(upbeat music) >> Hello friends and welcome back to theCUBE's Live coverage of AWS re:Invent 2022 from the Venetian Expo in Vegas, baby. This show is absolutely packed. Lisa Martin with Dave Vellante, Dave this is day two, but really full day one of our wall to wall coverage on theCUBE. We've had great conversations the last half day this morning already, we've been talking with a lot of companies, a lot of Amazonians and some Amazonians that have left and gone on to interesting more things, which is what we're going to talk about next. >> Well, I'm excited about this segment because it's a really interesting space. You've got a search company who's gotten into observability and security and through our ETR partner our research, we do quarterly research and Elastic off the charts. Obviously they're the public company, so you can see how well they're doing. But the spending momentum on this platform is very, very strong and it has been consistently for quite some time. So really excited to learn more. >> The voice of the customer speaking loudly, from Elastic, its Chief Product Officer joins us, Ken Exner. Ken, welcome to the program. Hi, thank you, good to be here. >> Dave Vellante: Hey Ken. >> So a lot of us know about Elastic from Elastic Search but it's so much more than that these days. Talk about Elastic, what's going on now? What's the current product strategy? What's your vision? >> Yeah. So people know Elastic from the ELK Stack, you know Elastic Search, Logstash, Kibana. Very, very popular open source projects. They've been used by millions of developers for years and years. But one of the things that we started noticing over the years is that people were using it for all kinds of different use cases beyond just traditional search. So people started using Elastic Search to search through operational data, search through logs, search through all kinds of other types of data just to find different answers. And what we started realizing is the customers were taking us into different spaces. They took us into log analytics they started building log management solutions. And we said, cool, we can actually help these customers by providing solutions that already do this for them. So it took us into observability, they took us into security, and we started building solutions for security and observability based on what customers were starting to do with the platform. So customers can still use the platform for any number of different use cases for how do you get answers added data or they can use our pre-built packaged solutions for observability and security. >> So you were a longtime Amazonian. >> I was. I was. >> Talk a little bit about some of the things that you did there and what attracted you to Elastic? 'Cause it's only been a couple months, right? >> I've been here three months, I think three months as of yesterday. And I was at AWS for 16 years. So I was there a long, long time. I was there pretty much from the beginning. I was hired as one of the first product managers in AWS. Adam Selipsky hired me. And it was a great run. I had a ton of fun, I learned a lot. But you know, after 16 years I was kind of itching to do something new and it was going to take something special because I had a great gig and enjoyed the team at AWS. But I saw in Elastic sort of a great foundational technology they had a lot of momentum, a huge community behind it. I saw the business opportunity where they were going. I saw, you know the business opportunity of observability and security. These are massive industries with tons of business problems. Customers are excited about trying to get more answers out of data about their operational environment. And I saw, you know, that customers were struggling with their operating environments and things were becoming increasingly complicated. We used to talk in AWS about, you know how customers want to move from monolithic applications to monoliths, but one of the secrets was that things were increasingly complicated. Suddenly people had all these different microservices they had all these different managed services and their operating environment got complicated became this constellation of different systems, all emitting data. So companies like Elastic were helping people find answers in that data, find the problems with their systems so helping tame that complexity. So I saw that opportunity and I said I want to jump on that. Great foundational technology, good community and building solutions that actually helped solve real problems. >> Right. >> So, before you joined you probably looked back, and said, let think about the market, what's happening in the market space. What were the big trends that you saw that sort of informed your decision? >> Well, just sort of the mountain of data that was sort of emerging. Adam Selipsky in his talk this morning began by talking about how data is just multiplying constant. And I saw this, I saw how much data businesses were drowning in. Operational data, security data. You know, if you're trying to secure your business you have all these different endpoints you have all these different devices, you have different systems that you need to monitor all tons of data. And companies like Elastic were helping companies sort of manage that complexity, helping them find answers in that. So, when you're trying to track intruders or trying to track you know, malicious activity, there's a ton of different systems you need to pay attention to. And you know, there's a bunch of data. It's different devices, laptops and phone devices and stuff that you need to pay attention to. And you find correlations across that to figure out what is going on in your network, what is going on in your business. And that was exciting to me. This is a company sort of tackling one of the hardest problems which is helping you understand your operating environment, helping you understand and secure your business. >> So everybody's getting into observability. >> Yep. >> Right, it's a very crowded space right now. First of all, you know it's like overnight it just became the hottest thing going. VCs were throwing money at it. Why was that and how were you guys different? >> Well, we began by focusing on log analytics because that was the core of what we were doing. But customers started using it beyond log analytics and started using it for APM and started using it for performance data. And what we realized is that we could do all this for customers. So we ended up, sort of overnight over the course of three years building that a complete observe observability suite. So you can do APM, you can do profiling, you can do tracing, sort of distributed tracing, you can do synthetic monitoring everything you want to do, wheel user wondering. >> Metrics? >> All of it, metrics, all of it. And you can use the same system for this. So this was sort of a powerful concept, not only is it the best in leading log system, it also provides everything you need for complete observability. And because it's based on this open platform you can extend it to a number of different scenarios. So this is important, a lot of the different observability companies provide you something that's sort of packaged and as long as you're trying to do what it wants to support, it's great. But with Elastic, you have this flexible data architecture that you can use for anything. So companies use it to monitor assembly lines, they use it to monitor dish networks, for example use it to not only manage their fleet of servers they also use it to manage all their devices. So 25 million desktop devices. So, you know, observability systems like that that can do a number of different scenarios, I think that's a powerful thing. It's not just about how do you manage your servers how do you manage the things that are simple. It's how do you manage anything? How do you get observability into anything. >> Multiple use cases. >> Sorry, when you say complete, okay you talked about all the different APM, log analytics tracing, metrics, and also end-to-end. >> Ken Exner: End-to-end, yeah. >> Could you talk about that component of complete? >> So, if you're trying to find an issue like you have some metric that goes into alarm. You want to have a metric system that has alarming. Once that metric goes in alarm you're going to want to dig into your log. So you're going to want it to take you to the area of your logs that has that issue. Once you gets to there, you're going to want to find the trace ID that takes you to your traces and looks at sort of profiling, distributed tracing information. So a system that can do all of that end-to-end is a powerful solution. So it not only helps you track things end-to-end across the different signals that you're monitoring, but it actually helps you remediate more quickly. And the other thing that Elastic does that is unique is a lot of ML in this. So not only helping you find the information but surfacing things before you even know of them. So anomaly detection for example, helps you know about something before you even realize that there was an issue. So you should pay attention to this because it's anomalous. So a lot of systems help you find something if you know what to look for. But we're trying to help you not only find the things that you know to look for, but help you find the things that you didn't even think to know about. >> And it's fair to say one of your differentiators is you're open, open source. I mean, maybe talk about the ELK stack a little bit and how that plays. >> Yeah, well, so the great thing about this is we've extended that openness to both security and to observability. An example of this on the security side is all the detection rules that you use for looking for intrusion all the detection rules are open source and there's an entire community around this. So if you wanted to create a detection rule you can publish an open source, there's a bunch in GitHub you can benefit from what the community is doing as well. So in the world of security you want to be supported by the entire community, everyone looking for the same kind of issues. And there's an entire community around Elastic that is helping support these detection rules. So that approach, you know wanting to focus on community is differentiating for us. Not just, we got you covered as long you use things from us you can use it from the entire community. >> Well there implies the name Elastic. >> Yeah >> Talk a little bit about the influence that the customer has in the product roadmap and the direction. You've talked a little bit in the beginning about customers were leading us in different directions. It sounds very Amazonian in terms of following the customers where they go. >> It does, it actually does, it was one of the things that resonated for me personally is the journey that Elastic took to observability and security was customer led. So, we started looking at what customers were doing and realized that they were taking us into log analytics they were taking us into APM, they were taking us into these different solutions, and yeah, it is an Amazonian thing, so it resonated for me personally. And they're going to continue taking us in new places. Like we love seeing all the novel things that customers do with the platform and it's sort of one of the hallmarks of a great platform is you can have all kinds of novel things that, novel use cases for how people use your platform and we'll continue to see things and we may get taken into other solutions as well as we start seeing things emerge, like common patterns. But for now we're really excited about security and observability. >> So what do you see, so security's a big space, right? >> Yep. >> You see the optiv taxonomy and it makes your eyes bleed 'cause there's so many tools in there. Where do you fit in that taxonomy? How do you see and think about the security space and the opportunity for your customers? >> Yeah, so we began with logs in the security space as well. So SIEM, which is intrusion detection is based on aggregating a bunch of logs and helping you do threat hunting on those logs. So looking for patterns of malicious behavior or intrusion. So we started there and we did both detections as well as just ad hoc threat hunting. But then we started expanding into endpoint protection. So if we were going to have agents on all these different devices they were gathering logs, what if we also started providing remediation. So if you had malicious activity that was happening on one of the servers, don't just grab the information quarantine it, isolate it. So that took us into sort of endpoint protection or XDR. And then beyond that, we recently got into cloud security as well. So similar to observability, we started with logs but expanded to a full suite so that you can do everything. You can have both endpoint protection, you can have cloud security, all of it from one solution. >> Security is a very crowded market as well. What's your superpower? >> Ken Exner: What's our super power? >> Yeah. >> I think it, a lot of it is just the openness. It's the open platform, there's the community around it. People know and love the, the Elastic Search ELK stack and use it, we go into businesses all the time and they're familiar, their security engineers are using our product for searching through logs. So they're familiar with the product already and the community behind it. So they were excited about being able to use detection rules from other businesses and stay on top of that and be part of that community. The transparency of that is important to the customers. So if you're trying to be the most secure place, the most secure business, you want to basically invest in a community that's going to support that and not be alone in that. >> Right, absolutely, so much that rides on that. Favorite customer example that you think really articulates the value of Elastic, its openness, its transparency. >> Well, there's a customer Dish Media Dish Networks that's going to present here at re:Invent tomorrow at 1:45 at Mandalay Bay. I'm excited about their example because they use it to manage, I think it's 10 billion records a day across 25 million devices. So it illustrates the scale that we can support for managing observability for a company but also just sort of the unique use cases. We can use this for set top boxes for all their customers and they can track the performance that those customers are having. It's a unique case that a lot of vendors couldn't support but we can support because of the openness of the platform, the open data architecture that we have. So I think it illustrates the scale that we support, the elasticity, but also the openness of the data platform. >> Awesome and folks can catch that tomorrow, 1:45 PM at the Mandalay Bay. Last question for you, Ken, is you have a bumper sticker. >> Ken Exner: A bumper sticker? >> A bumper sticker you're going to put it on your fancy sexy new car and it's about elastic, what does it say? >> Helping you get answers out of data. So yeah. >> Love it, love it. Brilliant. >> Ken Exner: Thank you. >> Short and sweet. Ken, it's been a pleasure. >> It's been a pleasure being here, thank you. >> Thank you so much for sharing your journey with us as an Amazonian now into Elastic what Elastic is doing from a product perspective. We will keep our eyes peeled as Dave was saying. >> Ken Exner: Fantastic. >> The data show is really strong spending momentum so well done. >> Thank you very much, good to meet you. >> Our pleasure. For our guest and Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage. (upbeat music)

(upbeat music) >> Welcome back, everyone. Live coverage here at KubeCon + CloudNativeCon here in Detroit, Michigan. I'm John Furrier, your host of theCUBE for special one-on-one conversation with Scott Johnston, who's the CEO of Docker, CUBE alumni, been around the industry, multiple cycles of innovation, leading one of the most important companies in today's industry inflection point as Docker what they've done since they're, I would say restart from the old Docker to the new Docker, now modern, and the center of the conversation with containers driving the growth of Kubernetes. Scott, great to see you. Thanks for coming on theCUBE. >> John, thanks for the invite. Glad to be here. >> You guys have had great success this year with extensions. Docker as a business model's grown. Congratulations, you guys are monetizing well. Pushing up over 50 million. >> Thank you. >> I hear over pushing a hundred million maybe. What the year to the ground will tell me, but it's good sign. Plus you've got the community and nurturing of the ecosystem continuing to power away and open source is not stopping. It's thundering away growth. Younger generation coming in. >> That's right. >> Developer tool chain that you have has become consistent. Almost de facto standard. Others are coming in the market. A lot of competition emerging. You got a lot going on right now. What's going on? >> Well, I know it's fantastic time in our industry. Like all companies are becoming software companies. That means they need to build new applications. That means they need developers to be productive and to be safely productive. And we, and this wonderful CNCF ecosystem are right in the middle of that trend, so it's fantastic. >> So you have millions of developers using Docker. >> Tens of millions. >> Tens of millions of developed Docker and as the market's changing, I was commenting before we came on camera, and I'd love to get your reaction, comment on it. You guys represent the modernization of containers, open source. You haven't really changed how open source works, but you've kind of modernized it. You're starting to see developers at the front lines, more and more power going to developers. >> Scott: That's right. >> They want self-service. They vote with their code. >> That's right. >> They vote with their actions. >> Scott: That's right. >> And if you take digital transformation to its conclusion, it's not IT serves the business or it's a department, the company is IT. >> That's right. >> The company is the application, which means developers are running everything. >> Yes, yes. I mean, one of the jokes, not jokes in the valley is that Tesla is in a car company. Tesla is a computer company that happens to have wheels on the computer. And I think we can smile at that, but there's so many businesses, particularly during COVID, that realize that. What happened during COCID? If you're going to the movies, nope, you're now going to Netflix. If you're going to the gym, now you're doing Peloton. So this realization that like I have to have a digital game, not just on the side, but it has to be the forefront of my business and drive my business. That realization is now any industry, any company across the board. >> We've been reporting aggressively for past three years now. Even now we're calling some things supercloud. If companies, if they don't realize that IT is not a department, they will probably be out of business. >> That's a hundred percent. >> It's going to transform into full on invisible infrastructure. Infrastructure as code, whatever you want to call that going, configuration, operations, developers will set the pace. This has a lot to do with some of your success. You're at the beginning of it. This is just the beginning. What can you talk about that in your mind is contributing to the success of Docker? I know you're going to say team, everything, I get that, but like what specifically in the industry is driving Docker's success right now? >> Well, it did. We did have a fantastic team. We do have a fantastic team and that is one of the reasons, primary reasons our success. But what is also happening, John, is because there's a demand for applications, I'll just throw it out there. 750 million new applications are coming in the market in the next two years. That is more applications that have been developed in the entire 40 years history of IT. So just think about the productivity demands that are coming at developers. And then you also see the need to do so safely, meaning ship quickly, but ship safely. And yet 90 some percent of every application consists of open source components that are now on attack surface for criminals. And so typically our industry has had to say one or the other, okay, you can ship quickly but not safely, or you can ship safely, but it's not going to go fast. And one of the reasons I think Docker is where it is today is that we're able to offer both. We're able to unlock that you can ship quickly, safely using Docker, using the Docker toolchain, using integrations we have with all the wonderful partners here at CNCF that is unique. And that's a big reason why we're seeing the success we're seeing. >> And you're probably pleased with extensions this year. >> Yes. >> The performance of extensions that you launched at DockerCon '22. >> Yes. Well, extensions are part of that story and that developers have multiple tools. They want choice, developers like choice to be productive and Docker is part of that, but it's not the only solution. And so Docker extensions allow the monitoring providers and the observability and if you want a separate Kubernetes stack, like all of that flexibility, extensions allows. And again, offers the power and the innovation of this ecosystem to be used in a Docker development and context. >> Well, I want to get into some of the details of some of your products and how they're evolving. But first I want to get your thoughts on the trend line here that we reported at the opening segment. The hot story is WebAssembly, the Wasm, which really got a lot of traction or interest. People enthous about it. >> Interest, yeah. >> Lot of enthusiasm. Confidence we'll see how that evolves, but a lot of enthusiasm for sure. I've never seen something this hyped up since Envoy, in my opinion. So a lot of interest from developers. What is Wasm or WebAssembly is actually what it is, but Wasm is the codeword or nickname. What is Wasm? >> So in brief, WebAssembly is a new application type, full stop. And it's just enough of the components that you need and it's just a binary format that is very, very secure. And so it's lightweight, it's fast and secure. And so it opens up a lot of interesting use cases for developer, particularly on the edge. Another use case for Wasm is in the browser. Again, lightweight, fast, secure also. >> John: Sounds like an app server to me. >> And so we think it's a very, very interesting trend. And you ask, Okay, what's Docker's role in that? Well, Docker has been around eight years now, eight plus years, tens of millions developers using it. They've already made investments in skills, talent, automation, toolchains, pipelines. And Docker started with Linux containers as we know, then brought that same experience to Windows containers, then brought it to serverless functions. About 25% of Amazon Lambdas are OCI image containers. And so we were seeing that trend. We were also seeing the community actually without any prompting from us, start to fork and play with Docker and apply it to Wasm. And we're like, Huh, that's interesting. What if we helped get behind that trend, such that you changed just one line of a Docker file, now you're able to produce Wasm objects instead of Linux containers and just bring that same easy to use. >> So that's not a competition to Docker's? >> Not a competition at all. In fact, very complimentary. We showed off on Monday at the Wasm day, how in the same Docker compose application, multi-service application. One service is delivered via Linux container, Another service is delivered via Wasm. >> And Wasm is what? Multiple languages? 'Cause what is it? >> Yes. So the binary can be compiled from multiple languages. So RAS, JavaScript, on and on and on. At the end of the day, it's a smaller binary that provides a function, typically a single function that you can stand up and deploy on an edge. You can stand up and deploy on the server side or stand up and deploy on the browser. >> So from a container standpoint, from your customer standpoint, what a Linux container is is a similar thing to what a Wasm container is. >> They could implement the same function. That's right. Now a Linux container can have more capabilities that a function might not have, but that's. >> John: From a workflow standpoint. >> That's right. And that's more of a use case by use case standpoint. What we serve is we serve developers and we started out serving developers with Linux containers, then Windows containers, then Lambdas, now Wasm. Whatever other use case, what other application type comes along, we want to be there to serve developers. >> So one of the things I want to get your thoughts on, because this has come up in a couple CUBE interviews before, and we were talking before we came on camera, is developers want ease of use and simplicity. They don't want more steps to do things. They don't want things harder. >> That's right. So the classic innovation is reduce the time it takes to do something, reduce the steps, make it easier. That's a formula of success. >> Scott: That's right. >> When you start adding more toolchains into the mix, you get tool sprawl. So that's not really, that's antithesis to developer. So the argument is, okay, do I have to use a new tool chain for Wasm? Is that a fact or no? >> That's exactly right. That was what we were seeing and we thought, well, how can Docker help with this situation? And Docker can help by bringing the same existing toolchain that developers are already familiar with. The same automation, the same pipelines. And just by changing a line of Docker file, changing a single line of composed file, now they get the power of Wasm unlocked in the very same tools they were using before. >> So your position is, hey, don't adopt some toolchain for Wasm. You can just do it in line with Docker. >> No need to, no need to. We're providing it right there out of the box, ready for them. >> That's raise and extend, as they would say, build Microsoft strategy there. That's nice. Okay, so let's get back into like the secure trusted 'cause that was another theme at DockerCon. We covered that deeply. Software supply chain, I was commenting on my intro with Savannah and Lisa that at some point open source means so plentiful. You might not have to write code. You got to glue together. So as code proliferates, the question what's in there? >> That's right. This is what they call the software supply chain. You've been all over this. Where are we with this? Is it harder now? Is it easier? Was there progress? Take us through what's the state of the art. I think we're early on this one, John, in the industry because I think the realization of how much open source is inside a given app is just now hitting consciousness. And so the data we have is that for any given application, anywhere from 75 to 85% is actually not unique to the developer or the organization. It's open source components that they have put together. And it's really down to that last 15, 25%, which is their own unique code that they're adding on top of all this open source code. So right there, it's like, aha, that's a pretty interesting profile or distribution of value, which means those open source components, where are they finding them? How are they integrating them? How do they know those open source components are going to be supported and trusted and secured? And that's the challenge for us as an industry right now is to make it just obvious where to get the components, how safe they are, who's standing behind them, and how easy it is to assemble them into a working application. >> All right. So the question that I had specifically on security 'cause this had come up before. All good on the trusted and I think that message is evergreen. It's a north star. That's a north star for you. How are you making images more secure and how are you enabling organizations to identify security issues in containers? Can you share your strategy and thoughts on that particular point? >> Yes. So there's a range of things in the secure software supply chain and it starts with, are you starting with trusted open source components that you know have support, that you know are secured? So in Docker Hub today, we have 14 million applications, but a subset of that, we've worked with the upstream providers to basically designate as trusted open source content. So this is the Docker official images, Docker verified publisher images, Docker sponsored open source. And those different categories have levels of certification assurance that they must go through. Generate an SBOM, so you know what's inside that container. It has to be scanned by a scanning tool and those scanning results have to be made available. >> John: Are you guys scanning that? >> So we provide a scanner, they can use another scanner as long as they publish the results of that scan. And then the whole thing is signed. >> Are you publishing the results on your side too? >> Yeah, we published our results through an open database that's accessible to all. >> Free. >> Free, a hundred percent free. You come in and you can see every image on hub. >> So I'm a user, for free I can see security vulnerabilities that are out there that have been identified. >> By version, by layer, all the way through. And you can see tracking all the way back to the package that's upstream. So you know how to remediate and we provide recommendations on how to remediate that with the latest version. >> John: And you don't charge for that. >> We don't charge for that. We do not charge for that. And so that's the trusted upstream. >> So organization can look at the scan, they can look at the scan data and hopefully, what happens if they're not scanned? >> So we provide scanning tools both for the local environments for Docker Desktop, as well as for hub. So if you want to do your own scan, so for example, when you're that developer adding the 15, 25%, you got to scan your stuff as well. Not just leave it up to the already scanned components. And so we provide tools there. We also provide tools to track the packages that that developer might be including in their custom code, all the way back upstream to whatever MPM repo or what have you that they picked up. And then if there's a CVE 30 days later, we also track that as well. We say, Hey, that package was was safe 29 days ago, but today CVE just came out, better upgrade to the latest version and get that out there. So basically if you get down to it, it's like start with trusted components and then have observability not just on the moment. >> And scan all the time. >> Scan all the time and scanning gives you that observability and importantly not just at that moment, but through the lifecycle of the application, through lifecycle of the artifact. So end-to-end 24/7 observability of the state of your supply chain. That's what's key, John. >> That's the best practice. >> That's the key. That's the key. >> Awesome, I agree. That's great. Well, I'm glad we've dug into that's super important. Obviously organizations can get that scanning that's exceed the vulnerabilities, that can take action. That's going to be a big focus here for you, security. It's not going to stop, is it? >> It's never going to stop because criminals are incentive to keep attacking. And so it's the gift that keeps on giving, if you will. >> Okay, so let's get into some of the products. Docker Desktop seems to be doing well. Docker Hub has always been a staple of it. And how's that going? >> Yeah, Docker Hub has 18 million monthly actives hitting it and that's growing by double digits year over year. And what they're finding, going back to our previous thread, John, is that they're coming there for the trusted content. In fact, those three categories that I referenced earlier are about 2000 applications of the 14 million. And yet they represent 56% of the 15 billion downloads a month from Docker Hub. Meaning developers are identifying that, hey, I want trusted source. We raise those in the search results and we have a visual cue. And so that's the big driver of hub's growth right now, is I want trusted content, where do I go? I go to Hub, download that trusted open source and I'm ready to go. >> I have been seeing some chatter on the internet and some people's sharing that they're looking at other places, besides hub, to do some things. What's your message to folks out there around Docker Hub? Why Docker Hub and desktop together? 'Cause you mentioned the toolchain before, but those two areas, I know they've been around for a while, you continue to work on them. What's the message to the folks out there about stay with the hub? >> Sure. I mean the beauty of our ecosystem is that it's interoperable. The standards for build, share and run, we're all using them here at CNCF. So yes, there's other registries. What we would say is we have the 18 million monthly active that are pulling, we have the worldwide distribution that is 24/7 high, five nines reliability, and frankly, we're there to provide choice. And so yes, we have have our trusted content, but for example, the Tanzu apps, they also distribute through us. Red Hat applications also distribute through us because we have the reach and the distribution and offer developers choice of Dockers content, choice of Red Hats content, choice of VMware's, choice of Bitnami, so on so forth. So come to the hub for the distribution to reach and that the requirements we have for security that we put in place for our publishers, give users and publishers an extra degree of assurance. >> So the Docker Hub is an important part of the system? >> Scott: Yes, very much so. >> And desktop, what's new with desktop? >> So desktop of course is the other end of the spectrum. So if trusted components start up on Docker Hub, developers are pulling them down to the desktop to start assembling their application. And so the desktop gives that developer all the tools he or she needs to build that modern application. So you can have your build tooling, your debug tooling, your IDE sitting alongside there, your Docker run, your Docker compose up. And so the loop that we see happening is the dev will have a database they download from hub, a front-end, they'll add their code to it and they'll just rapidly iterate. They'll make a change, stand it up, do a unit test, and when they're satisfied do a git commit, off it goes into production. >> And your goal obviously is to have developers stay with Docker for their toolchain, their experience, make it their home base. >> And their trusted content. That's right. And the trusted content and the extensions are part of that. 'Cause the extensions provide complimentary tooling for that local experience. >> You guys have done an amazing job. I want to give you personal props. I've been following Docker from the beginning when they had the pivot, they sold the enterprise to Mirantis, went back to the roots, modernized, riding the wave. You guys are having a good time. I got to ask the question 'cause people always want to know 'cause open source is about transparency. How you guys making your money? Business is good. How's that work and what was the lucky, what was the not lucky strike, but what was the aha moment? What was the trigger that just made you just kick in this new monetization growth wave? >> So the monetization is per seat, per developer seat. And that changed in November 2019. We were pricing on the server side before, and as you said, we sold that off. And what changed is some of the trends we were talking about that the realization by all organizations that they had to become software companies. And Docker provided the productivity in an engineered desktop product and the trusted content, it provided the productivity safely to developers. And frankly then we priced it at a rate that is very reasonable from an economic standpoint. If you look at developer productivity, developers are paid anywhere from 150 to 300 to 400, 500,000 even higher. >> But when you're paying your developers that much, then productivity is a premium. And what we were asking for from companies from a licensing standpoint was really a modest relative to the making those developers product. >> It's not like Oracle. I mean talk about extracting the value out of the customer. But your point is your positioning is always stay quarter of the open source, but for companies that adopt the structural change to be developer first, a software company, there's a premium to pay because you devalue there. >> And need the tooling to roll it out at scales. So the companies are paying us. They're rolling it out to tens of thousand developers, John. So they need management, they need visibility, they need guardrails that are all around the desktop. So, but just to put a stat on it, so to your point about open source and the freemium wheel working, of our 13 million Docker accounts, 12 are free, about a million are paid for accounts. And that's by design because the open source. >> And you're not gouging developers per se, it's just, not gouging anyone, but you're not taking money out of their hands. It's the company. >> If the company is paying for their productivity so that they can build safely. >> More goodness more for the developer. >> That's right. That's right. >> Gouging would be more like the Oracle strategy. Don't comment. You don't need to comment. I keep saying that, but it's not like you're taxing. It's not a heavy. >> No, $5 a month, $9 a month, $24 a month depending on level. >> But I think the big aha to me and in my opinion is that you nailed the structural change culturally for a company. If they adopt the software ecosystem approach for transforming their business, they got to pay for it. So like a workflow, it's a developer. >> It's another tool. I mean, do they pay for their spreadsheet software? Do they pay for their back office ERP software? They do >> That's my point. >> to make those people popular or sorry, make those people successful, those employees successful. This is a developer tool to make developer successful. >> It's a great, great business model. Congratulations. What's next for you guys? What are you looking for? You just had your community events, you got DockerCon coming up next year. What's on the horizon for you? Put a plugin for the company. What are you looking for? Hiring? >> Yeah, so we're growing like gangbusters. We grew from 60 with the reset. We're now above 300 and we're continuing to grow despite this economic climate. Like our customers are very much investing in software capabilities. So that means they're investing in Docker. So we're looking for roles across the board, software engineers, product managers, designers, marketing, sales, customer success. So if you're interested, please reach out. The next year is going to be really interesting because we're bringing to market products that are doubling down on these areas, doubling down a developer productivity, doubling down on safety to make it even more just automatic that developers just build so they don't have to think about it. They don't need a new tool just to be safer. We hinted a bit about automating SBOM creation. You can see more of that pull through. And in particular, developers want to make the right decision. Everyone comes to work wanting to make the right decision. But what they often lack is context. They often lack like, well, is this bit of code safe or not? Or is this package that I just downloaded over here safe or not? And so you're going to see us roll out additional capabilities that give them very explicit contextual guidance of like, should you use this or not? Or here's a better version over here, a safer version over there. So stay tuned for some exciting stuff. >> It's going to be a massive developer growth wave coming even bigger we've ever seen. Final questions just while I got you here. Where do you see WebAssembly, Wasm going? If you had to throw a dart at the board out a couple years, what does it turn into? >> Yeah, so I think it's super exciting. Super exciting, John. And there's three use cases today. There's browser, there's edge, and there's service side in the data center of the cloud. We see the edge taking off in the next couple years. It's just such a straight line through from what they're doing today and the value that standing up a single service on the edge go. The service side needs some work on the Wasm runtime. The Wasm runtime is not multi-threaded today. And so there's some deep, deep technical work that's going on. The community's doing a fantastic job, but that'll take a while to play through. Browsers also making good progress. There's a component model that Wasm's working on that'll really ignite the industry. That is going to take another couple years as well. So I'd say let's start with the edge use case. Let's get everyone excited about that value proposition. And these other two use cases will come along. >> It'll all work itself out in the wash as open source always does. Scott Johnston, the Chief Executive Officer at Docker. Took over at the reset, kicking butt and taking names. Congratulations. You guys are doing great. Continue to power the developer movement. Thanks for coming on. >> John, thanks so much. Pleasure to be here. >> We're bringing you all the action here. Extracting the signal from the noise. I'm John Furrier, day one of three days of wall-to-wall live coverages. We'll be back for our next guest after this short break. (gentle music)

(upbeat music) >> Hey everyone. Welcome to theCUBE's coverage of VMware Explore 2022. We are at Moscone West. Lisa Martin and Dave Nicholson here. Excited, really excited, whereas they were saying in the VMware keynote, pumped and jacked and jazzed to be back in-person with a lot of folks here. Keynote with standing room only. We've just come from that. We've got a couple of guests here from Expedient, going to unpack their relationship with VMware. Please welcome Brian Smith, the Senior Vice President and Chief Strategy Officer at Expedient. And Brent Meadows, the Vice President of Advanced Solution Architecture at Expedient. Guys it's great to have you on the program. >> Appreciate it bringing us on. >> Yep, welcome. >> Isn't it great to be back in person? >> It is phenomenal to be back. >> So let's talk about obviously three years since the last, what was called VMworld, so many dynamics in the market. Talk to us about what's going on at Expedient, we want to dig into Cloud Different, but kind of give us a lay of the land of what's going on and then we're going to uncrack the VMware partnership as well. >> Sure, so Expedient we're a full stack cloud service provider. So we have physical data centers that we run and then have VMware-based cloud and we've seen a huge shift from the client perspective during the pandemic in how they've really responded from everything pre-pandemic was very focused with Cloud First and trying to go that route only with hyper scaler. And there's been a big evolution with how people have to change how they think about their transformation to get the end result they're looking for. >> Talk about Cloud Different and what it's helping customers to achieve as everyone's in this accelerated transformation. >> Yeah. So, Cloud Different is something that Expedient branded. It's really about how the transformation works. And traditionally, companies thought about doing their transformation, at first they kept everything in house that they were doing and they started building their new applications out into a hyper scale cloud. And what that really is like is, a good analogy would be, it's like living in a house while you're renovating it. And I know what that's like from my relationship versus if you build a new house, or move to a new property that's completed already. And that's really the difference in that experience from a Cloud Different approach from transformation is you think of all the things that you have internally, and there's a lot of technical debt there, and that's a lot of weight that you're carrying when you're trying to do that transformation. So if you kind of flip that around and instead look to make that transformation and move all that technical debt into a cloud that's already built to run those same types of applications, a VMware-based cloud, now you can remove all of that noise, move into a curated stack of technology and everything just works. It has the security in place, your teams know how to run it, and then you can take that time you really reclaim and apply that towards new applications and new things that are strategic to the business. >> That's really critical, Brent, to get folks in the IT organization across the business, really focused on strategic initiatives rather than a lot of the mundane tasks that they just don't have time for. Brent, what are you hearing in the last couple of years with the dynamics we talked about, what are you hearing from the customer? >> Right. So, one of the big things and the challenges in the current dynamic is kind of that staffing part. So as people have built their infrastructure over the years, there's a lot of tribal knowledge that's been created during that process and every day more and more of that knowledge is walking out the door. So taking some of that technical debt that Brian mentioned and kind of removing that so you don't have to have all that tribal knowledge, really standardizing on the foundational infrastructure pieces, allows them to make that transition and not have to carry that technical debt along with them as they make their digital transformations. >> We heard a lot this morning in the keynote guys about customers going, most of them still being in cloud chaos, but VMware wanting them to get to cloud smart. What does that mean, Brian, from Expedient's perspective? What does cloud smart look like to Expedient and its customers? >> Yeah, we completely agree with that message. And it's something we've been preaching for a couple years in part of that Cloud Different story. And it's really about having a consistent wrapper across all of your environments. It doesn't matter if it's things that you're running on-premises that's legacy to things that are in a VMware-based cloud, like an Expedient cloud or things that are in a hyper scale, but having one consistent security, one consistent automation, one consistent cost management, really gives you the governance so that you can get the value out of cloud that you are hoping for and remove a lot of the noise and think less about the technology and more about what the business is getting out of the technology. >> So what does that look like as a practical matter? I imagine you have customers whose on-premises VMware environments look different than what you've created within Expedient data centers. I'm thinking of things like the level of adoption of NSX, how well a customer may embrace VSAN on-prem as an example. Is part of this transmogrification into your data center, kind of nudging people to adopt frameworks that are really necessary for success in the future? >> It's less of a nudge because a lot of times as a service provider, we don't talk about the technology, we talk more about the outcome. So the nice thing with VMware is we can move that same virtual machine or that container into the platform and the client doesn't always know exactly what's underneath because we have that standardized VMware stack and it just works. And that's part of the beauty of the process. I dunno if you want to talk about a specific client or... >> Yeah, so one of the ones we worked with is Bob Evans Foods. So they were in that transformation stage of refreshing, not only their office space and their data center, but also their VMware environment. So we helped them go through and first thing is looking at their existing environment, figuring out what they currently have, because you can't really make a good decision of what you need to change until you know where you're starting from. So we worked with them through that process, completely evacuated their data center. And from a business perspective, what that allowed them to do as well is have more flexibility in the choice of their next corporate office, because they didn't have to have a data center attached to it. So just from that data center perspective, we gave them some flexibility there. But then from an operations perspective, really standardize that process, offloaded some of those menial tasks that you mentioned earlier, and allow them to really look more towards business-driving projects, instead of just trying to keep those lights on, keeping the backups running, et cetera. >> Brian, question for you, here we are, the theme of the event is "The Center of the Multi-cloud Universe" which seems like a Marvel movie, I haven't seen any new superheroes yet, but I suspect there might be some here. But as customers end up and land in multi-cloud by default not by strategy, how does Expedient and VMware help them actually take the environment that they have and make it strategic so that the business can achieve the outcomes, improving revenue, finding new revenue streams, new products, new routes to market to delight those customers. How do you turn that kind of cloud chaos into a strategy? >> Yeah. I'd say there's a couple different components. One is really time. How can you give them time back for things that are creating noise and aren't really strategic to the business? And so if you can give that time back, that's the first way that you can really impact the business. And the second is through that standardization, but also a lot of times when people think of that new standard, they're only thinking if you're building from scratch. And what VMware has really helped is by taking those existing workloads and giving a standard that works for those applications and what you're building new and brings those together under a common platform and so had a really significant impact to the speed that somebody can get to that cloud operating model, that used to be a multi-year process and most of our clients can go from really everything or almost everything on-prem and a little bit in a cloud to a complete cloud operating model, on average, in four to six months. >> Wow! >> So if I have an on-premises environment and some of my workloads are running in a VMware context, VMware would make the pitch in an agnostic way that, "Well, you can go and deploy that "on top of a stack of infrastructure "and anybody and anywhere now." Why do customers come to you instead of saying, "Oh, we'll go to "pick your flavor of hyper scale cloud provider." What's kind of your superpower? You've mentioned a couple of things, but really hone it in on, why would someone want to go to Expedient? >> Yeah. In a single word, service. I mean, we have a 99% client retention rate and have for well over a decade. So it's really that expertise that wraps around all the different technology so that you're not worried about what's happening and you're not worried about trying to keep the lights on and doing the firefighting. You're really focused on the business. And the other way to, I guess another analogy is, if you think about a lot of the technology and the way people go to cloud, it's like if you got a set of Legos without the box or the instructions. So you can build stuff, it could be cool, but you're not going to get to that end state-- >> Hold on. That's how Legos used to work. Just maybe you're too young to remember a time-- >> You see their sales go up because now you buy a different set for this-- >> I build those sets with my son, but I do it grudgingly. >> Do you ever step on one? >> Of course I do. >> Yeah, there's some pain involved. Same thing happens in the transformation. So when they're buying services from an Expedient, you're buying that box set where you have a picture of what your outcome's going to be, the instructions are there. So you also have confidence that you're going to get to the end outcome much faster than you would if you're trying to assemble everything yourself. (David laughing) >> In my mind, I'm imagining the things that I built with Lego, before there were instructions. >> No death star? >> No. Nothing close with the death star. Definitely something that you would not want your information technology to depend upon. >> Got it. >> Brent, we've seen obviously, it seems like every customer these days, regardless of industry has a cloud first initiative. They have competitors in the rear view mirror who are, if they're able to be more agile and faster to market, are potential huge competitive threat. As we see the rise of multi-cloud in the last 12 months, there's also been a lot of increased analyst coverage for alternate specialty hybrid cloud. Talk to us about, Expedient was in the recent Gartner market guide for specialty cloud. How are these related? What's driving this constant change out in the customer marketplace? >> Sure. So a lot of that agility that clients are getting and trying to do that digital transformation or refactor their applications requires a lot of effort from the developers and the internal IT practitioners. So by moving to a model with an enterprise kind of like Expedient, that allows them to get a consistent foundational level for those technical debt, the 'traditional workloads' where they can start focusing their efforts more on that refactoring of their applications, to get that agility, to get the flexibility, to get the market advantage of time to market with their new refactored applications. That takes them much faster to market, allows them to get ahead of those competitors, if they're not already ahead of them, get further ahead of them or catch up the ones that may have already made that transition. >> And I would add that the analyst coverage you've seen in the last 9 to 12 months, really accelerate for our type of cloud because before everything was hyper scale, everything's going to be hyper scale and they realized that companies have been trying to go to the cloud really for over a decade, really 15 years, that digital transformation, but most companies, when you look at the analysts say they're about 30% there, they've hit a plateau. So they need to look at a different way to approach that. And they're realizing that a VMware-based cloud or the specialty cloud providers give a different mode of cloud. Because you had of a pendulum that everything was on-premises, everything swung to cloud first and then it swung to multi-cloud, which meant multiple hyper scale providers and now it's really landing at that equilibrium where you have different modes of cloud. So it's similar like if you want to travel the world, you don't use one mode of transportation to get from one continent to the other. You have to use different modes. Same thing to get all the way to that cloud transformation, you need to use different modes of cloud, an enterprise cloud, a hyper scale cloud, working them together with that common management plan. >> And with that said Brian, where have customer conversations gone in the last couple of years? Obviously this has got to be an executive level, maybe even a board level conversation. Talk to us about how your customer conversations have changed. Have the stakeholders changed? Has things gone up to stack? >> Yeah. The business is much more involved than what it's been in the past and some of the drivers, even through the pandemic, as people reevaluate office space, a lot of times data centers were part of the same building. Or they were added into a review that nobody ever asked, "Well, why are you only using 20% of your data center?" So now that conversation is very active and they're reevaluating that and then the conversation shifts to "Where's the best place?" And that's a lot of, the conference also talks about the best place for your application for the workload in the right location. >> My role here is to dive down into the weeds constantly to stay away from business outcomes and things like that. But somewhere in the middle there's this question of how what you provide is consumed. So fair to assume that often people are moving from CapEx model to an OPEX model where they're consuming by the glass, by the drink. What does that mean organizationally for your customers? And do you help them work through that journey, reorganizing their internal organization to take advantage of cloud? Is that something that Expedient is a part of, or do you have partners that help them through that? How does that work? >> Yeah. There's some unique things that an enterprise doesn't understand when they think about what they've done on-prem versus a service provider is. There's whole models that they can purchase with us in consumption, not just the physical hardware, but licensing as well. Do you want to talk about how clients actually step in and start to do that evaluation? >> Sure. So it really kind of starts on the front end of evaluating what they have. So going through an assessment process, because traditionally, if you have a big data center full of hardware, you've already paid for it. So as you're deploying new workloads, it's "free to deploy." But when you go to that cloud operating model, you're paying for each drink that you're taking. So we want to make sure that as they're going into that cloud operating model, that they are right sized on the front end. They're not over-provisioned on anything that they're going to just waste money and resources on after they make that transition. So it's really about giving them great data on the front end, doing all that collection from a foundational level, from a infrastructure level, but also from a business and IT operations perspective and figuring out where they're spending, not just their money, but also their time and effort and helping them streamline and simplify those IT operations. >> Let's talk about one of the other elephants in the room and that is the remote hybrid workforce. Obviously it's been two and a half years, which is hard to believe. I think I'm one of the only people that hates working from home. Most people, do you too? Okay, good. Thank you, we're normal. >> Absolutely. (Lisa laughing) But VMware was talking about desktop as a service, there was so much change and quick temporary platform set up to accommodate offsite workers during the pandemic. What are some of the experiences that your clients are having and how is Expedient plus VMware helping businesses adapt and really create them the right hybrid model for them going forward? >> Sure. So as part of being that full sack cloud service provider, desktop in that remote user has to be part of that consideration. And one of the biggest things we saw with the pandemic was people stood up what we call pandemic VDI, very temporary solutions. And you saw the news articles that they said, "We did it in 10 days." And how many big transformational events do people plan and execute in 10 days that transform their workforce? So now they're having to come back and say, "Okay, what's the right way to deploy it?" And do you want to talk about some of the specifics of what we're seeing in the adjustments that they're doing? >> Sure. So it is, when you look at it from the end user perspective, it's how they're operating, how they're getting their tools through their day to day job, but it's also the IT administrators that are having to provide that service to the end users. So it's really kind of across the board, it's affecting everyone. So it's really kind of going through and helping them figure out how they're going to support their users going forward. So we've spun up things like VMware desktop as a service providing that multi-tenant ability to consume on a per desktop basis, but then we've also wrapped around with a lot of security features. So one of the big things is as people are going and distributing where they're working from, that data and access to data is also opened up to those locations. So putting those protections in place to be able to protect the environment and then be able, if something does get in, to be able to detect what's going on. And then of course, with a lot of the other components, being able to recover those environments. So building the desktops, the end user access into the disaster recovery plans. >> And talk more, a little bit Brent, about the security aspect. We've seen the threat landscape change dramatically in the last couple of years, ransomware is a household word. I'm pretty sure even my mom knows what that means, to some degree. Where is that in customer conversations? I can imagine in certain industries like financial services and healthcare with PII, it's absolutely critical to ensure that that data is, they know where it is. It's protected and it's recoverable, 'cause everyone's talking about cyber resilience these days. >> Right. And if it's not conversation 1, it's conversation 1A. So it's really kind of core to everything that we do when we're talking to clients. It's whether it's production DR or the desktops, is building that security in place to help them build their security practice up. So when you think about it, it's doing it at layers. So starting with things like more advanced antivirus to see what's actually going on the desktop and then kind of layering above there. So even up to micro-segmentation, where you can envelop each individual desktop in their own quasi network, so that they're only allowed kind of that zero trust model where, Hey, if you can get to a file share, that's the only place you should be going or do I need web apps to get my day to day job done, but really restricting that access and making sure that everything is more good traffic versus unknown traffic. >> Yeah. >> And also on the, you asked about the clouds smarter earlier. And you can really weave the desktop into that because when you're thinking of your production compute environment and your remote desktop environment, and now you can actually share storage together, you can share security together and you start to get economies of scale across those different environments as well. >> So as we are in August, I think still yeah, 2022, barely for a couple more days, lot of change going on at VMware. Expedient has been VMware America's partner of the year before. Talk to us about some of the things that you think from a strategic perspective are next for the partnership. >> That it's definitely the multi-cloud world is here. And it's how we can go deeper, how we're going to see that really mature. You know, one of the things that we've actually done together this year was we worked on a project and evaluated over 30 different companies of what they spend on IT. Everything from the physical data center to the entire stack, to people and actually build a cloud transformation calculator that allows you to compare strategies, so that if you look at Strategy A over a five year period, doing your current transformation, versus that Cloud Different approach, it can actually help quantify the number of hours difference that you can get, the total cost of ownership and the speed that you can get there. So it's things like that that help people make easier decisions and simplify information are going to be part of it. But without a doubt, it's going to be how you can have that wrapper across all of your different environments that really delivers that cloud-like environment that panacea people have been looking for. >> Yeah. That panacea, that seems like it's critical for every organization to achieve. Last question for you. When customers come to you, when they've hit that plateau. They come to Expedient saying, "Guys, with VMware, help us accelerate past this. "We don't have the time, we need to get this done quickly." How do you advise them to move forward? >> Sure. So it goes back to that, what's causing them to hit that plateau? Is it more on the development side of things? Is it the infrastructure teams, not being able to respond fast enough to the developers? And really putting a plan in place to really get rid of those plateaus. It could be getting rid of the technical debt. It could be changing the IT operations and kind of that, the way that they're looking at a cloud transformation model, to help them kind of get accelerated and get them back on the right path. >> Back on the right path. I think we all want to get back on the right path. Guys, thank you so much for joining David and me on theCUBE today, talking about Expedient Cloud Different, what you're seeing in the marketplace, and how Expedient and VMware are helping customers to succeed. We appreciate your time. >> Yep. >> Thanks for having us. >> For our guests and Dave Nicholson, I'm Lisa Martin. You're watching theCUBE live from VMware Explorer '22, stick around, Dave and I will be back shortly with our next guest. (gentle upbeat music)

>>Alteryx is a company with a long history that goes all the way back to the late 1990s. Now the one consistent theme over 20 plus years has been that Ultrix has always been a data company early in the big data and Hadoop cycle. It saw the need to combine and prep different data types so that organizations could analyze data and take action Altrix and similar companies played a critical role in helping companies become data-driven. The problem was the decade of big data, brought a lot of complexities and required immense skills just to get the technology to work as advertised this in turn limited, the pace of adoption and the number of companies that could really lean in and take advantage of the cloud began to change all that and set the foundation for today's theme to Zuora of digital transformation. We hear that phrase a ton digital transformation. >>People used to think it was a buzzword, but of course we learned from the pandemic that if you're not a digital business, you're out of business and a key tenant of digital transformation is democratizing data, meaning enabling, not just hypo hyper specialized experts, but anyone business users to put data to work. Now back to Ultrix, the company has embarked on a major transformation of its own. Over the past couple of years, brought in new management, they've changed the way in which it engaged with customers with the new subscription model and it's topgraded its talent pool. 2021 was even more significant because of two acquisitions that Altrix made hyper Ana and trifecta. Why are these acquisitions important? Well, traditionally Altryx sold to business analysts that were part of the data pipeline. These were fairly technical people who had certain skills and were trained in things like writing Python code with hyper Ana Altryx has added a new persona, the business user, anyone in the business who wanted to gain insights from data and, or let's say use AI without having to be a deep technical expert. >>And then Trifacta a company started in the early days of big data by cube alum, Joe Hellerstein and his colleagues at Berkeley. They knocked down the data engineering persona, and this gives Altryx a complimentary extension into it where things like governance and security are paramount. So as we enter 2022, the post isolation economy is here and we do so with a digital foundation built on the confluence of cloud native technologies, data democratization and machine intelligence or AI, if you prefer. And Altryx is entering that new era with an expanded portfolio, new go-to market vectors, a recurring revenue business model, and a brand new outlook on how to solve customer problems and scale a company. My name is Dave Vellante with the cube and I'll be your host today. And the next hour, we're going to explore the opportunities in this new data market. And we have three segments where we dig into these trends and themes. First we'll talk to Jay Henderson, vice president of product management at Ultrix about cloud acceleration and simplifying complex data operations. Then we'll bring in Suresh Vetol who's the chief product officer at Altrix and Adam Wilson, the CEO of Trifacta, which of course is now part of Altrix. And finally, we'll hear about how Altryx is partnering with snowflake and the ecosystem and how they're integrating with data platforms like snowflake and what this means for customers. And we may have a few surprises sprinkled in as well into the conversation let's get started. >>We're kicking off the program with our first segment. Jay Henderson is the vice president of product management Altryx and we're going to talk about the trends and data, where we came from, how we got here, where we're going. We get some launch news. Well, Jay, welcome to the cube. >>Great to be here, really excited to share some of the things we're working on. >>Yeah. Thank you. So look, you have a deep product background, product management, product marketing, you've done strategy work. You've been around software and data, your entire career, and we're seeing the collision of software data cloud machine intelligence. Let's start with the customer and maybe we can work back from there. So if you're an analytics or data executive in an organization, w J what's your north star, where are you trying to take your company from a data and analytics point of view? >>Yeah, I mean, you know, look, I think all organizations are really struggling to get insights out of their data. I think one of the things that we see is you've got digital exhaust, creating large volumes of data storage is really cheap, so it doesn't cost them much to keep it. And that results in a situation where the organization's, you know, drowning in data, but somehow still starving for insights. And so I think, uh, you know, when I talk to customers, they're really excited to figure out how they can put analytics in the hands of every single person in their organization, and really start to democratize the analytics, um, and, you know, let the, the business users and the whole organization get value out of all that data they have. >>And we're going to dig into that throughout this program data, I like to say is plentiful insights, not always so much. Tell us about your launch today, Jay, and thinking about the trends that you just highlighted, the direction that your customers want to go and the problems that you're solving, what role does the cloud play in? What is what you're launching? How does that fit in? >>Yeah, we're, we're really excited today. We're launching the Altryx analytics cloud. That's really a portfolio of cloud-based solutions that have all been built from the ground up to be cloud native, um, and to take advantage of things like based access. So that it's really easy to give anyone access, including folks on a Mac. Um, it, you know, it also lets you take advantage of elastic compute so that you can do, you know, in database processing and cloud native, um, solutions that are gonna scale to solve the most complex problems. So we've got a portfolio of solutions, things like designer cloud, which is our flagship designer product in a browser and on the cloud, but we've got ultra to machine learning, which helps up-skill regular old analysts with advanced machine learning capabilities. We've got auto insights, which brings a business users into the fold and automatically unearths insights using AI and machine learning. And we've got our latest edition, which is Trifacta that helps data engineers do data pipelining and really, um, you know, create a lot of the underlying data sets that are used in some of this, uh, downstream analytics. >>Let's dig into some of those roles if we could a little bit, I mean, you've traditionally Altryx has served the business analysts and that's what designer cloud is fit for, I believe. And you've explained, you know, kind of the scope, sorry, you've expanded that scope into the, to the business user with hyper Anna. And we're in a moment we're going to talk to Adam Wilson and Suresh, uh, about Trifacta and that recent acquisition takes you, as you said, into the data engineering space in it. But in thinking about the business analyst role, what's unique about designer cloud cloud, and how does it help these individuals? >>Yeah, I mean, you know, really, I go back to some of the feedback we've had from our customers, which is, um, you know, they oftentimes have dozens or hundreds of seats of our designer desktop product, you know, really, as they look to take the next step, they're trying to figure out how do I give access to that? Those types of analytics to thousands of people within the organization and designer cloud is, is really great for that. You've got the browser-based interface. So if folks are on a Mac, they can really easily just pop, open the browser and get access to all of those, uh, prep and blend capabilities to a lot of the analysis we're doing. Um, it's a great way to scale up access to the analytics and then start to put it in the hands of really anyone in the organization, not just those highly skilled power users. >>Okay, great. So now then you add in the hyper Anna acquisition. So now you're targeting the business user Trifacta comes into the mix that deeper it angle that we talked about, how does this all fit together? How should we be thinking about the new Altryx portfolio? >>Yeah, I mean, I think it's pretty exciting. Um, you know, when you think about democratizing analytics and providing access to all these different groups of people, um, you've not been able to do it through one platform before. Um, you know, it's not going to be one interface that meets the, of all these different groups within the organization. You really do need purpose built specialized capabilities for each group. And finally, today with the announcement of the alternates analytics cloud, we brought together all of those different capabilities, all of those different interfaces into a single in the end application. So really finally delivering on the promise of providing analytics to all, >>How much of this you've been able to share with your customers and maybe your partners. I mean, I know OD is fairly new, but if you've been able to get any feedback from them, what are they saying about it? >>Uh, I mean, it's, it's pretty amazing. Um, we ran a early access, limited availability program that led us put a lot of this technology in the hands of over 600 customers, um, over the last few months. So we have gotten a lot of feedback. I tell you, um, it's been overwhelmingly positive. I think organizations are really excited to unlock the insights that have been hidden in all this data. They've got, they're excited to be able to use analytics in every decision that they're making so that the decisions they have or more informed and produce better business outcomes. Um, and, and this idea that they're going to move from, you know, dozens to hundreds or thousands of people who have access to these kinds of capabilities, I think has been a really exciting thing that is going to accelerate the transformation that these customers are on. >>Yeah, those are good. Good, good numbers for, for preview mode. Let's, let's talk a little bit about vision. So it's democratizing data is the ultimate goal, which frankly has been elusive for most organizations over time. How's your cloud going to address the challenges of putting data to work across the entire enterprise? >>Yeah, I mean, I tend to think about the future and some of the investments we're making in our products and our roadmap across four big themes, you know, in the, and these are really kind of enduring themes that you're going to see us making investments in over the next few years, the first is having cloud centricity. You know, the data gravity has been moving to the cloud. We need to be able to provide access, to be able to ingest and manipulate that data, to be able to write back to it, to provide cloud solution. So the first one is really around cloud centricity. The second is around big data fluency. Once you have all of the data, you need to be able to manipulate it in a performant manner. So having the elastic cloud infrastructure and in database processing is so important, the third is around making AI a strategic advantage. >>So, uh, you know, getting everyone involved and accessing AI and machine learning to unlock those insights, getting it out of the hands of the small group of data scientists, putting it in the hands of analysts and business users. Um, and then the fourth thing is really providing access across the entire organization. You know, it and data engineers, uh, as well as business owners and analysts. So, um, cloud centricity, big data fluency, um, AI is a strategic advantage and, uh, personas across the organization are really the four big themes you're going to see us, uh, working on over the next few months and, uh, coming coming year. >>That's good. Thank you for that. So, so on a related question, how do you see the data organizations evolving? I mean, traditionally you've had, you know, monolithic organizations, uh, very specialized or I might even say hyper specialized roles and, and your, your mission of course is the customer. You, you, you, you and your customers, they want to democratize the data. And so it seems logical that domain leaders are going to take more responsibility for data, life cycles, data ownerships, low code becomes more important. And perhaps this kind of challenges, the historically highly centralized and really specialized roles that I just talked about. How do you see that evolving and, and, and what role will Altryx play? >>Yeah. Um, you know, I think we'll see sort of a more federated systems start to emerge. Those centralized groups are going to continue to exist. Um, but they're going to start to empower, you know, in a much more de-centralized way, the people who are closer to the business problems and have better business understanding. I think that's going to let the centralized highly skilled teams work on, uh, problems that are of higher value to the organization. The kinds of problems where one or 2% lift in the model results in millions of dollars a day for the business. And then by pushing some of the analytics out to, uh, closer to the edge and closer to the business, you'll be able to apply those analytics in every single decision. So I think you're going to see, you know, both the decentralized and centralized models start to work in harmony and a little bit more about almost a federated sort of a way. And I think, you know, the exciting thing for us at Altryx is, you know, we want to facilitate that. We want to give analytic capabilities and solutions to both groups and types of people. We want to help them collaborate better, um, and drive business outcomes with the analytics they're using. >>Yeah. I mean, I think my take on another one, if you could comment is to me, the technology should be an operational detail and it has been the, the, the dog that wags the tail, or maybe the other way around, you mentioned digital exhaust before. I mean, essentially it's digital exhaust coming out of operationals systems that then somehow, eventually end up in the hand of the domain users. And I wonder if increasingly we're going to see those domain users, users, those, those line of business experts get more access. That's your goal. And then even go beyond analytics, start to build data products that could be monetized, and that maybe it's going to take a decade to play out, but that is sort of a new era of data. Do you see it that way? >>Absolutely. We're actually making big investments in our products and capabilities to be able to create analytic applications and to enable somebody who's an analyst or business user to create an application on top of the data and analytics layers that they have, um, really to help democratize the analytics, to help prepackage some of the analytics that can drive more insights. So I think that's definitely a trend we're going to see more. >>Yeah. And to your point, if you can federate the governance and automate that, then that can happen. I mean, that's a key part of it, obviously. So, all right, Jay, we have to leave it there up next. We take a deep dive into the Altryx recent acquisition of Trifacta with Adam Wilson who led Trifacta for more than seven years. It's the recipe. Tyler is the chief product officer at Altryx to explain the rationale behind the acquisition and how it's going to impact customers. Keep it right there. You're watching the cube. You're a leader in enterprise tech coverage. >>It's go time, get ready to accelerate your data analytics journey with a unified cloud native platform. That's accessible for everyone on the go from home to office and everywhere in between effortless analytics to help you go from ideas to outcomes and no time. It's your time to shine. It's Altryx analytics cloud time. >>Okay. We're here with. Who's the chief product officer at Altryx and Adam Wilson, the CEO of Trifacta. Now of course, part of Altryx just closed this quarter. Gentlemen. Welcome. >>Great to be here. >>Okay. So let me start with you. In my opening remarks, I talked about Altrix is traditional position serving business analysts and how the hyper Anna acquisition brought you deeper into the business user space. What does Trifacta bring to your portfolio? Why'd you buy the company? >>Yeah. Thank you. Thank you for the question. Um, you know, we see, uh, we see a massive opportunity of helping, um, brands, um, democratize the use of analytics across their business. Um, every knowledge worker, every individual in the company should have access to analytics. It's no longer optional, um, as they navigate their businesses with that in mind, you know, we know designer and are the products that Altrix has been selling the past decade or so do a really great job, um, addressing the business analysts, uh, with, um, hyper Rana now kind of renamed, um, Altrix auto. We even speak with the business owner and the line of business owner. Who's looking for insights that aren't real in traditional dashboards and so on. Um, but we see this opportunity of really helping the data engineering teams and it organizations, um, to also make better use of analytics. Um, and that's where the drive factor comes in for us. Um, drive factor has the best data engineering cloud in the planet. Um, they have an established track record of working across multiple cloud platforms and helping data engineers, um, do better data pipelining and work better with, uh, this massive kind of cloud transformation that's happening in every business. Um, and so fact made so much sense for us. >>Yeah. Thank you for that. I mean, you, look, you could have built it yourself would have taken, you know, who knows how long, you know, but, uh, so definitely a great time to market move, Adam. I wonder if we could dig into Trifacta some more, I mean, I remember interviewing Joe Hellerstein in the early days. You've talked about this as well, uh, on the cube coming at the problem of taking data from raw refined to an experience point of view. And Joe in the early days, talked about flipping the model and starting with data visualization, something Jeff, her was expert at. So maybe explain how we got here. We used to have this cumbersome process of ETL and you may be in some others changed that model with ELL and then T explain how Trifacta really changed the data engineering game. >>Yeah, that's exactly right. Uh, David, it's been a really interesting journey for us because I think the original hypothesis coming out of the campus research, uh, at Berkeley and Stanford that really birth Trifacta was, you know, why is it that the people who know the data best can't do the work? You know, why is this become the exclusive purview of the highly technical? And, you know, can we rethink this and make this a user experience, problem powered by machine learning that will take some of the more complicated things that people want to do with data and really help to automate those. So, so a broader set of, of users can, um, can really see for themselves and help themselves. And, and I think that, um, there was a lot of pent up frustration out there because people have been told for, you know, for a decade now to be more data-driven and then the whole time they're saying, well, then give me the data, you know, in the shape that I could use it with the right level of quality and I'm happy to be, but don't tell me to be more data-driven and then, and, and not empower me, um, to, to get in there and to actually start to work with the data in meaningful ways. >>And so, um, that was really, you know, what, you know, the origin story of the company and I think is, as we, um, saw over the course of the last 5, 6, 7 years that, um, you know, uh, real, uh, excitement to embrace this idea of, of trying to think about data engineering differently, trying to democratize the, the ETL process and to also leverage all these exciting new, uh, engines and platforms that are out there that allow for processing, you know, ever more diverse data sets, ever larger data sets and new and interesting ways. And that's where a lot of the push-down or the ELT approaches that, you know, I think it could really won the day. Um, and that, and that for us was a hallmark of the solution from the very beginning. >>Yeah, this is a huge point that you're making is, is first of all, there's a large business, it's probably about a hundred billion dollar Tam. Uh, and the, the point you're making, because we've looked, we've contextualized most of our operational systems, but the big data pipeline is hasn't gotten there. But, and maybe we could talk about that a little bit because democratizing data is Nirvana, but it's been historically very difficult. You've got a number of companies it's very fragmented and they're all trying to attack their little piece of the problem to achieve an outcome, but it's been hard. And so what's going to be different about Altryx as you bring these puzzle pieces together, how is this going to impact your customers who would like to take that one? >>Yeah, maybe, maybe I'll take a crack at it. And Adam will, um, add on, um, you know, there hasn't been a single platform for analytics, automation in the enterprise, right? People have relied on, uh, different products, um, to solve kind of, uh, smaller problems, um, across this analytics, automation, data transformation domain. Um, and, um, I think uniquely Alcon's has that opportunity. Uh, we've got 7,000 plus customers who rely on analytics for, um, data management, for analytics, for AI and ML, uh, for transformations, uh, for reporting and visualization for automated insights and so on. Um, and so by bringing drive factor, we have the opportunity to scale this even further and solve for more use cases, expand the scenarios where it's applied and so multiple personas. Um, and we just talked about the data engineers. They are really a growing stakeholder in this transformation of data and analytics. >>Yeah, good. Maybe we can stay on this for a minute cause you, you you're right. You bring it together. Now at least three personas the business analyst, the end user slash business user. And now the data engineer, which is really out of an it role in a lot of companies, and you've used this term, the data engineering cloud, what is that? How is it going to integrate in with, or support these other personas? And, and how's it going to integrate into the broader ecosystem of clouds and cloud data warehouses or any other data stores? >>Yeah, no, that's great. Uh, yeah, I think for us, we really looked at this and said, you know, we want to build an open and interactive cloud platform for data engineers, you know, to collaboratively profile pipeline, um, and prepare data for analysis. And that really meant collaborating with the analysts that were in the line of business. And so this is why a big reason why this combination is so magic because ultimately if we can get the data engineers that are creating the data products together with the analysts that are in the line of business that are driving a lot of the decision making and allow for that, what I would describe as collaborative curation of the data together, so that you're starting to see, um, uh, you know, increasing returns to scale as this, uh, as this rolls out. I just think that is an incredibly powerful combination and, and frankly, something that the market is not crack the code on yet. And so, um, I think when we, when I sat down with Suresh and with mark and the team at Ultrix, that was really part of the, the, the big idea, the big vision that was painted and got us really energized about the acquisition and about the potential of the combination. >>And you're really, you're obviously writing the cloud and the cloud native wave. Um, and, but specifically we're seeing, you know, I almost don't even want to call it a data warehouse anyway, because when you look at what's, for instance, Snowflake's doing, of course their marketing is around the data cloud, but I actually think there's real justification for that because it's not like the traditional data warehouse, right. It's, it's simplified get there fast, don't necessarily have to go through the central organization to share data. Uh, and, and, and, but it's really all about simplification, right? Isn't that really what the democratization comes down to. >>Yeah. It's simplification and collaboration. Right. I don't want to, I want to kind of just what Adam said resonates with me deeply. Um, analytics is one of those, um, massive disciplines inside an enterprise that's really had the weakest of tools. Um, and we just have interfaces to collaborate with, and I think truly this was all drinks and a superpower was helping the analysts get more out of their data, get more out of the analytics, like imagine a world where these people are collaborating and sharing insights in real time and sharing workflows and getting access to new data sources, um, understanding data models better, I think, um, uh, curating those insights. I boring Adam's phrase again. Um, I think that creates a real value inside the organization because frankly in scaling analytics and democratizing analytics and data, we're still in such early phases of this journey. >>So how should we think about designer cloud, which is from Altrix it's really been the on-prem and the server desktop offering. And of course Trifacta is with cloud cloud data warehouses. Right. Uh, how, how should we think about those two products? Yeah, >>I think, I think you should think about them. And, uh, um, as, as very complimentary right designer cloud really shares a lot of DNA and heritage with, uh, designer desktop, um, the low code tooling and that interface, uh, the really appeals to the business analysts, um, and gets a lot of the things that they do well, we've also built it with interoperability in mind, right. So if you started building your workflows in designer desktop, you want to share that with design and cloud, we want to make it super easy for you to do that. Um, and I think over time now we're only a week into, um, this Alliance with, um, with, um, Trifacta, um, I think we have to get deeper inside to think about what does the data engineer really need? What's the business analysts really need and how to design a cloud, and Trifacta really support both of those requirements, uh, while kind of continue to build on the trifecta on the amazing Trifacta cloud platform. >>You know, >>I think we're just going to say, I think that's one of the things that, um, you know, creates a lot of, uh, opportunity as we go forward, because ultimately, you know, Trifacta took a platform, uh, first mentality to everything that we built. So thinking about openness and extensibility and, um, and how over time people could build things on top of factor that are a variety of analytic tool chain, or analytic applications. And so, uh, when you think about, um, Ultrix now starting to, uh, to move some of its capabilities or to provide additional capabilities, uh, in the cloud, um, you know, Trifacta becomes a platform that can accelerate, you know, all of that work and create, uh, uh, a cohesive set of, of cloud-based services that, um, share a common platform. And that maintains independence because both companies, um, have been, uh, you know, fiercely independent, uh, and, and really giving people choice. >>Um, so making sure that whether you're, uh, you know, picking one cloud platform and other, whether you're running things on the desktop, uh, whether you're running in hybrid environments, that, um, no matter what your decision, um, you're always in a position to be able to get out your data. You're always in a position to be able to cleanse transform shape structure, that data, and ultimately to deliver, uh, the analytics that you need. And so I think in that sense, um, uh, you know, this, this again is another reason why the combination, you know, fits so well together, giving people, um, the choice. Um, and as they, as they think about their analytics strategy and their platform strategy going forward, >>Yeah. I make a chuckle, but one of the reasons I always liked Altrix is cause you kinda did the little end run on it. It can be a blocker sometimes, but that created problems, right? Because the organization said, wow, this big data stuff has taken off, but we need security. We need governance. And it's interesting because you've got, you know, ETL has been complex, whereas the visualization tools, they really, you know, really weren't great at governance and security. It took some time there. So that's not, not their heritage. You're bringing those worlds together. And I'm interested, you guys just had your sales kickoff, you know, what was their reaction like? Uh, maybe Suresh, you could start off and maybe Adam, you could bring us home. >>Um, thanks for asking about our sales kickoff. So we met for the first time and you've got a two years, right. For, as, as it is for many of us, um, in person, uh, um, which I think was a, was a real breakthrough as Qualtrics has been on its transformation journey. Uh, we added a Trifacta to, um, the, the potty such as the tour, um, and getting all of our sales teams and product organizations, um, to meet in person in one location. I thought that was very powerful for other the company. Uh, but then I tell you, um, um, the reception for Trifacta was beyond anything I could have imagined. Uh, we were working out him and I will, when he's so hot on, on the deal and the core hypotheses and so on. And then you step back and you're going to share the vision with the field organization, and it blows you away, the energy that it creates among our sellers out of partners. >>And I'm sure Madam will and his team were mocked, um, every single day, uh, with questions and opportunities to bring them in. But Adam, maybe you should share. Yeah, no, it was, uh, it was through the roof. I mean, uh, uh, the, uh, the amount of energy, the, uh, certainly how welcoming everybody was, uh, uh, you know, just, I think the story makes so much sense together. I think culturally, the company is, are very aligned. Um, and, uh, it was a real, uh, real capstone moment, uh, to be able to complete the acquisition and to, and to close and announced, you know, at the kickoff event. And, um, I think, you know, for us, when we really thought about it, you know, when we ended, the story that we told was just, you have this opportunity to really cater to what the end users care about, which is a lot about interactivity and self-service, and at the same time. >>And that's, and that's a lot of the goodness that, um, that Altryx is, has brought, you know, through, you know, you know, years and years of, of building a very vibrant community of, you know, thousands, hundreds of thousands of users. And on the other side, you know, Trifacta bringing in this data engineering focus, that's really about, uh, the governance things that you mentioned and the openness, um, that, that it cares deeply about. And all of a sudden, now you have a chance to put that together into a complete story where the data engineering cloud and analytics, automation, you know, coming together. And, um, and I just think, you know, the lights went on, um, you know, for people instantaneously and, you know, this is a story that, um, that I think the market is really hungry for. And certainly the reception we got from, uh, from the broader team at kickoff was, uh, was a great indication. >>Well, I think the story hangs together really well, you know, one of the better ones I've seen in, in this space, um, and, and you guys coming off a really, really strong quarter. So congratulations on that jets. We have to leave it there. I really appreciate your time today. Yeah. Take a look at this short video. And when we come back, we're going to dig into the ecosystem and the integration into cloud data warehouses and how leading organizations are creating modern data teams and accelerating their digital businesses. You're watching the cube you're leader in enterprise tech coverage. >>This is your data housed neatly insecurely in the snowflake data cloud. And all of it has potential the potential to solve complex business problems, deliver personalized financial offerings, protect supply chains from disruption, cut costs, forecast, grow and innovate. All you need to do is put your data in the hands of the right people and give it an opportunity. Luckily for you. That's the easy part because snowflake works with Alteryx and Alteryx turns data into breakthroughs with just a click. Your organization can automate analytics with drag and drop building blocks, easily access snowflake data with both sequel and no SQL options, share insights, powered by Alteryx data science and push processing to snowflake for lightning, fast performance, you get answers you can put to work in your teams, get repeatable processes they can share in that's exciting because not only is your data no longer sitting around in silos, it's also mobilized for the next opportunity. Turn your data into a breakthrough Alteryx and snowflake >>Okay. We're back here in the queue, focusing on the business promise of the cloud democratizing data, making it accessible and enabling everyone to get value from analytics, insights, and data. We're now moving into the eco systems segment the power of many versus the resources of one. And we're pleased to welcome. Barb Hills camp was the senior vice president partners and alliances at Ultrix and a special guest Terek do week head of technology alliances at snowflake folks. Welcome. Good to see you. >>Thank you. Thanks for having me. Good to see >>Dave. Great to see you guys. So cloud migration, it's one of the hottest topics. It's the top one of the top initiatives of senior technology leaders. We have survey data with our partner ETR it's number two behind security, and just ahead of analytics. So we're hovering around all the hot topics here. Barb, what are you seeing with respect to customer, you know, cloud migration momentum, and how does the Ultrix partner strategy fit? >>Yeah, sure. Partners are central company's strategy. They always have been. We recognize that our partners have deep customer relationships. And when you connect that with their domain expertise, they're really helping customers on their cloud and business transformation journey. We've been helping customers achieve their desired outcomes with our partner community for quite some time. And our partner base has been growing an average of 30% year over year, that partner community and strategy now addresses several kinds of partners, spanning solution providers to global SIS and technology partners, such as snowflake and together, we help our customers realize the business promise of their journey to the cloud. Snowflake provides a scalable storage system altereds provides the business user friendly front end. So for example, it departments depend on snowflake to consolidate data across systems into one data cloud with Altryx business users can easily unlock that data in snowflake solving real business outcomes. Our GSI and solution provider partners are instrumental in providing that end to end benefit of a modern analytic stack in the cloud providing platform, guidance, deployment, support, and other professional services. >>Great. Let's get a little bit more into the relationship between Altrix and S in snowflake, the partnership, maybe a little bit about the history, you know, what are the critical aspects that we should really focus on? Barb? Maybe you could start an Interra kindly way in as well. >>Yeah, so the relationship started in 2020 and all shirts made a big bag deep with snowflake co-innovating and optimizing cloud use cases together. We are supporting customers who are looking for that modern analytic stack to replace an old one or to implement their first analytic strategy. And our joint customers want to self-serve with data-driven analytics, leveraging all the benefits of the cloud, scalability, accessibility, governance, and optimizing their costs. Um, Altrix proudly achieved. Snowflake's highest elite tier in their partner program last year. And to do that, we completed a rigorous third party testing process, which also helped us make some recommended improvements to our joint stack. We wanted customers to have confidence. They would benefit from high quality and performance in their investment with us then to help customers get the most value out of the destroyed solution. We developed two great assets. One is the officer starter kit for snowflake, and we coauthored a joint best practices guide. >>The starter kit contains documentation, business workflows, and videos, helping customers to get going more easily with an altered since snowflake solution. And the best practices guide is more of a technical document, bringing together experiences and guidance on how Altryx and snowflake can be deployed together. Internally. We also built a full enablement catalog resources, right? We wanted to provide our account executives more about the value of the snowflake relationship. How do we engage and some best practices. And now we have hundreds of joint customers such as Juniper and Sainsbury who are actively using our joint solution, solving big business problems much faster. >>Cool. Kara, can you give us your perspective on the partnership? >>Yeah, definitely. Dave, so as Barb mentioned, we've got this standing very successful partnership going back years with hundreds of happy joint customers. And when I look at the beginning, Altrix has helped pioneer the concept of self-service analytics, especially with use cases that we worked on with for, for data prep for BI users like Tableau and as Altryx has evolved to now becoming from data prep to now becoming a full end to end data science platform. It's really opened up a lot more opportunities for our partnership. Altryx has invested heavily over the last two years in areas of deep integration for customers to fully be able to expand their investment, both technologies. And those investments include things like in database pushed down, right? So customers can, can leverage that elastic platform, that being the snowflake data cloud, uh, with Alteryx orchestrating the end to end machine learning workflows Alteryx also invested heavily in snow park, a feature we released last year around this concept of data programmability. So all users were regardless of their business analysts, regardless of their data, scientists can use their tools of choice in order to consume and get at data. And now with Altryx cloud, we think it's going to open up even more opportunities. It's going to be a big year for the partnership. >>Yeah. So, you know, Terike, we we've covered snowflake pretty extensively and you initially solve what I used to call the, I still call the snake swallowing the basketball problem and cloud data warehouse changed all that because you had virtually infinite resources, but so that's obviously one of the problems that you guys solved early on, but what are some of the common challenges or patterns or trends that you see with snowflake customers and where does Altryx come in? >>Sure. Dave there's there's handful, um, that I can come up with today, the big challenges or trends for us, and Altrix really helps us across all of them. Um, there are three particular ones I'm going to talk about the first one being self-service analytics. If we think about it, every organization is trying to democratize data. Every organization wants to empower all their users, business users, um, you know, the, the technology users, but the business users, right? I think every organization has realized that if everyone has access to data and everyone can do something with data, it's going to make them competitively, give them a competitive advantage with Altrix is something we share that vision of putting that power in the hands of everyday users, regardless of the skillsets. So, um, with self-service analytics, with Ultrix designer they've they started out with self-service analytics as the forefront, and we're just scratching the surface. >>I think there was an analyst, um, report that shows that less than 20% of organizations are truly getting self-service analytics to their end users. Now, with Altryx going to Ultrix cloud, we think that's going to be a huge opportunity for us. Um, and then that opens up the second challenge, which is machine learning and AI, every organization is trying to get predictive analytics into every application that they have in order to be competitive in order to be competitive. Um, and with Altryx creating this platform so they can cater to both the everyday business user, the quote unquote, citizen data scientists, and making a code friendly for data scientists to be able to get at their notebooks and all the different tools that they want to use. Um, they fully integrated in our snow park platform, which I talked about before, so that now we get an end to end solution caring to all, all lines of business. >>And then finally this concept of data marketplaces, right? We, we created snowflake from the ground up to be able to solve the data sharing problem, the big data problem, the data sharing problem. And Altryx um, if we look at mobilizing your data, getting access to third-party datasets, to enrich with your own data sets, to enrich with, um, with your suppliers and with your partners, data sets, that's what all customers are trying to do in order to get a more comprehensive 360 view, um, within their, their data applications. And so with Altryx alterations, we're working on third-party data sets and marketplaces for quite some time. Now we're working on how do we integrate what Altrix is providing with the snowflake data marketplace so that we can enrich these workflows, these great, great workflows that Altrix writing provides. Now we can add third party data into that workflow. So that opens up a ton of opportunities, Dave. So those are three I see, uh, easily that we're going to be able to solve a lot of customer challenges with. >>So thank you for that. Terrick so let's stay on cloud a little bit. I mean, Altrix is undergoing a major transformation, big focus on the cloud. How does this cloud launch impact the partnership Terike from snowflakes perspective and then Barb, maybe, please add some color. >>Yeah, sure. Dave snowflake started as a cloud data platform. We saw our founders really saw the challenges that customers are having with becoming data-driven. And the biggest challenge was the complexity of having imagine infrastructure to even be able to do it, to get applications off the ground. And so we created something to be cloud-native. We created to be a SAS managed service. So now that that Altrix is moving to the same model, right? A cloud platform, a SAS managed service, we're just, we're just removing more of the friction. So we're going to be able to start to package these end to end solutions that are SAS based that are fully managed. So customers can, can go faster and they don't have to worry about all of the underlying complexities of, of, of stitching things together. Right? So, um, so that's, what's exciting from my viewpoint >>And I'll follow up. So as you said, we're investing heavily in the cloud a year ago, we had two pre desktop products, and today we have four cloud products with cloud. We can provide our users with more flexibility. We want to make it easier for the users to leverage their snowflake data in the Alteryx platform, whether they're using our beloved on-premise solution or the new cloud products were committed to that continued investment in the cloud, enabling our joint partner solutions to meet customer requirements, wherever they store their data. And we're working with snowflake, we're doing just that. So as customers look for a modern analytic stack, they expect that data to be easily accessible, right within a fast, secure and scalable platform. And the launch of our cloud strategy is a huge leap forward in making Altrix more widely accessible to all users in all types of roles, our GSI and our solution provider partners have asked for these cloud capabilities at scale, and they're excited to better support our customers, cloud and analytic >>Are. How about you go to market strategy? How would you describe your joint go to market strategy with snowflake? >>Sure. It's simple. We've got to work backwards from our customer's challenges, right? Driving transformation to solve problems, gain efficiencies, or help them save money. So whether it's with snowflake or other GSI, other partner types, we've outlined a joint journey together from recruit solution development, activation enablement, and then strengthening our go to market strategies to optimize our results together. We launched an updated partner program and within that framework, we've created new benefits for our partners around opportunity registration, new role based enablement and training, basically extending everything we do internally for our own go-to-market teams to our partners. We're offering partner, marketing resources and funding to reach new customers together. And as a matter of fact, we recently launched a fantastic video with snowflake. I love this video that very simply describes the path to insights starting with your snowflake data. Right? We do joint customer webinars. We're working on joint hands-on labs and have a wonderful landing page with a lot of assets for our customers. Once we have an interested customer, we engage our respective account managers, collaborating through discovery questions, proof of concepts really showcasing the desired outcome. And when you combine that with our partners technology or domain expertise, it's quite powerful, >>Dark. How do you see it? You'll go to market strategy. >>Yeah. Dave we've. Um, so we initially started selling, we initially sold snowflake as technology, right? Uh, looking at positioning the diff the architectural differentiators and the scale and concurrency. And we noticed as we got up into the larger enterprise customers, we're starting to see how do they solve their business problems using the technology, as well as them coming to us and saying, look, we want to also know how do you, how do you continue to map back to the specific prescriptive business problems we're having? And so we shifted to an industry focus last year, and this is an area where Altrix has been mature for probably since their inception selling to the line of business, right? Having prescriptive use cases that are particular to an industry like financial services, like retail, like healthcare and life sciences. And so, um, Barb talked about these, these starter kits where it's prescriptive, you've got a demo and, um, a way that customers can get off the ground and running, right? >>Cause we want to be able to shrink that time to market, the time to value that customers can watch these applications. And we want to be able to, to tell them specifically how we can map back to their business initiatives. So I see a huge opportunity to align on these industry solutions. As BARR mentioned, we're already doing that where we've released a few around financial services working in healthcare and retail as well. So that is going to be a way for us to allow customers to go even faster and start to map two lines of business with Alteryx. >>Great. Thanks Derek. Bob, what can we expect if we're observing this relationship? What should we look for in the coming year? >>A lot specifically with snowflake, we'll continue to invest in the partnership. Uh, we're co innovators in this journey, including snow park extensibility efforts, which Derek will tell you more about shortly. We're also launching these great news strategic solution blueprints, and extending that at no charge to our partners with snowflake, we're already collaborating with their retail and CPG team for industry blueprints. We're working with their data marketplace team to highlight solutions, working with that data in their marketplace. More broadly, as I mentioned, we're relaunching the ultra partner program designed to really better support the unique partner types in our global ecosystem, introducing new benefits so that with every partner, achievement or investment with ultra score, providing our partners with earlier access to benefits, um, I could talk about our program for 30 minutes. I know we don't have time. The key message here Alteryx is investing in our partner community across the business, recognizing the incredible value that they bring to our customers every day. >>Tarik will give you the last word. What should we be looking for from, >>Yeah, thanks. Thanks, Dave. As BARR mentioned, Altrix has been the forefront of innovating with us. They've been integrating into, uh, making sure again, that customers get the full investment out of snowflake things like in database push down that I talked about before that extensibility is really what we're excited about. Um, the ability for Ultrix to plug into this extensibility framework that we call snow park and to be able to extend out, um, ways that the end users can consume snowflake through, through sequel, which has traditionally been the way that you consume snowflake as well as Java and Scala, not Python. So we're excited about those, those capabilities. And then we're also excited about the ability to plug into the data marketplace to provide third party data sets, right there probably day sets in, in financial services, third party, data sets and retail. So now customers can build their data applications from end to end using ultrasound snowflake when the comprehensive 360 view of their customers, of their partners, of even their employees. Right? I think it's exciting to see what we're going to be able to do together with these upcoming innovations. Great >>Barb Tara, thanks so much for coming on the program, got to leave it right there in a moment, I'll be back with some closing thoughts in a summary, don't go away. >>1200 hours of wind tunnel testing, 30 million race simulations, 2.4 second pit stops make that 2.3. The sector times out the wazoo, whites are much of this velocity's pressures, temperatures, 80,000 components generating 11.8 billion data points and one analytics platform to make sense of it all. When McLaren needs to turn complex data into insights, they turn to Altryx Qualtrics analytics, automation, >>Okay, let's summarize and wrap up the session. We can pretty much agree the data is plentiful, but organizations continue to struggle to get maximum value out of their data investments. The ROI has been elusive. There are many reasons for that complexity data, trust silos, lack of talent and the like, but the opportunity to transform data operations and drive tangible value is immense collaboration across various roles. And disciplines is part of the answer as is democratizing data. This means putting data in the hands of those domain experts that are closest to the customer and really understand where the opportunity exists and how to best address them. We heard from Jay Henderson that we have all this data exhaust and cheap storage. It allows us to keep it for a long time. It's true, but as he pointed out that doesn't solve the fundamental problem. Data is spewing out from our operational systems, but much of it lacks business context for the data teams chartered with analyzing that data. >>So we heard about the trend toward low code development and federating data access. The reason this is important is because the business lines have the context and the more responsibility they take for data, the more quickly and effectively organizations are going to be able to put data to work. We also talked about the harmonization between centralized teams and enabling decentralized data flows. I mean, after all data by its very nature is distributed. And importantly, as we heard from Adam Wilson and Suresh Vittol to support this model, you have to have strong governance and service the needs of it and engineering teams. And that's where the trifecta acquisition fits into the equation. Finally, we heard about a key partnership between Altrix and snowflake and how the migration to cloud data warehouses is evolving into a global data cloud. This enables data sharing across teams and ecosystems and vertical markets at massive scale all while maintaining the governance required to protect the organizations and individuals alike. >>This is a new and emerging business model that is very exciting and points the way to the next generation of data innovation in the coming decade. We're decentralized domain teams get more facile access to data. Self-service take more responsibility for quality value and data innovation. While at the same time, the governance security and privacy edicts of an organization are centralized in programmatically enforced throughout an enterprise and an external ecosystem. This is Dave Volante. All these videos are available on demand@theqm.net altrix.com. Thanks for watching accelerating automated analytics in the cloud made possible by Altryx. And thanks for watching the queue, your leader in enterprise tech coverage. We'll see you next time.

>>this session will be reviewing the power benefits of implementing a secure software supply chain and how we can gain a cloud like experience with flexibility, speed and security off modern software delivery. Hi, I'm Matt Bentley, and I run our technical pre sales team here. Um Iran. Tous I spent the last six years working with customers on their container ization journey. One thing almost every one of my customers is focused on how they can leverage the speed and agility benefits of contain arising their applications while continuing to apply the same security controls. One of the most important things to remember is that we are all doing this for one reason, and that is for our applications. So now let's take a look at how we could provide flexibility all layers of the stack from the infrastructure on up to the application layer. When building a secure supply chain for container focus platforms, I generally see two different mindsets in terms of where the responsibilities lie between the developers of the applications and the operations teams who run the middleware platforms. Most organizations are looking to build a secure yet robust service that fits the organization's goals around how modern applications are built and delivered. Yeah. First, let's take a look at the developer or application team approach. This approach follows Mawr of the Dev ops philosophy, where a developer and application teams are the owners of their applications. From the development through their life cycle, all the way to production. I would refer this more of a self service model of application, delivery and promotion when deployed to a container platform. This is fairly common organizations where full stack responsibilities have been delegated to the application teams, even in organizations were full stack ownership doesn't exist. I see the self service application deployment model work very well in lab development or non production environments. This allows teams to experiment with newer technologies, which is one of the most effective benefits of utilizing containers and other organizations. There's a strong separation between responsibilities for developers and I T operations. This is often do the complex nature of controlled processes related to the compliance and regulatory needs. Developers are responsible for their application development. This can either include doctorate the development layer or b'more traditional throw it over the wall approach to application development. There's also quite a common experience around building a center of excellence with this approach, where we can take container platforms and be delivered as a service to other consumers inside of the I T organization. This is fairly prescriptive, in the manner of which application teams would consume it. When examining the two approaches, there are pros and cons to each process. Controls and appliance are often seen as inhibitors to speak. Self service creation, starting with the infrastructure layer, leads to inconsistency, security and control concerns, which leads to compliance issues. While self service is great without visibility into the utilization and optimization of those environments, it continues the cycles of inefficient resource utilization and the true infrastructure is a code. Experience requires Dev ops related coding skills that teams often have in pockets but maybe aren't ingrained in the company culture. Luckily for us, there is a middle ground for all of this Doc Enterprise Container Cloud provides the foundation for the cloud like experience on any infrastructure without all of the out of the box security and controls that are professional services Team and your operations team spend their time designing and implementing. This removes much of the additional work and worry Run, ensuring that your clusters and experiences are consistent while maintaining the ideal self service model, no matter if it is a full stack ownership or easing the needs of I T operations. We're also bringing the most natural kubernetes experience today with winds to allow for multi cluster visibility that is both developer and operator friendly. Let's provides immediate feedback for the health of your applications. Observe ability for your clusters. Fast context, switching between environments and allowing you to choose the best in tool for the task at hand. Whether is three graphical user interface or command line interface driven. Combining the cloud like experience with the efficiencies of a secure supply chain that meet your needs brings you the best of both worlds. You get Dave off speed with all the security controls to meet the regulations your business lives by. We're talking about more frequent deployments. Faster time to recover from application issues and better code quality, as you can see from our clusters we have worked with were able to tie these processes back to real cost savings, riel efficiency and faster adoption. This all adds up to delivering business value to end users in the overall perceived value. Now let's look at see how we're able to actually build a secure supply chain. Help deliver these sorts of initiatives in our example. Secure Supply chain. We're utilizing doctor desktop to help with consistency of developer experience. Get hub for our source Control Jenkins for a C A C D. Tooling the doctor trusted registry for our secure container registry in the universal control playing to provide us with our secure container run time with kubernetes and swarm. Providing a consistent experience no matter where are clusters are deployed. You work with our teams of developers and operators to design a system that provides a fast, consistent and secure experience for my developers that works for any application. Brownfield or Greenfield monolith or micro service on boarding teams could be simplified with integrations into enterprise authentication services. Calls to get help repositories. Jenkins Access and Jobs, Universal Control Plan and Dr Trusted registry teams and organizations. Cooper down his name space with access control, creating doctor trusted registry named spaces with access control, image scanning and promotion policies. So now let's take a look and see what it looks like from the C I c D process, including Jenkins. So let's start with Dr Desktop from the doctor desktop standpoint, what should be utilizing visual studio code and Dr Desktop to provide a consistent developer experience. So no matter if we have one developer or 100 we're gonna be able to walk through the consistent process through docker container utilization at the development layer. Once we've made our changes to our code will be able to check those into our source code repository in this case, abusing Get up. Then, when Jenkins picks up, it will check out that code from our source code repository, build our doctor containers, test the application that will build the image, and then it will take the image and push it toward doctor trusted registry. From there, we can scan the image and then make sure it doesn't have any vulnerabilities. Then we consign them. So once we signed our images, we've deployed our application to Dev. We can actually test their application deployed in our real environment. Jenkins will then test the deployed application, and if all tests show that is good, will promote the r R Dr and Mr Production. So now let's look at the process, beginning from the developer interaction. First of all, let's take a look at our application as is deployed today. Here, we can see that we have a change that we want to make on our application. So marketing Team says we need to change containerized injure next to something more Miranda's branded. So let's take a look at visual studio coat, which will be using for I D to change our application. So here's our application. We have our code loaded, and we're gonna be able to use Dr Desktop on our local environment with our doctor desktop plug in for visual studio code to be able to build our application inside of doctor without needing to run any command line. Specific tools here is our code will be able to interact with docker, make our changes, see it >>live and be able to quickly see if our changes actually made the impact that we're expecting our application. Let's find our updated tiles for application and let's go and change that to our Miranda sized into next. Instead of containerized in genetics, so will change in the title and on the front page of the application, so that we save. That changed our application. We can actually take a look at our code here in V s code. >>And as simple as this, we can right click on the docker file and build our application. We give it a name for our Docker image and V s code will take care of the automatic building of our application. So now we have a docker image that has everything we need in our application inside of that image. So here we can actually just right click on the image tag that we just created and do run this winter, actively run the container for us and then what's our containers running? We could just right click and open it up in a browser. So here we can see the change to our application as it exists live. So once we can actually verify that our applications working as expected, weaken, stop our container. And then from here, we can actually make that change live by pushing it to our source code repository. So here we're going to go ahead and make a commit message to say that we updated to our Mantis branding. We will commit that change and then we'll push it to our source code repository again. In this case we're using get Hub to be able to use our source code repository. So here in V s code will have that pushed here to our source code repository. And then we'll move on to our next environment, which is Jenkins. Jenkins is gonna be picking up those changes for our application, and it checked it out from our source code repository. So get Hub Notifies Jenkins. That there is a change checks out. The code builds our doctor image using the doctor file. So we're getting a consistent experience between the local development environment on our desktop and then and Jenkins or actually building our application, doing our tests, pushing in toward doctor trusted registry, scanning it and signing our image. And our doctor trusted registry, then 2.4 development environment. >>So let's actually take a look at that development environment as it's been deployed. So here we can see that our title has been updated on our application so we can verify that looks good and development. If we jump back here to Jenkins, will see that Jenkins go >>ahead and runs our integration tests for a development environment. Everything worked as expected, so it promoted that image for production repository and our doctor trusted registry. Where then we're going to also sign that image. So we're signing that. Yes, we have signed off that has made it through our integration tests, and it's deployed to production. So here in Jenkins, we could take a look at our deployed production environment where our application is live in production. We've made a change automated and very secure manner. >>So now let's take a look at our doctor trusted registry where we can see our game Space for application are simple in genetics repository. From here we will be able to see information about our application image that we've pushed into the registry, such as Thean Midge signature when it was pushed by who and then we'll also be able to see the scan results of our image. In this case, we can actually see that there are vulnerabilities for our image and we'll actually take a look at that. Dr Trusted registry does binary level scanning, so we get detailed information about our individual image layers. From here, these image layers give us details about where the vulnerabilities were located and what those vulnerabilities actually are. So if we click on the vulnerability, we can see specific information about that vulnerability to give us details around the severity and more information about what, exactly is vulnerable inside of our container. One of the challenges that you often face around vulnerabilities is how, exactly we would remediate that and secure supply chain. So let's take a look at that and the example that we were looking at the vulnerability is actually in the base layer of our image. In order to pull in a new base layer of our image, we need to actually find the source of that and updated. One of the ways that we can help secure that is a part of the supply chain is to actually take a look at where we get our base layers of our images. Dr. Help really >>provides a great source of content to start from, but opening up docker help within your organization opens up all sorts of security concerns around the origins of that content. Not all images are made equal when it comes to the security of those images. The official images from Docker, However, curated by docker, open source projects and other vendors, one of the most important use cases is around how you get base images into your environment. It is much easier to consume the base operating system layer images than building your own and also trying to maintain them instead of just blindly trusting the content from doctor. How we could take a set >>of content that we find useful, such as those base image layers or content from vendors, and pull that into our own Dr trusted registry using our rearing feature. Once the images have been mirrored into a staging area of our DACA trusted registry, we can then scan them to ensure that the images meet our security requirements and then, based off the scan result, promote the image toe a public repository where we can actually sign the images and make them available to our internal consumers to meet their needs. This allows us to provide a set of curated content that we know a secure and controlled within our environment. So from here we confined our updated doctor image in our doctor trust registry, where we can see that the vulnerabilities have been resolved from a developers point of view, that's about a smooth process gets. Now let's take a look at how we could provide that secure content for developers and our own Dr Trusted registry. So in this case, we're taking a look at our Alpine image that we've mirrored into our doctor trusted registry. Here we're looking at the staging area where the images get temporarily pulled because we have to pull them in order to actually be able to scan them. So here we set up nearing and we can quickly turn it on by making active. Then we can see that our image mirroring will pull our content from Dr Hub and then make it available in our doctor trusted registry in an automatic fashion. So from here, we can actually take a look at the promotions to be able to see how exactly we promote our images. In this case, we created a promotion policy within docker trusted registry that makes it so. That content gets promoted to a public repository for internal users to consume based off of the vulnerabilities that are found or not found inside of the docker image. So are actually users. How they would consume this content is by taking a look at the public to them official images that we've made available here again, Looking at our Alpine image, we can take a look at the tags that exist. We could see that we have our content that has been made available, so we've pulled in all sorts of content from Dr Hub. In this case, we have even pulled in the multi architectural images, which we can scan due to the binary level nature of our scanning solution. Now let's take a look at Len's. Lens provides capabilities to be able to give developers a quick, opinionated view that focuses around how they would want to view, manage and inspect applications to point to a Cooper Days cluster. Lindsay integrates natively out of the box with universal control playing clam bundles so you're automatically generated. Tell certificates from UCP. Just work inside our organization. We want to give our developers the ability to see their applications and a very easy to view manner. So in this case, let's actually filter down to the application that we just deployed to our development environment. Here we can see the pot for application and we click on that. We get instant, detailed feedback about the components and information that this pot is utilizing. We can also see here in Linz that it gives us the ability to quickly switch context between different clusters that we have access to. With that, we also have capabilities to be able to quickly deploy other types of components. One of those is helm charts. Helm charts are a great way to package of applications, especially those that may be more complex to make it much simpler to be able to consume inversion our applications. In this case, let's take a look at the application that we just built and deployed. This case are simple in genetics. Application has been bundled up as a helm chart and has made available through lens here. We can just click on that description of our application to be able to see more information about the helm chart so we can publish whatever information may be relevant about our application, and through one click, we can install our helm chart here. It will show us the actual details of the home charts. So before we install it, we can actually look at those individual components. So in this case, we could see that's created ingress rule. And then it's well, tell kubernetes how to create the specific components of our application. We just have to pick a name space to to employ it, too. And in this case, we're actually going to do a quick test here because in this case, we're trying to deploy the application from Dr Hub in our universal Control plane. We've turned on Dr Content Trust Policy Enforcement. So this is actually gonna fail to deploy because we're trying to deploy application from Dr Hub. The image hasn't been properly signed in our environment. So the doctor can to trust policy enforcement prevents us from deploying our doctor image from Dr Hub. In this case, we have to go through our approved process through our secure supply chain to be able to ensure that we know our image came from, and that meets our quality standards. So if we comment out the doctor Hub repository and comment in our doctor trusted registry repository and click install, it will then install the helm chart with our doctor image being pulled from our GTR, which then has a proper signature, we can see that our application has been successfully deployed through our home chart releases view. From here, we can see that simple in genetics application, and in this case we'll get details around the actual deploy and help chart. The nice thing is that Linds provides us this capability here with home. To be able to see all the components that make up our application from this view is giving us that single pane of glass into that specific application so that we know all the components that is created inside of kubernetes. There are specific details that can help us access the applications, such as that ingress world that we just talked about gives us the details of that. But it also gives us the resource is such as the service, the deployment in ingress that has been created within kubernetes to be able to actually have the application exist. So to recap, we've covered how we can offer all the benefits of a cloud like experience and offer flexibility around dev ups and operations controlled processes through the use of a secure supply chain, allowing our developers to spend more time developing and our operators mawr time designing systems that meet our security and compliance concerns

>> Announcer: From around the globe, it's theCUBE. With digital coverage of Dockercon live 2020. Brought to you by, Docker, and its ecosystem partners. >> Hey, welcome back everyone to the DockerCon 2020, #DockerCon20. This is The Cube virtual coverage with Docker on their event here. And we're in the studio in Palo Alto, I'm John Furrier your host of theCUBE, we're here with a great guest to talk about Docker Desktop, the Microsoft relationship, and the key news that's coming out. Ben De St Paer-Gotch is the product manager for Docker Desktop. Ben, great for coming on, thanks for spending the time with me. >> Thanks for having me, I really appreciate it. >> So obviously, this is a virtual conference, we wish we could be in person, but given the state of affairs we're going to do remotely, but the momentum Docker has is phenomenal, it's always been great with containers. It's the number one downloaded app around for developers. Microsoft just had their Build conference, which was again virtual as well, or digital, as they say, it's interchangeable. But clear momentum now with Docker as containers actually is the standard, you guys are doing great. What's the key news out of the Microsoft world for people who missed it last week with MS Build? >> Yeah, so last year at Build, Microsoft announced WSO2 to the Windows subsystem with Linux two. (mumbles) The mapping between the windows (mumbles) Which, went really well but it just didn't provide the same centered needed Linux experience. Last year, they announced Windows subsystem Linux two, (Provides an actual Linux one on windows machine, and we've been working hard with Microsoft over the last year to integrate proper desktop as a main desktop application for working with containers with WSO2. A build this year, Microsoft has gone on and announced that WSO2 is going to have a few new features, and it's going to have new features. (mumbles) Mention Linux graphical, Linux applications, you can access the file system, the installation is going to become a slicker which I guess I'm the most excited about that pitch. But the most exciting announcement is, they will be bringing GPU support to WSO2 which means that we will be able to provide and give you support through Docker desktop or container workloads that peoples are working on. And now we're launching Gray and Agua through containers and docks and desktops and Windows which is really cool because we haven't been able to do that before. >> So is this the first GPU support on Microsoft Windows for Docker, with Docker? >> It's, yeah, it's the first GPU Support for Docker Desktop or Mac or Windows. So, previously the hypervisor hasn't passed through the GPU, pretty much, which meant that we couldn't access it from Docker desktop. So Docker desktop isn't about a lightweight VM we sorts of plumb all that in for you. But we're limited about what we could get access to from the hypervisor, Microsoft putting this through and giving us access for the first time, we can actually, we can go. >> Not to go on a side tangent here, but you know, all these virtual events, and I was watching some of the build stuff as well, as well as us immediate streamers and doing stuff, you can see people's home rigs. And you talk to any Developer, video streamer, or anyone who is working remotely, if you don't have the best GPU's in there, I mean, this has just become, I mean, quite frankly, you need the GPU's. So this is important, it's not only from a vanity standpoint performance. Having that support, I'm going to want the best GPU's, I'm always going to be upgrading my machine for that extra power. What's the impact? What does it mean for me as a Developer? Does it increase stuff? What's the bottom line? >> As a Developer, it means you actually have access to it. So, especially when you're doing workloads on the CPU, you've got minimum amounts of power utilization you can do. When you're running workloads for an L Development, you have a lot of power up process you've got to log, to do your mobile training. So, in an element cycle, you're likely to have your application which you're going to use to produce a modeling, you're going to have training data. Taking that training data and producing a model requires lots of panel processing which is an enormous calculations in producing with finer waitings. Doing that on a CPU has to be done on a serial fashion rather than parallel, which is huge and intensive and takes a really long time. Whereas on a GPU, you can do all of that in parallel which massively reduces the amount of time it will take to run those training functions. Either just straight up in Linux or running them in a container, which as the more of people are looking at running container with workloads, it's how I first, the first team that I was on actually used Docker. I was working in Amazon Alexa, and my team picked up the opportunity to run our workload in container. And that was my first experience, so even though my team backed down, so I could see the system. >> Yeah, ML workloads automations could be critical of that performance. Okay, let's get into some of the momentum with Microsoft, you guys have obviously, builds over, we're here now at DockerCon, there's news. Could you share some of the tidbits for what's being talked about now with Docker and DockerCon. >> Yeah, absolutely, so, along with everything else we've been doing, we've been partnering with Microsoft trying to make the best experience generally with Docker desktop, and with WSO2 and with the VSCO. I've been working closely with Microsoft guys to actually try and improve our experience in Windows as it is today, and to improve some of those integrations with VSCO, and also working with the VSCO team on the Docker plugin for VSCO to give our feedback, and to hear feedback from those guys on the errors and issues they're seeing with Docker desktop and to really try to produce the best experience we can on Windows. End to end, from very front end running all the way through that first push, that first run on the cloud using Docker. >> So what is some of the new product management processes and customer support things that you guys are doing? This comes up a lot, obviously, we had a great conversation around shift left with security. That's great news there. You start to see a lot of this added value for Developers, wanted their support right? So how do I get things I need, and from a customer standpoint? It's kind of a moving train this world and it's only getting better and better from a Developer standpoint. But there's more complexity, it's got to be abstract the way you've got, you know, this new abstraction layers developing. You've got a lot of automation. How does the customer get the support they need in the same agile way that Developers are cranking out code? >> It's a really good question, it's something I think we're still working on as well. So, we're trying to working out and one of the big things I'm trying to work out is, how to make it easier for people to get started with Docker, and how do we also make sure with the things we build, we don't leave a cliff edge instead of a lining path. You don't get to a certain point in an easy process, and then the next step, takes you straight off a cliff, so that's not useful for anyone. So, producing those parts and those ways for people to learn and actually progress is something we're really trying to work out. How to make it natural from the first experience all the way through. From an actual support perspective, the other thing we're looking at, is we're trying to do more things in the open. We're really trying at Docker to bring as many of the new features and pieces we're developing which we have to do that in the open with community visibility, so that if people really want it fixed, they can open the PR and they can help us out. And then the last thing that my team really stood out was our Docker of having actions. As creators, someone already finished, could you do this? Someone else had a PR and emerged it. So, to a certain extent, you've got your one side which had you on board and this ever growth spiral and you keep learning. The other side is how'd you fix the board when you find an issue? In that one, we're really trying to work with the community, a lot more than we have in the last couple of years. >> Awesome, some folks watching, hit him up on Twitter, he's the Product Manager for Docker Desktop among other things. You guys are very transparent, you've got your Twitter handle on the lower third. People can chime in or just jump on the chat, we'll follow up and get you the info. Final question for you Ben, as you look at this reality we're in, there's kind of a holistic kind of moment now where people kind of realizing the new realities here. You're looking at the.. you get the keys to the kingdom with Docker Desktop, okay. You got some momentum with Microsoft, the developer role is moving fast and fast as the head room increases for capabilities with automation. And I know you mentioned a few of those things. GPU is now available. What's the future look like for these Developers? The next short, medium and long term? What's your view as you look out over the landscape because you've got to look at the product roadmap, your engagement with the community. Can you share some insight into how you're thinking about Docker Desktop going forward? >> Yeah, absolutely. So, I think what really interesting point as you say, which is that, if you look at sort of a lot of the Developer side of things that have sort of come out in the last like six months, six to eighteen months. The things I see, I see daily like you mention, things like orchestrating for containers gaining momentum. If you think about crossing the Kaizen model, we're just passed the early Dockers now. We're kind of into the early majority, but we're going to start to move over the next few years into the late majority. What that really means is that people here have been using one of two of these technologies. Maybe you've been using cloud, maybe you've been using Edge, maybe you've been using containers, maybe you've been using CICD, maybe you are using Expiration, maybe you're not. Maybe you've got a Microservice application, maybe it's a little bit of a mole rat. What we're really going to see is, you're going to start to see, all of these changes intersecting and overlapping. And people who have started to pick up model two of these will start to pick up all of them. And that's probably going to happen as we move into the majority of users. So from a what's coming instead of a lot of those thing that you see in best practice in the ideal Developer setup, so a beautiful CICD, a more of an orchestrated environment, Microservice architecture, we're going to see a lot more of that becoming the norm. But I think along with that, we'll also see a level of recognition coming along that a single Microservice alone doesn't provide value. And that's it's going to be some of those groups of services that will provide the user outcome. And that's where my focus is at the end which is you know, an authentication service is great but it doesn't provide value unless you give access to something as authentic. >> It's been issued that the new Docker is all about Developer experience. This is really the core mission. I mean, since the sale of the piece of morantis, Docker has retrenched and reinvented, but stayed core to its principles. Just share with the Developers who've been watching that are coming back into the ecosystem, what is this new Docker vibe? Share your thoughts. >> The new Docker vibe is about working in the open, and it's about solving problems for Developments. The original goal of Docker was to make it easy to pack and ship. It was to reduce Developer friction. As we move more into, sort of, the enterprise space, we worry more about Ops and DevOps. We're not trying to re-focus on Developer and if you sort of think there's two parts to the Developer life cycle, where you've got your work, where you're doing your creative work, where you're writing code. And then you've sort of got your part of the inner loop. And then you've got your part where you're trying to get that code out to production, you're trying to get your value to someone else. Instead of your outer loop, we're really trying to focus on the inner loop And sort of our mantra is that any bit for a Developer should spend as much as their time as possible creating new and exciting things and we're onto those holes that reduce those boring, Monday, repetitive tasks, that we're really trying to work out how we take those boring repetitive pieces and how do we make them just vanish like magic from new users or how do we reduce the friction for the experience from users? From both desktop and hub, we're really trying to bring those two together to achieve that. >> You know what's great about folks who have been in the class since day one. All of us have scar tissue experiences, you know the one thing that's constant is constant change. And one of the things that you guys have done at Docker, and hats off to the whole, you know, original team, is that brand of Docker has symbolized quality openness, and set the standard, I mean, if you look back and containers were really coming around, it's not a new concept. But Docker really set the industry on this path and it's been great to follow every DockerCon at TheCube coverage, but more importantly, as the demand for Developers to build these next wave of Cambrian explosion of applications. It's going to be more important than ever to have more of these abstractions, more of these tools in this real time, more Developers experience because there's more building going on. And it's not just one cloud, it's all clouds, it's all things. >> Yeah, I think it was like when IDC analyzed the future report a couple years ago, I think it was maybe the 2018 one. They said that maybe 2017. They said to date, we've built 500 millions applications worldwide and by 2023, we'll build another 500 million. The rate of creation is just insane, it's exponential growth of us producing more and more applications and connecting more and more devices to do them. The sheer volume of creation and the rate of new technology supporting, even with the rate of companies adopting, I guess more of a warm cloud. I think it's like 60 percent of companies are now more than one cloud provider. Maybe even more, maybe it's like 80 percent. It's ridiculous. >> I was just having this debate on Twitter about this multi-cloud. Someone tried to call us out saying, "Oh you guys were pooing on multi-cloud in 2016 and 18." I go "Look at, no one was Pooping on multi-cloud, it didn't exist." I had multiple clouds but there was no real use case. Now you're starting to see the use cases, where yeah, I had multiple clouds and I got Azure here, I got this over here. But no one wakes up and spreads their workloads wrong. This is going back a few years. Certainly the hybrid was developing, but I think now you're starting to see with networking and some of these inter-operable dynamics, you start to see innovation pockets in wide spaces in large market opportunities for start-ups and companies to thread the clouds together at the right place. So I think multi-cloud is becoming apparent from a use case stand point. Still a ton of work to do, I mean direct connects, got SLA's, I mean all kinds of stuff at the networking level but it is real. It's going to be one of those realities that everyone has, at least one or two, if not three. It could be optimization, this is what Developers do right? Solve problems. >> Yeah, absolutely, I mean if nothing else, I've encounter a couple of companies even just where redundancy is handled by multi-cloud strategy. If you want to achieve more nines and you're just balancing workloads between two clouds. >> I mean, the Zoom news was really a testament to that because everyone got into a twist over that. Oh Zoom moves off Amazon, no they didn't move off Amazon, they went to Oracle, they got Adge, they're everywhere. Why wouldn't they be? They need to pass it, they fail over, they need fall tolerance, I mean, these are basic distributing computing concepts that is one on one. You've got to have these co-locations. And optimization for those clouds and the apps on Microsoft as well, so why wouldn't you do it? >> Exactly. And that's that hybrid, that multi-cloud, compounding that some of which you said earlier, that over changes when you're looking at how you go to CICD, how you're bundling these applications, creating more applications than ever. Coming back, sort of, with more AI workloads, much like GPU and you combine that with, sort of, last in the growth of age devices as well. It sort of makes for a really interesting future. And Docker is sort of, that summation SOV, what we're using to frame how we're thinking about our product and what we should be building. >> Great, for the audience out there, hit him up on Twitter, Ben's available, they're out in the open, if you're interested in how Docker makes life easier on the Windows platform, with the GPU support, they've got security now built in, shifting left. Give these guys a call and of course, we love the mission, out in the open. It's theCUBE's mission as well and great to chat with you. Ben, thanks for spending the time with me today. >> Been an absolute pleasure, thank you for having me. >> Okay, just TheCube's coverage, the virtual Cube with DockerCon co-creating together out in the open. DockerCon20, #Docker20, I'm John Fer with TheCube, stay tuned for our next segment, and thanks for watching. (ambient music)

(upbeat music) >> Narrator: From around the globe, It's theCUBE with digital coverage of DockerCon live 2020 brought to you by Docker and its ecosystem partners. >> Hello, welcome back to our DockerCon 2020 DockerCon 20 coverage this is theCUBE virtual here in the Palo Alto studios with our quarantine crew, I'm John Furrier your host, got two great guests here. Scott Johnson is the CEO of Docker and Peter McKay CEO of Snyk hot security startup with some big news, you guys have rolled out, but really it's got an impact to developers. Scott and Peter great to see you guys again. >> Great to see John. >> Good to see you John. I'm glad we can at least talk remotely. I wish we were face to face, but obviously we're living in a time of crisis were you starting to see a Cambrian explosion starting to emerge where all people are recognizing that a lot is going to come out of this. You guys have announced a strategic alliance. Can you guys take a minute to explain what is this alliance and what does it mean ? Scott, we'll start with you. >> Absolutely, and thank you, Peter, thank you, John, for this chance to share with you all that's going on it's very exciting. Look, what we saw together as teams, both, both Peter's and ours was the developer experience is getting better and better in terms of faster and faster iterations but we weren't in the world of the Docker Desktop and Docker Hub experience having kind of scary as a first pass citizen that was really right in front and center with developer workflow. And so in working with Peter's team, we realized that the two companies had the same vision of like, let's bring that developer for security just right in center, in the user experience in the command line, in the tooling and just make it natural. So that developers could continue to iterate rapidly, continue to ship value, ship features fast. But in addition to doing that, do so in a secure fashion and in a secure manner. And really that's what this partnership is about is making security just kind of built in natural developer friendly developer first. We're very very excited to partner with Snyk and then bring this to development community. >> Peter, you guys have a unique business model, you're developer first security. What does this mean to you? Docker has got millions of developers out there who know containers, there's certainly developer first. What does this alliance mean to you guys as Snyk? >> Yeah, when you think of the developer community, you think of Docker, I mean, that's when we looked at the front end of our funnel, the people who we go after and our users, it's developers, and when you think developers, you think Docker and so we've got... Scott and I got together I'd say four or five months ago where we started talking about building a tighter relationship together the synergies between what he was doing and the team was doing, we're doing at Docker. And what we were trying to do is kind of embed the developer experience and develope and integrate security into that really made a very compelling value proposition together for developers and embedding that security into that application development into your containers and your image and your application development life cycle just made it a better developer experience overall. >> We've been talking to a lot of developers, certainly for DockerCon and just outside of the industry anecdotally, is that Docker really revolutionized, container ideas has been such a great win for developers. Containerizing applications really has changed the game, has spawned the generation of Kubernetes and cloud native microservices. What specifically is going on with you guys in this partnership? Where's the security fit in because can I just do a scan and scan the vulnerabilities? I mean, what's unique here? What does this mean for developers? What's going on with the alliance? >> Yeah, I'll take it first, Peter, but then jump in. So John, in the history of application development, so often security is not addressed until the end. And so developers they're shipping rapidly. They're they're iterating quickly, but then it gets, right before production and the alarm goes off and security team swoops in and security is often seen as a point of friction or a way to delay applications from getting the market and delivering value quickly. And this partnership completely reverses that where instead of having security be further down the stream of the tool chain or the application development life cycle, we're pulling it right up in front and having it be right alongside all the other activities that a developer is doing around building their code around, testing their code around, running their code locally. And it's the whole shift left I'm mean I'm sure you've seen out there and we are shifting this as far left it can be where it's right there on the local Docker Desktop in the command line as a primary emotion and its primary tool to building a great secure application as any other aspect of the tool chain. And that was really the focus of the partnership, which is like, make this just native and as far left as possible and not make security an afterthought or something that gets taken place by other Ops people downstream. >> Peter. >> If you think can about... That's the whole concept of how Snyk was founded. We all came from an application security background where it was security tools for security people, and it really... The whole industry needed this fundamental shift in the approach. And as Scott said that whole shifting left concept to really scale security in the right way and is to embed it into that application development life cycle into embedded into the tools that developers use each and every day. So they wanted to be a security expert, a developer doesn't need to be someone who knows all the vulnerabilities, they just need to know how to develop the most creative, indeed the most agile organization to develop, much better applications. And if they can do it in a more secure way they would obviously do it, but don't make them do something dramatically different and don't ask them to be security experts. And that's what we've tried to do in the partnership with Docker allows us to embed that continuous security insights into that whole development loop to when they develop these applications, they're secure when they're done and all the way through that development life cycle, you're testing for vulnerabilities in auto remediating along the way. So it allows them to develop very creative at the pace in which they want to develop. And it makes them more secure by doing it. >> Yeah, let me pick up on Peter's point there, which is so often security has been something that's discovered late in the process, right? Either just before production or sometimes even in production. And then just think about that feedback loop. It's got to go all the way back upstream all the way to the element team developers got to go find what they're working on. Well, maybe not hours ago, it could have been days ago could even be weeks ago and then both figure out how to remediate, get it all the way through the inner loop and the outer loop. We're completely blowing that up and disrupting that by bringing it all the way forward such that the feedback is right then and there with the developer in the moment on the laptop, in their inner loop and giving them the immediate response that they need and the single they need to take action remediate and then move on to the next creative thing they can do is they're just thinking about shortening that whole feedback loop. And really as Peter said, building security in from the get go because the signal is there to give them a indication of what they need to do right then and there. >> Great, I want to get into the... I mean, I can see the workflow advantage, so I totally get that. I've heard on theCUBE many times that security has got to be built in from the beginning. We've heard that before many times, I don't think I've heard security discussed this way, combined with the trends arounds automation. So can you guys talk about how that fits in? Because I get shifting left all that workflow, all goodness. But now I'm assuming there's a whole op side of security. And then if I'm trying to automate things and that's the real trend we're seeing here, how does that all work? Does that all come together? And it's this kind of unique that you guys are doing? Can you unpack that a little bit and clarify? >> Yeah, I mean, this has been something that we've been focused on quite a bit. I mean, the first it's... Used to be that you used to find a lot of vulnerability and yes we find a lot of vulnerabilities. And what we tried to do is focused on the prioritization and really hear the critical ones that developers need to fix first, second, third, and fourth based on severity. And we build that all in and that's something that we learned that we built into the process. And then last phase is this auto remediation. To the extent we can auto correct and auto fix, which is becoming increasingly a bigger part because the more you learn about the vulnerabilities in some of the fixes, the more you can automate and remediate that just makes the whole development process that much more productive and efficient. And that's really what we're trying to do, not only just find vulnerabilities, prioritize them, what are the ones that are what the team feels as severity one twos and threes embed that into the process. So you fix these are the ones you're fixing first, second, and third, into the extent they could be auto remediated, then fix them automatically. So we're trying to build that increasingly into the application. >> So, is this the first secure containerization deployment model? I mean, have other people have been doing this? I mean, is this new to Docker new to the industry? What's what's going on? >> Well, so we're here to talk about the partnership and of course there's a wealth of a very active ecosystem in and around security and other spaces. But we think this is the first that brings it this close to the developer in the moment in the command line on the desktop. And thus we think it has a lot of value to offer development team. >> I'll put my developer hat on. I'm one of the millions of developers, containers are part of my daily design coding, What's in it for me? Why does it matter to me as a developer? What does it do for me? Save time? What's the impact for the developer? >> Well, you think about... I mean, just look at the old model, right? The old model is you develop an application, you send it to the security team and they'll audit it. They'll tell you all the vulnerabilities and then they'll ship it back to you. You fix it, then they'll check it again. And they were waiting in the queue and then they'll tell you what's wrong and they'll send it back and think of that long. It's just like... Can you remember in the early day, when they a quality issue, fix it earlier in the life cycle of an application, don't wait till the end where the quality is embedded into the process. And so what you find is, the developers are embracing this and we have our like Docker, you have a freemium where developers can try it and realize that look, and I'm going to have to do security anyway, I mean, I have to develop secure application. If I can use a tool that's built for me and embedded into my development life cycle so I don't have to be a security expert and I don't have to wait for the security teams, to tell me what's wrong. And I can embed this all the way through and then not have to go through that painful step at the very end, to go through that security audit. I would do that any day of the week-- >> (mumbles) it back to you, do the scans, "Hey, you got to fix this." And then developer Scott your point moves on. They're coding, right? I mean, that's a problem. >> Developers want to ship, right? I mean, going back to your point, John, like one of the revolutions of Docker is that it is given the expectation that developers can ship faster. And right now in much of the state of the state, because security is important, like it can serve as a gate. And as Peter just walked you through it can slow down developer shipping and having impact. And so for you, the developer, John, like this gives you freedom to ship early often, high-frequency everything the promise of the container development model. This really unleashes that. >> Yeah 'cause that rails around the security policies too allows them to be projected in as syntax, if you will, or as part of the coding environment so I don't have to worry about it. I mean, at the end of the day, it's peace of mind, more than anything, time is certainly a pain in the butt, but yeah, as a developer, the creativity we needed more than ever. Okay, so with the COVID crisis-- >> One last point I want to make on that, sorry, it's also the security teams want it to because they don't want to be the bottleneck. They don't want to be doing this at the last minute and having all the pressure on them. I mean, they know that a big chunk of their business is going through these applications. So a lot of the budget dollars that come from people buying Snyk and embedding it into the process is from security because they can't keep up this digital transformation and what companies are going through. They don't want to be, there's one of two things. Either they're going to be the bottleneck or the developers are going to go around them and just put an application in the cloud in it and ship the container, put it anywhere then going around security. So they don't want that either. So there's just a very tight alignment between developers want to ship fast and security teams want to do the same. >> I hate to say it, but the whole agility is now not only just normal for us insiders in the industry. It's proven now with this COVID crisis that you have to be fast, you have to be at scale. And I think this speaks to some of the experiences you guys had in the industry, you were talking earlier. If you're not moving at the pace that you need to move at the scale you need the automation it's proven cloud native is going is completely ratified in my mind. There's no doubt, that means microservices is front and center and this change that's happening right now. And when we come out of this pandemic, there's going to be growth winners and not growth winners. We flat line to decline or winners, and it's all going to be based on microservices. So for the developers out there going to be called into the office as someday or in a Zoom, let's get these apps double down on this, kill that project. There's going to be those conversations >> It's happening right now, John. So look, what's happening, as a result of COVID an entire bodies of human activity are shifting from offline online. Like social, consumer, B2B, healthcare going down the list, finance, commerce, retail, like massive tectonic shift going from offline online. That means massive demand for new applications, new application development, and quickly, some this shift is happening and there's a bunch of businesses that didn't have exposure to digital they're like, "Oh my goodness, I need a digital strategy. "I need a digital channel. "I need a digital revenue stream." And so the demand for new applications quickly is exploding through the roof. And we see this across the board in our industry right now which is very, very fortunate given the other circumstances and other industries, but you're absolutely right. Like this lets them ship faster. And now is the time when they need to ship and ship fast. >> And the budgets are going to be allocated on these new projects was just a nuance in your point, it's new projects and then there's fixing modernizing the old stuff. Because look at Walmart, Walmart got hamstrung on the eCommerce side, they just killed their jet acquisition. They spent $3 billion on, this is the reality. This is not like just a strategy to do innovation, innovation strategy or some walk down, digital transformation lane. This is happening, it has to be done. What do they do? >> Its interesting and it starts, we always say, we start with the new and replaced the old. We start with a new application, it usually is always the case where we usually start with a lot of the companies is a new (mumbles) on application. And then it expands from there. And so know you look at what you used to be the best practices were tech companies, and then it moved to financial services, industries and insurance and then in retail, now you look at manufacturing, you look across the board, as Scott said, this offline to online, is driving so much of the empowering developers to take on more responsibility and to own more of it, but to be faster and to be more agile. And that's really, what's driving this big shifts in the market. And like you said earlier, if they're not there, they're in trouble because this market is driving that direction. >> I want to get both of your comments on this final question, because even with the progression of the developers from the Steve bomber developer development developers, speech on YouTube to developers on the front lines, cloud native, and now today it's been a progression. And I think it's always been the developers on the front lines are getting closer to the front lines. I think now it's even more compelling because there's a scale and agility speed game going on. So I think it's just another step function, developer relevance. It's not so much, they've never been close to, they have been getting closer they're in the business conversation and the ones that could move fast are the ones going to deliver the value. So if automation is in the playbook, if cloud need is not in the playbook, this is going to be the new developer equation, the ones that meet that will be successful. Can you guys react to that and your thoughts? >> Go ahead Peter. >> I mean, I think what we're trying to do is make that developer experience just one from just the partnership with Docker and is a key, just making it really easy, do the integration, do a lot of the work, make the developer experience as seamless as possible, make it very efficient for them, make it easy for them to try and buy, make it just a great experience and allow them to, or empower them to take on more of the responsibility of getting that App published and in the containers out the door. And that's what we're excited about with the partnership with Docker is that with the number of developers that they have, the work that we do together, and the roadmap that we have is really making that experience just an incredible journey for our developer and that's what we want to continue to make sure we foster. >> Scott, the new relevance of developers, your thoughts. >> Yeah, I would only--building on Peter's point, observed that a lot of the developer expectations are informed by the stack and what's possible. And to your points earlier about the previous waves, John, like, developers are important, but their full potential if you will was perhaps muted or gated because there was not a clean abstraction between the application on the underlying infrastructure. And now, as we know, Dockerization and the surrounding ecosystem of Kubernetes and other tools, we have a much cleaner separation between the Application and the infrastructure, and that allows and set expectations for a much higher cadence of release much faster, time to value, much more agile operations in terms of responding to competitors and the market and your customers. And so with that expectation, how do you unleash that? And this partnership is really key to that, by taking the friction out. As we talked about kind of historical security models and bringing a new model that bring the security way left right into the developers around that experience. And then in some sense, really fulfills that ability to move quickly, react in an agile fashion and have an impact as quickly as possible. >> That's awesome security built into the workflow, automated industry first, guys thanks so much for a great partnership, but the final work at the plugin for the relationship going forward, how's that work is going to be available is integration code is it development? Give a quick plug for what's happening, the relationship and what's happening going forward? >> Look, Docker only succeeds if the ecosystem succeeds. and we're very very proud and humbled to join arms with Peter and the Snyk team as a partner in the security ecosystem. And so you'll see us not only in this integrated developer experience on the command line, which is going to be very, very valuable to developers that we've been talking about, but you'll see us out there promoting the solution in different forms and community groups. And so it doesn't stop and end with the DockerCon experience, look for us in the year ahead to do more and more together. >> Awesome. >> I agree and I think that just culturally and the way the organizations work really well together, I think this is a beginning of a longer journey and a longer partnership we're going to have together with Scott and the team, so we're excited. I think the validation, the early validation we've got from the development teams that we've been talking to around the world, I think there's tremendous desire for this to happen, and we're excited to launch the journey together, with Scott and team. >> It's been a lot of fun watching this progression, like you said, create that headroom, the developable, we'll take it right up and there'll be another step function, more progression. Great job guys. Congratulations on the great partnership >> We need to security built in, we need more creativity. We need that, we need this new modern era to be flourishing. Thanks for your time, appreciate it. >> Thanks John. >> Thank you. >> theCUBE coverage, virtual CUBE coverage of DockerCon 20. I'm John Furrier your host, along with Docker for DockerCon 20 #Docker 20. Thanks for watching and stay tuned for our next segment of DockerCon 20 virtual. (upbeat music)

>> Narrator: From around the globe, it's theCUBE with digital coverage of DockerCon LIVE 2020, brought to you by Docker and its ecosystem partners. >> Hi, I'm Stu Miniman and this is theCUBE's coverage of DockerCon LIVE 2020. Happy to welcome back to the program one of our CUBE alumni, Deepak Singh. He's the vice president of compute services at Amazon Web Services. Deepak, great to see you. >> Likewise, hi, Stu. Nice to meet you again. >> All right, so for our audience that hasn't been in your previous times on theCUBE, give us a little bit about, you know, your role and your organization inside AWS? >> Yeah, so I'm, I've been part of the AWS compute services world from, for the last 12 years in various capacities. Today, I run a number of teams, all our container services, our Linux teams, I also happen to run a high performance computing organization, so it's a nice mix of all the computing that our customers do, especially some of the more new and large scale compute types that our customers are doing. >> All right, so Deepak, obviously, you know, the digital events, we understand what's happening with the global pandemic. DockerCon was actually always planned to be an online event but I want to understand, you know, your teams, how things are affecting, we know distributed is something that Amazon's done, but you have to cut up those two pizza and send them out to the additional groups or, you know, what advice are you giving the developers out there? >> Yeah, in many ways, obviously, how we operate has changed. We are at home, maybe I think with our families. DockerCon was always going to be virtual, but many other events like AWS Summits are now virtual so, you know, in some ways, the teams, the people that get most impacted are not necessarily the developers in our team but people who interact a lot with customers, who go to conferences and speak and they are finding new ways of being effective and being successful and they've been very creative at it. Our customers are getting very good at working with us virtually because we can always go to their site, they can always come to Seattle, or run of other sites for meeting. So we've all become very good at, and disciplined at how do you conduct really nice virtual meetings. But from a customer commitment side, from how we are operating, the things that we're doing, not that much has changed. We still run our projects the same way, the teams work together. My team tends to do a lot of happy things like Friday happy hours, they happen to be all virtual. I think last time we played, what word, bingo? I forget exactly what game we played. I know I got some point somewhere. But we do our best to maintain sort of our team chemistry or camaraderie but the mission doesn't change which is our customers expect us to keep operating their services, make sure that they're highly available, keep delivering new capabilities and I think in this environment, in some ways that's even more important than ever, as customer, as the consumer moves online and so much business is being done virtually so it keeps us on our toes but it's been an adjustment but I think we are all, not just us, I think the whole world is doing the best that they can under the circumstances. >> Yeah, absolutely, it definitely has humanized things quite a bit. From a technology standpoint, Deepak, you know, distributed systems has really been the challenge of you know, quite a long journey that people have been going on. Docker has played, you know, a really important role in a lot of these cloud native technologies. It's been just amazing to watch, you know, one of the things I point to in my career is, you know, watching from those very, very early days of Docker to the Cambrian explosion of what we've seen container based services, you know, you've been part of it for quite a number of years and AWS had many services out there. For people that are getting started, you know, what guidance do you give them? What do they understand about, you know, containerization in 2020? >> Yeah, containerization in 2020 is quite a bit different from when Docker started in 2013. I remember speaking at DockerCon, I forget, that's 2014, 2015, and it was a very different world. People are just trying to figure out what containers are that they could package code in deeper. Today, containers are mainstream, it is more customers or at least many customers and they are starting to build new applications, probably starting them either with containers or with some form of server technology. At least that's the default starting point but increasingly, we also seen customers with existing applications starting to think about how do they adapt? And containers are a means to an end. The end is how can we move faster? How can we deliver more quickly? How can our teams be more productive? And how can you do it more, less expensively, at lower cost? And containers are a big part, important and critical piece of that puzzle, both from how customers are operating their infrastructure, that there's a whole ecosystem of schedulers and orchestration and security tools and all the things that an enterprise need to deliver applications using containers that they have built up. Over the last few years, you know, we have multiple container services that meet those needs. And I think that's been the biggest change is that there's so much more. Which also means that when you're getting started, you're faced with many more options. When Docker started, it was this cute whale, Docker run, Docker build Docker push, it was pretty simple, you could get going really quickly. And today you have 500 different options. My guidance to customers really is, boils down to what are you trying to achieve? If you're an organization that's trying to corral infrastructure and trying to use an existing VM more effectively, for example, you probably do want to invest in becoming experts at schedulers and understanding orchestration technologies like ECS and EKS work but if you just want to run applications, you probably want to look at something like Fargate or more. I mean, you could go towards Lambda and just run code. But I think it all boils down to where you're starting your journey. And by the way, understanding Docker run, Docker build and Docker push is still a great idea. It helps you understand how things work. >> All right, so Deepak, you've already brought up a couple of AWS services of, you know, talk about the options out there, that you can either run on top of AWS, you have a lot of native services, you know, ECS, EKS, you mentioned, Fargate there, and very broad ecosystem in space. Could you just, you know, obviously, there are entire breakout sessions to talk about , the various AWS services, but you know, give us that one on one level as to what to understand for container service by AWS. >> Yeah, and these services evolved organically and we launched the Amazon Elastic Container Service or ECS in preview in November or whenever re:Invent was that year in 2014, which seems ages ago in the world of containers but in the end, our goal is to give our customers the most choice, so that they can solve problems the way they want to solve them. So Amazon ECS is our native container orchestration service, it's designed to work with and the rest of the AWS ecosystem. So it uses VPC for networking, it uses IAM identity, it uses ALB for load balancing, other than just good examples, some examples of how it works. But it became pretty clear over time that there was a lot of customers who were investing in communities, very often starting in their own data centers. And as they migrated onto the cloud, they wanted to continue using the same tool plane but they also wanted to not have to manage the complexity of communities control planes, upgrades. And they also wanted some of the same integrations that they were getting with ECS and so that's where the Amazon Elastic Kubernetes Service or EKS comes in, which is, okay, we will manage a control plane for you. We will manage upgrades and patches for you. You focus on building your applications in Kubernetes way, so it embraces Kubernetes. It has, invokes with all the Kubernetes tooling and gives you a Kubernetes native experience, but then also ties into the broad AWS ecosystem and allows us to take care of some of the muck that many customers quite frankly don't and shouldn't have to worry about. But then we took it one step further and actually launched the same time as EKS and that's, AWS Fargate, and Fargate was, came from the recognition that we had, actually, a long time ago, which is, one of the beauties of EC2 was that customers never had, had to stop, didn't have to worry about racking and stacking and where a server was running anymore. And the idea was, how can we apply that to the world of containers. And we also learned a little bit from what we had done with Lambda. And we took that and took the server layer and took it out of the way. Then from a customer standpoint, all you're launching is a pod or a task or a service and you're not worrying about which machines I need to get, what types of machines I need to get. And the operational simplicity that comes with it is quite remarkable and quite finding not that, surprisingly, our customers want us to keep pushing the boundary of the kind operational simplicity we can give them but Fargate serves a critical building block and part of that, and we're super excited because, you know, today by far when a new customer, when a customer comes and runs a container on AWS the first time they pick Fargate, we're usually using ECS because EKS and Fargate is much newer, but that is a default starting point for any new container customer on AWS which is great. >> All right, well, you know, Docker, the company really helped a lot with that democratization, container technologies, you know, all those services that you talked about from AWS. I'm curious now, the partnership with Docker here, you know, how do some of the AWS services, you know, fit in with Docker? I'm thinking Docker Desktop probably someplace that they're, you know, or some connection? >> Yeah, I think one of the things that Docker has always been really good at as a company, as a project, is understanding the developer and the fact that they start off on a laptop. That's where the original Docker experience that go well, and Docker Desktop since then and we see a ton of Docker Desktop customers have used AWS. We also learned very early on, because originally ECS CLI supported Docker Compose. That ecosystem is also very rich and people like building Docker files and post files and just being able to launch them. So we continue to learn from what Docker is doing with Docker Desktop. We continue working with them on making sure that customizing the Docker Compose and Docker Desktop can run all their services and application on AWS. And we'll continue working with Docker, the company, on how we make that a lot easier for our customers, they are our mutual customers, and how we can learn from their simplicity that Docker, the simplicity that Docker brings and the sort of ease of use the Docker bring for the developer and the developer experience. We learn from that for our own services and we love working with them to make sure that the customer that's starting with Docker Desktop or the Docker CLI has a great experience as they move towards a fully orchestrated experience in the cloud, for example. There's a couple of other areas where Docker has turned out to have had foresight and driven some of our thinking. So a few years ago, Docker released this thing called containerd, where they took out their container runtime from inside the bigger Docker engine. And containerd has become a very important project for us as well as, it's the underpinning of Fargate now and we see a lot of interest from customers that want to keep building on containerd as well. And it's going to be very interesting to see how we work with Docker going forward and how we can continue to give our customers a lot of value, starting from the laptop and then ending up with large scale services in the cloud. >> Very interesting stuff, you know, interesting. Anytime we have a conversation about Docker, there's Docker the technology and Docker the company and that leads us down the discussion of open-source technologies . You were just talking about, you know, containerd believe that connects us to Firecracker. What you and your team are involved in, what's your viewpoint is the, you know, what you're seeing from open-source, how does Amazon think of that? And what else can you share with the audience on this topic? >> Yeah, as you've probably seen over the last few years, both from our work in Kubernetes, with things like Firecracker and more recently Bottlerocket. AWS gets deeply involved with open-source in a number of ways. We are involved heavily with a number of CNCF projects, whether it be containerd, whether it be things like Kubernetes itself, projects in the Kubernetes ecosystem, the service mesh world with Envoy and with the containerd project. So where containerd fits in really well with AWS is in a project that we call firecracker-containerd. They're effectively for Fargate, firecracker-containerd as we move Fargate towards Firecracker becomes out of the container in which you run containerd. It's effectively the equivalent of runC in a traditional Docker engine world. And, you know, one of the first things we did when Firecracker got rolled out was open-source the firecracker-containerd project. It's a go project and the idea was it's a great way for people to build VM like isolation and then build sort of these serverless container architectures like we want to do with Fargate. And, you know, I think Firecracker itself has been a great success. You see customer, you know, companies like Libvirt integrating with Firecracker. I've seen a few other examples of, sometimes unbeknownst to us, of people picking a Firecracker and using it for very, very interesting use cases and not just on AWS in other places as well. And we learnt a lot from that that's kind of why Bottlerocket is, was released the way it was. It is both a product and a project. Bottlerocket, the operating system is an open-source project. It's on GitHub, it has all the building tooling, you can take it and do whatever you want with it. And then on the AWS side, we will build and publish Bottlerocket armies, Amazon machine images, we will support them on AWS and there it's a product. But then Bottlerocket the project is something that anybody in the world who wants to run a minimal operating system can choose to pick up. And I think we've learnt a lot from these experiences, how we deal with the community, how we work with other people who are interested in contributing. And you know, Docker is one of the, the Docker open-source pieces and Docker the company are both part of the growing open-source ecosystem that's coming from AWS, especially on the container world. So it's going to be very interesting. And I'll end with, containerization has started impacting other parts of AWS, as well as our other services are being built, very often through ECS and EKS, but they're also influencing how we think about what capabilities we need to build into the broader container ecosystem. >> Yeah, Deepak, you know, you mentioned that some of the learnings from Lambda has impacted the services you're doing on the containerization side. You know, we've been watching some of the blurring of the lines between another container world and the containerization world. You know, there's some open-source projects out there, the CNCS working on things, you know, what's the latest, as you see kind of containerization and serverless and you know, where do you see them going forward? >> This is that I say that crystal balls are not my strong suite. But we hear customers, customers often want the best of both world. What we see very often is that customers don't actually choose just Fargate or just Lambda, they'll choose both. Where for different pieces of their architecture, they may pick a different solution. And sometimes that's driven by what they know, sometimes driven by what fits into their need. Some of the lines blur but they're still quite different. Lambda, for example, as a very event driven architecture, it is one process at a time. It has all these event hooks into the rest of AWS that are hard to replicate. And if that's the world you want to live in or benefit from, you're going to use lambda. If you're running long running services or you want a particular size that you don't get in Lambda or you want to take a more traditional application and convert it into a more modern application, chances are you're starting on Fargate but it fits in really well you have an existing operational model that fits into it. So we see applications evolving very interestingly. It's one reason why when we build a service mesh, we thought forward instead. It is almost impossible that we will have a world that's 100% containers, 100% Lambda or 100% EC2. It's going to be some mix of all of these. We have to think about it that way. And it's something that we constantly think about is how can we do things in a way that companies aren't forced to pick one way to it and "Oh, I'm going to build on Fargate" and then months later, they're like, "Yeah, we should have probably done Lambda." And I think that is something we think a lot about, whether it's from a developer's experience side or if it's from service meshes, which allow you to move back and forth or make the mesh. And I think that is the area where you'll see us do a lot more going forward. >> Excellent, so last last question for you Deepak is just give us a little bit as to what, you know, industry watchers will be looking at the container services going forward, next kind of 12, 18 months? >> Yeah, so I think one of the great things of the last 18 months has been that type of application that we see customers running, I don't think there's any bound to it. We see everything from people running microservices, or whatever you want to call decoupled services these days, but are services in the end, people are running, most are doing a lot of batch processing, machine learning, artificial intelligence that work with containers. But I think where the biggest dangers are going to come is as companies mature, as companies make containers, not just things that they build greenfield applications but also start thinking about migrating legacy applications in much more volume. A few things are going to happen. I think we'll be, containers come with a lot of complexity right now. I think you've, if you've seen my last two talks at re:Invent along with David Richardson from the Lambda team. You'll hear that we talk a lot about the fact that we see, we've made customers think about more things than they used to in the pre container world. I think you'll see now that the early adopter techie part has done, cloud has adopted containers and the next wave of mainstream users is coming in, you'll see more attractions come on as well, you'll see more governance, I think service meshes have a huge role to play here. How identity works or this fits into things like control tower and more sort of enterprise focused tooling around how you put guardrails around your containerized applications. You'll see it two or three different directions, I think you'll see a lot more on the serverless side, just the fact that so many customers start with Fargate, they're going to make us do more. You'll see a lot more on the ease of use developer experience of production side because you started off with the folks who like to tinker and now you're getting more and more customers that just want to run. And then you'll see, and that's actually a place where Docker, the company and the project have a lot to offer, because that's always been different. And then on the other side, you have the governance guardrails, and how is going to be in a compliant environment, how am I going to migrate all these applications over so that work will keep going on and you'll more and more of that. So those are the three buckets I'll use, the world can surprise us and you might end up with something completely radically different but that seems like what we're hearing from our customers right now. >> Excellent, well, Deepak, always a pleasure to catch up with you. Thanks so much for joining us again on theCUBE. >> No, always a pleasure Stu and hopefully, we get to do this again someday in person. >> Absolutely, I'm Stu Miniman, thanks as always for watching theCUBE. >> Deepak: Yep, thank you. (gentle music)

>> announcer: From around the globe. It's the theCUBE with digital coverage of DockerCon live 2020. Brought to you by Docker and its ecosystem partners. >> Welcome back to theCUBE coverage here at the DockerCon virtual headquarters, anchor desks here in the Palo Alto Studios were quarantined in this virtual event of DockerCon. I'm John Furrier, host along with Jenny Bertuccio, John Kreisa, Peter McKee, other folks who are moderating and weaving in and out of the sessions. But here we have a live sessions with Justin Graham, Vice President of the Products group at Docker. Justin, thanks for coming in DockerCon virtual '20. >> Absolutely, happy to be here from my home office in Seattle, Washington where it is almost sunny. >> You had a great backdrop traveler saying in the chat you got a bandwidth, a lot of bandwidth there. Looking good, some island. What a day for Docker global event. 77,000 people registered. It's just been an awesome party. >> It's been great, I could hardly sleep last night. I was up at 5:00 this morning. I was telling my son about it at breakfast. I interrupted his Zoom school. And he talked a little bit about it, so it's been awesome. I've been waiting for this interview slot for the most of the day. >> So yeah, I got to tell the kids to get off, download those gigabytes of new game updates and get off Netflix, I hear you. But you got good bandwidth. Let's get into it, I love your position. VP of Product at a company that's super technical, a lot of software, a lot of cloud. You've got a good view of the landscape of what the current situation is relative to the product, the deals that are going on with this new announced here, sneak Microsoft expansion, multiple clouds as well as the roadmap and community interaction. So you got a lot going on, you've got your fingers in all the action. When you get the keys to the kingdom, as we say in the product side of things, what's the story today from your perspective around DockerCon? What's the most important thing people should know about of what's going on with this new Docker? Obviously, ease of use, we've heard a lot about. What's going on? >> So I'll start with people. We are hyper focused on helping developers and development teams build and ship applications. That's what we're focused on. That's what we wake up every day thinking about. And we double click on that a minute in terms of what that means. If you think about where source control ends and having a running application on some production compute in the Cloud on the other end, there's a whole lot that needs to happen in the middle of those two things. And we hear from our development community and we see from those folks, there's a lot of complexity and choices and options and things in the middle there. And we really want to help streamline the creation of those pipelines to get those apps moving to production as fastly, as quickly as possible. >> And you can see it in some of the results and some of the sessions, one session coming up at around four, around how pipelining with Docker help increase the problem solving around curing cancer, really solving, saving people's lives to the front lines with COVID 19 to business value. So you seeing, again Docker coming back into the fold relative to the simple value proposition of making things super easy for developers, but on top of the mega trend of microservices. So, outside of some of these awesome sessions with his learning, the hardcore sessions here at DockerCon around microservices from monitoring, you name it, not a trivial thing cause you've got stateless and state, all kinds of new things are going on with multiple clouds. So not an easy-- >> No. >> road to kind of grok or understand you have to manage that. What are people paying attention to? What is happening? I think, first off I'll say, one of the things that I'm super passionate about is increasing access to technology, so the greatest and best ideas can get bubbled up to the top and expose no matter where they come from, whom they come from, et cetera. And I think one of the things that makes that harder, that makes that complex is just how much developers need to understand or even emerging developers need to understand. Just to even get started. Languages, IDEs, packaging, building where do you ship to? If you pick a certain powder end point, you have to understand networking and storage and identity models are just so much you have to absorb. So we're hyper focused on how can we make that complex super easy. And these are all the things that we get asked questions on. And we get interacted with on our public roadmap in other places to help with. So that's the biggest things that you're going to see coming out of Docker starting now and moving forward. We'll be serving that end. >> Let's talk about some of the new execution successes you guys had. Honestly, Snyk is security shifting left, that's a major, I think a killer win for Snyk. Obviously, getting access to millions of developers use Docker and vice versa. Into the shifting left, you get to security in that workflow piece. Microsoft expanding relationship's interesting as well because Microsoft's got a robust tech developer ecosystem. They have their own tools. So, you see these symbiotic relationship with Docker, again, coming into the fold where there's a lot of working together going on. Explain that meaning, what does that mean? >> So you're on the back of the refocus Docker in our hyperfocus on developers and development teams, one of the core tenants of the how. So before that was the what. This is the how we're going to go do it. Is by partnering with the ecosystem as much as possible and bringing the best of breed in front of developers in a way that they can most easily consume. So if you take the Snyk partnership that was just a match, a match made in developer dopamine as a Sean Connolly, would say. We're hyper focused on developers and development teams and Snyk is also hyperfocused on making it as easy as possible for developers and development teams to stay secure ship, fast and stay secure. So it really just matched up super well. And then if you think, "Well, how do we even get there in the first place?" Well, we launched our public roadmap a few months ago, which was a first that Docker has ever done. And one of the first things that comes onto that public roadmap is image vulnerability scanning. For Docker, at that time it was really just focused on Docker Hub in terms of how it came through the roadmap. It got up voted a bunch, there has been some interaction and then we thought, "Well, why just like checking that box isn't enough," right? It's just checking the box. What can we do that really brings sort of the promise of the Docker experience to something like this? And Sneak was an immediate thought, in that respect. And we just really got in touch with them and we just saw eye to eye almost immediately. And then off off the rest went. The second piece of it was really around, well why just do it in Docker Hub? What about Docker Desktop? It's downloaded 80,000 times a week and it's got 2.2 million active installations on a weekly basis. What about those folks? So we decided to raise the bar again and say, "Hey, let's make sure that this partnership includes "not only Docker Hub but Docker Desktop, so you'll be able, when we launch this, to scan your images locally on Docker Desktop. >> Awesome, I see getting some phone calls and then you got to hit this, hit the end button real quick. I saw that in there. I've got an interesting chat I want to just kind of lighten things up a little bit from Brian Stevenson. He says, "Justin, what glasses are those?" (Justin laughing) So he wants to know what kind of glasses you're wearing. >> They're glasses that I think signal that I turned 40 last year. >> (laughs) I'd say it's for your gaming environments, the blue light glasses. >> But I'm not going to say where they came from because it's probably not going to engender a bunch of positive good. But they're nice glasses. They help me see the computer screen and make sure that I'm not a bad fingering my CLI commands >> Well as old guys need the glasses, certainly I do. Speaking of old and young, this brought up a conversation since that came up, I'll just quickly riff into this cause I think it's interesting, Kelsey Hightower, during the innovation panel talked about how the developers and people want to just do applications, someone to get under the hood, up and down the stack. I was riffing with John Chrysler, around kind of the new generation, the kids coming in, the young guns, they all this goodness at their disposal. They didn't have to load Linux on a desktop and Rack and Stack servers all that good stuff. So it's so much more capable today. And so this speaks to the modern era and the expansion overall of opensource and the expansion of the people involved, new expectations and new experiences are required. So as a product person, how do you think about that? Because you don't want to just build for the old, you got to build for the new as well as the experience changes and expectations are different. What's your thoughts around that? >> Yeah, I think about sort of my start in this industry as a really good answer to that. I mean, I remember as a kid, I think I asked for a computer for every birthday and Christmas from when I was six, until I got one given to me by a friend's parents in 1994, on my way off to boarding school. And so it took that long just for me to get a computer into my hands. And then when I was in school there wasn't any role sort of Computer Science or coding courses until my senior year. And then I had to go to an Engineering School at Rensselaer city to sort of get that experience at the time. I mean, just to even get into this industry and learn how to code was just, I mean, so many things had to go my way. And then Microsoft hired me out of college. Another thing that sort of fell my way. So this work that we're doing is just so important because I worked hard, but I had a lot of luck. But not everybody's going to have some of that, right? Have that luck. So how can we make it just as easy as possible for folks to get started wherever you are. If you have a family and you're working another full time job, can you spend a few hours at night learning Docker? We can help you with that. Download Docker Desktop. We have tutorials, we have great docs, we have great captains who teach courses. So everything we're doing is sort of in service of that vision and that democratization of getting into the ideas. And I love what Kelsey, said in terms of, let's stop talking about the tech and let's stop talking about what folks can do with the tech. And that's very, very poignant. So we're really working on like, we'll take care of all the complexity behind the scenes and all of the VMs and the launching of containers and the network. We'll try to help take care of all that complexity behind the curtain so that you can just focus on getting your idea built as a developer. >> Yeah, and you mentioned Kelsey, again. He got a great story about his daughter and Serverless and I was joking on Twitter that his daughter convinced them that Serverless is great. Of course we know that Kelsey already loves Serverless. But he's pointing out this developer dopamine. He didn't say that's Shawn's word, but that's really what his daughter wanted to do is show her friends a website that she built, not get into, "Hey look, I just did a Kubernetes cluster." I mean it's not like... But pick your swim lane. This is what it's all about now. >> Yeah, I hope my son never has to understand what a service mesh is or proxy is. Right? >> Yeah. >> I just hope he just learn the language and just learns how to bring an idea to life and all the rest of it is just behind me here. >> When he said I had a parenting moment, I thought he's going to say something like that. Like, "Oh my kid did it." No, I had to describe whether it's a low level data structure or (laughs) just use Serverless. Shifting gears on the product roadmap for Docker, can you share how folks can learn about it and can you give some commentary on what you're thinking right now? I know you guys put on GitHub. Is there a link available-- >> Absolutely, available. Github.com/docker/roadmap. We tried to be very, very poignant about how we named that. So it was as easy as possible. We launched it a few months ago. It was a first in terms of Docker publicly sharing it's roadmap and what we're thinking and what we're working on. And you'll find very clear instructions of how to post issues and get started. What our code of conduct is. And then you can just get started and we even have a template for you to get started and submit an issue and talk to us about it. And internally my team and to many of our engineers as well, we triaged what we see changing and coming into the public roadmap two to three times a week. So for a half an hour to 45 minutes at a time. And then we're on Slack, batting around ideas that are coming in and saying how we can improve those. So for everyone out there, we really do pay attention to this very frequently. And we iterate on it and the image vulnerability scannings one of those great examples you can see some other things that we're working on up there. So I will say this though, there has been some continual asks for our Lennox version of Docker Desktop. So I will commit that, if we get 500 up votes, that we will triage and figure out how to get that done over a period of time. >> You heard 500 up votes to triage-- >> 500 >> You as get that. And is there a shipping date on that if they get the 500 up votes? >> No, no, (John laughs) you went to a shipping date yet, but it's on the public roadmap. So you'll know when we're working on it and when we're getting there. >> I want before I get into your session you had with the capital, which is a very geeky session getting under the hood, I'm more on the business side. The tail wind obviously for Docker is the micro services trend. What containers has enabled is just going to continue to get more awesome and complex but also a lot of value and agility and all the things you guys are talking about. So that obviously is going to be a tailwind for you. But as you guys look at that piece of it, specifically the business value, how is Docker positioned? Because a of the use cases are, no one really starts out microservices from a clean sheet of paper that we heard some talks here DockerCon where the financial services company said, "Hey, it's simple stack," and then it became feature creep, which became a monolith. And then they had to move that technical debt into a much more polyglot system where you have multiple tools and there's a lot of things going on, that seems to be the trend that also speaks to the legacy environment that most enterprises have. Could you share your view on how Docker fits into those worlds? Because you're either coming from a simple stack that more often and got successful and you're going to go microservice or you have legacy, then you want to decouple and make it highly cohesive. So your thoughts. >> So the simple answer is, Docker can help on both ends. So I think as these new technologies sort of gain momentum and get talked about a bunch and sort of get rapid adoption and rapid hype, then they're almost conceived to be this wall that builds up where people start to think, "Well, maybe my thing isn't modern enough," or, "Maybe my team's not modern enough," or, "Maybe I'm not moderate enough to use this." So there's too much of a hurdle to get over. And that we don't see that at all. There's always a way to get started. Even thinking about the other thing, and I'd say, one we can help, let us know, ping us, we'll be happy to chat with you, but start small, right? If you're in a large enterprise and you have a long legacy stack and a bunch of legacy apps, think about the smallest thing that you can start with, then you can begin to break off of that. And as a proof of concept even by just downloading Docker Desktop and visual studio code and just getting started with breaking off a small piece, and improve the model. And I think that's where Docker can be really helpful introducing you to this paradigm and pattern shift of containers and containerized packaging and microservices and production run time. >> And certainly any company coming out of his post pandemic is going to need to have a growth strategy that's going to be based on apps that's going to be based on the projects that they're currently working, double down on those and kind of sunset the ones that aren't or fix the legacy seems to be a major Taylor. >> The second bit is, as a company, you're going to also have to start something new or many new things to innovate for your customers and keep up with the times and the latest technology. So start to think about how you can ensure that the new things that you're doing are starting off in a containerized way using Docker to help you get there. If the legacy pieces may not be able to move as quickly or there's more required there, just think about the new things you're going to do and start new in that respect. >> Well, let's bring some customer scenarios to the table. Pretend I'm a customer, we're talking, "Hey Justin, you're looking good. "Hey, I love Docker. I love the polyglot, blah, blah, blah." Hey, you know what? And I want to get your response to this. And I say, "DevOps won't work here where we are, "it's just not a good fit." What do you say when you hear things like that? >> See my previous comment about the wall that builds up. So the answer is, and I remember hearing this by the way, about Agile years ago, when Agile development and Agile processes began to come in and take hold and take over for sort of waterfall processes, right? What I hear customers really saying is, "Man, this is really hard, this is super hard. "I don't know where to start, it's very hard. "How can you help? "Help me figure out where to start." And that is one of the things that we're very very very clearly working on. So first off we just, our docs team who do great work, just made an unbelievable update to the Docker documentation homepage, docs.docker.com. Before you were sort of met with a wall of text in a long left navigation that if you didn't know what you were doing, I would know where to go. Now you can go there and there's six very clear paths for you to follow. Do you want to get started? Are you looking for a product manual, et cetera. So if you're just looking for where to get started, just click on that. That'll give you a great start. when you download Docker Desktop, there's now an onboarding tutorial that will walk you through getting your first application started. So there are ways for you to help and get started. And then we have a great group of Docker captains Bret Fisher, many others who are also instructors, we can absolutely put you in touch with them or some online coursework that they deliver as well. So there's many resources available to you. Let us help you just get over the hump of getting started. >> And Jenny, and on the community side and Peter McKee, we're talking about some libraries are coming out, some educational stuff's coming around the corner as well. So we'll keep an eye out for that. Question for you, a personal question, can you share a proud devOps Docker moment that you could share with the audience? >> Oh wow, so many to go through. So I think a few things come to mind over the past few weeks. So for everyone that has no... we launched some exciting new pricing plans last week for Docker. So you can now get quite a bit of value for $7 a month in our pro plan. But the amount of work that the team had to do to get there was just an incredible thing. And just watching how the team have a team operated and how the team got there and just how they were turning on a dime with decisions that were being made. And I'm seeing the same thing through some of our teams that are building the image vulnerability scanning feature. I won't quote the number, but there's a very small number of people working on that feature that are creating an incredible thing for customers. So it's just how we think every day. Because we're actually almost trying to productize how we work, right? And bring that to the customer. >> Awesome, and your take on DockerCon virtual, obviously, we're all in this situation. The content's been rich on the site. You would just on the captains program earlier in the day. >> Yes. >> Doctor kept Brett's captain taught like a marathon session. Did they grill you hard or what was your experience on the captain's feed? >> I love the captain's feed. We did a run of that for the Docker birthday a few months ago with my co-worker Justin Cormack. So yes, there are two Justin's that work at Docker. I got the internal Justin Slack handle. He got the external, the community Slack Justin handle. So we split the goods there. But lots of questions about how to get started. I mean, I think there was one really good question there. Someone was saying asking for advice on just how to get started as someone who wants to be a new engineer or get into coding. And I think we're seeing a lot of this. I even have a good friend whose wife was a very successful and still is a very successful person in the marketing field. And is learning how to code and wants to do a career switch. Right? >> Yeah. >> So it's really exciting. >> DockerCon is virtual. We heard Kelsey Hightower, we heard James Governor, talk about events going to be more about group conventions getting together, whether they're small, medium, or large. What's your take on DockerCon virtual, or in general, what makes a great conference these days? Cause we'll soon get back to the physical space. But I think the genie's out of the bottle, that digital space has no boundaries. It's limitless and creativity. We're just scratching the surface. What makes a great event in your mind? >> I think so, I go back to thinking, I've probably flown 600,000 miles in the past three years. Lots of time away from my family, lots of time away from my son. And now that we're all in this situation together in terms of being sheltered in place in the global pandemic and we're executing an event that has 10 times more participation from attendees than we had in our in person event. And I sat back in my chair this morning and I was thinking, "Did I really need to fly that 600,000 miles "in the past three years?" And I think James Governor, brought it up earlier. I really think the world has changed underneath us. It's just going to be really hard to... This will all be over eventually. Hopefully we'll get to a vaccine really soon. And then folks will start to feel like world's a little bit more back to "normal" but man, I'm going to really have to ask myself like, "Do I really need to get on this airplane "and fly wherever it is? "Why can't I just do it from my home office "and give my son breakfast and take them to school, "and then see them in the evening?" Plus second, like I mentioned before in terms of access, no in person event will be able to compete ever with the type of access that this type of a platform provides. There just aren't like fairly or unfairly, lots of people just cannot travel to certain places. For lots of different reasons, monetary probably being primary. And it's not their job to figure out how to get to the thing. It's our job to figure out how to get the tech and the access and the learning to them. Right? >> Yeah (murmurs) >> So I'm super committed to that and I'll be asking the question continually. I think my internal colleagues are probably laughing now because I've been beating the drum of like, "Why do we ever have to do anything in person anymore?" Like, "Let's expand the access." >> Yeah, expand the access. And what's great too is the CEO was in multiple chat streams. So you could literally, it's almost beam in there like Star Trek. And just you can be more places that doesn't require that spatial limitations. >> Yeah. >> I think face to face will be good intimate more a party-like environment, more bonding or where social face to face is more impactful. >> We do have to figure out how to have the attendee party virtually. So, we have to figure out how to get some great electronic, or band, or something to play a virtual show, and like what the ship everybody a beverage, I don't now. >> We'll co-create with Dopper theCUBE pub and have beer for everybody if need they at some point (laughs). Justin, great insight. Thank you for coming on and sharing the roadmap update on the product and your insights into the tech as well as events. Appreciate it, thank you. >> Absolutely, thank you so much. And thanks everyone for attending. >> Congratulations, on all the work on the products Docker going to the next level. Microservices is a tailwind, but it's about productivity, simplicity. Justin, the product, head of the product for Docker, VP of product on here theCUBE, DockerCon 2020. I'm John Furrier. Stay with us for more continuous coverage on theCUBE track we're on now, we're streaming live. These sessions are immediately on demand. Check out the calendar. There's 43 sessions submitted by the community. Jump in there, there are own container of content. Get in there, pun intended, and chat, and meet people, and learn. Thanks for watching. Stay with us for more after this break. (upbeat music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. 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>> Live from San Francisco, it's theCUBE, covering DockerCon 18. Brought to you by Docker and it's ecosystem partners. >> Welcome back to theCUBE's coverage of DockerCon 2018 in beautiful San Francisco. It's a stunning day here. We're at Moscone West, I'm Lisa Martin with John Troyer. Very honored to welcome to theCUBE, for the first time, the CEO of Docker Inc., Steve Singh. Welcome, Steve. >> Hi Lisa, very nice to meet you. John, how are you? >> So the general session this morning, standing room only between five and six thousand people. I gotta say a couple things that jumped out at me. One, coolest stage entrance I've ever seen with this great, if you haven't seen it from the livestream, this, like, 3D Golden Gate Bridge and I loved that and I loved the demo of Docker Desktop that your kids did, fueled by Mountain Dew, which actually single handedly got me through college here in San Francisco. So, the momentum that you guys, it was kicking off with a bang. >> Yeah, I, look, I've got a great team and one of the things we wanted to communicate this morning is that you're seeing a massive transformation in the world of software. And this transformation is enabling every company in the world to think about their business in a new light. To think about how their business meets customer needs in a way that's much more personal, in a way that delivers more value. And this is the beauty of where Docker is, right, we have a chance to help literally every company in the world. And that's the part, honestly, that gets me excited, is, like, how do you help other people go create amazing businesses? And so this is, I couldn't be more happy to be at Docker. >> Steve, keying on that, one of the customers on stage today, McKesson. >> Yeah. >> And I loved Rashmi Kumar came out and talked about future-proofing for applications, their infrastructure, their applications in partnership with Docker. >> Yeah. And that implies a certain amount of trust that they have in Docker and Docker's technology platform and in partnering with you. You come from a, so you've been at Docker for about a year now, right? Came in as CEO. Docker is still a small company, a couple hundred folks but punching way above its weight with a huge community impact. How do you, and, you know, you've worked with the biggest companies in the world, how do you come in and establish that trust and help reassure them that you're gonna be a good partner for them and, kinda, what are you seeing with your customers? >> It's a great question, John, and look, there's maybe two or three pieces of how we think about that. The first thing, trust is very human, right? You've gotta know that you're walking into a situation as a vendor and as a customer but really as partners. And you're trying to solve a problem together. Because the reality is, this transformation that companies are going through is the first time in 40 years that this kind of transformation has happened. Second is, the technology stack is still in the early stages. Now, it's incredible and it enables amazing things, but it's still in the early stages. So both of us have to walk into the relationship knowing that, you know what, sometimes it won't go perfect, but guess what? We're gonna be, you know, if it doesn't go perfect we're gonna honor everything we ever committed to you and the same thing on the customer's side. They look at it and say, "I may have actually described my needs differently than what they actually are." And that's what a real partnership is. That's number one. Number two is, trust is driven by culture. And one of the things that I love about Docker is that we see our place in the world but we wanna make sure the customer always has choice. We wanna make sure that if we do a great job the customer will choose to work with us. If we don't, they should have the choice to go somewhere else. And that's what our platform enables, is the choice to be able to work with anybody you'd like to work with, whether you're the developer or you're an operator or you're an IT, I'm sorry, an architect, or the executive. The other piece around this is that part of the value of Docker is it's not just the 400 people of our company, right? There's 5,000 members of our community that are adding value to our community. One of the things that I wanna make sure we do for our community is help them not just innovate on this incredible platform but how do we help them take their innovations to market? And so that's part of the ethos of our company. >> One of the things that you talked about this morning that I thought was really compelling was, you said software innovation used to be, for the last 40 years, it's been driven by tech companies. That's changing. You talked about distributed innovation and distributed consumption. How is Docker helping to, culturally, I don't wanna say instill, but helping to influence, maybe, organizations to be able to distribute innovation and be able to share bi-directionally? >> Yeah, so, a great question, Lisa. So, first of all, is there's a cultural change within companies. When you think about the next generation or the next 40 years being, software being driven from non-technology companies. First of all, we're seeing that. Second is that it requires a cultural change within the business but that change is critical 'cause in the absence of becoming more of a software company your business is gonna be under threat, right? From the competing business. Look at what Netflix has done in media compared to every other media company. That same example applies in every single industry. Now, the way that we help enable that software transformation is to provide a platform that is so easy to use that it doesn't require a lot of training. Now this is complicated platforms, so, yes you have to be a fantastic developer or an IT professional but our job is to take complicated technology like container management software, orchestration layers like Swarm or Kubernetes, service mesh, storage networking, all of those, and make it so simple and easy to use that your IT department can say, "I can use this platform to effectively future-proof your company," right? So, how do you have a platform that you can build every application on, take all of you legacy applications on, run it, and then run it anywhere you like. >> I think that's been one of the through lines for Docker since the very beginning, that developer experience, right? >> Yes. >> And what's been interesting in Docker's development was, I think for both inside and outside, is kind of, what is Docker Inc, and the project versus the company, what is it selling, what's the commercial aspect here? I think, I kind of think back to my experience at BMWare, where there was an enterprise side and then a huge install base of workstation folks. And it's even stronger with Docker because actually now with Docker Desktop as an application development environment or a, you know, I don't wanna, not quite development environment but, you know, the one you announced today with Docker Desktop. That's an even more valuable through line into the Enterprise Edition. >> Yeah. >> But I don't, so, I guess where I'm heading, Steve, is, can you talk a little bit about the commercial situation? Docker EE as the flagship platform. >> Yeah, of course. >> And, kind of, where we are in the maturity journey with customers right now, it's real and important. >> Absolutely John, but you're bringing up a great point within this. Look, we're both, we're a enterprise software company and we're this incredible community where innovation is being brought in by every member of the community. And there's nothing in the world that says you can't do both. This idea that you're one company versus another, this is nonsense, alright? It's a very narrow view of the world. In fact, I would argue that, more and more, companies have to think about that they have multiple people that they serve. Multiple constituents that they serve. In our case we serve the Enterprise IT organization and we also serve developers. And developers are a critical part, not just of our community, that is the life of every company going forward. Which is why we're so excited about this. That's the life of every company. So, Docker Desktop, the reason we're so excited about it is, first of all, it is the easiest way to engage with Docker, to build applications. And then we feel like there's a lot more innovation that we can actually deliver within Docker Desktop. Alright, so a million new developers joined on Docker Desktop this year. In fact, we're growing about seven or eight percent month over month on that. And so you should expect over the next year another million will be on Docker Desktop. But it's incumbent upon us to say, the only way that we continue to earn the trust of that portion of our constituents, that of the developer community, is to make sure we're innovative, to make sure we're open to allow others to innovate on top of us. >> I'd love to, kind of, explore on audience a little bit. So, in terms of innovation, you know, we know that the companies that have the ability to aggressively innovate, and to do that they have to have the budget, are the ones that stay relevant and that are the most competitive. But I think I saw some stats and I think Scott Johnson said that close to 90 percent of IT budgets are spent keeping the lights on. So you have very little dollars to actually drive innovation. So when you're talking with customers, and you said you just met with 25 of Docker Inc's biggest customers just this morning, are you talking to both the developer guys and girls as well as the C suite? >> Yeah. >> What is, how are you connecting and then, maybe, is it a conversation to enable the developers to be able to sell the value up the stack or is it vice versa? >> A couple of things here, so, first of all, John, I didn't answer part of your question which is the growth in our Enterprise customer base. We've literally doubled it year over year, right? So, more than 500 Global 10,000 companies that are using Docker to run their applications and to manage their applications. The way that we engage with our customers is literally across the entire constituents of that organization, right? A developer by themselves, as genius as that group of people are, you can't deliver the application. And delivering the application is just as important as building it. And so the IT organization, the ops organization is critical. And then there's gotta be an overriding objective. What is it we're trying to do? How do we transform ourselves into a software company? You think about, think about just for example, Tesla, right? When you have a company, and I realize Tesla's stock goes up and down, they're always in the news, but when you have a company that's worth more than some of the biggest automotive companies in the world, you have to ask yourself why. Well, part of the reason why isn't just the fact that we've got an electric vehicle that's better for the environment. Part of it is, it's really as much a software company as it is a automotive company. They have incredible amounts of data about how we use our cars, where we go, and in fact the Tesla cars are actually interconnected. And so, that brings a perspective in how you build cars and how they're gonna be used and how they're gonna be consumed that's radically different than if you're just an auto manufacturer. Now, look, Ford and GM and Volvo are all really smart, great companies and they're quickly moving through to themselves being software companies. >> Steve, can you talk a little bit about ecosystems? Microsoft, on stage this morning, a long partnership with them but also here at the show, right, enterprise folks, Dell and Accenture and I'm just looking down the list as well as Google and Amazon, right? So, you need to be partnering with a lot of folks to make all this work. How are you approaching that? >> John, part of the reason for that is, let's start with a simple premise, is something this large, alright, you can't possibly innovate fast enough on your own, alright? There's seven billion amazing people on this planet. The only way you can really drive mass scale global innovation, is you have to be open, right? I'm literally a guy that was born in a mud house in India, so I certainly appreciate the opportunity to participate in the rest of the world's economy. So we have to be open to say, anybody that wants to contribute, can. Now, obviously we think that contribution has to be within an ethos, right? If your definition of contribution is how do you help your own business, that's not good enough. You have to look at this and say, there has to be choice, in our view, choice, security and agility. So, how do we deliver those values or that ethos to our customers? And if you're willing to do that, man we want to partner with everybody in this space. >> Yeah, I, sometimes I despair of the tech press, although I consume a lot of it and if I never have to read another Swarm versus Kubernetes article again I would be happy. But Kubernetes' all over the keynote and it seems like Docker you all have embraced it and in fact are supporting it in very innovative ways with the cloud providers. In terms of ecosystem can you talk a little bit about-- >> Yeah, well, part of the value of Docker is we simplify very complex things and make it available to our customers to consume with little training, little understanding of the underlying deep technology. And the other part is that it comes back to this idea that innovation will happen everywhere. Why should we view the world as it's our solution or, you know, nobody's? That's nonsense, right? Kubernetes is a fantastic orchestrational entity. Why shouldn't it be integrated into the Docker container platform? And so, as we did that, guess what happened? Our customers, all they saw was, instead of conflict they saw the opportunity to work together. In fact it's been amazing for the growth in our business, that's why ewe doubled year over year. >> Now, collaboration is essential and we were talking with Scott Johnson a little bit earlier today about the internal collaboration but also the external collaboration with customers. You talked about partnerships, I think that the MTA program, the Modernization of Traditional Apps launched about a year ago with Avanade, Cisco, HPE and Microsoft. Tell us a little bit about that, probably around the same time that you came to the helm. You're seeing, you know, customers like Visa, PayPal as part of this program, be able to transform and go to the container journey. >> Yeah, and Lisa, this speaks to an observation you made a few minutes ago about the fact that, you know, 85, 90% of IT budgets are fixed before you even walk into the year. So, look, the Docker platform can be used for any kind of application. Legacy apps, next generation apps that run in the data center, next generation apps that run on Edge devices. But if you accept that 90% of the apps that sit within a company are all legacy apps, well, guess what, that's where their cost is. And then if you marry that to the fact that every CIO has this problem that I don't have a lot of money that's free in my budget. Well, how do we help solve that? And the way we chose to solve it is this Docker MTA solution. Modernizing Traditional Apps. Take your traditional apps, run 'em on the Docker platform, run 'em on any infrastructure you like, cut your app and infrastructure management costs in half. Now, then take that savings and then apply it towards innovation. This is why it resonates with CIO's. I mean, as much as they may love Docker and they may love us, they have a business to serve and they're very, very practical in how they think about, you know, going about their business. >> So with that approach, thanks John, how receptive were those enterprise CIO's to going, "You're right, we've gotta start with our enterprise apps." They don't have the luxury of time, of ripping out old infrastructure and building them on containers or microservices architectures. And these are often mission-critical applications. Was that an easy sell, was that, tell me about that. >> (laughs) Well, nothing's easy but the reality is, is that it, they got it quickly, right? Because it speaks directly to their paying point. And what I'm very proud of with my team is not only were we able to deliver a great product for MTA but we're also helping our customers actually make sure they can migrate these apps over. But what's been really a positive, you know, kind of a signal we've seen, that's still the early stages, is that as our customers are moving their legacy apps to Docker and running 'em on new infrastructure, sometimes public cloud, and cutting costs, they're starting to take that cost savings and actually applying it to their next generation apps. So they're not using Docker for new apps. And so that is, that's the benefit of when you really try to solve the problem the way the customer wants to consume it. >> So, Steve, the user conference, very energizing, right. >> Yeah. >> Already the energy's been good here, you've been doing trainings and certifications, there's people behind us, everyone's talking, so that kind of in some ways sets the tone for the year, so as you and your team go back to the office after this week, you know, what are you looking to do and what can we expect out of Docker? >> I'll just speak to two things. First of all, there's so much innovation we still have to deliver. If anything, you know, I would say my team will tell me I might be pushing a little hard. But you know what, this is the fun, you only have x number of years in life and you should make the most of it. So we're really excited about new apps, we're excited about SecurEdge apps. We're excited about, I don't know if you saw the demo this morning, of Armada, which allows you to run any app on any operating system, on any infrastructure, all from a single pane of glass. Our customers love that and they're very excited about that. That said, you know, this is a, it's a big test. We have a huge opportunity to welcome a lot of other companies, so when you walk around and see 5,000 people that see amazing opportunity, not just for Docker, for themselves, right? That's the secret part of Docker that I love. We're creating jobs that didn't exist before, right? I mean, you see kids coming out of college now getting Docker skills and they're using that to grow their IT profession. In fact, I was just at i.c.stars, this is an amazing organization in Chicago that helps individuals who've been displaced in the workforce learn the IT skills required to come back to the workforce and really help run internal IT organizations. Guess what they're learning? They're learning Docker. So that's, these are the kind of things that get us excited. >> And that's essential for enterprise organizations who, that's one of the challenges they face, was, you know, modernizing the data center, which they have to do, but then it requires new skill sets, maybe upskilling, so it's exciting to hear that you're seeing this investment in people that have an opportunity, the proclivity to actually learn this technology. >> Yeah, this is, we are happy because we help customers but we also create amazing new jobs that, you know, are, certainly our community can still benefit from. >> So, last question, the three themes that came out of your session and really the general session this morning was, you talked about someone's choice, agility and security. Are those the three pillars that you believe Docker, upon which Docker sits as really competitive differentiators? >> Amen, amen, number one, but it's also our values, right? This is rooted in our values and when a company performs best is when their values show up in their products. Because then you're never lost, you'll always know what you're focused on. And you know, when I ran Concur, we had this vision, north star, called The Perfect Trip. And our objective was to always go create a delightful business trip experience. And for Docker I wanna make sure that we have a north star. And our north star is our values and they have to translate directly to what actually helps the customer. >> Love that, the north star. Well, hopefully theCUBE is the north star of modern tech media. Steve, thanks so much for stopping by. >> Thank you, it's wonderful to meet you. It was great to meet you as well and congratulations on the big success. >> Thank you. >> We look forward to hearing-- >> Thank you Lisa, thank you John. >> What's coming out in the next year. >> Thank you. >> And we wanna thank you for watching theCUBE, I'm Lisa Martin with John Troyer today live from San Francisco DockerCon 2018. Stick around, we'll be back after a short break. (upbeat music)

>> Live from San Francisco, it's theCUBE, covering DockerCon 18, brought to you by Docker and its ecosystem partners. >> Welcome to theCUBE. We are live in San Francisco at DockerCon 2018. I am Lisa Martin with my co-host for the day, John Troyer. John, it is not only a stunning day in San Francisco, beautiful blue skies, this is a packed event. Their fifth DockerCon event and they've got between 5,000 and 6,000 people. We just came from the general session keynote, and it was standing room only as far as the eyes could see. >> Yeah, looks like a good crowd here, a lot of energy. Docker keynotes, always super interesting, they always do a lot of demos, they bring up a lot of employees. It's not just like a parade of middle-aged executives, always is super dynamic, a lot of demos. Really liked the keynote this morning. >> I did too. The energy you mentioned was great. It kicked off with... who's the name of that gentleman that is one of the rally guys for... >> Franco Finn. >> Franco Finn, who has worked for the Warriors, the 2018 Golden State Warriors, NBA Champs. So that was a great way to kick it off, but also Steve Singh had great energy, their CEO, we're gonna have him on shortly today. Scott Johnston, and as you talked about their employees and also customers. They have some really great numbers. They've got, I think, about 120 sessions this year at DockerCon. Nine big enterprise customers talking about how they are approaching containerization with DockerCon. One of them was McKesson, which is a 183 year old company with a lot of staff that gave a really compelling keynote or a, yeah, a keynote this morning about how they are moving and modernizing their data center with Docker. >> A really nice story, a really an emphasis on trust, an emphasis on developer usability, and I liked one of the points was, once we got the developers using it it became easier, and I think using the whole platform. Lisa, I think they hit a lot of familiar things for Docker: so, developer experience, really big for Docker. That's they way they started, that's what they're still counting on. When Steve Singh got up, he talked about community, their very first thing. Over half the people here, first time at DockerCon and over half of the folks are just using containers in the late last year. That means this whole journey is just starting. There's a lot of white space in the container world. So developer experience, a big announcement, preview announcement for Docker Desktop, being able to create apps off of templates and things like that but very developer-focused shows as opposed to some of the more IT-focused. There's a broad mix here but definitely a lot of developers here at the show. >> A lot of developers, as you said, but also, you're right, it is a mix. It's IT professionals, it's enterprise architects, and it's executives and that's one of the... one of the targeted audiences that, I think, both Steve Singh and Scott Johnston talked about, so it'll be great to explore. As the CEO and the Chief Product Officer respectfully, what are they hearing from enterprise customers who have a lot of challenges with legacy applications that are very difficult to manage and I also read some stats, they had some stats in the press release this morning, but 80% of enterprise IT budgets are spent keeping the lights on for enterprise apps which leaves about 20% for innovation and of course, as we know, organizations that can aggressively innovate are the ones that win. So I'm not only looking forward to hearing with Docker Desktop, what they're doing to make it easy, easier, for developers to get in there and play around on both on Mac and Windows but also the executive conversation. What are they hearing from the executives and where is containerization, you know, from the c-sweep to the board room. >> Yeah, modernizing enterprise apps also has been a Docker theme for the last few years. Microsoft, the big guest up on stage, they've been a multi-year partnership with Microsoft and Docker, putting Docker with Windows together. The big announcement today, pre-technology preview of Kubernetes and Windows Server and the big demo was, they took a very old .net application and, you know, put it up on Kubernetes on Windows with just a couple of clicks. So again, I think that message to the executives is, "You're very safe in Docker's hands "We've got the developer experience covered, "we've got the partnerships." And then going big on Windows, I think choice was another theme that I heard ... >> Yes, it was. Steve talked a lot about choice. >> Um, to the execs here as well, both GUI and CLI, right? A lot of the cloud is very CLI-focused, very Linux-focused. Docker says "We're in on Windows, we support Windows "just as well as Linux so don't hate on the GUI. "You can use a GUI or you can use a CLI." No religion actually too, in terms of Linux versus Windows but Kubernetes, I thought, was a very big. Got mentioned a lot in the keynote this morning, Lisa. >> It did and you talked about choice. One of the things that Steve Singh mentioned from an executive's perspective is, three things that Docker is aiming to deliver. That sounds to me, as a marketer, like competitive differentiation. Talked about choice so that organizations can run apps wherever it makes sense for them, managing applications on any infrastructure, and, as you said earlier, about a few clips, managing their container infrastructures across multiple clouds in just a few clicks. They also talked about being, they also talked a number of times, not just in the press release but also this morning in the keynote, about no vendor lock-in. John, we hear that a lot, it sounds like a marketing term. What are you expecting to hear? What does that mean for Docker? >> I'm not so sure that lock-in is always important for every enterprise, in that any choice you make, it has a certain element of lock-in but it's an active argument or debate online that I see a lot. "Are you locked in when you go to a certain cloud? "Are you locked in when you choose a certain provider," whether it's open-sourced or not. Certainly a lot of Docker is open source. A lot of your choices are protected and they are really trying to say "We're going to be a platform that's going to "service a lot of different abilities to deploy." The big announcement that finished off the keynote was Docker Enterprise Edition can now manage Kubernetes. Not only Kubernetes in the cloud. Kubernetes on Prim, Kubernetes in the cloud managed by Docker, but can actually work with the native Kubernetes cluster managers of the clouds, of the three major clouds: Google GKE, Azure AKS, and AWS EKS. I think I got all those names right. But that's big because a lot of folks say "run anywhere" but they mean "run within our environment anywhere" and what Docker has done in Tech Preview is to connect its platform with the native platforms, orchestration platforms, of the three different clouds so that you can run on Prim, manage via Docker, or you can connect into the cloud's own cluster orchestration. And if they can deliver on that, the devil is in the details, but if they can deliver on that, that's actually a very nice feature to avoid that sort of lock-in. >> And that also goes to, John, one of the major things which is agility and one of the things that they've talked about is, containers today are portable but one of the challenges is that management of containers has not been portable. I think they said that 85% approximately of enterprise I.T. organizations that they has surveyed are running a multi-cloud strategy so they've gotta be able to really deliver this single pane of glass management so they talked about federated application or federated management of containerized applications. I think that's kind of what you're referring to in terms of getting away from the silos and enabling organizations to have that portability and especially as multi-national organizations need to have different access, different security, policies may be maintained across multiple locations. >> Indeed, right. These are global organizations that are betting on container technology. They do need access to be running apps, either parts of apps or services on different clouds. You might be running a Google cloud in Europe, you might be running an AWS here or vice versa. You might have some on-Prim stuff. We've seen a lot of that. I think another theme that we'll hit on, Lisa, along with that multi-cloud portfolio aspect, is the time to value. It's been a theme of this conference season. This last month or two, you and I have both been at a lot of different conference centers and I think time to value, being able to spin up apps within weeks or months that actually work and have value versus the old way, which was years and I think the theme for 2018 is that it's real. People are actually doing it and we'll talk to a couple of customers, I hope, today. >> And that's essential because enterprises, while there's still trepidation with moving into the container journey, they don't really have a choice to be able to aggressively innovate to be able to be leaders and compete with these cloud-native organizations. They don't have the luxury of time to rip and replace old enterprise applications and put them on a container or a micro-service's space archicture, they've got to be able to leverage something like containers to maximize time to value to deliver differentiating services. >> Absolutely. I'm very interested in being here today and we'll see what the day brings us. >> I think we're gonna have a lot of fun today, John. I think they kicked off things with great energy. I loved how, you know, they always do demos, right, on main stage during general sessions, and we were at SAP last week and of course, one of the demos didn't work. That's just the nature of trying to do things live. I liked how they were very cheeky with the praying to the demo Gods with the fortune cookies. I thought that was really good but the demos were simple. They were very clearly presented and I'm excited with you to dig in to what are they doing. Also what is setting them apart and how are they enabling enterprise organizations like MetLife, like McKesson, PayPal, Splunk to be able to transform to compete. >> Absolutely. One last thing about the conference, Lisa, is I do want to call out. It's a very humane conference. Not only do they have kind of a cheeky sense of humor here at Docker, but there's child care onsite, and there's spouse-tivities, there are activities for if you bring your spouse or family to the conference. They're trying to do a lot of things to make the conference experience good and successful and friendly and humane for people here at the show which I really appreciate. >> I like that, humane conference. You're right. We don't always see that. Well, John and I are going to be here all day talking with Docker executives, customers, partners and we're excited to have you with us. Lisa Martin for John Troyer. You're watching theCUBE at DockerCon 2018. We'll be right back with our first guest. (techno music)

>> (Narrator) Live, from Boston, Massachusetts it's theCUBE, covering Red Hat Summit 2017, brought to you by Red Hat. >> Welcome back to Boston everybody, this is Red Hat Summit, and this is theCUBE, the leader in live tech coverage. I'm Dave Vellante, with my cohost Stu Miniman, and John Hodgson is here, he's the Senior Director of IT Program Management at Optum technology. John good to see ya. >> Good, it's good to be here. >> Fresh off the keynote, we were just talking about the large audience, a very large audience here. And Optum, you described a little bit at the keynote what Optum is with healthcare, sort of technology arm. Which is not super common but not uncommon in your world. But describe Optum and where it fits. >> So in the grand scheme of things within UnitedHealth Group you know, we have the parent company, of course, you know the Health Group, our insurance side, that does insurance, whether it's public sector for large corporations, as well as community and state government type work as UnitedHealthcare. They do all that, and then Optum is our technology side. We do really all the development, both for supporting UHC as our main customer, you know, they're truly our focus, but we also do a lot of commercial development as well for UnitedHealthcare's competitors. So big, big group, as I mentioned in the keynote. Over 10,000 developers in the company, lots of spend, I think in the last year our, just internal IT budget was like $1.2 billion in just IT development capital. So it's huge. >> Dave: Mind-boggling. >> John, you've got that internal Optum Cloud, Can you give us just kind of the breadth and depth, you said 1.2 billion, there. What is that make up, what geographies does that span, how many people support that kind of environment? >> As far as numbers of people supporting it, I think we've got a few hundred in our Enterprise Technology Services Group, that supports Optum Cloud. We started Optum Cloud probably a half a dozen years ago, and it's gone through its different iterations. And part of my job right now is all about Enterprise Cloud adoption and migration. So, we started with our own environment, we call it UCI, United, it was supposed to be Converged Infrastructure, but I call it our Cloud Infrastructure, that's really what it is. And we've continued to enhance that. So over the last few years, I think about 3.5, four years ago, we brought in Red Hat and OpenShift. We're on our third iteration of OpenShift. Very, very stable platform for us now. But we also have Azure Stack in there as well, I think even as Paul and those guys mentioned in the keynote there's a lot of different things that you can kind of pull from each one of the technology providers to help support what we're doing, kind of take the best of breed from each one of them, and use them in each solution. >> Organizations are always complaining that they spend all this money on keeping the lights on, and they're trying to make the shift, and obviously Cloud helps them do that, and things like OpenShift, etc. What's that like in your world? How much of your effort is spent on maintenance and keeping the lights on? Sounds like you got a lot of cool, new development activity. Can you describe that dynamic for us? >> Yeah, we've got a really good support staff. Our group, SSMO, when we build an application, they kind of take it back over and run everything. We've got a fabulous support team in the background. And to that end, and it's on both sides, right? We have our UnitedHealthcare applications that we build that have kind of their own feature set, because of what it's doing internally for us, versus what we do on the OptumInsight side, where it's more commercial in nature. So they have some different needs. Some of the things that we're developing, even for Cloud Scaffolding that I mentioned in the keynote. We're kind of working on both sides of the fence, there, to hit the different technologies that each one of them really need to be successful, but doing it in a way that it doesn't if you're on one side of the fence or the other, it's a capability that everybody will be able to use. So if there's a pattern on one side that you want to be able to use for a UHC application, by all means, go ahead and grab it, take it. And a lot of what we're doing now is even kind of crowdsourcing things, and utilizing the really super intelligent people that we have, over 10,000 developers. And so many of them, we've got a lot of legacy stuff. So there's some old-school guys that are still doing their thing, but we've got a lot of new people. And they want to get their hands on the new fresh stuff, and experience that. So there's really a good vibe going on right now, with how things are changing, all the TDP folks that we're bringing in. A lot of fresh college grads and things. And they love to see the new technologies, whether it's OpenShift or whatever. Lot are really getting into DevOps, trying to make that change in a big organization is difficult, we got a little ways to go with that. But that's kind of next up. >> You're an interesting case study, because you've got a lot of the old and a lot of cool innovation going on. And is it, how do you decide when to go, because DevOps is not always the answer. Sometimes waterfall is okay, you know. So, how do you make that determination, and where do you see that going? >> That's a great question, that's actually part of what my team does. So my specific team is all about Cloud adoption and migration, so our charter is really to work across the enterprise. So whether it's OptumInsight, OptumRx, UnitedHealthcare, we are working with them to evaluate their portfolios of applications to figure out legacy applications that we have that are still strategic. They've got life in them, they've got business benefit. And we want to be able to take advantage of that, but at the same time there's some of these monolithic applications that we look at how can we take that application, decompose it down into microservices and APIs, things like that, to make it available to other applications that maybe are just greenfield, are coming out now, but still need that same technology and information. So that's really what my team is doing right now. So we sit down with those teams and go through an analysis, help them develop a road map. And sometimes that road map is two or three years long. Getting to fully cloud from where they're at right now in some of these legacy applications is a journey. And it costs money, right? There's a lot of budget concerns and things like that that go with it. So that's part of what we helped develop is a business case for each one of those applications that we can help support them going back, and getting the necessary capital to do the cloud migrations and the improvements, and really the modernization of their applications. We started the program a couple of years ago and found that if you want to hang your hat on just going from old physical infrastructure, some of the original VMs that we had. And just moving over to cloud infrastructure, and whether that's UCI, OpenShift, Azure, whatever. If you're going to do your business case on that, you're going to be writing a lot of business cases before you get one approved. It's all about modernizing the applications. So if you fold in the move to new infrastructure, cloud infrastructure, along with the ability to modernize that application, get them doing agile development, getting down the DevOps path, looking at automated testing, automated deployment, zero downtime deployments. All of those things, when you add them up together and say, okay, here's what your real benefit looks like. And you're able to present that back to the business, and show them speed to market, speed to value is a new metric that we have. Getting things out there quickly. We used to do quarterly releases, or even biannual releases. And now we're at monthly, weekly, some of our applications that are more relatively new, Health4Me, if you go to the App Store, that's kind of our big app on the App Store. There's updates on a very frequent basis. >> So that's the operating model, really, that you're talking about, essentially, driving business value. We had a practitioner on a couple weeks ago, and he said, "If you just lift and shift to the cloud, "and you don't change your operating model, "you won't get a dime." >> Stu: You're missing the boat. >> Maybe there's something, some value there, a little faster, but you're talking about serious dollars, if you can change the operating model. And that's what you've found? >> Yeah absolutely, and that's the, it's a shift, and you've got to be able to prove it to the business that's there's benefit there, and sometimes that's hard. Some of these cloud concepts and things are a little nebulous, so-- >> It's hard 'cause it's soft. >> It's soft, right, yeah, I mean, you're putting the business case together, the hard stuff is easy to document, but when you're talking about the soft benefits, and you're trying to explain to them the value that they're going to get out of their team switching from a waterfall development over to agile and DevOps, and automated testing and things like that, where I can say, "Hey listen, "you know your team over here that has been, "you know we took them out of the pocket, "from actually doing their day jobs for the last week, "because they needed to test this new version? "If I can take that out of the mix, "and they don't have to do that anymore, "and they can keep on doing what they're doing "and not get a week behind, what value is that for you?" And all of a sudden they're like, "Oh really? "We don't have to do that anymore?" I'm like, "No, we can create test scripts and stuff. "We can automate your deployment. "We can make it zero downtime. "We have," there's an application that we're working on now that has 19,000 individual desktop deployments. And we're going to automate that, turn it into a software as a service application, host it on OpenShift, and completely knock that out. I mean deployments out to 19,000 people take weeks to get done. We only do a couple thousand a week, because there's obviously going to be issues. So now you've got helpdesk tickets, you've got desktop technicians that are going round, trying to fix things, or dialing in, remoting into somebody's desktop to try to help figure that all out. We can do the whole deployment in a day, and everybody logs in the next day, and they've got the new version. That kind of value in creating real cloud-based applications is what's driving the benefit for us. And they're finally starting to really see that. And as we're doing it, more application product owners are going, "Okay, now we're getting some traction. "We heard what you did over here. "Come talk to us, and let's talk "about building a road map and figuring out what we can do." >> John, one of the questions I got from the community after watching you keynote was, they want to understand how you handle security and enforce compliance in this new cloud development model. (laughs) >> That's beyond me, all I can tell you is that we have one of the most secure clouds out there. Our private cloud is beyond secure. We're working right now to try to get the public hybrid cloud space with both AWS and Azure, and working through contracts and stuff right now. But one of the sticking points is our security has to be absolutely top notch, if we're going to do anything that has HIPAA-related data, PHI, PII, PCI, any of that, it has got to be lock-solid secure. And we have a tremendous team led by Robert Booker, he's absolutely fabulous, I mean we're, our whole goal, security-wise, is don't be the next guy on the front page of the Wall Street Journal. >> You mentioned public cloud, how do you make your decisions as to what application, what data can live in which public cloud? You said you've got Azure Stack, and you've got OpenShift. How do you make those platform decisions? >> Well right now, both OpenShift and Azure Stack are on our internal private cloud. So we're in the process of kind of making that shift to move over towards public and hybrid cloud. So I'm working with folks on our team to help develop some of those processes and determine what's actually going to be allowed. And I think in a lot of cases the PHI and protected data is going to stay internal. And we'll be able to take advantage of hosting certain parts of an application on public cloud while keeping other parts of the data really secure and protected behind our private cloud. >> Red Hat made an announcement this morning with AWS, with OpenShift. >> Sounds like that might be of interest to you, would that impact what your doing? >> Absolutely, yeah, in fact I was talking with Jim and Paul back behind the screen this morning. And we were talking about that and I was like wow that is a game changer. With what we're thinking about doing in the hybrid cloud space, having all of the AWS APIs and services and stuff available to us. Part of the objection that I get from some folks now is knowing that we have this move toward public and hybrid cloud internally, and the limitations of our cloud. We're never going to be, our private Optum Cloud is never going to be AWS or Azure, it's just not. I mean they've spent billions of dollars getting those services and stuff in place. Why would we even bother to compete with that? So we do what we do well, and a big portion of that is security. But we want to be able to expand, and take advantage of the things that they have. So that's, this whole announcement of being able to take advantage of those services natively within OpenShift? If we're able to expose that, even internally, on our own private cloud? That's going to take away a lot of the objections, I think, from even our own folks, who are waiting to do the public hybrid cloud piece. >> When the Affordable Care Act hit, did your volume spike? And as things, there's a tug of war now in Washington, it could change again, does that drive changes in your application development in terms of the volume of requests that come in, and compliance things that you have to adhere to? And if so, does having a platform that's more agile, how does that affect your ability to respond? >> Yeah it does, I mean when we first got into the ACA, there was a number of markets that we got into. And there was definitely a ramp-up in development, new things that we had to do on the exchanges. Stuff like that. I mean we even had groups from Optum that were participating directly with the federal government, because some of their exchanges were having issues, and they needed some help from us. So we had a whole team that was kind of embedded with the federal government, helping them out, just based on our experience doing it. And, yeah, having the flexibility, in our own cloud, to be able to able to spin up environments quickly, shut them down, all that, really it's invaluable. >> So the technology business moves so fast, I mean it wasn't that long ago when people saw the first virtualized servers and went Oh my gosh, this is going to change the world. And now it's like, wow we got to do better, and containers. And so you've gone for this amazing transformation, I mean, I think it was 17 developers to 1,600, which is just mind-boggling. Okay, and that's, and you've got technologies that have helped you do that, but five years down the road there's going to be a what's next. So what is next for you? As you break out your telescope, what do you see? >> God, I don't know, I mean I never would have predicted containers. >> Even though they've been around forever, we-- >> Yeah I mean when we first went to VMs, you know back in the day I was a guy in the server room, racking and stacking servers and running cables, and doing all that, so I've seen it go from one extreme to the next. And going from VMs was a huge switch. Building our own private cloud was amazing to be a part of, and now getting into the container side of things, hybrid cloud, I think for us, really, the next big step for us is the hybrid cloud. So we're in the process of getting that, I assume by the end of this year, early next, we'll be a few steps into the hybrid cloud space. And then beyond that, gosh I don't know. >> So that's really extending the operating model into that hybrid cloud notion, bringing that security that you talked about, and that's, you got a lot of work to do. >> John: That's a big task in itself. >> Let's not go too far beyond that, John. Alright well listen, thanks for coming on theCUBE, it was really a pleasure having you. >> Yeah, thanks for having me guys, appreciate it. >> You're welcome, alright keep it right there everybody, Stu and I will be back with our next guest. This is theCUBE, we're live from Red Hat Summit in Boston. We'll be right back. (electronic music)