussion and drive. Some of that thinking forward about ultimately see engaging with customers so the customers feedback is key on how we shape and deliver only in service to them, but also to the service to other customers. We have a number of customers that are very similar, but they may work in different spaces, some somewhere even competitive. So we have to tread that line very safe, very carefully and safely. But it is. It's a good one to one relationship between the client service managers technical so that the technicians we have inside business having that complete three sixty. Communication is key. That's that's that's really the bottom takes its creation >> came like youto dig into security for us a little bit. You know, I think we surpassed a couple of years ago. I'm not going to go to the cloud to it because it's not secure to Oh, I understand it's time for me to least reevaluate my security and most likely, no manage service fighters. Public clouds are probably more secure than what I had in my data center, but if I've got multiple environment, there's a lot of complexity there. So how do you traverse that? Make sure that you've got a comprehensive security practice, not just all these point solutions for security all over the place. >> Yeah, so that's that comes onto visibility. So its visibility understanding where all the control points are within a given infrastructure on how the landscape looks. So we were working quite closely with a number actually Key Cisco and IBM partners, as well as IBM and Cisco themselves directly to have a comprehensive offering that allows us to position to our customers. You used to once upon a time you had one guy, right? So we need It is from good security on your Internet. Facing viable For now, you may have a ten. Twenty, thirty of those. We need tohave consistent policies across those. We need to understand how they're performing, but also potentially, if there's any attack, attack vector on one of them. How that how someone is trying to looking to compromise that so centralized intelligence on That's where we start to look at my eye operations to gather all that information. The long gone are the days where you have twenty people sharing a room just reading streams. Those twenty people now need thio. See reams and reams of information instantly. Something needs to be called up to them. They could make a decision quickly on Active planet on DH. That's really where we were. We're We're positioning ourselves in the market to differentiate. I'm working with key partners. We have >> to do that. >> Eric, talk about your announcement cadence. That idea has a big show. Think coming up in a couple weeks. Cubes going be here? Of course. What can we expect from from you guys? >> So we're actually gonna announce on the fifth before things we want to drive end users and our business partners to storage Campus, which is one of the largest campuses at IBM, think we'll have over fifteen pedestals of demo and actually multiple demos because we have such a broad portfolio, from the all flash arrays to our versus stack offering to a whole set of modern data protection management control for storage, which manages in control storage, that's not ours, right? Our competitors storage as well. And, of course, our software to find story. So we're going to do a big announcement. The focus of that will be around our storage solutions. These air solutions blueprints reference architectures is Jane, you mentioned that use our software and our storage systems that allow reseller or end user to configure systems easily. Think of it as the ultimate wrestling recipe for that German chocolate cake. But it's the perfect recipe. It's tried. It's true, it's tested. It's been on the Food Channel twenty seven times and everybody loves it. That's what we do with our our solutions. Blueprints. We'll have some announcements around modern data protection, and obviously a big focus of IBM. Storage is been in the space. So both storage as an Aye aye platform for Aye, aye. Applications are workloads, but also the incorporation of technology into our own storage systems and software. So be having announcements around that on February fifth going into think, which will then be the week after in San Francisco. >> Great. So I'm here and trusted data protection plays into that. Aye, aye. Intelligence Machine Intelligence. And I'm also hearing header of Geneti multiple platforms. Whether it's your storage, you said our competitors now does that also include sort of the clouds Fear without announcing anything. But you guys have you know, you've seen your pictures. That's azure itt's a W a s. I mean, that continues >> so absolutely so. Whether it be what we do from backup in archive, right, let's take the easy one. So we support not only the protocol of IBM clad object storage which we acquired and allows you to have object storage either on premise or in a cloud in stance E ation. Well, we also support the s three protocol. So, for example, our spectrum scale software giant scale out. In fact, the two fastest supercomputers world use spectrum scale over four hundred fifty petabytes running on spectrum scale, and they continue ear to an object store that supports US three. Or it can tear toe IBM clad object stories through that IBM clad object storage customer. That's great using the S three protocol. You, Khun, Tear to that as well. So that's just one example. Same thing we do for cyber resiliency. So from a cyber resents me perspective, we could do things with any cloud vendor oven air cat air gap, right? And so you could do that, eh? With tape. But you could also do that with the clouds. So if your cloud is your backup archive replication repository, then you can always roll back to a known good copy. You don't have to pay the ransom writer. When you clean up the malware, you can roll back to a known good copy, and we provide that across all of the platforms in a number of ways. Our Protect family, our new products say safeguard copy for the main friend that we announced October. So all that allows us to be multi cloud resiliency as well as how do we connect a multi cloud backup archive automated tearing all kinds of clouds, whether the IBM cloud and of course, I'm a shareholder, so I love that. But at the same time, we're realistic. Lots of people use Amazon Google Azar. And like I said, there's thousands of mid two small cloud providers all over the world, and we support them, too. We engage with everyone. >> What about SAS? You know, that's one of the questions we've been trying to squint through and understand is because when you talk about five cloud providers is obviously infrastructures of service. And then there's their service providers like like Advanced. And then there's like a Brazilian SAS companies >> write a lot of data in >> there and a lot of data in there. How should we think about, you know, protecting that data? Securing that data is that sort of up to the SAS vendor, and thou shalt not touch. Or should that be part of the scope of AH, storage company? Well, so what we do >> is we engage with the SAS vendor, so we have a number of different sass coming is, in fact, one of them was on the Cube two years ago with us. They were startup in the cyber security space and all of its delivered over SAS So what they do is, in that case, the use our flash system Roddick line. They get the performance they need to deliver South. They want no bottlenecks because obviously you have to go over the network when you're doing SAS on DH, then also, what they do is data encryption at rest. So when the data is brought in because we have on our flash arrays capability and most of our product line especially the flash systems to have no performance hit on encrypt their decrypt because its hardware embedded, they're able to have the data at rest encrypted for all their customers. That gives them a level of security when it's at rest on their site. At the same time, we've given the right performance. They need tohave soft reserve, so we engage with all we pry have three hundred, four hundred different SAS companies who are the actual software vendor and their deployment model. This software's interest, by the way, we do that as well as I mentioned, over three hundred cloud providers today have a backup is a service and the engine ease their spectrum. Protect or spectrum protect. Plus, but they may call it something else. In fact, we just had a public reference out from Silver String, which is out in the UK, and all they do is cyber resiliency. Backup in archives. That's their service. They have their own product, but then spectrum Protect and Spectrum Check plus is the engine underneath their product. So that's an example. In this case, the backup is a service, which, I would argue is not infrastructure, but more of an application. But then true what you call real application providers like cyber security vendors, we have a vendor who in fact, does something for all of the universities and colleges. United States. They have about eight thousand of them, including the junior colleges, and they run all their bookstores. So when you place an order, all their air NPR, everything they do is from this SAS vendor that's based in there in the Northeast. And they've got, like I said, about a thousand colleges and universities in the U. S. And Canada, and they offer this if you will bookstore as a sass service and the students use it. University uses it. And, of course, the bookstores are designed to, you know, make a little money for the university, and they all use that. So that's another example. And they use are flash systems as well. And then they back up that data internally with spectrum protectors. They obviously it's the financial data as well as the inventory of all of these book stores all over the United States at the collegiate >> level right now. James Way gotta wrap, but just sort of give you the final word. UK specialist, right? So Brexit really doesn't affect you. Is that a fair statement >> will do? Yes. >> How so? >> I think it's too early to tell. No one really knows. I think that's that's what all the debates are about. AJ's trying to understand that on DH for us. We're just watching and observing. >> Staying focused on your customers, obviously. So no predictions as to what's going to happen. I was not from a weeks ago. I got hurt both sides. You know, it's definitely gonna happen. All right, Not happen, but up. Okay, again give you the last word. You know? What's your focus? Over the next twelve eighteen months? >> Eso all our focus is really about visibility, So they they they've touched on that. We're talking about the security for customers understanding whether data is whether exposure point saw that's all Keep keep focusing on DH versus stack on dh thie IBM store wise product underpin all of those offerings that we have on. That will continue to be to be so forward. >> Guys. Great to see you. Thanks so much for coming on the Cube and, uh, our pleasure hosting you. Thanks. Appreciate, Really welcome. All right. Keep it right there, everybody. We'll be back. Day Volante was stew Minutemen from Cisco live in Barcelona.

>> A cube at DMC World twenty fourteen is brought to you by D. M. C. Redefine, see innovating the world's first converged infrastructure solution for private cloud computing brocade. Say goodbye to the status quo and hello to Brocade. >> Welcome back to the Cube. This silken angle TVs live wall to wall Coverage of DMC World twenty fourteen here in the Sands Convention Center in Las Vegas. We've got three days to stage is over eighty guests. Lots of practitioners, execs, business leaders got a special segment. I'm bringing you today, bringing onto two thirds of the geek whispers, podcasts, Those in the story for the virtual ization and Claude Communities. No art is to guess. Well, let me introduce it's John Troyer, who's making his debut as the founder of tech reckoning. >> Thanks for having me. >> And we've got Amy Lewis influence marketing from Cisco. Name is your first time on the Cube, so, you know, welcome to the program. >> Thank you for having me on. >> All right, so So, guys, you know, we've been to a lot of conferences way we've hung out with, You know, the various influencers bloggers. It's changed a lot. This is my twelfth year coming M. C World. If you had told me twelve years ago some of things I'd be doing at this show, I wouldn't have believed you. I mean, I was one of the guys in a polo that only got out of out of the office once a year to give a presentation and, you know, talks in people about some cool tak um, and you know, social media is one of those things that, you know turn my career. Eleven. So you know what? Let's have a conversation about what's going on in the industry with kind of community influences and everything. John, maybe you could start us often. You know, Maybe if it leads in tow your new gigs? >> Sure, sure, on one on one, and things have changed. On the other hand, the same dynamics are playing out. Buying the buying cycle has changed. The buying process has changed. Customers are looking much more to their peers and not to traditional media analysts. Marketing folks, they can't find more ads. You can't send out more E mail. So what do you do? You need to get part of the conversation. We've been saying that for five or ten years, that's actually happened. Now the folks that were early on into the blogging space have turned themselves into communicators as well as technologists. We've seen, you know, their careers have have gone and all sorts of interesting places, for instance, you. But I think now that even we could talk about his art Is blogging dead? But I think now we're seeing it. We're seeing social media not as a trade or a practice practice, but simply a tool set that we all use. So that's all I'm saying is it's a It's more of a it spread throughout our organization. Not so much in one tiny niche, right? >> Yeah, Jonah, I love that point. I I I've been preaching for a bunch of years that this is an important skill, something you have to have their wonderful tools. But you've been doing community for a lot longer than Social Media has been around, and, you know, so it's peace, Amy, your influence marketing. What would please way out on this? >> Yeah, I chose the title, actually myself on purpose. To say it's not just social media, think social Media is very important, but like John was saying that to me is a set of tools. They're important platforms or important communications channels, but influencers the people who between the term citizen analysts they are unpaid analyst. But people are very passionate about technology, and they want to write on block and share, really engage their community. That's an important group of people. It's a really a buying center, and we have to find new ways to address them. So community is more important than >> ever. Citizen analysts thought, Let's focus that >> some of the >> people you know, I say some people goto event and they get it, get it, get wined and dined and they get to, you know, write about a bunch of stuff I'm like, you know you're better than journalists, you know, you'll You know you do some really good stuff and sometimes it's a little bit too friendly to the people that are doing it. So you know where do you see the role of kind of the press? You know, the analyst and the influencer? >> It's a great question I've been checking. We need to abstract the or chart. It is. It is a complicated question, but I think the traditional presses really trained and rightfully so in giving us that neutrality. So that is still a very important role. I think the analysts are paid Tio Tio, analyze particular sets, etcetera. They have nation specialty. I think the citizen analyst is interesting because they are what you don't know about the neutrality. But you do know that there are people who roll up their sleeves and really touched the technology. So that becomes a very interesting set because they really care about the technology Kazakh but could become their problem if they don't, you know, raise our voice and sort of engaged with technology and let the community know what, what the new trends are, what they need, what business needs. Our etcetera gives us a really applied version, the PR in the e R outside. >> Don't you want to comment on matter? >> I mean, these are the folks that they lose their jobs if they picked the wrong technology. So they have much more. Their discussions have it. They have more skin in the game. >> Aye, that's right. If you've got the practitioner, you know whether it be the end user sometime times it's the you know channel guy that they do that that's good, You know? What about the people inside the corporations that are also using these? >> I'm super bullish about the use of employees as advocates and evangelists in our community, both for technical education. And for the commercial part of our conversation in the enterprise space, we don't sell solutions with Russia. Your hair's a pressure and very nice calm. Give me a call. We sell it with relationships with people. I've been working on the social media since it existed, I suppose. And what we've seen over and over again is the social channels are really great for getting the word out. But without that personal component, it's like just handing out brochures. So you need your employees out there. You need your employees talking to folks. You need your employees without their representing your brand, just like they would have an event. I've seen that at something. On one hand, it's something that's so trivial that we all agree it's true. On the other hand, I don't. I think a lot of people are just realizing that now. >> So, John, you know, there's some some big companies, you know, creative certification programs to do some of this. There's some companies that just, you know, sign everybody up and, you know, it could be kind of an echo chamber or things like that. You know what? What do you see in these days? To kind of help out. You know the community >> well. There's a lot of software and a lot of programmatic things you could do. Those may be useful in terms of organizing you. It comes down to the people in the culture of the company and help much. You trust your people to go out. I think the best thing we can do is sit up platform for folks to be able to, to communicate. I think that's actually what Amy does really well at Cisco. >> X. It's, um I always talk about influence marketing as being people, platforms in content. And so I agree. I think that we sorted out some of the platform issues as we've learned about social media and grew up with it. I think that we are still working out the people in the content side and what's appropriate, how we can join together and do that and how we can creates a mute platforms may be using the tools of social tio to drive the conversation forward. >> All right. So, I mean, I got one for you. You know, how do we balance the kind of creation of information and kind of the community and fund? I mean, you do a lot of fun event you've got, you know, awful club this week. You've got, you know, bacon, stack and B bacon and bacon. I e I mean, I can't keep track of you, deport vacants and everything. And, you know, there'd be some executives here that would be like that, That social stuff. And they're playing games and things like that. So how do we balance kind of attic business value and greeting, you know, value to the community. And, you know, having fun in building community. >> No, it's a great question. A couple of years ago, I got a text in the middle of the night that said, Please explain to me how the bacon is a marketing play. Please explain this and you know, I need a power point slide. So if you've never had to explain, be bacon on the power points, I for that challenge out to everyone. But I think in the last couple of years people started to see it more and more as we're, uh, we're similar to the sales role, and that's how we've sort of changed the language. So I perform a sales like function, except I don't carry a quota. So it is about building the relationship like John was saying, and it is about balancing fun with your intent. So I think that if you create a fun environment, if you create an openness and willingness to listen, then the good things will follow. So you form the relationships of people. You open up their ability to create content with you because they don't feel under attack. They're ready to share. And again, it's it's kind of a magical formula. Be nice and create opportunity. >> Yeah, so >> I think we'll part of it's a generational ship. I think part of it a generational shift and part of it is a temperamental she So tradition again, going back to sales traditional enterprise sales. You might go and play golf with somebody, cause that's what you enjoy doing for our kind of geeks. Our golf is eating bacon and talking about the duplication strategies, right? That's where we're having the most fun. So it's It's just it's same sort of thing. Just a shift in generations. >> Yeah, I wonder if you know what, what role this community help in kind of careers. You know, I think you know, we're talking so much of these shows about, you know, if your storage admin. If you're networking admin and you know you're down there, you know, configuring Luns or setting up the land, you know, we're going to have a job in a couple of years because automation is gonna change. You know, how much does the community help in kind of those career paths and education? >> So, John, I think we should interview stew on this one. Should we have the geek whispers takeover. I think this is your great example. You've talked about you, you were on a career path and we hear this a lot, and when you raise your hand to volunteer, we sort of jokingly call the spokes uniforms. You both really enjoy the technology and like to communicate about it. When you raise your hand and make yourself known to the community, to your employers, to the world at large, it gives you different opportunities. And I think I don't think you go into technology really without wanting to have an evolving, exciting career. So I think that he's becoming proficient in these tools. Joining your community is an opportunity to learn from your peers to get back to your peers and to raise her profile and open yourself up to the possibility of a new opportunity or a new idea or different engagement. A new way to learn >> In today's business environment, communication is a key part of whatever you do, even if you're the guy sitting there configuring the lungs, because if you're not communicating with your teams and the application teams and the storage of network virtualization team, you're not going to succeed so I think that's an important part of it, right? Being a communicator, absolutely critical and art. Barney. >> All right, so either one of you feel free to answer, but I think back to my early days, you know, two thousand eight, I was so excited when I got invited to a couple of conferences. A blogger, you could kind of get a pass, and I would, You know, ten might take my own vacation time and usually spend that on expenses because my employer at the time didn't get it. It was this innovation conference in, like, in a New York City with four hundred people, and it was like, kind of amazing. I've seen people go to B m world on their own dime where they can get a pass. I mean, you know, it's great to see when you when you got the passion. So I guess the question I wanted to ask is, you know, with companies today, who should they be inviting? How do they do it? You know? You know. Is it you know, the blogger Or is it the, you know, empty Alexis co expert? You know, bm where be expert, you know, What? How's that? How's that changing? Or is it >> changing? Well, I think what you've seen happen over the years is something that was a little more unstructured, which was a kind of blogger relations program. Working with both customers partners, employees in your ecosystem has turned into something a little more formal. We created the V Expert program in two thousand nine to formalize what we were already doing. It's an analogy to the endless relations, press relations, investor relations, sorts of programs. So I mean, it's it's it's a little more buttoned up. It's a little more of a membership thing, but we I know both of DMC and BM where and it Cisco, Francisco champions to try to embrace all the folks that are out there blogging. I think you know, if you're a market or you need to make sure that you're keep your eyes open and you don't just talk to the people that you've gathered in your living room, Bye. You know, a lot of it's pretty easy if you're enthusiastic about technology, if you're engaged with the technology, if you put some effort into it, it's actually pretty easy to get involved with one of these programs there, there, there and there, there, fourth of people in them right there. They're not there to say the glory of the emcee and glory of Cisco and glory of'em, where they're there to help you with your career. They're there to give you tools to give you networking and, you know, hopefully get you to places like this. So I encourage everybody that that's interested in starting, you know, go ahead and get started. It's easier than you think to get involved. >> I agree with that, and I think that way want to be almost like an airline program that you'd actually want to participate. And it's sort of my job like this is a customer service activity, and I often talk about if you talk about the large pool of influencers. Maybe they haven't identified yet. Or maybe they prefer to stay independent. Or maybe they do have interest in a lot of different technologies. Me for them to engage in one of these programs, that stolen, important set of people that you have to deal with the mark, you know, and again set up these blogger days have longer briefings. But like John was saying, When you have the group of people that you name and give it a program name, this is a little bit of inside baseball if we don't talk about giving program a name and funding can follow. So if you're working in a corporate marketing environment, it's really important to explain to people that marketing structure behind what you're doing and when you treat them as a class, it gives you some advantage is you can scale out a little easier. You can provide more assets to those individuals, and it frees you up to Dio. What I love to do, which is is to really engage with those individuals and create content with them. So, >> yeah, so how is engagement these days? You know, I think back, you know, that you know, ten years ago, you talk. You know, one percent of the community would, you know, be doing almost all the contribution. Ten percent might be a little active and everybody else's lurker. You know, when we founded Wicked Bond Day, Volonte actually has on his business card that he's a one percenter which goes back to you know it. It's, you know, the one percent that causes all the trouble, the one percent that causes all all of the commotion. So, you know, with this wave, I mean, we were founded off of, you know, economics in crowd sourcing and everything else, and the Cube is all about, you know, sharing information. We put it all out there. We want everybody to contribute and, you know, give that feedback. You know, How are we along now? You know that that journey to get more people involved. >> I think the opportunity is there more than ever. I think you're right. I mean, there's always gonna be a percentage of people who want to raise her hand, the class that want to give up their PTO to go to a conference that that had this other life they just can't help themselves. And so in some ways it's finding the most impassioned and giving them opportunities. But I think that with the platforms and the scale, there is a greater opportunity for people. They don't want to start their own block. For instance, one of the things we do it Cisco champions is allowed people to guess, block or allow them to come post a podcast. So I think there are more more ways to and there, you know, that's one example. There's lots of other groups that provide people again a little bit a dose of it so they might not want to run a full media company on their own. They don't wanna build Q, but they want to participate. And I think that we have so many more opportunities for them to do that that we're seeing group. >> We're seeing platform ships over the years. I think we as technologists human beings have a tendency to forget their past relatively quickly, as people have moved from the MySpace world to the Facebook Twitter world. I think actually, we're headed for I don't call it I don't want to call it post Facebook, but it certainly is. A multi platform world made >> it just like >> it's a multi device world. We're not opposed PC world in that. I think you're seeing the rise of more specialized communities. They come back again from from our from our origins back ten or twenty years ago. I think we're seeing that people want more deeper engagement along the company. A lot of the report building and kind of conversation. And hey, how are you? Goes on on Twitter. But I think people are really looking for a place where they can have a better conversation, more interaction, more lasting death that might not be on their own. Blogger in their own kind of indie web sort of style, roll your own block. But there are more and more platforms that people are making available for this kind of connection again. What was once niche eventually permeates the whole >> yes. So, you know, the concern I have is it's tough because it is so dispersed right now, you know? You know, I love Twitter, you know? Hi, I'm stew, you know, on Twitter. And I know you guys are big on it, too. And I don't love the multi platform discussion. You know, I always love when you dropped that kind information on the community. But, you know, how >> do we How do we get that >> depth? It's one of the things I always worry about is, you know, people will read the headline and, you know, just react at it and, you know, they might even share it a bunch, but they haven't read it. Uh, so how do we get that deeper engagement? Deeper understanding. I mean, you know, I always say, you know, the I'm too busy is a poor excuse because, you know, you know Michelangelo and I'd sign that many hours in the day way we did and, you know, sure they didn't have their phone buzzing all over >> the place. >> I actually think we should do less. Not more. I think I think too much information, too many channels, too many corporate channels, too many personal channels, too much bad content. The world does not need more crappy content. So whether you're a individual, blogger or marketer, I'd say just turn the dial back a little bit. Did work on better, longer pieces that add more? I think that's the only way that we can shift the conversation. >> Yeah, long for love it. Oh, no, absolutely. I still read so >> well. It's a curatorial function as well, that we have to be responsible. And that's yet one more way people can participate. We see people rise and in the community because they're really great curator Sze, because they syndicate the content in ways are interesting to others because time is of a value so that becomes a real asset. And the skill is Well, >> yeah, great. Great point. Could you know, so many times I'm like I really like to do a thousand word post on this, but, you know, sometimes all I'll come out of this show and take, you know, I did a year ago. I did it. I didn't article on the federation. You know, the ZPM were pivotal and coming out of the show, I've got a lot of new data, and I could really quickly take some photos. I've done. Takes some of the notes. I take some of the tweets and, you know, put together an order. Won't take me as long. I mean, I'll probably do it on the plane ride home. So what I wanna ask next is, you know, you guys see a lot of things out there. What coolest thing you're seeing either at a at a conference or event or you know what? What? What's catching, right? What? What's interesting? Done. >> There's a whole new side out there called Tech, right? I don't know what's cool out there again. I'm seeing multi channel multi, a lot of experiments. There's some cool stuff going on with the indie web. There's I mean, everything is mobile. I don't know. There's just a lot of places. It >> sounds like you Let's give the plug. Integrity has finally cool things and, you know, solid. But something >> like that tech reckoning is a site that's gonna bring. It's an independent site. It's not associate with any vendor. It's going to bring some of the community and enterprise community together to talk about some of these things about Where is it going as a whole? Where's technology going, where our career is going to try to help us get to whatever this you know, it is a service. Third platform, Whatever you wanna call it, where the heck were going? It looks pretty interesting, and it looks like it isn't gonna be quite the same thing. So we're trying to bring together a set of people and just tackle some of those problem and also work together and collaborate. It's so much easier with open source with cloud. With all the tools we have available, it's so cheap and easy to build new pieces of technology, not just a type of each other words online, but to actually build stuff that I'm very excited about. The power taking going far. This from open source, right? Taking the power of people to come together and build cool new stuff. That's what I would like to. >> Still, I'm just angry that you scooped Matt and I on getting to interview John first about >> tech recognition. So, Amy, you you do some cool things that some of events we talk about, the waffle bacon, you What have you seen out there that that's kind of interesting? Or, you know, how do you find some of the cool new ideas? >> Yeah, I think you always I'm working with a really talented events team right now. And I think one of the things I've seen them sort of transform is that social is not other, you know? And we're seeing the social and this concept of community permeate and really think about our audience to really engage that core base, those those tech enthusiasts, and to see what you can do to in engage them. So I'm saying it in real life and in these community platforms. So I think that's been one of the other great trends is watching people band together and various kinds of consortiums. I won't name names, but there's a few folks outlook community. We're seeing a lot of this happen where they're sort of grouping together, and they're saying if they pull their resource is what happens, they might be able to gather enough money to go to a conference or to fund a buddy or to get a hotel room that they've got extra spaces somebody can crash. So I'm saying it's very cool, sort of stitching together opportunity and working together to learn more. So again, the combination of the platforms, using the technology and then in real life connection. >> All right, so I've been asking all the questions here. So before we wrap up, you know, Amy, anything you want, Johnny, when as me, John same, we throw it open. When Whenever >> you first signed up for your Twitter account, did you think it would lead you here because you have the best Twitter >> account? No, actually, a friend of mine for me and Steve Todd, who was blogging before I was, and he said, You know, when there's trepidation when you're gonna get published and you never know where it leads. And we were talking about this after he and I were on the stage at Radio City Music Hall right after Bill Clinton had been on because they brought the bloggers down when we were there. And it's like, Come on, you know, I'm, you know, I'm an engineer by training, you know, I've done. You know, I've done some sales. I've done engineering. I've done you no operations. Technologist is hard. So you know, some of the places the people I've met. I mean, if you just reach out to people, it still, even though there's so many people on Twitter, you know, the people that right and our authors and bloggers, If you comment or you reach out to them, a lot of them reach back. I mean, you know, I still amazed at some of the people I've met get to rub elbows with. No, just just have had a blast with him. So >> get another one. So do you think unicorns can be trained? Do you think people have to be born with the skill set, Or do you think you can be a uniformed rancher? >> No, I think I think I think they could be trained. You know, it's absolutely it's Ah, it's a tough skill set. I mean, you know, doing video is not easy. First couple of times you do it. It's different there's there's all these muscles. You know, Writing is one of those things that you know. I thought I was an okay writer, but hadn't done a lot of it. They're things you do. So try it out. And that thing I tell you, you got to stick with it for a while. I thought Twitter was pretty stupid. First Go on it. But, you know, I stuck on it for another six months and have some fun with it. No, here we are six years later and you know it is a lot and, you know, blocking of writing and blogging and everything else you know all over. I >> like the muscle memory idea. >> It's hard. You were on camera, have remember not to scratch my face. Strange. He'll set, I ask. I actually, I'm seeing a lot of interest in short form video. I know the kids are all doing it. I mean, obviously, we're doing it here. You do it. It's part of your practice. But in talking with people about our new activities, it's just so easy to take a chair. I think that's actually, even though it's been coming up for years, I think where I think that's an interesting thing >> on all right now, I'll give one of those inside tips videos. Great. Some people don't like to watch video. Yeah, broadcaster great. Some people don't like to listen to him, you know, writing's great. Some people won't read. So you know what? One of the early lessons I had is when I was, you know, being a, you know, active member on standard evangelizing of solution. I did it everywhere it you know that give presentations that shows you put it up on slide chair. You do you two videos, you blogged about it. You talk to everybody, you bet that you can everywhere. And you know, it just permeates out there. It could be a bunch of works and then there's tools that are out there. >> They're all connected events, right? I've discovered recently, and I can't believe I just realized this. But it was with the conversation with Amy on our Christmas broadcast that even though I've been part of an online group for years, I'm part of digital marketing for BM. Where for years, Uh, actually, most of my work. Half of my work is off line having my workers meeting people in person, getting to meet them and connecting that online and offline. And the synergy there is just is immense. >> Yeah, absolutely. I mean, other than the keynotes, my phone stays in my pocket for the most time. Unless I'm going between events. It's the in real life and nearly getting to know things. I was joking, You know, Twitter went away. Tomorrow might be a little sad, but I can connect the most. All those people, we got him on LinkedIn, Facebook and, you know, email. I still use something. Don't taking their holds. Absolutely. So you know, to wrap. I guess if you want to, just You know what people find more on your podcast. Find your website. You know Amy, Like it start? Well, >> where >> are Equus? Versace, of course. Geek hyphen whispers dot com on way, published every week. So give us a listen. See what you think. And I'm >> Matthew Brender. Sorry you couldn't join this time, but it's a lot as it were. A DMC world and you two are here in Matthew's. >> It's hard. We're going toe to toe. It's true. We're going to record with him like it's a Max headroom figure on a yes tomorrow, so and also I'm on Twitter as calms mention and I block under that same constantly dot com girls have engineers. That's true. I have engineers, unplug dot com as well. And now sixty second Tech, the short first on the popcorn version >> and I. J. Troia on Twitter and tech reckoning dot com. I went inside. >> Hey, Amy, John. Thanks so much. We We love taking the podcast. Inception. Sile inside the Cube. Look forward to seeing you lost events connecting with the community and everybody. Definitely check out their stuff. I'm at stew on Twitter with yvonne dot org's is where most of my articles go, and, of course, silicon angled on TV is where you can find all the video. Thanks for joining us. We will be back with the rest of DMC world covered.

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