(Upbeat Techno Music) >> Announcer: Live from Copenhagen, Denmark. It's theCUBE! Covering Nutatnix.Next 2019. Brought to you by Nutanix. >> Welcome back everyone to theCUBE's live coverage of Nutanix.Next. We are here at the Bella Center in Copenhagen. I'm your host, Rebecca Knight, alongside of Stu Miniman, the analyst for theCUBE. We have two guests for this segment. We have Manoj Agarwal. He is the SVP of Engineering at Nutanix. Thanks so much for coming on the show. >> Thank you Rebecca. That's good. >> And Gil Haberman. He is the Senior Director of Product Marketing at Nutanix. Thank you so much for coming on the show. >> Thanks for having me. So, our topic today is Xi Clusters. These were announced at Anaheim, at .Next back in Anaheim. Gil, why don't we start with you. Describe the business problems you were hearing from customers and how these Xi Clusters are designed to help solve them. >> Gil: Sure, first thanks for inviting me. I'm a big fan of theCUBE. It's so great to be here. To your question, at Nutanix, we've been working with customers on the vision of Hybrid Cloud for a number of years now. And the different challenges have evolved over time. Initially, there were pockets of public cloud adoption where customers wanted to simply find a way to operate across multiple clouds. But today, the challenges are different. Now, as customers are looking to adopt business critical applications that span private and public, bursting and migrating applications, there's a strong need for consistency across environments. And we gear around consistency around 3 aspects. The first is infrastructure. The second is operations. And the third is the consumption model itself. From an individual perspective, what we keep hearing is that the same VMs and applications must be able to work across environments, without significant replatforming or retooling. From an operation's perspective, cloud engineers truly need a way to utilize the same practices, integrations, in work that they have done on their applications for many years, across multiple clouds. So there's a need to sustain the same practices across these multiple clouds. And finally from a consumption model perspective, there's a need to have a platform that drives the same level of consistency in terms of licensing and software across different environments. And for that, we at Nutanix have to evolve to empower operators to be able to address all of these needs of consistency across private and public. >> Now, I would like to add something to it. You just think about three years ago. The entire world was talking about "Everything is going to be public cloud." And very soon, all these CIOs also realized that it's not going to be just public cloud or just private cloud. It's going to be Hybrid. And we ran a survey with 2,700 IT professionals who participated in the survey, and what we learned mainly 91% of them, they said hybrid is ideal. And the second thing that was not also a surprising thing was 94% of them, they said the app migration or app mobility is going to be the key. And then we look at that option like "How are you going to adopt?" And that was also strikingly similar, like what we see currently maybe 18% or so, that they are into the hybrid world and getting onto close to 41% or so in the next 24 months. >> Yeah, but Manoj, I'm glad you brought that up. When I talk to users, the thing that they're concerned the most about are their applications% and their data. And in IT forever, migrations have been a challenging thing to do and it was usually, you set up a migration and it takes you weeks or months to do it. Today, migrations aren't even going to be even a one time thing. If I'm moving from one cloud to another, if I'm moving from private to public, or even public to private. I need to have some flexibility to what I'm building. How has that informed how you're building your architectural designs? >> That's a great point. In fact, we always feel that architecture matters, and why the fundamental technologies that we are building should help. Two things that I'll say. One is the data replication technologies that we have built and strengthened over time. Plus the second thing is the network. If you get the network right, then you are very slowly there. And we had been reflecting on the data side, you know. 10 years of journey and data replication technologies like we have built. Networking we have been very hard at work on that front also in the last three years or so, with the building of Xi Cloud. We'll see and hear more and more, especially in the context of Xi Cluster. What you see is that we have done the ready integration with AWS ETCs. Thereby first of all all the services that exist in AWS. It's available to the customers with their app, running on XI Clusters without changing anything there. >> This is a competitive market so let's talk about differentiation. How do you see the product as completely different from your rivals and then how are you positioning it to your customers? >> Yeah. I'll go back to again the same thing. Architecture matters. We were not the first ones to go out with a hybrid converse like in 2013. There were a lot of competitive solutions that existed at the time. But we took our time. We wanted to make sure that we do it right. We do provide choice to our customers. That's where we matter. As we are building out solutions, again going back to the four principles. Applications sort of require change. You don't require an IPO presence to change, so when we are building the solution, we are making sure if you want to pay for private cloud, on-prem our service provider. Or you want a public cloud. Any of the big cloud players or this new cloud, that you have a common architecture underneath. You have the same management plain with the prism. You can really orchestrate, and manage the entire infrastructure. You have the flexibility in terms of the networking. Other services that you want to go and use, you have the choice of wahtever platform also. Like something that we don't want you to go and change if you don't need a change. Lastly, I would say, on the business side, we do want to give the smarty cloud world the flexibility for the customers to bring a cloud of their choice and if they want to switch, they should be able to switch with one click also. >> Yeah. Gil, I'm wondering if you can actually explain to our audience one of the challenges here is deploying unbared metal is not something that anybody can just do on the public clouds. For AWS, the first solution was actually VM ware on AWS. They had to develop that but they're now opening that to be able to use. Can you walk us through where we are with the cloud providers and that's I think part of the reason why this isn't yet generally available. Indeed, AWS has been the first to open bare metal and this is really the path for us at Nutanix to make clouds invisible as well. We worked with a number of platforms on Prem and now we want to extend that to public cloud and having an ability to actually access bare metal is the first step in doing so. Beyond that, what we've done is what we believe is the hard work of making things very simple to drive customer delight. And so what we've done is integrate into AWS rather than just running on top of AWS, inside existing accounts and VPCs of customers and the outcome has benefits on both technology and business perspective. From the technology perspective, cloud operators can see all bare metal as well as cloud native services in one place, one inventory. And we believe that this type of topology will provide better performance. And then on the business side, this allows us to do a couple of things. The first, if you are an AWS user like most of our customers, they can use AWS credits for that bare metal infrastructure. At Nutanix, we are now able to evolve our services to provide hybrid licenses, so our licenses would eventually be portable. And so you see how we are gradually building towards this portability across multiple clouds, AWS being the first cloud. >> Yeah, it's great to see Nutanix- We've seen a few other companies moving towards that model because if I'm software and truly agnostic, you should be able to have it across those environments. I believe Solidfire a couple of years ago started doing some of the things; A couple other companies. So the X in AWS sounds like it will be first. We know Google has been the partner of Nutanix for a while. Could you just give us where are we with Google and Azure? Kind of to round out the big three. >> Sure, so we have started to work with AWS and we have announced early access now inviting customers to sign up with us to get access. We are also actively working with Azure to figure out how to together bring better bare metal services and the type of software on top of that. And of course, we believe that other cloud vendors are going to open this up as well and Google Cloud being a close partner of ours is an important part of that strategy as well. >> And we are doing something with Google already as you know. We have integrated the entire stack using their nested vertilization technologies, like running on their vertilization the HB which is nested. Today, we run a lot of our customers prospect they run. The test, our experience the entire solution on Google test prime. We have brought out more than a thousand users every month, that they access it. So it's a journey, like when they have the full bare metal, you can see a lot more but we are very engaged with them. >> I want to talk about the future now and have you looked into your crystal ball a bit, 6, 10, years from now. What do you see- This is such a fast changing environment but how do you see the cloud evolving and then how do you see Nutanix? What role does Nutanix play? >> Last 10 years, it was all about how we bring public cloud into the private cloud, right? Next 5, 10 years when you think about it is all how do we really make it hybrid. The experience that what customers have come to expect in the last 10 years. You can go and pick any kind of platform on which you want to run the same stack. You won't need to worry about it. Something similar that needs to happen and the underlying architecture of technology which will go and drive that is going to be data mobility, same control plane that can go and extend this smarty cloud. This story by the way resonates very very well with the customers because it's not easy to get your IT for support, to get trained on different cloud technologies also because the talent things cost there. And if you can go and teach them one interface and have them run with the choice of infrastructure or the back form or the cloud, that's what we think we can make a huge difference for the customers. >> Yeah, so I want to make sure I understand when talking about your hybrid or multicloud strategy, we've got Xi Clusters help you get in and matches what you have on sight. Have you had a conversation about Kubernetes yet? Where does Carbon which is the Nutanix Kubernetes fit into this overall discussion? Is that just part of the platform that gets baked in and therefore we don't need to talk about it or am I missing a piece? >> That's a great question because the beauty of what we're talking about is that we bring the entire software and the entire platform with us wherever we go. Part of that stack is carbon and calm. We need the ability to have both traditional applications alongside modern applications with Kubernetes. Even hybrid applications that include some front end that might be containerized, maybe back end that is not yet containerized. And all that, everything that we've been doing on-prem, can now be moved into any other public cloud we provide. >> It's part of the compute, right? You got the VMs, now you got the containers. It's part of the backbone. >> So yeah, we've heard from some people say that Kubernetes is just the new containerized compute. We don't need to talk about it and I'm okay with that, because it's just in there. >> Yes. Absolutely. >> Excellent. Well Gil and Manoj, thank you so much for coming on theCUBE. >> Manoj: Thanks so much for hosting us. >> Gil: Thanks for having us. >> I'm Rebecca Knight for Stu Miniman. Stay tuned for more of theCUBE's live coverage of .Next. (Techno outro plays)

>> From the SiliconANGLE Media Office in Boston, Massachusetts, it's theCube. (techno music) Now here's your host, Dave Vellante. >> Hi everybody, this is Dave Vellante and welcome to this special Cube Insights, powered by ETR. We've been running these Breaking Analysis Segments and today we're going to talk about some spending data that shows that there's continued interest in hyperconverged infrastructure. So we've been running these segments over the last several weeks with our partner ETR. They've got a database of about 4,500 IT Practitioners and CIOs. They go out quarterly and ask spending intentions. So we've been sharing that, along with our opinions. These are completely independent segments. I want to disclose that a number of the companies that we're talking about today: Nutanix, VMware, Dell EMC, Cisco, HPE. They sponsor theCube, but they have absolutely no input into editorial. They don't affect our opinion in any way, shape or form. So let's get into it. I'm here with Stu Miniman. Stu is an expert in this field. He's covered the space. Stu, let's look at some of the fundamentals. What do people need to know... Alex, if ya put up the slide, Stu, maybe you could talk to it. >> Yeah. Dave, thanks. I've been watching you have some fun with this. I enjoyed swimming in some of the data here and as you know, Dave, we've been watching since before hyperconverged infrastructure, or HCI, was a term that everybody talked about. We've been looking at how these hyperscale trends are going to impact the Enterprise. We put out our server SAN research years and years ago, so we know all these companies really well. And despite the latest AI and cloud and everything, the data shows, HCI, the simplification of the data center, building out what we would call True Private Cloud is important today. So right, we wanted to know when you look at the data, first of all, how are the vendors doing? Who are the leaders in this space here? There were a whole number of startups that came in this space. When we first analyzed the market it was companies like Microsoft and VMware that owned the operating system we thought would be hugely important. If you look in the big names this environment: Dell partnered with everyone, of course they bought Dell, bought EMC, which included a stake in VMware. What's that relationship with Nutanix? How is that shaping the market? As well as how is cloud impacting things? Both from a spending standpoint, has cloud sucked away revenue from HCI as that specter has overhung everybody in the IT space? And also, how does HCI fit into multicloud and how does that fit? >> Okay, great. So thanks for that setup, Stu, now let's get into some of the data. Alex, if you bring up the slide, the next slide. This is spending intentions for Nutanix, VMware and some other vendors. I'll go through that. But it's basically showing Nutanix and VMware are fighting it out. You know they're in this internecine battle and in social, and (chuckles) there's a war goin' on, because there's big money to be made here. So for those of you who are familiar with these segments, this is data from Enterprise Technology Research, from their July 2019 Spending Intentions Survey. So they're asking about spending intentions for the second half of 2019. The end of the survey, out of the 4,500 people in the panel, 1,068 responded to this survey. So on the left hand side you see the vendors: Nutanix, VMware with vSAN, Dell EMC with VxRail, specifically. Then SimpliVity, and then Springpath, or Cisco. So what the chart shows is what we call, Net Score. And net score is calculated by taking the red, on the bar, which is, we're going to leave the platform, that's the dark red. The lighter red, which is, we're going to spend less in the second half. The gray, which their spending's going to be flat. The dark green, or the evergreen, which says, we're going to increase spending. And the lime green, which I'm going to add to the platform. You take the green, minus the red, you get net score. Higher the net score, the better. You can see, Nutanix and VMware with vSAN are leading the pack. And then we'll go through that. But then you see, Shared Accounts. That's the number of indications for spending that they received out of those 1068. So Stu, what is this data telling you? >> So first of all, Dave, it confirmed kind of the general market share numbers that we hear out there. The vendors that track that on quarterly. VMware has the most customers, has the largest revenue, and their largest partner for that, of course, is Dell. VMware and Dell go to market, joint product development, joint engineering, joint go to market and it's the biggest piece of vSAN, so that's where we specifically wanted to look at the VxRail. And vSAN and VxRail, doing very well. They're adding new customers; was interesting to me that you saw VxRail kind of ramping up a little more on the, attracting new companies, but also looked to be losing some on the tail end of the dark red. As opposed to vSAN in general, is a little bit more stable. We know how many thousands of customers they have out there, and Vmware's a software story as opposed to VxRail is that full appliance. Nutanix is the second horse in this two-horse race that we're really talking about here, from HCI. There's some discussion in the marketplace after two quarters being down, is Nutanix showing weakness? What's happening there? The most recent quarter announcement was that Nutanix is doing well, seems to... They had a little bit of change as they're going through their move to a software model and sorting things out with sales and marketing in their channel. The data here shows that the second half of the year looks good for Nutanix. So to some of the questions I asked in the first slide, Dave, Nutanix and VMware, of course the clear leaders in this space. SimpliVity, which was of course bought be HP, Springpath which is the hyperflex from Cisco, are far behind those two out there. And it seems that even though Dell and VMware are fighting, very much with Nutanix, that is not heavily dampening Nutanix's from the respondents in this survey. >> Okay, and just a word on the data, so you see 184 shared accounts for Nutanix, 174 for VMware and down the line. Only 42 for SimpliVity and only 18 for Springpath, and Cisco. It's an indication of the size of the install base, obviously the more shared accounts, the more mentions, the larger the install base. Again, they're statistically significant; ETR does a very good job of that. Let's look Stu, at... Oh, actually I want to make another point here. So how are these net scores? Well let's put 'em in context. The hottest net scores we've seen recently are: Snowflake, and UiPath, with 80% plus, net score. Okay, so that's really, they're off the charts, they're growing like crazy. We saw Salesforce with 55%, so, and Workday sort of in there as well. Companies that are growing share. So SAP in the 30% range, and so you see the Dell EMC, VxRail, that's kind of holding serve. It's not like, dramatically gaining share, but they're growing a little bit and then-- >> And I think it's a lot, Dave, it shows to the maturity of this market. HCI is not new, both Nutanix and VMware have thousands of customers, specifically with V's then we're talking VMware. So it was more, when I saw some of your charts, Microsoft has a similar net score. >> Right >> Well liked, good install based, still growing and the like. And brings in the discussion of when we did some cross section of the analysis looking at cloud companies and how does this impact their public cloud spend; is this detracting if this customer's also doing public cloud? And the long and the short of it is VMware and Nutanix are pretty much the same if not actually a little bit better when you talk about a customer that's looking at their overall cloud spend. So to me that really signals that both VMware and Nutanix are doing a good job into how their solution fits into the customer's overall hybrid cloud strategy. >> All right, let's take a look at the next slide, which talks to time series. So this is hyperconverged infrastructure spending intentions again, for the second half of 2019, over time. So the July '19 Survey you can see is the most recent one. We go all the way back to January '17 and you can see Nutanix on the top, VMware or vSAN on the bottom. We just selected those two. We're just repeating the net score and the shared accounts. And you can see these things tend to bounce around a little bit. You can see Nutanix maintains a lead, but the market's startin' to converge. These two companies are coming together. We hear a lot about vSAN doing very well, it's kind of held on. You can see a slight downward pressure in July, in the July survey. It's unclear what that means. That could be an indication of just some uncertainty in the marketplace. Some economic macro concerns. Tariffs, potential headwinds there, so there could be some uncertainty there. But what do you takeaway from this slide, Stu? >> Yeah, first of all right. As you show, Dave, VMware is a bit more steady, Nutanix gone up for bit and come down. Both of them stayed relatively stable. Somewhere between kind of the 45 and 55 lately. A little bit, if you look at the overall trend, Nutanix is down. VMware could surpass them from the net score in the future, if this trend holds. But both of them doing quite well. When you looked at all the other vendors in there, of course the scale is just showing 40-70%, if you put all the others, which are down much lower, you can see once again, that kind of the clear leadership. These two companies, just strong lead. Does not look like there any challengers in this space that are ready to be a clear number three yet, in the market. >> But Nutanix at one point had no competition. >> Yeah. >> Okay, now vSAN comes in and of course-- >> Oh no, absolutely. So no, SimpliVity and Scale Computing, and there were a whole host of startups. There's all the brand new startups in the space. Everything from little companies like Diamante, Pivot3, who was around doing this before it came. So there's always been a lot there, but Nutanix is the one that separated from the pack. The only one in this space that's gone IPO. But VMware's there, Microsoft won that, they rebranded their Azure Stack HCI for what they put in the data center last year. So expect Microsoft partnering with all of the big server manufacturers to push farther into HCI, but really has not directly impacted this market too much, just yet. >> But there's definitely been some pressure on Nutanix from an earning standpoint, the stock's been hit. You've had some executive departures. There's some rumors about acquisition with Google. Your thoughts on-- >> Yeah, definitely. So John Furrier just had Dheeraj Pandey, the CEO of Nutanix, in our Palo Alto studio, leading up to the Copenhagen show for Nutanix that I will be at. Sure. Sunil Potti who was basically the number two at Nutanix, is now working for Thomas Kurian, TK, over at Google Cloud. My indication from what I hear, he is not over there to help broker a deal. Sunil had a great run at Nutanix, there was a clean break there, but there is a mostly new executive team at Nutanix. Now a couple of years past the IPO and the team at Nutanix, they have their platform. The have a bunch of SaaS offerings that they're doing there. Do they have a relationship with Google? Absolutely! They had Diane Greene at one of their events a couple of years ago. They did joint engineering. But I actually saw that engineering effort cool off a little bit in the last year or so since the new regime came on in Google Cloud. So does Nutanix have a lot of Enterprise accounts and know how to work with the Enterprise and could that be a boon to Google? Absolutely! But the personnel of a Nutanix executive over at Google, and Brian Stevens who's the CTO of Google Cloud being on the Board of Nutanix? I do not think that that is telegraphing that an acquisition is going to happen. It could. We see lots of big acquisitions. Nine or 10 billion dollars from Nutanix could be interesting for Nutanix and help them get in a lot of places and help Google. But Dave, I goin' on record say, I don't think it's going to happen. I don't think Cisco is going to buy Nutanix. Infrastructure's not the real push for Chuck Robbins and that team. And at the Google Cloud event, Dave, that we were at, we saw Sanjay Poonen from VMware up on stage touting how deeply VMware was going to partner. So both VMware and Nutanix are partnering with all of the clouds. VMware of course has a very deep relationship with VMware. They're going deeper with Google, they are even partnering with the old enemy of Microsoft, so I would give VMware definitely has a deeper and more public relationship with all the public cloud providers but Nutanix is also partnering and expanding their portfolio to give themselves good growth beyond just the core HCI market. >> HP's another one. So Nutanix and HPE are workin' together. Kind of the enemy of my enemy is my friend. Nutanix was not at VMworld this year; they're kind of booted out. So they belly up to HP. >> Yeah, HP loves having, they have their, "As a service offerings," and Nutanix is one of those as well as Nutanix can sell the HP. So as the, right, the Dell relationship is likely going to die down over time, as Michael Dell on the team, want to sell more Dell hardware with VMware software. HPE is another... And they also partner with Lenovo on the Nutanix side. >> All right, Stu, bring it home. What are the key takeaways on this cube Insights. >> Okay, so HCI, who is a two-horse race right now. There are interesting companies to look at beyond the two, but if you want to understand who the leaders are in the space it is: VMware, especially with their VxRail and Nutanix, are the two leaders in that space. Really looking and understanding how they're expanding into multicloud and hybrid cloud solutions. VMware very much with their VCF offering, which packages vSAN to go into the VMware cloud offerings. And Nutanix with an interesting strategy, both with how they really spread some of their services like what they're doing with Xi Cloud, as well as some SaaS offerings, which some of them really have a disconnect. Not in a bad way, but just are not tied directly to the hardware. What the infrastructure companies have tried to do for years. Both of them, VMware's done tons of acquisitions. Nutanix has done quite a few acquisitions too. >> So your second point here, what's the impact of Dell VMware versus the Nutanix battle? You say not a significant impact on spending intentions yet. I mean there's clearly some evidence that those two markets are comin' together, that VMware's pressuring Nutanix. But why do you say, yet? What do you expect? I mean is it the OEM deal with Dell? >> It's the OAM relationship. There is huge pipeline of Dell hardware with Nutanix software and they're at loggerheads. So absolutely, the Dell family: Dell, EMC and VMware are doing all they can to dial that down. So they put pressure on the channel. And even some of the most loyal Nutanix channel partners that work with Dell, have had pressure to do more and more VxRail. So I expect it to have impact, but just as, Dave, I'll dial back the clock. You probably remember when EMC had a relationship with HP and HP killed the OEM of EMC storage. EMC stormed back and got a lot of those accounts. Same thing happened when EMC and Dell broke up a couple of years before the acquisition. So Nutanix is storming to go with HPE as one of their server partners, and (mumbles). So can Nutanix keep their growth and momentum going as Dell is no longer their biggest partner? >> Well, they're fighting a two-front war. They've got one with Dell VMware and they're also fighting the war with the public cloud guys, even though they're partnering with the public cloud guys. All right, they're sort of taking that cloud model but of course it's on prim. So you say how this public cloud affects HCI spending; not a significant impact on spending intentions yet. Can I infer from that that you do expect there to be pressure on that second front? >> Yeah, so as I've talked about before Dave, when we look at VMware and VMware gives the VMware cloud in AWS. Some say, "Great, that gives me a nice path to be able to use public cloud. But maybe I don't need some of this VMware licensing and software in there." The question for Nutanix is very similar. What services do they have? How do they become more sticky in customer environments? And absolutely, they're driving a roadmap for that in working with their customers. >> Well the thing about Nutanix is that customer's really happy. The customer's really like Nutanix. They like the simplicity. I've talked to a number of Nutanix customers that are very happy in that regard. And they have a leading product in that regard. But they're aiming at the multicloud space and can they play there? >> And Dave, you make a really good point. The killer use case, what did HCI deliver? It delivered simplicity. Today, if you talk about public cloud in general or even hybrid or multicloud, (chuckles) simplicity is not how you would describe this. So can the customers, the companies that did HCI, so, VMware, Nutanix, HPE and Cisco, they're all fighting for that hybrid and multicloud environment. And if they can help deliver simplicity of management, simplicity of leveraging my data, they can be successful in that space. >> Okay, so you're sort of positive on the multicloud, their position in multicloud. Even though they're not one of the big five. >> Yeah, and the good news for a Nutanix is that they're growing off of a much smaller base then say VMware, when you say they have five or 600,000 customers. Hey, how big of an impact will public cloud have on them? >> All right, so we don't pick stocks. We're not making recommendations. (laughs) But, do you feel like it's overdone, that it's undervalued? Independent of the macro. Do you feel like the pressure on Nutanix is warranted, or do you feel like it's got legs? >> So I feel Wall Street tends to over adjust when they go through things. When I talk to my friends on the Wall Street stuff. Definitely Nutanix took more of a beating probably then they should have. But they had two quarters that weren't great. And some of that was the management changes, they blamed that they couldn't hire sales and marketing fast enough. Something we'd asked, if you're a company in the Valley and you've gone from a few hundred people to a few thousand people. How do you keep adding good quality people? That's challenging. So yes, I think we've actually seen Dave, in the last week, or so Nutanix has been one of the fastest growing stocks in the tech market. So they're adjusting some. So I still think Nutanix has plenty of room for growth. The question is, what's their path to say, two billion dollars? Or is it an exit for 9-10 billion dollars down the road? >> All right, Stu, some great stuff. Thank you for that analysis. And thank you for watching this episode of theCube Insights, powered by ETR. This is Dave Vellante, for Stu Miniman, we'll see ya next time. (techno music)

Live from London England, it's the CUBE covering .NEXT Conference Europe 2018 brought to you by Nutanix. >> Welcome Back to the CUBE here from London. Our reporting of Nutanix NEXT 2018 in Europe. With me here is Frans Coppus. You are an ICT manager at  Driessen? I'm very curious. Driessen is a customer of Nutanix? I understand that you develop HRM software among other things? >> Tell me about Driessen.  How does this work? >> Yes, well Driessen is a family business. We are a business service provider for the public sector in the Netherlands and the Driessen Group is actually a group of companies that make employment possible. We do that through the offering  of several different services. You should think of connecting people to work, so a staffing function, but next to this , we also develop software and services to take over processes for other companies or to make processes easier. >> That sounds a bit like on one hand you are a Employment Placement company, helping people get work, but on the other hand, you also seem to do something with software and the delivery of your services as a software product. How does that work? >> Yes, that's right. We deliver services to make other companies' processes easier.  You should think of payroll and things like that, but also all other kinds of processes for which we mainly use the digital services that we develop ourselves. For example, think of  a package like AFAS profit , where AFAS profit falls short on some functionality that customers would want to make use of. We can  help those customers to provide that extra functionality to improve processes. >> Yeah, that sounds like you are software development shop. You develop the software in-house? >> Tell me more about that.  Do you do this on-premise? Do you use the cloud? What tools do your developers use? How does that work? >> Well, have a team of about 25 in-house software developers.  They are spread across a number of our different companies , and the software we develop runs  partially on prem  and partially also in the cloud. >> Yes, and I understand that you have been doing this with Nutanix for a year, year and a half to provide a foundation for your infrastructure. Can you explain how this works?  What Nutanix products and services you use? What are some of the benefits? >> Well, we started looking into modernization  of our data center at the beginning of last year. That was how it started. Then we looked further into things. We already had some interest in Nutanix. We did some more research and  ultimately we  decided to choose Nutanix and basically slowly replace our entire data center  with Nutanix. So we installed some hardware  but subsequently we also selected AHV as the hypervisor layer. We came from VMWare so we basically migrated everything. I must say that the implementation itself went very quickly. The implementation of the Nutanix environment  was really a piece of cake and then we started to migrate our VMs to the platform one-by-one.  And this year we completed this process. Currently, our entire data center is running on Nutanix.  What were the problems you were hoping to solve? Well, you should mainly think about scalability.  We liked the fact  that we could start small with Nutanix  but when needed we could scale easily. Performance was an issue in the previous environment, which we also completely resolved. I think the biggest challenge we had was to make things easier. We had created a pretty complex landscape over the years. That was actually the main reason why we ultimately chose for Nutanix. Simplification of the whole landscape. Easy to manage, especially also  since we are using a mixed solution. Partially on- prem and partially in the cloud. With Nutanix this is easy to manage. >> Yeah, exactly.  Since you are an ICT manager. I can imagine that your role also changes? I assume that at first, the main  focus was on infrastructure, as it was difficult and where attention was needed. How has your role changed over the course of time? >> Yeah, that's exactly right. That role is changing.  Initially, you are very focused on the operation to keep all the "balls in the air." All sorts of things you actually don't want to have to deal with.  And this is what we are now seeing. We are able to manage the environment with fewer people.  That means you free up more time and together with the management team,  you can use this this to look into how we can improve our services How can we improve our availability?  And all of this at equal or lower cost and with less effort. >> Yeah, and I assume, to use the word " digital transformation", is also a challenge for you? You want to move closer to your customer.  How do you do that as an IT department? How how move closer to the business internally at Driessen, but also external customers? How does that work? >>Well, the needs of the customer is often translated by the Business to the software developers. What is important for us is the time-to-market. The development life cycle is pretty rapid. We work a lot on the basis of orders and as such it often goes paired with requirements that we need to adhere to. So, time to market is very important in such cases. With Nutanix we are actually able to deploy software faster and offer new features to our software engineers  who in turn can use this. >> Yes, so you are saying that your software developers can thus get closer to the business. They require less time to lay the groundwork, as it were.  We are here at .NEXT, we have watched the  keynotes, heard a lot announcements. Nutanix started as an infrastructure. A so-called modernization of what you had. Meanwhile, there are 15 products. It has become much more gigantic. When you look at the growth of the amount of people walking around here, 3,500 people.  I am curious, how are you looking at this? You will be walking around here for a few more days. You've watched the keynotes. You see the crowds. What is your impression of the event? >> Well I must say, "very cool!" Last year I went to Nice, That was a very good conference. That was also the reason that made me think "I coming back this year for sure". During the first keynote, it was really cool to see, how much bigger the entire  event has become but also the success of Nutanix. Last year, in Nice, I spoke with  some of my peers who were still 't doubt whether they would transition to Nutanix. Well, I told him about our experiences and told them I would recommend it for sure including the use of AHV as hypervisor.   You are starting to feel how everything has matured. So much more has been added. I was impressed with what products  I have seen over the last two days along with the simplicity and maturity of the products  Really super cool to see.  What really stuck with me.   What really impressed me was Frame. Frame is really super cool. It's also something we are for sure looking at to use. In addition, Beam looks very appealing. I must honestly say, we now have our entire data center on prem. Also our DR environment is on prem, because when we made the decision, there was no Beam. If I would have to make the decision again, I would absolutely choose Beam to help solve DR. There too, the simplicity with which you can manage it is really cool to see. Well, in the future we continue  to monitor such developments and I am sure that we will work with  products such as Beam and Frame in the future. >> The made the announcement of the core product. The core products to essentials, which is a bit of the uplift. Those are the next small steps you can take. And then you get enterprise. Thats where you are especially finding the new product offerings such  SaaS products , the Xi Cloud , and what I am curious about is the following. I also know from Nutanix from the perspective of infrastructure? I have seen them grow. And looking at all the announcements they have made. All those products they have developed  What was for you the lightbulb moment?  The moment where you thought "when I get home after the weekend,  I am going to use this?" I want to learn more about this!"  What is that one product from which you say  I want to get started with that!" >> I think , if I had to choose it, then I would say, "I will definitely get started with Frame"   to look at how we can provide our colleagues with a workplace when they work remote or things like that. >> Yes, >> Is also one of the issues that you are trying to solve using Nutanix? Traditionally, Nutanix did lots of VDI. Still does a lot of VDI. Is that something that the Driessen Group is moving towards? >> Yeah, well at least for a part of our colleaguesI, I see ways to implement Frame as a substitute for a VDI environment. >> Yes. Yes. Absolutely. Exactly. Yes. Exactly right.  >> Also, I was really...  and I did not realize that  they were working on this, but Nutanix  is building its own Cloud I am very curious what this will bring.  Especially if this will seamlessly integrate with your on prem environment. At the moment, I find that to be the strength of Nutanix?  The fact that you can  you can easily switch between on your own prem Nutanix environment or a cloud environment. Well, if there is also another Nutanix in the Cloud option, that would be cool. Exactly. >> All right, last question. You employ developers  Today, we also saw some announcements  during the keynote around cloud-native as it is called so nicely So Karbon, databases in the Cloud with Era with Buckets, S3, S3 storage. Are these things from which you think,  "my developers will make use of this?" Yes. Yes. My developers are all knocking on the door.  They want to  get started with containers and other stuff. So that's very good to hear that Nutanix is also diligently working on that and how it will integrate within Nutanix.  So my software developers will be very happy with that. >> Yeah, great!  Well congratulations! That really sounds like a top store!. A very nice story about Driessen. how you are using Nutanix. Well, I wish you success with your next steps that you will undoubtedly take. That was it for now.  Thanks for watching the Cube together with Frans here in London Til next time.

>> Live from London, England, it's theCUBE. Covering .NEXT Conference Europe, 2018. Brought to you by Nutanix. >> Welcome back, I'm Stu Miniman, my cohost Joep Piscaer, and you're watching theCUBE here at Nutanix .NEXT, London, 2018. Happy to welcome back to the program the co-founder, CEO, and chairman of Nutanix, Dheeraj Pandey. Dheeraj, thanks so much. Congratulations on 3500 people here at the third annual European show, and thanks so much for having theCUBE. >> Thank you, my pleasure. >> All right. So, Dheeraj, first of all, you got a lot going on. Big company event here, last night you announced the Q1 2019 earnings. I guess, step back for a second. Nutanix is now, nine years since the founding, you've been public now for a little while, you got to be feeling good. The company's reached a certain size, very respected in the marketplace. So how are you and the team feeling? >> Yeah, well, I tell people that it's actually fun to be a public company. And obviously there is a cost to being a public company, because you're on a quarterly treadmill, in some sense. But Wall Street also keeps you honest. Just like Main Street keeps you honest on quality of product and customer service, Wall Street keeps you honest on spend and what does it really mean to grow at scale. So I like the fact that there is two good streets that are keeping the company honest. And it's really fun to think about capital allocation, one of the big things as you grow. I mean, you're going to spend more than a billion dollars this year alone. How do you allocate capital wisely is something that I think a lot about in (mumbles). >> Yeah. So, at this show, you kind of change some of the positioning of the portfolio. It's the Core, Essentials, and Enterprise, and right, that asset allocation, when I look at Essential, Xi Cloud, there's all these different pieces, some of them through acquisition, some of them created internally. You need to be careful that you don't over-commit, but when do you decide to kill stuff or keep it going, so you got a lot of plates to spin now, a lot more than you did a year or two ago. >> Yeah, absolutely, and it's not just product development. It's also marketing and sales and G&A. I mean, there's other departments we need to think hard about. Like, how do you create brand awareness for these new things? How do you do demand generation? How do you have a specialty sales force? All those things have to be considered, so, nine years, it's been a journey, but it still looks like it's nothing. And we're still a very small company, and we need to think hard about the next five years, in some sense. >> Yeah. So, one of the metrics you gave Wall Street to be able to look at is, what percentage of customers are using more than just the Core? So the Essentials or the Enterprise. And if I got it right, it's up to 19% from 15%, the quarter before. I wonder, is the packaging, how much of that is for Wall Street? Somebody cynically might look and be like, hey, is the Core market slowing down? And therefore you need to expand. We've all seen public companies that need to go into adjacencies, and shouldn't you stick to your knitting? You've got a great solid product with leadership in the marketplace. >> Yep, absolutely. Also, look, we are not bundling them in SKUs so we cannot force customers to actually buy them. We're not doing financial engineering of dollars, because these not SKUs or bundles. This is a journey which is mostly advisory, in some sense. This is how you should start, this is how you should go, and this is advisory for our sellers and our buyers and our channel people. Everybody needs to say, look, have the customer go through the journey. If you had to do what he just said, probably would've bundled them in SKUs and then allocated capital to one or the other. I think, to your other comment about just sticking to the core, Juniper stuck to the core. And many companies out there which just stayed as a single-box company, they stayed at the core. And eventually you realize the market has moved faster than your core itself. So there's this business school thinking, they call it the Icarus Effect. The Icarus Effect is all about, I'm so good at what I do that I can fly to the sun and nothing will happen. But you don't realize that Icarus, the wings were actually pasted using wax. And you go to the sun, and the sun actually melts the wax. So companies like FGI and SUN, Norca, many companies just stuck to one thing. And they couldn't evolve, actually. >> Obviously you're not sticking to the core alone, right? You're expanding the portfolio, I mean, you're not just an infrastructure company anymore. You do so much on top of the infrastructure on-prem. You have so many SAP services, so how do you manage the portfolio in terms of the customer journey? Because there's so much to tell to a customer. How do you sell it? How do you convince a customer to go from Core to Essentials to Enterprise? >> The most important thing is leverage. Is Essentials going to leverage Core, and is the Enterprise going to leverage Essentials and Core itself? Case in point, Files is completely built on top of Core. So every time somebody's using Files, they're also using Core. If you think about Flow, it uses AHV underneath. Frame, and case in point. When it's going to deliver desktops, it's going to use Files because every desktop needs a filer as well. And then when Frame delivers desktops on-prem, it's going to use all the Core. So the important thing is how they don't become disparate things, like they're all going in their own direction, is there a level of progressiveness where you say, well, if you're using the Enterprise features, a lot of them actually go in and drag in the Core as well as Essentials. So how do we build that progressive experience for the customer, where each of these layers are actually being utilized, is the important piece. >> Dheeraj, so, we're talking a lot about the expansion beyond the Core. But there was a pretty significant activity that your team did on Core itself. So the first time I heard about it, it basically said, we're doing an entire file system rewrite. Think of it almost as AoS 2.0. Now, from a product name, I believe it's 5.10, so I might have trouble remembering which release it was, but talk about what went involved in that. Obviously a lot has changed in the nine years since you created it, so. >> Absolutely. Yeah, yesterday in the earnings call I talked about it too, that people scoff at Core infrastructure. Like, oh, it's going to be a commodity because it's good enough infrastructure. But then I argue that there's no such thing as good enough infrastructure. And companies struggle when they don't focus on infrastructure itself. It's like food, shelter, clothing in the Maslow's hierarchy of needs. If you don't get that, then there's no point self-actualizing it. So, Core infrastructure completely destroys network insecurity. You got to get it right. I mean, look at Oracle, how it's struggling with IaaS. And look at Google, they're trying to figure out how to make it relevant for the Enterprise. Azure has like three or four different stacks for infrastructure. One for old 265, one for Azure DB, one for Azure, and now they're rewriting it for Azure itself. VMware has three different infrastructure stacks. One for three tier, where they are very happily, they're saying, look, let EMC, their NetApps actually are underneath, and Cisco's, and stuff like that. And then they have this software-defined infrastructure with commodity servers. And finally, they have VMware-enabled AWS which is going to use AWS services. So now you have three different forks of your core base, in some sense. And for us, what's important is how we use a single core base for everything. So architecture matters. I was arguing yesterday in the earnings call that good enough infrastructure is an oxymoron. You need to get core right before you can go and try to live the other layers of the Maslow's hierarchy of needs, actually. And that's why we went back and thought about, as the workloads were growing and increasing, and we had mission-critical stuff in memory databases, what do we need to really do about the way we lay out the data and lay out the metadata? So as you know, metadata is at the core of anything in systems, and especially storage systems. And the metadata of our erstwhile system was actually very completely distributed. And then we realized that some things can be local, and some things can be distributed, and that's better scale. Again, going back to this understanding of what things can be represented locally for a certain disk versus what things need to be global so that you can go and say, okay, where is this data really located? What drive? But once you go to the drive, you can actually get more metadata. So, again, you're getting more progressive scanning. So at the end of the day, our engineers are constantly thinking about performance and scalability, and how do you change the wings of the plane at 35,000 feet? It's a very big challenge. >> So that's one of the issues, right? So you're still focusing on your own infrastructure layer, right? But many customers do already have presence in a different hardware stack, or the public cloud, or some service provider. So not everything runs on your platform. So how are you planning to deliver the services ensemble to customers that don't necessarily run on AoS? >> So that's the multi-cloud journey, which is basically the enterprise journey of our customers. I said this yesterday in the earnings call as well, that all our services should be available both on-prem and off-prem. This idea of a VPC, that is multi-location, is what hybrid cloud is all about. So how do you get a virtual private cloud to really span multiple clouds in multiple locations? I think you saw from the demos today of how you're really running all of AoS on top of GCP virtual infrastructure. And in the course of the coming year or two, you'll see us do the same thing, BEM at Amazon, BEM at Azure. Because they deliver servers in their data centers and that's leverage for them because they've already gone and spent so much money on data centers that it's easy for them to deliver a physical server that our software can run on top of. And if people are not using AoS, they'll still want to use things like Frame and Beam and COM and other such things like that. >> Yep, Dheeraj, what are you hearing from customers and how do you think of hybrid, as it were? You know, a lot of attention gets played to things like Azure Stack from Microsoft from VMware on AWS, I know you've got some view points on this. >> Yeah, no, in fact, so if you go back five years, hyperconvergence had become a buzz word maybe three, four years ago. And there were a lot of companies doing hyperconvergence. And only one or two have survived and it's us and VMware, basically have survived that. Everybody else has a checkbox because the customers said well, what about that? Will we have a check box? But, it's really about operating system sort of hyperconvergence. And it has to be honest. And it has to really blur the lines between compute and storage and networking and security. I think hybrid needs to be honest and one of the killer things that hybrid needs is blurring the lines between networks, blurring the lines on storage so you can do one click replication and one click fail over. So a lot of those things have required a lot of innovations from us. That's why we were delayed in Xi. We didn't want to just put up data centers and just like that. I mean, if you go back in time to many hardware companies were putting open stack data centers and calling it their new cloud in response to Amazon. And VMware tried vCloud Air. And they had a charter to go spend money. They weren't going to spend a ton of money on hardware. Without even knowing that the cloud is not about data centers. Cloud is about an experience. It's about eCommerce and computing coming together. And you have to be passionate about a catalog. You know, the marketplace, the catalog so that people can really go and consume things from a catalog. I think that's what our experience has been that. Look, if you don't think of it like a retail giant or retail customer, which is what Amazon has done such a good job of. You know, they've thought about computing as an eCommerce problem as opposed to as a compute storage networking problem itself. And those are the lessons that we have learned about hybrid just as much >> Alright, you did a nice job on the keynote, laying out that Nutanix, like your customers, you're going through a journey. The crawl-walk-run, if you will. We got a tease in the keynote this morning about something cloud native. Where you're going. Final question for you is as you look at the company, you said it's still young, where are your customers going, where are some of the things they need to work on, and that Nutanix will mature with them as we look to move forward? >> Well, I mean, look. I think everybody knows where customers are headed. They're questioning who fulfills the promise because the requirements are all the same. They all want to go and use next generation infrastructure, they want to modernize their data centers, the infrastructure. They want to use some things that they want to own, some things they want to rent. The question is, where is the best experience possible? And by that, I mean not just systems experience of hybrid clouds but also customer service and having an ever-growing catalog and being able to deliver things for developers and devops. And technology will come and go. Two, three years ago, the Puppet and Chef were the hottest thing on, now today, it's Kubernetes. Tomorrow, it's going to be something else. It's the fact that what you see is what you do. And what you do is what you say. In our business, it's about integrity. I was arguing about this yesterday in the earnings call, as well, that building business software is a little bit easier. I shouldn't trivialize it as much but if people use business software, they can work around weaknesses of business software. But if you are in the business of infrastructure, applications cannot work around weaknesses of infrastructure. So integrity matters a lot in our space, actually, and that is about great products, great customer service, fast innovation, recovering fast, being resilient. Those are the things that we focus a lot on. >> Alright, well, Dheeraj, thanks again, always. We didn't even get to talk about the width part, the fourth H that you've been talking about for the honest, humble, and hungry. So, thank you. Congratulations to the team and always appreciate you having on our program. >> My pleasure. >> Alright, for Joep Piscaer, I'm Stu Miniman. Stay with us. Two days live of wall to wall coverage. Thanks for watching theCUBE. (light music) >> I have been in the software and technology industry for over 12 years now. And so I've had the opportunity as a marketer.

>> Live from Washington, DC, it's TheCube, covering AWS Public Sector Summit 2018, brought to you by Amazon Web Services and its ecosystem partners. >> Welcome to TheCube, Silicon Angle Media's Production here at the NWS Public Sector show in Washington DC, I'm Stu Miniman, my host for this week will also be Dave Vellante and John Furrier, doing a day-and-a-half worth of programming, I've covered lots of Amazon ecosystem shows, happy to welcome to the program first-time guest, and first-time on the program Dan Fallon, who's the director of Public Sector Systems Engineers at Nutanix, Dan, great to see ya. >> Thank you, Stu, happy to be here. >> Alright, so you know, you and I have known each other for a number of years. I've been at every .NEXT actually that Nutanix has has, really most of the time at Nutanix, you know, we're talking about people's data centers, but you know, we've been watching how Nutanix really went from, you know, that hyper-converged term that we through out, but now you know, the messaging is around Enterprise Cloud, the portfolio has definitely expanded, as have the partnerships. Give us, Dan, why Nutanix is at the show, and a little bit about your role at the company. >> Yeah, yeah. So, I lead our public sector technical groups systems engineering, so we have all our government business, state, local, and federal, rolled up into one group. So, local show for me in the DC area, and this is our second year attending the Public Sector Summit, so you know, last year it was after our Calm acquisition, we're really starting to step into the space of, I'd say, solving the cloud problem for organizations, and blending your on-prem environment into your public cloud. So, that was you know, kind of our focus last year when the marketing team and we kind of get together, and figure out what shows we're at, we're like "Let's do, you know, AWS", it was kind of a new one, we're like "Alright, we'll be good." I would say it was a hit last year, and then this year, you know, we made some additional acquisitions, and now it's at our large .NEXT conference, and really focusing on Beam and cost optimization. >> Dan, I remember back a couple of years ago, people would, you know, knock on Nutanix, they're like "Ah, they're just VDI, and really, they only work on the government sector." You know, it's like federal is like a big thing, cause they can get to a certain price point that, you know, some person can sign off on, and we're like "Um, government's pretty, you know, pretty impressive segment." You know, you look at this show, I hear we're expecting about 10,000 people, which is typical for these regional shows, but this is more than that, the Public Sector, so tell us a little bit about your customers, and love to hear you talk about what use cases they are, and how they think about cloud, and look at Amazon, and look at Nutanix and how that fits for them. >> Yeah, and I actually just heard from our director of marketing here that it's approaching 14,000, so they're blowing up the attendance. Yeah, and I mean, definitely government is unique, that's kind of why we have it divided into a vertical, and Nutanix was very early on in the federal, and unlike a lot of startup small companies, instead of running away from the additional security burden, the compliance requirements, the leadership, Dheeraj, leaned into it. They said "Alright, let's build out our federal team, let's go our and do common criteria compliance.", some certifications that cost a lot of money. So they really, you know, leaned into that, and helped the organization grow in federal, and that kind became our beach head, and then obviously Nutanix has just grown around the world since then, but across public sector, really a couple different verticals. They actually combined the government units about a year ago, now, so I'm getting more and more familiar with the state and local business, as well as the education, and you can kind of look at those as three separate verticals, and then my kind of background is federal, I've been here doing contracting consulting work for the federal government, and now Nutanix. So, they all kind of have a different spin. In the federal government, since we're in DC, start there first. Really big focus on data center optimization, and Cloud First mandates, so you know, I get into discussions, cause there's really a larger conversation to be had on, like, what is cloud. A lot of people see it as a destination, but really they have scorecards that they need to close, consolidate data centers, and part of that involves moving to the cloud, part of that involves just refactoring their on-prem, and you know, could be hyper-converged, just really getting to a better optimized state in their on-prem data centers. >> Yeah, and one thing I like is when you talk to customers, they don't get into these arguments over, like, "Well, what is a private cloud? How do I measure these public clouds?" They're like "Yes, I have a cloud strategy", and you're right, the government has certain, here's the criteria we need to follow, here's the services you can buy, you know, I'm sure they've got GSA contracts for lots of different things that they can buy off of, but Nutanix has a tool that you're talking about at the show called Beam, why don't you explain how that fits into helping customers understand, you know, what applications they put where, and how they manage their entire infrastructure. >> Yeah, and I think whenever I get into those conversations with cloud, I always like to understand "Alright, why cloud, why are you moving into cloud?", and a lot of times it is higher-level mandates, you know, that there's a presidential memo, there's a new, you know, so there are laws they have to follow in terms of optimization of the data center, but if you peel it back, there are, you know, agility, and getting rapid time to market, but the cost is a big thing, and a lot of times because of those mandates, the cost kind of has to be a second factor, and so it might end up being more expensive because they're not really taking that into consideration. Cause, they're being told to go, so when Nutanix launched Beam at .NEXT, I really see it as a very good play in the public sector space, because I hear agencies kind of get the bill after the fact, and then they have this shock of like "Well our budget for cloud spend this year is going to be eaten up in our first couple months, you know, based on this first bill." So, with Beam, we have a lot of governance and cost control, but also the budgeting aspect, which I think will be huge in government, cause they have a fixed budget, they're not as used to doing things opex, they're very capex minded, so the cloud spend, they kind of have to change how they're thinking, and beam gives them that budget analysis so they can say "Alright, I'm going to spend this much a month", and do the allocation and break it down. >> Yeah, it's funny, for people that don't work with the government, they always hear like "Oh, well they've spent, you know, $100 for a hammer, they're overspending", and on my career, I've worked with government, and you get the calls at the end of the quarter, which is like "Oh my gosh, I haven't actually used up my budget, and I better use it now or I won't get it next quarter, or next year", so, you know, cost absolutely a key concern. Maybe drill us in one down level as to, you know, what kind of things, how does Beam help them, you said understand, optimize what they have, as well as plan for the future. >> Yeah, yeah, so you know, Beam hooks into the public cloud providers, as well as your on-prem staff. There are a couple different views, we've already refactored it into the nice Nutanix UI, so that you have the same look and feel. But, you have a couple different views, you have the cost visibility view, so your spend per day, per month, per year, and then you have an analyze view. So, there's a spend efficiency view, so you can actually get a quick visualization of "Am I getting the best value out of my cloud contract?", and this is, you know, really common in government. They'll cut some type of ELA or longer-term contract, but if you're not using all those credits, or taking the best benefit, you're not getting your RLI. So the spend efficiency will help in that aspect. You know, Beam goes beyond just visibility, so you have ability to do one-click cost controls. So maybe, you know, change things from spot to reserve instances. You can also drill down into the sub-services, so "Oh, that's costing more than I thought, you know, is it my NAT service or my load balancer service, like which exact spot is taking all that cost?" And then, the budget allows you to build cost centers within your org. So, build out and you know, charge back is hit or miss in government, sometimes it's way up at the top of the command, but you know, we are seeing more and more orgs, and especially on the service provider and fed integrator side, you know, common scenario is government contract awarded to a fed integrator, and they build out a private cloud and need to do charge back. So that's another big aspect. >> Yeah, it's so funny. Remember, you know, just a few years ago it's like "Oh, public cloud, it's super easy and super cheap, and like well, when you actually dig into it, well it's different.", is I guess what they would say. Simple isn't necessarily what I would say, and cost depends on what you're doing with it and how you do it, so we talked a little bit about federal. You were telling me off camera that you were seeing a lot of SLED customers here. Give a little insight as to what are some of the concerns, what are some of the real things that, you know, that segment of public sector are looking for at this show in the ecosystem. >> Yeah, it's one reason we love doing this show, and it's a great spot that brings together, cause state and local is so regionalized, you know, 50 states and then all the different counties, and cities, and a lot of them attend here. I, you know, kind of just gotten into public sector when this show happened last year, and I met a lot of our SLED customers here for the first time, so you know, bring them all to one spot, which is rare in state and local, it's a lot more regional conferences. So, the challenge of staying local is because it's so regionalized, and then you really have four verticals within state and local, you have the state business, which kind of mirrors federal in more large enterprise. Some states are adopting Cloud First strategies, some states are kind of still figuring it out. So, some states are mirroring fed government, and they have this kind of Cloud First, and trying to figure out how to make that work. And then, at the local level, you have the county and cities, and they're very scattered on their approach. We have some significant size counties that are using Nutanix with things like CloudConnect to backup into AWS, and then I would say higher ed is probably the most forward leaning in terms of their cloud usage. A lot of higher ed pushing aggressively in the cloud. Actually, where I used to work, Maryland, University of Maryland, aggressive push there. So, they still have a lot of fragmented IT on-prem though, they have different orgs, business school, engineering school with their own kind of little IT fiefdoms, and then you have central IT trying to standardize and make more public cloud usage. So, they have a lot of the same challenges of a big enterprise, where they need to kind of get that visibility and cost control across, not only, the on-prem, but also as they move into public cloud. >> Yeah Dan, one of the things I've loved when I dig into, you know, whether it's the federal government or even the local government, how technology and IT are helping drive innovation. You know, we often think of, you know, you think about government, you know, just mired in bureaucracy, wonder if you have any, you know, customer stories you can share about, you know, fun and interesting things people are doing, you know, on top of the infrastructure transformational type of activities? >> Yeah, I mean, I think you know kind of the buzzword maybe of this year seems to be a lot around the IOT and machine learning, so it's still a lot in the pilot phases, but Nutanix, we announced Project Sherlock at .NEXT, so kind of our approach to really a PAS IOT at the edge, so PAS machine learning at the edge, and we actually just deployed our first customer on the commercial side a week ago. So, still early days, but I would say the interest at the state and local level is huge, you know, Smart City initiatives, self-driving car initiatives, and just the data is overwhelming. So, they're planning ahead, some of them are pretty far along, but there's obviously starts and stops on where these initiatives are going, but the amount of data, and it's all dispersed, and just how to get their arms around that, how to control that, and then in federal there's a lot of requests for machine learning out at the tactical edge, so we have our, you know, soldiers forward deployed, how do they take their imagery and analyze that, and not have to wait 24 hours for someone to come back from the main data center, and that's real lifesaving, game changing. For them to be able to analyze it right then and there, and also big in disaster relief scenarios, so you know, being able to analyze. I was talking to one customer we had at a CXR round table last week at our local .NEXT event, and they were talking about after the hurricanes in Puerto Rico, just how to analyze like, where's there even power, where's the water good, and overlaying all that on imagery. But, right now, that's like 15 different sources that they were trying to pull together into one system, so a lot of challenges like that, that people are trying to address. >> And I love that, Dan. I think you hit right on it. It's data at the center of it. How can I leverage it? How can I get new value out of it. I've talked to some government agencies that are like, you know "How do I transform how we do parking in a city? I have the data, the have some sensors, oh wait, we can actually make an app." Sometimes it's partnering with the commercial side and business, but other times it's government just driving these. Dan, want to give you the final word, you know, we're just kicking off the event, but you know, give us a final takeaway for Nutanix AWS here at Public Sector Summit, what you want the takeaways to be. >> Yeah, well I mean, we're here both days, I encourage everyone to stop by and talk to Nutanix, and really, Beam was just launched, so the great thing is it's our first SAS offering, which is obviously a mind shift for us, but you can demo it just by signing up. But, it's kind of you know, traditional where we've been in the infrastructure market, where we get customers that are like "Oh, I want to try it out", and you have to ship them a system, or they have to download software. Now, it's just "Oh, go sign up on the SAS offering", so I think that'll be a great new delivery vehicle for Nutanix, and I think as we kind of shape our ecosystem of not only different ways to consume with Xi Cloud Services, Beam being SAS, but also different capital models in terms of way the customers purchase. I think that's another big driver around cloud is how the finance side consumes IT, so I think it's great to see, you know, we're kind of expanding, blending into the AWS ecosystem as well, but tying it all together, so people can manage everything from one spot. >> Alright, well Dan Fallon, pleasure chatting with you this morning helping me kick things up, and absolutely, the diversity of technologies, the how we are going to purchase things changing quite a lot, everything from, you know, modernizing our data center to SAS application. You know, I remember at .NEXT I said "Modernize the platform, then we can modernize the applications on top of it", so working through its customers through changes. Alright we have, just like Dan said, day-and-a-half work of coverage here on TheCube, of course, check TheCube dot net for all the recordings, as well as all the shows we'll be at. I'm Stu Miniman, and thanks so much for watching TheCube. (techno music)

>> Announcer: Live, from New Orleans, Louisiana, it's theCUBE, covering .NEXT Conference 2018, brought to you by Nutanix. >> Welcome back to theCUBE here in New Orleans, Louisiana. I'm Stu Miniman, with my cohost Keith Townsend, who is the CTO advisor, and this is the CTO segment. Happy to welcome back to the program, we have Binny Gill and Rajiv Mirani. Both of them are CTOs. Binny, you've got cloud services, and Rajiv, you have cloud platforms. Let's start there, when we talk about, you know, there was a survey when you registered for the event and said, what do you think of Nutanix as? Am I your server vendor, am I your HCI vendor, am I your cloud vendor, am I your mega, uber platform of everything? You've got platforms and services, help us understand a little bit how this fits and how you look at the portfolio, and we'll arm wrestle if you guys can't agree. >> Rajiv: That sounds good. >> Binny: Yeah, go ahead. >> You want to go ahead? So both of us obviously work very closely together, but broadly speaking, I look after the core stack, the storage, networking, hypervisor, including Prism, and then Binny looks more at the services we're building on top, Era, Calm, things like that, so Binny, can you explain that a bit? >> Given the breadth of the ambition that we have, right, I mean, it's good to focus on the two layers separately in some sense, build a platform that is capable of hosting a whole bunch of services. As you can see in what Amazon and others have evolved, they've spent a lot of time building platform, and if you think about it, even Nutanix, for the last seven, eight years, has done a really good job. And once you have a solid foundation, and building cloud requires some new capabilities as well, as Rajiv has said, networking and security on top, now you can start building services, and services themselves have a stack, right? Because there will be higher-level services that use some lower-level services and this. So that's, you know, that's a long journey ahead of us. >> Yeah, I mean, that's a great point, 'cause every time, it seems like we have, you know, oh, this next-generation thing, I'm not going to have to worry about the underlying thing. Virtualization's going to totally abstract it. We've spent a decade fixing the storage and networking challenges there. Containerization, once again, it's like the application done there. Serverless, of course, will take care of all this, but you know, everything underneath it, it still needs work. How do you balance and give us some of that, you know, what's the glue versus abstracting and going to developers? Maybe let's start with platform. >> Well, the platform's always going to be there, right, and as we look at things like containers, that's actually where things get messy. How do containers work with storage, is one of the bigger issues right now with Kubernetes and other frameworks. So we have to start with a platform, we build on top of that and hopefully abstract enough that, you know, the services themselves don't have to deal with the messiness of the platform. >> Yeah, if you look at how technology is evolving, the more things change, the more they remain the same. The platform used to be Linux, Windows, I mean, that's the operating system on which I build my applications, right? Now, the new platform is cloud. AWS is a platform, is an OS, and Azure is one OS, and how do you build applications that can run on these new, next-generation platforms? But the kind of problems to solve are still the same. I want to snapshot my application, back it up, I want to move my application one place to the other, I want to scale it out, scale it in. So the problems are identical to what we had, but it's just that solving it with the new tools that we have, Kubernetes, containers, and so on. >> Yeah, and sometimes birds just fly right through our studio. >> Yeah, I mean, we worry about bugs, and now we have birds flying in. >> So, Rajiv, talk to us about, you basically have two different types of cloud clusters. You have to serve Binny's organization, you also have to serve your external clients. Storage, network, compute, has to have APIs, has to have capabilities, basic capabilities that both your customers who want to build their own overlay, and then Nutanix services on top. Talk to me about, how do you make sure that you're building the best cloud platform to be consumed by cloud services, whether they're Nutanix cloud services or someone else's. >> I think, just comes out of the core principles that we have built the company around, right, that we will always build things around web-scale design, so it has to scale to very large deployments, it has to be completely distributed, it has to go through a certain amount of vetting, in terms of having APIs exposed. Nothing we do internally is through secret APIs, everything is public APIs, so you're pretty stringent on some of these things. And then of course, layering on the simplicity of Nutanix is another thing that we take very, very seriously, so when we do all that, nice patterns emerge. I think it lends itself to an elegance that the platform provides for the rest of the stack. >> So, then we get to a confusing abstraction, which is, you mentioned it earlier, containers. Who gets containers? Is that your organization, is that your organization? Is it a fundamental part of the foundation, or is it a cloud service? >> I think the trick is to not necessarily worry too much about the boundary here, because frankly, this is something that the industry is still figuring out, you know, what layer is this new Kubernetes thing at? And is it just at containers, but actually, now it's going into all the way, application provisioning, load balancing, distributed routing, all sorts of things, so that's, I mean, we work as a team essentially, and there's a whole bunch of engineers that are looking at the whole picture, it's always very important to look at the entire picture and then figure out what are the right layers to go solve the problem, and when you're looking at containers, the bigger problem that our customers are talking about is, how do you deal with the legacy plus the containers in one environment? Now, I have my application, it's a three-tier application. The database, I still want to run in a VM, right? But I want to start tasting this Kubernetes thing, so I want to go with my app, the web tier with containers, but it needs to be in one view, and that's what Calm demonstrated. Through Calm, you can orchestrate an application that's part VM, part containers with Kubernetes and help our customers transition. So which layer these things are, it's going to be an evolving answer. >> So Binny, I love that you started the conversation around Calm. Is Calm the first interaction that most customers will experience when it comes to Nutanix cloud services, or is there a different, one of the other services, the more likely first experience of cloud services versus the trivial compute, storage, network. >> Right, so the first cloud service that we have announced, that we'll deliver, is DR, right? I mean, that's the first one with Xi. Once DR is available, very quickly we'll add more services. Beam is another one that has to fold in to the Xi cloud services. When I say fold in, it essentially means you have the same identity, and you have the same billing mechanisms, and the same experience. You know, similar to when you go to a public cloud, you'll see, there's a host of services, and they're sort of equals, and you can pick whichever one you want to use. What we want to provide with Xi cloud services is that, the same experience, except that these services are now hybrid. You can have them on-prem, you can have it in the cloud. And our teams are building this hybrid view, some of which, the preview of it, what you already saw in the demo there, you saw availability zones on both sides, shown on one screen, now you'll see the service footprint on both sides, on one screen. >> Stu: Yeah, Rajiv-- >> From an experience point of view, I think, Calm will be how people who see this for the first time, that's going to be the center marketplace that we will have, that's where people will launch services from. >> Right, so when you, where's the portal for cloud services, and as I understand, Calm is that portal. >> Calm is a lot more than that, it'll have not just services but applications and workloads as well. But yes, the experience will start with Calm. >> When you talk about a hybrid cloud world in the platform, people are trying to understand what exactly lives where. When we hear kind of Xi, wonder if you might be able to give us kind of a compare-contrast of, say, that you look at VMware, and VMware and Amazon is kind of an easy one to understand, as it's relatively the same stack, just living in a different data center. >> So we're doing things a little bit differently. While we are building our own cloud data centers today, we're architecting it in a way that we're not tying it down to any single stack, that it has to be only a Nutanix-oriented stack. We absolutely intend to scale this out by partnering with service providers, with cloud vendors, and so on. You saw something in the keynote yesterday about running nested on GCP. You can imagine where that will go in the future, but the cloud's also on the radar. Much like we did with our HCI stack, we ship them Supermicro, but we're conscious of the fact that it's software that we can move anywhere. We are building Xi exactly the same. >> Yeah, and what I'd add is, while we are doing it in our own data centers right now, we are learning a lot, and as we are learning the things that are truly needed to make running a cloud easy, from an operational perspective, that allows us to build a product that is an honest product to give to our partners and service providers, say, now you go run it, and you won't be spending too much. For example, the experience that they've had with OpenStack, it cannot be repeated again, right? So that's what we want to do. >> So let's talk about the relationship with Google as a model going forward. Is that prototypical of what you're looking to do with other public cloud providers? And first, give us some color around that announcement, we have anyone on theCUBE talk about Xi and Google, and then kind of the strategy moving forward. >> A lot of the public cloud vendors are actually realizing that hybrid cloud is important, and as part of that, they're providing bare-metal services, and Google has its nested service, to enable others to bring their own stack, you know, virtualization stack, to run there. Amazon has done it VMware, Amazon has also announced their intention to gear bare-metal services. So we see a future where a lot of these public cloud vendors will offer bare metal, and that's where our Xi stack will run, and also giving customers choice to go from one cloud to the other seamlessly. Today, we know that Nutanix can move from public Xi cloud to on-prem and back, but once you have Xi cloud running on multiple cloud vendors and you can move between cloud vendors seamlessly as well. And that's a really compelling message for our customers. >> Great. One of the challenges for some of us watching is, you've got a pretty big portfolio now, and some of the things out in the future, it's like, okay, where does Nutanix fit, how do they have the right to participate in this? Wonder if you can talk a little bit about Era, and maybe Sherlock is a little bit further out. >> Era is about managing copies of your databases. Again, if you look at where a lot of cost is sunk in enterprises, running my database, a production database, for every single production database, there'll be maybe tens of test copies of it. What Era does is minimizes the cost of managing the copies, and also, it's thinly-provisioned copies. That's something that our customers have said that's a real pain point for them that nobody solves really well. So we decided to work on that, that's just a starting point of what we can do in this PaaS layer and also, helps us learn this space as well. We are reaching out to not the infrastructure admin, but actually to the database admin. It gives us a new audience to talk to as well. So from an audience perspective, we are broadening the scope, we are reaching closer to their lines of businesses and the decision-makers, which is good. Now, going to Sherlock-- >> Actually, if I could just, one quick followup on the database piece. Database migration's really hard. You know, talk to any customer and you say database migration, it's one of the things that strikes fear in them. Talk just for a second if you could about the expertise that your team has and why you believe you can really deliver that push-bus and simplicity that Nutanix is known for. >> Oh, so yeah, the team that's building Era are hardcore Oracle folks who have decades of experience doing those kind of hard problems, and they've come here with a mission, into Nutanix, that we are going to solve it. Using the Nutanix platform that we have built, there are so many things that can be done in a better way, and since we have a clean slate, we can start afresh and do it the right way. From our capability to do it in the right way, making it simple for our customers, we don't have a doubt. In fact, a lot of customers who have tested this in alpha, they have raving reviews on that, and they just want it as soon as possible. >> And on the database migration subject, we also have a group called SQL Xtract that we've been shipping for some time that helps you migrate your databases from existing three-tier or even hyperconverged stacks, onto Nutanix. So we have some expertise in the area already. >> So, a little bit on the, I heard the term copy data management. Is this mainly copy data management, or is this actually database migration to a new, to ability to move from one database to another one, or is it all of the above? >> So, it's doing management of copies, it's also allowing you to clone databases. So you can go to a snapshot and clone another one. Migration is not yet there, but it's a natural consequence of the capabilities that we have, because once you have snapshots, we have the capability of moving snapshots from one data center to the other using our DR capabilities. So that's on the roadmap. Further down the roadmap is database provisioning itself. If you want to provision a brand-new database, you can also do that, so these are the natural transitions of work, but what we wanted to do, just like what we did with Xi, start with the hardest, thorniest problem, and then work backwards into the simple things. >> Alright, so unfortunately, we're running short on time. Give us a closing word, I want, Rajiv and Binny, maybe you can talk a quick second about project Sherlock and give us some things that we should look for down the road from Nutanix. >> Yeah, so we believe that the world needs an enterprise cloud operating system. What that means is it can run on the private cloud, in the public cloud, and on the edge, and Sherlock comes there, I mean, it's taking our stack and creating a mini-PaaS version, as you saw in the demo, and running it at the edge in a way that all of your footprint appears like one dispersed cloud. And that's a pretty exciting space, and we think that is the key differentiator that we'll have going forward. >> Any final words, Rajiv? >> I think he covered quite a fair amount of ground, so yeah, thanks for having us on. >> Alright, well, it goes back to really that distributed architecture, the core. Appreciate having the conversation, the CTO roundtable, as it were. Binny, Rajiv, always a pleasure to catch up. For Keith Townsend, I'm Stu Miniman, back with more here. Thanks for watching theCUBE. (techno music)

Section 1 of 13 [00:00:00 - 00:10:04] (NOTE: speaker names may be different in each section) Speaker 1: Ladies and gentlemen our program will begin momentarily. Thank you. (singing) This presentation and the accompanying oral commentary may include forward looking statements that are subject to risks uncertainties and other factors beyond our control. Our actual results, performance or achievements may differ materially and adversely from those anticipated or implied by such statements because of various risk factors. Including those detailed in our annual report on form 10-K for the fiscal year ended July 31, 2017 filed with the SEC. Any future product or roadmap information presented is intended to outline general product direction and is not a commitment to deliver any functionality and should not be used when making any purchasing decision. (singing) Ladies and gentlemen please welcome Vice President Corporate Marketing Nutanix, Julie O'Brien. Julie O'Brien: All right. How about those Nutanix .NEXT dancers, were they amazing or what? Did you see how I blended right in, you didn't even notice I was there. [French 00:07:23] to .NEXT 2017 Europe. We're so glad that you could make it today. We have such a great agenda for you. First off do not miss tomorrow morning. We're going to share the outtakes video of the handclap video you just saw. Where are the customers, the partners, the Nutanix employee who starred in our handclap video? Please stand up take a bow. You are not going to want to miss tomorrow morning, let me tell you. That is going to be truly entertaining just like the next two days we have in store for you. A content rich highly interactive, number of sessions throughout our agenda. Wow! Look around, it is amazing to see how many cloud builders we have with us today. Side by side you're either more than 2,200 people who have traveled from all corners of the globe to be here. That's double the attendance from last year at our first .NEXT Conference in Europe. Now perhaps some of you are here to learn the basics of hyperconverged infrastructure. Others of you might be here to build your enterprise cloud strategy. And maybe some of you are here to just network with the best and brightest in the industry, in this beautiful French Riviera setting. Well wherever you are in your journey, you'll find customers just like you throughout all our sessions here with the next two days. From Sligro to Schroders to Societe Generale. You'll hear from cloud builders sharing their best practices and their lessons learned and how they're going all in with Nutanix, for all of their workloads and applications. Whether it's SAP or Splunk, Microsoft Exchange, unified communications, Cloud Foundry or Oracle. You'll also hear how customers just like you are saving millions of Euros by moving from legacy hypervisors to Nutanix AHV. And you'll have a chance to post some of your most challenging technical questions to the Nutanix experts that we have on hand. Our Nutanix technology champions, our MPXs, our MPSs. Where are all the people out there with an N in front of their certification and an X an R an S an E or a C at the end. Can you wave hello? You might be surprised to know that in Europe and the Middle East alone, we have more than 2,600 >> Julie: In Europe and the Middle East alone, we have more than 2,600 certified Nutanix experts. Those are customers, partners, and also employees. I'd also like to say thank you to our growing ecosystem of partners and sponsors who are here with us over the next two days. The companies that you meet here are the ones who are committed to driving innovation in the enterprise cloud. Over the next few days you can look forward to hearing from them and seeing some fantastic technology integration that you can take home to your data center come Monday morning. Together, with our partners, and you our customers, Nutanix has had such an exciting year since we were gathered this time last year. We were named a leader in the Gartner Magic Quadrant for integrated systems two years in a row. Just recently Gartner named us the revenue market share leader in their recent market analysis report on hyper-converged systems. We know enjoy more than 35% revenue share. Thanks to you, our customers, we received a net promoter score of more than 90 points. Not one, not two, not three, but four years in a row. A feat, I'm sure you'll agree, is not so easy to accomplish, so thank you for your trust and your partnership in us. We went public on NASDAQ last September. We've grown to more than 2,800 employees, more than 7,000 customers and 125 countries and in Europe and the Middle East alone, in our Q4 results, we added more than 250 customers just in [Amea 00:11:38] alone. That's about a third of all of our new customer additions. Today, we're at a pivotal point in our journey. We're just barely scratching the surface of something big and Goldman Sachs thinks so too. What you'll hear from us over the next two days is this: Nutanix is on it's way to building and becoming an iconic enterprise software company. By helping you transform your data center and your business with Enterprise Cloud Software that gives you the power of freedom of choice and flexibility in the hardware, the hypervisor and the cloud. The power of one click, one OS, any cloud. And now, to tell you more about the digital transformation that's possible in your business and your industry and share a little bit around the disruption that Nutanix has undergone and how we've continued to reinvent ourselves and maybe, if we're lucky, share a few hand clap dance moves, please welcome to stage Nutanix Founder, CEO and Chairman, Dheeraj Pandey. Ready? Alright, take it away [inaudible 00:13:06]. >> Dheeraj P: Thank you. Thank you, Julie and thank you every one. It looks like people are still trickling. Welcome to Acropolis. I just hope that we can move your applications to Acropolis faster than we've been able to move people into this room, actually. (laughs) But thank you, ladies and gentlemen. Thank you to our customers, to our partners, to our employees, to our sponsors, to our board members, to our performers, to everybody for their precious time. 'Cause that's the most precious thing you actually have, is time. I want to spend a little bit of time today, not a whole lot of time, but a little bit of time talking about the why of Nutanix. Like why do we exist? Why have we survived? Why will we continue to survive and thrive? And it's simpler than an NQ or category name, the word hyper-convergence, I think we are all complicated. Just thinking about what is it that we need to talk about today that really makes it relevant, that makes you take back something from this conference. That Nutanix is an obvious innovation, it's very obvious what we do is not very complicated. Because the more things change, the more they remain the same, so can we draw some parallels from life, from what's going on around us in our own personal lives that makes this whole thing very natural as opposed to "Oh, it's hyper-converged, it's a category, it's analysts and pundits and media." I actually think it's something new. It's not that different, so I want to start with some of that today. And if you look at our personal lives, everything that we had, has been digitized. If anything, a lot of these gadgets became apps, they got digitized into a phone itself, you know. What's Nutanix? What have we done in the last seven, eight years, is we digitized a lot of hardware. We made everything that used to be single purpose hardware look like pure software. We digitized storage, we digitized the systems manager role, an operations manager role. We are digitizing scriptures, people don't need to write scripts anymore when they automate because we can visually design automation with [com 00:15:36]. And we're also trying to make a case that the cloud itself is not just a physical destination. That it can be digitized and must be digitized as well. So we learn that from our personal lives too, but it goes on. Look at music. Used to be tons of things, if you used to go to [inaudible 00:15:55] Records, I'm sure there were European versions of [inaudible 00:15:57] Records as well, the physical things around us that then got digitized as well. And it goes on and on. We look at entertainment, it's very similar. The idea that if you go to a movie hall, the idea that you buy these tickets, the idea that we'd have these DVD players and DVDs, they all got digitized. Or as [inaudible 00:16:20] want to call it, virtualized, actually. That is basically happening in pretty much new things that we never thought would look this different. One of the most exciting things happening around us is the car industry. It's getting digitized faster than we know. And in many ways that we'd not even imagined 10 years ago. The driver will get digitized. Autonomous cars. The engine is definitely gone, it's a different kind of an engine. In fact, we'll re-skill a lot of automotive engineers who actually used to work in mechanical things to look at real chemical things like battery technologies and so on. A lot of those things that used to be physical are now in software in the car itself. Media itself got digitized. Think about a physical newspaper, or physical ads in newspapers. Now we talk about virtual ads, the digital ads, they're all over on websites and so on is our digital experience now. Education is no different, you know, we look back at the kind of things we used to do physically with physical things. Their now all digital. The experience has become that digital. And I can go on and on. You look at retail, you look at healthcare, look at a lot of these industries, they all are at the cusp of a digital disruption. And in fact, if you look at the data, everybody wants it. We all want a digital transformation for industries, for companies around us. In fact, the whole idea of a cloud is a highly digitized data center, basically. It's not just about digitizing servers and storage and networks and security, it's about virtualizing, digitizing the entire data center itself. That's what cloud is all about. So we all know that it's a very natural phenomenon, because it's happening around us and that's the obviousness of Nutanix, actually. Why is it actually a good thing? Because obviously it makes anything that we digitize and we work in the digital world, bring 10X more productivity and decision making efficiencies as well. And there are challenges, obviously there are challenges, but before I talk about the challenges of digitization, think about why are things moving this fast? Why are things becoming digitally disrupted quicker than we ever imagined? There are some reasons for it. One of the big reasons is obviously we all know about Moore's Law. The fact that a lot of hardware's been commoditized, and we have really miniaturized hardware. Nutanix today runs on a palm-sized server. Obviously it runs on the other end of the spectrum with high-end IBM power systems, but it also runs on palm-sized servers. Moore's Law has made a tremendous difference in the way we actually think about consuming software itself. Of course, the internet is also a big part of this. The fact that there's a bandwidth glut, there's Trans-Pacific cables and Trans-Atlantic cables and so on, has really connected us a lot faster than we ever imagined, actually, and a lot of this was also the telecom revolution of the '90s where we really produced a ton of glut for the internet itself. There's obviously a more subtle reason as well, because software development is democratizing. There's consumer-grade programming languages that we never imagined 10, 15, 20 years ago, that's making it so much faster to write- >> Speaker 1: 15-20 years ago that's making it so much faster to write code, with this crowdsourcing that never existed before with Githubs and things like that, open source. There's a lot more stuff that's happening that's outside the boundary of a corporation itself, which is making things so much faster in terms of going getting disrupted and writing things at 10x the speed it used to be 20 years ago. There is obviously this technology at the tip of our fingers, and we all want it in our mobile experience while we're driving, while we're in a coffee shop, and so on; and there's a tremendous focus on design on consumer-grade simplicity, that's making digital disruption that much more compressed in some of sense of this whole cycle of creative disruption that we talk about, is compressed because of mobility, because of design, because of API, the fact that machines are talking to machines, developers are talking to developers. We are going and miniaturizing the experience of organizations because we talk about micro-services and small two-pizza teams, and they all want to talk about each other using APIs and so on. Massive influence on this digital disruption itself. Of course, one of the reasons why this is also happening is because we want it faster, we want to consume it faster than ever before. And our attention spans are reducing. I like the fact that not many people are watching their cell phones right now, but you can imagine the multi-tasking mode that we are all in today in our lives, makes us want to consume things at a faster pace, which is one of the big drivers of digital disruption. But most importantly, and this is a very dear slide to me, a lot of this is happening because of infrastructure. And I can't overemphasize the importance of infrastructure. If you look at why did Google succeed, it was the ninth search engine, after eight of them before, and if you take a step back at why Facebook succeeded over MySpace and so on, a big reason was infrastructure. They believed in scale, they believed in low latency, they believed in being able to crunch information, at 10x, 100x, bigger scale than anyone else before. Even in our geopolitical lives, look at why is China succeeding? Because they've made infrastructure seamless. They've basically said look, governance is about making infrastructure seamless and invisible, and then let the businesses flourish. So for all you CIOs out there who actually believe in governance, you have to think about what's my first role? What's my primary responsibility? It's to provide such a seamless infrastructure, that lines of business can flourish with their applications, with their developers that can write code 10x faster than ever before. And a lot of these tenets of infrastructure, the fact of the matter is you need to have this always-on philosophy. The fact that it's breach-safe culture. Or the fact that operating systems are hardware agnostic. A lot of these tenets basically embody what Nutanix really stands for. And that's the core of what we really have achieved in the last eight years and want to achieve in the coming five to ten years as well. There's a nuance, and obviously we talk about digital, we talk about cloud, we talk about everything actually going to the cloud and so on. What are the things that could slow us down? What are the things that challenge us today? Which is the reason for Nutanix? Again, I go back to this very important point that the reason why we think enterprise cloud is a nuanced term, because the word "cloud" itself doesn't solve for a lot of the problems. The public cloud itself doesn't solve for a lot of the problems. One of the big ones, and obviously we face it here in Europe as well, is laws of the land. We have bureaucracy, which we need to deal with and respect; we have data sovereignty and computing sovereignty needs that we need to actually fulfill as well, while we think about going at breakneck speed in terms of disrupting our competitors and so on. So there's laws of the land, there's laws of physics. This is probably one of the big ones for what the architecture of cloud will look like itself, over the coming five to ten years. Our take is that cloud will need to be more dispersed than they have ever imagined, because computing has to be local to business operations. Computing has to be in hospitals and factories and shop floors and power plants and on and on and on... That's where you really can have operations and computing really co-exist together, cause speed is important there as well. Data locality is one of our favorite things; the fact that computing and data have to be local, at least the most relevant data has to be local as well. And the fact that electrons travel way faster when it's actually local, versus when you have to have them go over a Wide Area Network itself; it's one of the big reasons why we think that the cloud will actually be more nuanced than just some large data centers. You need to disperse them, you need to actually think about software (cloud is about software). Whether data plane itself could be dispersed and even miniaturized in small factories and shop floors and hospitals. But the control plane of the cloud is centralized. And that's the way you can have the best of both worlds; the control plane is centralized. You think as if you're managing one massive data center, but it's not because you're really managing hundreds or thousands of these sites. Especially if you think about edge-based computing and IoT where you really have your tentacles in tens of thousands of smaller devices and so on. We've talked about laws of the land, which is going to really make this digital transformation nuanced; laws of physics; and the third one, which is really laws of entropy. These are hackers that do this for adrenaline. These are parochial rogue states. These are parochial geo-politicians, you know, good thing I actually left the torture sign there, because apparently for our creative designer, geo-politics is equal to torture as well. So imagine one bad tweet can actually result in big changes to the way we actually live in this world today. And it's important. Geo-politics itself is digitized to a point where you don't need a ton of media people to go and talk about your principles and what you stand for and what you strategy for, for running a country itself is, and so on. And these are all human reasons, political reasons, bureaucratic reasons, compliance and regulations reasons, that, and of course, laws of physics is yet another one. So laws of physics, laws of the land, and laws of entropy really make us take a step back and say, "What does cloud really mean, then?" Cause obviously we want to digitize everything, and it all should appear like it's invisible, but then you have to nuance it for the Global 5000, the Global 10000. There's lots of companies out there that need to really think about GDPR and Brexit and a lot of the things that you all deal with on an everyday basis, actually. And that's what Nutanix is all about. Balancing what we think is all about technology and balancing that with things that are more real and practical. To deal with, grapple with these laws of the land and laws of physics and laws of entropy. And that's where we believe we need to go and balance the private and the public. That's the architecture, that's the why of Nutanix. To be able to really think about frictionless control. You want things to be frictionless, but you also realize that you are a responsible citizen of this continent, of your countries, and you need to actually do governance of things around you, which is computing governance, and data governance, and so on. So this idea of melding the public and the private is really about melding control and frictionless together. I know these are paradoxical things to talk about like how do you really have frictionless control, but that's the life you all lead, and as leaders we have to think about this series of paradoxes itself. And that's what Nutanix strategy, the roadmap, the definition of enterprise cloud is really thinking about frictionless control. And in fact, if anything, it's one of the things is also very interesting; think about what's disrupting Nutanix as a company? We will be getting disrupted along the way as well. It's this idea of true invisibility, the public cloud itself. I'd like to actually bring on board somebody who I have a ton of respect for, this leader of a massive company; which itself is undergoing disruption. Which is helping a lot of its customers undergo disruption as well, and which is thinking about how the life of a business analyst is getting digitized. And what about the laws of the land, the laws of physics, and laws of entropy, and so on. And we're learning a lot from this partner, massively giant company, called IBM. So without further ado, Bob Picciano. >> Bob Picciano: Thanks, >> Speaker 1: Thank you so much, Bob, for being here. I really appreciate your presence here- >> Bob Picciano: My pleasure! >> Speaker 1: And for those of you who actually don't know Bob, Bob is a Senior VP and General Manager at IBM, and is all things cognitive and obviously- >> Speaker 1: IBM is all things cognitive. Obviously, I learn a lot from a lot of leaders that have spent decades really looking at digital disruption. >> Bob: Did you just call me old? >> Speaker 1: No. (laughing) I want to talk about experience and talking about the meaning of history, because I love history, actually, you know, and I don't want to make you look old actually, you're too young right now. When you talk about digital disruption, we look at ourselves and say, "Look we are not extremely invisible, we are invisible, but we have not made something as invisible as the public clouds itself." And hence as I. But what's digital disruption mean for IBM itself? Now, obviously a lot of hardware is being digitized into software and cloud services. >> Bob: Yep. >> Speaker 1: What does it mean for IBM itself? >> Bob: Yeah, if you allow me to take a step back for a moment, I think there is some good foundational understanding that'll come from a particular point of view. And, you talked about it with the number of these dimensions that are affecting the way businesses need to consider their competitiveness. How they offer their capabilities into the market place. And as you reflected upon IBM, you know, we've had decades of involvement in information technology. And there's a big disruption going on in the information technology space. But it's what I call an accretive disruption. It's a disruption that can add value. If you were to take a step back and look at that digital trajectory at IBM you'd see our involvement with information technology in a space where it was all oriented around adding value and capability to how organizations managed inscale processes. Thinking about the way they were going to represent their businesses in a digital form. We came to call them applications. But it was how do you open an account, how do you process a claim, how do you transfer money, how do you hire an employee? All the policies of a company, the way the people used to do it mechanically, became digital representations. And that foundation of the digital business process is something that IBM helped define. We invented the role of the CIO to help really sponsor and enter in this notion that businesses could re represent themselves in a digital way and that allowed them to scale predictably with the qualities of their brand, from local operations, to regional operations, to international operations, and show up the same way. And, that added a lot of value to business for many decades. And we thrived. Many companies, SAP all thrived during that span. But now we're in a new space where the value of information technology is hitting a new inflection point. Which is not about how you scale process, but how you scale insight, and how you scale wisdom, and how you scale knowledge and learning from those operational systems and the data that's in those operational systems. >> Speaker 1: How's it different from 1993? We're talking about disruption. There was a time when IBM reinvented itself, 20-25 years ago. >> Bob: Right. >> Speaker 1: And you said it's bigger than 25 years ago. Tell us more. >> Bob: You know, it gets down. Everything we know about that process space right down to the very foundation, the very architecture of the CPU itself and the computer architecture, the von Neumann architecture, was all optimized on those relatively static scaled business processes. When you move into the notion where you're going to scale insight, scale knowledge, you enter the era that we call the cognitive era, or the era of intelligence. The algorithms are very different. You know the data semantically doesn't integrate well across those traditional process based pools and reformation. So, new capabilities like deep learning, machine learning, the whole field of artificial intelligence, allows us to reach into that data. Much of it unstructured, much of it dark, because it hasn't been indexed and brought into the space where it is directly affecting decision making processes in a business. And you have to be able to apply that capability to those business processes. You have to rethink the computer, the circuitry itself. You have to think about how the infrastructure is designed and organized, the network that is required to do that, the experience of the applications as you talked about have to be very natural, very engaging. So IBM does all of those things. So as a function of our transformation that we're on now, is that we've had to reach back, all the way back from rethinking the CPU, and what we dedicate our time and attention to. To our services organization, which is over 130,000 people on the consulting side helping organizations add digital intelligence to this notion of a digital business. Because, the two things are really a confluence of what will make this vision successful. >> Speaker 1: It looks like massive amounts of change for half a million people who work with the company. >> Bob: That's right. >> Speaker 1: I'm sure there are a lot of large customers out here, who will also read into this and say, "If IBM feels disrupted ... >> Bob: Uh hm >> Speaker 1: How can we actually stay not vulnerable? Actually there is massive amounts of change around their own competitive landscape as well. >> Bob: Look, I think every company should feel vulnerable right. If you're at this age, this cognitive era, the age of digital intelligence, and you're not making a move into being able to exploit the capabilities of cognition into the business process. You are vulnerable. If you're at that intersection, and your competitor is passing through it, and you're not taking action to be able to deploy cognitive infrastructure in conjunction with the business processes. You're going to have a hard time keeping up, because it's about using the machines to do the training to augment the intelligence of our employees of our professionals. Whether that's a lawyer, or a doctor, an educator or whether that's somebody in a business function, who's trying to make a critical business decision about risk or about opportunity. >> Speaker 1: Interesting, very interesting. You used the word cognitive infrastructure. >> Bob: Uh hm >> Speaker 1: There's obviously computer infrastructure, data infrastructure, storage infrastructure, network infrastructure, security infrastructure, and the core of cognition has to be infrastructure as well. >> Bob: Right >> Speaker 1: Which is one of the two things that the two companies are working together on. Tell us more about the collaboration that we are actually doing. >> Bob: We are so excited about our opportunity to add value in this space, so we do think very differently about the cognitive infrastructure that's required for this next generation of computing. You know I mentioned the original CPU was built for very deterministic, very finite operations; large precision floating point capabilities to be able to accurately calculate the exact balance, the exact amount of transfer. When you're working in the field of AI in cognition. You actually want variable precision. Right. The data is very sparse, as opposed to the way that deterministic or scorecastic operations work, which is very dense or very structured. So the algorithms are redefining the processes that the circuitry actually has to run. About five years ago, we dedicated a huge effort to rethink everything about the chip and what we made to facilitate an orchestra of participation to solve that problem. We all know the GPU has a great benefit for deep learning. But the GPU in many cases, in many architectures, specifically intel architectures, it's dramatically confined by a very small amount of IO bandwidth that intel allows to go on and off the chip. At IBM, we looked at all 686 roughly square millimeters of our chip and said how do we reuse that square area to open up that IO bandwidth? So the innovation of a GPU or a FPGA could really be utilized to it's maximum extent. And we could be an orchestrator of all of the diverse compute that's going to be necessary for AI to really compel these new capabilities. >> Speaker 1: It's interesting that you mentioned the fact that you know power chips have been redefined for the cognitive era. >> Bob: Right, for Lennox for the cognitive era. >> Speaker 1: Exactly, and now the question is how do you make it simple to use as well? How do you bring simplicity which is where ... >> Bob: That's why we're so thrilled with our partnership. Because you talked about the why of Nutanix. And it really is about that empowerment. Doing what's natural. You talked about the benefits of calm and being able to really create that liberation of an information technology professional, whether it's in operations or in development. Having the freedom of action to make good decisions about defining the infrastructure and deploying that infrastructure and not having to second guess the physical limitations of what they're going to have to be dealing with. >> Speaker 1: That's why I feel really excited about the fact that you have the power of software, to really meld the two forms together. The intel form and the power form comes together. And we have some interesting use cases that our CIO Randy Phiffer is also really exploring, is how can a power form serve as a storage form for our intel form. >> Bob: Sure. >> Speaker 1: It can serve files and mocks and things like that. >> Bob: Any data intensive application where we have seen massive growth in our Lennox business, now for our business, Lennox is 20% of the revenue of our power systems. You know, we started enabling native Lennox distributions on top of little Indian ones, on top of the power capabilities just a few years ago, and it's rocketed. And the reason for that if for any data intensive application like a data base, a no sequel database or a structured data base, a dupe in the unstructured space, they typically run about three to four times better price performance on top of Lennox on power, than they will on top of an intel alternative. >> Speaker 1: Fascinating. >> Bob: So all of these applications that we're talking about either create or consume a lot of data, have to manage a lot of flexibility in that space, and power is a tremendous architecture for that. And you mentioned also the cohabitation, if you will, between intel and power. What we want is that optionality, for you to utilize those benefits of the 3X better price performance where they apply and utilize the commodity base where it applies. So you get the cost benefits in that space and the depth and capability in the space for power. >> Speaker 1: Your tongue in cheek remark about commodity intel is not lost on people actually. But tell us about... >> Speaker 1: Intel is not lost on people actually. Tell us about ... Obviously we digitized Linux 10, 15 years ago with [inaudible 00:40:07]. Have you tried to talk about digitizing AIX? That is the core of IBM's business for the last 20, 25, 30 years. >> Bob: Again, it's about this ability to compliment and extend the investments that businesses have made during their previous generations of decision making. This industry loves to talk about shifts. We talked about this earlier. That was old, this is new. That was hard, this is easy. It's not about shift, it's about using the inflection point, the new capability to extend what you already have to make it better. And that's one thing that I must compliment you, and the entire Nutanix organization. It's really empowering those applications as a catalog to be deployed, managed, and integrated in a new way, and to have seamless interoperability into the cloud. We see the AIX workload just having that same benefit for those businesses. And there are many, many 10's of thousands around the world that are critically dependent on every element of their daily operations and productivity of that operating platform. But to introduce that into that network effect as well. >> Speaker 1: Yeah. I think we're looking forward to how we bring the same cloud experience on AIX as well because as a company it keeps us honest when we don't scoff at legacy. We look at these applications the last 10, 15, 20 years and say, "Can we bring them into the new world as well?" >> Bob: Right. >> Speaker 1: That's what design is all about. >> Bob: Right. >> Speaker 1: That's what Apple did with musics. We'll take an old world thing and make it really new world. >> Bob: Right. >> Speaker 1: The way we consume things. >> Bob: That governance. The capability to help protect against the bad actors, the nefarious entropy players, as you will. That's what it's all about. That's really what it takes to do this for the enterprise. It's okay, and possibly easier to do it in smaller islands of containment, but when you think about bringing these class of capabilities into an enterprise, and really helping an organization drive both the flexibility and empowerment benefits of that, but really be able to depend upon it for international operations. You need that level of support. You need that level of capability. >> Speaker 1: Awesome. Thank you so much Bob. Really appreciate you coming. [crosstalk 00:42:14] Look forward to your [crosstalk 00:42:14]. >> Bob: Cheers. Thank you. >> Speaker 1: Thanks again for all of you. I know that people are sitting all the way up there as well, which is remarkable. I hope you can actually see some of the things that Sunil and the team will actually bring about, talk about live demos. We do real stuff here, which is truly live. I think one of the requests that I have is help us help you navigate the digital disruption that's upon you and your competitive landscape that's around you that's really creating that disruption. Thank you again for being here, and welcome again to Acropolis. >> Speaker 3: Ladies and gentlemen, please welcome Chief Product and Development Officer, Nutanix Sunil Potti. >> Sunil Potti: Okay, so I'm going to just jump right in because I know a bunch of you guys are here to see the product as well. We are a lot of demos lined up for you guys, and we'll try to mix in the slides, and the demos as well. Here's just an example of the things I always bring up in these conferences to look around, and say in the last few months, are we making progress in simplifying infrastructure? You guys have heard this again and again, this has been our mantra from the beginning, that the hotter things get, the more differentiated a company like Nutanix can be if we can make things simple, or keep things simple. Even though I like this a lot, we found something a little bit more interesting, I thought, by our European marketing team. If you guys need these tea bags, which you will need pretty soon. It's a new tagline for the company, not really. I thought it was apropos. But before I get into the product and the demos, to give you an idea. Every time I go to an event you find ways to memorialize the event. You meet people, you build relationships, you see something new. Last night, nothing to do with the product, I sat beside someone. It was a customer event. I had no idea who I was sitting beside. He was a speaker. How many of you guys know him, by the way? Sir Ranulph Fiennes. Few hands. Good for you. I had no idea who I was sitting beside. I said, "Oh, somebody called Sir. I should be respectful." It's kind of hard for me to be respectful, but I tried. He says, "No, I didn't do anything in the sense. My grandfather was knighted about 100 years ago because he was the governor of Antigua. And when he dies, his son becomes." And apparently Sir Ranulph's dad also died in the war, and so that's how he is a sir. But then I started looking it up because he's obviously getting ready to present. And the background for him is, in my opinion, even though the term goes he's the World's Greatest Living Explorer. I would have actually called it the World's Number One Stag, and I'll tell you why. Really, you should go look it up. So this guy, at the age of 21, gets admitted to Special Forces. If you're from the UK, this is as good as it gets, SAS. Six, seven years into it, he rebels, helps out his local partner because he doesn't like a movie who's building a dam inside this pretty village. And he goes and blows up a dam, and he's thrown out of that Special Forces. Obviously he's in demolitions. Goes all the way. This is the '60's, by the way. Remember he's 74 right now. The '60's he goes to Oman, all by himself, as the only guy, only white guy there. And then around the '70's, he starts truly exploring, truly exploring. And this is where he becomes really, really famous. You have to go see this in real life, when he sees these videos to really appreciate the impact of this guy. All by himself, he's gone across the world. He's actually gone across Antarctica. Now he tells me that Antarctica is the size of China and India put together, and he was prepared for -50 to 60 degrees, and obviously he got -130 degrees. Again, you have to see the videos, see his frostbite. Two of his fingers are cut off, by the way. He hacksawed them himself. True story. And then as he, obviously, aged, his body couldn't keep up with him, but his will kept up with him. So after a recent heart attack, he actually ran seven marathons. But most importantly, he was telling me this story, at 65 he wanted to do something different because his body was letting him down. He said, "Let me do something easy." So he climbed Mount Everest. My point being, what is this related to Nutanix? Is that if Nutanix is a company, without technology, allows to spend more time on life, then we've accomplished a piece of our vision. So keep that in mind. Keep that in mind. Now comes the boring part, which is the product. The why, what, how of Nutanix. Neeris talked about this. We have two acts in this company. Invisible Infrastructure was what we started off. You heard us talk about it. How did we do it? Using one-click technologies by converging infrastructure, computer storage, virtualization, et cetera, et cetera. What we are now about is about changing the game. Saying that just like we'd applicated what powers Google and Amazon inside the data center, could we now make them all invisible? Whether it be inside or outside, could we now make clouds invisible? Clouds could be made invisible by a new level of convergence, not about computer storage, but converging public and private, converging CAPEX and OPEX, converging consumption models. And there, beyond our core products, Acropolis and Prism, are these new products. As you know, we have this core thesis, right? The core thesis says what? Predictable workloads will stay inside the data center, elastic workloads will go outside, as long as the experience on both sides is the same. So if you can genuinely have a cloud-like experience delivered inside a data center, then that's the right a- >> Speaker 1: Genuinely have a cloud like experience developed inside the data center. And that's the right answer of predictable workloads. Absolutely the answer of elastic workloads, doesn't matter whether security or compliance. Eventually a public cloud will have a data center right beside your region, whether through local partner or a top three cloud partner. And you should use it as your public cloud of choice. And so, our goal is to ensure that those two worlds are converged. And that's what Calm does, and we'll talk about that. But at the same time, what we found in late 2015, we had a bunch of customers come to us and said "Look, I love this, I love the fact that you're going to converge public and private and all that good stuff. But I have these environments and these apps that I want to be delivered as a service but I want the same operational tooling. I don't want to have two different environments but I don't want to manage my data centers. Especially my secondary data centers, DR data centers." And that's why we created Xi, right? And you'll hear a lot more about this, obviously it's going to start off in the U.S but very rapidly launch in Europe, APJ globally in the next 9-12 months. And so we'll spend some quality time on those products as well today. So, from the journey that we're at, we're starting with the score cloud that essentially says "Look, your public and private needs to be the same" We call that the first instantiation of your cloud architectures and we're essentially as a company, want to build this enterprise cloud operating system as a fabric across public and private. But that's just the starting point. The starting point evolves to the score architecture that we believe that the cloud is being dispersed. Just like you have a public and a private cloud in the core data centers and so forth, you'll need a similar experience inside your remote office branch office, inside your DR data centers, inside your branches, and it won't stop there. It'll go all the way to the edge. All we're already seeing this right? Not just in the army where your forward operating bases in Afghanistan having a three note cluster sitting inside a tent. But we're seeing this in a variety of enterprise scenarios. And here's an example. So, here's a customer, global oil and gas company, has couple of primary data centers running Nutanix, uses GCP as a core public cloud platform, has a whole bunch of remote offices, but it also has this interesting new edge locations in the form of these small, medium, large size rigs. And today, they're in the process of building a next generation cloud architecture that's completely dispersed. They're using one node, coming out on version 5.5 with Nutanix. They're going to use two nodes, they're going to throw us three nods, multicultural architectures. Day one, they're going to centrally manage it using Prism, with one click upgrades, right? And then on top of that, they're also now provisioning using Calm, purpose built apps for the various locations. So, for example, there will be a re control app at the edge, there's an exploration data lag in Google and so forth. My point being that increasingly this architecture that we're talking about is happening in real time. It's no longer just an existing cellular civilization data center that's being replatformed to look like a private cloud and so forth, or a hybrid cloud. But the fact that you're going into this multi cloud era is getting excel bated, the more someone consumes AWL's GCP or any public cloud, the more they're excel bating their internal transformation to this multi cloud architecture. And so that's what we're going to talk about today, is this construct of ONE OS and ONE Click, and when you think about it, every company has a standard stack. So, this is the only slide you're going to see from me today that's a stack, okay? And if you look at the new release coming out, version 5.5, it's coming out imminently, easiest way to say it is that it's got a ton of functionality. We've jammed as much as we can onto one slide and then build a product basically, okay? But I would encourage you guys to check out the release, it's coming out shortly. And we can go into each and every feature here, we'd be spending a lot of time but the way that we look at building Nutanix products as many of you know, it is not feature at a time. It's experience at a time. And so, when you really look at Nutanix using a lateral view, and that's how we approach problems with our customers and partners. We think about it as a life cycle, all the way from learning to using, operating, and then getting support and experiences. And today, we're going to go through each of these stages with you. And who better to talk about it than our local version of an architect, Steven Poitras please come up on stage. I don't know where you are, Steven come on up. You tucked your shirt in? >> Speaker 2: Just for you guys today. >> Speaker 1: Okay. Alright. He's sort of putting on his weight. I know you used a couple of tight buckles there. But, okay so Steven so I know we're looking for the demo here. So, what we're going to do is, the first step most of you guys know this, is we've been quite successful with CE, it's been a great product. How many of you guys like CE? Come on. Alright. I know you had a hard time downloading it yesterday apparently, there's a bunch of guys had a hard time downloading it. But it's been a great way for us not just to get you guys to experience it, there's more than 25,000 downloads and so forth. But it's also a great way for us to see new features like IEME and so forth. So, keep an eye on CE because we're going to if anything, explode the way that we actually use as a way to get new features out in the next 12 months. Now, one thing beyond CE that we did, and this was something that we did about ... It took us about 12 months to get it out. While people were using CE to learn a lot, a lot of customers were actually getting into full blown competitive evals, right? Especially with hit CI being so popular and so forth. So, we came up with our own version called X-Ray. >> Speaker 2: Yup. >> Speaker 1: What does X-Ray do before we show it? >> Speaker 2: Yeah. Absolutely. So, if we think about back in the day we were really the only ACI platform out there on the market. Now there are a few others. So, to basically enable the customer to objectively test these, we came out with X-Ray. And rather than talking about the slide let's go ahead and take a look. Okay, I think it's ready. Perfect. So, here's our X-Ray user interface. And essentially what you do is you specify your targets. So, in this case we have a Nutanix 80150 as well as some of our competitors products which we've actually tested. Now we can see on the left hand side here we see a series of tests. So, what we do is we go through and specify certain workloads like OLTP workloads, database colocation, and while we do that we actually inject certain test cases or scenarios. So, this can be snapshot or component failures. Now one of the key things is having the ability to test these against each other. So, what we see here is we're actually taking a OLTP workload where we're running two virtual machines, and then we can see the IOPS OLTP VM's are actually performing here on the left hand side. Now as we're actually go through this test we perform a series of snapshots, which are identified by these red lines here. Now as you can see, the Nutanix platform, which is shown by this blue line, is purely consistent as we go through this test. However, our competitor's product actually degrades performance overtime as these snapshots are taken. >> Speaker 1: Gotcha. And some of these tests by the way are just not about failure or benchmarking, right? It's a variety of tests that we have that makes real life production workloads. So, every couple of months we actually look at our production workloads out there, subset those two cases and put it into X-Ray. So, X-Ray's one of those that has been more recently announced into the public. But it's already gotten a lot of update. I would strongly encourage you, even if you an existing Nutanix customer. It's a great way to keep us honest, it's a great way for you to actually expand your usage of Nutanix by putting a lot of these real life tests into production, and as and when you look at new alternatives as well, there'll be certain situations that we don't do as well and that's a great way to give us feedback on it. And so, X-Ray is there, the other one, which is more recent by the way is a fact that most of you has spent many days if not weeks, after you've chosen Nutanix, moving non-Nutanix workloads. I.e. VMware, on three tier architectures to Atrio Nutanix. And to do that, we took a hard look and came out with a new product called Xtract. >> Speaker 2: Yeah. So essentially if we think about what Nutanix has done for the data center really enables that iPhone like experience, really bringing it simplicity and intuitiveness to the data center. Now what we wanted to do is to provide that same experience for migrating existing workloads to us. So, with Xtract essentially what we've done is we've scanned your existing environment, we've created design spec, we handled the migration process ... >> Steven: ... environment, we create a design spec. We handle for the migration process as well as the cut over. Now, let's go ahead and take a look in our extract user interface here. What we can see is we have a source environment. In this case, this is a VC environment. This can be any VC, whether it's traditional three tier or hypherconverged. We also see our Nutanix target environments. Essentially, these are our AHV target clusters where we're going to be migrating the data and performing the cut over to you. >> Speaker 2: Gotcha. Steven: The first thing that we do here is we go ahead and create a new migration plan. Here, I'm just going to specify this as DB Wave 2. I'll click okay. What I'm doing here is I'm selecting my target Nutanix cluster, as well as my target Nutanix container. Once I'll do that, I'll click next. Now in this case, we actually like to do it big. We're actually going to migrate some production virtual machines over to this target environment. Here, I'm going to select a few windows instances, which are in our database cluster. I'll click next. At this point, essentially what's occurring is it's going through taking a look at these virtual machines as well as taking a look at the target environment. It takes a look at the resources to ensure that we actually have enough, an ample capacity to facilitate the workload. The next thing we'll do is we'll go ahead and type in our credentials here. This is actually going to be used for logging into the virtual machine. We can do a new device driver installation, as well as get any static IP configuration. Well specify our network mapping. Then from there, we'll click next. What we'll do is we'll actually save and start. This will go through create the migration plan. It'll do some analysis on these virtual machines to ensure that we can actually log in before we actually start migrating data. Here we have a migration, which has been in progress. We can see we have a few virtual machines, obviously some Linux, some Windows here. We've cut over a few. What we do to actually cut over these VMS, is go ahead select the VMS- Speaker 2: This is the actual task of actually doing the final stage of cut over. Steven: Yeah, exactly. That's one of the nice things. Essentially, we can migrate the data whenever we want. We actually hook into the VADP API's to do this. Then every 10 minutes, we send over a delta to sync the data. Speaker 2: Gotcha, gotcha. That's how one click migration can now be possible. This is something that if you guys haven't used this, this has been out in the wild, just for a month or so. Its been probably one of our bestselling, because it's free, bestselling features of the recent product release. I've had customers come to me and say, "Look, there are situations where its taken us weeks to move data." That is now minutes from the operator perspective. Forget where the director, or the VP, it's the line architecture and operator that really loves these tools, which is essentially the core of Nutanix. That's one of our core things, is to make sure that if we can keep the engineer and the architect truly happy, then everything else will be fine for us, right? That's extract. Then we have a lot of things, right? We've done the usual things, there's a tunnel functionality on day zero, day one, day two, kind of capabilities. Why don't we start with something around Prism Central, now that we can do one click PC installs? We can do PC scale outs, we can go from managing thousands of VMS, tens of thousands of VMS, while doing all the one click operations, right? Steven: Yep. Speaker 2: Why don't we take a quick look at what's new in Prism Central? Steven: Yep. Absolutely. Here, we can see our Prism element interface. As you mentioned, one of the key things we added here was the ability to deploy Prism Central very simply just with a few clicks. We'll actually go through a distributed PC scale of deployment here. Here, we're actually going to deploy, as this is a new instance. We're going to select our 5.5 version. In this case, we're going to deploy a scale out Prism Central cluster. Obviously, availability and up-time's very critical for us, as we're mainly distributed systems. In this case we're going to deploy a scale-out PC cluster. Here we'll select our number of PC virtual machines. Based upon the number of VMS, we can actually select our size of VM that we'd deploy. If we want to deploy 25K's report, we can do that as well. Speaker 2: Basically a thousand to tens of thousands of VM's are possible now. Steven: Yep. That's a nice thing is you can start small, and then scale out as necessary. We'll select our PC network. Go ahead and input our IP address. Now, we'll go to deploy. Now, here we can see it's actually kicked off the deployment, so it'll go provision these virtual machines to apply the configuration. In a few minutes, we'll be up and running. Speaker 2: Right. While Steven's doing that, one of the things that we've obviously invested in is a ton of making VM operations invisible. Now with Calm's, what we've done is to up level that abstraction. Two applications. At the end of the day, more and more ... when you go to AWS, when you go to GCP, you go to [inaudible 01:04:56], right? The level of abstractions now at an app level, it's cloud formations, and so forth. Essentially, what Calm's able to do is to give you this marketplace that you can go in and self-service [inaudible 01:05:05], create this internal cloud like environment for your end users, whether it be business owners, technology users to self-serve themselves. The process is pretty straightforward. You, as an operator, or an architect, or [inaudible 01:05:16] create these blueprints. Consumers within the enterprise, whether they be self-service users, whether they'll be end business users, are able to consume them for a simple marketplace, and deploy them on whether it be a private cloud using Nutanix, or public clouds using anything with public choices. Then, as a single frame of glass, as operators you're doing conversed operations, at an application centric level between [inaudible 01:05:41] across any of these clouds. It's this combination of producer, consumer, operator in a curated sense. Much like an iPhone with an app store. It's the core construct that we're trying to get with Calm to up level the abstraction interface across multiple clouds. Maybe we'll do a quick demo of this, and then get into the rest of the stuff, right? Steven: Sure. Let's check it out. Here we have our Prism Central user interface. We can see we have two Nutanix clusters, our cloudy04 as well as our Power8 cluster. One of the key things here that we've added is this apps tab. I'm clicking on this apps tab, we can see that we have a few [inaudible 01:06:19] solutions, we have a TensorFlow solution, a [inaudible 01:06:22] et cetera. The nice thing about this is, this is essentially a marketplace where vendors as well as developers could produce these blueprints for consumption by the public. Now, let's actually go ahead and deploy one of these blueprints. Here we have a HR employment engagement app. We can see we have three different tiers of services part of this. Speaker 2: You need a lot of engagement at HR, you know that. Okay, keep going. Steven: Then the next thing we'll do here is we'll go and click on. Based upon this, we'll specify our blueprint name, HR app. The nice thing when I'm deploying is I can actually put in back doors. We'll click clone. Now what we can see here is our blueprint editor. As a developer, I could actually go make modifications, or even as an in-user given the simple intuitive user interface. Speaker 2: This is the consumers side right here, but it's also the [inaudible 01:07:11]. Steven: Yep, absolutely. Yeah, if I wanted to make any modifications, I could select the tier, I could scale out the number of instances, I could modify the packages. Then to actually deploy, all I do is click launch, specify HR app, and click create. Speaker 2: Awesome. Again, this is coming in 5.5. There's one other feature, by the way, that is coming in 5.5 that's surrounding Calm, and Prism Pro, and everything else. That seems to be a much awaited feature for us. What was that? Steven: Yeah. Obviously when we think about multi-tenant, multi-cloud role based access control is a very critical piece of that. Obviously within the organization, we're going to have multiple business groups, multiple units. Our back's a very critical piece. Now, if we go over here to our projects, we can see in this scenario we just have a single project. What we've added is if you want to specify certain roles, in this case we're going to add our good friend John Doe. We can add them, it could be a user or group, but then we specify their role. We can give a developer the ability to edit and create these blueprints, or consumer the ability to actually provision based upon. Speaker 2: Gotcha. Basically in 5.5, you'll have role based access control now in Prism and Calm burned into that, that I believe it'll support custom role shortly after. Steven: Yep, okay. Speaker 2: Good stuff, good stuff. I think this is where the Nutanix guys are supposed to clap, by the way, so that the rest of the guys can clap. Steven: Thank you, thank you. Okay. What do we have? Speaker 2: We have day one stuff, obviously there's a ton of stuff that's coming in core data path capabilities that most of you guys use. One of the most popular things is synchronous replication, especially in Europe. Everybody wants to do [Metro 01:08:49] for whatever reason. But we've got something new, something even more enhanced than Metro, right? Steven: Yep. Speaker 2: Do you want to talk a little bit about it? Steven: Yeah, let's talk about it. If we think about what we had previously, we started out with a synchronous replication. This is essentially going to be your higher RPO. Then we moved into Metro cluster, which was RPO zero. Those are two ins of the gamete. What we did is we introduced new synchronous replication, which really gives you the best of both worlds where you have very, very decreased RPO's, but zero impact in line mainstream performance. Speaker 2: That's it. Let's show something. Steven: Yeah, yeah. Let's do it. Here, we're back at our Prism Element interface. We'll go over here. At this point, we provisioned our HR app, the next thing we need to do is to protect that data. Let's go here to protection domain. We'll create a new PD for our HR app. Speaker 2: You clearly love HR. Steven: Spent a lot of time there. Speaker 2: Yeah, yeah, yeah. Steven: Here, you can see we have our production lamp DBVM. We'll go ahead and protect that entity. We can see that's protected. The next thing we'll do is create a schedule. Now, what would you say would be a good schedule we should actually shoot for? Speaker 2: I don't know, 15 minutes? Steven: 15 minutes is not bad. But I ... Section 7 of 13 [01:00:00 - 01:10:04] Section 8 of 13 [01:10:00 - 01:20:04] (NOTE: speaker names may be different in each section) Speaker 1: ... 15 minutes. Speaker 2: 15 minutes is not bad, but I think the people here deserve much better than that, so I say let's shoot for ... what about 15 seconds? Speaker 1: Yeah. They definitely need a bathroom break, so let's do 15 seconds. Speaker 2: Alright, let's do 15 seconds. Speaker 1: Okay, sounds good. Speaker 2: K. Then we'll select our retention policy and remote cluster replicate to you, which in this case is wedge. And we'll go ahead and create the schedule here. Now at this point we can see our protection domain. Let's go ahead and look at our entities. We can see our database virtual machine. We can see our 15 second schedule, our local snapshots, as well as we'll start seeing our remote snapshots. Now essentially what occurs is we take two very quick snapshots to essentially see the initial data, and then based upon that then we'll start taking our continuous 15 second snaps. Speaker 1: 15 seconds snaps, and obviously near sync has less of impact than synchronous, right? From an architectural perspective. Speaker 2: Yeah, and that's a nice thing is essentially within the cluster it's truly pure synchronous, but externally it's just a lagged a-sync. Speaker 1: Gotcha. So there you see some 15 second snapshots. So near sync is also built into five-five, it's a long-awaited feature. So then, when we expand in the rest of capabilities, I would say, operations. There's a lot of you guys obviously, have started using Prism Pro. Okay, okay, you can clap. You can clap. It's okay. It was a lot of work, by the way, by the core data pad team, it was a lot of time. So Prism Pro ... I don't know if you guys know this, Prism Central now run from zero percent to more than 50 percent attach on install base, within 18 months. And normally that's a sign of true usage, and true value being supported. And so, many things are new in five-five out on Prism Pro starting with the fact that you can do data[inaudible 01:11:49] base lining, alerting, so that you're not capturing a ton of false positives and tons of alerts. We go beyond that, because we have this core machine-learning technology power, we call it cross fit. And, what we've done is we've used that as a foundation now for pretty much all kinds of operations benefits such as auto RCA, where you're able to actually map to particular [inaudible 01:12:12] crosses back to who's actually causing it whether it's the network, a computer, and so forth. But then the last thing that we've also done in five-five now that's quite different shading, is the fact that you can now have a lot of these one-click recommendations and remediations, such as right-sizing, the fact that you can actually move around [inaudible 01:12:28] VMs, constrained VMs, and so forth. So, I now we've packed a lot of functionality in Prism Pro, so why don't we spend a couple of minutes quickly giving a sneak peak into a few of those things. Speaker 2: Yep, definitely. So here we're back at our Prism Central interface and one of the things we've added here, if we take a look at one of our clusters, we can see we have this new anomalies portion here. So, let's go ahead and select that and hop into this. Now let's click on one of these anomaly events. Now, essentially what the system does is we monitor all the entities and everything running within the system, and then based upon that, we can actually determine what we expect the band of values for these metrics to be. So in this scenario, we can see we have a CPU usage anomaly event. So, normal time, we expect this to be right around 86 to 100 percent utilization, but at this point we can see this is drastically dropped from 99 percent to near zero. So, this might be a point as an administrator that I want to go check out this virtual machine, ensure that certain services and applications are still up and running. Speaker 1: Gotcha, and then also it changes the baseline based on- Speaker 2: Yep. Yeah, so essentially we apply machine-learning techniques to this, so the system will dynamically adjust based upon the value adjustment. Speaker 1: Gotcha. What else? Speaker 2: Yep. So the other thing here that we mentioned was capacity planning. So if we go over here, we can take a look at our runway. So in this scenario we have about 30 days worth of runway, which is most constrained by memory. Now, obviously, more nodes is all good for everyone, but we also want to ensure that you get the maximum value on your investment. So here we can actually see a few recommendations. We have 11 overprovision virtual machines. These are essentially VMs which have more resources than are necessary. As well as 19 inactives, so these are dead VMs essentially that haven't been powered on and not utilized. We can also see we have six constrained, as well as one bully. So, constrained VMs are essentially VMs which are requesting more resources than they actually have access to. This could be running at 100 percent CPU utilization, or 100 percent memory, or storage utilization. So we could actually go in and modify these. Speaker 1: Gotcha. So these are all part of the auto remediation capabilities that are now possible? Speaker 2: Yeah. Speaker 1: What else, do you want to take reporting? Speaker 2: Yeah. Yeah, so I know reporting is a very big thing, so if we think about it, we can't rely on an administrator to constantly go into Prism. We need to provide some mechanism to allow them to get emailed reports. So what we've done is we actually autogenerate reports which can be sent via email. So we'll go ahead and add one of these sample reports which was created today. And here we can actually get specific detailed information about our cluster without actually having to go into Prism to get this. Speaker 1: And you can customize these reports and all? Speaker 2: Yep. Yeah, if we hop over here and click on our new report, we can actually see a list of views we could add to these reports, and we can mix and match and customize as needed. Speaker 1: Yeah, so that's the operational side. Now we also have new services like AFS which has been quite popular with many of you folks. We've had hundreds of customers already on it live with SMB functionality. You want to show a couple of things that is new in five-five? Speaker 2: Yeah. Yep, definitely. So ... let's wait for my screen here. So one of the key things is if we looked at that runway tab, what we saw is we had over a year's worth of storage capacity. So, what we saw is customers had the requirement for filers, they had some excess storage, so why not actually build a software featured natively into the cluster. And that's essentially what we've done with AFS. So here we can see we have our AFS cluster, and one of the key things is the ability to scale. So, this particular cluster has around 3.1 or 3.16 billion files, which are running on this AFS cluster, as well as around 3,000 active concurrent sessions. Speaker 1: So basically thousands of concurrent sessions with billions of files? Speaker 2: Yeah, and the nice thing with this is this is actually only a four node Nutanix cluster, so as the cluster actually scales, these numbers will actually scale linearly as a function of those nodes. Speaker 1: Gotcha, gotcha. There's got to be one more bullet here on this slide so what's it about? Speaker 2: Yeah so, obviously the initial use case was realistically for home folders as well as user profiles. That was a good start, but it wasn't the only thing. So what we've done is we've actually also introduced important and upcoming release of NFS. So now you can now use NFS to also interface with our [crosstalk 01:16:44]. Speaker 1: NFS coming soon with AFS by the way, it's a big deal. Big deal. So one last thing obviously, as you go operationalize it, we've talked a lot of things on features and functions but one of the cool things that's always been seminal to this company is the fact that we all for really good customer service and support experience. Right now a lot of it is around the product, the people, the support guys, and so forth. So fundamentally to the product we have found ways using Pulse to instrument everything. With Pulse HD that has been allowed for a little bit longer now. We have fine grain [inaudible 01:17:20] around everything that's being done, so if you turn on this functionality you get a lot of information now that we built, we've used when you make a phone call, or an email, and so forth. There's a ton of context now available to support you guys. What we've now done is taken that and are now externalizing it for your own consumption, so that you don't have to necessarily call support. You can log in, look at your entire profile across your own alerts, your own advisories, your own recommendations. You can look at collective intelligence now that's coming soon which is the fact that look, here are 50 other customers just like you. These are the kinds of customers that are using workloads like you, what are their configuration profiles? Through this centralized customer insights portal you going to get a lot more insight, not just about your own operations, but also how everybody else is also using it. So let's take a quick look at that upcoming functionality. Speaker 2: Yep. Absolutely. So this is our customer 360 portal, so as [inaudible 01:18:18] mentioned, as a customer I can actually log in here, I can get a high-level overview of my existing environment, my cases, the status of those cases, as well as any relevant announcements. So, here based upon my cluster version, if there's any updates which are available, I can then see that here immediately. And then one of the other things that we've added here is this insights page. So essentially this is information that previously support would leverage to essentially proactively look out to the cluster, but now we've exposed this to you as the customer. So, clicking on this insights tab we can see an overview of our environment, in this case we have three Nutanix clusters, right around 550 virtual machines, and over here what's critical is we can actually see our cases. And one of the nice things about this is these area all autogenerated by the cluster itself, so no human interaction, no manual intervention was required to actually create these alerts. The cluster itself will actually facilitate that, send it over to support, and then support can get back out to you automatically. Speaker 1: K, so look for customer insights coming soon. And obviously that's the full life cycle. One cool thing though that's always been unique to Nutanix was the fact that we had [inaudible 01:19:28] security from day one built-in. And [inaudible 01:19:31] chunk of functionality coming in five-five just around this, because every release we try to insert more and more security capabilities, and the first one is around data. What are we doing? Speaker 2: Yeah, absolutely. So previously we had support for data at rest encryption, but this did have the requirement to leverage self-encrypting drives. These can be very expensive, so what we've done, typical to our fashion is we've actually built this in natively via software. So, here within Prism Element, I can go to data at rest encryption, and then I can go and edit this configuration here. Section 8 of 13 [01:10:00 - 01:20:04] Section 9 of 13 [01:20:00 - 01:30:04] (NOTE: speaker names may be different in each section) Steve: Encryption and then I can go and edit this configuration here. From here I could add my CSR's. I can specify KMS server and leverage native software base encryption without the requirement of SED's. Sunil: Awesome. So data address encryption [inaudible 01:20:15] coming soon, five five. Now data security is only one element, the other element was around network security obviously. We've always had this request about what are we doing about networking, what are we doing about network, and our philosophy has always been simple and clear, right. It is that the problem in networking is not the data plan. Problem in networking is the control plan. As in, if a packing loss happens to the top of an ax switch, what do we do? If there's a misconfigured board, what do we do? So we've invested a lot in full blown new network visualization that we'll show you a preview of that's all new in five five, but then once you can visualize you can take action, so you can actually using our netscape API's now in five five. You can optovision re lands on the switch, you can update reps on your load balancing pools. You can update obviously rules on your firewall. And then we've taken that to the next level, which is beyond all that, just let you go to AWS right now, what do you do? You take 100 VM's, you put it in an AWS security group, boom. That's how you get micro segmentation. You don't need to buy expensive products, you don't need to virtualize your network to get micro segmentation. That's what we're doing with five five, is built in one click micro segmentation. That's part of the core product, so why don't we just quickly show that. Okay? Steve: Yeah, let's take a look. So if we think about where we've been so far, we've done the comparison test, we've done a migration over to a Nutanix. We've deployed our new HR app. We've protected it's data, now we need to protect the network's. So one of the things you'll see that's new here is this security policies. What we'll do is we'll actually go ahead and create a new security policy and we'll just say this is HR security policy. We'll specify the application type, which in this case is HR. Sunil: HR of course. Steve: Yep and we can see our app instance is automatically populated, so based upon the number of running instances of that blueprint, that would populate that drop-down. Now we'll go ahead and click next here and what we can see in the middle is essentially those three tiers that composed that app blueprint. Now one of the important things is actually figuring out what's trying to communicate with this within my existing environment. So if I take a look over here on my left hand side, I can essentially see a few things. I can see a Ha Proxy load balancer is trying to communicate with my app here, that's all good. I want to allow that. I can see some sort of monitoring service is trying to communicate with all three of the tiers. That's good as well. Now the last thing I can see here is this IP address which is trying to access my database. Now, that's not designed and that's not supposed to happen, so what we'll do is we'll actually take a look and see what it's doing. Now hopping over to this database virtual machine or the hack VM, what we can see is it's trying to perform a brute force log in attempt to my MySQL database. This is not good. We can see obviously it can connect on the socket, however, it hasn't guessed the right password. In order to lock that down, we'll go back to our policies here and we're going to click deny. Once we've done that, we'll click next and now we'll go to Apply Now. Now we can see our newly created security policy and if we hop back over to this VM, we can now see it's actually timing out and what this means is that it's not able to communicate with that database virtual machine due to micro segmentation actively blocking that request. Sunil: Gotcha and when you go back to the Prism site, essentially what we're saying now is, it's as simple as that, to set up micro segmentation now inside your existing clusters. So that's one click micro segmentation, right. Good stuff. One other thing before we let Steve walk off the stage and then go to the bathroom, but is you guys know Steve, you know he spends a lot time in the gym, you do. Right. He and I share cubes right beside each other by the way just if you ever come to San Jose Nutanix corporate headquarters, you're always welcome. Come to the fourth floor and you'll see Steve and Sunil beside each other, most of the time I'm not in the cube, most of the time he's in the gym. If you go to his cube, you'll see all kinds of stuff. Okay. It's true, it's true, but the reason why I brought this up, was Steve recently became a father, his first kid. Oh by the way this is, clicker, this is how his cube looks like by the way but he left his wife and his new born kid to come over here to show us a demo, so give him a round of applause. Thank you, sir. Steve: Cool, thanks, Sunil. That was fun. Sunil: Thank you. Okay, so lots of good stuff. Please try out five five, give us feedback as you always do. A lot of sessions, a lot of details, have fun hopefully for the rest of the day. To talk about how their using Nutanix, you know here's one of our favorite customers and partners. He normally comes with sunglasses, I've asked him that I have to be the best looking guy on stage in my keynotes, so he's going to try to reduce his charm a little bit. Please come on up, Alessandro. Thank you. Alessandro R.: I'm delighted to be here, thank you so much. Sunil: Maybe we can stand here, tell us a little bit about Leonardo. Alessandro R.: About Leonardo, Leonardo is a key actor of the aerospace defense and security systems. Helicopters, aircraft, the fancy systems, the fancy electronics, weapons unfortunately, but it's also a global actor in high technology field. The security information systems division that is the division I belong to, 3,000 people located in Italy and in UK and there's several other countries in Europe and the U.S. $1 billion dollar of revenue. It has a long a deep experience in information technology, communications, automation, logical and physical security, so we have quite a long experience to expand. I'm in charge of the security infrastructure business side. That is devoted to designing, delivering, managing, secure infrastructures services and secure by design solutions and platforms. Sunil: Gotcha. Alessandro R.: That is. Sunil: Gotcha. Some of your focus obviously in recent times has been delivering secure cloud services obviously. Alessandro R.: Yeah, obviously. Sunil: Versus traditional infrastructure, right. How did Nutanix help you in some of that? Alessandro R.: I can tell something about our recent experience about that. At the end of two thousand ... well, not so recent. Sunil: Yeah, yeah. Alessandro R.: At the end of 2014, we realized and understood that we had to move a step forward, a big step and a fast step, otherwise we would drown. At that time, our newly appointed CEO confirmed that the IT would be a core business to Leonardo and had to be developed and grow. So we decided to start our digital transformation journey and decided to do it in a structured and organized way. Having clear in mind our targets. We launched two programs. One analysis program and one deployments programs that were essentially transformation programs. We had to renew ourselves in terms of service models, in terms of organization, in terms of skills to invest upon and in terms of technologies to adopt. We were stacking a certification of technologies that adopted, companies merged in the years before and we have to move forward and to rationalize all these things. So we spent a lot of time analyzing, comparing technologies, and evaluating what would fit to us. We had two main targets. The first one to consolidate and centralize the huge amount of services and infrastructure that were spread over 52 data centers in Italy, for Leonardo itself. The second one, to update our service catalog with a bunch of cloud services, so we decided to update our data centers. One of our building block of our new data center architecture was Nutanix. We evaluated a lot, we had spent a lot of time in analysis, so that wasn't a bet, but you are quite pioneers at those times. Sunil: Yeah, you took a lot of risk right as an Italian company- Alessandro R.: At this time, my colleague used to say, "Hey, Alessandro, think it over, remember that not a CEO has ever been fired for having chose IBM." I apologize, Bob, but at that time, when Nutanix didn't run on [inaudible 01:29:27]. We have still a good bunch of [inaudible 01:29:31] in our data center, so that will be the chance to ... Audience Member: [inaudible 01:29:37] Alessandro R.: So much you must [inaudible 01:29:37] what you announced it. Sunil: So you took a risk and you got into it. Alessandro R.: Yes, we got into, we are very satisfied with the results we have reached. Sunil: Gotcha. Alessandro R.: Most of the targets we expected to fulfill have come and so we are satisfied, but that doesn't mean that we won't go on asking you a big discount ... Sunil: Sure, sure, sure, sure. Alessandro R.: On price list. Sunil: Sure, sure, so what's next in terms of I know there are some interesting stuff that you're thinking. Alessandro R.: The next- Section 9 of 13 [01:20:00 - 01:30:04] Section 10 of 13 [01:30:00 - 01:40:04] (NOTE: speaker names may be different in each section) Speaker 1: So what's next, in terms of I know you have some interesting stuff that you're thinking of. Speaker 2: The next, we have to move forward obviously. The name Leonardo is inspired to Leonardo da Vinci, it was a guy that in terms of innovation and technology innovation had some good ideas. And so, I think, that Leonardo with Nutanix could go on in following an innovation target and following really mutual ... Speaker 1: Partnership. Speaker 2: Useful partnership, yes. We surely want to investigate the micro segmentation technologies you showed a minute ago because we have some looking, particularly by the economical point of view ... Speaker 1: Yeah, the costs and expenses. Speaker 2: And we have to give an alternative to the technology we are using. We want to use more intensively AHV, again as an alternative solution we are using. We are selecting a couple of services, a couple of quite big projects to build using AHV talking of Calm we are very eager to understand the announcement that they are going to show to all of us because the solution we are currently using is quite[crosstalk 01:31:30] Speaker 1: Complicated. Speaker 2: Complicated, yeah. To move a step of automation to elaborate and implement[inaudible 01:31:36] you spend 500 hours of manual activities that's nonsense so ... Speaker 1: Manual automation. Speaker 2: (laughs) Yes, and in the end we are very interested also in the prism features, mostly the new features that you ... Speaker 1: Talked about. Speaker 2: You showed yesterday in the preview because one bit of benefit that we received from the solution in the operations field means a bit plus, plus to our customer and a distinctive plus to our customs so we are very interested in that ... Speaker 1: Gotcha, gotcha. Thanks for taking the risk, thanks for being a customer and partner. Speaker 2: It has been a pleasure. Speaker 1: Appreciate it. Speaker 2: Bless you, bless you. Speaker 1: Thank you. So, you know obviously one OS, one click was one of our core things, as you can see the tagline doesn't stop there, it also says "any cloud". So, that's the rest of the presentation right now it's about; what are we doing, to now fulfill on that mission of one OS, one cloud, one click with one support experience across any cloud right? And there you know, we talked about Calm. Calm is not only just an operational experience for your private cloud but as you can see it's a one-click experience where you can actually up level your apps, set up blueprints, put SLA's and policies, push them down to either your AWS, GCP all your [inaudible 01:33:00] environments and then on day one while you can do one click provisioning, day two and so forth you will see new and new capabilities such as, one-click migration and mobility seeping into the product. Because, that's the end game for Calm, is to actually be your cloud autonomy platform right? So, you can choose the right cloud for the right workload. And talk about how they're building a multi cloud architecture using Nutanix and partnership a great pleasure to introduce my other good Italian friend Daniele, come up on stage please. From Telecom Italia Sparkle. How are you sir? Daniele: Not too bad thank you. Speaker 1: You want an espresso, cappuccino? Daniele: No, no later. Speaker 1: You all good? Okay, tell us a little about Sparkle. Daniele: Yeah, Sparkle is a fully owned subsidy of Telecom Italia group. Speaker 1: Mm-hmm (affirmative) Daniele: Spinned off in 2003 with the mission to develop the wholesale and multinational corporate and enterprise business abroad. Huge network, as you can see, hundreds of thousands of kilometers of fiber optics spread between; south east Asia to Europe to the U.S. Most of it proprietary part of it realized on some running cables. Part of them proprietary part of them bilateral part of them[inaudible 01:34:21] with other operators. 37 countries in which we have offices in the world, 700 employees, lean and clean company ... Speaker 1: Wow, just 700 employees for all of this. Daniele: Yep, 1.4 billion revenues per year more or less. Speaker 1: Wow, are you a public company? Daniele: No, fully owned by TIM so far. Speaker 1: So, what is your experience with Nutanix so far? Daniele: Well, in a way similar to what Alessandro was describing. To operate such a huge network as you can see before, and to keep on bringing revenues for the wholesale market, while trying to turn the bar toward the enterprise in a serious way. Couple of years ago the management team realized that we had to go through a serious transformation, not just technological but in terms of the way we build the services to our customers. In terms of how we let our customer feel the Sparkle experience. So, we are moving towards cloud but we are moving towards cloud with connectivity attached to it because it's in our cord as a provider of Telecom services. The paradigm that is driving today is the on-demand, is the dynamic and in order to get these things we need to move to software. Most of the network must become invisible as the Nutanix way. So, we decided instead of creating patchworks onto our existing systems, infrastructure, OSS, BSS and network systems, to build a new data center from scratch. And the paradigm being this new data center, the mantra was; everything is software designed, everything must be easy to manage, performance capacity planning, everything must be predictable and everything to be managed by few people. Nutanix is at the moment the baseline of this data center for what concern, let's say all the new networking tools, meaning as the end controllers that are taking care of automation and programmability of the network. Lifecycle service orchestrator, network orchestrator, cloud automation and brokerage platform and everything at the moment runs on AHV because we are forcing our vendors to certify their application on AHV. The only stack that is not at the moment AHV based is on a specific cloud platform because there we were really looking for the multi[inaudible 01:37:05]things that you are announcing today. So, we hope to do the migration as soon as possible. Speaker 1: Gotcha, gotcha. And then looking forward you're going to build out some more data center space, expose these services Daniele: Yeah. Speaker 1: For the customers as well as your internal[crosstalk 01:37:21] Daniele: Yeah, basically yes for sure we are going to consolidate, to invest more in the data centers in the markets on where we are leader. Italy, Turkey and Greece we are big data centers for [inaudible 01:37:33] and cloud, but we believe that the cloud with all the issues discussed this morning by Diraj, that our locality, customer proximity ... we think as a global player having more than 120 pops all over the world, which becomes more than 1000 in partnerships, that the pop can easily be transformed in a data center, so that we want to push the customer experience of what we develop in our main data centers closer to them. So, that we can combine traditional infrastructure as a service with the new connectivity services every single[inaudible 01:38:18] possibly everything running. Speaker 1: I mean, it makes sense, I mean I think essentially in some ways to summarize it's the example of an edge cloud where you're pushing a micro-cloud closer to the customers edge. Daniele: Absolutely. Speaker 1: Great stuff man, thank you so much, thank you so much. Daniele: Pleasure, pleasure. Thank you. Speaker 1: So, you know a couple of other things before we get in the next demo is the fact that in addition to Calm from multi-cloud management we have Zai, we talked about for extended enterprise capabilities and something for you guys to quickly understand why we have done this. In a very simple way is if you think about your enterprise data center, clearly you have a bunch of apps there, a bunch of public clouds and when you look at the paradigm you currently deploy traditional apps, we call them mode one apps, SAP, Exchange and so forth on your enterprise. Then you have next generation apps whether it be [inaudible 01:39:11] space, whether it be Doob or whatever you want to call it, lets call them mode two apps right? And when you look at these two types of apps, which are the predominant set, most enterprises have a combination of mode one and mode two apps, most public clouds primarily are focused, initially these days on mode two apps right? And when people talk about app mobility, when people talk about cloud migration, they talk about lift and shift, forklift [inaudible 01:39:41]. And that's a hard problem I mean, it's happening but it's a hard problem and ends up that its just not a one time thing. Once you've forklift, once you move you have different tooling, different operation support experience, different stacks. What if for some of your applications that mattered ... Section 10 of 13 [01:30:00 - 01:40:04] Section 11 of 13 [01:40:00 - 01:50:04] (NOTE: speaker names may be different in each section) Speaker 1: What if, for some of your applications that matter to you, that are your core enterprise apps that you can retain the same toolimg, the same operational experience and so forth. And that is what we achieve to do with Xi. It is truly making hybrid invisible, which is a next act for this company. It'll take us a few years to really fulfill the vision here, but the idea here is that you shouldn't think about public cloud as a different silo. You should think of it as an extension of your enterprise data centers. And for any services such as DR, whether it would be dev test, whether it be back-up, and so-forth. You can use the same tooling, same experience, get a public cloud-like capability without lift and shift, right? So it's making this lift and shift invisible by, soft of, homogenizing the data plan, the network plan, the control plan is what we really want to do with Xi. Okay? And we'll show you some more details here. But the simplest way to understand this is, think of it as the iPhone, right? D has mentioned this a little bit. This is how we built this experience. Views IOS as the core, IP, we wrap it up with a great package called the iPhone. But then, a few years into the iPhone era, came iTunes and iCloud. There's no apps, per se. That's fused into IOS. And similarly, think about Xi that way. The more you move VMs, into an internet-x environment, stuff like DR comes burnt into the fabric. And to give us a sneak peek into a bunch of the com and Xi cable days, let me bring back Binny who's always a popular guys on stage. Come on up, Binny. I'd be surprised in Binny untucked his shirt. He's always tucking in his shirt. Binny Gill: Okay, yeah. Let's go. Speaker 1: So first thing is com. And to show how we can actually deploy apps, not just across private and public clouds, but across multiple public clouds as well. Right? Binny Gill: Yeah, basically, you know com is about simplifying the disparity between various public clouds out there. So it's very important for us to be able to take one application blueprint and then quickly deploy in whatever cloud of your choice. Without understanding how one cloud is different. Speaker 1: Yeah, that's the goal. Binny Gill: So here, if you can see, I have market list. And by the way, this market list is a great partner community interest. And every single sort of apps come up here. Let me take a sample app here, Hadoop. And click launch. And now where do you want me to deploy? Speaker 1: Let's start at GCP. Binny Gill: GCP, okay. So I click on GCP, and let me give it a name. Hadoop. GCP. Say 30, right. Clear. So this is one click deployment of anything from our marketplace on to a cloud of your choice. Right now, what the system is doing, is taking the intent-filled description of what the application should look like. Not just the infrastructure level but also within the merchant machines. And it's creating a set of work flows that it needs to go deploy. So as you can see, while we were talking, it's loading the application. Making sure that the provisioning workflows are all set up. Speaker 1: And so this is actually, in real time it's actually extracting out some of the GCP requirements. It's actually talking to GCP. Setting up the constructs so that we can actually push it up on the GCP personally. Binny Gill: Right. So it takes a couple of minutes. It'll provision. Let me go back and show you. Say you worked with deploying AWS. So you Hadoop. Hit address. And that's it. So again, the same work flow. Speaker 1: Same process, I see. Binny Gill: It's going to now deploy in AWS. Speaker 1: See one of the keys things is that we actually extracted out all the isms of each of these clouds into this logical substrate. Binny Gill: Yep. Speaker 1: That you can now piggy-back off of. Binny Gill: Absolutely. And it makes it extremely simple for the average consumer. And you know we like more cloud support here over time. Speaker 1: Sounds good. Binny Gill: Now let me go back and show you an app that I had already deployed. Now 13 days ago. It's on GCP. And essentially what I want to show you is what is the view of the application. Firstly, it shows you the cost summary. Hourly, daily, and how the cost is going to look like. The other is how you manage it. So you know one click ways of upgrading, scaling out, starting, deleting, and so on. Speaker 1: So common actions, but independent of the type of clouds. Binny Gill: Independent. And also you can act with these actions over time. Right? Then services. It's learning two services, Hadoop slave and Hadoop master. Hadoop slave runs fast right now. And auditing. It shows you what are the important actions you've taken on this app. Not just, for example, on the IS front. This is, you know how the VMs were created. But also if you scroll down, you know how the application was deployed and brought up. You know the slaves have to discover each other, and so on. Speaker 1: Yeah got you. So find game invisibility into whatever you were doing with clouds because that's been one of the complaints in general. Is that the cloud abstractions have been pretty high level. Binny Gill: Yeah. Speaker 1: Yeah. Binny Gill: Yeah. So that's how we make the differences between the public clouds. All go away for the Indias of ... Speaker 1: Got you. So why don't we now give folks ... Now a lot of this stuff is coming in five, five so you'll see that pretty soon. You'll get your hands around it with AWS and tree support and so forth. What we wanted to show you was emerging alpha version that is being baked. So is a real production code for Xi. And why don't we just jump right in to it. Because we're running short of time. Binny Gill: Yep. Speaker 1: Give folks a flavor for what the production level code is already being baked around. Binny Gill: Right. So the idea of the design is make sure it's not ... the public cloud is no longer any different from your private cloud. It's a true seamless extension of your private cloud. Here I have my test environment. As you can see I'm running the HR app. It has the DB tier and the Web tier. Yeah. Alright? And the DB tier is running Oracle DB. Employee payroll is the Web tier. And if you look at the availability zones that I have, this is my data center. Now I want to protect this application, right? From disaster. What do I do? I need another data center. Speaker 1: Sure. Binny Gill: Right? With Xi, what we are doing is ... You go here and click on Xi Cloud Services. Speaker 1: And essentially as the slide says, you are adding AZs with one click. Binny Gill: Yeps so this is what I'm going to do. Essentially, you log in using your existing my.nutanix.com credentials. So here I'm going to use my guest credentials and log in. Now while I'm logging in what's happening is we are creating a seamless network between the two sides. And then making the Xi cloud availability zone appear. As if it was my own. Right? Speaker 1: Gotcha. Binny Gill: So in a couple of seconds what you'll notice this list is here now I don't have just one availability zone, but another one appears. Speaker 1: So you have essentially, real time now, paid a one data center doing an availability zone. Binny Gill: Yep. Speaker 1: Cool. Okay. Let's see what else we can do. Binny Gill: So now you think about VR setup. Now I'm armed with another data center, let's do DR Center. Now DR set-up is going to be extremely simple. Speaker 1: Okay but it's also based because on the fact that it is the same stack on both sides. Right? Binny Gill: It's the same stack on both sides. We have a secure network lane connecting the two sides, on top of the secure network plane. Now data can flow back and forth. So now applications can go back and forth, securely. Speaker 1: Gotcha, okay. Let's look at one-click DR. Binny Gill: So for one-click DR set-up. A couple of things we need to know. One is a protection rule. This is the RPO, where does it apply to? Right? And the connection of the replication. The other one is recovery plans, in case disaster happens. You know, how do I bring up my machines and application work-order and so on. So let me first show you, Protection Rule. Right? So here's the protection rule. I'll create one right now. Let me call it Platinum. Alright, and source is my own data center. Destination, you know Xi appears now. Recovery point objective, so maybe in a one hour these snapshots going to the public cloud. I want to retain three in the public side, three locally. And now I select what are the entities that I want to protect. Now instead of giving VMs my name, what I can do is app type employee payroll, app type article database. It covers both the categories of the application tiers that I have. And save. Speaker 1: So one of the things here, by the way I don't know if you guys have noticed this, more and more of Nutanix's constructs are being eliminated to become app-centric. Of course is VM centric. And essentially what that allows one to do is to create that as the new service-level API/abstraction. So that under the cover over a period of time, you may be VMs today, maybe containers tomorrow. Or functions, the day after. Binny Gill: Yep. What I just did was all that needs to be done to set up replication from your own data center to Xi. So we started off with no data center to actually replication happening. Speaker 1: Gotcha. Binny Gill: Okay? Speaker 1: No, no. You want to set up some recovery plans? Binny Gill: Yeah so now set up recovery plan. Recovery plans are going to be extremely simple. You select a bunch of VMs or apps, and then there you can say what are the scripts you want to run. What order in which you want to boot things. And you know, you can set up access these things with one click monthly or weekly and so on. Speaker 1: Gotcha. And that sets up the IPs as well as subnets and everything. Binny Gill: So you have the option. You can maintain the same IPs on frame as the move to Xi. Or you can make them- Speaker 1: Remember, you can maintain your own IPs when you actually use the Xi service. There was a lot of things getting done to actually accommodate that capability. Binny Gill: Yeah. Speaker 1: So let's take a look at some of- Binny Gill: You know, the same thing as VPC, for example. Speaker 1: Yeah. Binny Gill: You need to possess on Xi. So, let's create a recovery plan. A recovery plan you select the destination. Where does the recovery happen. Now, after that Section 11 of 13 [01:40:00 - 01:50:04] Section 12 of 13 [01:50:00 - 02:00:04] (NOTE: speaker names may be different in each section) Speaker 1: ... does the recovery happen. Now, after that you have to think of what is the runbook that you want to run when disaster happens, right? So you're preparing for that, so let me call "HR App Recovery." The next thing is the first stage. We're doing the first stage, let me add some entities by categories. I want to bring up my database first, right? Let's click on the database and that's it. Speaker 2: So essentially, you're building the script now. Speaker 1: Building the script- Speaker 2: ... on the [inaudible 01:50:30] Speaker 1: ... but in a visual way. It's simple for folks to understand. You can add custom script, add delay and so on. Let me add another stage and this stage is about bringing up the web tier after the database is up. Speaker 2: So basically, bring up the database first, then bring up the web tier, et cetera, et cetera, right? Speaker 1: That's it. I've created a recovery plan. I mean usually it's complicated stuff, but we made it extremely simple. Now if you click on "Recovery Points," these are snapshots. Snapshots of your applications. As you can see, already the system has taken three snapshots in response to the protection rule that we had created just a couple minutes ago. And these are now being seeded to Xi data centers. Of course this takes time for seeding, so what I have is a setup already and that's the production environment. I'll cut over to that. This is my production environment. Click "Explore," now you see the same application running in production and I have a few other VMs that are not protected. Let's go to "Recovery Points." It has been running for sometime, these recover points are there and they have been replicated to Xi. Speaker 2: So let's do the failover then. Speaker 1: Yeah, so to failover, you'll have to go to Xi so let me login to Xi. This time I'll use my production account for logging into Xi. I'm logging in. The first thing that you'll see in Xi is a dashboard that gives you a quick summary of what your DR testing has been so far, if there are any issues with the replication that you have and most importantly the monthly charges. So right now I've spent with my own credit card about close to 1,000 bucks. You'll have to refund it quickly. Speaker 2: It depends. If the- Speaker 1: If this works- Speaker 2: IF the demo works. Speaker 1: Yeah, if it works, okay. As you see, there are no VMs right now here. If I go to the recovery points, they are there. I can click on the recovery plan that I had created and let's see how hard it's going to be. I click "Failover." It says three entities that, based on the snapshots, it knows that it can recovery from source to destination, which is Xi. And one click for the failover. Now we'll see what happens. Speaker 2: So this is essentially failing over my production now. Speaker 1: Failing over your production now. [crosstalk 01:52:53] If you click on the "HR App Recovery," here you see now it started the recovery plan. The simple recovery plan that we had created, it actually gets converted to a series of tasks that the system has to do. Each VM has to be hydrated, powered on in the right order and so on and so forth. You don't have to worry about any of that. You can keep an eye on it. But in the meantime, let's talk about something else. We are doing failover, but after you failover, you run in Xi as if it was your own setup and environment. Maybe I want to create a new VM. I create a VM and I want to maybe extend my HR app's web tier. Let me name it as "HR_Web_3." It's going to boot from that disk. Production network, I want to run it on production network. We have production and test categories. This one, I want to give it employee payroll category. Now it applies the same policies as it's peers will. Here, I'm going to create the VM. As you can see, I can already see some VMs coming up. There you go. So three VMs from on-prem are now being filled over here while the fourth VM that I created is already being powered. Speaker 2: So this is basically realtime, one-click failover, while you're using Xi for your [inaudible 01:54:13] operations as well. Speaker 1: Exactly. Speaker 2: Wow. Okay. Good stuff. What about- Speaker 1: Let me add here. As the other cloud vendors, they'll ask you to make your apps ready for their clouds. Well we tell our engineers is make our cloud ready for your apps. So as you can see, this failover is working. Speaker 2: So what about failback? Speaker 1: All of them are up and you can see the protection rule "platinum" has been applied to all four. Now let's look at this recovery plan points "HR_Web_3" right here, it's already there. Now assume the on-prem was already up. Let's go back to on-prem- Speaker 2: So now the scenario is, while Binny's coming up, is that the on-prem has come back up and we're going to do live migration back as in a failback scenario between the data centers. Speaker 1: And how hard is it going to be. "HR App Recovery" the same "HR App Recovery", I click failover and the system is smart enough to understand the direction is reversed. It's also smart enough to figure out "Hey, there are now the four VMs are there instead of three." Xi to on-prem, one-click failover again. Speaker 2: And it's rerunning obviously the same runbook but in- Speaker 1: Same runbook but the details are different. But it's hidden from the customer. Let me go to the VMs view and do something interesting here. I'll group them by availability zone. Here you go. As you can see, this is a hybrid cloud view. Same management plane for both sides public and private. There are two availability zones, the Xi availability zone is in the cloud- Speaker 2: So essentially you're moving from the top- Speaker 1: Yeah, top- Speaker 2: ... to the bottom. Speaker 1: ... to the bottom. Speaker 2: That's happening in the background. While this is happening, let me take the time to go and look at billing in Xi. Speaker 1: Sure, some of the common operations that you can now see in a hybrid view. Speaker 2: So you go to "Billing" here and first let me look at my account. And account is a simple page, I have set up active directory and you can add your own XML file, upload it. You can also add multi-factor authentication, all those things are simple. On the billing side, you can see more details about how did I rack up $966. Here's my credit card. Detailed description of where the cost is coming from. I can also download previous versions, builds. Speaker 1: It's actually Nutanix as a service essentially, right? Speaker 2: Yep. Speaker 1: As a subscription service. Speaker 2: Not only do we go to on-prem as you can see, while we were talking, two VMs have already come back on-prem. They are powered off right now. The other two are on the wire. Oh, there they are. Speaker 1: Wow. Speaker 2: So now four VMs are there. Speaker 1: Okay. Perfect. Sometimes it works, sometimes it doesn't work, but it's good. Speaker 2: It always works. Speaker 1: Always works. All right. Speaker 2: As you can see the platinum protection rule is now already applied to them and now it has reversed the direction of [inaudible 01:57:12]- Speaker 1: Remember, we showed one-click DR, failover, failback, built into the product when Xi ships to any Nutanix fabric. You can start with DSX on premise, obviously when you failover to Xi. You can start with AHV, things that are going to take the same paradigm of one-click operations into this hybrid view. Speaker 2: Let's stop doing lift and shift. The era has come for click and shift. Speaker 1: Binny's now been promoted to the Chief Marketing Officer, too by the way. Right? So, one more thing. Speaker 2: Okay. Speaker 1: You know we don't stop any conferences without a couple of things that are new. The first one is something that we should have done, I guess, a couple of years ago. Speaker 2: It depends how you look at it. Essentially, if you look at the cloud vendors, one of the key things they have done is they've built services as building blocks for the apps that run on top of them. What we have done at Nutanix, we've built core services like block services, file services, now with Calm, a marketplace. Now if you look at [inaudible 01:58:14] applications, one of the core building pieces is the object store. I'm happy to announce that we have the object store service coming up. Again, in true Nutanix fashion, it's going to be elastic. Speaker 1: Let's- Speaker 2: Let me show you. Speaker 1: Yeah, let's show it. It's something that is an object store service by the way that's not just for your primary, but for your secondary. It's obviously not just for on-prem, it's hybrid. So this is being built as a next gen object service, as an extension of the core fabric, but accommodating a bunch of these new paradigms. Speaker 2: Here is the object browser. I've created a bunch of buckets here. Again, object stores can be used in various ways: as primary object store, or for secondary use cases. I'll show you both. I'll show you a Hadoop use case where Hadoop is using this as a primary store and a backup use case. Let's just jump right in. This is a Hadoop bucket. AS you can see, there's a temp directory, there's nothing interesting there. Let me go to my Hadoop VM. There it is. And let me run a Hadoop job. So this Hadoop job essentially is going to create a bunch of files, write them out and after that do map radius on top. Let's wait for the job to start. It's running now. If we go back to the object store, refresh the page, now you see it's writing from benchmarks. Directory, there's a bunch of files that will write here over time. This is going to take time. Let's not wait for it, but essentially, it is showing Hadoop that uses AWS 3 compatible API, that can run with our object store because our object store exposes AWS 3 compatible APIs. The other use case is the HYCU backup. As you can see, that's a- Section 12 of 13 [01:50:00 - 02:00:04] Section 13 of 13 [02:00:00 - 02:13:42] (NOTE: speaker names may be different in each section) Vineet: This is the hycu back up ... As you can see, that's a back-up software that can back-up WSS3. If you point it to Nutanix objects or it can back-up there as well. There are a bunch of back-up files in there. Now, object stores, it's very important for us to be able to view what's going on there and make sure there's no objects sprawled because once it's easy to write objects, you just accumulate a lot of them. So what we wanted to do, in true Nutanix style, is give you a quick overview of what's happening with your object store. So here, as you can see, you can look at the buckets, where the load is, you can look at the bucket sizes, where the data is, and also what kind of data is there. Now this is a dashboard that you can optimize, and customize, for yourself as well, right? So that's the object store. Then we go back here, and I have one more thing for you as well. Speaker 2: Okay. Sounds good. I already clicked through a slide, by the way, by mistake, but keep going. Vineet: That's okay. That's okay. It is actually a quiz, so it's good for people- Speaker 2: Okay. Sounds good. Vineet: It's good for people to have some clues. So the quiz is, how big is my SAP HANA VM, right? I have to show it to you before you can answer so you don't leak the question. Okay. So here it is. So the SAP HANA VM here vCPU is 96. Pretty beefy. Memory is 1.5 terabytes. The question to all of you is, what's different in this screen? Speaker 2: Who's a real Prism user here, by the way? Come on, it's got to be at least a few. Those guys. Let's see if they'll notice something. Vineet: What's different here? Speaker 3: There's zero CVM. Vineet: Zero CVM. Speaker 2: That's right. Yeah. Yeah, go ahead. Vineet: So, essentially, in the Nutanix fabric, every server has to run a [inaudible 02:01:48] machine, right? That's where the storage comes from. I am happy to announce the Acropolis Compute Cloud, where you will be able to run the HV on servers that are storage-less, and add it to your existing cluster. So it's a compute cloud that now can be managed from Prism Central, and that way you can preserve your investments on your existing server farms, and add them to the Nutanix fabric. Speaker 2: Gotcha. So, essentially ... I mean, essentially, imagine, now that you have the equivalent of S3 and EC2 for the enterprise now on Premisis, like you have the equivalent compute and storage services on JCP and AWS, and so forth, right? So the full flexibility for any kind of workload is now surely being available on the same Nutanix fabric. Thanks a lot, Vineet. Before we wrap up, I'd sort of like to bring this home. We've announced a pretty strategic partnership with someone that has always inspired us for many years. In fact, one would argue that the genesis of Nutanix actually was inspired by Google and to talk more about what we're actually doing here because we've spent a lot of time now in the last few months to really get into the product capabilities. You're going to see some upcoming capabilities and 55X release time frame. To talk more about that stuff as well as some of the long-term synergies, let me invite Bill onstage. C'mon up Bill. Tell us a little bit about Google's view in the cloud. Bill: First of all, I want to compliment the demo people and what you did. Phenomenal work that you're doing to make very complex things look really simple. I actually started several years ago as a product manager in high availability and disaster recovery and I remember, as a product manager, my engineers coming to me and saying "we have a shortage of our engineers and we want you to write the fail-over routines for the SAP instance that we're supporting." And so here's the PERL handbook, you know, I haven't written in PERL yet, go and do all that work to include all the network setup and all that work, that's amazing, what you are doing right there and I think that's the spirit of the partnership that we have. From a Google perspective, obviously what we believe is that it's time now to harness the power of scale security and these innovations that are coming out. At Google we've spent a lot of time in trying to solve these really large problems at scale and a lot of the technology that's been inserted into the industry right now. Things like MapReduce, things like TenserFlow algorithms for AI and things like Kubernetes and Docker were first invented at Google to solve problems because we had to do it to be able to support the business we have. You think about search, alright? When you type in search terms within the search box, you see a white screen, what I see is all the data-center work that's happening behind that and the MapReduction to be able to give you a search result back in seconds. Think about that work, think about that process. Taking and pursing those search terms, dividing that over thousands of [inaudible 02:05:01], being able to then search segments of the index of the internet and to be able to intelligent reduce that to be able to get you an answer within seconds that is prioritized, that is sorted. How many of you, out there, have to go to page two and page three to get the results you want, today? You don't because of the power of that technology. We think it's time to bring that to the consumer of the data center enterprise space and that's what we're doing at Google. Speaker 2: Gotcha, man. So I know we've done a lot of things now over the last year worth of collaboration. Why don't we spend a few minutes talking through a couple things that we're started on, starting with [inaudible 02:05:36] going into com and then we'll talk a little bit about XI. Bill: I think one of the advantages here, as we start to move up the stack and virtualize things to your point, right, is virtual machines and the work required of that still takes a fair amount of effort of which you're doing a lot to reduce, right, you're making that a lot simpler and seamless across both On-Prem and the cloud. The next step in the journey is to really leverage the power of containers. Lightweight objects that allow you to be able to head and surface functionality without being dependent upon the operating system or the VM to be able to do that work. And then having the orchestration layer to be able to run that in the context of cloud and On-Prem We've been very successful in building out the Kubernetes and Docker infrastructure for everyone to use. The challenge that you're solving is how to we actually bridge the gap. How do we actually make that work seamlessly between the On-Premise world and the cloud and that's where our partnership, I think, is so valuable. It's cuz you're bringing the secret sauce to be able to make that happen. Speaker 2: Gotcha, gotcha. One last thing. We talked about Xi and the two companies are working really closely where, essentially the Nutanix fabric can seamlessly seep into every Google platform as infrastructure worldwide. Xi, as a service, could be delivered natively with GCP, leading to some additional benefits, right? Bill: Absolutely. I think, first and foremost, the infrastructure we're building at scale opens up all sorts of possibilities. I'll just use, maybe, two examples. The first one is network. If you think about building out a global network, there's a lot of effort to do that. Google is doing that as a byproduct of serving our consumers. So, if you think about YouTube, if you think about there's approximately a billion hours of YouTube that's watched every single day. If you think about search, we have approximately two trillion searches done in a year and if you think about the number of containers that we run in a given week, we run about two billion containers per week. So the advantage of being able to move these workloads through Xi in a disaster recovery scenario first is that you get to take advantage of the scale. Secondly, it's because of the network that we've built out, we had to push the network out to the edge. So every single one of our consumers are using YouTube and search and Google Play and all those services, by the way we have over eight services today that have more than a billion simultaneous users, you get to take advantage of that network capacity and capability just by moving to the cloud. And then the last piece, which is a real advantage, we believe, is that it's not just about the workloads you're moving but it's about getting access to new services that cloud preventers, like Google, provide. For example, are you taking advantage like the next generation Hadoop, which is our big query capability? Are you taking advantage of the artificial intelligence derivative APIs that we have around, the video API, the image API, the speech-to-text API, mapping technology, all those additional capabilities are now exposed to you in the availability of Google cloud that you can now leverage directly from systems that are failing over and systems that running in our combined environment. Speaker 2: A true converged fabric across public and private. Bill: Absolutely. Speaker 2: Great stuff Bill. Thank you, sir. Bill: Thank you, appreciate it. Speaker 2: Good to have you. So, the last few slides. You know we've talked about, obviously One OS, One Click and eCloud. At the end of the day, it's pretty obvious that we're evaluating the move from a form factor perspective, where it's not just an OS across multiple platforms but it's also being distributed genuinely from consuming itself as an appliance to a software form factor, to subscription form factor. What you saw today, obviously, is the fact that, look you know we're still continuing, the velocity has not slowed down. In fact, in some cases it's accelerated. If you ask my quality guys, if you ask some of our customers, we're coming out fast and furious with a lot of these capabilities. And some of this directly reflects, not just in features, but also in performance, just like a public cloud, where our performance curve is going up while our price-performance curve is being more attractive over a period of time. And this is balancing it with quality, it is what differentiates great companies from good companies, right? So when you look at the number of nodes that have been shipping, it was around ten more nodes than where we were a few years ago. But, if you look at the number of customer-found defects, as a percentage of number of nodes shipped it is not only stabilized, it has actually been coming down. And that's directly reflected in the NPS part. That most of you guys love. How many of you guys love your Customer Support engineers? Give them a round of applause. Great support. So this balance of velocity, plus quality, is what differentiates a company. And, before we call it a wrap, I just want to leave you with one thing. You know, obviously, we've talked a lot about technology, innovation, inspiration, and so forth. But, as I mentioned, from last night's discussion with Sir Ranulph, let's think about a few things tonight. Don't take technology too seriously. I'll give you a simple story that he shared with me, that puts things into perspective. The year was 1971. He had come back from Aman, from his service. He was figuring out what to do. This was before he became a world-class explorer. 1971, he had a job interview, came down from Scotland and applied for a role in a movie. And he failed that job interview. But he was selected from thousands of applicants, came down to a short list, he was a ... that's a hint ... he was a good looking guy and he lost out that role. And the reason why I say this is, if he had gotten that job, first of all I wouldn't have met him, but most importantly the world wouldn't have had an explorer like him. The guy that he lost out to was Roger Moore and the role was for James Bond. And so, when you go out tonight, enjoy with your friends [inaudible 02:12:06] or otherwise, try to take life a little bit once upon a time or more than once upon a time. Have fun guys, thank you. Speaker 5: Ladies and gentlemen please make your way to the coffee break, your breakout sessions will begin shortly. Don't forget about the women's lunch today, everyone is welcome. Please join us. You can find the details in the mobile app. Please share your feedback on all sessions in the mobile app. There will be prizes. We will see you back here and 5:30, doors will open at 5, after your last breakout session. Breakout sessions will start sharply at 11:10. Thank you and have a great day. Section 13 of 13 [02:00:00 - 02:13:42]