>>Good morning fellow nerds and welcome back to AWS Reinvent. We are live from the show floor here in Las Vegas, Nevada. My name is Savannah Peterson, joined with my fabulous co-host John Furrier. Day two keynotes are rolling. >>Yeah. What do you thinking this? This is the day where everything comes, so the core gets popped off the bottle, all the announcements start flowing out tomorrow. You hear machine learning from swee lot more in depth around AI probably. And then developers with Verner Vos, the CTO who wrote the seminal paper in in early two thousands around web service that becames. So again, just another great year of next level cloud. Big discussion of data in the keynote bulk of the time was talking about data and business intelligence, business transformation easier. Is that what people want? They want the easy button and we're gonna talk a lot about that in this segment. I'm really looking forward to this interview. >>Easy button. We all want the >>Easy, we want the easy button. >>I love that you brought up champagne. It really feels like a champagne moment for the AWS community as a whole. Being here on the floor feels a bit like the before times. I don't want to jinx it. Our next guest, Scott Castle, from Si Sense. Thank you so much for joining us. How are you feeling? How's the show for you going so far? Oh, >>This is exciting. It's really great to see the changes that are coming in aws. It's great to see the, the excitement and the activity around how we can do so much more with data, with compute, with visualization, with reporting. It's fun. >>It is very fun. I just got a note. I think you have the coolest last name of anyone we've had on the show so far, castle. Oh, thank you. I'm here for it. I'm sure no one's ever said that before, but I'm so just in case our audience isn't familiar, tell us about >>Soy Sense is an embedded analytics platform. So we're used to take the queries and the analysis that you can power off of Aurora and Redshift and everything else and bring it to the end user in the applications they already know how to use. So it's all about embedding insights into tools. >>Embedded has been a, a real theme. Nobody wants to, it's I, I keep using the analogy of multiple tabs. Nobody wants to have to leave where they are. They want it all to come in there. Yep. Now this space is older than I think everyone at this table bis been around since 1958. Yep. How do you see Siente playing a role in the evolution there of we're in a different generation of analytics? >>Yeah, I mean, BI started, as you said, 58 with Peter Lu's paper that he wrote for IBM kind of get became popular in the late eighties and early nineties. And that was Gen one bi, that was Cognos and Business Objects and Lotus 1 23 think like green and black screen days. And the way things worked back then is if you ran a business and you wanted to get insights about that business, you went to it with a big check in your hand and said, Hey, can I have a report? And they'd come back and here's a report. And it wasn't quite right. You'd go back and cycle, cycle, cycle and eventually you'd get something. And it wasn't great. It wasn't all that accurate, but it's what we had. And then that whole thing changed in about two, 2004 when self-service BI became a thing. And the whole idea was instead of going to it with a big check in your hand, how about you make your own charts? >>And that was totally transformative. Everybody started doing this and it was great. And it was all built on semantic modeling and having very fast databases and data warehouses. Here's the problem, the tools to get to those insights needed to serve both business users like you and me and also power users who could do a lot more complex analysis and transformation. And as the tools got more complicated, the barrier to entry for everyday users got higher and higher and higher to the point where now you look, look at Gartner and Forester and IDC this year. They're all reporting in the same statistic. Between 10 and 20% of knowledge workers have learned business intelligence and everybody else is just waiting in line for a data analyst or a BI analyst to get a report for them. And that's why the focus on embedded is suddenly showing up so strong because little startups have been putting analytics into their products. People are seeing, oh my, this doesn't have to be hard. It can be easy, it can be intuitive, it can be native. Well why don't I have that for my whole business? So suddenly there's a lot of focus on how do we embed analytics seamlessly? How do we embed the investments people make in machine learning in data science? How do we bring those back to the users who can actually operationalize that? Yeah. And that's what Tysons does. Yeah. >>Yeah. It's interesting. Savannah, you know, data processing used to be what the IT department used to be called back in the day data processing. Now data processing is what everyone wants to do. There's a ton of data we got, we saw the keynote this morning at Adam Lesky. There was almost a standing of vision, big applause for his announcement around ML powered forecasting with Quick Site Cube. My point is people want automation. They want to have this embedded semantic layer in where they are not having all the process of ETL or all the muck that goes on with aligning the data. All this like a lot of stuff that goes on. How do you make it easier? >>Well, to be honest, I, I would argue that they don't want that. I think they, they think they want that, cuz that feels easier. But what users actually want is they want the insight, right? When they are about to make a decision. If you have a, you have an ML powered forecast, Andy Sense has had that built in for years, now you have an ML powered forecast. You don't need it two weeks before or a week after in a report somewhere. You need it when you're about to decide do I hire more salespeople or do I put a hundred grand into a marketing program? It's putting that insight at the point of decision that's important. And you don't wanna be waiting to dig through a lot of infrastructure to find it. You just want it when you need it. What's >>The alternative from a time standpoint? So real time insight, which is what you're saying. Yep. What's the alternative? If they don't have that, what's >>The alternative? Is what we are currently seeing in the market. You hire a bunch of BI analysts and data analysts to do the work for you and you hire enough that your business users can ask questions and get answers in a timely fashion. And by the way, if you're paying attention, there's not enough data analysts in the whole world to do that. Good luck. I am >>Time to get it. I really empathize with when I, I used to work for a 3D printing startup and I can, I have just, I mean, I would call it PTSD flashbacks of standing behind our BI guy with my list of queries and things that I wanted to learn more about our e-commerce platform in our, in our marketplace and community. And it would take weeks and I mean this was only in 2012. We're not talking 1958 here. We're talking, we're talking, well, a decade in, in startup years is, is a hundred years in the rest of the world life. But I think it's really interesting. So talk to us a little bit about infused and composable analytics. Sure. And how does this relate to embedded? Yeah. >>So embedded analytics for a long time was I want to take a dashboard I built in a BI environment. I wanna lift it and shift it into some other application so it's close to the user and that is the right direction to go. But going back to that statistic about how, hey, 10 to 20% of users know how to do something with that dashboard. Well how do you reach the rest of users? Yeah. When you think about breaking that up and making it more personalized so that instead of getting a dashboard embedded in a tool, you get individual insights, you get data visualizations, you get controls, maybe it's not even actually a visualization at all. Maybe it's just a query result that influences the ordering of a list. So like if you're a csm, you have a list of accounts in your book of business, you wanna rank those by who's priorities the most likely to churn. >>Yeah. You get that. How do you get that most likely to churn? You get it from your BI system. So how, but then the question is, how do I insert that back into the application that CSM is using? So that's what we talk about when we talk about Infusion. And SI started the infusion term about two years ago and now it's being used everywhere. We see it in marketing from Click and Tableau and from Looker just recently did a whole launch on infusion. The idea is you break this up into very small digestible pieces. You put those pieces into user experiences where they're relevant and when you need them. And to do that, you need a set of APIs, SDKs, to program it. But you also need a lot of very solid building blocks so that you're not building this from scratch, you're, you're assembling it from big pieces. >>And so what we do aty sense is we've got machine learning built in. We have an LQ built in. We have a whole bunch of AI powered features, including a knowledge graph that helps users find what else they need to know. And we, we provide those to our customers as building blocks so that they can put those into their own products, make them look and feel native and get that experience. In fact, one of the things that was most interesting this last couple of couple of quarters is that we built a technology demo. We integrated SI sensee with Office 365 with Google apps for business with Slack and MS teams. We literally just threw an Nlq box into Excel and now users can go in and say, Hey, which of my sales people in the northwest region are on track to meet their quota? And they just get the table back in Excel. They can build charts of it and PowerPoint. And then when they go to their q do their QBR next week or week after that, they just hit refresh to get live data. It makes it so much more digestible. And that's the whole point of infusion. It's bigger than just, yeah. The iframe based embedding or the JavaScript embedding we used to talk about four or five years >>Ago. APIs are very key. You brought that up. That's gonna be more of the integration piece. How does embedable and composable work as more people start getting on board? It's kind of like a Yeah. A flywheel. Yes. What, how do you guys see that progression? Cause everyone's copying you. We see that, but this is a, this means it's standard. People want this. Yeah. What's next? What's the, what's that next flywheel benefit that you guys coming out with >>Composability, fundamentally, if you read the Gartner analysis, right, they, when they talk about composable, they're talking about building pre-built analytics pieces in different business units for, for different purposes. And being able to plug those together. Think of like containers and services that can, that can talk to each other. You have a composition platform that can pull it into a presentation layer. Well, the presentation layer is where I focus. And so the, so for us, composable means I'm gonna have formulas and queries and widgets and charts and everything else that my, that my end users are gonna wanna say almost minority report style. If I'm not dating myself with that, I can put this card here, I can put that chart here. I can set these filters here and I get my own personalized view. But based on all the investments my organization's made in data and governance and quality so that all that infrastructure is supporting me without me worrying much about it. >>Well that's productivity on the user side. Talk about the software angle development. Yeah. Is your low code, no code? Is there coding involved? APIs are certainly the connective tissue. What's the impact to Yeah, the >>Developer. Oh. So if you were working on a traditional legacy BI platform, it's virtually impossible because this is an architectural thing that you have to be able to do. Every single tool that can make a chart has an API to embed that chart somewhere. But that's not the point. You need the life cycle automation to create models, to modify models, to create new dashboards and charts and queries on the fly. And be able to manage the whole life cycle of that. So that in your composable application, when you say, well I want chart and I want it to go here and I want it to do this and I want it to be filtered this way you can interact with the underlying platform. And most importantly, when you want to use big pieces like, Hey, I wanna forecast revenue for the next six months. You don't want it popping down into Python and writing that yourself. >>You wanna be able to say, okay, here's my forecasting algorithm. Here are the inputs, here's the dimensions, and then go and just put it somewhere for me. And so that's what you get withy sense. And there aren't any other analytics platforms that were built to do that. We were built that way because of our architecture. We're an API first product. But more importantly, most of the legacy BI tools are legacy. They're coming from that desktop single user, self-service, BI environment. And it's a small use case for them to go embedding. And so composable is kind of out of reach without a complete rebuild. Right? But with SI senses, because our bread and butter has always been embedding, it's all architected to be API first. It's integrated for software developers with gi, but it also has all those low code and no code capabilities for business users to do the minority report style thing. And it's assemble endless components into a workable digital workspace application. >>Talk about the strategy with aws. You're here at the ecosystem, you're in the ecosystem, you're leading product and they have a strategy. We know their strategy, they have some stuff, but then the ecosystem goes faster and ends up making a better product in most of the cases. If you compare, I know they'll take me to school on that, but I, that's pretty much what we report on. Mongo's doing a great job. They have databases. So you kind of see this balance. How are you guys playing in the ecosystem? What's the, what's the feedback? What's it like? What's going on? >>AWS is actually really our best partner. And the reason why is because AWS has been clear for many, many years. They build componentry, they build services, they build infrastructure, they build Redshift, they build all these different things, but they need, they need vendors to pull it all together into something usable. And fundamentally, that's what Cient does. I mean, we didn't invent sequel, right? We didn't invent jackal or dle. These are not, these are underlying analytics technologies, but we're taking the bricks out of the briefcase. We're assembling it into something that users can actually deploy for their use cases. And so for us, AWS is perfect because they focus on the hard bits. The the underlying technologies we assemble those make them usable for customers. And we get the distribution. And of course AWS loves that. Cause it drives more compute and it drives more, more consumption. >>How much do they pay you to say that >>Keynote, >>That was a wonderful pitch. That's >>Absolutely, we always say, hey, they got a lot of, they got a lot of great goodness in the cloud, but they're not always the best at the solutions and that they're trying to bring out, and you guys are making these solutions for customers. Yeah. That resonates with what they got with Amazon. For >>Example, we, last year we did a, a technology demo with Comprehend where we put comprehend inside of a semantic model and we would compile it and then send it back to Redshift. And it takes comprehend, which is a very cool service, but you kind of gotta be a coder to use it. >>I've been hear a lot of hype about the semantic layer. What is, what is going on with that >>Semantec layer is what connects the actual data, the tables in your database with how they're connected and what they mean so that a user like you or me who's saying I wanna bar chart with revenue over time can just work with revenue and time. And the semantic layer translates between what we did and what the database knows >>About. So it speaks English and then they converts it to data language. It's >>Exactly >>Right. >>Yeah. It's facilitating the exchange of information. And, and I love this. So I like that you actually talked about it in the beginning, the knowledge map and helping people figure out what they might not know. Yeah. I, I am not a bi analyst by trade and I, I don't always know what's possible to know. Yeah. And I think it's really great that you're doing that education piece. I'm sure, especially working with AWS companies, depending on their scale, that's gotta be a big part of it. How much is the community play a role in your product development? >>It's huge because I'll tell you, one of the challenges in embedding is someone who sees an amazing experience in outreach or in seismic. And to say, I want that. And I want it to be exactly the way my product is built, but I don't wanna learn a lot. And so you, what you want do is you want to have a community of people who have already built things who can help lead the way. And our community, we launched a new version of the SES community in early 2022 and we've seen a 450% growth in the c in that community. And we've gone from an average of one response, >>450%. I just wanna put a little exclamation point on that. Yeah, yeah. That's awesome. We, >>We've tripled our organic activity. So now if you post this Tysons community, it used to be, you'd get one response maybe from us, maybe from from a customer. Now it's up to three. And it's continuing to trend up. So we're, it's >>Amazing how much people are willing to help each other. If you just get in the platform, >>Do it. It's great. I mean, business is so >>Competitive. I think it's time for the, it's time. I think it's time. Instagram challenge. The reels on John. So we have a new thing. We're gonna run by you. Okay. We just call it the bumper sticker for reinvent. Instead of calling it the Instagram reels. If we're gonna do an Instagram reel for 30 seconds, what would be your take on what's going on this year at Reinvent? What you guys are doing? What's the most important story that you would share with folks on Instagram? >>You know, I think it's really what, what's been interesting to me is the, the story with Redshift composable, sorry. No, composable, Redshift Serverless. Yeah. One of the things I've been >>Seeing, we know you're thinking about composable a lot. Yes. Right? It's, it's just, it's in there, it's in your mouth. Yeah. >>So the fact that Redshift Serverless is now kind becoming the defacto standard, it changes something for, for my customers. Cuz one of the challenges with Redshift that I've seen in, in production is if as people use it more, you gotta get more boxes. You have to manage that. The fact that serverless is now available, it's, it's the default means it now people are just seeing Redshift as a very fast, very responsive repository. And that plays right into the story I'm telling cuz I'm telling them it's not that hard to put some analysis on top of things. So for me it's, it's a, maybe it's a narrow Instagram reel, but it's an >>Important one. Yeah. And that makes it better for you because you get to embed that. Yeah. And you get access to better data. Faster data. Yeah. Higher quality, relevant, updated. >>Yep. Awesome. As it goes into that 80% of knowledge workers, they have a consumer great expectation of experience. They're expecting that five ms response time. They're not waiting 2, 3, 4, 5, 10 seconds. They're not trained on theola expectations. And so it's, it matters a lot. >>Final question for you. Five years out from now, if things progress the way they're going with more innovation around data, this front end being very usable, semantic layer kicks in, you got the Lambda and you got serverless kind of coming in, helping out along the way. What's the experience gonna look like for a user? What's it in your mind's eye? What's that user look like? What's their experience? >>I, I think it shifts almost every role in a business towards being a quantitative one. Talking about, Hey, this is what I saw. This is my hypothesis and this is what came out of it. So here's what we should do next. I, I'm really excited to see that sort of scientific method move into more functions in the business. Cuz for decades it's been the domain of a few people like me doing strategy, but now I'm seeing it in CSMs, in support people and sales engineers and line engineers. That's gonna be a big shift. Awesome. >>Thank >>You Scott. Thank you so much. This has been a fantastic session. We wish you the best at si sense. John, always pleasure to share the, the stage with you. Thank you to everybody who's attuning in, tell us your thoughts. We're always eager to hear what, what features have got you most excited. And as you know, we will be live here from Las Vegas at reinvent from the show floor 10 to six all week except for Friday. We'll give you Friday off with John Furrier. My name's Savannah Peterson. We're the cube, the the, the leader in high tech coverage.

(upbeat music) >> Welcome back to theCUBE. We're covering Red Hat Summit 2022. We're going to wrap up now, Dave Vellante, Paul Gillin. We want to introduce you to Stephanie Chan, who's our new correspondent. Stephanie, one of your first events, your very first CUBE event. So welcome. >> Thank you. >> Up from NYC. Smaller event, but intimate. You got a chance to meet some folks last night at some of the after parties. What are your overall impressions? What'd you learn this week? >> So this has been my first in-person event in over two years. And even though, like you said, is on the smaller scale, roughly around 1000 attendees, versus it's usual eight to 10,000 attendees. There's so much energy, and excitement, and openness in these events and sessions. Even before and after the sessions people have been mingling and socializing and hanging out. So, I think a lot of people appreciate these in-person events and are really excited to be here. >> Cool. So, you also sat in some of the keynotes, right? Pretty technical, right? Which is kind of new to sort of your genre, right? I mean, I know you got a financial background but, so what'd you think of the keynotes? What'd you think of the format, the theater in the round? Any impressions of that? >> So, I think there's three things that are really consistent in these Red Hat Summit keynotes. There's always a history lesson. There's always, you know, emphasis in the culture of openness. And, there's also inspirational stories about how people utilize open source. And I found a lot of those examples really compelling and interesting. For instance, people use open source in (indistinct), and even in space. So I really enjoyed, you know, learning about all these different people and stories. What about you guys? What do you think were the big takeaways and the best stories that came out of the keynotes? >> Paul, want to start? >> Clearly the Red Hat Enterprise Linux 9 is a major rollout. They do that only about every three years. So that's a big deal to this audience. I think what they did in the area of security, with rolling out sigstore, which is a major new, I think an important new project that was sort of incubated at Red Hat. And they're trying to put in to create an open source ecosystem around that now. And the alliances. I'm usually not that much on partnerships, but the Accenture and the Microsoft partnerships do seem to be significant to the company. And, finally, the GM partnership which I think was maybe kind of the bombshell that they sort of rushed in at the last minute. But I think has the biggest potential impact on Red Hat and its partner ecosystem that is really going to anchor their edge architecture going forward. So I didn't see it so much on the product front, but the sense of Red Hat spreading its wings, and partnering with more companies, and seeing its itself as really the center of an ecosystem indicates that they are, you know, they're in a very solid position in their business. >> Yeah, and also like the pandemic has really forced us into this new normal, right? So customer demand is changing. There has been the shift to remote. There's always going to be a new normal according to Paul, and open source carries us through that. So how do you guys think Red Hat has helped its portfolio through this new normal and the shift? >> I mean, when you think of Red Hat, you think of Linux. I mean, that's where it all started. You think OpenShift which is the application development platforms. Linux is the OS. OpenShift is the application development platform for Kubernetes. And then of course, Ansible is the automation framework. And I agree with you, ecosystem is really the other piece of this. So, I mean, I think you take those three pieces and extend that into the open source community. There's a lot of innovation that's going around each of those, but ecosystems are the key. We heard from Stefanie Chiras, that fundamental, I mean, you can't do this without those gap fillers and those partnerships. And then another thing that's notable here is, you know, this was, I mean, IBM was just another brand, right? I mean, if anything it was probably a sub-brand, I mean, you didn't hear much about IBM. You certainly had no IBM presence, even though they're right across the street running Think. No Arvind present, no keynote from Arvind, no, you know, Big Blue washing. And so, I think that's a testament to Arvind himself. We heard that from Paul Cormier, he said, hey, this guy's been great, he's left us alone. And he's allowed us to continue innovating. It's good news. IBM has not polluted Red Hat. >> Yes, I think that the Red Hat was, I said at the opening, I think Red Hat is kind of the tail wagging the dog right now. And their position seems very solid in the market. Clearly the market has come to them in terms of their evangelism of open source. They've remained true to their business model. And I think that gives them credibility that, you know, a lot of other open source companies have lacked. They have stuck with the plan for over 20 years now and have really not changed it, and it's paying off. I think they're emerging as a company that you can trust to do business with. >> Now I want to throw in something else here. I thought the conversation with IDC analyst, Jim Mercer, was interesting when he said that they surveyed customers and they wanted to get the security from their platform vendor, versus having to buy these bespoke tools. And it makes a lot of sense to me. I don't think that's going to happen, right? Because you're going to have an identity specialist. You're going to have an endpoint specialist. You're going to have a threat detection specialist. And they're going to be best of breed, you know, Red Hat's never going to be all of those things. What they can do is partner with those companies through APIs, through open source integrations, they can add them in as part of the ecosystem and maybe be the steward of that. Maybe that's the answer. They're never going to be the best at all those different security disciplines. There's no way in the world, Red Hat, that's going to happen. But they could be the integration point. And that would be, that would be a simplifying layer to the equation. >> And I think it's smart. You know, they're not pretending to be an identity in access management or an anti-malware company, or even a zero trust company. They are sticking to their knitting, which is operating system and developers. Evangelizing DevSecOps, which is a good thing. And, that's what they're going to do. You know, you have to admire this company. It has never gotten outside of its swim lane. I think it's understood well really what it wants to be good at. And, you know, in the software business knowing what not to do is more important than knowing what to do. Is companies that fail are usually the ones that get overextended, this company has never overextended itself. >> What else do you want to know? >> And a term that kept popping up was multicloud, or otherwise known as metacloud. We know what the cloud is, but- >> Oh, supercloud, metacloud. >> Supercloud, yeah, here we go. We know what the cloud is but, what does metacloud mean to you guys? And why has it been so popular in these conversations? >> I'm going to boot this to Dave, because he's the expert on this. >> Well, expert or not, but I mean, again, we've coined this term supercloud. And the idea behind the supercloud or what Ashesh called metacloud, I like his name, cause it allows Web 3.0 to come into the equation. But the idea is that instead of building on each individual cloud and have compatibility with that cloud, you build a layer across clouds. So you do the hard work as a platform supplier to hide the underlying primitives and APIs from the end customer, or the end developer, they can then add value on top of that. And that abstraction layer spans on-prem, clouds, across clouds, ultimately out to the edge. And it's new, a new value layer that builds on top of the hyperscale infrastructure, or existing data center infrastructure, or emerging edge infrastructure. And the reason why that is important is because it's so damn complicated, number one. Number two, every company's becoming a software company, a technology company. They're bringing their services through digital transformation to their customers. And you've got to have a cloud to do that. You're not going to build your own data center. That's like Charles Wang says, not Charles Wang. (Paul laughing) Charles Phillips. We were just talking about CA. Charles Phillips. Friends don't let friends build data centers. So that supercloud concept, or what Ashesh calls metacloud, is this new layer that's going to be powered by ecosystems and platform companies. And I think it's real. I think it's- >> And OpenShift, OpenShift is a great, you know, key card for them or leverage for them because it is perhaps the best known Kubernetes platform. And you can see here they're really doubling down on adding features to OpenShift, security features, scalability. And they see it as potentially this metacloud, this supercloud abstraction layer. >> And what we said is, in order to have a supercloud you got to have a superpaz layer and OpenShift is that superpaz layer. >> So you had conversations with a lot of people within the past two days. Some people include companies, from Verizon, Intel, Accenture. Which conversation stood out to you the most? >> Which, I'm sorry. >> Which conversation stood out to you the most? (Paul sighs) >> The conversation with Stu Miniman was pretty interesting because we talked about culture. And really, he has a lot of credibility in that area because he's not a Red Hat. You know, he hasn't been a Red Hat forever, he's fairly new to the company. And got a sense from him that the culture there really is what they say it is. It's a culture of openness and that's, you know, that's as important as technology for a company's success. >> I mean, this was really good content. I mean, there were a lot, I mean Stefanie's awesome. Stefanie Chiras, we're talking about the ecosystem. Chris Wright, you know, digging into some of the CTO stuff. Ashesh, who coined metacloud, I love that. The whole in vehicle operating system conversation was great. The security discussion that we just had. You know, the conversations with Accenture were super thoughtful. Of course, Paul Cormier was a highlight. I think that one's going to be a well viewed interview, for sure. And, you know, I think that the customer conversations are great. Red Hat did a really good job of carrying the keynote conversations, which were abbreviated this year, to theCUBE. >> Right. >> I give 'em a lot of kudos for that. And because, theCUBE, it allows us to double click, go deeper, peel the onion a little bit, you know, all the buzz words, and cliches. But it's true. You get to clarify some of the things you heard, which were, you know, the keynotes were, were scripted, but tight. And so we had some good follow up questions. I thought it was super useful. I know I'm leaving somebody out, but- >> We're also able to interview representatives from Intel and Nvidia, which at a software conference you don't typically do. I mean, there's the assimilation, the combination of hardware and software. It's very clear that, and this came out in the keynote, that Red Hat sees hardware as matter. It matters. It's important again. And it's going to be a source of innovation in the future. That came through clearly. >> Yeah. The hardware matters theme, you know, the old days you would have an operating system and the hardware were intrinsically linked. MVS in the mainframe, VAX, VMS in the digital mini computers. DG had its own operating system. Wang had his own operating system. Prime with Prime OS. You remember these days? >> Oh my God. >> Right? (Paul laughs) And then of course Microsoft. >> And then x86, everything got abstracted. >> Right. >> Everything became x86 and now it's all atomizing again. >> Although WinTel, right? I mean, MS-DOS and Windows were intrinsically linked for many, many years with Intel x86. And it wasn't until, you know, well, and then, you know, Sun Solaris, but it wasn't until Linux kind of blew that apart. And the internet is built on the lamp stack. And of course, Linux is the fundamental foundation for Red Hat. So my point is, that the operating system and the hardware have always been very closely tied together. Whether it's security, or IO, or registries and memory management, everything controlled by the OS are very close to the hardware. And so that's why I think you've got an affinity in Red Hat to hardware. >> But Linux is breaking that bond, don't you think? >> Yes, but it still has to understand the underlying hardware. >> Right. >> You heard today, how taking advantage of Nvidia, and the AI capabilities. You're seeing that with ARM, you're seeing that with Intel. How you can optimize the operating system to take advantage of new generations of CPU, and NPU, and CPU, and PU, XPU, you know, across the board. >> Yep. >> Well, I really enjoyed this conference and it really stressed how important open source is to a lot of different industries. >> Great. Well, thanks for coming on. Paul, thank you. Great co-hosting with you. And thank you. >> Always, Dave. >> For watching theCUBE. We'll be on the road, next week we're at KubeCon in Valencia, Spain. We're at VeeamON. We got a ton of stuff going on. Check out thecube.net. Check out siliconangle.com for all the news. Wikibon.com. We publish there weekly, our breaking analysis series. Thanks for watching everybody. Dave Vellante, for Paul Gillin, and Stephanie Chan. Thanks to the crew. Shout out, Andrew, Alex, Sonya. Amazing job, Sonya. Steven, thanks you guys for coming out here. Mark, good job corresponding. Go to SiliconANGLE, Mark's written some great stuff. And thank you for watching. We'll see you next time. (calm music)

(upbeat music) >> Narrator: From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Welcome to theCUBE's coverage of PagerDuty Summit, I'm your host from theCUBE Natalie Erlich. Now we're joined by Sean Scott, the Chief Product Officer at PagerDuty, thank you very much for joining the program. >> Glad to be here, thank you for having me. >> Terrific. Well, you've been with PagerDuty for about six months, how's it going? >> It's going great. So, I joined PagerDuty because I saw the entire world was shifting to digital first and PagerDuty is key infrastructure for many of the world's largest companies, in fact over 60% of the Fortune 100 are customers. And more importantly, I see a much broader future our platform will play in digital operations for these companies going forward, and I'm excited to be part of that. >> Terrific. Well, you have really robust experience, over 20 years in the Valley leading product, marketing, and engineering teams. What prompted the move? I mean, you explained a bit, but just really curious why you made that? >> Sure, so yeah I had a long career at Amazon where I was responsible for much of the shopping experience, I ran the homepage, product page, checkout, a lot of the underlying tools and tech that supports that worldwide across all devices. And then more recently I built and launched the Scout autonomous delivery robot from the ground up, so. But after 15 years, and I was starting to look for a change and I started talking to Jen, our CEO, and the more we talked, the more excited I became about the platform and what it can be going forward for our customers. You know, the fact that we are already integrated with so many customers around the world and playing such a critical role as part of their infrastructure, and yet, I think we're just getting started, and we can help out companies in so many more use cases across our organizations and really eliminate a lot of time and waste from their processes. Well, this is your first PagerDuty Summit, I would love it if you could share perhaps some insight what you're planning to announce this week? >> Yeah, sure. So, we have a few things that we're announcing. One is, we announced last year, probably the biggest news last September was our acquisition of Rundeck; and so as part of that we're announcing our first integration of PagerDuty and Rundeck in the form of Runbook actions. So this is a, you could think of it as kind of quick, kind of micro-automations or short automations to give responders much more insights into what's actually happening with an incident. So maybe it's running a MIM command or a script on a server, we can actually run that directly from the PagerDuty interface so you don't have to SSH into a box for example, which is all just takes time and effort, and so when you're trying to remediate an issue of maybe a site being down or a service being down, it all happens right there. And even your frontline responders can now do those remediations as well, and those automation actions, to again, before they need to escalate to the next tier or bring in other devs to help troubleshoot. So that's pretty exciting. We're also announcing Service Craft, which is a new way to model your services and to show your services, and really understand your dependency graph. So if you think about one of the biggest challenges often when you're trying to remediate an issue is understanding is it me, or is it one of my dependent services? And so now we actually have new visualizations to really show the responders exactly what's happening and you can quickly see is it you, or is it maybe some dependency, maybe multiple teams are having the same issue that because one of the core services that everybody leverages is down and you can quickly see that. So that's pretty exciting as well. We have change correlation and incident outliers. So change correlation, you know, most incidents occur because of changes that were made by us people, and so being able to spotlight things like here's a change that was recently made, or here's a change based on our machine learning algorithms that we detected that could be a culprit here. So providing much richer insights, to again, reduce that mean time to resolution. So this whole team, our Event Intelligence team, that's our whole purpose in life is really just to reduce that mean time to resolution for our customers. Imagine waking up, you know, tomorrow, and your mean time to resolution just magically goes down because of our software updates, and that's how that team focuses on. And then the last one in this group is internet outliers, which is all about telling you if an incident, is this rare, or is this a frequent incident? And just giving you a little more insights into what you're seeing, which will again, help the responders. We have some other announcements coming up, but I'll save that for Summit. >> Perfect. Well, you know, I'd love it if you could share some insight on the competitive landscape, and how PagerDuty is, how you see its product that they're offering different from the others? >> Sure. So, we go head-to-head with a lot of competitors, and we, we have the, you know, being in the fortunate position that we do have a few competitors coming after us and some big names as well. But, you know, when we go head-to-head with these companies, we generally win. And we see we're constantly getting put in bake-offs with these other competitors. We had one customer I was talking to a few weeks back and they paired us against the incumbent, and out of the box, we saw a 50% improvement in mean time to acknowledge, so this is how quickly we can pull in the responder. And then in addition, I thought was more interesting, is we saw a 50% improvement in the mean time to resolution over the incumbent. And so while we do have competitors coming at us, I'm really happy with the way our product performs and our customers are too. So after these bake-offs, it's usually pretty clear who's staying and who's going. >> Yeah, so, when you were helping develop this program this week, what were some of the key areas that you really wanted to highlight? >> Yeah, so one of the big areas is really talking about our vision, and what is our go forward plan. Because I think while we're really known for incident response, I think, you know, some of the exciting things you'll hear about at Summit are kind of where we're going in terms of four pillars to our vision. One is flexibility. Flexible workflows, and enabling flexibility. So, if you think about all the things that our product is doing beyond DevOps. So for example, you know, we had a customer telling us about they had put PagerDuty in front of everything they're doing, so their whole building is IP enabled, and so they had a contractor drill through a water main, and it was instantly able to shut off the water. So they, you know, within 30 seconds, PagerDuty had notified the right responders of building maintenance, and within a minute and a half the water was shut off, and they made the comment that PagerDuty just paid for itself with this one incident. We see IOT device management, we see even organ transplant delivery using our product, and so we want to continue to fuel that with our flexibility. Second pillar is connect to everyone. We see that we have a lot of people connected, but we just launched fairly recently a customer service offering, so now we can get customer service not only informed what's going on, but also connecting to the dev teams, and engineering teams, and the service owners, to really give them more insights into the blast radius and what they may be seeing. The next one is connect everything. So we have over 550 out of the box integrations, and so that makes it seamless to connect to apps like Datadog. But then also we work where our customers work, so we can actually do work in Slack or MS Teams and take action right in those tools. And the last one is automate away to toil. So we want to automate what can be automated, and this goes back to the Rundeck acquisition that I mentioned, and getting that more deeply integrated with the stack, and with processes across an organization. And we're seeing that when our customers really take advantage of that platform they can really automate away to toil, and automate a lot of redundant work, and work that is just busy work that keeps people from doing their day jobs, so to speak. >> Yeah, well, obviously we had a really unusual last year with the pandemic. How do you think that it changed up business for you? Did it inspire you to move in a new direction? What do you see next in the near future? >> For sure. So, I saw that, and it's probably the reason why I came to PagerDuty, because I saw the transformation industries are making to digital first. Right? And so there was a lot of teams, a lot of companies struggled, but then a lot of companies also, florists, you'd take companies like Instacart, and DoorDash, and Zoom, you know, had a terrific year. And so, you know, PagerDuty, even with the pandemic, and companies that were struggling, we still grew pretty rapidly last year, and that's, I think it's pretty exciting, and it really speaks to that migration to digital where digital is now becoming, you know, table stakes, and just part of what you have to do as a business as opposed to it used to be a goal that oh, we need to do more on digital platform, and now it's like, you have to, you know, focus on your digital platform if you want to simply stay relevant today. And so I think that's really important for PagerDuty because that's where we really help companies thrive. >> Sean, that's really interesting. To close out this interview, do you have any last thoughts? >> No, I think that covers it, I think we're, you know, really excited to grow with our customers and we're seeing great traction in the market, and look forward to a bright future, and our platform really helping customers solve new problems that they might've not even considered us for yet. >> Terrific. Well, thank you very much for your insights. Sean Scott, the Chief Product Officer at PagerDuty. And that wraps up our coverage today for the PagerDuty Summit. I'm your host Natalie Erlich for theCUBE. Thank you for watching. (upbeat music)

(bright music) >> Narrator: From theCube studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is theCube conversation. >> Welcome to theCube's coverage of PagerDuty Summit. I'm your host from the cube Natalie Ehrlich. Now we're joined by Sean Scott the Chief Product Officer of PagerDuty. Thank you very much for joining the program. >> Glad to be here, thank you for having me. >> Terrific, while you've been with PagerDuty for about six months, how is it going? >> Well and great. So I joined PagerDuty because I saw the entire world was shifting to digital first and PagerDuty is key infrastructure for many of the world's largest companies. In fact, over 60% of the Fortune 100 are customers. And more importantly, I see a much broader future our platform will play in digital operations for these companies going forward. I'm excited to be a part of that. >> Terrific. Well, you have really robust experience over 20 years in the value leading product, marketing and engineering teams. What prompted the move? I mean, you explained it but just really curious why you made that. >> So, yeah, I had a long career at Amazon where I was responsible for much of the shopping experience. I ran the homepage, product page, checkout a lot of the underlying tools and tech that supports that worldwide across all devices. And then more recently I built and launched the scout autonomous delivery robot from the ground up. So, but after 15 years and I was starting to look for a change and I started talking to Jen, our CEO and the more we talked the more excited I became about the platform and what it can be going forward for our customers. You know, the fact that we are already integrated with so many customers around the world and playing such a critical role as part of their infrastructure. And yet I think we're just getting started and we can help out companies and so many more use cases across our organizations and really eliminate a lot of time in a waste from their processes. >> Well, this is your first PagerDuty summit. Do tell us, what do you think is the vision for this year's program? >> Yeah, so we'll be launching a lot of new products that I'm excited to talk about and I'll be sharing some of the vision about what I've been thinking about and what I've been working on for my time that I've been here so far. And that starts with our vision, which is really how do we enable more flexibility across our platform. I mentioned our customers are using us for a lot of unique ways beyond DevOps. Things like IOT device management. You know, I heard one yesterday of, you know really doing building management. So the building was having a water leak and instantly it was hooked up to PagerDuty already beforehand. And so within 30 seconds they had alerted and within a minute and a half, they had the water shut off of the building. So way beyond the DevOps use case to even organ transplant delivery, if you can believe that our platform is being used on. So it's pretty exciting to think about all our product already does, but we want to continue to accelerate that. And so building much more flexibility into our product to really capture more of that value and more of the work that's happening across the organization, connect to everyone. >> That's really incredible. We'd love it if you could share perhaps some insight what you're planning to announce this week. >> Yeah, sure. So we have a few things that we're announcing. One is we announced last year by the biggest news last September was our acquisition of Rundeck. And so as part of that, we're announcing our first integration of PagerDuty in Rundeck in the form of Runbook action. So this is a, you can think of it as kind of quick kind of micro automations or short automations to give responders much more insights into what's actually happening with an incident. So maybe it's say running a MIM command or a script on a server, we can actually run that directly from the PagerDuty interface. So you don't have to SSH into a box, for example what does all just takes time and effort. And so when you're trying to remediate that issue of maybe a site being down or a service being down, it all happens right there. And even your frontline responders can now do those remediations as well and those automation actions, to again before they need to escalate to the next tier or bring in other devs to help troubleshoot. So that's pretty exciting. We're also announcing service graft which is a new way to model your services and show your services and really understand your dependency graph. So if you think about one of the biggest challenges often when you're trying to remediate issues is understanding, is that me, or is that one of my dependent services? And so now we actually have new visualizations to really show that our responders exactly what's happening and you can quickly see, is it you or is it maybe some dependency maybe multiple teams are having the same issue that because one of the core services that everybody leverages is down and you can quickly see that. So that's pretty exciting as well. We have change correlation and internet outliers. So change correlation, you know, most incidents occur because of changes that were made by us people. And so being able to spotlight things like here's a change that was recently made, or here's a change based on our machine learning algorithms that we detected that could be a culprit here. So providing a much richer insights to again reduce that meantime to resolution. So this whole team, our intelligence team that's our whole purpose in life is really just to reduce that meantime to resolution for our customers. Imagine waking up, you know, tomorrow and your meantime to resolution just magically goes down because of our software updates and that's how that team focuses on. And then the last one in this group is internet outliers which is all about telling you have an incident, is this rare or is this a frequent incident? And just giving you a little more insights into what you're seeing which will again help the responders. We have some other announcements coming up, but I'll save that for something. >> Terrific. Well, you know, I'd love it if you could share some insight on the competitive landscape and how PagerDuty is, how you see its product offering different from the others. >> Sure. So we go head to head with a lot of our competitors and we have the, you know, being in the fortunate position that we do have a few competitors coming after us and some big names as well. But you know, when we go head to head with these companies we generally win and we see we're constantly getting put in bake-offs with these other competitors. We have one customer, I was talking to a few weeks back and they paired us against the incumbent and out of the box, we saw 50% improvement in meantime to acknowledge. So this is how quickly we can pull the responder. And then in addition, I thought was more interesting as we saw a 50% improvement in the meantime to resolution over the incumbent. And so while we do have competitors coming at us I'm really happy with the way our product performs and our customers are too. So after these bake-offs, it's usually pretty clear who's staying and who's going. >> Yeah. So when you were helping develop this program this week what were some of the key areas that you really wanted to highlight? >> So one of the big areas is really talking about our vision and what is our go forward plan, because I think while we're really known for incident response, I think some of the exciting things you'll hear about at the summit are kind of where we're going in terms of four pillars to our vision. One is flexibility. Flexible workflows and enabling flexibility. So if you think about all the things that our product is doing beyond DevOps. So for example, you know we had a customer telling us about they had put PagerDuty in front of everything they're doing. So their whole building is IP enabled. And so they had a contractor drill through a watermain and it was instantly able to shut off the water. So they, you know, within 30 seconds they had the PagerDuty had notified the right responders of building maintenance and within a minute and a half the water was shut off and they made the comment that PagerDuty just paid for itself with this one incident. We see IOT device management. We see even organ transplant delivery using our product. And so we will continue to fuel that with our flexibility. Second pillar is connect to everyone. We see that we have a lot of people connected, but we just launched fairly recently a customer service offering. So now we can get customer service not only informed what's going on, but also connecting to the dev teams and the engineering teams and the service owners to really give them more insights into the blast radius and what they may be seeing. The next one is connect everything. So we have over 550 out of the box integrations. So that makes it seamless to connect to apps like Datadog. But then also we work where our customers work. So we can actually do work in Slack or MS Teams and take action right in those tools. And the last one is automated way to toil. So we want to automate what can be automated. And this goes back to the one deck acquisition that I mentioned and getting that more deeply integrated with the stack and with processes across an organization. And we're seeing that when our customer has really taken advantage of that platform they can really automate a way to toil and automate a lot of redundant work and work that is just busy work and that keeps people from doing their day jobs, so to speak. >> Yeah, well obviously we had a really unusual last year with the pandemic. How do you think that it changed a business for you? Did it inspire you to move in a new direction? What do you see next in the near future? >> For sure. So I saw that, I mean, it's probably the reason why I came to PagerDuty because I saw the transformation industries are making a digital first, right. And so there was a lot of teams a lot of companies struggled, but then a lot of companies also flourished you'd take, you know companies like Instacart and DoorDash and Zoom, you know had a terrific year. And so, you know, PagerDuty even with the pandemic and companies that were struggling, we still grew pretty rapidly last year. And that's, I think it's pretty exciting. And it really speaks to that migration to digital where digital is now becoming table stakes and just part of what you have to do as a business as opposed to it used to be a goal that we need to do more on digital platform. And now it's like, you have to, you know focus on a digital platform if you want to simply stay relevant today. And so I think that's really important for PagerDuty because that's where we really help companies thrive. >> Sean, that's really interesting. To close out this interview, do you have any last thoughts? >> No, I think that covers it. I think we're really excited to grow with our customers and we're seeing great traction in the market and look forward to a bright future in our platform. Really helping customers solve new problems that they might've not even considered us for yet. >> Terrific, well, thank you very much for your insights. Sean Scott the Chief Product Officer at PagerDuty. And that wraps up our coverage today for the PagerDuty Summit. I'm your host, Natalie Erlich for theCube. Thank you for watching. (bright music)

>>from >>Around the globe. It's the cube with digital coverage of IBM think 2021 brought to you by IBM. >>Welcome back to the cubes ongoing coverage of IBM Think 2021 virtual cube, you know, the pandemic has caused us to really rethink this this whole concept of operational resilience and we're gonna dig into that and talk about the importance of constructing a holistic resilience plan and get the perspective of some really great domain experts. Alan Downs is the vice president, global Cloud security and resiliency services at IBM and he's joined by MS Michelle what? Weston who is the director of cloud security and resiliency offerings at IBM folks. Welcome to the cube. Thanks for coming on. >>Thank you. >>Now before we get into it, I said IBM but I want to ask you, alan about an announcement you made last month about Kendrell new spin out from IBM. What can you tell us? >>Very excited about the name? I think there's a lot of meaning in the name centered around new growth and censored around partnership and relationship. So if you look at the name that was announced I think it really does typify what we set out to be as a trusted partner in the industry. All born around new growth centered around strong partnership and relationship. So very pleased and excited and look forward to the opportunity we have going forward. >>Yeah congratulations on that. Had some clarity martin schroder. New ceo Cubillan. Great executive love it. So good luck. Um Alan let me stay with you for a second. I mean operational resilience it means different things to different people and we know from speaking with C. IOS in our community during the pandemic. It doesn't just mean disaster recovery. In fact a lot of C. I. O. Said that their business continuing strategy were too focused on on D. R. Ellen. What does operational resilience mean from your perspective? >>So I'll answer it this way. Operational resiliency risk is defined as the quantifiable steps that any client needs to take in order to respond, recover from an unplanned outage. It sits squarely within operational risk. And if you think about it, operational risk is the kind of non financial element of risk. And defined within that category, operational resiliency risk is trying to identify those steps both pre active and reactive that a client needs to consider that they would have to take in the event of an unplanned disruption or an unplanned outage that would impact their ability to serve their clients or to serve their organization. That's how I define operational resiliency risk. >>Great and I wonder Michelle if you can add to that but I think you know I sometimes say that the pandemic was like a forced march to digital and part of that was business resilience. But You know, where do we go from here? You know, we had 14 months shoved into our face and now we have some time to think about. So how should clients think about evolving their strategies in this regard? >>Yeah, Well, certainly with respect to what was called Newco now, Kendrell, um our approach has been advisory led. Uh we will help clients along this journey. Uh, one thing that I'd like to point out in one of the journeys that we've been taking over the last couple of years is it really is about security and resiliency together. If you think of that planning and how to mitigate your operational risk, the security and resiliency go hand in hand through the same people within the organization that are planning for that and worried about it. And so we had already started about three years ago to pull the two together and to have a unified value proposition for clients around security and resiliency, both being advisory lead, doing everything for a client from project based to the digital consumption world which we know clients live in today to a fully managed service all around security and resiliency together. >>Yeah, so I mean it's really important topic. I mean you heard Chair Powell last month. He was he was on 60 minutes saying well yeah worried about inflation, were way more worried about security. So so alan you know, were let's say you're in the virtual, you know, conference room with the board of directors. What's that conversation like? Uh where does it start? >>I think there is a huge concern right now with regard to security and obviously resiliency as well. But if you just think about what we've all been through and what's transpired in the last 12 months, the what we call the threat landscape has broadened significantly and therefore clients have had to go through a rapid transformation not just by moving employees to home base, but also their clients having a much higher expectation in terms of access to systems, access to transactions which are all digital. So you referred to it earlier. But the transformation, our clients have had to go on driving a higher dependence on those systems that enable them to serve their clients digitally and enable them to allow the employees to work remotely in this period has increased the dependencies that they have across the environment that are running many of the critical business processes. So the discussion in the boardroom is very much are we secure? Are we safe? How do we know how safe and secure and resilient should we be? And based on that fact about how safe and secure should we be? Where are we today as an organization? And I think these are the questions that are at the boardroom is basically from a resiliency security perspective, where should we be that supports our strategy vision and our client expectation? And then the second question is very much where are we today? How do we know that we are secure? How do we know that we can recover from any unplanned or unforeseen disruption to our environments? >>So Michelle, I mean I just mentioned the threat surface is expanding and we're just getting started, everybody's like crazy about five G leaning in the edge Iot and that's just uh this could be orders of magnitude by the end of the decade compared to where it is today. So how do you think about the key steps that organizations should should take to ensure operational resilience, you know, not only today, but also putting in a road map. >>Yeah, yeah. And and one thing that we do know from our clients is those that have actually planned for resiliency and security at the forefront. They tend to do that more effectively and more efficiently. Um It's much better to do that than to try to do that after an outage. You certainly learn a lot. Um but that's not the experience that you want to go through. You want to have that planning and strategy in the forefront. As Alan said in terms of the threat vector, the pandemic brought that on as well. We saw surgeons Of cyberattacks, opportunistic attacks. Um you know, we saw the best of people in the pandemic as well as the worst in people. Some of those attacks were on agencies that we're trying to recover. We're trying to treat the public with respect to the COVID-19 pandemic. So none of us can let our guard down here. I think we can anticipate that that's only going to increase. And with the emergence of these new technologies like cloud, we know that there's been such a massive benefit to clients. In fact those that were cloud enabled to sustain their businesses during the pandemic full stop. But with that comes a lot more complexity. Those threat vectors increase five G. I expect to be the same. So again, resilience and security have never been more relevant. More important, we see a lot of our clients putting budget there and those that plan for it with a strategic mindset and understand that whatever they have today may be good enough, but in the future they're going to have to invest and continue to evolve that strategy. Are those that have done the best. >>Yeah, the bolt on strategy doesn't doesn't really work that well, but and I wonder if you think about when we talk to CSOS for example, and you ask them what's your biggest challenge? They'll say things like lack of talent. We got too many tools. It's just as we're on the hamsters on wheels. So I would think that's, you know, unfortunately for some, but it's good for your, your business. That's that's a dynamic that you can help with. I mean you're a services organization, you got deep expertise in this. So I wonder if you could, could talk a little bit about that, that lack of talent, that skills gap and how you guys address that. >>I think this is really the fit for managed services providers like Kendrell, um, certainly with some of our largest clients, if we look at Peta as an example, that notion of phone a friend is really important when it starts to go down and you're not sure what you're gonna do next. You want the expertise, you want to be able to phone someone and you want to be able to rely on them to help you recover your most critical data. One of the things clients have also been asking us for is a vaulted capability, almost like the safe deposit box for your data and your critical applications. Being able to put them somewhere and then in the event of needing to recover, um, you certainly could call someone to help you do exactly that >>Ellen. I wonder if you can address this. I mean, I like IBM I was I'm a customer. I trust IBM. What's your relationship? Are you still gonna, you know, be able to allow me to tap the pieces that that I like and maybe you guys can be more agile in some respects, maybe you can talk about that a little bit. >>She has Sure, Dave and many of our clients, we have a long history with a very positive experience of delivering, you know, market leading and high high quality of services and product the relationship continue. So we will remain very close to IBM and we will continue to work with many of IBM's customers as will IBM work with our customers going forward. So the relationship, I believe whilst a different dynamic will continue and I believe engenders an opportunity for growth and you know, we mentioned earlier the very name signifies the fact that it's new growth and I do think that that partnership will continue and we'll continue together to deliver the type of service, the quality of products and services that our clients have, you know, enjoyed from IBM over the last number of years, >>Michelle my, one of my takeaway from your earlier comments as you guys are hands on consultative in nature. Um, and I think about the comment I made about a lot of Ceo said we were way too d our focus. But when I think about d are a lot of times it was a checkbox to the board. Hey, we got it. But it was last time you tested it. Well, we don't test it because it's too risky to test. You know, we, we do fail over, but we don't fail back because it's just too risky. Can I stress test, you know, my environment, we, at the point now where technology and expertise will allow us to do that is that part of what you bring to the table? >>It is exactly exactly what we bring to the table. So from a first of all, from a compliance and regulatory perspective, you no longer have that option. A lot of the auditors are asking you to demonstrate your d our plan. We have technology and I think we've talked about this before about the automation that we have in our portfolio with resiliency orchestration that allows you to see the risk in your environment on a day to day basis. Proactively manage it. I tried to recover this, there's a there's a failure and then you're able to proactively address it. I also give the example from a resiliency orchestration perspective in this very powerful software automation that we have for D. R. We've had clients that have come in scheduled A. D. R. Test, it was to be all day they've ordered in lunch And the D. R. test fail over failed back took 22 minutes and lunch was canceled. >>I love >>it. Very powerful and very powerful with an auditor. >>That's awesome. Okay guys, we've got to leave it there. Really great to get the update. Best of luck to you and congratulations. Thanks for coming on. >>Thank you so much >>and thank you for watching. This is Dave Volonte for the cubes continuous coverage of IBM think 2021 right back. >>Mhm.

(gentle music) >> From the Cube Studios in Palo Alto and Boston, connecting with thought leaders all around the world. This is theCube Conversation. >> Hi everybody, this is Dave Vellante, we're back at Cube on Cloud, and with me is Muddu Sudhakar. He's a long time alum of theCube, a technologist and executive, a serial entrepreneur and an investor. Welcome my friend, good to see you. >> Good to see you, Dave. Pleasure to be with you. Happy elections, I guess. >> Yeah, yeah. So I wanted to start, this work from home, pivot's been amazing, and you've seen the enterprise collaboration explode. I wrote a piece a couple months ago, looking at valuations of various companies, right around the snowflake IPO, I want to ask you about that, but I was looking at the valuations of various companies, at Spotify, and Shopify, and of course Zoom was there. And I was looking at just simple revenue multiples, and I said, geez, Zoom actually looks, might look undervalued, which is crazy, right? And of course the stock went up after that, and you see teams, Microsoft Teams, and Microsoft doing a great job across the board, we've written about that, you're seeing Webex is exploding, I mean, what do you make of this whole enterprise collaboration play? >> No, I think the look there is a trend here, right? So I think this probably trend started before COVID, but COVID is going to probably accelerate this whole digital transformation, right? People are going to work remotely a lot more, not everybody's going to come back to the offices even after COVID, so I think this whole collaboration through Slack, and Zoom, and Microsoft Teams and Webex, it's going to be the new game now, right? Both the video, audio and chat solutions, that's really going to help people like eyeballs. You're not going to spend time on all four of them, right? It's like everyday from a consumer side, you're going to spend time on your Gmail, Facebook, maybe Twitter, maybe Instagram, so like in the consumer side, on your personal life, you have something on the enterprise. The eyeballs are going to be in these platforms. >> Yeah. Well. >> But we're not going to take everything. >> Well, So you are right, there's a permanence to this, and I got a lot of ground to cover with you. And I always like our conversations mood because you tell it like it is, I'm going to stay on that work from home pivot. You know a lot about security, but you've seen three big trends, like mega trends in security, Endpoint, Identity Access Management, and Cloud Security, you're seeing this in the stock prices of companies like CrowdStrike, Zscaler, Okta- >> Right >> Sailpoint- >> Right, I mean, they exploded, as a result of the pandemic, and I think I'm inferring from your comment that you see that as permanent, but that's a real challenge from a security standpoint. What's the impact of Cloud there? >> No, it isn't impact but look, first is all the services required to be Cloud, right? See, the whole ideas for it to collaborate and do these things. So you cannot be running an application, like you can't be running conference and SharePoint oN-Prem, and try to on a Zoom and MS teams. So that's why, if you look at Microsoft is very clever, they went with Office 365, SharePoint 365, now they have MS Teams, so I think that Cloud is going to drive all these workloads that you have been talking about a lot, right? You and John have been saying this for years now. The eruption of Cloud and SAS services are the vehicle to drive this next-generation collaboration. >> You know what's so cool? So Cloud obviously is the topic, I wonder how you look at the last 10 years of Cloud, and maybe we could project forward, I mean the big three Cloud vendors, they're running it like $20 billion a quarter, and they're growing collectively, 35, 40% clips, so we're really approaching a hundred billion dollars for these three. And you hear stats like only 20% of the workloads are in the public Cloud, so it feels like we're just getting started. How do you look at the impact of Cloud on the market, as you say, the last 10 years, and what do you expect going forward? >> No, I think it's very fascinating, right? So I remember when theCube, you guys are talking about 10 years back, now it's been what? More than 10 years, 15 years, since AWS came out with their first S3 service back in 2006. >> Right. >> Right? so I think look, Cloud is going to accelerate even more further. The areas is going to accelerate is for different reasons. I think now you're seeing the initial days, it's all about startups, initial workloads, Dev test and QA test, now you're talking about real production workloads are moving towards Cloud, right? Initially it was backup, we really didn't care for backup they really put there. Now you're going to have Cloud health primary services, your primary storage will be there, it's not going to be an EMC, It's not going to be a NetApp storage, right? So workloads are going to shift from the business applications, and these business applications, will be running on the Cloud, and I'll make another prediction, make customer service and support. Customer service and support, again, we should be running on the Cloud. You're not want to run the thing on a Dell server, or an IBM server, or an HP server, with your own hosted environment. That model is not because there's no economies of scale. So to your point, what will drive Cloud for the next 10 years, will be economies of scale. Where can you take the cost? How can I save money? If you don't move to the Cloud, you won't save money. So all those workloads are going to go to the Cloud are people who really want to save, like global gradual custom, right? If you stay on the ASP model, a hosted, you're not going to save your costs, your costs will constantly go up from a SaaS perspective. >> So that doesn't bode well for all the On-prem guys, and you hear a lot of the vendors that don't own a Cloud that talk about repatriation, but the numbers don't support that. So what do those guys do? I mean, they're talking multi-Cloud, of course they're talking hybrid, that's IBM's big play, how do you see it? >> I think, look, see there, to me, multi-Cloud makes sense, right? You don't want one vendor that you never want to get, so having Amazon, Microsoft, Google, it gives them a multi-Cloud. Even hybrid Cloud does make sense, right? There'll be some workloads. It's like, we are still running On-prem environment, we still have mainframe, so it's never going to be a hundred percent, but I would say the majority, your question is, can we get to 60, 70, 80% workers in the next 10 years? I think you will. I think by 2025, more than 78% of the Cloud Migration by the next five years, 70% of workload for enterprise will be on the Cloud. The remaining 25, maybe Hybrid, maybe On-prem, but I get panics, really doesn't matter. You have saved and part of your business is running on the Cloud. That's your cost saving, that's where you'll see the economies of scale, and that's where all the growth will happen. >> So square the circle for me, because again, you hear the stat on the IDC stat, IBM Ginni Rometty puts it out there a lot that only 20% of the workloads are in the public Cloud, everything else is On-prem, but it's not a zero sum game, right? I mean the Cloud native stuff is growing like crazy, the On-prem stuff is flat to down, so what's going to happen? When you talk about 70% of the workloads will be in the Cloud, do you see those mission critical apps and moving into the car, I mean the insurance companies going to put their claims apps in the Cloud, or the financial services companies going to put their mission critical workloads in the Cloud, or they just going to develop new stuff that's Cloud native that is sort of interacts with the On-prem. How do you see that playing out? >> Yeah, no, I think absolutely, I think a very good question. So two things will happen. I think if you take an enterprise, right? Most businesses what they'll do is the workloads that they should not be running On-prem, they'll move it up. So obviously things like take, as I said, I use the word SharePoint, right? SharePoint and conference, all the knowledge stuff is still running on people's data centers. There's no reason. I understand, I've seen statistics that 70, 80% of the On-prem for SharePoint will move to SharePoint on the Cloud. So Microsoft is going to make tons of money on that, right? Same thing, databases, right? Whether it's CQL server, whether there is Oracle database, things that you are running as a database, as a Cloud, we move to the Cloud. Whether that is posted in Oracle Cloud, or you're running Oracle or Mongo DB, or Dynamo DB on AWS or SQL server Microsoft, that's going to happen. Then what you're talking about is really the App concept, the applications themselves, the App server. Is the App server is going to run On-prem, how much it's going to laureate outside? There may be a hybrid Cloud, like for example, Kafka. I may use a Purse running on a Kafka as a service, or I may be using Elasticsearch for my indexing on AWS or Google Cloud, but I may be running my App locally. So there'll be some hybrid place, but what I would say is for every application, 75% of your Comprende will be on the Cloud. So think of it like the Dev. So even for the On-prem app, you're not going to be a 100 percent On-prem. The competent, the billing materials will move to the Cloud, your Purse, your storage, because if you put it On-prem, you need to add all this, you need to have all the whole things to buy it and hire the people, so that's what is going to happen. So from a competent perspective, 70% of your bill of materials will move to the Cloud, even for an On-prem application. >> So, Of course, the susification of the industry in the last decade and in my three favorite companies last decade, you've worked for two of them, Tableau, ServiceNow, and Splunk. I want to ask you about those, but I'm interested in the potential disruption there. I mean, you've got these SAS companies, Salesforce of course is another one, but they can't get started in 1999. What do you see happening with those? I mean, we're basically building these sort of large SAS, platforms, now. Do you think that the Cloud native world that developers can come at this from an angle where they can disrupt those companies, or are they too entrenched? I mean, look at service now, I mean, I don't know, $80 billion market capital where they are, they bigger than Workday, I mean, just amazing how much they've grown and you feel like, okay, nothing can stop them, but there's always disruption in this industry, what are your thoughts on that. >> Not very good with, I think there'll be disrupted. So to me actually to your point, ServiceNow is now close to a 100 billion now, 95 billion market coverage, crazy. So from evaluation perspective, so I think the reason they'll be disrupted is that the SAS vendors that you talked about, ServiceNow, and all this plan, most of these services, they're truly not a multi-tenant or what do you call the Cloud Native. And that is the Accenture. So because of that, they will not be able to pass the savings back to the enterprises. So the cost economics, the economics that the Cloud provides because of the multi tenancy ability will not. The second reason there'll be disrupted is AI. So far, we talked about Cloud, but AI is the core. So it's not really Cloud Native, Dave, I look at the AI in a two-piece. AI is going to change, see all the SAS vendors were created 20 years back, if you remember, was an operator typing it, I don't respond administered we'll type a Splunk query. I don't need a human to type a query anymore, system will actually find it, that's what the whole security game has changed, right? So what's going to happen is if you believe in that, that AI, your score will disrupt all the SAS vendors, so one angle SAS is going to have is a Cloud. That's where you make the Cloud will take up because a SAS application will be Cloudified. Being SAS is not Cloud, right? Second thing is SAS will be also, I call it, will be AI-fied. So AI and machine learning will be trying to drive at the core so that I don't need that many licenses. I don't need that many humans. I don't need that many administrators to manage, I call them the tuners. Once you get a driverless car, you don't need a thousand tuners to tune your Tesla, or Google Waymo car. So the same philosophy will happen is your Dev Apps, your administrators, your service management, people that you need for service now, and these products, Zendesk with AI, will tremendously will disrupt. >> So you're saying, okay, so yeah, I was going to ask you, won't the SAS vendors, won't they be able to just put, inject AI into their platforms, and I guess I'm inferring saying, yeah, but a lot of the problems that they're solving, are going to go away because of AI, is that right? And automation and RPA and things of that nature, is that right? >> Yes and no. So I'll tell you what, sorry, you have asked a very good question, let's answer, let me rephrase that question. What you're saying is, "Why can't the existing SAS vendors do the AI?" >> Yes, right. >> Right, >> And there's a reason they can't do it is their pricing model is by number of seats. So I'm not going to come to Dave, and say, come on, come pay me less money. It's the same reason why a board and general lover build an electric car. They're selling 10 million gasoline cars. There's no incentive for me, I'm not going to do any AI, I'm going to put, I'm not going to come to you and say, hey, buy me a hundred less license next year from it. So that is one reason why AI, even though these guys do any AI, it's going to be just so I call it, they're going to, what do you call it, a whitewash, kind of like you put some paint brush on it, trying to show you some AI you did from a marketing dynamics. But at the core, if you really implement the AI with you take the driver out, how are you going to change the pricing model? And being a public company, you got to take a hit on the pricing model and the price, and it's going to have a stocking part. So that, to your earlier question, will somebody disrupt them? The person who is going to disrupt them, will disrupt them on the pricing model. >> Right. So I want to ask you about that, because we saw a Snowflake, and it's IPO, we were able to pour through its S-1, and they have a different pricing model. It's a true Cloud consumption model, Whereas of course, most SAS companies, they're going to lock you in for at least one year term, maybe more, and then, you buy the license, you got to pay X. If you, don't use it, you still got to pay for it. Snowflake's different, actually they have a different problem, that people are using it too much and the sea is driving the CFO crazy because the bill is going up and up and up, but to me, that's the right model, It's just like the Amazon model, if you can justify it, so how do you see the pricing, that consumption model is actually, you're seeing some of the On-prem guys at HPE, Dell, they're doing as a service. They're kind of taking a page out of the last decade SAS model, so I think pricing is a real tricky one, isn't it? >> No, you nailed it, you nailed it. So I think the way in which the Snowflake there, how the disruptors are data warehouse, that disrupted the open source vendors too. Snowflake distributed, imagine the playbook, you disrupted something as the $ 0, right? It's an open source with Cloudera, Hortonworks, Mapper, that whole big data that you want me to, or that market is this, that disrupting data warehouses like Netezza, Teradata, and the charging more money, they're making more money and disrupting at $0, because the pricing models by consumption that you talked about. CMT is going to happen in the service now, Zen Desk, well, 'cause their pricing one is by number of seats. People are going to say, "How are my users are going to ask?" right? If you're an employee help desk, you're back to your original health collaborative. I may be on Slack, I could be on zoom, I'll maybe on MS Teams, I'm going to ask by using usage model on Slack, tools by employees to service now is the pricing model that people want to pay for. The more my employees use it, the more value I get. But I don't want to pay by number of seats, so the vendor, who's going to figure that out, and that's where I look, if you know me, I'm right over as I started, that's what I've tried to push that model look, I love that because that's the core of how you want to change the new game. >> I agree. I say, kill me with that problem, I mean, some people are trying to make it a criticism, but you hit on the point. If you pay more, it's only because you're getting more value out of it. So I wanted to flip the switch here a little bit and take a customer angle. Something that you've been on all sides. And I want to talk a little bit about strategies, you've been a strategist, I guess, once a strategist, always a strategist. How should organizations be thinking about their approach to Cloud, it's cost different for different industries, but, back when the cube started, financial services Cloud was a four-letter word. But of course the age of company is going to matter, but what's the framework for figuring out your Cloud strategy to get to your 70% and really take advantage of the economics? Should I be Mono Cloud, Multi-Cloud, Multi-vendor, what would you advise? >> Yeah, no, I mean, I mean, I actually call it the tech stack. Actually you and John taught me that what was the tech stack, like the lamp stack, I think there is a new Cloud stack needs to come, and that I think the bottomline there should be... First of all, anything with storage should be in the Cloud. I mean, if you want to start, whether you are, financial, doesn't matter, there's no way. I come from cybersecurity side, I've seen it. Your attackers will be more with insiders than being on the Cloud, so storage has to be in the Cloud then come compute, Kubernetes. If you really want to use containers and Kubernetes, it has to be in the public Cloud, leverage that have the computer on their databases. That's where it can be like if your data is so strong, maybe run it On-prem, maybe have it on a hosted model for when it comes to database, but there you have a choice between hybrid Cloud and public Cloud choice. Then on top when it comes to App, the app itself, you can run locally or anywhere, the App and database. Now the areas that you really want to go after to migrate is look at anything that's an enterprise workload that you don't need people to manage it. You want your own team to move up in the career. You don't want thousand people looking at... you don't want to have a, for example, IT administrators to call central people to the people to manage your compute storage. That workload should be more, right? You already saw Sierra moved out to Salesforce. We saw collaboration already moved out. Zoom is not running locally. You already saw SharePoint with knowledge management mode up, right? With a box, drawbacks, you name anything. The next global mode is a SAS workloads, right? I think Workday service running there, but work data will go into the Cloud. I bet at some point Zendesk, ServiceNow, then either they put it on the public Cloud, or they have to create a product and public Cloud. To your point, these public Cloud vendors are at $2 trillion market cap. They're they're bigger than the... I call them nation States. >> Yeah, >> So I'm servicing though. I mean, there's a 2 trillion market gap between Amazon and Azure, I'm not going to compete with them. So I want to take this workload to run it there. So all these vendors, if you see that's where Shandra from Adobe is pushing this right, Adobe, Workday, Anaplan, all the SAS vendors we'll move them into the public Cloud within these vendors. So those workloads need to move out, right? So that all those things will start, then you'll start migrating, but I call your procurement. That's where the RPA comes in. The other thing that we didn't talk about, back to your first question, what is the next 10 years of Cloud will be RPA? That third piece to Cloud is RPA because if you have your systems On-prem, I can't automate them. I have to do a VPN into your house there and then try to automate your systems, or your procurement, et cetera. So all these RPA vendors are still running On-prem, most of them, whether it's UI path automation anywhere. So the Cloud should be where the brain should be. That's what I call them like the octopus analogy, the brain is in the Cloud, the tentacles are everywhere, they should manage it. But if my tentacles have to do a VPN with your house to manage it, I'm always will have failures. So if you look at the why RPA did not have the growth, like the Snowflake, like the Cloud, because they are running it On-prem, most of them still. 80% of the RP revenue is On-prem, running On-prem, that needs to be called clarified. So AI, RPA and the SAS, are the three reasons Cloud will take off. >> Awesome. Thank you for that. Now I want to flip the switch again. You're an investor or a multi-tool player here, but so if you're, let's say you're an ecosystem player, and you're kind of looking at the landscape as you're in an investor, of course you've invested in the Cloud, because the Cloud is where it's at, but you got to be careful as an ecosystem player to pick a spot that both provides growth, but allows you to have a moat as, I mean, that's why I'm really curious to see how Snowflake's going to compete because they're competing with AWS, Microsoft, and Google, unlike, Frank, when he was at service now, he was competing with BMC and with on-prem and he crushed it, but the competitors are much more capable here, but it seems like they've got, maybe they've got a moat with MultiCloud, and that whole data sharing thing, we'll see. But, what about that? Where are the opportunities? Where's that white space? And I know there's a lot of white space, but what's the framework to look at, from an investor standpoint, or even a CEO standpoint, where you want to put place your bets. >> No, very good question, so look, I did something. We talk as an investor in the board with many companies, right? So one thing that says as an investor, if you come back and say, I want to create a next generation Docker or a computer, there's no way nobody's going to invest. So that we can motor off, even if you want to do object storage or a block storage, I mean, I've been an investor board member of so many storage companies, there's no way as an industry, I'll write a check for a compute or storage, right? If you want to create a next generation network, like either NetSuite, or restart Juniper, Cisco, there is no way. But if you come back and say, I want to create a next generation Viper for remote working environments, where AI is at the core, I'm interested in that, right? So if you look at how the packets are dropped, there's no intelligence in either not switching today. The packets come, I do it. The intelligence is not built into the network with AI level. So if somebody comes with an AI, what good is all this NVD, our GPS, et cetera, if you cannot do wire speed, packet inspection, looking at the content and then route the traffic. If I see if it's a video package, but in UN Boston, there's high interview day of they should be loading our package faster, because you are a premium ISP. That intelligence has not gone there. So you will see, and that will be a bad people will happen in the network, switching, et cetera, right? So that is still an angle. But if you work and it comes to platform services, remember when I was at Pivotal and VMware, all models was my boss, that would, yes, as a platform, service is a game already won by the Cloud guys. >> Right. (indistinct) >> Silicon Valley Investors, I don't think you want to invest in past services, right? I mean, you might come with some lecture edition database to do some updates, there could be some game, let's say we want to do a time series database, or some metrics database, there's always some small angle, but the opportunity to go create a national database there it's very few. So I'm kind of eliminating all the black spaces, right? >> Yeah. >> We have the white spaces that comes in is the SAS level. Now to your point, if I'm Amazon, I'm going to compete with Snowflake, I have Redshift. So this is where at some point, these Cloud platforms, I call them aircraft carriers. They're not going to stay on the aircraft carriers, they're going to own the land as well. So they're going to move up to the SAS space. The question is you want to create a SAS service like CRM. They are not going to create a CRM like service, they may not create a sales force and service now, but if you're going to add a data warehouse, I can very well see Azure, Google, and AWS, going to create something to compute a Snowflake. Why would I not? It's so close to my database and data warehouse, I already have Redshift. So that's going to be nightlights, same reason, If you look at Netflix, you have a Netflix and you have Amazon prime. Netflix runs on Amazon, but you have Amazon prime. So you have the same model, you have Snowflake, and you'll have Redshift. The both will help each other, there'll be a... What do you call it? Coexistence will happen. But if you really want to invest, you want to invest in SAS companies. You do not want to be investing in a compliment players. You don't want to a feature. >> Yeah, that's great, I appreciate that perspective. And I wonder, so obviously Microsoft play in SAS, Google's got G suite. And I wonder if people often ask the Andy Jassy, you're going to move up the stack, you got to be an application, a SAS vendor, and you never say never with Atavist, But I wonder, and we were talking to Jerry Chen about this, years ago on theCube, and his angle was that Amazon will play, but they'll play through developers. They'll enable developers, and they'll participate, they'll take their, lick off the cone. So it's going to be interesting to see how directly Amazon plays, but at some point you got Tam expansion, you got to play in that space. >> Yeah, I'll give you an example of knowing, I got acquired by a couple of times by EMC. So I learned a lot from Joe Tucci and Paul Merage over the years. see Paul and Joe, what they did is to look at how 20 years, and they are very close to Boston in your area, Joe, what games did is they used to sell storage, but you know what he did, he went and bought the Apps to drive them. He bought like Legato, he bought Documentum, he bought Captiva, if you remember how he acquired all these companies as a services, he bought VMware to drive that. So I think the good angle that Microsoft has is, I'm a SAS player, I have dynamics, I have CRM, I have SharePoint, I have Collaboration, I have Office 365, MS Teams for users, and then I have the platform as Azure. So I think if I'm Amazon, (indistinct). I got to own the apps so that I can drive this workforce on my platform. >> Interesting. >> Just going to developers, like I know Jerry Chan, he was my peer a BMF. I don't think just literally to developers and that model works in open source, but the open source game is pretty much gone, and not too many companies made money. >> Well, >> Most companies pretty much gone. >> Yeah, he's right. Red hats not bad idea. But it's very interesting what you're saying there. And so, hey, its why Oracle wants to have Tiktok, running on their platform, right? I mean, it's going to. (laughing) It's going to drive that further integration. I wanted to ask you something, you were talking about, you wouldn't invest in storage or compute, but I wonder, and you mentioned some commentary about GPU's. Of course the videos has been going crazy, but they're now saying, okay, how do we expand our Team, they make the acquisition of arm, et cetera. What about this DPU thing, if you follow that, that data processing unit where they're like hyper dis-aggregation and then they reaggregate, and as an offload and really to drive data centric workloads. Have you looked at that at all? >> I did, I think, and that's a good angle. So I think, look, it's like, it goes through it. I don't know if you remember in your career, we have seen it. I used to get Silicon graphics. I saw the first graphic GPU, right? That time GPU was more graphic processor unit, >> Right, yeah, work stations. >> So then become NPUs at work processing units, right? There was a TCP/IP office offloading, if you remember right, there was like vector processing unit. So I think every once in a while the industry, recreated this separate unit, as a co-processor to the main CPU, because main CPU's inefficient, and it makes sense. And then Google created TPU's and then we have the new world of the media GPU's, now we have DPS all these are good, but what's happening is, all these are driving for machine learning, AI for the training period there. Training period Sometimes it's so long with the workloads, if you can cut down, it makes sense. >> Yeah. >> Because, but the question is, these aren't so specialized in nature. I can't use it for everything. >> Yup. >> I want Ideally, algorithms to be paralyzed, I want the training to be paralyzed, I want so having deep use and GPS are important, I think where I want to see them as more, the algorithm, there should be more investment from the NVIDIA's and these guys, taking the algorithm to be highly paralyzed them. (indistinct) And I think that still has not happened in industry yet. >> All right, so we're pretty much out of time, but what are you doing these days? Where are you spending your time, are you still in Stealth, give us a little glimpse. >> Yeah, no, I'm out of the Stealth, I'm actually the CEO of Aisera now, Aisera, obviously I invested with them, but I'm the CEO of Aisero. It's funded by Menlo ventures, Norwest, True, along with Khosla ventures and Ram Shriram is a big investor. Robin's on the board of Google, so these guys, look, we are going out to the collaboration game. How do you automate customer service and support for employees and then users, right? In this whole game, we talked about the Zoom, Slack and MS Teams, that's what I'm spending time, I want to create next generation service now. >> Fantastic. Muddu, I always love having you on you, pull punches, you tell it like it is, that you're a great visionary technologist. Thanks so much for coming on theCube, and participating in our program. >> Dave, it's always a pleasure speaking to you sir. Thank you. >> Okay. Keep it right there, there's more coming from Cuba and Cloud right after this break. (slow music)

(gentle music) >> From the Cube Studios in Palo Alto and Boston, connecting with thought leaders all around the world. This is theCube Conversation. >> Hi everybody, this is Dave Vellante, we're back at Cube on Cloud, and with me is Muddu Sudhakar. He's a long time alum of theCube, a technologist and executive, a serial entrepreneur and an investor. Welcome my friend, good to see you. >> Good to see you, Dave. Pleasure to be with you. Happy elections, I guess. >> Yeah, yeah. So I wanted to start, this work from home, pivot's been amazing, and you've seen the enterprise collaboration explode. I wrote a piece a couple months ago, looking at valuations of various companies, right around the snowflake IPO, I want to ask you about that, but I was looking at the valuations of various companies, at Spotify, and Shopify, and of course Zoom was there. And I was looking at just simple revenue multiples, and I said, geez, Zoom actually looks, might look undervalued, which is crazy, right? And of course the stock went up after that, and you see teams, Microsoft Teams, and Microsoft doing a great job across the board, we've written about that, you're seeing Webex is exploding, I mean, what do you make of this whole enterprise collaboration play? >> No, I think the look there is a trend here, right? So I think this probably trend started before COVID, but COVID is going to probably accelerate this whole digital transformation, right? People are going to work remotely a lot more, not everybody's going to come back to the offices even after COVID, so I think this whole collaboration through Slack, and Zoom, and Microsoft Teams and Webex, it's going to be the new game now, right? Both the video, audio and chat solutions, that's really going to help people like eyeballs. You're not going to spend time on all four of them, right? It's like everyday from a consumer side, you're going to spend time on your Gmail, Facebook, maybe Twitter, maybe Instagram, so like in the consumer side, on your personal life, you have something on the enterprise. The eyeballs are going to be in these platforms. >> Yeah. Well. >> But we're not going to take everything. >> Well, So you are right, there's a permanence to this, and I got a lot of ground to cover with you. And I always like our conversations mood because you tell it like it is, I'm going to stay on that work from home pivot. You know a lot about security, but you've seen three big trends, like mega trends in security, Endpoint, Identity Access Management, and Cloud Security, you're seeing this in the stock prices of companies like CrowdStrike, Zscaler, Okta- >> Right >> Sailpoint- >> Right, I mean, they exploded, as a result of the pandemic, and I think I'm inferring from your comment that you see that as permanent, but that's a real challenge from a security standpoint. What's the impact of Cloud there? >> No, it isn't impact but look, first is all the services required to be Cloud, right? See, the whole ideas for it to collaborate and do these things. So you cannot be running an application, like you can't be running conference and SharePoint oN-Prem, and try to on a Zoom and MS teams. So that's why, if you look at Microsoft is very clever, they went with Office 365, SharePoint 365, now they have MS Teams, so I think that Cloud is going to drive all these workloads that you have been talking about a lot, right? You and John have been saying this for years now. The eruption of Cloud and SAS services are the vehicle to drive this next-generation collaboration. >> You know what's so cool? So Cloud obviously is the topic, I wonder how you look at the last 10 years of Cloud, and maybe we could project forward, I mean the big three Cloud vendors, they're running it like $20 billion a quarter, and they're growing collectively, 35, 40% clips, so we're really approaching a hundred billion dollars for these three. And you hear stats like only 20% of the workloads are in the public Cloud, so it feels like we're just getting started. How do you look at the impact of Cloud on the market, as you say, the last 10 years, and what do you expect going forward? >> No, I think it's very fascinating, right? So I remember when theCube, you guys are talking about 10 years back, now it's been what? More than 10 years, 15 years, since AWS came out with their first S3 service back in 2006. >> Right. >> Right? so I think look, Cloud is going to accelerate even more further. The areas is going to accelerate is for different reasons. I think now you're seeing the initial days, it's all about startups, initial workloads, Dev test and QA test, now you're talking about real production workloads are moving towards Cloud, right? Initially it was backup, we really didn't care for backup they really put there. Now you're going to have Cloud health primary services, your primary storage will be there, it's not going to be an EMC, It's not going to be a ETAP storage, right? So workloads are going to shift from the business applications, and this business App again, will be running on the Cloud, and I'll make another prediction, make customer service and support. Customer service and support, again, we should be running on the Cloud. You're not want to run the thing on a Dell server, or an IBM server, or an HP server, with your own hosted environment. That model is not because there's no economies of scale. So to your point, what will drive Cloud for the next 10 years, will be economies of scale. Where can you take the cost? How can I save money? If you don't move to the Cloud, you won't save money. So all those workloads are going to go to the Cloud are people who really want to save, like global gradual custom, right? If you stay on the ASP model, a hosted, you're not going to save your costs, your costs will constantly go up from a SAS perspective. >> So that doesn't bode well for all the On-prem guys, and you hear a lot of the vendors that don't own a Cloud that talk about repatriation, but the numbers don't support that. So what do those guys do? I mean, they're talking multi-Cloud, of course they're talking hybrid, that's IBM's big play, how do you see it? >> I think, look, see there, to me, multi-Cloud makes sense, right? You don't want one vendor that you never want to get, so having Amazon, Microsoft, Google, it gives them a multi-Cloud. Even hybrid Cloud does make sense, right? There'll be some workloads. It's like, we are still running On-prem environment, we still have mainframe, so it's never going to be a hundred percent, but I would say the majority, your question is, can we get to 60, 70, 80% workers in the next 10 years? I think you will. I think by 2025, more than 78% of the Cloud Migration by the next five years, 70% of workload for enterprise will be on the Cloud. The remaining 25, maybe Hybrid, maybe On-prem, but I get panics, really doesn't matter. You have saved and part of your business is running on the Cloud. That's your cost saving, that's where you'll see the economies of scale, and that's where all the growth will happen. >> So square the circle for me, because again, you hear the stat on the IDC stat, IBM Ginni Rometty puts it out there a lot that only 20% of the workloads are in the public Cloud, everything else is On-prem, but it's not a zero sum game, right? I mean the Cloud native stuff is growing like crazy, the On-prem stuff is flat to down, so what's going to happen? When you talk about 70% of the workloads will be in the Cloud, do you see those mission critical apps and moving into the car, I mean the insurance companies going to put their claims apps in the Cloud, or the financial services companies going to put their mission critical workloads in the Cloud, or they just going to develop new stuff that's Cloud native that is sort of interacts with the On-prem. How do you see that playing out? >> Yeah, no, I think absolutely, I think a very good question. So two things will happen. I think if you take an enterprise, right? Most businesses what they'll do is the workloads that they should not be running On-prem, they'll move it up. So obviously things like take, as I said, I use the word SharePoint, right? SharePoint and conference, all the knowledge stuff is still running on people's data centers. There's no reason. I understand, I've seen statistics that 70, 80% of the On-prem for SharePoint will move to SharePoint on the Cloud. So Microsoft is going to make tons of money on that, right? Same thing, databases, right? Whether it's CQL server, whether there is Oracle database, things that you are running as a database, as a Cloud, we move to the Cloud. Whether that is posted in Oracle Cloud, or you're running Oracle or Mongo DB, or Dynamo DB on AWS or SQL server Microsoft, that's going to happen. Then what you're talking about is really the App concept, the applications themselves, the App server. Is the App server is going to run On-prem, how much it's going to laureate outside? There may be a hybrid Cloud, like for example, Kafka. I may use a Purse running on a Kafka as a service, or I may be using Elasticsearch for my indexing on AWS or Google Cloud, but I may be running my App locally. So there'll be some hybrid place, but what I would say is for every application, 75% of your Comprende will be on the Cloud. So think of it like the Dev. So even for the On-prem app, you're not going to be a 100 percent On-prem. The competent, the billing materials will move to the Cloud, your Purse, your storage, because if you put it On-prem, you need to add all this, you need to have all the whole things to buy it and hire the people, so that's what is going to happen. So from a competent perspective, 70% of your bill of materials will move to the Cloud, even for an On-prem application. >> So, Of course, the susification of the industry in the last decade and in my three favorite companies last decade, you've worked for two of them, Tableau, ServiceNow, and Splunk. I want to ask you about those, but I'm interested in the potential disruption there. I mean, you've got these SAS companies, Salesforce of course is another one, but they can't get started in 1999. What do you see happening with those? I mean, we're basically building these sort of large SAS, platforms, now. Do you think that the Cloud native world that developers can come at this from an angle where they can disrupt those companies, or are they too entrenched? I mean, look at service now, I mean, I don't know, $80 billion market capital where they are, they bigger than Workday, I mean, just amazing how much they've grown and you feel like, okay, nothing can stop them, but there's always disruption in this industry, what are your thoughts on that. >> Not very good with, I think there'll be disrupted. So to me actually to your point, ServiceNow is now close to a 100 billion now, 95 billion market coverage, crazy. So from evaluation perspective, so I think the reason they'll be disrupted is that the SAS vendors that you talked about, ServiceNow, and all this plan, most of these services, they're truly not a multi-tenant or what do you call the Cloud Native. And that is the Accenture. So because of that, they will not be able to pass the savings back to the enterprises. So the cost economics, the economics that the Cloud provides because of the multi tenancy ability will not. The second reason there'll be disrupted is AI. So far, we talked about Cloud, but AI is the core. So it's not really Cloud Native, Dave, I look at the AI in a two-piece. AI is going to change, see all the SAS vendors were created 20 years back, if you remember, was an operator typing it, I don't respond administered we'll type a Splunk query. I don't need a human to type a query anymore, system will actually find it, that's what the whole security game has changed, right? So what's going to happen is if you believe in that, that AI, your score will disrupt all the SAS vendors, so one angle SAS is going to have is a Cloud. That's where you make the Cloud will take up because a SAS application will be Cloudified. Being SAS is not Cloud, right? Second thing is SAS will be also, I call it, will be AI-fied. So AI and machine learning will be trying to drive at the core so that I don't need that many licenses. I don't need that many humans. I don't need that many administrators to manage, I call them the tuners. Once you get a driverless car, you don't need a thousand tuners to tune your Tesla, or Google Waymo car. So the same philosophy will happen is your Dev Apps, your administrators, your service management, people that you need for service now, and these products, Zendesk with AI, will tremendously will disrupt. >> So you're saying, okay, so yeah, I was going to ask you, won't the SAS vendors, won't they be able to just put, inject AI into their platforms, and I guess I'm inferring saying, yeah, but a lot of the problems that they're solving, are going to go away because of AI, is that right? And automation and RPA and things of that nature, is that right? >> Yes and no. So I'll tell you what, sorry, you have asked a very good question, let's answer, let me rephrase that question. What you're saying is, "Why can't the existing SAS vendors do the AI?" >> Yes, right. >> Right, >> And there's a reason they can't do it is their pricing model is by number of seats. So I'm not going to come to Dave, and say, come on, come pay me less money. It's the same reason why a board and general lover build an electric car. They're selling 10 million gasoline cars. There's no incentive for me, I'm not going to do any AI, I'm going to put, I'm not going to come to you and say, hey, buy me a hundred less license next year from it. So that is one reason why AI, even though these guys do any AI, it's going to be just so I call it, they're going to, what do you call it, a whitewash, kind of like you put some paint brush on it, trying to show you some AI you did from a marketing dynamics. But at the core, if you really implement the AI with you take the driver out, how are you going to change the pricing model? And being a public company, you got to take a hit on the pricing model and the price, and it's going to have a stocking part. So that, to your earlier question, will somebody disrupt them? The person who is going to disrupt them, will disrupt them on the pricing model. >> Right. So I want to ask you about that, because we saw a Snowflake, and it's IPO, we were able to pour through its S-1, and they have a different pricing model. It's a true Cloud consumption model, Whereas of course, most SAS companies, they're going to lock you in for at least one year term, maybe more, and then, you buy the license, you got to pay X. If you, don't use it, you still got to pay for it. Snowflake's different, actually they have a different problem, that people are using it too much and the sea is driving the CFO crazy because the bill is going up and up and up, but to me, that's the right model, It's just like the Amazon model, if you can justify it, so how do you see the pricing, that consumption model is actually, you're seeing some of the On-prem guys at HPE, Dell, they're doing as a service. They're kind of taking a page out of the last decade SAS model, so I think pricing is a real tricky one, isn't it? >> No, you nailed it, you nailed it. So I think the way in which the Snowflake there, how the disruptors are data warehouse, that disrupted the open source vendors too. Snowflake distributed, imagine the playbook, you disrupted something as the $ 0, right? It's an open source with Cloudera, Hortonworks, Mapper, that whole big data that you want me to, or that market is this, that disrupting data warehouses like Netezza, Teradata, and the charging more money, they're making more money and disrupting at $0, because the pricing models by consumption that you talked about. CMT is going to happen in the service now, Zen Desk, well, 'cause their pricing one is by number of seats. People are going to say, "How are my users are going to ask?" right? If you're an employee help desk, you're back to your original health collaborative. I may be on Slack, I could be on zoom, I'll maybe on MS Teams, I'm going to ask by using usage model on Slack, tools by employees to service now is the pricing model that people want to pay for. The more my employees use it, the more value I get. But I don't want to pay by number of seats, so the vendor, who's going to figure that out, and that's where I look, if you know me, I'm right over as I started, that's what I've tried to push that model look, I love that because that's the core of how you want to change the new game. >> I agree. I say, kill me with that problem, I mean, some people are trying to make it a criticism, but you hit on the point. If you pay more, it's only because you're getting more value out of it. So I wanted to flip the switch here a little bit and take a customer angle. Something that you've been on all sides. And I want to talk a little bit about strategies, you've been a strategist, I guess, once a strategist, always a strategist. How should organizations be thinking about their approach to Cloud, it's cost different for different industries, but, back when the cube started, financial services Cloud was a four-letter word. But of course the age of company is going to matter, but what's the framework for figuring out your Cloud strategy to get to your 70% and really take advantage of the economics? Should I be Mono Cloud, Multi-Cloud, Multi-vendor, what would you advise? >> Yeah, no, I mean, I mean, I actually call it the tech stack. Actually you and John taught me that what was the tech stack, like the lamp stack, I think there is a new Cloud stack needs to come, and that I think the bottomline there should be... First of all, anything with storage should be in the Cloud. I mean, if you want to start, whether you are, financial, doesn't matter, there's no way. I come from cybersecurity side, I've seen it. Your attackers will be more with insiders than being on the Cloud, so storage has to be in the Cloud and encompass compute whoever it is. If you really want to use containers and Kubernetes, it has to be in the public Cloud, leverage that have the computer on their databases. That's where it can be like if your data is so strong, maybe run it On-prem, maybe have it on a hosted model for when it comes to database, but there you have a choice between hybrid Cloud and public Cloud choice. Then on top when it comes to App, the app itself, you can run locally or anywhere, the App and database. Now the areas that you really want to go after to migrate is look at anything that's an enterprise workload that you don't need people to manage it. You want your own team to move up in the career. You don't want thousand people looking at... you don't want to have a, for example, IT administrators to call central people to the people to manage your compute storage. That workload should be more, right? You already saw Sierra moved out to Salesforce. We saw collaboration already moved out. Zoom is not running locally. You already saw SharePoint with knowledge management mode up, right? With a box, drawbacks, you name anything. The next global mode is a SAS workloads, right? I think Workday service running there, but work data will go into the Cloud. I bet at some point Zendesk, ServiceNow, then either they put it on the public Cloud, or they have to create a product and public Cloud. To your point, these public Cloud vendors are at $2 trillion market cap. They're they're bigger than the... I call them nation States. >> Yeah, >> So I'm servicing though. I mean, there's a 2 trillion market gap between Amazon and Azure, I'm not going to compete with them. So I want to take this workload to run it there. So all these vendors, if you see that's where Shandra from Adobe is pushing this right, Adobe, Workday, Anaplan, all the SAS vendors we'll move them into the public Cloud within these vendors. So those workloads need to move out, right? So that all those things will start, then you'll start migrating, but I call your procurement. That's where the RPA comes in. The other thing that we didn't talk about, back to your first question, what is the next 10 years of Cloud will be RPA? That third piece to Cloud is RPA because if you have your systems On-prem, I can't automate them. I have to do a VPN into your house there and then try to automate your systems, or your procurement, et cetera. So all these RPA vendors are still running On-prem, most of them, whether it's UI path automation anywhere. So the Cloud should be where the brain should be. That's what I call them like the octopus analogy, the brain is in the Cloud, the tentacles are everywhere, they should manage it. But if my tentacles have to do a VPN with your house to manage it, I'm always will have failures. So if you look at the why RPA did not have the growth, like the Snowflake, like the Cloud, because they are running it On-prem, most of them still. 80% of the RP revenue is On-prem, running On-prem, that needs to be called clarified. So AI, RPA and the SAS, are the three reasons Cloud will take off. >> Awesome. Thank you for that. Now I want to flip the switch again. You're an investor or a multi-tool player here, but so if you're, let's say you're an ecosystem player, and you're kind of looking at the landscape as you're in an investor, of course you've invested in the Cloud, because the Cloud is where it's at, but you got to be careful as an ecosystem player to pick a spot that both provides growth, but allows you to have a moat as, I mean, that's why I'm really curious to see how Snowflake's going to compete because they're competing with AWS, Microsoft, and Google, unlike, Frank, when he was at service now, he was competing with BMC and with on-prem and he crushed it, but the competitors are much more capable here, but it seems like they've got, maybe they've got a moat with MultiCloud, and that whole data sharing thing, we'll see. But, what about that? Where are the opportunities? Where's that white space? And I know there's a lot of white space, but what's the framework to look at, from an investor standpoint, or even a CEO standpoint, where you want to put place your bets. >> No, very good question, so look, I did something. We talk as an investor in the board with many companies, right? So one thing that says as an investor, if you come back and say, I want to create a next generation Docker or a computer, there's no way nobody's going to invest. So that we can motor off, even if you want to do object storage or a block storage, I mean, I've been an investor board member of so many storage companies, there's no way as an industry, I'll write a check for a compute or storage, right? If you want to create a next generation network, like either NetSuite, or restart Juniper, Cisco, there is no way. But if you come back and say, I want to create a next generation Viper for remote working environments, where AI is at the core, I'm interested in that, right? So if you look at how the packets are dropped, there's no intelligence in either not switching today. The packets come, I do it. The intelligence is not built into the network with AI level. So if somebody comes with an AI, what good is all this NVD, our GPS, et cetera, if you cannot do wire speed, packet inspection, looking at the content and then route the traffic. If I see if it's a video package, but in UN Boston, there's high interview day of they should be loading our package faster, because you are a premium ISP. That intelligence has not gone there. So you will see, and that will be a bad people will happen in the network, switching, et cetera, right? So that is still an angle. But if you work and it comes to platform services, remember when I was at Pivotal and VMware, all models was my boss, that would, yes, as a platform, service is a game already won by the Cloud guys. >> Right. (indistinct) >> Silicon Valley Investors, I don't think you want to invest in past services, right? I mean, you might come with some lecture edition database to do some updates, there could be some game, let's say we want to do a time series database, or some metrics database, there's always some small angle, but the opportunity to go create a national database there it's very few. So I'm kind of eliminating all the black spaces, right? >> Yeah. >> We have the white spaces that comes in is the SAS level. Now to your point, if I'm Amazon, I'm going to compete with Snowflake, I have Redshift. So this is where at some point, these Cloud platforms, I call them aircraft carriers. They're not going to stay on the aircraft carriers, they're going to own the land as well. So they're going to move up to the SAS space. The question is you want to create a SAS service like CRM. They are not going to create a CRM like service, they may not create a sales force and service now, but if you're going to add a data warehouse, I can very well see Azure, Google, and AWS, going to create something to compute a Snowflake. Why would I not? It's so close to my database and data warehouse, I already have Redshift. So that's going to be nightlights, same reason, If you look at Netflix, you have a Netflix and you have Amazon prime. Netflix runs on Amazon, but you have Amazon prime. So you have the same model, you have Snowflake, and you'll have Redshift. The both will help each other, there'll be a... What do you call it? Coexistence will happen. But if you really want to invest, you want to invest in SAS companies. You do not want to be investing in a compliment players. You don't want to a feature. >> Yeah, that's great, I appreciate that perspective. And I wonder, so obviously Microsoft play in SAS, Google's got G suite. And I wonder if people often ask the Andy Jassy, you're going to move up the stack, you got to be an application, a SAS vendor, and you never say never with Atavist, But I wonder, and we were talking to Jerry Chen about this, years ago on theCube, and his angle was that Amazon will play, but they'll play through developers. They'll enable developers, and they'll participate, they'll take their, lick off the cone. So it's going to be interesting to see how directly Amazon plays, but at some point you got Tam expansion, you got to play in that space. >> Yeah, I'll give you an example of knowing, I got acquired by a couple of times by EMC. So I learned a lot from Joe Tucci and Paul Merage over the years. see Paul and Joe, what they did is to look at how 20 years, and they are very close to Boston in your area, Joe, what games did is they used to sell storage, but you know what he did, he went and bought the Apps to drive them. He bought like Legato, he bought Documentum, he bought Captiva, if you remember how he acquired all these companies as a services, he bought VMware to drive that. So I think the good angle that Microsoft has is, I'm a SAS player, I have dynamics, I have CRM, I have SharePoint, I have Collaboration, I have Office 365, MS Teams for users, and then I have the platform as Azure. So I think if I'm Amazon, (indistinct). I got to own the apps so that I can drive this workforce on my platform. >> Interesting. >> Just going to developers, like I know Jerry Chan, he was my peer a BMF. I don't think just literally to developers and that model works in open source, but the open source game is pretty much gone, and not too many companies made money. >> Well, >> Most companies pretty much gone. >> Yeah, he's right. Red hats not bad idea. But it's very interesting what you're saying there. And so, hey, its why Oracle wants to have Tiktok, running on their platform, right? I mean, it's going to. (laughing) It's going to drive that further integration. I wanted to ask you something, you were talking about, you wouldn't invest in storage or compute, but I wonder, and you mentioned some commentary about GPU's. Of course the videos has been going crazy, but they're now saying, okay, how do we expand our Team, they make the acquisition of arm, et cetera. What about this DPU thing, if you follow that, that data processing unit where they're like hyper dis-aggregation and then they reaggregate, and as an offload and really to drive data centric workloads. Have you looked at that at all? >> I did, I think, and that's a good angle. So I think, look, it's like, it goes through it. I don't know if you remember in your career, we have seen it. I used to get Silicon graphics. I saw the first graphic GPU, right? That time GPU was more graphic processor unit, >> Right, yeah, work stations. >> So then become NPUs at work processing units, right? There was a TCP/IP office offloading, if you remember right, there was like vector processing unit. So I think every once in a while the industry, recreated this separate unit, as a co-processor to the main CPU, because main CPU's inefficient, and it makes sense. And then Google created TPU's and then we have the new world of the media GPU's, now we have DPS all these are good, but what's happening is, all these are driving for machine learning, AI for the training period there. Training period Sometimes it's so long with the workloads, if you can cut down, it makes sense. >> Yeah. >> Because, but the question is, these aren't so specialized in nature. I can't use it for everything. >> Yup. >> I want Ideally, algorithms to be paralyzed, I want the training to be paralyzed, I want so having deep use and GPS are important, I think where I want to see them as more, the algorithm, there should be more investment from the NVIDIA's and these guys, taking the algorithm to be highly paralyzed them. (indistinct) And I think that still has not happened in industry yet. >> All right, so we're pretty much out of time, but what are you doing these days? Where are you spending your time, are you still in Stealth, give us a little glimpse. >> Yeah, no, I'm out of the Stealth, I'm actually the CEO of Aisera now, Aisera, obviously I invested with them, but I'm the CEO of Aisero. It's funded by Menlo ventures, Norwest, True, along with Khosla ventures and Ram Shriram is a big investor. Robin's on the board of Google, so these guys, look, we are going out to the collaboration game. How do you automate customer service and support for employees and then users, right? In this whole game, we talked about the Zoom, Slack and MS Teams, that's what I'm spending time, I want to create next generation service now. >> Fantastic. Muddu, I always love having you on you, pull punches, you tell it like it is, that you're a great visionary technologist. Thanks so much for coming on theCube, and participating in our program. >> Dave, it's always a pleasure speaking to you sir. Thank you. >> Okay. Keep it right there, there's more coming from Cuba and Cloud right after this break. (slow music)

>> 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)

>> From theCube studios in Paloalto and Boston, connecting with thought leaders all around the world, this is a Cube conversation. >> Hi, I'm Stu Miniman, and welcome to this special Cube conversation. I'm coming to you from our Boston area studio, and theCube is really mostly about people, about network, and so we're going to have a focus in, we're going to talk about some technology, we're also going to talk a little bit about careers. I want to welcome to the program, I've got two first-time guests on the program. First, Mark Zbikowski. Probably butchered that badly, Mark, sorry, technical advisor, and Blue Gaston. Uh, Gaston. Boy, I'm doing horrible with names here. Software engineer, you're both with Polyverse. But, you know, my last name's Miniman, it has been butchered a million times. But Mark, and Blue, thank you so much for joining us. >> You're welcome. Our pleasure. >> Yes. >> All right. So one of you I've read a lot about online and the other one is Mark, go to the Wikipedia page, stuff like that. So we'll get to that too. So, Blue, maybe start with you, give us a little bit about your background. >> Yeah, so I work at Polyverse now, a cybersecurity startup. But actually I got my undergraduate degree in Philosophy, and from there, kind of just like, what am I going to do with a philosophy degree? And it just weirdly was like a natural transition. I was like, oh, computer science. And kind of the logical, like the technical version of philosophy. So got my master's in philosophy and now, or not philosophy, in computer science, and now have been working at Polyverse. I started as an intern and they hired me on, I think after a month, they were like, no, we want you full-time. So that was cool and I've loved it. So I'm starting off my story, that's kind of where my kick-off point is. >> Awesome. So, and Mark, first of all, you have to give us the connection between yourself and Blue, and a little bit surprising that she waited so long to go into the computer business. >> Uh, okay, I'm her stepfather. It's not surprising that she, you know, wanted to go into computer science. She's got lots of aptitude for it. She was just on a career path and an education path that was primarily logic, analysis, which is basically what we do in computer science. >> All right. So Mark, if you could just give our audience a little bit of a thumbnail sketch as to your background in the tech industry, and it's a storied one. >> Uh, okay. I was, I think, employee number 55 at Microsoft, when I started back in 1981. The first task that they gave me was to work on something that ended up becoming MS-DOS. I worked on MS-DOS for a long time, about five and a half years, worked on a number of other operating systems at Microsoft, ending up with being one of the initial development managers and architects for Windows. I was responsible for all file storage. And I was there for about 26 years. >> Yeah, you know, interesting, you know, when you look on the Wikipedia page, you were the third employee that reached the 25-year milestone. Some guy, Bill Gates, and Steve Balmer, were the first two to reach that milestone. So, you know, quite impressive. I think back, back when I learned computers, it was programming, and you know, today it's coding, and things are quite different there. But, Mark, you were also, you're noted as one of the early hackers there, so what does that mean to you, how have you seen that's been changing? Polyverse is in the cybersecurity realm, so would love your kind of viewpoint on just hacking in general. >> Oh, the early days, well my hacking started pretty much when I was in eighth or ninth grade back in Detroit. We had access to an academic operating system called MTS by way of Wayne State University. I grew up in, just in the suburbs of Detroit. And we had access to it, and for me Excuse me. Hacking at the time was all about trying to understand and learn stuff that was arcane and hidden and mysterious. Figuring out how, for example, password encryption algorithms worked, figuring out how operating systems worked, because at the time, there were very few organized textbooks about how to construct operating systems. Even though operating systems had been around for 20 years. So my early, earliest stuff was in basically, finding holes in security at MTS, and that's how I started, in what they would say "hacking", but it was very innocent, it was very, let's see what we can do! As opposed to, let's extract information, let's go and ransom people's data for bitcoin, which is, you know, I think, a wrong direction to go. >> Yeah. I'm curious your thoughts as the decades have progressed, you know, hacking today, what's your take on, you know, there's the white hats and the black hats, and everything in between. >> Uh, it's kind of an arms race. (laughs) Everything that the white hats will throw up, the black hats will eventually attack to some degree. Social engineering is sort of the ultimate way that people have been getting around, you know, software protections. I think it's unfortunate that there is such a financial reward to the black hat side of things, as counter to one's ethics. I think there's a lot of slippery slopes involved, in terms of, you know, boy, these companies shouldn't be making money, so I deserve my bit. I think that it's much better that, you know, people should come at this from an intellectual, you know, exploration standpoint, rather than an exploitative. But that's the nature of the world. >> Yeah, well, Blue, maybe we can help connect the dots towards what you both do at Polyverse. You mentioned you started as an intern, and I loved the article that talked about this. Well, you know, you're going to be an intern. Can you fix the internet for us? And you did some things to help, you know, help stop some of that malicious hacking. >> Yeah, I, that was crazy. I was very intimidated when I heard that, you're going to be fixing the internet. What I've been working at the company, which is different from our flagship product, but kind of in the same vein, is to stop malicious php javascript code execution. So that's what they came in, that's how they prefaced that problem to me. It was, you're going to go fix the internet. Um, and it was crazy. It was really cool and surprisingly, a lot of philosophy that goes into the way we look at our problem-solving at Polyverse, and how we tackle problems, but of course, I have my Jedi master Mark over here, and I was constantly, "What do you think about this? Isn't this crazy? "Like, look at how Polyverse is attacking this." And I think finally I broke him down, and I was like, come join. Come jump in, and you be the foresight, and you tell us what we're going to do in a year or two. And I convinced him, and now, he's, he's with us too. >> Excellent. So, Mark, tell us a little bit about, you know, more about Polyverse, your role there. In the industry there's a lot of talk about, you know, lots of money obviously gets spent on cybersecurity, but it's still a major challenge in the industry. So what's your role there and how's Polyverse helping to attack that? >> Well, my title is Technology Advisor, and I'm one of a small collection of people who have pretty wide-ranging expertise across operating systems, networks, compilers, languages, development tools, all of that. And our goal is, you know, my role, as well the other Jedi masters, is to take a look at what Polyverse is doing at present, try to figure out where we need to go, try to figure out what the next set of challenges are, use our broad experience and knowledge of the computing milieu, and try to figure out what are the tough issues we need to face? We make some progress on those tough issues, and then turn everything over for the mainline Polyverse development staff to bring it to reality. We're not like researchers, we're much more into the product planning side of things, but product planning in, I hate to use this word, but in a visionary sense. (Blue laughs) >> Yeah, no, it's-- >> We look for the vision. We're not visionaries. We look for the vision. >> You're a visionary, Mark. Admit it. >> Excellent. Well, I do love the, you know, Jedi analogy there. When you look at, I'm curious to your thoughts, both of you, you know, some of the real challenges and opportunities facing the cybersecurity industry. It's a large financial industry company, they'll spend a billion dollars and, you know, does that make them secure? Well, at least they've done what they can and they're pushing enough pieces. But, you know, fundamentally, we understand that this is such a huge issue. >> I think-- >> Blue? >> Well, (laughs) I can try to answer. I think Polyverse recognizes that as well. So we're trying to create new solutions, that instead of just being compliant and checking the boxes, we're actually trying to create systems and products that will stop attacks from actually working. Rather than being reactive and being responsive, we're trying to build these systems out where the attacks just don't work as they're currently designed. And I think we, you know, and to do so in an easy-to-deploy, time-saving kind of way is definitely our goal. Rather than the status quo and, you know, we're fighting inertia, we're trying to, to change that narrative in a really meaningful way. >> Thanks, Blue. Mark, do you have some comments you can add to that? >> Once we started taking individual computers and hooking them up to the internet, where they can communicate fairly freely with each other, and by intent communicate fairly freely with each other, by design, by intent, all of a sudden that opened us to just a wide range of malicious behavior, from being DoS'd, to leaking passwords, et cetera. There are, there's layers and layers that one can do to mitigate these problems. From IT operational manuals to buzz-testing your API, to best practices, it's a, there's a long list. And every bit, every piece of it is important. You need to secure your passwords before you can do anything else. You need to make sure that there's a firewall in your system be fore you go and start, before you even start thinking about doing things like, like what's goin on with what we're doing at Polyverse. It's a, like I said, there's a wide range of tools that people need, that people use, that people spend money on today. Polyverse has got a very unique perspective on how to go and extend this. We, it's a, it's very pragmatic, you know, the realization is that these attackers are going to keep attacking, and they're going to exploit certain features that, despite everyone's best intentions, aren't covered, and we have found a rather unique and novel way to prevent people from doing it. Is it going to solve everything? No. There's still, there's all these other early layers that need to be taken care of first, before the more sophisticated tools that, for example, that Polyverse has or that other companies have. >> Great. Well, Blue, you talked a little bit about it, but, you know, love your, what you've found, you know, working together as a family dynamic here. You know, specifically. >> Um, (laughs) I think it's really cool. What's the best, I'll say this, is when, I always like asking Mark his opinion, because why wouldn't I? The brain that guy has, and just the experience, he can add so much. Every once in a while, I'll go, and I'll say, you know, oh, this is what I'm working on, and here's what I'm kind of thinking, and he'll say, oh, yeah, well what about this? And I'll actually get to explain something to him. And I got to tell you, that feels really good. Is when I get to say, oh, well, actually it looks like this, and this was my plan, and he's like, oh yeah, definitely. And I get that validation, which is really cool. And I can, you know, drive to his house and bug him whenever I want to. I know where he lives, so if I'm really stuck, or just want to bounce ideas off of him, it's really cool. It's really cool, and I, you know, strong-armed, not strong-armed, I enticed him to come and join Polyverse just by the cool things that we're doing, and I think that's cool too. To now be able to work on something together. >> Yeah, and Mark, sounds like you're learning some things from Blue. Give us your side of that relationship. >> Well, it's a great relationship. Blue, um, Blue never hesitates to challenge. (Blue laughs) >> Blue: Okay. And that, I'm saying that in a very positive sense. Um, you know, she'll come up, every so often I'll get a text from her that says, "Help!" >> Oh my god! (laughing) >> Yes. Sorry. At least I'm not showing it. (laughs) But it's great. And we get together and we talk about stuff, and she says, you know, here's the problem I'm facing, and I'll ask her about it and she gets to go and teach me about what her problem is. I'm a big fan of teaching. I think one of the frustrations that Blue has is I almost never give her the answer when she asks a question. (laughs) >> Not even when I was in school, >> Yeah, not even when you were in school. I was always asking the questions and leading her to the answer rather than just giving it to her. >> Or saying, well why don't we sit down and I'll teach you how to implement knowledge. Just like, oh my god. What are you doing? >> Yeah. So, yeah, I'm a big fan of teaching and learning by way of teaching. One of the things I do is I'm an affiliate with the University of Washington, and I teach every year one quarter of their Operating Systems class. And I love teaching, I love seeing the light go on. But every year, when I'm teaching a class that I know pretty well, I learn something new. By a question the student asks, or by reading a paper that I'm asking the students to read, I learn something new just about every year. And so having Blue teach me is a way that I get to learn, but I think in the process Blue also gets to learn as well. You know, in the process of teaching me. >> Yeah, well, that's such a great point. All right, want to give you both the final word on what's exciting you, what draws you to working in the cybersecurity industry. >> Um, I'll start. (laughs) So when I started at Polyverse, I actually got to, as an intern, own my own product. And in, I think, less than a month now, we're actually officially releasing that product, polyscripting. Officially, like Marketing is coming up with materials for it, and that was right out of school is when I started on this project, so it's kind of like a big deal for me. You know, I've owned the project, I'd say like 90% of it, over the last year or two, and now I get to see it come into fruition. So that's really exciting to me. Um, you know, that's exciting. So I'm excited about that, I'm excited about what Polyverse is doing in general. So, yeah. >> And Mark? >> Yeah. It's great working in a startup, it's great working with a bunch of very, very bright, energetic people. For me, contributing to that environment is extremely valuable. Helping Polyverse out, they're, you know, cybersecurity is problem. Trying to come up with good, effective solutions that are really pragmatic in terms of, you know, we're not going to solve every problem, but here's a great little space that we're going to solve all the problems in. That's, there's a huge appeal to that for me. >> Well, Mark and Blue, thank you so much for joining. Appreciate you sharing some of the personal as well as the professional journeys that you've both been on. Thanks so much. >> Yeah, thank you >> Yeah, you're welcome. >> All right. Thank you for watching theCube. I'm Stu Miniman. Thanks for watching. (soothing music)

[Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] hello and welcome to the Palo Alto students leaky bomb John free we're here for a special cube conversation and special report big news from VMware to discuss the launch of the availability of vSphere seven I'm here with Chris Prasad SVP and general manager of the vSphere business and cloud platform business unit and Paul Turner VP a VP of Product Management guys thanks for coming in and talking about the big news thank you for having us you guys announced some interesting things back in march around containers kubernetes and the vSphere there's just about the hard news what's being announced today we are announcing the general availability of vSphere 7 John it's by far the biggest release that we have done in the last 10 years we previewed it this project Pacific a few months ago with this release we are putting kubernetes native support into the vSphere platform what that allows us to do is give customers the ability to run both modern applications based on kubernetes and containers as well as traditional VM based applications on the same platform and it also allows the IT departments to provide their developers cloud operating model using the VMware cloud foundation that is powered by this release this is a key part of our tansu portfolio of solutions and products that we announced this year and it is targeted fully at the developers of modern applications and the specific news is vSphere 7 is general available you know really vSphere 7 yes ok that so let's on the trend line here the relevance is what what's the big trend line that this is riding obviously we saw the announcements at VMworld last year and throughout the year there's a lot of buzz Pat Keller says there's a big wave here with kubernetes what does this announcement mean for you guys with the marketplace trend yeah so what kubernetes is really about is people trying to have an agile operation they're trying to modernize their IT applications and they the best way to do that is build off your current platform expanded and and make it a an innovative a agile platform for you to run kubernetes applications and VM applications together I'm not just that customers are also looking at being able to manage a hybrid cloud environment both on Prem and public cloud together so they want to be able to evolve and modernize their application stack but modernize their infrastructure stack which means hybrid cloud operations with innovative applications kubernetes or container based applications and VMs what's excited about this trend Chris we were talking with us at VMworld last year and we've had many conversations around cloud native but you're seeing cloud native becoming the operating model for modern business I mean this is really the move to the cloud if you look at the successful enterprises even the suppliers the on-premises piece if not move to the cloud native marketplace technologies the on premise isn't effective so it's not so much on premises going away we know it's not but it's turning into cloud native this is the move to the cloud generally this is a big wave yeah absolutely I mean if Jon if you think about it on-premise we have significant market share by far the leader in the market and so what we are trying to do with this is to allow customers to use the current platform they are using but bring their application modern application development on top of the same platform today customers tend to set up stacks which are different right so you have a kubernetes stack you have a stack for the traditional applications you have operators and administrators who are specialized in kubernetes on one side and you have the traditional VM operators on the other side with this move what we are saying is that you can be on the same common platform you can have the same administrators who are used to administering the environment that you already had and at the same time offer the developers what they like which is kubernetes dial-tone that they can come and deploy their applications on the same platform that you use for traditional applications yep all Pat said Cuba is gonna be the dial tone on the internet most Millennials might even know what dial tone is but a buddy mince is is that's the key fabric there's gonna work a straight and you know we've heard over the years skill gap skill gap not a lot of skills out there but when you look at the reality of skills gap it's really about skills gaps and shortages not enough people most CIOs and chief and major security are so that we talk to you say I don't want to fork my development teams I don't want to have three separate teams so I don't have to I want to have automation I want an operating model that's not gonna be fragmented this kind of speaks to this whole idea of you know interoperability and multi-cloud this seems to be the next big way behind ibrid I think it I think it is the next big wake the the thing that customers are looking for is a cloud operating model they like the ability for developers to be able to invoke new services on demand in a very agile way and we want to bring that cloud operating model to on-prem to Google cloud to Amazon Cloud to Microsoft cloud to any of our VC peepee partners you get the same cloud operating experience and it's all driven by a kubernetes based dial-tone it's effective and available within this platform so by bringing a single infrastructure platform that can one run in this hybrid manner and give you the cloud operating agility that developers are looking for that's what's key in version seven says Pat Kelsey near me when he says dial tone of the internet kubernetes does he mean always on or what does he mean specifically just that it's always available what's what says what's the meaning behind that that phrase the the first thing he means is that developers can come to the infrastructure which is the VMware cloud foundation and be able to work with a set of api's that are kubernetes api s-- so developers understand that they're looking for that they understand that dial tone right and you come to our VMware cloud foundation that runs across all these clouds you get the same API said that you can use to deploy their application okay so let's get into the value here of vSphere seven how does VMware vSphere 7 specifically help customers isn't just bolting on kubernetes to vSphere some will say is it that's simple or are you running product management no it's not that easy it's yeah some people say hey just Bolton kubernetes on vSphere it's it's not that easy so so one of the things if if anybody's actually tried deploying kubernetes first it's it's highly complicated um so so definitely one of the things that we're bringing is you call it a bolt on but it's certainly not like that we are making it incredibly simple you talked about IT operational shortages customers want to be able to deploy kubernetes environments in a very simple way the easiest way that we can you can do that is take your existing environment that are out ninety percent of IT and just turn on turn on the kubernetes dial tone and it is as simple as that now it's much more than that in version 7 as well we're bringing in a couple things that are very important you also have to be able to manage at scale just like you would in the cloud you want to be able to have infrastructure almost self-managed and upgrade and lifecycle manage itself and so we're bringing in a new way of managing infrastructure so that you can manage just large scale environments both on-premise and public cloud environments and scale and then associated with that as well is you must make it secure so there's a lot of enhancements we're building into the platform around what we call intrinsic security which is how can we actually build in truly a trusted platform for your developers and IIT yeah I mean I I was just going to touch on your point about the shortage of IT staff and how we are addressing that here the the way we are addressing that is that the IT administrators that are used to administering vSphere can continue to administer this enhanced platform with kubernetes the same way administered the older laces so they don't have to learn anything new they're just working the same way we are not changing any tools process technologies so same as it was before same as it was before more capable dealer and developers can come in and they see new capabilities around kubernetes so it's best of both worlds and what was the pain point that you guys are so obviously the ease-of-use is critical Asti operationally I get that as you look at the cloud native developer Saiga's infrastructure as code means as app developers on the other side taking advantage of it what's the real pain point that you guys are solving with vSphere 7 so I think it's it's it's multiple factors so so first is we've we've talked about agility a few times right there is DevOps as a real trend inside an IT organizations they need to be able to build and deliver applications much quicker they need to be able to respond to the business and to do that what they are doing is is they need infrastructure that is on demand so what what we're really doing in the core kubernetes kind of enablement is allowing that on-demand fulfillment of infrastructure so you get that agility that you need but it's it's not just tied to modern applications it's also your all of your existing business applications and your monitoring applications on one platform which means that you know you've got a very simple and and low-cost way of managing large-scale IT infrastructure so that's a that's a huge piece as well and and then I I do want to emphasize a couple of other things it's we're also bringing in new capabilities for AI and m/l applications for sa P Hana databases where we can actually scale to some of the largest business applications out there and you have all of the capabilities like like the GPU awareness and FPGA were FPGA awareness that we built into the platform so that you can truly run this as the fastest accelerated platform for your most extreme applications so you've got the ability to run those applications as well as your kubernetes and container based applications that's the accelerated application innovation piece of the announcement right that's right yeah it's it's it's quite powerful that we've actually brought in you know basically new hardware awareness into the product and expose that to your developers whether that's through containers or through VMs Chris I want to get your thoughts on the ecosystem and then the community but I want to just dig into one feature you mentioned I get the lifestyle improvement a life cycle improvement I get the application acceleration innovation but the intrinsic security is interesting could you take a minute explain what that is yeah so there's there's a few different aspects one is looking at how can we actually provide a trusted environment and that means that you need to have a way that the the key management that even your administrator is not able to get keys to the kingdom as we would call it you you want to have a controlled environment that you know some of the worst security challenges inside and some of the companies has been your Intel or internal IT staff so you've got to have a way that you can run a trusted environment in independent we've got these fair trust Authority that we released in version 7 that actually gives you a a secure environment for actually managing your keys to the kingdom effectively your certificates so you've got this you know continuous runtime now not only that we've actually gone and taken our carbon black features and we're actually building in full support for carbon black into the platform so that you've got negative security of even your application ecosystem yeah that's been coming up a lot conversations the carbon black in the security piece Chris obviously have vsphere everywhere having that operating model makes a lot of sense but you have a lot of touch points you got cloud hyper scale is got the edge you got partners so the other dominant market share and private cloud we are on Amazon as you well know as your Google IBM cloud Oracle cloud so all the major clouds there is a vSphere stack running so it allows customers if you think about it right it allows customers to have the same operating model irrespective where their workload is residing they can set policies compliance security they said it once it applies to all their environments across this hybrid cloud and it's all for a supported by our VMware cloud foundation which is powered by vSphere 7 yeah I think having that the cloud is API based having connection points and having that reliable easy to use is critical operating model all right guys so let's summarize the announcement what do you guys take Derek take away from this vSphere 7 what is the bottom line what's what's it really mean I think what we're if we look at it for developers we are democratizing kubernetes we already are in 90% of IT environments out there are running vSphere we are bringing to every one of those be sphere environments and all of the virtual infrastructure administrators they can now manage kubernetes environments you can you can manage it by simply upgrading your environment that's a really nice position rather than having independent kind of environments you need to manage so so I think that's that is one of the key things that's in here the other thing though is there is I don't think any other platform out there that other than vSphere that can run in your data center in Google's in Amazon's in Microsoft's in you know thousands of VC PP partners you have one hybrid platform that you can run with and that's got operational benefits that's got efficiency benefits that's got agility benefits yeah I just add to that and say that look we want to meet customers where they are in their journey and we want to enable them to make business decisions without technology getting in the way and I think the announcement that we made today with vSphere 7 is going to help them accelerate their digital transformation journey without making trade-offs on people process and technology and there's more to come that we're laser focused on making our platform the best in the industry for running all kinds of applications and the best platform for a hybrid and multi cloud and so you'll see more capabilities coming in the future stay tuned oh one final question on this news announcement which is this awesome vSphere core product for you guys if I'm the customer tell me why it's gonna be important five years from now because of what I just said it is the only platform that is going to be running across all the public clouds right which will allow you to have an operational model that is consistent across the clouds so think about it if you go to Amazon native and then you have orc Lord and as your you're going to have different tools different processes different people trained to work with those clouds but when you come to VMware and you use our cloud foundation you have one operating model across all these environments and that's going to be game-changing great stuff great stuff thanks for unpacking that for us graduates on the insulin Thank You Vera bees fear 7 News special report here inside the cube conversation I'm John Farrar your thanks for watch [Music] and welcome back everybody Jeff Rick here with the cube we are having a very special Q conversation and kind of the the ongoing unveil if you will of the new VMware vSphere 7 dot gonna get a little bit more of a technical deep dive here today we're excited to have a longtime cube alumni kit Kolbert here is the vp and CTO cloud platform at being work it great to see you yeah and and new to the cube jared rose off he's a senior director of product management at VMware and I'm guessin had a whole lot to do with this build so Jared first off congratulations for birthing this new release and great to have you on board alright so let's just jump into it from kind of a technical aspect what is so different about vSphere seven yeah great so vSphere seven baek's kubernetes right into the virtualization platform and so this means that as a developer I can now use kubernetes to actually provision and control workloads inside of my vSphere environment and it means as an IT admin I'm actually able to deliver kubernetes and containers to my developers really easily right on top of the platform I already run so I think we had kind of a sneaking suspicion that that might be coming when the with the acquisition of the hefty Oh team so really exciting news and I think it you tease it out quite a bit at VMware last year about really enabling customers to deploy workloads across environments regardless of whether that's on Prem public cloud this public cloud that public cloud so this really is the the realization of that vision yes yeah so we talked at VMworld about project Pacific right this technology preview and as Jared mentioned of what that was was how do we take kubernetes and really build it into vSphere as you know we had a hybrid cloud vision for quite a while now how do we proliferate vSphere to as many different locations as possible now part of the broader VMware cloud foundation portfolio and you know as we've gotten more and more of these instances in the cloud on-premises at the edge with service providers there's a secondary question how do we actually evolve that platform so it can support not just the existing workloads but also modern work clothes as well right all right so I think you brought some pictures for us a little demo so why don't ya well into there and let's see what it looks like you guys can cube the demo yes we're gonna start off looking at a developer actually working with the new VMware cloud foundation for an vSphere 7 so what you're seeing here is the developers actually using kubernetes to deploy kubernetes the self eating watermelon right so the developer uses this kubernetes declarative syntax where they can describe a whole kubernetes cluster and the whole developer experience now is driven by kubernetes they can use the coop control tool and all of the ecosystem of kubernetes api is and tool chains to provision workloads right into vSphere and so you know that's not just provisioning workloads though this is also key to the developer being able to explore the things they've already deployed so go look at hey what's the IP address that got allocated to that or what's the CPU load on this you know workload I just deployed on top of kubernetes we've integrated a container registry into vSphere so here we see a developer pushing and pulling container images and you know one of the amazing things about this is from an infrastructure as code standpoint now the developers infrastructure as well as their software is all unified in source control I can check in not just my code but also the description of the kubernetes environment and storage and networking and all the things that are required to run that app so now we're looking at a sort of a side-by-side view where on the right hand side is the developer continuing to deploy some pieces of their application and on the left-hand side we see V Center and what's key here is that as the developer deploys new things through kubernetes those are showing up right inside of the V center console and so the developer and IT are seeing exactly the same things with the same names and so this means what a developer calls their IT department says hey I got a problem with my database we don't spend the next hour trying to figure out which VM they're talking about they got the same name they say they see the same information so what we're gonna do is that you know we're gonna push the the developer screen aside and start digging into the vSphere experience and you know what you'll see here is that V Center is the V Center you've already known and loved but what's different is that now it's much more application focused so here we see a new screen inside of V Center vSphere namespaces and so these vSphere namespaces represent whole logical applications like a whole distributed system now as a single object inside a V Center and when I click into one of these apps this is a managed object inside of e spear I can click on permissions and I can decide which developers have the permission to deploy or read the configuration of one of these namespaces I can hook this into my Active Directory infrastructure so I can use the same you know corporate credentials to access the system I tap into all my existing storage so you know this platform works with all of the existing vSphere storage providers can use storage policy based management to provide storage for kubernetes and it's hooked in with things like DRS right so I can define quotas and limits for CPU and memory and all that's going to be enforced by Drs inside the cluster and again as an as an admin I'm just using vSphere but to the developer they're getting a whole kubernetes experience out of this platform now vSphere also now sucks in all this information from the kubernetes environment so besides you know seeing the VMS and and things that developers have deployed I can see all of the desired state specifications all the different kubernetes objects that the developers have created the compute network and storage objects they're all integrated right inside the the vCenter console and so once again from a diagnostics and troubleshooting perspective this data is invaluable it often saves hours just in trying to figure out what what we're even talking about when we're trying to resolve an issue so the you know as you can see this is all baked right into V Center the V Center experience isn't transformed a lot we get a lot of VI admins who look at this and say where's the kubernetes and they're surprised that like they've been managing kubernetes all this time it just looks it looks like the vSphere experience they've already got but all those kubernetes objects the pods and containers kubernetes clusters load balancer stores they're all represented right there natively in the V Center UI and so we're able to take all of that and make it work for your existing VI admins well that's a it's pretty it's pretty wild you know it really builds off the vision that again I think you kind of outlined kid teased out it at VMworld which was you know the IT still sees vSphere which is what they want to see when they're used to seeing but devs siku Nettie's and really bringing those together in a unified environment so that depending on what your job is and what you're working on that's what you're gonna see in this kind of unified environment yeah yeah as the demo showed it is still vSphere at the center but now there's two different experiences that you can have interacting with vSphere the kubernetes base one which is of course great for developers and DevOps type folks as well as the traditional vSphere interface API is which is great for VI admins and IT operations right and then and really it was interesting to you tease that a lot that was a good little preview of people knew they're watching but you talked about really cloud journey and and kind of this bifurcation of kind of classical school apps that are that are running in their classic memes and then kind of the modern you know county cloud native applications built on kubernetes and youyou outlined a really interesting thing that people often talk about the two ends of the spectrum and getting from one to the other but not really about kind of the messy middle if you will and this is really enabling people to pick where along that spectrum they can move their workloads or move their apps ya know I think we think a lot about it like that that we look at we talk to customers and all of them have very clear visions on where they want to go their future state architecture and that involves embracing cloud it involves modernizing applications and you know as you mentioned that it's it's challenging for them because I think what a lot of customers see is this kind of these two extremes either you're here where you are kind of the old current world and you got the bright Nirvana future on the far end there and they believe it's the only way to get there is to kind of make a leap from one side to the other that you have to kind of change everything out from underneath you and that's obviously very expensive very time-consuming and very error-prone as well there's a lot of things that can go wrong there and so I think what we're doing differently at VMware is really to your point as you call it the the messy middle I would say it's more like how do we offer stepping stones along that journey rather than making this one giant leap we had to invest all this time and resources how come you able people to make smaller incremental steps each of which have a lot of business value but don't have a huge amount of cost right and its really enabling kind of this next gen application where there's a lot of things that are different about about one of the fundamental things is we're now the application defines a reach sources that it needs to operate versus the resources defining kind of the capabilities of what the what the application can't do and that's where everybody is moving as quickly as as makes sense you said not all applications need to make that move but most of them should and most of them are and most of them are at least making that journey you see that yeah definitely I mean I think that you know certainly this is one of the big evolutions we're making in vSphere from you know looking historically at how we managed infrastructure one of things we enable in VCR 7 is how we manage applications right so a lot of the things you would do in infrastructure management of setting up security rules or encryption settings or you know your your resource allocation you would do this in terms of your physical and virtual infrastructure you talk about it in terms of this VM is going to be encrypted or this VM is gonna have this firewall rule and what we do in vSphere 7 is elevate all of that to application centric management so you actually look at an application and say I want this application to be constrained to this much CPU or I want this application to be have these security rules on it and so that shifts the focus of management really up to the application level right yeah and like I kind of even zoom back a little bit there and say you know if you look back one thing we did was something like V San before that people had to put policies on a LUN you know an actual storage LUN and a storage array and then by virtue of a workload being placed on that array it inherited certain policies right and so these have turned that around allows you to put the policy on the VM but what jerez talking about now is that for a modern workload a modern were close not a single VM it's it's a collection of different things you've got some containers in there some VMs probably distributed maybe even some on-prem some in the cloud and so how do you start managing that more holistically and this notion of really having an application as a first-class entity that you can now manage inside of vSphere it's really powerful and very simplifying one right and why this is important is because it's this application centric point of view which enables the digital transformation that people are talking about all the time that's it's a nice big word but the rubber hits the road is how do you execute and deliver applications and more importantly how do you continue to evolve them and change them you know based on either customer demands or competitive demands or just changes in the marketplace yeah well you look at something like a modern app that maybe has a hundred VMs that are part of it and you take something like compliance right so today if I want to check of this app is compliant I got to go look at every individual VM and make sure it's locked down and hardened and secured the right way but now instead what I can do is I can just look at that one application object inside of each Center set the right security settings on that and I can be assured that all the different objects inside of it are gonna inherit that stuff so it really simplifies that it also makes it so that that admin can handle much larger applications you know if you think about vCenter today you might log in and see a thousand VMs in your inventory when you log in with vSphere seven what you see is a few dozen applications so a single admin can manage a much larger pool of infrastructure many more applications and they could before because we automate so much of that operation and it's not just the scale part which is obviously really important but it's also the rate of change and this notion of how do we enable developers to get what they want to get done done ie building applications well at the same time enabling the IT operations teams to put the right sort of guardrails in place around compliance and security performance concerns these sorts of elements and so being by being able to have the IT operations team really manage that logical application at that more abstract level and then have the developer be able to push in new containers or new VMs or whatever they need inside of that abstraction it actually allows those two teams to work actually together and work together better they're not stepping over each other but in fact now they can both get what they need to get done done and do so as quickly as possible but while also being safe and in compliance is ready fourth so there's a lot more to this is a very significant release right again a lot of foreshadowing if you go out and read the tea leaves that's a pretty significant you know kind of RER context or many many parts of ease of beer so beyond the kubernetes you know kind of what are some of the other things that are coming out and there's a very significant release yeah it's a great question because we tend to talk a lot about kubernetes what was project Pacific but is now just part of vSphere and certainly that is a very large aspect of it but to your point you know vSphere 7 is a massive release with all sorts of other features and so instead of a demo here let's pull up with some slides right look at what's there so outside of kubernetes there's kind of three main categories that we think about when we look at vSphere seven so the first first one is simplified lifecycle management and then really focus on security it's a second one and then applications as well out both including you know the cloud native apps that don't fit in the kubernetes bucket as well as others and so we go on the first one the first column there there's a ton of stuff that we're doing around simplifying life cycle so let's go to the next slide here where we can dive in a little bit more to the specifics so we have this new technology vSphere lifecycle management VL cm and the idea here is how do we dramatically simplify upgrades lifecycle management of the ESX clusters and ESX hosts how do we make them more declarative with a single image you can now specify for an entire cluster we find that a lot of our vSphere admins especially at larger scales have a really tough time doing this there's a lot of in and out today it's somewhat tricky to do and so we want to make it really really simple and really easy to automate as well so if you're doing kubernetes on kubernetes I suppose you're gonna have automation on automation right because they're upgrading to the sevens is probably not any consequent inconsequential tasks mm-hm and yeah and going forward and allowing you know as we start moving to deliver a lot of this great VCR functionality at a more rapid clip how do we enable our customers to take advantage of all those great things we're putting out there as well right next big thing you talk about is security yep we just got back from RSA thank goodness we got that that show in before all the badness started yeah but everyone always talked about security's got to be baked in from the bottom to the top yeah talk about kind of the the changes in the security so done a lot of things around security things around identity Federation things around simplifying certificate management you know dramatic simplifications there across the board one I want to focus on here on the next slide is actually what we call vSphere trust Authority and so with that one what we're looking at here is how do we reduce the potential attack surfaces and really ensure there's a trusted computing base when we talk to customers what we find is that they're nervous about a lot of different threats including even internal ones right how do they know all the folks that work for them can be fully trusted and obviously if you're hiring someone you somewhat trust them but you know what what's how do you implement that the concept of least privilege right or zero trust right yeah topic exactly so the idea with trust authorities that we can specify a small number of physical ESX hosts that you can really lock down and sure fully secure those can be managed by a special vCenter server which is in turn very lockdown only a few people have access to it and then those hosts and that vCenter can then manage other hosts that are untrusted and can use attestation to actually prove that okay these untrusted hosts haven't been modified we know they're okay so they're okay to actually run workloads on they're okay to put data on and that sort of thing so is this kind of like building block approach to ensure that businesses can have a very small trust base off of which they can build to include their entire vSphere environment right and then the third kind of leg of the stool is you know just better leveraging you know kind of a more complex asset ecosystem if you know what things like FPGAs and GPUs and you know kind of all of the various components that power these different applications which now the application could draw the appropriate resources as needed so you've done a lot of work here as well yeah there's a ton of innovation happening in the hardware space as you mentioned all sort of accelerators coming out we all know about GPUs and obviously what they can do for machine learning and AI type use cases not to mention 3d rendering but you know FPGAs and all sorts of other things coming down the pike as well there and so what we found is that as customers try to roll these out they have a lot of the same problems that we saw in the very early days of virtualization ie silos of specialized hardware that different teams were using and you know what you find is all things we found before you found we find very low utilization rates inability to automate that inability to manage that well putting security and compliance and so forth and so this is really the reality that we see at most customers and it's funny because and some ones you think well well shouldn't we be past this as an industry shouldn't we have solved this already you know we did this with virtualization but as it turns out the virtualization we did was for compute and then storage and network but now we really needed to virtualize all these accelerators and so that's where this bit fusion technology that we're including now with vSphere it really comes to the forefront so if you see in the current slide we're showing here the challenge is that just these separate pools of infrastructure how do you manage all that and so if you go to the we go to the next slide what we see is that with bit fusion you can do the same thing that we saw with compute virtualization you can now pool all these different silos infrastructure together so they become one big pool of GPUs of infrastructure that anyone in an organization can use we can you know have multiple people sharing a GPU we can do it very dynamically and the great part of it is is that it's really easy for these folks to use they don't even need to think about it in fact integrates seamlessly with their existing workflows so it's pretty it's pretty trick is because the classifications of the assets now are much much larger much varied and much more workload specific right that's really the opportunities flash they are they're good guys are diverse yeah and so like you know a couple other things just I don't have a slide on it but just things we're doing to our base capabilities things around DRS and vmotion really massive evolutions there as well to support a lot of these bigger workloads right so you look at some of the massive sa P Hana or Oracle databases and how do we ensure that the emotion can scale to handle those without impacting their performance or anything else they're making DRS smarter about how it does load balancing and so forth right now a lot of this stuff not just kind of brand new cool new accelerator stuff but it's also how do we ensure the core ass people have already been running for many years we continue to keep up with the innovation and scale there as well right all right so do I give you the last word you've been working on this for a while there's a whole bunch of admins that have to sit and punch keys what do you what do you tell them what should they be excited about what are you excited for them in this new release I think what I'm excited about is how you know IT can really be an enabler of the transformation of modern apps right I think today you look at a lot of these organizations and what ends up happening is the app team ends up sort of building their own infrastructure on top of IT infrastructure right and so now I think we can shift that story around I think that there's you know there's an interesting conversation that a lot of IT departments and appdev teams are gonna be having over the next couple years about how do we really offload some of these infrastructure tasks from the dev team make you more productive give you better performance availability disaster recovery and these kinds of capabilities awesome well Jared congratulations that get both of you for forgetting to release out I'm sure it was a heavy lift and it's always good to get it out in the world and let people play with it and thanks for for sharing a little bit more of a technical deep dive I'm sure there's ton more resources from people I even want to go down into the weeds so thanks for stopping by thank you thank you all right ease Jared he's kid I'm Jeff you're watching the cube we're in the Palo Alto studios thanks for watching we'll see you next time [Music] hi and welcome to a special cube conversation I'm Stu min a minute and we're digging into VMware vSphere seven announcement we've had conversations with some of the executives some of the technical people but we know that there's no better way to really understand a technology than to talk to some of the practitioners that are using it so really happy to have joined me for the program I have Bill Buckley Miller who is in infrastructure designer with British Telecom joining me digitally from across the pond bill thanks so much for joining us nice - all right so Phil let's start of course British Telecom I think most people know you know what BT is and it's a you know a really sprawling company tell us a little bit about you know your group your role and what's your mandate okay so my group it's called service platforms it's the bit of BT that services all of our multi millions of our customers so they we have broadband we have TV we have mobile we have DNS and email systems and one and it's all about our customers it's not a B to be part of BT you with me we we specifically focus on those kind of multi million customers that we've got in those various services I'm in particular my group is for we do infrastructure so we really do from data center all the way up to really about boot time or so we'll just past boot time and the application developers look after that stage and above okay great we definitely gonna want to dig in and talk about that that boundary between the infrastructure teams and the application teams but let's talk a little bit first you know we're talking about VMware so you know how long's your organization been doing VMware and tell us you know what you see with the announcement that VMware's making work BC or seven sure well I mean we've had a really great relationship with VMware for about twelve thirteen years something like that and it's a absolutely key part of our of our infrastructure it's written throughout BT really in every part of our operations design development and the whole ethos of the company is based around a lot of VMware products and so one of the challenges that we've got right now is application architectures are changing quite significantly at the moment and as you know in particular with serving us and with containers and a whole bunch of other things like that we're very comfortable with our ability to manage VMs and have been for a while we currently use extensively we use vSphere NSX t.v raps log insight network insight and a whole bunch of other VMware constellation applications and our operations teams know how to use that they know how to optimize they know how to capacity plan and troubleshoot so that's that's great and that's been like that for a half a decade at least we've been really really confident with our ability to still with Yemen where environments and Along Came containers and like I say multi cloud as well and what we were struggling with was the inability to have a cell pane a glass really on all of that and to use the same people and the same same processes to manage a different kind of technology so we we'd be working pretty closely with VMware on a number of different containerization products for several years now I would really closely with the b-string integrated containers guys in particular and now with the Pacific guys with really the idea that when we we bring in version 7 and the containerization aspects of version 7 we'll be in a position to have that single pane of glass to allow our operations team to really barely differentiate between what's a VM and what's a container that's really the holy grail right so we'll be able to allow our developers to develop our operations team to deploy and to operate and our designers to see the same infrastructure whether that's on premises cloud or off premises and be able to manage the whole piece in that was bad ok so Phil really interesting things you walked through here you've been using containers in a virtualized environment for a number of years want to understand in the organizational piece just a little bit because it sounds I manage all the environment but you know containers are a little bit different than VMs you know if I think back you know from an application standpoint it was you know let's stick it in a vm I don't need to change it and once I spin up a VM often that's gonna sit there for you know months if not years as opposed to you know I think about a containerization environment it's you know I really want a pool of resources I'm gonna create and destroy things all the time so you know bring us inside that organizational piece you know how much will there need to be interaction and more interaction or change in policies between your infrastructure team and your app dev team well yes making absolutely right that's the nature and that the time scales that were talking about between VMs and containers oh he's wildly different as you say we we probably oughta certainly have VMs in place now that were in place in 2000 and 2018 certainly but I imagine I haven't haven't really been touched whereas as you say VMs and a lot of people talk about spinning them all up all the time there are parts of our architecture that require that in particular the very client facing bursty stuff it you know does require spinning up spinning down pretty quickly but some of our smaller the containers do sit around for weeks if not if not months I really just depend on the development cycle aspects of that but the heartbeat that we've we've really had was just the visualizing it and there are a number different products out there that allow you to see the behavior of your containers and understand the resource requirements that they are having at any given moment allows troubleshoot and so on but they are not they need their new products their new things that we we would have to get used to and also it seems that there's an awful lot of competing products quite a Venn diagram if in terms of functionality and user abilities to do that so through again again coming back to being able to manage through vSphere to be able to have a list of VMs and alongside it is a list of containers and to be able to use policies to define how the behave in terms of their networking to be able to essentially put our deployments on Rails by using in particular tag based policies means that we can take the onus of security we can take the onus of performance management and capacity management away from the developers you don't really care about a lot of time and they can just get on with their job which is to develop new functionality and help our customers so that then means that then we have to be really responsible about defining those policies and making sure that they're adhered to but again we know how to do that with VMs new visa so the fact that we can actually apply that straightaway just to add slightly different completely unit which is really what we're talking about here is ideal and then to be able to extend that into multiple clouds as well because we do use multiple cards where AWS and as your customers and were between them is an opportunity that we can't do anything of them be you know excited about take oh yeah still I really like how you described it really the changing roles that are happening there in your organization need to understand right there's things that developers care about you know they want to move fast they want to be able to build new things and there's things that they shouldn't have to worry about and you know we talked about some of the new world and it's like oh can the platform underneath this take care of it well there there's some things platforms take care of there's some things that the software or you know your theme is going to need to understand so maybe if you could dig in a little bit some of those what are the drivers from your application portfolio what is the business asking of your organization that that's driving this change and you know being one of those you know tailwind pushing you towards you know kubernetes and the the vSphere 7 technologies well it all comes down with the customers right our customers want new functionality they want new integrations they want new content and they want better stability and better performance and our ability to extend or contracting capacity as needed as well so they're the real ultimate we want to give our customers the best possible experience of our products and services so we have to address that really from a development perspective it's our developers that have the responsibility to design them to deploy those so we have to in infrastructure we have to act as a firm foundation really underneath all of that that allows them to know that what they spend their time and develop and want to push out to our customers is something that can be trusted as performant we understand where their capacity requirements are coming from in in the short term and in the long term for that and it's secure as well obviously is a big aspect to it so really we're just providing our developers with the best possible chance of giving our customers what will hopefully make them delighted great Phil you've mentioned a couple of times that you're using public clouds as well as you know your your your your VMware farm one of make sure I if you can explain a little bit a couple of things number one is when it comes to your team especially your infrastructure team how much are they involved with setting up some of the the basic pieces or managing things like performance in the public cloud and secondly when you look at your applications are some of your clouds some of your applications hybrid going between the data center and the public cloud and I haven't talked to too many customers that are doing applications that just live in any cloud and move things around but you know maybe if you could clarify those pieces as to you know what cloud really means to your organization and your applications sure well I mean to us climate allows us to accelerate development she's nice because it means we don't have to do on-premises capacity lifts for new pieces of functionality or so we can initially build in the cloud and test in the cloud but very often applications really make better sense especially in the TV environment where people watch TV all the time I mean yes there are peak hours and lighter hours of TV watching same goes for broadband really but we generally we're well more than an eight-hour application profile so what that allows us to do then is to have well it makes sense we run them inside our organization where we have to run them in our organization for you know data protection reasons or whatever then we can do that as well but where we say for instance we have a boxing match on and we're going to be seen enormous spike in the amount of customers that want to sign up into our order journey for to allow them to view that and to gain access to that well why would you spend a lot of money on servers just for that level of additional capacity so we do absolutely have hybrid applications not sorry hybrid blocks we have blocks of suburb locations you know dozens of them really to support oil platform and what you would see is that if you were to look at our full application structure for one of the platform as I mentioned that some of the smoothers application blocks I have to run inside some can run outside and what we want to be able to do is to allow our operations team to define that again by policy as to where they run and to you know have a system that allows us to transparently see where they're running how they're running and the implications of those decisions so that we can tune those maybe in the future as well and that way we best serve our customers we you know we get to get our customers yeah what they need all right great Phil final question I have for you you've been through a few iterations of looking at VMS containers public cloud what what advice would you give your peers with the announcement of vSphere 7 and how they can look at things today in 2020 versus what they might have looked at say a year or two ago well I'll be honest I was a little bit surprised by vSphere so we knew that VMware we're working on trying to make containers on the same level both from a management deployment perspective as we MS I mean they're called VMware after all we knew that they were looking it's no surprise by just quite how quickly they've managed to almost completely reinvent their application really it's you know if you look at the whole tansy stuff from the Mission Control stuff I think a lot of people were blown away by just quite how happy VMware were to reinvent themselves and from an application perspective you know and to really leap forward and this is the very between version six and seven I've been following these since version three at least and it's an absolutely revolutionary change in terms of the overall architecture the aims to - what they want to achieve with the application and you know luckily the nice thing is is that if you're used to version six is not that big a deal it's really not that big a deal to move forward at all it's not such a big change to process and training and things like that but my word there's no awful lot of work underneath that underneath the covers and I'm really excited and I think other people in my position should really just take it as an opportunity to really revisit what they can achieve with them in particular with vSphere and with in combination with and SXT it's it's but you know it's quite hard to put into place unless you've seen the slide or slides about it and useless you've seen the products just how revolutionary the the version 7 is compared to previous revisions which have kind of evolved for a couple of years so yeah I think I'm really excited to run it and know a lot of my peers other companies that I speak with quite often are very excited about seven as well so yeah I'm really excited about the whole ball base well Phil thank you so much absolutely no doubt this is a huge move for VMware the entire company and their ecosystem rallying around helped move to the next phase of where application developers and infrastructure need to go Phil Buckley joining us from British Telecom I'm Stu minimun thank you so much for watching the queue

absolutely build on some of Ben's comments because I think what he articulated is one of the killer use cases of VMware cloud on a to us that I think is driving that momentum right which is we think it's one of the best solutions in the marketplace and customers have told us this to enable them to migrate and modernize right so let's talk about the migrate piece first right you have customers that have these tremendous enterprise class applications running on vSphere and their data centers they're built on top of that platform they depend upon it for performance availability everything else with VMware Club a native us we can migrate those applications with zero downtime no refactoring no additional cost in a matter of weeks or months as opposed to if you had to refactor everything to take years and millions of dollars right so that cloud migration use case I would say is that is the killer for us and that's you know exactly what Ben was we're definitely seeing that and I think that's the thing that really got me excited about a year ago was watching enterprises make that transition and say you know what the center of gravity has gone from architectures inside the on-prem data center is now moved to in the cloud I mean that shift has happened it happened to people talked about it five years ago but they didn't mean it and now when you talk to enterprises they are actually moving into the cloud not just talking about it and they're saying where that is the center of gravity and what's interesting to me was I think even just the tone of Andy Jesse today and what he was talking about was it's once you define what your architecture is you push it everywhere so cloud 1.0 and 2.0 was really more about taking my architecture that was on prem and pushing it into the cloud so let me take virtual appliance a virtual router basically my hardware router packaged it up put it on the cloud that's not cloud native it's cloud naive as we talk right and so what's the chase has happened is now everybody realizes the center of gravity is in the cloud and you start seeing things like outposts you see things like wavelength you see things like you know tgw network manager things getting pushed out the architecture of the cloud now actually pushing out and extending out into on-premises I've been at it for a couple of decades so in the beginning there was a lot of evangelism that this is safe it's consumable by the enterprise it's not some kind of crazy idea to bring open-source you're not going to lose your intellectual property or things like that those days I mean I I'm sure you can find an exception but those days are largely over in this in the sense that open-source has gone mainstream so I would say open-source is one most large enterprises have an open-source strategy they consider open source as critical to not only how they source software from vendors but also how they build their own applications so the world has really really evolved and now it's really a question of where are you partnering with vendors to build infrastructure that's critical to your business but not your differentiator and where are you leveraging open-source internally for your to differentiate your business I think that's a more sophisticated view it's not the safety question it's not is it is it legally you know that you're bringing legal concerns into the picture it's really a much different conversation and people in the enterprise are looking how can we contribute to these projects so that's really it's pretty exciting actually both are a great place for startups right they're not meters cluesive so I think if you go horizontal the amount of data being created by your applications your infrastructure your sensors time series data ridiculously large amount right and that's not going away anytime soon I recent did investment ain't chronosphere did you guys covered over at coupon a few weeks ago that's talking about metrics and absorbedly data time series data so they're gonna handle that horizontal amount of data petabytes and petabytes how can it query this quickly deeply with a lot of insight that's one play right cheaper better faster at scale the next play like you said is vertical it's how do I own data or slice the data the more contacts they know as can have we talked about like the virtual cycle of data right this the system of the tile well bye own set of da to be healthcare government or self-driving car data that no one else has I can build a solution and to end and go deep and so either pick a lane or pick a geography you can go either way it's hard to do both though it's hard for start-up any big company it's very few companies can do two things well starves especially succeed by doing one thing very well I'm impressed they got two CEOs the CEO of goldman sachs david solomon the CEO of Cerner coming to the show that's kind of rare that the CEO of your customer comes to the show I guess the second thing I'd say is you know Amazon is not a rinse and repeat company at these shows although they are when it comes to shock and awe so they ticked the Box on shock and awe but you're right John they're talking a lot about transformation I would sort of think of it as a disruption here's what I would say to that Amazon has a dual disruption agenda one is its disrupting the horizontal technology stack and two it's disrupting industries it wants to be the platform of which startups in particular but also incumbents can disrupt industries and it's in their DNA because it's in Amazon's DNA and I think it's the last thing I'll say as Amazon is the retai Amazon retail is the you can buy anything here store and now to your point Justin Amazon Web Services is you can get AWS anywhere at the edge and a little mini data centers that they're built on outpost and of course in the cloud absolutely you know I'd say primarily were most kind of pleased with the variety of workloads and these cases the customers are bringing us into you know I think when we started out on this journey we saw a tremendous promise for the technology to really improve the aw psycho system and customer experience for people that wanted to consume block storage in the cloud what we learned as we started working with customers is that because of the way we've architected the product brought a lot of the same capabilities we deliver on our flash arrays today into AWS it's a lot of customers to take us into all the same types of workloads that they put flush arrays into right so that's their Tier one you know mission-critical environments there VMware workloads their Oracle workloads or safety workloads they're also looking at us from everything from you know to do lifts and shifts test and dev in the cloud as well as dr right and and that again i think you know speaks to a couple things it speaks to the durability the higher level of service that were able to deliver in AWS but also the compatibility with which we're able to deliver the same sets of features and you know have it operate in exactly the same way on prime in the cloud because it's look if you're gonna dr the last time you know the last point in time you want to discover that there's a caveat hey this feature doesn't quite work the way you expect is when you have a dr failover and so the fact that we set out with this mission in mind to create that exact level of sameness you know it's really paying dividends in the types of use cases the customers are bringing us into I think we're delighted you know Mike obviously and I've been friends for years he's had some connections with VMware in his past that that that certainly helped in setting up this partnership so we're grateful to Mike and Andy and the team for that and it's you know two and a half to three years now since we announced it tremendous amount of customer interest listen you know we said at the beginning of this when you take sort of the king of the public cloud and the king the private cloud together and don't force customers to say these have to be separate doors you can do them both together customers like that message and what we've been really doing over the course the last 12 18 months is perfecting use cases for this platform I think to us the key word is migrations cloud migrations when people are moving their workloads of an app off vmware vsphere or our cloud foundation we want this to be the best place for it to land we are more cloud and AWS for migration opportunity and anything short of that refactoring app would be you know not something that would be a good use of people's time and money because they should be then modernizing with all the wonderful services that Amazon's built once they've migrated so we've really perfected our message in the course the last six 12 months to two ms migrated and modernized migrated modernized so we could migrate you into this avenue and then modernized with a set of container and other services so that mess is working we put on stage at VMware and there are many of them here too big Amazon customers VMware cloud and Amazon Freddie Mac and IHS market and they were telling are tens of thousands customers at those shows and similarly many of them here that that's the best option to be able to do things yeah so if you know public sector public sector actually has a lot of Windows or Microsoft workloads in it and so we're seeing a lot of public sector customers looking to modernize their Windows workloads in fact we made several announcements just yesterday around helping more public sector customers modernize for example one is Windows Server 2003 and 2008 will go out of support and so we have a great new offering with technology that can help them to not refactor but actually abstract those layers and move quickly to 2016 and 2019 because both of those will go out of support in January and Dave mentioned you know cloud first strategies but we're also seeing a lot of movement around data you know data is really powerful Andy mentioned this as well yesterday but for example in our partner keynote where I just came from we had on stage Avis yeah hey this not public sector customer but what they're doing is the the gentleman said you know your car can now talk to you and that data is now being given to local state officials local city officials they can use it for emergency response systems so that public and private use of data coming together is also a big trend that we're seeing it's all about breaking down I mean if devops is all about breaking down silos between Devon operations and in other parts of the business Deb sack ops or secure dev ops or whatever we want to call it is just bringing more people into the fold and helping security join that party and get at things earlier in the cycle so we can catch it before it you know before before there's a breach that's in the news so you know I think there's going to continue to be convergence between Amazon business in AWS over time and in the marketplace we offer kind of a goods marketplace they offer a software marketplace and a services marketplace and so I think we're still working on how do we harmonize that experience better and we've got a lot of work to do there we have a saying at Amazon that it's always day one and that's a great example where we still have a lot of work to do but one of the things that is another one of our partners Koopa which is a procure-to-pay a platform and a longtime Amazon business partner we've done some pretty creative things to improve the user experience and make it easier for customers use both Koopa and Amazon business and in concert together Koopa announced a couple months ago they've built an integration to the AWS marketplace and so that's a pretty exciting opportunity where people who are provisioning services via AWS be a Dobis marketplace can have that that transaction flows seamlessly into their prepare to pay solution and let you know the user who's provisioning that focus on what they want to do which is developing new solutions to serve customers I mean the spectrum is massive so the our biggest challenge is keeping up with everything and continuing to innovate with all the things that are happening but again the benefits of the platform that we have enables us to do that and the enhancements we weight made this year this year now that our platform is is more open we can connect a collect data from multiple entities not just the New Relic agents that we've that we were built on so the concept of observability and being able to observe the entire application environment it is built on the fact that data's got to come from all these different places then we need to turn that around and curate it into the right experience in the right use case that the customer is looking for so all I can say is that our company's built on innovation we try and stay on the cutting edge of all that trying to stay current with that and meet the customers needs as as everyone here is innovating like crazy at scale well I mean there's a lot of a lot of the technology we build comes from things that we're doing ourselves you know and that we're learning ourselves it's kind of how we started thinking about microservices serverless - we saw the need we know we would have we would build all these functions that when some kind of object came into an object store we would spin up compute all those tasks would take like three or four hundred milliseconds then we spin it back down and yet we'd have to keep a cluster up in multiple availability zones because we needed that fault tolerance and it was we just said this is wasteful and that's part of how we came up with lambda and you know when we were thinking about land that people understandably said well if we build lambda and we build this serverless event-driven computing a lot of people were keeping clusters of instances aren't going to use them anymore it's going to lead to less absolute revenue for us but we we have learned this lesson over the last 20 years at Amazon which is if it's something it's good for customers you're much better off cannibalizing yourself and doing the right thing for customers and being part of shaping something and I think if you look at the history of technology you always build things and people say well that's going to cannibalize this and people are gonna spend less money what really ends up happening is they spend spend less money per unit of compute but it allows them to do so much more that they ultimately long-term end up being you know more significant customer look I mean the the SHA this show estate Volante says amazon always delivers with the shock and awe you know broadest and deepest so many pieces here you know I took a selfie with many people and the biggest celebrity of the show AWS outpost the rack it's over in the corner there and people asking me about all the gear inside I said you should stop asking about that because you will never touch it only AWS will so put a curtain around it it's managed as a service and that's what I think people are still trying to understand we've been talking about cloud for what 15 years now but Amazon's positioning on cloud is still different than everyone else's when I think back to some of the waves there's that buzzword and there's one or two that really architectural er different in deliver and Amazon laid out their strategy even more and through the geeky pieces and transformation was the theme you [Music]

>> Announcer: Live, from San Francisco celebrating 10 years of high-tech coverage it's theCUBE. Covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Welcome back, this is theCUBE two stages, three days of coverage, our tenth year here at the VMworld show. I'm Stu Miniman and my co-host for this segment is Bobby Allan. And welcome back, two of our CUBE alumni. >> How are you? >> As I said back in 2010 we didn't even know what a CUBE alumni was. People were trying to figure out what we're doing but now we have thousands of them and both of these gentlemen have been on the program, a few times. >> Thanks for having us back. >> You're welcome. So, first, over we have Ajay Patel, who I believe was doing another filming evening with our crew-- >> Absolutely >> Earlier today. >> The Accenture Innovation Center. >> Ah, excellent. Beautiful building Accenture has here in San Francisco. >> Ajay: Beautiful (mumbles) >> One of the other benefits of being back in San Francisco is we brought in people and it's really easy to get in and out and do other things in the Valley. But Ajay is the senior vice president and general manager of the cloud provider software business unit inside VMware. And one of his partners is Rackspace. We have Peter FitzGibbon who is the vice president of Product Alliances, with for mentioned Rackspace. >> Yeah, super to be back in San Francisco. It's a great change from Vegas. >> Yeah, you know, there is some debate in the community of course it's a little more expensive here in San Francisco and there are other logistic challenges. We're excited to be back here and yeah, really excited to be talking with both of you. Peter, let's start, you know Rackspace has had a long, long partnership with VMware. When I remember back to like VMware Environments Hosted it's like, Rackspace was the one with the lion's share in that market. And, you know, Rackspace has gone through a lot of changes in the last 10 years that we've been doing this coverage. When I think about multi cloud, all of these environments you've got a nice perspective on this and lots of customers you've worked with. So, give us the update on what you're hearing from customers and your relationship with VMware. >> Yeah, so, 20-year history with VMware that we're very proud of. I would say it's almost being re-birthed in the last two years though. Two years ago, we were one of the first VMware Cloud Verified partners. We launched our VMware Cloud VMware Cloud Foundation Private Cloud. We added that about six months later in customer data centers. We're now one of the major partners of VMware Cloud AWS >> Ajay: VMware Cloud AWS yep. >> And that's one of the areas that we're continuing to expand upon. We announced some new services this week, specifically around VMware Cloud AWS or support of HDX, both for migrations for ongoing support as well as a number of, what we call Rackspace service blocks. Which are additional manage services that we are applying, specifically for VMware Cloud and AWS. So, exciting times at Rackspace and VMware continues to be a look, a major part of our portfolio. >> Ajay: And thank you for all the support, Peter. >> Yeah, so Ajay, bring us up to speed of what's happening in your space you know, a lot of attention gets paid, you know Every time, you know, I saw Sanjay Poon, up on stage at the Goolge clould event, and of course the AWS partnership has been one of the biggest stories in all of tech, for the last couple of years. And that's been extending to, you know first it was like, wait, you know Rackspace has data centers and many of your other partners have data centers, but how did these all, play together and how does the VMware software pull them all together. >> So Stu, I think, you and I have been talking about this world of hybrid multi and we've been arguing, whether it's just a transitionary stage, or here to stay. Hopefully that debate's over, right? Hybrid's a new reality, multi cloud's a new reality and we talk about these hyper scales but you know, Rackspace and many of my VCP partners they've been longstanding in this journey with us. I don't know if you caught Pat's keynote? We demonstrated, that we have over 10 000 data centers through our VCPP network and Rackspace being one of our top 10 partners. So you start, to start seeing this mix of VMware everywhere. Whether it's trough our service provider cloud the customer manage cloud or even a hyper scale VMware cloud. You now have the ubiquitous VMware infrastructure to play with. >> At some point it's just cloud. (chattering) >> That is a great point, when I talk to customers most of them, they have a cloud strategy it's usually not a hybrid or a multi or all these things. Here's the nuance I want to, you know, ask for a second then I definitely want Bobby to jump in with what he's been talking to customers about. You know, hybrid cloud is a reality because customers have their own data centers and they have public cloud. The ideal of multi cloud, customers have multiple clouds, but, you know, one of the definitions I put out there is, multi cloud exists when the multi cloud solution is more valuable than the sum of the pieces. And I'm not sure that we're quite there yet. I think we're starting to move down that path. But what are you both seeing? And does that resonate with what you see today? >> Yeah like, all of our customers have workloads in multiple locations and trying to provide the assessments of where to put the right workloads at the right time is one of the key values that we hold dear. And before we ever talk about where we're going to but a workload we assess whether, what our clients environments is and determine, maybe this is an AWS workload maybe this is a WMS workload maybe this workload really belongs in the data center for, due to laws of the lands laws of gravity and physics. >> And I think, what's happening, really is any application, typically choosing a platform or the cloud service that's driving the decision. Collectively what ends up happening because of that, you are in multiple clouds. So, I think what's it's a result of the reality that applications are driving location and platform choices and the way to drive consistency is trying to pick a few common things whether it's kubernetes as a platform or VMware, right? Those are a way to, kind of, unify these desperate choices that are made individually. That are collectively making each of our customers multi cloud, right? >> Ajay, I want to piggyback on that because you talked about the applications driving a lot of the choices, when applications teams in my experience are, kind of, making the choices they don't care about a centralized strategy and obviously, this very powerful partnership can support multiple places and ways around your workloads. How do you lead the witness, a little bit towards simplification and just because you can do it doesn't mean you should do it. >> Yes, so I think what's happening from our perspective is depending on which side of the IT house you're at if you're part of the core IT that's running and maintaining mission critical systems you're really looking for something that's reliable, performance scalable, secure. And you, maybe, looking at a hardware refresher looking at your data center strategy and you're looking to migrate that workload. You're not really looking to re-change the app just because it's cool. >> Bobby: Right. >> If you're part of digital transformation effort you're looking to say, okay how do I get something out there quickly? >> Bobby: Right. >> How do I integrate on the average my data and application assets while leveraging cloud services? >> Bobby: Right. So, we're seeing this tension in some ways where the, kind of, net new is really pushing the envelope of cloud with self service elasticity, new capability while as the old guard is like I got to keep my running business, running keep it secure. And how do you bridge these two worlds and bring them together? We call it DevOps and, you know, ITA and the traditional, kind of new developer. Reality is, you're trying to bring the two worlds on a common platform. Whether it's VM's or containers and so the exciting part for us is, how do we unify? How do we deliver this experience and give them the choice, where it makes more sense. And blur the lines between public and private. Those are just locations and makes more sense for your customer or your application that you can drive. >> Bobby: Right, excellent. >> We find ourselves in those conversations, all the time trying to bridge two sides of the equation at a customer and trying to get them together on a uniformed strategy and weighing the pros and cons of different locations or different workloads. So, it's not easy, it's not a challenge of course. >> Peter, I'd love you to bring us inside some of those VMware on AWS customers because, you know, some of the first customers I talked to, it was, you know, I'm a VMware shop and there's a part of your group that's like oh my gosh, I can't change and this was a driver saying hey, you don't need to, we can bring you along. But, the value, once again needs to be Oh hey, I need to do some innovative things I want to be able to access some of those cool amazing services that, you know everybody is providing on a daily basis. So, you know, are you seeing that progression are there any interesting use cases that are coming out? >> Progression is the word, we could call it progressive transformation inside Rackspace. Like, you're a VMware customer let's bring you ion the journey towards public cloud. And let's help you leverage those address services. So, we find ourselves in a great position where a very large number of engineers, that support our native AWS workloads, we've brought those two groups together from our VMware expertise and address expertise. So when a customer lands on a VMware address I consider it a failure, if they haven't transformed part of the application in three months. If they're not really consuming those native AWS services. And that's what we really try inject. It's like, get our AWS engineers looking at those workloads let's start consuming those native services and that's what we're finding really exciting about how customers are starting to adopt and starting to plug and play into some of those services. >> Oh I look at it, as you know, you'll see a team Sanjay called it M&MS, migrate and modernize but a part of the migrate is often modernize your infrastructure first by putting on a modern cloud platform. And then modernize your application using cloud services. How it says, it's M-M and M, right, to follow through because it's not just about lifting and shifting keeping the old crap as it is. You got to really start to look at how do you drive innovation drive your Cube to a better place. So that you can operate it more affectively and then modernize for application results. And your service blocks, are really catered to helping that customers. So you can talk a little bit about how they're building the services that compliment our offer. >> Yeah, so our service blocks is... In the past, we offered them one big block manage service to a customer. We realized, let's decompose that and offer the customer what they need at a specific point in time. So we, think about Lego blocks, where at some point you may need, just some support or at some point you might need some architectural services and design and other times you might say cost optimization. That sort of stuff. So over time, we're adding on these Lego blocks if you will, to add a customer, to give them what they need at the point they need it, and not more. So, it's an exciting concept that every month, we're adding more services. We launched a Rackspace manage security service block today specifically for VMware cloud. So, we continue to add these and provide incremental value. >> I want to ask you a little bit of a controversial question. There's a saying, pioneers take the arrows but settlers take the land. >> Right >> So, if I'm a technology leader how do I embrace all this newness without getting shot, partnering with your firms. >> So, you know, we always say lock-ins bad but reality is, we always choose to reject technology platforms. And if you're a VMware customer I hate to say it, you're running on VMware infrastructure you have VMware ecosystem, you have VMware run books you have VMware partners, managing your on-prem assets what if I could you a path forward on any cloud of your choice without having to change any of your day-tot-day operation while leveraging the innovation future. What is the safest path for you, Mr Customer? And so, in this world, you can think of us being laggard in some sense. Because we're not pushing them to a single destination. We're giving them that choice, leveraging the strength. I think the innovative part that we've done today has really brought containers and VM'S in a single solution. We talked about containers killing VM'S two years ago, right? You know, VMware was getting trouble with docker VMware was going to be trouble with Openstack. Where are those two companies today and where is VMware? It's about simplifying for the customer a common solution. And we're taking those choices away and making this easy. Giving partners who can help them on their journey. So, I would say we're the safer choice. >> Okay >> That will be my response. >> Peter, we're not going to ask you about Openstack. (Giggles) >> I'm really back to VMware, it's working progress. (Giggles) >> Interesting point, the settlers right? At this point VMSware and AWS is two years old I think that first year, what was definitely some pioneers our there. But now I think we're really in there where the settlers are coming on and we're seeing large-scale adoption in the platform and now that VMware is offering more and more services, natively we can add more those managed services and help those customers really transform and not worry about the underlying IS that's rock-solid at this point. >> Peter, I would like you to get into it a little bit, kind of, the containerization and the kubernetes, you know, Docker, obviously a lot of hype, but containerization that's hugely important, you know a lot of the keynote this morning was talking about cloud native. I talked to lots of customers, you know there's some that, yes, they will want the VMware journey but many of them say, well, If I'm going to cloud I can just use containers. Why would I have the overhead of VM's? when cloud founders was originally created it was not for that type of environment. So where does that fit into, you know your world containers? >> Yeah, we actually launched some more services on that today as well, some more professional services and manage services, so safely around advanced kubernetes support, across all our platforms so this isn't just a VMware announcement this is on AWS, Microsoft, Badger and Google. So, another exciting progression, or hybrid could story and making investments in those resources to deliver kubernetes. We also launched a cloud native service block today, as well, that is really giving customers access to deep engineering skills and giving them cloud reliability engineers that can help them transform their workloads and get them ready for the cloud. >> I think, for us, if you... Project (mumbles) sorry tan zoo as a solution, and project pacific. Our two marquee announcements we made this week and if you look at the way we're focusing on the bull run manage aspects of the full life cycle and our active participation in the kubernetes community we're starting the beginnings of what I felt, like Java in 2000 when I was at BA, right? Where Weblogic and Java was the runtime for rolling and building new apps. Kubernetes and containers are the new runtime for building distributed apps across Cal platforms. And we're in this early journey and we are uniquely in opposition with the combination of pivotal for build. With project Pacific we're bringing containers into V&V-sphere, so VM's and containers become first class. Trough your point, we demonstrated eight percent performance improvement over bare metal on a V-sphere container based solution. Starting to engineer, based on a key scheduling work that we do in the kernel and in the hypervisor we're driving that deep into the kubernetes platform into the core platform itself. And then manage is going to be the new interesting bit. What is that control panel that everyone is going to fight over? And the manage services partner can help them choose. So, I think the battleground is more and more going to manage I think we secured our base with the runtime. And the bill will be about choice. (Mumbles) >> And Tan zoo is music to our ears we can now, again, focus on what's the additional manage services and service-- >> How do you help customers build apps? And change the engineering culture is what you provide. We just give you the runtime across any of these clouds. >> We want to help everyone, transform applications also transform the culture and how they do their business all that rapport-- >> Engineering transformation is a big one. Sajay transformation we talked about, internally for us VMware, same with our customers. You got to change the mindset of how you build the applications. In this container service based architecture >> Agree, agree >> What else is keeping folks up at night? That you talk to? Love to know that, just hot tail. >> Nothing keeps me up at night it's an exciting world we live in so loaded question, what excites me? What excites me is the progression, that VMware is making and the announcement Lydon video and GPU access link I think, early next year. I think that can be another wave of VMC adoptions. So, not keep me up at night but keep me interesting and excited. >> I think to that point I can build on what Pat said about tech for good, I mean we have a joined customer feeding America, right? We're now taking technology and making it available so that, you know, the 60 000 plus distribution centers they have, are up all the time. They're not even worried about infrastructure. They can focus on feeding the cause which is, I think 47 million people being fed. It's scary, right? >> Well, we want to bring it back to the organization of the discussion, you said you're helping customers with because we are worried you know, about how racking, stacking, configuring how doing all of those things, you know how do you help them? I talked to a number of customers at this show and they said look, my roles in my organization is still hardware to find And it's tough to move into a software role but if I want to get into the6 tech for good I need to be able to uplift my skills uplift my organizations, yeah. >> It's difficult, right? Organizational changes differ for every company but as part of the digital transformation there is also organizational transformation so we're having customers think about what is the progression form a VMware administrator to a DevOps-- >> Or cloud, I bet. (Giggles) >> It's not easy, it's your short answer on that. >> I think for us, is really starting to drive the cultural chance providing the tools and bring the self service in where they can be a coach, right? Be the trailblazer, who can come in and help change your organization. Teach them how to do it right. Not everyone will get there, hopefully bulk of the organization can shift right. >> Peter, I want to give you the final word you know, your partners and customers to understand. Take aways from VMware 2019. >> Yeah, it's great to be here, as usual thanks for having us. I think, Tan Zoo is really exciting. The progression that we're making with adding service blocks on top of VMware and AWS and or other hybrid cloud announcements. So, great to be here, but the Tan Zoo is kind of the story of the show. >> For me, it's a VMware is here to stay. We want to be, be have been, your strategic partner for the last decade. We're here to stay for the next decade. We're going to help you solve these hard complex problems and give you the choice you need. Across a broader ecosystem of partners and solutions. so, very excited to be here and to deliver that value. >> And Peter, thank you so much for joining us again, Bobby Allen, thank you for co-hosting. I'm Stu Miniman and as always thank you for watching theCUBE.

[Music] hi I'm Peter Burris and welcome to another Cube conversation from our outstanding studios in Palo Alto California got a great conversation today we're gonna be talking about some of the challenges and changes taking place in the MSP the managed service provider part of the marketplace made possible by software to find when SD Wang technologies and to do that we've got Alastair Johnson as a principal architect at nuage Networks here with us on the cube today Alastair welcome to the cube Thank You Peter it's great to be here so let's start corporate update nuage Networks what's going on well we've had a pretty good year so far a number of customers that we'll be announcing over the next few months that we've established this year in addition to the the major wins that I'm sure most of the markets familiar with over the last few years we're really seeing that in the managed services space that Sdn is gaining a lot of traction we're finding that particularly outside of North America but with increasing North American interest that enterprises are looking towards a managed SD wine service as opposed to doing it themselves going down the path of having a carrier come in and provide them with both connectivity and the service layer or looking at taking the service layer from a managed services provider and sourcing the connectivity themselves so this is an area that's especially fruitful and open for some significant innovation and innovation that's going to have enormous impact in how the market pays so let me let me run something by you so here's the observation I've made over the years that servers Moore's law meant that there was this kind of smooth growth and performance and even in software it would kind of followed Moore's law but network because of its because of the degree of interplay and natural integration amongst the components there was always this kind of weird step function where every four or five years the big telecommunications companies our managed service providers would make major investments in their networks and you got this very rough course odd step function and that sometimes scared some of these companies away from participating in all the innovation of the cloud have I got that right absolutely I mean the tradition of having both your service layer and your transport layer being coupled you know an IP Network is offering both the IP transport but also the services like MPLS VPNs or layer 2 VPNs has meant that you know the tech lifecycle became relatively long the process to qualify deploy managed and then eventually automate services and the delivery of those services took a long time Sdn has presented a really interesting opportunity for the carrier's as long along with the broader audience in the industry to really leverage software and the frequency of updates the software can give you without needing to make those hardware changes at the same time so you can still do the hardware changes but you get a smoother upward innovation curve absolutely so the underlying transport platforms the routers the DWDM systems etc those can be changed as needed to buy capacity demands or vendor changes or new technology that comes out in those spaces but we can use Sdn or in this case st wan to smooth out the service offering on the top and as it becomes a software delivered function we can upgrade that much faster and we can roll it out much more like we update our you know cell phones our tablets etc and introduce new functionality into the service layer much faster than we were able to do in the past where we had a very much a hardware coupled service offering now I made a comment that in many respects some of the big telecommunications companies some of the beginner Spees have not participated in this explosive innovation that's associated with the cloud and part of the reason is because when you think about cloud someone can say I can think of a new service and then they can create it and deploy because it's largely in software whereas a lot of the telecommunications MSP type companies go I get to give a new service but then they look around and they say oh the hardware's not ready and I don't wait for the hardware to be ready how does this notion of SD win and this software to find service layers start to alter the way that some of these big companies think about their underlying infrastructure cost structures how they think about automation how they go about competing for new services well well it's it becomes a very big competitive differentiator because you know I can be a carrier and I can offer new services much faster a we touched on I'm getting a benefit of automation very quickly because Sdn was heavily around automating the configuration in the service elements and I can become a lot more cost-effective with that you know customers are looking for more self control more self management information Diagnostics tooling etc but without the overheads of running very large IT and network specialized personnel so the carrier's get that advantage the enterprise's get that advantage everyone is getting you know effectively a much more modern service experience we saw that with the cloud I guess revolution if you want to put it that way that you know I no longer needed to order a server put it in a rack deploy an operating system put my application on it take six months that changed with the cloud everyone understands that the network layer did not change it's fast and that's where we saw Sdn and the data centers come along to address that problem that's what we're solving with sd1 as well so when we think about the relationship between big cloud players and some of these nm msps it is that we've got the big cloud pairs that are virtualizing everything the msps are still kind of physically stuck but still have the vast majority of those last miles that are so crucial to having that end and productivity and compatibility absolutely does that start to change as we start to think about new wireless technologies how does SD LAN improve the MS Pease ability to both bring new automation and bri new but also introduced some of these new technologies that will bring make it easier to think cloud last-mile in the same breath well it's an interesting point I mean you could look at an MSP that has no lost mile infrastructure at all.they or maybe reselling a carriers infrastructure or procuring a full their enterprise customers now they have the ability to actually manage the service layer and they could be using carrier a today to reach the customers location but they strike a new deal tomorrow with carry a B and they can swap that customer over effectively changing the engines on the airplane in flight the customer experience doesn't change for the enterprise they're still getting the same Sdn service but maybe they swapped from DSL to cable as a transport or they've added an MPLS service to a new site as well for greater reliability so this allows the msps and the carriers to you know get services out to the customers faster decoupling it from whatever the last mile technology may be and this where there's opportunities for wireless you know we're seeing a lot of interest from enterprises to augment with LTE and in the future 5g as a backup connectivity to their sites particularly in retail I mean I'm sure in Silicon Valley you've seen everyone here is swiping your card on a tablet well you know you don't want that tablet to be offline it needs connectivity or they're not making money so making sure you have reliable connectivity with the same experience is a big deal for these enterprises and and they're msps but it's not becomes part of a coherent solution as opposed to I'm gonna do my cloud thing and I'm gonna do my MSP thing absolutely and so that's another area where we're seeing a lot of interest I mean even if I look at what our internal IT is doing which is you know we need to make sure that the cloud is part of our LAN and we need to make sure that we can you know drop an application in our private data center but have resources in our public infrastructure also using that and the experience for me sitting at my desk down the street from here is the same regardless of where that application is being accessed from all right the last thing I want to talk to you about Alastair is this this notion I have I'm going to test something by you and see if I if I got it right and if I can if I'm anticipating some of the changes over in C so a lot of people presume that the cloud was a one-way ticket to something centralized and big and that had an enormous impact on how people think about the cloud we actually think about the cloud as a strategy in the technology for more easily and coherently distributing data and distributing function to where it needs to be on location basis and in certain respects I can look at the cloud kind of as a network programming model where the some of those hybrid cloud services are they're being introduced by some of the big cloud players now are really almost a layer 7 they're providing some structure to the developer about how to think about building hybrid distributed applications now I want to test that does that resonate with you from a networking standpoint absolutely and again that's something we see a lot of interest in a reasonable amount of demand as enterprises and their internal developers are getting their heads around that concept that the application can live anywhere whether it be on premises at the branch data center or in the cloud and that cloud as you point out can be rightly geographically distributed and being able to be the network glue that binds all of those locations together allows the developer and the IT organization supporting that developer to have you know if the effect of a single fabric regardless of where the application or the user is seamlessly connecting them and so it also suggestions there's nothing on a test with you that that that we are it makes it possible to imagine greater specialization in what those distributed services look like especially from a networking perspective which means that if MSPs and big teller codes do successfully incorporate some of these technologies improve their automate ability their ability to think about the service and then deliver the service very rapidly then we could see them actually being able to pick up a sizeable piece of this cloud business because they can introduce services that are specialized with a network strong network affinity that have that build on that heritage of distribution of function absolutely and you see that today you know the carriers are already providing a valuable service connecting the enterprises to the cloud but that goes beyond in you know an SDN 2.0 model I need to move certain applications to the branch there's some things that always need to live there and as an IT manager I need to manage that networking effectively but I have applications that I want to have that are running you know in a very public cloud you know SAS applications etc and I want to give my users the most efficient path to them but I also have my private applications that it may be running in a public environment but I want to carry that as if it was part of my internal corporate one and being able to get that the from an enterprise you know services perspective from an MSP from a carrier that can bundle all of this together that's a huge advantage and a time-saving for me yeah the one other thing I'd say is that we're actually talking some very large enterprises right now that are discovering that their customers there their customers are demanding very concrete strict and well-documented notions of the capabilities that they provide and this idea of SD wine is making it easier for them to sell services in to companies that want that digital interface that highly competent working digital interface absolutely so it's what last thing is we think about where this is going is there any technology on the horizon that you think Sdn is going to make easier to deploy or that's gonna make SD went that much more important oh that's an interesting question and I think as you know the ongoing digital transformation of business happens you know we're connectivity is more important than ever making sure it's reliable and available and that the user experience regardless of what type of site I'm visiting as a you know an enterprise employee making sure that you know my telephony works that my can access my documents that my R&D teams can span the globe that is a key requirement of today's enterprise at Nokia that's how we need to work internally and that's how we do work I travel around the world visit our offices my experience is seamless in the same and that I think is where Sdn is bringing a huge amount of automation value security in many cases and tell you some great anecdotes that we found in the Sdn world there and just the management and control layer well let's save another cube conversation to talk about those security antidotes well but this is Peterborough's we've been talking to Alastair Johnson who's a principal architect at nuage networks about the potential for SD when to increase the relevance of MSPs telecom providers in a marketplace that is being dominated by the cloud experience and how greater automation leads to improve service opportunities for a lot of customers and a lot of cloud related service providers Alastair thanks very much for being on the cube thanks Peter and once again on Peter Burris and you've been watching another cube conversation until next time [Music] you

>> That's sort of what I bring, is an ability to catalyze the conversation, and share that knowledge with others in the community. Our philosophy is everybody expert in something, everybody is passionate about something, and has real deep knowledge about that something. What we want to focus in on that area and extract that knowledge and share it with our communities. This is Dave Vellante, thanks for watching theCUBE. (smooth music) >> Live from Orlando, Florida, it's theCUBE. Covering Microsoft Ignite. Brought to you by Cohesity, and theCUBE's ecosystem partners. >> Welcome back everyone to theCUBE's live coverage of Microsoft Ignite here in Orlando, Florida. I'm your host, Rebecca Knight, co-hosting with Stu Miniman. We have two guests for this segment, we have Anna Chu, who is a Senior Product Marketing Manager at Microsoft and Shona Chee, Product Marketing Manager Diversity and Tech Community Lead. Thank you so much for joining us. >> Happy to be here! >> So, you are dressed very similarly. (laughs) >> Yes, we are. >> Yes, so we're going to get into diversity, because I want to go there, but let me start with you, Anna. So, you are really in charge of the community within the vast ecosystem of Microsoft. That's a big job. So how do you go about it? What's your approach to the Microsoft Community? >> Gosh, well, it's a lot of work. I've been leading the community efforts at Microsoft Ignite for the past two and a half, three years. And ultimately, it's all about the people in the room. These are IT pros, these are developers; people who care about technology. It's also end users as well; people who are business-focused. So we really want to make sure that we're delivering content that is going to help them go back to their communities, go back to their offices and be able to share all that knowledge back into the workplace. >> And Shona, so then you are within a slice of that community. So focusing on diversity and tech. So, what is your, how do you operate? >> So we see diversity as really closely integrated with technology. So we are a community that lives on the tech community. So there's a direct link, AKA dot MS Life Diversity and Tech, but what we're pretty much doing is bringing people together. All the tech communities to talk about important topics of diversity inclusion. So, traditionally, it's always been very HR driven, a lot about talent and acquisition and recruitment, but for us its really about what about the people in career, how do we help them feel like they belong, and they're apart of this ecosystem. So that's where we see the symbiotic relationship. >> And I have to say that it's my first time to the show. I've watched it from afar, I knew lots of people that were Microsoft MVPs over the years, very impressed. Maybe give our audience a little bit about what goes on in the show. You got all the podcasts going, there's meet-ups, there, you know, lots of good flare you're giving out at the show, and everything else like that. So, what's everybody missing that didn't come to this community gathering? >> Gosh, I hope I didn't miss out on anything, really. I really hope that we were as inclusive as possible. But every year we try and make the event more community infused than ever before. In previous years, we just really focused on content that would be live on a stage, such as at a theater or a breakout, but we really want to add a little bit more of the networking side of things too this year. So we've invested in the meetups, which are more formalized ways for the community to find their people. But we've also invested in idea swaps, such as a brand new concept that we've landed here in Microsoft Ignite, where we have group idea swaps where people are putting together topics that they want to meet with others about. And we also want to facilitate more one on one networking because personal relationships are such a critical part to being professionally strong in your career. You can't be successful without other people. So we really want to enable Ignite to be that platform. We've got people from all around the world. Shona's got this amazing pin wall in the Diversity and Tech area that showcases where everyone is coming from. There are people coming from really remote areas, to people all parts of Western Europe and the US, and I think there's a lot to be gained from people being able to find each other through Ignite. >> And what we always tell attendees is everything is live-streamed or recorded in terms of sessions, so the biggest take away here is really people and communities, so we really encourage people to meet-up, build valuable connections, just talk about topics that might be uncomfortable so that we can learn from it. >> Such a great point there. It's funny it is one of those pro tips out there. First of all, when there's a really big convention center, and there's a lot of people, there's certain sessions that you want to be at. Maybe you want to talk to the speaker in due but, when you find time on the plane ride back or spend a little time in that suite, you can go re-watch some of it, the people is really what drives everybody to the event. >> Where else would you meet 25,000 people in one venue, right? So it's really exciting. >> Shona you said talk about topics that are a little uncomfortable, those are the hardest things to talk about, particularly with a group of strangers. So what has been your experience at this conference, what are people saying that might count as that? >> Right, so the recent inclusion has really come front and center in terms of topics that's hot in the IT industry in particular. So traditionally people think about diverse inclusion as gender, right? Men and women. But, we're seeing that it's a lot more multi faceted than that. We're talking really about intersectionality of identities, all of us hold multiple identities, I'm a woman in tech, I'm an IT professional, I'm a millennial. So there's multi areas that we deal with, but we need to address each and every one of them. So for example, this year we have a lot of sessions focused on LGBTQ, and we also have our partners talking about this topic as well, and just really getting people in a room to say help me learn more about this area that I'm not that familiar with, or let's talk about race and culture. What do people in your culture do? What is the norm, what is acceptable? And that's why we also partnered with Tech Women, it's a US department of state initiative where we invite women from developing countries to come share their experience being an IT pro in those countries like Algeria, Tunisia, Lebanon. So we really want to give them platform to interact with attendees, but also giving mostly North American and European customers a chance to hear from someone in a completely different cultural setting. >> And just talking about all the various identities that we all encapsulate. Is the workplace the right place to talk about those things? That is another question too, in the sense of we are bringing our full self to work and we are spending so many hours at work. But at the same time, what is the right balance, do you think? >> Yeah, I think that's a great point. On the Monday leadership panel, we actually talk about leadership and building inclusive work cultures. Like you said, we spend so much time in the office, sometimes our coworkers become our family almost, right? How do we create and environment where people feel like they belong, where they feel like they can be genuine and not feel like they have to hide something, because in-authenticity really shows, and we want to encourage people to just feel like they have a safe place to express themselves. >> So in terms of advocating for yourself at work, I know that's another big theme that is in the diversity and tech workshops, what is some advice that you have for women, for underrepresented minorities, for people of various sexual orientations to make sure that they are having there careers that they are capable of having, and not being and not coming up against other biases and challenges. >> So in the Tuesday session, Donna Secaur actually talked about this, which was a great point, she said, you can write your own story, you can't control what people say about you, but you can control what's out there in the media, you can control how you do your social media profiles, and I think it's really encouraging people to take a look at what's online. Brand yourself how you want people to see you, and be proud of it, I think that's one of the biggest points. >> I also think that Microsoft Ignite brings so many people together, but they all have a common mutual passion which is about technology, and if that manages to bridge build bridges between people who may not necessarily get to know each other, so people from different religions or from different ethnic backgrounds, who don't really have that opportunity to get to know each other, and then they find a common passion, or they also face the same challenge on how to govern teams or things like that then suddenly we're doing a lot to help, build bridges and just drive that human connection so we can get beyond some of those challenges that we're facing in 2018. >> One of the ideas that bridges both community and diversity is career paths. I know a lot of the shows they go is how're we taking somebody from a certain world that growth mindset that we hear Sasha talking about how're you looking to address that and how is that discussed in the communities? >> Gosh, we've just launch a completely new Microsoft learned platform as well, one of the things that is really important ab6out learning is actually learning through community too. And if we can enable people to find their own people by helping them share best practices and tips, and we've made huge in roads there. So one of the things we've run as part of Microsoft Ignite, are community socials. So community socials are a way for people to find their people. So we've hosted ones for Microsoft Exchange an6d Outlook and we can make an element of fun out of that too, so there seems to be a certain personality in that community called squeaky lobster, I don't know if you've heard of squeaky lobster. It's some sort of inside joke that even I don't understand, but apparently he's a personality, and he's here to unite the community together, and then people will come together, and they'll talk about Exchange 2019, and they'll talk about how that impacts other parts of Office 365 and Microsoft 365, and then they'll talk about all the different ways that they can connect with each other as well. So it's a very amorphous thing. From a learning perspective, we have a lot of things that we can do to create platforms for learning, which is really awesome, but at the end of the day we have to learn through community because it's just IT professionals and developers are having to learn at a crazy pace, faster than they've ever had before. So that's a really big part. >> And I like that you mentioned career paths, because we just partnered with the MVP community to launch a community mentors program, and that's where we partner with over 700 participants all around the world from 65 countries, and over 800 years of combined industry experience, to have mentors work with mentees from other countries, and do a lot of cross sharing, just sharing expertise and best practices. >> And you have your student ambassadors here too. >> So that's a new thing that we've also rolled out at Ignite this year, we've invited seven student ambassadors from three local colleges here, and we invited them to work with our community reporters to push out some exciting video content. So that helps them to get a flavor of what kind of roles are out there in tech. We want to debunk the myth that you have to learn coding to work in technology and that is not true. There are so many amazing IT pro roles out there that we really want to educate people on. >> So the technology industry at this point in time has a very bad reputation in terms of diversity, there's not enough women, there's not enough minorities, there's not enough sexual orientation diversity. Coupled with this real bro culture, what's your best advice for technology companies today to be more inclusive, that's one of Satya Nadella's real guiding principles is embracing diversity, different perspectives, and being inclusive. How do you do it? >> I would say the first thing is really, just take the first step. We're all on a journey, this is a really big hairy issue that we're all working to tackle, and we cannot do this alone, and that's something we've heard consistently with all our partners. We are working together to tackle this as an industry, and I can't speak for other companies, but at Microsoft we have a strong culture of empathy, and as you know from Sasha's key note we're all about empowering people to be the best that they can be, and that is why we've developed code of conduct, we make sure people know what's acceptable, what are the boundaries that we can talk with, but still push the limit and say, hey I want to learn more about your culture, I want to know more about the LGBTQ community, I want to know about inclusive design and accessibility, how do I build technology that is accessible for everybody. So I think it's not easy for sure, even for Microsoft, we are still trying a lot of things for the first time. We learn and we grow from it, and we just keep improving it every year, so we hope that in future Ignites it will be even better. >> And having community members, even individually own being a champion for diversity too, whether it be in their own organization, or in their own user groups that they run, we really want to make sure that they are feeling like I can be an ally for diversity, whether you are someone who is the the typical persona in the IT pro world, which is a white male, and I'm really glad to hear a lot of these stories of people saying you know what, I am going to be that person that's going to step in and say something when I don't think things are right. >> And there are topics that everybody can relate to as well like mental health and wellness, that's an issue that's really come in the spotlight with a lot of stress in the industry. So it doesn't matter whether you're male, female, your gender identity, all of us are human beings. We all feel the same pressures and stress, and we just had that lunch session where literally tears were shed because people felt like I now have space to say I'm struggling with this, can you help me? And I think that's a really powerful thing to even just get started. >> It does require a lot of bravery, I think. Because for me even, I like to be able to find other people that I can relate to, who also share some of the same challenges that I have, and so I think that's the first step really, basically opening the doors and letting people express themselves and then other people are also going to feel like they're included. I think that's really one of the first steps. >> And where better to do it than a community. Finding your people in this space so yeah. >> And I want to ask about the buttons you have on so, yours, Anna's says Ringleader, Shona, game changer. >> Networking ninja >> And Networking ninja! I love it. So can you explain what these mean? >> Yeah so this year we want to try to really interactive button wall and we want people to come, and feel like they can share what's there diversity super powers, so all of us play a really important role, we where many hats from a day to day basis, but we want to know, what do people feel like is there ultimate strength, whether you're a mentor, are you an enabler, are you a supporter, what is it? And these were just great conversation topics, so if I saw that Anna's a Ringleader, I might come up to her and be like, oh that's me too, can we talk and schedule and idea slot? So we just want to create a fun way for people to interact, but another important thing we've launched this year is the pronoun buttons, so we want everybody to feel like they can be comfortable telling people what is the pronoun that they prefer rather than what visually people think they are, so that is something that we've launched this year as well. >> Very cool, very cool. Well thank you both so much for coming on theCube, it was really fun talking to you. >> Thank you for having us. >> I'm Rebecca Knight, for Stu Miniman we will have more of theCUBE's live coverage of Microsoft Ignite coming up in just a little bit. (smooth music)

live from Las Vegas it's the cute covering knowledge 16 brought to you by service now hear your host dave vellante and Jeff Frick we're back this is the cube silicon angles flagship production we go out to the events we extract the signal from the noise the signal here at servicenow knowledge 16 is the extension of service management across the enterprise Brian Andrews is here is a vice president of IT it's stone brewing cube alum bride great to see you again thank you it's great to be here nice to see you guys another knowledge you know I thought happened a good energy this year yeah you know I spent third knowledge how's this week been for you oh it's a blast yeah incredible energy and growth and excitement from the company the partners it's been fun so third nology that service now for two years yeah right and so what the first knowledge was sort of come and kicking yeah exactly talking all the customers is this stuff Rio exactly last year we got to speak and this year were in the customer showcase which is new one of four and telling our story about what we did and meeting other customers and partners it's fun so give us the update what's the story um you guys are growing yeah yeah so stone brewing we're the 10th largest craft beer company in the country and growing double-digit growth so yeah we're now opening a second brewery in Richmond Virginia and a third in Berlin Germany doing two at the same time which is pretty nuts for us it's a du Bois so it's a large focus for the company we're actually the first American craft brew company to open a brewery anywhere in Europe and to operate it we're on right to Berlin and in Germany hell with us I know right right into the fire I doubt well I talk about that business decision to go into Germany I mean beer central I know I know well crap beer starting to really take off in Europe and we were looking at sites all through Europe and really fell in love with this property in brillion it's a old gas works facility brick a neat place for garden inside it's just really a neat place but the crappier movements has a lot of energy there and we feel like that can be our European hub to brew and distribute throughout Europe so it's a great spot a great place to come visit and spend the day and enjoy the gardens and that's gonna be a lot of time we have a really a large bistro going in as well so it could be a place you want to stay and hang all day yeah girls that's right that's right and house I'm just curious we don't find you know kind of the German purity laws are there special you know Germany's a very special place to do business for a whole lot of reasons HR reasons and data privacy reasons and this that and the other from the brewery perspective you know we hear about their purity laws do you have to you have to follow those is your new animal as an American craft beer manufacturer how does that work well so most of our beer that we do the core beers they do fit right into that our stone IPA arrogant bastards they fit in but we do a lot that do not fit in because we add in espresso or tangerine or good stuff like that so we're purposely going to be knocking down that bureaucracy and being rebellious we had a event last week where we served only beers that did not comply with the law true to our culture were rebels and it's exciting for us so i have to say i mean german beer is special I'd consume a lot of German of year in my day and somehow the next day you just feel great yeah absolutely is that the experience with stone yeah yeah it's gonna be you know I think a new to get the strong you know bitter forward hot forward IPAs that we serve will be different that's awesome now you guys you find you saying brought in service now from the business side yeah first we did an NIT but you but you led that acquisition so two years ago we were looking at putting in a set of systems for the business each group had their own needs and they had selected systems they want to bring in the brew ops maintenance was number one that we needed to serve as a use case so the demand was really growing for our beer as it's been we need to keep up with the demand and so we can't have the brewing and down we were turning to a 24-7 operation and the brewery anytime a piece of equipment was down we're not getting beer to our fans I'm not serving our customers so we we needed something for planned maintenance to keep that equipment rolling facilities wanted something as well for maintaining the facilities and HVAC units and all that safety I wanted something for reporting incidents they were all all those groups were outlook and excel and so they needed a system they didn't have one we had some project management needs in our marketing group and of course I T wanted a great system too so we looked at those and said we can collapse all these down into one system with service now because in the end they had a common set of requirements they wanted workflow and reporting and visibility work order management so we did some proof of concepts and they bought in and we deployed service now to the business first because they had nothing at least I t had something it was antiquated we had something so we serve we serve them first and so you're one was all about putting those platforms in place to crawl walk and then you're too we're optimizing and now we report some with some terrific results that have come out now by using it I get a triple it and take it overseas no you go right straight to the run that's right that's right and fly haha so as you grow what role do you see service now playing I mean have you been able to sort of sense or measure the productivity impacts and we've had some great results that come out of this so our brewing department as I said they need to keep that equipment rolling any downtime was hurting us we cut the downtime in half by using planned maintenance and so we use not only the corrective work orders but planning's we have 2200 items from the brewery and packaging in our cmdb we're unplanned maintenance against those now half of the work orders that were completing our plan preventative in nature those were a very small percentage earlier it was more reactive and corrective moving to planned we're more on top of things more proactive and the equipment's up and running longer so she's meant to the CMDB so you if you've got a single cmdb or you there we do yeah single cmdb for all the brewing and packaging equipment and it's all as a nice data hierarchy so we can know that it's the escondido brewery it's brewhouse one and it's the latter ton and that has valves and pumps and sensors now those items might be used at other pieces of equipment too so we can put those assign them to different items in the CMDB but it's all in there and organized and we can you know see how we're doing on cost control and when we need to replace equipment or maintain it and on the preventative is it implementing you know suggested best practices by the manufacturer of those components or did you guys come up with your own kind of maintenance schedule based on operating experience etc yeah primarily from the maintenance from the manufacturer so we have those in is knowledge articles as well and then week but we have around procedures that we also would put in there and those those are put through in the work order so the technicians can see those and then one thing that's really nice is when we have down time in the brewery for maybe the brewing team is doing training we can see all the planned maintenance coming up and accelerate some so we may have something for next week we can move it up by a few days or something we may want to delay so we can have less downtime and group it together and do that maintenance all at once what kind of modifications have you did you have to make or did you have to make bringing in service now well we were a little on the bleeding edge in some cases a couple years ago as we were putting in the facilities maintenance and the planned maintenance so that was just starting to come out with service now so we had to build some custom tables and are we want to make sure it made sense for the the context so we had crafting assets and crafting systems those kinds of things so the business contact makes sense but those are now coming in out of the box so we're starting to pull back on the customization so it was not too bad a few things now as we excited the facilities and safety we want to make sure we could tag items if there's a leaking valve or exposed why are those kinds of things we can tag it as a facilities issue a brewing ops issue but also note it as a safety issue Safety's big it's down we're going to make sure it's a safety safe environment for our team we've cut injuries in half by having a focus on people and training the processes but also having this too well now to make all the issues visible and real-time so we're having a hundred percent increase in safety issues reported to us so we can see more they were out there before and weren't being reported or lost an email in Excel so we're seeing those now more proactive fixing and cut injuries in half we're really proud of that talk about the process behind that because we always talk about the you know the people process technology technologies one piece a fool with a tool you have blob of ulva all the little idioms but you're using service now as a platform to enter those incidents those safety incidents but somebody's got to actually do that right so then is it the person who got injured and what's the incentive for them doing that or explain the process behind that while safety is woven into our culture so we want to make sure day one everyone knows that's critical for us we want to leave as safe as healthy as you were when you started your day so what we have is that that form is available through our Service Catalog along with IT requests facilities request burry there's a safety incident you can report those come through from the team member that saw it so it could be the person that experienced it or someone who saw something and maybe they're working at the packaging line and they see something that could be an issue so those those could be sent through easily on a tablet or from their workstations and then the safety manager gets alerted to that works the q's runs the reports passes it to who's in charge it may be fixed by the facility's team or an engineer so they pass those tickets along that's a real plus for us having that on one system because originally the brewing folks wanted their system they were used to and that was different than what facilities had used before or safety in their previous companies but bringing it all together in one they can pass those tickets long and tracking a lot easier in one system then you're able to identify commonalities and an attack like they showed this morning's keynote the big red box you know that's right and so you were able to drill down into those and then try to put in new processes yeah remedi eight and of course all the categories what types of injuries are happening you can focus on the top ones you know is it slip and falls or lifting or forklift and those tie into then training and certification and getting people recertified so it starts the tide of learning management program as well but the other thing we hear over and over is that in the the implementation and execution with service and out and in department a and then it integrates over to b c and d and they start to say hey we want to do this two of every are you seeing a proliferation beyond kind of what your core initial delivery was oh absolutely yeah people are there's a conga line we like to say people waiting to get on our next is going to be project management for getting a new beer released so that's a seven month process or so to get from concept to actually getting the beer out the door and so we're going to be putting that all in service now for project management and having those tasks visible for everyone involved it's a really cross-functional effort to get a beer released and many different groups have to collaborate and making that visible in a single place single plan having dependencies in there and what we love about the project management suite is that the work being done is in the project plan but it's also the tasks that could assign the people to do the work and if they're getting production support or incidents that come through they can see that and there my work use along with their project work all in one place so we're really excited about putting in project management ago what are you using today for project management well for that new beer process that's a lot of Excel spreadsheets and email some document word docs those kinds of things but we have MS project and project server that we're using for construction projects but there's a lot of manual work that goes with that yet will you and have you when we will start with have you when you brought in service now were you able to retire some systems did you get rid of stuff well for IT we had a system it was the tracking system from BMC so that's one we wanted to replace so we're rolling it out for IT was a big win and that's now gotten pretty far wording incidents and change we'd like to get into problem and really start to mature that but we put the business first so I t's taking the backseat on resources but it's definitely we're well past where we were before so we'll be putting the assets in the database for IT as we've done for the brewing equipment and the facilities equipment and really build out IT ahead but ms project will definitely be retired as you move and most of the other ones the media department has a system they used called a sauna and they use that for project management that will also go when we have the new beer system getting launched with project management do you how do you deal with the organization or is their organizational friction people say want to hang on to the last user ah the other stretcher right right how do you deal with that ah well so most of the folks were using outlook and excel so those are pretty easy they really they needed something and didn't have it so those were easier wins but you know there's some the change management interesting because when you look in the magic quadrant you know what's the best maintenance management systems or project management systems and service now yet isn't out there right because it's the best in service management but getting people to see that it can also be a terrific system for project management or maintenance is a bit of a stretch right so you have to show them really well what is it you really need what are those requirements so let me show you so we've done some proof of concepts and that's been helpful to get people to see as well and believe because they see it as an IT system mostly when they go look it up but we've shown what we're doing and they get it it's exciting so we started last year we talked about time to value when we sort of joked time to beer right have you been able to actually quantify that do you see faster time to beer well it's like having that brewery equipment up and running has been big for us and cutting that in half of the down time we're getting the beer out the door so that has been the biggest win for us really I think with the seven-month new beer release process although cutting that time down isn't the number one driver of that it's more about getting it visible and collaboration and people working Heather I think that that's will be pleasantly surprised with how that's going to decrease so give us the road map over the next 12 12 months what do you be working on what's what's exciting you yeah so a couple of big things so we'll be doing that new beer project management we're also gonna be integrating with our ERP system so for the team that's getting those that maintenance requests in for the brewery they want to get those parts consumed from our European get the parts in we can track the total cost of the maintenance that's going on but also trigger reorders for the parts based on min values in our ERP so that'll be a nice integration will do the new beer and then we want to get IT mature through the IT Service Management and we're seeing so many great things with that performance analytics that's exciting to us because we're getting a lot of data good operational reports but we'd love to get some of that predictive business intelligence coming so those are a couple areas we're really looking at this year and I think also making take advantage of that the tools to make the user interface really nice-looking will be great so our service portal Service Catalog has a lot of great items on there but it doesn't look that great yes we're gonna make it look slick with some of the new tools and I guess helsinki's got some really good so you service now for that ui/ux yeah and yep NP you say bringing forth part parts of Helsinki yeah yeah so we're upgrading later this summer we're moving to Geneva in a couple of weeks and then we'll be really focusing later in the summer and making that service catalogue look good now stones got some beautiful imagery we have great shots of the beer and our facilities really great external when people see stone has really just terrific images and videos we want to make that look as good on the inside as it does on the outside for a fan so people come in and join the company and see how good we are on the inside too that's important to us so who does that beautification do you have a UI UX team that does that or is it just what you guys are pretty small team only 17 and IT that take care of a thousand team members so we have we're stretched pretty thin we have a terrific system administrator who also does development you and another gentleman that works on our websites so I think collaborating together and the tools that are available I think we'll be able to make it look good internally and we feel you have some great partners as well awesome yeah all right Brian listen thanks for coming back to the the cube and sharing your stories it's we love having stone brewing on any time so you'll appreciate it thank you very much guys appreciate being here logo all right I keep right there buddy right the cube would be back right after this at knowledge 16 Vegas right back every once in a while