>> We're back at the ARIA Las Vegas. We're covering CrowdStrike's Fal.Con 22. First one since 2019. Dave Vellante and Dave Nicholson on theCUBE. Adam Meyers is here, he is the Senior Vice President of Intelligence at CrowdStrike. Adam, thanks for coming to theCUBE. >> Thanks for having me. >> Interesting times, isn't it? You're very welcome. Senior Vice President of Intelligence, tell us what your role is. >> So I run all of our intelligence offerings. All of our analysts, we have a couple hundred analysts that work at CrowdStrike tracking threat actors. There's 185 threat actors that we track today. We're constantly adding more of them and it requires us to really have that visibility and understand how they operate so that we can inform our other products: our XDR, our Cloud Workload Protections and really integrate all of this around the threat actor. >> So it's that threat hunting capability that CrowdStrike has. That's what you're sort of... >> Well, so think of it this way. When we launched the company 11 years ago yesterday, what we wanted to do was to tell customers, to tell people that, well, you don't have a malware problem, you have an adversary problem. There are humans that are out there conducting these attacks, and if you know who they are what they're up to, how they operate then you're better positioned to defend against them. And so that's really at the core, what CrowdStrike started with and all of our products are powered by intelligence. All of our services are our OverWatch and our Falcon complete, all powered by intelligence because we want to know who the threat actors are and what they're doing so we can stop them. >> So for instance like you can stop known malware. A lot of companies can stop known malware, but you also can stop unknown malware. And I infer that the intelligence is part of that equation, is that right? >> Absolutely. That that's the outcome. That's the output of the intelligence but I could also tell you who these threat actors are, where they're operating out of, show you pictures of some of them, that's the threat intel. We are tracking down to the individual persona in many cases, these various threats whether they be Chinese nation state, Russian threat actors, Iran, North Korea, we track as I said, quite a few of these threats. And over time, we develop a really robust deep knowledge about who they are and how they operate. >> Okay. And we're going to get into some of that, the big four and cyber. But before we do, I want to ask you about the eCrime index stats, the ECX you guys call it a little side joke for all your nerds out there. Maybe you could explain that Adam >> Assembly humor. >> Yeah right, right. So, but, what is that index? You guys, how often do you publish it? What are you learning from that? >> Yeah, so it was modeled off of the Dow Jones industrial average. So if you look at the Dow Jones it's a composite index that was started in the late 1800s. And they took a couple of different companies that were the industrial component of the economy back then, right. Textiles and railroads and coal and steel and things like that. And they use that to approximate the overall health of the economy. So if you take these different stocks together, swizzle 'em together, and figure out some sort of number you could say, look, it's up. The economy's doing good. It's down, not doing so good. So after World War II, everybody was exuberant and positive about the end of the war. The DGI goes up, the oil crisis in the seventies goes down, COVID hits goes up, sorry, goes down. And then everybody realizes that they can use Amazon still and they can still get the things they need goes back up with the eCrime index. We took that approach to say what is the health of the underground economy? When you read about any of these ransomware attacks or data extortion attacks there are criminal groups that are working together in order to get things spammed out or to buy credentials and things like that. And so what the eCrime index does is it takes 24 different observables, right? The price of a ransom, the number of ransom attacks, the fluctuation in cryptocurrency, how much stolen material is being sold for on the underground. And we're constantly computing this number to understand is the eCrime ecosystem healthy? Is it thriving or is it under pressure? And that lets us understand what's going on in the world and kind of contextualize it. Give an example, Microsoft on patch Tuesday releases 56 vulnerabilities. 11 of them are critical. Well guess what? After hack Tuesday. So after patch Tuesday is hack Wednesday. And so all of those 11 vulnerabilities are exploitable. And now you have threat actors that have a whole new array of weapons that they can deploy and bring to bear against their victims after that patch Tuesday. So that's hack Wednesday. Conversely we'll get something like the colonial pipeline. Colonial pipeline attack May of 21, I think it was, comes out and all of the various underground forums where these ransomware operators are doing their business. They freak out because they don't want law enforcement. President Biden is talking about them and he's putting pressure on them. They don't want this ransomware component of what they're doing to bring law enforcement, bring heat on them. So they deplatform them. They kick 'em off. And when they do that, the ransomware stops being as much of a factor at that point in time. And the eCrime index goes down. So we can look at holidays, and right around Thanksgiving, which is coming up pretty soon, it's going to go up because there's so much online commerce with cyber Monday and such, right? You're going to see this increase in online activity; eCrime actors want to take advantage of that. When Christmas comes, they take vacation too; they're going to spend time with their families, so it goes back down and it stays down till around the end of the Russian Orthodox Christmas, which you can probably extrapolate why that is. And then it goes back up. So as it's fluctuating, it gives us the ability to really just start tracking what that economy looks like. >> Realtime indicator of that crypto. >> I mean, you talked about, talked about hack Wednesday, and before that you mentioned, you know, the big four, and I think you said 185 threat actors that you're tracking, is 180, is number 185 on that list? Somebody living in their basement in their mom's basement or are the resources necessary to get on that list? Such that it's like, no, no, no, no. this is very, very organized, large groups of people. Hollywood would have you believe that it's guy with a laptop, hack Wednesday, (Dave Nicholson mimics keyboard clacking noises) and everything done. >> Right. >> Are there individuals who are doing things like that or are these typically very well organized? >> That's a great question. And I think it's an important one to ask and it's both it tends to be more, the bigger groups. There are some one-off ones where it's one or two people. Sometimes they get big. Sometimes they get small. One of the big challenges. Have you heard of ransomware as a service? >> Of course. Oh my God. Any knucklehead can be a ransomwarist. >> Exactly. So we don't track those knuckleheads as much unless they get onto our radar somehow, they're conducting a lot of operations against our customers or something like that. But what we do track is that ransomware as a service platform because the affiliates, the people that are using it they come, they go and, you know, it could be they're only there for a period of time. Sometimes they move between different ransomware services, right? They'll use the one that's most useful for them that that week or that month, they're getting the best rate because it's rev sharing. They get a percentage that platform gets percentage of the ransom. So, you know, they negotiate a better deal. They might move to a different ransomware platform. So that's really hard to track. And it's also, you know, I think more important for us to understand the platform and the technology that is being used than the individual that's doing it. >> Yeah. Makes sense. Alright, let's talk about the big four. China, Iran, North Korea, and Russia. Tell us about, you know, how you monitor these folks. Are there different signatures for each? Can you actually tell, you know based on the hack who's behind it? >> So yeah, it starts off, you know motivation is a huge factor. China conducts espionage, they do it for diplomatic purposes. They do it for military and political purposes. And they do it for economic espionage. All of these things map to known policies that they put out, the Five Year Plan, the Made in China 2025, the Belt and Road Initiative, it's all part of their efforts to become a regional and ultimately a global hegemon. >> They're not stealing nickels and dimes. >> No they're stealing intellectual property. They're stealing trade secrets. They're stealing negotiation points. When there's, you know a high speed rail or something like that. And they use a set of tools and they have a set of behaviors and they have a set of infrastructure and a set of targets that as we look at all of these things together we can derive who they are by motivation and the longer we observe them, the more data we get, the more we can get that attribution. I could tell you that there's X number of Chinese threat groups that we track under Panda, right? And they're associated with the Ministry of State Security. There's a whole other set. That's too associated with the People's Liberation Army Strategic Support Force. So, I mean, these are big operations. They're intelligence agencies that are operating out of China. Iran has a different set of targets. They have a different set of motives. They go after North American and Israeli businesses right now that's kind of their main operation. And they're doing something called hack and lock and leak. With a lock and leak, what they're doing is they're deploying ransomware. They don't care about getting a ransom payment. They're just doing it to disrupt the target. And then they're leaking information that they steal during that operation that brings embarrassment. It brings compliance, regulatory, legal impact for that particular entity. So it's disruptive >> The chaos creators that's.. >> Well, you know I think they're trying to create a they're trying to really impact the legitimacy of some of these targets and the trust that their customers and their partners and people have in them. And that is psychological warfare in a certain way. And it, you know is really part of their broader initiative. Look at some of the other things that they've done they've hacked into like the missile defense system in Israel, and they've turned on the sirens, right? Those are all things that they're doing for a specific purpose, and that's not China, right? Like as you start to look at this stuff, you can start to really understand what they're up to. Russia very much been busy targeting NATO and NATO countries and Ukraine. Obviously the conflict that started in February has been a huge focus for these threat actors. And then as we look at North Korea, totally different. They're doing, there was a major crypto attack today. They're going after these crypto platforms, they're going after DeFi platforms. They're going after all of this stuff that most people don't even understand and they're stealing the crypto currency and they're using it for revenue generation. These nuclear weapons don't pay for themselves, their research and development don't pay for themselves. And so they're using that cyber operation to either steal money or steal intelligence. >> They need the cash. Yeah. >> Yeah. And they also do economic targeting because Kim Jong Un had said back in 2016 that they need to improve the lives of North Koreans. They have this national economic development strategy. And that means that they need, you know, I think only 30% of North Korea has access to reliable power. So having access to clean energy sources and renewable energy sources, that's important to keep the people happy and stop them from rising up against the regime. So that's the type of economic espionage that they're conducting. >> Well, those are the big four. If there were big five or six, I would presume US and some Western European countries would be on there. Do you track, I mean, where United States obviously has you know, people that are capable of this we're out doing our thing, and- >> So I think- >> That defense or offense, where do we sit in this matrix? >> Well, I think the big five would probably include eCrime. We also track India, Pakistan. We track actors out of Columbia, out of Turkey, out of Syria. So there's a whole, you know this problem is getting worse over time. It's proliferating. And I think COVID was also, you know a driver there because so many of these countries couldn't move human assets around because everything was getting locked down. As machine learning and artificial intelligence and all of this makes its way into the cameras at border and transfer points, it's hard to get a human asset through there. And so cyber is a very attractive, cheap and deniable form of espionage and gives them operational capabilities, not, you know and to your question about US and other kind of five I friendly type countries we have not seen them targeting our customers. So we focus on the threats that target our customers. >> Right. >> And so, you know, if we were to find them at a customer environment sure. But you know, when you look at some of the public reporting that's out there, the malware that's associated with them is focused on, you know, real bad people, and it's, it's physically like crypted to their hard drive. So unless you have sensor on, you know, an Iranian or some other laptop that might be target or something like that. >> Well, like Stuxnet did. >> Yeah. >> Right so. >> You won't see it. Right. See, so yeah. >> Well Symantec saw it but way back when right? Back in the day. >> Well, I mean, if you want to go down that route I think it actually came from a company in the region that was doing the IR and they were working with Symantec. >> Oh, okay. So, okay. So it was a local >> Yeah. I think Crisis, I think was the company that first identified it. And then they worked with Symantec. >> It Was, they found it, I guess, a logic controller. I forget what it was. >> It was a long time ago, so I might not have that completely right. >> But it was a seminal moment in the industry. >> Oh. And it was a seminal moment for Iran because you know, that I think caused them to get into cyber operations. Right. When they realized that something like that could happen that bolstered, you know there was a lot of underground hacking forums in Iran. And, you know, after Stuxnet, we started seeing that those hackers were dropping their hacker names and they were starting businesses. They were starting to try to go after government contracts. And they were starting to build training offensive programs, things like that because, you know they realized that this is an opportunity there. >> Yeah. We were talking earlier about this with Shawn and, you know, in the nuclear war, you know the Cold War days, you had the mutually assured destruction. It's not as black and white in the cyber world. Right. Cause as, as Robert Gates told me, you know a few years ago, we have a lot more to lose. So we have to be somewhat, as the United States, careful as to how much of an offensive posture we take. >> Well here's a secret. So I have a background on political science. So mutually assured destruction, I think is a deterrent strategy where you have two kind of two, two entities that like they will destroy each other if they so they're disinclined to go down that route. >> Right. >> With cyber I really don't like that mutually assured destruction >> That doesn't fit right. >> I think it's deterrents by denial. Right? So raising the cost, if they were to conduct a cyber operation, raising that cost that they don't want to do it, they don't want to incur the impact of that. Right. And think about this in terms of a lot of people are asking about would China invade Taiwan. And so as you look at the cost that that would have on the Chinese military, the POA, the POA Navy et cetera, you know, that's that deterrents by denial, trying to, trying to make the costs so high that they don't want to do it. And I think that's a better fit for cyber to try to figure out how can we raise the cost to the adversary if they operate against our customers against our enterprises and that they'll go someplace else and do something else. >> Well, that's a retaliatory strike, isn't it? I mean, is that what you're saying? >> No, definitely not. >> It's more of reducing their return on investment essentially. >> Yeah. >> And incenting them- disincening them to do X and sending them off somewhere else. >> Right. And threat actors, whether they be criminals or nation states, you know, Bruce Lee had this great quote that was "be like water", right? Like take the path of least resistance, like water will. Threat actors do that too. So, I mean, unless you're super high value target that they absolutely have to get into by any means necessary, then if you become too hard of a target, they're going to move on to somebody that's a little easier. >> Makes sense. Awesome. Really appreciate your, I could, we'd love to have you back. >> Anytime. >> Go deeper. Adam Myers. We're here at Fal.Con 22, Dave Vellante, Dave Nicholson. We'll be right back right after this short break. (bouncy music plays)

>>Okay, welcome back everyone. There's the cubes coverage of VMware Explorer, 22 formerly world. We've been here since 2010 and world 2010 to now it's 2022. And it's VMware Explorer. We're here at the CEO, regular writer. Welcome back to the cube. Great to see you in person. >>Yeah. Great to be here in person, >>Dave and I are, are proud to say that we've been to 12 straight years of covering VMware's annual conference. And thank you. We've seen the change in the growth over time and you know, it's kind of, I won't say pinch me moment, but it's more of a moment of there's the VMware that's grown into the cloud after your famous deal with Andy jazzy in 2016, we've been watching what has been a real sea change and VMware since taking that legacy core business and straightening out the cloud strategy in 2016, and then since then an acceleration of, of cloud native, like direction under your leadership at VMware. Now you're the CEO take us through that because this is where we are right now. We are here at the pinnacle of VMware 2.0 or cloud native VMware, as you point out on your keynote, take us through that history real quick. Cuz I think it's important to know that you've been the architect of a lot of this change and it's it's working. >>Yeah, definitely. We are super excited because like I said, it's working, the history is pretty simple. I mean we tried running our own cloud cloud air. We cloud air didn't work so well. Right. And then at that time, customers really gave us strong feedback that the hybrid they wanted was a Amazon together. Right. And so that's what we went back and did and the andjay announcement, et cetera. And then subsequently as we were continue to build it out, I mean, once that happened, we were able to go work with the Satia and Microsoft and others to get the thing built out all over. Then the next question was okay, Hey, that's great for the workloads that are running on vSphere. What's the story for workloads that are gonna be cloud native and benefit a lot from being cloud native. So that's when we went the Tansu route and the Kubernetes route, we did a couple of acquisitions and then we started that started paying off now with the Tansu portfolio. And last but not the least is once customers have this distributed portfolio now, right. Increasingly everything is becoming multi-cloud. How do you manage and connect and secure. So that's what you start seeing that you saw the management announcement, networking and security and everything else is cooking. And you'll see more stuff there. >>Yeah know, we've been talking about super cloud. It's kinda like a multi-cloud on steroids kind a little bit different pivot of it. And we're seeing some use cases. >>No, no, it's, it's a very great, it's a, it's pretty close to what we talk about. >>Awesome. I mean, and we're seeing this kind of alignment in the industry. It's kind of open, but I have to ask you, when did you, you have the moment where you said multicloud is the game changer moment. When did you have, because you guys had hybrid, which is really early as well. When was the Raghu? When did you have the moment where you said, Hey, multicloud is what's happening. That's we're doubling down on that go. >>I mean, if you think about the evolution of the cloud players, right. Microsoft really started picking up around the 2018 timeframe. I mean, I'm talking about Azure, right? >>In a big way. >>Yeah. In a big way. Right. When that happened and then Google got really serious, it became pretty clear that this was gonna be looking more like the old database market than it looked like a single player cloud market. Right. Equally sticky, but very strong players all with lots of IP creation capability. So that's when we said, okay, from a supplier side, this is gonna become multi. And from a customer side that has always been their desire. Right. Which is, Hey, I don't want to get locked into anybody. I want to do multiple things. And the cloud vendors also started leveraging that OnPrem. Microsoft said, Hey, if you're a windows customer, your licensing is gonna be better off if you go to Azure. Right. Oracle did the same thing. So it just became very clear. >>I am, I have gone make you laugh. I always go back to the software mainframe because I, I think you were here. Right. I mean, you're, you're almost 20 years in. Yeah. And I, the reason I appreciate that is because, well, that's technically very challenging. How do you make virtualization overhead virtually non-existent how do you run any workload? Yeah. How do you recover from, I mean, that's was not trivial. Yeah. Okay. So what's the technical, you know, analog today, the real technical challenge. When you think about cross cloud services. >>Yeah. I mean, I think it's different for each of these layers, right? So as I was alluding to for management, I mean, you can go each one of them by themselves, there is one way of Mo doing multi-cloud, which is multiple clouds. Right. You could say, look, I'm gonna build a great product for AWS. And then I'm gonna build a great product for Azure. I'm gonna build a great product for Google. That's not what aria is. Aria is a true multi-cloud, which means it pulls data in from multiple places. Right? So there are two or three, there are three things that aria has done. That's I think is super interesting. One is they're not trying to take all the data and bring it in. They're trying to federate the data sources. And secondly, they're doing it in real time and they're able to construct this graph of a customer's cloud resources. >>Right. So to keep the graph constructed and pulling data, federating data, I think that's a very interesting concept. The second thing that, like I said is it's a real time because in the cloud, a container might come and go like that. Like that is a second technical challenge. The third it's not as much a technical challenge, but I really like what they have done for the interface they've used GraphQL. Right? So it's not about if you remember in the old world, people talk about single pan or glass, et cetera. No, this is nothing to do with pan or glass. This is a data model. That's a graph and a query language that's suited for that. So you can literally think of whatever you wanna write. You can write and express it in GraphQL and pull all sorts of management applications. You can say, Hey, I can look at cost. I can look at metrics. I can look at whatever it is. It's not five different types of applications. It's one, that's what I think had to do it at scale is the other problem. And, and >>The, the technical enable there is just it's good software. It's a protocol. It's >>No, no, it's, it's, it's it's software. It's a data model. And it's the Federation architecture that they've got, which is open. Right. You can pull in data from Datadog, just as well as from >>Pretty >>Much anything data from VR op we don't care. Right? >>Yeah. Yeah. So rego, I have to ask you, I'm glad you like the Supercloud cuz you know, we, we think multi-cloud still early, but coming fast. I mean, everyone has multiple clouds, but spanning this idea of spanning across has interesting sequences. Do you data, do you do computer both and a lot of good things happening. Kubernetes been containers, all that good stuff. Okay. How do you see the first rev of multi-cloud evolving? Like is it what happens? What's the sequence, what's the order of operations for a client standpoint? Customer standpoint of, of multicloud or Supercloud because we think we're seeing it as a refactoring of something like snowflake, they're a data base, they're a data warehouse on the cloud. They, they say data cloud they'd they like they'll tell us no, you, we're not a data. We're not a data warehouse. We're data cloud. Okay. You're a data warehouse refactored for the CapEx from Amazon and cooler, newer things. Yeah, yeah, yeah. That's a behavior change. Yeah. But it's still a data warehouse. Yeah. How do you see this multi-cloud environment? Refactoring? Is there something that you see that might be different? That's the same if you know what I'm saying? Like what's what, what's the ne the new thing that's happening with multi-cloud, that's different than just saying I'm I'm doing SAS on the cloud. >>Yeah. So I would say, I would point to a, a couple of things that are different. Firstly, my, the answer depends on which category you are in. Like the category that snowflake is in is very different than Kubernetes or >>Something or Mongo DB, right? >>Yeah. Or Mongo DB. So, so it is not appropriate to talk about one multi-cloud approach across data and compute and so, so on and so forth. So I'll talk about the spaces that we play. Right. So step one, for most customers is two application architectures, right? The cloud native architecture and an enterprise native architecture and tying that together either through data or through networks or through et cetera. So that's where most of the customers are. Right. And then I would say step two is to bring these things together in a more, in a closer fashion and that's where we are going. And that is why you saw the cloud universal announcement and that's already, you've seen the Tansu announcement, et cetera. So it's really, the step one was two distinct clouds. That is just two separate islands. >>So the other thing that we did, that's really what my, the other thing that I'd like to get to your reaction on, cause this is great. You're like a masterclass in the cube here. Yeah, totally is. We see customers becoming super clouds because they're getting the benefit of, of VMware, AWS. And so if I'm like a media company or insurance company, if I have scale, if I continue to invest in, in cloud native development, I do all these things. I'm gonna have a da data scale advantage, possibly agile, which means I can build apps and functionality very quick for customers. I might become my own cloud within the vertical. Exactly. And so I could then service other people in the insurance vertical if I'm the insurance company with my technology and create a separate power curve that never existed before. Cause the CapEx is off the table, it's operating expense. Yep. That runs into the income statement. Yep. This is a fundamental business model shift and an advantage of this kind of scenario. >>And that's why I don't think snowflakes, >>What's your reaction to that? Cuz that's something that, that is not really, talk's highly nuanced and situational. But if Goldman Sachs builds the biggest cloud on the planet for financial service for their own benefit, why wouldn't they >>Exactly. >>And they're >>Gonna build it. They sort of hinted at it that when they were up on stage on AWS, right. That is just their first big step. I'm pretty sure over time they would be using other clouds. Think >>They already are on >>Prem. Yeah. On prem. Exactly. They're using VMware technology there. Right? I mean think about it, AWS. I don't know how many billions of dollars they're spending on AWS R and D Microsoft is doing the same thing. Google's doing the same thing we are doing. Not as much as them that you're doing oral chair. Yeah. If you are a CIO, you would be insane not to take advantage of all of this IP that's getting created and say, look, I'm just gonna bet on one. Doesn't make any sense. Right. So that's what you're seeing. And then >>I think >>The really smart companies, like you talked about would say, look, I will do something for my industry that uses these underlying clouds as the substrate, but encapsulates my IP and my operating model that I then offer to other >>Partners. Yeah. And their incentive for differentiation is scale. Yeah. And capability. And that's a super cloud. That's a, or would be say it environment. >>Yeah. But this is why this, >>It seems like the same >>Game, but >>This, I mean, I think it environment is different than >>Well, I mean it advantage to help the business, the old day service, you >>Said snowflake guys out the marketing guys. So you, >>You said snowflake data warehouse. See, I don't think it's in data warehouse. It's not, that's like saying, you >>Know, I, over >>VMware is a virtualization company or service now is a help desk tool. I, this is the change. Yes. That's occurring. Yes. And that you're enabling. So take the Goldman Sachs example. They're gonna run OnPrem. They're gonna use your infrastructure to do selfer. They're gonna build on AWS CapEx. They're gonna go across clouds and they're gonna need some multi-cloud services. And that's your opportunity. >>Exactly. That's that's really, when you, in the keynote, I talked about cloud universal. Right? So think of a future where we can go to a customer and say, Mr. Customer buy thousand scores, a hundred thousand cores, whatever capacity you can use it, any which way you want on any application platform. Right. And it could be OnPrem. It could be in the cloud, in the cloud of their choice in multiple clouds. And this thing can be fungible and they can tie it to the right services. If they like SageMaker they could tie it to Sage or Aurora. They could tie it to Aurora, cetera, et cetera. So I think that's really the foundation that we are setting. Well, I think, I >>Mean, you're building a cloud across clouds. I mean, that's the way I look at it. And, and that's why it's, to me, the, the DPU announcement, the project Monterey coming to fruition is so important. Yeah. Because if you don't have that, if you're not on that new Silicon curve yep. You're gonna be left behind. Oh, >>Absolutely. It allows us to build things that you would not otherwise be able to do, >>Not to pat ourselves on the back Ragu. But we, in what, 2013 day we said, feel >>Free. >>We, we said with Lou Tucker when OpenStack was crashing. Yeah. Yeah. And then Kubernetes was just a paper. We said, this could be the interoperability layer. Yeah. You got it. And you could have inter clouding cuz there was no clouding. I was gonna riff on inter networking. But if you remember inter networking during the OSI model, TCP and IP were hardened after the physical data link layer was taken care of. So that enabled an entire new industry that was open, open interconnect. Right. So we were saying inter clouding. So what you're kind of getting at with cross cloud is you're kind of creating this routing model if you will. Not necessarily routing, but like connection inter clouding, we called it. I think it's kinda a terrible name. >>What you said about Kubernetes is super critical. It is turning out to be the infrastructure API so long. It has been an infrastructure API for a certain cluster. Right. But if you think about what we said about VSE eight with VSE eight Kubernetes becomes the data center API. Now we sort of glossed over the point of the keynote, but you could do operations storage, anything that you can do on vSphere, you can do using a Kubernetes API. Yeah. And of course you can do all the containers in the Kubernetes clusters and et cetera, is what you could always do. Now you could do that on a VMware environment. OnPrem, you could do that on EKS. Now Kubernetes has become the standard programming model for infrastructure across. It >>Was the great equalizer. Yeah. You, we used to say Amazon turned the data center through an API. It turns, turns of like a lot of APIs and a lot of complexity. Right. And Kubernetes changed. >>Well, the role, the role of defacto standards played a lot into the T C P I P revolution before it became a standard standard. What the question Raghu, as you look at, we had submit on earlier, we had tutorial on as well. What's the disruptive enabler from a defacto. What in your mind, what should, because Kubernetes became kind of defacto, even though it was in the CNCF and in an open source open, it wasn't really standard standard. There's no like standards, body, but what de facto thing has to happen in your mind's eye around making inter clouding or connecting clouds in a, in a way that's gonna create extensibility and growth. What do you see as a de facto thing that the industry should rally around? Obviously Kubernetes is one, is there something else that you see that's important for in an open way that the industry can discuss and, and get behind? >>Yeah. I mean, there are things like identity, right? Which are pretty critical. There is connectivity and networking. So these are all things that the industry can rally around. Right. And that goes along with any modern application infrastructure. So I would say those are the building blocks that need to happen on the data side. Of course there are so many choices as well. So >>How about, you know, security? I think about, you know, when after stuck net, the, the whole industry said, Hey, we have to do a better job of collaborating. And then when you said identity, it just sort of struck me. But then a lot of people tried to sort of monetize private reporting and things like that. So you do you see a movement within the technology industry to do a better job of collaborating to, to solve the acute, you know, security problems? >>Yeah. I think the customer pressure and government pressure right. Causes that way. Yeah. Even now, even in our current universe, you see, there is a lot of behind the scenes collaboration amongst the security teams of all of the tech companies that is not widely seen or known. Right. For example, my CISO knows the AWS CSO or the Microsoft CSO and they all talk and they share the right information about vulnerability attacks and so on and so forth. So there's already a certain amount of collaboration that's happening and that'll only increase. Do, >>Do you, you know, I was somewhat surprised. I didn't hear more in your face about security would, is that just because you had such a strong multi-cloud message that you wanted to get, get across, cuz your security story is very strong and deep. When you get into the DPU side of things, the, you know, the separation of resources and the encryption and I'll end to end >>I'm well, we have a phenomenal security story. Yeah. Yeah. Tell security story and yes. I mean I'll need guilty to the fact that in the keynote you have yeah, yeah, sure time. But what we are doing with NSX and you will hear about some NSX projects as you, if you have time to go to some of the, the sessions. Yeah. There's one called project, not star. Another is called project Watchman or watch, I think it's called, we're all dealing with this. That is gonna strengthen the security story even more. Yeah. >>We think security and data is gonna be a big part of it. Right. As CEO, I have to ask you now that you're the CEO, first of all, I'd love to talk about product with you cuz you're yeah. Yeah. We just great conversation. We want to kind of read thet leaves and ask pointed questions cuz we're putting the puzzle together in real time here with the audience. But as CEO, now you have a lot of discussions around the business. You, the Broadcom thing happening, you got the rename here, you got multi-cloud all good stuff happening. Dave and I were chatting before we came on this morning around the marketplace, around financial valuations and EBIDA numbers. When you have so much strategic Goodwill and investment in the oven right now with the, with the investments in cloud native multi-year investments on a trajectory, you got economies of scale there. >>It's just now coming out to be harvest and more behind it. Yeah. As you come into the Broadcom and or the new world wave that's coming, how do you talk about that value? Cuz you can't really put a number on it yet because there's no customers on it. I mean some customers, but you can't probably some for form. It's not like sales numbers. Yeah. Yeah. How do you make the argument to the PE type folks out there? Like EBIDA and then all the strategic value. What's the, what's the conversation like if you can share any, I know it's obviously public company, all the things going down, but like how do you talk about strategic value to numbers folks? >>Yeah. I mean, we are not talking to PE guys at all. Right. I mean the only conversation we have is helping Broadcom with >>Yeah. But, but number people who are looking at the number, EBIDA kind of, >>Yeah. I mean, you'd be surprised if, for, for example, even with Broadcom, they look at the business holistically as what are the prospects of this business becoming a franchise that is durable and could drive a lot of value. Right. So that's how they look at it holistically. It's not a number driven. >>They do. They look at that. >>Yeah. Yeah, absolutely. So I think it's a misperception to say, Hey, it's a numbers driven conversation. It's a business driven conversation where, I mean, and Hawk's been public about it. He says, look, I look at businesses. Can they be leaders in their market? Yeah. Because leaders get, as we all know a disproportionate share of the economic value, is it a durable franchise that's gonna last 10 years or more, right. Obviously with technology changes in between, but 10 years or more >>Or 10, you got your internal, VMware talent customers and >>Partners. Yeah. Significant competitive advantage. So that's, that's really where the conversation starts and the numbers fall out of it. Got it. >>Okay. So I think >>There's a track record too. >>That culture >>That VMware has, you've always had an engineering culture. That's turned, you know, ideas and problems into products that, that have been very successful. >>Well, they had different engineering cultures. They're chips. You guys are software. Right. You guys know >>Software. Yeah. Mean they've been very successful with Broadcom, the standalone networking company since they took it over. Right. I mean, it's, there's a lot of amazing innovation going on there. >>Yeah. Not, not that I'm smiling. I want to kind of poke at this question question. I'll see if I get an answer out of you, when you talk to Hawk tan, does he feel like he bought a lot more than he thought or does he, did he, does he know it's all here? So >>The last two months, I mean, they've been going through a very deliberate process of digging into each business and certainly feels like he got a phenomenal asset base. Yeah. He said that to me even today after the keynote, right. Is the amazing amount of product capability that he's seeing in every one of our businesses. And that's been the constant frame. >>But congratulations on that. >>I've heard, I've heard Hawk talk about the shift to, to Mer merchant Silicon. Yeah. From custom Silicon. But I wanted to ask you when you look at things like AWS nitro yeah. And graviton and train and the advantage that AWS has with custom Silicon, you see Google and Microsoft sort of Alibaba following suit. Would it benefit you to have custom Silicon for, for DPU? I mean, I guess you, you know, to have a tighter integration or do you feel like with the relationships that you have that doesn't buy you anything? >>Yeah. I mean we have pretty strong relationships with in fact fantastic relationships with the Invidia and Intel and AMD >>Benon and AMD now. >>Yeah. Yeah. I mean, we've been working with the Pendo team in their previous incarnations for years. Right, right. When they were at Cisco and then same thing with the, we know the Melanox team as well as the invi original teams and Intel is the collaboration right. From the get go of the company. So we don't feel a need for any of that. We think, I mean, it's clear for those cloud folks, right. They're going towards a vertical integration model and select portions of their stack, like you talked about, but there is always a room for horizontal integration model. Right. And that's what we are a part of. Right. So there'll be a number of DPU pro vendors. There'll be a number of CPU vendors. There'll be a number of other storage, et cetera, et cetera. And we think that is goodness in an alternative model compared to a vertically integr >>And yeah. What this trade offs, right. It's not one or the other, I mean I used to tell, talk to Al Shugar about this all the time. Right. I mean, if vertically integrated, there may be some cost advantages, but then you've got flexibility advantages. If you're using, you know, what the industry is building. Right. And those are the tradeoffs, so yeah. Yeah. >>Greg, what are you excited about right now? You got a lot going on obviously great event. Branding's good. Love the graphics. I was kind of nervous about the name changed. I likem world, but you know, that's, I'm kind of like it >>Doesn't readily roll off your phone. Yeah. >>I know. We, I had everyone miscue this morning already and said VMware Explorer. So >>You pay Laura fine. Yeah. >>Now, I >>Mean a quarter >>Curse jar, whatever I did wrong. I don't believe it. Only small mistake that's because the thing wasn't on. Okay. Anyway, what's on your plate. What's your, what's some of the milestones. Do you share for your employees, your customers and your partners out there that are watching that might wanna know what's next in the whole Broadcom VMware situation. Is there a timeline? Can you talk publicly about what? To what people can expect? >>Yeah, no, we, we talk all the time in the company about that. Right? Because even if there is no news, you need to talk about what is where we are. Right. Because this is such a big transaction and employees need to know where we are at every minute of the day. Right? Yeah. So, so we definitely talk about that. We definitely talk about that with customers too. And where we are is that the, all the processes are on track, right? There is a regulatory track going on. And like I alluded to a few minutes ago, Broadcom is doing what they call the discovery phase of the integration planning, where they learn about the business. And then once that is done, they'll figure out what the operating model is. What Broadcom is said publicly is that the acquisition will close in their fiscal 23, which starts in November of this year, runs through October of next year. >>So >>Anywhere window, okay. As to where it is in that window. >>All right, Raghu, thank you so much for taking valuable time out of your conference time here for the queue. I really appreciate Dave and I both appreciate your friendship. Congratulations on the success as CEO, cuz we've been following your trials and tribulations and endeavors for many years and it's been great to chat with you. >>Yeah. Yeah. It's been great to chat with you, not just today, but yeah. Over a period of time and you guys do great work with this, so >>Yeah. And you guys making, making all the right calls at VMware. All right. More coverage. I'm shot. Dave ante cube coverage day one of three days of world war cup here in Moscone west, the cube coverage of VMware Explorer, 22 be right back.

(intro music) >> Good evening. Welcome back to theCUBE's coverage of day one of Snowflake Summit 22 live from Caesar's Forum in Las Vegas. Lisa Martin, here with Dave Vellante. Dave, we have had an action-packed day one. A lot of news coming out this morning. We've talked to Snowflake folks. We've talked to partners, we've talked to customers. A lot going on today. >> It's our light day. Tomorrow it even gets more intense. >> I know. I'm a little scared. (Dave Vellante laughing) We've got another partner of Snowflakes onboard with us here. Please welcome, let me get this, Sudhir Chaturvedi, President and Executive Board Member at LTI. How did I do? >> Yeah, very well, actually. (laughing) >> Dave Vellante: Outstanding. >> Welcome to the program. Tell us a little bit about you and then talk to the audience about LTI and what you're doing with Snowflake. >> Sure. So, LTI is a global technology consulting and services firm. We had (indistinct) out of India. We're part of a large conglomerate, which is over 80 years old. Our founders were two Danish engineers who came to India and were essentially stuck when World War II broke out, and they created a company that's lasted 80 years. So we are very proud of our heritage. We come from an engineering background and frankly what we do with Snowflake is really bring that engineering DNA to Snowflake. So we are, we've been a partner of Snowflake. We are an elite partner of Snowflake, and we work with them across all regions in the world, actually. 50 plus customers today. So, we have great partnership for today. >> And I have a note here. It says you're the GSI Delivery Platform Partner of the Year. Congratulations. What does that entail? What are the requirements to get that award? >> Yeah, I know we are very proud that we are the Delivery Platform Partner of the Year this year. We were the Innovation Partner of the Year, last year. So it shows the journey from innovation to execution in showing delivery. I think what it entails is that we've been recognized for leadership and excellence in executing Snowflake programs at scale, the migration programs and the implementation programs that we've done for customers across the globe. >> Take us back, how did you first find Snowflake? When did you decide to lean in as a company? >> Yeah, it's a great question actually. You know, in fact, so we went public as a company in 2016 and at that time, how do I put it politely? People weren't expecting that much of us. They thought we'll be one amongst many other companies. And we decided that we will vector the company on data, digital, and cloud, and we'll make bets on partners that are perhaps unknown at that time. So in late 2017, early 2018, we started partnering with Snowflake. And since then I must, you know, hand it to Snowflake. We have an phenomenal partnership with them. I just met Frank this morning. Chris Degnan is their Chief Revenue Officer, Colleen Kapase. All of these people have been tremendous in terms of how they work together with us across the world to bring what essentially is phenomenal technology to our clients. >> What was the allure back then? It was, you know, cloud data warehouse, simplified data warehouse, the technically splitting storage from compute, you know, infinite, blah, blah, blah. Was that the allure and saying or did you have a broader vision? >> No, I think what happened was clients were struggling with data because data and applications in our world were sort of very tightly intertwined and they weren't really leveraging data for making realtime decisions. So the moment we saw the promise of Snowflake that you can create true data on cloud, which on sort of all data on cloud, you know what Frank was talking about this morning, and it's available in real time and you can do a lot of things on it. We said, this is technology of the future. It truly is because it separated storage and compute. It did many things that were not possible before. So I think the thing is when you see promising technology as a GSI, you always wonder, should we wait for it to be proven before we jump in? >> Dave Vellante: Right. >> Or should we jump in right up front and help them prove the model? And we decided to take the first approach where we jumped in right up front. >> Dave Vellante: You bet. >> And I think that's helped us earlier. >> Jumped in head first, pandemic hits, they go public. >> Yes. >> Lots of stuff going on. Talk to us about how you're leveraging the power this flywheel that Snowflake has created that I think is just getting bigger and faster. >> Sudhir: Absolutely. >> How are you leveraging the power of the technology to really deliver business outcomes for clients? >> No, that's a great question. And the thing with our initial focus was to get people onto data on cloud and with Snowflake, but now it's really around driving business outcomes from there. So we have a suite called Fosfor which is a data to decisions product suite, which is Snowflake ready. We've also launched PolarSled too which is based on business outcomes. So what we've done is we've done is we've actually created about 155 NorthStars. So various industry sectors, what business outcome do you want to achieve? We call that a NorthStar. And then we say, how do you achieve it with Snowflake? You know, so what we are doing is we're saying let's achieve the business outcome that's going to drive more consumption, but essentially, you know, we live in a difficult world, a increasingly difficult world. So we want to help people take better database decisions. >> Well, what are some of the more interesting ways in which your clients are using Snowflake? >> Yeah, I think when I look at, for example, we have a client in the financial services sector who was struggling with, you know, they're one of the largest asset management and fund management companies in the world. They're a household name, everybody knows them. And they probably have an EFT or some sort of 401k with them. And what they were struggling with was to say, how do I actually get various sources of data together in a way that I can make better asset, you know, better fund management decisions because otherwise it was left to a lot of very traditional equity research reporting and fund managers taking their expertise. Here, the data from multiple sources being available, running some AIML routines on it, we're able to show them patterns in various asset classes, on options, on investments that they hadn't seen before. And now that they've jumped headlong into it, 15 of their units across the world are using it now. So I think the power of once you see data in action that it's sort of, it's almost like the superpower that smart people get. It's like, yeah, like you suddenly arm them with so much more than they had previously. And then they get so much better at what they're doing. And ultimately consumers like us benefit from that. So, you know, that's really where we want to go. >> What's LTIs like best sweet spot where, you go into a client and you know, wow, this is a perfect fit for what we do? >> Yeah. So I think I would say banking and insurance is 47% of our business. We really understand that business extremely well. The other aspect of that is because we come from a manufacturing heritage. We've had that as well. And media is something we've done more recently. So, you know we've got a media cloud along with Snowflake. So I would say these are the sectors that we are, so we've been very domain focused as a client, as a company. You know, domain first, technology, we'll work with whatever technology the domain needs but that's really been helpful to us all. And this is where that whole point of NorthStar and Fosfor comes back in, which is, today, I think without the data on cloud you would've never achieved the kind of outcomes that we are able to achieve with our clients today. >> How did you feel about the recent sales pivot that Snowflake has made in terms of retail, but also healthcare and life sciences? Talk to me about that and is that enabling your joint customers to really leverage? >> Yeah, no, I think it's very exciting. We are working with clients on that. They like the new model. They're looking forward to, I think what clients are now doing is they're putting data perhaps ahead of even in these times where people are looking at, you know, we are seeing seven or eight very difficult macroeconomic trends. People are wondering, clients are wondering, what's this going to mean for their business in the future? So they're looking at spends and saying, what do I prioritize? But what I find is that that data spend only goes up, you know? So, our own data practice has sort of grown fourfold in the last six years, you know? So it's been just an exponential growth for us. And essentially Snowflake is our largest bet in that space even over every other technology that's out there. So I think clients, when they see that combination of how Snowflake is changing and what we can bring to them, I think the model works well for them. >> You know, ecosystem is one of the areas that we always pay attention to. You can see, just look around,. I mean, you compare 2019 to where we are today. What's the importance of ecosystem to LTI and how do you see it evolving? >> That's a great question. So, you know, it's like, I think in About a Boy, you know, Hugh Grant says that no man is an island. You know, and I think the same thing applies for companies. Any company, no matter what size they are, if they think that they can do everything themselves and I think they're not going to be successful in the long run. We believe that the ecosystem of partnerships is what drives all the best outcomes for our clients and our clients expect that today. They want (indistinct) partners to work together. And the thing with an ecosystem is, you know no one person can dominate an ecosystem, you know? The customer has to be at the center of the ecosystem and then everybody in the ecosystem is actually saying how best do I service the customer? So I think if you have that kind of customer centricity and you understand that ecosystems, you know, on your own you'll never be as good as an ecosystem. I think you nailed it, but it requires, a partnering ethos and that's what we really like about Snowflake. Such a strong partnering ethos. I still, I keep telling people if I text or message Chris or Colleen, I'll get a response in within 15, 20 minutes. You know, that's invaluable when you're trying to do great things for your joint clients, you know, so. >> Sounds like there's a lot of synergies there around the customer obsession, customer centricity. >> Absolutely. I think responsiveness in today's world is key. You know, I think the first people to respond, even if it's to say, you know what, I hear you I'm going to get back to you. I think, you know, people love that about you. It's easy to say customer centric. It's difficult to actually practice it in real life. And we believe that, for us, responsiveness is the key. We'll respond no matter what time of day or night. And the other thing is we'll respond even with our partners, right? We are not going to respond on our own and then bring everybody else along. Even things like, I don't know this but I can refer you to a partner who can help you do this. That's also a response. >> That responsiveness is so critical, especially in this day and age where I think one of the things that was in short supply during COVID and one of the many things is patience and tolerance. >> Correct. >> Right? On us as consumers and our business lives. So being able to respond even just to say we're checking, don't know yet, that builds trust between organizations with customers. >> Well, yeah, absolutely. In fact, you know, even the first year of the pandemic we grew nine and a half percent, year and year. >> In India, we were the fastest growing company that year. And if anybody asked me why did you grow nine and half percent when the industry grew at -1%, you know, in that financial. I think it was the speed at which we responded between February and June to client requests. We responded even before, I know I was in calls till 12:30 in the night working with clients to say, okay how do we fix this? How do we change this? How do we stop doing something? How do we cut costs, whatever they needed. And what we did in the first three months actually helped us our first four months when the first wave of the pandemic really hit. Actually clients were like these guys were on our side when times are tough. Let's sort of bet on them. And the data business actually grew. And I keep saying this, you know, whenever a big macro trend hits when there's more uncertainty, people look to the data because your judgment and experience is no longer applicable. Nobody in the world had any experience or judgment that could be applied in COVID times, right? So you need to now look at the data and say, okay, is the data telling me something that I would never come to know based on my own experience? And I think, you know, this is what I call the real database decisions is no company in the world will say we don't do it. But I think today's world, we are seeing real time data decisions being taken. We see it in the supply chain all the time. We see it in how banks are processing interest rate rises, et cetera. It's the speed at which they're acting would not be possible without a data first kind of approach they've taken. >> Right. And it has to be real time these days. >> It has to be. >> Every organization. That's no longer a nice to have. >> No, you know, and data is getting out of date also so quickly. I mean, in today's world, with the war in Ukraine I think the first thing we realized was that almost every parameter on commodity, whether it was oil or steel or shipping or whatever, it changed so rapidly that the only way to predict, many of our clients were not able to to tell their customers when they would be able to deliver products and service or products, especially manufacturing clients because they just didn't know when they would get their materials and go get their parts, et cetera. And we used data to say, okay, let's at least establish a base on which, because clients get disappointed, more customers get disappointed when you don't meet a delivery date. So we wanted to say, let's make it more predictable, even in unpredictable times. So we were able to manage expectations. We were able to do that better. Without the data there was no way it would've happened. There was just no way. And frankly, for us, Snowflake is the reason. For us it's our biggest bet in the data space. And that's how most of the work that we are doing in supply chain, in fact, I'm just headed to a manufacturing event that our team has organized, which is with Snowflake on data on cloud for manufacturing clients. So we've been slightly behind the curve compared to some of the others, but now seeing the promise and saying, hey let's go for this. >> There's a tremendous amount of potential. We're only scratching the surface. We thank you so much >> Sudhir: Thank you. >> For joining David me on the program, talking about LTI, the power of what you're doing together with Snowflake. We'll let you get to that manufacturing event. I'm sure that they are looking forward to talking to you. >> Yeah, no. Thank you so much. It was lovely to speak to you. Thank you so much. >> Likewise. My pleasure. For our guest and Dave Vellante, this is Lisa Martin signing off from the show floor of Snowflake Summit 22. Day one coverage is complete. Dave and I look forward to seeing you bright and early tomorrow for a jam packed day two. Thanks so much for watching. Take good care. (outro music)

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

>>Mm. >>Welcome back to the Cube. Special presentation. Simplifying Hybrid Cloud Brought to You by Cisco We're here with Vegas Rattana, who's the director of product management for you? CSS Cisco and James Leach, who was director of business development at Cisco. Gents, welcome back to the Cube. Good to see you again. >>Hey, thanks for having us. >>Okay, Jim, let's start. We know that when it comes to navigating a transition to hybrid cloud, it's a complicated situation for a lot of customers and as organisations that they hit the pavement for their hybrid cloud journeys, one of the most common challenges that they face. What are they telling you? How is Cisco specifically UCS helping them deal with these problems? >>Well, you know, first, I think that's a That's a great question. And, you know, the customer centric view is is the way that we've taken. Um, it's kind of the approach we've taken from Day one, right? So I think that if you look at the challenges that we're solving for their customers are facing, you could break them into just a few kind of broader buckets. The first would definitely be applications, right? That's the That's where the rubber meets your proverbial road. Um, with the customer. And I would say that you know, what we're seeing is the challenges customers are facing within applications come from the way that applications have evolved. So what we're seeing now is more data centric applications. For example, um, those require that we are able to move, um, and process large datasets really in real time. Um, and the other aspect of application, I think, to give our customers kind of some pose some challenges would be around the fact that they're changing so quickly. So the application that exists today or the day that they make a purchase of infrastructure to be able to support that application. That application is most likely changing so much more rapidly than the infrastructure can't keep up with today. So, um, that creates some some challenges around. How do I build the infrastructure? How do I write? Size it without over provisioning, for example. But also there's a need for some flexibility around life cycle and planting those purchase cycles based on the life cycle of the different hardware elements and within the infrastructure, which I think is the second bucket of challenges. We see customers who are being forced to move away from the like a modular or blade approach, which offers a lot of operational and consolidation benefits. And they have to move to something like, um, Iraq server model for some applications because of these needs that these data centric applications have. And that creates a lot of opportunity for silo going. The infrastructure and those silos, in turn, create multiple operating models within the A data centre environment that, you know, again drive a lot of complexity. So that complexity is definitely the the enemy here. Um, and then finally, I think life cycles. We're seeing this democratisation of of processing, if you will, right, so it's no longer just CPU focus. We have GPU. We have F p g A. We have things that are being done in storage and the fabrics that stitch them together that are all changing rapidly and have very different life cycles. So when those life cycles don't align for a lot of our customers, they see a challenge in how they can can manage this these different life cycles and still make a purchase without having to make too big of a compromise in one area or another because of the misalignment of life cycles. So that is a kind of the other bucket. And then finally, I think management is huge, right? So management at its core is really right size for for our customers and give them the most value when it when it meets the mark around scale and scope. Um, back in 2000 and nine, we weren't meeting that mark in the industry and UCS came about and took management outside the chassis, right? We put at the top of the rack, and that works great for the scale and scope we needed at that time. However, as things have changed, we're seeing a very new scale and scope needed, Right? So we're talking about hybrid cloud world that has to manage across data centres across clouds. And, um, you know, having to stitch things together for some of our customers poses a huge challenge. So there are tools for all of those those operational pieces that that touched the application that touched the infrastructure. But they're not the same tool. They tend to be, um, disparate tools that have to be put together. So our customers, you know, don't really enjoy being in the business of building their own tools. So, um, so that creates a huge challenge. And one where I think that they really crave that full hybrid cloud stack that has that application visibility but also can reach down into the infrastructure. >>Right? You know, Jim, I said in my my Open that you guys, Cisco sort of changed the server game with the original UCS. But the X Series is the next generation, the generation of the next decade, which is really important cause you touched on a lot of things. These data intensive workloads, alternative processors to sort of meet those needs. The whole cloud operating model and hybrid cloud has really changed. So how's it going with the X Series? You made a big splash last year. What's the reception been in the field? >>Actually, it's been great. Um, you know, we're finding that customers can absolutely relate to our UCS X series story. Um, I think that the main reason they relate to it as they helped create it, right, it was their feedback and their partnership that they gave us Really, those problem areas, those, uh, those areas that we could solve for the customer that actually add significant value. So, you know, since we brought you see s to market back in 2000 and nine, we had this unique architectural, um uh, paradigm that we created. And I think that created a product which was the fastest in Cisco history. Um, in terms of growth, Um, what we're seeing now is X series is actually on a faster trajectory. So we're seeing a tremendous amount of uptake. We're seeing, uh, both in terms of the number of customers. But also, more importantly, the number of workloads that our customers are using and the types of workloads are growing. Right? So we're growing this modular segment that exists not just, um, you know, bringing customers onto a new product, But we're actually bringing them into the product in the way that we had envisioned, which is one infrastructure that can run any application and do it seamlessly. So we're really excited to be growing this modular segment. Um, I think the other piece, you know that, you know, we judge ourselves is, you know, sort of not just within Cisco, but also within the industry and I think right now is a You know, a great example. Our competitors have taken kind of swings and misses over the past five years at this, um, at a kind of a new next architecture, and we're seeing a tremendous amount of growth even faster than any any of our competitors have seen. When they announced something, um, that was new to this space. So I think that the ground up work that we did is really paying off. Um, and I think that what we're also seeing is it's not really a leapfrog game, Um, as it may have been in the past, Um, X series is out in front today, and we're extending that lead with some of the new features and capabilities we have. So we're delivering on the story that's already been resonating with customers, and we're pretty excited that we're seeing the results as well. So as our competitors hit walls, I think we're you know, we're executing on the plan that we laid out back in June when we launched that series to the world. And, uh, you know, as we as we continue to do that, um, we're seeing, you know, again tremendous uptake from our customers. >>So thank you for that, Jim. So viscous. I was just on Twitter just today, actually talking about the gravitational pull. You've got the public clouds pulling C x o is one way. And you know I'm Prem folks pulling the other way and hybrid cloud So organisations are struggling with a lot of different systems and architectures and and ways to do things. And I said that what they're trying to do is abstract all that complexity away, and they need infrastructure to support that. And I think your stated aim is really to try to help with that with that confusion with the X series. Right? So how so? Can you explain that? >>Sure. And and and that's the right, Uh, the context that you built up right there, Dave, if you walk into Enterprise Data Centre, you see platform of computer systems spread all across because every application has its unique needs. And hence you find Dr Note Driving system memory system, computing system, coordinate system and a variety of farm factors. When you do, you, for you and every one of them typically come with a variety of adapters and cables and so forth Just create silence of resources. Fabric is broad. The actress brought the power and cooling implications the rack, you know, the space challenges and above all, the multiple management plane that they come of it, which makes it very difficult for I t to have one common centre policy and enforce it all across across the firmware and software and so forth and then think about the great challenges of the baroness makes it even more complex as these go through the great references of their own. As a result, we observe quite a few of our customers. Uh, you know, really, uh, seeing Anna slowness in that agility and high burden, uh, in the cost of overall ownership, this is where the X rays powered by inter side. We have one simple goal. We want to make sure our customers get out of that complexities. They become more Asyl and drive lower tco and we are delivering it by doing three things. Three aspects of simplification first simplify their whole infrastructure by enabling them to run their entire workload on single infrastructure and infrastructure, which removes the narrowness of fun factor and infrastructure which reduces direct from footprint that is required infrastructure were power and cooling better served in the Lord. Second, we want to simplify it with by delivering a cloud operating model where they can create the policy ones across compute network stories and deployed all across. And third, we want to take away the pain they have by simplifying the process of upgrade and any platform evolution that they are going to go through the next 23 years. So that's where the focus is on just driving down the simplicity lowering down there. >>That's key. Less friction is is always a good thing now, of course, because we heard from the hyper flex guys earlier, they had news. Not to be outdone, you have hard news as well. What innovations are you announcing around X series today? >>Absolutely. So we are following up on the excited, exciting extras announcement that we made in June last year. Day and we are now introducing three innovation on experience with the bowl of three things First, expand the supported World War and extra days. Second, take the performance to new levels. Third dramatically reduced the complex cities in the data centre by driving down the number of adapters and cables. To that end, three new innovations are coming in. First, we are introducing the support for the GPU note using a cable list and very unique X fabric architecture. This is the most elegant design to add the GPS to the compute note in the model of form factor thereby, our customers can now power in AML workload on any workload that needs many more number of GPS. Second, we are bringing in GPS right onto the computer note and thereby the our customers can now fire up the accelerated video upload, for example, and turf, which is what you know we are extremely proud about, is we are innovating again by introducing the fifth generation of our very popular unified fabric technology with the increased bandwidth that it brings in, coupled with the local drive capacity and density is that we have on the computer note our customers can now fire up the big data workloads the F C I work. Lord, uh, the FDA has worked with all these workloads that have historically not lived in the model of form. Factor can be run over there and benefit from the architectural benefits that we have. Second, with the announcement of fifth generation fabric, we become the only vendor to now finally enable 100 gig and two and single board banned word and the multiple of those that are coming in there. And we are working very closely with our partners to deliver the benefit of these performance through our Cisco validated design to oversee a franchise. And third, the innovations in, uh, in the in the fifth and public again allow our customers to have fewer physical adapters, made the Internet adapter made with our general doctors or maybe the other stories adapters. They reduced it down and coupled with the reduction in the cable so very, very excited about these three big announcements that we're making in this part of the great >>A lot There. You guys have been busy. So thank you for that. Because so, Jim, you talked a little bit about the momentum that you have. Customers are adopting. What problems are they telling you that X series addresses and and how do they align with where where they want to go in the future? >>Um, that's a great question. I think if you go back to um and think about some of the things that we mentioned before. Um, in terms of the problems that we originally set out to solve, we're seeing a lot of traction. So what the cost mentioned, I think, is really important, right? Those pieces that we just announced really enhanced that story and really move again to kind of to the next level of, of taking advantage of some of these problem solving for our customers. You know, if you look, you know, I think the cost mentioned accelerated VD. That's a great example. Um, these are where customers you know, they need to have this dense compute. They need video acceleration, they need type policy management, right. And they need to be able to deploy these, um, these systems anywhere in the world. Well, that's exactly what we're hitting on here with X series right now, we're hitting the mark in every every single way, right? We have the highest compute config density that we can offer across the, you know, the very top end configurations of CPUs. Um, and a lot of room to grow. Um, we have the the premier cloud based management. You know, hybrid cloud suite. Um uh, in the industry. Right. So check there. We have the flexible GPU accelerators that that the cost just talked about that we're announcing both on the system and also adding additional ones to the through the use of the X fabric, which is really, really critical to this launch as well. And, uh, you know, I think finally, the fifth generation of fabric interconnect and virtual interface card, um, and an intelligent fabric module go hand in hand in creating this 100 gig and end bandwidth story that we can move a lot of data again. You know, having all this performance is only as good as what we can get in and out of it, right? So giving customers the ability to manage it anywhere be able to get the bandwidth that they need to be able to get the accelerators that are flexible to that fit exactly their needs. This is huge, right? This solves a lot of the problems we can take off right away with the infrastructure. As I mentioned, X fabric is really critical here because it opens a lot of doors here. We're talking about GPS today, but in the future, there are other elements that we can disaggregate like the GPS that solve these lifecycle mismanagement issues. They solve issues around the form factor limitations. It solves all these issues for like it does for GPU. We can do that with storage or memory in the future, So that's going to be huge, right? This is disaggregate Asian that actually delivers right. It's not just a gimmicky bar trick here that we're doing. This is something that that customers can really get value out of Day one. And then finally, I think the future readiness here. You know, we avoid saying future proof because we're kind of embracing the future here. We know that not only are the GPS going to evolve, the CPUs are going to evolve the drives, the storage modules are going to evolve. All of these things are changing very rapidly. The fabric that stitches them together. It's critical, and we know that we're just on the edge of some of the developments that are coming with C XL with with some of the the PC express changes that are coming in the in the very near future. So we're ready to go X and the X fabric is exactly the vehicle that's going to be able to deliver those technologies to our customers. Our customers are out there saying that you know, they want to buy into something like X Series that has all the operational benefits, but at the same time, they have to have the comfort in knowing that they're protected against being locked out of some technology that's coming in the future. We want our customers to take these disruptive technologies and not be disrupted, but use them to disrupt, um, their competition as well. So, um, you know, we're really excited about the pieces today, and I think it goes a long way towards continuing to tell the customer benefit story that X Series brings And, um, again, stay tuned because it's going to keep getting better as we go. >>A lot of headroom, uh, for scale and the management piece is key. There just have time for one more question because talk to give us some nuggets on the road map. What's next for? For X X series that we can look forward to? >>Absolutely Dave, as as we talked about. And James also hinted this is the future radio architecture, a lot of focus and innovation that we are going through is about enabling our customers to seamlessly and painlessly adopt very disruptive hardware technologies that are coming up no infantry place. And there we are, looking into enabling the customer journey as the transition from PCH in less than 4 to 5 to six without rip and replace as they embraced the Excel without rip and replace as they embrace the newer paradigm of computing through the desegregated memory desegregated P. C, A, r N B and dance drives and so forth. We're also looking forward to extract Brick Next Generation, which will and now that dynamic assignment of GPS anywhere within the chassis and much more. Um, so this this is again all about focusing on the innovation that will make the Enterprise Data Centre operations a lot more simpler and drive down the PCO by keeping them not only covered for today, but also for future. So that's where some of the focus is on there. >>Okay, Thank you guys. We'll leave it there in a moment. I'll have some closing thoughts. >>Mhm

>>Welcome back to the cubes coverage here in Washington D. C. For a W. S. Public sector summit. I'm john fraser host of the queues and in person event but of course we have remote guests. It's a hybrid event as well. Amazon is streaming amazon web services, streaming all the teams, some of the key notes of course all the cube interviews are free and streaming out there as well on the all the cube channels and all the social coordinates. Our next guest is Melissa Pavlik President and Ceo POV con joining me here to talk about predictive maintenance, bringing that to life for the U. S. Air Force melissa. Thanks for coming in remotely on our virtual cube here at the physical event. >>Excellent, thank you. Good morning >>Show. People have been been um face to face for the first time since 2019. A lot of people remote calling in checking things out kind of an interesting time, right? We're living in so uh what's your, what's your take on all this? >>Sure. I mean it's a new way of doing business, right? Um I will say, I guess for us as a company we always have been remote so it's not too much of a change but it is definitely challenging, especially trying to engage with such a large user community such as the United States Air Force who isn't always used to working as remotely. So it's definitely a unique challenge for sure. >>Well let's get into, I love this topic. You had a real success story. There is a case study with the U. S. Air Force, what's the relationship take us through what you guys are doing together? >>Sure. Absolutely. So we started working with the Air Force now about five years ago on this subject and predictive maintenance. Sometimes you might hear me catch myself and say CBM plus condition based maintenance. They're synonymous. They mean the exact same thing basically. But about five years ago the Air Force was contemplating how do we get into a space of getting ahead of unscheduled maintenance events? Um if the military they're big push always his readiness how do we improve readiness? So to do that it was a big ask of do we have the data to get ahead of failures? So we started on this journey about five years ago as I said and frankly we started under the radar we weren't sure if it was going to work. So we started with two platforms. And of course when I think a lot of people here predictive maintenance, they immediately think of sensor data and sensors are wonderful data but unfortunately especially in an entity such as the Air Force not all assets are censored. So it also opened up a whole other avenue of how do we use the data that they have today to be able to generate and get ahead of failures. So it did start a really great partnership working not only with the individual, I'll say Air Force entities that Air Force Lifecycle Management Center but we also worked across all the major commands, the individual units, supply control, logistics and everyone else. So it's been a really great team effort to bring together all of those but typically would be rather segregated operations together. >>Yeah, they're getting a lot of props lately on a lot of their projects across the board and this one particular, how did you guys specifically help them modernize and with their and get this particular maintenance thing off the ground? >>Absolutely. I think quite simply it was what really we put their existing data to work. We really wanted to get in there and think about they already had a ton of data. There wasn't a need to generate more. We're talking about petabytes of information. So how do we use that and put it into a focus of getting ahead of failure? We said we established basically three key performance parameters right from the beginning it was, we knew we wanted to increase availability which was going to directly improve readiness. We needed to make sure we were reducing mission aborts and we wanted to get ahead of any kind of maintenance costs. So for us it was really how do we leverage and embrace machine learning and ai paired with just big data analytics and how do we take frankly what is more of a World War Two era architecture and turn it into something that is in the information age. So our modernization really started with how do we take their existing data and turn it into something that is useful and then simultaneously how do we educate the workforce and helping them understand what truly machine learning and AI offer because I think sometimes there's everyone has their own opinions of what that means, but when you put it into action and you need to make sure that it's something that they can take action on, right, it's not just pushing a dot moving numbers around, it's really thinking about and considering how their operations are done and then infusing that with the data on the back end, >>it's awesome. You know the old workflows in the cloud, this is legit, I mean physical assets, all kinds of things and his legacy is also but you want the modernization, I was gonna ask you about the machine learning and ai component, you brought that up. What specifically are you leveraging their from the ai side of the machine learning side? >>Absolutely for us, most and foremost we're talking about responsible a i in this case because unfortunately a lot of the data in the Air Force is human entry, so it's manual, which basically means it's open and rife for a lot of error into that data. So we're really focused heavily on the data integrity, we're really focused on utilizing different types of machine learning because I think on the surface the general opinion is there's a lot of data here. So it would open itself naturally into a lot of potential machine learning techniques, but the reality situation is this data is not human understandable unless you are a prior maintainer, frankly, it's a lot of codes, there's not a whole lot of common taxonomy. So what we've done is we've looked at those supervised and unsupervised models, we've taken a whole different approach to infusing it with truly, what I would say arguably is the most important key element, domain expertise. You know, someone who actually understands what this data means. So that way we can in in End up with actionable output something that the air force can actually put into use, see the results coming out of it. And thus far it's been great. Air mobility command has come back and said we've been able to reduce their my caps, which are parts waiting for maintenance by 18%. That's huge in this space. >>Yeah, it's interesting about unsupervised and supervised machine learning. That's a big distinct because you mentioned there's a lot of human error going on. That's a big part. Can you explain a little bit more because that was that to solve the human error part or was it the mix and match because the different data sets, but why the why both machine learning modes. >>So really it was to address both items frankly. When we started down this path, we weren't sure we were going to find right, We went in with some hypotheses and some of those ended up being true and others were not. So it was a way for us to quickly adjust as we needed to again put the data into actionable use and make sure we were responsibly doing that. So for us a lot of it, because it's human understanding and human error that goes into this natural language processing is a really big area in this space. So for us, adjusting between and trying different techniques is really where we were able to discover and find out what was going to be the most effective and useful in this particular space as well as cost effective. Because for us there's also this resistance, you have to have resist the urge to want to monitor everything. In this case we're talking about really focusing on those top drivers and depending on the type of data that we had, depending on the users that we knew were going to get involved with it as well as I would say, the historical information, it really would help us dictate on supervised versus supervised and going the unsupervised route. In some cases there's just still not ready for that because the data is just so manual. Once we get to a point where there is more automation and more automated data collection, unsupervised will definitely no doubt become more valuable right now though, in order to get those actionable. That supervised modeling was really what we found to be the most valuable >>and that makes total sense. You've got a lot of head room to grow into with Unsupervised, which is actually harder as you as you know, everyone, everyone everyone knows that. But I mean that's really the reality. Congratulations. I gotta ask you on the AWS side what part do they play in all this? Obviously the cloud um their relationship with the Air Force as well, what's their what's their role in this particular maintenance solution? >>Sure, absolutely. And I'll just say, I mean we're really proud to be a partner network with them and so when we started this there was no cloud, so today a lot of opportunity or things we hear about in the Air Force where like cloud one platform one, those weren't in existence, you know, five years ago or so. So for us when we started down this path and we had to identify very quickly a format and a host location that would allow us not only handle large amounts of data but do all of the deep analysis we needed to AWS GovCloud is where that came in. Plus it also is awesome that they were already approved at I. L. Five to be able to host that we in collaboration with them host a nist 801 +71 environment. And so it's really allowed us to to grow and deliver this this impact out over 6000 users today on the Air Force side. So for us with a W. S. Has been a great partnership. They obviously have some really great native services that are inside their cloud as well as the pairing and easy collaboration among not only licensed products but also all that free and open source that's out there because again, arguably that's the best community to pull from because they're constantly evolving and working in the space. But a W has been a really great partner for us and of course we have some of our very favorite services I'm happy to talk about, but they've been really great to work with >>what's the top services. >>So for us, a lot of top services are like ec two's work spaces, of course S three and Glacier um are right up there, but you really enjoy working across glue Athena were really big on, we find a commercial service we're looking for that's not yet available in Govcloud. And we pull in our AWS partners and ask, hey, you know when it's going to get into the gulf cloud space and they move pretty quickly to get those in there. So recent months are definitely a theme in blue. Well, >>congratulations, great solution, I love this application because it highlights the power of the cloud, What's the future in store for the U. S. Air Force when it comes to predictive maintenance. >>Sure. I mean, I think at this point they are just going to continue adding additional top driver analyses you through our work for the past couple years. We've identified a lot of operational and functional opportunities for them. So there's gonna be some definitely foundational changing coming along, some enabling new technologies to get that data integrity more automated as well so that there isn't such a heavy lift on the downstream, we're talking about data cleansing, but I think as far as predictive maintenance goes, we're definitely going to see more and more improvements across the readiness level, getting rid of and eliminating that unscheduled event that drives a lot of the readiness concerns that are out there. And we're also hoping to see a lot more improvement and I'd say enhancement across the supply chain because we know that's also an area that really they could get ahead on your part of our other work as we developed a five year long range supply forecast and it's really been opening some eyes to see how they can better plan, not only on the maintenance side but also supporting maintenance from a logistics and supply, >>great stuff melissa. Great to have you on President Ceo Path Con, you're also the business owner. Um how's things going with the business? The pandemic looks like I'm gonna come out of it stronger. Got the tailwind with cloud technology. The modernization boom is here in, in Govcloud, 10 years celebrating Govcloud birthday here at this event. How's business house? How are you doing >>good. Everything has actually been, we were, I guess fortunate, as I mentioned the very beginning, we were remote companies. So fortunately for us the pandemic did not have that much of an operational hiccup and being that a lot of our clients are in the federal space, we were able to continue working and amazingly we actually grew during the pandemic. We added quite a bit of a personnel to the team and so we're looking forward to doing some more predictive maintenance across, not only explaining the Air Force but the other services as well. >>You know, the people who were Agile had some cloud action going on, we're productive and they came out stronger melissa. Great to have you on the cube. Thank you for coming in remotely and joining our face to face event from the interwebs. Thank you so much for coming on cuba >>All right, thank you, john have a great rest of your day. >>Okay. I'm john for here at the cube with a W. S. Public sector summit in person and remote bringing guest on. We've got the new capability of bringing remotes in. We do in person. I'll see you face to face hear the cube and it's like to be here at the public sector summit. Thanks for watching. Mhm. Mhm >>robert, Herjavec

(upbeat music) >> Hello, welcome to theCUBE studios of Palo Alto California for RSA conference keynote coverage and conference coverage. I'm Sean for your host of theCUBE. We're breaking down the keynote of RSA day one kickoff. We had Mark Nunnikhoven, who's the distinguished cloud strategist at Lacework. Mark former cube alumni and expert and security has been on many times before, Mark great to see you. Thanks for coming on and helping me break down RSA conference 2021 virtual this year. Thanks for joining. >> Happy to be here. Thanks for having me John. >> You know, one of the things Mark about these security conferences is that interesting, RSA was the last conference we actually did interviews physically face to face and then the pandemic went down and it was a huge shutdown. So we're still virtual coming back to real life. So and they're virtual this year, so kind of a turn of events, but that was kind of the theme this year in the keynote. Changing the game on security, the script has been flipped, connectivity everywhere, security from day one being reinvented. Some people were holding onto the old way some people trying to get on there, on the future wave. Clearly you got the laggards and you've got the innovators all trying to kind of, you know, find their position. This has been obvious in this keynote. What's your take? >> Yeah and that was exactly it. They use that situation of being that last physical security conference, somewhat to their advantage to weave this theme of resiliency. And it's a message that we heard throughout the keynote. It's a message we're going to hear throughout the week. There's a number of talks that are tying back to this and it really hits at the core of what security aims to do. And I think aims is really the right word for it because we're not quite there yet. But it's about making sure that our technology is flexible that it expands and adapts to the situations because as we all know this year, you know basically upended everything we assumed about how our businesses were running, how our communities and society was running and we've all had to adapt. And that's what we saw at the keynote today was they acknowledged that and then woven into the message to drive that home for security providers. >> Yeah and to me one of the most notable backdrops to the entire thing was the fact that the RSA continues to operate from the sell out when Dell sold them for alright $2 billion to a consortium, private privately private equity company, Symphony Technology Group. So there they're operating now on their own. They're out in the wild, as you said, cybersecurity threats are ever increasing, the surface area has changed with cloud native. Basically RSA is a 3000 person startup basically now. So they've got secure ID, the old token business we all have anyone's had those IDs you know it's pretty solid, but now they've got to kind of put this event back together and mobile world Congress is right around the corner. They're going to try to actually have a physical event. So you have this pandemic problem of trying to get the word out and it's weird. It's kind of, I found it. It's hard to get your hands around all the news. >> It is. And it's, you know, we're definitely missing that element. You know, we've seen that throughout the year people have tried to adapt these events into a virtual format. We're missing those elements of those sorts of happenstance run-ins I know we've run into each other at a number of events just sort of in the hall, you get to catch up, but you know as part of those interactions, they're not just social but you also get a little more insight into the conference. Hey, you know, did you catch this great talk or are you going to go catch this thing later? And we're definitely missing that. And I don't think anyone's really nailed this virtual format yet. It's very difficult to wrap your head around like you said, I saw a tweet online from one InfoSec analyst today. It was pointed out, you know, there were 17 talks happening at the same time, which you know, in a physical thing you'd pick one and go to it in a virtual there's that temptation to kind of click across the channels. So even if you know what's going on it's hard to focus in these events. >> Yeah the one conference has got a really good I think virtual platform is Docker con, they have 48 panels, a lot of great stuff there. So that's one of more watching closest coming up on May 27. Check that one out. Let's get into this, let's get into the analysis. I really want to get your thoughts on this because you know, I thought the keynote was very upbeat. Clearly the realities are presenting it. Chuck Robbins, the CEO of Cisco there and you had a bunch of industry legends in there. So let's start with, let's start with what you thought of Rowan's keynote and then we'll jump into what Chuck Robbins was saying. >> Sure yeah. And I thought, Rohit, you know, at first I questioned cause he brought up and he said, I'm going to talk about tigers, airplanes and sewing machines. And you know, as a speaker myself, I said, okay, this is either really going to work out well or it's not going to work out at all. Unfortunately, you know, Rohit head is a professional he's a great speaker and it worked out. And so he tied these three examples. So it was tiger king for Netflix, at World War II, analyzing airplane damage and a great organization in India that pivoted from sewing into creating masks and other supplies for the pandemic. He wove those three examples through with resiliency and showed adaptation. And I thought it was really really well done first of all. But as a cloud guy, I was really excited as well that that first example was Netflix. And he was referencing a chaos monkey, which is a chaos engineering tool, which I don't think a lot of security people are exposed to. So we use it very often in cloud building where essentially this tool will purposely blow up things in your environment. So it will down services. It will cut your communications off because the idea is you need to figure out how to react to these things before they happen for real. And so getting keynote time for a tool like that a very modern cloud tool, I thought was absolutely fantastic. Even if that's, you know, not so well known or not a secret in the cloud world anymore, it's very commonly understood, but getting a security audience exposure to that was great. And so you know, Rohit is a pro and it was a good kickoff and yeah, very upbeat, a lot of high energy which was great for virtual keynote. Cause sometimes that's what's really missing is that energy. >> Yeah, we like Rohit too. He's got some, he's got charisma. He also has his hand on the pulse. I think the chaos monkey point you're making is as a great call out because it's been around the DevOps community. But what that really shows I think and puts an exclamation point around this industry right now is that DevSecOps is here and it's never going away and cloud native and certainly the pandemic has shown that cloud scale speed data and now distributed computing with the edge, 5G has been mentioned, as you said, this is a real deal. So this is DevOps. This is infrastructure as code and security is being reinvented in it. This is a killer theme and it's kind of a wake-up call. What's your reaction to that? what's your take? >> Yeah, it absolutely is a wake-up call and it actually blended really well into a Rohit second point, which was around using data. And I think, you know, having these messages put out to the, you know, what is the security conference for the year always, is really important because the rest of the business has moved forward and security teams have been a little hesitant there, we're a little behind the times compared to the rest of the business who are taking advantage of these cloud services, taking advantage of data being everywhere. So for security professionals to realize like hey there are tools that can make us better at our jobs and make us, you know, keep or help us keep pace with the business is absolutely critical because like you said, as much as you know I always cringe when I hear the term DevSecOps, it's important because security needs to be there. The reason I cringe is because I think security should be built into everything. But the challenge we have is that security teams are still a lot of us are still stuck in the past to sort of put our arms around something. And you know, if it's in that box, I'm good with it. And that just doesn't work in the cloud. We have better tools, we have better data. And that was really Rohit's key message was those tools and that data can help you be resilient, can help your organization be resilient and whether that's the situation like a pandemic or a major cyber attack, you need to be flexible. You need to be able to bounce back. >> You know, when we actually have infrastructure as code and no one ever talks about DevOps or DevSecOps you know, we've, it's over, it's in the right place, but I want to get your thoughts and seeing if you heard anything about automation because one of the things that you bring up about not liking the word DevSecOps is really around, having this new team formation, how people are organizing their developers and their operations teams. And it really is becoming programmable and that's kind of the word, but automation scales it. So that's been a big theme this year. What are you hearing? What did you hear on the keynote? Any signs of reality around automation, machine learning you mentioned data, did they dig into automation? >> Automation was on the periphery. So a lot of what they're talking about only works with automation. So, you know, the Netflix shout out for chaos monkey absolutely as an automated tool to take advantage of this data, you absolutely need to be automated but the keynote mainly focused on sort of the connectivity and the differences in how we view an organization over the last year versus moving forward. And I think that was actually a bit of a miss because as you rightfully point out, John, you need automation. The thing that baffles me as a builder, as a security guy, is that cyber criminals have been automated for years. That's how they scale. That's how they make their money. Yet we still primarily defend manually. And I don't know if you've ever tried to beat, you know the robots that are everything or really complicated video games. We don't tend to win well when we're fighting automation. So security absolutely needs to step up. The good news is looking at the agenda for the week, taking in some talks today, while it was a bit of a miss and the keynote, there is a good theme of automation throughout some of the deeper dive sessions. So it is a topic that people are aware of and moving forward. But again, I always want to see us move fast. >> Was there a reason Chuck Robbins headlines or is that simply because there are a big 800 pound gorilla in the networking space? You know, why Cisco? Are they relevant security? Is that signaling that networking is more important? As of 5G at the edge, but is Cisco the player? >> Obviously Cisco has a massive business and they are a huge player in the security industry but I think they're also representative of, you know and this was definitely Chuck's message. They were representative of this idea that security needs to be built in at every layer. So even though, you know I live on primarily the cloud technologies dealing with organizations that are built in the cloud, there is, you know, the reality of that we are all connected through a multitude of networks. And we've seen that with work from home which is a huge theme this year at the conference and the improvements in mobility with 5G and other connectivity areas like Edge and WiFi six. So having a big network player and security player like Cisco in the keynote I think is important just because their message was not just about inclusion and diversity for skills which was a theme we saw repeated in the keynote actually but it was about building security in from the start to the finish throughout. And I think that's a really important message. We can't just pick one place and say this is where we're going to build security. It needs to be built throughout all of our systems. >> If you were a Cicso listening today what was your take on that? Were you impressed? Were you blown away? Did you fall out of your chair or was it just right down the middle? >> I mean, you might fall out of your chair just cause you're sitting in it for so long taken in a virtual event. And I mean, I know that's the big downside of virtual is that your step counter is way down compared to where it should be for these conferences but there was nothing revolutionary in the opening parts of the keynote. It was just, you know sort of beating the drum that has been talked about, has been simmering in the background from sort of the more progressive side of security. So if you've been focusing on primarily traditional techniques and the on-premise world, then perhaps this was a little a bit of an eye-opener and something where you go, wow, there's, you know there's something else out here and we can move things forward. For people who are, you know, more cloud native or more into that automation space, that data space this is really just sort of a head nodding going, yeap, I agree with this. This makes sense. This is where we all should be at this point. But as we know, you know there's a very long tail insecurity and insecurity organizations. So to have that message, you know repeated from a large stage like the keynote I think was very important. >> Well you know, we're going to be, theCUBE will be onsite and virtual with our virtual platform for Amazon web services reinforced coming up in Houston. So that's going to be interesting to see and you compare contrast like an AWS reinforce which is kind of the I there I think they had the first conference two years ago so it's kind of a new conference. And then you got the old kind of RSA conference. The question I have for you, is it a just a position of almost two conferences, right? You got the cloud native AWS, which is really about, oh shared responsibility, et cetera, et cetera a lot more action happening there. And you got this conference here seem come the old school legacy players. So I want to get your thoughts on that. And I want to get your take on just just the cryptographers panel, because, you know, as I'm not saying this as a state-of-the-art that the old guys saying get off my lawn, you know crypto, we're the crypto purists, they were trashing NFTs which as you know, is all the rage. So I, and Ron rivers who wrote new co-create RSA public key technology, which is isn't everything these days. Is this a sign of just get off my lawn? Or is it a sign of the times trashing the NFTs? What's your take? >> Yeah, well, so let's tackle the NFTs then we'll do the contrast between the two conferences. But I thought the NFT, you know Ron and Addie both had really interesting ways of explaining what an NFT was, because that's most of the discussion around the NFT is exactly what are we buying or what are we investing in? And so I think it was Addie who said, you know it was basically you have a tulip then you could have a picture of a tulip and then you could have something explaining the picture of the tulip and that's what an NFT is. So I think, you know, but at the same time he recognized the value of potential for artists. So I think there was some definitely, you know get off my lawn, but also sort of the the cryptographer panels is always sort of very pragmatic, very evidence-based as shown today when they actually were talking about a paper by Schnorr who debates, whether RSA or if he has new math that he thinks can debunk RSA or at least break the algorithm. And so they had a very logical and intelligent discussion about that. But the cryptographers panel in contrast to the rest of the keynote, it's not about the hype. It's not about what's going on in the industry. It's really is truly a cryptographers panel talking about the math, talking about the fundamental underpinnings of our security things as a big nerd, I'm a huge fan but a lot of people watch that and just kind of go, okay now's a great time to grab a snack and maybe move those legs a little bit. But if you're interested in the more technical deeper dive side, it's definitely worth taking in. >> Super fascinating and I think, you know, it's funny, they said it's not even a picture of a tulip it's s pointer to a picture of a tulip. Which is technically it. >> That was it. >> It's interesting how, again, this is all fun. NFTs are, I mean, you can't help, but get an Amber by decentralization. And that, that wave is coming. It's very interesting how you got a decentralization wave coming, yet a lot of people want to hang on to the centralized view. Okay, this is an architectural conflict. Is there a balance in your mind as a techie, we look at security, certainly as the perimeter is gone that's not even debate anymore, but as we have much more of a distributed computing environment, is there a need for some sensuality and or is it going to be all decentralized in your opinion? >> Yeah that's actually a really interesting question. It's a great set up to connect both of these points of sort of the cryptographers panel and that contrast between newer conferences and RSA because the cryptographers panel brought up the fact that you can't have resilient systems unless you're going for a distributed systems, unless you're spreading things out because otherwise you're creating a central point of failure, even if it's at hyper-scale which is not resilient by definition. So that was a very interesting and very valid point. I think the reality is it's a combination of the two is that we want resilient systems that are distributed that scale up independently of other factors. You know, so if you're sitting in the cloud you're going multi-region or maybe even multicloud, you know you want this distributed area just for that as Verner from AWS calls it, you know, the reduced blast radius. So if something breaks, not everything does but then the challenge from a security and from an operational point of view, is you need that central visibility. And I think this is where automation, where machine learning and really viewing security as a data problem, comes into play. If you have the systems distributed but you can provide visibility centrally which is something we can achieve with modern cloud technologies, you kind of hit that sweet spot. You've got resilient underpinnings in your systems but you as a team can actually understand what's going on because that was a, yet another point from Carmela and from Ross on the cryptographers panel when it comes to AI and machine learning, we're at the point where we don't really understand a lot of what's going on in the algorithm we kind of understand the output and the input. So again, it tied back to that resiliency. So I think that key is distributed systems are great but you need that central visibility and you only get there through viewing things as a data problem, heavy automation and modern tooling. >> Great great insight, Mark. Great, great call out there. And great point tied in there. Let me ask you a question on your take on the keynote in the conference in general as first day gets going. Do you see this evolving from the classic enterprise kind of buyer supplier relationship to much more of a CSO driven or CXO driven? I need to start building about my teams. I got to start hiring developers, not so much in operation side. I mean, I see InfoSec is these industries are not going away. People are still buying tools and stacking up the tool shed but there's been a big trend towards platforms and shifting left from a developer CICB pipeline standpoint which speaks to scale on the cloud native side and that distributed side. So is this conference hitting that Mark, or you still think there are more hardware and service systems people? What's the makeup? What's the take? >> I think we're definitely starting to a shift. So a great example of that is the CSA. The Cloud Security Alliance always runs a day one or day zero summit at RSA. And this year it was a CSO executive summit. And whereas in previous years it's been practitioners. So that is a good sign I think, that's a positive sign to start to look at a long ignored area of security, which is how do we train the next generation of security professionals. We've always taken this traditional view. We've, you know, people go through the standard you get your CISSP, you hold onto it forever. You know, you do your time on the firewall, you go through the standard thing but I think we really need to adjust and look for people with that automation capability, with development, with better business skills and definitely better communication skills, because really as we integrate as we leave our sort of protected little cave of security, we need to be better business people and better team players. >> Well Mark, I really appreciate you coming on here. A cube alumni and a trusted resource and verified, trusted contributor. Thank you for coming on and sharing your thoughts on the RSA conference and breaking down the keynote analysis, the RSA conference. Thanks for coming on. >> Thank you. >> Well, what we got you here to take a minute to plug what you're doing at Lacework, what you're excited about. What's going on over there? >> Sure, I appreciate that. So I just joined Lacework, I'm a weekend. So I'm drinking from the fire hose of knowledge and what I've found so far, fantastic platform, fantastic teams. It's got me wrapped up and excited again because we're approaching, you know security from the data point of view. We're really, we're born in the cloud, built for the cloud and we're trying to help teams really gather context. And the thing that appealed to me about that was that it's not just targeting the security team. It's targeting builders, it's targeting the business, it's giving them that visibility into what's going on so that they can make informed decision. And for me, that's really what security is all about. >> Well, I appreciate you coming on. Thanks so much for sharing. >> Thank you. >> Okay CUBE coverage of RSA conference here with Lacework, I'm John Furrier. Thanks for watching. (upbeat music)

>> Hi, and this is theCUBE on Cloud. I'm Stu Miniman and really excited to welcome to a special Fireside Chat. CUBE Alumni has been on the program so many times. We always love talking to founders. We like talking to deep thinkers and that's why he was one of the early ones that I reached out to when we were working on this event. When we first started conversations, we were looking at how hyperscalers really were taking adoption of the brand new technologies, things like flash, things like software defined networking, and how that would invade the enterprise. That of course has had a huge impact, help create a category called hyperconverged infrastructure and I'm talking about Dheeraj Pandey. He is the founder, chairman, and CEO of Nutanix, taking HCI from hyperconverged infrastructure to hybrid cloud infrastructure. So Dheeraj, welcome to the Fireside Chat. Thank you so much for joining us. >> Thank you, Stu, and thank you for the last 10 years that we've grown together, both theCUBE and Nutanix and myself as a leader in the last 10 years. So bringing HCI from hyperconverged to hybrid cloud just reminds me of how the more things change, the more they remain the same. So looking forward to a great discussion here. >> So talk about that early discussion, what the hyperscalers were doing, how can the enterprise take advantage of that? Over time, enterprise has matured and looked a little bit more like the hyperscalers. Hybrid cloud of course is on everyone's lip, as well as we've seen the hyperscalers themselves look more and more like the enterprise. So hybrid and multicloud is where we are today. We think it'll be in the future. But give us a little bit as to how you've seen that progression today and where are we going down the road here? >> Yeah, I think I talked about this during my .NEXT keynote. And the whole idea of, in every recession, we make things smaller. In '91 we said we're going to go away from mainframes into Unix servers. And we made the unit of compute smaller. Then in the year 2000 when there was the next bubble burst and the recession afterwards, we moved from Unix servers to Wintel: Windows and Intel, x86 and eventually Linux as well. Again we made things smaller going from million dollar servers to $5,000 servers, shorter lived servers. And that's what we did in 2008/2009. I said, look, we don't even need to buy servers. We can do things with virtual machines which are servers that are an incarnation in the digital world. There is nothing in the physical world that actually went lives. But we made it even smaller. And now with cloud in the last three, four years and what will happen in this coming decade, they're going to make it even smaller, not just in space which is size with functions and containers and virtual machines, but also in time. So space and time, we're talking about hourly billing and monthly billing and a one-year term as opposed to really going and committing to five or seven years of hardware and CapEx. So I think as you make things smaller, I mean, and this is true for as consumers, we have short attention spans, things are going fast. The cycle of creative destruction of virtual machines is shrinking as well. So I think in many cases, we know we've gone and created this autonomy, massive sprawl. Like we created a massive sprawl of Intel servers back in '95 and 2005. Then we have to use virtualization to go and consolidate all of it, created beautiful data centers of Intel servers with VMware software. And then we created a massive sprawl of data centers, of consolidated data centers with one click private cloud in the last five years and hopefully in the next five too. But I think we're also now creating a proliferation of clouds. There is a sprawl, massive sprawl of cost centers and such. So we need yet another layer of software for governance to reign in on that chaos, hence the need for a new HCI, hybrid cloud infrastructure. >> Yeah, it's fascinating to kind of watch that progression over time. There was a phenomenal Atlantic article. I think it was from like the 1940s or 1950s where somebody took what was happening post-World War II and projected things out. We're talking really pre the internet, but just the miniaturization and the acceleration, kind of the Moore's law discussion. If you take things out, where it would go. When I talked to Amazon, they said the one thing that we know for sure, I'm talking to Amazon.com is that people will want it faster and cheaper in the future. I don't know which robot or drone or things that they have. But absolutely there are those certain characteristics. So from a leadership standpoint, Dheeraj, talk about these changes? We had the wave of virtualization, the wave of containerization, you talked about functions in serverless. Those are tools. But at the end of the day, it's about the outcomes and how do we take advantage of things? So how as a leader do you make sure that you know where to take the company as these technology waves and changes impact what you're doing? >> Yeah, it's a great point. I mean, we celebrate things in IT a lot, but we don't talk about what does it take? What's the underlying fabric to really use these things successfully and better than others and not just use buzzwords, because new buzzwords will come in the next three years. For example AI and ML has been a great buzzword for the last three, four years. But there's very few companies, probably less than even half a percent who know how to leverage machine learning, even understand the difference between machine learning and AI. And a lot of it comes down to a few principles. There's a culture principles, not the least of which is how you celebrate failure, because now you're doing shorter, smaller things. You've got a more agile, you'll have more velocity. Gone are the days of waterfall where you're doing yearly planning and pre-year releases and such. So as we get into this new world, not everything will be perfect, and you've got to really learn to pick yourself up and recover quickly, heal quickly and such. So that is the fundamental tenet of Silicon Valley. And we got to really go and use this more outside the Valley as well in every company out there. Whether it's East Coast company, the Midwest company that are outside the U.S. I think this idea that you will be vulnerable, more vulnerable as you go and learn to do things faster and shorter. I think product management is a term that we don't fully understand, and this is about the why before the how and the what. We quickly jump to the what: containers and functions and databases, servers, and AI, and ML, they're the what. But how do you really start with the why? You know my fascination for one of my distant mentors, Simon Sinek and how he thinks about most companies just focusing on the what, while very few actually start with why, then the how, then the what itself. And product management has to play a key role in this, which also subsumes design, thinking about simplification and elegance and reducing friction. I think again, very few companies, probably no more than 1% of the companies really understand what it means to start with design and APIs, user experience APIs for developers before you even get to writing any single line of code. So I think to me, that's leadership. When you can stay away from instant gratification of the end result, but start with the why, then the how, then the what. >> Yeah, as we know in the technology space, oftentimes the technology is the easy part. It's helping to drive that change. I think back to the early days when we were talking, it was, hyperconverge, it was a threat to storage. We're going to put you out of a job. And we'd always go and say, "Look, no, no, no. We're not putting you out of a job. We're going to free you up to do the things that you want to do. That security project that's been sitting on the shelf for six months, you can go do that. Helping build new parts of the business. Those things that you can do." It's that shifting a mindset can be so difficult. And Dheeraj, I mean, you look at 2020, everyone has had to shift their mindset for everything. I was spending half my time on the road. I don't miss the hotels. I do miss seeing lots and lots of people in person. So what's your advice for people, how they can stay malleable, be open to some change? What are you seeing out there? What advice do you give there? >> Yeah, I think, as you said, inertia is at the core of most things in our lives, including what we saw in healthcare for the last 20, 30 years. I mean, there was so much regulation. The doctor's community had to move forward, nurses had to move forward. I mean, not just providers, but insurance companies. And finally, all of a sudden, we're talking about telehealth because of the pandemic. We are talking about online learning. I mean the things that higher ed refused to do. I mean if you think about the last 20 years of what had happened with the cost of higher ed, I mean it's 200% growth when the cost of television has gone down by probably 100, 200% with more features. Healthcare, higher ed, education in general, all of a sudden is coming for this deep shock because of the pandemic. And I think it's these kind of black swan moments that really changed the world. And I know it's a cliche to say this. But I feel like we are going to be in a new normal, and we have been forced to this new change of digital. I mean, you and I are sitting and talking over the internet. It's a little awkward right now because there's a little bit of a delay in the way I'm looking at things. But I know it's going to directionally be right. I mean, we will go in a way where it just become seamless over time. So change is the only constant. And I believe that I think what we've seen in the pandemic is just the beginning of what digital will mean going forward. And I think the more people embrace it, the faster we do it. Speed is going to be the name of the game when it comes to survival and thriving in this new age. >> Dheeraj, it's interesting. We do hope, I'm a technologist. I know you're an optimist when it comes to things. So we always look at those silver linings. Like I hope healthcare and education will be able to move forward fast. Higher education costs, inequity out there for access to medicine. It would be wonderful if we could help solve some of that, despite this global pandemic. One of the other results, Dheeraj, we talked about some very shifts in the marketplace, the large tech players really have emerged in winter so far in 2020. I can't help, but watch the stock market. And Apple is bigger than ever, Amazon, Google, all ended up in front of Congress to talk about if they've gotten too big. You've partnered with Amazon, Microsoft, and Google. They are potentially a threat but also a partner. From your standpoint, have they gotten too much power? Do we have an inequity in the tech world that they are creating the universes that they will just kind of block off and limit innovation? What's your take on big tech? >> Yeah, I mean, I feel like there's always been big something. I mean, if you go back to the '90s, Amazon, not Amazon, IBM was big, and Microsoft was big, and AT&T was big. I mean, there's always been big companies because the consumer effect that they've had as well, I mean. And I think what we're seeing right now is no different. I mean, at the end of the day, the great thing about this country is that there's always disruption happening. And sometimes small is way better and way more competitive than big. Now at the same time, I do look up to the way some of them have organized themselves. Like the way Amazon has organized itself is really unique and creative with general managers and very independent, highly autonomous groups. So some of these organizations will definitely survive and thrive in scale. And yet for others, I think decision-making and staying competitive and staying scrappy will come a lot harder. So to me when I look at these big names and what Congress is talking about and such, I feel like there's no different than 20, 30, 40 years ago. I mean, we talked about Rockefeller and the oil giants back from 100 years ago. And so in many ways, I mean, the more things change, the more they remain the same. All we have to do is we have to walk over to where the customer is. And that's what we've done with the partnerships. Like in Amazon and Azure, we're saying look, we can even use your commits and credits. I mean, that is a very elegant way to go to where the customer is, rather than force them to where we are. And the public cloud is facing this too. They've come to realize in the last two years that they cannot force all of enterprise computing to come to hyperscalers data centers. They'll have to take in these bite-size smaller clouds to where the customer is, where the customer's machines are, where the customers people are, where the customers data is. That's where we also take to disperse the cloud itself. So I think there's going to be a yin yang where we'll try to walk with the customer to where we want them to be, whether it's hyperscaler data center or the notion of hybrid cloud infrastructure. But many a time, we've got to walk over to where they are. I mean, and outside the U.S, I mean, the cloud is such a nuanced word. I mean, we're talking about sovereignty, we're talking about data gravity, we're talking about economics of owning versus renting. This trifecta, the laws of the land, the laws of physics, and the laws of economics will dictate many of these things as well. So I think the big folks are also humble and vulnerable to realize that there's nothing more powerful than market forces. And I think the rest will take care of itself. >> Yeah, my quick commentary on that, Dheeraj, I think most of us look back at AT&T and felt the government got it wrong. The way they broke it up and ended up consolidating back together, it didn't necessarily help consumers. Microsoft on the other hand might've had a little bit too much power and was leveraging that against competition and really squashing innovation. So in general, it's good to see that the politics are looking at that and chore felt. The last time I watched things, they were a little bit more educated than some previous times there, where it was almost embarrassing to watch our representatives fumbling around with technology. So it's always good to question authority, question what they have. And one of the things you've brought up many times is you're open to listening and you're bringing in new ideas. I remember one conversation I had with you is there's that direction that you hold on to, but you will assess and do new data. You've made adjustments in the product portfolio and direction based on your customers, based on the ecosystem. And you've mentioned some of the, bring thoughts that you've brought into the company and you share. So you mentioned black swan that seem to head you brought to one of the European .NEXT shows. It was great to be able to see that author and read through advisors like Condoleezza Rice who you've had at the conferences a couple of times. Where are you getting some of your latest inspiration from, any new authors or podcasts that you'd be recommending to the audience? >> Yeah, I look at adjacencies, obviously Simon has been great. He was .NEXT, talked about the Infinite Game. And we'll talk about the Infinite Game with Nutanix too with respect to also my decision. But Brene Brown was been very close to Nutanix. I was just looking at her latest podcast, and she was sitting with the author of Stretch, Scott Sonnenschein, and it's a fascinating read and a great listen, by the way, I think for worth an hour, talking about scrappiness, and talking about resourcefulness. What does it mean to really be resourceful? And we need that even more so as we go through this recession, as we are sheltered in place. I think it's an adjacency to everything that Brene does. And I was just blown away by just listening to it. I'd a love for others to even have a listen and learn to understand what we can do within our families, with our budgets, with our companies, with our startups. I mean, with CUBE, I mean, what does it mean to be scrappy? And celebrate scrappiness and resourcefulness, more so than AI always need more. I think I just found it fascinating in the last week itself listening through it. >> John Farinacci talk many times that founder, startup, that being able to pull themselves up, be able to drive forward, overcome obstacles. So Dheeraj, do you tee it up? It sounds like is the next step for you. There's a transition under discussion. Bain has made an investment. There's a search for new CEO. Are you saying there's a book club in your future to be able to get things ready? Why don't you explain a little bit, 11 years took the company public, over 6,500 employees public company. So tell us a little bit about that decision-making process and what you expect to see in the future? >> Yeah, it's probably one of the hardest things as an entrepreneur is to let go, because it's a creation that you followed from scratch, from nothing. And it was a process for me to rethink about what's next for the company and then what's next for me? And me and the company were so tightly coupled that I was like, wow, at some point, this has to be a little bit more like the way Bill Gates did it with Microsoft, and there's going to be buton zone and you will then start to realize that your identity is different from the company's identity. And maybe the company is built for bigger, better things. And maybe you're built for bigger, better things. And how do you really start to first do this decoupling of the identity? And it's really hard. I mean, I'm sure that parents go through this. I mean, our children are still very young. Our eldest is nine going on 10 and our twin girls are six. I know at some point in the next 10 years, eight to 10 years, we'll have to figure out what it means to let go. And I'm already doing this with my son. I tell him you're born free. I mean, the word born free which drives my wife crazy sometimes. I say this to them, it's about independence. And I think the company is also born free to really think about a life outside of me, as well outside of founder. And that was a very important process for me as I was talking to the board for the last six, seven, eight months. And when the Bain deal came in, I thought it was a great time. We ended the fiscal really well, all things considered. We had a good quarter. The transition has been a journey of a lifetime, the business model transition I speak of. Really three years, I mean, I have aged probably 10 years in these last three years. But I think I would not replaced it for anything. Just the experience of learning what it means to change as a public company when you have short-term goals and long-term goals, we need the conviction, knowing what's right, because otherwise we would not have survived this cloud movement, all this idea of actually becoming a subscription company, changing the core of the business in the on-prem world itself. It's a king to change the wings of a plane at 40,000 feet where none of the passengers blink. It's been phenomenal ride last 11 years, but it's also been nonstop monomaniacal. I mean, I use the word marathon for this, and I figured it's a good time to say figure out a way to let go of this, and think of what's bigger better for Nutanix. And going from zero to a billion six in annual billings, and looking at billion six to 3 billion to four to five, I think it'd be great &to look at this from afar. And at the same time, I think there's vulnerability. I mean, I've made the company vulnerable. I've made myself vulnerable. We don't know who the next leader will be. And I think the next three to six months is one of the most important baton zones that I have ever experienced to be a part of. So looking forward to make sure that baton doesn't fall, redefine what good to great looks like, both for the company and for myself. And at the same time, go read more. I mean, I've been passionate about developers in the last 10 years, 11 years. I was a developer myself. This company, Nutanix, was really built by developers for IT. And I'm learning more about the developer as a consumer. How do you think about their experience? Not just the things that we throw at them from open source point of view and from cloud and technologies and AI and ML point of view, but really their lives, having them think about revenue and business and really blurring the lines between architects and product managers and developers. I think it's just an unfathomable problem we've created in IT that I would love to go and read and write more about. >> Yeah, so many important things you said there. I absolutely think that there are certain things everybody of course will think of you for a long time with Nutanix, but there is that separation between the role in the company and the person itself, and really appreciated how much you've always shared along those lines. So last question I have and you hit it up a little bit when you talked about developers. Take off your Nutanix hat for a second here, now what do we need to do to make sure that the next decade is successful in this space, cloud as a general guideline? Yes, we know we have skill gap. We know we need more people, we need more diversity. But there's so much that we need and there's so much opportunity, but what do you see and any advice areas that you think are critical for success in the future? >> Yeah, I mean, you hit up on something that I have had a passion for, probably more late in this world, more so than conspicuous, and and you hit upon it right now, diversity and inclusion. It's an unresolved problem in the developer community: the black developer, the woman developer. The idea of, I mean, we've two girls, they're twins. I'd love for them to embrace computer science and even probably do a PhD. I mean, I was a dropout. I'd love for them to do better than I did. Get, embrace things that are adjacent to biology and computer science. Go solve really hard problems. And we've not done those things. I mean, we've not looked at the community of developers and said, you know, they are the maker. And they work with managers and the maker manager world is two different worlds. How do you make this less friction? And how do you make this more delightful? And how do you think of developers as business, as if they are the folks who run the business? I think there's a lot that's missing there. And again, we throw a lot of jargons at them, and we talk a lot about automation and tools and such. But those are just things. I think the last 10, 11 years of me really just thinking about product and product portfolio and design and the fact that we have so many developers at Nutanix. I think it has been a mind-boggling experience, thinking about the why and the how and the what of the day in the life of, the month in the life of, and thinking about simple things like OKRs. I mean, we are throwing these jargons of OKRs at them: productivity, offshoring, remote work, over the zoom design sessions. It's just full of conflict and friction. So I think there is an amazing opportunity for Nutanix. There's an amazing opportunity for the industry to elevate this where the the woman developer can speak up in this world that's full of so many men. The black developer can speak up. And all of us can really think of this as something that's more structured, more productive, more revenue-driven, more customer in rather than developer out. That's really been some of the things that have been in my head, things that are still unresolved at Nutanix that I'm pretty sure at many of the places out there. That's what thinking and reading and writing about. >> Well, Dheeraj, first of all, thank you so much again for participating here. It's been great having you in theCUBE community, almost since the inception of us doing it back in 2010. Wish you the best of luck in the current transition. And absolutely look forward to talking more in the future. >> Thank you. And again, a big fan of the tremor rate of John, Dave, and you. Always learn so much from you, folks. Looking forward to be a constant student. Thank you. >> Thank you for joining us at theCUBE on Cloud. Lots more coverage here. Be sure to look throughout the site, engage in the chats, and give us your feedback. We're here to help you with the virtual events. I'm Stu Miniman as always. Thanks for watching.

>> Hi, and this is theCUBE on Cloud. I'm Stu Miniman and really excited to welcome to a special Fireside Chat. CUBE Alumni has been on the program so many times. We always love talking to founders. We like talking to deep thinkers and that's why he was one of the early ones that I reached out to when we were working on this event. When we first started conversations, we were looking at how hyperscalers really were taking adoption of the brand new technologies, things like flash, things like software defined networking, and how that would invade the enterprise. That of course has had a huge impact, help create a category called hyperconverged infrastructure and I'm talking about Dheeraj Pandey. He is the founder, chairman, and CEO of Nutanix, taking HCI from hyperconverged infrastructure to hybrid cloud infrastructure. So Dheeraj, welcome to the Fireside Chat. Thank you so much for joining us. >> Thank you, Stu, and thank you for the last 10 years that we've grown together, both theCUBE and Nutanix and myself as a leader in the last 10 years. So bringing HCI from hyperconverged to hybrid cloud just reminds me of how the more things change, the more they remain the same. So looking forward to a great discussion here. >> So talk about that early discussion, what the hyperscalers were doing, how can the enterprise take advantage of that? Over time, enterprise has matured and looked a little bit more like the hyperscalers. Hybrid cloud of course is on everyone's lip, as well as we've seen the hyperscalers themselves look more and more like the enterprise. So hybrid and multicloud is where we are today. We think it'll be in the future. But give us a little bit as to how you've seen that progression today and where are we going down the road here? >> Yeah, I think I talked about this during my .NEXT keynote. And the whole idea of, in every recession, we make things smaller. In '91 we said we're going to go away from mainframes into Unix servers. And we made the unit of compute smaller. Then in the year 2000 when there was the next bubble burst and the recession afterwards, we moved from Unix servers to Wintel: Windows and Intel, x86 and eventually Linux as well. Again we made things smaller going from million dollar servers to $5,000 servers, shorter lived servers. And that's what we did in 2008/2009. I said, look, we don't even need to buy servers. We can do things with virtual machines which are servers that are an incarnation in the digital world. There is nothing in the physical world that actually went lives. But we made it even smaller. And now with cloud in the last three, four years and what will happen in this coming decade, they're going to make it even smaller, not just in space which is size with functions and containers and virtual machines, but also in time. So space and time, we're talking about hourly billing and monthly billing and a one-year term as opposed to really going and committing to five or seven years of hardware and CapEx. So I think as you make things smaller, I mean, and this is true for as consumers, we have short retention spans, things are going fast. The cycle of creative destruction of virtual machines is shrinking as well. So I think in many cases, we know we've gone and created this autonomy, massive sprawl. Like we created a massive sprawl of Intel servers back in '95 and 2005. Then we have to use virtualization to go and consolidate all of it, created beautiful data centers of Intel servers with VMware software. And then we created a massive sprawl of data centers, of consolidated data centers with one click private cloud in the last five years and hopefully in the next five too. But I think we're also now creating a proliferation of clouds. There is a sprawl, massive sprawl of cost centers and such. So we need yet another layer of software for governance to reign in on that chaos, hence the need for a new HCI, hybrid cloud infrastructure. >> Yeah, it's fascinating to kind of watch that progression over time. There was a phenomenal Atlantic article. I think it was from like the 1940s or 1950s where somebody took what was happening post-World War II and projected things out. We're talking really pre the internet, but just the miniaturization and the acceleration, kind of the Moore's law discussion. If you take things out, where it would go. When I talked to Amazon, they said the one thing that we know for sure, I'm talking to Amazon.com is that people will want it faster and cheaper in the future. I don't know which robot or drone or things that they have. But absolutely there are those certain characteristics. So from a leadership standpoint, Dheeraj, talk about these changes? We had the wave of virtualization, the wave of containerization, you talked about functions in serverless. Those are tools. But at the end of the day, it's about the outcomes and how do we take advantage of things? So how as a leader do you make sure that you know where to take the company as these technology waves and changes impact what you're doing? >> Yeah, it's a great point. I mean, we celebrate things in IT a lot, but we don't talk about what does it take? What's the underlying fabric to really use these things successfully and better than others and not just use buzzwords, because new buzzwords will come in the next three years. For example AI and ML has been a great buzzword for the last three, four years. But there's very few companies, probably less than even half a percent who know how to leverage machine learning, even understand the difference between machine learning and AI. And a lot of it comes down to a few principles. There's a culture principles, not the least of which is how you celebrate failure, because now you're doing shorter, smaller things. You've got a more agile, you'll have more velocity. Gone are the days of waterfall where you're doing yearly planning and pre-year releases and such. So as we get into this new world, not everything will be perfect, and you've got to really learn to pick yourself up and recover quickly, heal quickly and such. So that is the fundamental tenet of Silicon Valley. And we got to really go and use this more outside the Valley as well in every company out there. Whether it's East Coast company, the Midwest company that are outside the U.S. I think this idea that you will be vulnerable, more vulnerable as you go and learn to do things faster and shorter. I think product management is a term that we don't fully understand, and this is about the why before the how and the what. We quickly jump to the what: containers and functions and databases, servers, and AI, and ML, they're the what. But how do you really start with the why? You know my fascination for one of my distant mentors, Simon Sinek and how he thinks about most companies just focusing on the what, while very few actually start with why, then the how, then the what itself. And product management has to play a key role in this, which also subsumes design, thinking about simplification and elegance and reducing friction. I think again, very few companies, probably no more than 1% of the companies really understand what it means to start with design and APIs, user experience APIs for developers before you even get to writing any single line of code. So I think to me, that's leadership. When you can stay away from instant gratification of the end result, but start with the why, then the how, then the what. >> Yeah, as we know in the technology space, oftentimes the technology is the easy part. It's helping to drive that change. I think back to the early days when we were talking, it was, hyperconverge, it was a threat to storage. We're going to put you out of a job. And we'd always go and say, "Look, no, no, no. We're not putting you out of a job. We're going to free you up to do the things that you want to do. That security project that's been sitting on the shelf for six months, you can go do that. Helping build new parts of the business. Those things that you can do." It's that shifting a mindset can be so difficult. And Dheeraj, I mean, you look at 2020, everyone has had to shift their mindset for everything. I was spending half my time on the road. I don't miss the hotels. I do miss seeing lots and lots of people in person. So what's your advice for people, how they can stay malleable, be open to some change? What are you seeing out there? What advice do you give there? >> Yeah, I think, as you said, inertia is at the core of most things in our lives, including what we saw in healthcare for the last 20, 30 years. I mean, there was so much regulation. The doctor's community had to move forward, nurses had to move forward. I mean, not just providers, but insurance companies. And finally, all of a sudden, we're talking about telehealth because of the pandemic. We are talking about online learning. I mean the things that higher ed refused to do. I mean if you think about the last 20 years of what had happened with the cost of higher ed, I mean it's 200% growth when the cost of television has gone down by probably 100, 200% with more features. Healthcare, higher ed, education in general, all of a sudden is coming for this deep shock because of the pandemic. And I think it's these kind of black swan moments that really changed the world. And I know it's a cliche to say this. But I feel like we are going to be in a new normal, and we have been forced to this new change of digital. I mean, you and I are sitting and talking over the internet. It's a little awkward right now because there's a little bit of a delay in the way I'm looking at things. But I know it's going to directionally be right. I mean, we will go in a way where it just become seamless over time. So change is the only constant. And I believe that I think what we've seen in the pandemic is just the beginning of what digital will mean going forward. And I think the more people embrace it, the faster we do it. Speed is going to be the name of the game when it comes to survival and thriving in this new age. >> Dheeraj, it's interesting. We do hope, I'm a technologist. I know you're an optimist when it comes to things. So we always look at those silver linings. Like I hope healthcare and education will be able to move forward fast. Higher education costs, inequity out there for access to medicine. It would be wonderful if we could help solve some of that, despite this global pandemic. One of the other results, Dheeraj, we talked about some very shifts in the marketplace, the large tech players really have emerged in winter so far in 2020. I can't help, but watch the stock market. And Apple is bigger than ever, Amazon, Google, all ended up in front of Congress to talk about if they've gotten too big. You've partnered with Amazon, Microsoft, and Google. They are potentially a threat but also a partner. From your standpoint, have they gotten too much power? Do we have an inequity in the tech world that they are creating the universes that they will just kind of block off and limit innovation? What's your take on big tech? >> Yeah, I mean, I feel like there's always been big something. I mean, if you go back to the '90s, Amazon, not Amazon, IBM was big, and Microsoft was big, and AT&T was big. I mean, there's always been big companies because the consumer effect that they've had as well, I mean. And I think what we're seeing right now is no different. I mean, at the end of the day, the great thing about this country is that there's always disruption happening. And sometimes small is way better and way more competitive than big. Now at the same time, I do look up to the way some of them have organized themselves. Like the way Amazon has organized itself is really unique and creative with general managers and very independent, highly autonomous groups. So some of these organizations will definitely survive and thrive in scale. And yet for others, I think decision-making and staying competitive and staying scrappy will come a lot harder. So to me when I look at these big names and what Congress is talking about and such, I feel like there's no different than 20, 30, 40 years ago. I mean, we talked about Rockefeller and the oil giants back from 100 years ago. And so in many ways, I mean, the more things change, the more they remain the same. All we have to do is we have to walk over to where the customer is. And that's what we've done with the partnerships. Like in Amazon and Azure, we're saying look, we can even use your commits and credits. I mean, that is a very elegant way to go to where the customer is, rather than force them to where we are. And the public cloud is facing this too. They've come to realize in the last two years that they cannot force all of enterprise computing to come to hyperscalers data centers. They'll have to take in these bite-size smaller clouds to where the customer is, where the customer's machines are, where the customers people are, where the customers data is. That's where we also take to disperse the cloud itself. So I think there's going to be a yin yang where we'll try to walk with the customer to where we want them to be, whether it's hyperscaler data center or the notion of hybrid cloud infrastructure. But many a time, we've got to walk over to where they are. I mean, and outside the U.S, I mean, the cloud is such a nuanced word. I mean, we're talking about sovereignty, we're talking about data gravity, we're talking about economics of owning versus renting. This trifecta, the laws of the land, the laws of physics, and the laws of economics will dictate many of these things as well. So I think the big folks are also humble and vulnerable to realize that there's nothing more powerful than market forces. And I think the rest will take care of itself. >> Yeah, my quick commentary on that, Dheeraj, I think most of us look back at AT&T and felt the government got it wrong. The way they broke it up and ended up consolidating back together, it didn't necessarily help consumers. Microsoft on the other hand might've had a little bit too much power and was leveraging that against competition and really squashing innovation. So in general, it's good to see that the politics are looking at that and chore felt. The last time I watched things, they were a little bit more educated than some previous times there, where it was almost embarrassing to watch our representatives fumbling around with technology. So it's always good to question authority, question what they have. And one of the things you've brought up many times is you're open to listening and you're bringing in new ideas. I remember one conversation I had with you is there's that direction that you hold on to, but you will assess and do new data. You've made adjustments in the product portfolio and direction based on your customers, based on the ecosystem. And you've mentioned some of the, bring thoughts that you've brought into the company and you share. So you mentioned black swan that seem to head you brought to one of the European .NEXT shows. It was great to be able to see that author and read through advisors like Condoleezza Rice who you've had at the conferences a couple of times. Where are you getting some of your latest inspiration from, any new authors or podcasts that you'd be recommending to the audience? >> Yeah, I look at adjacencies, obviously Simon has been great. He was .NEXT, talked about the Infinite Game. And we'll talk about the Infinite Game with Nutanix too with respect to also my decision. But Brene Brown was been very close to Nutanix. I was just looking at her latest podcast, and she was sitting with the author of Stretch, Scott Sonnenschein, and it's a fascinating read and a great listen, by the way, I think for worth an hour, talking about scrappiness, and talking about resourcefulness. What does it mean to really be resourceful? And we need that even more so as we go through this recession, as we are sheltered in place. I think it's an adjacency to everything that Brene does. And I was just blown away by just listening to it. I'd a love for others to even have a listen and learn to understand what we can do within our families, with our budgets, with our companies, with our startups. I mean, with CUBE, I mean, what does it mean to be scrappy? And celebrate scrappiness and resourcefulness, more so than AI always need more. I think I just found it fascinating in the last week itself listening through it. >> John Farinacci talk many times that founder, startup, that being able to pull themselves up, be able to drive forward, overcome obstacles. So Dheeraj, do you tee it up? It sounds like is the next step for you. There's a transition under discussion. Bain has made an investment. There's a search for new CEO. Are you saying there's a book club in your future to be able to get things ready? Why don't you explain a little bit, 11 years took the company public, over 6,500 employees public company. So tell us a little bit about that decision-making process and what you expect to see in the future? >> Yeah, it's probably one of the hardest things as an entrepreneur is to let go, because it's a creation that you followed from scratch, from nothing. And it was a process for me to rethink about what's next for the company and then what's next for me? And me and the company were so tightly coupled that I was like, wow, at some point, this has to be a little bit more like the way Bill Gates did it with Microsoft, and there's going to be buton zone and you will then start to realize that your identity is different from the company's identity. And maybe the company is built for bigger, better things. And maybe you're built for bigger, better things. And how do you really start to first do this decoupling of the identity? And it's really hard. I mean, I'm sure that parents go through this. I mean, our children are still very young. Our eldest is nine going on 10 and our twin girls are six. I know at some point in the next 10 years, eight to 10 years, we'll have to figure out what it means to let go. And I'm already doing this with my son. I tell him you're born free. I mean, the word born free which drives my wife crazy sometimes. I say this to them, it's about independence. And I think the company is also born free to really think about a life outside of me, as well outside of founder. And that was a very important process for me as I was talking to the board for the last six, seven, eight months. And when the Bain deal came in, I thought it was a great time. We ended the fiscal really well, all things considered. We had a good quarter. The transition has been a journey of a lifetime, the business model transition I speak of. Really three years, I mean, I have aged probably 10 years in these last three years. But I think I would not replaced it for anything. Just the experience of learning what it means to change as a public company when you have short-term goals and long-term goals, we need the conviction, knowing what's right, because otherwise we would not have survived this cloud movement, all this idea of actually becoming a subscription company, changing the core of the business in the on-prem world itself. It's a king to change the wings of a plane at 40,000 feet where none of the passengers blink. It's been phenomenal ride last 11 years, but it's also been nonstop monomaniacal. I mean, I use the word marathon for this, and I figured it's a good time to say figure out a way to let go of this, and think of what's bigger better for Nutanix. And going from zero to a billion six in annual billings, and looking at billion six to 3 billion to four to five, I think it'd be great &to look at this from afar. And at the same time, I think there's vulnerability. I mean, I've made the company vulnerable. I've made myself vulnerable. We don't know who the next leader will be. And I think the next three to six months is one of the most important baton zones that I have ever experienced to be a part of. So looking forward to make sure that baton doesn't fall, redefine what good to great looks like, both for the company and for myself. And at the same time, go read more. I mean, I've been passionate about developers in the last 10 years, 11 years. I was a developer myself. This company, Nutanix, was really built by developers for IT. And I'm learning more about the developer as a consumer. How do you think about their experience? Not just the things that we throw at them from open source point of view and from cloud and technologies and AI and ML point of view, but really their lives, having them think about revenue and business and really blurring the lines between architects and product managers and developers. I think it's just an unfathomable problem we've created in IT that I would love to go and read and write more about. >> Yeah, so many important things you said there. I absolutely think that there are certain things everybody of course will think of you for a long time with Nutanix, but there is that separation between the role in the company and the person itself, and really appreciated how much you've always shared along those lines. So last question I have and you hit it up a little bit when you talked about developers. Take off your Nutanix hat for a second here, now what do we need to do to make sure that the next decade is successful in this space, cloud as a general guideline? Yes, we know we have skill gap. We know we need more people, we need more diversity. But there's so much that we need and there's so much opportunity, but what do you see and any advice areas that you think are critical for success in the future? >> Yeah, I mean, you hit up on something that I have had a passion for, probably more late in this world, more so than conspicuous, and and you hit upon it right now, diversity and inclusion. It's an unresolved problem in the developer community: the black developer, the woman developer. The idea of, I mean, we've two girls, they're twins. I'd love for them to embrace computer science and even probably do a PhD. I mean, I was a dropout. I'd love for them to do better than I did. Get, embrace things that are adjacent to biology and computer science. Go solve really hard problems. And we've not done those things. I mean, we've not looked at the community of developers and said, you know, they are the maker. And they work with managers and the maker manager world is two different worlds. How do you make this less friction? And how do you make this more delightful? And how do you think of developers as business, as if they are the folks who run the business? I think there's a lot that's missing there. And again, we throw a lot of jargons at them, and we talk a lot about automation and tools and such. But those are just things. I think the last 10, 11 years of me really just thinking about product and product portfolio and design and the fact that we have so many developers at Nutanix. I think it has been a mind-boggling experience, thinking about the why and the how and the what of the day in the life of, the month in the life of, and thinking about simple things like OKRs. I mean, we are throwing these jargons of OKRs at them: productivity, offshoring, remote work, over the zoom design sessions. It's just full of conflict and friction. So I think there is an amazing opportunity for Nutanix. There's an amazing opportunity for the industry to elevate this where the the woman developer can speak up in this world that's full of so many men. The black developer can speak up. And all of us can really think of this as something that's more structured, more productive, more revenue-driven, more customer in rather than developer out. That's really been some of the things that have been in my head, things that are still unresolved at Nutanix that I'm pretty sure at many of the places out there. That's what thinking and reading and writing about. >> Well, Dheeraj, first of all, thank you so much again for participating here. It's been great having you in theCUBE community, almost since the inception of us doing it back in 2010. Wish you the best of luck in the current transition. And absolutely look forward to talking more in the future. >> Thank you. And again, a big fan of the tremor rate of John, Dave, and you. Always learn so much from you, folks. Looking forward to be a constant student. Thank you. >> Thank you for joining us at theCUBE on Cloud. Lots more coverage here. Be sure to look throughout the site, engage in the chats, and give us your feedback. We're here to help you with the virtual events. I'm Stu Miniman as always. Thanks for watching.

(radio calls) >> Announcer: From around the globe, its theCUBE covering Space & Cybersecurity Symposium 2020, hosted by Cal poly. Hello, welcome back to theCUBE virtual coverage with Cal Poly for the Space and Cybersecurity Symposium, a day four and the wrap up session, keynote session with the Lieutenant Governor of California, Eleni Kounalakis. She's here to deliver her keynote speech on the topic of California's role in supporting America's Cybersecurity future. Eleni, take it away. >> Thank you, John, for the introduction. I am Lieutenant Governor Eleni Kounalakis. It is an honor to be part of Cal Poly Space and Cybersecurity Symposium. As I speak kind of Pierre with the governor's office of business and economic development is available on the chat, too ready to answer any questions you might have. California and indeed the world are facing significant challenges right now. Every day we are faced with the ongoing COVID-19 pandemic and the economic downturn that is ensued. We have flattened the curve in California and are moving in the right direction but it is clear that we're not out of the woods yet. It is also impossible right now to escape the reality of climate change from the fire sparked by exceptionally rare, dry lightening events to extreme heat waves threatening public health and putting a strain on our electricity grid. We see that climate change is here now. And of course we've been recently confronted with a series of brutal examples of institutionalized racism that have created an awakening among people of all walks of life and compelled us into the streets to march and protest. In the context of all this, we cannot forget that we continue to be faced with other less visible but still very serious challenges. Cybersecurity threats are one of these. We have seen cities, companies and individuals paralyzed by attacks costing time and money and creating an atmosphere of uncertainty and insecurity. Our state agencies, local governments, police departments, utilities, news outlets and private companies from all industries are target. The threats around cybersecurity are serious but not unlike all the challenges we face in California. We have the tools and fortitude to address them. That is why this symposium is so important. Thank you, Cal Poly and all the participants for being here and for the important contributions you bring to this conference. I'd like to also say a few words about California's role in America's future in space. California has been at the forefront of the aerospace industry for more than a century through all the major innovations in aerospace from wooden aircraft, to World War II Bombers, to rockets and Mars rovers. California has played a pivotal role. Today, California is the number one state in total defense spending, defense contract spending and total number of personnel. It is estimated the Aerospace and Defense Industry, provides $168 billion in economic impact to our state. And America's best trained and most experienced aerospace and technology workforce lives here in California. The fact that the aerospace and defense sector, has had a strong history in California is no accident. California has always had strong innovation ecosystem and robust infrastructure that puts many sectors in a position to thrive. Of course, a big part of that infrastructure is a skilled workforce. And at the foundation of a skilled workforce is education. California has the strongest system of public higher education in the world. We're home to 10 university of California campuses, 23 California State university campuses and 116 California Community Colleges. All told nearly 3 million students are enrolled in public higher education. We also have world renowned private universities including the California Institute of Technology and Stanford University numbers one and three in the country for aerospace engineering. California also has four national laboratories and several NASA facilities. California possesses a strong spirit of innovation, risk taking and entrepreneurship. Half of all venture capital funding in the United States, goes to companies here in California. Lastly, but certainly no less critical to our success, California is a diverse state. 27% of all Californians are foreign born, 27% more than one in four of our population of 40 million people are immigrants from another country, Europe central and South America, India, Asia, everywhere. Our rich cultural diversity is our strength and helps drive our economy. As I look to the future of industries like cybersecurity and the growing commercial space industry, I know our state will need to work with those industries to make sure we continue to train our workforce for the demands of an evolving industry. The office of the lieutenant governor has a unique perspective on higher education and workforce development. I'm on the UC Board of Regents, the CSU Board of Trustees. And as of about two weeks ago, the Community Colleges Board of Governors. The office of the lieutenant governor is now the only office that is a member of every governing board, overseeing our public higher education system. Earlier in the symposium, we heard a rich discussion with Undersecretary Stewart Knox from the California Labor and Workforce Development Agency about what the state is doing to meet the needs of space and cybersecurity industries. As he mentioned, there are over 37,000 job vacancies in cybersecurity in our state. We need to address that gap. To do so, I see an important role for public private partnerships. We need input from industry and curriculum development. Some companies like Lockheed Martin, have very productive partnerships with universities and community colleges that train students with skills they need to enter aerospace and cyber industries. That type of collaboration will be key. We also need help from the industry to make sure students know that fields like cybersecurity even exist. People's early career interests are so often shaped by the jobs that members of their family have or what they see in popular culture. With such a young and evolving field like cybersecurity, many students are unaware of the job opportunities. I know for my visits to university campuses that students are hungry for STEM career paths where they see opportunities for good paying jobs. When I spoke with students at UC Merced, many of them were first generation college students who went through community college system before enrolling in a UC and they gravitated to STEM majors. With so many job opportunities available to STEM students, cybersecurity ought to be one that they are aware of and consider. Since this symposium is being hosted by Cal Poly, I wanted to highlight the tremendous work they're doing as leaders in the space and cybersecurity industry. Cal Poly California Cybersecurity Institute, does incredible work bringing together academia, industry and government training the next generation of cyber experts and researching emerging cybersecurity issues. As we heard from the President of Cal Poly, Jeff Armstrong the university is in the perfect location to contribute to a thriving space industry. It's close to Vandenberg Air Force Base and UC Santa Barbara and could be home to the future permanent headquarters of US Space Command. The state is also committed to supporting this space industry in the Central Coast. In July, the State of California, Cal poly US-based force and the others signed a memorandum of understanding to develop a commercial space port at Vandenberg Air Force Base and to develop a master plan to grow the commercial space industry in the region. Governor Newsom has made a commitment to lift up all regions of the state. And this strategy will position the Central Coast to be a global leader in the future of the space industry. I'd like to leave you with a few final thoughts, with everything we're facing. Fires, climate change, pandemic. It is easy to feel overwhelmed but I remain optimistic because I know that the people of the State of California are resilient, persistent, and determined to address our challenges and show a path toward a better future for ourselves and our families. The growth of the space industry and the economic development potential of projects like the Spaceport at Vandenberg Air Force Base, our great example of what we can look forward to. The potential for the commercial space industry to become a $3 trillion industry by mid century, as many experts predict is another. There are so many opportunities, new companies are going to emerge doing things we never could have dreamed of today. As Lieutenant General John Thompson said in the first session, the next few years of space and cyber innovation are not going to be a pony ride at the state fair, they're going to be a rodeo. We should all saddle up. Thank you. >> Okay, thank you very much, Eleni. I really appreciate it. Thank you for your participation and all your support to you and your staff. You guys doing a lot of work, a lot going on in California but cybersecurity and space as it comes together, California's playing a pivotal role in leading the world and the community. Thank you very much for your time. >> Okay, this session is going to continue with Bill Britton. Who's the vice president of technology and CIO at Cal Poly but more importantly, he's the director of the cyber institute located at Cal Poly. It's a global organization looking at the intersection of space and cybersecurity. Bill, let's wrap this up. Eleni had a great talk, talking about the future of cybersecurity in America and its future. The role California is playing, Cal Poly is right in the Central Coast. You're in the epicenter of it. We've had a great lineup here. Thanks for coming on. Let's put a capstone on this event. >> Thank you, John. But most importantly, thanks for being a great partner helping us get this to move forward and really changing the dynamic of this conversation. What an amazing time we're at, we had quite an unusual group but it's really kind of the focus and we've moved a lot of space around ourselves. And we've gone from Lieutenant General Thompson and the discussion of the opposition and space force and what things are going on in the future, the importance of cyber in space. And then we went on and moved on to the operations. And we had a private company who builds, we had the DOD, Department Of Defense and their context and NASA and theirs. And then we talked about public private partnerships from President Armstrong, Mr. Bhangu Mahad from the DOD and Mr. Steve Jacques from the National Security Space Association. It's been an amazing conference for one thing, I've heard repeatedly over and over and over, the reference to digital, the reference to cloud, the reference to the need for cybersecurity to be involved and really how important that is to start earlier than just at the employment level. To really go down into the system, the K through 12 and start there. And what an amazing time to be able to start there because we're returning to space in a larger capacity and it's now all around us. And the lieutenant governor really highlighted for us that California is intimately involved and we have to find a way to get our students involved at that same level. >> I want to ask you about this inflection point that was a big theme of this conference and symposium. It was throughout the interviews and throughout the conversations, both on the chat and also kind of on Twitter as well in the social web. Is that this new generation, it wasn't just space and government DOD, all the normal stuff you see, you saw JPL, the Hewlett Foundation, the Defense Innovation Unit, Amazon Web Services, NASA. Then you saw entrepreneurs come in, who were doing some stuff. And so you had this confluence of community. Of course, Cal Poly had participated in space. You guys does some great job, but it's not just the physical face-to-face show up, gets to hear some academic papers. This was a virtual event. We had over 300 organizations attend, different organizations around the world. Being a virtual event you had more range to get more people. This isn't digital. This symposium isn't about Central California anymore. It's global. >> No, it really has gone. >> What really happened to that? >> It's really kind of interesting because at first all of this was word of mouth for this symposium to take place. And it just started growing and growing and the more that we talk to organizations for support, the more we found how interconnected they were on an international scale. So much so that we've decided to take our cyber competition next year and take it globally as well. So if in fact as Major General Shaw said, this is about a multinational support force. Maybe it's time our students started interacting on that level to start with and not have to grow into it as they get older, but do it now and around space and around cybersecurity and around that digital environment and really kind of reduce the digital dividing space. >> Yeah, General Thompson mentioned this, 80 countries with programs. This is like the Olympics for space and we want to have these competitions. So I got great vision and I love that vision, but I know you have the number... Not number, the scores and from the competition this year that happened earlier in the week. Could you share the results of that challenge? >> Yeah, absolutely. We had 83 teams participate this year in the California Cyber Innovation Challenge. And again, it was based around a spacecraft scenario where a spacecraft, a commercial spacecraft was hacked and returned to earth. And the students had to do the forensics on the payload. And then they had to do downstream network analysis, using things like Wireshark and autopsy and other systems. It was a really tough competition. The students had to work hard and we had middle school and high school students participate. We had an intermediate league, new schools who had never done it before or even some who didn't even have STEM programs but were just signing up to really get involved in the experience. And we had our ultimate division which was those who had competed in several times before. And the winner of that competition was North Hollywood. They've been the winning team for four years in a row. Now it's a phenomenal program, they have their hats off to them for competing and winning again. Now what's really cool is not only did they have to show their technical prowess in the game but they also have to then brief and out-brief what they've learned to a panel of judges. And these are not pushovers. These are experts in the field of cybersecurity in space. We even had a couple of goons participating from DefCon and the teams present their findings. So not only are we talking technical, we're talking about presentation skills. The ability to speak and understand. And let me tell you, after reading all of their texts to each other over the weekend adds a whole new language they're using to interact with each other. It's amazing. And they are so more advanced and ready to understand space problems and virtual problems than we are. We have to challenge them even more. >> Well, it sounds like North Hollywood got the franchise. It's likethe Patriots, the Lakers, they've got a dynasty developing down there in North Hollywood. >> Well, what happens when there's a dynasty you have to look for other talent. So next year we're going global and we're going to have multiple states involved in the challenge and we're going to go international. So if North Hollywood pulls it off again next year, it's going to be because they've met the best in the world than defeated >> Okay, the gauntlet has been thrown down, got to take down North Hollywood from winning again next year. We'll be following that. Bill, great to get those results on the cyber challenge we'll keep track and we'll put a plug for it on our site. So we got to get some press on that. My question to you is now as we're going digital, other theme was that they want to hire digital natives into the space force. Okay, the DOD is looking at new skills. This was a big theme throughout the conference not just the commercial partnerships with government which I believe they had kind of put more research and personally, that's my personal opinion. They should be putting in way more research into academic and these environments to get more creative. But the skill sets was a big theme. What's your thoughts on how you saw some of the highlight moments there around skill sets? >> John, it's really interesting 'cause what we've noticed is in the past, everybody thinks skill sets for the engineering students. And it's way beyond that. It's all the students, it's all of them understanding what we call cyber cognizance. Understanding how cybersecurity works whatever career field they choose to be in. Space, there is no facet of supporting space that doesn't need that cyber cognizance. If you're in the back room doing the operations, you're doing the billing, you're doing the contracting. Those are still avenues by which cybersecurity attacks can be successful and disrupt your space mission. The fact that it's international, the connectivities, all of those things means that everyone in that system digitally has to be aware of what's going on around them. That's a whole new thought process. It's a whole new way of addressing a problem and dealing with space. And again it's virtual to everyone. >> That's awesome. Bill, great to have you on. Thank you for including theCUBE virtual, our CUBE event software platform that we're rolling out. We've been using it for the event and thank you for your partnership in this co-creation opening up your community, your symposium to the world, and we're so glad to be part of it. I want to thank you and Dustin and the team and the President of Cal Poly for including us. Thank you very much. >> Thank you, John. It's been an amazing partnership. We look forward to it in the future. >> Okay, that's it. That concludes the Space and Cybersecurity Symposium 2020. I'm John Furrier with theCUBE, your host with Cal Poly, who put on an amazing virtual presentation, brought all the guests together. And again, shout out to Bill Britton and Dustin DeBrum who did a great job as well as the President of Cal poly who endorsed and let them do it all. Great event. See you soon. (flash light sound)

>>C G technology is focused on data where we have long believed that data is in our DNA. We help maximize humanity's potential by delivering world class, precision engineered data solutions developed through sustainable and profitable partnerships. Included in our offerings are hard disk drives. As I'm sure many of you know, ah, hard drive consists of a slider also known as a drive head or transducer attached to a head gimbal assembly. I had stack assembly made up of multiple head gimbal assemblies and a drive enclosure with one or more platters, or just that the head stacked assembles into. And while the concept hasn't changed, hard drive technology has progressed well beyond the initial five megabytes, 500 quarter inch drives that Seagate first produced. And, I think 1983. We have just announced in 18 terabytes 3.5 inch drive with nine flatters on a single head stack assembly with dual head stack assemblies this calendar year, the complexity of these drives further than need to incorporate Edge analytics at operation sites, so G Edward stemming established the concept of continual improvement and everything that we do, especially in product development and operations and at the end of World War Two, he embarked on a mission with support from the US government to help Japan recover from its four time losses. He established the concept of continual improvement and statistical process control to the leaders of prominent organizations within Japan. And because of this, he was honored by the Japanese emperor with the second order of the sacred treasure for his teachings, the only non Japanese to receive this honor in hundreds of years. Japan's quality control is now world famous, as many of you may know, and based on my own experience and product development, it is clear that they made a major impact on Japan's recovery after the war at Sea Gate. The work that we've been doing and adopting new technologies has been our mantra at continual improvement. As part of this effort, we embarked on the adoption of new technologies in our global operations, which includes establishing machine learning and artificial intelligence at the edge and in doing so, continue to adopt our technical capabilities within data science and data engineering. >>So I'm a principal engineer and member of the Operations and Technology Advanced Analytics Group. We are a service organization for those organizations who need to make sense of the data that they have and in doing so, perhaps introduce a different way to create an analyzed new data. Making sense of the data that organizations have is a key aspect of the work that data scientist and engineers do. So I'm a project manager for an initiative adopting artificial intelligence methodologies for C Gate manufacturing, which is the reason why I'm talking to you today. I thought I'd start by first talking about what we do at Sea Gate and follow that with a brief on artificial intelligence and its role in manufacturing. And I'd like them to discuss how AI and machine Learning is being used at Sea Gate in developing Edge analytics, where Dr Enterprise and Cooper Netease automates deployment, scaling and management of container raised applications. So finally, I like to discuss where we are headed with this initiative and where Mirant is has a major role in case some of you are not conversant in machine learning, artificial intelligence and difference outside some definitions. To cite one source, machine learning is the scientific study of algorithms and statistical bottles without computer systems use to effectively perform a specific task without using explicit instructions, relying on patterns and inference Instead, thus, being seen as a subset of narrow artificial intelligence were analytics and decision making take place. The intent of machine learning is to use basic algorithms to perform different functions, such as classify images to type classified emails into spam and not spam, and predict weather. The idea and this is where the concept of narrow artificial intelligence comes in, is to make decisions of a preset type basically let a machine learn from itself. These types of machine learning includes supervised learning, unsupervised learning and reinforcement learning and in supervised learning. The system learns from previous examples that are provided, such as images of dogs that are labeled by type in unsupervised learning. The algorithms are left to themselves to find answers. For example, a Siris of images of dogs can be used to group them into categories by association that's color, length of coat, length of snout and so on. So in the last slide, I mentioned narrow a I a few times, and to explain it is common to describe in terms of two categories general and narrow or weak. So Many of us were first exposed to General Ai in popular science fiction movies like 2000 and One, A Space Odyssey and Terminator General Ai is a I that can successfully perform any intellectual task that a human can. And if you ask you Lawn Musk or Stephen Hawking, this is how they view the future with General Ai. If we're not careful on how it is implemented, so most of us hope that is more like this is friendly and helpful. Um, like Wally. The reality is that machines today are not only capable of weak or narrow, a I AI that is focused on a narrow, specific task like understanding, speech or finding objects and images. Alexa and Google Home are becoming very popular, and they can be found in many homes. Their narrow task is to recognize human speech and answer limited questions or perform simple tasks like raising the temperature in your home or ordering a pizza as long as you have already defined the order. Narrow. AI is also very useful for recognizing objects in images and even counting people as they go in and out of stores. As you can see in this example, so artificial intelligence supplies, machine learning analytics inference and other techniques which can be used to solve actual problems. The two examples here particle detection, an image anomaly detection have the potential to adopt edge analytics during the manufacturing process. Ah, common problem in clean rooms is spikes in particle count from particle detectors. With this application, we can provide context to particle events by monitoring the area around the machine and detecting when foreign objects like gloves enter areas where they should not. Image Anomaly detection historically has been accomplished at sea gate by operators in clean rooms, viewing each image one at a time for anomalies, creating models of various anomalies through machine learning. Methodologies can be used to run comparative analyses in a production environment where outliers can be detected through influence in an automated real Time analytics scenario. So anomaly detection is also frequently used in machine learning to find patterns or unusual events in our data. How do you know what you don't know? It's really what you ask, and the first step in anomaly detection is to use an algorithm to find patterns or relationships in your data. In this case, we're looking at hundreds of variables and finding relationships between them. We can then look at a subset of variables and determine how they are behaving in relation to each other. We use this baseline to define normal behavior and generate a model of it. In this case, we're building a model with three variables. We can then run this model against new data. Observations that do not fit in the model are defined as anomalies, and anomalies can be good or bad. It takes a subject matter expert to determine how to classify the anomalies on classify classification could be scrapped or okay to use. For example, the subject matter expert is assisting the machine to learn the rules. We then update the model with the classifications anomalies and start running again, and we can see that there are few that generate these models. Now. Secret factories generate hundreds of thousands of images every day. Many of these require human toe, look at them and make a decision. This is dull and steak prone work that is ideal for artificial intelligence. The initiative that I am project managing is intended to offer a solution that matches the continual increased complexity of the products we manufacture and that minimizes the need for manual inspection. The Edge Rx Smart manufacturing reference architecture er, is the initiative both how meat and I are working on and sorry to say that Hamid isn't here today. But as I said, you may have guessed. Our goal is to introduce early defect detection in every stage of our manufacturing process through a machine learning and real time analytics through inference. And in doing so, we will improve overall product quality, enjoy higher yields with lesser defects and produce higher Ma Jin's. Because this was entirely new. We established partnerships with H B within video and with Docker and Amaranthus two years ago to develop the capability that we now have as we deploy edge Rx to our operation sites in four continents from a hardware. Since H P. E. And in video has been an able partner in helping us develop an architecture that we have standardized on and on the software stack side doctor has been instrumental in helping us manage a very complex project with a steep learning curve for all concerned. To further clarify efforts to enable more a i N M l in factories. Theobald active was to determine an economical edge Compute that would access the latest AI NML technology using a standardized platform across all factories. This objective included providing an upgrade path that scales while minimizing disruption to existing factory systems and burden on factory information systems. Resource is the two parts to the compute solution are shown in the diagram, and the gateway device connects to see gates, existing factory information systems, architecture ER and does inference calculations. The second part is a training device for creating and updating models. All factories will need the Gateway device and the Compute Cluster on site, and to this day it remains to be seen if the training devices needed in other locations. But we do know that one devices capable of supporting multiple factories simultaneously there are also options for training on cloud based Resource is the stream storing appliance consists of a kubernetes cluster with GPU and CPU worker notes, as well as master notes and docker trusted registries. The GPU nodes are hardware based using H B E l 4000 edge lines, the balance our virtual machines and for machine learning. We've standardized on both the H B E. Apollo 6500 and the NVIDIA G X one, each with eight in video V 100 GP use. And, incidentally, the same technology enables augmented and virtual reality. Hardware is only one part of the equation. Our software stack consists of Docker Enterprise and Cooper Netease. As I mentioned previously, we've deployed these clusters at all of our operations sites with specific use. Case is planned for each site. Moran Tous has had a major impact on our ability to develop this capability by offering a stable platform in universal control plane that provides us, with the necessary metrics to determine the health of the Kubernetes cluster and the use of Dr Trusted Registry to maintain a secure repository for containers. And they have been an exceptional partner in our efforts to deploy clusters at multiple sites. At this point in our deployment efforts, we are on prem, but we are exploring cloud service options that include Miranda's next generation Docker enterprise offering that includes stack light in conjunction with multi cluster management. And to me, the concept of federation of multi cluster management is a requirement in our case because of the global nature of our business where our operation sites are on four continents. So Stack Light provides the hook of each cluster that banks multi cluster management and effective solution. Open source has been a major part of Project Athena, and there has been a debate about using Dr CE versus Dr Enterprise. And that decision was actually easy, given the advantages that Dr Enterprise would offer, especially during a nearly phase of development. Cooper Netease was a natural addition to the software stack and has been widely accepted. But we have also been a work to adopt such open source as rabbit and to messaging tensorflow and tensor rt, to name three good lab for developments and a number of others. As you see here, is well, and most of our programming programming has been in python. The results of our efforts so far have been excellent. We are seeing a six month return on investment from just one of seven clusters where the hardware and software cost approached close to $1 million. The performance on this cluster is now over three million images processed per day for their adoption has been growing, but the biggest challenge we've seen has been handling a steep learning curve. Installing and maintaining complex Cooper needs clusters in data centers that are not used to managing the unique aspect of clusters like this. And because of this, we have been considering adopting a control plane in the cloud with Kubernetes as the service supported by Miranda's. Even without considering, Kubernetes is a service. The concept of federation or multi cluster management has to be on her road map, especially considering the global nature of our company. Thank you.

>> From theCUBE studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> The steepest drop in the stock market since June 11th flipped the narrative and sent investors scrambling. Tech got hammered after a two-month run, and people are asking questions. Is this a bubble popping, or is it a healthy correction? Are we now going to see a rotation into traditional stocks, like banks and maybe certain cyclicals that have lagged behind the technology winners? Hello, everyone, and welcome to this week's episode of Wikibon's CUBE Insights powered by ETR. In this Breaking Analysis, we want to give you our perspective on what's happening in the technology space and unpack what this sentiment flip means for the balance of 2020 and beyond. Let's look at what happened on September 3rd, 2020. The tech markets recoiled this week as the NASDAQ Composite dropped almost 5% in a single day. Apple's market cap alone lost $178 billion. The Big Four: Apple, Microsoft, Amazon, and Google lost a combined value that approached half a trillion dollars. For context, this number is larger than the gross domestic product for countries as large as Thailand, Iran, Austria, Norway, and even the UAE, and many more. The tech stocks that have been running due to COVID, well, they got crushed. These are the ones that we've highlighted as best positioned to thrive during the pandemic, you know, the work-from-home, SaaS, cloud, security stocks. We really have been talking about names like Zoom, ServiceNow, Salesforce, DocuSign, Splunk, and the security names like CrowdStrike, Okta, Zscaler. By the way, DocuSign and CrowdStrike and Okta all had nice earnings beats, but they still got killed underscoring the sentiment shift. Now the broader tech market was off as well on sympathy, and this trend appears to be continuing into the Labor Day holiday. Now why is this happening, and why now? Well, there are a lot of opinions on this. And first, many, like myself, are relatively happy because this market needed to take a little breather. As we've said before, the stock market, it's really not reflecting the realities of the broader economy. Now as we head into September in an election year, uncertainty kicks in, but it really looks like this pullback was fueled by a combination of an overheated market and technical factors. Specifically, take a look at volatility indices. They were high and rising, yet markets kept rising along with them. Robinhood millennial investors who couldn't bet on sports realized that investing in stocks was as much of a rush and potentially more lucrative. The other big wave, which was first reported by the Financial Times, is that SoftBank made a huge bet on tech and bought options tied to around $50 billion worth of high-flying tech stocks. So the option call volumes skyrocketed. The call versus put ratio was getting way too hot, and we saw an imbalance in the market. Now market makers will often buy an underlying stock to hedge call options to ensure liquidity in these cases. So to be more specific, delta in options is a measure of the change in the price of an option relative to the underlying stock, and gamma is a measure of the volatility of the delta. Now usually, volatility is relatively consistent on both sides of the trade, the calls and the puts, because investors often hedge their bets. But in the case of many of these hot stocks, like Tesla, for example, you've seen the call skew be much greater than the skew in the downside. So let's take an example. If people are buying cheap out of the money calls, a market maker might buy the underlying stock to hedge for liquidity. And then if Elon puts out some good news, which he always does, the stock goes up. Market makers have to then buy more of the underlying stock. And then algos kick in to buy even more. And then the price of the call goes up. And as it approaches it at the money price, this forces market makers to keep buying more of that underlying stock. And then the melt up until it stops. And then the market flips like it did this week. When stock prices begin to drop, then market makers were going to rebalance their portfolios and their risk and sell their underlying stocks, and then the rug gets pulled out from the markets. And that's really why some of the stocks that have run dropped so precipitously. Okay, why did I spend so much time on this, and why am I not freaking out? Because I think these market moves are largely technical versus fundamental. It's not like 1999. We had a double whammy of technical rug pulls combined with poor underlying fundamentals for high-flying companies like CMGI and Internet Capital Group, whose businesses, they were all about placing bets on dot-coms that had no business models other than non-monetizable eyeballs. All right, let's take a look at the NASDAQ and dig into the data a little bit. And I think you'll see what I mean and why I'm not too concerned. This is a year-to-date chart of the NASDAQ, and you can see it bottomed on March 23rd at 6,860. And then ran up until June 11th and had that big drop, but was still elevated at 9,492. And then it ran up to over 12,000 and hit an all-time high. And then you see the big drop. And that trend continued on Friday morning. The NASDAQ Composite traded below 11,000. It actually corrected to 10% of its high, 9.8% to be precise, and then it snapped back. But even at its low, that's still up over 20% for the year. In the year of COVID, would that have surprised you in March? It certainly would have surprised me. So to me, this pullback is sort of a relief. It's good and actually very normal and quite predictable. Now the exact timing of these pullbacks, of course, on the other hand is not entirely predictable. Not at all, frankly, at least for this observer. So the big question is where do we go from here? So let's talk about that a little bit. Now the economy continues to get better. Take a look at the August job report; it was good. 1.4 million new jobs, 340,000 came from the government. That was positive numbers. And the other good news is it translates into a drop in unemployment under 10%. It's now at 8.4%. And this is really good relative to expectations. Now the sell-off continued, which suggested that the market wanted to keep correcting, so that's good. Maybe some buying opportunities would emerge in over the next several months, the market snapped back, but for those who have been waiting, I think that's going to happen. And so that snapback, maybe that's an indicator that the market wants to keep going up, we'll see. But I think there are more opportunities ahead because there's really so much uncertainty. What's going to happen with the next round of the stimulus? The jobs report, maybe that's a catalyst for compromise between the Democrats and the Republicans, maybe. The US debt is projected to exceed 100% of GDP this calendar year. That's the highest it's been since World War II. Does that give you a good feeling? That doesn't give me a good feeling. And when we talk about the election, that brings additional uncertainty. So there's a lot to think about for the markets. Now let's talk about what this means for tech. Well, as we've been projecting for months with our colleagues at ETR, despite what's going on in the stock market and its rise, there's those real tech winners, we still see a contraction in 2020 for IT spend of minus 5 to 8%. And we talk a lot about the bifurcation in the market due to COVID accelerating some of these trends that were already in place, like digital transformation and SaaS and cloud. And then the work-from-home kicks in with other trends like video conferencing and the shift to security spend. And we think this is going to continue for years. However, because these stocks have run up so much, they're going to have very tough compares in 2021. So maybe time for a pause. Now let's take a look at the IT spending macroeconomics. This data is from a series of surveys that ETR conducted to try to better understand spending patterns due to COVID. Those yellow slices of the pies show the percent of customers that indicate that their budgets will be impacted by coronavirus. And you can see there's a steady increase from mid-March, which blend into April, and then you can see the June data. It goes from 63% saying yes, which is very high, to 78%, which is very, very high. And the bottom part of the chart shows the degree of that change. So 22% say no change in the latest survey, but you can see much more of a skew to the red declines on the left versus the green upticks on the right-hand side of the chart. Now take a look at how IT buyers are seeing the response to the pandemic. This chart shows what companies are doing as a result of COVID in another recent ETR survey. Now of course, it's no surprise, everybody's working from home. Nobody's traveling for business, not nobody, but most people aren't, we know that. But look at the increase in hiring freezes and freezing new IT deployments, and the sharp rise in layoffs. So IT is yet again being asked to do more with less. They're used to it. Well, we see this driving an acceleration to automation, and that's going to benefit, for instance, the RPA players, cloud providers, and modern software vendors. And it will also precipitate a tailwind for more aggressive AI implementations. And many other selected names are going to continue to do well, which we'll talk about in a second, but they're in the work-from-home, the cloud, the SaaS, and the modern data sectors. But the problem is those sectors are not large enough to offset the declines in the core businesses of the legacy players who have a much higher market share, so the overall IT spend declines. Now where it gets kind of interesting is the legacy companies, look, they all have growth businesses. They're making acquisitions, they're making other bets. IBM, for example, has its hybrid cloud business in Red Hat, Dell has VMware and it's got work-from-home solutions, Oracle has SaaS and cloud, Cisco has its security business, HPE, it's as a service initiative, and so forth. And again, these businesses are growing faster, but they are not large enough to offset the decline in core on-prem legacy and drive anything more than flat growth, overall, for these companies at best. And by the time they're large enough, we'll be into the next big thing, so the cycle continues. But these legacy companies are going to compete with the upstarts, and that's where it gets interesting. So let's get into some of the specific names that we've been talking about for over a year now and make some comments around their prospects. So what we want to do is let's start with one of our favorites: Snowflake. Now Snowflake, along with Asana, JFrog, Sumo Logic, and Unity, has a highly anticipated upcoming IPO. And this chart shows new adoptions in the database sector. And you can see that Snowflake, while down from the October 19th survey, is far outpacing its competitors, with the exception of Google, where BigQuery is doing very well. But you see Mongo and AWS remain strong, and I'm actually quite encouraged that it looks like Cloudera has righted the ship and you kind of saw that in their earnings recently. But my point is that Snowflake is a share gainer, and we think will likely continue to be one for a number of quarters and years if they can execute and compete with the big cloud players, and that's a topic that we've covered extensively in previous Breaking Analysis segments, and, as you know, we think Snowflake can compete. Now let's look at automation. This is another space that we've been talking about quite a bit, and we've largely focused on two leaders: UiPath and Automation Anywhere. But I have to say, I still like Blue Prism. I think they're well-positioned. And I especially like Pegasystems, which has, for years, been embarking on a broader automation agenda. What this chart shows is net score or spending velocity data for those customers who said they were decreasing spend in 2020. Those red bars that we showed earlier are the ones who are decreasing. And you can see both Automation Anywhere and UiPath show elevated levels within that base where spending is declining, so that's a real positive. Now Microsoft, as we've reported, is elbowing its way into the market with what is currently an inferior point product, but, you know, it's Microsoft, so we can't ignore that. And finally, let's have a look at the all-important security sector, which we've covered extensively and put out a report recently. So what this next chart does is cherry-picks of a few of our favorite names, and it shows the net score or spending momentum and the granularity for some of the leaders and emerging players. All of these players are in the green, as you can see in the upper right, and they all have decent presence in the dataset as indicated by the shared NS. Okta is at the top of the list with 58% net score. Palo Alto, they're a more mature player, but still, they have an elevated net score. CrowdStrike's net score dropped this quarter, which was a bit of a concern, but it's still high. And it followed by SailPoint and Zscaler, who are right there. The big three trends in this space right now are cloud security, identity access management, and endpoint security. Those are the tailwinds, and we think these trends have legs. Remember, net score in this survey is a forward-looking metric, so we'll come back and look at the next survey, which is running this month in the field from ETR. Now everyone on this chart has reported earnings, except Zscaler, which reports on September 9th, and all of these companies are doing well and exceeding expectations, but as I said earlier, next year's compares won't be so easy. Oh, and by the way, their stock prices, they all got killed this week as a result of the rug pull that we explained earlier. So we really feel this isn't a fundamental problem for these firms that we're talking about. It's more of a technical in the market. Now Automation Anywhere and UiPath, you really don't know because they're not public and I think they need to get their house in order so they can IPO, so we'll see when they make it to public markets. I don't think that's an if, that I think they will IPO, but the fact that they haven't filed yet says they're not ready. Now why wouldn't you IPO if you are ready in this market despite the recent pullbacks? Okay, let's summarize. So listen, all you new investors out there that think stock picking is easy, look, any fool can make money in a market that goes up every day, but trees don't grow to the moon and there are bulls and bears and pigs, and pigs get slaughtered. And I can throw a dozen other cliches at you, but I am excited that you're learning. You maybe have made a few bucks playing the options game. It's not as easy as you might think. And I'm hoping that you're not trading on margin. But look, I think there are going to be some buying opportunities ahead, there always are, be patient. It's very hard, actually impossible, to time markets, and I'm a big fan of dollar-cost averaging. And young people, if you make less than $137,000 a year, load up on your Roth, it's a government gift that I wish I could have tapped when I was a newbie. And as always, please do your homework. Okay, that's it for today. Remember, these episodes, they're all available as podcasts, wherever you listen, so please subscribe. I publish weekly on wikibon.com and siliconangle.com, so check that out, and please do comment on my LinkedIn posts. Don't forget, check out etr.plus for all the survey action. Get in touch on Twitter, I'm @dvellante, or email me at david.vellante@siliconangle.com. This is Dave Vellante for theCUBE Insights powered by ETR. Thanks for watching, everyone. Be well, and we'll see you next time. (gentle upbeat music)

>> Announcer: From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hello, welcome back to theCUBE's coverage, CUBE Virtual's coverage, CUBE digital coverage, of AWS Summit, virtual online, Amazon Summit's normally in face-to-face all around the world, it's happening now online, follow the sun. Of course, we want to bring theCUBE coverage like we do at the events digitally, and we've got a great guest that usually comes on face-to-face, he's coming on virtual, Sanjay Poonen, the chief operating officer of VMware. Sanjay great to see you, thanks for coming in virtually, you look great. >> Hey, John thank you very much. Always a pleasure to talk to you. This is the new reality. We both happen to live very close to each other, me in Los Altos, you in Palo Alto, but here we are in this new mode of communication. But the good news is I think you guys at theCUBE were pioneering a lot of digital innovation, the AI platform, so hopefully it's not much of an adjustment for you guys to move digital. >> It's not really a pivot, just move the boat, put the sails up and sail into the next generation, which brings up really the conversation that we're seeing, which is this digital challenge, the virtual world, it's virtualization, Sanjay, it sounds like VMware. Virtualization spawned so much opportunity, it created Amazon, some say, I'd say. Virtualizing our world, life is now integrated, we're immersed into each other, physical and digital, you got edge computing, you got cloud native, this is now a clear path to customers that recognize with the pandemic challenges of at-scale, that they have to operate their business, reset, reinvent, and grow coming out of this pandemic. This has been a big story that we've been talking about and a lot of smart managers looking at projects saying, I'm doubling down on that, and I'm going to move the resources from this, the people and budget, to this new reality. This is a tailwind for the folks who were prepared, the ones that have the experience, the ones that did the work. theCUBE, thanks for the props, but VMware as well. Your thoughts and reaction to this new reality, because it has to be cloud native, otherwise it doesn't work, your thoughts. >> Yeah, I think, John, you're right on. We were very fortunate as a company to invent the term virtualization for an x86 architecture and the category 20 years ago when Diane founded this great company. And I would say you're right, the public cloud is the instantiation of virtualization at its sort of scale format and we're excited about this Amazon partnership, we'll talk more about that. This new world of doing everything virtual has taken the same concepts to whole new levels. We are partnering very closely with companies like Zoom, because a good part of this is being able to deliver video experiences in there, we'll talk about that if needed. Cloud native security, we announced an acquisition today in container security that's very important because we're making big moves in security, security's become very important. I would just say, John, the first thing that was very important to us as we began to shelter in place was the health of our employees. Ironically, if I go back to, in January I was in Davos, in fact some of your other folks who were on the show earlier, Matt Garman, Andy, we were all there in January. The crisis already started in China, but it wasn't on the world scene as much of a topic of discussion. Little did we know, three, four weeks later, fast forward to February things were moving so quickly. I remember a Friday late in February where we were just about to go the next week to Las Vegas for our in-person sales kickoffs. Thousands of people, we were going to do, I think, five or 6,000 people in Las Vegas and then another 3,000 in Barcelona, and then finally in Singapore. And it had not yet been categorized a pandemic. It was still under this early form of some worriable virus. We decided for the health and safety of our employees to turn the entire event that was going to happen on Monday to something virtual, and I was so proud of the VMware team to just basically pivot just over the weekend. To change our entire event, we'd been thinking about video snippets. We have to become in this sort of virtual, digital age a little bit like TV producers like yourself, turn something that's going to be one day sitting in front of an audience to something that's a lot shorter, quicker snippets, so we began that, and the next thing we began doing over the next several weeks while the shelter in place order started, was systematically, first off, tell our employees, listen, focus on your health, but if you're healthy, turn your attention to serving your customers. And we began to see, which we'll talk about hopefully in the context of the discussion, parts of our portfolio experience a tremendous amount of interest for a COVID-centered world. Our digital workplace solutions, endpoint security, SD-WAN, and that trifecta began to be something that we began to see story after story of customers, hospitals, schools, governments, retailers, pharmacies telling us, thank you, VMware, for helping us when we needed those solutions to better enable our people on the front lines. And all VMware's role, John, was to be a digital first responder to the first responder, and that gave tremendous amount of motivation to all of our employees into it. >> Yeah, and I think that's a great point. One of the things we've been talking about, and you guys have been aligned with this, you mentioned some of those points, is that as we work at home, it points out that digital and technology is now part of lifestyle. So we used to talk about consumerization of IT, or immersion with augmented reality and virtual reality, and then talk about the edge of the network as an endpoint, we are at the edge of the network, we're at home, so this highlights some of the things that are in demand, workspaces, VPN provisioning, these new tools, that some cases we've been hearing people that no one ever thought of having a forecast of 100% VPN penetration. Okay, you did the AirWatch deal way back when you first started, these are now fruits of those labors. So I got to ask you, as managers of your customer base are out there thinking, okay, I got to double down on the right growth strategy for this post-pandemic world, the smart managers are going to look at the technologies enabled for business outcome, so I have to ask you, innovation strategies are one thing, saying it, putting it place, but now more than ever, putting them in action is the mandate that we're hearing from customers. Okay I need an innovation strategy, and I got to put it into action fast. What do you say to those customers? What is VMware doing with AWS, with cloud, to make those innovation strategies not only plausible but actionable? >> That's a great question, John. We focused our energy, before even COVID started, as we prepared for this year, going into sales kickoffs and our fiscal year, around five priorities. Number one was enabling the world to be multicloud, private cloud and public cloud, and clearly our partnership here with Amazon is the best example of that and they are our preferred cloud partner. Secondly, building modern apps with microservices and cloud native, what we call app modernization. Thirdly, which is a key part to the multicloud, is building out the entire network stack, data center networking, the firewalls, the load bouncing in SD-WAN, so I'd call that cloud network. Number four, the modernization of workplace with an additional workspace solution, Workspace ONE. And five, intrinsic security from all aspects of security, network, endpoint, and cloud. So those five priorities were what we began to think through, organize our portfolio, we call them solution pillars, and for any of your viewers who're interested, there's a five-minute version of the VMware story around those five pillars that you can watch on YouTube that I did, you just search for Sanjay Poonen and five-minute story. But then COVID hit us, and we said, okay we got to take these strategies now and make them more actionable. Exactly your question, right? So a subset of that portfolio of five began to become more actionable, because it's pointless going and talking about stuff and it's like, hey, listen, guys, I'm a house on fire, I don't care about the curtains and all the wonderful art. You got to help me through this crisis. So a subset of that portfolio became kind of what was those, think about now your laptop at home, or your endpoint at home. People wanted, on top of their Zoom call, or surrounding their Zoom call, a virtual desktop managed easily, so we began to see Workspace ONE getting a lot of interest from our customers, especially the VDI part of that portfolio. Secondly, that laptop at home needed to be secured. Traditional, old, legacy AV solutions that've worked, enter Carbon Black, so Workspace ONE plus Carbon Black, one and two. Third, that laptop at home needs network acceleration, because we're dialoguing and, John, we don't want any latency. Enter SD-WAN. So the trifecta of Workspace ONE, Carbon Black and VeloCloud, that began to see even more interest and we began to hone in our portfolio around those three. So that's an example of where you have a general strategy, but then you apply it to take action in the midst of a crisis, and then I say, listen, that trifecta, let's just go and present what we can do, we call that the business continuity or business resilience part of our portfolio. We began to start talking to customers, and saying, here's our business continuity solution, here's what we could do to help you, and we targeted hospitals, schools, governments, pharmacies, retailers, the ones who're on the front line of this and said again, that line I said earlier, we want to be a digital first responder to you, you are the real first responder. Right before this call I got off a CIO call with the CIO of a major hospital in the northeast area. What gives me great joy, John, is the fact that we are serving them. Their beds are busting at the seam, in serving patients-- >> And ransomware's a huge problem you guys-- >> We're serving them. >> And great stuff there, Sanjay, I was just on a call this morning with a bunch of folks in the security industry, thought leaders, was in DC, some generals were there, some real thought leaders, trying to figure out security policy around biosecurity, COVID-19, and this invisible disruption, and they were equating it to like the World Wars. Big inflection point, and one of the generals said, in those times of crisis you need alliances. So I got to ask you, COVID-19 is impactful, it's going to have serious impact on the critical nature of it, like you said, the house is on fire, don't worry about the curtains. Alliances matter more than ever when you need to come together. You guys have an ecosystem, Amazon's got an ecosystem, this is going to be a really important test to the alliances out there. How do you view that as you look forward? You need the alliances to be successful, to compete and win in the new world as this invisible enemy, if you will, or disruptor happens, what's your thoughts? >> Yeah, I'll answer in a second, just for your viewers, I sneezed, okay? I've been on your show dozens of time, John, but in your live show, if I sneezed, you'd hear the loud noise. The good news in digital is I can mute myself when a sneeze is about to happen, and we're able to continue the conversation, so these are some side benefits of the digital part of it. But coming to your question on alliance, super important. Ecosystems are how the world run around, united we stand, divided we fall. We have made ecosystems, I've always used this phrase internally at VMware, sort of like Isaac Newton, we see clearly because we stand on the shoulders of giants. So VMware is always able to be bigger of a company if we stand on the shoulders of bigger giants. Who were those companies 20 years ago when Diane started the company? It was the hardware economy of Intel and then HP and Dell, at the time IBM, now Lenovo, Cisco, NetApp, DMC. Today, the new hardware companies Amazon, Azure, Google, whoever have you, we were very, I think, prescient, if you would, to think about that and build a strategic partnership with Amazon three or four years ago. I've mentioned on your show before, Andy's a close friend, he was a classmate over at Harvard Business School, Pat, myself, Ragoo, really got close to Andy and Matt Garman and Mike Clayville and several members of their teams, Teresa Carlson, and began to build a partnership that I think is one of the most incredible success stories of a partnership. And Dell's kind of been a really strong partner with us on private cloud, having now Amazon with public cloud has been seminal, we do regular meetings and build deep integration of, VMware Cloud and AWS is not some announcement two or three years ago. It's deep engineering between, Bask's now in a different role, but in his previous role, that and people like Mark Lohmeyer in our team. And that deep engineering allows us to know and tell customers this simple statement, which both VMware and Amazon reps tell their customers today, if you have a workload running on vSphere, and you want to move that to Amazon, the best place, the preferred place for that is VMware Cloud and Amazon. If you try to refactor that onto a native VC 2, it's a waste of time and money. So to have the entire army of VMware and Amazon telling customers that statement is a huge step, because it tells customers, we have 70 million virtual machines running on-prem. If customers are looking to move those workloads to Amazon, the best place for that VMware Cloud and AWS, and we have some credible customer case studies. Freddie Mac was at VMworld last year. IHS Markit was at VMworld last year talking about it. Those are two examples and many more started it, so we would like to have every VMware and Amazon customer that's thinking about VMware to look at this partnership as one of the best in the industry and say very similar to what Andy I think said on stage at the time of this announcement, it doesn't have to be now a trade-off between public and private cloud, you can get the best of both worlds. That's what we're trying to do here-- >> That's a great point, I want to get your thoughts on leadership, as you look at COVID-19, one of our tracks we're going to be promoting heavily on theCUBE.net and our sites, around how to manage through this crisis. Andy Jassy was quoted on the fireside chat, which is coming up here in North America, but I saw it yesterday in New Zealand time as I time shifted over there, it's a two-sided door versus a one-sided door. That was kind of his theme is you got to be able to go both ways. And I want to get your thoughts, because you might know what you're doing in certain contexts, but if you don't know where you're going, you got to adjust your tactics and strategies to match that, and there's and old expression, if you don't know where you're going, every road will take you there, okay? And so a lot of enterprise CXOs or CEOs have to start thinking about where they want to go with their business, this is the growth strategy. Then you got to understand which roads to take. Your thoughts on this? Obviously we've been thinking it's cloud native, but if I'm a decision maker, I want to make sure I have an architecture that's going to carry me forward to the future. I need to make sure that I know where I'm going, so I know what road I'm on. Versus not knowing where I'm going, and every road looks good. So your thoughts on leadership and what people should be thinking around knowing what their destination is, and then the roads to take? >> John, I think it's the most important question in this time. Great leaders are born through crisis, whether it's Winston Churchill, Charles de Gaulle, Roosevelt, any of the leaders since then, in any country, Mahatma Gandhi in India, the country I grew up, Nelson Mandela, MLK, all of these folks were born through crisis, sometimes severe crisis, they had to go to jail, they were born through wars. I would say, listen, similar to the people you talked about, yeah, there's elements of this crisis that similar to a World War, I was talking to my 80 year old father, he's doing well. I asked him, "When was the world like this?" He said, "Second World War." I don't think this crisis is going to last six years. It might be six or 12 months, but I really don't think it'll be six years. Even the health care professionals aren't. So what do we learn through this crisis? It's a test of our leadership, and leaders are made or broken during this time. I would just give a few guides to leaders, this is something tha, Andy's a great leader, Pat, myself, we all are thinking through ways by which we can exercise this. Think of Sully Sullenberger who landed that plane on the Hudson. Did he know when he flew that airbus, US Airways airbus, that few flock of birds were going to get in his engine, and that he was going to have to land this plane in the Hudson? No, but he was making decisions quickly, and what did he exude to his co-pilot and to the rest of staff, calmness and confidence and appropriate communication. And I think it's really important as leaders, first off, that we communicate, communicate, communicate, communicate to our employees. First, our obligation is first to our employees, our family first, and then of course to our company employees, all 30,000 at VMware, and I'm sure similarly Andy does it to his, whatever, 60, 70,000 at AWS. And then you want to be able to communicate to them authentically and with clarity. People are going to be reading between the lines of everything you say, so one of the things I've sought to do with my team, all the front office functions report to me, is do half an hour Zoom video conferences, in the time zone that's convenient to them, so Japan, China, India, Europe, in their time zone, so it's 10 o'clock my time because it's convenient to Japan, and it's just 10 minutes of me speaking of what I'm seeing in the world, empathizing with them but listening to them for 20 minutes. That is communication. Authentically and with clarity, and then turn your attention to your employees, because we're going stir crazy sitting at home, I get it. And we've got to abide by the ordinances with whatever country we're in, turn your attention to your customers. I've gotten to be actually more productive during this time in having more customer conference calls, video conference calls on Zoom or whatever platform with them, and I'm looking at this now as an opportunity to engage in a new way. I have to be better prepared, like I said, these are shorter conversations, they're not as long. Good news I don't have to all over the place, that's better for my family, better for the carbon emission of the world, and also probably for my life long term. And then the third thing I would say is pick one area that you can learn and improve. For me, the last few years, two, three years, it's been security. I wanted to get the company into security, as you saw today we've announced mobile, so I helped architect the acquisition of Carbon Black, very similar to kind of the moves I've made six years ago around AirWatch, very key part to all of our focus to getting more into security, and I made it a personal goal that this year, at the start of the year, before COVID, I was going to meet 1,000 CISOs, in the Fortune 1000 Global 2000. Okay, guess what, COVID happens, and quite frankly that goal's gotten a little easier, because it's much easier for me to meet a lot more people on Zoom video conferences. I could probably do five, 10 per day, and if there's 200 working days in a day, I can easily get there, if I average about five per day, and sometimes I'm meeting them in groups of 10, 20. >> So maybe we can get you on theCUBE more often too, 'cause you have access to a video camera. >> That is my growth mindset for this year. So pick a growth mindset area. Satya Nadella puts this pretty well, "Move from being a know-it-all to a learn-it-all." And that's the mindset, great company. Andy has that same philosophy for Amazon, I think the great leaders right now who are running these cloud companies have that growth mindset. Pick an area that you can grow in this time, and you will find ways to do it. You'll be able to learn online and then be able to teach in some fashion. So I think communicate effectively, authentically, turn your attention to serving your customers, and then pick some growth area that you can learn yourself, and then we will come out of this crisis collectively, individuals and as partners, like VMware and Amazon, and then collectively as a society, I believe we'll come out stronger. >> Awesome great stuff, great insight there, Sanjay. Really appreciate you sharing that leadership. Back to the more of technical questions around leadership is cloud native. It's clear that there's going to be a line in the sand, if you will, there's going to be a right side of history, people are going to have to be on the right side of history, and I believe it's cloud native. You're starting to see this emersion. You guys have some news, you just announced today, you acquired a Kubernetes security startup, around Kubernetes, obviously Kubernetes needs security, it's one of those key new enablers, disruptive enablers out there. Cloud native is a path that is a destination opportunity for people to think about, why that acquisition? Why that company? Why is VMware making this move? >> Yeah, we felt as we talked about our plans in security, backing up to things I talked about in my last few appearances on your show at VMworld, when we announced Carbon Black, was we felt the security industry was broken because there was too many point benders, and we figured there'd be three to five control points, network, endpoint, cloud, where we could play a much more pronounced role at moving a lot of these point benders, I describe this as not having to force our customers to go to a doctor and say I've got to eat 5,000 tablets to get healthy, you make it part of your diet, you make it part of the infrastructure. So how do we do that? With network security, we're off to the races, we're doing a lot more data center networking, firewall, load bouncing, SD-WAN. Really, reality is we can eat into a lot of the point benders there that I've just been, and quite frankly what's happened to us very gratifying in the network security area, you've seen the last few months, some firewall vendors are buying SD-WAN players, kind of following our strategy. That's a tremendous validation of the fact that the network security space is being disrupted. Okay, move to endpoint security, part of the reason we acquired Carbon Black was to unify the client side, Workspace ONE and Carbon Black should come together, and we're well under way in doing that, make Carbon Black agentless on the server side with vSphere, we're well on the way to that, you'll see that very soon. By the way both those things are something that the traditional endpoint players can't do. And then bring out new forms of workload. Servers that are virtualized by VMware is just one form of work. What are other workloads? AWS, the public clouds, and containers. Container's just another workload. And we've been looking at container security for a long time. What we didn't want to do was buy another static analysis player, another platform and replatform it. We felt that we could get great technology, we have incredible grandeur on container cell. It's sort of Red Hat and us, they're the only two companies who are doing Kubernetes scales. It's not any of these endpoint players who understand containers. So Kubernetes, VMware's got an incredible brand and relevance and knowledge there. The networking part of it, service mesh, which is kind of a key component also to this. We've been working with Google and others like Istio in service mesh, we got a lot of IP there that the traditional endpoint players, Symantec, McAfee, Trend, CrowdStrike, don't know either Kubernetes or service mesh well. We add now container security into this, we really distinguish ourselves further from the traditional endpoint players with bringing together, not just the endpoint platform that can do containers, but also Kubernetes service mesh. So why is that important? As people think about their future in containers, they'll want to do this at the runtime level, not at the static level. They'll want to do it at build time And they'll want to have it integrated with some of their networking capabilities like service mesh. Who better to think about that IP and that evolution than VMware, and now we bring, I think it's 12 to 14 people we're bringing in from this acquisition. Several of them in Israel, some of them here in Palo Alto, and they will build that platform into the tech that VMware has onto the Carbon Black cloud and we will deliver that this year. It's not going to be years from now. >> Did you guys talk about the-- >> Our capability, and then we can bring the best of Carbon Black, with Tanzu, service mesh, and even future innovation, like, for example, there's a big movement going around, this thing call open policy agent OPA, which is an open source effort around policy management. You should expect us to embrace that, there could be aspects of OPA that also play into the future of this container security movement, so I think this is a really great move for Patrick and his team, I'm very excited. Patrick is the CEO of Carbon Black and the leader of that security business unit, and he came to me and said, "Listen, one of the areas "we need to move in is container security "because it's the number one request I'm hearing "from our CESOs and customers." I said, "Go ahead Patrick. "Find out who are the best player you could acquire, "but you have to triangulate that strategy "with the Tanzu team and the NSX team, "and when you have a unified strategy what we should go, "we'll go an make the right acquisition." And I'm proud of what he was able to announce today. >> And I noticed you guys on the release didn't talk about the acquisition amount. Was it not material, was it a small amount? >> No, we don't disclose small, it's a tuck-in acquisition. You should think of this as really bringing us some tech and some talent, and being able to build that into the core of the platform of Carbon Black. Carbon Black was the real big move we made. Usually what we do, you saw this with AirWatch, right, anchor on a fairly big move. We paid I think 2.1 billion for Carbon Black, and then build and build and build on top of that, partner very heavily, we didn't talk about that. If there's time we could talk about it. We announced today a security alliance with top SIEM players, in what's called a sock alliance. Who's announced in there? Splunk, IBM QRadar, Google Chronicle, Sumo Logic, and Exabeam, five of the biggest SIEM players are embracing VMware in endpoint security, saying, Carbon Black is who we want to work with. Nobody else has that type of partnership, so build, partner, and then buy. But buy is always very carefully thought through, we're not one of these companies like CA of the past that just bought every company and then it becomes a graveyard of dead acquisition. Our view is we're very disciplined about how we think about acquisition. Acquisitions for us are often the last resort, because we'd prefer to build and partner. But sometimes for time-to-market reasons, we acquire, and when we acquire, it's thoughtful, it's well-organized within VMware, and we take care of our people, 'cause we want, I mean listen, why do acquisitions fail? Because the good people leave. So we're excited about this team, the team in Israel, and the team in Palo Alto, they come from Octarine. We're going to integrate them rapidly into the platform, and this is a good evidence of VMware investing more in security, and our Q3 earnings pulled, John, I said, sorry, we said that the security business was a billion dollar business at VMware already, primarily from network, but some from endpoint. This is evidence of us putting more fuel behind that fire. It's only been six, seven months and Patrick's made his first acquisition inside Carbon Black, so you're going to see us investing more in security, it's an important priority for the company, and I expect us to be a very prominent player in these three pillars, network security, endpoint security, endpoint is both client and the workload, and cloud. Network, endpoint, cloud, they are the three areas where we think there's lots of room for innovation in security. >> Well, we'll be watching, we'll be reporting and analyzing the moves. Great playbook, by the way. Love that organic partnering and then key acquisitions which you build around, it's a great playbook, I think it's very relevant for this time. The most important question I have to ask you, Sanjay, and this is a personal question, because you're the leader of VMware, I noticed that, we all know you're into music, you've been putting music online, kind of a virtual band. You've also hired a CUBE alumni, Victoria Verango from McAfee who also puts up music, you've got some musicians, but you kind of know how to do the digital moves there, so the question is, will the music at VMworld this year be virtual? >> Oh, man. Victoria is actually an even better musician than me. I'm excited about his marketing gifts, but I'm also excited to watch him. But yeah, you've heard him sing, he's got a voice that's somewhat similar to Sting, so we, just for fun, in our Diwali, which is an Indian celebration last year, Tom Corn, myself, and a wonderful lady named Divya, who's got a beautiful voice, had sung a song, which was off the soundtrack of the Bollywood movie, "Secret Superstar," and we just for fun decided to record that in our three separate homes, and put that out on YouTube. You can listen, it's just a two or three-minute run, and it kind of went a little bit viral. And I was thinking to myself, hey, if this is one way by which we can let the VMware community know that, hey, you know what, art conquers COVID-19, you can do music even socially distant, and bring out the spirit of VMware, which is community. So we might build on that idea, Victoria and I were talking about that last night and saying, hey, maybe we do a virtual music kind of concert of maybe 10 or 15 or 20 voices in the various different countries. Record piece of a song and music and put it out there. I think these are just ways by which we're having fun in a virtual setting where people get to see a different side of VMware where, and the intent here, we're all amateurs, John, we're not like great. There are going to be mistakes in this music. If you listen to that audio, it sounds a little tinny, 'cause we're recording it off our iPhone and our iPad microphone. But we'll do the best we can, the point is just to show the human spirit and to show that we care, and at the end of the day, see, the COVID-19 virus has no prejudice on color of skin, or nationality, or ethnicity. It's affecting the whole world. We all went into the tunnel at different times, we will come out of this tunnel together and we will be a stronger human fabric when we're done with this, We shall absolutely overcome. >> Sanjay, give us a quick update to end the segment on your thoughts around VMworld. It's one of the biggest events, we look forward to it. It's the only even left standing that theCUBE's been to every year of theCUBE's existence, we're looking forward to being part of theCUBE virtual. It's been announced it's virtual. What are some of the thinking going on at the highest levels within the VMware community around how you're going to handle VMworld this year? >> Listen, when we began to think about it, we had to obviously give our customers and folks enough notice, so we didn't want to just spring that sometime this summer. So we decided to think through it carefully. I asked Robin, our CMO, to talk to many of the other CMOs in the industry. Good news is all of these are friends of ours, Amazon, Microsoft, Google, Salesforce, Adobe, and even some smaller companies, IBM did theirs. And if they were in the first half of the year, they had to go virtual 'cause we're sheltered in place, and IBM did theirs, Okta did theirs, and we began to watch how they were doing this. We're kind of in the second half, because we were August, September, and we just sensed a lot of hesitancy from our customers that wanted to get on a plane to come here, and even if we got just 500, 1,000, a few thousand, it wasn't going to be the same and there would always be that sort of, even if we were getting back to that, some worry, so we figured we'd do something that might be semi-digital, and we may have some people that roam, but the bulk of it is going to be digital, and we changed the dates to be a little later. I think it's September 20th to 29th. Right now it's all public now, we announced that, and we're going to make it a great program. In some senses like we're becoming TV producer. I told our team we got to be like Disney or ESPN or whoever your favorite show is, YouTube, and produce a really good several-hour program that has got a different way in which digital content is provided, smaller snippets, very interesting speakers, great brand names, make the content clear, crisp and compelling. And if we do that, this will be, I don't know, maybe it's the new norm for some period of time, or it might be forever, I don't know. >> John: We're all learning. >> In the past we had huge conferences that were busting 50, 70, 100,000 and then after the dot-com era, those all shrunk, they're like smaller conferences, and now with advent of companies like Amazon and Salesforce, we have huge events that, like VMworld, are big events. We may move to a environment that's a lot more digital, I don't know what the future of in-presence physical conferences are, but we, like others, we're working with AWS in terms of their future with Reinvent, what Microsoft's doing with Ignite, what Google's doing with Next, what Salesforce's going to do with Dreamforce, all those four companies are good partners of ours. We'll study theirs, we'll work together as a community, the CMOs of all those companies, and we'll come together with something that's a very good digital experience for our customers, that's really what counts. Today I did a webinar with a partner. Typically when we did a briefing in our briefing center, 20 people came. There're 100 people attending this, I got a lot more participation in this QBR that I did with this SI partner, one of the top SIs in the world, in an online session with them, than would I have gotten if they'd all come to Palo Alto. That's goodness. Should we take the best of that world and some physical presence? Maybe in the future, we'll see how it goes. >> Content quality. You know, you know content. Content quality drives everything online, good engagement creates community, that's a nice flywheel. I think you guys will figure it out, you've got a lot of great minds there, and of course, theCUBE virtual will be helping out as we can, and we're rethinking things too-- >> We count on that, John-- >> We're going to be open minded to new ideas, and, hey, whatever's the best content we can deliver, whether it's CUBE, or with you guys, or whoever, we're looking forward to it. Sanjay, thanks for spending the time on this CUBE Keynote coverage of AWS Summit. Since it's digital we can do longer programs, we can do more diverse content. We got great customer practitioners coming up, talking about their journey, their innovation strategies. Sanjay Poonen, COO of VMware, thank you for taking your precious time out of your day today. >> Thank you, John, always a pleasure. >> Thank you. Okay, more CUBE, virtual CUBE digital coverage of AWS Summit 2020, theCUBE.net is we're streaming, and of course, tons of videos on innovation, DevOps, and more, scaling cloud, scaling on-premise hybrid cloud, and more. We got great interviews coming up, stay with us our all-day coverage. I'm John Furrier, thanks for watching. (upbeat music)