>> Announcer: From Chicago, it's theCUBE, covering Veritas Vision Solution Day 2018. Brought to you by Veritas. >> Hello, everyone, welcome back to the Windy City. We're here with Veritas at the Veritas Solution Day. You're watching theCUBE, the leader in live tech coverage. Kevin Bogusz is here, he's a senior information engineer ECECT, a telecommunications company. Kevin, thanks for coming on theCUBE. >> Thank you. >> So, this event, a very intimate customer event. I don't know if you were at Veritas Vision last year, big, huge customer event, many thousands of people. It's an intimate customer event, 50, 75 people. What're your thoughts on, you know, you took time out of your day to come here, why? What's here for you? >> Get a better understanding what Veritas can do for my company in terms of backups and stuff. We do use Backup Exec in my organization. I've been there for four years, and understanding what you guys do and everything, 'cause we're back when you used to be Symantec. Highs and lows, with tech support, whatever, but other than that, it's been great. >> Okay, so talk about ECECT, what's the company do? >> We are the parent company of NEC out in Japan. We do, in the beginning we developed telecommunications for companies ESP via CISCO, then it came us. for companies ESP via CISCO, then it came us. Before I start they gave me some background terms on how they did stuff. They were absorbed by NECJ and after that we went through a reorganization about a year and half ago. So we have grown from 50 people in a small office in Lincolnshire to having almost four to five offices, from all way out to Washington state all the way out to Cheshire Connecticut >> And you're a service provider or-- >> Not a service provider. We're pretty much a development firm. We're all development, they used to do stuff in Lincolnshire, they used to sell stuff before they got absorbed by NECJ. They used to do the sales, they do the development, they did everything in Lincolnshire, before the big dot com bust, which I was told when I got brought in. After the big dot com bust, it was who was going to take us over, and that became NECJ. >> When you say development, you mean product development? >> Yes. >> Okay great, so in your role as Senior Information Engineer you look after lot of things, but one of them is course is data protection services, right? >> So immediately when I hear four or five remote offices you've got distributed data all over the place, you got to figure out how to protect that. So, how do you protect that? I'm really interested in what's changed. You and I were talking before about, remember the virtualization days. You got to rethink everything, in terms of data protection 'cause we didn't have as many servers physically. Things are changing again, so how have things changed? What's changing and what are the big initiatives you're working on? Paint a picture for us if you would. >> Well, in the beginning, we weren't really heavily into virtualization, now we really have. It's actually has saved on a couple of positions, we actually had to move our ticket system over to virtualization because the servers bought the guy. So we took care of it, so we moved it over to virtualization now we are backing up, with Backup Exec, being able to do either files, folders or do the whole virtual. Also we actually did high availability to provide us with more protection everything else, plus in addition to what we are asking to what Veritas can do for us. >> Okay so virtualization is relatively new for you guys >> Yes. >> And what about Cloud? You hear about things like Cloud and Multicloud, you doing much in Cloud? >> Not that much in Cloud, pretty much it's, if it has to been in the Cloud. We have slowly developed going towards the Cloud and what I've have heard and what I've have seen from my manager. But right now, we're kind of backing off just a little bit, just to see is it approved by the big company or can we go on our own whim, and do that sort of thing. Because I have just developed something a clone of Dropbox. At the organization because Dropbox is not considered legit at my company, so I had to come up with a new idea. >> Okay, so let's talk about some of the other trends, that might be driving your business. DR, presumably is one, everyone talks about well, backup is insurance I hate buying insurance, I want to get more out of it. Even though disaster recovery is insurance too it's important insurance, and so, are you trying to extend your backup and recovery, into disaster recovery? >> Yes, we're-- >> How are you doing that? >> As of right now, we are using Backup Exec. There's a little hiccup here and that I am till trying to figure out how to fix. But we do have the DR between two sites in the beginning that my manager wanted to roll out. And we do, do files, folders, you name it even including virtualizations. We do have a secondary server that does the tapes also which we are trying to transition into the whole DR, So, we can do files and then after that we can do the whole tape. Dump at the tape and then send it off to iron them out. >> Your hiccup is a technical issue? >> It's a technical issue, but other than that, we're trying to figure out, what's causing it. Because one side we'll go from perfectly being okay, but when we try to send trillions of data over to the other thing, it mostly turns to the network almost. But right now we are trying to figure out, is it network based or is it something else. >> What was the challenge, right? 'Cause you've done all this distributing data. And you got to make sure it's all consistent. You know, you think about pointing time copies. When things are distributed all over the place, which is the point and time? So how are you sort of dealing with some of those challenges? >> Ways to dealing with that is pretty much figuring out one prime example trying to deal with that was we had our technical publications people and I got a message on our corporate messenger saying, "I kind of screwed up, can you help me?" And I got go, "What did you do?" I kind of over wrote this, and I'll do is, go through the thing, go through the management thing with Backup Exec going what day was it? I went did this day. How far back do you need to go? Oh I need to go about a month. Okay, here you go. >> And so when you do a recovery like that, how do you validate that the data is consistent with what the business user wants it? It's the business user's responsibility presumably. They have to look at it and say, okay, Kevin thank you. You got me what I needed or can you back a little further? >> That has happened too. What I do with my people at work is that especially with the technical publication people is I ask them okay, what happened on this day? Oh, I overwrote this. Okay, from that point in the past, what haven't you written over? and how far can I go back? Oh you can go back this far. Like, okay, here's your date range, I gave you these two files. Oh, yes please recover it, and I go okay, I got to pull on these files and folders, here you go. >> So what are you looking for in a backup software? I did a little sort of preview upfront and the market's exploding. >> Yes >> You seeing some companies raise hundreds of millions of dollars, obviously Veritas is a leader along with three or four of others. They have most of the market. Everybody wants a piece of that action. So, I'm sure you're getting knocks on the door everyday. You are getting inundated emails, switch to us. So what do you look for in a data protection vendor? Why Veritas? Are you are sticking with those guys? Are you are thinking about switching? Maybe give us some color there. >> Right now, with Veritas we have had... before I started they use to be with Symantec and then Symantec got brought up by Veritas, which what happened. So they've been with this company, in the past why I have been told is, they've been with Symantec since Backup Exec 14. Like way before the Backup Exec 2015, the latest one just came out. We been looking at Veeam. At that time Veeam was looking as, all that we do is virtuals. Okay, that kind of helps us but our main thing is if something bad happens, can you do files for us? No. And I've been inundated with them through TDWC say, Oh, so and so can help you, I'm like, "Do you guys do virtuals?" Yeah! So, what has changed? I've kind of stacked with Backup Exec just because I used over the four years I've been here. I used that before in a previous company. So I have some background but other than that, I've seen a thing where, I've been forced with some of the applications at work I've have to gone to Open-source. I have to gone to Winbond 2, I've been going to Red Hat Linuz Enterprise. And the main concern that I have is, yes we can do Oracle and everything else for SQL. What about my SQL Server? Oh we don't do that. So I have to do a virtual machine back up on the virtual. >> So we were talking to Veritas technical people they claim, test this with the customer. They claim they can do a lot of different used cases you mentioned MySQL, they talk about being able to do NoSQL and other unstructured data, where as some others might have to partner with a specialist. Do find that that Veritas actually has that kind of harden stack across lot of used cases? Or would you like them to do more? >> I would like them do more, because I gave them one scenario, where we've actually used one of our test clients. We do test clients type of stuff called TestRail by Gurock. And I've asked them multiple times I have big SQL database and we're bound to. How can I back that up? And I have asked multiple times. Oh, all we do is Oracle. And I go, I understand my SQL is opensource but I know there's post cres. Post cres is like my SQL, it's like a fork of it but at least, give me that ability. >> You mentioned you're a Red Hat customer as well as others but what do you think of IBM acquisition? Announced acquisition of Red Hat does it make you nervous? >> It doesn't make me nervous, it's you're going back to the days of you know the big IBM, we used to be big and they started branching out, selling off stuff to Lenova, all that type of stuff. I just see them going, oh crap! We kind of sold off bits and pieces here. We're going to come back. >> Dave: Shrink to grow. But as a customer of Red Hat, you're not concerned? You feel that Red Hat's going to stay pure? >> If they keep the status quo of that they have done and everything, don't mess with anything, anything like that be able to have like consumers play with what there's out there like Fedora, go right ahead. Do whatever you want to do. If you got the money, the burn, go ahead and do more development and stuff. I would love to see IBM do more with Red Hat. >> So it's awesome to have a practitioner on, who knows where all their skeletons are buried but you still sticking with Veritas is from what I am understanding. I'll give you the last word, final thoughts. >> Veritas to me in a nutshell, they keep on innovating what they have been doing and making the product better, with what they've been doing through the previous versions, that I have dealt with. I think they're going to, in my opinion, they will probably out beat Veeam in terms of back up stuff. 'Cause I know they are the two big players. As Veritas and Veeam are doing the back ups and right now Veeam is probably playing catch up because ever since they told us, "Oh, we are do files." Instead of doing just virtuals. >> Well, Kevin thanks very much for coming on theCUBE, It's great to have you. >> You too. >> Alright, keep it right there everybody, we will be back with our next guest right after this short break. You're watching theCube from Chicago. Right back. (techno music)

>> Announcer: From Chicago, it's theCUBE. Covering Veritas Vision Solution Day 2018. (funky music) Brought to you by Veritas. >> Welcome back to the Windy City everybody, my name is Dave Vellante. We're here covering the Veritas Vision Solution days at the Palmer House Hotel in Chicago right near the lake. You're watching theCUBE, the leader in live tech coverage. Lurlene Brown is here. She's an independent security consultant with CJJFC. Lurlene, welcome, thanks for coming on theCUBE. >> Thank You, thanks for inviting us. >> So CJJFC, what are you guys all about? >> Well, basically we're re-startup company, small, independent company. We work with SMBs and non-profits in dealing with their security issues basically. No matter how big, how small. It's the small companies that have one of those things that's, well it's not going to happen to us, or if it does happen to us, what do we do about it? Because they hear about the big breaches but it can happen to a small company as well an SMBs, especially if you have limited budgets and stuff, how do we deal with that? How do we deal with ransomware? How do we pay it off? A lot of questions and stuff like that that they are really concerned about, but a lot of them have the attitude that it's not going to happen to me, something like that, but it can happen. >> There's a lot to talk about there, so let's start with small business. Small business, there's often times not even a CEO, it's an owner, and the distance between the owner and the IT is very short. It's a flat organization. Like you said, they have so many things to worry about, the last thing they want to worry about is security. A lot of times they'll have the attitude of, well, I'm not really a target, which is, well yeah, you are. But let's hope. (chuckles) And a lot of them just clearly don't have, they don't have a SecOps team. >> That's true. >> Many of them just rely on cloud, they have a zillion different SaaS products. They'd rather not have IT. So that sort of paints a picture. >> That's true. >> How do you help them? And do they contact you, do you contact them? Both? >> Well, it goes both ways. Basically a lot of them don't even have an IT department or an IT person. They're going by somebody knows how to work a computer, turn it off and on. Make sure the stuff is backed up. (laughing) >> Fred's really good with this, ask him. >> And then turn it off at the end of the day. So you have to deal with that. You also have to deal with, if they do have an IT department, it's one person that's going to deal with a whole lot of issues. Back up, where is it going to go to? Do we have a cloud provider? If we do, who is it? What is it? Do we have anything else? Do we have on-site premise or off-sites? So it's a lot of stuff you got to do. And the main bottom line is budgeting. Do we have the money or the budget to get this stuff that we need, that we basically need in order for us to survive? Because it boils down to, if you don't have and then something happens to you, something major, a crash or whatever, do you have the backup? Do you have something viable to say to your clients, oh, we're okay, we got your data and we're secure, we can go on with business as usual; or will they just go off and find somebody else? >> So we always talk about on theCUBE people, process and technology, bad security practices by users can always trump good technology. So I presume a lot of your consulting is around people and processes. >> Mm-hmm, that's true, that's true And a lot of it is in transition, I'll give a good example. When Windows decided to go from XP to 7 and 8 and all this stuff, there was a big brouhaha about it. Some people still want to deal with XP. They don't want, because they hear about how good Windows 8 or 10 is and stuff like that. But a lot of people, it's a slow transition for a lot of people to move over from XP because it was very dependable, you didn't hear a lot of problems out of it. All of a sudden you hear, oh, Windows 10. We got some issues, we got some stuff we got to fix, and it kind of is like a panic attack mode. You're in panic modes. Do we want to go back to XP or do you want to, you know, one of our records are in XP and we want to go to 10, will they transfer over? How secure is going to be that? How secure is that? So it's like that kind of example. It takes time for people to slowly migrate from one thing to another to make sure it's safe and it's dependable. And also, it's secure enough, they can be comfortable with it so when the next phase comes up, they can be a little bit more comfortable and say, well, okay, we go to Windows 12 or something like that, and then we'll be okay from 10 to 12 and have no problems with it. >> So that's an example of just basically having core infrastructure that's kept up to date, you're up to date on patching. This is basic security hygiene. There's also the perimeter, and we always hear, well, people spend a lot of time and effort and money on the perimeter, but people are going to get through the perimeter. Phishing is a huge problem. >> Yes it is >> The threat matrix with mobile, you got a zillion mobile apps, and it's impossible to keep them up to date. So are small business owners, which I presume is your primary discussion point, how aware are they of this problem? On a scale from one to 10, is it a two? Because they have so many other things to worry about. Or is it escalating up to six, seven, eight? What do you-- >> It depends of the company. Some are twos and some are fives and sixes. One size doesn't fit all, and that's one thing they have to realize, that one can do more than the other and some can do less than the other. It all depends on the company, their attitude and it boils down to trust. Do we trust ourselves enough to go into that next phase of updating our security or updating our software and all that stuff, the patches and stuff? Do we have the equipment to do, to have that ability to do that as well too, because you got to look at your budget costs and your security. That goes hand-in-hand. >> Backup and security used to be largely two separate domains, sort of in their own little islands. They're certainly intertwined today. Why is that, and how are those two worlds coming together? >> Well, I think it was a gradual process because everybody wanted to keep things separate. But they found out there's a whole lot of commonality, a whole lot of links that they finally came to realize that it's together, dealing with security, because if you didn't have security we would have more than enough breaches than we have now. Especially with small businesses, you can't afford to have a breach because that makes or breaks your company. So you have to look at that and say, well, we need that. But like I said, within the perimeters of your business. Some can afford more, some can afford less or just stabilize what they have now. >> Mm-hmm, okay, so let's talk about ransomware a little bit. It's in the news. As a small business owner, you're like wow, oh god, I hope that never happens to me, but a lot of times they're thinking, well, that's never going to happen to me because I'm the small guy. But is could happen. >> Oh yeah! >> And so what do you advise people to do? You're trying to create air gaps. What role does backup and data protection play? >> Backup is a major thing especially if you have a lot of old data and you want to make sure you have that because once its lost, its lost. A lot of people are not really familiar with ransomware. They hear about it, they think oh, my, I have to, it's just like anything else, like if you kidnap somebody you hold them for ransom. You want this amount of money in order for them to get this person back. Ransomware is the same thing but you're using bitcoins instead of money. Well, it technically is money but a lot of them don't have that thing about it's not going to affect me. Like you was talking about earlier. Does it affect me? How will it affect me? I'll read up more about it. A lot of people have not really read up about it. They hear the word, it's like a buzz word and they say, oh ransomware, what is that? Is that a new software product? Or is that a new something like that, you know? So they have to really keep informed and keep up with what is going on, especially in small businesses. The possibility is, I think, is more greater than big businesses. Because big businesses can recover, small businesses can't. >> Big businesses, they've got the resources, they know what ransomware is, they maybe created some kind of air gap between their data center and their off-site. They've got something in the iron mountain and archived, Maybe they've got stuff on tapes. Small companies are like, they don't even think about that stuff-- >> No they don't, what resources do they have? Or do they have enough resources as well? And have they kept up with the different kind of resources that are available, especially gearing towards them? >> What's your relationship with Veritas? Why are you here? You're not a customer, you're not a big gold partner but what brought you here? >> Well, I want to see what's going on with Veritas, I've heard a lot about it. And we are here to get some information and how we're going to relate to what we're going to be dealing with future customers or present customers and stuff like that. So that's basically what we're here for. It's just to gather information, sort it out, how it will affect small business and non-profitS, and how it can help them and benefit them as much as for larger companies. >> My last question for you is could you summarize the advice that you would give to a small business owner or a non-profit, MD. What do you tell them in the context of security and data protection? >> Backup, especially backup and do your homework. A lot of them, do your due diligence because it makes or breaks you. >> And so they listen to that advice? >> Some of them do, and some of them... It's up to them. I have to say, everybody is an individual, you can't say, but just look at what happens to other people, find examples, talk to other people that you know and do your homework and backup, backup backup. >> Ignore that advice at your own peril. Lurlene, thanks very much for coming on theCUBE. It was great to have you. >> Thank you very much for inviting us. >> You're very welcome. Okay, you're watching theCUBE. We're here at Veritas Vision Day in Chicago, we'll be right back after this short break. (funky music)

>> Narrator: From Chicago, it's theCUBE covering Veritas Vision's Solution Day 2018. Brought to you by Veritas. >> Welcome back to the Windy City everybody. We're here covering the Veritas Solution Days in Chicago. I'm Dave Vellante, and you're watching theCUBE, the leader in live tech coverage. Robert Swanson is here, CUBE alum from DC Vast, he runs sales at the organization. Great to see you again, thanks for coming back on. >> You as well, thanks for having me. >> You're very welcome. So last year we were at the Aria in Las Vegas, we talked a lot about Cloud and the big tent event, now Veritas is doing these Solution Days, going out to where the customers are. It's probably good for you 'cause you're Chicago based, right? >> Absolutely, yeah, it's good to have the event here in my hometown. >> So how was this for you today? What'd you learn, what's the conversation been like? >> Yeah, no, it was a good morning, I like having the regional approach, a little bit more of an intimate event, had a variety of customers here and colleagues of Veritas as well. It was definitely a great event this morning. >> Lot of hot stuff going on in data protection. There's Cloud, there's multi-Cloud security and data protection are kind of coming together. The distributive data center on the Edge, new ways, new modes of protecting data. What are you seeing as some of the big drivers out there as you talk to customers? >> That's a great question and you really can't avoid the subject of Cloud. At first I think we looked at data protection really as, excuse me, Cloud, as an enabler for data protection so thinking about on-premise data and how the Cloud can help protect that. Especially for mid-market companies, it really allowed them to do some really cool retention and disaster recovery things that they might not have been able to do before or afford to be able to do before. Now we're looking it more about, alright, there's workloads in the Cloud, there's Cloud native data, what do you do with that? The Cloud providers are guaranteeing you or providing you some SLAs or guidelines around availability but that's not backup so now what do we do with the Cloud native data? Really though, as workloads start getting put out, not only into the big hyperscale or Clouds, but into Office 365 and different file share services, and in SAS applications. It truly is IT anywhere now which really creates a challenge for data protection. I mean, I feel like data management and data protection, the complexity and challenge of it has just grown exponentially in the last few years because now there is important, sensitive data everywhere that companies have to figure out how to maintain and protect and secure and really work for them. >> Wonder if you could talk about just your businesses, the whole partner channel is just fascinating, something we've been tracking now for a while. Cloud was sort of a shot across the bow to a lot of business models. It used to be, hey, I'm going to take a bunch of margin, and resell a product, and buy a boat. But that's changed, you can't just be a quote unquote box seller, that's a metaphor just for reselling somebody else's technology. You have to be a solution provider. So Cloud was in one regards a threat, but it's become an opportunity. How have you guys responded? Talk about the shift toward a solution mindset. >> Yeah, no, you're absolutely right, it really is. The channel's at a bit of an inflection point with the Cloud and contrary to some popular belief, it's not our mission as a channel company to resell hardware or some piece of software. It's getting more and more important for our partners to be people that can be companies that can offer us technology to help kind of fit in to our model and not necessarily vice versa. So now... the Cloud providers have changed the, you know where the abstraction layer occurs and there's so much automation out there that some things that we might used to provide services or manage services around low-level sys admin type task, keep the lights on kind of things, are done in an automated manner right now. We really have to redefine what we do for our customers and Cloud is important so it's really helping customers identify, where is the appropriate place to run a workload? What's better on PREM, what's better in the Cloud? Make sure you have that data portability. We have to be able to provide them guidance and services and really help in that regard as they're navigating it with us. So helping them identify where to put things, how to protect things, how to manage the data, and really how to optimize the spend as well, is something we've kind of pivoted towards. >> It's becoming more complicated. Okay, it used to be, I've got an application server, I'm going to bolt on some back up because I've got to back up the data, okay, done. Virtualization changed things quite a bit but now you've got Clouds, you've got multiple Clouds, you've got SAS, you've got distributed data. You've got to worry about, okay as you were saying, where do I put that data? You're thinking about recovery. How fast can I recovery, so where does that recovery data live? And then, who's managing this whole thing? So I would think there's a huge opportunity for you guys to come in, consult with customers, architect solutions that actually address every customer's different, their unique situations. Maybe you could discuss that a little bit and how you're helping folks. >> The lines are really starting to get blurred too on what you do with data. What's securing it versus protecting it, versus backing it up, versus replicating it, versus it being discoverable. I think that's one of the areas where we're seeing Veritas really kind of evolve. I have the experience in data management and now with some of the technologies that they're launching kind of a platform with some of their different technologies containerized and put on to a single platform I think is really seeing all of this whole concept of data management converging. >> So where do you see this whole thing going? Last question is, you looked out two, three, four, five years, you're going to have lots of Clouds, you're going to have Edge, you've got all this data, digital transformation. Specifically in the context of data protection, how do you see that evolving and what does it look like in the next four or five years? >> I think I used the term already, data portability, and workload portability, and I like that and I think that's where it's going 'cause as the public Cloud market and even non-PREM private Cloud market continue to evolve, it's really going to be about portability. Where is the most appropriate place to run a workload to have certain data? Is it in the public Cloud, is it on-prem, and maybe that changes, right? Maybe the cost modeling changes, maybe the performance requirements changed, so that needs to be portable but with portability, we have to be able to follow that data and those workloads and be able to have some kind of consistent way to protect them. I really think that's the evolution, that's kind of the arms race with a lot of the vendors in this space right now and what everybody's trying to do 'cause that's where it's all headin'. >> Alright Bob, great, thanks very much for coming back in theCUBE, really good to see you again. 85% I think of Veritas's business goes through the channel, critical partners like you make it all happen. So I really appreciate your perspectives, thank you. >> Thanks again for having me, thanks for coming to Chicago. Hope to see you here again. >> You're welcome. Keep it right there everybody, we'll be back with our next guest right after this short break. You're watching theCUBE at Veritas Vision Solution Days from Chicago. Be right back. (digital music)

>> Narrator: From Chicago, it's The Cube. Covering Veritas Vision Solution Day 2018. Brought to you by Veritas. >> Welcome back to the Windy City everybody. You're watching The Cube, the leader in live tech coverage. We're goin' out to the events, we extract a signal from the noise. We're here at the Veritas Vision Solution Days in Chicago. We were just a few weeks ago we were at the iconic Tavern on the Green in New York City. We're here at the Palmer House Hotel, beautiful hotel right in downtown Chicago near the lake. It's just an awesome venue, it's great to be here. Arista Thurman III is here, he's the principle computer engineer at the Argonne National Labs. Great to see you, thanks for coming on The Cube. >> Yah, good to be here, thanks. >> So tell the audience about Argonne National Labs. What do you guys all about? >> About science, so we're all about the advancement of science. We do a lot of different experiments from technology for batteries and chemistry. The project we're working on is the advanced photon source, which is a light source that's used to collect data in experiments with a photon source. >> OK, so you're an IT practitioner, >> Arista Thurman: That is correct. >> Serving scientists. >> Arista Thurman: Yes. >> What's that like? Is that like an IT guy serving doctors? Are they kind of particular? >> Arista Thurman: A little bit. >> There's some challenges there, but yah it's great. So basically you have a unique customer base, and they have additional requirements. So, it's not like a normal customer base. They're very smart people. They have a lot of demands and needs, and we do our best to provide all the services they require. >> Yah, so given that they're technical people, they may not be IT people but they have an affinity to technology. First of all, it must be hard to BS them, right? (laughter) >> Arista Thurman: No doubt, no doubt. >> They'd cut through that, so you got to be straight with them. And they're probably pretty demanding, right? I mean, they have limited resources and limited time and limited budgets, and they're probably pounding you pretty hard. Is that the case, or are they more forgiving? >> They're great people to work with, but there can be some challenges. I mean, it's unique in the idea that they work on multiple platforms. So it's from Unix to Linux to Mac. Multiple computers in their offices, multiple data requirements. And a lot of things happen without a lot of process and planning. Some things are ad hoc. So, it puts a little bit of strain sometimes on you to try to make everything happen in the amount of time they have. And everything is There's some challenges with regard to how to get things done in a timely fashion when you don't know what's going to happen with some of these experiments. >> I mean I imagine, right? They can probably deal with a lot of uncertain processes because that's kind of their lives, right? You must have to cobble things together for them to get them a solution sometimes, is that the case? >> We do sometimes. I think it's all about getting enough funding and enough resources to take care of all the different experiments. >> Dave Vellante: A balancing act. >> Yah. >> Dave Vellante: Ya so you look after, compute and storage. >> Arista Thurman: Yes. >> Right, so talk about what's happening generally there and then specifically data protection. >> So in general, my primary focus is Linux. Linus administration, Red Hat Linux. And we've seen a lot of data growth over the last five years and we've got projection for more growth as we are planning for an upgrade. So we're going to change our bmine and make it more efficient. Have a better light source and that's all planned in the next two to three years. And so, there's a lot of extra projects on top of our normal workload. We have a lot of equipment that probably needs to be refreshed. There's resources and with IT and any kind of data management things change. So whatever we're doing today, in the next three years we'll be doing something different because things change with regard to CPU speeds, performance of IO networking, storage requirements. All those things are continually growing exponentially. And when scientists want to do more experiments and they get new resources in, it's going to require more resources for us to maintain and keep them operational at the speeds and performance they want. >> Yah, we do hundreds of events with The Cube. We do about 130 events this year, and a lot of them are so-called "big data" orientation. And when you go to those data oriented events, you hear a lot of, sort of the roots of that. Or at least similarities to the scientific technical computing areas and it's sort of evolved into big data. A lot of the disciplines are similar. So, you're talking about a lot of data here. Sometimes it's really fast data, and there's a lot of variety, presumably, in that data. So how much data are we talking about? Is it huge volumes? Maybe you could describe your data environment. >> Primarily we have things broken up into different areas. So we have some block storage, and that provides a lot of our virtual the back-end for our virtualization environments which is either Microsoft or Red Hat RHV. I would estimate that's somewhere in a petabyte range. And then we also have our NAS file systems which spread across multiple environments providing NFS version three and four and also to Windows clients CIFS and some of the Mac clients also utilize that. And that's at about a little less than a petabyte. We also have high performance computing and that's a couple petabytes, at least. And all those numbers are just estimates because we're constantly growing. >> Any given time it's changing. But you're talking about multiple petabytes. So how do you back up, how do you protect multiple petabytes? >> Well I think it has to, it's all about a balancing act 'cause it's hard to back up everything in that same time window. So we have multiple backup environments providing resources for individual platforms. Like for Windows we'd do something a little different than we'd do for Linux. And we have different retention policies. Some environments need to be retained, retention is three years and some is six months, some three months, and so you have to have a system of migrating your storage to faster discs and then layer off the tape for long term retention. It's a challenge that we're constantly fighting with. >> How do you use Veritas? You're a customer obviously? >> Yah, we've been a Veritas customer for many years and we utilize Veritas in our virtualization environments. They kind of help us out with central platform. We've actually explored other things but the most cost effective thing to us at this point has been Veritas. We utilize them to back up primarily our NAS and our black files, our black file systems that provide most of the virtualization. >> Why Veritas? What is it about them that you have an affinity for? There's a zillion other backup software vendors out there, why Veritas? >> I think we have invested a lot in Veritas over the years. Predating my time at Argonne we've been using Veritas. In my previous career, in Sun Microsystems we also had some kind of relationship with Veritas. So it's easy and I think, like I mentioned earlier, we explored other things but it wasn't cost effective to make that kind of change. And it's been a reliable product. It does require work but it has been a reliable product. >> So, you'd mentioned your Linux, Red Hat Linux. >> Arista Thurman: Yes. >> So you saw this IBM announced it's going to buy Red Hat for 34 billion dollars. What were your thoughts when you heard that news? >> I was like, "Wow, what is going to happen now?" I was like, "How is that going to impact us?" Is it going to change our licensing model? Or is it going to be a good thing, or a bad thing? Right now we just don't really know. We're just kind of waiting and seeing. But it's like, OK, I mean that's a big deal. It is a biggest deal certainly from IBM. Their biggest previous deal was I think Cognos at five billion, so this dwarfs that. The deal of course doesn't close probably till the second half of 2019. So it's going to take a while. But look, IBM is known when it buys software companies, saw this with SPSS, you've seen it with other companies that it buys, it often times will change the pricing model. How do you license Red Hat? Do you have an enterprise license agreement? Do you know offhand? >> We do have an agreement with them. >> Dave Vellante: Lock that in. Lock that long term in now before the deal goes down. >> One of my counterparts is in charge of that part of it. So I'm sure we'll be having that conversation shortly. >> Yah, interesting. Well listen, Arista thanks very much for coming on The Cube, really appreciate your insight. >> Thank you. >> It's great to meet you, all right, you're welcome. Thanks for watching everybody, it's a wrap from Chicago. This has been The Cube, Veritas Vision Days. Check out SiliconAngle.com for all the news. TheCube.net is where you'll find these videos and a lot of others. You'll see where The Cube is next. Wikibon.com for all the research. Thanks for the team here, appreciate your help on the ground. We're out from Chicago, this is Dave Vellante. We'll see ya next time.

welcome to the Windy City everybody you're watching the cube the leader in live tech coverage my name is Dave Volante I'm here with my co-host Stuart men immense dude this is our second year of covering v-mon you've painted the town in green we certainly have we've been talking about for I can't even now tell you how long data is at the center of it all companies are taking a new look at what does it really mean to ensure that I know where all my data is that I ensure it's protected and that it's in compliance all this challenges are much bigger part of them not just the day that backup remedy company's overall data management pirate market which is much bigger and more and more companies are digitizing their organization and for us we're kind of the ones that keep that up and running and I think it was important for us to make sure that message gets out but some years we've been saying women's VMware only the most right there be only we will never do physical crappier would always say we're just gonna do virtual virtual well in the enterprise that can't be there's ten fifteen twenty percent of all these enterprises that are gonna stay physical so last year we introduced a comprehensive m2m platform now we can do virtual physical and cloud for our enterprise customers for everybody but we see it more in the entry box allowing workloads to move seamlessly across multi clouds Rob I they soon go play on glass to manage all your data it grows the cloud there's a dichotomy between what the businesses expect in terms of the levels of data protection the levels of orchestration and automation that exist and what IT can deliver and it seems like beam is trying to fill that gap they did what most of the big companies do they start off with a partner day beams all about their partner you cannot be a platform provider without an ecosystem that's embracing and extending the value merging that value proposition together with these companies and brought about a tremendous impact on just a customer success they are experienced in in leveraging our technology they want to make sure that if I'm buying something from you it'll integrate into my existing environment so I don't have to do a complete rip and replace that's a very expensive proposition this is a company that has grown from you know very small to quite large it's gonna be probably close to a billion dollars in bookings this year we're not losing kind of what made us great which get in the door just get in the door to any of these companies go into coca-cola just get in the door and then do a really good job and expand from there which is really what we've been doing since the beginning but they've taken over Chicago VM is famous for its parties part vmworld and other big events work hard way card them so VM is known for having the best parties pleasure seeing you and congratulations on all your success thank you very much this day Volante with stew minimun you're watching the cube live from Chicago v-mon 2018 [Music]

>> Announcer: Live from Chicago, Illinois; it's theCUBE. Covering VeeamON 2018. Brought to you by Veeam. >> Welcome back to the Windy City, everybody. You're watching theCUBE, the leader in live tech coverage, where we go out to the events, we extract the signal from the noise. This is our second day at VeeamON 2018, our second year. I'm Dave Vellante with Stu Miniman, my co-host. Phil Goodwin is here, he's a research director at IDC's storage systems and software group. Phil, thanks very much for coming on theCUBE. >> Pleasure to be here today. >> So you've been to more VeeamONs than we have, so you've seen even a greater evolution, although we've been to a lot of VeeamUGs. We saw a lot of green. This company has painted Chicago in green. What's your take on the progression and ascendancy of Veeam beyond just being a virtualization specialist? >> Sure, obviously the most interesting thing about Veeam is how they really have become the high growth leader of this industry, and in many ways, kind of the darling of the industry because they've got a lot of the momentum, a lot of the attention that's going on in the data protection and recovery software space. I think what has really struck me over the years of these VeeamON conferences, and really from the very first one that I attended three years ago, is the degree to which there is an ecosystem that's been built up around the products that they have for things like disaster recovery as a service, backup as a service and so forth. Where people take the Veeam software, build it into their own products and go to market with that, and I think that's totally unique in the way they've done that compared to many of their competitors. >> Let's see, we're talking about 800 plus million dollars in bookings, mid-30% growth rates. I presume the data protection market's not growing that fast. >> No, although it's surprisingly strong. Last year it grew at about 7% rate. We don't expect it to keep going that fast but if you compare that to other stores' software, which is 1% to 2% or in some cases even negative, it's actually an area that's quite bright. >> Yeah it's grown much, much faster than the overall IT business, right? >> Oh yeah, absolutely. >> And so, why? Why is it growing faster? >> Well part of it's driven by capacity. A lot of the vendor models are associated with the capacity and so they charge upgrades every year and as data is growing at about 40% per year on a compound annual growth rate, that does cause customers to upgrade their licenses. But we're also seeing an acceleration in the deployment of applications so we expect IT organizations, according to our research, to add an additional 200 applications over the next 36 months. That's not a lot of new applications. What we find in many cases is what we would call the traditional incumbent vendors, who have their footprint within the enterprise, maintain that footprint in many cases, but those new applications have the opportunity to bring in new products and that's really where the opportunity for Veeam is. >> So part of the growth is somewhat artificial if I understand it in that it's pricing driven, and so that would suggest, given that data protection is largely insurance, that the CFOs are going to look at that line out and say, "Oh, this isn't sustainable." Unless, and I want to run this by you, research indicates that Fortune 1000 companies leave, over a three to four year period, billions of dollars each on the table because of not the most end-to-end or well-thought-out architected data protection solutions. Maybe that expands the TAM a little bit, but is that kind of growth sustainable? You've already sort of indicated it's not, but maybe talk about that a little bit. >> Right. The nature of threats has really changed a lot over the years too, so if you look back on computing, it used to be system failure, human error, and to some degree natural disaster were your biggest threats. Nowadays it's actually ransomware, malware, and other things that are much bigger threats than the traditional types of threats that organizations have dealt with. As the evolution of data protection has come about, what we've found is very much a willingness among IT organizations to not simply try and go with a single product, but to rather buy a best-in-class product for specific platforms. In the case of Veeam, I think they really did a very successful job of riding the virtual infrastructure wave when most of their competitors were architected specifically for second platform types of applications. >> Phil, one of the interesting things to watch in Veeam is their expansion beyond that virtualization. What insight can you give us about data protection and SAS and public cloud and service providers? A lot of those environments you would think that the platform or the provider might have a choice, so how does Veeam get in there? How much do customers really have choice there? >> That's really a great point because what is happening is we're moving data protection from the system level. We've moved it up to the virtualization layer and now it's really moving to the application layer, where it is the application developer whose building that data protection directly into their application. So what we're seeing is those application developers, which as you mentioned many are SAS applications on the web, building the data protection into their specific environment. But the other thing that's happening is IT organizations are suddenly realizing that much of that data that is in the web or with those SAS applications is not being protected according to the SLAs of the organization. They're using third party tools and applications like Veeam to bring that data back on site and to protect it according to what the requirements and government's requirements are. >> Okay, so let's unpack some of this. If I understood it correctly, going back to the developers, as architecting in the data protection approach, is that a result of the DeVops trend, infrastructure as code, or is it something else driving it? >> I think it's more being driven by the fact that these are discrete applications outside the data center. So if I'm inside the data center and I'm trying to protect 100 different applications, I may try and apply the same techniques to all of them, the same policies. But these are applications like Salesforce.com, or Payday, or other applications that are really, for lack of a better term, a single application. That environment really doesn't have to consider the other systems within a data center. >> So it's the SAS guy saying "one size fits all." >> Phil: For them, yes. >> Which, by the way, is an age-old problem inside the data center. Either you were not protected enough or you were paying too much. Do companies like Veeam solve that problem by providing more granularity and maybe aligning better with that? >> Yeah. They go attack the problem in a couple of different ways. First of all, they certainly have their traditional business within the data center, but they're also partnering with many of the cloud-based organizations like Azure and Amazon and others to be able to help organizations protect data they have in the cloud. Plus they're working with specific applications to be able to provide that kind of protection for a SAS app. >> I want to come back to something you were talking about with Stu about best of breeds. We do a lot of these shows. You talk to a lot of customers and a lot of technology companies. You get two ends of the spectrum. You get the best of breed guys like Veeam say, "Hey, we're best of breed, "why would you buy that old, clunky, "outdated backup capability?" And then, without naming names, you get the integrated full stack companies going, "Why would anybody buy from some tiny little company? "Oh yeah, okay they're 800 million, "but they can't do digital transformation and big data "and SAS and blah blah blah! "So why would anybody, who cares about backup?" So you have two completely counterpoised positions. How can you help us parse through that? >> I think a lot of it comes down to who is the actual consumer and buyer of the solution and that's indeed changing. What we're seeing much more is it is the application developer, the application provider, or even the line of business making the decision as to what applications are being deployed, as opposed to the central IT organization. So whereas the central IT organizations say "This is part of digital transformation," the business unit may be buying other applications. >> We talked a little earlier about money being left on the table. I don't know what your research shows but clearly there's opportunities there that's not being harvested today. From a cost-benefit analysis standpoint, I know it's one area that you focus on and spend some time there, is it a reasonable expectation that CFOs will actually look at that lost opportunity, that soft revenue that they're losing, which really is not that soft, and say, "Hey, we actually need "to increase our spending in this area?" >> Some of them, yes. What you really find is a maturity curve, of course, where you have some organizations that really have a very traditional view and have not tried to move forward. But our research is showing that about 60% of organizations have embarked on some kind of digital transformation, and that about 70% have a cloud-first perspective. Those organizations really are looking at those kinds of opportunities, both in terms of cost, opportunity cost or absolute cost, and saying, "How can we optimize this environment entirely?" >> If I were the CFO, and let's say I had the cash so I wasn't capital constrained, I would still say, "Look, this is insurance, "so figure out a way to get more value out of this data. "You got all of this data in the backup repository, "what can we do with that? "What analysis can we do? "Can we maybe be more efficient "with regard to how we do security?" It's like the US government. "Can we have this agency talk to that agency "and figure out a way we can get more leverage?" and really be putting pressure on them to do that. Is that an unreasonable expectation for CFOs? >> No, and in fact what our research has shown is that about 40% of organizations use their backup data sets for analytics. They also, about 30% of them, 33% use it for other purposes such as development and test, staging, others. So organizations really are trying to leverage that vast amount of information that they have for other purposes. One of the challenges that come out though is GDPR, the European regulation to the right to be forgotten and the way organizations have to be able to manage that data. Going into those data repositories, including backup data sets, to say "Okay, this is data "that we have to expunge by regulation." >> Phil, I wonder, we've been talking about the threats of GDPR and you might get sued or everything. The last few years, we've really been talking about how we get insights and data. Insights can transform businesses around data. Is GDPR a threat to this whole wave of getting value out of data? >> I don't think it's a threat to getting the value out of the data, I think it's a threat to how you manage that data. And the threat is much more widespread than many organizations realize. If you're doing business with anyone who is European or has traveled to Europe, and really any kind of footprint in that regard can potentially put your organization at risk if you're capturing any of that data. >> But that stat you just threw out was pretty interesting. The 40% percent of organizations that you surveyed are actually doing some types of analytics with their backup data. I would think that governance and compliance and GDPR related stuff, they're going to take, those 40% are going to take a similar approach to GDPR. Say, "Okay, guys, we got to do this. "Find some more value out of it, "or else get you in a headlock." Right? That's a huge number! >> Right, and one of the ways you do that is, and that Veeam has done is to open up APIs, application programming interfaces, to allow third party organizations to leverage that data repository and do that kind of analytics. Veaam, themselves, or any other backup vendor can't really leverage, or can't really do that, but by opening that up to third parties it increases that ecosystem and increases the value that IT organizations can get from their data and their investment. >> Some of your research. Maybe you can highlight some of the stuff you're proud of, fun stuff you've been working on, things that are current, recent, that you want to highlight to the audience. >> I think some of the interesting things, the trends in the industry really are that the kinds of things like backup and recovery and high availability and disaster recovery, we see really going into a continuum of availability. Where, if I can move data across geographies, and I can recover my application seamlessly regardless of where the data is, why do I ever need to have disaster recovery again? And in fact, that's where we believe availability is going, and in fact the theme for Veeam at this show is hyper-availability. One of the ways you do that is by placing the data in the right locations for that kind of recovery. Watching from the days of backing up once a day onto tape to continuous availability is actually a pretty interesting development. >> So who's doing a good job in this place? Sounds like Veeam is getting it done obviously, and the numbers speak for themselves. You got the startups, Cohesity, Rubrik, Zerto obviously plays in there. You have Veritas is supposedly retooling. You had Bill Coleman in there, former BEA guy who's supposedly put a lot of R and D into that. You got the leader in Dell EMC. Obviously they have a lot of resource, spend a lot of money, they're going through a retooling process. IBM has software defined everything. It seems like it's jump ball right now instead of wide open. >> It really is. You look at, you mentioned Dell EMC, they're focusing on IOT. Well IOT generates a phenomenal amount of data. What data needs to be captured, how does it need to be captured, protected, managed, is going to be a huge issue for organizations so that's a very interesting target. Veritas has been looking at their 360 data management and really taking a holistic view of data management and they're doing some very interesting things there. Commvault has done actually a pretty nice job of getting into some cloud-related kinds of things. And then finally as you mentioned, Rubrik and Cohesity, I would put them along with Veeam as probably the three companies that right now are disrupting this industry the most. There are probably certainly some other ones that are up and coming, but in terms of those that are really providing some disruption, I would probably go with those three. >> Alright, they're breaking down VeeamON 2017. Phil, thanks for coming on theCUBE. Great stuff, really good analysis. Appreciate you having on. >> Pleasure, guys, take care. >> The trains are backing up. We're trying to jam everything in before they shut down our studio, so we'll be right back right after this short break. (upbeat music)

(upbeat electronic music) >> Announcer: Live from Chicago, Illinois, it's theCUBE, covering Veeamon 2018. Brought to you by Veeam. >> Welcome back to Chicago everybody, the Windy City, you're watching theCUBE, the leader in live tech coverage and we're here day two at Veeamon 2018, theCUBE's second year doing Veeamon, and I'm Dave Vellante, with my cohost, Stu Miniman. Patrick Osborne is here, the newly minted VP and GM of big data and secondary storage. >> And CUBE alumni. >> HPE and many time CUBE alumni, did you get a sticker? >> Yeah, it's already on my laptop. >> Oh, awesome, great to see you again. >> Good to see you guys. >> Thanks so much for coming on, always fun at Veeamon. >> Yep. >> They have a big presence. Your show, HPE Discover, they painted the Chi-Town green. >> Patrick: Yep. >> What's going on at the show for you guys? >> So a huge partner for us, in our ecosystem, as you guys know, HPE and the world of virtualized workloads, like, you know, we definitely own the space in terms of the number of Veeams sitting on our infrastructure and they are a great partner. You know, we've got thousands of customers, and I think what we're seeing, too, is that as Veeam grows up into the midsize and enterprise space, that is, you know, that's where our wheelhouse is. And so we're getting a lot of customer interactions in that space, and then, with some of our offerings around Nimble and SimpliVity, where they play very well in the commercial segments, that's a great way for us to go grab new logos, be present in the channel. So it's a really good partnership for us on both ends. >> I definitely want to understand what's going on in big data, but before we get there, let's talk a little bit about secondary storage and your point of view there. We know that data protection is moving way up on the list of CXO priorities, we also know there's a dissonance in the customer base, between the expectations of how much automation is actually there from the line of business, versus what IT can deliver. >> Patrick: Yeah, yeah. >> And so there's this gap and now you have multi-cloud coming on in a big way, digital transformation, and so it feels like backup and recovery and data protection is transforming. Throw in security and it even complicates it further. What's your point of view on what's going on in this mix? >> Well, certainly the sands are shifting in the secondary storage market. I think because of a heightened customer expectation in this area, whether it's, you know, I want to do more with my data, running things that we do at Veeam, like test data, automation, Sandboxing, security, you know, ransomware. All those are higher level data services than just what people were doing in the past around backup and recovery. So for us, we're really focused a lot on automation right in this space. The death of backup and recovery in that traditional space is essentially caused by comPlexxity, right? So automate or die in this space, nobody wants to deal with backup, right? What you want is outcomes, and what we're doing is, for our product line, we've got sort of this three-tiered mantra, of predictive, cloud-ready and timeless. So we want to be able to, through platforms like InfoSite, be able to heavily, heavily automate all those activities. Cloud-ready, because, you know, as we talked before, it's a hybrid world. People, especially in secondary storage, want to have some data on-prem, and certainly a lot of it for archival and retention off-prem. And then, timeless is sort of this scenario around, even though I'm operating a data center, I want the purchasing experience to be elastic, and like, again, the cloud, right? So consumption-based as a service. So that's what we're trying to bring to the market for secondary storage and storage in general. >> Dave: Awesome. >> Patrick, as I look at this space, you talk about that hybrid, multi-cloud world that we talked about. The two big, main things are data and my applications. So you talked a bit about the data, connect for us, kind of the applications and things, cloud native and 12 factor microservices, versus traditional applications. And you've got that whole spectrum, what are you seeing from your customers and how are you helping them? >> Yeah, so, we're definitely seeing a lot of the tech leading customers in the enterprise from HPE, you know, the big logos, right? They're out there disrupting themselves, disrupting industry, are massively betting on analytics, right? So, they've moved certainly from databases to batch now, it's all, you know, I think people call it fast data, streaming analytics, Kafka, Spark. So we're seeing, that part of our business that HPE's growing, like, non-sequentially, right? So it's really good business for us. But what's going on right now, is that the customers who are doing this, these are all net new apps. Kubernetes, you know, new styles of application, it's not a rip and replace, it's more of an augmentation scenario, where you're providing new services on top of existing apps. So that is very new and I think one of the things we'll see over the next couple of years is, how do I protect those workloads? How do I provide multi-cloud for them? So it's an interesting space, it's very nascent, a lot of tech-heavy investment going on for the, you know, the big players in the market. But that's going to have a long tail into the mid range. >> How will the data protection architecture sort of change for those new emerging applications? You know, maybe IoT is another piece of that. And maybe, where does your partnership with Veeam fit into that? >> Yeah, so we are having a number of strategy discussions on that this morning, you know. And I think that space is, you know, there's a lot of identification that has to go on. Do I want to back it up, do I care? Right, are those persistent streams? Or that IoT data that's coming in, do I really have to back it up at the end of the day or can I back up the results? So, a lot of it is not just an availability issue, it's certainly a data management issue. But a lot of the tools that we would need to do that, today, they're focused on bare-metal, VM wear, virtualization, a lot of stuff that hasn't been written yet, right? So I think there's a lot of actual tech development that has to go on in this space and I think we're kind of poised together as partners to deliver in that area the next couple years. >> You guys have this tagline, "We Make Hybrid IT Simple." >> Patrick: Yes. >> IT, you know-- >> Patrick: Very quantifiable. >> It ain't simple. (laughter) So, where does storage fit into that equation? >> Yeah, the stats that blow my mind was, I think IBC came out with this, was that there's essentially around 500 million apps in the data center today. And then, in any sort of spectrum of bare-metal, being virtualized, maybe being containerized, in the next four years there's going to be 500 million net new apps, right? So that's like, it's mind blowing, in terms of, most people have a flat budget, maybe a little increase. So you think that you're doubling the amount of apps you have and all the services around it. So for us, the automation piece is absolutely key, right? So anything we can do with InfoSite as a platform, we're going to be extending that to other products, you see we've done it for 3PAR, we'll be bringing that experience. But anything we can do around automation, analytics, that's going to take a lot of the mystery and comPlexxity out of managing these apps and services, I think is a win for the customers, and that's why they're going to buy into the platforms. >> Yeah, it's like, imagine if you're a young family, you've got two kids and you have twins. >> Patrick: Yeah. (laughter) >> Uh-oh. (laughs) >> Or you decide to have two more, like I did. (laughter) >> Patrick, we've been talking about intelligence in the storage world for decades. >> Yes. >> Why is it real, you know, more real and different now, than it was in some of the previous generations? >> Yeah, I think, you know, some of the techniques... So, we've had systems that have called home and brought telemetry home forever, right? But I think what's going on is that, as you take the tools that we've developed, and a lot of them are new, right, that are allowing you to do this, it's the practition of the data science, which is like the key, at the end of the day. InfoSite is an amazing piece of technology, a lot of the magic is in the way that you set up your teams, and to be able to take that on, right? So, it's no longer a product manager, an engineering guy, support person in a different organization, right? What we have is what's called a peak team, right? Which just takes all the functions, brings them together with a data scientist, to be able to take a look at, how can I do machine learning, AI, a more predictive model, to actually take use of this data, right? And I think the techniques and the organizational design is the big change that's happened over the last couple of years. Data's always been there, right? But now we know what to do with that. >> Yeah, and like you said before, the curve is reshaping, it's not this linear Moore's Law curve anymore. >> Patrick: Yeah. >> It's this exponential curve. >> Patrick: Exactly. >> I can't even draw it anymore you know, it used to be easy, just put the dotted line straight out, now it's twisting. So, that increases the need obviously, for automation. Now talk about how HPE's automation play is differentiable in the marketplace. >> So I think a couple of things from a differentiated perspective. Obviously we talked a lot about InfoSite as a platform, as a portfolio company, we're definitely trying to take out the friction, in terms of the deployment and automation of some of these big data environments. So our mission is to be able to, like you would stand up some analytic workloads in the public cloud, to provide that same experience, on-prem, right? And essentially be the broker for that user experience. So that's an area that we're going to differentiate, and then, you know, in general, there's not that many mega portfolio companies, right, anymore. And I feel like, that we're exploiting that for our customers, bringing together compute networking and storage. And certainly on the automation side. So you know, for us, I really feel that you're no longer going to be buying on horizontal lines anymore. You know, best of breed servers, best of breed networking, best of breed storage, but bringing together a complete, vetted stack for a set of workloads, from a vendor like HPE. >> Yeah, and it was just announced, the deal's not closed yet, but just to mention to the audience, HPE just made an acquisition of Plexxi, a networking specialist-- >> Patrick: Yeah, a good friend, too, Rich Napolitano. >> Rich Napolitano. Just this week, which is interesting, because that brings cloud scale to some of the hyperconvergence infrastructure. It's essentially hyperconverge networking, so really interested to see how that plays out. HPE has made a number of really effective acquisitions over the last several years, starting really with 3PAR, was the one. Clearly Aruba, you know, the Nimble acquisition, you know, SimpliVity, so, SGI. So some really strong, both tactical and strategic moves for HPE, really interested to see how Plexxi sorts out. Okay, we got to talk sports for a minute. I asked Peter McKay this question, I asked his boss, some sports fans, if you were Robert Kraft, would you have traded Tom Brady? >> (sharp inhale) No. >> No way? >> No way, no way. >> Okay, that's consistent with McKay. >> Yeah, no way, that's like trading Montana, that didn't work out. >> That did work out, right? They traded Montana, then they won another Superbowl. >> Yeah, I know, I mean, I think, for me, he's an icon and then he's still operating at maximum efficiency, which is amazing, but I think he got a lot of legs in him. >> What do you think of the... Well hopefully he stays, hopefully he does play 'til 45. What do you think of the Garoppolo trade, though? Are you disappointed that they didn't get more, or do you think it was the right move to hang on, just in case Brady went down again? >> I think it's the right move at the end of the day, right? You're not going to get much from him anyways, and they're certainly not going to pay him out as a backup quarterback. What I don't like, though, is the fact that he's gone to the 49ers, and that's where most of my engineering team is in the Bay Area. So, to have to deal with yahoo 49ers fans, you know, for the next couple years, is going to be painful. But it's good, it's a good renewed rivalry. >> So you're not a-- >> Celtics, Warriors, you know, Patriots, Niners. >> You're not an instant transplanted 49ers fan, because of Garoppolo, right? >> Patrick: No, absolutely not. >> He's a carpet-bagger, right? >> He's out, he's off the team, he's out of the house. >> I love it, okay, Bruins were a big disappointment this year. >> Yeah, yeah. >> We thought that, you know, the Celtics were super exciting, let's go there, I mean. You know, you watched the Celtics early in the year, 'cause your like, after Hayward went down, you're like, kind of' we were all walking around like this. And then you-- >> I felt like, it's like where Kennedy was shot, right? I know exactly where I was, right? >> Right, and you had people blaming Danny Ainge for, like, making a move, I'm like, come on, guys. And you see what happened with the young players, and then they sort of tailed off a little bit, they were struggling, you know, Ky was trying to find his way and now they're the exciting team. Up to on Cleveland, I mean, you got to believe that Lebron is going to step up his game with a little home cooking. But let's assume for a second that they get by Cleveland (laughs) which will be a huge task. I mean, I don't think there's anybody in the NBA who can stop Kevin Durant, but I'd love to see Marcus Smart try. >> So two things in that scenario. One is that, who needs Kyrie Irving more right now, Cleveland or Boston, right? (laughter) Which is amazing, can you imagine saying that a couple months ago? It blows my mind. And then, for me, it's a revamping of the NBA, right? If you get the Celtics versus the Warriors in that style of play, I mean, it's definitely, it's changed the whole game, right? Shooting guards, ballers, I think it's fantastic to see, you know, a whole new style of play in the NBA. >> It's so exciting to see the Celtics back in. >> Team basketball, defense, passing, all of it, it's great. >> And ESPN is losing their minds, they don't know what to do. Stephen A Smith doesn't know what to say. >> Patrick: ESPN Live. >> He's actually pissed I think, yeah. (laughter) So, now, Stu, you're a Yankees fan, of course, and you know my line on the Yankees. Stu's kind of a weekend Yankees fan. My line on the Yankees is, that sucks you can't beat us in April. (laughs) Here it is in May. >> Dave, I'm just quiet around you, because I know where my paycheck comes from. >> I appreciate that perspective, Stu, okay. >> Patriots win, we're in agreement. >> Think about all these renewed rivalries, it's great. Celtics, Sixers, Red Sox, Yankees, it's unbelievable. >> And like I said, San Francisco-- >> Patrick: Phillies! >> And the Pats. >> The Pats! >> Well Patrick, always a pleasure seeing you, thanks for making time out of your busy schedule. >> Yeah, absolutely, it was great. >> For coming on theCUBE. Alright, keep it right there everybody, we'll be back with our next guest, right after this brief break. You're watching theCUBE, Live from Veeamon 2018. (upbeat electronic music)

>> Announcer: Live from Chicago, Illinois, it's theCUBE! Covering VeeamON 2018. Brought to you by Veeam. >> Welcome back to the Windy City, everybody, you're watching theCUBE, the leader in live tech coverage. This is day two coverage of VeeamON 2018. I'm Dave Vellante with Stu Miniman, my cohost. Peter McKay is here, he's the co-CEO of Veeam. Peter, great to see you again, >> Great to be here David, Stu. >> Thanks so much for making some time. Lovin' the show, we're watching the evolution of Veeam. You know, go from scrappy fighter, now movin' up the stack. We know from our research that data protection and orchestration are moving up the list on CXO priorities. You were brought in to really uplevel, top-level the company's messaging, the branding, the talent. How you feelin'? >> I'm feeling good, I think this was a major step, right. You know, a lot of work going in to just really understanding the market, for me at least. Coming out of VMware and coming into an availability market. So I became a student of the space, talking to a lot of customers, talking to a lot of partners, really pulling together what that business message is, versus a feature-function message. What we were doing to actually help drive the business, you know, especially now when more and more data is being accumulated, more and more companies are digitizing their organization. And for us, we're kind of the ones that keep that up and running. I think it was important for us to make sure that message gets out, to when we deliver it in the market, that people think of us as that strategic solution for their mission critical, always-on, which we call hyper-availability, for the enterprise. Any app, any data, any time. >> Very partner focused event, here. You can't walk anywhere without bumping into a partner. When, you were at VMware for a number of years, and VMware was famous for every dollar spent on a VMware, some number, $15, $17 was spent on the ecosystem. So that was sort of, probably ingrained, in the ethos of your career, right? >> Yeah, and you know, when coming here you recognize there was a lot of great discussions, a lot of good technology integration with, you know, companies like Cisco and HP and NetApp and others. But there wasn't this follow-on go-to market. Like, how can we make it easier for our customers? How can we make it easier for our customers to buy a combined solution versus a technology? And so to do that well, we recognized early that we had to uplevel the relationships we're having with Pure and Nutanix and all these other companies that were really getting in front of these enterprise and mid-market companies, but with multiple tracks. And we felt that if we can do more together with them, that we would have, the customers would have a better experience. And so, we started going down that path, we started to do things more together. Merging that value proposition together with these companies. And then merging our sales efforts together. It brought about a tremendous impact on just the customer success, their experience in leveraging our technology. And this is just kind of the start of it, because I think there's a lot more to come, that on the partner side that I think is going to be, you know that gets us to that two billion, three billion mark. >> Yeah, so I wanted to touch on that so, that combined with the expansion of your product portfolio, the move into cloud and multi-cloud and orchestration expands your TAM significantly. Talk about some of the numbers. Over $800 million in bookings-- >> 827, yes. >> 30 plus percent growth, >> 36. >> 36% growth. >> But who's countin'? (laughs) >> Oh that's good, and so, now, and of course currency as a Swiss based company, let me get this right, currency now is somewhat of a headwind for you guys, right? So you're blowing through that, or no, do you guys hedge or how do you handle it? >> Nope, we're US dollars, everything is US dollars. Everything is US dollars. >> So that's a tailwind then for you guys? >> That is, it is, you know, lookit. We've always operated as a long-term software company. A long term sustainable, we don't have the quarterly, we're not public, right? So we don't have to hit targets in earnings along, and you know currency's going to go up and down at various times. Some days, some times, you're going to have the benefits, the tailwinds and headwinds. So, for us, we just continue to make the right decisions based off of where we see what's the best interests of our customers, what's the best interests of our partners, and then let the dust settle. >> But you do pay attention to the months and the quarters internally? >> We do, yes, well in large part because our ecosystem does, right? When you're selling with Cisco you need to know when their quarter ends, and when their year ends, right? Or Nutanix, because they're all motivated by those quarters. And I've always been in, for the most part, public companies that had that quarter. So we still operate that way, but the way we make decisions is based on what's the long-term best interests of our customers. >> And there's not that external 90-day shot clock, Stu, as we talked about. >> No, yeah, no. Yeah, so Peter one of the things that's really interesting to look at at your company, you're at 133 customers a day. That's 10,000 a quarter. Very different when you talk about the enterprise, it's not just how many customers, but there's, at least traditionally been more, it's more belly-to-belly. You have to be deeper engaged. You've got this partner? Bring us inside a little bit, some of the challengers there are about going from the scale and simplicity that built Veeam, to deeper in to these enterprises. >> That's a really good question, and you know there is two elements of that. The first one is first, do no harm. Your SNB business is cranking double digits, your mid-market is cranking double digits, and invest heavily in this massive opportunity we have in front of us in the enterprise. But make no mistake, that's a major effort that we've embarked on two and a half, three years ago. Our technology, as you mentioned it, is broadening. Our messaging is upleveled. Our focused marketing efforts are very much targeted to very specific customers. Our support is different, I mean everything we do. The ecosystem is different to go into that enterprise space. So it's a massive investment that we're doing around the globe, to get much closer to those companies. But, we're not losing what made us great. Which, get in the door, just get in the door to any of these companies. You're going in, you're going to Coca-Cola, just get in the door and then do a really good job and expand from there, which is really what we've been doing since the beginning. >> On that, you know I heard like, AIX support is coming. All the enterprises like, well but I have this other application that you're not certified. You go down the SAP HANA route, and Oracle and everything else, you can just get bogged down in so much red tape. >> And that's changing, it used to be that we're, not used to be we are the number one VMware backup. We're the number one virtual backup. And we're the best in the world at virtual. But, and Ratmir would always say, we're just going to do virtual, virtual. Well in the enterprise, that can't be, right? You need to be, obviously virtual, cloud, 'cause every conversation you're having is multi-cloud, right? And you need physical, because there's 10, 15, 20% of all these enterprises that are going to stay physical. And so for us, we needed to do that. Now we've done, now we can do virtual, physical, and cloud for our enterprise customer, for everybody, but we see it more in the enterprise. >> When Veeam first started, it saw an opportunity to help with the virtualization problem. Backup had to change with virtualization. Veeam, right place, right time, right product and right attitude, boom. What's more straightforward than what's going on now, what's happening now, and I wonder if you could comment, from our perspective is, there's a dichotomy between what the businesses expect in terms of the levels of data protection, the levels of orchestration and automation that exist, and what IT can deliver. And it seems like Veeam is trying to fill that gap. Which says a couple things, it's a jump ball, to use the basketball analogy, which we'll be talking about later. And the second thing is that there's a lot of potential for customer churn. Which is good news for you guys. >> First off, there's a lot of churn going on. Anybody that bought a solution two, three, four, five, 10 years down the road, the game has changed, right? We kind of track three things. One, it's all about the data, right, and the data today is becoming much more critical for businesses, right? Our business, every business, it's all making better decisions with more critical data and at the right time. The second is it's massive data growth. It's exponential, it's, what did they say? 2x every, every, 10x every five years? And so we're seeing this massive increase in growth of data that if you use the same methods you used in the past, it's really expensive and really difficult to be able to manage that and keep it running and available. And the last is sprawl, it's everywhere. I mean data is on devices, from thermostats to automobiles to everywhere. And so, used to have it sitting in an easy data center, and now the data is everywhere. And so, you have the criticality of data, you have the massive growth in data, and you have a massive sprawl of data. And what we believe is we want to be that hyper-availability solution. That we're protecting that data, we're helping you manage that data, we're helping you orchestrate that data, and be able to protect it for companies who need it in real time because it's becoming so critical today. >> The other change that we would observe, is you're really kind of going from what was a product company, to a platform company. You showed that platform slide. Talk about the importance of platform in the enterprise to sustain growth. >> Yeah, I think there's, in the enterprise obviously it's more complicated. And you know, because of the sprawl, because of all the things I mentioned, it needs a bigger, broader solution that can be able to handle backup, backup and recovery, replication, failover. You need to be able to have a single pane of glass, whether it's in the cloud or on premise. You need to be able to manage and orchestrate workloads, from on premise, I want to put it in Azure, or I want to put it in Service Provider, and so the ability to be able to automate and orchestrate that movement requires a platform to be able to do that. With us, but also the ecosystem, right? I mean do it with the hardware providers, people who have a component for security, to make sure that if we detect ransomware, to kick off a backup, a clean backup. And so, this orchestration and automation is going to be a critical part of that platform. >> Peter, I wonder if we could step away from the technology for a second, talk a little bit about culture. We've been noting you come on board, Veeam's always had a good team, but been bringing on some key pieces, especially help focused on the enterprise. It's a challenge for a lot of companies to get into that space. Why is Veeam positioned well, talk to us about your methodology on how you bring these type of people in. >> We have, we've grown a thousand people over the last 12 months and that's on top of what we did the year before, and we're probably going to add another seven, eight, a thousand people this year. And the key is to do two things. One, we're investing heavily in our team, today, right? Because we're growing at 36% year over year, you're doubling almost every three years, less than three years. So you need to have that investment in the existing team, married with skillsets from outside, and bring in the best talent I can get to blend with that culture. So marry the culture of old with the culture of new, and that's, you know we look for hungry, humble, and smart. People who fit that description, that's what we look for, that's what we check for when we're recruiting top talent, whether an executive or you know, a front line sales rep or customer support. >> So, we only got a couple minutes, I got a question. If you were Robert Kraft, would you have traded Tom Brady? >> Oh, you saved that question! (laughs) >> What do you think? We're going to chime in, Stu and I have an opinion. >> If I was Robert Kraft, no, I would not have traded Tom Brady, Tom Brady has earned the right to plan his future with the Patriots. I think this needs to be a happy ending for Tom Brady, and I think it would be a happy ending for Robert Kraft, I would have proactively figured out how to handle Garoppolo far better than they did, I thought they handled that poorly, but no I would not have traded Tom Brady. >> So you mean, you would have wanted to get more for Garoppolo? >> Definitely. >> Yeah obviously, right, okay. >> If you were going to get rid of him, you should have done it sooner, or you should have done it, you should have figured out, how you'd be able to do it later. >> And got more value. Okay, so you're on the side that basically, Brady should be allowed to cash his chit for all these years taking haircuts, okay. (all chattering) >> Most importantly, performance. There's nobody who performed better. >> And Dave, Brady's performance, it's not like he's fallen off a cliff or he's some old man. >> He was MVP! >> Come on Dave, didn't you hear the note today? The reason Tom Brady's staying in there, is he hasn't gotten a thousand yards of rushing yet. I think he's 36 yards off, you know, >> That could take another three more years! >> He's way more mobile now than he was 10 years ago. >> Oh, so you guys are both optimists for the coming year? >> Oh, yeah. Well you know-- >> As long as we don't play the NFC East in the Super Bowl, we're okay. (speaking quietly) >> Okay, how about the Celts? Up two-zip, LeBron really, he showed up in the first quarter last night. I know you couldn't watch the game, because you were hosting a bunch of different events, but do you think LeBron's going to come back at home, a little home cooking? You know, can the Celts make it to the finals? >> I think Brad Stevens has exposed the Cleveland Cavaliers for the team that they are. Which is LeBron and a bunch of other guys. And so I think, yes LeBron's going to have, I mean he had 45 points, so it's like we're waiting for him to break out, hit 45 points and they still lost. So I'm not so sure you're going to see that massive resurgence, I think they'll get one game in Cleveland, I think the Celts will have one game, they'll win one game in Cleveland. >> I mean, I think you're right, I think Brad Stevens has exposed the supporting cast. Now unfortunately, if the Celtics make it that far, the Warriors aren't going to be exposed, 'cause their supporting cast is pretty strong. But it'll be great to get there, to compete. >> How about getting there, with your two top players are out. >> And what do you think, Gordon Hayward comes off the bench next year, he's your sixth man, I mean wow. >> Yeah, who do you trade to get even, and what would you trade for, to make the team better? I mean it's already in great shape. >> It's good to be a Boston sports fan isn't it? >> Peter: It's great to be a Boston sports fan. >> Peter thanks so much for coming to theCUBE, always a pleasure seeing you. >> Dave, Stuart, good to see you. >> Alright, keep right there, everybody, we'll be back with our next guest. VeeamON 2018, from Chicago, you're watching theCUBE.

>> Announcer: Live from Chicago, Illinois. It's the Cube, covering Veeamon 2018. Brought to you by Veeam. >> Welcome back to Chicago everybody, this is the Cube, the leader in live tech coverage. My name is Dave Vellante, and I'm joined by my co-host Stewart Miniman, Ratmir Timashev is here, he's the cofounder of Veeam and in my opinion, the man who brought Veeam into the modern era, created the persona of Veeam, allowed it to punch above its way, Ratmir thanks for coming back in the Cube, great to see you again. >> Thank you Dave, thanks. >> So congratulations on another kickoff to another great event, you painted Chicago green. Love it, first of all how do you feel. >> Fantastic, awesome. It's great being here, great city, the weather is finally nice, so spring is here finally, so we are great time. >> Yeah we had a little trouble getting in, but everybody's here, everybody's here safely which is the most important thing. I want you to talk about the evolution of Veeam, you started out as a virtualization specialist, generally VMware specialists, especially focusing on small business. We used to see you everywhere, now you're extending into the enterprise. What's that all about, what's the vision, give us your perspective. >> You're absolutely right, Veeam started with the single focus to be the best for VMware, for VMware, data protection, cap replication, and we started as the easy to use, simple, powerful solution for SMB, moved into mid-enterprise and now we added lots of enterprise features, and moving into the large enterprise. And last year was really the most important and most successful year, 2017, in the history of Veeam, so we finally admitted that we'd be lying to our customers for 10 years. >> Dave: You've been lying? >> Yeah, we've been lying. >> What do you mean by that. >> For 10 years we've been saying, Veeam is VMware only, Veeam is high B only, we will never do physical. So last year we introduced the comprehensive M2M platform to do everything, virtual, physical, and cloud. So we integrated our agent-based technology into our flagship product, to provide a single panel blast to manage all your data across the cloud, M2M. >> Why lie for a decade? >> That's a good question. You know, when you deal with sales people, smart sales people, they constantly ask you, hey, when I will do that, I will go and do physical, I was going to do physical. You have to tell them no, never, because once you say yeah, we will do physical, the next question is when. >> Dave: Yeah, when can I sell it, right. >> So we don't want to give our sales people an excuse to lose a deal because we've got the best virtual, go and sell the best virtual, and make our customers happy. >> You don't want to head fake the customers either. >> Maybe explain, what were the core principles back from the early days that are still holding true, what is the same and what's different now that you're doing cloud and virtual. >> Again, the core principle. >> Stu: Or physical, I should say. >> For principle, again, in terms of the product design, think customer first, make it easy for the customer and really stick to your core customer, that customer that is using your product every day. So make it easy, powerful, and affordable. That was our core principles in designing the product, and the whole business model behind Veeam. >> Talk about the metrics a little bit. Stu and I were talking at the open, 820 some odd million in booking, so you can see a billion dollars. We said, software companies that are a billion dollars are few and far between so that's a huge milestone if and when you hit that. But talk about that and the growth, share with us whatever metrics you can. >> Again, 2017 was one of the most successful years in our history, yeah, like you mention, we recorded bookings revenue of 830 million and that was 36% growth. Actually, our growth is accelerating as we become bigger. So we just celebrated 300,000 customers, we are adding 4,000 new customers every day, and Peter Mackay, our president and co COO mentioned this morning at the keynote, that we're adding 133 customers every single day, so that's very impressive. >> Yeah, it's awesome. So yeah, just to give you a sense, 300,000 customers, VMware, who basically owns the enterprise, says slightly over half a million customers. >> So we probably are on 50% of VMware, so we own 50% of VMware market in terms of data protection. >> So one of the challenges that we mentioned upfront was okay, so you drove a truck through the opportunity when virtualization VMware came in, and a lot of the incumbents were caught flat footed. They didn't have the architecture, they didn't have the go to market, et. Cetera. Now things are changing, moving to cloud, moving to this digital world, how does Veeam retain its edge in that new world. >> That's an excellent question, so that's the big opportunities that we see for the next five years. So we won the first battle, the battle of on pram, highly virtualized modern data center. We are the leader, we are number one data protection and ideal ability for that market, right. So the next battle, the next opportunity that we see for the next five years is to dominate the, what we call intelligent data management market in the multi cloud world. So we have to think how we approach that, once you win the market, like there is a saying, the winner takes it all. Once you win the market, you are going to dominate that, so for us the next two or three years are the most critical in dominating this multi cloud world for the next decade. >> Ratmir, I'd love to hear, you wrote that virtualization wave, which really was about creating virtualization admin, huge shift going from silos to admins. And we're seeing that change from architects in the cloud and the like, talk to, who you're selling to, and the partners that you have to grow. There's just so much change happening in that kind of environment. >> Yeah we see the change as we are moving from VMware administrator, so originally the product was designed for VMware administrator, now we are moving to the infrastructure person that is responsible not just for private part of your infrastructure, but for the multi cloud strategy, which includes the public cloud, SAS, physical servers, everything than an enterprise has as far as the infrastructure. >> Okay, so I want to go through just a couple of things that we talked about earlier and get your reaction to this. So some of the things that we've seen in our research is that data protection and orchestration are becoming much much more important in the list of CXO concerns. And that's something that your messaging is going after. But there's a dissonance between the business expects out of data protection and what IT is actually delivering, and I wonder if you can comment on that. >> Sure, so yeah, we are introducing our new message. So our previous message was focused on VMware administrator, now we are moving into the enterprise, and our message is about the importance of data. We see the three characteristics of the modern data, hyper critical, hyper sprawled, and hyper growth. So this leads to the need of creating a new type of solution what we call is intelligent data management solution. To manage the hyper available enterprise. So we're using the word hyper a lot because the data is now hyper critical, it's over distributed, hyper distributed, and is growing exponentially. That's part of our new message, that as we go into the C level people, about how important this data, and what with all the things that going on, in terms of the security compliance and how we're going to extend this platform to solve other business issues and provide more value and more business outcomes of using your late. Veeam's emporium has grown within this enterprise customers. However, as we mentioned, we are moving further, we are not standing still, so we have added lots of capabilities in terms of protecting cloud, native cloud, AWS, Azure, as well as a physical servers. So we are moving more into the end to end strategic data management platform provider from being just a niche point solution. >> I want to give you another stat that came out of our research, which I think you'll love, is that our David Foyer calculated that on average, a Fortune 1000 company over I think a three or a four year period, loses about a billion and a half dollars in value because of poorly architected data protection approaches, whether it's they're not end to end, or they're not protecting their cloud data properly, or they're not doing, whether it's backup or disaster recovery properly, well over a billion dollars over a four year period, your thoughts. >> Yeah, that's similar to what our research shows as well. So we do annual research and ask all customers how much down time and data loss costs them annually or through hour, that research shows that average enterprise can lose as much as over 10 million dollars per hour, so if you add it up over four years, that might be close to that number. But with all the compliance and the new security risks and security threat, and reason where this is becoming more and more of a critical business critical problem to solve. >> So this is a huge opportunity for Veeam, because when you think about your total available market, what a lot of time analysts will do is they'll add up all the spending on let's say data protection solutions, but to me your tam is actually quite a bit larger because of this lost revenue opportunity. It's many tens of billions, maybe 30 to 50 billion, I don't know if you have any thoughts on that. >> Yeah definitely, so data protection is just part of that core market right, so that data management is much bigger, by data management we mean not just the protection of data, but using this data to help businesses, to accelerate the innovation rate, so to reduce risk, to comply with the new regulations. So all these challenges are much bigger part of not just the data backup and recovery, overall data management market which is much bigger and probably is larger than 20, 30 billion range. >> So okay, so you have 2,500, 3,000 of your favorite people here gathered this week. As always I expect that you're going to have a big sendoff, a big party, what can we expect this week. >> As always, that's part of the Veeam culture, is work hard, play hard, and so Veeam is known for having the best parties. Yeah we, now Peter runs the company day to day, but culturally we still remain young entrepreneurial spirited company right, so we like party and we like to work hard. >> Well you know, if you've never been to a Veeam party, you're missing it. I don't usually stay for these things, I get out of here, we have to do so many Cubes, but we'll be at the Veeam party this week. >> Awesome, awesome. >> Thanks very much, always a pleasure seeing you, and congratulations on all your success. >> Thank you very much. >> Alright you're welcome. Keep it right there everybody, we'll be back with our next guest, you're watching the Cube from Veeamon 2018. We're in the Windy City and we'll be right back.

>> Voiceover: Live from Chicago, Illinois it's The Cube, covering Veeamon 2018. Brought to you by Veeam. >> Welcome back to the Windy City everybody. You are watching The Cube, the leader in live tech coverage. My name is Dave Vellante and I'm here with Stu Miniman. Veeamon 2018 #Veeamon The husband of Mrs Philbin is here. (chuckling) The Astros, Warriors, Eagles, and whoever wins the Stanley Cup this year fan, Bill Philbin, Senior Vice President and Global Chief Technology Officer for Hybrid IT, for Hewlett Packard Enterprises, good friend of The Cube. >> Hello everybody. >> Awesome seeing you again, thanks for coming on. >> Every time you introduce me, it's something new, so I can't wait to share that with Mrs Philbin. >> Well she, like Stu says, that's where you go, for the information. >> That's exactly right, that's exactly right. >> So, another great keynote here, you stole the show last year, you're vying for top spot, top gun this year, so how do you feel? >> It was good, I said I think, the funny thing about Veeamon Hewlett Packard is, we have so much in common. The agenda is the same. It was almost hard to actually to create a unique slide set that was different from what they said, versus what we said. I think after 32 years, Mrs Philbin and I, we're not quite finishing each other's sentences, but I know what she wants me to do, without her telling me at this point. So, Veeam and HP have that kind of relationship. >> Well Veeam has a tendency and a way of inserting itself, into an ecosystem and it's certainly embedded itself into the HPE ecosystem. >> And I think that's, that's a lot of credit to Peter Mackay you know, he's joined now, what is it, 23, 24 months ago, and he's sort of brought that partner-centric viewpoint, grew the team around us. And they're really a, who we sort of pull out for other partners, say hey look, this is what these guys are doing, this is what you need to do to be successful, in a sprawling enterprise like Hewllet Packard, so, he's done a really, really good job I think. >> So give us an update on that sprawling enterprise. We make Hybrid IT simple, is your mantra. How is that going, you know where does your group fit in? >> So our couple of quarters into the new tenure of Antonio Anieri being the CEO, the engineer turned CEO. >> Got to make you happy? >> Absolutely makes me, and the thousands and thousands of engineers happy. Great first quarter, and we'll see what happens, sort of in quarter number, in quarter number two. There's a lot of focus within the company, now that we have divested ourselves of things that were less important. Focus on enterprise infrastructure, customers, around a couple of key concepts. Certainly we're pushing synergy, sort of, the synergy platform. Second pushing and talk about one sphere or hybrid IT, hybrid cloud offering, three, you know, we've had a lot of success in storage. Certainly the Nimble acquisition, which is hard to believe, was almost consummated, (mumbles) it's almost a year ago right? Its a year ago, actually in May. I just got off a holiday with Mrs Philbin, last year on the holiday, I was closing the Nimble transaction in the middle of the Indian Ocean, talking WIFI on the boat, via Google Voice to San Jose. There is nowhere now. >> Always on. >> Always on, exactly right. Talk about hyper availability. And so, I think we're pushing on, pushing on that, and then we've got, we renamed our services offering to Point Next offering, focusing around transformation et cetera so, I think the business is really clicking on all cylinders, and I think, you know, focus is actually quite interesting. We often focus on what we don't have, versus only focusing on what remains. And just like any start up, you focus on the first market segment, second market segment. Hewlett Packard is focused on enterprise infrastructure as a profession, I think that's, I think that's bode well for us. >> Yep, Bill one of the things we were talking about on the intro is, Veeam getting much deeper with their partners. One of the things we highlighted is, there's a couple of partners added in the price book. >> And what does that mean, from a go to market standpoint, that it's a little bit more seamless, you know, not invented by HP, but part of the whole solution. >> Well I said to Peter Mackay on stage, 18 months ago we did this transaction, which at the time was considered pretty revolutionary, given the fact that we had other things in the portfolio at that point that did data protection. And it's what, first and foremost, it's what our customers wanted and asked for. They wanted a more seamless transaction between the two organizations so we went ahead and did that. Second, there's always been a strong engineering relationship between the two companies, but if it's still talking to two partners at the end of the day, it doesn't matter. You know, an integrated offering, on the same price list, on the same PO, supported by both companies together, is really what customers are looking for. And as I said in the keynote, you know, we closed the single biggest transaction that, in Veeam's history, which was a Hewlett Packard and Veeam win for every seven dollars, I think it was, of Hewlett Packard, that we closed, a dollar of that was Veeam. And that's, sort of, the power of the partnership, demonstrated by the two companies coming together. And it's hard to believe, again, it's 18 months, you know, that's a pretty impressive track record. >> You're obviously not sharing, you know, any names on that deal. But can you share with us, any other information that's public, why did you win? Maybe you can share, you know, the type of win that it was. Why HPE and Veeam? >> Yeah, the customer, obviously, is not prepared to have us, sort of, talk about their name, for now anyway. But, essentially, what the customer was looking for was, a complete sort of back up and recovery solution that covered, not only traditional virtualized environments, but also gave them outlet for the cloud. More and more customers, as I said in my keynote, it's more than keeping a copy everyday between your primary and your secondary. You need a third copy, because guess what happens? And I said this last year, if you remember. Boo boos happen quickly right? (laughing) Something changed and deleted here, actually fast replicates here, you need a third copy to be complete, they were looking for that. And third, they were looking for, sort of, they were already an HP customer, they were looking for solution offering that would amortize their existing real estate, that was the three reasons. >> And, but your third copy model is different than having to build a third data center. It's a much more space-efficient, modern approach. >> So together with Veeam and our, (mumbles) our displace back up target, roughly last year, we announced this capability called Cloudbank which allows you to keep a copy in any S3 compliant interface. So it can be in on prem, or on open stack, implementation or it can be on any of the web services providers and it's done in an efficient, data protected deetip capability so, it's an efficient way to keep a copy of, what we call hail Mary data. Right, you hope you never need it right? An efficient way to sort of do that. >> Okay, one of the big topics of discussion these days is ransomware, what are your thoughts on ransomware? >> Well it's funny, you know, I always thought ransomware was something that you wore when you were dropping off the money, right. (laughing) Apparently it means something more than that. >> Dave: Yeah, I think so. (voice drowned out by crosstalk) >> Last year at Discover, we had a customer who was a meat processor, a meat processor. Now you can imagine what kind of customers you're going to ask, a customer that does meat processing. But it actually infected their servers that actually helped them run their meat processing capability. Now that is not a business that you would expect someone will call you up and say, "Hi we have your data, give us $1000 and we'll give you your data back.". It's a meat processing company, or a gourmet food provider is a more typical way they would present it. But if they're, if that's happening to that sort of line of business, imagine what's happening to power plants, you know et cetera et cetera. So the ramsomware stuff is really real. So if you think about HP, we developed the most secure server with our Gen10 platform. We actually guarantee and actually look at changes being made in a firmer environment. We cover them for you automatically. We've got the Veeam sort of capability to recover, and I think we were talking about it in the preview. We used to measure availability in how many nines you had. Now, unavailability is the only thing that customers care about and if you go to a customer and say, "It's okay, you're only .0001 of the rest of our customers" that's not a good story right? It's not about when something happens, or if something happens, it's when something's going to happen and the power of Veeam and HP together, prevents, bad things from happening right? >> Bill, it's interesting, I know in my career, it's been a significant shift. It used to be, let's pardon it as much as possible, tool, redundancy, hardware focused. But cover eventually breaks. >> Bill: It does. >> Today, it's a soft world, it's distributed architecture, look at things like your synergy solution, it's much more modular and componentized. Maybe you can talk a little bit about some of those shifts, as to how we build availability architecturally, like the HPE and Veeam meet the new needs of what we need, as opposed to kind of the old way of doing things. >> It's actually interesting, so a lot of customers are looking at software-fine infrastructures as a way of amortizing their existing infrastructure. And it's actually cost savings. But I equate it to sort of, making a decision to buy Mrs Philbin a chest of drawers at a furniture store or, going to Home Depot, buying the wood, milling the wood and actually creating something myself. Now the good news about software fine infrastructure is, it's just like me making Mrs Philbin a chest of drawers, is at the end, it's mine. Right, I got it to my specifications. The bad news about software fine infrastructure is when there's a problem, Mrs Philbin isn't calling the furniture store, she's calling me right? And so, when you think about software fine infrastructure, is, you have to imagine two things. One is, are you prepared to write an application that is ready to resolve the kinds of data resiliency and data availability, capabilities that the hardware manufacturers have built into systems for 20 years. Now if you've got a unique system, that does one thing, it's probably easy. Imagine hosting 160 different applications, like that was mentioned on the stage today. And creating resiliency for that. So my conversation with customers about software define is, please go in wide open. Number two, please think about resiliency, not at the storage level, but also think about resiliency at the application level. You have got to provide for a time when something is not as available as you think it is. And make those steps consciously. >> Let me ask you, from a technologist's perspective. >> Bill: Yeah. >> If I understand you correctly, so if I'm Oracle, I can do things in the application, >> Bill: Sure. >> To accomplish that outcome, but you're not an application ISD, so you have to do things in your architecture, and assume that any application that's running can recover. >> Bill: Correct. >> Is that right? So can you help us understand that, how you approach that problem architecturally? >> Well I think you know, we haven't talked about big data, or Infosite, but if you think about it. The way to best protect a customer's infrastructure, is to actually monitor their infrastructure, compare their results to what others are receiving, recommend ways that they can actually tune up their infrastructure and eventually, act on their behalf, to make the changes to their infrastructure, so they're always protected. As I said in my keynote, it's getting to a point where you actually can't do all that stuff yourself. So the key, one of the key strategies around Hewlett Packard Enterprises, is to take the infrastructure capability which is basically machine learning, artificial intelligence, sort of capability, and deliver a system which helps customers be always on. That's the first thing that I think you can do. And you're going to be really good about making sure that I get out. >> I am, we got like two minutes, and I want to use every second I have of you, so. Okay, so I want to follow up on the Infosite, you've brought that out beyond just Nimble. >> Bill: That's right. >> I think you've brought it to Three Par and you're pushing it out throughout your entire portfolio right? >> So for customers who are going to see us at Discover, we've got some interesting things we'll talk about there. But effectively we've rolled it out across the portfolio, because, as I said in my keynote, it's not really easy to predict, why availability is an issue. Is it a host issue, is it a software issue, is it a networking issue, is it a storage issue. What Infosite eventually provides is a set of hooks that allow you to meter and measure and manage your entire infrastructure, and get it to a point where it's actually subscribing to the best practice of the organization or application provider. >> One of the things you hear a lot about is, how do you take back up and recovery, which is largely an insurance business, and create value out of it? GDPR is this sort of heinous you know, set of regulations, everybody's got to pay attention to it. Are we finally seeing the day, where the backup data protection, governance approach, can actually bring value to the rest of the organization? Or is it still just insurance, deal with it? >> So I think, I would say two things Dave, one is if you look at what Nimble's just announced with their secondary flasher right? Where we can keep a very cost effective copy of your data on an array, that looks like the array you copied it from. That can be used for dev ops, it can be used in the event of a failure et cetera. I think we're starting to see technologies available now where that, that happens. Second, the ability to make a copy of that in the cloud, and actually bring up your most critical applications in the cloud by using a Synergy, or a Onesphere capability, so you can actually keep a hot stand by, I think we're starting to see that. I think, you know backup is moving from a, cost of doing business, to something that's vital, vital in the enterprise but always remember that, the best time to think about a backup, is before you need it. The worst time to think about a backup, is when you need it. >> Yeah, and I think you'd agree that data protection as a topic, is moving up in the minds of CXO and boards of directors and the like. >> Yeah, and it's unfortunate that some of these bad actors that are out there, right, the CNN's and, this has caught more than just the IT community press, it's actually caught the business press. And I think it's drawing a lot more attention around the reason why people should think about availability. >> Right, you got to go, you got to catch a plane. But just give a little tease for HPE Discover. It's coming up in June, it's a great conference that you guys have every year, twice a year you do this US one, and one in Europe, give us a tease for June. >> I would say, this is going to be the most exciting HPE Discover on record. And this is Antonio's opportunity to sort of, talk to you about what's headed, what's headed forward for Hewlett Packard so, be there or be square. >> Okay. >> Dating myself. >> Okay we're square. Alright thank you Bill, for coming on The Cube and we'll be right back after this short break. We're at Veeamon 2018 in Chicago. Thanks for watching. (electronic music)