>>Individuals create developers, translate ideas to code, to create great applications and great applications. Touch everyone. A Docker. We know that collaboration is key to your innovation sharing ideas, working together. Launching the most secure applications. Docker is with you wherever your team innovates, whether it be robots or autonomous cars, we're doing research to save lives during a pandemic, revolutionizing, how to buy and sell goods online, or even going into the unknown frontiers of space. Docker is launching innovation everywhere. Join us on the journey to build, share, run the future. >>Hello and welcome to Docker con 2021. We're incredibly excited to have more than 80,000 of you join us today from all over the world. As it was last year, this year at DockerCon is 100% virtual and 100% free. So as to enable as many community members as possible to join us now, 100%. Virtual is also an acknowledgement of the continuing global pandemic in particular, the ongoing tragedies in India and Brazil, the Docker community is a global one. And on behalf of all Dr. Khan attendees, we are donating $10,000 to UNICEF support efforts to fight the virus in those countries. Now, even in those regions of the world where the pandemic is being brought under control, virtual first is the new normal. It's been a challenging transition. This includes our team here at Docker. And we know from talking with many of you that you and your developer teams are challenged by this as well. So to help application development teams better collaborate and ship faster, we've been working on some powerful new features and we thought it would be fun to start off with a demo of those. How about it? Want to have a look? All right. Then no further delay. I'd like to introduce Youi Cal and Ben, gosh, over to you and Ben >>Morning, Ben, thanks for jumping on real quick. >>Have you seen the email from Scott? The one about updates and the docs landing page Smith, the doc combat and more prominence. >>Yeah. I've got something working on my local machine. I haven't committed anything yet. I was thinking we could try, um, that new Docker dev environments feature. >>Yeah, that's cool. So if you hit the share button, what I should do is it will take all of your code and the dependencies and the image you're basing it on and wrap that up as one image for me. And I can then just monitor all my machines that have been one click, like, and then have it side by side, along with the changes I've been looking at as well, because I was also having a bit of a look and then I can really see how it differs to what I'm doing. Maybe I can combine it to do the best of both worlds. >>Sounds good. Uh, let me get that over to you, >>Wilson. Yeah. If you pay with the image name, I'll get that started up. >>All right. Sen send it over >>Cheesy. Okay, great. Let's have a quick look at what you he was doing then. So I've been messing around similar to do with the batter. I've got movie at the top here and I think it looks pretty cool. Let's just grab that image from you. Pick out that started on a dev environment. What this is doing. It's just going to grab the image down, which you can take all of the code, the dependencies only get brunches working on and I'll get that opened up in my idea. Ready to use. It's a here close. We can see our environment as my Molly image, just coming down there and I've got my new idea. >>We'll load this up and it'll just connect to my dev environment. There we go. It's connected to the container. So we're working all in the container here and now give it a moment. What we'll do is we'll see what changes you've been making as well on the code. So it's like she's been working on a landing page as well, and it looks like she's been changing the banner as well. So let's get this running. Let's see what she's actually doing and how it looks. We'll set up our checklist and then we'll see how that works. >>Great. So that's now rolling. So let's just have a look at what you use doing what changes she had made. Compare those to mine just jumped back into my dev container UI, see that I've got both of those running side by side with my changes and news changes. Okay. So she's put Molly up there rather than mobi or somebody had the same idea. So I think in a way I can make us both happy. So if we just jumped back into what we'll do, just add Molly and Moby and here I'll save that. And what we can see is, cause I'm just working within the container rather than having to do sort of rebuild of everything or serve, or just reload my content. No, that's straight the page. So what I can then do is I can come up with my browser here. Once that's all refreshed, refresh the page once hopefully, maybe twice, we should then be able to see your refresh it or should be able to see that we get Malia mobi come up. So there we go, got Molly mobi. So what we'll do now is we'll describe that state. It sends us our image and then we'll just create one of those to share with URI or share. And we'll get a link for that. I guess we'll send that back over to you. >>So I've had a look at what you were doing and I'm actually going to change. I think that might work for both of us. I wondered if you could take a look at it. If I send it over. >>Sounds good. Let me grab the link. >>Yeah, it's a dev environment link again. So if you just open that back in the doc dashboard, it should be able to open up the code that I've changed and then just run it in the same way you normally do. And that shouldn't interrupt what you're already working on because there'll be able to run side by side with your other brunch. You already got, >>Got it. Got it. Loading here. Well, that's great. It's Molly and movie together. I love it. I think we should ship it. >>Awesome. I guess it's chip it and get on with the rest of.com. Wasn't that cool. Thank you Joey. Thanks Ben. Everyone we'll have more of this later in the keynote. So stay tuned. Let's say earlier, we've all been challenged by this past year, whether the COVID pandemic, the complete evaporation of customer demand in many industries, unemployment or business bankruptcies, we all been touched in some way. And yet, even to miss these tragedies last year, we saw multiple sources of hope and inspiration. For example, in response to COVID we saw global communities, including the tech community rapidly innovate solutions for analyzing the spread of the virus, sequencing its genes and visualizing infection rates. In fact, if all in teams collaborating on solutions for COVID have created more than 1,400 publicly shareable images on Docker hub. As another example, we all witnessed the historic landing and exploration of Mars by the perseverance Rover and its ingenuity drone. >>Now what's common in these examples, these innovative and ambitious accomplishments were made possible not by any single individual, but by teams of individuals collaborating together. The power of teams is why we've made development teams central to Docker's mission to build tools and content development teams love to help them get their ideas from code to cloud as quickly as possible. One of the frictions we've seen that can slow down to them in teams is that the path from code to cloud can be a confusing one, riddle with multiple point products, tools, and images that need to be integrated and maintained an automated pipeline in order for teams to be productive. That's why a year and a half ago we refocused Docker on helping development teams make sense of all this specifically, our goal is to provide development teams with the trusted content, the sharing capabilities and the pipeline integrations with best of breed third-party tools to help teams ship faster in short, to provide a collaborative application development platform. >>Everything a team needs to build. Sharon run create applications. Now, as I noted earlier, it's been a challenging year for everyone on our planet and has been similar for us here at Docker. Our team had to adapt to working from home local lockdowns caused by the pandemic and other challenges. And despite all this together with our community and ecosystem partners, we accomplished many exciting milestones. For example, in open source together with the community and our partners, we open sourced or made major contributions to many projects, including OCI distribution and the composed plugins building on these open source projects. We had powerful new capabilities to the Docker product, both free and subscription. For example, support for WSL two and apple, Silicon and Docker, desktop and vulnerability scanning audit logs and image management and Docker hub. >>And finally delivering an easy to use well-integrated development experience with best of breed tools and content is only possible through close collaboration with our ecosystem partners. For example, this last year we had over 100 commercialized fees, join our Docker verified publisher program and over 200 open source projects, join our Docker sponsored open source program. As a result of these efforts, we've seen some exciting growth in the Docker community in the 12 months since last year's Docker con for example, the number of registered developers grew 80% to over 8 million. These developers created many new images increasing the total by 56% to almost 11 million. And the images in all these repositories were pulled by more than 13 million monthly active IP addresses totaling 13 billion pulls a month. Now while the growth is exciting by Docker, we're even more excited about the stories we hear from you and your development teams about how you're using Docker and its impact on your businesses. For example, cancer researchers and their bioinformatics development team at the Washington university school of medicine needed a way to quickly analyze their clinical trial results and then share the models, the data and the analysis with other researchers they use Docker because it gives them the ease of use choice of pipeline tools and speed of sharing so critical to their research. And most importantly to the lives of their patients stay tuned for another powerful customer story later in the keynote from Matt fall, VP of engineering at Oracle insights. >>So with this last year behind us, what's next for Docker, but challenge you this last year of force changes in how development teams work, but we felt for years to come. And what we've learned in our discussions with you will have long lasting impact on our product roadmap. One of the biggest takeaways from those discussions that you and your development team want to be quicker to adapt, to changes in your environment so you can ship faster. So what is DACA doing to help with this first trusted content to own the teams that can focus their energies on what is unique to their businesses and spend as little time as possible on undifferentiated work are able to adapt more quickly and ship faster in order to do so. They need to be able to trust other components that make up their app together with our partners. >>Docker is doubling down and providing development teams with trusted content and the tools they need to use it in their applications. Second, remote collaboration on a development team, asking a coworker to take a look at your code used to be as easy as swiveling their chair around, but given what's happened in the last year, that's no longer the case. So as you even been hinted in the demo at the beginning, you'll see us deliver more capabilities for remote collaboration within a development team. And we're enabling development team to quickly adapt to any team configuration all on prem hybrid, all work from home, helping them remain productive and focused on shipping third ecosystem integrations, those development teams that can quickly take advantage of innovations throughout the ecosystem. Instead of getting locked into a single monolithic pipeline, there'll be the ones able to deliver amps, which impact their businesses faster. >>So together with our ecosystem partners, we are investing in more integrations with best of breed tools, right? Integrated automated app pipelines. Furthermore, we'll be writing more public API APIs and SDKs to enable ecosystem partners and development teams to roll their own integrations. We'll be sharing more details about remote collaboration and ecosystem integrations. Later in the keynote, I'd like to take a moment to share with Docker and our partners are doing for trusted content, providing development teams, access to content. They can trust, allows them to focus their coding efforts on what's unique and differentiated to that end Docker and our partners are bringing more and more trusted content to Docker hub Docker official images are 160 images of popular upstream open source projects that serve as foundational building blocks for any application. These include operating systems, programming, languages, databases, and more. Furthermore, these are updated patch scan and certified frequently. So I said, no image is older than 30 days. >>Docker verified publisher images are published by more than 100 commercialized feeds. The image Rebos are explicitly designated verify. So the developers searching for components for their app know that the ISV is actively maintaining the image. Docker sponsored open source projects announced late last year features images for more than 200 open source communities. Docker sponsors these communities through providing free storage and networking resources and offering their community members unrestricted access repos for businesses allow businesses to update and share their apps privately within their organizations using role-based access control and user authentication. No, and finally, public repos for communities enable community projects to be freely shared with anonymous and authenticated users alike. >>And for all these different types of content, we provide services for both development teams and ISP, for example, vulnerability scanning and digital signing for enhanced security search and filtering for discoverability packaging and updating services and analytics about how these products are being used. All this trusted content, we make available to develop teams for them directly to discover poll and integrate into their applications. Our goal is to meet development teams where they live. So for those organizations that prefer to manage their internal distribution of trusted content, we've collaborated with leading container registry partners. We announced our partnership with J frog late last year. And today we're very pleased to announce our partnerships with Amazon and Miranda's for providing an integrated seamless experience for joint for our joint customers. Lastly, the container images themselves and this end to end flow are built on open industry standards, which provided all the teams with flexibility and choice trusted content enables development teams to rapidly build. >>As I let them focus on their unique differentiated features and use trusted building blocks for the rest. We'll be talking more about trusted content as well as remote collaboration and ecosystem integrations later in the keynote. Now ecosystem partners are not only integral to the Docker experience for development teams. They're also integral to a great DockerCon experience, but please join me in thanking our Dr. Kent on sponsors and checking out their talks throughout the day. I also want to thank some others first up Docker team. Like all of you this last year has been extremely challenging for us, but the Docker team rose to the challenge and worked together to continue shipping great product, the Docker community of captains, community leaders, and contributors with your welcoming newcomers, enthusiasm for Docker and open exchanges of best practices and ideas talker, wouldn't be Docker without you. And finally, our development team customers. >>You trust us to help you build apps. Your businesses rely on. We don't take that trust for granted. Thank you. In closing, we often hear about the tenant's developer capable of great individual feeds that can transform project. But I wonder if we, as an industry have perhaps gotten this wrong by putting so much emphasis on weight, on the individual as discussed at the beginning, great accomplishments like innovative responses to COVID-19 like landing on Mars are more often the results of individuals collaborating together as a team, which is why our mission here at Docker is delivered tools and content developers love to help their team succeed and become 10 X teams. Thanks again for joining us, we look forward to having a great DockerCon with you today, as well as a great year ahead of us. Thanks and be well. >>Hi, I'm Dana Lawson, VP of engineering here at get hub. And my job is to enable this rich interconnected community of builders and makers to build even more and hopefully have a great time doing it in order to enable the best platform for developers, which I know is something we are all passionate about. We need to partner across the ecosystem to ensure that developers can have a great experience across get hub and all the tools that they want to use. No matter what they are. My team works to build the tools and relationships to make that possible. I am so excited to join Scott on this virtual stage to talk about increasing developer velocity. So let's dive in now, I know this may be hard for some of you to believe, but as a former CIS admin, some 21 years ago, working on sense spark workstations, we've come such a long way for random scripts and desperate systems that we've stitched together to this whole inclusive developer workflow experience being a CIS admin. >>Then you were just one piece of the siloed experience, but I didn't want to just push code to production. So I created scripts that did it for me. I taught myself how to code. I was the model lazy CIS admin that got dangerous and having pushed a little too far. I realized that working in production and building features is really a team sport that we had the opportunity, all of us to be customer obsessed today. As developers, we can go beyond the traditional dev ops mindset. We can really focus on adding value to the customer experience by ensuring that we have work that contributes to increasing uptime via and SLS all while being agile and productive. We get there. When we move from a pass the Baton system to now having an interconnected developer workflow that increases velocity in every part of the cycle, we get to work better and smarter. >>And honestly, in a way that is so much more enjoyable because we automate away all the mundane and manual and boring tasks. So we get to focus on what really matters shipping, the things that humans get to use and love. Docker has been a big part of enabling this transformation. 10, 20 years ago, we had Tomcat containers, which are not Docker containers. And for y'all hearing this the first time go Google it. But that was the way we built our applications. We had to segment them on the server and give them resources. Today. We have Docker containers, these little mini Oasys and Docker images. You can do it multiple times in an orchestrated manner with the power of actions enabled and Docker. It's just so incredible what you can do. And by the way, I'm showing you actions in Docker, which I hope you use because both are great and free for open source. >>But the key takeaway is really the workflow and the automation, which you certainly can do with other tools. Okay, I'm going to show you just how easy this is, because believe me, if this is something I can learn and do anybody out there can, and in this demo, I'll show you about the basic components needed to create and use a package, Docker container actions. And like I said, you won't believe how awesome the combination of Docker and actions is because you can enable your workflow to do no matter what you're trying to do in this super baby example. We're so small. You could take like 10 seconds. Like I am here creating an action due to a simple task, like pushing a message to your logs. And the cool thing is you can use it on any the bit on this one. Like I said, we're going to use push. >>You can do, uh, even to order a pizza every time you roll into production, if you wanted, but at get hub, that'd be a lot of pizzas. And the funny thing is somebody out there is actually tried this and written that action. If you haven't used Docker and actions together, check out the docs on either get hub or Docker to get you started. And a huge shout out to all those doc writers out there. I built this demo today using those instructions. And if I can do it, I know you can too, but enough yapping let's get started to save some time. And since a lot of us are Docker and get hub nerds, I've already created a repo with a Docker file. So we're going to skip that step. Next. I'm going to create an action's Yammel file. And if you don't Yammer, you know, actions, the metadata defines my important log stuff to capture and the input and my time out per parameter to pass and puts to the Docker container, get up a build image from your Docker file and run the commands in a new container. >>Using the Sigma image. The cool thing is, is you can use any Docker image in any language for your actions. It doesn't matter if it's go or whatever in today's I'm going to use a shell script and an input variable to print my important log stuff to file. And like I said, you know me, I love me some. So let's see this action in a workflow. When an action is in a private repo, like the one I demonstrating today, the action can only be used in workflows in the same repository, but public actions can be used by workflows in any repository. So unfortunately you won't get access to the super awesome action, but don't worry in the Guild marketplace, there are over 8,000 actions available, especially the most important one, that pizza action. So go try it out. Now you can do this in a couple of ways, whether you're doing it in your preferred ID or for today's demo, I'm just going to use the gooey. I'm going to navigate to my actions tab as I've done here. And I'm going to in my workflow, select new work, hello, probably load some workflows to Claire to get you started, but I'm using the one I've copied. Like I said, the lazy developer I am in. I'm going to replace it with my action. >>That's it. So now we're going to go and we're going to start our commitment new file. Now, if we go over to our actions tab, we can see the workflow in progress in my repository. I just click the actions tab. And because they wrote the actions on push, we can watch the visualization under jobs and click the job to see the important stuff we're logging in the input stamp in the printed log. And we'll just wait for this to run. Hello, Mona and boom. Just like that. It runs automatically within our action. We told it to go run as soon as the files updated because we're doing it on push merge. That's right. Folks in just a few minutes, I built an action that writes an entry to a log file every time I push. So I don't have to do it manually. In essence, with automation, you can be kind to your future self and save time and effort to focus on what really matters. >>Imagine what I could do with even a little more time, probably order all y'all pieces. That is the power of the interconnected workflow. And it's amazing. And I hope you all go try it out, but why do we care about all of that? Just like in the demo, I took a manual task with both tape, which both takes time and it's easy to forget and automated it. So I don't have to think about it. And it's executed every time consistently. That means less time for me to worry about my human errors and mistakes, and more time to focus on actually building the cool stuff that people want. Obviously, automation, developer productivity, but what is even more important to me is the developer happiness tools like BS, code actions, Docker, Heroku, and many others reduce manual work, which allows us to focus on building things that are awesome. >>And to get into that wonderful state that we call flow. According to research by UC Irvine in Humboldt university in Germany, it takes an average of 23 minutes to enter optimal creative state. What we call the flow or to reenter it after distraction like your dog on your office store. So staying in flow is so critical to developer productivity and as a developer, it just feels good to be cranking away at something with deep focus. I certainly know that I love that feeling intuitive collaboration and automation features we built in to get hub help developer, Sam flow, allowing you and your team to do so much more, to bring the benefits of automation into perspective in our annual October's report by Dr. Nicole, Forsgren. One of my buddies here at get hub, took a look at the developer productivity in the stork year. You know what we found? >>We found that public GitHub repositories that use the Automational pull requests, merge those pull requests. 1.2 times faster. And the number of pooled merged pull requests increased by 1.3 times, that is 34% more poor requests merged. And other words, automation can con can dramatically increase, but the speed and quantity of work completed in any role, just like an open source development, you'll work more efficiently with greater impact when you invest the bulk of your time in the work that adds the most value and eliminate or outsource the rest because you don't need to do it, make the machines by elaborate by leveraging automation in their workflows teams, minimize manual work and reclaim that time for innovation and maintain that state of flow with development and collaboration. More importantly, their work is more enjoyable because they're not wasting the time doing the things that the machines or robots can do for them. >>And I remember what I said at the beginning. Many of us want to be efficient, heck even lazy. So why would I spend my time doing something I can automate? Now you can read more about this research behind the art behind this at October set, get hub.com, which also includes a lot of other cool info about the open source ecosystem and how it's evolving. Speaking of the open source ecosystem we at get hub are so honored to be the home of more than 65 million developers who build software together for everywhere across the globe. Today, we're seeing software development taking shape as the world's largest team sport, where development teams collaborate, build and ship products. It's no longer a solo effort like it was for me. You don't have to take my word for it. Check out this globe. This globe shows real data. Every speck of light you see here represents a contribution to an open source project, somewhere on earth. >>These arts reach across continents, cultures, and other divides. It's distributed collaboration at its finest. 20 years ago, we had no concept of dev ops, SecOps and lots, or the new ops that are going to be happening. But today's development and ops teams are connected like ever before. This is only going to continue to evolve at a rapid pace, especially as we continue to empower the next hundred million developers, automation helps us focus on what's important and to greatly accelerate innovation. Just this past year, we saw some of the most groundbreaking technological advancements and achievements I'll say ever, including critical COVID-19 vaccine trials, as well as the first power flight on Mars. This past month, these breakthroughs were only possible because of the interconnected collaborative open source communities on get hub and the amazing tools and workflows that empower us all to create and innovate. Let's continue building, integrating, and automating. So we collectively can give developers the experience. They deserve all of the automation and beautiful eye UIs that we can muster so they can continue to build the things that truly do change the world. Thank you again for having me today, Dr. Khan, it has been a pleasure to be here with all you nerds. >>Hello. I'm Justin. Komack lovely to see you here. Talking to developers, their world is getting much more complex. Developers are being asked to do everything security ops on goal data analysis, all being put on the rockers. Software's eating the world. Of course, and this all make sense in that view, but they need help. One team. I told you it's shifted all our.net apps to run on Linux from windows, but their developers found the complexity of Docker files based on the Linux shell scripts really difficult has helped make these things easier for your teams. Your ones collaborate more in a virtual world, but you've asked us to make this simpler and more lightweight. You, the developers have asked for a paved road experience. You want things to just work with a simple options to be there, but it's not just the paved road. You also want to be able to go off-road and do interesting and different things. >>Use different components, experiments, innovate as well. We'll always offer you both those choices at different times. Different developers want different things. It may shift for ones the other paved road or off road. Sometimes you want reliability, dependability in the zone for day to day work, but sometimes you have to do something new, incorporate new things in your pipeline, build applications for new places. Then you knew those off-road abilities too. So you can really get under the hood and go and build something weird and wonderful and amazing. That gives you new options. Talk as an independent choice. We don't own the roads. We're not pushing you into any technology choices because we own them. We're really supporting and driving open standards, such as ISEI working opensource with the CNCF. We want to help you get your applications from your laptops, the clouds, and beyond, even into space. >>Let's talk about the key focus areas, that frame, what DACA is doing going forward. These are simplicity, sharing, flexibility, trusted content and care supply chain compared to building where the underlying kernel primitives like namespaces and Seagraves the original Docker CLI was just amazing Docker engine. It's a magical experience for everyone. It really brought those innovations and put them in a world where anyone would use that, but that's not enough. We need to continue to innovate. And it was trying to get more done faster all the time. And there's a lot more we can do. We're here to take complexity away from deeply complicated underlying things and give developers tools that are just amazing and magical. One of the area we haven't done enough and make things magical enough that we're really planning around now is that, you know, Docker images, uh, they're the key parts of your application, but you know, how do I do something with an image? How do I, where do I attach volumes with this image? What's the API. Whereas the SDK for this image, how do I find an example or docs in an API driven world? Every bit of software should have an API and an API description. And our vision is that every container should have this API description and the ability for you to understand how to use it. And it's all a seamless thing from, you know, from your code to the cloud local and remote, you can, you can use containers in this amazing and exciting way. >>One thing I really noticed in the last year is that companies that started off remote fast have constant collaboration. They have zoom calls, apron all day terminals, shattering that always working together. Other teams are really trying to learn how to do this style because they didn't start like that. We used to walk around to other people's desks or share services on the local office network. And it's very difficult to do that anymore. You want sharing to be really simple, lightweight, and informal. Let me try your container or just maybe let's collaborate on this together. Um, you know, fast collaboration on the analysts, fast iteration, fast working together, and he wants to share more. You want to share how to develop environments, not just an image. And we all work by seeing something someone else in our team is doing saying, how can I do that too? I can, I want to make that sharing really, really easy. Ben's going to talk about this more in the interest of one minute. >>We know how you're excited by apple. Silicon and gravis are not excited because there's a new architecture, but excited because it's faster, cooler, cheaper, better, and offers new possibilities. The M one support was the most asked for thing on our public roadmap, EFA, and we listened and share that we see really exciting possibilities, usership arm applications, all the way from desktop to production. We know that you all use different clouds and different bases have deployed to, um, you know, we work with AWS and Azure and Google and more, um, and we want to help you ship on prime as well. And we know that you use huge number of languages and the containers help build applications that use different languages for different parts of the application or for different applications, right? You can choose the best tool. You have JavaScript hat or everywhere go. And re-ask Python for data and ML, perhaps getting excited about WebAssembly after hearing about a cube con, you know, there's all sorts of things. >>So we need to make that as easier. We've been running the whole month of Python on the blog, and we're doing a month of JavaScript because we had one specific support about how do I best put this language into production of that language into production. That detail is important for you. GPS have been difficult to use. We've added GPS suppose in desktop for windows, but we know there's a lot more to do to make the, how multi architecture, multi hardware, multi accelerator world work better and also securely. Um, so there's a lot more work to do to support you in all these things you want to do. >>How do we start building a tenor has applications, but it turns out we're using existing images as components. I couldn't assist survey earlier this year, almost half of container image usage was public images rather than private images. And this is growing rapidly. Almost all software has open source components and maybe 85% of the average application is open source code. And what you're doing is taking whole container images as modules in your application. And this was always the model with Docker compose. And it's a model that you're already et cetera, writing you trust Docker, official images. We know that they might go to 25% of poles on Docker hub and Docker hub provides you the widest choice and the best support that trusted content. We're talking to people about how to make this more helpful. We know, for example, that winter 69 four is just showing us as support, but the image doesn't yet tell you that we're working with canonical to improve messaging from specific images about left lifecycle and support. >>We know that you need more images, regularly updated free of vulnerabilities, easy to use and discover, and Donnie and Marie neuro, going to talk about that more this last year, the solar winds attack has been in the, in the news. A lot, the software you're using and trusting could be compromised and might be all over your organization. We need to reduce the risk of using vital open-source components. We're seeing more software supply chain attacks being targeted as the supply chain, because it's often an easier place to attack and production software. We need to be able to use this external code safely. We need to, everyone needs to start from trusted sources like photography images. They need to scan for known vulnerabilities using Docker scan that we built in partnership with sneak and lost DockerCon last year, we need just keep updating base images and dependencies, and we'll, we're going to help you have the control and understanding about your images that you need to do this. >>And there's more, we're also working on the nursery V2 project in the CNCF to revamp container signings, or you can tell way or software comes from we're working on tooling to make updates easier, and to help you understand and manage all the principals carrier you're using security is a growing concern for all of us. It's really important. And we're going to help you work with security. We can't achieve all our dreams, whether that's space travel or amazing developer products ever see without deep partnerships with our community to cloud is RA and the cloud providers aware most of you ship your occasion production and simple routes that take your work and deploy it easily. Reliably and securely are really important. Just get into production simply and easily and securely. And we've done a bunch of work on that. And, um, but we know there's more to do. >>The CNCF on the open source cloud native community are an amazing ecosystem of creators and lovely people creating an amazing strong community and supporting a huge amount of innovation has its roots in the container ecosystem and his dreams beyond that much of the innovation is focused around operate experience so far, but developer experience is really a growing concern in that community as well. And we're really excited to work on that. We also uses appraiser tool. Then we know you do, and we know that you want it to be easier to use in your environment. We just shifted Docker hub to work on, um, Kubernetes fully. And, um, we're also using many of the other projects are Argo from atheists. We're spending a lot of time working with Microsoft, Amazon right now on getting natural UV to ready to ship in the next few. That's a really detailed piece of collaboration we've been working on for a long term. Long time is really important for our community as the scarcity of the container containers and, um, getting content for you, working together makes us stronger. Our community is made up of all of you have. Um, it's always amazing to be reminded of that as a huge open source community that we already proud to work with. It's an amazing amount of innovation that you're all creating and where perhaps it, what with you and share with you as well. Thank you very much. And thank you for being here. >>Really excited to talk to you today and share more about what Docker is doing to help make you faster, make your team faster and turn your application delivery into something that makes you a 10 X team. What we're hearing from you, the developers using Docker everyday fits across three common themes that we hear consistently over and over. We hear that your time is super important. It's critical, and you want to move faster. You want your tools to get out of your way, and instead to enable you to accelerate and focus on the things you want to be doing. And part of that is that finding great content, great application components that you can incorporate into your apps to move faster is really hard. It's hard to discover. It's hard to find high quality content that you can trust that, you know, passes your test and your configuration needs. >>And it's hard to create good content as well. And you're looking for more safety, more guardrails to help guide you along that way so that you can focus on creating value for your company. Secondly, you're telling us that it's a really far to collaborate effectively with your team and you want to do more, to work more effectively together to help your tools become more and more seamless to help you stay in sync, both with yourself across all of your development environments, as well as with your teammates so that you can more effectively collaborate together. Review each other's work, maintain things and keep them in sync. And finally, you want your applications to run consistently in every single environment, whether that's your local development environment, a cloud-based development environment, your CGI pipeline, or the cloud for production, and you want that micro service to provide that consistent experience everywhere you go so that you have similar tools, similar environments, and you don't need to worry about things getting in your way, but instead things make it easy for you to focus on what you wanna do and what Docker is doing to help solve all of these problems for you and your colleagues is creating a collaborative app dev platform. >>And this collaborative application development platform consists of multiple different pieces. I'm not going to walk through all of them today, but the overall view is that we're providing all the tooling you need from the development environment, to the container images, to the collaboration services, to the pipelines and integrations that enable you to focus on making your applications amazing and changing the world. If we start zooming on a one of those aspects, collaboration we hear from developers regularly is that they're challenged in synchronizing their own setups across environments. They want to be able to duplicate the setup of their teammates. Look, then they can easily get up and running with the same applications, the same tooling, the same version of the same libraries, the same frameworks. And they want to know if their applications are good before they're ready to share them in an official space. >>They want to collaborate on things before they're done, rather than feeling like they have to officially published something before they can effectively share it with others to work on it, to solve this. We're thrilled today to announce Docker, dev environments, Docker, dev environments, transform how your team collaborates. They make creating, sharing standardized development environments. As simple as a Docker poll, they make it easy to review your colleagues work without affecting your own work. And they increase the reproducibility of your own work and decreased production issues in doing so because you've got consistent environments all the way through. Now, I'm going to pass it off to our principal product manager, Ben Gotch to walk you through more detail on Docker dev environments. >>Hi, I'm Ben. I work as a principal program manager at DACA. One of the areas that doc has been looking at to see what's hard today for developers is sharing changes that you make from the inner loop where the inner loop is a better development, where you write code, test it, build it, run it, and ultimately get feedback on those changes before you merge them and try and actually ship them out to production. Most amount of us build this flow and get there still leaves a lot of challenges. People need to jump between branches to look at each other's work. Independence. Dependencies can be different when you're doing that and doing this in this new hybrid wall of work. Isn't any easier either the ability to just save someone, Hey, come and check this out. It's become much harder. People can't come and sit down at your desk or take your laptop away for 10 minutes to just grab and look at what you're doing. >>A lot of the reason that development is hard when you're remote, is that looking at changes and what's going on requires more than just code requires all the dependencies and everything you've got set up and that complete context of your development environment, to understand what you're doing and solving this in a remote first world is hard. We wanted to look at how we could make this better. Let's do that in a way that let you keep working the way you do today. Didn't want you to have to use a browser. We didn't want you to have to use a new idea. And we wanted to do this in a way that was application centric. We wanted to let you work with all the rest of the application already using C for all the services and all those dependencies you need as part of that. And with that, we're excited to talk more about docket developer environments, dev environments are new part of the Docker experience that makes it easier you to get started with your whole inner leap, working inside a container, then able to share and collaborate more than just the code. >>We want it to enable you to share your whole modern development environment, your whole setup from DACA, with your team on any operating system, we'll be launching a limited beta of dev environments in the coming month. And a GA dev environments will be ID agnostic and supporting composts. This means you'll be able to use an extend your existing composed files to create your own development environment in whatever idea, working in dev environments designed to be local. First, they work with Docker desktop and say your existing ID, and let you share that whole inner loop, that whole development context, all of your teammates in just one collect. This means if you want to get feedback on the working progress change or the PR it's as simple as opening another idea instance, and looking at what your team is working on because we're using compose. You can just extend your existing oppose file when you're already working with, to actually create this whole application and have it all working in the context of the rest of the services. >>So it's actually the whole environment you're working with module one service that doesn't really understand what it's doing alone. And with that, let's jump into a quick demo. So you can see here, two dev environments up and running. First one here is the same container dev environment. So if I want to go into that, let's see what's going on in the various code button here. If that one open, I can get straight into my application to start making changes inside that dev container. And I've got all my dependencies in here, so I can just run that straight in that second application I have here is one that's opened up in compose, and I can see that I've also got my backend, my front end and my database. So I've got all my services running here. So if I want, I can open one or more of these in a dev environment, meaning that that container has the context that dev environment has the context of the whole application. >>So I can get back into and connect to all the other services that I need to test this application properly, all of them, one unit. And then when I've made my changes and I'm ready to share, I can hit my share button type in the refund them on to share that too. And then give that image to someone to get going, pick that up and just start working with that code and all my dependencies, simple as putting an image, looking ahead, we're going to be expanding development environments, more of your dependencies for the whole developer worst space. We want to look at backing up and letting you share your volumes to make data science and database setups more repeatable and going. I'm still all of this under a single workspace for your team containing images, your dev environments, your volumes, and more we've really want to allow you to create a fully portable Linux development environment. >>So everyone you're working with on any operating system, as I said, our MVP we're coming next month. And that was for vs code using their dev container primitive and more support for other ideas. We'll follow to find out more about what's happening and what's coming up next in the future of this. And to actually get a bit of a deeper dive in the experience. Can we check out the talk I'm doing with Georgie and girl later on today? Thank you, Ben, amazing story about how Docker is helping to make developer teams more collaborative. Now I'd like to talk more about applications while the dev environment is like the workbench around what you're building. The application itself has all the different components, libraries, and frameworks, and other code that make up the application itself. And we hear developers saying all the time things like, how do they know if their images are good? >>How do they know if they're secure? How do they know if they're minimal? How do they make great images and great Docker files and how do they keep their images secure? And up-to-date on every one of those ties into how do I create more trust? How do I know that I'm building high quality applications to enable you to do this even more effectively than today? We are pleased to announce the DACA verified polisher program. This broadens trusted content by extending beyond Docker official images, to give you more and more trusted building blocks that you can incorporate into your applications. It gives you confidence that you're getting what you expect because Docker verifies every single one of these publishers to make sure they are who they say they are. This improves our secure supply chain story. And finally it simplifies your discovery of the best building blocks by making it easy for you to find things that you know, you can trust so that you can incorporate them into your applications and move on and on the right. You can see some examples of the publishers that are involved in Docker, official images and our Docker verified publisher program. Now I'm pleased to introduce you to marina. Kubicki our senior product manager who will walk you through more about what we're doing to create a better experience for you around trust. >>Thank you, Dani, >>Mario Andretti, who is a famous Italian sports car driver. One said that if everything feels under control, you're just not driving. You're not driving fast enough. Maya Andretti is not a software developer and a software developers. We know that no matter how fast we need to go in order to drive the innovation that we're working on, we can never allow our applications to spin out of control and a Docker. As we continue talking to our, to the developers, what we're realizing is that in order to reach that speed, the developers are the, the, the development community is looking for the building blocks and the tools that will, they will enable them to drive at the speed that they need to go and have the trust in those building blocks. And in those tools that they will be able to maintain control over their applications. So as we think about some of the things that we can do to, to address those concerns, uh, we're realizing that we can pursue them in a number of different venues, including creating reliable content, including creating partnerships that expands the options for the reliable content. >>Um, in order to, in a we're looking at creating integrations, no link security tools, talk about the reliable content. The first thing that comes to mind are the Docker official images, which is a program that we launched several years ago. And this is a set of curated, actively maintained, open source images that, uh, include, uh, operating systems and databases and programming languages. And it would become immensely popular for, for, for creating the base layers of, of the images of, of the different images, images, and applications. And would we realizing that, uh, many developers are, instead of creating something from scratch, basically start with one of the official images for their basis, and then build on top of that. And this program has become so popular that it now makes up a quarter of all of the, uh, Docker poles, which essentially ends up being several billion pulse every single month. >>As we look beyond what we can do for the open source. Uh, we're very ability on the open source, uh, spectrum. We are very excited to announce that we're launching the Docker verified publishers program, which is continuing providing the trust around the content, but now working with, uh, some of the industry leaders, uh, in multiple, in multiple verticals across the entire technology technical spec, it costs entire, uh, high tech in order to provide you with more options of the images that you can use for building your applications. And it still comes back to trust that when you are searching for content in Docker hub, and you see the verified publisher badge, you know, that this is, this is the content that, that is part of the, that comes from one of our partners. And you're not running the risk of pulling the malicious image from an employee master source. >>As we look beyond what we can do for, for providing the reliable content, we're also looking at some of the tools and the infrastructure that we can do, uh, to create a security around the content that you're creating. So last year at the last ad, the last year's DockerCon, we announced partnership with sneak. And later on last year, we launched our DACA, desktop and Docker hub vulnerability scans that allow you the options of writing scans in them along multiple points in your dev cycle. And in addition to providing you with information on the vulnerability on, on the vulnerabilities, in, in your code, uh, it also provides you with a guidance on how to re remediate those vulnerabilities. But as we look beyond the vulnerability scans, we're also looking at some of the other things that we can do, you know, to, to, to, uh, further ensure that the integrity and the security around your images, your images, and with that, uh, later on this year, we're looking to, uh, launch the scope, personal access tokens, and instead of talking about them, I will simply show you what they look like. >>So if you can see here, this is my page in Docker hub, where I've created a four, uh, tokens, uh, read-write delete, read, write, read only in public read in public creeper read only. So, uh, earlier today I went in and I, I logged in, uh, with my read only token. And when you see, when I'm going to pull an image, it's going to allow me to pull an image, not a problem success. And then when I do the next step, I'm going to ask to push an image into the same repo. Uh, would you see is that it's going to give me an error message saying that they access is denied, uh, because there is an additional authentication required. So these are the things that we're looking to add to our roadmap. As we continue thinking about the things that we can do to provide, um, to provide additional building blocks, content, building blocks, uh, and, and, and tools to build the trust so that our DACA developer and skinned code faster than Mario Andretti could ever imagine. Uh, thank you to >>Thank you, marina. It's amazing what you can do to improve the trusted content so that you can accelerate your development more and move more quickly, move more collaboratively and build upon the great work of others. Finally, we hear over and over as that developers are working on their applications that they're looking for, environments that are consistent, that are the same as production, and that they want their applications to really run anywhere, any environment, any architecture, any cloud one great example is the recent announcement of apple Silicon. We heard from developers on uproar that they needed Docker to be available for that architecture before they could add those to it and be successful. And we listened. And based on that, we are pleased to share with you Docker, desktop on apple Silicon. This enables you to run your apps consistently anywhere, whether that's developing on your team's latest dev hardware, deploying an ARM-based cloud environments and having a consistent architecture across your development and production or using multi-year architecture support, which enables your whole team to collaborate on its application, using private repositories on Docker hub, and thrilled to introduce you to Hughie cower, senior director for product management, who will walk you through more of what we're doing to create a great developer experience. >>Senior director of product management at Docker. And I'd like to jump straight into a demo. This is the Mac mini with the apple Silicon processor. And I want to show you how you can now do an end-to-end arm workflow from my M one Mac mini to raspberry PI. As you can see, we have vs code and Docker desktop installed on a, my, the Mac mini. I have a small example here, and I have a raspberry PI three with an led strip, and I want to turn those LEDs into a moving rainbow. This Dockerfile here, builds the application. We build the image with the Docker, build X command to make the image compatible for all raspberry pies with the arm. 64. Part of this build is built with the native power of the M one chip. I also add the push option to easily share the image with my team so they can give it a try to now Dr. >>Creates the local image with the application and uploads it to Docker hub after we've built and pushed the image. We can go to Docker hub and see the new image on Docker hub. You can also explore a variety of images that are compatible with arm processors. Now let's go to the raspberry PI. I have Docker already installed and it's running Ubuntu 64 bit with the Docker run command. I can run the application and let's see what will happen from there. You can see Docker is downloading the image automatically from Docker hub and when it's running, if it's works right, there are some nice colors. And with that, if we have an end-to-end workflow for arm, where continuing to invest into providing you a great developer experience, that's easy to install. Easy to get started with. As you saw in the demo, if you're interested in the new Mac, mini are interested in developing for our platforms in general, we've got you covered with the same experience you've come to expect from Docker with over 95,000 arm images on hub, including many Docker official images. >>We think you'll find what you're looking for. Thank you again to the community that helped us to test the tech previews. We're so delighted to hear when folks say that the new Docker desktop for apple Silicon, it just works for them, but that's not all we've been working on. As Dani mentioned, consistency of developer experience across environments is so important. We're introducing composed V2 that makes compose a first-class citizen in the Docker CLI you no longer need to install a separate composed biter in order to use composed, deploying to production is simpler than ever with the new compose integration that enables you to deploy directly to Amazon ECS or Azure ACI with the same methods you use to run your application locally. If you're interested in running slightly different services, when you're debugging versus testing or, um, just general development, you can manage that all in one place with the new composed service to hear more about what's new and Docker desktop, please join me in the three 15 breakout session this afternoon. >>And now I'd love to tell you a bit more about bill decks and convince you to try it. If you haven't already it's our next gen build command, and it's no longer experimental as shown in the demo with built X, you'll be able to do multi architecture builds, share those builds with your team and the community on Docker hub. With build X, you can speed up your build processes with remote caches or build all the targets in your composed file in parallel with build X bake. And there's so much more if you're using Docker, desktop or Docker, CE you can use build X checkout tonus is talk this afternoon at three 45 to learn more about build X. And with that, I hope everyone has a great Dr. Khan and back over to you, Donnie. >>Thank you UA. It's amazing to hear about what we're doing to create a better developer experience and make sure that Docker works everywhere you need to work. Finally, I'd like to wrap up by showing you everything that we've announced today and everything that we've done recently to make your lives better and give you more and more for the single price of your Docker subscription. We've announced the Docker verified publisher program we've announced scoped personal access tokens to make it easier for you to have a secure CCI pipeline. We've announced Docker dev environments to improve your collaboration with your team. Uh, we shared with you Docker, desktop and apple Silicon, to make sure that, you know, Docker runs everywhere. You need it to run. And we've announced Docker compose version two, finally making it a first-class citizen amongst all the other great Docker tools. And we've done so much more recently as well from audit logs to advanced image management, to compose service profiles, to improve where you can run Docker more easily. >>Finally, as we look forward, where we're headed in the upcoming year is continuing to invest in these themes of helping you build, share, and run modern apps more effectively. We're going to be doing more to help you create a secure supply chain with which only grows more and more important as time goes on. We're going to be optimizing your update experience to make sure that you can easily understand the current state of your application, all its components and keep them all current without worrying about breaking everything as you're doing. So we're going to make it easier for you to synchronize your work. Using cloud sync features. We're going to improve collaboration through dev environments and beyond, and we're going to do make it easy for you to run your microservice in your environments without worrying about things like architecture or differences between those environments. Thank you so much. I'm thrilled about what we're able to do to help make your lives better. And now you're going to be hearing from one of our customers about what they're doing to launch their business with Docker >>I'm Matt Falk, I'm the head of engineering and orbital insight. And today I want to talk to you a little bit about data from space. So who am I like many of you, I'm a software developer and a software developer about seven companies so far, and now I'm a head of engineering. So I spend most of my time doing meetings, but occasionally I'll still spend time doing design discussions, doing code reviews. And in my free time, I still like to dabble on things like project oiler. So who's Oberlin site. What do we do? Portal insight is a large data supplier and analytics provider where we take data geospatial data anywhere on the planet, any overhead sensor, and translate that into insights for the end customer. So specifically we have a suite of high performance, artificial intelligence and machine learning analytics that run on this geospatial data. >>And we build them to specifically determine natural and human service level activity anywhere on the planet. What that really means is we take any type of data associated with a latitude and longitude and we identify patterns so that we can, so we can detect anomalies. And that's everything that we do is all about identifying those patterns to detect anomalies. So more specifically, what type of problems do we solve? So supply chain intelligence, this is one of the use cases that we we'd like to talk about a lot. It's one of our main primary verticals that we go after right now. And as Scott mentioned earlier, this had a huge impact last year when COVID hit. So specifically supply chain intelligence is all about identifying movement patterns to and from operating facilities to identify changes in those supply chains. How do we do this? So for us, we can do things where we track the movement of trucks. >>So identifying trucks, moving from one location to another in aggregate, same thing we can do with foot traffic. We can do the same thing for looking at aggregate groups of people moving from one location to another and analyzing their patterns of life. We can look at two different locations to determine how people are moving from one location to another, or going back and forth. All of this is extremely valuable for detecting how a supply chain operates and then identifying the changes to that supply chain. As I said last year with COVID, everything changed in particular supply chains changed incredibly, and it was hugely important for customers to know where their goods or their products are coming from and where they were going, where there were disruptions in their supply chain and how that's affecting their overall supply and demand. So to use our platform, our suite of tools, you can start to gain a much better picture of where your suppliers or your distributors are going from coming from or going to. >>So what's our team look like? So my team is currently about 50 engineers. Um, we're spread into four different teams and the teams are structured like this. So the first team that we have is infrastructure engineering and this team largely deals with deploying our Dockers using Kubernetes. So this team is all about taking Dockers, built by other teams, sometimes building the Dockers themselves and putting them into our production system, our platform engineering team, they produce these microservices. So they produce microservice, Docker images. They develop and test with them locally. Their entire environments are dockerized. They produce these doctors, hand them over to him for infrastructure engineering to be deployed. Similarly, our product engineering team does the same thing. They develop and test with Dr. Locally. They also produce a suite of Docker images that the infrastructure team can then deploy. And lastly, we have our R and D team, and this team specifically produces machine learning algorithms using Nvidia Docker collectively, we've actually built 381 Docker repositories and 14 million. >>We've had 14 million Docker pools over the lifetime of the company, just a few stats about us. Um, but what I'm really getting to here is you can see actually doctors becoming almost a form of communication between these teams. So one of the paradigms in software engineering that you're probably familiar with encapsulation, it's really helpful for a lot of software engineering problems to break the problem down, isolate the different pieces of it and start building interfaces between the code. This allows you to scale different pieces of the platform or different pieces of your code in different ways that allows you to scale up certain pieces and keep others at a smaller level so that you can meet customer demands. And for us, one of the things that we can largely do now is use Dockers as that interface. So instead of having an entire platform where all teams are talking to each other, and everything's kind of, mishmashed in a monolithic application, we can now say this team is only able to talk to this team by passing over a particular Docker image that defines the interface of what needs to be built before it passes to the team and really allows us to scalp our development and be much more efficient. >>Also, I'd like to say we are hiring. Um, so we have a number of open roles. We have about 30 open roles in our engineering team that we're looking to fill by the end of this year. So if any of this sounds really interesting to you, please reach out after the presentation. >>So what does our platform do? Really? Our platform allows you to answer any geospatial question, and we do this at three different inputs. So first off, where do you want to look? So we did this as what we call an AOI or an area of interest larger. You can think of this as a polygon drawn on the map. So we have a curated data set of almost 4 million AOIs, which you can go and you can search and use for your analysis, but you're also free to build your own. Second question is what you want to look for. We do this with the more interesting part of our platform of our machine learning and AI capabilities. So we have a suite of algorithms that automatically allow you to identify trucks, buildings, hundreds of different types of aircraft, different types of land use, how many people are moving from one location to another different locations that people in a particular area are moving to or coming from all of these different analyses or all these different analytics are available at the click of a button, and then determine what you want to look for. >>Lastly, you determine when you want to find what you're looking for. So that's just, uh, you know, do you want to look for the next three hours? Do you want to look for the last week? Do you want to look every month for the past two, whatever the time cadence is, you decide that you hit go and out pops a time series, and that time series tells you specifically where you want it to look what you want it to look for and how many, or what percentage of the thing you're looking for appears in that area. Again, we do all of this to work towards patterns. So we use all this data to produce a time series from there. We can look at it, determine the patterns, and then specifically identify the anomalies. As I mentioned with supply chain, this is extremely valuable to identify where things change. So we can answer these questions, looking at a particular operating facility, looking at particular, what is happening with the level of activity is at that operating facility where people are coming from, where they're going to, after visiting that particular facility and identify when and where that changes here, you can just see it's a picture of our platform. It's actually showing all the devices in Manhattan, um, over a period of time. And it's more of a heat map view. So you can actually see the hotspots in the area. >>So really the, and this is the heart of the talk, but what happened in 2020? So for men, you know, like many of you, 2020 was a difficult year COVID hit. And that changed a lot of what we're doing, not from an engineering perspective, but also from an entire company perspective for us, the motivation really became to make sure that we were lowering our costs and increasing innovation simultaneously. Now those two things often compete with each other. A lot of times you want to increase innovation, that's going to increase your costs, but the challenge last year was how to do both simultaneously. So here's a few stats for you from our team. In Q1 of last year, we were spending almost $600,000 per month on compute costs prior to COVID happening. That wasn't hugely a concern for us. It was a lot of money, but it wasn't as critical as it was last year when we really needed to be much more efficient. >>Second one is flexibility for us. We were deployed on a single cloud environment while we were cloud thought ready, and that was great. We want it to be more flexible. We want it to be on more cloud environments so that we could reach more customers. And also eventually get onto class side networks, extending the base of our customers as well from a custom analytics perspective. This is where we get into our traction. So last year, over the entire year, we computed 54,000 custom analytics for different users. We wanted to make sure that this number was steadily increasing despite us trying to lower our costs. So we didn't want the lowering cost to come as the sacrifice of our user base. Lastly, of particular percentage here that I'll say definitely needs to be improved is 75% of our projects never fail. So this is where we start to get into a bit of stability of our platform. >>Now I'm not saying that 25% of our projects fail the way we measure this is if you have a particular project or computation that runs every day and any one of those runs sale account, that is a failure because from an end-user perspective, that's an issue. So this is something that we know we needed to improve on and we needed to grow and make our platform more stable. I'm going to something that we really focused on last year. So where are we now? So now coming out of the COVID valley, we are starting to soar again. Um, we had, uh, back in April of last year, we had the entire engineering team. We actually paused all development for about four weeks. You had everyone focused on reducing our compute costs in the cloud. We got it down to 200 K over the period of a few months. >>And for the next 12 months, we hit that number every month. This is huge for us. This is extremely important. Like I said, in the COVID time period where costs and operating efficiency was everything. So for us to do that, that was a huge accomplishment last year and something we'll keep going forward. One thing I would actually like to really highlight here, two is what allowed us to do that. So first off, being in the cloud, being able to migrate things like that, that was one thing. And we were able to use there's different cloud services in a more particular, in a more efficient way. We had a very detailed tracking of how we were spending things. We increased our data retention policies. We optimized our processing. However, one additional piece was switching to new technologies on, in particular, we migrated to get lab CICB. >>Um, and this is something that the costs we use Docker was extremely, extremely easy. We didn't have to go build new new code containers or repositories or change our code in order to do this. We were simply able to migrate the containers over and start using a new CIC so much. In fact, that we were able to do that migration with three engineers in just two weeks from a cloud environment and flexibility standpoint, we're now operating in two different clouds. We were able to last night, I've over the last nine months to operate in the second cloud environment. And again, this is something that Docker helped with incredibly. Um, we didn't have to go and build all new interfaces to all new, different services or all different tools in the next cloud provider. All we had to do was build a base cloud infrastructure that ups agnostic the way, all the different details of the cloud provider. >>And then our doctors just worked. We can move them to another environment up and running, and our platform was ready to go from a traction perspective. We're about a third of the way through the year. At this point, we've already exceeded the amount of customer analytics we produce last year. And this is thanks to a ton more albums, that whole suite of new analytics that we've been able to build over the past 12 months and we'll continue to build going forward. So this is really, really great outcome for us because we were able to show that our costs are staying down, but our analytics and our customer traction, honestly, from a stability perspective, we improved from 75% to 86%, not quite yet 99 or three nines or four nines, but we are getting there. Um, and this is actually thanks to really containerizing and modularizing different pieces of our platform so that we could scale up in different areas. This allowed us to increase that stability. This piece of the code works over here, toxin an interface to the rest of the system. We can scale this piece up separately from the rest of the system, and that allows us much more easily identify issues in the system, fix those and then correct the system overall. So basically this is a summary of where we were last year, where we are now and how much more successful we are now because of the issues that we went through last year and largely brought on by COVID. >>But that this is just a screenshot of the, our, our solution actually working on supply chain. So this is in particular, it is showing traceability of a distribution warehouse in salt lake city. It's right in the center of the screen here. You can see the nice kind of orange red center. That's a distribution warehouse and all the lines outside of that, all the dots outside of that are showing where people are, where trucks are moving from that location. So this is really helpful for supply chain companies because they can start to identify where their suppliers are, are coming from or where their distributors are going to. So with that, I want to say, thanks again for following along and enjoy the rest of DockerCon.

>> Announcer: Live from San Fransciso, celebrating 10 years of hi-tech coverage, it's the theCUBE, covering VMworld 2019. Brought to you by VMware and its eco-system partners. >> Welcome back everyone. It's theCUBE's live coverage at VMworld 2019. I'm John Furrier, Dave Vellante, Dave, 10 years doing theCUBE at VMworld, what a transformation, lot of technologies coming back into the center of all the action. SD-WAN's one of them, we got two great guests, two entrepreneurs, the co-founders of VeloCloud. Sanjay Uppal who's the VP and GM of VeloCloud Business Unit part of VMware, VMware bought on December 2017, Steve Woo, Senior Director of VeloCloud Business Unit. Also co-founder, you guys both strong in networking, entrepreneurs, congratulations on. >> Thank you. >> That was two years ago. Okay, so, we were reminiscing about 10 years, 2010, when we first started doing theCUBE to now, but more than ever SD-WAN, just over the past 24 months, 36 months, a lot's changing as cloud has become more obvious. Certainly public cloud, no debate, but we start talking about cloud 2.0. Enterprise requirements are much unique and different that just, you know, being born in the cloud at least like the startups are. So, whole different challenges. This is a kind of difficult, it's a networking challenge. Networking and security are the two biggest, hottest areas right now in tech as clouds scale, the enterprise comes in. What's the vision, Sanjay? >> So what's going on here as you were rightly pointing out, cloud is changing. It's no longer people just want to get from private to public, it's a multi-cloud world and it's a hybrid cloud world. Now, that's talking at it from the compute standpoint. But, other services are also moving to the cloud, security services are moving to the cloud, so when you look at it from that standpoint, our customers want to get from the clients, which could be a user, it could be a thing, it could be a machine, all the way to the container which has the application. So we're looking at SD-WAN as being that fabric that connects from the client to the cloud to the container. And as you're rightly pointing out, networking and security is the hot area right now. So how does security and networking impact this client to cloud to container world is where SD-WAN is headed toady. >> And Pat Gelsinger who just came fresh off the keynote, he'll be on tomorrow, I'm going to ask him this question directly but, we've always been saying public cloud is such a great resource, I mean, who doesn't want all that massive compute, massive storage, if you can use it? But when you start getting into hybrid, right? I said the data center's an edge. And he's talking about a thin edge and a big edge and a thick edge, so when you're a networking packet, when you're in networking you move stuff around, you're an edge and you're a center, you're a core. These are networking concepts, this is not new, I mean, this is not new. >> Yes, this is not new. And I think the concept of the edge, as he was pointing out, there's different edges everywhere and you have to really look at it from, as you're crossing the boundary, how do you get the packets from point A to point B? Making sure that the performances are short, so you get the application layer performance, but yet not increasing your attack surface from a security standpoint. And so, the facilities that Steve and myself and other folks at VeloCloud have constructed is really reducing the attack surface by segmentation. But making sure that the conversation from the client to the cloud to the container has that assured performance, particularly for real time applications. Which are actually not easy to get right because the underlying transport may not actually help in any great way. >> So, John, you said it's not really new for you networking guys, it's really not. At the same time, Pat talked about choice versus complexity so it's a much more complex world. So you've had to change the way in which, you approach from a technology standpoint I presume? The roadmap has probably shifted, maybe you could talk about that a little bit. >> So, absolutely. So the discussion about moving to the cloud has been about the compute, but then you have to also actually look at the network, right? They forecast that 30 to 50% of the enterprise traffic is going to go to the cloud, right? But the network in the past was built for applications going to the on premise data center. So what we've had is inequality where you've had a full enterprise grade network going to the enterprise data center, but actually your cloud access was a second grade citizen. As Sanjay was saying, I still want performance, I still want security, and then in fact, as people actually expand to the cloud but actually put more and more workloads in the cloud, they start to realize, gee, where's my automation? Where's my scaling? So that still has to be done at the branch that the remote sites that need access to the cloud, and they need this automated, secure, high performing access to all the cloud workloads. Especially even that it's now moved to multi-cloud, right? So you went from on premise, a little bit in the hybrid, private cloud, now many more instances and now multi-cloud, becomes more and more complex and that's where cloud delivered SD-WAN really addresses that problem. >> So Steve, lay out the architecture, so let's just all roleplay for a second here. I'm a CCO, CIO, I'm progressive, got my hands in all the top things, certainly security's number one concern I have. And I'm building my own stack, I love the cloud, I don't want to make it a second class citizen, I really want to re-architect this. What the playbook, what do I do, what's your recommendation? >> Alright, so the playbook is, and this is advice from the cloud compute centers as well, right? Go direct to the cloud, don't back haul it through the enterprise data center and introduce latency so you now need Internet Breakout at more locations, not just the central data center. But I still need the security, so how do I have cloud security for traffic going straight to the cloud versus going back to the east west, to the data center? So really, the advantage that the SD-WAN solution has is it's actually a hybrid that has a footprint on premise but also has a cloud footprint. So Sanjay and I and VeloCloud, we have this big network of cloud gateways so you have the footprint on prem and in the cloud to have distributed security. >> So, Sanjay, talk about, back to your original bumper sticker, client, cloud, containers. So, I see that security piece. How important has the container piece become? And what is that role of the container in the future? Is it going to be a wrapper for legacy apps, is it going to be primary for new apps? Because Kubernetes clearly is orchestrating a bunch of containers and other services so the role of the container's certainly super valuable. How does that impact some of the efficiencies that's needed for networking and to ensure security? >> Yeah, great question. You know, the networking folks, and networking was always relegated to being the underlay or the plumbing. Now what's becoming important is that the applications are making their intent aware to the network. And the intent is becoming aware. As the intent becomes aware, we networking people know what to do in the SD-WAN layer, which then shields all the intricacies of what needs to get done in the underlay. So to put it in very simple terms, the container's what really drives the need and what we're doing is we're building the outcome to satisfy that need. Now containers are critical because as Pat was saying, all of the new digital applications are going to be built with containers in mind. So the reason we call it client to cloud to container is because the containers can literally be anywhere. You know, we're talking about them being in the private cloud and then the public cloud, they could be right next to where the client is because of the edge cloud. They could be in the telco network which is the telco cloud. So between these four clouds, you literally have a network of these containers and the underlying infrastructure that we are doing is to provide that SD-WAN layer that'll get the containers to talk to one another as well as to talk to the clients that are getting access to those applications. >> You know, sometimes it takes a history lesson to figure out the future. I was talking with Steve Herrod and I want to get your reaction to a comment he made to me when we were talking about the impact of VMware back in the old days, you know, virtualization. Virtualization kind of came out as an application and then it became what it did in the server world, just changed the game. But one key thing that we talked about and he mentioned was, the key was that virtualization allowed for massive efficiencies. Not just on price and consolidation of service and efficiency on price, but it enabled more efficiencies in performance without any code changes to the application. So the question is, is that, okay, containers I buy 100%, we agree, since Docker and early days to now with the Kubernetes, containers are going to be a game changer. What's that dynamic that's going to come next? Is there a view from your perspective on that step up function of value without a lot of application rewrites or network changes? I mean, I'm just trying to figure out how that fits together what's your view on that? >> Yeah, let me drag this first and then maybe Steve can comment as well, so. The first thing is that SD-WAN, just like server virtualization did, we're doing what server virtualization was for the network. So you don't require any changes to your underlay, meaning that you don't require changes to your broadband, you don't require changes to your LTE and even 5G, as well as the NPLS network so you don't have to twiddle with those bits, we manage it all in the overlay, this is exactly similar to what VMs did when it came to server virtualization. Now, when containers come in, because we get the visibility of what the container wants, we can both in real time, as well as a priori, figure out how the network should be configured. And that is a game changer because a container could be right next to you, it could be in the cloud, far edge, thin edge, it's not just a destination, it's literally everywhere. And that underlying fabric, if the underlying fabric of the network doesn't work, your digital transformation project for containers is not going to work either. You there's a key building block over there. >> So if I get this right, you're saying is that because you have that underlay visibility without any changes, by making efficiencies there, you then can understand what the container wants so you're bringing intelligence to the container and vice versa? >> Yes, so that containers tells us what do they need to run, I mean the application tells us, which is built with containers. And what we do is we dynamically measure how the network is performing, and we adapt to what the container wants. We call this outcome driven. We know what the outcome is and we adapt the networking to deliver that outcome. >> So I want to ask you guys, so Pat talked today about 8% better improvement relative to bare metal, but it's really about the entire system, the entire network. And I'm curious as to how you guys are evolving. You know, John and I talk about cloud 2.0, how you're evolving to support that. Because it's really about application performance in total, what the user sees, not what I can measure in some on prem data center, I'm not saying Pat was doing that, but my guess to deduce the numbers for the keynote they probably did do that. So, how is your infrastructure and architecture evolving to support application performance across the network? >> Right, right. So, to add to what Sanjay was saying in terms of just being aware of the requirements of the containers and optimizing and having visibility but actually, leverage the container and virtual machine technology in the SD-WAN platform itself. So in terms of solving the network problem, it's not just about us virtualizing the network resources and then choosing the best path across the network to the applications, but actually hosting some applications that deserve to be moved out to the edge to help solve the performance problem as well. A good example is IOT, where you just have a lot of data, a lot of real time data that needs real time control response instead of necessarily going over the most efficient path to an existing cloud data center on premise, perhaps do some of the analytics actually in the SD-WAN network edge, and we can do that with containers. >> So what about the real time aspect? Because I think that's a key point, you mentioned that, Sanjay, earlier. Because, I remember, not the date myself, but I remember back in the days when policy was a revolution, oh my God, we can do policy based stuff! And provisional stuff, that was an, oh my God, static network, though, I mean everything was provisioned, buttoned up nicely, you're not dealing with a static network when you're dealing with services. So you're moving up the stack, we're talking containers now, at the application level, assuming you have the fabric down here. There's going to be a lot of stuff being turned on, turned off, things provisioning, unprovisioning, so a lot of dynamic nature going on. So, if I see this right, policy is key and enables some intelligence, it's got to have an impact on the real time so talk about what real time means, some of the challenges, is it just a transactional issue? Is it latency? And is that where the container magic happens? Just unpack that a little bit. >> So there's really four classes of real time applications that we see. Voice, video, VDI and IOT. Now, there's of course, other applications that are built from these building blocks or these types of application, sub-applications. Now, each of these has a latency requirement, but it also has a requirement in terms of dynamism, so as you know, video can change dramatically from one moment to the other, variable portrayed video, right? Voice doesn't change as dramatically but has very stringent requirements in terms of when that packet should show up. So when we look at these, and you put them on a best effort network that only says that they're going to get the packet from point A to point B, these real time applications may not work. So what we have constructed is an overlay that supports realtime applications even on best effort networks. And this is actually a fairly significant shift in the industry, like if you look at running, you know, all of us have done a voice call, on a broadband and you hear these artifacts and rubberbanding and you can't hear the other person, right? But with VeloCloud, we're able to provide guarantees running on best effort networks. And I think that is a game changer. That is going to be a game changer also as the applications get much more dynamic. I mean, you bring in containers, one of the issues is where should that application run? That can be decided in real time. VMware invented this whole vMotion idea, well how about vMotioning the container? And how are you going to vMotion it and how are you going to decide where that container should be? So all of this is really what a networking infrastructure can provide for you in real time. >> And you've got this overlay, and without performance degradation or dramatic performance degradation, right? So what's the secret sauce behind that? >> So, the secret sauce in our solution is something we call dynamic multi-path optimization. So just like virtualization was done for the data center, first continuously monitor the resource's performance, capacity of the different underlay resources and then in real time, recognizing the business priority of the different applications, instantly put the workload, or in this case, the network WAN traffic on the right resource and actually have the flexibility to move it as conditions change, as capacity changes. And further than that, if you can't stare around the problems that we may see in the network, we can actually remediate the actual traffic streams and since we're on both ends we can have a lot of optimization tricks and actually make sure that real time data applications work perfectly. >> So it's a data analysis and a math problem to solve? >> Yeah, so we use that for real time optimization, and then the other benefit is we have this huge, in the cloud, of course, huge data lake of information that we continue to share more and more with the users so they can see the overlay, so that the entire underlay environment of the WAN, where it's going in the different hybrid cloud, and also the overlay performance. There's going to be huge value in that in terms of solving network problems. >> Are the telcos a bottleneck to the future or is 5G going to solve all that, or? >> Telcos are a partner, and more than 50% of our business is done with the telco. So it's us working with the telco and then going eventually to the enterprise. >> And they're moving at the speed that you want em to move? They're saddled with pressures on costs and network function virtualization, and it's a complicated problem. >> Right, as you heard Pat say in the morning, the telcos are going through a dramatic change. Because they're shifting away from this custom proprietary hardware infrastructure into a completely software driven world, right? And so the telco is a critical partner. They are virtualizing their own network, they are virtualizing the core of the network using VMware and other technologies, and as they're doing that, they're virtualizing what goes out to the enterprise customer. And the network virtualization piece, of course, is built on SD-WAN. One thing I wanted to add to what Steve said, is that we collect almost 10 billion flow records a day. From across all of our 150,000 sites, and this is a treasure trove of information. It is this information that allows us to develop the next generation algorithms. We're the only ones who have that much information that is collected, it's rich information, it's about how the network performs, how the applications are, where it is going, how the application workloads are. And using this we generate the next generation algorithms that'll optimize the networks and make them more secure. >> And that is the benefit of SaaS, the beautiful thing about having a SaaS platform, easy to stand up, the data becomes a really critical aspect for making the network smarter, to your point, this is all those data points. It's an operating, sounds like an operating system to me. >> It's a highly distributed network operating system. >> Guys, thanks for coming on, great insight. Final question to end the segment, as two co-founders and entrepreneurs, when you started VeloCloud, knowing what's going on today, explain in your entrepreneurial mind, where this is going, because this isn't your, as they say, grandfather's SD-WAN market anymore. It's really turning into, quite frankly, next generation networking, next generation software, you mentioned it's network operating system, it's one big distributed network. And all these new things are happening, what's the vision? Is this what you thought it would be when you guys started? >> Well, you know, the amazing this is many startups usually go through a pivot, right? They start off as one thing and maybe more than one pivot, in fact, I think it was a couple of years ago that we just for grins, looked at the first few slides that Steve has made when we had got started. For our seed investor, where we actually had absolutely nothing! And it was, actually is very true, the graphics were very very poor, other than that the idea of moving to the cloud and using the cloud as the network, even at that time we said the cloud is the network. That has not changed. And so, the enduring vision here is that regardless of where you are, you're on laptops right now, clients could be sensors, actuators, all of this is going to go through a network cloud. And that network cloud is going to be responsible for getting you to any final destination. Whether it's your nearby container or whether it's running in some public cloud. And so the vision is trust the network, it's going to make sure that it'll figure out whether you should be on Wi-Fi or Bluetooth or LTE or 5G or whatever have you. You just say this application's important to me. The network is going to take care of the rest of it. >> Well you guys are certainly music to our ears, we love network effects, we think network effects is not just the way media is today but also technology, the network is all interconnected it's all instrumented, you can get the data. There's no blindspots, if you can instrument it, you can automate it. You guys are pioneers, thanks for coming on theCUBE, appreciate it. >> Good to have ya. >> Thank you. >> CUBE coverage here, 10 years covering VWworld, I'm John Furrier, Dave Vellante. Back with more live coverage after this short break. (electronic music)

>> PA Announcer: Off the plastic tab, and we'll turn on the colors. Welcome to New Orleans. ♪ This is it ♪ ♪ The part when I say I don't want ya ♪ ♪ I'm stronger than I've been before ♪ ♪ This is the part when I set your free ♪ (New Orleans jazz music) ("When the Saints Go Marching In") (rock music) >> PA Announcer: Ladies and gentleman, would you please welcome state of Louisiana chief design officer Matthew Vince and Choice Hotels director of infrastructure services Stacy Nigh. (rock music) >> Well good morning New Orleans, and welcome to my home state. My name is Matt Vince. I'm the chief design office for state of Louisiana. And it's my pleasure to welcome you all to .Next 2018. State of Louisiana is currently re-architecting our cloud infrastructure and Nutanix is the first domino to fall in our strategy to deliver better services to our citizens. >> And I'd like to second that warm welcome. I'm Stacy Nigh director of infrastructure services for Choice Hotels International. Now you may think you know Choice, but we don't own hotels. We're a technology company. And Nutanix is helping us innovate the way we operate to support our franchisees. This is my first visit to New Orleans and my first .Next. >> Well Stacy, you're in for a treat. New Orleans is known for its fabulous food and its marvelous music, but most importantly the free spirit. >> Well I can't wait, and speaking of free, it's my pleasure to introduce the Nutanix Freedom video, enjoy. ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ Ah, ah, ♪ ♪ Ah, ah, ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I'm free, I'm free, I'm free, I'm free ♪ ♪ Gritting your teeth, you hold onto me ♪ ♪ It's never enough, I'm never complete ♪ ♪ Tell me to prove, expect me to lose ♪ ♪ I push it away, I'm trying to move ♪ ♪ I'm desperate to run, I'm desperate to leave ♪ ♪ If I lose it all, at least I'll be free ♪ ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> PA Announcer: Ladies and gentlemen, please welcome chief marketing officer Ben Gibson ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> Welcome, good morning. >> Audience: Good morning. >> And welcome to .Next 2018. There's no better way to open up a .Next conference than by hearing from two of our great customers. And Matthew, thank you for welcoming us to this beautiful, your beautiful state and city. And Stacy, this is your first .Next, and I know she's not alone because guess what It's my first .Next too. And I come properly attired. In the front row, you can see my Nutanix socks, and I think my Nutanix blue suit. And I know I'm not alone. I think over 5,000 people in attendance here today are also first timers at .Next. And if you are here for the first time, it's in the morning, let's get moving. I want you to stand up, so we can officially welcome you into the fold. Everyone stand up, first time. All right, welcome. (audience clapping) So you are all joining not just a conference here. This is truly a community. This is a community of the best and brightest in our industry I will humbly say that are coming together to share best ideas, to learn what's happening next, and in particular it's about forwarding not only your projects and your priorities but your careers. There's so much change happening in this industry. It's an opportunity to learn what's coming down the road and learn how you can best position yourself for this whole new world that's happening around cloud computing and modernizing data center environments. And this is not just a community, this is a movement. And it's a movement that started quite awhile ago, but the first .Next conference was in the quiet little town of Miami, and there was about 800 of you in attendance or so. So who in this hall here were at that first .Next conference in Miami? Let me hear from you. (audience members cheering) Yep, well to all of you grizzled veterans of the .Next experience, welcome back. You have started a movement that has grown and this year across many different .Next conferences all over the world, over 20,000 of your community members have come together. And we like to do it in distributed architecture fashion just like here in Nutanix. And so we've spread this movement all over the world with .Next conferences. And this is surging. We're also seeing just today the current count 61,000 certifications and climbing. Our Next community, close to 70,000 active members of our online community because .Next is about this big moment, and it's about every other day and every other week of the year, how we come together and explore. And my favorite stat of all. Here today in this hall amongst the record 5,500 registrations to .Next 2018 representing 71 countries in whole. So it's a global movement. Everyone, welcome. And you know when I got in Sunday night, I was looking at the tweets and the excitement was starting to build and started to see people like Adile coming from Casablanca. Adile wherever you are, welcome buddy. That's a long trip. Thank you so much for coming and being here with us today. I saw other folks coming from Geneva, from Denmark, from Japan, all over the world coming together for this moment. And we are accomplishing phenomenal things together. Because of your trust in us, and because of some early risk candidly that we have all taken together, we've created a movement in the market around modernizing data center environments, radically simplifying how we operate in the services we deliver to our businesses everyday. And this is a movement that we don't just know about this, but the industry is really taking notice. I love this chart. This is Gartner's inaugural hyperconvergence infrastructure magic quadrant chart. And I think if you see where Nutanix is positioned on there, I think you can agree that's a rout, that's a homerun, that's a mic drop so to speak. What do you guys think? (audience clapping) But here's the thing. It says Nutanix up there. We can honestly say this is a win for this hall here. Because, again, without your trust in us and what we've accomplished together and your partnership with us, we're not there. But we are there, and it is thanks to everyone in this hall. Together we have created, expanded, and truly made this market. Congratulations. And you know what, I think we're just getting started. The same innovation, the same catalyst that we drove into the market to converge storage network compute, the next horizon is around multi-cloud. The next horizon is around whether by accident or on purpose the strong move with different workloads moving into public cloud, some into private cloud moving back and forth, the promise of application mobility, the right workload on the right cloud platform with the right economics. Economics is key here. If any of you have a teenager out there, and they have a hold of your credit card, and they're doing something online or the like. You get some surprises at the end of the month. And that surprise comes in the form of spiraling public cloud costs. And this isn't to say we're not going to see a lot of workloads born and running in public cloud, but the opportunity is for us to take a path that regains control over infrastructure, regain control over workloads and where they're run. And the way I look at it for everyone in this hall, it's a journey we're on. It starts with modernizing those data center environments, continues with embracing the full cloud stack and the compelling opportunity to deliver that consumer experience to rapidly offer up enterprise compute services to your internal clients, lines of businesses and then out into the market. It's then about how you standardize across an enterprise cloud environment, that you're not just the infrastructure but the management, the automation, the control, and running any tier one application. I hear this everyday, and I've heard this a lot already this week about customers who are all in with this approach and running those tier one applications on Nutanix. And then it's the promise of not only hyperconverging infrastructure but hyperconverging multiple clouds. And if we do that, this journey the way we see it what we are doing is building your enterprise cloud. And your enterprise cloud is about the private cloud. It's about expanding and managing and taking back control of how you determine what workload to run where, and to make sure there's strong governance and control. And you're radically simplifying what could be an awfully complicated scenario if you don't reclaim and put your arms around that opportunity. Now how do we do this different than anyone else? And this is going to be a big theme that you're going to see from my good friend Sunil and his good friends on the product team. What are we doing together? We're taking all of that legacy complexity, that friction, that inability to be able to move fast because you're chained to old legacy environments. I'm talking to folks that have applications that are 40 years old, and they are concerned to touch them because they're not sure if they can react if their infrastructure can meet the demands of a new, modernized workload. We're making all that complexity invisible. And if all of that is invisible, it allows you to focus on what's next. And that indeed is the spirit of this conference. So if the what is enterprise cloud, and the how we do it different is by making infrastructure invisible, data centers, clouds, then why are we all here today? What is the binding principle that spiritually, that emotionally brings us all together? And we think it's a very simple, powerful word, and that word is freedom. And when we think about freedom, we think about as we work together the freedom to build the data center that you've always wanted to build. It's about freedom to run the applications where you choose based on the information and the context that wasn't available before. It's about the freedom of choice to choose the right cloud platform for the right application, and again to avoid a lot of these spiraling costs in unanticipated surprises whether it be around security, whether it be around economics or governance that come to the forefront. It's about the freedom to invent. It's why we got into this industry in the first place. We want to create. We want to build things not keep the lights on, not be chained to mundane tasks day by day. And it's about the freedom to play. And I hear this time and time again. My favorite tweet from a Nutanix customer to this day is just updated a lot of nodes at 38,000 feed on United Wifi, on my way to spend vacation with my family. Freedom to play. This to me is emotionally what brings us all together and what you saw with the Freedom video earlier, and what you see here is this new story because we want to go out and spread the word and not only talk about the enterprise cloud, not only talk about how we do it better, but talk about why it's so compelling to be a part of this hall here today. Now just one note of housekeeping for everyone out there in case I don't want anyone to take a wrong turn as they come to this beautiful convention center here today. A lot of freedom going on in this convention center. As luck may have it, there's another conference going on a little bit down that way based on another high growth, disruptive industry. Now MJBizCon Next, and by coincidence it's also called next. And I have to admire the creativity. I have to admire that we do share a, hey, high growth business model here. And in case you're not quite sure what this conference is about. I'm the head of marketing here. I have to show the tagline of this. And I read the tagline from license to launch and beyond, the future of the, now if I can replace that blank with our industry, I don't know, to me it sounds like a new, cool Sunil product launch. Maybe launching a new subscription service or the like. Stay tuned, you never know. I think they're going to have a good time over there. I know we're going to have a wonderful week here both to learn as well as have a lot of fun particularly in our customer appreciation event tonight. I want to spend a very few important moments on .Heart. .Heart is Nutanix's initiative to promote diversity in the technology arena. In particular, we have a focus on advancing the careers of women and young girls that we want to encourage to move into STEM and high tech careers. You have the opportunity to engage this week with this important initiative. Please role the video, and let's learn more about how you can do so. >> Video Plays (electronic music) >> So all of you have received these .Heart tokens. You have the freedom to go and choose which of the four deserving charities can receive donations to really advance our cause. So I thank you for your engagement there. And this community is behind .Heart. And it's a very important one. So thank you for that. .Next is not the community, the moment it is without our wonderful partners. These are our amazing sponsors. Yes, it's about sponsorship. It's also about how we integrate together, how we innovate together, and we're about an open community. And so I want to thank all of these names up here for your wonderful sponsorship of this event. I encourage everyone here in this room to spend time, get acquainted, get reacquainted, learn how we can make wonderful music happen together, wonderful music here in New Orleans happen together. .Next isn't .Next with a few cool surprises. Surprise number one, we have a contest. This is a still shot from the Freedom video you saw right before I came on. We have strategically placed a lucky seven Nutanix Easter eggs in this video. And if you go to Nutanix.com/freedom, watch the video. You may have to use the little scrubbing feature to slow down 'cause some of these happen quickly. You're going to find some fun, clever Easter eggs. List all seven, tweet that out, or as many as you can, tweet that out with hashtag nextconf, C, O, N, F, and we'll have a random drawing for an all expenses paid free trip to .Next 2019. And just to make sure everyone understands Easter egg concept. There's an eighth one here that's actually someone that's quite famous in our circles. If you see on this still shot, there's someone in the back there with a red jacket on. That's not just anyone. We're targeting in here. That is our very own Julie O'Brien, our senior vice president of corporate marketing. And you're going to hear from Julie later on here at .Next. But Julie and her team are the engine and the creativity behind not only our new Freedom campaign but more importantly everything that you experience here this week. Julie and her team are amazing, and we can't wait for you to experience what they've pulled together for you. Another surprise, if you go and visit our Freedom booths and share your stories. So they're like video booths, you share your success stories, your partnerships, your journey that I talked about, you will be entered to win a beautiful Nutanix brand compliant, look at those beautiful colors, bicycle. And it's not just any bicycle. It's a beautiful bicycle made by our beautiful customer Trek. I actually have a Trek bike. I love cycling. Unfortunately, I'm not eligible, but all of you are. So please share your stories in the Freedom Nutanix's booths and put yourself in the running, or in the cycling to get this prize. One more thing I wanted to share here. Yesterday we had a great time. We had our inaugural Nutanix hackathon. This hackathon brought together folks that were in devops practices, many of you that are in this room. We sold out. We thought maybe we'd get four or five teams. We had to shutdown at 14 teams that were paired together with a Nutanix mentor, and you coded. You used our REST APIs. You built new apps that integrated in with Prism and Clam. And it was wonderful to see this. Everyone I talked to had a great time on this. We had three winners. In third place, we had team Copper or team bronze, but team Copper. Silver, Not That Special, they're very humble kind of like one of our key mission statements. And the grand prize winner was We Did It All for the Cookies. And you saw them coming in on our Mardi Gras float here. We Did It All for Cookies, they did this very creative job. They leveraged an Apple Watch. They were lighting up VMs at a moments notice utilizing a lot of their coding skills. Congratulations to all three, first, second, and third all receive $2,500. And then each of them, then were able to choose a charity to deliver another $2,500 including Ronald McDonald House for the winner, we did it all for the McDonald Land cookies, I suppose, to move forward. So look for us to do more of these kinds of events because we want to bring together infrastructure and application development, and this is a great, I think, start for us in this community to be able to do so. With that, who's ready to hear form Dheeraj? You ready to hear from Dheeraj? (audience clapping) I'm ready to hear from Dheeraj, and not just 'cause I work for him. It is my distinct pleasure to welcome on the stage our CEO, cofounder and chairman Dheeraj Pandey. ("Free" by Broods) ♪ Hallelujah, I'm free ♪ >> Thank you Ben and good morning everyone. >> Audience: Good morning. >> Thank you so much for being here. It's just such an elation when I'm thinking about the Mardi Gras crowd that came here, the partners, the customers, the NTCs. I mean there's some great NTCs up there I could relate to because they're on Slack as well. How many of you are in Slack Nutanix internal Slack channel? Probably 5%, would love to actually see this community grow from here 'cause this is not the only even we would love to meet you. We would love to actually do this in a real time bite size communication on our own internal Slack channel itself. Now today, we're going to talk about a lot of things, but a lot of hard things, a lot of things that take time to build and have evolved as the industry itself has evolved. And one of the hard things that I want to talk about is multi-cloud. Multi-cloud is a really hard problem 'cause it's full of paradoxes. It's really about doing things that you believe are opposites of each other. It's about frictionless, but it's also about governance. It's about being simple, and it's also about being secure at the same time. It's about delight, it's about reducing waste, it's about owning, and renting, and finally it's also about core and edge. How do you really make this big at a core data center whether it's public or private? Or how do you really shrink it down to one or two nodes at the edge because that's where your machines are, that's where your people are? So this is a really hard problem. And as you hear from Sunil and the gang there, you'll realize how we've actually evolved our solutions to really cater to some of these. One of the approaches that we have used to really solve some of these hard problems is to have machines do more, and I said a lot of things in those four words, have machines do more. Because if you double-click on that sentence, it really means we're letting design be at the core of this. And how do you really design data centers, how do you really design products for the data center that hush all the escalations, the details, the complexities, use machine-learning and AI and you know figure our anomaly detection and correlations and patter matching? There's a ton of things that you need to do to really have machines do more. But along the way, the important lesson is to make machines invisible because when machines become invisible, it actually makes something else visible. It makes you visible. It makes governance visible. It makes applications visible, and it makes services visible. A lot of things, it makes teams visible, careers visible. So while we're really talking about invisibility of machines, we're talking about visibility of people. And that's how we really brought all of you together in this conference as well because it makes all of us shine including our products, and your careers, and your teams as well. And I try to define the word customer success. You know it's one of the favorite words that I'm actually using. We've just hired a great leader in customer success recently who's really going to focus on this relatively hard problem, yet another hard problem of customer success. We think that customer success, true customer success is possible when we have machines tend towards invisibility. But along the way when we do that, make humans tend towards freedom. So that's the real connection, the yin-yang of machines and humans that Nutanix is really all about. And that's why design is at the core of this company. And when I say design, I mean reducing friction. And it's really about reducing friction. And everything we do, the most mundane of things which could be about migrating applications, spinning up VMs, self-service portals, automatic upgrades, and automatic scale out, and all the things we do is about reducing friction which really makes machines become invisible and humans gain freedom. Now one of the other convictions we have is how all of us are really tied at the hip. You know our success is tied to your success. If we make you successful, and when I say you, I really mean Main Street. Main Street being customers, and partners, and employees. If we make all of you successful, then we automatically become successful. And very coincidentally, Main Street and Wall Street are also tied in that very same relation as well. If we do a great job at Main Street, I think the Wall Street customer, i.e. the investor, will take care of itself. You'll have you know taken care of their success if we took care of Main Street success itself. And that's the narrative that our CFO Dustin Williams actually went and painted to our Wall Street investors two months ago at our investor day conference. We talked about a $3 billion number. We said look as a company, as a software company, we can go and achieve $3 billion in billings three years from now. And it was a telling moment for the company. It was really about talking about where we could be three years from now. But it was not based on a hunch. It was based on what we thought was customer success. Now realize that $3 billion in pure software. There's only 10 to 15 companies in the world that actually have that kind of software billings number itself. But at the core of this confidence was customer success, was the fact that we were doing a really good job of not over promising and under delivering but under promising starting with small systems and growing the trust of the customers over time. And this is one of the statistics we actually talk about is repeat business. The first dollar that a Global 2000 customer spends in Nutanix, and if we go and increase their trust 15 times by year six, and we hope to actually get 17 1/2 and 19 times more trust in the years seven and eight. It's very similar numbers for non Global 2000 as well. Again, we go and really hustle for customer success, start small, have you not worry about paying millions of dollars upfront. You know start with systems that pay as they grow, you pay as they grow, and that's the way we gain trust. We have the same non Global 2000 pay $6 1/2 for the first dollar they've actually spent on us. And with this, I think the most telling moment was when Dustin concluded. And this is key to this audience here as well. Is how the current cohorts which is this audience here and many of them were not here will actually carry the weight of $3 billion, more than 50% of it if we did a great job of customer success. If we were humble and honest and we really figured out what it meant to take care of you, and if we really understood what starting small was and having to gain the trust with you over time, we think that more than 50% of that billings will actually come from this audience here without even looking at new logos outside. So that's the trust of customer success for us, and it takes care of pretty much every customer not just the Main Street customer. It takes care of Wall Street customer. It takes care of employees. It takes care of partners as well. Now before I talk about technology and products, I want to take a step back 'cause many of you are new in this audience. And I think that it behooves us to really talk about the history of this company. Like we've done a lot of things that started out as science projects. In fact, I see some tweets out there and people actually laugh at Nutanix cloud. And this is where we were in 2012. So if you take a step back and think about where the company was almost seven, eight years ago, we were up against giants. There was a $30 billion industry around network attached storage, and storage area networks and blade servers, and hypervisors, and systems management software and so on. So what did we start out with? Very simple premise that we will collapse the architecture of the data center because three tier is wasteful and three tier is not delightful. It was a very simple hunch, we said we'll take rack mount servers, we'll put a layer of software on top of it, and that layer of software back then only did storage. It didn't do networks and security, and it ran on top of a well known hypervisor from VMware. And we said there's one non negotiable thing. The fact that the design must change. The control plane for this data center cannot be the old control plane. It has to be rethought through, and that's why Prism came about. Now we went and hustled hard to add more things to it. We said we need to make this diverse because it can't just be for one application. We need to make it CPU heavy, and memory heavy, and storage heavy, and flash heavy and so on. And we built a highly configurable HCI. Now all of them are actually configurable as you know of today. And this was not just innovation in technologies, it was innovation in business and sizing, capacity planning, quote to cash business processes. A lot of stuff that we had to do to make this highly configurable, so you can really scale capacity and performance independent of each other. Then in 2014, we did something that was very counterintuitive, but we've done this on, and on, and on again. People said why are you disrupting yourself? You know you've been doing a good job of shipping appliances, but we also had the conviction that HCI was not about hardware. It was about a form factor, but it was really about an operating system. And we started to compete with ourselves when we said you know what we'll do arm's length distribution, we'll do arm's length delivery of products when we give our software to our Dell partner, to Dell as a partner, a loyal partner. But at the same time, it was actually seen with a lot of skepticism. You know these guys are wondering how to really make themselves vanish because they're competing with themselves. But we also knew that if we didn't compete with ourselves someone else will. Now one of the most controversial decisions was really going and doing yet another hypervisor. In the year 2015, it was really preposterous to build yet another hypervisor. It was a very mature market. This was coming probably 15 years too late to the market, or at least 10 years too late to market. And most people said it shouldn't be done because hypervisor is a commodity. And that's the word we latched on to. That this commodity should not have to be paid for. It shouldn't have a team of people managing it. It should actually be part of your overall stack, but it should be invisible. Just like storage needs to be invisible, virtualization needs to be invisible. But it was a bold step, and I think you know at least when we look at our current numbers, 1/3rd of our customers are actually using AHV. At least every quarter that we look at it, our new deployments, at least 35% of it is actually being used on AHV itself. And again, a very preposterous thing to have said five years ago, four years ago to where we've actually come. Thank you so much for all of you who've believed in the fact that virtualization software must be invisible and therefore we should actually try out something that is called AHV today. Now we went and added Lenovo to our OEM mix, started to become even more of a software company in the year 2016. Went and added HP and Cisco in some of very large deals that we talk about in earnings call, our HP deals and Cisco deals. And some very large customers who have procured ELAs from us, enterprise license agreements from us where they want to mix and match hardware. They want to mix Dell hardware with HP hardware but have common standard Nutanix entitlements. And finally, I think this was another one of those moments where we say why should HCI be only limited to X86. You know this operating systems deserves to run on a non X86 architecture as well. And that gave birth to this idea of HCI and Power Systems from IBM. And we've done a great job of really innovating with them in the last three, four quarters. Some amazing innovation that has come out where you can now run AIX 7.x on Nutanix. And for the first time in the history of data center, you can actually have a single software not just a data plane but a control plane where you can manage an IBM farm, an Power farm, and open Power farm and an X86 farm from the same control plane and have you know the IBM farm feed storage to an Intel compute farm and vice versa. So really good things that we've actually done. Now along the way, something else was going on while we were really busy building the private cloud, we knew there was a new consumption model on computing itself. People were renting computing using credit cards. This is the era of the millennials. They were like really want to bypass people because at the end of the day, you know why can't computing be consumed the way like eCommerce is? And that devops movement made us realize that we need to add to our stack. That stack will now have other computing clouds that is AWS and Azure and GCP now. So similar to the way we did Prism. You know Prism was really about going and making hypervisors invisible. You know we went ahead and said we'll add Calm to our portfolio because Calm is now going to be what Prism was to us back when we were really dealing with multi hypervisor world. Now it's going to be multi-cloud world. You know it's one of those things we had a gut around, and we really come to expect a lot of feedback and real innovation. I mean yesterday when we had the hackathon. The center, the epicenter of the discussion was Calm, was how do you automate on multiple clouds without having to write a single line of code? So we've come a long way since the acquisition of Calm two years ago. I think it's going to be a strong pillar in our overall product portfolio itself. Now the word multi-cloud is going to be used and over used. In fact, it's going to be blurring its lines with the idea of hyperconvergence of clouds, you know what does it mean. We just hope that hyperconvergence, the way it's called today will morph to become hyperconverged clouds not just hyperconverged boxes which is a software defined infrastructure definition itself. But let's focus on the why of multi-cloud. Why do we think it can't all go into a public cloud itself? The one big reason is just laws of the land. There's data sovereignty and computing sovereignty, regulations and compliance because of which you need to be in where the government with the regulations where the compliance rules want you to be. And by the way, that's just one reason why the cloud will have to disperse itself. It can't just be 10, 20 large data centers around the world itself because you have 200 plus countries and half of computing actually gets done outside the US itself. So it's a really important, very relevant point about the why of multi-cloud. The second one is just simple laws of physics. You know if there're machines at the edge, and they're producing so much data, you can't bring all the data to the compute. You have to take the compute which is stateless, it's an app. You take the app to where the data is because the network is the enemy. The network has always been the enemy. And when we thought we've made fatter networks, you've just produced more data as well. So this just goes without saying that you take something that's stateless that's without gravity, that's lightweight which is compute and the application and push it close to where the data itself is. And the third one which is related is just latency reasons you know? And it's not just about machine latency and electrons transferring over the speed light, and you can't defy the speed of light. It's also about human latency. It's also about multiple teams saying we need to federate and delegate, and we need to push things down to where the teams are as opposed to having to expect everybody to come to a very large computing power itself. So all the ways, the way they are, there will be at least three different ways of looking at multi-cloud itself. There's a centralized core cloud. We all go and relate to this because we've seen large data centers and so on. And that's the back office workhorse. It will crunch numbers. It will do processing. It will do a ton of things that will go and produce results for you know how we run our businesses, but there's also the dispersal of the cloud, so ROBO cloud. And this is the front office server that's really serving. It's a cloud that's going to serve people. It's going to be closer to people, and that's what a ROBO cloud is. We have a ton of customers out here who actually use Nutanix and the ROBO environments themselves as one node, two node, three node, five node servers, and it just collapses the entire server closet room in these ROBOs into something really, really small and minuscule. And finally, there's going to be another dispersed edge cloud because that's where the machines are, that's where the data is. And there's going to be an IOT machine fog because we need to miniaturize computing to something even smaller, maybe something that can really land in the palm in a mini server which is a PC like server, but you need to run everything that's enterprise grade. You should be able to go and upgrade them and monitor them and analyze them. You know do enough computing up there, maybe event-based processing that can actually happen. In fact, there's some great innovation that we've done at the edge with IOTs that I'd love for all of you to actually attend some sessions around as well. So with that being said, we have a hole in the stack. And that hole is probably one of the hardest problems that we've been trying to solve for the last two years. And Sunil will talk a lot about that. This idea of hybrid. The hybrid of multi-cloud is one of the hardest problems. Why? Because we're talking about really blurring the lines with owning and renting where you have a single-tenant environment which is your data center, and a multi-tenant environment which is the service providers data center, and the two must look like the same. And the two must look like the same is that hard a problem not just for burst out capacity, not just for security, not just for identity but also for networks. Like how do you blur the lines between networks? How do you blur the lines for storage? How do you really blur the lines for a single pane of glass where you can think of availability zones that look highly symmetric even though they're not because one of 'em is owned by you, and it's single-tenant. The other one is not owned by you, that's multi-tenant itself. So there's some really hard problems in hybrid that you'll hear Sunil talk about and the team. And some great strides that we've actually made in the last 12 months of really working on Xi itself. And that completes the picture now in terms of how we believe the state of computing will be going forward. So what are the must haves of a multi-cloud operating system? We talked about marketplace which is catalogs and automation. There's a ton of orchestration that needs to be done for multi-cloud to come together because now you have a self-service portal which is providing an eCommerce view. It's really about you know getting to do a lot of requests and workflows without having people come in the way, without even having tickets. There's no need for tickets if you can really start to think like a self-service portal as if you're just transacting eCommerce with machines and portals themselves. Obviously the next one is networking security. You need to blur the lines between on-prem and off-prem itself. These two play a huge role. And there's going to be a ton of details that you'll see Sunil talk about. But finally, what I want to focus on the rest of the talk itself here is what governance and compliance. This is a hard problem, and it's a hard problem because things have evolved. So I'm going to take a step back. Last 30 years of computing, how have consumption models changed? So think about it. 30 years ago, we were making decisions for 10 plus years, you know? Mainframe, at least 10 years, probably 20 plus years worth of decisions. These were decisions that were extremely waterfall-ish. Make 10s of millions of dollars worth of investment for a device that we'd buy for at least 10 to 20 years. Now as we moved to client-server, that thing actually shrunk. Now you're talking about five years worth of decisions, and these things were smaller. So there's a little bit more velocity in our decisions. We were not making as waterfall-ish decision as we used to with mainframes. But still five years, talk about virtualized, three tier, maybe three to five year decisions. You know they're still relatively big decisions that we were making with computer and storage and SAN fabrics and virtualization software and systems management software and so on. And here comes Nutanix, and we said no, no. We need to make it smaller. It has to become smaller because you know we need to make more agile decisions. We need to add machines every week, every month as opposed to adding you know machines every three to five years. And we need to be able to upgrade them, you know any point in time. You can do the upgrades every month if you had to, every week if you had to and so on. So really about more agility. And yet, we were not complete because there's another evolution going on, off-prem in the public cloud where people are going and doing reserved instances. But more than that, they were doing on demand stuff which no the decision was days to weeks. Some of these things that unitive compute was being rented for days to weeks, not years. And if you needed something more, you'd shift a little to the left and use reserved instances. And then spot pricing, you could do spot pricing for hours and finally lambda functions. Now you could to function as a service where things could actually be running only for minutes not even hours. So as you can see, there's a wide spectrum where when you move to the right, you get more elasticity, and when you move to the left, you're talking about predictable decision making. And in fact, it goes from minutes on one side to 10s of years on the other itself. And we hope to actually go and blur the lines between where NTNX is today where you see Nutanix right now to where we really want to be with reserved instances and on demand. And that's the real ask of Nutanix. How do you take care of this discontinuity? Because when you're owning things, you actually end up here, and when you're renting things, you end up here. What does it mean to really blur the lines between these two because people do want to make decisions that are better than reserved instance in the public cloud. We'll talk about why reserved instances which looks like a proxy for Nutanix it's still very, very wasteful even though you might think it's delightful, it's very, very wasteful. So what does it mean for on-prem and off-prem? You know you talk about cost governance, there's security compliance. These high velocity decisions we're actually making you know where sometimes you could be right with cost but wrong on security, but sometimes you could be right in security but wrong on cost. We need to really figure out how machines make some of these decisions for us, how software helps us decide do we have the right balance between cost, governance, and security compliance itself? And to get it right, we have introduced our first SAS service called Beam. And to talk more about Beam, I want to introduce Vijay Rayapati who's the general manager of Beam engineering to come up on stage and talk about Beam itself. Thank you Vijay. (rock music) So you've been here a couple of months now? >> Yes. >> At the same time, you spent the last seven, eight years really handling AWS. Tell us more about it. >> Yeah so we spent a lot of time trying to understand the last five years at Minjar you know how customers are really consuming in this new world for their workloads. So essentially what we tried to do is understand the consumption models, workload patterns, and also build algorithms and apply intelligence to say how can we lower this cost and you know improve compliance of their workloads.? And now with Nutanix what we're trying to do is how can we converge this consumption, right? Because what happens here is most customers start with on demand kind of consumption thinking it's really easy, but the total cost of ownership is so high as the workload elasticity increases, people go towards spot or a scaling, but then you need a lot more automation that something like Calm can help them. But predictability of the workload increases, then you need to move towards reserved instances, right to lower costs. >> And those are some of the things that you go and advise with some of the software that you folks have actually written. >> But there's a lot of waste even in the reserved instances because what happens it while customers make these commitments for a year or three years, what we see across, like we track a billion dollars in public cloud consumption you know as a Beam, and customers use 20%, 25% of utilization of their commitments, right? So how can you really apply, take the data of consumption you know apply intelligence to essentially reduce their you know overall cost of ownership. >> You said something that's very telling. You said reserved instances even though they're supposed to save are still only 20%, 25% utilized. >> Yes, because the workloads are very dynamic. And the next thing is you can't do hot add CPU or hot add memory because you're buying them for peak capacity. There is no convergence of scaling that apart from the scaling as another node. >> So you actually sized it for peak, but then using 20%, 30%, you're still paying for the peak. >> That's right. >> Dheeraj: That can actually add up. >> That's what we're trying to say. How can we deliver visibility across clouds? You know how can we deliver optimization across clouds and consumption models and bring the control while retaining that agility and demand elasticity? >> That's great. So you want to show us something? >> Yeah absolutely. So this is Beam as just Dheeraj outlined, our first SAS service. And this is my first .Next. And you know glad to be here. So what you see here is a global consumption you know for a business across different clouds. Whether that's in a public cloud like Amazon, or Azure, or Nutanix. We kind of bring the consumption together for the month, the recent month across your accounts and services and apply intelligence to say you know what is your spent efficiency across these clouds? Essentially there's a lot of intelligence that goes in to detect your workloads and consumption model to say if you're spending $100, how efficiently are you spending? How can you increase that? >> So you have a centralized view where you're looking at multiple clouds, and you know you talk about maybe you can take an example of an account and start looking at it? >> Yes, let's go into a cloud provider like you know for this business, let's go and take a loot at what's happening inside an Amazon cloud. Here we get into the deeper details of what's happening with the consumption of a specific services as well as the utilization of both on demand and RI. You know what can you do to lower your cost and detect your spend efficiency of a dollar to see you know are there resources that are provisioned by teams for applications that are not being used, or are there resources that we should go and rightsize because you know we have all this monitoring data, configuration data that we crunch through to basically detect this? >> You think there's billions of events that you look at everyday. You're already looking at a billon dollars worth of AWS spend. >> Right, right. >> So billions of events, billing, metering events every year to really figure out and optimize for them. >> So what we have here is a very popular international government organization. >> Dheeraj: Wow, so it looks like Russians are everywhere, the cloud is everywhere actually. >> Yes, it's quite popular. So when you bring your master account into Beam, we kind of detect all the linked accounts you know under that. Then you can go and take a look at not just at the organization level within it an account level. >> So these are child objects, you know. >> That's right. >> You can think of them as ephemeral accounts that you create because you don't want to be on the record when you're doing spams on Facebook for example. >> Right, let's go and take a look at what's happening inside a Facebook ad spend account. So we have you know consumption of the services. Let's go deeper into compute consumption, and you kind of see a trendline. You can do a lot of computing. As you see, looks like one campaign has ended. They started another campaign. >> Dheeraj: It looks like they're not stopping yet, man. There's a lot of money being made in Facebook right now. (Vijay laughing) >> So not only just get visibility at you know compute as a service inside a cloud provider, you can go deeper inside compute and say you know what is a service that I'm really consuming inside compute along with the CPUs n'stuff, right? What is my data transfer? You know what is my network? What is my load blancers? So essentially you get a very deeper visibility you know as a service right. Because we have three goals for Beam. How can we deliver visibility across clouds? How can we deliver visibility across services? And how can we deliver, then optimization? >> Well I think one thing that I just want to point out is how this SAS application was an extremely teachable moment for me to learn about the different resources that people could use about the public cloud. So all of you who actually have not gone deep enough into the idea of public cloud. This could be a great app for you to learn about things, the resources, you know things that you could do to save and security and things of that nature. >> Yeah. And we really believe in creating the single pane view you know to mange your optimization of a public cloud. You know as Ben spoke about as a business, you need to have freedom to use any cloud. And that's what Beam delivers. How can you make the right decision for the right workload to use any of the cloud of your choice? >> Dheeraj: How 'about databases? You talked about compute as well but are there other things we could look at? >> Vijay: Yes, let's go and take a look at database consumption. What you see here is they're using inside Facebook ad spending, they're using all databases except Oracle. >> Dheeraj: Wow, looks like Oracle sales folks have been active in Russia as well. (Vijay laughing) >> So what we're seeing here is a global view of you know what is your spend efficiency and which is kind of a scorecard for your business for the dollars that you're spending. And the great thing is Beam kind of brings together you know through its intelligence and algorithms to detect you know how can you rightsize resources and how can you eliminate things that you're not using? And we deliver and one click fix, right? Let's go and take a look at resources that are maybe provisioned for storage and not being used. We deliver the seamless one-click philosophy that Nutanix has to eliminate it. >> So one click, you can actually just pick some of these wasteful things that might be looking delightful because using public cloud, using credit cards, you can go in and just say click fix, and it takes care of things. >> Yeah, and not only remove the resources that are unused, but it can go and rightsize resources across your compute databases, load balancers, even past services, right? And this is where the power of it kind of comes for a business whether you're using on-prem and off-prem. You know how can you really converge that consumption across both? >> Dheeraj: So do you have something for Nutanix too? >> Vijay: Yes, so we have basically been working on Nutanix with something that we're going to deliver you know later this year. As you can see here, we're bringing together the consumption for the Nutanix, you know the services that you're using, the licensing and capacity that is available. And how can you also go and optimize within Nutanix environments >> That's great. >> for the next workload. Now let me quickly show you what we have on the compliance side. This is an extremely powerful thing that we've been working on for many years. What we deliver here just like in cost governance, a global view of your compliance across cloud providers. And the most powerful thing is you can go into a cloud provider, get the next level of visibility across cloud regimes for hundreds of policies. Not just policies but those policies across different regulatory compliances like HIPA, PCI, CAS. And that's very powerful because-- >> So you're saying a lot of what you folks have done is codified these compliance checks in software to make sure that people can sleep better at night knowing that it's PCI, and HIPA, and all that compliance actually comes together? >> And you can build this not just by cloud accounts, you can build them across cloud accounts which is what we call security centers. Essentially you can go and take a deeper look at you know the things. We do a whole full body scan for your cloud infrastructure whether it's AWS Amazon or Azure, and you can go and now, again, click to fix things. You know that had been probably provisioned that are violating the security compliance rules that should be there. Again, we have the same one-click philosophy to say how can you really remove things. >> So again, similar to save, you're saying you can go and fix some of these security issues by just doing one click. >> Absolutely. So the idea is how can we give our people the freedom to get visibility and use the right cloud and take the decisions instantly through one click. That's what Beam delivers you know today. And you know get really excited, and it's available at beam.nutanix.com. >> Our first SAS service, ladies and gentleman. Thank you so much for doing this, Vijay. It looks like there's going to be a talk here at 10:30. You'll talk more about the midterm elections there probably? >> Yes, so you can go and write your own security compliances as well. You know within Beam, and a lot of powerful things you can do. >> Awesome, thank you so much, Vijay. I really appreciate it. (audience clapping) So as you see, there's a lot of work that we're doing to really make multi-cloud which is a hard problem. You know think about working the whole body of it and what about cost governance? What about security compliance? Obviously what about hybrid networks, and security, and storage, you know compute, many of the things that you've actually heard from us, but we're taking it to a level where the business users can now understand the implications. A CFO's office can understand the implications of waste and delight. So what does customer success mean to us? You know again, my favorite word in a long, long time is really go and figure out how do you make you, the customer, become operationally efficient. You know there's a lot of stuff that we deliver through software that's completely uncovered. It's so latent, you don't even know you have it, but you've paid for it. So you've got to figure out what does it mean for you to really become operationally efficient, organizationally proficient. And it's really important for training, education, stuff that you know you're people might think it's so awkward to do in Nutanix, but it could've been way simpler if you just told you a place where you can go and read about it. Of course, I can just use one click here as opposed to doing things the old way. But most importantly to make it financially accountable. So the end in all this is, again, one of the things that I think about all the time in building this company because obviously there's a lot of stuff that we want to do to create orphans, you know things above the line and top line and everything else. There's also a bottom line. Delight and waste are two sides of the same coin. You know when we're talking about developers who seek delight with public cloud at the same time you're looking at IT folks who're trying to figure out governance. They're like look you know the CFOs office, the CIOs office, they're trying to figure out how to curb waste. These two things have to go hand in hand in this era of multi-cloud where we're talking about frictionless consumption but also governance that looks invisible. So I think, at the end of the day, this company will do a lot of stuff around one-click delight but also go and figure out how do you reduce waste because there's so much waste including folks there who actually own Nutanix. There's so much software entitlement. There's so much waste in the public cloud itself that if we don't go and put our arms around, it will not lead to customer success. So to talk more about this, the idea of delight and the idea of waste, I'd like to bring on board a person who I think you know many of you actually have talked about it have delightful hair but probably wasted jokes. But I think has wasted hair and delightful jokes. So ladies and gentlemen, you make the call. You're the jury. Sunil R.M.J. Potti. ("Free" by Broods) >> So that was the first time I came out from the bottom of a screen on a stage. I actually now know what it feels to be like a gopher. Who's that laughing loudly at the back? Okay, do we have the... Let's see. Okay, great. We're about 15 minutes late, so that means we're running right on time. That's normally how we roll at this conference. And we have about three customers and four demos. Like I think there's about three plus six, about nine folks coming onstage. So we'll have our own version of the parade as well on the main stage for the next 70 minutes. So let's just jump right into it. I think we've been pretty consistent in terms of our longterm plans since we started the company. And it's become a lot more clearer over the last few years about our plans to essentially make computing invisible as Dheeraj mentioned. We're doing this across multiple acts. We started with HCI. We call it making infrastructure invisible. We extended that to making data centers invisible. And then now we're in this mode of essentially extending it to converging clouds so that you can actually converge your consumption models. And so today's conference and essentially the theme that you're going to be seeing throughout the breakout sessions is about a journey towards invisible clouds, but make sure that you internalize the fact that we're investing heavily in each of the three phases. It's just not about the hybrid cloud with Nutanix, it's about actually finishing the job about making infrastructure invisible, expanding that to kind of go after the full data center, and then of course embark on some real meaningful things around invisible clouds, okay? And to start the session, I think you know the part that I wanted to make sure that we are all on the same page because most of us in the room are still probably in this phase of the journey which is about invisible infrastructure. And there the three key products and especially two of them that most of you guys know are Acropolis and Prism. And they're sort of like the bedrock of our company. You know especially Acropolis which is about the web scale architecture. Prism is about consumer grade design. And with Acropolis now being really mature. It's in the seventh year of innovation. We still have more than half of our company in terms of R and D spend still on Acropolis and Prism. So our core product is still sort of where we think we have a significant differentiation on. We're not going to let our foot off the peddle there. You know every time somebody comes to me and says look there's a new HCI render popping out or an existing HCI render out there, I ask a simple question to our customers saying show me 100 customers with 100 node deployments, and it will be very hard to find any other render out there that does the same thing. And that's the power of Acropolis the code platform. And then it's you know the fact that the velocity associated with Acropolis continues to be on a fast pace. We came out with various new capabilities in 5.5 and 5.6, and one of the most complicated things to get right was the fact to shrink our three node cluster to a one node, two node deployment. Most of you actually had requirements on remote office, branch office, or the edge that actually allowed us to kind of give us you know sort of like the impetus to kind of go design some new capabilities into our core OS to get this out. And associated with Acropolis and expanding into Prism, as you will see, the first couple of years of Prism was all about refactoring the user interface, doing a good job with automation. But more and more of the investments around Prism is going to be based on machine learning. And you've seen some variants of that over the last 12 months, and I can tell you that in the next 12 to 24 months, most of our investments around infrastructure operations are going to be driven by AI techniques starting with most of our R and D spend also going into machine-learning algorithms. So when you talk about all the enhancements that have come on with Prism whether it be formed by you know the management console changing to become much more automated, whether now we give you automatic rightsizing, anomaly detection, or a series of functionality that have gone into it, the real core sort of capabilities that we're putting into Prism and Acropolis are probably best served by looking at the quality of the product. You probably have seen this slide before. We started showing the number of nodes shipped by Nutanix two years ago at this conference. It was about 35,000 plus nodes at that time. And since then, obviously we've you know continued to grow. And we would draw this line which was about enterprise class quality. That for the number of bugs found as a percentage of nodes shipped, there's a certain line that's drawn. World class companies do about probably 2% to 3%, number of CFDs per node shipped. And we were just broken that number two years ago. And to give you guys an idea of how that curve has shown up, it's now currently at .95%. And so along with velocity, you know this focus on being true to our roots of reliability and stability continues to be, you know it's an internal challenge, but it's also some of the things that we keep a real focus on. And so between Acropolis and Prism, that's sort of like our core focus areas to sort of give us the confidence that look we have this really high bar that we're sort of keeping ourselves accountable to which is about being the most advanced enterprise cloud OS on the planet. And we will keep it this way for the next 10 years. And to complement that, over a period of time of course, we've added a series of services. So these are services not just for VMs but also for files, blocks, containers, but all being delivered in that single one-click operations fashion. And to really talk more about it, and actually probably to show you the real deal there it's my great pleasure to call our own version of Moses inside the company, most of you guys know him as Steve Poitras. Come on up, Steve. (audience clapping) (rock music) >> Thanks Sunil. >> You barely fit in that door, man. Okay, so what are we going to talk about today, Steve? >> Absolutely. So when we think about when Nutanix first got started, it was really focused around VDI deployments, smaller workloads. However over time as we've evolved the product, added additional capabilities and features, that's grown from VDI to business critical applications as well as cloud native apps. So let's go ahead and take a look. >> Sunil: And we'll start with like Oracle? >> Yeah, that's one of the key ones. So here we can see our Prism central user interface, and we can see our Thor cluster obviously speaking to the Avengers theme here. We can see this is doing right around 400,000 IOPs at around 360 microseconds latency. Now obviously Prism central allows you to mange all of your Nutanix deployments, but this is just running on one single Nutanix cluster. So if we hop over here to our explore tab, we can see we have a few categories. We have some Kubernetes, some AFS, some Xen desktop as well as Oracle RAC. Now if we hope over to Oracle RAC, we're running a SLOB workload here. So obviously with Oracle enterprise applications performance, consistency, and extremely low latency are very critical. So with this SLOB workload, we're running right around 300 microseconds of latency. >> Sunil: So this is what, how many node Oracle RAC cluster is this? >> Steve: This is a six node Oracle RAC deployment. >> Sunil: Got it. And so what has gone into the product in recent releases to kind of make this happen? >> Yeah so obviously on the hardware front, there's been a lot of evolutions in storage mediums. So with the introduction of NVME, persistent memory technologies like 3D XPoint, that's meant storage media has become a lot faster. Now to allow you to full take advantage of that, that's where we've had to do a lot of optimizations within the storage stack. So with AHV, we have what we call AHV turbo mode which allows you to full take advantage of those faster storage mediums at that much lower latency. And then obviously on the networking front, technologies such as RDMA can be leveraged to optimize that network stack. >> Got it. So that was Oracle RAC running on a you know Nutanix cluster. It used to be a big deal a couple of years ago. Now we've got many customers doing that. On the same environment though, we're going to show you is the advent of actually putting file services in the same scale out environment. And you know many of you in the audience probably know about AFS. We released it about 12 to 14 months ago. It's been one of our most popular new products of all time within Nutanix's history. And we had SMB support was for user file shares, VDI deployments, and it took awhile to bake, to get to scale and reliability. And then in the last release, in the recent release that we just shipped, we now added NFS for support so that we can no go after the full scale file server consolidation. So let's take a look at some of that stuff. >> Yep, let's do it. So hopping back over to Prism, we can see our four cluster here. Overall cluster-wide latency right around 360 microseconds. Now we'll hop down to our file server section. So here we can see we have our Next A File Server hosting right about 16.2 million files. Now if you look at our shares and exports, we can see we have a mix of different shares. So one of the shares that you see there is home directories. This is an SMB share which is actually mapped and being leveraged by our VDI desktops for home folders, user profiles, things of that nature. We can also see this Oracle backup share here which is exposed to our rack host via NFS. So RMAN is actually leveraging this to provide native database backups. >> Got it. So Oracle VMs, backup using files, or for any other file share requirements with AFS. Do we have the cluster also showing, I know, so I saw some Kubernetes as well on it. Let's talk about what we're thinking of doing there. >> Yep, let's do it. So if we think about cloud, cloud's obviously a big buzz word, so is containers in Kubernetes. So with ACS 1.0 what we did is we introduced native support for Docker integration. >> And pause there. And we screwed up. (laughing) So just like the market took a left turn on Kubernetes, obviously we realized that, and now we're working on ACS 2.0 which is what we're going to talk about, right? >> Exactly. So with ACS 2.0, we've introduced native Kubernetes support. Now when I think about Kubernetes, there's really two core areas that come to mind. The first one is around native integration. So with that, we have our Kubernetes volume integration, we're obviously doing a lot of work on the networking front, and we'll continue to push there from an integration point of view. Now the other piece is around the actual deployment of Kubernetes. When we think about a lot of Nutanix administrators or IT admins, they may have never deployed Kubernetes before, so this could be a very daunting task. And true to the Nutanix nature, we not only want to make our platform simple and intuitive, we also want to do this for any ecosystem products. So with ACS 2.0, we've simplified the full Kubernetes deployment and switching over to our ACS two interface, we can see this create cluster button. Now this actually pops up a full wizard. This wizard will actually walk you through the full deployment process, gather the necessary inputs for you, and in a matter of a few clicks and a few minutes, we have a full Kubernetes deployment fully provisioned, the masters, the workers, all the networking fully done for you, very simple and intuitive. Now if we hop back over to Prism, we can see we have this ACS2 Kubernetes category. Clicking on that, we can see we have eight instances of virtual machines. And here are Kubernetes virtual machines which have actually been deployed as part of this ACS2 installer. Now one of the nice things is it makes the IT administrator's job very simple and easy to do. The deployment straightforward monitoring and management very straightforward and simple. Now for the developer, the application architect, or engineers, they interface and interact with Kubernetes just like they would traditionally on any platform. >> Got it. So the goal of ACS is to ensure that the developer ecosystem still uses whatever tools that they are you know preferring while at that same time allowing this consolidation of containers along with VMs all on that same, single runtime, right? So that's ACS. And then if you think about where the OS is going, there's still some open space at the end. And open space has always been look if you just look at a public cloud, you look at blocks, files, containers, the most obvious sort of storage function that's left is objects. And that's the last horizon for us in completing the storage stack. And we're going to show you for the first time a preview of an upcoming product called the Acropolis Object Storage Services Stack. So let's talk a little bit about it and then maybe show the demo. >> Yeah, so just like we provided file services with AFS, block services with ABS, with OSS or Object Storage Services, we provide native object storage, compatibility and capability within the Nutanix platform. Now this provides a very simply common S3 API. So any integrations you've done with S3 especially Kubernetes, you can actually leverage that out of the box when you've deployed this. Now if we hop back over to Prism, I'll go here to my object stores menu. And here we can see we have two existing object storage instances which are running. So you can deploy however many of these as you wanted to. Now just like the Kubernetes deployment, deploying a new object instance is very simple and easy to do. So here I'll actually name this instance Thor's Hammer. >> You do know he loses it, right? He hasn't seen the movies yet. >> Yeah, I don't want any spoilers yet. So once we specified the name, we can choose our capacity. So here we'll just specify a large instance or type. Obviously this could be any amount or storage. So if you have a 200 node Nutanix cluster with petabytes worth of data, you could do that as well. Once we've selected that, we'll select our expected performance. And this is going to be the number of concurrent gets and puts. So essentially how many operations per second we want this instance to be able to facilitate. Once we've done that, the platform will actually automatically determine how many virtual machines it needs to deploy as well as the resources and specs for those. And once we've done that, we'll go ahead and click save. Now here we can see it's actually going through doing the deployment of the virtual machines, applying any necessary configuration, and in the matter of a few clicks and a few seconds, we actually have this Thor's Hammer object storage instance which is up and running. Now if we hop over to one of our existing object storage instances, we can see this has three buckets. So one for Kafka-queue, I'm actually using this for my Kafka cluster where I have right around 62 million objects all storing ProtoBus. The second one there is Spark. So I actually have a Spark cluster running on our Kubernetes deployed instance via ACS 2.0. Now this is doing analytics on top of this data using S3 as a storage backend. Now for these objects, we support native versioning, native object encryption as well as worm compliancy. So if you want to have expiry periods, retention intervals, that sort of thing, we can do all that. >> Got it. So essentially what we've just shown you is with upcoming objects as well that the same OS can now support VMs, files, objects, containers, all on the same one click operational fabric. And so that's in some way the real power of Nutanix is to still keep that consistency, scalability in place as we're covering each and every workload inside the enterprise. So before Steve gets off stage though, I wanted to talk to you guys a little bit about something that you know how many of you been to our Nutanix headquarters in San Jose, California? A few. I know there's like, I don't know, 4,000 or 5,000 people here. If you do come to the office, you know when you land in San Jose Airport on the way to longterm parking, you'll pass our office. It's that close. And if you come to the fourth floor, you know one of the cubes that's where I sit. In the cube beside me is Steve. Steve sits in the cube beside me. And when I first joined the company, three or four years ago, and Steve's if you go to his cube, it no longer looks like this, but it used to have a lot of this stuff. It was like big containers of this. I remember the first time. Since I started joking about it, he started reducing it. And then Steve eventually got married much to our surprise. (audience laughing) Much to his wife's surprise. And then he also had a baby as a bigger surprise. And if you come over to our office, and we welcome you, and you come to the fourth floor, find my cube or you'll find Steve's Cube, it now looks like this. Okay, so thanks a lot, my man. >> Cool, thank you. >> Thanks so much. (audience clapping) >> So single OS, any workload. And like Steve who's been with us for awhile, it's my great pleasure to invite one of our favorite customers, CSC Karen who's also been with us for three to four years. And I'll share some fond memories about how she's been with the company for awhile, how as partners we've really done a lot together. So without any further ado, let me bring up Karen. Come on up, Karen. (rock music) >> Thank you for having me. >> Yeah, thank you. So I remember, so how many of you guys were with Nutanix first .Next in Miami? I know there was a question like that asked last time. Not too many. You missed it. We wished we could go back to that. We wouldn't fit 3/4s of this crowd. But Karen was our first customer in the keynote in 2015. And we had just talked about that story at that time where you're just become a customer. Do you want to give us some recap of that? >> Sure. So when we made the decision to move to hyperconverged infrastructure and chose Nutanix as our partner, we rapidly started to deploy. And what I mean by that is Sunil and some of the Nutanix executives had come out to visit with us and talk about their product on a Tuesday. And on a Wednesday after making the decision, I picked up the phone and said you know what I've got to deploy for my VDI cluster. So four nodes showed up on Thursday. And from the time it was plugged in to moving over 300 VDIs and 50 terabytes of storage and turning it over for the business for use was less than three days. So it was really excellent testament to how simple it is to start, and deploy, and utilize the Nutanix infrastructure. Now part of that was the delight that we experienced from our customers after that deployment. So we got phone calls where people were saying this report it used to take so long that I'd got out and get a cup of coffee and come back, and read an article, and do some email, and then finally it would finish. Those reports are running in milliseconds now. It's one click. It's very, very simple, and we've delighted our customers. Now across that journey, we have gone from the simple workloads like VDIs to the much more complex workloads around Splunk and Hadoop. And what's really interesting about our Splunk deployment is we're handling over a billion events being logged everyday. And the deployment is smaller than what we had with a three tiered infrastructure. So when you hear people talk about waste and getting that out and getting to an invisible environment where you're just able to run it, that's what we were able to achieve both with everything that we're running from our public facing websites to the back office operations that we're using which include Splunk and even most recently our Cloudera and Hadoop infrastructure. What it does is it's got 30 crawlers that go out on the internet and start bringing data back. So it comes back with over two terabytes of data everyday. And then that environment, ingests that data, does work against it, and responds to the business. And that again is something that's smaller than what we had on traditional infrastructure, and it's faster and more stable. >> Got it. And it covers a lot of use cases as well. You want to speak a few words on that? >> So the use cases, we're 90%, 95% deployed on Nutanix, and we're covering all of our use cases. So whether that's a customer facing app or a back office application. And what are business is doing is it's handling large portfolios of data for fortune 500 companies and law firms. And these applications are all running with improved stability, reliability, and performance on the Nutanix infrastructure. >> And the plan going forward? >> So the plan going forward, you actually asked me that in Miami, and it's go global. So when we started in Miami and that first deployment, we had four nodes. We now have 283 nodes around the world, and we started with about 50 terabytes of data. We've now got 3.8 petabytes of data. And we're deployed across four data centers and six remote offices. And people ask me often what is the value that we achieved? So simplification. It's all just easier, and it's all less expensive. Being able to scale with the business. So our Cloudera environment ended up with one day where it spiked to 1,000 times more load, 1,000 times, and it just responded. We had rally cries around improved productivity by six times. So 600% improved productivity, and we were able to actually achieve that. The numbers you just saw on the slide that was very, very fast was we calculated a 40% reduction in total cost of ownership. We've exceeded that. And when we talk about waste, that other number on the board there is when I saved the company one hour of maintenance activity or unplanned downtime in a month which we're now able to do the majority of our maintenance activities without disrupting any of our business solutions, I'm saving $750,000 each time I save that one hour. >> Wow. All right, Karen from CSE. Thank you so much. That was great. Thank you. I mean you know some of these data points frankly as I started talking to Karen as well as some other customers are pretty amazing in terms of the genuine value beyond financial value. Kind of like the emotional sort of benefits that good products deliver to some of our customers. And I think that's one of the core things that we take back into engineering is to keep ourselves honest on either velocity or quality even hiring people and so forth. Is to actually the more we touch customers lives, the more we touch our partner's lives, the more it allows us to ensure that we can put ourselves in their shoes to kind of make sure that we're doing the right thing in terms of the product. So that was the first part, invisible infrastructure. And our goal, as we've always talked about, our true North is to make sure that this single OS can be an exact replica, a truly modern, thoughtful but original design that brings the power of public cloud this AWS or GCP like architectures into your mainstream enterprises. And so when we take that to the next level which is about expanding the scope to go beyond invisible infrastructure to invisible data centers, it starts with a few things. Obviously, it starts with virtualization and a level of intelligent management, extends to automation, and then as we'll talk about, we have to embark on encompassing the network. And that's what we'll talk about with Flow. But to start this, let me again go back to one of our core products which is the bedrock of our you know opinionated design inside this company which is Prism and Acropolis. And Prism provides, I mentioned, comes with a ton of machine-learning based intelligence built into the product in 5.6 we've done a ton of work. In fact, a lot of features are coming out now because now that PC, Prism Central that you know has been decoupled from our mainstream release strain and will continue to release on its own cadence. And the same thing when you actually flip it to AHV on its own train. Now AHV, two years ago it was all about can I use AHV for VDI? Can I use AHV for ROBO? Now I'm pretty clear about where you cannot use AHV. If you need memory overcome it, stay with VMware or something. If you need, you know Metro, stay with another technology, else it's game on, right? And if you really look at the adoption of AHV in the mainstream enterprise, the customers now speak for themselves. These are all examples of large global enterprises with multimillion dollar ELAs in play that have now been switched over. Like I'll give you a simple example here, and there's lots of these that I'm sure many of you who are in the audience that are in this camp, but when you look at the breakout sessions in the pods, you'll get a sense of this. But I'll give you one simple example. If you look at the online payment company. I'm pretty sure everybody's used this at one time or the other. They had the world's largest private cloud on open stack, 21,000 nodes. And they were actually public about it three or four years ago. And in the last year and a half, they put us through a rigorous VOC testing scale, hardening, and it's a full blown AHV only stack. And they've started cutting over. Obviously they're not there yet completely, but they're now literally in hundreds of nodes of deployment of Nutanix with AHV as their primary operating system. So it is primetime from a deployment perspective. And with that as the base, no cloud is complete without actually having self-service provisioning that truly drives one-click automation, and can you do that in this consumer grade design? And Calm was acquired, as you guys know, in 2016. We had a choice of taking Calm. It was reasonably feature complete. It supported multiple clouds. It supported ESX, it supported Brownfield, It supported AHV. I mean they'd already done the integration with Nutanix even before the acquisition. And we had a choice. The choice was go down the path of dynamic ops or some other products where you took it for revenue or for acceleration, you plopped it into the ecosystem and sold it at this power sucking alien on top of our stack, right? Or we took a step back, re-engineered the product, kept some of the core essence like the workflow engine which was good, the automation, the object model and all, but refactored it to make it look like a natural extension of our operating system. And that's what we did with Calm. And we just launched it in December, and it's been one of our most popular new products now that's flying off the shelves. If you saw the number of registrants, I got a notification of this for the breakout sessions, the number one session that has been preregistered with over 500 people, the first two sessions are around Calm. And justifiably so because it just as it lives up to its promise, and it'll take its time to kind of get to all the bells and whistles, all the capabilities that have come through with AHV or Acropolis in the past. But the feature functionality, the product market fit associated with Calm is dead on from what the feedback that we can receive. And so Calm itself is on its own rapid cadence. We had AWS and AHV in the first release. Three or four months later, we now added ESX support. We added GCP support and a whole bunch of other capabilities, and I think the essence of Calm is if you can combine Calm and along with private cloud automation but also extend it to multi-cloud automation, it really sets Nutanix on its first genuine path towards multi-cloud. But then, as I said, if you really fixate on a software defined data center message, we're not complete as a full blown AWS or GCP like IA stack until we do the last horizon of networking. And you probably heard me say this before. You heard Dheeraj and others talk about it before is our problem in networking isn't the same in storage. Because the data plane in networking works. Good L2 switches from Cisco, Arista, and so forth, but the real problem networking is in the control plane. When something goes wrong at a VM level in Nutanix, you're able to identify whether it's a storage problem or a compute problem, but we don't know whether it's a VLAN that's mis-configured, or there've been some packets dropped at the top of the rack. Well that all ends now with Flow. And with Flow, essentially what we've now done is take the work that we've been working on to create built-in visibility, put some network automation so that you can actually provision VLANs when you provision VMs. And then augment it with micro segmentation policies all built in this easy to use, consume fashion. But we didn't stop there because we've been talking about Flow, at least the capabilities, over the last year. We spent significant resources building it. But we realized that we needed an additional thing to augment its value because the world of applications especially discovering application topologies is a heady problem. And if we didn't address that, we wouldn't be fulfilling on this ambition of providing one-click network segmentation. And so that's where Netsil comes in. Netsil might seem on the surface yet another next generation application performance management tool. But the innovations that came from Netsil started off at the research project at the University of Pennsylvania. And in fact, most of the team right now that's at Nutanix is from the U Penn research group. And they took a really original, fresh look at how do you sit in a network in a scale out fashion but still reverse engineer the packets, the flow through you, and then recreate this application topology. And recreate this not just on Nutanix, but do it seamlessly across multiple clouds. And to talk about the power of Flow augmented with Netsil, let's bring Rajiv back on stage, Rajiv. >> How you doing? >> Okay so we're going to start with some Netsil stuff, right? >> Yeah, let's talk about Netsil and some of the amazing capabilities this acquisition's bringing to Nutanix. First of all as you mentioned, Netsil's completely non invasive. So it installs on the network, it does all its magic from there. There're no host agents, non of the complexity and compatibility issues that entails. It's also monitoring the network at layer seven. So it's actually doing a deep packet inspection on all your application data, and can give you insights into services and APIs which is very important for modern applications and the way they behave. To do all this of course performance is key. So Netsil's built around a completely distributed architecture scaled to really large workloads. Very exciting technology. We're going to use it in many different ways at Nutanix. And to give you a flavor of that, let me show you how we're thinking of integrating Flow and Nestil together, so micro segmentation and Netsil. So to do that, we install Netsil in one of our Google accounts. And that's what's up here now. It went out there. It discovered all the VMs we're running on that account. It created a map essentially of all their interactions, and you can see it's like a Google Maps view. I can zoom into it. I can look at various things running. I can see lots of HTTP servers over here, some databases. >> Sunil: And it also has stats, right? You can go, it actually-- >> It does. We can take a look at that for a second. There are some stats you can look at right away here. Things like transactions per second and latencies and so on. But if I wanted to micro segment this application, it's not really clear how to do so. There's no real pattern over here. Taking the Google Maps analogy a little further, this kind of looks like the backstreets of Cairo or something. So let's do this step by step. Let me first filter down to one application. Right now I'm looking at about three or four different applications. And Netsil integrates with the metadata. So this is that the clouds provide. So I can search all the tags that I have. So by doing that, I can zoom in on just the financial application. And when I do this, the view gets a little bit simpler, but there's still no real pattern. It's not clear how to micro segment this, right? And this is where the power of Netsil comes in. This is a fairly naive view. This is what tool operating at layer four just looking at ports and TCP traffic would give you. But by doing deep packet inspection, Netsil can get into the services layer. So instead of grouping these interactions by hostname, let's group them by service. So you go service tier. And now you can see this is a much simpler picture. Now I have some patterns. I have a couple of load balancers, an HA proxy and an Nginx. I have a web application front end. I have some application servers running authentication services, search services, et cetera, a database, and a database replica. I could go ahead and micro segment at this point. It's quite possible to do it at this point. But this is almost too granular a view. We actually don't usually want to micro segment at individual service level. You think more in terms of application tiers, the tiers that different services belong to. So let me go ahead and group this differently. Let me group this by app tier. And when I do that, a really simple picture emerges. I have a load balancing tier talking to a web application front end tier, an API tier, and a database tier. Four tiers in my application. And this is something I can work with. This is something that I can micro segment fairly easily. So let's switch over to-- >> Before we dot that though, do you guys see how he gave himself the pseudonym called Dom Toretto? >> Focus Sunil, focus. >> Yeah, for those guys, you know that's not the Avengers theme, man, that's the Fast and Furious theme. >> Rajiv: I think a year ahead. This is next years theme. >> Got it, okay. So before we cut over from Netsil to Flow, do we want to talk a few words about the power of Flow, and what's available in 5.6? >> Sure so Flow's been around since the 5.6 release. Actually some of the functionality came in before that. So it's got invisibility into the network. It helps you debug problems with WLANs and so on. We had a lot of orchestration with other third party vendors with load balancers, with switches to make publishing much simpler. And then of course with our most recent release, we GA'ed our micro segmentation capabilities. And that of course is the most important feature we have in Flow right now. And if you look at how Flow policy is set up, it looks very similar to what we just saw with Netsil. So we have load blancer talking to a web app, API, database. It's almost identical to what we saw just a moment ago. So while this policy was created manually, it is something that we can automate. And it is something that we will do in future releases. Right now, it's of course not been integrated at that level yet. So this was created manually. So one thing you'll notice over here is that the database tier doesn't get any direct traffic from the internet. All internet traffic goes to the load balancer, only specific services then talk to the database. So this policy right now is in monitoring mode. It's not actually being enforced. So let's see what happens if I try to attack the database, I start a hack against the database. And I have my trusty brute force password script over here. It's trying the most common passwords against the database. And if I happen to choose a dictionary word or left the default passwords on, eventually it will log into the database. And when I go back over here in Flow what happens is it actually detects there's now an ongoing a flow, a flow that's outside of policy that's shown up. And it shows this in yellow. So right alongside the policy, I can visualize all the noncompliant flows. This makes it really easy for me now to make decisions, does this flow should it be part of the policy, should it not? In this particular case, obviously it should not be part of the policy. So let me just switch from monitoring mode to enforcement mode. I'll apply the policy, give it a second to propagate. The flow goes away. And if I go back to my script, you can see now the socket's timing out. I can no longer connect to the database. >> Sunil: Got it. So that's like one click segmentation and play right now? >> Absolutely. It's really, really simple. You can compare it to other products in the space. You can't get simpler than this. >> Got it. Why don't we got back and talk a little bit more about, so that's Flow. It's shipping now in 5.6 obviously. It'll come integrated with Netsil functionality as well as a variety of other enhancements in that next few releases. But Netsil does more than just simple topology discovery, right? >> Absolutely. So Netsil's actually gathering a lot of metrics from your network, from your host, all this goes through a data pipeline. It gets processed over there and then gets captured in a time series database. And then we can slice and dice that in various different ways. It can be used for all kinds of insights. So let's see how our application's behaving. So let me say I want to go into the API layer over here. And I instantly get a variety of metrics on how the application's behaving. I get the most requested endpoints. I get the average latency. It looks reasonably good. I get the average latency of the slowest endpoints. If I was having a performance problem, I would know exactly where to go focus on. Right now, things look very good, so we won't focus on that. But scrolling back up, I notice that we have a fairly high error rate happening. We have like 11.35% of our HTTP requests are generating errors, and that deserves some attention. And if I scroll down again, and I see the top five status codes I'm getting, almost 10% of my requests are generating 500 errors, HTTP 500 errors which are internal server errors. So there's something going on that's wrong with this application. So let's dig a little bit deeper into that. Let me go into my analytics workbench over here. And what I've plotted over here is how my HTTP requests are behaving over time. Let me filter down to just the 500 ones. That will make it easier. And I want the 500s. And I'll also group this by the service tier so that I can see which services are causing the problem. And the better view for this would be a bar graph. Yes, so once I do this, you can see that all the errors, all the 500 errors that we're seeing have been caused by the authentication service. So something's obviously wrong with that part of my application. I can go look at whether Active Directory is misbehaving and so on. So very quickly from a broad problem that I was getting a high HTTP error rate. In fact, usually you will discover there's this customer complaining about a lot of errors happening in your application. You can quickly narrow down to exactly what the cause was. >> Got it. This is what we mean by hyperconvergence of the network which is if you can truly isolate network related problems and associate them with the rest of the hyperconvergence infrastructure, then we've essentially started making real progress towards the next level of hyperconvergence. Anyway, thanks a lot, man. Great job. >> Thanks, man. (audience clapping) >> So to talk about this evolution from invisible infrastructure to invisible data centers is another customer of ours that has embarked on this journey. And you know it's not just using Nutanix but a variety of other tools to actually fulfill sort of like the ambition of a full blown cloud stack within a financial organization. And to talk more about that, let me call Vijay onstage. Come on up, Vijay. (rock music) >> Hey. >> Thank you, sir. So Vijay looks way better in real life than in a picture by the way. >> Except a little bit of gray. >> Unlike me. So tell me a little bit about this cloud initiative. >> Yeah. So we've won the best cloud initiative twice now hosted by Incisive media a large magazine. It's basically they host a bunch of you know various buy side, sell side, and you can submit projects in various categories. So we've won the best cloud twice now, 2015 and 2017. The 2017 award is when you know as part of our private cloud journey we were laying the foundation for our private cloud which is 100% based on hyperconverged infrastructure. So that was that award. And then 2017, we've kind of built on that foundation and built more developer-centric next gen app services like PAS, CAS, SDN, SDS, CICD, et cetera. So we've built a lot of those services on, and the second award was really related to that. >> Got it. And a lot of this was obviously based on an infrastructure strategy with some guiding principles that you guys had about three or four years ago if I remember. >> Yeah, this is a great slide. I use it very often. At the core of our infrastructure strategy is how do we run IT as a business? I talk about this with my teams, they were very familiar with this. That's the mindset that I instill within the teams. The mission, the challenge is the same which is how do we scale infrastructure while reducing total cost of ownership, improving time to market, improving client experience and while we're doing that not lose sight of reliability, stability, and security? That's the mission. Those are some of our guiding principles. Whenever we take on some large technology investments, we take 'em through those lenses. Obviously Nutanix went through those lenses when we invested in you guys many, many years ago. And you guys checked all the boxes. And you know initiatives change year on year, the mission remains the same. And more recently, the last few years, we've been focused on converged platforms, converged teams. We've actually reorganized our teams and aligned them closer to the platforms moving closer to an SRE like concept. >> And then you've built out a full stack now across computer storage, networking, all the way with various use cases in play? >> Yeah, and we're aggressively moving towards PAS, CAS as our method of either developing brand new cloud native applications or even containerizing existing applications. So the stack you know obviously built on Nutanix, SDS for software fine storage, compute and networking we've got SDN turned on. We've got, again, PAS and CAS built on this platform. And then finally, we've hooked our CICD tooling onto this. And again, the big picture was always frictionless infrastructure which we're very close to now. You know 100% of our code deployments into this environment are automated. >> Got it. And so what's the net, net in terms of obviously the business takeaway here? >> Yeah so at Northern we don't do tech for tech. It has to be some business benefits, client benefits. There has to be some outcomes that we measure ourselves against, and these are some great metrics or great ways to look at if we're getting the outcomes from the investments we're making. So for example, infrastructure scale while reducing total cost of ownership. We're very focused on total cost of ownership. We, for example, there was a build team that was very focus on building servers, deploying applications. That team's gone down from I think 40, 45 people to about 15 people as one example, one metric. Another metric for reducing TCO is we've been able to absorb additional capacity without increasing operating expenses. So you're actually building capacity in scale within your operating model. So that's another example. Another example, right here you see on the screen. Faster time to market. We've got various types of applications at any given point that we're deploying. There's a next gen cloud native which go directly on PAS. But then a majority of the applications still need the traditional IS components. The time to market to deploy a complex multi environment, multi data center application, we've taken that down by 60%. So we can deliver server same day, but we can deliver entire environments, you know add it to backup, add it to DNS, and fully compliant within a couple of weeks which is you know something we measure very closely. >> Great job, man. I mean that's a compelling I think results. And in the journey obviously you got promoted a few times. >> Yep. >> All right, congratulations again. >> Thank you. >> Thanks Vijay. >> Hey Vijay, come back here. Actually we forgot our joke. So razzled by his data points there. So you're supposed to wear some shoes, right? >> I know my inner glitch. I was going to wear those sneakers, but I forgot them at the office maybe for the right reasons. But the story behind those florescent sneakers, I see they're focused on my shoes. But I picked those up two years ago at a Next event, and not my style. I took 'em to my office. They've been sitting in my office for the last couple years. >> Who's received shoes like these by the way? I'm sure you guys have received shoes like these. There's some real fans there. >> So again, I'm sure many of you liked them. I had 'em in my office. I've offered it to so many of my engineers. Are you size 11? Do you want these? And they're unclaimed? >> So that's the only feature of Nutanix that you-- >> That's the only thing that hasn't worked, other than that things are going extremely well. >> Good job, man. Thanks a lot. >> Thanks. >> Thanks Vijay. So as we get to the final phase which is obviously as we embark on this multi-cloud journey and the complexity that comes with it which Dheeraj hinted towards in his session. You know we have to take a cautious, thoughtful approach here because we don't want to over set expectations because this will take us five, 10 years to really do a good job like we've done in the first act. And the good news is that the market is also really, really early here. It's just a fact. And so we've taken a tiered approach to it as we'll start the discussion with multi-cloud operations, and we've talked about the stack in the prior session which is about look across new clouds. So it's no longer Nutanix, Dell, Lenova, HP, Cisco as the new quote, unquote platforms. It's Nutanix, Xi, GCP, AWS, Azure as the new platforms. That's how we're designing the fabric going forward. On top of that, you obviously have the hybrid OS both on the data plane side and control plane side. Then what you're seeing with the advent of Calm doing a marketplace and automation as well as Beam doing governance and compliance is the fact that you'll see more and more such capabilities of multi-cloud operations burnt into the platform. And example of that is Calm with the new 5.7 release that they had. Launch supports multiple clouds both inside and outside, but the fundamental premise of Calm in the multi-cloud use case is to enable you to choose the right cloud for the right workload. That's the automation part. On the governance part, and this we kind of went through in the last half an hour with Dheeraj and Vijay on stage is something that's even more, if I can call it, you know first order because you get the provisioning and operations second. The first order is to say look whatever my developers have consumed off public cloud, I just need to first get our arm around to make sure that you know what am I spending, am I secure, and then when I get comfortable, then I am able to actually expand on it. And that's the power of Beam. And both Beam and Calm will be the yin and yang for us in our multi-cloud portfolio. And we'll have new products to complement that down the road, right? But along the way, that's the whole private cloud, public cloud. They're the two ends of the barbell, and over time, and we've been working on Xi for awhile, is this conviction that we've built talking to many customers that there needs to be another type of cloud. And this type of a cloud has to feel like a public cloud. It has to be architected like a public cloud, be consumed like a public cloud, but it needs to be an extension of my data center. It should not require any changes to my tooling. It should not require and changes to my operational infrastructure, and it should not require lift and shift, and that's a super hard problem. And this problem is something that a chunk of our R and D team has been burning the midnight wick on for the last year and a half. Because look this is not about taking our current OS which does a good job of scaling and plopping it into a Equinix or a third party data center and calling it a hybrid cloud. This is about rebuilding things in the OS so that we can deliver a true hybrid cloud, but at the same time, give those functionality back on premises so that even if you don't have a hybrid cloud, if you just have your own data centers, you'll still need new services like DR. And if you think about it, what are we doing? We're building a full blown multi-tenant virtual network designed in a modern way. Think about this SDN 2.0 because we have 10 years worth of looking backwards on how GCP has done it, or how Amazon has done it, and now sort of embodying some of that so that we can actually give it as part of this cloud, but do it in a way that's a seamless extension of the data center, and then at the same time, provide new services that have never been delivered before. Everyone obviously does failover and failback in DR it just takes months to do it. Our goal is to do it in hours or minutes. But even things such as test. Imagine doing a DR test on demand for you business needs in the middle of the day. And that's the real bar that we've set for Xi that we are working towards in early access later this summer with GA later in the year. And to talk more about this, let me invite some of our core architects working on it, Melina and Rajiv. (rock music) Good to see you guys. >> You're messing up the names again. >> Oh Rajiv, Vinny, same thing, man. >> You need to back up your memory from Xi. >> Yeah, we should. Okay, so what are we going to talk about, Vinny? >> Yeah, exactly. So today we're going to talk about how Xi is pushing the envelope and beyond the state of the art as you were saying in the industry. As part of that, there's a whole bunch of things that we have done starting with taking a private cloud, seamlessly extending it to the public cloud, and then creating a hybrid cloud experience with one-click delight. We're going to show that. We've done a whole bunch of engineering work on making sure the operations and the tooling is identical on both sides. When you graduate from a private cloud to a hybrid cloud environment, you don't want the environments to be different. So we've copied the environment for you with zero manual intervention. And finally, building on top of that, we are delivering DR as a service with unprecedented simplicity with one-click failover, one-click failback. We're going to show you one click test today. So Melina, why don't we start with showing how you go from a private cloud, seamlessly extend it to consume Xi. >> Sounds good, thanks Vinny. Right now, you're looking at my Prism interface for my on premises cluster. In one-click, I'm going to be able to extend that to my Xi cloud services account. I'm doing this using my my Nutanix credential and a password manager. >> Vinny: So here as you notice all the Nutanix customers we have today, we have created an account for them in Xi by default. So you don't have to log in somewhere and create an account. It's there by default. >> Melina: And just like that we've gone ahead and extended my data center. But let's go take a look at the Xi side and log in again with my my Nutanix credentials. We'll see what we have over here. We're going to be able to see two availability zones, one for on premises and one for Xi right here. >> Vinny: Yeah as you see, using a log in account that you already knew mynutanix.com and 30 seconds in, you can see that you have a hybrid cloud view already. You have a private cloud availability zone that's your own Prism central data center view, and then a Xi availability zone. >> Sunil: Got it. >> Melina: Exactly. But of course we want to extend my network connection from on premises to my Xi networks as well. So let's take a look at our options there. We have two ways of doing this. Both are one-click experience. With direct connect, you can create a dedicated network connection between both environments, or VPN you can use a public internet and a VPN service. Let's go ahead and enable VPN in this environment. Here we have two options for how we want to enable our VPN. We can bring our own VPN and connect it, or we will deploy a VPN for you on premises. We'll do the option where we deploy the VPN in one-click. >> And this is another small sign or feature that we're building net new as part of Xi, but will be burned into our core Acropolis OS so that we can also be delivering this as a stand alone product for on premises deployment as well, right? So that's one of the other things to note as you guys look at the Xi functionality. The goal is to keep the OS capabilities the same on both sides. So even if I'm building a quote, unquote multi data center cloud, but it's just a private cloud, you'll still get all the benefits of Xi but in house. >> Exactly. And on this second step of the wizard, there's a few inputs around how you want the gateway configured, your VLAN information and routing and protocol configuration details. Let's go ahead and save it. >> Vinny: So right now, you know what's happening is we're taking the private network that our customers have on premises and extending it to a multi-tenant public cloud such that our customers can use their IP addresses, the subnets, and bring their own IP. And that is another step towards making sure the operation and tooling is kept consistent on both sides. >> Melina: Exactly. And just while you guys were talking, the VPN was successfully created on premises. And we can see the details right here. You can track details like the status of the connection, the gateway, as well as bandwidth information right in the same UI. >> Vinny: And networking is just tip of the iceberg of what we've had to work on to make sure that you get a consistent experience on both sides. So Melina, why don't we show some of the other things we've done? >> Melina: Sure, to talk about how we preserve entities from my on-premises to Xi, it's better to use my production environment. And first thing you might notice is the log in screen's a little bit different. But that's because I'm logging in using my ADFS credentials. The first thing we preserved was our users. In production, I'm running AD obviously on-prem. And now we can log in here with the same set of credentials. Let me just refresh this. >> And this is the Active Directory credential that our customers would have. They use it on-premises. And we allow the setting to be set on the Xi cloud services as well, so it's the same set of users that can access both sides. >> Got it. There's always going to be some networking problem onstage. It's meant to happen. >> There you go. >> Just launching it again here. I think it maybe timed out. This is a good sign that we're running on time with this presentation. >> Yeah, yeah, we're running ahead of time. >> Move the demos quicker, then we'll time out. So essentially when you log into Xi, you'll be able to see what are the environment capabilities that we have copied to the Xi environment. So for example, you just saw that the same user is being used to log in. But after the use logs in, you'll be able to see their images, for example, copied to the Xi side. You'll be able to see their policies and categories. You know when you define these policies on premises, you spend a lot of effort and create them. And now when you're extending to the public cloud, you don't want to do it again, right? So we've done a whole lot of syncing mechanisms making sure that the two sides are consistent. >> Got it. And on top of these policies, the next step is to also show capabilities to actually do failover and failback, but also do integrated testing as part of this compatibility. >> So one is you know just the basic job of making the environments consistent on two sides, but then it's also now talking about the data part, and that's what DR is about. So if you have a workload running on premises, we can take the data and replicate it using your policies that we've already synced. Once the data is available on the Xi side, at that point, you have to define a run book. And the run book essentially it's a recovery plan. And that says okay I already have the backups of my VMs in case of disaster. I can take my recovery plan and hit you know either failover or maybe a test. And then my application comes up. First of all, you'll talk about the boot order for your VMs to come up. You'll talk about networking mapping. Like when I'm running on-prem, you're using a particular subnet. You have an option of using the same subnet on the Xi side. >> Melina: There you go. >> What happened? >> Sunil: It's finally working.? >> Melina: Yeah. >> Vinny, you can stop talking. (audience clapping) By the way, this is logging into a live Xi data center. We have two regions West Coat, two data centers East Coast, two data centers. So everything that you're seeing is essentially coming off the mainstream Xi profile. >> Vinny: Melina, why don't we show the recovery plan. That's the most interesting piece here. >> Sure. The recovery plan is set up to help you specify how you want to recover your applications in the event of a failover or a test failover. And it specifies all sorts of details like the boot sequence for the VMs as well as network mappings. Some of the network mappings are things like the production network I have running on premises and how it maps to my production network on Xi or the test network to the test network. What's really cool here though is we're actually automatically creating your subnets on Xi from your on premises subnets. All that's part of the recovery plan. While we're on the screen, take a note of the .100 IP address. That's a floating IP address that I have set up to ensure that I'm going to be able to access my three tier web app that I have protected with this plan after a failover. So I'll be able to access it from the public internet really easily from my phone or check that it's all running. >> Right, so given how we make the environment consistent on both sides, now we're able to create a very simple DR experience including failover in one-click, failback. But we're going to show you test now. So Melina, let's talk about test because that's one of the most common operations you would do. Like some of our customers do it every month. But usually it's very hard. So let's see how the experience looks like in what we built. >> Sure. Test and failover are both one-click experiences as you know and come to expect from Nutanix. You can see it's failing over from my primary location to my recovery location. Now what we're doing right now is we're running a series of validation checks because we want to make sure that you have your network configured properly, and there's other configuration details in place for the test to be successful. Looks like the failover was initiated successfully. Now while that failover's happening though, let's make sure that I'm going to be able to access my three tier web app once it fails over. We'll do that by looking at my network policies that I've configured on my test network. Because I want to access the application from the public internet but only port 80. And if we look here under our policies, you can see I have port 80 open to permit. So that's good. And if I needed to create a new one, I could in one click. But it looks like we're good to go. Let's go back and check the status of my recovery plan. We click in, and what's really cool here is you can actually see the individual tasks as they're being completed from that initial validation test to individual VMs being powered on as part of the recovery plan. >> And to give you guys an idea behind the scenes, the entire recovery plan is actually a set of workflows that are built on Calm's automation engine. So this is an example of where we're taking some of power of workflow and automation that Clam has come to be really strong at and burning that into how we actually operationalize many of these workflows for Xi. >> And so great, while you were explaining that, my three tier web app has restarted here on Xi right in front of you. And you can see here there's a floating IP that I mentioned early that .100 IP address. But let's go ahead and launch the console and make sure the application started up correctly. >> Vinny: Yeah, so that .100 IP address is a floating IP that's a publicly visible IP. So it's listed here, 206.80.146.100. And that's essentially anybody in the audience here can go use your laptop or your cell phone and hit that and start to work. >> Yeah so by the way, just to give you guys an idea while you guys maybe use the IP to kind of hit it, is a real set of VMs that we've just failed over from Nutanix's corporate data center into our West region. >> And this is running live on the Xi cloud. >> Yeah, you guys should all go and vote. I'm a little biased towards Xi, so vote for Xi. But all of them are really good features. >> Scroll up a little bit. Let's see where Xi is. >> Oh Xi's here. I'll scroll down a little bit, but keep the... >> Vinny: Yes. >> Sunil: You guys written a block or something? >> Melina: Oh good, it looks like Xi's winning. >> Sunil: Okay, great job, Melina. Thank you so much. >> Thank you, Melina. >> Melina: Thanks. >> Thank you, great job. Cool and calm under pressure. That's good. So that was Xi. What's something that you know we've been doing around you know in addition to taking say our own extended enterprise public cloud with Xi. You know we do recognize that there are a ton of workloads that are going to be residing on AWS, GCP, Azure. And to sort of really assist in the try and call it transformation of enterprises to choose the right cloud for the right workload. If you guys remember, we actually invested in a tool over last year which became actually quite like one of those products that took off based on you know groundswell movement. Most of you guys started using it. It's essentially extract for VMs. And it was this product that's obviously free. It's a tool. But it enables customers to really save tons of time to actually migrate from legacy environments to Nutanix. So we took that same framework, obviously re-platformed it for the multi-cloud world to kind of solve the problem of migrating from AWS or GCP to Nutanix or vice versa. >> Right, so you know, Sunil as you said, moving from a private cloud to the public cloud is a lift and shift, and it's a hard you know operation. But moving back is not only expensive, it's a very hard problem. None of the cloud vendors provide change block tracking capability. And what that means is when you have to move back from the cloud, you have an extended period of downtime because there's now way of figuring out what's changing while you're moving. So you have to keep it down. So what we've done with our app mobility product is we have made sure that, one, it's extremely simple to move back. Two, that the downtime that you'll have is as small as possible. So let me show you what we've done. >> Got it. >> So here is our app mobility capability. As you can see, on the left hand side we have a source environment and target environment. So I'm calling my AWS environment Asgard. And I can add more environments. It's very simple. I can select AWS and then put in my credentials for AWS. It essentially goes and discovers all the VMs that are running and all the regions that they're running. Target environment, this is my Nutanix environment. I call it Earth. And I can add target environment similarly, IP address and credentials, and we do the rest. Right, okay. Now migration plans. I have Bifrost one as my migration plan, and this is how migration works. First you create a plan and then say start seeding. And what it does is takes a snapshot of what's running in the cloud and starts migrating it to on-prem. Once it is an on-prem and the difference between the two sides is minimal, it says I'm ready to cutover. At that time, you move it. But let me show you how you'd create a new migration plan. So let me name it, Bifrost 2. Okay so what I have to do is select a region, so US West 1, and target Earth as my cluster. This is my storage container there. And very quickly you can see these are the VMs that are running in US West 1 in AWS. I can select SQL server one and two, go to next. Right now it's looking at the target Nutanix environment and seeing it had enough space or not. Once that's good, it gives me an option. And this is the step where it enables the Nutanix service of change block tracking overlaid on top of the cloud. There are two options one is automatic where you'll give us the credentials for your VMs, and we'll inject our capability there. Or manually you could do. You could copy the command either in a windows VM or Linux VM and run it once on the VM. And change block tracking since then in enabled. Everything is seamless after that. Hit next. >> And while Vinny's setting it up, he said a few things there. I don't know if you guys caught it. One of the hardest problems in enabling seamless migration from public cloud to on-prem which makes it harder than the other way around is the fact that public cloud doesn't have things like change block tracking. You can't get delta copies. So one of the core innovations being built in this app mobility product is to provide that overlay capability across multiple clouds. >> Yeah, and the last step here was to select the target network where the VMs will come up on the Nutanix environment, and this is a summary of the migration plan. You can start it or just save it. I'm saving it because it takes time to do the seeding. I have the other plan which I'll actually show the cutover with. Okay so now this is Bifrost 1. It's ready to cutover. We started it four hours ago. And here you can see there's a SQL server 003. Okay, now I would like to show the AWS environment. As you can see, SQL server 003. This VM is actually running in AWS right now. And if you go to the Prism environment, and if my login works, right? So we can go into the virtual machine view, tables, and you see the VM is not there. Okay, so we go back to this, and we can hit cutover. So this is essentially telling our system, okay now it the time. Quiesce the VM running in AWS, take the last bit of changes that you have to the database, ship it to on-prem, and in on-prem now start you know configure the target VM and start bringing it up. So let's go and look at AWS and refresh that screen. And you should see, okay so the SQL server is now stopping. So that means it has quiesced and stopping the VM there. If you go back and look at the migration plan that we had, it says it's completed. So it has actually migrated all the data to the on-prem side. Go here on-prem, you see the production SQL server is running already. I can click launch console, and let's see. The Windows VM is already booting up. >> So essentially what Vinny just showed was a live cutover of an AWS VM to Nutanix on-premises. >> Yeah, and what we have done. (audience clapping) So essentially, this is about making two things possible, making it simple to migrate from cloud to on-prem, and making it painless so that the downtime you have is very minimal. >> Got it, great job, Vinny. I won't forget your name again. So last step. So to really talk about this, one of our favorite partners and customers has been in the cloud environment for a long time. And you know Jason who's the CTO of Cyxtera. And he'll introduce who Cyxtera is. Most of you guys are probably either using their assets or not without knowing their you know the new name. But is someone that was in the cloud before it was called cloud as one of the original founders and technologists behind Terremark, and then later as one of the chief architects of VMware's cloud. And then they started this new company about a year or so ago which I'll let Jason talk about. This journey that he's going to talk about is how a partner, slash customer is working with us to deliver net new transformations around the traditional industry of colo. Okay, to talk more about it, Jason, why don't you come up on stage, man? (rock music) Thank you, sir. All right so Cyxtera obviously a lot of people don't know the name. Maybe just give a 10 second summary of why you're so big already. >> Sure, so Cyxtera was formed, as you said, about a year ago through the acquisition of the CenturyLink data centers. >> Sunil: Which includes Savvis and a whole bunch of other assets. >> Yeah, there's a long history of those data centers, but we have all of them now as well as the software companies owned by Medina capital. So we're like the world's biggest startup now. So we have over 50 data centers around the world, about 3,500 customers, and a portfolio of security and analytics software. >> Sunil: Got it, and so you have this strategy of what we're calling revolutionizing colo deliver a cloud based-- >> Yeah so, colo hasn't really changed a lot in the last 20 years. And to be fair, a lot of what happens in data centers has to have a person physically go and do it. But there are some things that we can simplify and automate. So we want to make things more software driven, so that's what we're doing with the Cyxtera extensible data center or CXD. And to do that, we're deploying software defined networks in our facilities and developing automations so customers can go and provision data center services and the network connectivity through a portal or through REST APIs. >> Got it, and what's different now? I know there's a whole bunch of benefits with the integrated platform that one would not get in the traditional kind of on demand data center environment. >> Sure. So one of the first services we're launching on CXD is compute on demand, and it's powered by Nutanix. And we had to pick an HCI partner to launch with. And we looked at players in the space. And as you mentioned, there's actually a lot of them, more than I thought. And we had a lot of conversations, did a lot of testing in the lab, and Nutanix really stood out as the best choice. You know Nutanix has a lot of focus on things like ease of deployment. So it's very simple for us to automate deploying compute for customers. So we can use foundation APIs to go configure the servers, and then we turn those over to the customer which they can then manage through Prism. And something important to keep in mind here is that you know this isn't a manged service. This isn't infrastructure as a service. The customer has complete control over the Nutanix platform. So we're turning that over to them. It's connected to their network. They're using their IP addresses, you know their tools and processes to operate this. So it was really important for the platform we picked to have a really good self-service story for things like you know lifecycle management. So with one-click upgrade, customers have total control over patches and upgrades. They don't have to call us to do it. You know they can drive that themselves. >> Got it. Any other final words around like what do you see of the partnership going forward? >> Well you know I think this would be a great platform for Xi, so I think we should probably talk about that. >> Yeah, yeah, we should talk about that separately. Thanks a lot, Jason. >> Thanks. >> All right, man. (audience clapping) So as we look at the full journey now between obviously from invisible infrastructure to invisible clouds, you know there is one thing though to take away beyond many updates that we've had so far. And the fact is that everything that I've talked about so far is about completing a full blown true IA stack from all the way from compute to storage, to vitualization, containers to network services, and so forth. But every public cloud, a true cloud in that sense, has a full blown layer of services that's set on top either for traditional workloads or for new workloads, whether it be machine-learning, whether it be big data, you know name it, right? And in the enterprise, if you think about it, many of these services are being provisioned or provided through a bunch of our partners. Like we have partnerships with Cloudera for big data and so forth. But then based on some customer feedback and a lot of attention from what we've seen in the industry go out, just like AWS, and GCP, and Azure, it's time for Nutanix to have an opinionated view of the past stack. It's time for us to kind of move up the stack with our own offering that obviously adds value but provides some of our core competencies in data and takes it to the next level. And it's in that sense that we're actually launching Nutanix Era to simplify one of the hardest problems in enterprise IT and short of saving you from true Oracle licensing, it solves various other Oracle problems which is about truly simplifying databases much like what RDS did on AWS, imagine enterprise RDS on demand where you can provision, lifecycle manage your database with one-click. And to talk about this powerful new functionality, let me invite Bala and John on stage to give you one final demo. (rock music) Good to see you guys. >> Yep, thank you. >> All right, so we've got lots of folks here. They're all anxious to get to the next level. So this demo, really rock it. So what are we going to talk about? We're going to start with say maybe some database provisioning? Do you want to set it up? >> We have one dream, Sunil, one single dream to pass you off, that is what Nutanix is today for IT apps, we want to recreate that magic for devops and get back those weekends and freedom to DBAs. >> Got it. Let's start with, what, provisioning? >> Bala: Yep, John. >> Yeah, we're going to get in provisioning. So provisioning databases inside the enterprise is a significant undertaking that usually involves a myriad of resources and could take days. It doesn't get any easier after that for the longterm maintence with things like upgrades and environment refreshes and so on. Bala and team have been working on this challenge for quite awhile now. So we've architected Nutanix Era to cater to these enterprise use cases and make it one-click like you said. And Bala and I are so excited to finally show this to the world. We think it's actually Nutanix's best kept secrets. >> Got it, all right man, let's take a look at it. >> So we're going to be provisioning a sales database today. It's a four-step workflow. The first part is choosing our database engine. And since it's our sales database, we want it to be highly available. So we'll do a two node rack configuration. From there, it asks us where we want to land this service. We can either land it on an existing service that's already been provisioned, or if we're starting net new or for whatever reason, we can create a new service for it. The key thing here is we're not asking anybody how to do the work, we're asking what work you want done. And the other key thing here is we've architected this concept called profiles. So you tell us how much resources you need as well as what network type you want and what software revision you want. This is actually controlled by the DBAs. So DBAs, and compute administrators, and network administrators, so they can set their standards without having a DBA. >> Sunil: Got it, okay, let's take a look. >> John: So if we go to the next piece here, it's going to personalize their database. The key thing here, again, is that we're not asking you how many data files you want or anything in that regard. So we're going to be provisioning this to Nutanix's best practices. And the key thing there is just like these past services you don't have to read dozens of pages of best practice guides, it just does what's best for the platform. >> Sunil: Got it. And so these are a multitude of provisioning steps that normally one would take I guess hours if not days to provision and Oracle RAC data. >> John: Yeah, across multiple teams too. So if you think about the lifecycle especially if you have onshore and offshore resources, I mean this might even be longer than days. >> Sunil: Got it. And then there are a few steps here, and we'll lead into potentially the Time Machine construct too? >> John: Yeah, so since this is a critical database, we want data protection. So we're going to be delivering that through a feature called Time Machines. We'll leave this at the defaults for now, but the key thing to not here is we've got SLAs that deliver both continuous data protection as well as telescoping checkpoints for historical recovery. >> Sunil: Got it. So that's provisioning. We've kicked off Oracle, what, two node database and so forth? >> John: Yep, two node database. So we've got a handful of tasks that this is going to automate. We'll check back in in a few minutes. >> Got it. Why don't we talk about the other aspects then, Bala, maybe around, one of the things that, you know and I know many of you guys have seen this, is the fact that if you look at database especially Oracle but in general even SQL and so forth is the fact that look if you really simplified it to a developer, it should be as simple as I copy my production database, and I paste it to create my own dev instance. And whenever I need it, I need to obviously do it the opposite way, right? So that was the goal that we set ahead for us to actually deliver this new past service around Era for our customers. So you want to talk a little bit more about it? >> Sure Sunil. If you look at most of the data management functionality, they're pretty much like flavors of copy paste operations on database entities. But the trouble is the seemingly simple, innocuous operations of our daily lives becomes the most dreaded, complex, long running, error prone operations in data center. So we actually planned to tame this complexity and bring consumer grade simplicity to these operations, also make these clones extremely efficient without compromising the quality of service. And the best part is, the customers can enjoy these services not only for databases running on Nutanix, but also for databases running on third party systems. >> Got it. So let's take a look at this functionality of I guess snapshoting, clone and recovery that you've now built into the product. >> Right. So now if you see the core feature of this whole product is something we call Time Machine. Time Machine lets the database administrators actually capture the database tape to the granularity of seconds and also lets them create clones, refresh them to any point in time, and also recover the databases if the databases are running on the same Nutanix platform. Let's take a look at the demo with the Time Machine. So here is our customer relationship database management database which is about 2.3 terabytes. If you see, the Time Machine has been active about four months, and SLA has been set for continuously code revision of 30 days and then slowly tapers off 30 days of daily backup and weekly backups and so on, so forth. On the right hand side, you will see different colors. The green color is pretty much your continuously code revision, what we call them. That lets you to go back to any point in time to the granularity of seconds within those 30 days. And then the discreet code revision lets you go back to any snapshot of the backup that is maintained there kind of stuff. In a way, you see this Time Machine is pretty much like your modern day car with self driving ability. All you need to do is set the goals, and the Time Machine will do whatever is needed to reach up to the goal kind of stuff. >> Sunil: So why don't we quickly do a snapshot? >> Bala: Yeah, some of these times you need to create a snapshot for backup purposes, Time Machine has manual controls. All you need to do is give it a snapshot name. And then you have the ability to actually persist this snapshot data into a third party or object store so that your durability and that global data access requirements are met kind of stuff. So we kick off a snapshot operation. Let's look at what it is doing. If you see what is the snapshot operation that this is going through, there is a step called quiescing the databases. Basically, we're using application-centric APIs, and here it's actually RMAN of Oracle. We are using the RMan of Oracle to quiesce the database and performing application consistent storage snapshots with Nutanix technology. Basically we are fusing application-centric and then Nutanix platform and quiescing it. Just for a data point, if you have to use traditional technology and create a backup for this kind of size, it takes over four to six hours, whereas on Nutanix it's going to be a matter of seconds. So it almost looks like snapshot is done. This is full sensitive backup. You can pretty much use it for database restore kind of stuff. Maybe we'll do a clone demo and see how it goes. >> John: Yeah, let's go check it out. >> Bala: So for clone, again through the simplicity of command Z command, all you need to do is pick the time of your choice maybe around three o'clock in the morning today. >> John: Yeah, let's go with 3:02. >> Bala: 3:02, okay. >> John: Yeah, why not? >> Bala: You select the time, all you need to do is click on the clone. And most of the inputs that are needed for the clone process will be defaulted intelligently by us, right? And you have to make two choices that is where do you want this clone to be created with a brand new VM database server, or do you want to place that in your existing server? So we'll go with a brand new server, and then all you need to do is just give the password for you new clone database, and then clone it kind of stuff. >> Sunil: And this is an example of personalizing the database so a developer can do that. >> Bala: Right. So here is the clone kicking in. And what this is trying to do is actually it's creating a database VM and then registering the database, restoring the snapshot, and then recoding the logs up to three o'clock in the morning like what we just saw that, and then actually giving back the database to the requester kind of stuff. >> Maybe one finally thing, John. Do you want to show us the provision database that we kicked off? >> Yeah, it looks like it just finished a few seconds ago. So you can see all the tasks that we were talking about here before from creating the virtual infrastructure, and provisioning the database infrastructure, and configuring data protection. So I can go access this database now. >> Again, just to highlight this, guys. What we just showed you is an Oracle two node instance provisioned live in a few minutes on Nutanix. And this is something that even in a public cloud when you go to RDS on AWS or anything like that, you still can't provision Oracle RAC by the way, right? But that's what you've seen now, and that's what the power of Nutanix Era is. Okay, all right? >> Thank you. >> Thanks. (audience clapping) >> And one final thing around, obviously when we're building this, it's built as a past service. It's not meant just for operational benefits. And so one of the core design principles has been around being API first. You want to show that a little bit? >> Absolutely, Sunil, this whole product is built on API fist architecture. Pretty much what we have seen today and all the functionality that we've been able to show today, everything is built on Rest APIs, and you can pretty much integrate with service now architecture and give you your devops experience for your customers. We do have a plan for full fledged self-service portal eventually, and then make it as a proper service. >> Got it, great job, Bala. >> Thank you. >> Thanks, John. Good stuff, man. >> Thanks. >> All right. (audience clapping) So with Nutanix Era being this one-click provisioning, lifecycle management powered by APIs, I think what we're going to see is the fact that a lot of the products that we've talked about so far while you know I've talked about things like Calm, Flow, AHV functionality that have all been released in 5.5, 5.6, a bunch of the other stuff are also coming shortly. So I would strongly encourage you guys to kind of space 'em, you know most of these products that we've talked about, in fact, all of the products that we've talked about are going to be in the breakout sessions. We're going to go deep into them in the demos as well as in the pods. So spend some quality time not just on the stuff that's been shipping but also stuff that's coming out. And so one thing to keep in mind to sort of takeaway is that we're doing this all obviously with freedom as the goal. But from the products side, it has to be driven by choice whether the choice is based on platforms, it's based on hypervisors, whether it's based on consumption models and eventually even though we're starting with the management plane, eventually we'll go with the data plane of how do I actually provide a multi-cloud choice as well. And so when we wrap things up, and we look at the five freedoms that Ben talked about. Don't forget the sixth freedom especially after six to seven p.m. where the whole goal as a Nutanix family and extended family make sure we mix it up. Okay, thank you so much, and we'll see you around. (audience clapping) >> PA Announcer: Ladies and gentlemen, this concludes our morning keynote session. Breakouts will begin in 15 minutes. ♪ To do what I want ♪

>> Male Narrator: Live from Copenhagen, Denmark. It's theCUBE, covering KubeCon and CloudNativeCon Europe 2018, brought to you by the Cloud Native Computing Foundation, and its ecosystem partners. >> Hello everyone, welcome back, this is theCUBE's exclusive coverage of KubeCon 2018. Part of the CNCF Cloud Native Computing Foundation, part of the Linux Foundation, this is theCUBE. I'm John Furrier with co-host, with Lauren Cooney, founder of Spark Labs, helping me out as analyst this week, great to have our next guest, shared acquaintance, Abby Kearns, Executive Director of Cloud Foundry Foundation, Cube alumni, welcome back! >> Thanks for having me back again. >> Got your voice, you're losing your voice from all the talking you're doing here on Cloud Foundry. >> Cloud cloud cloud all the time. >> So we were talking yesterday, I want to get you on because you guys have done some research. >> Yeah. >> On cloud, and we were chatting about, I should give you a plug on the opening segment yesterday about some of the things you're finding about Kubernetes. Certainly in our bubble, it's so passe now, we're moving on to STO and CUBE Flow, but you have research that, you know, is mainstream tech, outside of the bubble we live in, is actually now evolving into the first inning of Kubernetes, if you will. What does the research say, what's that all about? >> Well, the research says, trying not to apologize already, my voice is all over the place, so we've been tracking containers for now almost three years and I remember three years ago, everyone's like, "Okay, well we've talked about Docker for years now, "it's so passe," but when you got beyond the bubbles where tech is, people were just like starting to think about it. And so containers are just now getting to where people are either using them or using them as proof of concept. But Kubernetes has become a really big part of the conversation the last year, and it's continuing to take it by storm, and so we're starting to see organizations that are interested in it, but in terms of adoption and awareness beyond just the core central, there's still a massive education gap there. And a really big opportunity to educate people, not only on these tools, but what they really want to know is how do these tools help them get through their day and accomplish their work? >> So essentially, there's a lag of sequence of early adopters, fast followers, and now mainstream. Mainstream are getting accustomed to containers, now hitting up on Kubernetes, we're still pushing the front line. >> Well I think, you know, we are, and I think this is one of my observations as well, Abby, is that we look at these technologies, right? And I'm in the hallways, and I'm talking to folks in the cab line and things along those lines, and they're just here to actually learn about the technology, about Kubernetes, they actually don't understand it fully yet, and they're trying to figure out really what to do with it, and their companies have sent them here. And then it's, you know, you talk to the folks that are, you know, kind of were here for the long haul and were there at the beginning of CNCF and things along those lines, and they're like, "Oh yeah, everyone's adopted it," right? So you've got these two spectrums and I think my question to you is, what do you think is needed for this to really cross the chasm? >> Well, I'll actually answer that with another piece of data We do global research, and one of the things we found, we ask about, "What are your priorities for the next "couple of years?" and resoundingly across every persona, so developers, operators, IT decision makers, executives, their top three priorities for the next two years is continuous delivery. So let's think about that: continuous delivery for me is a priority; building that culture change is a priority; and so the tech is there to supplement that. But the real work, the hard work, is a priority, and I think that's exactly where it should be. So as these organizations really implement that continuous delivery methodology, they're going to pull these technologies in to supplement that. >> So it's not a technology problem, it's a people problem. But your point is, to the industry, let's be realistic and understand the segments that are adopting at what pace, matching education or evangelism or transformation at the right piece of the journey. >> Yeah, I mean all this tech, even Cloud Foundry, is a supplemental tool. >> Yeah. >> The hard work is really continuous delivery, building in that culture change, making software a core part of your business, making technology part of your day-to-day conversation, and that heavy lift has to come in order for any of these technologies to be successful. >> You guys have done a great job, I just want to say, Cloud Foundry, I want to give you some props. Congratulations on the work you've done. Take a minute to talk about some of the success. You're an ingredient in a lot of successful applications out there; what are some of the stats? How many people are using Cloud Foundry? What's some of the uptick, share some of the numbers of the performance with Cloud Foundry. >> Well, I mean we're in use of over half the Fortune 500 across every industry; what's been so phenomenal and so awesome about Cloud Foundry, and we really saw this at Summit, is all the industries that are using this to change. But what was interesting about our last summit, which we just had a couple of weeks ago, is all of these companies want to get on stage and not talk about the tech; they want to talk about the culture change. You know, hearing Boeing get on stage and say, "Actually, you know what the real work is "is the transformation we had to undergo "in order to do this work," and hear that over and over again, and it's so awesome to be part of that change because technology needs to be there to supplement that change and be part of that. But it's really great to see this come into fruition, like hearing the stories from Home Depot and Comcast and US Air Force and how it's fundamentally changing their businesses and helping them get out the door at scale, I mean that's really where the cool stuff happens. >> You've had great success there, and a lot of end users too, it's not like a bunch of one-offs. >> No. >> So how's the summit last week in Boston? >> It was amazing. We had half of our attendees at our summit are end users. And you know, the big high I get is like, hearing everyone talk about what they're doing and "This is what I did!" and stuff you've never heard of. Like, "Oh, I didn't realize you were using that," and "Oh, that's a really great way to use it "in very inventive ways," and so it really just refreshes you, like "Oh, this is what matters." The users and how they're using it and what they're going to do with the tech, I mean, isn't that why we're all here, right? And it's great, and they're creating such amazing technologies that it makes you energized about what's going on. >> Yeah, and I think it's amazing to me, cause I was actually at the Cloud Foundry summit as well, and there was one customer, I can't remember the name that got on stage, and they were using like, they had 2100 end users or something like that, developers, their company actually using Cloud Foundry, and I think that was the number, and I think it was really tremendous to see how many people inside of one company are actually using the technology across the board. It was really great. >> I mean, this is all about, I mean we're at a modern software era, and this is a whole new guard coming on board, and it's a whole new architecture. >> And it's a whole new way of thinking about it. Like, you know right now, we talk about how tech and there's a gap and we're pushing the tech and people are going to get there, but it's not going to be too long before the enterprises are pushing back and saying, "Hey, this is what I need, here's where I am, "I'm running at a scale you didn't think about yet." You know we're running, we have a lot of users that are running tens of thousands and thousands of applications: what about when they're in the hundreds of thousands of applications, and what does that look like? And they're saying, "Well I'm going to do this, "and here's what I need to do." >> There are going to be a lot of microservices. Abby, I got to ask you to end the segment. Thanks for coming on, I know you were rushed to come on, I appreciate you taking the time, you're super busy. What's your priorities for next year? Obviously you got a lot of successes under your belt. What's next, what are you going to check off the list this year? >> Well, inner operability is a big theme for me this year. And what does that mean, that means building bridges to other technologies and other projects, like the amazing work that's happening in CNCF and all those great technologies, so making sure that when those technologies mature, how do we bring those to the enterprise, and then really continuing to work on an ecosystem and work with our members and to really get more contributors around the table. >> Awesome, developers and contributors, dev plus contribute, thanks for coming on. >> My pleasure. >> Thanks Abby. >> You're contributing your insight and I know you've got the voice going, but appreciate you taking the time, so Kube conversations here at theCUBE here in Denmark for KubeCon 2018, part of CNCF. I'm John Furrier with Lauren Cooney, we'll be right back after this short break. (techno music)

>> Announcer: Live, from Copenhagen, Denmark. It's theCUBE! Covering KubeCon and CloudNativeCon Europe 2018. Brought to you by the Cloud Native Computing Foundation, and its Ecosystem partners. >> Hi everyone, welcome back, this is theCUBE's exclusive coverage of the Linux Foundation's Cloud Native Compute Foundation KubeCon 2018 in Europe. I'm John Furrier, host of theCUBE and we're here with two Google folks. JD Velazquez who's the Product Manager for Stackdriver, got some news on that we're going to cover, and David Aronchick, who's the co-founder of Kubeflow, also with Google, news here on that. Guys, welcome to theCUBE, thanks for coming on. >> Thank you John. >> Thank you very much. >> So we're going to have Google Next coming out, theCUBE will be there this summer, looking forward to digging in to all the enterprise traction you guys have, and we had some good briefings at Google. Ton of movement on the Cloud for Google, so congratulations. >> JD: Thank you. >> Open source is not new to Google. This is a big show for you guys. What's the focus, you've got some news on Stackdriver, and Kubeflow. Kubeflow, not Cube flow, that's our flow. (laughing) David, share some of the news and then we'll get into Stackdriver. >> Absolutely, so Kubeflow is a brand new project. We launched it in December, and it is basically how to make machine learning stacks easy to use and deploy and maintain on Kubernetes. So we're not launching anything new. We support TensorFlow and PyTorch, Caffe, all the tools that you're familiar with today. But we use all the native APIs and constructs that Kubernetes rides to make it very easy and to let data scientists and researchers focus on what they do great, and let the I.T. Ops people deploy and manage these stacks. >> So simplifying the interactions and cross-functionality of the apps. Using Kubernetes. >> Exactly, when you go and talk to any researcher out there or data scientist, what you'll find is that while the model, TensorFlow, or Pytorch or whatever, that gets a little bit of the attention. 95% of the time is spent in all the other elements of the pipeline. Transforming your data, ingesting it, experimenting, visualizing. And then rolling it out toward production. What we want to do with Kubeflow is give everyone a standard way to interact with those, to interact with all those components. And give them a great workflow for doing so. >> That's great, and the Stackdriver news, what's the news we got going on? >> We're excited, we just announced the beta release of Stackdriver Kubernetes monitoring, which provides very rich and comprehensive observability for Kubernetes. So this is essentially simplifying operations for developers and operators. It's a very cool solution, it integrates many signals across the Kubernetes environment, including metrics, logs, events, as well as metadata. So what it allows is for you to really inspect your Kubernetes environment, regardless of the role, and regardless of where your deployment is running it. >> David is bringing up just the use cases. I just, my mind is exploding, 'cause you think about what Tensorflow is to a developer, and all the goodness that's going on with the app layer. The monitoring and the instrumentation is a critical piece, because Kubernetes is going to bring the people what is thousands and thousands of new services. So, how do you instrument that? I mean, you got to know, I want to provision this service dynamically, that didn't exist. How do you measure that, I mean this is, is this the challenge you guys are trying to figure out here? >> Yeah, for sure John. The great thing here is that we, and at Google primarily, many of our ancillary practices go beyond monitoring. It really is about observability, which I would describe more as a property of a system. How do you, are able to collect all these many signals to help you diagnose the production failure, and to get information about usage and so forth. So we do all of that for you in your Kubernetes environment, right. We take that toil away from the developer or the operator. Now, a cool thing is that you can also instrument your application in open source. You can use Prometheus, and we have an integration for that, so anything you've done in a Prometheus instrumentation, now you can bring into the cloud as needed. >> Tell about this notion, everyone gets that, oh my God, Google's huge. You guys are very open, you're integrating well. Talk about the guiding principles you guys have when you think about Prometheus as an example. Integrating in with these other projects. How are you guys treating these other projects? What's the standard practice? API Base? Is there integration plans? How do you guys address that question? >> Yeah, at a high level I would say, at Google, we really believe in contributing and helping grow open communities. I think that the best way to maintain a community open and portable is to help it grow. And Prometheus particularly, and Kubernetes of course, is a very vibrant community in that sense. So we are, from the start, designing our systems to be able to have integration, via APIs and so on, but also contributing directly to the projects. >> And I think that one thing that's just leveraging off that exact point, y'know, we realize what the world looks like. There's literally zero customers out there, like, "Well, I want be all in on one cloud. "Y'know, that 25 million dollar data center "I spent last year building. "Yeah, I'll toss that out so that I can get, "y'know, some special thing." The reality is, people are multi-cloud. And the only way to solve any problem is with these very open standards that work wherever people are. And that's very much core to our philosophy. >> Well, I mean, I've been critical of multi-cloud, by the definition. Statistically, if I'm on Azure, with 365, that's Azure. If I'm running something on Amazon, those are two clouds, they're not multi-cloud, by my definition. Which brings up where this is going, which is latency and portability, which you guys are really behind. How are you guys looking at that, because you mentioned observation. Let's talk about the observation space of clouds. How are you guys looking at, 'cause that's what people are talking about. When are we going to get to the future state, which is, I need to have workload portability, in real time, if I want to move something from Azure to AWS or Google Cloud, that would be cool. Can't do that today. >> That is actually the core of what we did around Kubeflow. What we are able to do is describe in code all the layers of your pipeline, all the steps of your pipeline. That works based on any conformant Kubernetes cluster. So, you have a Kubernetes conformant cluster on Azure, or on AWS, or on Google Cloud, or on your laptop, or in your private data center, that's great. And to be clear, I totally agree. I don't think that having single workloads spread across cloud, that's not just unrealistic, because of all the things you identified. Latency, variability, unknown failures, y'know. Cap theorem is a thing because, y'know, it's well-known. But what people want to do is, they want to take advantage of different clouds for the efforts that they provide. Maybe my data is here, maybe I have a legal reason, maybe this particular cloud has a unique chip, or unique service-- >> Use cases can drive it. >> Exactly, and then I can take my workload, which has been described in code and deploy it to that place where it makes sense. Keeping it within a single cloud, but as an organization I'll use multiple clouds together. >> Yeah, I agree, and the data's key, because if you can have data moving between clouds, I think that's something I would like to see, because that's going to be, because the metadata you mentioned is a real critical piece of all these apps. Whether it's instrumentation logging, and/or, y'know, provisioning new services. >> Yeah, and as soon as you have, as David is mentioning, if you have deployments on, y'know, with public or private clouds, then the difficult part is that of severability, that we were talking before. Because now you're trying to stitch together data, and tools to help you get that diagnosed, or get signals when you need them. This is what we're doing with Stackdriver Kubernetes monitoring, precisely. >> Y'know, we're early days in the cloud. It stills feels like we're 10 years in, but, y'know, a lot of people are now coming to realize cloud native, so. Y'know, I'm not a big fan of the whole, y'know, Amazon, although they do say Amazon's winning, they are doing quite well with the cloud, 'cause they're a cloud. It's early days, and you guys are doing some really specific good things with the cloud, but you don't have the breadth of services, say, Amazon has. And you guys are above board about that. You're like, "Hey, we're not trying to meet them "speed for speed on services." But you do certain things really, really well. You mentioned SRE. Site Reliability Engineers. This is a scale best practice that you guys have bringing to the table. But yet the customers are learning about Kubernetes. Some people who have never heard of it before say, "Hey, what's this Kubernetes thing?" >> Right. >> What is your perspectives on the relevance of Kubernetes at this point in history? Because it really feels like a critical mass, de facto, standard movement where everyone's getting behind Kubernetes, for all the right reasons. It feels a lot like interoperability is here. Thoughts on Kubernetes' relevance. >> Well I think that Alexis Richardson summed it up great today, the chairperson of the technical oversight committee. The reality is that what we're looking for, what operators and software engineers have been looking for forever, is clean lines between the various concerns. So as you think about the underlying infrastructure, and then you think about the applications that run on top of that, potentially services that run on top of that, then you think about applications, then you think about how that shows up to end users. Before, if you're old like me, you remember that you buy a $50,000 machine and stick it in the corner, and you'd stack everything on there, right? That never works, right? The power supply goes out, the memory goes out, this particular database goes out. Failure will happen. The only way to actually build a system that is reliable, that can meet your business needs, is by adopting something more cloud native, where if any particular component fails, your system can recover. If you have business requirements that change, you can move very quickly and adapt. Kubernetes provides a rich, portable, common set of APIs, that do work everywhere. And as a result, you're starting to see a lot of adoption, because it gives people that opportunity. But I think, y'know and let me hand off to JD here, y'know, the next layer up is about observability. Because without observing what's going on in each of those stacks, you're not going to have any kind of-- >> Well, programmability comes behind it, to your point. Talk about that, that's a huge point. >> Yeah, and just to build on what David is saying, one thing that is unique about Google is that we've been doing for more than a decade now, we've been very good at being able to provide innovative services without compromising reliability. Right, and so what we're doing is in that commitment, and you see that with Kubernetes and Istio, we're externalizing many of our, y'know, opinionated infrastructure, and platforms in that sense, but it's not just the platforms. You need those methodologies and best practices. And now the toolset. So that's what we're doing now, precisely. >> And you guys have made great strides, just to kind of point out to the folks watching, in the enterprise, I know you've got a lot more work to do but you're pedaling as fast as you can. I want to ask you specifically around this, because again, we're still early days with the cloud, if you think about it, there are now table stakes that are on the table that you got to get done. Check boxes if you will. Certainly on the government side there's like, compliance issues, and you guys are now checking those boxes. What is the key thing, 'cause you guys are operating at a scale that enterprises can't even fathom. I mean, millions of services, on and on up a huge scale. That's going to be helpful for them down the road, no doubt about it. But today, what is the Google table stakes that are done, and what are enterprises need to have for table stakes to do cloud native right, from your perspective? >> Well, I think more than anything, y'know, I agree with you. The reality is all the hyperscale cloud providers have the same table stakes, all the check boxes are checked, we're ready to go. I think what will really differentiate and move the ball forward for so many people is this adoption of cloud native. And really, how cloud native is your cloud, right? How much do you need to spin up an entire SRE team like Netflix in order to operate in the Netflix model of, y'know, complete automation and building your own services and things like that. Does your cloud help you get cloud native? And I think that's where we really want to lean in. It's not about IAS anymore, it's about does your cloud support the reliability, support the distribution, all the various services, in order to help you move even faster and achieve higher velocity. >> And standing up that is critical, because now these applications are the business model of companies, when you talk about digital. So I tweeted, I want to get your reaction to this, yesterday I got a quote I overheard from a person here in the hallways. "I need to get away from VPNs and firewalls. "I need user application layer security "with unphishable access, otherwise I'm never safe." Again this talks about the perimeterless cloud, spearphishing is really hot right now, people are getting killed with security concerns. So, I'm going to stop if I'm enterprise, I'm going to say, "Hold on, I'm not going," Y'know, I'm going to proceed with caution. What are you guys doing to take away the fear, and also the reality that as you provision all these, stand up all this infrastructure, services for customers, what are you guys doing to prevent phishing attacks from happening, security concerns, what's the Google story? >> So I think that more than anything, what we're trying to do is exactly what JD just said, which is externalize all the practices that we have. So, for example, at Google we have all sorts of internal tools that we've used, and internal practices. For example, we just published a whitepaper about our security practices where you need to have two vulnerabilities in order to break out of any system. We have all that written up there. We just published a whitepaper about encryption and how to do encryption by default, encryption between machines and so on. But I think what we're really doing is, we're helping people to operate like Google without having to spin up an entire SRE team as big as Google's to do it. An example is, we just released something internally, we have something called BeyondCorp. It's a non-firewall, non-VPN based way for you to authenticate against any Google system, using two-factor authentication, for our internal employees. Externally, we just released it, it's called, Internet, excuse me, IdentityAware proxy. You can use with literally any service that you have. You can provision a domain name, you can integrate with OAuth, you can, including Google OAuth or your own private OAuth. All those various things. That's simply a service that we offer, and so, really, y'know, I think-- >> And there's also multi, more than two-factor coming down the road, right? >> Exactly, actually IdentityAware proxy already supports two-factor. But I will say, one of the things that I always tell people, is a lot of enterprises say exactly what you said. "Jeez, this new world looks very scary to me. "I'm going to slow down." The problem is they're mistaken, under the mistaken impression that they're secure today. More than likely, they're not. They already have firewall, they already have VPN, and it's not great. In many ways, the enterprises that are going to win are the ones that lean in and move faster to the new world. >> Well, they have to, otherwise they're going to die, with IOT and all these benefits, they're exposed even as they are, just operationally. >> Yep. >> Just to support it. Okay, I want to get your thoughts, guys, on Google's role here at the Linux Foundation's CNCF KubeCon event. You guys do a lot of work in open source. You've got a lot of great fan base. I'm a fan of what you guys do, love the tech Google brings to the table. How do people get involved, what are you guys connecting with here, what's going on at the show, and how does someone get on board with the Google train? Certainly TensorFlow has been, it's like, great open source goodness, developers are loving it, what's going on? >> Well we have over almost 200 people from Google here at the show, helping and connecting with people, we have a Google booth which I invite people to stop by and tell about the different project we have. >> Yeah, and exactly like you said, we have an entire repo on Github. Anyone can jump in, all our things are open source and available for everyone to use no matter where they are. Obviously I've been on Kubernetes for a while. The Kubernetes project is on fire, Tensorflow is on fire, KubeFlow that we mentioned earlier is completely open source, we're integrating with Prometheus, which is a CNCF project. We are huge fans of these open source foundations and we think that's the direction that most software projects are going to go. >> Well congratulations, I know you guys invested a lot. I just want to highlight that. Again, to show my age, y'know these younger generation have no idea how hard open source was in the early days. I call it open bar and open source, you guys are bringing so much, y'know, everyone's drunk on all this goodness. Y'know, just these libraries you guys bringing to the table. >> David: Right. >> I mean Tensorflow is just the classic poster-child example. I mean, you're bringing a lot of stuff to the table. I mean, you invented Kubernetes. So much good stuff coming in. >> Yeah, I couldn't agree more. I hesitate to say we invented it. It really was a community effort, but yeah, absolutely-- >> But you opened it up, and you did it right, and did a good job. Congratulations. Thanks for coming on theCUBE, I'm going to see you at Google Next. theCUBE will be broadcasting live at Google Next in July. Of course we'll do a big drill-down on Google Cloud platform at that show. It's theCUBE here at KubeCon 2018 in Copenhagen, Denmark. More live coverage after this short break, stay with us. (upbeat music)

>> Male Announcer: Live from Las Vegas, it's theCUBE, covering InterConnect 2017. Brought to you by, IBM. >> Welcome back, we're live here in Las Vegas for IBM InterConnect 2017. This is theCUBE's coverage of InterConnect, I'm John Furrier with Dave Vellante my co-host. Our next guest is Deon Newman, CMO of IBM Watson IoT, and Slava Rubin, the founder and Chief Business Officer of Indiegogo, great keynote today, you're on stage. Welcome to theCUBE. Deon, great to see you. >> Thanks for having me. >> So I got to first set the context. Indiegogo, very successful crowd-funder, you guys pioneered. It's pretty obvious now looking back, this has created so much opportunity for people starting companies, whether it's a labor of love or growing into a great business, so congratulations on your success. What's the IBM connection? Because I don't want, you know, there was some stuff on the tweets, I don't want to break the news, but you guys are here. Share the connection. What's the packaging, why is IMB and Indigogo working together? >> Yeah, so back up to 2008. We launched to be able to get people access to funding. And over the last several years, we've done a pretty good job of that. Sending over a billion dollars to over half a million entrepreneurs around the world. And more recently, we've had a lot more requests of Indiegogo can you do more? And we knew that we couldn't do it all on our own. So we partnered first with Arrow to be able to bring these ideas more into reality around components and engineering and supply chain. And we knew we needed more in terms of these IoT products, so they need to be smart and they need software. So we were really excited to be able to announce today, the partnership with IBM, around everything IoT Cloud, security, and being able to provide all the block chain and any other elements that we need. >> Deon I want to ask you, get your thoughts on, we had the Watson data platform guys on earlier in the segment, and the composability is now the norm around data. This brings the hacker-maker culture to IoT. Which if you think about it as a sweet-spot for some of the innovations. They can start small and grow big. Is that part of the plan? >> Yeah, I mean, if you look at what's going on we have about 6000 clients already with us in the IoT space. They tend to be the big end of town, you know whether it be a Daimler or an Airbus or whether it be a Kone, the world's biggest elevator company. Or ISS, the world's biggest facilities management company. So we were doing a lot of work up there really around optimizing their operations, connecting products, wrapping services around them so they can create new revenue streams. But where we didn't have an offering that was being used extensively, was in the start-up space. And you know when we saw what Indiegogo had been doing in the marketplace, and when our partner Arrow, who as Slava has said, has really built up an engineering capability and a component capability to support these makers. It was just a match made in heaven. You know, for an entrepreneur who needs to find a way to capture data, make that data valuable, you know, we can do that. We have the Cloud platform, we have the AI, et cetera. >> It's interesting, we just hit the stride of dude, we have our big data Silicon Valley event just last week, and the big thing that come out of that event is finally the revelation, this is probably not new to Slava and what you're doing, it that, the production under-the-hood hard stuff that's being done is some ways stunting the creativity around some of the cooler stuff. Like whether it's data analytics or in this case, starting a company. So, Slava I want to get your thought on, your views on how the world is becoming democratized. Because if you think about the entrepreneurship trend that you're riding, is the democratization of invention. Alright, there's a democracy, this is the creative, it's the innovation, but yet it's all this hard stuff, like what's called production or under-the-hood that IBM's bringing in. What do you expect that to fuel up? What's your vision of this democratization culture? >> I mean, it's my favorite thing that's happening. I think whether it's YouTube democratizing access to content or Indiegogo democratizing access to capital. The idea of democratizing access to entrepreneurship between our partnership, just really makes me smile. I think that capital is just one of those first points and now they're starting to get the money but lots of other things are hard. When you can actually get artificial intelligence, get Cloud capabilities, get security capabilities, put it into a service so you don't need to figure all those things out on your own so you can go from a small little idea to actually start scaling pretty rapidly, that's super exciting. When you can be on Indiegogo and in four weeks get 30,000 backers of demand across 100 countries, and people are saying, we want this, you know it's good to know you don't need to start ramping up your own dev team to figure out how to create a Cloud on your own, or create your own AI, you can tap right into a server that's provided. Which is really revolutionizing how quickly a small company can scale. So it proliferates more entrepreneurs starting because they know there's more accessibility. Plus it improves their potential for success, which in the long run just means there's more swings at the bat to be able to have and entrepreneur succeed, which I think all of us want. >> Explain to the audience how it works a little bit. You got the global platform that you built up. Arrow brings it's resources and ideation. IBM brings the IoT, the cognitive platform. Talk about how that all comes together and how people take advantage of it? >> Sure, I mean you can look at it as one example, like Water Buy. So Water Buy is an actual sensor that you can deploy against your water system to be able to detect whether or not your water that you're drinking is healthy. You're getting real-time data across your system and for some reason it's telling you that you have issues, you can react accordingly. So that was an idea. You go on Indiegogo, they post that idea and they're able to get the world to start funding it. You get customer engagement. You get actual market validation. And you get funding. Well now you actually need to make these sensors, you need to make these products, so now you get the partnership with Arrow which is really helpful cause they're helping you with the engineering, the design, the components. Now you want to be able to figure out how you can store all that data. So it's not just your own house, maybe you're evaluating across an entire neighborhood. Or as a State you want to see how the water is for the whole entire State. You put all of that data up into the Cloud, you want to be able to analyze the data rapidly through AI, and similarly this is highly sensitive data so you want it to be secure. If Water Buy on their own, had to build out all of this infrastructure, we're talking about dozens, hundreds, who knows how many people they would need? But here through the partnership you get the benefit of Indiegogo to get the brilliant idea to actually get validated, Arrow to bring your idea from the back of a napkin into reality, and then you get IBM Watson to help with all the software components and Cloud that we just talked about. >> And how did this get started? How did you guys, you know, fall into this, and how did it manifest itself? >> So can I tell the story? >> Go for it. >> So I love this story, so as Slava's explained at the front end of this it was really a partnership of Arrow and Indiegogo that came out of the need of entrepreneurs to actually build their stuff. You know, you get it funded and then you say, oh boy, now I've got a bunch of orders how do I now make this stuff? And so Arrow had a capability of looking at the way you designed, you know looking at it deeply with their engineers, sourcing the components, putting it together, maybe white-boxing it even for you. So they put that together. Now, we're all seeing that IoT and the connective products are moving for disconnection, which is actually generating data and that data having value. And so Arrow didn't have that capability, we were great partners with Arrow, you know when we all looked at it, the need for AI coming into all these products, the need for security around the connection, the platform that could actually do that connection, we were a logical map here. So we're another set of components, not the physical. You know, we're the Cloud-based components and services that enable these connected devices. >> If you think about like the impact, and it's mind-boggling what the alternative is. You mentioned that the example you gave, they probably might have abandoned the project. So if you think about the scale of these opportunities what the alternative would have been without an Indiegogo, you probably have some anecdotal kind of feeling on this. But any thoughts on what data you can share around, do you have kind of reference point of, okay, we've funded all this and 90% wouldn't have been done or 70% wouldn't have been done. Do you have any flavor for? >> It's hard to know exactly. Obviously many of these folks that come to Indiegogo, if they could've gotten funded on another path earlier in the process, they would have. Indiegogo became really a great choice. Now you're seeing instead of being the last resort, Indiegogo is becoming the first resort because they're getting so much validation and market data. The incredible thing is not to think about it at scale when you think about 500 or 700 thousand entrepreneurs, or over a billion dollars, and it's in virtually every country in the world. If you really just look at it as one product. So like, Flow Hive is just one example. They've revolutionized how honey gets harvested. That product was bought in almost 170 countries around the world and it's something that hadn't been changed in over 150 years. And it's just so interesting to see that if it wasn't for Indiegogo that idea would not go from the back of a napkin to getting funded. And now through these partnerships they're able to realize so much more of their potential. >> So it's interesting, the machine learning piece is interesting to me because you take the seed-funding which is great product-market fit as they say in the entrepreneurial culture, is validated. So that's cool. But it could be in some cases, small amounts of cash before the next milestone. But if you think about the creativity impact that machine learning can give the entrepreneur, with through in their discovery process, early stage, that's an added benefit to the entrepreneur. >> Absolutely. Yeah, a great example there is against SmartPlate. SmartPlate is trying to use a combination of a weight-sensing plate as well with photo-detection, image detection software. The more data it can feed its image detection, the more qualified it can know, is that a strawberry or a cherry, or is that beef? And we take that for granted that our eyes can detect all that, but it's really remarkable to think about instead of having to journal everything by hand or make sure you pick with your finger what's the right product and how many ounces, you can take a photo of something and now you'll know what you're eating, how much you're eating and what is the food composition? And this all requires significant data, significant processing. >> I'm really pumped about that, congratulations to you on a great deal. I love the creativity and I think the impact to the globe is just phenomenal. Thinking about the game-changing things that are coming up, Slava I've got to ask you, and Deon if you could weigh in too, maybe you have some, your favorites. You're craziest thing that you've seen funded and the coolest thing you've seen funded. (laughter) >> I mean, who is hard because it's kind of like asking well who's your favorite child? I have like 700,000 children, I'm not even Wilt Chamberlain (laughter) and I like them all. But you know it's everything from an activity tracker to security devices, to being able to see what the trend is 24, 36 months ahead. Before things become mainstream today, we're seeing these things 3, 5 years ago. Things are showing up at CES, and you know these are things we get to see in advance. In terms of something crazy, it's not quite IoT but I remember when a young woman tried to raise $200,000 to be able to get enough money for her and Justin Bieber to fly to the moon. (laughter) >> That's crazy. >> That didn't quite get enough funding. But something that's fresh right now is Nimuno Loops is getting funded right now on Indiegogo live. And they just posted less than seven days ago and they have Lego-compatible tape. So it's something that you can tape onto any surface and the other side is actually Lego-compatible so you actually put Legos onto that tape. So imagine instead of only a flat surface to do Legos, you could do Legos on any surface even your jacket. It's not the most IoT-esque product right now but you just asked for something creative. >> That's the creative. >> I think once you got Wilt Chamberlain and Justin Bieber in the conversation, I'm out. (laughter) (crosstalk) >> Well now, how does Indiegogo sustain itself? Does it take a piece of the action? Does it have other funding mechanisms for? >> Yeah, and that's the beautiful thing about Indiegogo. It's a platform and it's all about supply and demand. So supply is the ideas and the entrepreneurs and the demand is the funders. It's totally free to use the website and as long as you're able to get money in your pocket, then we take a percentage. If you're not taking any money into your pocket, then we get no money. As part of the process, you might benefit from actually not receiving money. You might try to raise a hundred grand, only raise thirty-one and learn that your price-point is wrong, your target audience is wrong, your color is wrong, you're bottom cost it too high. All this feedback is super valuable. You just saved yourself a lot of pain. So really it's about building the marketplace we're a platform, we started out just with funding, we're really becoming now a springboard for entrepreneurs. We can't do it all ourselves which is why we're bringing on these great partners. >> You know we've done, just to add to that, I think it's a relevant part here too. We've actually announced a premium-based service for the entrepreneurs to get onto the Cloud, to access the AI, to access the services as a starting point to the complete premium model so they can get started very low barrier to entry and overseeing scale as they grow. >> What do you call that? Is it IBM IoT Premium or? >> It hasn't got a name specifically to the premium element of the, it's just the Watson IoT platform. Available on Blue Mist. >> So it's a Watson sort of, right. So it's like a community edition of Watson. So Deon, new chapter for you. You know I saw a good quarter for mainframes, last quarter. It's still drafting off your great work and now you've shifted to this whole new IoT role, what's that been like? Relatively new initiative for IBM, building on some historical expertise. But give us the update on your business. >> Yes, so about 15 months ago, we announced a global headquarters that we were going to open in Munich, and we announced the Watson IT business. Which brought together a lot of IBM's expertise and a lot of our experience over the years through smarter cities, through the smarter planet initiative. You know we've been working The Internet Of Things, but we made a 3-billion dollar commitment to that marketplace, that we were going to go big and go strong. We've built out a horizontal platform, the Watson IoT platform. On top of that we've got market-leading enterprise asset management software, the Maximo portfolio, TRIRIGA for facilities management. And then we have a whole set of engineering software for designing connected products as well. So we've built out a very comprehensive industry-vertical-aligned IoT business. We added last year, we went from about 4000 to about 6000 clients. So we had a very good year in terms of real enterprises getting real outcomes. We continue to bring out new industry solutions around both connected products and then operations like retail, manufacturing, building management, telco, transportation. We're building out solutions and use-cases to leverage all that software. So business is going well. We officially the Watson IoT headquarters three weeks ago in Munich. And we're jam packed with clients coming through that building, building with us. We've got a lot of clients who've actually taken space in the building. And their using it as a co-laboratory with us to work on PSE's and see the outcomes they can drive. >> Alright, Deon Newman with IoT Watson, and IoT platforms. Slava Rubin, founder of Indiegogo, collective intelligence is cultural shift happening. Congratulations outsourcing and using all that crowdfunding. It's real good data, not just getting the entrepreneur innovations funded but really using that data and your wheelhouse IoT. Thanks for joining us on theCUBE, appreciate it. >> Thank you John. >> More live coverage after this short break, with theCUBE live in Las Vegas for IBM InterConnect. We'll be right back, stay with us. (upbeat music)

>> Announcer: Live, from Las Vegas, it's theCUBE, covering InterConnect 2017, brought to you by IBM. >> OK, welcome back everyone, live here in Las Vegas for IBM InterConnect 2017. This is theCUBE's coverage of InterConnect. I'm John Furrier, Dave Vellante, my co-host. Our next guest is Deon Newman, CMO of IBM Watson IoT, and Slava Rubin, the founder and Chief Business Officer of Indiegogo. Great keynote today, you're on stage, welcome to theCUBE. Deon, great to see you. >> Thanks for havin' me. >> I got to first set the context. Indiegogo, very successful crowdfunder you guys pioneered. It's pretty obvious now, looking back, this creates so much opportunity for people starting companies, whether it's a labor of love or growing into a great business, so congratulations on your success. What's the IBM connection? Because there was some stuff on the tweets, I don't want to break the news, but you guys are here, share the connection. What's the packaging? Why is IBM and Indiegogo working together? >> Yes, so back up to 2008, we launched to be able to get people access to funding and over the last several years, we've done a pretty good job of that, sending over a billion dollars to over a half a million entrepreneurs around the world, and more recently, we've had a lot more requests of Indiegogo, can you do more? And we knew we couldn't do it all on our own, so we partnered first with Arrow, to be able to bring these ideas more into reality around components and engineering and supply chain, and we knew we needed more in terms of these IoT products, so they need to be smart and they need software, so we were really excited to be able to announce today the partnership with IBM, around everything IoT, clouds, security, and being able to provide all the block chain and any other elements that we need. >> Deon, I want to ask you or get your thoughts on, we have the Watson data platform guys on earlier in the segments, and the composability is now the normal around data, brings the hacker-maker culture to IoT, which, if you think about it, is a sweet spot for some of the innovations. They can start small and grow big. Is that part of the plan? >> I mean, if you look at what's going on, we have about 6,000 clients already working with us in the IoT space. They tend to be the big end of town, whether it be a Daimler or a Airbus, whether it be a KONE, the world's biggest elevator company, or ISS, the world's biggest facilities management company, so we were doin' a lot of work up there, really around optimizing their operations, connecting products, wrapping services around them so that they can create new revenue streams, but where we didn't have an offering that was being used extensively was in the start-ups place, and when we saw what Indiegogo had been doing in the marketplace, and when our partner, Arrow, who, as Slava said, has really built up an engineering capability and a component capability to support these makers, it was just a match made in heaven. For an entrepreneur who needs to find a way to capture data, make that data valuable, we can do that. We have the cloud platform, we have the AI, et cetera. >> It's interesting, we just had the Strata Hadoop, we have our own big data Silicon Valley event last week and the big thing that came out of that event, finally, the revelation, this is probably not new to Slava, what you're doin' is that the production under the hood hard stuff that's being done is, in some ways stunting the creativity around some of the cooler stuff, like whether it's data analytics, or in this case, the startin' a company, so, Slava, I want to get your thoughts on your views on how the world is becoming democratized, because if you think about the entrepreneurship trend that you're riding, there's a democratization of invention. This is the creative, it's the innovation, but yet, there's all this hard stuff, that's called, like, production, or under-the-hood, that IBM's bringin'. What do you expect that to feel up? What's your vision of this democratization culture? >> It's my favorite thing that's happening. I think, whether it's YouTube democratizing access to content, or Indiegogo democratizing access to capital, the idea of democratizing access to entrepreneurship between our partnership, just really makes me smile. I think that capital is just one of those first points and now they're starting to get the money, but lots of other things are hard. When you can actually get artificial intelligence, get cloud capabilities, get security capabilities, put it into a service, so you don't need to figure all those things out on your own, so you can go from a small little idea to actually start scaling pretty rapidly, that's super exciting. When you can be on Indiegogo, and in four weeks, get 30,000 backers of demand across 100 countries, and people are saying, "We want this," it's good to know that you don't need to start ramping up your own dev team to figure out how to create a cloud on your own, or create your own AI, you can tap right into a server that's provided, which has really revolutionizing how quickly a small company can scale, so it proliferates more entrepreneurs starting, 'cause they know there's more accessibility, plus it improves their potential for success, which in the long run, just means there's more swings at the bat to be able to have an entrepreneur succeed, which I think all of us want. >> Explain for the audience how it works a little bit. You got the global platform that you built out, Arrow brings its resources and ideation, IBM brings the IoT, the cognitive platform. Talk about how that all comes together and how people take advantage of it. >> Sure, I mean you can look at it as, one example like WaterBot. So WaterBot is an actual sensor that you can deploy against your water system to be able to detect whether or not your water that you're drinking is healthy. You're getting real-time data across your system and for some reason, it's telling you you have issues, you can react accordingly. So that was an idea. You go on Indiegogo, they post that idea, and they're able to get the world to start funding it. You get customer engagement, you get actual market validation, and you get funding. Well now you actually need to make these sensors, you need to make these products, so now you get the partnership with Arrow, which is really helpful, 'cause they're helping you with the engineering, the design, the components. Now you want to be able to figure out how you can store all that data, so it's not just your own house, maybe you're evaluating across an entire neighborhood, or as a state, you want to see how the water is for the whole entire state. You put all that data up into the cloud, you want to be able to analyze the data rapidly through AI, and similarly, this is highly sensitive data, so you want it to be secure. If WaterBot, on their own, had to build out all this infrastructure, we're talking about dozens, hundreds, who knows how many people they would need, but here, through the partnership, you get the benefit of Indiegogo to get the brilliant idea to actually get validated, Arrow, to bring your idea from back of the napkin into reality, and then you get IBM Watson to help with all of the software components and cloud that we just talked about. >> Great, and how did this get started? How did you guys fall into this and how did it manifest itself? >> Take it, I tell the story? >> Go for it. >> So, I love this story. So, Slava's explained that the front end of this, it was really a partnership of Arrow and Indiegogo that came out of the need of entrepreneurs to actually build their stuff. You know, you get it funded, and then you say, "Oh boy," now I've got a bunch of orders, how do I now make this stuff? And so, Arrow had a capability; of looking at the way you designed, looking deeply with their engineers, sourcing the components, putting together, maybe whiteboxing it even for you, and so, they put that together. Now, we'll all seeing that IoT and the connected products are moving for disconnection, it's actually generating data and that data having value. And so Arrow didn't have that capability, we were great partners with Arrow, you know, when we all looked at it, you know, the need for AI coming into all these products, the need for security around the connection platform, that can actually do that connection, we were a logical map here, so we're another set of components, not the physical. We're the cloud-based components and services that enable these connected devices to sync. >> If you think about the impact, it's mind-boggling with the alternative. You mentioned, the example you gave, they probably might have abandoned the project, so if you think about the scale of these opportunities, what the alternative would have been without an Indiegogo, you probably have some anecdotal feeling on this. Any thoughts on what data you can share, do you have any kind of reference point of like, OK, we funded all this and 90% wouldn't have been done, or 70% wouldn't have been done, do you have any flavor for what's... >> Hard to know exactly. Obviously, many of these folks that came to Indiegogo, if they could have gotten funded on another path, earlier in the process, they would have. Indiegogo became really a great choice. Now you're seeing, instead of being the last resort, Indiegogo's becoming the first resort because they're getting so much validation and market data. The incredible thing is not the thing that adds scale, when you think about 500 or 700,000 entrepreneurs or over a billion dollars and it's in virtually every country in the world, if you really just look at it as one product. So, like, Flow Hive is just one example. They've revolutionized how honey gets harvested. That product was bought in almost 170 countries around the world, and it's something that hasn't been changed in over 150 years, and it's just so interesting to see that, if it wasn't for Indiegogo, that idea would not go from the back of the napkin to getting funded, and now, through these partnerships, they're able to really realize so much more of their potential. >> So, it's interesting, the machine learning piece is interesting to me, because you take the seed funding, which is great, and product market fit as they say in the entrepreneurial culture, is validated, so that's cool, but it could be, in some cases, small amounts of cash before the next milestone, but if you think about the creativity impact that machine learning can give the entrepreneur. >> Slava: Right. >> On their discovery process, early stage, that's an added benefit to the entrepreneur. >> Absolutely. Yeah, a great example bears against SmartPlate. SmartPlate is trying to use the combination of weight sensing plate, as well with photo detection, image detection, and software. The more data it can feed its image detection, the more qualified it can know, "Is that a strawberry or a cherry or is that beef?" Right? And we take that for granted that our eyes can detect all that, but it's really remarkable to think about that instead of having to journal everything by hand or make sure you pick with your finger what's the right product, how many ounces, you can take a photo of something and now it'll know what you're eating, how much you're eating and what is the food composition? And this all requires significant data, significant processing. >> Well, I'm really pumped about that, congratulations, Deon, on a great deal. I love the creativity. I think the impact to the globe is just phenomenal. I mean, by what the game-changing things that are coming out. Slava, I got to ask you, and Deon, if you could weigh in, too, maybe you have some, your favorites, the craziest thing you've seen funded, and the coolest thing you've seen funded. >> Cool is hard, because it's kind of like asking, "Well, who's your favorite child?" I have like 700,000 children, not even Wilt Chamberlain, (laughing) and I like them all. But, you know, it's everything from an activity tracker to security devices, to be able to see what the trend is 24, 36 months ahead. Before things become mainstream today, we're seeing these things three, five years ago. Things are showing up at CES, and these are things we get to see in advance. In terms of something crazy, it's not quite IoT, but I remember when a young woman tried to raise $200,000 to be able to get enough money for her and Justin Bieber to fly to the moon. (laughter) >> That's crazy. >> That didn't get quite enough funding, but something's that flush right now is Nimuno Loops is getting funded right now on Indiegogo Live, and they just posted less than seven days ago and they have Lego-compatible tape, so it's something that you can tape onto any surface, and then the other side is actually Lego-compatible, so you're actually putting Legos onto that tape. So, imagine, instead of only a flat surface to do Legos, you could do Legos on any surfacing, even your jacket. It's not the most IoT-esque product right now, but you just asked for something creative, there you go. >> That's a creative. >> I think once you got Wilt Chamberlain and Justin Bieber in conversation, I am out. (laughter) >> Keepin' it fresh. (voices overlapping) >> Slava, how does Indiegogo sustain itself? Does it take a piece of the action? Does it have other funding mechanisms for... >> The beautiful thing about Indiegogo is, it's a platform and it's all about supply-and-demand, so supply is the ideas and the entrepreneurs, and demand is the funders. It's totally free to use the website and as long as you're able to get money in your pocket, then we take a percentage. If you're not taking any money into your pocket, then we get no money. As part of the process, you might benefit from actually not receiving money. You might try to raise 100 grand, only raise 31, and learn that your price point is wrong, your target audience is wrong, your color is wrong, your bond cost is too high. All this feedback is super value. You just saved yourself a lot of pain, so really it's about building the marketplace. We're a platform, we started out just with funding, we're really becoming now a springboard for entrepreneurs, we can't do it all ourselves, which is why we're bringing on these great partners. >> And you know, we've done, just to add to that, I think it's a relevant part here, too. We've actually announced a freemium-based service for the entrepreneurs to get onto the cloud access, the AI, or to access the services as a starting point, it's a complete freemium model, so that they can get started, very low barrier to entry and obviously, scale as they grow. >> What do you call that? Is it IBM IoT Freemium or is it? >> Hasn't been a name specifically to the Freemium element of it, it's what in IoT platform, available on Bluemix. >> So, it's like a community addition of lots of, so Deon, a new chapter for you, >> Yeah. >> I saw a good quarter for mainframes last quarter, still drafting off your great work, and now you've shifted to this whole new IoT role. What's that been like, relatively new initiative for IBM, building up on some historical expertise, but give us the update on your business. >> It's about 15 months ago, we announced a global headquarters that we're going to open in Munich and we announced the Watson IoT business, which brought together a lot of IBM's expertise and a lot of our experience over the years through Smarter Cities, through the Smarter Planet Initiative, we'd been working the Internet of Things. We'd made a three billion dollar commitment to that marketplace, though we were going to go big and go strong. We've built out a horizontal platform, the Watson IoT platform. On top of that, we've got market-leading enterprise SF management software, the Maximo portfolio, TRIRIGA for facilities management, and then we have a whole set of engineering software for designing connected products as well. So we've built out a very comprehensive industry, vertical-aligned IoT business. We added, last year, we went from about 4,000 to about 6,000 plants, so we had a very good year, in terms of real enterprises getting real outcomes. We continued to bring out new industry solutions around both connected products and then, operations like retail, manufacturing, building management, Tokyo, transportation. We're building out solutions and use-cases to leverage all that software, so business is going well, we officially opened the Watson IoT headquarters three weeks ago in Munich, and we're jampacked with clients coming through that building, building with us. We've got a lot of clients who've actually taken space in the building, and they're using the co-laboratory with us to work on PSEs and see the outcomes they can drive. >> Deon Newman, with Watson IoT platforms. Slava Rubin, founder of Indiegogo. Collective intelligence as cultural shift happening. Congratulations. Crowdsourcing and using all that crowdfunding. It's really good data, not just getting the entrepreneur innovations funded, but really using that data and way in your wheelhouse, IoT. >> Yeah. >> John: Thanks for joining us in theCUBE, appreciate it. More live coverage after this short break. It's theCUBE, live in Las Vegas, for IBM InterConnect. We'll be right back. Stay with us. (theCUBE jingle)