>> Announcer: theCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (upbeat music) >> Hi everybody. Welcome back to Barcelona. We're here at the Fira Live, theCUBE's ongoing coverage of day two of MWC 23. Back in 2021 was my first Mobile World Congress. And you know what? It was actually quite an experience because there was nobody there. I talked to my friend, who's now my co-host, Chris Lewis about what to expect. He said, Dave, I don't think a lot of people are going to be there, but Danielle Royston is here and she's the CEO of Totoge. And that year when Erickson tapped out of its space she took out 60,000 square feet and built out Cloud City. If it weren't for Cloud City, there would've been no Mobile World Congress in June and July of 2021. DR is back. Great to see you. Thanks for coming on. >> It's great to see you. >> Chris. Awesome to see you. >> Yeah, Chris. Yep. >> Good to be back. Yep. >> You guys remember the narrative back then. There was this lady running around this crazy lady that I met at at Google Cloud next saying >> Yeah. Yeah. >> the cloud's going to take over Telco. And everybody's like, well, this lady's nuts. The cloud's been leaning in, you know? >> Yeah. >> So what do you think, I mean, what's changed since since you first caused all those ripples? >> I mean, I have to say that I think that I caused a lot of change in the industry. I was talking to leaders over at AWS yesterday and they were like, we've never seen someone push like you have and change so much in a short period of time. And Telco moves slow. It's known for that. And they're like, you are pushing buttons and you're getting people to change and thank you and keep going. And so it's been great. It's awesome. >> Yeah. I mean, it was interesting, Chris, we heard on the keynotes we had Microsoft, Satya came in, Thomas Curian came in. There was no AWS. And now I asked CMO of GSMA about that. She goes, hey, we got a great relationship with it, AWS. >> Danielle: Yeah. >> But why do you think they weren't here? >> Well, they, I mean, they are here. >> Mean, not here. Why do you think they weren't profiled? >> They weren't on the keynote stage. >> But, you know, at AWS, a lot of the times they want to be the main thing. They want to be the main part of the show. They don't like sharing the limelight. I think they just didn't want be on the stage with the Google CLoud guys and the these other guys, what they're doing they're building out, they're doing so much stuff. As Danielle said, with Telcos change in the ecosystem which is what's happening with cloud. Cloud's making the Telcos think about what the next move is, how they fit in with the way other people do business. Right? So Telcos never used to have to listen to anybody. They only listened to themselves and they dictated the way things were done. They're very successful and made a lot of money but they're now having to open up they're having to leverage the cloud they're having to leverage the services that (indistinct words) and people out provide and they're changing the way they work. >> So, okay in 2021, we talked a lot about the cloud as a potential disruptor, and your whole premise was, look you got to lean into the cloud, or you're screwed. >> Danielle: Yeah. >> But the flip side of that is, if they lean into the cloud too much, they might be screwed. >> Danielle: Yeah. >> So what's that equilibrium? Have they been able to find it? Are you working with just the disruptors or how's that? >> No I think they're finding it right. So my talk at MWC 21 was all about the cloud is a double-edged sword, right? There's two sides to it, and you definitely need to proceed through it with caution, but also I don't know that you have a choice, right? I mean, the multicloud, you know is there another industry that spends more on CapEx than Telco? >> No. >> Right. The hyperscalers are doing it right. They spend, you know, easily approaching over a $100 billion in CapEx that rivals this industry. And so when you have a player like that an industry driving, you know and investing so much Telco, you're always complaining how everyone's riding your coattails. This is the opportunity to write someone else's coattails. So jump on, right? I think you don't have a choice especially if other Telco competitors are using hyperscalers and you don't, they're going to be left behind. >> So you advise these companies all the time, but >> I mean, the issue is they're all they're all using all the hyperscalers, right? So they're the multi, the multiple relationships. And as Danielle said, the multi-layer of relationship they're using the hyperscalers to change their own internal operational environments to become more IT-centric to move to that software centric Telco. And they're also then with the hyperscalers going to market in different ways sometimes with them, sometimes competing with them. What what it means from an analyst point of view is you're suddenly changing the dynamic of a market where we used to have nicely well defined markets previously. Now they're, everyone's in it together, you know, it's great. And, and it's making people change the way they think about services. What I, what I really hope it changes more than anything else is the way the customers at the end of the, at the end of the supply, the value chain think this is what we can get hold of this stuff. Now we can go into the network through the cloud and we can get those APIs. We can draw on the mechanisms we need to to run our personal lives, to run our business lives. And frankly, society as a whole. It's really exciting. >> Then your premise is basically you were saying they should ride on the top over the top of the cloud vendor. >> Yeah. Right? >> No. Okay. But don't they lose the, all the data if they do that? >> I don't know. I mean, I think the hyperscalers are not going to take their data, right? I mean, that would be a really really bad business move if Google Cloud and Azure and and AWS start to take over that, that data. >> But they can't take it. >> They can't. >> From regulate, from sovereignty and regulation. >> They can't because of regulation, but also just like business, right? If they started taking their data and like no enterprises would use them. So I think, I think the data is safe. I think you, obviously every country is different. You got to understand the different rules and regulations for data privacy and, and how you keep it. But I think as we look at the long term, right and we always talk about 10 and 20 years there's going to be a hyperscaler region in every country right? And there will be a way for every Telco to use it. I think their data will be safe. And I think it just, you're going to be able to stand on on the shoulders of someone else for once and use the building blocks of software that these guys provide to make better experiences for subscribers. >> You guys got to explain this to me because when I say data I'm not talking about, you know, personal information. I'm talking about all the telemetry, you know, all the all the, you know the plumbing. >> Danielle: Yeah. >> Data, which is- >> It will increasingly be shared because you need to share it in order to deliver the services in the streamline efficient way that needs to be deliver. >> Did I hear the CEO of Ericsson Wright where basically he said, we're going to charge developers for access to that data through APIs. >> What the Ericsson have done, obviously with the Vage acquisition is they want to get into APIs. So the idea is you're exposing features, quality policy on demand type features for example, or even pulling we still use that a lot of SMS, right? So pulling those out using those APIs. So it will be charged in some way. Whether- >> Man: Like Twitter's charging me for APIs, now I API calls, you >> Know what it is? I think it's Twilio. >> Man: Oh, okay. >> Right. >> Man: No, no, that's sure. >> There's no reason why telcos couldn't provide a Twilio like service itself. >> It's a horizontal play though right? >> Danielle: Correct because developers need to be charged by the API. >> But doesn't there need to be an industry standard to do that as- >> Well. I think that's what they just announced. >> Industry standard. >> Danielle: I think they just announced that. Yeah. Right now I haven't looked at that API set, right? >> There's like eight of them. >> There's eight of them. Twilio has, it's a start you got to start somewhere Dave. (crosstalk) >> And there's all, the TM forum is all the other standard >> Right? Eight is better than zero- >> Right? >> Haven't got plenty. >> I mean for an industry that didn't really understand APIs as a feature, as a product as a service, right? For Mats Granryd, the deputy general of GSMA to stand on the keynote stage and say we partnered and we're unveiling, right. Pay by the use APIs. I was for it. I was like, that is insane. >> I liked his keynote actually, because I thought he was going to talk about how many attendees and how much economic benefiting >> Danielle: We're super diverse. >> He said, I would usually talk about that and you know greening in the network by what you did talk about a little bit. But, but that's, that surprised me. >> Yeah. >> But I've seen in the enterprise this is not my space as, you know, you guys don't live this but I've seen Oracle try to get developers. IBM had to pay $35 billion trying to get for Red Hat to get developers, right? EMC used to have a thing called EMC code, failed. >> I mean they got to do something, right? So 4G they didn't really make the business case the ROI on the investment in the network. Here we are with 5G, same discussion is having where's the use case? How are we going to monetize and make the ROI on this massive investment? And now they're starting to talk about 6G. Same fricking problem is going to happen again. And so I think they need to start experimenting with new ideas. I don't know if it's going to work. I don't know if this new a API network gateway theme that Mats talked about yesterday will work. But they need to start unbundling that unlimited plan. They need to start charging people who are using the network more, more money. Those who are using it less, less. They need to figure this out. This is a crisis for them. >> Yeah our own CEO, I mean she basically said, Hey, I'm for net neutrality, but I want to be able to charge the people that are using it more and more >> To make a return on, on a capital. >> I mean it costs billions of dollars to build these networks, right? And they're valuable. We use them and we talked about this in Cloud City 21, right? The ability to start building better metaverses. And I know that's a buzzword and everyone hates it, but it's true. Like we're working from home. We need- there's got to be a better experience in Zoom in 2D, right? And you need a great network for that metaverse to be awesome. >> You do. But Danielle, you don't need cellular for doing that, do you? So the fixed network is as important. >> Sure. >> And we're at mobile worlds. But actually what we beginning to hear and Crystal Bren did say this exactly, it's about the comp the access is sort of irrelevant. Fixed is better because it's more the cost the return on investment is better from fiber. Mobile we're going to change every so many years because we're a new generation. But we need to get the mechanism in place to deliver that. I actually don't agree that we should everyone should pay differently for what they use. It's a universal service. We need it as individuals. We need to make it sustainable for every user. Let's just not go for the biggest user. It's not, it's not the way to build it. It won't work if you do that you'll crash the system if you do that. And, and the other thing which I disagree on it's not about standing on the shoulders and benefiting from what- It's about cooperating across all levels. The hyperscalers want to work with the telcos as much as the telcos want to work with the hyperscalers. There's a lot of synergy there. There's a lot of ways they can work together. It's not one or the other. >> But I think you're saying let the cloud guys do the heavy lifting and I'm - >> Yeah. >> Not at all. >> And so you don't think so because I feel like the telcos are really good at pipes. They've always been good at pipes. They're engineers. >> Danielle: Yeah. >> Are they hanging on to the to the connectivity or should they let that go and well and go toward the developer. >> I mean AWS had two announcements on the 21st a week before MWC. And one was that telco network builder. This is literally being able to deploy a network capability at AWS with keystrokes. >> As a managed service. >> Danielle: Correct. >> Yeah. >> And so I don't know how the telco world I felt the shock waves, right? I was like, whoa, that seems really big. Because they're taking something that previously was like bread and butter. This is what differentiates each telco and now they've standardized it and made it super easy so anyone can do it. Now do I think the five nines of super crazy hardcore network criteria will be built on AWS this way? Probably not, but no >> It's not, it's not end twin. So you can't, no. >> Right. But private networks could be built with this pretty easily, right? And so telcos that don't have as much funding, right. Smaller, more experiments. I think it's going to change the way we think about building networks in telcos >> And those smaller telcos I think are going to be more developer friendly. >> Danielle: Yeah. >> They're going to have business models that invite those developers in. And that's, it's the disruption's going to come from the ISVs and the workloads that are on top of that. >> Well certainly what Dish is trying to do, right? Dish is trying to build a- they launched it reinvent a developer experience. >> Dave: Yeah. >> Right. Built around their network and you know, again I don't know, they were not part of this group that designed these eight APIs but I'm sure they're looking with great intent on what does this mean for them. They'll probably adopt them because they want people to consume the network as APIs. That's their whole thing that Mark Roanne is trying to do. >> Okay, and then they're doing open ran. But is it- they're not really cons- They're not as concerned as Rakuten with the reliability and is that the right play? >> In this discussion? Open RAN is not an issue. It really is irrelevant. It's relevant for the longer term future of the industry by dis aggregating and being able to share, especially ran sharing, for example, in the short term in rural environments. But we'll see some of that happening and it will change, but it will also influence the way the other, the existing ran providers build their services and offer their value. Look you got to remember in the relationship between the equipment providers and the telcos are very dramatically. Whether it's Ericson, NOKIA, Samsung, Huawei, whoever. So those relations really, and the managed services element to that depends on what skills people have in-house within the telco and what service they're trying to deliver. So there's never one size fits all in this industry. >> You're very balanced in your analysis and I appreciate that. >> I try to be. >> But I am not. (chuckles) >> So when Dr went off, this is my question. When Dr went off a couple years ago on the cloud's going to take over the world, you were skeptical. You gave a approach. Have you? >> I still am. >> Have you moderated your thoughts on that or- >> I believe the telecom industry is is a very strong industry. It's my industry of course I love it. But the relationship it is developing much different relationships with the ecosystem players around it. You mentioned developers, you mentioned the cloud players the equipment guys are changing there's so many moving parts to build the telco of the future that every country needs a very strong telco environment to be able to support the site as a whole. People individuals so- >> Well I think two years ago we were talking about should they or shouldn't they, and now it's an inevitability. >> I don't think we were Danielle. >> All using the hyperscalers. >> We were always going to need to transform the telcos from the conservative environments in which they developed. And they've had control of everything in order to reduce if they get no extra revenue at all, reducing the cost they've got to go on a cloud migration path to do that. >> Amenable. >> Has it been harder than you thought? >> It's been easier than I thought. >> You think it's gone faster than >> It's gone way faster than I thought. I mean pushing on this flywheel I thought for sure it would take five to 10 years it is moving. I mean the maths comp thing the AWS announcements last week they're putting in hyperscalers in Saudi Arabia which is probably one of the most sort of data private places in the world. It's happening really fast. >> What Azure's doing? >> I feel like I can't even go to sleep. Because I got to keep up with it. It's crazy. >> Guys. >> This is awesome. >> So awesome having you back on. >> Yeah. >> Chris, thanks for co-hosting. Appreciate you stay here. >> Yep. >> Danielle, amazing. We'll see you. >> See you soon. >> A lot of action here. We're going to come out >> Great. >> Check out your venue. >> Yeah the Togi buses that are outside. >> The big buses. You got a great setup there. We're going to see you on Wednesday. Thanks again. >> Awesome. Thanks. >> All right. Keep it right there. We'll be back to wrap up day two from MWC 23 on theCUBE. (upbeat music)

>> theCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (ambient music) >> Lisa: Hey everyone, welcome back to Barcelona, Spain. It's theCUBE Live at MWC 23. Lisa Martin with Dave Vellante. This is day two of four days of cube coverage but you know that, because you've already been watching yesterday and today. We're going to have a great conversation next with EnterpriseWeb and Red Hat. We've had great conversations the last day and a half about the Telco industry, the challenges, the opportunities. We're going to unpack that from this lens. Please welcome Dave Duggal, founder and CEO of EnterpriseWeb and Azhar Sayeed is here, Senior Director Solution Architecture at Red Hat. >> Guys, it's great to have you on the program. >> Yes. >> Thank you Lisa, >> Great being here with you. >> Dave let's go ahead and start with you. Give the audience an overview of EnterpriseWeb. What kind of business is it? What's the business model? What do you guys do? >> Okay so, EnterpriseWeb is reinventing middleware, right? So the historic middleware was to build vertically integrated stacks, right? And those stacks are now such becoming the rate limiters for interoperability for so the end-to-end solutions that everybody's looking for, right? Red Hat's talking about the unified platform. You guys are talking about Supercloud, EnterpriseWeb addresses that we've built middleware based on serverless architecture, so lightweight, low latency, high performance middleware. And we're working with the world's biggest, we sell through channels and we work through partners like Red Hat Intel, Fortnet, Keysight, Tech Mahindra. So working with some of the biggest players that have recognized the value of our innovation, to deliver transformation to the Telecom industry. >> So what are you guys doing together? Is this, is this an OpenShift play? >> Is it? >> Yeah. >> Yeah, so we've got two projects right her on the floor at MWC throughout the various partners, where EnterpriseWeb is actually providing an application layer, sorry application middleware over Red Hat's, OpenShift and we're essentially generating operators so Red Hat operators, so that all our vendors, and, sorry vendors that we onboard into our catalog can be deployed easily through the OpenShift platform. And we allow those, those vendors to be flexibly composed into network services. So the real challenge for operators historically is that they, they have challenges onboarding the vendors. It takes a long time. Each one of them is a snowflake. They, you know, even though there's standards they don't all observe or follow the same standards. So we make it easier using models, right? For, in a model driven process to on boards or streamline that onboarding process, compose functions into services deploy those services seamlessly through Red Hat's OpenShift, and then manage the, the lifecycle, like the quality of service and the SLAs for those services. >> So Red Hat obviously has pretty prominent Telco business has for a while. Red Hat OpenStack actually is is pretty popular within the Telco business. People thought, "Oh, OpenStack, that's dead." Actually, no, it's actually doing quite well. We see it all over the place where for whatever reason people want to build their own cloud. And, and so, so what's happening in the industry because you have the traditional Telcos we heard in the keynotes that kind of typical narrative about, you know, we can't let the over the top vendors do this again. We're, we're going to be Apifi everything, we're going to monetize this time around, not just with connectivity but the, but the fact is they really don't have a developer community. >> Yes. >> Yet anyway. >> Then you have these disruptors over here that are saying "Yeah, we're going to enable ISVs." How do you see it? What's the landscape look like? Help us understand, you know, what the horses on the track are doing. >> Sure. I think what has happened, Dave, is that the conversation has moved a little bit from where they were just looking at IS infrastructure service with virtual machines and OpenStack, as you mentioned, to how do we move up the value chain and look at different applications. And therein comes the rub, right? You have applications with different requirements, IT network that have various different requirements that are there. So as you start to build those cloud platform, as you start to modernize those set of applications, you then start to look at microservices and how you build them. You need the ability to orchestrate them. So some of those problem statements have moved from not just refactoring those applications, but actually now to how do you reliably deploy, manage in a multicloud multi cluster way. So this conversation around Supercloud or this conversation around multicloud is very >> You could say Supercloud. That's okay >> (Dave Duggal and Azhar laughs) >> It's absolutely very real though. The reason why it's very real is, if you look at transformations around Telco, there are two things that are happening. One, Telco IT, they're looking at partnerships with hybrid cloud, I mean with public cloud players to build a hybrid environment. They're also building their own Telco Cloud environment for their network functions. Now, in both of those spaces, they end up operating two to three different environments themselves. Now how do you create a level of abstraction across those? How do you manage that particular infrastructure? And then how do you orchestrate all of those different workloads? Those are the type of problems that they're actually beginning to solve. So they've moved on from really just putting that virtualizing their application, putting it on OpenStack to now really seriously looking at "How do I build a service?" "How do I leverage the catalog that's available both in my private and public and build an overall service process?" >> And by the way what you just described as hybrid cloud and multicloud is, you know Supercloud is what multicloud should have been. And what, what it originally became is "I run on this cloud and I run on this cloud" and "I run on this cloud and I have a hybrid." And, and Supercloud is meant to create a common experience across those clouds. >> Dave Duggal: Right? >> Thanks to, you know, Supercloud middleware. >> Yeah. >> Right? And, and so that's what you guys do. >> Yeah, exactly. Exactly. Dave, I mean, even the name EnterpriseWeb, you know we started from looking from the application layer down. If you look at it, the last 10 years we've looked from the infrastructure up, right? And now everybody's looking northbound saying "You know what, actually, if I look from the infrastructure up the only thing I'll ever build is silos, right?" And those silos get in the way of the interoperability and the agility the businesses want. So we take the perspective as high level abstractions, common tools, so that if I'm a CXO, I can look down on my environments, right? When I'm really not, I honestly, if I'm an, if I'm a CEO I don't really care or CXO, I don't really care so much about my infrastructure to be honest. I care about my applications and their behavior. I care about my SLAs and my quality of service, right? Those are the things I care about. So I really want an EnterpriseWeb, right? Something that helps me connect all my distributed applications all across all of the environments. So I can have one place a consistency layer that speaks a common language. We know that there's a lot of heterogeneity down all those layers and a lot of complexity down those layers. But the business doesn't care. They don't want to care, right? They want to actually take their applications deploy them where they're the most performant where they're getting the best cost, right? The lowest and maybe sustainability concerns, all those. They want to address those problems, meet their SLAs meet their quality service. And you know what, if it's running on Amazon, great. If it's running on Google Cloud platform, great. If it, you know, we're doing one project right here that we're demonstrating here is with with Amazon Tech Mahindra and OpenShift, where we took a disaggregated 5G core, right? So this is like sort of latest telecom, you know net networking software, right? We're deploying pulling elements of that network across core, across Amazon EKS, OpenShift on Red Hat ROSA, as well as just OpenShift for cloud. And we, through a single pane of deployment and management, we deployed the elements of the 5G core across them and then connected them in an end-to-end process. That's Telco Supercloud. >> Dave Vellante: So that's an O-RAN deployment. >> Yeah that's >> So, the big advantage of that, pardon me, Dave but the big advantage of that is the customer really doesn't care where the components are being served from for them. It's a 5G capability. It happens to sit in different locations. And that's, it's, it's about how do you abstract and how do you manage all those different workloads in a cohesive way? And that's exactly what EnterpriseWeb is bringing to the table. And what we do is we abstract the underlying infrastructure which is the cloud layer. So if, because AWS operating environment is different then private cloud operating environment then Azure environment, you have the networking is set up is different in each one of them. If there is a way you can abstract all of that and present it in a common operating model it becomes a lot easier than for anybody to be able to consume. >> And what a lot of customers tell me is the way they deal with multicloud complexity is they go with mono cloud, right? And so they'll lose out on some of the best services >> Absolutely >> If best of, so that's not >> that's not ideal, but at the end of the day, agree, developers don't want to muck with all the plumbing >> Dave Duggal: Yep. >> They want to write code. >> Azhar: Correct. >> So like I come back to are the traditional Telcos leaning in on a way that they're going to enable ISVs and developers to write on top of those platforms? Or are there sort of new entrance and disruptors? And I know, I know the answer is both >> Dave Duggal: Yep. >> but I feel as though the Telcos still haven't, traditional Telcos haven't tuned in to that developer affinity, but you guys sell to them. >> What, what are you seeing? >> Yeah, so >> What we have seen is there are Telcos fall into several categories there. If you look at the most mature ones, you know they are very eager to move up the value chain. There are some smaller very nimble ones that have actually doing, they're actually doing something really interesting. For example, they've provided sandbox environments to developers to say "Go develop your applications to the sandbox environment." We'll use that to build an net service with you. I can give you some interesting examples across the globe that, where that is happening, right? In AsiaPac, particularly in Australia, ANZ region. There are a couple of providers who have who have done this, but in, in, in a very interesting way. But the challenges to them, why it's not completely open or public yet is primarily because they haven't figured out how to exactly monetize that. And, and that's the reason why. So in the absence of that, what will happen is they they have to rely on the ISV ecosystem to be able to build those capabilities which they can then bring it on as part of the catalog. But in Latin America, I was talking to one of the providers and they said, "Well look we have a public cloud, we have our own public cloud, right?" What we want do is use that to offer localized services not just bring everything in from the top >> But, but we heard from Ericson's CEO they're basically going to monetize it by what I call "gouge", the developers >> (Azhar laughs) >> access to the network telemetry as opposed to saying, "Hey, here's an open platform development on top of it and it will maybe create something like an app store and we'll take a piece of the action." >> So ours, >> to be is a better model. >> Yeah. So that's perfect. Our second project that we're showing here is with Intel, right? So Intel came to us cause they are a reputation for doing advanced automation solutions. They gave us carte blanche in their labs. So this is Intel Network Builders they said pick your partners. And we went with the Red Hat, Fort Net, Keysite this company KX doing AIML. But to address your DevX, here's Intel explicitly wants to get closer to the developers by exposing their APIs, open APIs over their infrastructure. Just like Red Hat has APIs, right? And so they can expose them northbound to developers so developers can leverage and tune their applications, right? But the challenge there is what Intel is doing at the low level network infrastructure, right? Is fundamentally complex, right? What you want is an abstraction layer where develop and this gets to, to your point Dave where you just said like "The developers just want to get their job done." or really they want to focus on the business logic and accelerate that service delivery, right? So the idea here is an EnterpriseWeb they can literally declaratively compose their services, express their intent. "I want this to run optimized for low latency. I want this to run optimized for energy consumption." Right? And that's all they say, right? That's a very high level statement. And then the run time translates it between all the elements that are participating in that service to realize the developer's intent, right? No hands, right? Zero touch, right? So that's now a movement in telecom. So you're right, it's taking a while because these are pretty fundamental shifts, right? But it's intent based networking, right? So it's almost two parts, right? One is you have to have the open APIs, right? So that the infrastructure has to expose its capabilities. Then you need abstractions over the top that make it simple for developers to take, you know, make use of them. >> See, one of the demonstrations we are doing is around AIOps. And I've had literally here on this floor, two conversations around what I call as network as a platform. Although it sounds like a cliche term, that's exactly what Dave was describing in terms of exposing APIs from the infrastructure and utilizing them. So once you get that data, then now you can do analytics and do machine learning to be able to build models and figure out how you can orchestrate better how you can monetize better, how can how you can utilize better, right? So all of those things become important. It's just not about internal optimization but it's also about how do you expose it to third party ecosystem to translate that into better delivery mechanisms or IOT capability and so on. >> But if they're going to charge me for every API call in the network I'm going to go broke (team laughs) >> And I'm going to get really pissed. I mean, I feel like, I'm just running down, Oracle. IBM tried it. Oracle, okay, they got Java, but they don't they don't have developer jobs. VMware, okay? They got Aria. EMC used to have a thing called code. IBM had to buy Red Hat to get to the developer community. (Lisa laughs) >> So I feel like the telcos don't today have those developer shops. So, so they have to partner. [Azhar] Yes. >> With guys like you and then be more open and and let a zillion flowers bloom or else they're going to get disrupted in a big way and they're going to it's going to be a repeat of the over, over the top in, in in a different model that I can't predict. >> Yeah. >> Absolutely true. I mean, look, they cannot be in the connectivity business. Telcos cannot be just in the connectivity business. It's, I think so, you know, >> Dave Vellante: You had a fry a frozen hand (Dave Daggul laughs) >> off that, you know. >> Well, you know, think about they almost have to go become over the top on themselves, right? That's what the cloud guys are doing, right? >> Yeah. >> They're riding over their backbone that by taking a creating a high level abstraction, they in turn abstract away the infrastructure underneath them, right? And that's really the end game >> Right? >> Dave Vellante: Yeah. >> Is because now, >> they're over the top it's their network, it's their infrastructure, right? They don't want to become bid pipes. >> Yep. >> Now you, they can take OpenShift, run that in any cloud. >> Yep. >> Right? >> You can run that in hybrid cloud, enterprise web can do the application layer configuration and management. And together we're running, you know, OSI layers one through seven, east to west, north to south. We're running across the the RAN, the core and the transport. And that is telco super cloud, my friend. >> Yeah. Well, >> (Dave Duggal laughs) >> I'm dominating the conversation cause I love talking super cloud. >> I knew you would. >> So speaking of super superpowers, when you're in customer or prospective customer conversations with providers and they've got, obviously they're they're in this transformative state right now. How, what do you describe as the superpower between Red Hat and EnterpriseWeb in terms of really helping these Telcos transforms. But at the end of the day, the connectivity's there the end user gets what they want, which is I want this to work wherever I am. >> Yeah, yeah. That's a great question, Lisa. So I think the way you could look at it is most software has, has been evolved to be specialized, right? So in Telcos' no different, right? We have this in the enterprise, right? All these specialized stacks, all these components that they wire together in the, in you think of Telco as a sort of a super set of enterprise problems, right? They have all those problems like magnified manyfold, right? And so you have specialized, let's say orchestrators and other tools for every Telco domain for every Telco layer. Now you have a zoo of orchestrators, right? None of them were designed to work together, right? They all speak a specific language, let's say quote unquote for doing a specific purpose. But everything that's interesting in the 21st century is across layers and across domains, right? If a siloed static application, those are dead, right? Nobody's doing those anymore. Even developers don't do those developers are doing composition today. They're not doing, nobody wants to hear about a 6 million lines of code, right? They want to hear, "How did you take these five things and bring 'em together for productive use?" >> Lisa: Right. How did you deliver faster for my enterprise? How did you save me money? How did you create business value? And that's what we're doing together. >> I mean, just to add on to Dave, I was talking to one of the providers, they have more than 30,000 nodes in their infrastructure. When I say no to your servers running, you know, Kubernetes,running open stack, running different components. If try managing that in one single entity, if you will. Not possible. You got to fragment, you got to segment in some way. Now the question is, if you are not exposing that particular infrastructure and the appropriate KPIs and appropriate things, you will not be able to efficiently utilize that across the board. So you need almost a construct that creates like a manager of managers, a hierarchical structure, which would allow you to be more intelligent in terms of how you place those, how you manage that. And so when you ask the question about what's the secret sauce between the two, well this is exactly where EnterpriseWeb brings in that capability to analyze information, be more intelligent about it. And what we do is provide an abstraction of the cloud layer so that they can, you know, then do the right job in terms of making sure that it's appropriate and it's consistent. >> Consistency is key. Guys, thank you so much. It's been a pleasure really digging through EnterpriseWeb. >> Thank you. >> What you're doing >> with Red Hat. How you're helping the organization transform and Supercloud, we can't forget Supercloud. (Dave Vellante laughs) >> Fight Supercloud. Guys, thank you so much for your time. >> Thank you so much Lisa. >> Thank you. >> Thank you guys. >> Very nice. >> Lisa: We really appreciate it. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live tech coverage coming to you live from MWC 23. We'll be back after a short break.

>> TheCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (upbeat music) >> Welcome back to Spain, everybody. We're here at the Theater Live and MWC 23. You're watching theCUBE's Continuous Coverage. This is day two. I'm Dave Vellante with my co-host, Dave Nicholson. Lisa Martin is also in the house. John Furrier out of our Palo Alto studio covering all the news. Check out silicon angle.com. Okay, we're going to dig into the core infrastructure here. We're going to talk a little bit about servers. Manya Rastogi is here. She's in technical marketing at Dell Technologies. And Abdel Bagegni is technical program manager at the Telecom Infra Project. Folks, welcome to theCUBE. Good to see you. >> Thank you. >> Abdel, what is the Telecom Infras Project? Explain to our audience. >> Yeah. So the Telecom Infra Project is a US based non-profit organization community that brings together different participants, suppliers, vendors, operators SI's together to accelerate the adoption of open RAN and open interface solutions across the globe. >> Okay. So that's the mission is open RAN adoption. And then how, when was it formed? Give us the background and some of the, some of the milestones so far. >> Yeah. So the telecom infra project was established five years ago from different vendor leaders and operators across the globe. And then the mission was to bring different players in to work together to accelerate the adoption of, of open RAN. Now open RAN has a lot of potential and opportunities, but in the same time there's challenges that we work together as a community to facilitate those challenges and overcome those barriers. >> And we've been covering all week just the disaggregation of the network. And you know, we've seen this movie sort of before playing out now in, in telecom. And Manya, this is obviously a compute intensive environment. We were at the Dell booth earlier this morning poking around, beautiful booth, lots of servers. Tell us what your angle is here in this marketplace. >> Yeah, so I would just like to say that Dell is kind of leading or accelerating the innovation at the telecom edge with all these ruggedized servers that we are offering. So just continuing the mission, like Abdel just mentioned for the open RAN, that's where a lot of focus will be from these servers will be, so XR 8000, it's it's going to be one of the star servers for telecom with, you know, offering various workloads. So it can be rerun, open run, multi access, edge compute. And it has all these different features with itself and the, if we, we can talk more about the performance gains, how it is based on the Intel CPUs and just try to solve the purpose like along with various vendors, the whole ecosystem solve this challenge for the open RAN. >> So Manya mentioned some of those infrastructure parts. Does and do, do you say TIP or T-I-P for short? >> Abdel: We say TIP. >> TIP. >> Abdel: T-I-P is fine as well. >> Does, does, does TIP or T-I-P have a certification process or a, or a set of guidelines that someone like Dell would either adhere to or follow to be sort of TIP certified? What does that look like? >> Yeah, of course. So what TIP does is TIP accredits what solutions that actually work in a real commercial grade environment. So what we do is we bring the different players together to come up with the most efficient optimized solution. And then it goes through a process that the community sets the, the, the criteria for and accepts. And then once this is accredited it goes into TIP exchange for other operators and the participants and the industry to adopt. So it's a well structured process and it's everything about how we orchestrate the industry to come together and set those requirements and and guidelines. Everything starts with a use case from the beginning. It's based on operators requirements, use cases and then those use cases will be translated into a solution that the industry will approve. >> So when you say operator, I can think of that sort of traditionally as the customer side of things versus the vendor side of things. Typically when organizations get together like TIP, the operator customer side is seeking a couple of things. They want perfect substitutes in all categories so that they could grind vendors down from a price perspective but they also want amazing innovation. How do you, how do you deliver both? >> Yeah, I mean that's an excellent question. We be pragmatic and we bring all players in one table to discuss. MNO's want this, vendors can provide a certain level and we bring them together and they discuss and come up with something that can be deployed today and future proof for the future. >> So I've been an enterprise technology observer for a long time and, you know, I saw the, the attempt to take network function virtualization which never really made much of an impact, but it was a it was the beginning of the enterprise players really getting into this market. And then I would see companies, whether it was Dell or HPE or Cisco, they'd take an X 86 server, put a cool name on it, edge something, and throw it over the fence and that didn't work so well. Now it's like, Manya. We're starting to get serious. You're building relationships. >> Manya: Totally. >> I mentioned we were at the Dell booth you're actually building purpose built systems now for this, this segment. Tell us what's different about this market and the products that you're developing for this market than say the commercial enterprise. >> So you are absolutely right, like, you know, kind of thinking about the journey, there has been a lot of, it has been going for a long time for all these improvements and towards going more open disaggregated and overall that kind of environment and what Dell brings together with our various partners and particularly if you talk about Intel. So these servers are powered by the players four gen intel beyond processors. And so what Intel is doing right now is providing us with great accelerators like vRAN Boost. So it increases performance like doubles what it was able to do before. And power efficiency, it has been an issue for a long, long time and it still continues but there is some improvement. For example 20% reduction overall with the power savings. So that's a step forward in that direction. And then we have done some of our like own testing as well with these servers and continuing that, you know it's not just telecom but also going towards Edge or inferencing like all these comes together not just X 30,000 but for example XR 56 10, 70, 76 20. So these are three servers which combines together to like form telecom and Edge and covers altogether. So that's what it is. >> Great, thank you. So Abdel, I mean I think generally people agree that in the fullness of time all radio access networks are going to be open, right? It's just a matter of okay, how do we get there? How do we make sure that it has the same, you know, quality of service characteristics. So where are we on on that, that journey from your perspective? And, and maybe you could project what, what it's going to look like over this decade. 'Cause it's going to take, you know, years. >> It's going to take a bit of time to mature and be a kind of a plug and play different units together. I think there was a lot, there was a, was a bit of over-promising in a few, in the last few years on the acceleration of open RAN deployment. That, well, a TIP is trying to do is trying to realize the pragmatic approach of the open run deployment. Now we know the innovation cannot happen when you have a kind of closed interfaces when you allow small players to be within the market and bring the value to, to the RAN areas. This is where the innovation happens. I think what would happen on the RAN side of things is that it would be driven by use cases and the operators. And the minute that the operators are no longer can depend on the closed interface vendors because there's use cases that fulfill that are requires some open RAN functionality, be the, the rig or the SMO layers and the different configurations of the rUSE getting the servers to the due side of things. This kind of modular scalability on this layer is when the RAN will, the Open RAN, would boost. This would happen probably, yeah. >> Go ahead. >> Yeah, it would happen in, in the next few years. Not next year or the year after but definitely something within the four to five years from now. >> I think it does feel like it's a second half of the decade and you feel like the, the the RAN intelligent controller is going to be a catalyst to actually sort of force the world into this open environment. >> Let's say that the Rick and the promises that were given to, to the sun 10 years ago, the Rick is realizing it and the closed RAN vendors are developing a lot on the Rick side more than the other parts of the, of the open RAN. So it will be a catalyst that would drive the innovation of open RAN, but only time will tell. >> And there are some naysayers, I mean I've seen some you know, very, very few, but I've seen some works that, oh the economics aren't there. It'll, it'll never get there. What, what do you, what do you say to that? That, that it won't ever, open RAN won't ever be as cost effective as you know, closed networks. >> Open RAN will open innovations that small players would have the opportunity to contribute to the, to the RAN space. This opportunity is not given to small players today. Open RAN provides this kind of opportunity and given that it's a path for innovation, then I would say that, you know, different perspectives some people are making sure that, you know the status quo is the way forward. But it would certainly put barriers on on innovation and this is not the way forward. >> Yeah. You can't protect the past in the future. My own personal opinion is, is that it doesn't have to be comparable from a, from a TCO perspective it can be close enough. It's the innovative, same thing with like you watch the, the, the adoption of Cloud. >> Exactly. >> Like cloud was more expensive it's always more expensive to rent, but people seem to be doing public Cloud, you know, because of the the innovation capabilities and the developer capabilities. Is that a fair analogy in this space, do you think? >> I mean this is what all technologies happens. >> Yeah. >> Right? It starts with a quite costly and then the the cost will start dropping down. I mean the, the cost of, of a megabyte two decades ago is probably higher than what it costly terabyte. So this is how technology evolves and it's any kind of comparison, either copper or even the old generation, the legacy generations could be a, a valid comparison. However, they need to be at a market demand for something like that. And I think the use cases today with what the industry is is looking for have that kind of opportunity to pull this kind of demand. But, but again, it needs to go work close by the what happens in the technology space, be it, you know we always talk about when we, we used to talk about 5G, there was a lot of hypes going on there. But I think once it realized in, in a pragmatic, in a in a real life situation, the minutes that governments decide to go for autonomous vehicles, then you would have limitations on the current closed RAN infrastructures and you would definitely need something to to top it up on the- >> I mean, 5G needs open RAN, I mean that's, you know not going to happen without it. >> Exactly. >> Yeah, yeah. But, but what is, but what would you say the most significant friction is between here and the open RAN nirvana? What are, what are the real hurdles that need to be overcome? There's obviously just the, I don't want to change we've been doing this the same way forever, but what what are the, what are the real, the legitimate concerns that people have when we start talking about open RAN? >> So I think from a technology perspective it will be solved. All of the tech, I mean there's smart engineers in the world today that will fix, you know these kind of problems and all of the interability, interruptability issues and, and all of that. I think it's about the mindset, the, the interfaces between the legacy core and RAN has been became more fluid today. We don't have that kind of a hard line between these kind of different aspects. We have the, the MEC coming closer to the RAN, we have the RAN coming closer to the Core, and we have the service based architectures in the Core. So these kind of things make it needs a paradigm shift between how operators that would need to tackle the open RAN space. >> Are there specific deployment requirements for open RAN that you can speak to from your perspective? >> For sure and going in this direction, like, you know evolution with the technology and how different players are coming together. Like that's something I wanted to comment from the previous question. And that's where like, you know these servers that Dell is offering right now. Specific functionality requirements, for example, it's it's a small server, it's short depth just 430 millimeters of depth and it can fit anywhere. So things like small form factor, it's it's crucial because if you, it can replace like multiple servers 10 years ago with just one server and you can place it like near a base band unit or to a cell site on top of a roof wherever. Like, you know, if it's a small company and you need this kind of 5G connection it kind of solves that challenge with this server. And then there are various things like, you know increasing thermals for example temperatures. It is classified like, you know kind of compliant with the negative 5 to 55 degree Celsius. And then we are also moving towards, for example negative 20 to 65 degree Celsius. Which is, which is kind of great because in situations where, which are out of our hands and you need specific thermals for those situations that's where it can solve that problem. >> Are those, are those statistics in those measurements different than the old NEB's standards, network equipment building standards? Or are they, are they in line with that? >> It is, it is a next step. Like so most of our servers that we have right now are negative five to five degree Celsius, for especially the extremely rugged server series and this one XR 8,000 which is focused for the, it's telecom inspired so it's focused on those customers. So we are trying to come up like go a step ahead and also like offering this additional temperatures testing and yeah compliance. So, so it is. >> Awesome. So we, I said we were at the booth early today. Looks like some good traffic people poking around at different, you know, innovations you got going. Some of the private network stuff is kind of cool. I'm like how much does that cost? I think I might like one of those, you know, but- >> [Private 5G home network. >> Right? Why not? Guys, great to have you on the show. Thanks so much for sharing. Appreciate it. >> Thank you. >> Thank you so much. >> Okay. For Dave Nicholson and Lisa Martin this is Dave Vellante, theCUBE's coverage. MWC 23 live from the Fida in Barcelona. We'll be right back. (outro music)

(upbeat instrumental music) >> TheCUBE's live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (uplifting instrumental music) >> Hey everyone. Welcome to Barcelona, Spain. It's theCUBE Live at MWC '23. I'm Lisa Martin, Dave Vellante, our co-founder, our co-CEO of theCUBE, you know him, you love him. He's here as my co-host. Dave, we have a great couple of guests here to break down day one keynote. Lots of meat. I can't wait to be part of this conversation. Chris Lewis joins us, the founder and MD of Lewis Insight. And Sarbjeet Johal, one of you know him as well. He's a Cube contributor, cloud architect. Guys, welcome to the program. Thank you so much for joining Dave and me today. >> Lovely to be here. >> Thank you. >> Chris, I want to start with you. You have covered all aspects of global telecoms industries over 30 years working as an analyst. Talk about the evolution of the telecom industry that you've witnessed, and what were some of the things you heard in the keynote that excite you about the direction it's going? >> Well, as ever, MWC, there's no lack of glitz and glamour, but it's the underlying issues of the industry that are really at stake here. There's not a lot of new revenue coming into the telecom providers, but there's a lot of adjustment, readjustment of the underlying operational environment. And also, really importantly, what came out of the keynotes is the willingness and the necessity to really engage with the API community, with the developer community, people who traditionally, telecoms would never have even touched. So they're sorting out their own house, they're cleaning their own stables, getting the cost base down, but they're also now realizing they've got to engage with all the other parties. There's a lot of cloud providers here, there's a lot of other people from outside so they're realizing they cannot do it all themselves. It's quite a tough lesson for a very conservative, inward looking industry, right? So should we be spending all this money and all this glitz and glamour of MWC and all be here, or should would be out there really building for the future and making sure the services are right for yours and my needs in a business and personal lives? So a lot of new changes, a lot of realization of what's going on outside, but underlying it, we've just got to get this right this time. >> And it feels like that monetization is front and center. You mentioned developers, we've got to work with developers, but I'm hearing the latest keynote from the Ericsson CEOs, we're going to monetize through those APIs, we're going to charge the developers. I mean, first of all, Chris, am I getting that right? And Sarbjeet, as somebody who's close to the developer community, is that the right way to build bridges? But Chris, are we getting that right? >> Well, let's take the first steps first. So, Ericsson, of course, acquired Vonage, which is a massive API business so they want to make money. They expect to make money by bringing that into the mainstream telecom community. Now, whether it's the developers who pay for it, or let's face it, we are moving into a situation as the telco moves into a techco model where the techco means they're going to be selling bits of the technology to developer guys and to other application developers. So when he says he needs to charge other people for it, it's the way in which people reach in and will take going through those open APIs like the open gateway announced today, but also the way they'll reach in and take things like network slicing. So we're opening up the telecom community, the treasure chest, if you like, where developers' applications and other third parties can come in and take those chunks of technology and build them into their services. This is a complete change from the old telecom industry where everybody used to come and you say, "all right, this is my product, you've got to buy it and you're going to pay me a lot of money for it." So we are looking at a more flexible environment where the other parties can take those chunks. And we know we want collectivity built into our financial applications, into our government applications, everything, into the future of the metaverse, whatever it may be. But it requires that change in attitude of the telcos. And they do need more money 'cause they've said, the baseline of revenue is pretty static, there's not a lot of growth in there so they're looking for new revenues. It's in a B2B2X time model. And it's probably the middle man's going to pay for it rather than the customer. >> But the techco model, Sarbjeet, it looks like the telcos are getting their money on their way in. The techco company model's to get them on their way out like the app store. Go build something of value, build some kind of app or data product, and then when it takes off, we'll take a piece of the action. What are your thoughts from a developer perspective about how the telcos are approaching it? >> Yeah, I think before we came here, like I said, I did some tweets on this, that we talk about all kind of developers, like there's game developers and front end, back end, and they're all talking about like what they're building on top of cloud, but nowhere you will hear the term "telco developer," there's no API from telcos given to the developers to build IoT solutions on top of it because telco as an IoT, I think is a good sort of hand in hand there. And edge computing as well. The glimmer of hope, if you will, for telcos is the edge computing, I believe. And even in edge, I predicted, I said that many times that cloud players will dominate that market with the private 5G. You know that story, right? >> We're going to talk about that. (laughs) >> The key is this, that if you see in general where the population lives, in metros, right? That's where the world population is like flocking to and we have cloud providers covering the local zones with local like heavy duty presence from the big cloud providers and then these telcos are getting sidetracked by that. Even the V2X in cars moving the autonomous cars and all that, even in that space, telcos are getting sidetracked in many ways. What telcos have to do is to join the forces, build some standards, if not standards, some consortium sort of. They're trying to do that with the open gateway here, they have only eight APIs. And it's 2023, eight APIs is nothing, right? (laughs) So they should have started this 10 years back, I think. So, yeah, I think to entice the developers, developers need the employability, we need to train them, we need to show them some light that hey, you can build a lot on top of it. If you tell developers they can develop two things or five things, nobody will come. >> So, Chris, the cloud will dominate the edge. So A, do you buy it? B, the telcos obviously are acting like that might happen. >> Do you know I love people when they've got their heads in the clouds. (all laugh) And you're right in so many ways, but if you flip it around and think about how the customers think about this, business customers and consumers, they don't care about all this background shenanigans going on, do they? >> Lisa: No. >> So I think one of the problems we have is that this is a new territory and whether you call it the edge or whatever you call it, what we need there is we need connectivity, we need security, we need storage, we need compute, we need analytics, and we need applications. And are any of those more important than the others? It's the collective that actually drives the real value there. So we need all those things together. And of course, the people who represented at this show, whether it's the cloud guys, the telcos, the Nokia, the Ericssons of this world, they all own little bits of that. So that's why they're all talking partnerships because they need the combination, they cannot do it on their own. The cloud guys can't do it on their own. >> Well, the cloud guys own all of those things that you just talked about though. (all laugh) >> Well, they don't own the last bit of connectivity, do they? They don't own the access. >> Right, exactly. That's the one thing they don't own. So, okay, we're back to pipes, right? We're back to charging for connectivity- >> Pipes are very valuable things, right? >> Yeah, for sure. >> Never underestimate pipes. I don't know about where you live, plumbers make a lot of money where I live- >> I don't underestimate them but I'm saying can the telcos charge for more than that or are the cloud guys going to mop up the storage, the analytics, the compute, and the apps? >> They may mop it up, but I think what the telcos are doing and we've seen a lot of it here already, is they are working with all those major cloud guys already. So is it an unequal relationship? The cloud guys are global, massive global scale, the telcos are fundamentally national operators. >> Yep. >> Some have a little bit of regional, nobody has global scale. So who stitches it all together? >> Dave: Keep your friends close and your enemies closer. >> Absolutely. >> I know that saying never gets old. It's true. Well, Sarbjeet, one of the things that you tweeted about, I didn't get to see the keynote but I was looking at your tweets. 46% of telcos think they won't make it to the next decade. That's a big number. Did that surprise you? >> No, actually it didn't surprise me because the competition is like closing in on them and the telcos are competing with telcos as well and the telcos are competing with cloud providers on the other side, right? So the smaller ones are getting squeezed. It's the bigger players, they can hook up the newer platforms, I think they will survive. It's like that part is like any other industry, if you will. But the key is here, I think why the pain points were sort of described on the main stage is that they're crying out loud to tell the big tech cloud providers that "hey, you pay your fair share," like we talked, right? You are not paying, you're generating so much content which reverses our networks and you are not paying for it. So they are not able to recoup the cost of laying down their networks. By the way, one thing actually I want to mention is that they said the cloud needs earth. The cloud and earth, it's like there's no physical need to cloud, you know that, right? So like, I think it's the other way around. I think the earth needs the cloud because I'm a cloud guy. (Sarbjeet and Lisa laugh) >> I think you need each other, right? >> I think so too. >> They need each other. When they said cloud needs earth, right? I think they're still in denial that the cloud is a big force. They have to partner. When you can't compete with somebody, what do you do? Partner with them. >> Chris, this is your world. Are they in denial? >> No, I think they're waking up to the pragmatism of the situation. >> Yeah. >> They're building... As we said, most of the telcos, you find have relationships with the cloud guys, I think you're right about the industry. I mean, do you think what's happened since US was '96, the big telecom act when we started breaking up all the big telcos and we had lots of competition came in, we're seeing the signs that we might start to aggregate them back up together again. So it's been an interesting experiment for like 30 years, hasn't it too? >> It made the US less competitive, I would argue, but carry on. >> Yes, I think it's true. And Europe is maybe too competitive and therefore, it's not driven the investment needed. And by the way, it's not just mobile, it's fixed as well. You saw the Orange CEO was talking about the her investment and the massive fiber investments way ahead of many other countries, way ahead of the UK or Germany. We need that fiber in the ground to carry all your cloud traffic to do this. So there is a scale issue, there is a competition issue, but the telcos are very much aware of it. They need the cloud, by the way, to improve their operational environments as well, to change that whole old IT environment to deliver you and I better service. So no, it absolutely is changing. And they're getting scale, but they're fundamentally offering the basic product, you call it pipes, I'll just say they're offering broadband to you and I and the business community. But they're stepping on dangerous ground, I think, when saying they want to charge the over the top guys for all the traffic they use. Those over the top guys now build a lot of the global networks, the backbone submarine network. They're putting a lot of money into it, and by giving us endless data for our individual usage, that cat is out the bag, I think to a large extent. >> Yeah. And Orange CEO basically said that, that they're not paying their fair share. I'm for net neutrality but the governments are going to have to fund this unless you let us charge the OTT. >> Well, I mean, we could of course renationalize. Where would that take us? (Dave laughs) That would make MWC very interesting next year, wouldn't it? To renationalize it. So, no, I think you've got to be careful what we wish for here. Creating the absolute clear product that is required to underpin all of these activities, whether it's IoT or whether it's cloud delivery or whether it's just our own communication stuff, delivering that absolutely ubiquitously high quality for business and for consumer is what we have to do. And telcos have been too conservative in the past. >> I think they need to get together and create standards around... I think they have a big opportunity. We know that the clouds are being built in silos, right? So there's Azure stack, there's AWS and there's Google. And those are three main ones and a few others, right? So that we are fighting... On the cloud side, what we are fighting is the multicloud. How do we consume that multicloud without having standards? So if these people get together and create some standards around IoT and edge computing sort of area, people will flock to them to say, "we will use you guys, your API, we don't care behind the scenes if you use AWS or Google Cloud or Azure, we will come to you." So market, actually is looking for that solution. I think it's an opportunity for these guys, for telcos. But the problem with telcos is they're nationalized, as you said Chris versus the cloud guys are still kind of national in a way, but they're global corporations. And some of the telcos are global corporations as well, BT covers so many countries and TD covers so many... DT is in US as well, so they're all over the place. >> But you know what's interesting is that the TM forum, which is one of the industry associations, they've had an open digital architecture framework for quite some years now. Google had joined that some years ago, Azure in there, AWS just joined it a couple of weeks ago. So when people said this morning, why isn't AWS on the keynote? They don't like sharing the limelight, do they? But they're getting very much in bed with the telco. So I think you'll see the marriage. And in fact, there's a really interesting statement, if you look at the IoT you mentioned, Bosch and Nokia have been working together 'cause they said, the problem we've got, you've got a connectivity network on one hand, you've got the sensor network on the other hand, you're trying to merge them together, it's a nightmare. So we are finally seeing those sort of groups talking to each other. So I think the standards are coming, the cooperation is coming, partnerships are coming, but it means that the telco can't dominate the sector like it used to. It's got to play ball with everybody else. >> I think they have to work with the regulators as well to loosen the regulation. Or you said before we started this segment, you used Chris, the analogy of sports, right? In sports, when you're playing fiercely, you commit the fouls and then ask for ref to blow the whistle. You're now looking at the ref all the time. The telcos are looking at the ref all the time. >> Dave: Yeah, can I do this? Can I do that? Is this a fair move? >> They should be looking for the space in front of the opposition. >> Yeah, they should be just on attack mode and commit these fouls, if you will, and then ask for forgiveness then- >> What do you make of that AWS not you there- >> Well, Chris just made a great point that they don't like to share the limelight 'cause I thought it was very obvious that we had Google Cloud, we had Microsoft there on day one of this 80,000 person event. A lot of people back from COVID and they weren't there. But Chris, you brought up a great point that kind of made me think, maybe you're right. Maybe they're in the afternoon keynote, they want their own time- >> You think GSMA invited them? >> I imagine so. You'd have to ask GSMA. >> I would think so. >> Get Max on here and ask that. >> I'm going to ask them, I will. >> But no, and they don't like it because I think the misconception, by the way, is that everyone says, "oh, it's AWS, it's Google Cloud and it's Azure." They're not all the same business by any stretch of the imagination. AWS has been doing loads of great work, they've been launching private network stuff over the last couple of weeks. Really interesting. Google's been playing catch up. We know that they came in readily late to the market. And Azure, they've all got slightly different angles on it. So perhaps it just wasn't right for AWS and the way they wanted to pitch things so they don't have to be there, do they? >> That's a good point. >> But the industry needs them there, that's the number one cloud. >> Dave, they're there working with the industry. >> Yeah, of course. >> They don't have to be on the keynote stage. And in fact, you think about this show and you mentioned the 80,000 people, the activity going on around in all these massive areas they're in, it's fantastic. That's where the business is done. The business isn't done up on the keynote stage. >> That's why there's the glitz and the glamour, Chris. (all laugh) >> Yeah. It's not glitz, it's espresso. It's not glamour anymore, it's just espresso. >> We need the espresso. >> Yeah. >> I think another thing is that it's interesting how an average European sees the tech market and an average North American, especially you from US, you have to see the market. Here, people are more like process oriented and they want the rules of the road already established before they can take a step- >> Chris: That's because it's your pension in the North American- >> Exactly. So unions are there and the more employee rights and everything, you can't fire people easily here or in Germany or most of the Europe is like that with the exception of UK. >> Well, but it's like I said, that Silicone Valley gets their money on the way out, you know? And that's how they do it, that's how they think it. And they don't... They ask for forgiveness. I think the east coast is more close to Europe, but in the EU, highly regulated, really focused on lifetime employment, things like that. >> But Dave, the issue is the telecom industry is brilliant, right? We keep paying every month whatever we do with it. >> It's a great business, to your point- >> It's a brilliant business model. >> Dave: It's fantastic. >> So it's about then getting the structure right behind it. And you know, we've seen a lot of stratification where people are selling off towers, Orange haven't sold their towers off, they made a big point about that. Others are selling their towers off. Some people are selling off their underlying network, Telecom Italia talking about KKR buying the whole underlying network. It's like what do you want to be in control of? It's a great business. >> But that's why they complain so much is that they're having to sell their assets because of the onerous CapEx requirements, right? >> Yeah, they've had it good, right? And dare I say, perhaps they've not planned well enough for the future. >> They're trying to protect their past from the future. I mean, that's... >> Actually, look at the... Every "n" number of years, there's a new faster network. They have to dig the ground, they have to put the fiber, they have to put this. Now, there are so many booths showing 6G now, we are not even done with 5G yet, now the next 6G you know, like then- >> 10G's coming- >> 10G, that's a different market. (Dave laughs) >> Actually, they're bogged down by the innovation, I think. >> And the generational thing is really important because we're planning for 6G in all sorts of good ways but actually what we use in our daily lives, we've gone through the barrier, we've got enough to do that. So 4G gives us enough, the fiber in the ground or even old copper gives us enough. So the question is, what are we willing to pay for more than that basic connectivity? And the answer to your point, Dave, is not a lot, right? So therefore, that's why the emphasis is on the business market on that B2B and B2B2X. >> But we'll pay for Netflix all day long. >> All day long. (all laugh) >> The one thing Chris, I don't know, I want to know your viewpoints and we have talked in the past as well, there's absence of think tanks in tech, right? So we have think tanks on the foreign policy and economic policy in every country, and we have global think tanks, but tech is becoming a huge part of the economy, global economy as well as national economies, right? But we don't have think tanks on like policy around tech. For example, this 4G is good for a lot of use cases. Then 5G is good for smaller number of use cases. And then 6G will be like, fewer people need 6G for example. Why can't we have sort of those kind of entities dictating those kind of like, okay, is this a wiser way to go about it? >> Lina Khan wants to. She wants to break up big tech- >> You're too young to remember but the IT used to have a show every four years in Geneva, there were standards around there. So I think there are bodies. I think the balance of power obviously has gone from the telecom to the west coast to the IT markets. And it's changing the balance about, it moves more quickly, right? Telecoms has never moved quickly enough. I think there is hope by the way, that telecoms now that we are moving to more softwarized environment, and God forbid, we're moving into CICD in the telecom world, right? Which is a massive change, but I think there's hopes for it to change. The mentality is changing, the culture is changing, but to change those old structured organizations from the British telecom or the France telecom into the modern world, it's a hell of a long journey. It's not an overnight journey at all. >> Well, of course the theme of the event is velocity. >> Yeah, I know that. >> And it's been interesting sitting here with the three of you talking about from a historic perspective, how slow and molasseslike telecom has been. They don't have a choice anymore. As consumers, we have this expectation we're going to get anything we want on our mobile device, 24 by seven. We don't care about how the sausage is made, we just want the end result. So do you really think, and we're only on day one guys... And Chris we'll start with you. Is the theme really velocity? Is it disruption? Are they able to move faster? >> Actually, I think invisibility is the real answer. (Lisa laughs) We want communication to be invisible, right? >> Absolutely. >> We want it to work. When we switch our phones on, we want it to work and we want to... Well, they're not even phones anymore, are they really? I mean that's the... So no, velocity, we've got... There is momentum in the industry, there's no doubt about that. The cloud guys coming in, making telecoms think about the way they run their own business, where they meet, that collision point on the edges you talked about Sarbjeet. We do have velocity, we've got momentum. There's so many interested parties. The way I think of this is that the telecom industry used to be inward looking, just design its own technology and then expect everyone else to dance to our tune. We're now flipping that 180 degrees and we are now having to work with all the different outside forces shaping us. Whether it's devices, whether it's smart cities, governments, the hosting guys, the Equinoxis, all these things. So everyone wants a piece of this telecom world so we've got to make ourselves more open. That's why you get in a more open environment. >> But you did... I just want to bring back a point you made during COVID, which was when everybody switched to work from home, started using their landlines again, telcos had to respond and nothing broke. I mean, it was pretty amazing. >> Chris: It did a good job. >> It was kind of invisible. So, props to the telcos for making that happen. >> They did a great job. >> So it really did. Now, okay, what have you done for me lately? So now they've got to deal with the future and they're talking monetization. But to me, monetization is all about data and not necessarily just the network data. Yeah, they can sell that 'cause they own that but what kind of incremental value are they going to create for the consumers that... >> Yeah, actually that's a problem. I think the problem is that they have been strangled by the regulation for a long time and they cannot look at their data. It's a lot more similar to the FinTech world, right? I used to work at Visa. And then Visa, we did trillion dollars in transactions in '96. Like we moved so much money around, but we couldn't look at these things, right? So yeah, I think regulation is a problem that holds you back, it's the antithesis of velocity, it slows you down. >> But data means everything, doesn't it? I mean, it means everything and nothing. So I think the challenge here is what data do the telcos have that is useful, valuable to me, right? So in the home environment, the fact that my broadband provider says, oh, by the way, you've got 20 gadgets on that network and 20 on that one... That's great, tell me what's on there. I probably don't know what's taking all my valuable bandwidth up. So I think there's security wrapped around that, telling me the way I'm using it if I'm getting the best out of my service. >> You pay for that? >> No, I'm saying they don't do it yet. I think- >> But would you pay for that? >> I think I would, yeah. >> Would you pay a lot for that? I would expect it to be there as part of my dashboard for my monthly fee. They're already charging me enough. >> Well, that's fine, but you pay a lot more in North America than I do in Europe, right? >> Yeah, no, that's true. >> You're really overpaying over there, right? >> Way overpaying. >> So, actually everybody's looking at these devices, right? So this is a radio operated device basically, right? And then why couldn't they benefit from this? This is like we need to like double click on this like 10 times to find out why telcos failed to leverage this device, right? But I think the problem is their reliance on regulations and their being close to the national sort of governments and local bodies and authorities, right? And in some countries, these telcos are totally controlled in very authoritarian ways, right? It's not like open, like in the west, most of the west. Like the world is bigger than five, six countries and we know that, right? But we end up talking about the major economies most of the time. >> Dave: Always. >> Chris: We have a topic we want to hit on. >> We do have a topic. Our last topic, Chris, it's for you. You guys have done an amazing job for the last 25 minutes talking about the industry, where it's going, the evolution. But Chris, you're registered blind throughout your career. You're a leading user of assertive technologies. Talk about diversity, equity, inclusion, accessibility, some of the things you're doing there. >> Well, we should have had 25 minutes on that and five minutes on- (all laugh) >> Lisa: You'll have to come back. >> Really interesting. So I've been looking at it. You're quite right, I've been using accessible technology on my iPhone and on my laptop for 10, 20 years now. It's amazing. And what I'm trying to get across to the industry is to think about inclusive design from day one. When you're designing an app or you're designing a service, make sure you... And telecom's a great example. In fact, there's quite a lot of sign language around here this week. If you look at all the events written, good to see that coming in. Obviously, no use to me whatsoever, but good for the hearing impaired, which by the way is the biggest category of disability in the world. Biggest chunk is hearing impaired, then vision impaired, and then cognitive and then physical. And therefore, whenever you're designing any service, my call to arms to people is think about how that's going to be used and how a blind person might use it or how a deaf person or someone with physical issues or any cognitive issues might use it. And a great example, the GSMA and I have been talking about the app they use for getting into the venue here. I downloaded it. I got the app downloaded and I'm calling my guys going, where's my badge? And he said, "it's top left." And because I work with a screen reader, they hadn't tagged it properly so I couldn't actually open my badge on my own. Now, they changed it overnight so it worked this morning, which is fantastic work by Trevor and the team. But it's those things that if you don't build it in from scratch, you really frustrate a whole group of users. And if you think about it, people with disabilities are excluded from so many services if they can't see the screen or they can't hear it. But it's also the elderly community who don't find it easy to get access to things. Smart speakers have been a real blessing in that respect 'cause you can now talk to that thing and it starts talking back to you. And then there's the people who can't afford it so we need to come down market. This event is about launching these thousand dollars plus devices. Come on, we need below a hundred dollars devices to get to the real mass market and get the next billion people in and then to educate people how to use it. And I think to go back to your previous point, I think governments are starting to realize how important this is about building the community within the countries. You've got some massive projects like NEOM in Saudi Arabia. If you have a look at that, if you get a chance, a fantastic development in the desert where they're building a new city from scratch and they're building it so anyone and everyone can get access to it. So in the past, it was all done very much by individual disability. So I used to use some very expensive, clunky blind tech stuff. I'm now using mostly mainstream. But my call to answer to say is, make sure when you develop an app, it's accessible, anyone can use it, you can talk to it, you can get whatever access you need and it will make all of our lives better. So as we age and hearing starts to go and sight starts to go and dexterity starts to go, then those things become very useful for everybody. >> That's a great point and what a great champion they have in you. Chris, Sarbjeet, Dave, thank you so much for kicking things off, analyzing day one keynote, the ecosystem day, talking about what velocity actually means, where we really are. We're going to have to have you guys back 'cause as you know, we can keep going, but we are out of time. But thank you. >> Pleasure. >> We had a very spirited, lively conversation. >> Thanks, Dave. >> Thank you very much. >> For our guests and for Dave Vellante, I'm Lisa Martin, you're watching theCUBE live in Barcelona, Spain at MWC '23. We'll be back after a short break. See you soon. (uplifting instrumental music)

>> From the Cube Studios in Palo Alto in Boston bringing you data-driven insights from the Cube and ETR. This is Breaking Analysis with Dave Vellante. >> The unraveling of market enthusiasm continued in Q4 of 2022 with the earnings reports from the US hyperscalers, the big three now all in. As we said earlier this year, even the cloud is an immune from the macro headwinds and the cracks in the armor that we saw from the data that we shared last summer, they're playing out into 2023. For the most part actuals are disappointing beyond expectations including our own. It turns out that our estimates for the big three hyperscaler's revenue missed by 1.2 billion or 2.7% lower than we had forecast from even our most recent November estimates. And we expect continued decelerating growth rates for the hyperscalers through the summer of 2023 and we don't think that's going to abate until comparisons get easier. Hello and welcome to this week's Wikibon Cube Insights powered by ETR. In this Breaking Analysis, we share our view of what's happening in cloud markets not just for the hyperscalers but other firms that have hitched a ride on the cloud. And we'll share new ETR data that shows why these trends are playing out tactics that customers are employing to deal with their cost challenges and how long the pain is likely to last. You know, riding the cloud wave, it's a two-edged sword. Let's look at the players that have gone all in on or are exposed to both the positive and negative trends of cloud. Look the cloud has been a huge tailwind for so many companies like Snowflake and Databricks, Workday, Salesforce, Mongo's move with Atlas, Red Hats Cloud strategy with OpenShift and so forth. And you know, the flip side is because cloud is elastic what comes up can also go down very easily. Here's an XY graphic from ETR that shows spending momentum or net score on the vertical axis and market presence in the dataset on the horizontal axis provision or called overlap. This is data from the January 2023 survey and that the red dotted lines show the positions of several companies that we've highlighted going back to January 2021. So let's unpack this for a bit starting with the big three hyperscalers. The first point is AWS and Azure continue to solidify their moat relative to Google Cloud platform. And we're going to get into this in a moment, but Azure and AWS revenues are five to six times that of GCP for IaaS. And at those deltas, Google should be gaining ground much faster than the big two. The second point on Google is notice the red line on GCP relative to its starting point. While it appears to be gaining ground on the horizontal axis, its net score is now below that of AWS and Azure in the survey. So despite its significantly smaller size it's just not keeping pace with the leaders in terms of market momentum. Now looking at AWS and Microsoft, what we see is basically AWS is holding serve. As we know both Google and Microsoft benefit from including SaaS in their cloud numbers. So the fact that AWS hasn't seen a huge downward momentum relative to a January 2021 position is one positive in the data. And both companies are well above that magic 40% line on the Y-axis, anything above 40% we consider to be highly elevated. But the fact remains that they're down as are most of the names on this chart. So let's take a closer look. I want to start with Snowflake and Databricks. Snowflake, as we reported from several quarters back came down to Earth, it was up in the 80% range in the Y-axis here. And it's still highly elevated in the 60% range and it continues to move to the right, which is positive but as we'll address in a moment it's customers can dial down consumption just as in any cloud. Now, Databricks is really interesting. It's not a public company, it never made it to IPO during the sort of tech bubble. So we don't have the same level of transparency that we do with other companies that did make it through. But look at how much more prominent it is on the X-axis relative to January 2021. And it's net score is basically held up over that period of time. So that's a real positive for Databricks. Next, look at Workday and Salesforce. They've held up relatively well, both inching to the right and generally holding their net scores. Same from Mongo, which is the brown dot above its name that says Elastic, it says a little gets a little crowded which Elastic's actually the blue dot above it. But generally, SaaS is harder to dial down, Workday, Salesforce, Oracles, SaaS and others. So it's harder to dial down because commitments have been made in advance, they're kind of locked in. Now, one of the discussions from last summer was as Mongo, less discretionary than analytics i.e. Snowflake. And it's an interesting debate but maybe Snowflake customers, you know, they're also generally committed to a dollar amount. So over time the spending is going to be there. But in the short term, yeah maybe Snowflake customers can dial down. Now that highlighted dotted red line, that bolded one is Datadog and you can see it's made major strides on the X-axis but its net score has decelerated quite dramatically. Openshift's momentum in the survey has dropped although IBM just announced that OpenShift has a a billion dollar ARR and I suspect what's happening there is IBM consulting is bundling OpenShift into its modernization projects. It's got a, that sort of captive base if you will. And as such it's probably not as top of mind to the respondents but I'll bet you the developers are certainly aware of it. Now the other really notable call out here is CloudFlare, We've reported on them earlier. Cloudflare's net score has held up really well since January of 2021. It really hasn't seen the downdraft of some of these others, but it's making major major moves to the right gaining market presence. We really like how CloudFlare is performing. And the last comment is on Oracle which as you can see, despite its much, much lower net score continues to gain ground in the market and thrive from a profitability standpoint. But the data pretty clearly shows that there's a downdraft in the market. Okay, so what's happening here? Let's dig deeper into this data. Here's a graphic from the most recent ETR drill down asking customers that said they were going to cut spending what technique they're using to do so. Now, as we've previously reported, consolidating redundant vendors is by far the most cited approach but there's two key points we want to make here. One is reducing excess cloud resources. As you can see in the bars is the second most cited technique and it's up from the previous polling period. The second we're not showing, you know directly but we've got some red call outs there. Reducing cloud costs jumps to 29% and 28% respectively in financial services and tech telco. And it's much closer to second. It's basically neck and neck with consolidating redundant vendors in those two industries. So they're being really aggressive about optimizing cloud cost. Okay, so as we said, cloud is great 'cause you can dial it up but it's just as easy to dial down. We've identified six factors that customers tell us are affecting their cloud consumption and there are probably more, if you got more we'd love to hear them but these are the ones that are fairly prominent that have hit our radar. First, rising mortgage rates mean banks are processing fewer loans means less cloud. The crypto crash means less trading activity and that means less cloud resources. Third lower ad spend has led companies to reduce not only you know, their ad buying but also their frequency of running their analytics and their calculations. And they're also often using less data, maybe compressing the timeframe of the corpus down to a shorter time period. Also very prominent is down to the bottom left, using lower cost compute instances. For example, Graviton from AWS or AMD chips and tiering storage to cheaper S3 or deep archived tiers. And finally, optimizing based on better pricing plans. So customers are moving from, you know, smaller companies in particular moving maybe from on demand or other larger companies that are experimenting using on demand or they're moving to spot pricing or reserved instances or optimized savings plans. That all lowers cost and that means less cloud resource consumption and less cloud revenue. Now in the days when everything was on prem CFOs, what would they do? They would freeze CapEx and IT Pros would have to try to do more with less and often that meant a lot of manual tasks. With the cloud it's much easier to move things around. It still takes some thinking and some effort but it's dramatically simpler to do so. So you can get those savings a lot faster. Now of course the other huge factor is you can cut or you can freeze. And this graphic shows data from a recent ETR survey with 159 respondents and you can see the meaningful uptick in hiring freezes, freezing new IT deployments and layoffs. And as we've been reporting, this has been trending up since earlier last year. And note the call out, this is especially prominent in retail sectors, all three of these techniques jump up in retail and that's a bit of a concern because oftentimes consumer spending helps the economy make a softer landing out of a pullback. But this is a potential canary in the coal mine. If retail firms are pulling back it's because consumers aren't spending as much. And so we're keeping a close eye on that. So let's boil this down to the market data and what this all means. So in this graphic we show our estimates for Q4 IaaS revenues compared to the "actual" IaaS revenues. And we say quote because AWS is the only one that reports, you know clean revenue and IaaS, Azure and GCP don't report actuals. Why would they? Because it would make them look even, you know smaller relative to AWS. Rather, they bury the figures in overall cloud which includes their, you know G-Suite for Google and all the Microsoft SaaS. And then they give us little tidbits about in Microsoft's case, Azure, they give growth rates. Google gives kind of relative growth of GCP. So, and we use survey data and you know, other data to try to really pinpoint and we've been covering this for, I don't know, five or six years ever since the cloud really became a thing. But looking at the data, we had AWS growing at 25% this quarter and it came in at 20%. So a significant decline relative to our expectations. AWS announced that it exited December, actually, sorry it's January data showed about a 15% mid-teens growth rate. So that's, you know, something we're watching. Azure was two points off our forecast coming in at 38% growth. It said it exited December in the 35% growth range and it said that it's expecting five points of deceleration off of that. So think 30% for Azure. GCP came in three points off our expectation coming in 35% and Alibaba has yet to report but we've shaved a bid off that forecast based on some survey data and you know what maybe 9% is even still not enough. Now for the year, the big four hyperscalers generated almost 160 billion of revenue, but that was 7 billion lower than what what we expected coming into 2022. For 2023, we're expecting 21% growth for a total of 193.3 billion. And while it's, you know, lower, you know, significantly lower than historical expectations it's still four to five times the overall spending forecast that we just shared with you in our predictions post of between 4 and 5% for the overall market. We think AWS is going to come in in around 93 billion this year with Azure closing in at over 71 billion. This is, again, we're talking IaaS here. Now, despite Amazon focusing investors on the fact that AWS's absolute dollar growth is still larger than its competitors. By our estimates Azure will come in at more than 75% of AWS's forecasted revenue. That's a significant milestone. AWS is operating margins by the way declined significantly this past quarter, dropping from 30% of revenue to 24%, 30% the year earlier to 24%. Now that's still extremely healthy and we've seen wild fluctuations like this before so I don't get too freaked out about that. But I'll say this, Microsoft has a marginal cost advantage relative to AWS because one, it has a captive cloud on which to run its massive software estate. So it can just throw software at its own cloud and two software marginal costs. Marginal economics despite AWS's awesomeness in high degrees of automation, software is just a better business. Now the upshot for AWS is the ecosystem. AWS is essentially in our view positioning very smartly as a platform for data partners like Snowflake and Databricks, security partners like CrowdStrike and Okta and Palo Alto and many others and SaaS companies. You know, Microsoft is more competitive even though AWS does have competitive products. Now of course Amazon's competitive to retail companies so that's another factor but generally speaking for tech players, Amazon is a really thriving ecosystem that is a secret weapon in our view. AWS happy to spin the meter with its partners even though it sells competitive products, you know, more so in our view than other cloud players. Microsoft, of course is, don't forget is hyping now, we're hearing a lot OpenAI and ChatGPT we reported last week in our predictions post. How OpenAI is shot up in terms of market sentiment in ETR's emerging technology company surveys and people are moving to Azure to get OpenAI and get ChatGPT that is a an interesting lever. Amazon in our view has to have a response. They have lots of AI and they're going to have to make some moves there. Meanwhile, Google is emphasizing itself as an AI first company. In fact, Google spent at least five minutes of continuous dialogue, nonstop on its AI chops during its latest earnings call. So that's an area that we're watching very closely as the buzz around large language models continues. All right, let's wrap up with some assumptions for 2023. We think SaaS players are going to continue to be sticky. They're going to be somewhat insulated from all these downdrafts because they're so tied in and customers, you know they make the commitment up front, you've got the lock in. Now having said that, we do expect some backlash over time on the onerous and generally customer unfriendly pricing models of most large SaaS companies. But that's going to play out over a longer period of time. Now for cloud generally and the hyperscalers specifically we do expect accelerating growth rates into Q3 but the amplitude of the demand swings from this rubber band economy, we expect to continue to compress and become more predictable throughout the year. Estimates are coming down, CEOs we think are going to be more cautious when the market snaps back more cautious about hiring and spending and as such a perhaps we expect a more orderly return to growth which we think will slightly accelerate in Q4 as comps get easier. Now of course the big risk to these scenarios is of course the economy, the FED, consumer spending, inflation, supply chain, energy prices, wars, geopolitics, China relations, you know, all the usual stuff. But as always with our partners at ETR and the Cube community, we're here for you. We have the data and we'll be the first to report when we see a change at the margin. Okay, that's a wrap for today. I want to thank Alex Morrison who's on production and manages the podcast, Ken Schiffman as well out of our Boston studio getting this up on LinkedIn Live. Thank you for that. Kristen Martin also and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our Editor-in-Chief over at siliconangle.com. He does some great editing for us. Thank you all. Remember all these episodes are available as podcast. Wherever you listen, just search Breaking Analysis podcast. I publish each week on wikibon.com, at siliconangle.com where you can see all the data and you want to get in touch. Just all you can do is email me david.vellante@siliconangle.com or DM me @dvellante if you if you got something interesting, I'll respond. If you don't, it's either 'cause I'm swamped or it's just not tickling me. You can comment on our LinkedIn post as well. And please check out ETR.ai for the best survey data in the enterprise tech business. This is Dave Vellante for the Cube Insights powered by ETR. Thanks for watching and we'll see you next time on Breaking Analysis. (gentle upbeat music)

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, otc. A friend of the Cube >>Karala joined us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with you. >>A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many day zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add the gold standard from a data standpoint, and that's given them this competitive advantage to go out and become a platform for a security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Esty win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? Exactly. >>Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking to the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my >>Question. That's the point. >>Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets >>Win. Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their valuable? >>You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development and Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Nice. Era was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. >>Well, and I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Altos made, they've done a good job of integrating their backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data like the, the fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Three. Think about that at that, that >>Make a, that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market cap. >>Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo. >>Right? And that when you look around the show floor, it's not that impressive. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah, >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people at Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR roundtable said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. So, >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate days, nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's it's an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, in The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they're do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you gotta fight fire with fire. And I think that's, that's the path they've, they've headed >>Down and the bad guys are hiding in plain sight, you know? >>Yeah, yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says we're actively consolidating vendors, redundant vendors today. That number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to, to it pros is if you're doing things today that aren't resume building, stop doing them. Right? Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. And so who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah. Yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with proxies as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at c skater throw 'em back at 'em. So I, it's good to see that kind of fight going on between the two. >>Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah. Cisco's interesting. And I, I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to just say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of work there're trying to, to tie to network. >>Right. Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wikibon, lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are you gonna be next? Are you gonna be on vacation? >>There's nothing more fun than mean on the cube, so, right. What's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and do the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We >>Love it. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show and it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back to Vegas, guys and girls, it's great to have you with us. The Cube Live. Si finishing our second day of coverage of Palo Alto Ignite. 22 from MGM Grand in Las Vegas. Lisa Martin here with Dave Valante. Dave Cybersecurity is one of my favorite topics to talk about because it is so interesting. It is so dynamic. My other favorite thing is to hear the voice of our vendors' customers. And we could to >>Do that. I always love to have the customer on you get you get right to the heart of the matter. Yeah. Really understand. You know, what I like to do is sort of when I listen to the keynotes, try to see how well it aligns with what the customers are actually doing. Yeah. So let's >>Do it. We're gonna unpack that now. Michael Fagan joins us, the Chief Transformation Officer at Village Roadshow. Welcome Michael. It's great to have you >>And thank you. It's a pleasure to be here. >>So this is a really interesting entertainment company. I find the name interesting, but talk to us a little bit about Village Roadshow so the audience gets an understanding of all of the things that you guys do cuz theme parks is part of >>This. Yeah, so Village Road show's Australia's largest cinema exhibitor in conjunction with our partners at event. We also own and operate Australia's largest theme parks. We have Warner Brothers movie World, wet and Wild. SeaWorld Top Golf in Australia is, is operated by us plus more. We also do studio, we also own movie studios, so Aquaman, parts of the Caribbean. We're, we're filming our movie studios Elvis last year. And we also distribute and produce movies and TV shows. Quite diverse group. >>Yeah, you guys have won a lot of awards. I mean, I don't know, academy Awards, golden Globe, all that stuff, you know, and so it's good. Congratulations. Yeah. >>Thank you. >>Cool stuff. I wanna also, before we dig into the use case here, talk to us about the role of a chief transformation officer. How long have you been in that role? What does it encompass and what do you get to drive from a transformation perspective? Yeah, >>So the, the, the nature and pace of disruption is accelerating and on, on one side. And then on the other side, the running business as usual is becoming increasingly complex and, and more difficult to do. So running both simultaneously and at pace can put organizations at risk, both financially and and other ways. So in my role as Chief Transformation officer, I support the rest of the executive team by giving them additional capacity and also bring capability to the team that wasn't there before. So I do a lot of strategic and thought leadership. There's some executive coaching in there, a lot of financial modeling and analysis. And I believe that when a transformation role in particularly a chief transformation role is done correctly, it's a very hands-on role. So there's certain things where I, I dive right down and I'm actually hands in, hands-on leading teams or leading pieces of work. So I might be leading particular projects. I tried to drive profit revenue and profitability across the divisions and does any multi or cross-divisional opportunities or initiative, then I will, I will lead those. >>The transformation, you know, a while ago was cloud, right? Okay, hey, cloud and transformation officers, whether or not they had that title, we'll tell you, look, you gotta change the operating model. You can't just, you know, lift and shift in the cloud. That's, you know, that's pennies. We want, you know, big bucks. That's the operating. Now it's, I'm my question is, is did the pandemic just accelerate your transformation or, or was it, you know, deeper than that? >>Yeah, so what in my role have both digital and business transformation, some of it has been organizational. I think the pandemic has had a, a significant and long lasting effect on society, not just on, on business. So I think if you think about how work work used to be a, a place you went to and how it was done beforehand, before the, before COVID versus now where, you know, previously, you know, within the enterprise you had all of the users, you had all of the applications, you had all of the data, you had all of the people. And then since March, 2020, just overnight, that kind of inverted and, you know, you had people working from home and a person working from home as a branch office of one. So, so we ended up with another thousand branches literally overnight. A lot of the applications that we use are now SASS or cloud-based, whether that's timekeeping with Kronos or communica employee communication or work Jam. So they're not sitting within our data center, they're not sitting within, within our enterprise. It's all external. >>So from a security perspective, you obviously had to respond to that and we heard a lot about endpoint and cloud security and refactoring the network and identity. These guys aren't really an identity. They partner for that, but still a lot of change in focus that the CISO had to deal with. How, how did you guys respond to that? And, and you had a rush to do it. Yeah. And so as you sit back now, where do you go from here? >>Well we had, we had two major triggers for our, our network and security transformation. The first being COVID itself, and then the second beam, we had a, a major MPLS telco renewal that came up. So that gave you an opportunity to look at what we were doing and essentially our network was designed for a near, that no longer exists for when, for when p like I said, when people, when people were from home, all the applications were inside. So, and we had aging infrastructure, our firewalls were end of life. So initially we started off with an SD WAN at the SD WAN layer and an SD WAN implementation. But when we investigated and saw the security capabilities that are available now, we that to a full sassy WAN implementation. >>Why Palo Alto Networks? Because you, you had, you said you had an aging infrastructure designed for an era that doesn't exist anymore, but you also had a number of tools. We've been talking about a consolidation a lot the last couple days. Yeah. How did, what did you consolidate and why with Palo Alto? >>So we had a great partner in Australia, incidentally also called Cube. Cube Networks. Yeah. That we worked with great >>Names. Yeah, right. >>So we, so we, we worked for Cube. We ran a, a form of tender process. And Palo Alto with, you know, Prisma access and Global Global Protect was the only, the only solution that gave us everything that we needed in terms of network modernization, the agility that we required. So for example, in our theme part, we want to send out a hotdog cart or an ice cream cart, and that becomes, all of a sudden you got a new branch that I want to spin up this branch in 10 minutes and then I wanna spin it back down again. So from agility perspective, from a flexibility perspective, the security that, that we wanted, you know, from a zero trust perspective, and they were the only, certainly from a zero trust perspective, they're probably the only vendor that, that exists that, that actually provided the, the, all those capabilities. >>And did you consolidate tools or you were in the process of consolidating tools now? >>Yeah, so we actually, we actually consolidated down to, to, to a, to a single vendor. And in my previous role I had, I had implemented SD WAN before and you know, interoperability is a, is a major issue in the IT industry. I think there's, it's probably the only industry in the, the only industry I can think of certainly that where we, we ship products that aren't ready. They're not of all the features, they, they don't have all the features that they should have. They're their plans. They were releasing patches, releasing additional features every, every couple of months. So, you know, if you, if if Ford sold the card, I said, Hey, you're gonna give you backseats in a couple of months, they'd be uproar. But, but we do that all the time in, in it. So I had, when I previously implemented an Sdwan transformation, I had products from two tier one vendors that just didn't talk to one another. And so when I went and spoke to those vendors, they just went, well, it's not me. It's clearly, clearly those guys. So, so there's a lot to be said for having a, you know, a champion team rather than a team of champions. And Palo Alto have got that full stack fully integrated that was, you know, exactly meant what we were looking for. >>They've been talking a lot the last couple days about integration and it, and I've talked with some of their executives and some analysts as well, including Dave about that seems to be a differentiator for them because they really focus on that. Their m and a strategy is very, it seems to be very clear and there's purpose on that backend integration instead of leaving it to the customer, like Village Road show to do it. They also talked a lot about the consolidation. I'm just curious, Michael, in terms of like what you've heard at the show in the last couple of days. >>Yeah, I mean I've been hearing to same mess, but actually we've, we've lived in a >>You're living it. That's what I wanted to >>Know. So, so, you know, we had a choice of, you know, do you try and purchase so-called best of breed products and then put a lot of effort into integrating them and trying to get them to work, which is not really what we want to spend time doing. I don't, I don't wanna be famous for, you know, integration and, you know, great infrastructure. I want to be, I want Village to be famous for delivering great experiences to our customers. Memories that last a lifetime. And you know, when kids grow up in Australia, they, everybody remembers going to the theme parks. That's what, that's what I want our team to be doing and to be delivering those great experiences, not to be trying to plug together bits of software and it may or may not work and have vendors pointing at one another and then we are left carrying the cannon and holding the >>Baby. So what was the before and after, can you give us a sense as to how life changed, you know, pre that consolidation versus post? >>Yeah, so our, our, our infrastructure, say our infrastructure was designed for, you know, the, you know, old ways of working where we had you knowm routers that were, you know, not designed for cloud, for modern traffic, including cloud Destin traffic, an old MPLS network. We used to back haul all the traffic from, from our branches back to central location run where we've got, you know, firewall walls, we've got a dmz, we could run advanced inspection services on that. So if you had a branch that wanted to access a website that was housed next door, even if it was across the country, then it would, we would pull that all the way back to Melbourne. We would apply advanced inspection services to it, send it up to the cloud out back across the country. Traffic would come back, come down to us, back out to our branch. >>So you talk about crossing the country four times, even at the website is, is situated next door now with, with our sasi sdwan transformation just pops out to the cloud now straight away. And the, the difference in performance for our, for our team and for our customers, it, it's phenomenal. So you'll talk about saving minutes, you know, on a log on and, and seconds then and on, on an average transaction and second zone sound like a lot. But when you, it's every click up, they're saving a second and add up. You're talking about thousands of man hours every month that we've saved. >>If near Zuke were sitting right here and said, what could we do better? You know, what do you need from us that we're not delivering today that you want to, you want us to deliver that would change your life. Yeah, >>There's two things. One, one of which I think they're all, they're already doing, but I actually haven't experienced myself. It's around the autonomous digital experience management. So I've now got a thousand users who are sitting at home and they've got, when they've got a problem, I don't know, is it, is it my problem or is it their problem? So I know that p were working on a, an A solution that digital experience solution, which can actually tell, well actually know you're sitting in your kitchen and your routes in your front room, maybe you should move closer to the route. So there, there they, that's one thing. And the second thing is using AI to tell me things that I wouldn't be able to figure out with a human training. A lot of time sifting through data. So things like where I've potentially overcompensated and, you know, overdelivered on the network and security side or of potentially underdelivered on a security side. So having AI to, you know, assess all of those millions and probably billions of, you know, transactions and packets that are moving around our network and say, Hey, you could optimize it more if you, if you dial this down or dial this up. >>So you said earlier we, this industry has a habit of shipping products before, you know they're ready. So based on your experience, seems like, first of all, it sounds like you got a at least decent technical background as well. When do you expect to have that capability? Realistically? When can we expect that as an industry? >>I think I, I think, like I said, the the rate and nature of change is, is, I think it's accelerating. The halflife of degree is short. I think when I left university, what I, what I learned in first year was, was obsolete within five years, I'd say now it's probably obsolete of you. What'd you learn in first year? It's probably obsolete by the time you finish your degree. >>Six months. Yeah, >>It's true. So I think the, the, the rate of change and the, the partnership that I see Palo building with the likes of AWS and Google and that and how they're coming together to, to solve, to jointly solve these problems is I think we will see this within 12 months. >>Who, who are your clouds? You got multiple clouds >>Or We got multiple clouds. Mostly aws, but there are certain things that we run that run in run in Azure as well. We, we don't really have much in GCP or, or, or some of the other >>Azure for collaboration and teams, stuff like that. >>Ah, we, we run, we run SAP that's we hosted in, in Azure and our cinema ticketing system is, is was run in Azure. It's, it was only available in, in in Azure the time we're mo we are mostly an AWS >>Shop. And what do you do with aws? I mean, pretty much everything else is >>Much every, everything else, anything that's customer facing our websites, they give us great stability. Great, great availability, great performance, you know, we've had and, and, and, and a very variable as well. So, we'll, you know, our, our pattern of selling movie tickets is typically, you know, fairly flat except when, you know, there's a launch of a, of a new movie. So all of a sudden we might say you might sell, you know, at 9:00 AM when, you know, spider-Man went on sale last year, I think we sold 100 times the amount of tickets in the forest, 10 minutes. So our website didn't just scale look beautifully, just took in all of that extra traffic scale up. We're at only any intervention and then scale back down >>Taylor Swift needs that she does need that. So yeah. And so is your vision to have Palo Alto networks security infrastructure have be a common sort of layer across those clouds and maybe even some on-prem? Is it, are you, are you working toward that? Yeah, >>We, yeah, we, yeah, we, we'd love to have, you know, our end, our end customers don't really care about the infrastructure that we run. They won't be >>Able to unless it breaks. >>Unless it breaks. Yeah. They wanna be able to go to see a movie. Do you wanna be able to get on a rollercoaster? They wanna be able to go, you know, play around around a top golf. So having that convergence and that seamless integration of working across cloud network security now for most of our team, they, they don't know and they don't need to know. In fact, I, I frankly don't want them to know and be, be thinking about networks and clouds. I kind of want them thinking about how do we sell more cinema tickets? How do we give a great experience to our guests? How do we give long lasting lifetime memories to, to the people who come visit our parks? >>That's what they want. They want that experience. Right. I'd love to get your final thoughts on, we, we had you give a great overview of the ch the role that you play as Chief transformation officer. You own digital transformation, you want business transformation. What advice would you give to either other treat chief transformation officers, CISOs, CSOs, CEOs about partnering, what's the right partner to really improve your security posture? >>I think there's, there's two things. One is if you haven't looked at this in the last two years and made some changes, you're outta date. Yeah. Because the world has changed. We've seen, I mean, I've heard somebody say it was two decades worth of, I actually think it's probably five 50 years worth of change in, in Australia in terms of working habits. So one, you need to do something. Yeah. Need to, you need to have a look at this. The second thing I think is to try and partner with someone that has similar values to your organization. So Village is a, it's a wonderful, innovative company. Very agile. So the, like the, the concept of gold class cinema, so, you know, big proceeds, recliners, waiter service, elevated foods concept that, that was invented by village in 1997. Thank you. And we had thanks finally came to the states so decade later, I mean we would've had the CEO of every major cinema chain in the world come to come to Melbourne and have a look at what Village is doing and go, yeah, we're gonna export that back around around the world. It's probably one of, one of Australia's unknown exports. Yeah. So it's, yeah, so, so partnering. So we've got a great innovation history and we'd like to think of ourselves as pretty agile. So working with partners who are, have a similar thought process and, and managed to an outcome and not to a contract Yeah. Is, is important for us. >>It's all about outcomes. And you've had some great outcomes, Michael, thank you for joining us on the program, walking us through Village Roadshow, the challenges that you had, how you tackled them, and, and next time I think I'm in a movie theater and I'm in reclining chair, I'm gonna think about you and village. So thank you. We appreciate your insights, your time. Thank you. Thanks Michael. For Michael Fagan and Dave Valante. I'm Lisa Martin. You've been watching The Cube. Our live coverage of Palo Alto Networks. Ignite comes to an end. We thank you so much for watching. We appreciate you. You're watching the Cube, the leader in live enterprise and emerging emerging tech coverage next year. >>Yeah.

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, F otc. A friend of the Cube >>Karala joins us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with >>You. A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long-term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many days, zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add, they're the gold standard from a data standpoint. And that's given them this competitive advantage to go out and become a platform for security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Estee win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? >>Exactly. Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking with the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my question. That's the point I'm saying. Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets win. >>Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their >>Valuable? You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development in Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Naira was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. Well, >>And I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Alto's made, they've done a good job of integrating the backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty and all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data lake to, to fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want or >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Think about that at that. That makes, >>I mean that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market >>Cap. Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo >>Go, right? And that when you look around the show floor, it's not that impressive. No. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's, I mean, pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah. >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something that I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people of Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR round table said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. No. >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate says nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's just an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, and The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they gotta do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you're gonna fight fire with fire. And I think that's, that's the path they've, they've headed >>Down. Yeah. The bad guys are hiding in plain sight, you know? Yeah, >>Yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says who are actively consolidating vendors, redundant vendors today that number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I, I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily aligned with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to the IT pros is, is if you're doing things today that aren't resume building, stop doing them. Right. Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. So who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah, yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with prox as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at csca, throw 'em back at 'em. So I, it's good to see that kind of fight going on between the >>Two. Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah, Cisco's interesting. And I I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration and that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of Rick there trying to, to tie to network. >>Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wi KeePon. Lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are gonna be next? Are you gonna be on >>Vacation? There's nothing more fun than mean on the cube. So what's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and be the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We love >>It. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show. And it, it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>>The cube presents Ignite 22, brought to you by Palo Alto Networks. >>Good morning. Live from the MGM Grand. It's the cube at Palo Alto Networks Ignite 2022. Lisa Martin here with Dave Valante, day two, Dave of our coverage, or last live day of the year, which I can't believe, lots of good news coming out from Palo Alto Networks. We're gonna sit down with its Chief product officer next and dissect all of that. >>Yeah. You know, oftentimes in, in events like this, day two is product day. And look, it's all about products and sales. Yeah, I mean those, that's the, the, the golden rule. Get the product right, get the sales right, and everything else will take care of itself. So let's talk product. >>Yeah, let's talk product. Lee Claridge joins us, the Chief Product Officer at Palo Alto Networks. Welcome Lee. Great to have >>You. Thank you so much. >>So we didn't get to see your keynote yesterday, but we heard one of the things, you know, we've been talking about the threat landscape, the challenges. We had Unit 42, Wendy on yesterday. We had Nash on and near talking about the massive challenges in the threat landscape. But we understand, despite that you are optimistic. I am. Talk about your optimism given the massive challenges that every organization is facing today. >>Look, cybersecurity's hard and often in cybersecurity in the industry, a lot of people get sort of really focused on what the threat actors are doing, why they're successful. We investigate breaches and we think of it, it just starts to feel somewhat overwhelming for a lot of folks. And I just happen to think a little bit differently. I, I look at it and I think it's actually a solvable problem. >>Talk about cyber resilience. How does Palo Alto Networks define that and how does it help customers achieve that? Cuz that's the, that's the holy grail these days. >>Yes. Look, the, the way I think about cyber resilience is basically in two pieces. One, it's all about how do we prevent the threat actors from actually being successful in the first place. Second, we also have to be prepared for what happens if they happen to find a way to get through, and how do we make sure that that happens? The blast radius is, is as narrowly contained as possible. And so the, the way that we approach this is, you know, I, I kind of think in terms of like threes three core principles. Number one, we have to have amazing technology and we have to constantly be, keep keeping up with and ideally ahead of what attackers are doing. It's a big part of my job as the chief product officer, right? Second is we, you know, one of the, the big transformations that's happened is the advent of, of AI and the opportunity, as long as we can do it, a great job of collecting great data, we can drive AI and machine learning models that can start to be used for our advantage as defenders, and then further use that to drive automation. >>So we take the human out of the response as much as possible. What that allows us to do is actually to start using AI and automation to disrupt attackers as it's happening. The third piece then becomes natively integrating these capabilities into a platform. And when we do that, what allows us to do is to make sure that we are consistently delivering cybersecurity everywhere that it needs to happen. That we don't have gaps. Yeah. So great tech AI and automation deliver natively integrated through platforms. This is how we achieve cyber resilience. >>So I like the positivity. In fact, Steven Schmidt, who's now the CSO of, of Amazon, you know, Steven, and it was the CSO at AWS at the time, the first reinforced, he stood up on stage and said, listen, this narrative that's all gloom and doom is not the right approach. We actually are doing a good job and we have the capability. So I was like, yeah, you know, okay. I'm, I'm down with that. Now when I, my question is around the, the portfolio. I, I was looking at, you know, some of your alternatives and options and the website. I mean, you got network security, cloud security, you got sassy, you got capp, you got endpoint, pretty much everything. You got cider security, which you just recently acquired for, you know, this whole shift left stuff, you know, nothing in there on identity yet. That's good. You partner for that, but, so could you describe sort of how you think about the portfolio from a product standpoint? How you continue to evolve it and what's the direction? Yes. >>So the, the, the cybersecurity industry has long had this, I'm gonna call it a major flaw. And the major flaw of the cybersecurity industry has been that every time there is a problem to be solved, there's another 10 or 20 startups that get funded to solve that problem. And so pretty soon what you have is you're, if you're a customer of this is you have 50, a hundred, the, the record is over 400 different cybersecurity products that as a customer you're trying to operationalize. >>It's not a good record to have. >>No, it's not a good record. No. This is, this is the opposite of Yes. Not a good personal best. So the, so the reason I start there in answering your question is the, the way that, so that's one end of the extreme, the other end of the extreme view to say, is there such a thing as a single platform that does everything? No, there's not. That would be nice. That was, that sounds nice. But the reality is that cybersecurity has to be much broader than any one single thing can do. And so the, the way that we approach this is, is three fundamental areas that, that we, Palo Alto Networks are going to be the best at. One is network security within network security. This includes hardware, NextGen, firewalls, software NextGen, firewalls, sassy, all the different security services that tie into that. All of that makes up our network security platforms. >>So everything to do with network security is integrated in that one place. Second is around cloud security. The shift to the cloud is happening is very real. That's where Prisma Cloud takes center stage. C a P is the industry acronym. If if five letters thrown together can be called an acronym. The, so cloud native application protection platform, right? So this is where we bring all of the different cloud security capabilities integrated together, delivered through one platform. And then security, security operations is the third for us. This is Cortex. And this is where we bring together endpoint security, edr, ndr, attack, surface management automation, all of this. And what we had, what we announced earlier this year is x Im, which is a Cortex product for actually integrating all of that together into one SOC transformation platform. So those are the three platforms, and that's how we deliver much, much, much greater levels of native integration of capabilities, but in a logical way where we're not trying to overdo it. >>And cider will fit into two or three >>Into Prisma cloud into the second cloud to two. Yeah. As part of the shift left strategy of how we secure makes sense applications in the cloud >>When you're in customer conversations. You mentioned the record of 400 different product. That's crazy. Nash was saying yesterday between 30 and 50 and we talked with him and near about what's realistic in terms of getting organizations to, to be able to consolidate. I'd love to understand what does cybersecurity transformation look like for the average organization that's running 30 to 50 point >>Solutions? Yeah, look, 30 to 50 is probably, maybe normal. A hundred is not unusual. Obviously 400 is the extreme example. But all of those are, those numbers are too big right now. I think, I think realistic is high. Single digits, low double digits is probably somewhat realistic for most organizations, the most complex organizations that might go a bit above that if we're really doing a good job. That's, that's what I think. Now second, I do really want to point out on, on the product guy. So, so maybe this is just my way of thinking, consolidation is an outcome of having more tightly and natively integrated capabilities. Got you. And the reason I flip that around is if I just went to you and say, Hey, would you like to consolidate? That just means maybe fewer vendors that that helps the procurement person. Yes. You know, have to negotiate with fewer companies. Yeah. Integration is actually a technology statement. It's delivering better outcomes because we've designed multiple capabilities to work together natively ourselves as the developers so that the customer doesn't have to figure out how to do it. It just happens that by, by doing that, the customer gets all this wonderful technical benefit. And then there's this outcome sitting there called, you've just consolidated your complexity. How >>Specialized is the customer? I think a data pipelines, and I think I have a data engineer, have a data scientists, a data analyst, but hyper specialized roles. If, if, let's say I have, you know, 30 or 40, and one of 'em is an SD wan, you know, security product. Yeah. I'm best of breed an SD wan. Okay, great. Palo Alto comes in as you, you pointed out, I'm gonna help you with your procurement side. Are there hyper specialized individuals that are aligned to that? And how that's kind of part A and B, how, assuming that's the case, how does that integration, you know, carry through to the business case? So >>Obviously there are specializations, this is the, and, and cybersecurity is really important. And so there, this is why there had, there's this tendency in the past to head toward, well I have this problem, so who's the best at solving this one problem? And if you only had one problem to solve, you would go find the specialist. The, the, the, the challenge becomes, well, what do you have a hundred problems to solve? I is the right answer, a hundred specialized solutions for your a hundred problems. And what what I think is missing in this approach is, is understanding that almost every problem that needs to be solved is interconnected with other problems to be solved. It's that interconnectedness of the problems where all of a sudden, so, so you mentioned SD wan. Okay, great. I have Estee wan, I need it. Well what are you connecting SD WAN to? >>Well, ideally our view is you would connect SD WAN and branch to the cloud. Well, would you run in the cloud? Well, in our case, we can take our SD wan, connect it to Prisma access, which is our cloud security solution, and we can natively integrate those two things together such that when you use 'em together, way easier. Right? All of a sudden we took what seemed like two separate problems. We said, no, actually these problems are related and we can deliver a solution where those, those things are actually brought together. And that's just one simple example, but you could, you could extend that across a lot of these other areas. And so that's the difference. And that's how the, the, the mindset shift that is happening. And, and I I was gonna say needs to happen, but it's starting to happen. I'm talking to customers where they're telling me this as opposed to me telling them. >>So when you walk around the floor here, there's a visual, it's called a day in the life of a fuel member. And basically what it has, it's got like, I dunno, six or seven different roles or personas, you know, one is management, one is a network engineer, one's a coder, and it gives you an X and an O. And it says, okay, put the X on things that you spend your time doing, put the o on things that you wanna spend your time doing a across all different sort of activities that a SecOps pro would do. There's Xs and O's in every one of 'em. You know, to your point, there's so much overlap going on. This was really difficult to discern, you know, any kind of consistent pattern because it, it, it, unlike the hyper specialization and data pipelines that I just described, it, it's, it's not, it, it, there's way more overlap between those, those specialization roles. >>And there's a, there's a second challenge that, that I've observed and that we are, we've, we've been trying to solve this and now I'd say we've become, started to become a lot more purposeful in, in, in trying to solve this, which is, I believe cybersecurity, in order for cyber security vendors to become partners, we actually have to start to become more opinionated. We actually have to start, guys >>Are pretty opinionated. >>Well, yes, but, but the industry large. So yes, we're opinionated. We build these products, but that have, that have our, I'll call our opinions built into it, and then we, we sell the, the product and then, and then what happens? Customer says, great, thank you for the product. I'm going to deploy it however I want to, which is fine. Obviously it's their choice at the end of the day, but we actually should start to exert an opinion to say, well, here's what we would recommend, here's why we would recommend that. Here's how we envisioned it providing the most value to you. And actually starting to build that into the products themselves so that they start to guide the customer toward these outcomes as opposed to just saying, here's a product, good luck. >>What's, what's the customer lifecycle, not lifecycle, but really kind of that, that collaboration, like it's one thing to, to have products that you're saying that have opinions to be able to inform customers how to deploy, how to use, but where is their feedback in this cycle of product development? >>Oh, look, my, this, this is, this is my life. I'm, this is, this is why I'm here. This is like, you know, all day long I'm meeting with customers and, and I share what we're doing. But, but it's, it's a, it's a 50 50, I'm half the time I'm listening as well to understand what they're trying to do, what they're trying to accomplish, and how, what they need us to do better in order to help them solve the problem. So the, the, and, and so my entire organization is oriented around not just telling customers, here's what we did, but listening and understanding and bringing that feedback in and constantly making the products better. That's, that's the, the main way in which we do this. Now there's a second way, which is we also allow our products to be customized. You know, I can say, here's our best practices, we see it, but then allowing our customer to, to customize that and tailor it to their environment, because there are going to be uniquenesses for different customers in parti, we need more complex environments. Explain >>Why fire firewalls won't go away >>From your perspective. Oh, Nikesh actually did a great job of explaining this yesterday, and although he gave me credit for it, so this is like a, a circular kind of reference here. But if you think about the firewalls slightly more abstract, and you basically say a NextGen firewalls job is to inspect every connection in order to make sure the connection should be allowed. And then if it is allowed to make sure that it's secure, >>Which that is the definition of an NextGen firewall, by the way, exactly what I just said. Now what you noticed is, I didn't describe it as a hardware device, right? It can be delivered in hardware because there are environments where you need super high throughput, low latency, guess what? Hardware is the best way of delivering that functionality. There's other use cases cloud where you can't, you, you can't ship hardware to a cloud provider and say, can you install this hardware in front of my cloud? No, no, no. You deployed in a software. So you take that same functionality, you instantly in a software, then you have other use cases, branch offices, remote workforce, et cetera, where you say, actually, I just want it delivered from the cloud. This is what sassy is. So when I, when I look at and say, the firewall's not going away, what, what, what I see is the functionality needed is not only not going away, it's actually expanding. But how we deliver it is going to be across these three form factors. And then the customer's going to decide how they need to intermix these form factors for their environment. >>We put forth this notion of super cloud a while about a year ago. And the idea being you're gonna leverage the hyperscale infrastructure and you're gonna build a, a, you're gonna solve a common problem across clouds and even on-prem, super cloud above the cloud. Not Superman, but super as in Latin. But it turned into this sort of, you know, superlative, which is fun. But the, my, my question to you is, is, is, is Palo Alto essentially building a common cross-cloud on-prem, presumably out to the edge consistent experience that we would call a super cloud? >>Yeah, I don't know that we've ever used the term surfer cloud to describe it. Oh, you don't have to, but yeah. But yes, based on how you describe it, absolutely. And it has three main benefits that I describe to customers all the time. The first is the end user experience. So imagine your employee, and you might work from the office, you might work from home, you might work while from, from traveling and hotels and conferences. And, and by the way, in one day you might actually work from all of those places. So, so the first part is the end user experience becomes way better when it doesn't matter where they're working from. They always get the same experience, huge benefit from productivity perspective, no second benefit security operations. You think about the, the people who are actually administering these policies and analyzing the security events. >>Imagine how much better it is for them when it's all common and consistent across everywhere that has to happen. Cloud, on-prem branch, remote workforce, et cetera. So there's a operational benefit that is super valuable. Third, security benefit. Imagine if in this, this platform-based approach, if we come out with some new amazing innovation that is able to detect and block, you know, new types of attacks, guess what, we can deliver that across hardware, software, and sassi uniformly and keep it all up to date. So from a security perspective, way better than trying to figure out, okay, there's some new technology, you know, does my hardware provider have that technology or not? Does my soft provider? So it's bringing that in to one place. >>From a developer perspective, is there a, a, a PAs layer, forgive me super PAs, that a allows the developers to have a common experience across irrespective of physical location with the explicit purpose of serving the objective of your platform. >>So normally when I think of the context of developers, I'm thinking of the context of, of the people who are building the applications that are being deployed. And those applications may be deployed in a data center, increasing the data centers, depending private clouds might be deployed into, into public cloud. It might even be hybrid in nature. And so if you think about what the developer wants, the developer actually wants to not have to think about security, quite frankly. Yeah. They want to think about how do I develop the functionality I need as quickly as possible with the highest quality >>Possible, but they are being forced to think about it more and more. Well, but anyway, I didn't mean to >>Interrupt you. No, it's a, it is a good, it's a, it's, it's a great point. The >>Well we're trying to do is we're trying to enable our security capabilities to work in a way that actually enables what the developer wants that actually allows them to develop faster that actually allows them to focus on the things they want to focus. And, and the way we do that is by actually surfacing the security information that they need to know in the tools that they use as opposed to trying to bring them to our tools. So you think about this, so our customer is a security customer. Yet in the application development lifecycle, the developer is often the user. So we, we we're selling, we're so providing a solution to security and then we're enabling them to surface it in the developer tools. And by, by doing this, we actually make life easier for the developers such that they're not actually thinking about security so much as they're just saying, oh, I pulled down the wrong open source package, it's outdated, it has vulnerabilities. I was notified the second I did it, and I was told which one I should pull down. So I pulled down the right one. Now, if you're a developer, do you think that's security getting your way? Not at all. No. If you're a developer, you're thinking, thank god, thank you, thank, thank you. Yeah. You told me at a point where it was easy as opposed to waiting a week or two and then telling me where it's gonna be really hard to fix it. Yeah. Nothing >>More than, so maybe be talking to Terraform or some other hash corp, you know, environment. I got it. Okay. >>Absolutely. >>We're 30 seconds. We're almost out of time. Sure. But I'd love to get your snapshot. Here we are at the end of calendar 2022. What are you, we know you're optimistic in this threat landscape, which we're gonna see obviously more dynamics next year. What kind of nuggets can you drop about what we might hear and see in 23? >>You're gonna see across everything. We do a lot more focus on the use of AI and machine learning to drive automated outcomes for our customers. And you're gonna see us across everything we do. And that's going to be the big transformation. It'll be a multi-year transformation, but you're gonna see significant progress in the next 12 months. All >>Right, well >>What will be the sign of that progress? If I had to make a prediction, which >>I'm better security with less effort. >>Okay, great. I feel like that's, we can measure that. I >>Feel, I feel like that's a mic drop moment. Lee, it's been great having you on the program. Thank you for walking us through such great detail. What's going on in the organization, what you're doing for customers, where you're meeting, how you're meeting the developers, where they are. We'll have to have you back. There's just, just too much to unpack. Thank you both so much. Actually, our pleasure for Lee Cler and Dave Valante. I'm Lisa Martin. You're watching The Cube Live from Palo Alto Networks Ignite 22, the Cube, the leader in live, emerging and enterprise tech coverage.

>>Hello, brilliant cloud community and welcome back to AWS Reinvent, where we are live all day every day. From the show floor here in Las Vegas, Nevada. I'm Savannah Peterson, joined by my beautiful cohost Lisa Martin here on the cube. Lisa, you're smiling. You're radiating Day three. You would think it was day one. How you doing? >>Amazing. I can't believe the energy that has been maintained omni show floor since Monday night at 4:00 PM >>I know. And I, I kind of thought today we might see some folks trickling out. It is packed as our, as our guests and I were, we were all just talking about right before the segment, almost two packed, which is a really great sign for aws. It is. We're >>Hearing worth of 55,000 people here. And of course we only get a, a little snapshot of which literally >>This corner, >>We don't get to see anything else around the strip that's going on. So it's massive. Yeah, >>It is a very massive, I'm super excited. We've got two guests from Infosys with us on this last segment from this stage today. David and Anant, welcome to the show. How you doing? >>Awesome. >>You're both smiling and I am really excited. We have our first prop of the show and it's a pretty flashy, sexy prop. Anant, what's going on here? >>Oh, so this is something that we are very proud of. Last year we won one award, which was very special for us because it was our first award with aws and that was the industry partner of the year award. And on the back of that, this year we won three awards. And this is super awesome for us because all of them are very special. One was in collaboration, second was in design, and third was in sustainability. So we are very proud and we thank AWS and it's a fantastic partnership. Yeah. And >>Congratulations. Yes. I mean that's >>Huge. Yes, it's absolutely huge. And the second one is we are the launch partner for msk, which again is a very proud thing for us. So I think those are the two things that we wanted to talk about. >>How many awards are you gonna win next year then? >>Do you want to target more than three? >>So we keep going up probably fine, >>Right? I >>Love, >>That's the odd numbers. 1, 3, 5, 7, 10. There you go. >>Yeah, >>I think you, we got that question last year and we said we get two and we ended up overdelivering with three. So who >>Knows? Hey, nothing. Nothing wrong with the setting the bar low and clearing it and I mean, not setting it low, setting it with one and clearing it with three is pretty fantastic. Yes, yes. We talk about it as an ego thing sometimes with awards and it feels great for internal culture. But David, what does it mean on the partnership side to win awards like that? So >>What's really important for us with our partners is to make sure that we're achieving their goals and when, when their goals are achieved in our partnership, it's just the byproduct that we're achieving our own with our clients. The awards are a great representation of that to see, you know, again, being recognized three in three different categories really shows that we've had success with AWS and in turn, you know, know and not, I can attest to it, we've been very successful with the partnership on our side. >>Yeah. And I bet it's really exciting for the team. Just speaking for energy, are your >>Team sponsor? Absolutely. There's celebration, you know, there's been a few cocktails being raised >>In Las Vegas >>Cocktail. Oh, >>I wouldn't mind one right now to be really be really honest. Let's dig into the, into the product a little bit. Infosys Cobalt, what's the scooping on? >>Yeah, so first of all, we were the first ones to actually launch a cloud brand called Cobalt. Right? We are the first ones in the world. In fact, one of our competitor followed us soon after. So essentially what we did was we brought all our cloud offerings into one brand called Cobalt. It becomes very clear to our customers on what our proposition is. It is very consistent to the market in terms of what our narrative is. And it's little easy for our customers to understand what we bring to the table. So is not one product or one platform. It's a set of services, solutions and platforms that we bring to accelerate customers journey where they're leveraging cloud. So that's what Cobalt is. >>Awesome. Everyone wants to do everything faster. Yes. And Booth was packed. I walked by earlier, it was absolutely buzzing. Yes. >>Yeah. Nobody wants to do it, you know, wants less data slower. Yes. Always more faster. More faster. And we're living in this explosion unlike anything, this swarm of data, unlike anything that we've ever seen before. Yes. Every company, regardless of industry, has to be a data company. Yes. But they have to be able to work with the right partners. Absolutely. To extract, to first of all, harness all that data. Yes. Extract insights in real time. Yes. Because of course, on the consumer side, we're not patient anymore. Yes. We expect a personalized, real time custom experience. Absolutely. How do you work with AWS to help deliver that and how do the partners help deliver that as well? >>Well, I'll start with on the partner side of it. You walk through the hallways here or down the aisles, you see partners like MongoDB, snowflake, data Bricks and and such. They're all attest their commitment and their strong partnership with aws. And coincidentally, they're also very good partners of our own. And as a result, what >>Big happy family here at AWS when you >>Met? Yes, and this, this is something that I'm, I'm calling coining the phrase sub ecosystems. These are partnerships where one is successful with each other and then the three come together and we go together with an integrated solution. And it's really taking off. It's something that's really powerful. The, the fun thing about, you know, reinvent here is it's just that we're having amazing discussions with our clients and aws, but we're also having it with the other partners here about how we can all work together. So, and data analytics is a big one. Security is another hot one. This is huge. >>Yeah. Optimization. >>The absolutely. And I, and Ruba was saying this, right? Ruba said like she was giving example of a marathon or Marathon is not a single man or a single woman sport. Right? So similarly cloud journey is a team's sort of, you know, team journey. Yeah. So that's why partners play a big role in that and that's exactly what we are trying to do. >>So you guys get to see a lot of different companies across a lot of different industries. We've, we're living in very interesting times. How do you see the cloud evolving? >>Oh yeah. So, so what we did when we launched Cobalt in 2020, we have now evolved our story, we call it Cobalt 2.0. And essentially what we want to do was to focus on industry clouds. So it's not just about taking a workload and doing it from point A to point B or moving data to cloud or getting out of data centers, but also being very specific to the industry that this specific customer belongs to. Right? So for example, if you go to banking, they would say, we want to better our security posture. If you go to a retailer, they want to basically have smart stores. If we go to a manufacturing customer, they want to have a smart factory. So we want to make sure that there are specific industry blueprints and specific reference architectures that we bring and start delivering outcomes. So we have, we call it something called, >>I know you're hot on business outcomes. Yes, yes. >>So we call it something called the link of life forces. So there are six technologies, cloud, data Edge, iot, 5g, and ai. They will come together to deliver business outcomes. So that's where we are heading with Cobalt 2.0. And that's essentially what we want to do with our customers. >>That's a lot to think about. Yes. And yeah, go for it. >>David. I just say from a partnering perspective, you know, prior to cloud we were talking about transactional type businesses where if you ask a technology company who their partner is, is generally a reseller where they're just basically taking one product and selling it to their, their client. What's happened with cloud now, it's not about the transaction up front, it's about the, the actual, you know, the consumption of the technology and the bringing together all of these to form an outcome. It changes the model dramatically. And, and quite honestly, you know, the global system integrators like emphasis are in a great position cuz we can pull that together to the benefit our of our partners put our own secret sauce around it and take these solutions to market and drive consumption. Cuz that's what the cloud's all about. >>Absolutely. Right. How are you helping customers really treat cloud as a strategic focus? You know, we, we often hear companies talk about we're we're cloud first. Well, not everything belongs in the cloud. So then we hear companies start talking about being cloud smart. Yes. How are you helping? And so we'll go with that. How are you helping enterprises really become cloud smart and where is the partner angle? So we'll start with you and then we'll bring the partner angle in. >>Sure. Oh yeah, big time. I think one of the things that we have been educating our customers is cloud is not about cost takeout. So cloud is about innovation, cloud is about growth. And I'll give two examples. One of one of the beauty products companies, they wanted to set up their shop in us and they said that, you know, we don't have time to basically buy the infrastructure, implement an er p platform and you know, or roll it out, test it, and go into production. We don't have so much time, time to market is very important for us. And they embarked on the cloud journey. So expanding into new market cloud can play a big role. That is one of the ways to expand and, you know, grow your business. Similarly, there is another company that they, they wanted to get into retail banking, right? And they didn't have years to launch a product. So they actually use AWS and it's a joint infos and AWS customer, a pretty big bank. They launched into, they launched retail banking and they did it in less than six months. So I think these are some of the examples of, wow, it's Snap Cloud not being cost takeout, but it's about innovation and growth. So that's what we are trying to tell >>Customers. Big impacts, big impact. >>Absolutely. And that's where the, the Cobalt assets come into play as well. We, you know, as as not mentioned, we have literally thousand of these industries specific, and they're derived in, in a lot of cases in, in, in partnership with the, the companies you see down the, the aisles here and, and aws. And it accelerates the, the, the deployments and ensures a accessible adoption more so than before. You know, we, we have clients that are coming to us now that used to buy, run their own procurement. You know, they, they would have literally, there was one bank that came to us with a over a hundred, >>The amount of work. Yeah. >>A list of a hundred products. Some they bought directly from a, a vendor, some they went through a distributor, something went through a, a seller and such. And they're, they're, now they're looking at this in a completely different way. And they're looking to rationalize those, those technologies, again, look for companies that will contract for a business outcome and leverage the cloud and get to that next era. And it's, it's a, it's a fun time. We're really excited. >>I can imagine you, you're really a part of the transformation process for a lot of these companies. Absolutely. And when we were chatting before we went live, you talked about your passion for business outcomes. Can you give us a couple examples of customers or business outcomes that really get you and the team excited? Same thing to you, David, after. Yeah, >>Well, absolutely. Even our contractual structures are now moving into business outcomes. So we are getting paid by the outcomes that we are delivering, right? So one of the insurance customers that we have, we actually get paid by the number of claims that we process, right? Similarly, there is a healthcare customer where we actually get paid by the number of customers that we cater to from a Medicare and Medicaid standpoint, right? >>Tangible results versus >>Projected forecast. Successful process of >>Claims. That's interesting. Exactly. Yeah. I love reality. Yeah, reality. What a novel idea. Yeah. >>One of the great examples you hear about airplane engines now that the model is you don't buy the engine. You basically pay for the hours that it's used and the maintenance and the downtime so that they, you take the risk away. You know, you put that in the context of a traditional business, you're taking away the risk of owning the individual asset, the maintenance, any, any of the issues, the bug fixes. And again, you're, you're partnering with a company like Emphasis will take on that based upon our knowledge and based upon our vast experience, we can confidently contract in that way that, you know, years ago that wasn't possible. >>It's kind of a sharing economy at scale style. >>Exactly. Absolutely. >>Yeah. Which is really exciting. So we have a new challenge here on the cube this year at ve We are looking for your 32nd Instagram real sizzle sound bite, your hot take your thought leadership on the, the biggest theme or most important thing coming out of this year's show. David, we'll start with you. We've been starting with it on, I'm to go to you. We're making eye contact right now, so you're in the hot seat. >>Well, let's, I I think there's a lot of time given to sustainability on the stage this week, and I think that, you know, every, every CEO that we talk to is bringing that up as a major priority and that's a very important element for us as a company and as a service >>Provider. I mean, you're obviously award-winning and the sustainability department. Exactly. >>Yes. Nice little plug there. You know, and I, I think the other things that have come up, we saw a lot about data analytics this week. You know, I think new offerings from aws, but also new partnerships that we're gonna take advantage of. And, and again, security has been a hot topic. >>Absolutely. And not, what's your hot take? >>Yeah. I think one, one very exciting thing for partners like us is the, the reimagining that is being done by rhu for the partners, right? The AWS marketplace. I think that is a big, big thing that I took out. Of course, sustainability is huge. Like Adam said, the fastest way to become sustainable is to move to cloud, right? So rather than overthinking and over-engineering this whole topic, just take your workloads and move it to cloud and you'll be sustainable. Right. So I think that's the second one. And third is of course cyber security. Zscaler, Palo Alto, CrowdStrike. These are some of the big companies that are at the event here. And we have been partnering with them many more. I'm just calling out three names, but many more. I think cyber security is the next one. So I think these are three on top of my mind. >>Just, just a few things you casually think about. That was great, great responses from both of you and David, such a pleasure to have you both with us. We hope to have you back again. You're doing such exciting things. I'm sure that everything we talked about is gonna be a hot topic for many years to come as, as people navigate the future, as well as continue their business transformations. It is always a joy to sit next to you on stage. Likewise. Thank you. And thank all of you wherever you're tuning in from. For joining us here at AWS Reinvent Live from Las Vegas, Nevada, with Lisa Martin. I'm Savannah Peterson. And for the last time today, this is the cube, the leader in high tech coverage.

>>Hey everyone, welcome back. It's the Cube live in Las Vegas. We've been here since Monday covering the event wall to coverage on the cube at AWS Reinvent 22, Lisa Martin here with Dave Ante. Dave, we're hearing consistently north of 50,000 people here. I'm hearing close to 300,000 online. People are back. They are ready to hear from AWS and its ecosystem. Yeah, >>I think 55 is the number I'm hearing. I've been using 50 for 2019, but somebody the other day told me, no, no, it was way more than that. Right, right. Well this feels bigger in >>2019. It does feel bigger. It does feel bigger. And we've had such great conversations as you know, because you've been watching the Cube since Monday night. We're pleased to welcome from Sumo Logic. Lynn Doherty, the president of Worldwide Field Operations. Lynn, welcome to the program. >>Thank you for having me. I'm glad to be here. Talk >>To us about what's going on at Sumo Logic. We cover them. We've been following them for a long time, but what's what's new? >>We have a lot going on at Sumo Logic. What we do is provide solutions for both observability and security. And if you think about the challenges that our customers are facing today, everybody as they're doing this digital transformation is in a situation where the data and the digital exhausts that they have is growing faster than their budgets and especially in what looks like potentially uncertain economic times. And so what we do is enable them to bring that together on a platform so that they can solve both of those problems in a really cost effective way. >>What are some of the things that you're hearing from customers in the field where it relates to Sumo logic and aws? What are they asking for? >>They continue to ask for security and, and I think as everybody goes on that journey of digital transformation and, and I think what's going on now is that there are people who are kind of in wave two of that digital transformation, but security continues to be top of mind. And again, as as our customers are moving into potentially uncertain economic times and they're saying, Hey, I've gotta shore up and, and maybe do smarter things with my budget, cybersecurity is one piece of that that is not falling off the table. That their requirements around security, around audits, around compliance don't go away regardless of what else happens. >>How do you fit in the cloud ecosystem generally? AWS specifically? I think AWS is generally perceived as a more friendly environment for the ecosystem partners. We saw CrowdStrike yesterday, you know, stock got crushed. They had a great quarter, but not as great as they thought it could be. Yeah. And one, some of the analysts were saying, well, it could be Microsoft competition at the low end of the market. Okay. AWS is like the ecosystem partners are really strong in security, lot of places to add value. Where does Sumo Logic >>Fit? Yeah, we are all in with aws. So AWS is our platform of choice. It's the platform that we're built on. It's the only platform that we use. And so we work incredibly closely with aws. In fact, last year we were the first ever AWS ISV partner of the year for as Sumo Logic, which we're not as big as some of the other players, but it just is a testament to the partnership that we have with aws. >>When you're out in the field talking with customers, we talked about some of the challenges there, but where are your customer conversations? You talked about security and cyber as is not falling off the table. In fact, it's, it's rising up the stock, it's a board level conversation. So where are the customer conversations that you're having? Are they, are they at the developer level? Are they higher? Are they at the C-suite? What does that look like? >>Yeah, it's, it's actually at both the developer and the C-suite. And so there's really two motions. The first is around developers and practitioners and people that run security operation centers. And they need tools that are easy to use that integrate in their environment. And so we absolutely work with them as a starting point because if, if they aren't happy with the tools that they have, you know, the customer can't go on that digital transformation, can't have effective application usage. But we also need to talk to C-Suite and that to CIO or a CISO who's really thinking often more broadly about how do we do things as a platform and how do we consolidate some of our tools to rationalize what we're using and really make the most of the budget that we have. And so we come at it from both angles. We call it selling above the line and below the line because both of those are really important people for us to work with. >>Above the line being sort of the business executives, >>Business executives and C-suite executives. And then, but below the line are the actual people who are using the product and using a day to day interacting with the tools. >>So how are those above the line and below the line conversations, you know, different? What, what are the, what are the above the line conversations? What are the sort of keywords that, you know, that resonate? Let's start there. >>Yeah, above the line, there's a lot that's around how do we make the most of the investments that we're making. And so there are no shortage of tools, right? You can look around this AWS floor and see that there are no shortage of tools and software products out there. And so above the line it's how do we make use of the budget that we have and get the most out of the investments we've made and do that in a really smart way. Often thinking about platforms and consolidating tools and, and using the tools and getting full value of what they have below the line. I think it's really how do they have really strong ease of use? How do they get the fastest time to value? Because time to value is really important when you're a practitioner, when you're developing an application, when you're migrating and modernizing an application, having tools that are easy to use and not just give you data but give you insights. And so that's what a conversation with a practitioner for us is, is taking data and turning it into insights that they can use. >>You know, and it seems like we never get rid of stuff in it, but there's a big conversation now when you talk to practitioners, okay, well you got some budget pressures, your sales cycles are elongating. What are you doing about, a lot of 'em are saying, well, we're consolidating and nowhere is that more needed probably than insecurity. So how, how are you seeing that play out in the market? Are you able to take advantage of that as Sumo? >>I think there's the old joke that says there is no ciso. Whoever says, if I just had one more tool, I'd be secure. >>And >>Nobody ever says that it's not one more tool. It's having effective tools and having tools that integrate. And so when I think of Sumo Logic in that space, it's number one, we really integrate with so many different tools out there that give, again, not just security information, but security insights. And so that becomes a really important part of the conversation. What, when you talk about tool consolidation, that's absolutely, I think something that has been a journey that a lot of our customers have been on and probably will be on for the foreseeable future. And so that's a place that we can really help because we have a platform that you can leverage our tool on the DevOps side and on the security side. And that's a conversation that we have a lot with our customers. Are >>You helping bridge those two, the security folks, the dev folks? Cause we talk about Shift left and CISO being involved now. Is Sumo Logic helping from a cultural perspective to bridge those two? >>Yeah, well I think it's a really good point that you make. It's, there's part of it that's a technology challenge and then there's part of it that's a cultural challenge and an organization silo challenge that happens. And so it is something that we try to bring our customers together and often start in one area of the business and help move into other areas and bring them together. It, it also comes down to that data growing faster than budgets and customers can no longer afford to keep multiple copies of the same data, the same metrics, and all of that digital exhaust that comes as they move to the cloud and modernize their applications. And so we bring that together and help them get the most use out of it. >>There are a lot of, we've been talking all week in the cube about sort of adjacencies to security. We've talking about data protections now becoming an adjacency. You know, you talk about resilience within an organization, everybody was sort of caught off guard, obviously with the pandemic, not as resilient as they could have been. So it seems like the scope of security is really expanding. You know, they always say it's, it's a team sport, okay, it's a pro mine, but it's true. Right? Whereas it used to be that guy's problem. Yeah. What are you seeing in terms of that evolution? >>Yeah, I think you're absolutely right. I think the pandemics force some of that faster than was happening, but it's absolutely something that is going on that cybersecurity is now built in from the ground up and I've been in cyber security for years and it's moved from an afterthought or something that comes after the fact, Hey, let's build the application and then we'll worry about security to, it needs to be a secure application from the ground up. And so that is bringing together that dev and SEC ops a lot because it needs to be built in, the security piece needs to be built in from the ground up on the development side. >>Absolutely. The, the threat landscape has changed so much in the last couple of years. Has the fraudsters, bad actors, whatever you wanna call 'em, are getting far more sophisticated. Yeah. So security can't be an afterthought. Can't be a built on. Yeah, it's gotta be integrated, built in from the ground up for organizations to be able to be, as they've said, resilient. We're hearing a lot about resiliency and the importance of it. For any business. >>For any business, it's important for every business. And if you think about how we interact with companies now, our view of a bank isn't the branch, it's the app, our view of office, it's this, right? It's, it's on the phone, it's on digital devices, it's on a website. And so that is your interaction, that is your experience. And so that plays into, is it up, is it running, is it responsive? That application performance piece, but also the security piece of is it secure? Is my data protected? You know, do I have any vulnerability? >>Yeah, you must have, being in field operations, a favorite customer story that you really think defines the value proposition beautifully of Sumo Logic. What story is that? >>Wow, that's a good question. I have a lot of favorite stories. You know, we have customers, for example, gaming customers that maybe aren't able to predict what their usage looks like. And that's something that we really help our customers with is the peaks and valleys. And so we have gaming customers or retail customers that we're able to take their data sources and they may be at one level and go to 10 x in a day without any notice. And we're able to handle that for them. And I think that's something that I'm really proud of is that we don't make that the customer's problem. They're, they're peaks and valleys, they're spikes that may happen seasonally in retail. It's Black Friday sales that are coming up. It's a new game that gets released. It's a new music piece that gets released and they are going to see that, but they don't have to worry about that because of us. And so that really makes me proud that we handle that and take that problem off of their shoulders. I >>See Pokemon on the website, that's a hugely popular >>Game, Pokemon now. Yes. >>Last question for you, we've got about 30 seconds left. If you had a billboard to put up in Denver where you live about Sumo Logic and its impact like an elevator pitch or a phrase that you think really summarizes the impact, what would it >>Say? Yeah, well it's a really good question. I've got it on my shirt. I dunno, it's not for the G-rated, but we fix things faster. Fix shit faster. And so for us that's really, ultimately, it's not just about having information, it's not just about having the data, it's about being able to resolve your problems quickly. And whether that's an application or a security issue, we've gotta be able to fix it faster for our customers and that's what we enable them to do. >>Fix bleep faster. Lynn, it's been a pleasure having you on the program. Thank you so much. Thank you for joining us. Awesome step at Sumo Logic. For our guest and for Dave Ante. I'm Lisa Martin. You're watching The Cube Live from Las Vegas, the leader in live enterprise and emerging tech coverage.

>>Hey everyone, it's Vegas. Welcome back. We know you've been watching all day. We appreciate that. We always love being able to bring you some great content on the Cube Live from AWS Reinvented 22. Lisa Martin here with Paul Gill. And Paul, we've had such a great event. We've, I think we've done nearly 70 interviews since we started on the Cube on >>Monday night. I believe we just hit 70. Yeah, we just hit 70. You must feel like you've done half of >>Them. I really do. But we've been having great conversations. There's so much innovation going on at aws. Nothing slowed them down during the pandemic. We love also talking about the innovation, the flywheel that is their partner ecosystem. We're gonna have a great conversation about that >>Next. And as we've said, going back to day one, the energy of the show is remarkable. And here we are, we're getting late in the afternoon on day two, and there's just as much activity, just as much energy out there as, as the beginning of the first day. I have no doubt day three will be the >>Same. I agree. There's been no slowdown. We've got two guests here. We're gonna have a great conversation. Chuck Kubota joins us, senior Director of Cloud Services, GTM at Red Hat. Great to have you on the program. And Ted Stanton, global head of Sales, red Hat at IBM at aws. Welcome. >>Thanks for having us. >>How's the show going so far for you guys? >>It's a blur. Is it? Oh my gosh. >>Don't they all >>Blur? Well, yes, yes. I actually like last year a bit better. It was half the size. Yeah. And a lot easier to get around, but this is back to normal, so >>It is back to normal. Yeah. And and Ted, we're hearing north of 50,000 in-person attendees. I heard a, something I think was published. I heard the second hand over like 300,000 online attendees. This is maybe the biggest one we ever had. >>Yeah, yeah, I would agree. And frankly, it's my first time here, so I am massively impressed with the overall show, the meeting with partners, the meeting with customers, the announcements that were made, just fantastic. And >>If you remember back to two years ago, there were a lot of questions about whether in-person conferences would ever return and the volume that we used to see them. And that appears to be >>The case. I think we, I think we've answered, I think AWS has answered that for us, which I'm very pleased to see. Talk about some of those announcements. Ted. There's been so much that that's always one of the things we know and love about re men is there's slew of announcements. You were saying this morning, Paul, and then keynote, you lost, you stopped counting after I >>Lost 15, I lost count for 15. I think it was over 30 announcements this morning alone >>Where IBM and Red Hat are concern. What are some of the things that you are excited about in terms of some of the news, the innovation, and where the partnership is going? >>Well, definitely where the partnership is going, and I think even as we're speaking right now, is a keynote going on with Aruba, talking about some of the partners and the way in which we support partners and the new technologies and the new abilities for partners to take advantage of these technologies to frankly delight our customers is really what most excites me. >>Chuck, what about you? What's going on with Red Hat? You've been there a long time. Sales, everything, picking up customers, massively transforming. What are some of the things that you're seeing and that you're excited >>About? Yeah, I mean, first of all, you know, as customers have, you know, years ago discovered it's not competitively advantageous to manage their own data centers in most cases. So they would like to, you know, give that responsibility to Amazon. We're seeing them move further up the stack, right? So that would be more beyond the operating system, the application platforms like OpenShift. And now we have a managed application platform built on OpenShift called Red Out OpenShift service on AWS or Rosa. And then we're even further going up the stack with that with, we just announced this week that red out OpenShift data science is available in the AWS marketplace, runs on Rosa, helps break the land speed record to getting those data models out there that are so important to make, you know, help organizations become more, much more data driven to remain competitive themselves. >>So talk about Rosa and how it differs from previous iterations of, of OpenShift. I mean, you had, you had an online version of OpenShift several years ago. What's different about Rosa? >>Yeah, so the old OpenShift online that was several years old, right? For one thing, wasn't a joint partnership between Amazon and Red Hat. So we work together, right? Very closely on this, which is great. Also, the awesome thing about Rosa, you know, if you think about like OpenShift for, for, as a matter of fact, Amazon is the number one cloud that OpenShift runs on, right? So a lot of those customers want to take advantage of their committed spins, their EDPs, they want one bill. And so Rosa comes through the one bill comes through the marketplace, right? Which is, which is totally awesome. Not only that or financially backing OpenShift with a 99.95% financially backed sla, right? We didn't have that before either, right? >>When you say financially backed sla, >>What do you mean? That means that if we drop below 99.95% of availability, we're gonna give you some money back, right? So we're really, you know, for lack of better words, putting our money where our mouth is. Absolutely right. >>And, and some of the key reasons that we even work together to build Rosa was frankly we've had a mirror of customers and virtually every single region, every single industry been using OpenShift on AWS for years, right? And we listened to them, they wanted a more managed version of it and we worked very closely together. And what's really great about Rosa too is we built some really fantastic integrations with some of the AWS native services like API gateway, Amazon rds, private link, right? To make it very simple and easy for customers to get started. We talked a little bit about the marketplace, but it's also available just on the AWS console, right? So customers can get started in a pay as you go fashion start to use it. And if they wanna move into a more commitment, more of a set schedule of payments, they can move into a marketplace private offer. >>Chuck, talk about, how about Rosen? How is unlocking the power of technology like containers Kubernetes for customers while dialing down some of the complexity that's >>There? Yeah, I mean if you think about, you know, kind of what we did, you know, earlier on, right? If you think about like virtualization, how it dialed down the complexity of having to get something rack, get a blade rack, stack cable and cooled every time you wanted to deploy new application, right? So what we do is we, our message is this, we want developers to focus on what matters most. And that's build, deploy, and running applications. Most of our customers are not in the business of building app platforms. They're not in the business of building platforms like banks, I, you know, financials, right? Government, et cetera. Right? So what we do is we allow those developers that are, enable those developers that know Java and Node and springing and what have you, just to keep writing what they know. And then, you know, I don't wanna get too technical here, but get pushed through way and, and OpenShift takes care of the rest, builds it for them, runs it through a pipeline, a CICD pipeline, goes through all the testing and quality gates and things like that, deploys it, auto wires it up, you know, to monitoring which is what you need. >>And we have all kinds of other, you know, higher order services and an ecosystem around that. And oh, by the way, also plugging into and taking advantage of the services like rds, right? If you're gonna write an application, a tradition, a cloud native application on Amazon, you're probably going to wanna run it in Rosa and consuming one of those databases, right? Like RDS or Aurora, what have you. >>And I, and I would say it's not even just the customers. We have a variety of ecosystem partners, both of our partners leveraging it as well. We have solos built their executive management system that they go ahead and turn and sell to their customers, streamlines data and collects data from a variety of different sources. They decided, you know, it's better to run that on top of Rosa than manage OpenShift themselves. We've seen IBM restack a lot of their software, you know, to run on top of Rose, take advantage of that capabilities. So lots of partners as well as customers are taking advantage of fully managed stack of that OpenShift that that turnkey capabilities that it provides >>For, for OpenShift customers who wanna move to Rose, is that gonna be a one button migration? Is that gonna be, can they run both environments simultaneously and migrate over time? What kind of tools are you giving them? >>We have quite, we have quite a few migration tools such as conveyor, right? That's one of our projects, part of our migration application toolkit, right? And you know, with those, there's also partners like Trilio, right? Who can help move, you know, applications back 'em up. In fact, we're working on a pretty cool joint go to market with that right now. But generally speaking, the OpenShift experience that the customers that we have know and love and those who have never used OpenShift either are coming to it as well via Rosa, right? The experience is primarily the same. You don't have to really retrain your people, right? If anything, there's a reduction in operational cost. We increase developer productivity cuz we manage so much of the stack for you. We have SRE site reliability engineers that are backing the platform that proactively get ahead of anything that may go wrong. So maybe you don't even notice if something went wrong, wrong. And then also reactively fixing it if it comes to that, right? So, you know, all those kind of things that your customers are having to do on their own or hire a contractor, a consultant, what have to do Now we benefit from a managed offering in the cloud, right? In Amazon, right? And your developers still have that great experience too, like to say, you know, again, break the land speed record to prod. >>I >>Like that. And, and I would actually say migrations from OpenShift are on premise. OpenShift to Rosa maybe only represents about a third of the customers we have. About another third of the customers is frankly existing AWS customers. Maybe they're doing Kubernetes, do it, the, you know, do it themselves. We're struggling with some of the management of that. And so actually started to lean on top of using Rosa as a better platform to actually build upon their applications. And another third, we have quite a few customers that were frankly new OpenShift customers, new Red Hat customers and new AWS customers that were looking to build that next cloud native application. Lots of in the startup space that I've actually chosen to go with Rosa. >>It's funny you mention that because the largest Rosa consumer is new to OpenShift. Oh wow. Right. That's pretty, that's pretty powerful, right? It's not just for existing OpenShift customers, existing OpenShift. If you're running OpenShift, you know, on EC two, right. Self-managed, there's really no better way to run it than Rosa. You know, I think about whether this is the 10th year, 10 year anniversary of re right? Right. Yep. This is also the 10 year anniversary of OpenShift. Yeah, right. I think it one oh came out about sometime around a week, 10 years ago, right? When I came over to Red Hat in 2015. You know, if you, if you know your Kubernetes history was at July 25th, I think was when Kubernetes ga, July 25th, 2015 is when it g you have >>A good >>Memory. Well I remember those days back then, right? Those were fun, right? The, we had a, a large customer roll out on OpenShift three, which is our OpenShift RE based on Kubernetes. And where do you think they ran Amazon, right? Naturally. So, you know, as you move forward and, and, and OpenShift V four came out, the, reduces the operational complexity and becomes even more powerful through our operator framework and things like that. Now they revolved up to Rosa, right? And again, to help those customers focus on what matters most. And that's the applications, not the containers, not those underlying implementation and technical details while critically important, are not necessarily core to the business to most of our customers. >>Tremendous amount of innovation in OpenShift in a decade, >>Pardon me? >>Tremendous amount of innovation in OpenShift in the >>Last decade. Oh absolutely. And, and and tons more to come like every day. Right. I think what you're gonna see more of is, you know, as Kubernetes becomes more, more and more of the plumbing, you know, I call 'em productive abstractions on top of it, as you mentioned earlier, unlocking the power of these technologies while minimizing, even hiding the complexity of them so that you can just move fast Yeah. And safely move fast. >>I wanna be sure we get to, to marketplaces because you have been, red Hat has made, has really stepped up as commitment to the AWS marketplace. Why are you doing that now and how are, how are the marketplaces evolving as a channel for you? >>Well, cuz our customers want us to be there, right? I mean we, we, we are customer centric, customer first approach. Our customers want to buy through the marketplace. If you're an Amazon, if you're an Amazon customer, it's really easy for you to go procure software through the marketplace and have, instead of having to call up Red Hat and get on paper and write a second check, right? One stop shop one bill. Right? That is very, very attractive to our customers. Not only that, it opens up other ways to buy, you know, Ted mentioned earlier, you know, pay as you go buy the drink pricing using exactly what you need right now. Right? You know, AWS pioneered that, right? That provides that elasticity, you know, one of the core tenants at aws, AWS cloud, right? And we weren't able to get that with the traditional self-managed on Red Hat paper subscriptions. >>Talk a little bit about the go to market, what's, you talked about Ted, the kind of the three tenants of, of customer types. But talk a little bit about the gtm, the joint go to market, the joint engineering, so we get an understanding of how customers engage multiple options. >>Yeah, I mean, so if you think about go to market, you know, and the way I think of it is it's the intersection of a few areas, right? So the product and the product experience that we work together has to be so good that a customer or user, actually many start talk, talking about users now cuz it's self-service has a more than likely chance of getting their application to prod without ever talking to a person. Which is historically not what a lot of enterprise software companies are able to do, right? So that's one of those biggest things we do. We want customers to just be successful, turn it on, get going, be productive, right? At the same time we wanna to position the product in such a way that's differentiating that you can't get that experience anywhere else. And then part of that is ensuring that the education and enablement of our customers and our partners as such that they use the platform the right way to get as much value out of as possible. >>All backed by, you know, a very smart field that ensures that the customer get is making the right decision. A customer success org, this is attached to my org now that we can go on site and team with our customers to make sure that they get their first workloads up as quickly as possible, by the way, on our date, our, our dime. And then SRE and CEA backing that up with support and operational integrity to ensure that the service is always up and available so you can sleep, sleep, sleep well at night. Right? Right. One of our PMs of, of of Rosa, he says, what does he say? He says, Rosa allows organizations, enables organizations to go from 24 7 operations to nine to five innovation. Right? And that's powerful. That's how our customers remain more competitive running on Rosa with aws, >>When you're in customer conversations and you have 30 seconds, what are the key differentiators of the solution that you go boom, boom, boom, and they just go, I get it. >>Well, I mean, my 32nd elevator pitch, I think I've already said, I'll say it again. And that is OpenShift allows you to focus on your applications, build, deploy, and run applications while unlocking the power of the technologies like containers and Kubernetes and hiding or minimizing those complexities. So you can do as fast as possible. >>Mic drop Ted, question for you? Sure. Here we are at the, this is the, I leave the 11th reinvent, 10th anniversary, 11th event. You've been in the industry a long time. What is your biggest takeaway from what's been announced and discussed so far at Reinvent 22, where the AWS and and its partner ecosystem is concerned? If you had 30 seconds or if you had a bumper sticker to put on your DeLorean, what would you say? >>I would say we're continuing to innovate on behalf of our customers, but making sure we bring all of our partners and ecosystems along in that innovation. >>Yeah. I love the customer obsession on both sides there. Great work guides. Congrats on the 10th anniversary of OpenShift and so much evolution, the customer obsession is really clear for both of you guys. We appreciate your time. You're gonna have to come back now. Absolutely. Absolutely. Thank you. All right. Thank you so much for joining us. For our guests and for Paul Gillin. I'm Lisa Martin. You're watching The Cube, the leader in live enterprise and emerging tech coverage.

(upbeat music) >> Good afternoon everyone. Welcome back to The Cube's live coverage of AWS Reinvent 22 from Vegas. We're at the Venetian Expo Hall, we're hearing north of 50 000 people. I know we've been giving you different numbers but that's kind of what we've settled on here. Hundreds of thousands are watching online. This is a huge event people. John Ferrior and Lisa Martin are ready to be back. >> Yes, it's really great show. A lot of change going on at Amazon. They're continuing the innovation, continuing to grow. The theme this year's Data Security. And their partner ecosystem, which is continuing to grow. Their partners are filling the gaps on solutions. And it's just a whole nother, I think partner friendly cloud. This NextGen wave that's coming is really, the next thing segment I think speaks to that, I'm looking forward to this. >> It does. We're going to be digging into that partner network. We've got two guests, one of them is an alumni, Reza Honarmand SVP Global Cloud at TD Synnex. Great to have you back. >> Yeah. >> Sergio Farache joins us as well the Chief Strategy Officer at TD Synnex. Welcome to the program. >> Thank you. >> Thank you for having us. >> Great to be back in person, isn't it? >> Yeah absolutely. That's great experience. >> Amazing, the energy here at the highest level since we came here Monday night, which is great. Sergio, I want to start with you. Last year when you guys were on the show Tech Data. Tech Data has been around a long time now you're TD Synnex. Talk a little bit about that, what's new, that transformation? >> Yeah, that is correct. It's great to be able now to present it in Synnex as a new merger between Tech Data and Synnex Corporation. And now we are the largest distributor basically across the world with more than $62 billion in a business. And Amazon is obviously an strategic partner with a hyper growth and we have been very focused to working with them to expand that partner ecosystem across solution ISVs and service providers. That has been very nice experience combine these two company and now have the reach and skill that enable more than 140,000 partners across the world. >> Wow. >> And the partner's message here is changing too. The new leader, Ruba is up on stage talking about this new partner paths, a lot of changes in a good way. They're bringing people together. What's your guys take and reaction to AWS's new posture towards partners? Obviously the ecosystem we see going to be doubling and tripling we see in size. And also the value proposition being stronger too and more money making of course. But the new Amazon's posture with partners. What's your reaction? >> Well, (indistinct) just an hour ago. Fantastic. I mean, if I look at the change from when we first got here a few years ago to now, it is beyond comparison. The realization is that technology and especially what we work with Amazon is deflationary force and we need scale to actually drive that across all of our partners to the customers. And yeah, I can only see that accelerating now in terms of what Amazon is doing and actually with the channel and what Ruba is doing. I think this is exactly in the right direction. >> What's your message? >> My message is, this is now channel. This is channel and this is serious. So partners with Amazon equals growth. >> As we've seen so much transformation in the last couple of years, Sergio, with every business having to become digital to survive. Right and then to eventually thrive and succeed and grow in the challenging economic times that we've had. What are some of the, the pivots that TD Synnex has made through your partner program to meet customer needs to accelerate their transformation? >> Yeah, as you said, has been a significant transformation. I think that in the past was clear what was a technology company and what industrial company, et cetera and those frontiers are blending right now. Then as a consequence we have been investing in several elements. Once is to really increase the capability of the partner network in a way that they can on one side provide more solution-oriented activities to those customers to drive either growth or cost optimization. The other element has been verticalization meaning know the industry where you are playing. We have been investing in the healthcare market, of course as a consequence of all the demand that has been generating. But at the same time and we recently announced the competence in the government sector where we expand drastically our capabilities around specifically the federal, and non feral business, but not only in US but across the world with those elements. Then I would say it's a combination of enhancing the skill, enhancing the knowledge on the industry, and finally provide the tools through our platform to enable the partner to operate in a digital way and enable the access of ISVs to digitally and serving the customers end to end. >> Is that the ISV experience project that I heard about? ISV experience with SaaS companies, Is that what you're referring to? >> Yeah, ISVs is one. ISP experience is one of the components that we use, but basically what we are trying to achieve with the ISV is helping in the journey of specification. It's how you transform either a partner that is born in the cloud or a partner that is still in the, in the OnPrem side how you transition to the cloud and enabling how you reach to the end user in a more effective way. And how we expose 140,000 partner across the multiple geographies to help those ISVs to reach more customers. >> It's great distribution. I mean this is, a business model innovation. >> Sorry? >> It's a business model innovation for these ISVs. >> Absolutely. Some of the ISVs, as you can imagine they're incumbent with us. We work with them. So actually it's finding new ways of consuming technology. But there's thousands of them that actually do not understand how to operate with a channel. And this is a part where we help them with the channel, build a program. Coach them through the process, help them access the partners and the customers that Sergio was referring to. >> Let me ask you guys a question. Where's the growth going to come from? I mean you mentioned ecosystem, more growth, Ruba was mentioned that's where the growth is. They are serious. She's going to deliver that keynote now. Where do you guys see your growth coming from? >> Well, to be honest the growth is unlimited in our opinion, right. It's so many areas. >> The wave is still coming. Yeah >> The wave is still there, you know. When you see still the amount of platform that need to be immigrated to the cloud then we have been investing in a significant way in enable capabilities of migration programs from the on-premise to off premise. At the same time, we have been expanding geographically because it's still several segments and markets we operate globally. As an example we recently launched our public sector capability in Latin America and Europe, expanding those segments. And in addition to that again, how we bring more ISVs more solution oriented driven than many spots of growth. And I think that Amazon message recently recognized more and more the value of nobody have all the solutions. You need this ecosystem plan together to bring those solutions to market. >> So if I build on that. If we look at the growth in public cloud last year, was around $40 billion. We expect a similar growth level this year as well. I mentioned about deflationary force, the technology being a deflationary force. Now everybody knows a lot of businesses out there are going under a lot of challenges. So they have to compete, they have to have the insights they have to be efficient and actually they're going to get a lot of that through the technologies that we're talking about here. The key to that is partners with the right skillsets. What we are seeing is the partners with the skillsets who can participate in that $40 billion growth, take a big, big share of it. >> And you guys are providing a great service. I think when I wrote the story on Friday that I published one of my premise was, is that this Next-Gen cloud is going to lift up more ISVs which is kind of a legacy classic, independent software vendor. Create new kinds of partners that have platforms or unique solutions for verticals. So, the ISV classic definition will still exist and new customers are emerging. It's got a new dynamic developing. We're seeing people build clouds on top of the cloud tap the ecosystem, partner distribution, services. It's a whole new way to build and take something to market. What do you guys think about that? >> Yeah, I think that the beauty of our position in the market is that we are in the center of that ecosystem. Again, we have access to thousands of ISVs thousands of hardware vendors, the hyper-scalers then somebody need to put all those pieces together. That is our role in the market. >> It's a good position to be in. >> It's a good place to be. And enabling those partners now to collaborate with all those entities to bring the solution because the customer is not acquiring technology anymore. They're acquiring a solution to a problem now. And that solution require multiple components. >> Last year. No, this year, I'm sorry. You guys were announced as EMEA distributor of the, of the year. Congratulations on that. >> Yeah, thank you. Talk about that in terms of just the evolution of the partnership. >> The partnership in EMEA is now across our entire geo. The growth that we have driven across the EMEA market space, is I think the reason why we have won it. As well as the competencies that we have built. Now you were just talking about ISVs to give you an example, there are many ISVs that sit in EMEA that want to access the US market and vice versa. So where we sit in the middle and enable that access. The frameworks that they need to move. So those are the kind of things that contribute to the strengthened in the relationship and what those awards are coming from. >> Yeah. The other critical factor here is, again how we bring more capillarity in terms of the serve to the market to Amazon. And that has been another component of data that we are very thankful. Again, we has been enabling and bringing numerous new partners and numerous new end customers that now have access, support and services. Including again, the competencies that we already described but including service oriented businesses like migration, like cost optimization of the use, et cetera. That now we through partners serve to the market. >> Reza and Sergio, I want ask you guys a question around trust. Trust. You're a trust broker because you have a lot of services and people and companies to put together. We were just talking about the good position you're in. >> Trust is a big part of your relationship with your customers. You've got two sides of your business, you got one side's the supply side and you got the distribution side and then both sides are working together, requires a lot of trust. What's that look like inside your company? Can you just chip in and explain, take a bit to explain what's that like? The culture of the company and that trust. >> Yeah, absolutely. And that is why the term of trust advisor came to the table right? And again, for more than 40 years we have been building this ecosystem. We have been driving that motion and we have been proving to the market a consistent approach with a strong support to the two tier model. We never, you know get in opposition to our customers and we enable those customers in a consistent way. And I think that trust is something that you earn, not something that you ask for. And that is what we are doing day to day basis. >> Congratulations, it's been great. Great chatting with you. Challenge time? For the challenge time? >> Challenge time. >> Alright guys. >> New challenge on the Cuba new format. We usually say yes at the end of the interview. What's take on the show, what's the bumper sticker? So think of it like an Instagram reel, thought leadership, hot take. Each of you, spend a minute 30 seconds to share a hot take, thought leadership, what you think was going on at Amazon? Why you're here? What's important? What would you say if you were going to do an Instagram reel right now? >> Yeah, the Amazon enable a new way to do business and a new transformation of the digital economy. We are here TD Synnex to expand that capability across the segments. Enhancing partners to reach to their goals and in users to get those transformations. In general we will provide what is needed and we continue investing to continue growing the capacity across all geographies and all the type of solutions that we deliver. >> All right, Sergio you nailed it. Reza you're up. Your hot take your sizzle reel. >> Well, frankly I think Sergio nailed it. It's about covering the geos and taking the competencies and make sure we execute consistently across all of our geos. >> All right, nailed it. Thanks so much. >> Consistent execution. Reza, Sergio. Thank you so much for joining John and me on the program, talking about what TD Synnex has done since we've last seen you. What you're doing with AWS and the partner ecosystem. We really appreciate you stopping by this side. >> Thank you very much. Thank you for the time. >> Alright, our pleasure. For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, the leader at Live Tech coverage.

>>Hello everyone and welcome back to Las Vegas. I've got my jazz hands because I am very jazzed to be here at AWS Reinvent Live from the show floor all week. My name is Savannah Peterson, joined with the infamous John Farer. John, how you feeling >>After feeling great? Love? What's going on here? The vibe is a cloud, cloud native. Lot of security conversation, data, stuff we love Cloud Native, >>M I >>A L, I mean big news. Security, security, data lake. I mean, who would've thought Amazon have a security data lake? You know, e k s, I mean >>You might have with that tweet you had out >>Inside outside the containers. Reminds me, it feels like coan here. >>It honestly, and there's a lot of overlap and it's interesting that you mention CubeCon because we talked to the next company when we were in Detroit just a couple weeks ago. Teleport E is the CEO and founder F Welcome to the show. How you doing? >>I'm doing well. Thank you for having me today. >>We feel very lucky to have you. We hosted Drew who works on the product marketing side of Teleport. Yeah, we got to talk caddies and golf last time on the show. We'll talk about some of your hobbies a little bit later, but just in case someone's tuning in, unfamiliar with Teleport, you're all about identity. Give us a little bit of a pitch, >>Little bit of our pitch. Teleport is the first identity native infrastructure access platform. It's used by engineers and it's used by machines. So notice that I used very specific choice of words first identity native, what does it mean? Identity native? It consists of three things and we're writing a book about those, but I'll let you know. Stay >>Tuned on that front. >>Exactly, yes, but I can talk about 'em today. So the first component of identity, native access is moving away from secrets towards true identity. The secrets, I mean things like passwords, private keys, browser cookies, session tokens, API keys, all of these things is secrets and they make you vulnerable. The point is, as you scale, it's absolutely impossible to protect all of the seekers because they keep growing and multiplying. So the probability of you getting hacked over time is high. So you need to get rid of secrets altogether that that's the first thing that we do. We use something called True Identity. It's a combination of your biometrics as well as identity of your machines. That's tpms, HSMs, Ubikes and so on, so forth. >>Go >>Ahead. The second component is Zero Trust. Like Teleport is built to not trust the network. So every resource inside of your data center automatically gets configured as if there is no perimeter it, it's as safe as it was on the public network. So that's the second thing. Don't trust the network. And the third one is that we keep access policy in one place. So Kubernetes clusters, databases on stage, rdp, all of these protocols, the access policy will be in one place. That's identity. Okay, >>So I'm, I'm a hacker. Pretend I'm a hacker. >>Easy. That sounds, >>That sounds really good to me. Yeah, I'm supposed to tell 'em you're hacker. Okay. I can go to one place and hack that. >>I get this question a lot. The thing is, you want centralization when it comes to security, think about your house being your AWS account. Okay? Everything inside your furniture, your valuable, like you'll watch collection, like that's your data, that's your servers, paper clusters, so and so forth. Right Now I have a choice and your house is in a really bad neighborhood. Okay, that's the bad internet. Do you wanna have 20 different doors or do you want to have one? But like amazing one, extremely secure, very modern. So it's very easy for you to actually maintain it and enforce policy. So the answer is, oh, you probably need to have >>One. And so you're designing security identity from a perspective of what's best for the security posture. Exactly. Sounds like, okay, so now that's not against the conventional wisdom of the perimeter's dead, the cloud's everywhere. So in a way kind of brings perimeter concepts into the posture because you know, the old model of the firewall, the moat >>It Yeah. Just doesn't scale. >>It doesn't scale. You guys bring the different solution. How do you fit into the new perimeters dead cloud paradigm? >>So the, the way it works that if you are, if you are using Teleport to access your infrastructure, let's just use for example, like a server access perspective. Like that machine that you're accessing doesn't listen on a network if it runs in Teleport. So instead Teleport creates this trusted outbound tunnels to the proxy. So essentially you are managing devices using out going connection. It's kind of like how your phone runs. Yeah. Like your phone is actually ultimate, it's like a teleport like, like I It's >>Like teleporting into your environment. >>Yeah, well play >>Journal. But >>Think about actually like one example of an amazing company that's true Zero trust that we're all familiar with would be Apple. Because every time you get a new iOS on your phone, the how is it different from Apple running massive software deployment into enormous cloud with billions of servers sprinkle all over the world without perimeter. How is it possible That's exactly the kind of technology that Teleports >>Gives you. I'm glad you clarified. I really wanted to get that out on the table. Cuz Savannah, this is, this is the paradigm shift around what an environment is Exactly. Did the Apple example, so, okay, tell 'em about customer traction. Are people like getting it right away? Are their teams ready? Are they go, oh my god this is >>Great. Pretty much you see we kinda lucky like in a, in a, like in this business and I'm walking around looking at all these successful startups, like every single one of them has a story about launching the right thing at just the right like moment. Like in technology, like the window to launch something is extremely short. Like months. I'm literally talking months. So we built Teleport started to work on it in like 2015. It was internal project, I believe it or not, also a famous example. It's really popular like internal project, put it on GitHub and it sat there relatively unnoticed for a while and then it just like took off around 2000 >>Because people start to feel the pain. They needed it. Exactly, >>Exactly. >>Yeah. The timing. Well and And what a great way to figure out when the timing is right? When you do something like that, put it on GitHub. Yeah. >>People >>Tell you what's up >>Yeah's Like a basketball player who can just like be suspended in the air over the hoop for like half the game and then finally his score and wins >>The game. Or video gamer who's lagged, everyone else is lagging and they got the latency thing. Exactly. Thing air. Okay. Talk about the engineering side. Cause I, I like this at co con, you mentioned it at the opening of this segment that you guys are for engineers, not it >>Business people. That's right. >>Explain that. Interesting. This is super important. Explain why and why that's resonating. >>So there is this ongoing shift on more and more responsibilities going to engineers. Like remember back in the day before we even had clouds, we had people actually racking servers, sticking cables into them, cutting their fingers, like trying to get 'em in. So those were not engineers, they were different teams. Yeah. But then you had system administrators who would maintain these machines for you. Now all of these things are done with code. And when these things are done with code and with APIs, that shifts to engineers. That is what Teleport does with policy. So if you want to have a set of rules that govern who or what and when under what circumstances can access what data like on Kubernetes, on databases, on, on servers wouldn't be nice to use code for it. So then you could use like a version control and you can keep track of changes. That's what teleport enables. Traditionally it preferred more kind of clicky graphical things like clicking buttons. And so it's just a different world, different way of doing it. So essentially if you want security as code, that's what Teleport provides and naturally this language resonates with this persona. >>Love that. Security is coding. It's >>A great term. Yeah. Love it. I wanna, I wanna, >>Okay. We coined it, someone else uses it on the show. >>We borrow it >>To use credit. When did you, when did you coin that? Just now? >>No, >>I think I coined it before >>You wanted it to be a scoop. I love that. >>I wish I had this story when I, I was like a, like a poor little 14 year old kid was dreaming about security code but >>Well Dave Ante will testify that I coined data as code before anyone else but it got 10 years ago. You >>Didn't hear it this morning. Jimmy actually brought it back up. Aws, you're about startups and he's >>Whoever came up with lisp programming language that had this concept that data and code are exact same thing, >>Right? We could debate nerd lexicon all day on the cube. In fact, that could even be a segment first >>Of we do. First of all, the fact that Lisp came up on the cube is actually a milestone because Lisp is a very popular language for object-oriented >>Grandfather of everything. >>Yes, yes, grandfather. Good, good. Good catch there. Yeah, well done. >>All right. I'm gonna bring us back. I wanna ask you a question >>Talking about nerd this LIS is really >>No, I think it's great. You know how nerdy we can get here though. I mean we can just hang out in the weeds the whole time. All right. I wanna ask you a question that I asked Drew when we were in Detroit just because I think for some folks and especially the audience, they may not have as distinctive a definition as y'all do. How do you define identity? >>Oh, that's a great question. So identity as a term was, it was always used for security purposes. But most people probably use identity in the context of single signon sso. Meaning that if your company uses identity for access, which instead of having each application have an account for you, like a data entry with your first name, last name emails and your role. Yeah. You instead have a central database, let's say Okta or something like that. Yep. And then you, you use that to access everything that's kind of identity based access because there is a single source of identity. What we say is that we, that needs to be extended because it it no longer enough because that identity can be stolen. So if someone gets access to your Okta account using your credentials, then they can become you. So in order for identity to be attached to you and become your true identity, you have to rely on physical world objects. That's biometrics your facial fingerprint, like your facial print, your fingerprints as well as biometric of your machine. Like your laptops have PPM modules on it. They're absolutely unique. They cannot be cloned stolen. So that is your identity as well. So if you combine whatever is in Octa with the biker chip in this laptop and with your finger that collectively is your true identity, which cannot be stolen. So it's can't be hacked. >>And someone can take my finger like they did in the movies. >>So they would have to do that. And they would also have to They'd >>Steal your match. Exactly, exactly. Yeah. And they'd have to have your eyes >>And they have to, and you have >>Whatever the figure that far, they meant what >>They want. So that is what Drew identity is from telecom and >>Biometric. I mean it's, we're so there right now it's, it's really not an issue. It's only getting faster and better to >>Market. There is one important thing I said earlier that I want to go back to that I said that teleport is not just for engineers, it's also for machines. Cuz machines they also need the identity. So when we talk about access silos and that there are many different doors into your apartment, there are many different ways to access your data. So on the infrastructure side, machines are doing more and more. So we are offloading more and more tasks to them. That's a really good, what do machines use to access each other? Biome? They use API keys, they use private keys, they use basically passwords. Yeah. Like they're secrets and we already know that that's bad, right? Yeah. So how do you extend biometrics to machines? So this is why AWS offers cloud HSM service. HSM is secure hardware security module. That's a unique private key for the machine that is not accessible by anyone. And Teleport uses that to give identities to machines. Does do >>Customers have to enable that themselves or they have that part of a Amazon, the that >>Special. So it's available on aws. It's available actually in good old, like old bare metal machines that have HSMs on them on the motherboard. And it's optional by the way Teleport can work even if you don't have that capability. But the point is that we tried, you >>Have a biometric equivalent for the machines with >>Take advantage of it. Yeah. It's a hardware thing that you have to have and we all have it. Amazon sells it. AWS sells it to us. Yeah. And Teleport allows you to leverage that to enhance security of the infrastructure. >>So that classic hardware software play on that we're always talking about here on the cube. It's all, it's all important. I think this is really fascinating though. So I had an on the way to the show, I just enrolled in Clear and I had used a different email. I enrolled for the second time and my eyes wouldn't let me have two accounts. And this was the first time I had tried to sort of hack my own digital identity. And the girl, I think she was humoring me that was, was kindly helping me, the clear employee. But I think she could tell I was trying to mess with it and I wanted to see what would happen. I wanted to see if I could have two different accounts linked to my biometric data and I couldn't it, it picked it up right away. >>That's your true >>Identity. Yeah, my true identity. So, and forgive me cuz this is kind of just a personal question. It might be a little bit finger finger to the wind, but how, just how much more secure if you could, if you could give us a, a rating or a percentage or a a number. How much more secure is leveraging biometric data for identity than the secrets we've been using historically? >>Look, I could, I played this game with you and I can answer like infinitely more secure, right? Like but you know how security works that it all depends on implementation. So let's say you, you can deploy teleport, you can put us on your infrastructure, but if you're running, let's say like a compromised old copy of WordPress that has vulnerability, you're gonna get a hack through that angle. But >>Happens happens to my personal website all the time. You just touched Yeah, >>But the fact is that we, I I don't see how your credentials will be stolen in this system simply because your TPM on your laptop and your fingerprint, they cannot be downloaded. They like a lot of people actually ask us a slightly different question. It's almost the opposite of it. Like how can I trust you with my biometrics? When I use my fingerprint? That's my information. I don't want the company I work at to get my fingerprint people. I think it's a legit question to ask. >>Yeah. And it's >>What you, the answer to that question is your fingerprint doesn't really leave your laptop teleport doesn't see your fingerprint. What happens is when your fingerprint gets validated, it's it's your laptop is matching what's on the tpm. Basically Apple does it and then Apple simply tells teleport, yep that's F or whoever. And that's what we are really using. So when you are using this form authentication, you're not sharing your biometric with the company you work at. >>It's a machine to human confirmation first and >>Then it's it. It's basically you and the laptop agreeing that my fingerprint matches your TPM and if your laptop agrees, it's basically hardware does validation. So, and teleport simply gets that signal. >>So Ed, my final question for you is here at the show coupon, great conversations there for your company. What's your conversations here like at reinvent? Are you meeting with Amazon people, customers? What are some of the conversations? Because this is a much broader, I mean it's still technical. Yep. But you know, a lot of business kind of discussions, architectural refactoring of organizations. What are some of the things that you're talking about here with Telepo? What are, >>So I will mention maybe two trends I observed. The first one is not even security related. It's basically how like as a cloud becomes more mature, people now actually at different organizations develop their own internal ways of doing cloud properly. And they're not the same. Because when cloud was earlier, like there were this like best practices that everyone was trying to follow and there was like, there was just a maybe lack of expertise in the world and and now finding that different organizations just do things completely different. Like one, like for example, yeah, like some companies love having handful, ideally just one enormous Kubernetes cluster with a bunch of applications on it. And the other companies, they create Kubernetes clusters for different workloads and it's just like all over the map and both of them are believed that they're doing it properly. >>Great example of bringing in, that's Kubernetes with the complexity. And >>That's kind of one trend I'm noticing. And the second one is security related. Is that everyone is struggling with the access silos is that ideally every organization is dreaming about a day, but they have like one place which is which with great user experience that simply spells out this is what policy is to access this particular data. And it gets a automatically enforced by every single cloud provider, but every single application, but every single protocol, but every single resource. But we don't have that unfortunately Teleport is slowly becoming that, of course. Excuse me for plugging >>TelePro. No, no worries. >>But it is this ongoing theme that everyone is can't wait to have that single source of truth for accessing their data. >>The second person to say single source of truth on this stage in the last 24 >>Hours or nerds will love that. I >>Know I feel well, but it's all, it all comes back to that. I keep using this tab analogy, but we all want everything in one place. We don't wanna, we don't wanna have to be going all over the place and to look for >>Both. Because if it's and everything else places, it means that different teams are responsible for it. Yeah. So it becomes this kind of internal information silo as well. So you not even, >>And the risks and liabilities there, depending on who's overseeing everything. That's awesome. Right? So we have a new challenge on the cube specific to this show thing of this as your 30 minute or 30 minute that would be bold. 32nd sizzle reel, Instagram highlight. What is your hot take? Most important thing, biggest theme of the show this year. >>This year. Okay, so here's my thing. Like I want cloud to become something I want it to be. And every time I come here and I'm like, are we closer? Are we closer? So here's what I want. I want all cloud providers collectively to kind of merge. So then when we use them, it feels like we are programming one giant machine. Kind of like in the matrix, right? The movie. So like I want cloud to feel like a computer, like to have this almost intimate experience you have with your laptop. Like you can like, like do this and the laptop like performs the instructions. So, and it feels to me that we are getting closer. So like walking around here and seeing how everything works now, like on the single signon on from a security perspective, there is so that consolidation is finally happening. So it's >>The software mainframe we used to call it back in 2010. >>Yeah, yeah. Just kind of planetary scale thing. Yes. It's not the Zuckerberg that who's building metaverse, it's people here at reinvent. >>Unlimited resource for developers. Just call in. Yeah, yeah. Give me some resource, spin me up some, some compute. >>I would like alter that slightly. I would just basically go and do this and you shouldn't even worry about how it gets done. Just put instructions into this planetary mainframe and mainframe will go and figure this out. Okay. >>We gotta take blue or blue or red pill. I >>Know. I was just gonna say y'all, we are this, this, this, this segment is lit. >>We got made tricks. We got brilliant. We didn't get super cloud in here but we, we can weave that in. We got >>List. We just said it. So >>We got lisp. Oh great con, great conversation. Cloud native. >>Outstanding conversation. And thank you so much for being here. We love having teleport on the show. Obviously we hope to see you back again soon and and Drew as well. And thank all of you for tuning in this afternoon. Live from Las Vegas, Nevada, where we are hanging out at AWS Reinvent with John Furrier. I'm Savannah Peterson. This is the Cube. We are the source for high tech coverage.

>>Hey everyone, and welcome back to The Cube's live coverage of AWS Reinvented 2022 Live from the Venetian Expo in Las Vegas. We're happy to be back. This is first full day of coverage over here last night. We've got three full days of coverage in addition to last night, and there's about 50,000 people here. This event is ready, people are ready to be back, which is so exciting. Lisa Martin here with Paul Gill and Paul, it's great to be back in person. Great to be hosting with you >>And likewise with you, Lisa. I think the first time we hosted again, >>It is our first time exactly. >>And we come here to the biggest event that the cube ever does during the year. >>It's the Super Bowl of the >>Cube. It's it's elbow to elbow out there. It's, it's, it's full tackle football, totally on the, on the floor of reinvent. And very exciting. This, you know, I've been to a lot of conferences going back 40 years, long as I can remember. Been going to tech conferences. This one, the, the intensity, the excitement around this is really unusual. People are jazzed, they're excited to be here, and that's great to see, particularly coming back from two years of isolation. >>Absolutely. The energy is so palpable. Even yesterday, evening, afternoon when I was walking in, you just feel it with all the people here. You know, we talk to so many different companies on the Q Paul. Every company these days has to be a data company. The most important thing about data is making sure that it's backed up and it's protected, that it's secure, that it can be recovered if anything happens. So we're gonna be having a great conversation next about data resiliency with one of our alumni. >>And that would be Rick Scott, Rick, excuse me, Rick Scott, >>Rick Clark. Rick Clark, say Rick Scott, cloud sales Veritas. Rick, welcome back >>To the program. Thank you. Thank you so much. It's a pleasure being here, you know, thank you so much. You're definitely very excited to myself and 40,000 of my closest cousins and friends all in one place. Yep. Or I could possibly go wrong, right? So >>Yeah, absolutely nothing. So, Rick, so Veritas has made some exciting announcements. Talk to us about some of the new things that you've >>Unveiled. Yeah, we've been, we've been incredibly busy and, you know, the journey that we've been on, one of the big announcement that we made about three or four weeks ago is the introduction, really, of a brand new cloud native data management platform that we call Veritas Alta. And this is a journey that we've been on for the better part of seven years. We actually started it with our, our flex appliances. We continued, that was a containerization of our traditional net backup business in, into a highly secured appliance that was loved by our customers. And we continued that theme and that investment into what we call a scale out and scale up form factor appliance as well, what we called flex scale. And then we continued on that investment theme, basically spending over a billion dollars over that seven year journey in our cloud native. And we call that basically the Veritas altar platform with our cloud native platform. And I think if you really look at what that is, it truly is a data management platform. And I emphasize the term cloud native. And so our traditional technologies around data protection, obviously application resiliency and digital compliance or data compliance and governance. We are the only, the first and only company in the world to provide really a cloud optimized, cloud native platform, really, that addresses that. So it's been fun, it's been a fun journey. >>Talk a little bit about the customer experience. I see over 85% of the Fortune 100 trust Veritas with their data management. That's >>A big number. Yeah. Yeah. It's, it is incredible actually. And it really comes back to the Veritas older platform. We sort of built that with, with four tenants in mind, all driving back to this very similar to AWS's customer obsession. Everything we do each and every day of our waiting moments is a Veritas employee is really surrounds the customer. So it starts with the customer experience on how do they find us to, how do they procure our solutions through things like AWS marketplace and how do they deploy it? And the second thing is around really cost optimization, as we know, you know, to, to say that companies are going through a digital transformation and moving workloads to the cloud. I mean, I've got customers that literally were 20% in cloud a year ago and 80% a year later, we've never seen that kind of velocity. >>And so we've doubled down on this notion of cost optimization. You can only do that with these huge investments that I talked about. And so we're a very profitable company. We've been around, got a great heritage of over 30 years, and we've really taken those investments in r and d to provide that sort of cloud native technology to ultimately make it elastic. And so everything from will spin up and spin down services to optimize the cloud bill for our customers, but we'll also provide the greatest workload support. You know, obviously on-prem workloads are very different from cloud workloads and it's almost like turning the clock back 20 years to see all of those new systems. There's no standard API like s and MP on the network. And so we have to talk to every single PAs service, every single DB PAs, and we capture that information and protect it. So it's really has been a phenomenal journey. It's been great. >>You said this, that that al represents a shift from clouds from flex scale to cloud native. What is the difference there? >>The, the main difference really is we took, you know, obviously our traditional product that you've known for many media years, net backup. It's got, you know, tens of millions of lines of code in that. And we knew if we lifted and shifted it up into the cloud, into an I AEs infrastructure, it's just not, it obviously would perform extremely well, but it wasn't cost optimized for our customer. It was too expensive to to run. And so what we did is we rewrote with microservices and containerization, Kubernetes huge parts of that particular product to really optimize it for the cloud. And not only have we done it for that technology, what we now call alter data protection, but we've done it across our entire port portfolio. That was really the main change that we made as part of this particular transition. And >>What have you done to prepare customers for that shift? Is this gonna be a, a drop in simple upgrade for them? >>Absolutely. Yeah. In fact, one of the things that we introduced is we, we invest still very heavily with regards to our OnPrem solutions. We're certainly not abandoning, we're still innovating. There's a lot of data still OnPrem that needs to move to the cloud. And so we have a unique advantage of all of the different workload supports that we provide OnPrem. We continue that expansion into the cloud. So we, we create it as part of the Veritas AL Vision, a technology, we call it AL view. So it's a single painter glass across both OnPrem and cloud for our customers. And so now they can actually see all of their data protection, all our application availability, single collect, all through that single unified interface, which is really game changing in the industry for us. >>It's game changing for customers too, because customers have what generally six to seven different backup technologies in their environment that they're having to individually manage and provision. So the, the workforce productivity improvements I can imagine are, are huge with Veritas. >>Yeah. You you nailed it, right? You must have seen my script, but Absolutely. I mean, I look at the analogy of, you think about the airlines, what's one of the first things airlines do with efficiency? South Southwest Airlines was the best example, a standardized on the 7 37, right? And so all of their pilots, all of their mechanics, all know how to operate the 7 37. So we are doing the same thing with enterprise data protection. So whether you're OnPrem at the edge or in the cloud or even multi-cloud, we can provide that single painter glass. We've done it for our customers for 30 plus years. We'll continue to do it for another 30 something years. And so it's really the first time with Veritas altar that, that we're, we're coming out with something that we've invested for so long and put, put such a huge investment on that can create those changes and that compelling solution for our customers. So as you can see, we're pretty pumped and excited about it. >>Yes, I can >>Use the term data management to describe Alta, and I want to ask about that term because I hear it a lot these days. Data management used to be database, now data management is being applied to all kinds of different functions across the spectrum. How do you define data management in Veritas >>Perspective? Yeah, there's a, we, we see it as really three main pillars across the environment. So one is protection, and we'll talk a little bit about this notion of ransomware is probably the number one use case. So the ability to take the most complex and the biggest, most vast applications. SAP is an example with hundreds of different moving parts to it and being able to protect that. The second is application resiliency. If, if you look at the cloud, there's this notion of, of responsibility, shared responsibility in the cloud. You've heard it, right? Yep. Every single one of the cloud service providers, certainly AWS has up on their website, this is what we protect, here's the demarcation line, the line in the sand, and you, the customer are responsible for that other level. And so we've had a technology, you previously knew it as InfoScale, we now call it alter application resiliency. >>And it can provide availability zone to availability zone, real time replication, high availability of your mission critical applications, right? So not only do we do the traditional backups, but we can also provide application resiliency for mission critical. And then the third thing really from a data management standpoint is all around governance and compliance. You know, ac a lot of our customers need to keep data for five, 10 years or forever. They're audited. There's regulations and different geographies around the world. And, and those regulations require them to be able to really take control of their cloud, take control of their data. And so we have a whole portfolio of solutions under that data compliance, data government. So back to your, your question Paul, it's really the integration and the intersection of those three main pillars. We're not a one trick pony. We've been at this for a long time, and they're not just new products that we invented a couple of months ago and brought to market. They're tried and tested with eight 80,000 customers and the most complex early solutions on the planet that we've been supporting. >>I gotta ask you, you know, we talked about those three pillars and you talked about the shared responsibility model. And think of that where you mentioned aws, Salesforce, Microsoft 365, Google workspace, whatnot. Are you finding that most customers aren't aware of that and haven't been protecting those workloads and then come to you and saying, Hey guys, guess what, this is what this is what they're responsible for. The data is >>You Yeah, I, it's, it's our probably biggest challenge is, is one of awareness, you know, with the cloud, I mean, how many times have you spoken to someone? You just put it in the cloud. Your applications, like the cloud providers like aws, they'll protect everything. Nothing will ever go down. And it's kind like if you, unless your house was ever broken into, you're probably not gonna install that burglar alarm or that fire alarm, right? Hopefully that won't be an event that you guys have to suffer through. So yeah, it's definitely, it wasn't till the last year or so the cloud service providers really published jointly as to where is their responsibility, right? So a great example is an attack vector for a lot of corporations is their SAS applications. So, you know, whether it it's your traditional SA applications that is available that's available on the web to their customers as a sas. >>And so it's certainly available to the bad actors. They're gonna, where there's, there's gonna be a point they're gonna try to get in. And so no matter what your resiliency plan is, at the end of the day, you really need to protect it. And protection isn't just, for example, with M 365 having a snapshot or a recycle bin, that's just not good enough. And so we actually have some pretty compelling technology, what we call ALTA SAS protection, which covers the, pretty much the, the gamut of the major SAS technologies to protect those and make it available for our customers. So yeah, certainly it's a big part of it is awareness. Yeah. >>Well, I understand that the shared responsibility model, I, I realize there's a lot of confusion about that still, but in the SaaS world that's somewhat different. The responsibility of the SaaS provider for protecting data is somewhat different. How, how should, what should customers know about that? >>I think, you know, the, the related to that, if, if you look at OnPrem, you know, approximately 35 to 40% of OnPrem enterprise data is protected. It's kind of in a long traditional problem. Everyone's aware of it. You know, I remember going to a presentation from IBM 20 something years ago, and someone held their push hand up in the room about the dis drives and says, you need to back it up. And the IBM sales guy said, no, IBM dis drives never crash. Right? And so fast forward to here we are today, things have changed. So we're going through almost a similar sort of changes and culture in the cloud. 8% of the data in the cloud is protected today, 8%. That's incredible. Meaning >>That there is independent backup devoted >>To that data in some cases, not at all. And something many cases, the customer just assumes that it's in the cloud, therefore it's always available. I never have to worry about protecting it, right? And so that's a big problem that we're obviously trying to, trying to solve. And we do that all under the umbrella of ransomware. That's a huge theme, huge investment that, that Veritas does with regards to providing that resiliency for our >>Customers. Ransomware is scary. It is becoming so prolific. The bad actors have access to technologies. Obviously companies are fighting them, but now ransomware has evolved into, no longer are we gonna get hit, it's when, yeah, it's how often it's what's the damage going to be. So the ability to help customers recover from ransomware, that resiliency is table stakes for businesses in any industry these days. Does that, that one of the primary pain points that your customers are coming to you with? >>It's the number one pain point. Yeah, it's, it's incredible. I mean, there's not a single briefing that our teams are doing customer meetings where that term ransomware doesn't come up as, as their number one use case. Just to give you something, a couple of statistics. There's a ransomware attack attack that happens 11 times a second right around the globe. And this isn't just, you know, minor stuff, right? I've got friends that are, you know, executives of large company that have been hit that have that some, you know, multimillion dollar ransom attack. So our, our play on this is, when you think about it, is data protection is the last line of defense. Yes. And so if they break through, it's not a case, Lisa, as you mentioned, if it's a case of when Yeah. And so it's gonna happen. So one of the most important things is knowing how do you know you have a gold copy, a clean copy, and you can recover at speed in some cases. >>We're talking about tens of thousands of systems to do that at speed. That's in our dna. We've been doing it for many, many years. And we spoke through a lot of the cyber insurance companies on this particular topic as well. And what really came back from that is that they're actually now demanding things like immutable storage, malware detection, air gaping, right? Anomaly detection is sort of core technologies tick the box that they literally won't ensure you unless you have those core components. And so what we've done is we've doubled down on that investment. We use AI in ML technologies, particularly around the anomaly detection. One of the, the, the unique and ne differentiators that Verto provides is a ransomware resiliency scorecard. Imagine the ability to save uran a corporation. We can come in and run our analytics on your environment and kind of give you a grade, right? Wouldn't you prefer that than waiting for the event to take place to see where your vulnerability really is? And so these are some of the advantages that we can actually provide for our customers, really, really >>To help. Just a final quick question. There is a, a common perception, I believe that ransomware is an on premise problem. In fact, it is also a cloud problem. Is that not right? >>Oh, absolutely. I I think that probably the biggest attack vector is in the cloud. If it's, if it's OnPrem, you've certainly got a certain line of defense that's trying to break through. But, you know, you're in the open world there. Obviously with SAS applications in the cloud, it's not a case of if, but when, and it's, and it's gonna continue to get, you know, more and more prevalent within corporations. There's always gonna be those attack factors that they find the, the flash wounds that they can attack to break through. What we are concentrating on is that resiliency, that ability for customers to recover at speed. We've done that with our traditional appliances from our heritage OnPrem. We continue to do that with regard to resiliency at speed with our customers in the cloud, with partners like aws >>For sure. Almost done. Give me your 30 seconds on AWS and Veritas. >>We've had a partnership for the better part of 10 years. It's incredible when you think about aws, where they released the elastic compute back in 2006, right? We've been delivering data protection, a data management solutions for, for the better part of 30 years, right? So, so we're, we're Junos in our space. We're the leader in, in data protection and enterprise data protection. We were on-prem. We, we continue to be in the cloud as AWS was with the cloud service provided. So the synergies are incredible. About 80 to 85% of our, our joint customers are the same. We take core unique superpowers of aws, like AWS outposts and AWS Glacier Instant retrieval, for example, those core technologies and incorporate them into our products as we go to Mark. And so we released a core technology a few months ago, we call it ultra recovery vault. And it's an air gap, a mutable storage, worm storage, right Once, right? You can't change it even when the bad actors try to get in. They're independent from the customer's tenant and aws. So we manage it as a managed backup service for our customers. Got it. And so our customers are using that to really help them with their ransomware. So it's been a tremendous partnership with AWS >>Standing 10 years of accounting. Last question for you, Rick. You got a billboard on the 1 0 1 in Santa Clara, right? By the fancy Verto >>1 0 1? >>Yeah. Right. Well, there's no traffic. What does that billboard say? What's that bumper sticker about? Vertus, >>I think, I think the billboard would say, welcome to the new Veritas. This is not your grandfather's old mobile. We've done a phenomenal job in, in the last, particularly the last three or four years, to really reinvent ourselves in the cloud and the investments that we made are really paying off for our customers today. So I'm excited to be part of this journey and excited to talk to you guys today. >>Love it. Not your grandfather's Veritas. Rick, thank you so much for joining Paula, me on the forgot talking about what you guys are doing, how you're helping customers, really established that cyber of resiliency, which is absolutely critical these days. We appreciate your >>Time. My pleasure. Thank you so much. >>All right, for our guest and Paul Gilland, I'm Lisa Martin, you're watching the Queue, which as you know is the leader in live enterprise and emerging check coverage.