>>Hello, welcome back to the cubes coverage of Monaco, crypto summit presented by digital bits. It's a conference where a lot of the people using digital bits and the industry coming together around the future of crypto in the applicates got a great guest garage, rod cot, founder, and CEO of an innovative company. Love this co I love this company, Luke mogul, Rob, thanks for coming on the queue. Appreciate it. Oh, >>Thank you for having >>Us. Yeah. So I checked out what you guys are doing. You've got the sports metaverse angle going on with super valuable, cuz sports is super entertaining. Uh, people are engaged. There's huge fan base, huge online now, digital convergence going on with the physical, you know, you see all kinds of sports betting going on now everything's going digital. There's a whole nother consumer experience going on with sports and the game is still the same on the, on the field or so to, or the court. That's correct. Yeah. Now it's going to digital take a minute to explain what you guys are working on. >>Yeah, so yes, we are building out a sports ERs where we are bringing athletes, whether they're NBA stars, NFL stars, w N B a many of those athletes into meows giving them the ownership of the entire, um, meows commerce along with gameplay. So that's something from our perspective, this, uh, this is something that we're focused on. We're building out stadiums. Athletes can own stadiums. Athlete can create their own training centers, media hubs. Um, and imagine Lisa, Leslie for example, is building out a woman leadership sports academy, right? We have Michael Cooper building out defensive academy. So those are all the brands. We have 174 NBA w N B stars. And, um, and we are building out this, >>The brand is the brand, is the platform that's correct. That's the trend we're seeing. And it's, it's also an extension of their reach in community. So there's, they can convert their star power and athlete with owner's approval. If they probably write it on to the contracts, he, they can imagine all the complications, but they bring that online and extend that energy and brand equity yep. To fans and social network. Yeah. >>And many of these athletes are tremendous successful in their web two careers, right? Yeah. Um, some are current athletes, some are former athletes, but they have built such a brand persona where people are following them on Instagram. For example, Carlos Boozer. He has like almost 6 million followers between Twitter and Instagram and those kind of brands are looking or how do I give back to the community? How do I engage with my community and web three? And especially with our platform, we are giving that power back to the players. >>So you guys got some big names booers on there. You mentioned Carlos Boozer. You mentioned that Lisa, Leslie others among others, Michael Cooper throw back to the old Lakers, uh, magic. Johnson's kind actually here in crypto. We just saw him in the lobbies and in dinner and the other night, um, at Nobu, um, you got a lot of NBA support. Take a take, take, even explain how you're working this angle. Uh, you got some great traction, uh, momentum. Um, you got great pedigree, riot games in your career. Uh, you kind of get the world, the tech world, the media world, as it comes together. What's the secret sauce here? Is it the NBA relationship combination of the team explained >>It's really focusing on what, uh, we are building on me was focusing on players first, right? So players are literally, we call our platform as, uh, owned by the players, made for the players. Uh, and engagement is really all done through the players, right? So that's our key sauce. And when we worked out with NBA, we, we are part of the NBA BPA acceleration program for 2022 that is funded by a six Z, uh, and, and many others. Um, and our partnership with league is very critical. So it's not only partnered with player association partnered with leagues, whether it's NBA, w N B a NFL. So those are the venues. And this becomes almost a program, especially for athletes to really generate this lifetime engagement and royalty model because some of this famous athletes really want to give back to the communities. So like for example, I use Lisa Leslie a lot, but Lisa, Leslie really wants to empower women leadership, leadership, and really help, um, women in sports, for example. Right? So those are the angles that, um, that really people are excited about. >>Well, for the people watching that might not understand some of the ins and outs of sports and, and rod, your background in your team, it's interesting. The sports teams have been on the big day to train for many, many years. You look at all the stadiums. Now they've got mobile devices, they got wifi under the chairs. They use data and technology to manage the team. Mm-hmm, <affirmative> manage the stadium and venue and operations suppliers, whatnot. And then also the fans. So you, they, they got about a decade or so experience already in the digital world. This is not new to the, to the sports world. Yeah. So you guys come to the table kind of at a good time. >>Yeah. Especially the defi of the sports, right? So there's a defi of the finance, but this is the really, uh, a, a decentralization of the sports is something that there's a lot of traction. And there are many companies that are really focusing on that. Our focus obviously is players first, right? How do we give power to the players? Uh, and those are really driving the entire engagement. And also the brands >>How's the NBA feel about this because, you know, you got the NBA and you get the team, you got the owners. I mean, the democratization of the players, which I love by the way that angle kind of brings their power. Now's the new kind of balance of power. How is the NBA handling this? What's some of the conversations you've had with the, the organization. >>Yeah. So obviously there are a lot of things that, uh, people have to be careful about, right? They have existing contracts, existing, digital media rights. Um, so that's something that, uh, we have to be very tactful when we are working with NBA and NPA, uh, on what we can say, we cannot say. So that is obviously they have a lot of existing multimillion or billion dollar contracts that they cannot void with the web because the evolution of web three, >>You know, I love, uh, riffing on the notion of contract compliance when there's major structural change happening. Remember back in baseball, back in the days before the internet, the franchise rights was geographic territory. Mm-hmm <affirmative> well, if you're the New York Yankees, you're doing great. If you're Milwaukee, you're not doing too good, but then comes the internet. That's good. That's no geography. There's no boundaries. That's good. So you're gonna have stadiums have virtual Bo. So again, how do they keep up with the contracts? Yeah. I mean, this is gonna be a fundamental issue. >>That's >>Good. Good. And I think if they don't move, the players are gonna fill that void. >>That's correct. Yeah. And especially with this, this an IL deal, right. That happened for the players, uh, especially college athletes. So we are in process of onboarding 1.5 million college athletes. Uh, and those athletes are looking for not only paying for the tuition for the colleges, but also for engagement and generating this early on, uh, >>More okay. Rod, we're gonna make a prediction here in the cube, 20, 20 we're in Monaco, all the NBA, NHL, the teams they're gonna be run by player Dows. Yeah. What do you think? A very good prediction. Yeah. Very good prediction. Yeah. I mean you, I mean, that's a joke, I'm joking aside. I mean, it's kind of connecting the dots, but you know, whether that happens or not, what this means is if this continues to go down this road, that's correct. Get the players collectively could come together. Yeah. And flip the script. >>Yeah. And that's the entire decentralization, right. So it's like the web three has really disrupted this industry as you know. Um, and, and I know your community knows that too. >>Of course, course we do. We love it. >>Something from sports perspective, we are very excited. >>Well, I love it. Love talking. Let's get to the, to the weeds here on the product, under the hood, tell about the roadmap, obviously NFTs are involved. That's kind of sexy right now. I get the digital asset model on there. Uh, but there's a lot more under the coverage. You gotta have a platform, you gotta have the big data and then ultimately align into connecting other systems together. How do you view the tech roadmap and the product roadmap? What's your vision? >>Yeah. So the, the one thing that you had to be T full, uh, as a company, whether it's LUT, mogul or any other startup, is you have to be really part of the ecosystem. So the reason why we are here at Monaco is that we obviously are looking at partnership with digital bits, um, and those kind of partnership, whether it's fourth centric, centric are very critical for the ecosystem in the community to grow. Um, and that's one thing you cannot build a, another, uh, isolated metaverse right? So that's one thing. Many companies have done it, but obviously not. >>It's a wall garden doesn't work. >>Exactly. So you have to be more open platform. So one things that we did early on in our platform, we have open APIs and SDKs where not only you as an athlete can bring in your, uh, other eCommerce or web, uh, NFTs or anything you want, but you can also bring in other real estate properties. So when we are building out this metaverse, you start with real estate, then you build out obviously stadiums and arenas and academies training academies, but then athletes can bring their, uh, web commerce, right. Where it's NFT wearables shoe line. So >>Not an ecosystem on top of Luke Mo. So you're like, I'm almost like you think about a platform as a service and a cloud computing paradigm. Yeah. Look different, not decentralized, but similarly enabling others, do the heavy lifting on their behalf. Yeah. Is that right? >>So that's correct. Yes. So we are calling ourself as the sports platform as a service, right. So we want to add the word sports because we, uh, in, in many contexts, right. When you're building metaverse, you can get distracted with them, especially we are in Los Angeles. Right. >>Can I get a luxury box for the cube and some of the metaverse islands and the stadiums you're doing? >>We, we are working >>On it. We're >>Definitely working on, especially the, uh, Los Angeles, uh, stadium. Yeah. >>Well, we're looking for some hosts, anyone out there looking for some hosts, uh, for the metaverse bring your avatar. You can host the cube, bro. Thanks for coming on the cube. Really appreciate. What's the, what's next for you guys, obviously, continuing to build momentum. You got your playful, how many people on the team what's going on, give a plug for the company. What are you looking for share with the audience, some of the, some of your goals. Yeah. >>So, uh, the main thing we're looking for is really, um, from a brand perspective, if you are looking at buying properties, this would be an amazing time to buy virtual sports stadium. Um, so we are, obviously we have 175 stadiums in roadmap right now. We started with Los Angeles. Then we are in San Francisco, New York, Qatar, Dubai. So all those sports stadiums, whether they're basketball, football, soccer are all the properties. And, uh, from a community perspective, if you want to get an early access, we are all about giving back to the community. Uh, so you can buy it at a much better presale price right now. Uh, so that's one, the second thing is that if you have any innovative ideas or a player that you want to integrate into, we have an very open platform from a community engagement perspective. If you have something unique from a land sale perspective yeah. Or the NFD perspective plug, contact us at, at Raj lumo.com. >>And I'm assuming virtual team, you in LA area where where's your home. >>So, yeah, so I live in Malibu, um, and our office is in Santa Monica. We have an office in India. Uh, we have few developers also in Europe. So, uh, and then we are team of 34 people right now >>Looking to hire some folks >>We are looking for, what >>Are you, what are you looking for? >>So, uh, we are looking for a passionate sports, uh, fanatics. >>It's a lot, not hard to find. Yeah. >><laugh> who knows how to also code. Right? So from blockchain perspective, we are, uh, chain agnostic. Uh, but obviously right now we are building on polygon, but we are chain agnostic. So if you have any blockchain development experience, uh, that's something we, we are looking for. Yeah. >>RA, thanks for coming out. Luke Mo check him out. I'm John furry with the cube here in Monaco for the mono crypto summit presented by digital bits. We got all the action, a lot of great guests going on, stay with us for more coverage. Um, John furrier, thanks for watching.

(upbeat music) >> theCUBE presents KubeCon and CloudNativeCon Europe 22, brought to you by the Cloud Native Computing Foundation. >> Valencia, Spain, a KubeCon, CloudNativeCon Europe 2022. I'm Keith Towns along with Paul Gillon, Senior Editor Enterprise Architecture for Silicon Angle. Welcome Paul. >> Thank you Keith, pleasure to work with you. >> We're going to have some amazing people this week. I think I saw stat this morning, 65% of the attendees, 7,500 folks. First time KubeCon attendees, is this your first conference? >> It is my first KubeCon and it is amazing to see how many people are here and to think of just a couple of years ago, three years ago, we were still talking about, what the Cloud was, what the Cloud was going to do and how we were going to integrate multiple Clouds. And now we have this whole new framework for computing that is just rifled out of nowhere. And as we can see by the number of people who are here this has become the dominant trend in Enterprise Architecture right now how to adopt Kubernetes and containers, build microservices based applications, and really get to that transparent Cloud that has been so elusive. >> It has been elusive. And we are seeing vendors from startups with just a few dozen people, to some of the traditional players we see in the enterprise space with 1000s of employees looking to capture kind of lightning in a bottle so to speak, this elusive concept of multicloud. >> And what we're seeing here is very typical of an early stage conference. I've seen many times over the years where the floor is really dominated by companies, frankly, I've never heard of that. The many of them are only two or three years old, you don't see the big dominant computing players with the presence here that these smaller companies have. That's very typical. We saw that in the PC age, we saw it in the early days of Unix and it's happening again. And what will happen over time is that a lot of these companies will be acquired, there'll be some consolidation. And the nature of this show will change, I think dramatically over the next couple or three years but there is an excitement and an energy in this auditorium today that is really a lot of fun and very reminiscent of other new technologies just as they requested. >> Well, speaking of new technologies, we have Dave Cole, CRO, Chief Revenue Officer. >> That's right. >> Chief Marketing Officer of Spectrum Cloud. Welcome to the show. >> Thank you. It's great to be here. >> So let's talk about this big ecosystem, Kubernetes. >> Yes. >> Solve problem? >> Well the dream is... Well, first of all applications are really the lifeblood of a company, whether it's our phone or whether it's a big company trying to connect with its customers about applications. And so the whole idea today is how do I build these applications to build that tight relationship with my customers? And how do I reinvent these applications rapidly in along comes containerization which helps you innovate more quickly? And certainly a dominant technology there is Kubernetes. And the question is, how do you get Kubernetes to help you build applications that can be born anywhere and live anywhere and take advantage of the places that it's running? Because everywhere has pluses and minuses. >> So you know what, the promise of Kubernetes from when I first read about it years ago is, runs on my laptop? >> Yeah. >> I can push it to any Cloud, any platforms. >> That's right, that's right. >> Where's the gap? Where are we in that phase? Like talk to me about scale? Is it that simple? >> Well, that is actually the problem is that today, while the technology is the dominant containerization technology in orchestration technology, it really still takes a power user, it really hasn't been very approachable to the masses. And so was these very expensive highly skilled resources that sit in a dark corner that have focused on Kubernetes, but that now is trying to evolve to make it more accessible to the masses. It's not about sort of hand wiring together, what is a typical 20 layer stack, to really manage Kubernetes and then have your engineers manually can reconfigure it and make sure everything works together. Now it's about how do I create these stacks, make it easy to deploy and manage at scale? So we've gone from sort of DIY Developer Centric to all right, now how do I manage this at scale? >> Now this is a point that is important, I think is often overlooked. This is not just about Kubernetes. This is about a whole stack of Cloud Native Technologies. And you who is going to integrate that all that stuff, piece that stuff together? Obviously, you have a role in that. But in the enterprise, what is the awareness level of how complex this stack is and how difficult it is to assemble? >> We see a recognition of that we've had developers working on Kubernetes and applications, but now when we say, how do we weave it into our production environments? How do we ensure things like scalability and governance? How do we have this sort of interesting mix of innovation, flexibility, but with control? And that's sort of an interesting combination where you want developers to be able to run fast and use the latest tools, but you need to create these guardrails to deploy it at scale. >> So where do the developers fit in that operation stack then? Is Kubernetes an AIOps or an ops task or is it sort of a shared task across the development spectrum? >> Well, I think there's a desire to allow application developers to just focus on the application and have a Kubernetes related technology that ensures that all of the infrastructure and related application services are just there to support them. And because the typical stack from the operating system to the application can be up to 20 different layers, components, you just want all those components to work together, you don't want application developers to worry about those things. And the latest technologies like Spectra Cloud there's others are making that easy application engineers focus on their apps, all of the infrastructure and the services are taken care of. And those apps can then live natively on any environment. >> So help paint this picture for us. I get AKS, EKS, Anthos, all of these distributions OpenShift, the Tanzu, where's Spectra Cloud helping me to kind of cobble together all these different distros, I thought distro was the thing just like Linux has different distros, Randy said different distros. >> That actually is the irony, is that sort of the age of debating the distros largely is over. There are a lot of distros and if you look at them there are largely shades of gray in being different from each other. But the Kubernetes distribution is just one element of like 20 elements that all have to work together. So right now what's happening is that it's not about the distribution it's now how do I again, sorry to repeat myself, but move this into scale? How do I move it into deploy at scale to be able to manage ongoing at scale to be able to innovate at-scale, to allow engineers as I said, use the coolest tools but still have technical guardrails that the enterprise knows, they'll be in control of. >> What does at-scale mean to the enterprise customers you're talking to now? What do they mean when they say that? >> Well, I think it's interesting because we think scale's different because we've all been in the industry and it's frankly, sort of boring old word. But today it means different things, like how do I automate the deployment at-scale? How do I be able to make it really easy to provision resources for applications on any environment, from either a virtualized or bare metal data center, Cloud, or today Edge is really big, where people are trying to push applications out to be closer to the source of the data. And so you want to be able to deploy it-scale, you want to manage at-scale, you want to make it easy to, as I said earlier, allow application developers to build their applications, but ITOps wants the ability to ensure security and governance and all of that. And then finally innovate at-scale. If you look at this show, it's interesting, three years ago when we started Spectra Cloud, there are about 1400 businesses or technologies in the Kubernetes ecosystem, today there's over 1800 and all of these technologies made up of open source and commercial all version in a different rates, it becomes an insurmountable problem, unless you can set those guardrails sort of that balance between flexibility, control, let developers access the technologies. But again, manage it as a part of your normal processes of a scaled operation. >> So Dave, I'm a little challenged here, because I'm hearing two where I typically consider conflicting terms. Flexibility, control. >> Yes. >> In order to achieve control, I need complexity, in order to choose flexibility, I need t-shirt, one t-shirt fits all and I get simplicity. How can I get both that just doesn't compute. >> Well, that's the opportunity and the challenge at the same time. So you're right. So developers want choice, good developers want the ability to choose the latest technology so they can innovate rapidly. And yet ITOps, wants to be able to make sure that there are guardrails. And so with some of today's technologies, like Spectra Cloud, it is, you have the ability to get both. We actually worked with dimensional research, and we sponsor an annual state of Kubernetes survey. We found this last summer, that two out of three IT executives said, you could not have both flexibility and control together, but in fact they want it. And so it is this interesting balance, how do I give engineers the ability to get anything they want, but ITOps the ability to establish control. And that's why Kubernetes is really at its next inflection point. Whereas I mentioned, it's not debates about the distro or DIY projects. It's not big incumbents creating siloed Kubernetes solutions, but in fact it's about allowing all these technologies to work together and be able to establish these controls. And that's really where the industry is today. >> Enterprise , enterprise CIOs, do not typically like to take chances. Now we were talking about the growth in the market that you described from 1400, 1800 vendors, most of these companies, very small startups, our enterprises are you seeing them willing to take a leap with these unproven companies? Or are they holding back and waiting for the IBMs, the HPS, the MicrosoftS to come in with the VMwares with whatever they solution they have? >> I think so. I mean, we sell to the global 2000. We had yesterday, as a part of Edge day here at the event, we had GE Healthcare as one of our customers telling their story, and they're a market share leader in medical imaging equipment, X-rays, MRIs, CAT scans, and they're starting to treat those as Edge devices. And so here is a very large established company, a leader in their industry, working with people like Spectra Cloud, realizing that Kubernetes is interesting technology. The Edge is an interesting thought but how do I marry the two together? So we are seeing large corporations seeing so much of an opportunity that they're working with the smaller companies, the latest technology. >> So let's talk about the Edge a little, you kind of opened it up there. How should customers think about the Edge versus the Cloud Data Center or even bare metal? >> Actually it's a... Well bare metal is fairly easy is that many people are looking to reduce some of the overhead or inefficiencies of the virtualized environment. But we've had really sort of parallel little white tornadoes, we've had bare metal as infrastructure that's been developing, and then we've had orchestration developing but they haven't really come together very well. Lately, we're finally starting to see that come together. Spectra Cloud contributed to open source a metal as a service technology that finally brings these two worlds together, making bare metal much more approachable to the enterprise. Edge is interesting, because it seems pretty obvious, you want to push your application out closer to your source of data, whether it's AI inferencing, or IoT or anything like that, you don't want to worry about intermittent connectivity or latency or anything like that. But people have wanted to be able to treat the Edge as if it's almost like a Cloud, where all I worry about is the app. So really, the Edge to us is just the next extension in a multi-Cloud sort of motif where I want these Edge devices to require low IT resources, to automate the provisioning, automate the ongoing version management, patch management, really act like a Cloud. And we're seeing this as very popular now. And I just used the GE Healthcare example of that, imagine a CAT scan machine, I'm making this part up in China and that's just an Edge device and it's doing medical imagery which is very intense in terms of data, you want to be able to process it quickly and accurately, as close to the endpoint, the healthcare provider is possible. >> So let's talk about that in some level of details, we think about kind of Edge and these fixed devices such as imaging device, are we putting agents on there, or we looking at something talking back to the Cloud? Where does special Cloud inject and help make that simple, that problem of just having dispersed endpoints all over the world simpler? >> Sure. Well we announced our Edge Kubernetes, Edge solution at a big medical conference called HIMMS, months ago. And what we allow you to do is we allow the application engineers to develop their application, and then you can de you can design this declarative model this cluster API, but beyond Cluster profile which determines which additional application services you need and the Edge device, all the person has to do with the endpoint is plug in the power, plug in the communications, it registers the Edge device, it automates the deployment of the full stack and then it does the ongoing versioning and patch management, sort of a self-driving Edge device running Kubernetes. And we make it just very easy. No IT resources required at the endpoint, no expensive field engineering resources to go to these endpoints twice a year to apply new patches and things like that, all automated. >> But there's so many different types of Edge devices with different capabilities, different operating systems, some have no operating system. I mean that seems, like a much more complex environment, just calling it the Edge is simple, but what you're really talking about is 1000s of different devices, that you have to run your applications on how are you dealing with that? >> So one of the ways is that we're really unbiased. In other words, we're OS and distro agnostic. So we don't want to debate about which distribution you like, we don't want to debate about which OS you want to use. The truth is, you're right. There's different environments and different choices that you'll want to make. And so the key is, how do you incorporate those and also recognize everything beyond those, OS and Kubernetes and all of that and manage that full stack. So that's what we do, is we allow you to choose which tools you want to use and let it be deployed and managed on any environment. >> And who's... >> So... >> I'm sorry Keith, who's responsible for making Kubernetes run on the Edge device. >> We do. We provision the entire stack. I mean, of course the company does using our product, but we provision the entire Kubernetes infrastructure stack, all the application services and the application itself on that device. >> So I would love to dig into like where pods happen and all that. But, provisioning is getting to the point that is a solve problem. Day two. >> Yes. >> Like you just mentioned HIMMS, highly regulated environments. How does Spectra Cloud helping with configuration management, change control, audit, compliance, et cetera, the hard stuff. >> Yep. And one of the things we do, you bring up a good point is we manage the full life cycle from day zero, which is sort of create, deploy, all the way to day two, which is about access control, security, it's about ongoing versioning in a patch management. It's all of that built into the platform. But you're right, like the medical industry has a lot of regulations. And so you need to be able to make sure that everything works, it's always up to the latest level have the highest level of security. And so all that's built into the platform. It's not just a fire and forget it really is about that full life cycle of deploying, managing on an ongoing basis. >> Well, Dave, I'd love to go into a great deal of detail with you about kind of this day two ops and I think we'll be covering a lot more of that topic, Paul, throughout the week, as we talk about just as we've gotten past, how do I deploy Kubernetes pod, to how do I actually operate IT? >> Absolutely, absolutely. The devil is in the details as they say. >> Well, and also too, you have to recognize that the Edge has some very unique requirements, you want very small form factors, typically, you want low IT resources, it has to be sort of zero touch or low touch because if you're a large food provider with 20,000 store locations, you don't want to send out field engineers two or three times a year to update them. So it really is an interesting beast and we have some exciting technology and people like GE are using that. >> Well, Dave, thanks a lot for coming on theCUBE, you're now KubeCon, you've not been on before? >> I have actually, yes its... But I always enjoy it. >> Great conversation. From Valencia, Spain. I'm Keith Towns, along with Paul Gillon and you're watching theCUBE, the leader in high tech coverage. (upbeat music)

>>From around the globe. It's the cube with digital coverage of IBM. Think 20, 21 brought to you by IBM, everybody welcome back to the cubes. Continuous coverage of IBM think 20, 21, the virtual edition. My name is Dave Volante, and we're going to talk about observability, front and center for DevOps and developers. Things are really changing. We're going from monitoring and logs and metrics and just this mess. And now we're bringing in AI and machine intelligence and with us as Pablo Baron, who's the CTO of Instana, which is an IBM company that IBM acquired November of 2020 Pablo. Great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So, you know, I always love to talk to founders and co-founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After, you know, five, five, I'm sure. Grinding, but relatively short years. Uh, why did you guys start in Stoneleigh and what were some of the trends that you saw and that you're seeing now in the observability space? >>Yeah, that's a very good question. So, um, the journey began, uh, as we worked in the company called code centric, the majority of the founders, and, uh, we actually specialized in troubleshooting, um, well, real hard customer performance problems. We used all different kinds of APM solutions for that. You know, we we've built expertise, uh, like, uh, collectively, maybe 300 years of the whole company. So we will go from one, um, adventure into the other and see customers suffer and to help them, you know, overcome this trouble. At some point we started seeing architectures, uh, coming up that were not well covered by the classic APM solutions. Like people went off to the suit, a suit, a suit of the virtualization, all in containers, you know, just dropping random, uh, workloads into container running this maybe in Cubanitos. Well, not, not actually not five, six ago but years ago, but you get the point we started with having continued containerization. >>And we've seen that a classic APM solution that is having the, you know, like machine oriented. And then, uh, some of them even counted by the number of CPU, et cetera, et cetera. The world very well suited for this plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adapting to change continuously. We've seen this coming and we really we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, Hey, uh, it's time to just implement the new one, right? This is, we started that adventure with the idea of a constant change to the AGL. If everything is containers with idea of everything goes towards cloud native people just, uh, run random, uh, um, workloads of all different versions that are linked all together that this whole microservices trend came up where people would just break down their model and resilience of, uh, literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with it, >>Pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't cute Kubernetes when you started in the middle part of last decade, like containers have been around for a long time, but Coobernetti's, weren't that wasn't mainstream back then. So you had some foresight, uh, and, and the market has just come right into your vision, but, but maybe talk a little bit about the way APM used to work. It was, I started this talk about this. It was metrics, it was traces, it was logs. It was make your eyes bleed type of type of stuff. Um, and maybe you could talk about how, how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So, well, there is very, very many pieces to this. So first of all, we always have seen that the work that you should not be doing by hand, I mean, we already said that you should not be doing this and you shouldn't be automating as much as possible. We see this everywhere in the it industry that everything gets more and more automated and want to automate it through the whole continuous delivery cycle. Unfortunately, monitoring was the space that probably never was automated before installer came into place. So our idea was, Hey, just, just get rid of the unnecessary work because you keep people busy with stuff that they should not be doing, like manually watching dashboards, setting up agents, uh, with every single software change, like adopting configuration, et cetera, et cetera, et cetera, all of these things can be done automatically, you know, to very, very, very large extent. >>And that's what we did. We, we did this from the beginning, everything we approach, uh, we, we, we think twice about, uh, can we automate, you know, the maximum out of it. And only if we see that it's, it's, you know, too much in effort, et cetera, we will, we will problem in onto this, but otherwise we're not, we don't do this. And yet, you know, you can compromise the other, right? The other aspect is, so this is different to the classic APM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring, et cetera, et cetera, et cetera. This is, this is a totally different approach. The other approach is continuous change and, uh, you know, adapting to the continuous change container comes up. You need to know what this kind of workload, what kind of workload this thing is, how it is connected to all the others. >>And then at some point, probably it's gonna, it's gonna, you know, go through the change and get a new version, et cetera, et cetera. You need to capture this whole life cycle without really changing your monitoring system. Plus if you move your workloads from the classic monolith through microservices onto cause the need is you kind of trans transitioning, you know, it's a journey in this journey. You want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figured out what is payments in your system? This is a stable obstruction. It doesn't matter if you deliver it on containers. It doesn't matter if this is just a huge, you know, JVM that owns the whole box alone. It simply doesn't matter. So we, we decoupled everything infrastructure from everything logic and, uh, the foundation for this is what we call the dynamic graph. >>It's technically, it's pretty much a data structure. The regular route, the dispatcher would do no connections, uh, in, in, in multiple directions, from different nodes. But the point is that we actually decompose the whole it geography. This is the term I like to use because there is, there is no other it's infrastructure. It's typology. It is on the other hand, just, you know, same sides of the same thing. When you have a Linux process, it can be a JVM. It just, at the same time, it can be a problem with application. It's the same thing. I can give a different names and this different, you know, facets of this thing can be linked with everything else in a different way. So we're decomposing this from the beginning of the product, which allows us to, to have a very deep and hierarchical understanding of the problem when it appears so we can nail it, not down to a metric that probably doesn't make sense to any user, but really name the cause by look in this JVM, the drop wizard metric XYZ that is misbehaving. >>This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So, um, the cloud, the classic APM, as I said, it is a very expert, heavy, um, uh, territory. We try to automate the expert. We have this guy called Stan. This is your, you know, kind of, uh, virtual dev ops engineer has AI in there. It has some, some artificial brain. It never sleeps. It observes all of the problems. It really is an amazing guy because nobody likes them because he always tells you what's broken. You don't need to invite them to the body and give them a raise. They're just there and conserving the system. >>I liked Stan. I liked Stan better than Fred. No offense to Fred, but Fred's is the guy in the lab coat that I have to call every time to help me fix my, and what you're describing is end to end visibility or observability, uh, in, in terms that the normal either normal people can understand, or certainly Stan can understand and can automate. And that kind of leads me to this notion of, of anti-patterns. Um, getting in software, we think of anti-patterns is, you know, you have software hairballs and software bloat. You've got stovepipe systems. You're, you're a data guy by background. And so you will understand, you know, stovepipe data systems, there's organizational examples of, of, of anti-patterns like micromanagement or over-analyze analysis by paralysis. If you will, how do anti-patterns fit into this world of observability? What do you see? >>Oh, there is many, I could write a whole book actually about that. Um, let, let me just list a few. So first of all, it is valid for any kind of automation. What you can automate, you should not be doing by hand. This is a very common pattern. People are just doing work by hand, just because the lazy where you know, like repetitive work or there is no kind of foundation to automate the, whatever, the reason, this is clearly an impact pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observability and monitoring space are so hard, you would normally send your best people, watching rats want them to contribute to the business value rather than waste the time of serving charts. That's like 99% of them are marble. The other aspect of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of ops observability and let them learn on the subject, which is also not a good thing, because you can not really, I mean, there are so many unknown unknowns for people who are not experts in this space. >>They will not catch the problem. You will go through pain, right? So it's not a learning project. It's not the research from a project. This is very essential to the operation of your business and to it. And there's many examples like that, >>Right? Yeah. So I want to end by just sort of connecting the dots. So this makes a lot of sense. And if you think about, you know, Auburn Christian said that IBM has got to win the architectural battle for hybrid cloud. And when I think of hybrid cloud, I think of on-prem connecting to public cloud, not only the IBM public cloud, but other public clouds going across clouds, going to the edge, bringing OpenShift and Kubernetes to the edge and developing new, supporting new workload. So as it is like the university keeps expanding and it gets more and more and more complicated. So to your point, humans are not going to be able to solve the classic performance problems in the classic way. Uh, they're going to need automation. So it really does fit well into IBM's hybrid cloud strategy, your, your thoughts, and I'll give you the last word. >>Yeah, totally. I mean IBM generally is of course, very far ahead in, in regards to AI and all these things, this desk, sorry, those could be combined within standard, very, very, you know, natively, right. We, we are prepared to automate using AI all of the, well, I would want to claim that all of the monitoring observability problems, of course there is manual work in some, uh, you know, in some cases you simply don't know what people want to observe, so you kind of need to give them names and that's what people come in, but this is more a creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um, requiring and Stan, I guess, you know, the foundation for all of the things that that used to be done by, by hand now fully automated, combined within starlet, combined with Watson AI ops. This is, this is huge. This is a real great story. Like the best research at the world meeting, uh, probably the best APM summit. >>That's great. Uh, Pablo really appreciate you taking us through and Stata and the trends and observability and what's going on at IBM and congratulations on your success. And thanks for hanging with us with all the craziness going on at your abode and, uh, really, it was a pleasure having you on. Thank you. Thanks a lot. Thank you for watching everybody. This is Dave Volante and the ongoing coverage of IBM. Think 2021. You're watching the cube.

>>from >>around the >>globe, it's the cube >>with digital coverage of >>IBM think 2021 >>brought to >>you by IBM >>everybody welcome back to the cubes, continuous coverage of IBM think 2021 the virtual edition, my name is Dave Volonte and we're gonna talk about observe ability front and center for devops and developers, things are really changing. We're going from monitoring and logs and metrics and just this mess and now we're bringing in a I and machine intelligence and with us is Pablo Baron, who is the Ceo of inst ana, which is an IBM company that IBM acquired november of 2020. Pablo great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So you know, I always love to talk to founders and co founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After 55 I'm sure grinding but relatively short years. Why did you guys start in stana? And what were some of the trends that you saw in that you're seeing now in the observe ability space? >>Yeah, that's a very good question. So, um, the journey began ah, as we worked in the company called code centric, the majority of the founders and uh, we actually specialized in troubleshooting uh, well, real hard customer performance problems. We used all different kinds of A PM solutions for that. You know, we, we've built expertise like collectively maybe 300 years in the whole company. So we would go from one um, adventure into the other and see customers suffer and help them, you know, overcome this trouble. At some point we started seeing architectures coming up that were not well covered by the classic KPM sellers, like people went after this. Sudha, Sudha, Sudha virtualization all in containers, you know, just dropping random workloads into container running this maybe in cabinet as well. Not not actually not 56 ago, but years ago. But you get the point, we started with the heavy continues container ization and we've seen that a classic A PM solution that is heavily, you know, like machinery rented and and some of them you've encountered by the number of CPU etcetera etcetera. They were very well suited for this. Plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adopting to change continuously. We've seen this coming and we really, we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, hey, uh, I think it's time to just implement a new one. Right? So we started that adventure with the idea of a constant change, with the idea of everything is containers, with idea of everything goes towards glove needed. People just run random uh workloads of all different versions that are linked altogether than this. Whole microservices trend came up where people would just break down their monoliths and resilience of literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with that. >>So let me pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't kubernetes when you started in the middle part of last decade. You know, containers have been around for a long time, but kubernetes weren't, it wasn't mainstream back then. So you had some foresight uh and and the market has just come right into your vision but but maybe talk a little bit about the way A. P. M. Used to work. It was, I started to talk about this. It was metrics, it was traces, it was logs, it was make your eyes bleed type of type of stuff. Um, and maybe you can talk about how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So well there is very, very many um cases this. So first of all we always have seen that the work that you should not be doing by hand. I mean we already said that you should not be doing this and you should be automating as much as possible. We see this everywhere in the industry that everything gets more and more automated. We want to animate through the whole continuous delivery cycle. Unfortunately monitoring was the space that probably never was automated before installing a came into place. So our idea was, hey, just just get rid of the unnecessary work because you keep people busy with stuff they should not be doing like manually watching dashboards, setting up agents with every single software change, like adopting configuration etcetera, etcetera, etcetera. All of these things can be done automatically, you know, to very, very, very large extent. And that's what we did. We did this from the beginning, everything we approached, we, we, we think twice about can we automate, you know, the maximum out of it And only if we see that it's, it's, you know, too much an effort, etcetera. We will, we will probably not do this, but otherwise we're not, we don't do the same thing. You know, you can compromise the other right? The other aspect is, so this is different to the classic A PM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring etcetera, etcetera etcetera. This is this is a totally different approach the other approaches continuous change and you know, adapting to the continuous change, container comes up, you need to know what this kind of workload, what kind of work load this thing is, how it is connected to all the others. And then at some point probably it's gonna it's gonna go through the change and get a new versions etcetera etcetera. You need to capture this whole life cycle without really changing your monitoring system. Plus, if you move your workloads from the classic Monolith, through microservices on to cuba needs, you kind of transitioning, you know, it's a journey and this journey, you want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figure out what is payment in your system. This is a stable abstraction. It doesn't matter if you deliver it on containers. Doesn't matter if this is just a huge JBM that owns the whole box alone. It simply doesn't matter. So we we decoupled everything infrastructure from everything logic and uh the foundation for this is what we call the dynamic ground. It technically is pretty much a data structure. Regular graph data structure with, you know, connections in multiple directions from different notes. But the point is that we actually decompose the whole, I teach geography. This is the term I like to use because there is, there is no other its infrastructure, its topology, it is on the other hand, just, you know, same sides of the same thing. When you have a limits process, it can be HIV m it's just at the same time, it can be approached with an application, it's the same thing and given different names and this different faces of this thing can be linked with everything else in a totally different way. So we're decomposing this from the beginning of the product which allows us to to have a very deep and hierarchical understanding of problems when it appears. So we can nail it not down to a metric. That probably doesn't make sense to any user but really name the cause by look in this J. V. M, the drop wizard metric exercise that is misbehaving. This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So um the the classic eight pm as I said, it is a very expert heavy um, territory we try to automate the expert. We have this guy called stan this is your you know, kind of virtual devoPS engineer has a I in there. It has some artificial brain, it never sleeps, it observes all of the problems. It really is an amazing guy because nobody likes him because he always tells you what's broken. You don't need to invite them to the party and give them a raise just there and conserving your systems. >>I like stand, I like stand better than fred, no offense to fred but friends of the guy in the lab coat that I have to call every time to help me fix my problems and what you're describing is end to end visibility or observe ability in terms that norm either normal people can understand or certainly stand, can understand and can automate. And that kind of leads me to this notion of anti patterns um getting software, we think of anti patterns as you know you have software hairballs and software bloat, you've got stovepipe systems, your your data guy by background and so you will understand stovepiped data systems, there's organizational examples of of of anti patterns like micromanagement or over an analysis by paralysis. If you will, how do anti patterns fit into this world? Of observe ability? What do you see? >>Oh there's many, I could write a whole book actually about that. Um let me just list a few. So first of all it is valid for any kind of automation, what you can automate you should not be doing by hand, this is a very common entire pattern. People are just doing work by hand just because the lazy word, you know like repetitive work or there is no kind of foundation to automate that whatever the reason, this is clearly an anti pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observe ability monitoring space is so hard, You normally send your best people watching grants who want them to contribute to the business value rather than waste the time observing charts that like 99 of them are normal. The other aspect, of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of observe ability and let them learn on the subject. Which is also not a good thing because you cannot really I mean there are so many unknown unknowns for people who are not experts in the space. They will not catch the problem. You will go through pain, right? So it's not the learning project, that's not the research from a project. This is very essential to the operation of humor, business and humanity. And there's many examples like that, >>right? Yeah. So I want to end by just sort of connecting the dots so this makes a lot of sense. And if you think about, you know, Ivan Kushner said that IBM has got to win the architectural battle for hybrid cloud. And when I think of Hybrid cloud, I think of on prem connecting to public cloud, not only the IBM public cloud but other public clouds going across clouds going to the edge, bringing open shift and kubernetes to the edge and developing new supporting new workloads. So as I. T. Is like the university keeps expanding and it gets more and more and more complicated. So to your point humans are not going to be able to solve the classic performance problems in the classic way. Uh they're gonna need automation. So it really does fit well into iBMS hybrid cloud strategy, your, your thoughts and I'll give you the last word. >>Yeah, totally. I mean, I'm IBM generally is of course very far ahead in regards to research AI and all these things this death, sorry, those could be combined with an stand a very, very, you know, natively right. We we are prepared to automate using AI all of the well, I would want to claim that all of the monitoring observe ability problems. Of course, there is manual work in some, you know, in some cases you simply don't know what people want to observe. So you kind of need to give them names and that's where people come in. But this is more creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um requiring in stana gets, you know, the foundation for all of the things that used to be done by hand. Now, fully automated, combined within standard, combined with Watson, the ions, This is, this is huge. This is like a real great story, like the best research of the world eating. Uh, probably the best a PMC. >>That's great Pablo, really appreciate you taking us through Astana and the trends and observe ability and what's going on at IBM. And congratulations on your, your success and thanks for hanging with us with all the craziness going on at your abode. And uh really, it was a pleasure having you on. Thank you. >>Thanks a lot. >>All right, and thank you for watching everybody says Dave Volonte and our ongoing coverage of IBM, think 2021 you're watching the Cube? Yeah. Mhm

(bright upbeat music) >> Reporter: From theCUBE Studios in Palo Alto in Boston. Connecting with thought leaders all around the world. This is theCUBE conversation. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're coming to you today from our Palo Alto studios, talking about a really important topic. And that's data. And as we hear over and over and over, right data is the oil. Data is the new currency. Data is driving business decisions. Data drives AI. Data drives machine learning. Data is increasingly important. And we're still kind of waiting for it, to show up on balance sheets. Which is kind of implied in a lot of the big iterations, that we see in companies that are built on data. But one of the important things about data, is taking care of it. And we're excited to have our next guest here to talk about, some of the things you need to think about, and best practices in securing your data. Backing up your data, protecting your data. We're joined today by Tim Burlowski. He is the senior director, Product Management from Veritas. Joining us from remote. I believe you're in Minnesota. Tim, great to see you. >> Yep, thanks for having me. >> Absolutely, so let's just jump into it. So all we hear about is data these days. It's such an important topic, that is growing exponentially. And it's structured and it's unstructured. And it's so core to the business. And are you making database decisions? And are you getting enough data to drive your AI? And your machine learning algorithms? I mean, data is only exploding. You've been in this business for a long, a long, long time. I wonder if you can share your perspective, when you hear these things. more data is going to be created in the next 15 minutes. And wasn't the entire history of men before us? I'm making that up, but it's been quite an explosion. >> I know yeah, I know where you're coming from. And frankly, I don't even put that, in my presentation anymore. Because it's a lot like saying gravity exists, And things that you drop out, of a window will fall to the ground. Everyone's heard it. Everyone's aware of it. The numbers are just so staggering. You don't even know what to do with it. Like how many iPhones could you stack to the moon and back and then to Saturn? Doesn't make sense. But the truth is, we are seeing an explosion. Everyone knows it. We have to manage it better. Now for us, a lot of what we do, is in this data protection space. Where we want to make sure, that data is protected and always available. All of the data that's been created, and the growth in mission-critical applications. It's no longer seven to 20 mission-critical applications. It's hundreds and hundreds of mission-critical applications. Means you have to be ready, with a recent recovery if necessary. And you need to provide that data back to the consumer, as quickly as you possibly can. Because you've got people waiting on it. We've all got our apps on our phone, where we're looking at our bank account 24 seven. We don't wait until a teller appears at nine a.m anymore. It's not the world we live in. >> Right, I'm just curious if you've got some tailwinds, in terms of you're kind of, you've been in this market for a very long time. In terms of people finally realizing that their data, is really more of an asset and a liability. In the investments, to gather it, protect it, analyze it, have it ready for refresh it, If there's some problem. It's a positive investment towards, kind of revenue and strategic importance to the company, as opposed to kind of a back-office IT function, that we're kind of taking care of business because we have to. >> Boy that one really varies a lot by company. I see companies taking shortcuts and outsourcing, and then suddenly you'll see them in the news. And they discover that they had a major outage for a couple of days. And suddenly practices change very, very quickly. The relative comprehensive, sturdy and reliable infrastructure that people run today, sometimes lulls people into false security. And then you see a major airlines with a multi-day outage. And you go hmm, I think we missed a few steps in the process. So it sometimes takes those rude awakenings. But the companies who are really taking it seriously, and starting to practice pruning their data, examining their data for PII. So they meet various compliance regimes, and other in various states and countries. And starting to think about their backup stream, really being, how do we get a fast recovery? Instead of how do I make a copy, which I will never use again? Are really starting to drive a more efficient IT operation, when it comes to data protection. >> No, it's an interesting take, in reference to having some issue. Because we do a lot of stuff around security. Which is related to but not equal to this conversation. And one of the topics in security is that, most people have already been breached. It's just a function of how fast can you find out, and how fast can you minimize the damage? And how fast can you move on? Why are they breaching? They're breaching to get the data. So I would imagine, with this constant reading in the newspaper, of who was breached here there and everywhere, pretty much every day. That's got to be a huge driver, in terms of people kind of upping their game, and the sophistication, of the way they really think about data protection. >> It is and I'll tell you, I've had the misfortune, I would say. Of talking to customers who are in the middle of recovering, from a major ransomware malware attack. And it's a very difficult proposition. And what customers often discover is, they haven't practiced enough, they don't have enough of a DR plan present. We are certainly rising the occasion. Our products are sort of the last thing, that often stands between the customer, losing their data completely. And so we're looking at a number of technology innovations, that will enable them to store their data on immutable devices. And for the backup infrastructure, to be completely aware of that. Which we'll be announcing later this summer. Which we're very excited about. Of course, from our perspective of our appliance portfolio, we've always provided a couple of extra layers of security against intrusion detection, and intrusion prevention right out of the box. Because we know the backup infrastructure becomes this collection of the very most important data in your infrastructure. Because that's the thing you back up. And you want to restore. If there's ever any sort of manmade disaster or otherwise. >> Right. So I want to shift gears a little bit, and talk about kind of the evolution of the infrastructure kind of scene. If you will. With the rise of public clouds, with Amazon and Google and Microsoft, is sure. And then obviously, you tried into a data center. Lot of talk about HP discover, this week kind of going from edge to cloud and data center in the middle. So the environment in which these applications live, and these applications run, and where the data is, relative to those applications. Is evolved dramatically over the last, you probably have a much better time perspective than I do. Five years, 10 years. But it continues to accelerate, in this kind of Application-Centric World versus, kind of an Infrastructure Centric World. Just curious to get your take on, The kind of the challenges that presents to your company, and what you guys are trying to do to accomplish. And how do you see that continuing to evolve and get, not simpler but more complex over time? >> That is a very astute acknowledgement of what's going on in the industry. And I often call it the industry's getting weirder. I would have thought at some point, we'd sort of have Linux and Windows, and a couple of database vendors. And the truth is that database vendors exploded. And it's not just Linux anymore. It's containers. And it might be a container based on CentOS. And it might be container running in the cloud. Or it might be a simple function, like a lambda function running on nothing in AWS. And so this whole world has gotten a lot stranger. From my perspective, I think the biggest change for Veritas, has been a renewed focus on API's that we make public to customers, in ways that we can glue and stitch these systems together. Now, of course, it doesn't replace the deep integration, we do with companies like VMware, with Docker, as well as the the container ecosystem around. OpenShift and some of those technologies. But from our perspective, we've had to be a little bit more prolific, in what we support. And the truth is, it's all files, it's all objects, it's all things we've done before. But they just keep bubbling up in new and different ways. >> Right, but what's interesting though, is you touch on all kinds of stuff there with Kubernetes and clouds and in containers. Is a lot of it's kind of ethereal, right? The whole idea of of a cloud-based infrastructure, is that you can bring it up and bring it down as you need it. You can adjust it as you go. And literally turn it off when you don't need it. And bring it back up. And then you add to that serverless. And this kind of increasing atomization, of all the different parts of compute. Kind of an interesting thing for you guys, to try to back up as these things are created and destructed. We hear these crazy stories of, automating Kubernetes to spin up tons of these things at a time and then bring them back back down. And then I'm curious too. Within that is also the open source. kind of challenge in continuing to have evolution in open source technologies, API's, et cetera. So it is getting weirder and weirder, on a number of fronts as you guys continue to evolve with the market. >> Absolutely, and all I'll tell you, you have to think about all technologies as being on a bridge. As I remind people, we have washing machines. They work really well but washboards still exist, even though it's a technology from 18th century, or beforehand. Now, they may be used as still do exist. Now, my point in this is, people need a bridge. Most enterprises run on an amazing amount of technology, they've developed as a stack over the last 10 to 15 years. And they can't immediately rewrite that, and put it all in a cloud container. So we're actually seeing a lot of use of containers, and Kubernetes with fairly heavy application stacks. When you think about something as heavy as, all have Oracle inside of a container. You can understand that, that's a big lift for container. And it's not ephemeral at all. Then it reaches out to storage, that has that persistence value. And that's where we come in. 'Cause we want to make sure that persistent storage, is always protected. And easily available to the customer for any recovery needs. >> Is great, so I want to shift gears a little bit Tim, to talk about regulations and compliance. 'Cause, regulatory requirements drive a lot of behavior and activity, and really oftentimes, are ahead of maybe the business prerogative to do things like provide backups, provide quick and dirty, quick and easy access. Because you needed it for, a public Freedom of Information Act request. Or you need it for some type of court type of activity. So I wonder if you can kind of talk about, how the regulatory environment, continues to evolve over time. And how does that impact, what you guys are doing in the marketplace? >> Great question. The biggest place is It's affected us, is customers are starting to think about privacy. And where do I have data which relates to, personally identifying information. And that's really driven a lot, by the European regulations around GDPR. Then we're seeing the California Privacy Act come in. And a number of other states are considering legislation in this area. In some ways, it's actually been a good news story for data protection and data management. Because people are starting to say, I should identify where the data is, I should figure out where the PII is. And I should make sure, I'm actually using my backups for the right purposes. Which is something we've always believed in. We've always thought, Hey, Mr. Customer, I see you're backing up an Oracle database for 10 years. What are you going to do with it in 10 years? Are you going to install Oracle seven and reboot it? It doesn't really add up to me. So, how can you get to a true archive, for that data you really need archive? And then for your backup set, how can you keep it lean and mean. And just keep it for the length of time you actually need it? Which for many customers, could be as little as 14, 15 days, maybe six months, maybe a year. But it's often not those extreme retentions people were thinking of, when they were building their tape based infrastructure 10 years ago. >> Right, that's funny. 'Cause as you mentioned, also I'm thinking of, is big data. Right in this constant kind of conversation. In the Big Data world is they keep everything forever, with the hopes that at some point in time, there may be a different algorithm or a different kind of process, you might run on that, but you didn't think about. Right kind of scheme on read versus scheme on right. But to your point, is that necessarily something that has to be backed up, but it sounds like a lot of, kind of policy driven activity. Than to drive the software to define what to back up, what you don't back up, how you back it up, how long you back it up? And a lot of kind of business decisions as opposed to technology decisions. >> Absolutely, that's been on the back of, the price of storing a bit of data, has declined over the last 10 years. An average 15 percent year over year. For a very long time. So people have ignored the problem. But the truth is, when you're really working at scale, there's a tremendous amount of waste. And we've identified for customers, using our data analytics technology. Millions of dollars of cost savings, where they were, both had storing files on, expensive primary tier one storage. And they were backing up those same, that same bit of information every single week. Even though it hadn't changed, or hadn't been read in seven plus years, and they couldn't find an owner for the information in the company. They literally didn't know why they had it. And I think people are starting to consider that. Especially in budget constraint times. >> Right, it's so funny, right? Sometimes it's such a simple answer, a friend one time had a startup, and he was doing contract management. This is 20 years ago. And I was like, how do you manage the complexity of contracts inside software. Again 20 years ago. And he said, Jeff, that's not it at all. We just need to know like, where is the contract? who signed it and when does it expire? And they built the business, on answering simple questions like that. It's sometimes the simple stuff that's the hard stuff. I want to shift gears a little bit Tim, on what bear toss dude in the market in terms of still having appliances? I'm sure a lot of people like weight appliances. Why are we still using appliances? This is a software defined world. And everything just runs on x86 architecture. You guys still have appliances, tell us a little bit about the why. And some of the benefits of having, kind of a dedicated hardware, software piece of equipment, versus just a pure software solution that sits on anybody's box. >> That's a great question. Thanks for asking. When I think about that world, you have to understand Veritas at its core is absolutely a software company. We build software and we preserve the choice and how the customer implements. When I say we preserve choice. We obviously still support old school Unix. We certainly have enormous investment in the x86 world, both on Windows and various Linux flavors. And of course, you can run those same That same software in the cloud. And of course, you can run it inside of a virtualized infrastructure. So we always like to preserve choice. Now why did we create the appliance business, it's frankly because customers asked us to. The thing that made storing backups on disk affordable, was this technology known as deduplication. Which at its heart is just a fancy kind of compression, That's very, very good at copies of data, where there's a lot of blocks that are have been seen before. And so we don't store them if we've seen them before. We simply store the ones that are new and fresh. So from our perspective, customers said, "we want this technology." And the market really moved away, from general purpose solutions on servers to do that. Because it was very hard to build something, that could have a very high throughput, very high memory, and at the same time, could give excellent support for random access reads, when the customer actually needed to read that data. And so we created a purpose built appliances as a result. And what we discovered in the the process was, there were a lot of pieces that were actually fairly hard in the enterprise. So when a customer would describe, the purchasing process of their typical solution before appliances, they would talk about, filing tickets with the server team. Filing tickets with the storage team. Filing tickets with security team. And sometimes taking six or nine months, to get a piece of equipment ready to install the backup software on the floor. Whereas with ours, they placed an order, it showed up on the dock, as soon as it when it was in the rack, they were ready to go and working independently. Now while we have a great and thriving appliance business, we're very, very proud of, we always preserve choice at Veritas. And even though that's the business I represent, I would make sure our customers always understand, that we're interested in the best platform for the customer. So that's our basic perspective. If you want to go deeper, let me know where you have questions. (chuckles) >> Well, I'm curious on the process, when there's a fail, when there's attack, when there's ransomware, whatever. When you need to go back to your backup. What are some of the things that your approach enables, or what are kind of the typical stumbling blocks that are the hardest things to overcome. That people miss when they're planning for that. Or thinking about it. That kind of rear their ugly heads, when the time comes that, oh, I guess we need to go back to a backup version. >> Yeah, and I'll break that input into this disaster recovery or restore process. And then also the process of backup. So when you think about that disaster recovery, and I'll use ransomware as that piece of it. Because that's the real kind of disaster, when you're looking at equipment in the infrastructure, which has been wiped clean. That's a worst case scenario for most IT managers. When you think about that situation, we've built into our appliances first of all, a hardened Linux OS. Meaning we've shrank down that OS as much as we possibly could. Second, we've added role-based access protection. To make sure that you simply can't log in and perform activities which you're not privileged to perform. And then we have intrusion protection software, intrusion detection software. To ensure that even for those zero day attacks, that we may not even be aware of when we release our software, that the system is hardened. Of course, you have firewalls and STIG rules, STIG or rules are DoD standard, for hardening Linux based devices. So we've got a hardened device. And I was talking to a customer, in a different part of the world this week. Where they described having a data center, where everything had been wiped. And there's one thing left there, their NetBackup appliances. And they were then able to then take that, and use that for the restore. Because that was a real vault for their data. Now, the flipside is, that's a rare day. So that is truly a black swan event. When you think about day to day, and we're running a data protection operation, really think about speed of backup. And for us being able to take something that's neatly tuned for the hardware, the operating system, the tuning, the net backup software is all configured out of the box and ready to go. And the data protection folks, can be independently able to drive that is a great value. Because essentially, you have Lego style building blocks. Where you can order device, it always performs the same. And three years from now, you don't have to redesign it. And take your expensive IT staff and ask them to figure out what's the best solution. We've just got another one off the shelf for you, another series in the model. >> Right >> Now, as you said earlier, the world's getting weirder. It definitely is. So we'll be branching off into what kind of appliances we offer. And you'll see some announcements later, in the year where we'll be offering some reference architecture approaches, which will be a little different than what we offer today. Just to meet the customer demand that's out there. >> Yeah, that's great. I mean, 'cause as you said, it's all about customer choice. And meeting the customer where they want to meet. But before I let you go, this is pretty interesting conversation. I want to get your perspective, as someone who's been in the business, for a really long time. And as you look at opportunities around, machine learning and artificial intelligence, and you look at kind of the I'm going to steal your line about things getting weirder. And use over and over. But as they continue to get weirder and weirder, where do you see kind of the evolution is, you kind of sit back, not necessarily in the next six months or so. But where do you see growth opportunities and places you want to go? That better still out in front of you, even though you've been doing this for many, many years? >> Well, that's a great question. So this is yet another wave. And that's often how I look at it. Meaning, there's a wave of Unix. There's a wave of windows. There's wave of virtualization. And each of these technologies, brought some real shifts to our environment. I think, from my perspective, the next big wave is dealing with ransomware. And some of these compliance requirements we talked about earlier. And then I can't get away from this big data, AI piece and my son's studying computer science in college. And that's a weekly conversation for us. What's new in that front? Because I think we're going to see, a lot more technology developed there. We are just truly on the beginning of that curve. And frankly, when I think about the companies I work with, they have a tremendous amount of data. But that's really only going to increase, as they realize they can actually develop value from it. And as you mentioned, first thing once it shows up on the balance sheet, suddenly everyone's going to get very excited about that. >> Yeah, it's so funny, right? 'Cause it basically does show up on the balance sheet of Facebook, and it shows up on the balance sheet of Google. But it's just not a line item. And I keep waiting for the tipping point, to happen where that becomes, a line item on the balance sheet. Because increasingly, that is arguably, the most important asset. 0r certainly the information and learning that goes around that data. >> You're right. And frankly, it's an insurable asset at this point. You can go to a company in a number of commercial settings and get ransomware insurance, for instance. So people are definitely recognizing the value of it if they're willing to insure it. >> Right, right. All right, Tim. Well, thank you very much for stopping by. And giving us an update really interesting times in, kind of taking care of business and really the core of the business, which is the data inside the business. So, important work. And thanks for taking a few minutes. >> All right, thanks. I'll be glad to be back anytime you want me. >> Alright, He's Tim. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music)

(bright upbeat music) >> Reporter: From theCUBE Studios in Palo Alto in Boston. Connecting with thought leaders all around the world. This is theCUBE conversation. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're coming to you today from our Palo Alto studios, talking about a really important topic. And that's data. And as we hear over and over and over, right data is the oil. Data is the new currency. Data is driving business decisions. Data drives AI. Data drives machine learning. Data is increasingly important. And we're still kind of waiting for it, to show up on balance sheets. Which is kind of implied in a lot of the big iterations, that we see in companies that are built on data. But one of the important things about data, is taking care of it. And we're excited to have our next guest here to talk about, some of the things you need to think about, and best practices in securing your data. Backing up your data, protecting your data. We're joined today by Tim Burlowski. He is the senior director, Product Management from Veritas. Joining us from remote. I believe you're in Minnesota. Tim, great to see you. >> Yep, thanks for having me. >> Absolutely, so let's just jump into it. So all we hear about is data these days. It's such an important topic, that is growing exponentially. And it's structured and it's unstructured. And it's so core to the business. And are you making database decisions? And are you getting enough data to drive your AI? And your machine learning algorithms? I mean, data is only exploding. You've been in this business for a long, a long, long time. I wonder if you can share your perspective, when you hear these things. more data is going to be created in the next 15 minutes. And wasn't the entire history of men before us? I'm making that up, but it's been quite an explosion. >> I know yeah, I know where you're coming from. And frankly, I don't even put that, in my presentation anymore. Because it's a lot like saying gravity exists, And things that you drop out, of a window will fall to the ground. Everyone's heard it. Everyone's aware of it. The numbers are just so staggering. You don't even know what to do with it. Like how many iPhones could you stack to the moon and back and then to Saturn? Doesn't make sense. But the truth is, we are seeing an explosion. Everyone knows it. We have to manage it better. Now for us, a lot of what we do, is in this data protection space. Where we want to make sure, that data is protected and always available. All of the data that's been created, and the growth in mission-critical applications. It's no longer seven to 20 mission-critical applications. It's hundreds and hundreds of mission-critical applications. Means you have to be ready, with a recent recovery if necessary. And you need to provide that data back to the consumer, as quickly as you possibly can. Because you've got people waiting on it. We've all got our apps on our phone, where we're looking at our bank account 24 seven. We don't wait until a teller appears at nine a.m anymore. It's not the world we live in. >> Right, I'm just curious if you've got some tailwinds, in terms of you're kind of, you've been in this market for a very long time. In terms of people finally realizing that their data, is really more of an asset and a liability. In the investments, to gather it, protect it, analyze it, have it ready for refresh it, If there's some problem. It's a positive investment towards, kind of revenue and strategic importance to the company, as opposed to kind of a back-office IT function, that we're kind of taking care of business because we have to. >> But that one really varies a lot by company. I see companies taking shortcuts and outsourcing, and then suddenly you'll see them in the news. And they discover that they had a major outage for a couple of days. And suddenly practices change very, very quickly. The relative comprehensive, sturdy and reliable infrastructure that people run today, sometimes lulls people into false security. And then you see a major airlines with a multi-day outage. And you go hmm, I think we missed a few steps in the process. So it sometimes takes those rude awakenings. But the companies who are really taking it seriously, and starting to practice pruning their data, examining their data for PII. So they meet various compliance regimes, and other in various states and countries. And starting to think about their backup stream, really being, how do we get a fast recovery? Instead of how do I make a copy, which I will never use again? Are really starting to drive a more efficient IT operation, when it comes to data protection. >> No, it's an interesting take, in reference to having some issue. Because we do a lot of stuff around security. Which is related to but not equal to this conversation. And one of the topics in security is that, most people have already been breached. It's just a function of how fast can you find out, and how fast can you minimize the damage? And how fast can you move on? Why are they breaching? They're breaching to get the data. So I would imagine, with this constant reading in the newspaper, of who was breached here there and everywhere, pretty much every day. That's got to be a huge driver, in terms of people kind of upping their game, and the sophistication, of the way they really think about data protection. >> It is and I'll tell you, I've had the misfortune, I would say. Of talking to customers who are in the middle of recovering, from a major ransomware malware attack. And it's a very difficult proposition. And what customers often discover is, they haven't practiced enough, they don't have enough of a DR plan present. We are certainly rising the occasion. Our products are sort of the last thing, that often stands between the customer, losing their data completely. And so we're looking at a number of technology innovations, that will enable them to store their data on immutable devices. And for the backup infrastructure, to be completely aware of that. Which we'll be announcing later this summer. Which we're very excited about. Of course, from our perspective of our appliance portfolio, we've always provided a couple of extra layers of security against intrusion detection, and intrusion prevention right out of the box. Because we know the backup infrastructure becomes this collection of the very most important data in your infrastructure. Because that's the thing you back up. And you want to restore. If there's ever any sort of manmade disaster or otherwise. >> Right. So I want to shift gears a little bit, and talk about kind of the evolution of the infrastructure kind of scene. If you will. With the rise of public clouds, with Amazon and Google and Microsoft, is sure. And then obviously, you tried into a data center. Lot of talk about HP discover, this week kind of going from edge to cloud and data center in the middle. So the environment in which these applications live, and these applications run, and where the data is, relative to those applications. Is evolved dramatically over the last, you probably have a much better time perspective than I do. Five years, 10 years. But it continues to accelerate, in this kind of Application-Centric World versus, kind of an Infrastructure Centric World. Just curious to get your take on, The kind of the challenges that presents to your company, and what you guys are trying to do to accomplish. And how do you see that continuing to evolve and get, not simpler but more complex over time? >> That is a very astute acknowledgement of what's going on in the industry. And I often call it the industry's getting weirder. I would have thought at some point, we'd sort of have Linux and Windows, and a couple of database vendors. And the truth is that database vendors exploded. And it's not just Linux anymore. It's containers. And it might be a container based on CentOS. And it might be container running in the cloud. Or it might be a simple function, like a lambda function running on nothing in AWS. And so this whole world has gotten a lot stranger. From my perspective, I think the biggest change for Veritas, has been a renewed focus on API's that we make public to customers, in ways that we can glue and stitch these systems together. Now, of course, it doesn't replace the deep integration, we do with companies like VMware, with Docker, as well as the the container ecosystem around. Open shift and some of those technologies. But from our perspective, we've had to be a little bit more prolific, in what we support. And the truth is, it's all files, it's all objects, it's all things we've done before. But they just keep bubbling up in new and different ways. >> Right, but what's interesting though, is you touch on all kinds of stuff there with Kubernetes and clouds and in containers. Is a lot of it's kind of ethereal, right? The whole idea of of a cloud-based infrastructure, is that you can bring it up and bring it down as you need it. You can adjust it as you go. And literally turn it off when you don't need it. And bring it back up. And then you add to that serverless. And this kind of increasing atomization, of all the different parts of compute. Kind of an interesting thing for you guys, to try to back up as these things are created and destructed. We hear these crazy stories of, automating Kubernetes to spin up tons of these things at a time and then bring them back back down. And then I'm curious too. Within that is also the open source. kind of challenge in continuing to have evolution in open source technologies, API's, et cetera. So it is getting weirder and weirder, on a number of fronts as you guys continue to evolve with the market. >> Absolutely, and all I'll tell you, you have to think about all technologies as being on a bridge. As I remind people, we have washing machines. They work really well but washboards still exist, even though it's a technology from 18th century, or beforehand. Now, they may be used as still do exist. Now, my point in this is, people need a bridge. Most enterprises run on an amazing amount of technology, they've developed as a stack over the last 10 to 15 years. And they can't immediately rewrite that, and put it all in a cloud container. So we're actually seeing a lot of use of containers, and Kubernetes with fairly heavy application stacks. When you think about something as heavy as, all have Oracle inside of a container. You can understand that, that's a big lift for container. And it's not ephemeral at all. Then it reaches out to storage, that has that persistence value. And that's where we come in. 'Cause we want to make sure that persistent storage, is always protected. And easily available to the customer for any recovery needs. >> Is great, so I want to shift gears a little bit Tim, to talk about regulations and compliance. 'Cause, regulatory requirements drive a lot of behavior and activity, and really oftentimes, are ahead of maybe the business prerogative to do things like provide backups, provide quick and dirty, quick and easy access. Because you needed it for, a public Freedom of Information Act request. Or you need it for some type of court type of activity. So I wonder if you can kind of talk about, how the regulatory environment, continues to evolve over time. And how does that impact, what you guys are doing in the marketplace? >> Great question. The biggest place is It's affected us, is customers are starting to think about privacy. And where do I have data which relates to, personally identifying information. And that's really driven a lot, by the European regulations around GDPR. Then we're seeing the California Privacy Act come in. And a number of other states are considering legislation in this area. In some ways, it's actually been a good news story for data protection and data management. Because people are starting to say, I should identify where the data is, I should figure out where the PII is. And I should make sure, I'm actually using my backups for the right purposes. Which is something we've always believed in. We've always thought, Hey, Mr. Customer, I see you're backing up an Oracle database for 10 years. What are you going to do with it in 10 years? Are you going to install Oracle seven and reboot it? It doesn't really add up to me. So, how can you get to a true archive, for that data you really need archive? And then for your backup set, how can you keep it lean and mean. And just keep it for the length of time you actually need it? Which for many customers, could be as little as 14, 15 days, maybe six months, maybe a year. But it's often not those extreme retentions people were thinking of, when they were building their tape based infrastructure 10 years ago. >> Right, that's funny. 'Cause as you mentioned, also I'm thinking of, is big data. Right in this constant kind of conversation. In the Big Data world is they keep everything forever, with the hopes that at some point in time, there may be a different algorithm or a different kind of process, you might run on that, but you didn't think about. Right kind of scheme on read versus scheme on right. But to your point, is that necessarily something that has to be backed up, but it sounds like a lot of, kind of policy driven activity. Than to drive the software to define what to back up, what you don't back up, how you back it up, how long you back it up? And a lot of kind of business decisions as opposed to technology decisions. >> Absolutely, that's been on the back of, the price of storing a bit of data, has declined over the last 10 years. An average 15 percent year over year. For a very long time. So people have ignored the problem. But the truth is, when you're really working at scale, there's a tremendous amount of waste. And we've identified for customers, using our data analytics technology. Millions of dollars of cost savings, where they were, both had storing files on, expensive primary tier one storage. And they were backing up those same, that same bit of information every single week. Even though it hadn't changed, or hadn't been read in seven plus years, and they couldn't find an owner for the information in the company. They literally didn't know why they had it. And I think people are starting to consider that. Especially in budget constraint times. >> Right, it's so funny, right? Sometimes it's such a simple answer, a friend one time had a startup, and he was doing contract management. This is 20 years ago. And I was like, how do you manage the complexity of contracts inside software. Again 20 years ago. And he said, Jeff, that's not it at all. We just need to know like, where is the contract? who signed it and when does it expire? And they built the business, on answering simple questions like that. It's sometimes the simple stuff that's the hard stuff. I want to shift gears a little bit Tim, on what bear toss dude in the market in terms of still having appliances? I'm sure a lot of people like weight appliances. Why are we still using appliances? This is a software defined world. And everything just runs on x86 architecture. You guys still have appliances, tell us a little bit about the why. And some of the benefits of having, kind of a dedicated hardware, software piece of equipment, versus just a pure software solution that sits on anybody's box. >> That's a great question. Thanks for asking. When I think about that world, you have to understand Veritas at its core is absolutely a software company. We build software and we preserve the choice and how the customer implements. When I say we preserve choice. We obviously still support old school Unix. We certainly have enormous investment in the x86 world, both on Windows and various Linux flavors. And of course, you can run those same That same software in the cloud. And of course, you can run it inside of a virtualized infrastructure. So we always like to preserve choice. Now why did we create the appliance business, it's frankly because customers asked us to. The thing that made storing backups on disk affordable, was this technology known as deduplication. Which at its heart is just a fancy kind of compression, That's very, very good at copies of data, where there's a lot of blocks that are have been seen before. And so we don't store them if we've seen them before. We simply store the ones that are new and fresh. So from our perspective, customers said, "we want this technology." And the market really moved away, from general purpose solutions on servers to do that. Because it was very hard to build something, that could have a very high throughput, very high memory, and at the same time, could give excellent support for random access reads, when the customer actually needed to read that data. And so we created a purpose built appliances as a result. And what we discovered in the the process was, there were a lot of pieces that were actually fairly hard in the enterprise. So when a customer would describe, the purchasing process of their typical solution before appliances, they would talk about, filing tickets with the server team. Filing tickets with the storage team. Filing tickets with security team. And sometimes taking six or nine months, to get a piece of equipment ready to install the backup software on the floor. Whereas with ours, they placed an order, it showed up on the dock, as soon as it when it was in the rack, they were ready to go and working independently. Now while we have a great and thriving appliance business, we're very, very proud of, we always preserve choice at Veritas. And even though that's the business I represent, I would make sure our customers always understand, that we're interested in the best platform for the customer. So that's our basic perspective. If you want to go deeper, let me know where you have questions. (chuckles) >> Well, I'm curious on the process, when there's a fail, when there's attack, when there's ransomware, whatever. When you need to go back to your backup. What are some of the things that your approach enables, or what are kind of the typical stumbling blocks that are the hardest things to overcome. That people miss when they're planning for that. Or thinking about it. That kind of rear their ugly heads, when the time comes that, oh, I guess we need to go back to a backup version. >> Yeah, and I'll break that input into this disaster recovery or restore process. And then also the process of backup. So when you think about that disaster recovery, and I'll use ransomware as that piece of it. Because that's the real kind of disaster, when you're looking at equipment in the infrastructure, which has been wiped clean. That's a worst case scenario for most IT managers. When you think about that situation, we've built into our appliances first of all, a hardened Linux OS. Meaning we've shrank down that OS as much as we possibly could. Second, we've added role-based access protection. To make sure that you simply can't log in and perform activities which you're not privileged to perform. And then we have intrusion protection software, intrusion detection software. To ensure that even for those zero day attacks, that we may not even be aware of when we release our software, that the system is hardened. Of course, you have firewalls and STIG rules, STIG or rules are DoD standard, for hardening Linux based devices. So we've got a hardened device. And I was talking to a customer, in a different part of the world this week. Where they described having a data center, where everything had been wiped. And there's one thing left there, their NetBackup appliances. And they were then able to then take that, and use that for the restore. Because that was a real vault for their data. Now, the flipside is, that's a rare day. So that is truly a black swan event. When you think about day to day, and we're running a data protection operation, really think about speed of backup. And for us being able to take something that's neatly tuned for the hardware, the operating system, the tuning, the net backup software is all configured out of the box and ready to go. And the data protection folks, can be independently able to drive that is a great value. Because essentially, you have Lego style building blocks. Where you can order device, it always performs the same. And three years from now, you don't have to redesign it. And take your expensive IT staff and ask them to figure out what's the best solution. We've just got another one off the shelf for you, another series in the model. >> Right >> Now, as you said earlier, the world's getting weirder. It definitely is. So we'll be branching off into what kind of appliances we offer. And you'll see some announcements later, in the year where we'll be offering some reference architecture approaches, which will be a little different than what we offer today. Just to meet the customer demand that's out there. >> Yeah, that's great. I mean, 'cause as you said, it's all about customer choice. And meeting the customer where they want to meet. But before I let you go, this is pretty interesting conversation. I want to get your perspective, as someone who's been in the business, for a really long time. And as you look at opportunities around, machine learning and artificial intelligence, and you look at kind of the I'm going to steal your line about things getting weirder. And use over and over. But as they continue to get weirder and weirder, where do you see kind of the evolution is, you kind of sit back, not necessarily in the next six months or so. But where do you see growth opportunities and places you want to go? That better still out in front of you, even though you've been doing this for many, many years? >> Well, that's a great question. So this is yet another wave. And that's often how I look at it. Meaning, there's a wave of Unix. There's a wave of windows. There's wave of virtualization. And each of these technologies, brought some real shifts to our environment. I think, from my perspective, the next big wave is dealing with ransomware. And some of these compliance requirements we talked about earlier. And then I can't get away from this big data, AI piece and my son's studying computer science in college. And that's a weekly conversation for us. What's new in that front? Because I think we're going to see, a lot more technology developed there. We are just truly on the beginning of that curve. And frankly, when I think about the companies I work with, they have a tremendous amount of data. But that's really only going to increase, as they realize they can actually develop value from it. And as you mentioned, first thing once it shows up on the balance sheet, suddenly everyone's going to get very excited about that. >> Yeah, it's so funny, right? 'Cause it basically does show up on the balance sheet of Facebook, and it shows up on the balance sheet of Google. But it's just not a line item. And I keep waiting for the tipping point, to happen where that becomes, a line item on the balance sheet. Because increasingly, that is arguably, the most important asset. 0r certainly the information and learning that goes around that data. >> You're right. And frankly, it's an insurable asset at this point. You can go to a company in a number of commercial settings and get ransomware insurance, for instance. So people are definitely recognizing the value of it if they're willing to insure it. >> Right, right. All right, Tim. Well, thank you very much for stopping by. And giving us an update really interesting times in, kind of taking care of business and really the core of the business, which is the data inside the business. So, important work. And thanks for taking a few minutes. >> All right, thanks. I'll be glad to be back anytime you want me. >> Alright, He's Tim. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music)

>>from around the globe. It's the Cube covering HP Discover virtual experience brought to you by HP. >>Welcome to the Cube's coverage of HP Discover 2020. This is the virtual experience. I'm Lisa Martin with the Cube, and I'm joined by a couple of guys who were gonna talk through one of HPC ease. Longest partnerships. We've got shells. No Ryan and the Senior director Ecosystem Sales or North America at HP And Dr Rajesh, It's really a Boston. The global head of sales and solutions for the TCS. Gentlemen, welcome to the Cube. >>Yeah, Thank you. >>So, first question for you is I mentioned HP and TCS have been partners for over 30 years. Talk to our audience about the partnership and how it has evolved to where it is today. >>Yeah. Thank you, Lisa. Firstly, you know, I'm pretty excited to be part of this Cube interview with garages. You know, I know him personally for over five years through various interactions globally and this new role for North America. This is our strategy and global system integrator partner. And this is a longstanding partnership between HP and this years has grown multi falls over the last 30 years. Ah, we you know, pretty much enjoyed every single I would say transactions or the business engagements, what we've had so far. And we liberate each other for our internal I T requirements and also to drive joint, go to market initiatives across the world. That's making this a truly 3 60 degree partnership. There is a lot of heritage, a mutual trust and respect between both organizations at all levels and the complimentary offerings. You know what you will hear a lot more in the next couple of questions. Uh, we bring to the table together are very unique and very differentiating to the clients which are >>excellent. Dr. Rajesh, walk us through some of those joint offerings that TCS cloud in h e or delivering. >>Yeah, so far. So far. Thanks. I just want to thank the HP team for giving me the opportunity to up to a larger audience. Andi, This new normal. This is the first time I'm doing an interview like this. Thanks for that experience. Actually, as Jules mentioned, this relationship goes a long way. I am talking about the larger PCs were a long relationship, Andi, specifically on the easiest load we started this journey in a very, very practical way. Five years back it was it was started in a very, very small trial and error basis. We started this relationship RPC explode. But at this point in time after So yes, we have taken this into ah, new norm, actually. So I'll give you a couple of examples. One of the examples We have a very major retailer in Germany, which we work so that it was a $1,000,000 deals. Our busiest on GHB. Yes, you wanna unique offering to the customer s AP and a space on that is really growing a lot. And that's the one offering I would like to tell the audience that really has picked up and spent on the relationship in the German region. Right now we are trying to take that up, offering across on other other regions also, so that is one of the key offerings that we are doing it. The other offerings are multiple offerings we are doing. But again, I want to highlight the storage as a service offering. Great. It's everybody in the industry today, Andi, we are experimenting that in the initial stages in Australia we started in Australia a small offering. And now we are expanding it in the US geography in a big way. And this year we are going to make that as a unique offering. And we're going to offer they're all over cloud customers as a storage as a service offering. Also multiple other offering, Lisa. But I just thought that I like this tool which are making our business. We're making a lot of business together with these two offerings >>is the, uh, s AP opportunity that you mentioned is that the Hana as a service that TCS is delivered? >>That's correct. So it's ah, it's a service. But the uniqueness of that particular offering is we jointly created the architecture so that the customer can use that, like a database as a service model. Right? So it was It was not available that time in the industry so easily like what we offered at that point in time to do enough years back. We offer that particular said we spoke a summer and interestingly, that particular offering the customer was using s AP themselves as a service initially, and they migrated their to us actually from Maybe that's a reason they bought HP and TCS. There is like a summer on this API and a platform. So that's the That's the interesting story under, >>if we didn't do that just a little bit further, I wanted the audience to understand the impact that this partnership has H p E and TCS delivering Hana as a service or your customers. What are the benefits there than what the customer, as you said was doing previously? >>Yeah, yeah, I think I just want to highlight the three or four points that make that this offering very unique, and that helps the customer number one is associated with model. So the customer has got the complete flexibility off going up and down like a true cloud model, right? And so it is a really a unique proposition at that point in time, where the customer not a story about using less for some time and then using more sometimes so it's kind of a complete, flexible model that we offered at the time. Number two is, it's a complete customization is possible. It is not like a fixed architecture. The architecture is so flexible so that the customer business needs can be met through the architectural changes. So it's not like normally people think that lotus highly standardized architecture, right? So that has gone out, and we were given a flexible architecture for the customer. That is the number two number three, obviously the cost end of the day. There's a business case which we need to make it work right for the customer. So obviously, with the PCs and HP coming together, we were able to do the costarred, want age with a customer that is the third advantage of that. The last, but not the least, is the quality of service it is it is all about. I always used to tell my partners that selling is easy. Delivering it is what it's important it is, which will make the customer to stick with you, right? The were given and delivery quality experience who our customer s so that I think that makes a very unique proposition from a technology perspective from a pricing. But but from an architecture and also from the delivery perspective. So those are the few few things I just thought that I violated. >>Excellent. So a couple of words that you mentioned popped into my mind as really even more well, have a different meeting as we're in summer 2020 flexibility and unique offering chills back to you from a go to market perspective. How is that relationship with HP? And he says, changing in the Koven era. >>Yeah, it's pretty interesting, and I would like to call it an example off. You know, what we see is is that you themselves during the corporate times, you know, it also came in the in the pets close to 90% of the workforce. We're 100% productive. Uh, and, uh, they have a plan to go 75% of the employees, you know, go being remote by 2025. Right? So that's the journey they're taking on. And another thing that you notice there's a lot of the, you know, During the corporate times, many of the customers were looking for solutions like virtual desktop infrastructure. So they wanted their employees to be productive, bi directional and in the other area of focus was like a TCP, you know, how do I kind of make sure on the applications are available to you? The customers and also do their internal organizations. So we've seen a lot off. I would say engagement with that is I could picture team and also the solution team toe address This requirements off the market joint >>when we look at certain things that now might even be more important with this new normal, if you will, that the fact that most companies are still in phase one of this work, everyone works from home trying to get to a phase to that might see some some maybe by function groups coming back to the office and then getting to this third. Maybe it's the new nirvana of some hybrid workforce, where there's gonna be some that come back permanently, and some that Don't and Tony Unirea chose, I saw was quoted last month as saying he thinks that 50% of the workforce will only 50% will come back. So in this new not only hybrid I T environment in which your customers love it now, this new pending hybrid workforce environment how are you addressing some of the concerns together with respect to the network connectivity security, >>I will just take the cost anything. It's a very, very interesting at least when we all ended up in this pandemic in March. We really very, very nervous, actually, because everyone has to operate remotely on we are. We are dealing with the customer data. It's ah, it's very, very important that we have a secure environment to access the information and at the same time maintain the integrity of the data and also the quality off the plate. Those other two primary objective for us. We don't want to compromise on quality. We don't want to compromise on security from a cloud perspective. So the solution we have put in really, I just give you one example there was on the airline Ah, UK based the airline industry airline company which they need that workforce overnight. They want everybody to go remote because you know you cape on. They just put up condition that nobody can work from the office overnight and then terror ports as toe work from home purchases, implement the solution for them on our clothes overnight and make that 1000 employees store from home the next day morning. All of them started working with full quality of services and also with a full security aspect of it, has been taken care ornate on the solution. We are deployed. Very interesting case study on The important thing we have done is use the technology to the port. Use all kinds of technology to make sure that the employees that work from home we took care of the network connectivity. We took our eye off the security aspects off the data from security aspects. We've implemented all the security functions from really APIs. But people, Children stop perspective. Andi, make the workforce enable that. But now you are talking about millions off millions of workers going to work from home. Right? Because it is one example for one company we have done that now the easiest themselves has got more than 400 1000 employees. And we are talking about millions off our pores, going to work from home on going forward. So that is I'm seeing this as a big opportunity. It's not that everybody has are just this at this point in time, I'm seeing this as an opportunity where on the cloud easiest cloud kind off. The solution is going to help them to achieve this. And this is a great opportunity for not only for PCs, but also for HP because the solution we're putting together with the HP is more on the digital or course how we can enable the people to work from home, not compromising on as I mentioned from a security you're in from millions perspective. So I'm seeing this as an opportunity for both the organization, and it's a long way to go is we need to work on this. It's not. We don't have a magic want to make the millions off workers to work from home, but it is going to have all soon and probably in the next step. Yeah, so we may achieve this, impair people off. The workforce is going to go remotely on this list. So that's that. And my take on this >>is so the impact that HP and TCS Herb being able to make for customers who have had to massively transform their entire workforce overnight, as he said, to work from home to talk about some of the new maybe new solutions or new business opportunities that HPC is partnering with TCS shells, we'll start with you in this new era, >>Yeah, so if you look at it, I just taking it again on extension off of the projects. What he just mentioned about the percentage of employees going remote Lisa across industries today. I would say less than 20% of the employees are actually working remote or they have the ability. But the organizations have the ability to support the employees going, and if you have to take it to 50% so you can look at the kind of opportunity we have both as HP and as PCs. So we bring in a lot of best in breed infrastructure from for enabling the employee workforce to know where it is. I would say capacity off workloads and it's all workload specific. And what business does this or when people Pretty easy as we kind of bundle that creating a reference architecture or a giant architect picture addressing the customers by industry word. So because one what suits for one vertical may not be really suiting well for a different world, right? For example, if you take a banking sector are playing, a workstation solution would look very different from somebody's doing remote work in retail, so we kind of continuously engage with the PCs, and that's where both of us have joint lab as well, where our technologies and pieces technologies come together, working on joint solutions and assisting the market in terms of the opportunity lights. And we offer this as part of A C is our digital workplace offerings. >>Are your conversations Dr Additional go to you or your conversations when you're jointly selling, changing in terms of who your audience is? Is this now a C level conversation? Since these leaders and we've heard leaders of Google and Facebook already last month saying Work from home extended still 2021. Is this now at the C suite level, where you guys are helping them really understand how to completely change and digitize their entire way of doing business? >>Absolutely. I think it's a great question, and it's actually the opportunity goes beyond the work from home solution. As you rightly I want to know that it is. It is all about digitization. It is all about digitizing their whole business process. It is not anymore infrastructure. Our application solution. It is more about really finding that business process be defending. The way the business is going to operate in future is the discussion we are having so a lot of these discussions are happening at a very, very high level and with the business team also directly so earlier, you used to interact with the technology partners off our organization. But now we are interacting directly with the head of business are the C level except of the company. And that is the reason the exact reason is Ah, you. If you want your ports to be productive remotely, you can't just offer them on network on. You can't offer them just a solution to work from home. But you need to really find your whole business process you need. You need to digitize your infrastructure. You need to digitize your application. You need to rethink your whole process off. You're operating on it, so that's what I'm seeing. It's not only an opportunity for our players like a business cloud, but it is the opportunity for a bigger opportunity for PCs. And it should be not only in terms off on infrastructure in our cloud business, it goes beyond that. So that is that is the kind of an opportunity we're seeing, especially in the in the sectors of healthcare you're seeing major reforms are happening in the healthcare industry as we speak, and obviously manufacturing is going to go through a lot of changes. Also from that. And retail obviously has gone through a lot of changes already in terms of online, uh, stuff, but know that also going to go through changes in this new era? Yes, >>I have to ask you shelled, talking about redefining? That's a word that we've seen so many years in a row at tech conferences, right, this technology redefining this business or that industry. And now, of course, we're being redefined by an invisible virus. But how? How is the sales process being redefined? Is it a lot more accelerated because businesses have to put together new plans to continue operations? >>Yeah, again, a great question. Is this how you have? You know, I would say it's divided by industry body. It's not a uniform thing by, as not British was saying, every industry has got its own, its own set of challenges and its own set of opportunities, and some of them are really actually doing well even in times like and some of them have seen, Really. I mean, like, travel our transportation or you know some of those industries are, and even hospitality that's kind of affected big time. So our view of you know, the entire sales engagement of the processes we're spending more time on there. We really need to focus and which can help improve the businesses. Right? So the conversation's ready from How do I take the cost out in terms of how can I make a little more investment to get greater returns from the business? So it's like it's completely, I would say, an interesting pain and engaging compositions and decisions are happening. So we, if you look at us from an automatic perspective, the Internet to the sales team is armed with various virtual tools like we know you zoom views Skype using SMS teens. So all the tools available to make sure that we're able to connect with all our partners and customers on do enable joint business together. >>I just want oh, I add to it, Lisa, 111 point. I want bad, Really interesting change I'm seeing on the sales is normally we respond to it. I asked from a customer that is a sales happens. I want this many days. Do it and then what you can do with a solution that is a normal sales process. What I have seen that has changed completely. Yes, we go and tell the customer, Is this what you need Actually, to make you yourself your business? Better? This is the new offerings I'm having good. And this offering is going to help you to solve the problem what you are having today. So we are engaging a different level off sales conversation today with our customers. We know the problem of the customer because we are working with them for many years and we know exactly what they're going through. And we also know what new offerings we are having in this. So we are engaging the discussion with the customer doing that. This is my new offering. This is going to help you to solve this problem. But that is a different angle of sales we have seen nowadays they spend on it. >>The last question shells to you. We started our interview today talking about the HP TCS relationship. You talked about how it's evolved. Last question. You talked to me about H B's strategy. How does it match TCS Alfa Cloud offering. >>Yeah, so again, a great question, Lisa, if you look at our strategy, is to accelerate the enterprises with it. Centric and cloud enable solutions which are workload up, optimized and delivered everything as a service. And whatever you heard from Dr Rogers through this entire conversation was about how do we give as a service model you gave an example of honor. You gave an example off, you know, going how optimizing workloads for video and getting employees to be able to be productive remotely and all of that kind of extremely resonate well with, you know, what we see is confined to price. Cloud offering is bringing to the table for the customer and the underlying platform. You know, we kind of elaborate extensively and closely with the easiest architecture. Seem to have the HP portfolio off. You know, the compute and storage portfolio integrated as part of their offering, and we go together to market, you know, and addressing and kind of an ask service model. 1,000,000,000. >>Excellent. Well, shells Dr. Rajesh, pleasure talking with you both today about what UCS and H e are doing together and some of the ways that you're really helping businesses move forward in these uncertain times, we appreciate your time. >>Thank you. Thank you for represents. Thanks. Thank >>you. Dr Rajesh. >>My guest. I'm Lisa Martin. You're watching the Cube's coverage of HP Discover 2020. The virtual experience. Thanks for watching. >>Yeah, yeah, yeah.

>>from around the globe. It's the Cube covering HP Discover virtual experience brought to you by HP. >>Welcome to the Cube's coverage of HP Discover 2020. This is the virtual experience. I'm Lisa Martin with the Cube, and I'm joined by a couple of guys who were gonna talk through one of HPC ease. Longest partnerships. We've got shells. No Ryan and the senior director Ecosystem sales for North America at HP and Dr Rajesh Boston, the global head of sales and solutions for the TCS. Wow. Gentlemen, welcome to the Cube. >>Thank you. >>So, first question for you, as I mentioned, HP and TCS have been partners for over 30 years. Talk to our audience about the partnership and how it has evolved to where it is today. >>Yeah. Thank you, Lisa. Firstly, you know, I'm pretty excited to be part of this Cube interview with garages. I know. I know him personally for over five years through various interactions globally and this new role for North America. This is our strategy and global system integrator partner. And this is a longstanding partnership between HP and this years has grown multi falls over the last 30 years. We you know, pretty much enjoyed every single I would say transactions or the business engagements, what we've had so far. And we liberate each other for our internal I T requirements and also to drive joint, go to market initiatives across the world. That's making this a truly a 3 60 degree partnership. There is a lot of heritage, a mutual trust and respect between both organizations at all levels and the complimentary offerings. You know what you will hear a lot more in the next couple of questions we bring to the table together are very unique and very differentiating to the clients, which are >>excellent. Dr. Rajesh walk us through some of those joint offerings that TCS cloud in h e or delivering. >>Yeah, so far so far. Thanks. I just want to thank the HP team for giving me the opportunity to off to a larger audience. Andi, This new normal. This is the first time I'm doing an interview like this. Thanks for that experience. Actually, as James mentioned, this relationship goes a long way. I am talking about the larger PCs were a long relationship. Andi, specifically on the easiest flowed. We started this journey in a very, very practical way. Five years back it was it was started in a very, very small trial and error basis. We started this relationship RPC explode. But at this point in time after So yes, we have taken this into, ah, new norm, actually. So I'll give you a couple of examples. One of the examples We have a very major retailer in Germany, which we work so that it was a multi $1,000,000 deals, our busiest on GHB. He has been a unique offering to the customer s AP, and a space on that is really growing a lot. And that's the one offering I would like to tell the audience that really has picked up and spent on the relationship in the German region. Right now we are trying to take that up, offering across on other other regions also, so that is one of the key offerings that we are doing it. The other offerings are multiple offerings we are doing, but again, I want to highlight the storage as a service offering. Great. It's everybody in the industry today, Andi, we are experimenting that in the initial stages in Australia, we started in Australia a small offering. And now we are expanding it in the US geography in a big way. And this year we are going to make that as a unique offering. And we're going to offer they're all over cloud customers as a storage as a service offering. Also, multiple other offering. Lisa. But I just thought that I like this tool which are making our business. We're making a lot of business together with these two offerings >>is the, uh, s AP opportunity that you mentioned is that the Hana as a service that TCS is delivered? >>That's correct. So it's ah, it's a service. But the uniqueness of that particular offering is be jointly created the architecture so that the customer can use that, like a database as a service model. Right? So it was It was not available that time in the industry so easily like what we offered at that point in time to do enough years back. We offer that particular said we spoke a summer and interestingly, that particular offering the customer was using s AP themselves as a service initially, and they migrated their to us actually from Maybe that's a reason they bought HP and PCs. That is like a summer on this API and a platform. So that's the That's the interesting story under, >>if we didn't do that just a little bit further, I wanted the audience to understand the impact that this partnership has H p E and TCS delivering Hana as a service for your customers. What are the benefits there than what the customer, as you said was doing previously? >>Yeah, yeah, I think I just want to relay the three or four points that make that this offering very unique, and that helps the customer number one is associated with model. So the customer has got the complete flexibility off going up and down like a true cloud model, right? And so it is a really a unique proposition at that point in time, where the customer not a story about using less for some time and then using more sometimes. So it's kind of a complete, flexible model that we offered at the time. Number two is, it's a complete customization is possible. It is not like a fixed architecture. The architecture is so flexible so that the customer business needs can be met through the architectural changes. So it's not like normally people think that lotus highly standardized architecture, right? So that has gone out, and we were given a flexible architecture for the customer. That is the number two number three, obviously the cost end of the day. There's a business case which we need to make it work right for the customer. So obviously, with the PCs and HP coming together, we were able to do the costarred, want age with a customer that is the third advantage of that. The last, but not the least, is the quality of service it is it is all about. I always used to tell my partners that selling is easy. Delivering it is what it's important it is, which will make the customer to stick with you, right? The were given and delivery quality experience who our customer s so that I think that makes a very unique proposition from a technology perspective from a pricing, but from an architecture and also from the delivery perspective. So those are the few few things I just thought that I violated. >>Excellent. So a couple of words that you mentioned popped into my mind as really even more well have a different meeting as we're in summer 2020 flexibility and unique. Offering chills back to you from a go to market perspective. How is that relationship with HP? And he says, changing in the Koven era. >>Yeah, it's pretty interesting, and I would like to call it an example off. You know, what we see is is that you themselves during the corporate times, you know, it also came in the pets close to 90% of the workforce. We're 100% productive. Uh, and, uh, they have a plan to go 75% of the employees, you know, but go being remote by 2025. So that's the journey they're taking on. And another thing that you notice there's a lot of the, you know, During the corporate times, many of the customers were looking for solutions like virtual desktop infrastructure. So they wanted their employees to be productive, bi directional and in the other area of focus was like a TCP, you know, how do I kind of make sure on the applications are available to you, the customers and also do their internal organizations? So we've seen a lot off. I would say engagement with that is I could picture team and also the solution team toe address This requirements off the market jointly >>when we look at certain things that now might even be more important with this new normal, if you will, that the fact that most companies are still in phase one of this work, everyone works from home trying to get to a face to that might see some some maybe by function groups coming back to the office and then getting to this third. Maybe it's the new nirvana of some hybrid workforce, where there's gonna be some that come back permanently, and some that Don't and Tony Unirea chose, I saw was quoted last month as saying, I think that 50% of the workforce will only 50% will come back. So in this new not only hybrid I T environment in which your customers love, but now this new pending hybrid workforce environment, how are you addressing some of the concerns together with respect to the network connectivity security, >>I I'll just take the cost anything. It's a very, very interesting at least when we all ended up in this pandemic in March. We really very, very nervous, actually, because everyone has to operate remotely on we are. We are dealing with the customer data. It's ah, it's very, very important that we have a secure environment to access the information and at the same time maintain the integrity of the data and also the quality off the plate. Those other two primary objective for us. We don't want to compromise on quality. We don't want to compromise on security from a cloud perspective. So the solution we have put in really I just give you one example there was on the airline Ah, UK basically are living in the spirit of the company which they need that workforce overnight. They want everybody to go remote because you know you cape on. They just put up a condition that nobody can work from the office overnight on the entire or ports as toe work from home, PTC is implemented the solution for them on our clothes overnight and make that 1000 employees store from home the next day morning all of them started working with the full quality of services and also with a full security aspect of it has been taken care or made on the solution. We are deployed. Very interesting case study on The important thing we have done is use the technology to the poor. Use all kinds of technology to make sure that the employees that work from home we took care of the network connectivity. We took our eye off the security aspects off the data from security aspects. We've implemented all the security functions from a media perspective. Actually stop perspective, Andi. Make the workforce enable that. But now you are talking about millions off millions of workers going to work from home. Right, Because it is one example for one company we have done that note easiest themselves has got more than 400 1000 employees, and we are talking about millions off work force going to work from home on going forward. So that is, I'm seeing this as a big opportunity. It's not that everybody has are just this. At this point in time, I'm seeing this as an opportunity where on the cloud easiest cloud kind off. The solution is going to help them to achieve this, and this is a great opportunity for not only for PCs but also for HP because the solution we're putting together with the HP is more on the digital or course how we can enable the people to work from home, not compromising on as I mentioned from a security you're in from millions perspective. So I'm seeing this as an opportunity for both the organization, and it's a long way to go is we need to work on this. It's not. We don't have a magic want to make the millions off workers to work from home, but it is going to have all soon and probably in the next step. Yeah, so we may achieve this. Impair people's off. The workforce is going to go remotely on this list. So that's that. And my take on this >>is so the impact that HP and TCS herb being able to make for customers who have had to massively transform their entire workforce overnight, as he said, to work from home to talk about some of the new maybe new solutions or new business opportunities that HPC is partnering with TCS shells, we'll start with you in this new era, >>Yeah, so if you look at it, I just taking it again on extension, offered up by just what you just mentioned about the percentage of employees going Lisa across industries today. I would say less than 20% of the employees are actually working remote or they have the ability. But the organizations have the ability to support the employees going, and if you have to take it to 50% so you can look at the kind of opportunity we have both as HP and as PCs. So we bring in a lot of best in breed infrastructure from for enabling the employee workforce to know where it is. I would say capacity off workloads and it's all workload specific. And what business does is over when people pretty easy as we kind of bundle that creating a reference architecture or a giant architect architecture addressing the customers by industry body. So because one what suits for one vertical may not be really suiting well for a different world, right? For example, if you take a banking sector, our traded workstation solution would look very different from somebody's doing remote in a retail. So we kind of continuously engage with the PCs, and that's where both of us have joint lab as well, where our technologies and pieces technologies come together, working on joint solutions and assisting the market in terms of the opportunity lights. And we offer this as part of A C is our digital workplace offerings. >>Are your conversations Dr Additional go to you or your conversations when you're jointly selling, changing in terms of who your audience is? Is this now a C level conversation? Since these leaders and we've heard leaders of Google and Facebook already last month saying Work from home extended still 2021. Is this now at the C suite level, where you guys are helping them really understand how to completely change and digitize their entire way of doing business? >>Absolutely. I think it's a great question, and it's actually the opportunity goes beyond the work from home solution. As you rightly I want to know that it is. It is all about digitization. It is all about digitizing their whole business process. It is not anymore infrastructure. Our application solution. It is more about really finding that business process be defending. The way the business is going to operate in future is the discussion we are having so a lot of these discussions are happening at a very, very high level on with the business team. Also directly, so earlier you used to interact with the technology partners off our organization. But now we are interacting directly with the head of business are the C level except of the company. And that is the reason the exact reason is Ah, you. If you want your ports to be productive remotely, you can't just offer them on network on. You can't offer them just a solution to work from home, But you need to really find your whole business process you need. You need to digitize your infrastructure. You need to digitize your application. You need to rethink your whole process off. You're operating on it, so that's what I'm seeing. It's not only an opportunity for our players like PCs cloud, but it is the opportunity for a bigger opportunity for PCs and be not only in terms off on infrastructure in our cloud business, it goes beyond that. So that is that is the kind of an opportunity we're seeing, especially in the in the sectors of healthcare you're seeing major reforms are happening in the healthcare industry as we speak on, obviously, manufacturing is going to go through a lot of changes. Also from that. And retail obviously has gone through a lot of changes already in terms of online, uh, stuff, but know that also going to goto changes in this new era? Yes, >>I have to ask you shelled talking about redefining? That's a word that we've seen so many years in a row at tech conferences, right, this technology redefining this business or that industry. And now, of course, we're being redefined by an invisible virus. But how is how is the sales process being redefined? Is it a lot more accelerated because businesses have to put together new plans to continue operations? >>Yeah, again, a great question. Is this how you have? You know, I would say it's divided by industry body. It's not a uniform thing. By, as the British was saying, every industry has got its own, its own set of challenges and its own set of opportunities, and some of them are really actually doing well even in times like and some of them have seen, Really. I mean, like, travel our transportation or, you know, some of those industries are and even hospitality that's kind of affected big time. So our view of you know, the entire sales engagement of the processes we're spending more time on there. We really need to focus and which can help improve the businesses. Right? So the conversation's ready from How do I take the cost out in terms of how can I make a little more investment to get greater returns from the business? So it's like it's a completely I would say, an interesting pain and engaging compositions and decisions are happening. So we, if you look at us from an automatic perspective, the sales team is armed with various virtual tools, like We know you zoom views Skype using SMS teens. So all the tools available to make sure that we're able to connect with all our partners and customers on do enable joint business together. >>I just want oh, I add to it, Lisa, 111 point. I want to ride Really interesting change I'm seeing on the sales is normally we respond to ask from a customer that is a sales happens. I want this many days do it and then what you can do with a solution That is the normal sales process. What I have seen that has changed completely. Yes, we go and tell the customer, Is this what you need Actually, to make you yourself your business? Better? This is the new offerings I'm having good. And this offering is going to help you to solve the problem what you are having today. So we are engaging a different level off sales conversation today with our customers. We know the problem of the customer because we are working with them for many years and we know exactly what they're going through. And we also know what new offerings we are having in this. So we are engaging the discussion with the customer doing that. This is my new offering. This is going to help you to solve this problem. But that is a different angle of sales we have seen nowadays in this. A friend of it, >>the last question shells to you. We started our interview today talking about the HP TCS relationship. You talked about how it's evolved. Last question. You talked to me about H B's strategy. How does it match TCS Alfa Cloud offering? >>Yeah, so again, a great question, Lisa, if you look at our strategy is to accelerate the enterprises with it. Centric and cloud enable solutions which are workload optimized and delivered everything as a service. And whatever you heard from Dr Rogers through this entire conversation was about how do we give as a service model you gave an example of Hana? You give an example off, you know, going optimizing workloads for VD I and getting employees to be able to be productive remotely and all of that kind of extremely resonate well with you know, what pieces are defined to. Price cloud offering is bringing to the table for the customer and the underlying platform. You know, we can have yeah, extensively and closely with the easiest architecture being tohave the HP portfolio off. You know, the compute and storage portfolio integrated as part of their offering, and we go together to market, you know, addressing and kind of an ask service model. 1,000,000,000. >>Excellent. Well, shells Dr Rajesh, pleasure talking with you both today about what UCS and H e are doing together in some of the ways that you're really helping businesses move forward in these uncertain times, we appreciate your time. >>Thank you. Thank you. For instance. Thanks. >>Thank you. Dr Rajesh. >>My guest. I'm Lisa Martin. You're watching the Cube's coverage of HP Discover 2020. The virtual experience. Thanks for watching. >>Yeah, Yeah, yeah, yeah, yeah.

>>from around the globe. It's the Cube covering HP. Discover Virtual experience Brought to you by HP. >>Welcome back to the Cube's coverage of HP Discover. 2020. The virtual experience. The Cube. The Cube has been virtualized. My name is Dave Vellante. I'm here with Stuart Minuteman and our good friend Tim Crawford is here. He's a strategic advisor to see Io's with boa. Tim, Great to see you. Stuart. Thanks for coming on. >>Great to see you as well, Dave. >>Yes. So let's unpack. What's going on in that Discover Antonio's, He notes, Maybe talk a little bit about the prospects for HP of coming forward in this decade. You know, last decade was not a great one for HP, HP. I mean, there was a lot of turmoil. There was a botched acquisitions. There was breaking up the company and spin merges and a lot of distractions. And so now that companies really and you hear this from Antonio kind of positioning for innovation for the next decade. So So I think this is probably a lot of excitement inside the company, but I want to touch on a couple of points and then you get your guys reaction, I guess, you know, to start off. Obviously, Antonio's talking about Cove in the role that they played in that whole, you know, pandemic and the transition toe the the isolation economy. But so let me start with you, Tim. I mean, what is the sort of posture amongst cios that you talk to? How strategic is HB H B two? The folks that you talk to in your community? >>Well, I think if you look at how CIOs are thinking, especially as we head into covert it into Corona virus and kind of mapping through that, that price, um, it really came down to Can they get their hands on technology? Can they get people back to work working from home? Can they do it in a secure fashion? Um, keeping people productive. I mean, there was a lot of block and tackling, and even to this day, there's still a fair amount of that was taking place. Um, we really haven't seen the fallout from the cybersecurity impact of expanding our foot print. Um, quite. But we'll see that, probably in the coming months. There are some initial inklings there when it comes to HP specifically I think it comes back to just making sure that they had the product on hand, that they understood that customers are going through dramatic change. And so all bets are off. You have to kind of step back and say, Okay, those plans that I had 60 9100 and 20 days ago those strategies that I may have already started down the path with those are up for grabs. I need to step back from those and figure out What do I do now? And I think each company, HP included, needs to think about how do they start to meld themselves, to be able to address those changing customer needs? And I think that's that's where this really kind of becomes the rubber hits the road is is HP capable of doing that? And are they making the right changes? And quite frankly, that starts with empathy. And I think we've heard pretty clearly from Antonio that he is sympathetic to the plight of their customers and the world >>on the whole. >>Yeah, and I think culturally 10 minutes do I mean I think you know HP is kind of getting back to some of its roots, and Tony has been there for a long time. I think people I think is very well liked. Andi, I think, ease of use, and I'm sure he's tough. But he's also a very fair individual, and he's got a vision and he's focused. And so, you know, I think again, as they said, looking forward to this decade, I think could be one that is, you know, one of innovation. Although, you know, look, you look at the stock price, you know, it's kind of piqued in November 19. It's obviously down like many stocks, so there's a lot of work to do there, and it's too. We're certainly hearing from HP. This notion of everything is a service that we've talked about green like a lot. What's your sense of their prospects going forward in this, you know, New Era? >>Yeah, I mean, Dave, one of the biggest attacks we've heard about H E in the last couple of years, you know the line Michael Dell would use is you're not going to grow by, say, abstraction. But as a platform company, HP is much more open. From what I've seen in the HP that I remember from, you know, 5 to 10 years ago. So you look at their partner ecosystem. It's robust. So, you know, years ago, it seemed to be if it didn't come out of HP Labs, it wasn't a product, you know. That was the services arm all wanted to sell HP here. Now, in this software defined world working in a cloud environment, they're much more open to finding that innovation and enabling it. So, you know, we talk about Green Lake Day. Three lakes got about 1000 customers right now, and a big piece of that is a partner. Port Police, whether it's VM Ware Amazon Annex, were H B's full stack themselves. They have optionality in there, and that's what we hear from from users is that they want flexibility they don't want. You know, you look at the cloud providers, it's not, you know, here's a solution. You look at Amazon. There's dozens of databases that you can use from Amazon or, if you use on top of Amazon, so H p e. You know, not a public cloud provider, but looking more like that cloud experience. They've done so many acquisitions over the years. Many of them were troubled. They got rid of some of the pieces that they might have over paid for. But you look at something like CTP them in this multi cloud world in the networking space, they've got a really cool, open source company, the company behind spiffy, inspire. And, you know, companies that are looking at containers and kubernetes, you know, really respond to say, Hey, these are projects that were interesting Oh, who's the company that that's driving that it's HP so more open, more of a partner ecosystem definitely feels that there's a lot there that I respect and like that hp >>well, I mean, the intent of splitting the company was so that HP could be more focused but focused on innovation was the intent was to be the growth company. It hasn't fully played out yet. But Tim, when you think about the conversations that CIOs are having with with HPI today versus what they were having with hpe HP, the the conglomerate of that the Comprising e ds and PCs, I guess I don't know, in a way, more more Dell like so Certainly Michael Dell's having strategic conversations, CIOs. But you got to believe that the the conversations are more focused today. Is that a good thing or a jury's still out? >>No, it absolutely is a good thing. And I think one of the things that you have to look at is we're getting back to brass tax. We're getting back to that focus around business objectives. So no longer is that hey, who has the coolest tech? And how can we implement that tax? Kind of looking from a tech business? Ah, spectrum, you're now focused squarely is a C i. O. You have to be squarely focused on what are the business objectives that you are teamed up for, and if you're not, you're on a very short leash and that doesn't end well. And I think the great thing about the split of HP HP e split and I think you almost have to kind of step back for a second. Let's talk about leadership because leadership plays a very significant role, especially for CIOs that are thinking about long term decisions and strategic partners. I don't think that HP necessarily had the right leadership in place to carry them into that strategic world. I think Antonio really makes a change there. I mean, they made some really poor decisions. Post split. Um, that really didn't bode well for HP. Um, and frankly, I talked a bit about that I know wasn't really popular within HP, but quite frankly, they needed to hear it. And I think that actually has been heard. And I think they are listening to their customers. And one of the big changes is they're getting back into the software business. And when you talk about strategic initiatives, you have to get beyond just the hardware and start moving up the proverbial stack, getting closer to those business initiatives. And that is software. >>Yeah, well, Antonio talked about sort of the insights. I mean, something I've said a lot about borrowed from the very Meeker conversations that that data is plentiful. Something I've always said. Insights aren't. And so you're right. You've seen a couple of acquisitions, you know, Matt bahr They picked up, I think pretty inexpensively. Kind of interesting cause, remember, HP hp had an investment in Horton works, which, of course, is now Cloudera and Blue Data. Ah Kumar Conte's company, you know, kind of focusing on maybe automating data, you know, they talked about Ed centric, cloud enabled, data driven. Nobody's gonna argue with those things. But you're right, Tim. I mean, you're talking more software than kind of jettisons the software business and now sort of have to rebuild it. And then, of course, do this cloud. What do you make of HP ease Cloud play? >>Yeah, well, I >>mean, >>Dave, you the pieces. You were just talking about math bar and blue data, where HP connects it together is, you know, ai ops. So you know, where are we going with infrastructure? There needs to be a lot more automation. We heard a great quote. I love from automation anywhere. Dave was, if you talk about digital transformation without automation, it's hallucination. So, you know, HP baking that into what they're doing. So, you know, I fully agree with Tim software software software, you know, is where the innovation is. So it can't just be the infrastructure. How do you have eyes and books into the applications? How are you helping customers build those new pieces? And what's the other software that you build around that? So, you know, absolutely. It's an interesting piece. And you know, HP has got a lot of interesting pieces. You know, you talk about the edge. Aruba is a great asset for that kind of environment and from a partnership, that is a damn point. Dave. They have. John Chambers was in the keynote. John, of course. Long time partners. He's with Cisco for many years Intel. Cisco started eating with HP on the server business, but now he's also the chairman of pensando. HP is an investor in pensando general availability this month of that solution, and that's going to really help build out that next generation edge. So, you know, a chip set that HP E can offer similar to what we see how Amazon builds outpost s. So that is a solution both for the enterprise and beyond. Is as a B >>yeah course. Do. Of course, it's kind of, but about three com toe. Add more fuel to that tension. Go ahead, Tim. >>Well, I was going to pick apart some of those pieces because you know, at edge is not an edge is not an edge. And I think it's important to highlight some of the advantages that HP is bringing to the table where Pensando comes in, where Aruba comes in and also we're really comes in. I think there are a number of these components that I want to make sure that we don't necessarily gloss over that are really key for HP in terms of the future. And that is when you step back and you look at how customers are gonna have to consume services, how they're going to have to engage with both the edge and the cloud and everything in between. HP has a great portfolio of hardware. What they haven't necessarily had was the glue, that connective tissue to bring all of that together. And I think that's where things like Green Lake and Green Lake Central really gonna play a role. And even their, um, newer cloud services are going to play a role. And unlike outposts and unlike some of the other private cloud services that are on the market today, they're looking to extend a cloud like experience all the way to the edge and that continuity creating that simplicity is going to be key for enterprises. And I think that's something that shouldn't be understated. It's gonna be really important because when I look at in the conversations I'm having when we're looking at edge to cloud and everything in between. Oh my gosh, that's really complicated. And you have to figure out how to simplify that. And the only way you're going to do that is if you take it up a layer and start thinking about management tools. You start thinking about autumn, and as companies start to take data from the edge, they start analyzing it at the edge and intermediate points on the way to cloud. It's going to be even more important to bring continuity across this entire spectrum. And so that's one of the things that I'm really excited about that I'm hearing from Antonio's keynote and others. Ah, here at HP Discover. >>Yeah, >>well, let's let's stay on that stupid. Let's stay on that for a second. >>Yeah, I wanted to see oh interested him because, you know, it's funny. You think back. You know, HP at one point in time was a leader in, you know, management solutions. You know, HP one view, you know, in the early days, it was really well respected. I think what I'm hearing from you, I think about outpost is Amazon hasn't really put management for the edge. All they're doing is extending the cloud piece and putting a piece out of the edge. It feels like we need a management solution that built from the ground up for this kind of solution. And do I hear you right? You believe that to be as some of those pieces today? >>Well, let's compare and contrast briefly on that. I think Amazon and the way Amazon is well, is Google and Microsoft, for that matter. The way that they are encompassing the edge into their portfolio is interesting, but it's an extension of their core business, their core public cloud services business. Most of the enterprise footprint is not in public cloud. It's at the other end of that spectrum, and so being able to take not just what's happening at the edge. But what about in your corporate data center in your corporate data center? You still have to manage that, and that doesn't fall under the purview of Cloud. And so that's why I'm looking at HP is a way to create that connective tissue between what companies are doing within the corporate data center today, what they're doing at the edge as well as what they're doing, maybe in private cloud and an extension public cloud. But let's also remember something else. Most of these enterprises, they're also in a multi cloud environment, so they're touching into different public cloud providers for different services. And so now you talk about how do I manage this across the spectrum of edge to cloud. But then, across different public cloud providers, things get really complicated really fast. And I think the hints of what I'm seeing in software and the new software branding give me a moment of pause to say, Wait a second. Is HP really gonna head down that path? And if so, that's great because it is of high demand in the enterprise. >>Well, let's talk about that some more because I think this really is the big opportunity and we're potentially innovation is. So my question is how much of Green Lake and Green Lake services are really designed for sort of on Prem to make that edge to on Prem? No, I want to ask about Cloud, how much of that is actually delivering Cloud Native Services on AWS on Google on Azure and Ali Cloud etcetera versus kind of creating a cloud like experience for on Prem in it and eventually the edge. I'm not clear on that. You guys have insight on how much effort is going into that cloud. Native components in the public cloud. >>Well, I would say that the first thing is you have to go back to the applications to truly get that cloud native experience. I think HP is putting the components together to a prize. This to be able to capitalize on that cloud like experience with cloud native APS. But the vast majority of enterprise app they're not cloud native. And so I think the way that I'm interpreting Green Lake and I think there are a lot of questions Greenland and how it's consumed by enterprises there. There was some initial questions around the branding when it first came out. Um, and so you know it's not perfect. I think HP definitely have some work to do to clarify what it is and what it isn't in a way that enterprises can understand. But from what I'm seeing, it looks to be creating and a cloud like experience for enterprises from edge to cloud, but also providing the components so that if you do have applications that are shovel ready for cloud or our cloud native, you can embrace Public Cloud as well as private cloud and pull them under the Green Lake >>Rela. Yeah, ostensibly stew kubernetes is part of the answer to that, although you know, as we've talked about, Kubernetes is necessary containers and necessary but not sufficient for that experience. And I guess the point I'm getting to is, you know we do. We've talked about this with Red Hat, certainly with VM Ware and others the opportunity to have that experience across clouds at the Edge on Prim. That's expensive from an R and D standpoint. And so I want to kind of bring that into the discussion. HP last year spent about 1.8 billion in R and D Sounds like a lot of money. It's about 6% of its of it's revenues, but it's it's spread thin now. It does are indeed through investments, for instance, like Pensando or other acquisitions. But in terms of organic R and D, you know, it's it's it's not at the top of the heap. I mean, obviously guys like Amazon and Google have surpassed them. I've written about this with regard to IBM because they, like HP, spend a lot on dividends on share buybacks, which they have to do to prop up the stock price and placate Wall Street. But it But it detracts from their ability to fund R and d student your take on that sort of innovation roadmap for the next decade. >>Yeah, I mean, one of the things we look at it in the last year or so there's been what we were talking about earlier, that management across these environments and kubernetes is a piece of it. So, you know, Google laid down and those you've got Microsoft with Azure, our VM ware with EMS. Ooh! And to Tim's point, you know, it feels like Green Lake fits kind of in that category, but there's there's pieces that fall outside of it. So, you know, when I first thought of Green Lake, it was Oh, well, I've got a private cloud stack like an azure stack is one of the solutions that they have there. How does that tie into that full solution? So extending that out, moving that brand I do here, you know good things from the field, the partners and customers. Green Lake is well respected, and it feels like that is, that is a big growth. So it's HB 50 from being more thought of, as you know, a box seller to more of that solution in subscription model. Green Lake is a vehicle for that. And as you pointed out, you know, rightfully so. Software so important. And I feel when that thing I'd say HPI ee feels toe have more embracing of software than, say, they're closest competitors. Which is Dell, which, you know, Dell Statement is always to be the leading infrastructure writer, and the arm of VM Ware is their software. So, you know, just Dell alone without VM ware, HP has to be that full solution of what Dell and VM ware together. >>Yeah, and VM Ware Is that the crown jewel? And of course, HP doesn't have a VM ware, but it does have over 8000 software engineers. Now I want to ask you about open source. I mean, I would hope that they're allocating a large portion of those software engineers. The open source development developing tooling at the edge, developing tooling from multi cloud certainly building hooks in from their hardware. But is HP Tim doing enough in open source? >>Well, I don't want to get on the open source bandwagon, and I don't necessarily want to jump off it. I think the important thing here is that there are places where open source makes sense in places where it doesn't, um, and you have to look at each particular scenario and really kind of ask yourself, does it make sense to address it here? I mean, it's a way to to engage your developers and engage your customers in a different mode. What I see from HP E is more of a focus around trying to determine where can we provide the greatest value for our customers, which, frankly, is where their focus should be, whether that shows up in open source for software, whether that shows up in commercial products. Um, we'll see how that plays out. But I think the one thing that I give HP e props on one of several things I would say is that they are kind of getting back to their roots and saying, Look, we're an infrastructure company, that is what we do really well We're not trying to be everything to everyone. And so let's try and figure out what are customers asking for? How do we step through that? I think this is actually one of the challenges that Antonio's predecessors had was that they tried to do jump into all the different areas, you know, cloud software. And they were really X over, extending themselves in ways that they probably should. But they were doing it in ways that really didn't speak to their four, and they weren't connecting those dots. They weren't connecting that that connective tissue they needed to dio. So I do think that, you know, whether it's open source or commercial software, we'll see how that plays out. Um, but I'm glad to see that they are stepping back and saying Okay, let's be mindful about how we ease into this >>well, so the reason I bring up open source is because I think it's the mainspring of innovation in the industry on that, but of course it's very tough to make money, but we've talked a lot about H B's strength since breath is, we haven't talked much about servers, but they're strong in servers. That's fine We don't need to spend time there. It's culture. It seems to be getting back to some of its roots. We've touched on some of its its weaknesses and maybe gaps. But I want to talk about the opportunities, and there's a huge opportunity to the edge. David Flores quantified. He says that Tam is four. Trillion is enormous, but here's my question is the edge Right now we're seeing from companies like HP and Dell. Is there largely taking Intel based servers, kind of making a new form factor and putting them out on the edge? Is that the right approach? Will there be an emergence of alternative processors? Whether it's our maybe, maybe there's some NVIDIA in there and just a whole new architecture for the edge to authority. Throw it out to you first, get Tim Scott thoughts. >>Yeah, So what? One thing, Dave, You know, HP does have a long history of partnering with a lot of those solutions. So you see NVIDIA up on stage when you think about Moonshot and the machine and some of the other platforms that they felt they've looked at alternative options. So, you know, I know from Wicky Bon standpoint, you know, David Foyer wrote the piece. That arm is a huge opportunity at the edge there. And you would think that HP would be one of the companies that would be fast to embrace that >>Well, that's why I might like like Moonshot. I think that was probably ahead of its time. But the whole notion of you know, a very slim form factor that can pop in and pop out. You know, different alternative processor architecture is very efficient, potentially at the edge. Maybe that's got got potential. But do you have any thoughts on this? I mean, I know it's kind of Yeah, any hardware is, but, >>well, it is a little hardware, but I think you have to come back to the applicability of it. I mean, if you're taking a slim down ruggedized server and trying Teoh essentially take out, take off all the fancy pieces and just get to the core of it and call that your edge. I think you've missed a huge opportunity beyond that. So what happens with the processing that might be in camera or in a robot or in an inch device? These are custom silicon custom processors custom demand that you can't pull back to a server for everything you have to be able to to extend it even further. And, you know, if I compare and contrast for a minute, I think some of the vendors that are looking at Hey, our definition of edge is a laptop or it is this smaller form factor server. I think they're incredibly limiting themselves. I think there is a great opportunity beyond that, and we'll see more of those kind of crop up, because the reality is the applicability of how Edge gets used is we do data collection and data analysis in the device at the device. So whether it's a camera, whether it's ah, robot, there's processing that happens within that device. Now some of that might come back to an intermediate area, and that intermediate area might be one of these smaller form factor devices, like a server for a demo. But it might not be. It might be a custom type of device that's needed in a remote location, and then from there you might get back to that smaller form factor. Do you have all of these stages and data and processing is getting done at each of these stages as more and more resources are made available. Because there are things around AI and ML that you could only do in cloud, you would not be able to do even in a smaller form factor at the edge. But there are some that you can do with the edge and you need to do at the edge, either for latency reasons or just response time. And so that's important to understand the applicability of this. It's not just a simple is saying, Hey, you know, we've got this edge to cloud portfolio and it's great and we've got the smaller servers. You have to kind of change the vernacular a little bit and look at the applicability of it and what people are actually doing >>with. I think those are great points. I think you're 100% right on. You are going to be doing AI influencing at the edge. The data of a lot of data is going to stay at the edge and I personally think and again David Floor is written about this, that it's going to require different architectures. It's not going to be the data center products thrown over to the edge or shrunk down. As you're saying, That's maybe not the right approach, but something that's very efficient, very low cost of when you think about autonomous vehicles. They could have, you know, quote unquote servers in there. They certainly have compute in there. That could be, you know, 2344 $5000 worth of value. And I think that's an opportunity. I'd love to see HP Dell, others really invest in R and D, and this is a new architecture and build that out really infuse ai at the edge. Last last question, guys, we're running out of time. One of the things I'll start with you. Still what things you're gonna watch for HP as indicators of success of innovation in the coming decade. As we said last decade, kind of painful for HP and HP. You know, this decade holds a lot of promise. One of the things you're gonna be watching in terms of success indicators. >>So it's something we talked about earlier is how are they helping customers build new things, So a ws always focuses on builders. Microsoft talks a lot. I've heard somethin double last year's talk about building those new applications. So you know infrastructure is only there for the data, and the applications live on top of it. And if you mention Dave, there's a number of these acquisitions. HP has moved up the stack. Some eso those proof points on new ways of doing business. New ways of building new applications are what I'm looking for from HP, and it's robust ecosystem. >>Tim. Yeah, yeah, and I would just pick you back right on. What's do was saying is that this is a, you know, going back to the Moonshot goals. I mean, it's about as far away as HP ease, and HP is routes used to be and that that hardware space. But it's really changing business outcomes, changing business experiences and experiences for the customers of their customers. And so is far cord that that eight p e can get. I wouldn't expect them to get all the way there, although in conversations I am having with HP and with others that it seems like they are thinking about that. But they have to start moving in that direction. And that's actually something that when you start with the builder conversation like Microsoft has had, an Amazon has had Google's had and even Dell, to some degree has had. I think you missed the bigger picture, so I'm not saying exclude the builder conversation. But you have to put it in the right context because otherwise you get into this siloed mentality of right. We have solved one problem, one unique problem, and built this one unique solution. And we've got bigger issues to be able to address as enterprises, and that's going to involve a lot of different moving parts. And you need to know if you're a builder, you've it or even ah ah, hardware manufacturer. You've got to figure out, How does your piece fit into that bigger picture and you've got to connect those dots very, very quickly. And that's one of the things I'll be looking for. HP as well is how they take this new software initiative and really carry it forward. I'm really encouraged by what I'm seeing. But of course the future could hold something completely different. We thought 2020 would look very different six months ago or a year ago than it does today. >>Well, I wanna I want to pick up on that, I think I would add, and I agree with you. I'm really gonna be looking for innovation. Can h P e e get back to kind of its roots? Remember, H B's router invents it was in the logo. I can't translate its R and D into innovation. To me, it's all about innovation. And I think you know cios like Antonio Neri, Michael Dell, Arvind Krishna. They got a They have a tough, tough position because they're on the one hand, they're throwing off cash, and they can continue Teoh to bump along and, you know, placate Wall Street, give back dividends and share buybacks. And and that's fine. And everybody would be kind of happy. But I'll point out that Amazon in 2007 spent spend less than a $1,000,000,000 in R and D. Google spent about the back, then about the same amount of each B E spends today. So the point is, if the edge is really such a huge opportunity, this $4 trillion tam is David Foyer points out, there's a There's a way in which some of these infrastructure companies could actually pull a kind of mini Microsoft and reinvent themselves in a way that could lead to massive shareholder returns. But it was really will take bold vision and a brave leader to actually make that happen. So that's one of things I'm gonna be watching very closely hp invent turn r and D into dollars. And so you guys really appreciate you coming on the Cube and breaking down the segment for ah, the future of HP be well, and, uh and thanks very much. Alright. And thank you for watching everybody. This is Dave Volante for Tim Crawford and Stupid men. Our coverage of HP ease 2020 Virtual experience. We'll be right back right after this short break. >>Yeah, yeah, yeah, yeah.

(upbeat tech music) >> Announcer: From London, England it's theCUBE, covering Coupa Insp!re 19 Emea. Brought to you by Coupa. >> Hey, welcome to theCUBE, Lisa Martin on the ground in London at Coupa Insp!re 19. Very pleased to welcome back to theCUBE the CEO and Chairman of Coupa, Rob Bernshteyn. Rob, welcome back. >> Thank you so much, thank you for being with me. >> It's great to be here, so we are in with all of these customers and partners, this has been busy all day. You started things off today with a great keynote. I was telling you before we went live, I lost count of how many big customer examples were sprinkled, and I think infused throughout your keynote. I was looking at some numbers, Coupa just keeps doing this. 5x increase in spend under management since 2016, that's only three years. You guys have thousands of customers, five million suppliers on the platform, lot of growth. What are some of the key drivers to this great growth that you're seeing? Well a couple of things, I mean first of all, this is a huge total addressable market. Every company in the world could do a better job of the way they manage their business spending, and they could use information technology, hopefully from Coupa to help make that happen, and we are so proud to cultivate this community of like minded, thoughtful professionals that want to apply best practices, best in-class modern technology solutions like the ones we offer obviously, to drive quantifiable, measurable, outcomes for the companies that they work for. So in many ways, this is a celebration of our customer community and it's a wonderful opportunity to be with our customers here like this every year in Europe and every year in the United States, and now frankly in lots of other places around the world. >> So one of the themes that was also expressed during the keynote was Rachel Botsman's theme of trust and I think about the open community, the open platform and the community that Coupa is building, there's a lot of earned trust there that Coupa has earned from this growing community. Talk to me about what that means to you and the whole team and how it's influencing the direction that Coupa is going in. >> It means a lot to me personally frankly. The O in Coupa stands for Open, and that means not only technically open in terms of APIs and integrations, but it means open in spirit, open in dialogue, honest, transparent communications. I feel that our industry in enterprise software has a legacy or a history of a lot of PowerPoints, and a lot of demos, but frankly, quite a few failures of large scale deployments and a whole host of sectors. And we want to be part of the solution, we want to have an open, authentic, honest communication with our customers, with our prospective customers in the sales process, with our partners, with all of my Coupa colleagues, so we can avoid the friction and nonsense of politics that often gets in the way of driving measurable, meaningful value for every constituent. It's a very, very important thing to me, it's important to my team, and that's something we're doing our very best to cultivate in this Coupa community that we're creating. >> Speaking of cultivation, Coupa is cultivating this category of Business Spend Management. Tell us a little bit more about that and where you are with that. >> Sure, Business Spend Management is a pretty straightforward three words to describe the fact that our buyers and our customers are responsible for literally trillions of dollars and pounds and dollars and euros of spend all over the world. And as information becomes more and more transparent, the buyer, the one who's repsonsible for that spend becomes more and more powerful. So we sit on the side of that buyer, we give them information technology solutions from sourcing, to inventory management, to spend analytics, to procurement, to expensing, to invoicing, to payments, to supplier performance. All the capabilities needed to help them make the best purchasing decisions for their organizations, and help their companies become more profitable so that every one of these Coupa community customers we have here could get more bang for their buck and be that much more operationally efficient frankly in driving their own company's visions and missions and whatever it is that they bring to the world. And that's very aspirational for us and we're excited that so many have come on board with this establishment of the Business Spend Management category with us. >> So if we look at the PIPE, as you were calling it this morning, P-I-P-E, procure, invoice, pay, expense, I memorized that, you've got this one platform that can deliver all of that to this growing community of users who have the ability to get that visibility. That is one of the biggest challenges, I was reading some stats recently about the number of businesses, they were the percentages of businesses that don't have complete visibility over their spend, it's high. >> It's very high, we just did a study of 250 or so CFOs in the UK, and they're doing a great job at budgeting and reporting, but they have minimal visibility into their supply relationships, especially with what's happening here with Brexit. They have minimal visibility in supply risks, supply chain risks, and one of the ingredients that I think we're very special at and I'm proud of is the U in Coupa, the user centricity. In order to have visibility into your spend, you have to have adoption, you have to have people purchasing, spending, expensing, paying, processing invoices, everything that you just mentioned through this pipe on one centralized platform with a common UI layer, User Experience layer or User Interface, common business logic layer, common data model, use of community intelligence to help you make the best purchasing decisions, spend decisions. So we're really on the forefront of something very, very exciting because this adoption level is happening through this user centricity, and it's given these companies control and visibility of spend, and what could be more important to driving profitability, sustained business development? I think we're in a very unique position to help these customers. >> So is one of the biggest challenges for those, think it was 96% of those UK financial decision makers that you guys surveyed said, "We don't have complete visibility." Is it because they have legacy siloed solutions that don't give them that common layer? Or is it because maybe that and a mixture of users just not adopting it because it's not as intuitive to use? >> It's a number of things. First of all, for every process, whether it's procurement, expenses, invoicing, or payments, they have seperate systems to your point. Some cases, they don't even have systems. They're calling in orders, they're handling paper invoices, so there are different levels of maturity in each of those four areas. So one is getting them on to a common platform where all of those are orchestrating together. Secondarily, there's an opportunity to create synergy between those areas, so a lot of things that are getting expensed really should be preapproved and should be routed toward preferential pricing that procurement can negotiate on behalf of the user. Many times invoices are duplicate coming in from suppliers and AP departments are so excited that they pay quickly, but they're not necessarily sure whether they received the goods and services that the invoice is for. So having one common platform, that's the C in Coupa, Comprehensive. One common comprehensive platform for all these business processes is critical, leveraging the synergy of all them working together is critical, and getting that widespread user adoption is part of the secret formula here. >> Let's talk about the community. It's big, it's growing, 1.3 trillion in spend managed, and I watched our video back that you and I did a few months ago, it was 1.2. So that was four months ago, and you showed a bar chart today of just the last 12 months, had to look up this way to see that, so this community that has the ability to help derive and leverage the insights, talk to me about the insights and being able to help businesses go from reactive to predictive as a game changer for Coupa. >> Sure, it's a huge game changer and we really aspire to be, if you will, the tail that wags the dog in the enterprise software industry overall because the enterprise software industry, in effect, every customer is on their own island using information technology for a certain business process. What we've done with community intelligence is we've aggregated, anonymized, and sanitized data from the customer base and then are distilling insights that we could be prescriptive about. So we could tell our customers and we're telling them, "Hey, our community is having challenges with such "and such supplier based on literally perhaps millions "of dollars and millions of pounds in transactional spend. "We recommend you consider this supplier in "that same category because our community is having "great success with them. "The products are being shipped on time, "there's no war over invoicing, there's no breakage in "what's delivered." Those are just some examples, we're helping them think through commodities. A lot of our customers forgiven commodity, they have 20, 30 different suppliers. We're helping them think through in their industry. How can they do supply consolidation that makes sense based on benchmarking across the entire industry? We're helping them avoid supplier risk, we're helping them avoid fraud, we're identifying employees that may be expensing things or doing things that are fraudulent based on the collective intelligence of what we're seeing around the entire world in real time and we're prescribing actions to be taken before payments go out. So these are just some examples of what we're doing, we're doing things in benchmarking based on community intelligence, we're really just at the tip of the sphere of what's possible and we've prescribed tens of thousands of prescriptions in our platform to our customers. Many of them are taking those prescriptions and are making their businesses more operationally fit, and more agile, which is something we're very, very proud of. >> Speaking of those prescriptions, I think the number you shared this morning was 22,000 prescriptions delivered in one year? >> In the last 12 months, that's right. >> So we've got to talk about acceleration 'cause we've talked about the COUP, the acceleration, that is one example of that. I also saw that you guys have gotten, customers are doing approvals 30% faster than they were a year ago. You're getting mid-market customers up and running in four months, large enterprises up in eight months, talk to me about that acceleration that you guys are achieving. >> Absolutely, the A in Coupa is about Accelerated, it's about learning from our entire customer base and taking those learnings and making them part of best practices-based appointments so we could go faster and faster and faster. We look at retail customer, we've done dozens of retail customers, large and small. We know how to set up catalogs, we know how to set up workflow, we know how to think through the analytics that they need. So when they get going with the deployment from Coupa, they can get up and running way faster than with going back to five or six years ago where you have to think about it from scratch and a blueprint. They could leverage the insight from the community with doing that in mid-market, with doing that in subverticals like credit unions, for example. Biotechs, we're doing it in insurance, we're doing it in pharma, all hosts of industries, and I think as we learn from every deployment and collect those insights, we're going to be able to drive value faster and faster to our customers. And the other element that's important here is it's not just taking the customer live, all of our customers grow with us. They get more and more value every year, this is why our renewal rate is so strong and customers add more business with us because they're getting value and that value continues to grow, and that's really what value as a service is about. We're not a software company, and we're not a software as a service company. We're truly a value as a service company, which is a very different concept and one that we're cultivating in this marketplace. >> What are some of your favorite, I know you love being in front of the customers, what are some of your favorite examples that really show the value that Coupa is delivering to the changing role of procurement, making that girl or guy much more strategic and much more of a partner to the business? >> Sure, I shared some examples this morning that I really loved and appreciated celebrating some of our trendsetters, or what we call spendsetters. You look at Zalando, our retailer where they weren't necessarily going to take them so seriously about savings, but when they went to marketing and said, "We can give you much more bang "for your marketing budget "so you could reach more potential consumers," well of course they embraced that. And we gave them a usable opportunity, a usable platform for doing that as similar Zalando, they engaged. Now they have something like 85% spender management. When we started working with them, they had zero purchase orders, everything was the wild west. You look at, I was just speaking to one of our customers at Procter & Gamble just five minutes ago here at the expo. They've run more than 50 billion pounds of spend through the Coupa platform, 50 billion. That's not easy, but they've done that in just a couple of years with us, and not only did they have visibility spent, but they're saving, they're routing purchases to preferred suppliers, so the list just goes on and on and on our website, at Coupa.com on the Customers tab, you'll see obviously dozens of customers holding up signs of the real measurable value they're getting from working with us and that's something that we really take a lot of pride in. >> That speaks for itself. Last question for you Rob, talk to me about those strategic partnerships that Coupa has. I know some news coming out today with what you guys are doing with American Express. >> Sure, we've entered the payment space and we entered it because our customer community asked us for it. They said, "Look, if we're procuring goods "and services through you, why wouldn't we all, "and we're doing invoice and we're doing all "of the components of the pipe, "why wouldn't we also go deeper into payments, help us pay." Because many now have to log in to all these different ERP systems and kick off batch process, so we went into payments. And in payments, we have a host of partnerships. Now, today we announced the relationship with American Express in the UK and Australia for virtual credit card payments. Now it's very simple in Coupa, someone needs a good or service, it gets routed through workflow for approval. Once approved, a dynamic credit card number is generated by American Express, the individual makes the purchase, and all the reconciliation, the back-end is handled by Coupa. All the reporting, the visibility, the insights to price points and category assessments are there and visible and the company's in a position to fine tune their spend profile. So that's just one example, and we're doing things in dynamic discounting and accelerating payments. We've just launched today in general availability and Robby will be discussing it tomorrow ahead of business acceleration. We launched our batch payments capability, the ability to do invoice payments in batch along any rail, whether it be banking relationships, whether it be eCheck, whether it be credit card, going into one environment and kicking off batch payments without having to wait for all these different ERP systems to take hold. So we're really at the, in my mind, at the very beginning of addressing a huge market opportunity, we're proud of what we've achieved so far. I'm particularly proud of the customer community developing around us, and we're excited about the days, weeks, months, quarters, and years to come. >> So you talked about, last question, the big TAM, in this total adjustable market. What are some of the core elements to Coupa's path to a billion in revenue? >> We're not as exciting to many investors as a hot startup that grows really quickly and maybe has some sort of viral component to it. We've been at this for over 10 years, we've grown thoughtfully, we've grown carefully. The growth is fast 30, 40 plus percent, but it's thoughtful and careful, it's one customer at a time. We're careful in how much we spend on sales and marketing, especially want customers to choose us rather than us hard-selling them on everything, we want the offering to sell itself. We have an ecosystem of systems integrators, now more than 3,000, Centric, APMG, Deloitte, and others that are certified on deploying Coupa. We're expanding our product footprint, our customers now use on average 4.7 applications from us and they're consuming those applications rather than us pushing them on them. We're expanding globally, we're expanding in terms of the enterprise business and the mid-market business. Our mid-market business is now really at scale and scaling beautifully, it's a beautiful business model. So those are just some of the vectors in which we'll continue to expand, but I think the path to $1 billion for us is very clear, and ultimately comes down to execution, delivering for every customer, making sure they're getting value from working with us year in and year out, and I think before you know it, we'll be on the doorstep of that $1 billion. >> Excellent. Rob, it's been a pleasure having you back on theCUBE. Thank you for having theCUBE out here in London, we appreciate your time. >> Thank you. >> For Rob Bernshteyn, I am Lisa Martin, you're watching theCUBE from Coupa Insp!re 19. Thanks for watching. (upbeat tech music)

>> Live from San Francisco, California, it's theCUBE covering the IBM Chief Data Officer Summit. Brought to you by IBM. >> Hi everybody, welcome back to theCUBE's coverage of the IBM Chief Data Officer Event. We're here at Fisherman's Wharf in San Francisco at the Centric Hyatt Hotel. This is the 10th anniversary of IBM's Chief Data Officer Summits. In the recent years, anyway, they do one in San Francisco and one in Boston each year, and theCUBE has covered a number of them. I think this is our eighth CDO conference. I'm Dave Vellante, and theCUBE, we like to go out, especially to events like this that are intimate, there's about 140 chief data officers here. We've had the chief data officer from AstraZeneca on, even though he doesn't take that title. We've got a panel coming up later on in the day. And I want to talk about the evolution of that role. The chief data officer emerged out of kind of a wonky, back-office role. It was all about 10, 12 years ago, data quality, master data management, governance, compliance. And as the whole big data meme came into focus and people were realizing that data is the new source of competitive advantage, that data was going to be a source of innovation, what happened was that role emerged, that CDO, chief data officer role, emerged out of the back office and came right to the front and center. And the chief data officer really started to better understand and help companies understand how to monetize the data. Now monetization of data could mean more revenue. It could mean cutting costs. It could mean lowering risk. It could mean, in a hospital situation, saving lives, sort of broad definition of monetization. But it was really understanding how data contributed to value, and then finding ways to operationalize that to speed up time to value, to lower cost, to lower risk. And that required a lot of things. It required new skill sets, new training. It required a partnership with the lines of business. It required new technologies like artificial intelligence, which have just only recently come into a point where it's gone mainstream. Of course, when I started in the business several years ago, AI was the hot topic, but you didn't have the compute power. You didn't have the data, you didn't have the cloud. So we see the new innovation engine, not as Moore's Law, the doubling of transistors every 18 months, doubling of performance. Really no, we see the new innovation cocktail as data as the substrate, applying machine intelligence to that data, and then scaling it with the cloud. And through that cloud model, being able to attract startups and innovation. I come back to the chief data officer here, and IBM Chief Data Officer Summit, that's really where the chief data officer comes in. Now, the role in the organization is fuzzy. If you ask people what's a chief data officer, you'll get 20 different answers. Many answers are focused on compliance, particularly in what emerged, again, in those regulated industries: financial service, healthcare, and government. Those are the first to have chief data officers. But now CDOs have gone mainstream. So what we're seeing here from IBM is the broadening of that role and that definition and those responsibilities. Confusing things is the chief digital officer or the chief analytics officer. Those are roles that have also emerged, so there's a lot of overlap and a lot of fuzziness. To whom should the chief data officer report? Many say it should not be the CIO. Many say they should be peers. Many say the CIO's responsibility is similar to the chief data officer, getting value out of data, although I would argue that's never really been the case. The role of the CIO has largely been to make sure that the technology infrastructure works and that applications are delivered with high availability, with great performance, and are able to be developed in an agile manner. That's sort of a more recent sort of phenomenon that's come forth. And the chief digital officer is really around the company's face. What does that company's brand look like? What does that company's go-to-market look like? What does the customer see? Whereas the chief data officer's really been around the data strategy, what the sort of framework should be around compliance and governance, and, again, monetization. Not that they're responsible for the monetization, but they responsible for setting that framework and then communicating it across the company, accelerating the skill sets and the training of existing staff and complementing with new staff and really driving that framework throughout the organization in partnership with the chief digital officer, the chief analytics officer, and the chief information officer. That's how I see it anyway. Martin Schroeder, the senior vice president of IBM, came on today with Inderpal Bhandari, who is the chief data officer of IBM, the global chief data officer. Martin Schroeder used to be the CFO at IBM. He talked a lot, kind of borrowing from Ginni Rometty's themes in previous conferences, chapter one of digital which he called random acts of digital, and chapter two is how to take this mainstream. IBM makes a big deal out of the fact that it doesn't appropriate your data, particularly your personal data, to sell ads. IBM's obviously in the B2B business, so that's IBM's little back-ended shot at Google and Facebook and Amazon who obviously appropriate our data to sell ads or sell goods. IBM doesn't do that. I'm interested in IBM's opinion on big tech. There's a lot of conversations now. Elizabeth Warren wants to break up big tech. IBM was under the watchful eye of the DOJ 25 years ago, 30 years ago. IBM essentially had a monopoly in the business, and the DOJ wanted to make sure that IBM wasn't using that monopoly to hurt consumers and competitors. Now what IBM did, the DOJ ruled that IBM had to separate its applications business, actually couldn't be in the applications business. Another ruling was that they had to publish the interfaces to IBM mainframes so that competitors could actually build plug-compatible products. That was the world back then. It was all about peripherals plugging into mainframes and sort of applications being developed. So the DOJ took away IBM's power. Fast forward 30 years, now we're hearing Google, Amazon, and Facebook coming under fire from politicians. Should they break up those companies? Now those companies are probably the three leaders in AI. IBM might debate that. I think generally, at theCUBE and SiliconANGLE, we believe that those three companies are leading the charge in AI, along with China Inc: Alibaba, Tencent, Baidu, et cetera, and the Chinese government. So here's the question. What would happen if you broke up big tech? I would surmise that if you break up big tech, those little techs that you break up, Amazon Web Services, WhatsApp, Instagram, those little techs would get bigger. Now, however, the government is implying that it wants to break those up because those entities have access to our data. Google's got access to all the search data. If you start splitting them up, that'll make it harder for them to leverage that data. I would argue those small techs would get bigger, number one. Number two, I would argue if you're worried about China, which clearly you're seeing President Trump is worried about China, placing tariffs on China, playing hardball with China, which is not necessarily a bad thing. In fact, I think it's a good thing because China has been accused, and we all know, of taking IP, stealing IP essentially, and really not putting in those IP protections. So, okay, playing hardball to try to get a quid pro quo on IP protections is a good thing. Not good for trade long term. I'd like to see those trade barriers go away, but if it's a negotiation tactic, okay. I can live with it. However, going after the three AI leaders, Amazon, Facebook, and Google, and trying to take them down or break them up, actually, if you're a nationalist, could be a bad thing. Why would you want to handcuff the AI leaders? Third point is unless they're breaking the law. So I think that should be the decision point. Are those three companies, and others, using monopoly power to thwart competition? I would argue that Microsoft actually did use its monopoly power back in the '80s and '90s, in particular in the '90s, when it put Netscape out of business, it put Lotus out of business, it put WordPerfect out of business, it put Novell out of the business. Now, maybe those are strong words, but in fact, Microsoft's bundling, its pricing practices, caught those companies off guard. Remember, Jim Barksdale, the CEO of Netscape, said we don't need the browser. He was wrong. Microsoft killed Netscape by bundling Internet Explorer into its operating system. So the DOJ stepped in, some would argue too late, and put handcuffs on Microsoft so they couldn't use that monopoly power. And I would argue that you saw from that two things. One, granted, Microsoft was overly focused on Windows. That was kind of their raison d'etre, and they missed a lot of other opportunities. But the DOJ definitely slowed them down, and I think appropriately. And if out of that myopic focus on Windows, and to a certain extent, the Department of Justice and the government, the FTC as well, you saw the emergence of internet companies. Now, Microsoft did a major pivot to the internet. They didn't do a major pivot to the cloud until Satya Nadella came in, and now Microsoft is one of those other big tech companies that is under the watchful eye. But I think Microsoft went through that and perhaps learned its lesson. We'll see what happens with Facebook, Google, and Amazon. Facebook, in particular, seems to be conflicted right now. Should we take down a video that has somewhat fake news implications or is a deep hack? Or should we just dial down? We saw this recently with Facebook. They dialed down the promotion. So you almost see Facebook trying to have its cake and eat it too, which personally, I don't think that's the right approach. I think Facebook either has to say damn the torpedoes. It's open content, we're going to promote it. Or do the right thing and take those videos down, those fake news videos. It can't have it both ways. So Facebook seems to be somewhat conflicted. They are probably under the most scrutiny now, as well as Google, who's being accused, anyway, certainly we've seen this in the EU, of promoting its own ads over its competitors' ads. So people are going to be watching that. And, of course, Amazon just having too much power. Having too much power is not necessarily an indication of abusing monopoly power, but you know the government is watching. So that bears watching. theCUBE is going to be covering that. We'll be here all day, covering the IBM CDO event. I'm Dave Vallente, you're watching theCUBE. #IBMCDO, DM us or Tweet us @theCUBE. I'm @Dvallente, keep it right there. We'll be right back right after this short break. (upbeat music)

>> Announcer: Live from San Diego, California, it's theCUBE, covering Cisco Live US 2019. Brought to you by Cisco and its ecosystem partners. >> Welcome back to theCUBE's coverage, day two of Cisco Live from San Diego. I'm Lisa Martin with Stu Miniman, and Stu and I are pleased to welcome to theCUBE, Rose Schooler, the Corporate Vice-President of the data center sales at Intel. Rose, welcome to theCUBE. >> It's great to meet you guys. Pleasure to meet you. >> Great to have you here too. Thank you for joining us in the very popular, buzzy DevNet zone. >> It's crazy. The vibe here is really, really good the last couple days. >> It's been amazing, amazing. So you've been at Intel for quite a long time. >> 30 Years. >> 30 years also since Cisco started doing a customer partner event, lot's happened in 30 years. I'd love to understand your role at Intel, and also, as we're here talking about all of these waves in innovation from 5G and Wi-Fi 6 to GPUs everywhere, to Bobol, edge, what are some of the things that you're hearing from customers when it comes to modernizing their data centers? >> That's a great question, in terms of modernization of infrastructure, and there's some really interesting trends that I think are occurring, and I think the one that's getting a lot of buzz is really edge computing. And what we're finding is, depending on the use case, it can be an enterprise application, where you're trying to get localization of your data. It could be an IOT application where it's really critical for latency or bandwidth to keep compute and data close to the thing, if you will, or it could be mobile edge computing where you want to do something like analytics and AI on a video stream before you tax the bandwidth of the cellular infrastructure with that data stream. So across the board, I think edge is super exciting, and you can't talk about edge without, like I said, talking about artificial intelligence. Another big trend whether it's running native, running with an accelerator, an FPGA, I think we're seeing a myriad of use cases in that space. >> Yeah, I'd love to if we could, dig in a little bit to the edge piece, because you're right, it's super exciting there. It's got to be some different requirements for what's happening at the edge as opposed to what's happening at the hyper scales or the service providers or the traditional enterprise. So we've always seen over the years, Intel will make things into the chip. They'll do their magic to make sure it's there. What are the requirements you're hearing from customers that are help driving what the next innovations will come from Intel with the edge? >> So, yeah, let me break it into a couple domains. We'll talk first of all to technology, and then we'll talk about the go to market. Is that okay? >> Perfect. >> From a technology perspective, you've got to look at the environment of which you're deploying the edge. So if you're in the enterprise, your IO is pretty traditional; you're going to use ethernet and that sort of thing. You move over into the cellular space, mobile edge computing, you have different back haul technologies that are leveraged. But what gets super interesting is when you go to IOT, and when you're in IOT, there's a tremendous amount of fragmentation. The IO fragmentation, the protocol fragmentation is pretty pervasive, so one of the big challenges is how do you standardize and really open up the development of those protocols to allow, and what I like to say, is take down the frictionless data. You don't want any impediments to the data getting to the compute where at the compute, you can run your analytics and really start to take data and transition it to business intelligence. So, fragmentation is really an interesting problem statement from a technology perspective, and there are some interesting concepts around how do you use 5G because of the variability and the bandwidth and the different lanes and protocols and SLAs that exist in that multilane highway, if you will, of 5G. I think it presents some interesting technology options to master that fragmentation. From a go to market perspective, you can see a number of situations where we would call them snowflake implementations. You'd build them once, and you'd sell them once. We had people that were very excited about the number of proof of concepts they were doing. Hey, we just implemented and deployed our 150th or 200th proof of concept, and then when you'd get them at dinner at night, I'd say, how much money are ya making? Yeah, it's not really revenue generating. So we found that really pulling together solutioning with our ecosystem partners, and Cisco is a critical partner in this space, we've been able to create solutions that we co-market and co-sell that allow for scale. So we put a program in place, and we're starting to see some really interesting results from that perspective. >> So let's talk about 5G. One of the things that Chuck Robins was talking about yesterday was this expansion in 5G, lot of opportunities, but you're saying that brings challenges to customer environments. How are Intel and Cisco going to help customers start to unlock the value of 5G once that expansion becomes a reality? >> Yeah, I think that's a great question, and we have to look at how we align around standards. How do we align around really creating the initial use cases? I think that's what everybody's big question is, right? What's the $64,000 question with 5G? It's what are our initial use cases beyond LTE offload. Okay, so we have our use case around LTE offload, but one of the areas that we see a lot of excitement around, and I mentioned it earlier, is video. So how can we partner with Cisco? Look at what that implementation looks like, not only on a streetlamp but also in a digital sign. It might be now an interesting Trojan horse, if you will, for a small sale, and what's then that backend implementation look like, and once we understand either the video use case or the public safety and security use case, how do we then create those solutions to really bring the technology to market? And I think that's an excellent opportunity for Intel and Cisco to work together on. >> All right, Rose, let's bring it into your core, the data center group. >> Sure, let's talk about data center. >> The DevNet zone's been really buzzing the whole time, but I tell you the takeover this morning on ACI, really that core networking group is overwhelming me. I practically had people on our set here, because they were all coming to get inside of here. So what's the latest? Any new announcements in the last couple of months or updates for-- >> So, like I've said, I've been at Intel 30 years, and I've been to a lot of launch events, but at the begin of April, we had our first data centric launch. We had seven different product launches. It ranged from the edge to the network to cloud and multicloud, and covered compute to storage and memory to connectivity like ethernet. And it was the most pervasive, exciting launch we've done at least in my 30 years, especially on the data center side. And like I said, we were able to show how the platform ingredients and the center point of that was obviously Intel's scale Xeon, second generation of Xeon scalable architecture. That is the cornerstone, supplementing it with how we process data on that platform, how do we move data with some of our new ethernet technologies, how do we store data with our intel data center, Optane persistent memory, was really kind of an end to end exciting launch event. We had 95 world records that we broke. Yeah, it was really an exciting day, very exciting day. And again, move, process, store. Talking about from a value proposition and customers, how do you really propel insights? Simply said, how do you use workload specific capabilities to create acceleration of business intelligence? And we had announcements around instruction sets, specifically in the CPU for artificial intelligence. As an example, with 14X improvement over a standard CPU by using that in structure, we had how do you create business resiliency with hardware security features that weren't integrating? And really how do you get acceleration of new services around some technologies around hardware and software, combination of the orchestration of those two? So some really great, great announcements; it was fun. >> To say it was meaty sounds like a massive understatement, but tell us a little bit about how customers are reacting? Because one of the status check Robins also talked about yesterday was that less than 1% of data, organizations are getting value out of less than 1% of it, so this data centric launch, super meaty. How is it going to position Intel and your partner ecosystem to help your customers start turning that dial up so that they're actually getting more value out of that data they know is gold but it's dark? >> Yeah, no, I think that's an excellent question, and you can look at IOT use cases like we talked about. In an IOT use case, it's end to end. You have to compute at the edge in the network and then the multicloud. You have to move the data, whether it be wireless or wire line technology, so I think that's a pretty standard answer and approach to that question. But when we also look at trends that we're seeing in the market, and we see things like how much video content is really becoming pervasive and the data challenges that that creates. And you look at technologies like Intel Optane data center persistent memory, and you have a new technology that solves a lot of problems around capacity issues, capacity in an affordable price point. You have a technology that solves problems around persistence. How do I minimize my downtime from minutes to seconds? And what does that mean in terms of value? So we can sit here, and, you know, Intel is really good about talking about features and new instruction sets, but at the end of the day it comes down to how do I make more money, how do I save more money and offer new services that are specific that my customers are asking for on a real time basis? And I think the portfolio of that launch really kind of solidified that value proposition. >> Rose, I was out living on the vendor side when Cisco launched UCS. There were many in the marketplace that said, why is Cisco getting into this business? Compute's kind of played out. They're all pretty much the same. Intel's dominant in that position. Just choose your favorite flavor and it's there. We look at where we are today. There's a lot going on in the compute space. There's Cisco, the rest of your partners and the like. It's going to be a pretty exciting time, so to be working in this. And you've seen some of those ebbs and flows over the years. >> I have, and I think I should start by wishing them a 10 year anniversary. I think it's the 10 year anniversary of UCS. But what's fascinating is the evolution that compute has gone through. I think when we started down the journey together with Cisco on UCS, it was, I'm going to make servers, and that's kind of the playing field for the technology. But when you think about the evolution of storage and software defined storage and you think about the evolution of networking and the transition to network function virtualization, you now have a common platform that can host a myriad of different applications. So to answer your question, the evolution went from I'm going to build a server, and I think their initial position was really strong in blades, which leverages a lot of their existing relationships and customer relationships and has really grown to now I have a compute platform for server storage network. I have the ability to play in multiple spaces, leverage my channel relationships. So I think the transformation has been amazing, and then when you think about how do I take those assets, and leverage them and bring them to the edge that's evolving nothing but opportunity for both Intel and Cisco. >> So here we are, in the middle of Cisco's fourth quarter fiscal 19. They had a very strong FY 18. The quarterly Q3 results that they released just last month, really good, strong growth across infrastructure platforms, applications, security. As we look at this continuing partnership with Cisco and Intel, what are you excited about with all the momentum that you clearly talked about with Intel and Cisco, going into Cisco's fiscal year of 2020? >> Well, I think we both have an awesome opportunity. We have just launched, as I said, the Intel second generation Xeon scalable processors. We are very well-aligned with Cisco on that technology, so what do we need to do? We have that; we have Optane data center persistent memory. So we have a great core set of ingredients, not to mention ethernet and SSDs where our job in 2020, their fiscal year 2020 is to really drive adoption. Work together on co-marketing, work together on co-selling, and since we have such a collective, strong value proposition, I think there's a tremendous opportunity in refresh, new customer accounts, et cetera to really drive mutual growth which is the foundation of the best types of relationships, when we're growing together. >> Awesome, well, Rose it's been a pleasure to have you on the program this afternoon. >> Thank you so much. Your energy and your excitement after being at Intel for 30 years is remarkable! >> (laughs) Still there, it's a great company. >> And it's contagious, so thank you for sharing that with us today. >> Thank you so much for the time. >> Our pleasure. For Stu Miniman, I'm Lisa Martin. You're watching theCUBE live from Cisco Live, San Diego. Thanks for watching. (upbeat techno music)

(upbeat jazz music) >> Woman: From our studio's, in the heart of Silicon Valley Palo Alto California this is a CUBE conversation. >> John: Hello and welcome to this CUBE conversation here, exclusive coverage of Google Next 2019. I'm John Furrier, host of theCUBE. Big Google Cisco news, we're here with KD who's the vice president of the data center for compute for Cisco and Kip Compton, senior vice president of Cloud Platform and Solutions Group. Guys, welcome to this exclusive CUBE conversation. Thanks for spending the time. >> KD: Great to be here. >> So Google Next, obviously, showing the way that enterprises are now quickly moving to the cloud. Not just moving to the cloud, the cloud is part of the plan for the enterprise. Google Cloud clearly coming out with a whole new set of systems, set of software, set of relationships. Google Anthos is the big story, the platform. You guys have had a relationship previously announced with Google, your role in joint an engineering integrations. Talk about the relationship with Cisco and Google. What's the news? What's the big deal here? >> Kip: Yeah, no we're really excited. I mean as you mentioned, we've been working with Google Cloud since 2017 on hybrid and Multicloud Kubernetes technologies. We're really excited about what we're able to announce today, with Google Cloud, around Google Cloud's new Anthos system. And we're gonna be doing a lot of different integrations that really bring a lot of what we've learned through our joint work with them over the last few years, and we think that the degree of integration across our Data Center Portfolio and also our Networking and Security Portfolios, ultimately give customers one of the most secure and flexible Multicloud and hybrid architectures. >> One of the things we're seeing in the market place, I want to get your reactions to this Kip because I think this speaks to what's going on here at Google Next and the industry, is that the company's that actually get on the Cloud wave truly, not just say they're doing Cloud, but ride the wave of the enterprise Cloud, which is here. Multicloud is big conversation. Hybrids and implementation of that. Cloud is big part of it, the data center certainly isn't going away. Seeing a whole new huge wave. You guys have been big behind this at Cisco. You saw what the results are with Microsoft. Their stock has gone from where it was really low to really high because they were committed to the Cloud. How committed is Cisco to this Cloud Wave, what specifically are you guys bringing to the table for Enterprises? >> Oh we're very committed. We see it as the seminal IT transformation of our time, and clearly on of the most important topics in our discussions with CIO's across our customer base. And what we're seeing is, really not as much enterprises moving to the Cloud as much as enterprises extending or expanding into the Cloud. And their on-prem infrastructures, including our data centers as you mentioned, certainly aren't going away, and their really looking to incorporate Cloud into a complete system that enables them to run their business and their looking for agility and speed to deliver new experiences to their employees and to their customers. So we're really excited about that and we think sorta this Multicloud approaches is absolutely critical and its one of the things that Google Cloud and Cisco are aligned on. >> I'd like to get this couple talk tracks. One is the application area of Multicloud and Hybrid but first lets unpack the news of what's going on with Cisco and Google. Obviously Anthos is the new system, essentially its just the Cloud platform but that's what they're calling it, Googles anthem. How is Cisco integrating into this? Cause you guys had great integration points before Containers was a big bet that you guys had made. >> Kip: That's right. >> You certainly have, under the covers we learned at Cisco Live in Barcelona around what's going on with HyperFlex and ACI program ability, DevNet developer program going on. So good stuff going on at Cisco. What does this connect in with Google because ya got containers, you guys have been very full throttle on Kubernetes. Containers, Kubernetes, where does this all fit? How should your customers understand the relationship of how Cisco fits with Google Cloud? What's the integration? >> So let me start with, and backing it with the higher level, right? Philosophically we've been talking about Multicloud for a long time. And Google has a very different and unique view of how Cloud should be architected. They've gone 'round the open source Kubernetes Path. They've embraced Multicloud much more so then we would've expected. That's the underpinning of the relationship. Now you bring to that our deep expertise with serving Enterprise IT and our knowledge of what Enterprise IT really needs to productize some of these innovations that are born elsewhere. You get those two ingredients together and you have a powerful solution that democratizes some of the innovations that's born in the Cloud or born elsewhere. So what we've done here with Anthos, with Google HyperFlex, oh with Cisco's HyperFlex, with our Security Portfolio, our Networking Portfolio is created a mechanism for Enterprise ID to serve their constituent developers who are wanting to embrace Containers, readily packaged and easily consumable solution that they can deploy really easily. >> One of the things we're hearing is that this, the difference between moving to the Cloud versus expanding to and with the Cloud, and two kind of areas pop up. Operational's, operations, and developers. >> Kip: Yep. >> People that operate IT mention IT Democratizing IT, certainly with automation scale Cloud's a great win there. But you gotta operate it at that level at the same time serve developers, so it seems that we're hearing from customers its complicated, you got open source, you got developers who are pushing code everyday, and then you gotta run it over and over networks which have security challenges that you need to be managing everyday. Its a hardcore op's problem meets frictionalist development. >> Yeah so lets talk about both of these pieces. What do developers want? They want the latest framework. They want to embrace some of the new, the latest and greatest libraries out there. They want to get on the cutting edge of the stuff. Its great to experiment with open source, its really really hard to productize it. That's what we're bringing to the table here. With Anthos delivering a manage service with Cisco's deep expertise and taking complex technologies, packaging it, creating validated architectures that can work in an enterprise, it takes that complexity out of it. Secondly when you have a enterprise ID operator, lets talk about the complexities there, right? You've gotta tame this wild wild west of open source. You can't have drops every day. You can't have things changing every, you need a certain level of predictability. You need the infrastructure to slot in to a management framework that exists in the dollar center. It needs to slot into a sparing mechanism, to a workflow that exists. On top of that, you've got security and networking on multiple levels right? You've got physical networking, you've got container networking, you've got software define networking, you've got application level networking. Each layer has complexity around policy and intent that needs to marry across those layers. Well, you could try to stitch it together with products from different vendors but its gonna be a hot stinking mess pretty soon. Driving consistency dry across those layers from a vendor who can work in the data center, who can work across the layers of networking, who can work with security, we've got that product set. Between ACI Stealthwatch Cloud providing the security and networking pieces, our container networking expertise, HyperFlex as a hyper converge infrastructure appliance that can be delivered to IT, stood up, its scale out, its easy to deploy. Provides the underpinning for running Anthos and then, now you've got a smooth simple solution that IT can take to its developer and say Hey you know what? You wanna do containers? I've got a solution for you. >> And I think one of the things that's great about that is, you know just as enterprise's are extending into the Cloud so is Cisco. So a lot of the capabilities that KD was just talking about are things that we can deliver for our customers in our data centers but then also in the Cloud. With things like ACI Anywhere. Bringing that ACI Policy framework that they have on-prem into the Cloud, and across multiple Clouds that they get that consistency. The same with Stealthwatch Cloud. We can give them a common security model across their on-prem workloads and multiple public Cloud workload areas. So, we think its a great compliment to what Google's doing with Anthos and that's one of the reasons that we're partners. >> Kip I want to get your thoughts on this, because one of the things we've seen over the past years is that Public Cloud was a great green field, people, you know born in the Cloud no problem. (Kip laughs) And Enterprise would want to put workloads in the Cloud and kind of eliminate some of the compute pieces and some benefits that they could put in the cloud have been great. But the data center never went away, and they're a large enterprise. It's never going away. >> Kip: Yep. >> As we're seeing. But its changing. How should your customers be thinking about the evolution of the data center? Because certainly computes become commodity, okay need some Cloud from compute. Google's got some stuff there, but the network still needs to move packets around. You still got to store stuff, you still need security. They may not be a perimeter, but you still have the nuts and bolts of networking, software, these roles need to be taking place, how should these customers be thinking about Cloud, compute, integration on data primus? >> That is a great point and what we've seen is actually Cloud makes the network even more important, right? So when you have workloads and staff services in the Cloud that you rely on for your business suddenly the reliability and the performance and latency of your networks more important in many ways than it was before, and so that's something any of our customers have seen, its driving a lot of interest and offerings like SD-WAN from Cisco. But to your point on the data center side, we're seeing people modernize their data centers, and their looking to take a lot of the simplicity and agility that they see in a Public Cloud and bring it home, if you will, into the data center. Cause there are lots of reasons why data centers aren't going away. And I think that's one of the reasons we're seeing HyperFlex take off so much is it really simplifies multiple different layers and actually multiple different types of technology, storage, compute, and networking together into a sort of a very simple solution that gives them that agility, and that's why its the center piece of many of our partnerships with the Public Cloud players including Anthos. Because it really provides a Cloud like workload hosting capability on-prem. >> So the news here is that you guys are expanding your relationship with Google. What does it mean? Can you guys summarize the impact to your customers and the industry? >> Well I think that, I mean the impact for our customers is that you've two leaders working together, and in fact they're two leaders who believe in open technology and in a Multicloud approach. And we believe that both of those are fundamentally more aligned with our customers and the market than other approaches and so we're really excited about that and what it means for our customers in the future. You know and we are expanding the relationship, I mean there's not only what we're doing with Google Cloud's Anthos but also associated advances we've made about expanding our collaboration actually in the collaboration area with our Webex capabilities as well as Google Swed. So we're really excited about all of this and what we can enable together for our customers. >> You guys have a great opportunity, I always say latency is important and with low latency, moving stuff around and that's your wheelhouse. KD, talk about the relationship expanding with Google, what specifically is going on? Lets get down and dirty, is it tighter integration? Is it policy? Is it extending HyperFlex into Google? Google coming in? What's actually happening in the relationship that's expanding? >> So let me describe it in three ways. And we've talked a little bit about this already. The first is, how do we drive Cloud like simplicity on-prem? So what we've taken is HyperFlex, which is a scale out appliance, dead simple, easy to manage. We've integrated that with Anthos. Which means that now you've got not only a hyper conversion appliance that you can run workloads on, you can deliver to your developers Kubernetes eco system and tool set that is best in class, comes from Google, its managed from the Cloud and its not only the Kubernetes piece of it you can deliver the silver smash pieces of it, lot of the other pieces that come as part of that Anthos relationship. Then we've taken that and said well to be Enterprise grade, you've gotta makes sure the networking is Enterprise grade at every single layer, whether that is at the physical layer, container layers, fortune machine layer, at the software define networking layer, or in the service layer. We've been working with the teams on both sides, we've been working together to develop that solution and bring back the market for our customers. The third piece of this is to integrate security, right? So Stealthwatch Cloud was mentioned, we're working with the other pieces of our portfolio to integrate security across these offerings to make sure those flows are as secure as can be possible and if we detect anomalies, we flag them. The second big theme is driving this from the Cloud, right? So between Anthos, which is driving the Kubernetes and RAM from the Cloud our SD-WAN technology, Cisco's SD-WAN technology driven from the Cloud being able to terminate those VPN's at the end location. Whether that be a data center, whether that be an edge location and being able to do that seamlessly driven from the Cloud. Innerside, which takes the management of that infrastructure, drives it from the Cloud. Again a Cisco innovation, first in the industry. All of these marry together with driving this infrastructure from the Cloud, and what did it do for our eventual customers? Well it gave them, now a data center environment that has no boundaries. You've got an on-prem data center that's expanding into the Cloud. You can build an application in one place, deploy it in another, have it communicate with another application in the Cloud and suddenly you've kinda demolished those boundaries between data center and the Cloud, between the data center and the edge, and it all becomes a continuum and no other company other than Cisco can do something like that. >> So if I hear you saying, what you're saying is you're bringing the software and security capabilities of Cisco in the data center and around campus et cetera, and SD-WAN to Google Cloud. So the customer experience would be Cisco customer can deploy Google Cloud and Google Cloud runs best on Cisco. That's kinda, is that kind of the guiding principles here to this deal? Is that you're integrating in a deep meaningful way where its plug and play? Google Cloud meets Cisco infrastructure? >> Well we certainly think that with the work that we've done and the integrations that we're doing, that Cisco infrastructure including software capabilities like Stealthwatch Cloud will absolutely be the best way for any customer who wants to adopt Google Cloud's Anthos, to consume it, and to have really the best experience in terms of some of the integration simplicity that KD talked about but also frankly security's very important and being able to bring that consistent security model across Google Cloud, the workloads running there, as well as on-prem through things like Stealthwatch Cloud we think will be very compelling for our customers, and somewhat unique in the marketplace. >> You know one of the things that interesting, TK the new CEO of Google, and I had this question to Diane Green she had enterprise try ops of VM wear, Google's been hiring a lot of strong enterprise people lately and you can see the transformation and we've interviewed a lot of them, I have personally. They're good people, they're smart, and they know what they're doing. But Google still gets dinged for not having those enterprise chops because you just can't have a trajectory of those economy of scales over night, you can't just buy your way into the enterprise. You got to earn it, there's a certain track record, it seems like Google's getting a lot with you guys here. They're bringing Cloud to the table for sure for your customer base but you're bringing, Cisco complete customer footprint to Google Cloud. That seems to be a great opportunity for Google. >> Well I mean I think its a great opportunity for both of us. I mean because we're also bringing a fantastic open Multicloud hybrid solution to our customer base. So I think there's a great opportunity for our customers and we really focus on at the end of the day our customers and what do we do to make them more successful and we think that what we're doing with Google will contribute to that. >> KD talk about, real quickly summarize what's the benefits to the customers? Customers watching the announcements, seeing all the hype and all the buzz on this Google Next, this relationship with Cisco and Google, what's the bottom line for the customer? They're dealing with complexity. What are you guys solving, what the big take away for your customers? >> So its three things. First of all, we've taken the complexity out of the equation, right? We've taken all the complexity around networking, around security, around bridging to multiple Clouds, packaged it in a scale out appliance delivered in an enterprise consistent way. And for them, that's what they want. They want that simplicity of deployment of these next gen technologies, and the second thing is as IT serves their customers, the developers in house, they're able to serve those customers much better with these latest generation technologies and frameworks, whether its Containers, Kubernetes, HDL, some of these pieces that are part of the Anthos solution. They're able to develop that, deliver it back to their internal stakeholders and do it in a way that they control, they feel comfortable with, they feel their secure, and the networking works and they can stand behind it without having to choose or have doubts on whether they should embrace this or not. At the end of the day, customers want to do the right things to develop fast. To be nimble, to act, and to do the latest and greatest and we're taking all those hurtles out of the equations. >> Its about developers. >> It is. >> Running software on secure environments for the enterprise. Guys that's awesome news. Google Next obviously gonna be great conversations. While I have you here I wanna get to a couple talk tracks that are I important around the theme's recovering around Google Next and certainly challenges and opportunities for enterprises that is the application area, Multicloud, and Hybrid Cloud. So lets start with application. You guys are enabling this application revolution, that's the sound bites we hear at your events and certainly that's been something that you guys been publicly talking about. What does that mean for the marketplace? Because certain everyone's developing applications now, (Kip laughs) you got mobile apps, you got block chain apps, we got all kinds of new apps coming out all the time. Software's not going away its a renaissance, its happening. (Kip laughs) How is the application revolution taking shape? How is and what's Cisco's roll in it? >> Sure, I mean our role is to enable that. And that really comes from the fact that we understand that the only reason anyone builds any kind of infrastructure is ultimately to deliver applications and the experiences that applications enable. And so that's why, you know, we pioneered ACI is Application Centric Infrastructure. We pioneered that and start focusing on the implications of applications in the infrastructure any years ago. You know, we think about that and the experience that we can deliver at each layer in the infrastructure and KD talked a little bit about how important it is to integrate those layers but then we also bring tools like AppDynamics. Which really gives our customers the ability to measure the performance of their applications, understand the experience that they're delivering with customers and then actually understand how each piece of the infrastructure is contributing to and affecting that performance and that's a great example of something that customers really wanna be able to do across on-prem and multiple Clouds. They really need to understand that entire thing and so I think something like App D exemplifies our focus on the application. >> Its interesting storage and compute used to be the bottle necks in developers having to stand that up. Cloud solved that problem. >> Kip: That's right. >> Stu Miniman and I always talk about on theCUBE networking's the bottle neck. Now with ACI, you guys are solving that problem, you're making it much more robust and programmable. >> It is. >> This is a key part for application developers because all that policy work can be now automated away. Is that kinda part of that enablement? >> It sure is. I mean if you look at what's happening to applications, they're becoming more consumerized, they're becoming more connected. Whether its micro services, its not just one monolithic application anymore, its all of these applications talking to each other. And they need to become more secure. You need to know what happens, who can talk to whom. Which part of the application can be accessed from where. To deliver that, when my customer tell me listen you deliver the data center, you deliver security, you deliver networking, you deliver multicloud, you've got AppDynamics. Who else can bring this together? And that's what we do. Whether its ACI that specifies policy and does that programmable, delivers that programmable framework for networking, whether its our technologies like titration, like AppDynamics as Kip mentioned. All of these integrate together to deliver the end experience that customers want which is if my application's slow, tell me where, what's happening and help me deliver this application that is not a monolith anymore its all of these bits and pieces that talk to each other. Some of these bits and pieces will reside in the Cloud, a lot of them will be on-prem, some of them will be on the edge. But it all needs to work together-- >> And developers don't care about that they just care about do I get the resources do I need, And you guys kinda take care of all the heavy lifting underneath the covers. >> Yeah and we do that in a modern programmable way. Which is the big change. We do it in intent based way. Which means we let the developers describe the intent and we control that via policy. At multiple levels. >> And that's good for the enterprises, they want to invest more in developing, building applications. Okay track number two, talk track number two Multicloud. its interesting, during the hype cycle of Hybrid Cloud which was a while, I think now people realize Hybrid Cloud is an implementation thing and so its beyond hype now getting into reality. Multicloud never had a hype cycle because people generally woke up one day and said yeah I got multiple Clouds. I'm using this over here, so it wasn't like a, there was no real socialization around the concept of Multicloud they got it right away. They can see it, >> Yep. >> They know what they're paying for. So Multicloud has been a big part of your strategy at Cisco and certainly plays well into what's happening at Google Next. What's going on with Multicloud? Why's the relation with Google important? And where do you guys see Multicloud going from a Cisco perspective? >> Sure enough, I think you're right. The latest data we saw, or have, is 94 percent of enterprises are using or expect to use multiple Clouds and I think those surveys have probably more than six points of potential error so I think for all intensive purposes its 100 percent. (John and KD laughing) I've not met a customer who's unique Cloud, if that's a thing. And so you're right, its an incredibly authentic trend compared with some of these things that seem to be hype. I think what's happening though is the definition of what a Multicloud solution is is shifting. So I think we start out as you said, with a realization, oh wait a second we're all Multicloud this really is a thing and there's a set of problems to solve. I think you're seeing players get more and more sophisticated in how they solve those problems. And what we're seeing is its solving those problems is not about homogenizing all the Clouds and making them all the same because one of the reasons people are using multiple Clouds is to get to the unique capabilities that's in each Cloud. So I think early on there were some approaches where they said okay well we're gonna put down like a layer across all these Clouds and try to make them all look the same. That doesn't really achieve the point. The point is Google has unique capabilities in Google Cloud, certainly the tenser flow capabilities are one that people point to. AWS has unique capabilities as well and so does Dajour. And so customers wanna access all of that innovation. So that kind of answers your question of why is this relationship important to us, its for us to meet our customers needs, we need to have great relationships, partnerships, and integrations with the Clouds that are important to our customers. >> Which is all the Clouds. >> And we know that Google Cloud is important. >> Well not just Google Cloud, which I think in this relationship's got my attention because you're creating a deep relationship with them on a development side. Providing your expertise on the network and other area's you're experts at but you also have to work with other Clouds because, >> That's right we do. >> You're connecting Clouds, that's the-- >> And in fact we do. I mean we have, solutions for Hybrid with AWS and Dejour already launched in the marketplace. So we work with all of them, and what our roll, we see really is to make this simpler for our customers. So there are things like networking and security, application performance management with things like AppDynamics as well as some aspects of management that our customers consistently tell us can you just make this the same? Like these are not the area's of differentiation or unique capabilities. These are area's of friction and complexity and if you can give me a networking framework, whether its SD-WAN or ACI Anywhere that helps me connect those Clouds and manage policy in a consistent way or you can give me application performance the same over these things or security the same over these things, that's gonna make my life easier its gonna be lower friction and I'm expecting it, since your Cisco, you'll be able to integrate with my own Prime environment. >> Yeah, so then we went from hard to simple and easy, is a good business model. >> Kip: Absolutely. >> You guys have done that in the past and you certainly have the, from routing, everything up to switches and storage. KD, but talk about the complexity, because this is where it sounds complex on paper but when you actually unpack the technologies involved, you know in different Cloud suppliers, different technologies and tools. Throw in open sources into the mix is even more complex. So Multicloud, although sounds like a simple reality, the complexities pretty significant. Can you just share your thoughts on that? >> It is, and that's what we excel. We excel, I think complexity and distilling it down and making it simple. One other thing that we've done is, because each Cloud is unique and brings some unique capabilities, we've worked with those vendors along those dimension's that they're really really passionate about and strong end. So for example, with Google we've worked on the container front. They are, maybe one of the pioneers in that space, they've certainly delivered a lot of technologies into that domain. We've worked with them on the Kubeflow front on the AI front, in fact we are one of the biggest contributors to the open source projects on Kubeflow. And we've taken those technologies and then created a simple way for enterprise IT to consume them. So what we've done with Anthos, with Google, takes those technologies, takes our networking constructs, whether its ACI Anywhere, whether its other networking pieces on different parts of it, whether its SD-WAN and so forth. And it creates that environment which makes an enterprise IT feel comfortable with embracing these technologies. >> You said you're contributing to Kubeflow. A lot of people don't look at Cisco and would instantly come to the reaction that you guys are heavily contributing into open source. Can you just share, you know, the level of commitment you guys are making to open source? Just get that out there, and why? Why are you doing it? >> Yeah. For us, some of these technologies are really in need for incubation and nurturing, right? So Kubeflow is early, its really promising technology. People, in fact there's a lot of buzz about AI-- >> In your contributing to Kubeflow, significantly? >> Yes, yeah. >> Cisco? >> We're number three contributor actually. Behind Google. >> Okay so you're up there? You're up at the top of the list? >> Yeah one of the top three. >> Top of the list. >> And why? Is this getting more collaborative? More Multicloud fabric-- >> Well I mean, again it comes back to our customers. We think Kubeflow is a really interesting framework for AI and ML and we've seen our customers that workload type is becoming more and more important to them. So we're supporting that because its something we think will help our customers. In fact, Kubeflow figures into how we think about Hybrid and Multicloud with Google and the Anthos system in terms of giving customers the ability to run those workloads in Google Cloud with TPU's or on-prem with some of the incredible appliances that we've delivered in the data centers using GPU's to accelerate these workings. >> And it also certainly is compatible with the whole Multicloud mission as well-- >> Exactly, yeah. >> That's right. >> So you'll see us, we're committed to open source but that commitment comes through the lens of what we think our customers need and want. So it really again it comes back to the customer for us, and so you'll see us very active in open source areas. Sometimes, I think to your point, we should be louder about that. Talk more about that but we're really there to help our customers. DevNet, DevNet Create that Susie Wee's been working on has been a great success. I mean we've witnessed it first hand, seeing it at the Cisco Live packed house. >> In Barcelona. >> You've got developers developing on the network its a really big shift. >> Yeah absolutely. >> That's a positive shift. >> Well its a huge shift, I think its natural as you see Cisco shifting more and more towards software you see much much more developer engagement and we're thrilled with the way DevNet has grown. >> Yeah, and networking guys in your target audience gravitates easily to software it seems to be a nice fit. So good stuff there. Third talk track, Hybrid. You guys have deep bench of tech and people on network security, networking security, data center, and all the things involved in the years and years of enterprise evolution. Whether its infrastructure and all the way through the facilities, lot of expertise. Now Hybrid comes onto the scene. Went through the little hype cycle, people now get it, you gotta operate across Clouds on-prem to the Cloud and now multiple Clouds so what's the current state of Cisco-Google relationship with Hybrid? How is that fitting in, Google Next and beyond? >> So let me tease that in the context of some history, right? So if we go back, say 10 years, virtualization was the bad word of the day. Things were getting virtualized. We created the best data center infrastructure for virtualization in our UCS platforms. Completely programmable infrastructure's code, a very programmable environment that can back a lot of density of virtual machines, right? Roll forward three or four years, storage and compute were getting unwieldily. There was complexity there to be solved. We created the category of converge infrastructure, became the leader of that category whether we work with DMC and other players. Roll forward another four or five years we got into the hyper conversion infrastructure space with the most performant ACI appliance on the market anywhere. And most performant, most consistent, deeply engineered across all the stacks. Can took that complexity, took our learnings and DNA networking and married it together to create something unique for the industry. Now you think, do other domains come together? Now its the Cloud and on-prem. And if that comes together we see similar kinds of complexity. Complexity in security, complexity in networking, complexity in policy and enforcement across layers. Complexity, frankly in management, and how do you make that management much more simple and consumerized? We're taking that complexity and distilling it down into developing a very simple appliance. So what we're trying to deliver to the customer is a simple appliance that they can stand and procure and set up much in the way that they're used to but now the appliance is scale out. Its much more Cloud like. Its managed from the Cloud. So its got that consumer modern feel to it. Now you can deliver on this a container environment, a container development environment, for your developer stakeholders. You can deliver security that's plumed through and across multiple layers, networking that's plumed through and across multiple layers, at the end of the day we've taken those boundaries between Cloud and data center and blown them away. >> And you've merged operational constructs of the old data center operations to Cloud like operations, >> Yeah. >> Everything's just a service, you got Microservices coming, so you didn't really lose anything, you'd mentioned democratizing IT earlier, you guys are bringing the HyperFlex to ACI to the table so you now can let customers run, is that right? Am I getting it right? >> That's right. Its all about how do you take new interesting technologies that are developed somewhere, that may have complexity because its open source and exchanging all the time or it may have complexity because it was not been for a different environment, not for the on-prem environment. How do you take that innovation and democratize it so that everybody, all of the 100's of thousands and millions of enterprise customers can use it and feel comfortable using it and feel comfortable actually embracing it in a way that gives them the security, gives them the networking that's needed and gives them a way that they can serve their internal stakeholders very easily. >> Guys thanks for taking the time for this awesome conversation. One final question, gettin you both to weigh in on, here at Google Next 2019, we're in 2019. Cloud's going a whole other level here. What's the most important story that customers should pay attention to with respect to expanding into the Cloud, taking advantage of the growing developer ecosystem as open source continues to go to the next level. What's the most important thing happening around Google Next and the industry with respect to Cloud and for the enterprise? >> Well I think certainly here at Google Next the Google Cloud's Anthos announcement is going to be of tremendous interest to enterprises cause as you said they are extending into the Cloud and this is another great option for enterprises who are looking to do that. >> Yeah and as I look at it suddenly IT has a set of new options. They used to be able to pick networking and compute and storage, now they can pick Kubeflow for AI or they can pick Kubernetes for container development, Anthos for an on-prem version. They're shopping list has suddenly gone up. We're trying to keep that simple and organized for them so that they can pick the best ingredients they can and build the best infrastructure they can, they can do it. >> Guys thanks so much. Kip Compton senior vice president Cloud Platform and Solutions Group and KD vice president of the Data Center compute group for Cisco. Its been exclusive CUBE conversation around the Google-Cisco big news at Google Next 2019 and I'm John Furrier thanks for watching. (upbeat jazz music)

>> From Sand Hill Road, in the heart of Silicon Valley, it's theCUBE! Presenting the People First Network, insights from entrepreneurs and tech leaders. >> Hello everyone, I'm John Furrier with theCUBE. We are here on Sand Hill Road at Mayfield's Venture Capital Headquarters for the People First Network. I'm here with Pradeep Sindhu, who's the co-founder of Juniper Networks and now the co-founder and CEO of Fungible. Thanks for joining me on this special conversation for the People First Program. >> Thank you, John. >> So I want to talk to you about entrepreneurship. You're doing a new startup, you've been so successful as an entrepreneur over the years, uh you keep building a great company at Juniper Networks, everyone kind of knows the success there, great success. We've interviewed you before on that, but now you got a new startup! >> I do. >> You're building a company I thought startups were for young people. (Pradeep laughs) Come on! We're nine years into our startup, we're still a startup. >> Well, I'm not quite over the hill yet. (John Laughs) One of the reasons I jumped back in to the startup world was I saw an opportunity to solve a very important industry problem and to do it rapidly and so, I took the step. >> Well, we're super excited that you shared your vision with us and folks can check that video out on theCUBE and deep dive on the future of that startup. So, it's exciting, check it out. Entrepreneurship has changed and one of the things that we're talking about here is how things have changed just since the last time you've done a round. I mean, you're now a couple years in, you've been stealth for a while building out this amazing chip, the the Data Processing Unit, the DPU. What's different about building companies now? I mean, are you a unicorn? You have a billion-dollar evaluation yet? I mean, that's the new bar, it's different. What are some of the differences now in building a company? >> You know, one thing, John, that I saw is a clear difference between when I started Juniper and started Fungible, is that the amount of bureaucracy and paperwork that one has to go through is tremendously larger. And this was disappointing because one of the things that the US does very well is to keep it light and keep it fast so that it's easy for people to create new companies. That was one difference. The other difference that I saw was actually reluctance on the part of Venture to take big bets. Because people had gotten used to the idea of a quick turn around with maybe a social media company or something. Now, you know, my tendency to work on problems is I tend to work on fundamental problems that take time to do, but the outcome is potentially large. So, I'm attracted to that kind of problem. And so, the number of VCs that were willing to look at those kinds of problems were far fewer this time around than last time. >> So you got some no's then? >> Of course, I got no's. Even from people that-- >> You're the Founder of Juniper Networks, you've done amazing things, like you created billions of dollars of value, you should be gold-plated. >> What you did 20 years ago only goes so far. I think what what people were reluctant, and remember, I started Fungible in 2015. At that time, silicon was still a dirty word. I think now there are several people who said, no, we're regretting because they see that it's kind of the second coming of silicon and it's for reasons that we have talked about in the other discussion that, you know, Moore's Law is coming to a close. And that the largest that it was distributing over the last 30, 40 years is going away so what we have to do is we have to innovate on silicon. You know, as we discussed, the world has only seen a few architectures for computing engines on silicon. One of the things that makes me very happy is that now people are going to apply their creativity to painting on this canvas. >> So, silicon's got some new life blood. What's your angle with your silicon strategy? >> So, our silicon strategy is really to focus on one aspect of computations in the data center and this aspect we call Data Centric Computing. Data Centric Computing is really computing where there's a lot more movement of data and lot less arithmetic on data. And today, giving scaled out architectures, data has to move and be stored and retrieved and so on as much as it has to be computed on. So, existing engines are not very good at doing these Data Centric Computations, so we are building a programmable DPU to actually do those computations much, much better than any engine can today. >> And that's great. And just a reminder, we got a deep dive on that topic, so check out the video on that. So, I got to ask you the question, why are people resistant at the silicon trend? Was it trendy? Was it the lack of information? You almost see people almost less informed on computer architecture these days as people Blitzscale for SASPA businesses. Cloud certainly is great for that , but there's now this renaissance. Why was it, what was the problem? >> I think the problem is very easy to identify. Building silicon is expensive. It takes very specialized set of skills. It takes a lot of money, and it takes time. Well, anything that takes a long time is risky. And Venture, while it likes risk, it tries to minimize it. So, it's completely understandable to me that, you know, people don't want to take, they don't want to put money in ventures that might take two, three years. Actually, you know, going back to the Juniper era, there are Venture folks, I won't name them, but who said, well, if you could do this thing in six months, we're in, but otherwise no. >> How long did it take? >> 2 1/2 years. >> And then the rest is history. >> Yeah. >> So, there's a lot of naysayers, it's just categorical kind of like, you know, courses for horses for courses, as they say, that expression. All right, so now with with your experience, okay, you got some no's, how did that, how did that make you feel? You're like, damn, I got to get out and do the rounds? >> Actually-- >> You just kind of moved on or? >> I just moved on because, you know, the fact that I did Juniper should not give me any special treatment. It should be the quality of the idea that I've come up with. And so, what I tried to do, my response was to make the idea more compelling, sharpen it further, and and try to convince people that, hey there was value here. I think that I've not been often wrong about predicting things maybe two, three years out, so on the basis of that people were willing to give me that credibility, and so, there were enough people who were interested in investing. >> What did you learn in the process? What was the one thing that you sharpened pretty quickly? Was it the story, was it the architecture message? What was the main thing that you just had to sharpen really fast? >> The thing I had to sharpen really fast was while the technology we were developing is disruptive, customers really, really care, they don't want to be disrupted. They actually want the insertion to be smooth. And so, this is the piece that we had to sharpen. Anytime you have a new technology, you have to think about, well, how can I make it easy for people to use? This is very, very important. >> So the impact to the architecture itself, if it was deployed in the use case, and then look at the impact of ripple effect. >> For example, you cannot require people to change their applications. That's a no-no. Nobody's going to rewrite their software. You also probably don't want to ask people to change their network architecture. You don't want to ask people to change their deployment model. So, there are certain things that need to be held constant. So, that was a very quick learning. >> So, one of the other things that we've been talking about with other entrepreneurs is okay, the durability of the company. You're going down, playing the long game, but also innovation and and attracting people and so you've done, built companies before, as with Juniper, and you've worked with a great team of people in your network. How did you attract people for this? Obviously, they probably were attracted on the merit of the idea, but how do you pick people? What's the algorithm? What's the method that you use to choose team members or partners? Because that's also super important. If you got a gestation period where you're building out. You got to have high quality DNA. How do you make that choice? What's the thought process? >> So John, the the only algorithm that I know works is to look for people that are either known to you directly or known to somebody that you trust because in an interview, it's a hit or miss. At least, I'm not so good at interviewing that I can have a 70, 80% success rate. Because people can fake it in an interview, but you cannot fake it once you've worked with somebody, so that's one very important test. The other one was, it was very important for me to have people who were collaborative. It is possible to find lots of people who are very smart but they are not collaborative. And in an endeavor like the one we're doing, collaboration is very important, and of course the base skill set is very important so, you know, almost half of our team is software because we are-- >> It's a programmable chip. >> It's a programmable chip. We're writing our own operating system, very lightweight. So, you need that combination of hardware and software skills which is getting more and more scarce regrettably. >> I had a chat with Andy Bechtolsheim at VMworld and he and I had a great conversation similar to this, he said, you know, hardware is hard, software is easier, (laughs) and that was his point, and he also was saying that with merchant silicon, it's the software that's key. >> It is absolutely the key. Software, you know, software is always important. But software doesn't run on air. We should also remember that. And there are certain problems, for example, switching packets inside a data center where the problem is reasonably well-solved by merchant silicon. But there are other problems for which there is no merchant silicon solution, like the DPU that we're talking about. Eventually, there might be. But today there isn't. So, I think Apple is a great example for me of a company that understands the value of software hardware integration. Everybody thinks of Apple as a software only company. They have thousands of silicon engineers, thousands. If you look at your Apple Watch, there are probably some 20 chips inside it. You look at the iPhone. It won't do the magic that it does without the silicon team that they have. They don't talk about it a lot on purpose because-- >> 'Cause they don't want a China chip in there. >> Well, they don't want a China chip, but not only that, they don't know to advertise. It's part of their core value. >> Yeah. >> And so, as long as people keep believing that everything can be done in software, that's good for Apple. >> So, this is the trend, and this is why, Larry also brought this up years ago when he was talking about Oracle. He tried to make the play that Oracle would be the iPhone of the data center. >> Mm-hmm. >> Which people poo-pooed and they're still struggling with that idea, but he was pointing out the benefit of the iPhone, how they are integrating into the hardware and managing what Steve Jobs always wanted which was security number one >> Absolutely. >> for the customer. >> And seamlessness of use. And the reason the iPhone actually works as well as it does is because the hardware and the software are co-designed. And the reason it delivers the value that it does to the company is because of those things. >> So you see, this as a big trend, now you see that hardware and software will work together. You see cloud native heterogeneous almost server-less environments abstracted away with software and other components, fabric and specialized processors? >> Yes. >> And just application developers just programming at will? >> Correct, and edge data centers, so computing, I would say that maybe in a decade we will see roughly half of the computing and storage being done closer to the edge and the remaining half being done in these massively skilled data centers. >> I want to get geeky with you for a second, I want to ask you a question, I want to get your take on something. I've been thinking about and haven't really talked publicly about, kind of said on theCUBE a few times in a couple interviews, but I want to get your thoughts. There's been a big discussion about hybrid cloud, private cloud, multi-cloud, all that stuff going on, and I was talking with Andy Jassy, the CEO of Amazon, and Diane Greene at Google and I'm like okay, I can buy all these definitions, I don't believe any of 'em, but, you know, what the hell does that mean, what I know. I said to Diane Greene, I said, well, if everyone's going cloud operations, if cloud operations and edge is the new paradigm, isn't the data center just a big fat edge? And she looked at me and said, hmm, interesting. So, is the data center ultimately just a device on this network? If the operating model is horizontally scalable, isn't it just a a big fat edge? >> So you can, so here's the thing, right, if we talk about, you know, what is cloud? It's essentially a particular architecture, which is scaled out architecture uh to build a data center and then having this data center be connected by a very fast network. To consumers anytime, anywhere. So, let's take that as the definition of cloud. Well, if that's the definition of cloud, now you're talking about what kind of data centers will be present over time, and I think what we observed was it's really important for many applications to come, and with the advent of 5G, with the advent of things like augmented reality, now, with the advent of self-driving cars, a lot of computing needs to be done close to the edge because it cannot be done, because of laws of physics reasons, it cannot be done far away. So, once you have this idea that you also have small scale out data centers close to the edge, all these arguments about whether it's a hybrid cloud or this cloud or that cloud, they kind of vanish because-- >> So, you agree then, it's kind of like an edge? >> It is. >> Because it's an operational philosophy if you're running it that way, then it's just what it is, it's a scale out entity. >> Correct. >> It could be a small sensor network or it could be a data center. >> Correct. So, the key is actually the operational model and the idea of using scaled out design principles, which is don't try to build 50,000 different types of widgets which are then hard to manage. Try to build a small set of things, tinker toys that you can connect together in different ways. Make it easy to manage, manage it using software, which is then centralized by itself. >> That's a great point. You you jumped the gun on me on this one. I was going to ask you that next question. As an entrepreneur who's looking at this new architecture you just mentioned, what advice would you give them? How should they attack this market? 'Cause the old way was you get a PowerPoint, you show a presentations of the VCs, they give you some money, you provision some hardware, you go on next generation, get a prototype, it's up and running, you got some users. Built it then you get some cash, you scale it (laughs). Now with this new architecture, what's the strategy of the eager entrepreneur who wants to create a valuable opportunity with this new architecture. What would you advise them? >> So I, you know, I think it really depends on what is the underlying technology that you have for your startup. There's going to be lots and lots of opportunities. >> Oh don't fight the trend, which is, the headwind would be, don't compete against the scale out. Ride that wave, right? >> Yeah, people who are competing against scale out by building large scale monolithic machines, I think they're going to have difficulty, there's fundamental difficulties there. So, don't fight the trend. There's plenty of opportunities for software. Plenty of opportunities for software. But it's not the vertical software stack that you have to go through five or six different levels before you get to doing the real work. It's more a horizontal stack, it's a more agile stack. So, if it's a software company, you can actually build prototypes very quickly today. Maybe on AWS, maybe on Google Cloud, maybe on Microsoft. >> So, maybe the marketing campaign for your company, or maybe the trend might that's emerging is data first companies. We heard cloud mobile first, cloud first, data first. >> Correct. We think that the world really, the world of infrastructure is going from compute centric to data centric. This is absolutely the case. So, data first companies, yes. >> All right, so final question for you, as someone who's had a lot of experience in building public company, multi-billions of dollars of value, embarking on a big idea that that we like, I love the idea. A lot of people struggle with the entrepreneurial equation of how to leverage their board, how to leverage their investors and advisors and service providers. What would you share to the folks watching that are out there that have struggled? Some think, oh the VCs, they don't add value. Some do, some don't. There's always missed reactions. There's different, different types out there. Some do, some don't. But in general, it's about leveraging the resources and the people involved. How should entrepreneurs leverage their advisors, their board, their investors? >> I think it's very important for an entrepreneur to look for complementarity. It's very easy to want to find people that think like you do. If you just find people that think like you do, you're not, they're not going to find weaknesses in your arguments. It's more difficult, but if you look to entrepreneurs to provide complementarity, you look to advisors to provide the complementarity, look to customers to give you feedback, that's how you build value. >> Pradeep, thanks so much for sharing the insight, a lot of opportunities. Thanks for sharing here on-- >> Thank you, John. >> The People Network. I'm John Furrier at Mayfield on Sand Hill Road for theCUBE's coverage of the People First Network series, part of Mayfield's 50th Anniversary. Thanks for watching. (upbeat music)

>> Announcer: Coverage DataWorks Summit Europe 2017 brought to you by Hortonworks. >> Welcome back everyone. Live here in Munich, Germany for theCUBE'S special presentation of Hortonworks Hadoop Summit now called DataWorks 2017. I'm John Furrier, my co-host Dave Vellante, our next guest is Shaun Connolly, Vice President of Corporate Strategy, Chief Strategy Officer. Shaun great to see you again. >> Thanks for having me guys. Always a pleasure. >> Super exciting. Obviously we always pontificating on the status of Hadoop and Hadoop is dead, long live Hadoop, but runs in demise is greatly over-exaggerated, but reality is is that no major shifts in the trends other than the fact that the amplification with AI and machine learning has upleveled the narrative to mainstream around data, big data has been written on on gen one on Hadoop, DevOps, culture, open-source. Starting with Hadoop you guys certainly have been way out in front of all the trends. How you guys have been rolling out the products. But it's now with IoT and AI as that sizzle, the future self driving cars, smart cities, you're starting to really see demand for comprehensive solutions that involve data-centric thinking. Okay, said one. Two, open-source continues to dominate MuleSoft went public, you guys went public years ago, Cloudera filed their S-1. A crop of public companies that are open-source, haven't seen that since Red Hat. >> Exactly. 99 is when Red Hat went public. >> Data-centric, big megatrend with open-source powering it, you couldn't be happier for the stars lining up. >> Yeah, well we definitely placed our bets on that. We went public in 2014 and it's nice to see that graduating class of Taal and MuleSoft, Cloudera coming out. That just I think helps socializes movement that enterprise open-source, whether it's for on-prem or powering cloud solutions pushed out to the edge, and technologies that are relevant in IoT. That's the wave. We had a panel earlier today where Dahl Jeppe from Centric of British Gas, was talking about his ... The digitization of energy and virtual power plant notions. He can't achieve that without open-source powering and fueling that. >> And the thing about it is is just kind of ... For me personally being my age in this generation of computer industry since I was 19, to see the open-source go mainstream the way it is, is even gets better every time, but it really is the thousandth flower bloom strategy. Throwing the seeds out there of innovation. I want to ask you as a strategy question, you guys from a performance standpoint, I would say kind of got hammered in the public market. Cloudera's valuation privately is 4.1 billion, you guys are close to 700 million. Certainly Cloudera's going to get a haircut looks like. The public market is based on the multiples from Dave and I's intro, but there's so much value being created. Where's the value for you guys as you look at the horizon? You're talking about white spaces that are really developing with use cases that are creating value. The practitioners in the field creating value, real value for customers. >> So you covered some of the trends, but I'll translate em into how the customers are deploying. Cloud computing and IoT are somewhat related. One is a centralization, the other is decentralization, so it actually calls for a connected data architecture as we refer to it. We're working with a variety of IoT-related use cases. Coca-Cola, East Japan spoke at Tokyo Summit about beverage replenishment analytics. Getting vending machine analytics from vending machines even on Mount Fuji. And optimizing their flow-through of inventory in just-in-time delivery. That's an IoT-related to run on Azure. It's a cloud-related story and it's a big data analytics story that's actually driving better margins for the business and actually better revenues cuz they're getting the inventory where it needs to be so people can buy it. Those are really interesting use cases that we're seeing being deployed and it's at this convergence of IoT cloud and big data. Ultimately that leads to AI, but I think that's what we're seeing the rise of. >> Can you help us understand that sort of value chain. You've got the edge, you got the cloud, you need something in-between, you're calling it connected data platform. How do you guys participate in that value chain? >> When we went public our primary workhorse platform was Hortonworks Data Platform. We had first class cloud services with Azure HDInsight and Hortonworks Data Cloud for AWS, curated cloud services pay-as-you-go, and Hortonworks DataFlow, I call as our connective tissue, it manages all of your data motion, it's a data logistics platform, it's like FedEx for data delivery. It goes all the way out to the edge. There's a little component called Minify, mini and ify, which does secure intelligent analytics at the edge and transmission. These smart manufacturing lines, you're gathering the data, you're doing analytics on the manufacturing lines, and then you're bringing the historical stuff into the data center where you can do historical analytics across manufacturing lines. Those are the use cases that are connect the data archives-- >> Dave: A subset of that data comes back, right? >> A subset of the data, yep. The key events of that data it may not be full of-- >> 10%, half, 90%? >> It depends if you have operational events that you want to store, sometimes you may want to bring full fidelity of that data so you can do ... As you manufacture stuff and when it got deployed and you're seeing issues in the field, like Western Digital Hard Drives, that failure's in the field, they want that data full fidelity to connect the data architecture and analytics around that data. You need to ... One of the terms I use is in the new world, you need to play it where it lies. If it's out at the edge, you need to play it there. If it makes a stop in the cloud, you need to play it there. If it comes into the data center, you also need to play it there. >> So a couple years ago, you and I were doing a panel at our Big Data NYC event and I used the term "profitless prosperity," I got the hairy eyeball from you, but nonetheless, we talked about you guys as a steward of the industry, you have to invest in open-source projects. And it's expensive. I mean HDFS itself, YARN, Tez, you guys lead a lot of those initiatives. >> Shaun: With the community, yeah, but we-- >> With the community yeah, but you provided contributions and co-leadership let's say. You're there at the front of the pack. How do we project it forward without making forward-looking statements, but how does this industry become a cashflow positive industry? >> Public companies since end of 2014, the markets turned beginning at 2016 towards, prior to that high growth with some losses was palatable, losses were not palatable. That his us, Splunk, Tableau most of the IT sector. That's just the nature of the public markets. As more public open-source, data-driven companies will come in I think it will better educate the market of the value. There's only so much I can do to control the stock price. What I can from a business perspective is hit key measures from a path to profitability. The end of Q4 2016, we hit what we call the just-to-even or breakeven, which is a stepping stone. On our earnings call at the end of 2016 we ended with 185 million in revenue for the year. Only five years into this journey, so that's a hard revenue growth pace and we basically stated in Q3 or Q4 of 17, we will hit operating cashflow neutrality. So we are operating business-- >> John: But you guys also hit a 100 million at record pace too, I believe. >> Yeah, in four years. So revenue is one thing, but operating margins, like if you look at our margins on our subscription business for instance, we've got 84% margin on that. It's a really nice margin business. We can make that better margins, but that's a software margin. >> You know what's ironic, we were talking about Red Hat off camera. Here's Red Hat kicking butt, really hitting all cylinders, three billion dollars in bookings, one would think, okay hey I can maybe project forth some of these open-source companies. Maybe the flip side of this, oh wow we want it now. To your point, the market kind of flipped, but you would think that Red Hat is an indicator of how an open-source model can work. >> By the way Red Hat went public in 99, so it was a different trajectory, like you know I charted their trajectory out. Oracle's trajectory was different. They didn't even in inflation adjusted dollars they didn't hit a 100 million in four years, I think it was seven or eight years or what have you. Salesforce did it in five. So these SaaS models and these subscription models and the cloud services, which is an area that's near and dear to my heart. >> John: Goes faster. >> You get multiple revenue streams across different products. We're a multi-products cloud service company. Not just a single platform. >> So we were actually teasing this out on our-- >> And that's how you grow the business, and that's how Red Hat did it. >> Well I want to get your thoughts on this while we're just kind of ripping live here because Dave and I were talking on our intro segment about the business model and how there's some camouflage out there, at least from my standpoint. One of the main areas that I was kind of pointing at and trying to poke at and want to get your reaction to is in the classic enterprise go-to-market, you have sales force expansive, you guys pay handsomely for that today. Incubating that market, getting the profitability for it is a good thing, but there's also channels, VARs, ISVs, and so on. You guys have an open-source channel that kind of not as a VAR or an ISV, these are entrepreneurs and or businesses themselves. There's got to be a monetization shift there for you guys in the subscription business certainly. When you look at these partners, they're co-developing, they're in open-source, you can almost see the dots connecting. Is this new ecosystem, there's always been an ecosystem, but now that you have kind of a monetization inherently in a pure open distribution model. >> It forces you to collaborate. IBM was on stage talking about our system certified on the Power Systems. Many may look at IBM as competitive, we view them as a partner. Amazon, some may view them as a competitor with us, they've been a great partner in our for AWS. So it forces you to think about how do you collaborate around deeply engineered systems and value and we get great revenue streams that are pulled through that they can sell into the market to their ecosystems. >> How do you vision monetizing the partners? Let's just say Dave and I start this epic idea and we create some connective tissue with your orchestrator called the Data Platform you have and we start making some serious bang. We make a billion dollars. Do you get paid on that if it's open-source? I mean would we be more subscriptions? I'm trying to see how the tide comes in, whose boats float on the rising tide of the innovation in these white spaces. >> Platform thinking is you provide the platform. You provide the platform for 10x value that rides atop that platform. That's how the model works. So if you're riding atop the platform, I expect you and that ecosystem to drive at least 10x above and beyond what I would make as a platform provider in that space. >> So you expect some contributions? >> That's how it works. You need a thousand flowers to be running on the platform. >> You saw that with VMware. They hit 10x and ultimately got to 15 or 16, 17x. >> Shaun: Exactly. >> I think they don't talk about it anymore. I think it's probably trading the other way. >> You know my days at JBoss Red Hat it was somewhere between 15 to 20x. That was the value that was created on top of the platforms. >> What about the ... I want to ask you about the forking of the Hadoop distros. I mean there was a time when everybody was announcing Hadoop distros. John Furrier announced SiliconANGLE was announcing Hadoop distro. So we saw consolidation, and then you guys announced the ODP, then the ODPI initiative, but there seems to be a bit of a forking in Hadoop distros. Is that a fair statement? Unfair? >> I think if you look at how the Linux market played out. You have clearly Red Hat, you had Conicho Ubuntu, you had SUSE. You're always going to have curated platforms for different purposes. We have a strong opinion and a strong focus in the area of IoT, fast analytic data from the edge, and a centralized platform with HDP in the cloud and on-prem. Others in the market Cloudera is running sort of a different play where they're curating different elements and investing in different elements. Doesn't make either one bad or good, we are just going after the markets slightly differently. The other point I'll make there is in 2014 if you looked at the then chart diagrams, there was a lot of overlap. Now if you draw the areas of focus, there's a lot of white space that we're going after that they aren't going after, and they're going after other places and other new vendors are going after others. With the market dynamics of IoT, cloud and AI, you're going to see folks chase the market opportunities. >> Is that dispersity not a problem for customers now or is it challenging? >> There has to be a core level of interoperability and that's one of the reasons why we're collaborating with folks in the ODPI, as an example. There's still when it comes to some of the core components, there has to be a level of predictability, because if you're an ISV riding atop, you're slowed down by death by infinite certification and choices. So ultimately it has to come down to just a much more sane approach to what you can rely on. >> When you guys announced ODP, then ODPI, the extension, Mike Olson wrote a blog saying it's not necessary, people came out against it. Now we're three years in looking back. Was he right or not? >> I think ODPI take away this year, there's more than we can do above and beyond the Hadoop platform. It's expanded to include SQL and other things recently, so there's been some movement on this spec, but frankly you talk to John Mertic at ODPI, you talk to SAS and others, I think we want to be a bit more aggressive in the areas that we go after and try and drive there from a standardization perspective. >> We had Wei Wang on earlier-- >> Shaun: There's more we can do and there's more we should do. >> We had Wei on with Microsoft at our Big Data SV event a couple weeks ago. Talk about the Microsoft relationship with you guys. It seems to be doing very well. Comments on that. >> Microsoft was one of the two companies we chose to partner with early on, so and 2011, 2012 Microsoft and Teradata were the two. Microsoft was how do I democratize and make this technology easy for people. That's manifest itself as Azure Cloud Service, Azure HDInsight-- >> Which is growing like crazy. >> Which is globally deployed and we just had another update. It's fundamentally changed our engineering and delivering model. This latest release was a cloud first delivery model, so one of the things that we're proud of is the interactive SQL and the LLAP technology that's in HDP, that went out through Azure HDInsight what works data cloud first. Then it certified in HDP 2.6 and it went power at the same time. It's that cadence of delivery and cloud first delivery model. We couldn't do it without a partnership with Microsoft. I think we've really learned what it takes-- >> If you look at Microsoft at that time. I remember interviewing you on theCUBE. Microsoft was trading something like $26 a share at that time, around their low point. Now the stock is performing really well. Stockinnetel very cloud oriented-- >> Shaun: They're very open-source. >> They're very open-source and friendly they've been donating a lot to the OCP, to the data center piece. Extremely different Microsoft, so you slipped into that beautiful spot, reacted on that growth. >> I think as one of the stalwarts of enterprise software providers, I think they've done a really great job of bending the curve towards cloud and still having a mixed portfolio, but in sending a field, and sending a channel, and selling cloud and growing that revenue stream, that's nontrivial, that's hard. >> They know the enterprise sales motions too. I want to ask you how that's going over all within Hortonworks. What are some of the conversations that you're involved in with customers today? Again we were saying in our opening segment, it's on YouTube if you're not watching, but the customers is the forcing function right now. They're really putting the pressure one the suppliers, you're one of them, to get tight, reduce friction, lower costs of ownership, get into the cloud, flywheel. And so you see a lot-- >> I'll throw in another aspect some of the more late majority adopters traditionally, over and over right here by 2025 they want to power down the data center and have more things running in the public cloud, if not most everything. That's another eight years or what have you, so it's still a journey, but this journey to making that an imperative because of the operational, because of the agility, because of better predictability, ease of use. That's fundamental. >> As you get into the connected tissue, I love that example, with Kubernetes containers, you've got developers, a big open-source participant and you got all the stuff you have, you just start to see some coalescing around the cloud native. How do you guys look at that conversation? >> I view container platforms, whether they're container services that are running one on cloud or what have you, as the new lightweight rail that everything will ride atop. The cloud currently plays a key role in that, I think that's going to be the defacto way. In particularly if you go cloud first models, particularly for delivery. You need that packaging notion and you need the agility of updates that that's going to provide. I think Red Hat as a partner has been doing great things on hardening that, making it secure. There's others in the ecosystem as well as the cloud providers. All three cloud providers actually are investing in it. >> John: So it's good for your business? >> It removes friction of deployment ... And I ride atop that new rail. It can't get here soon enough from my perspective. >> So I want to ask about clouds. You were talking about the Microsoft shift, personally I think Microsoft realized holy cow, we could actaully make a lot of money if we're selling hardware services. We can make more money if we're selling the full stack. It was sort of an epiphany and so Amazon seems to be doing the same thing. You mentioned earlier you know Amazon is a great partner, even though a lot of people look at them as a competitor, it seems like Amazon, Azure etc., they're building out their own big data stack and offering it as a service. People say that's a threat to you guys, is it a threat or is it a tailwind, is it it is what it is? >> This is why I bring up industry-wide we always have waves of centralization, decentralization. They're playing out simultaneously right now with cloud and IoT. The fact of the matter is that you're going to have multiple clouds on-prem data and data at the edge. That's the problem I am looking to facilitate and solve. I don't view them as competitors, I view them as partners because we need to collaborate because there's a value chain of the flow of the data and some of it's going to be running through and on those platforms. >> The cloud's not going to solve the edge problem. Too expensive. It's just physics. >> So I think that's where things need to go. I think that's why we talk about this notion of connected data. I don't talk hybrid cloud computing, that's for compute. I talk about how do you connect to your data, how do you know where your data is and are you getting the right value out of the data by playing it where it lies. >> I think IoT has been a great sweet trend for the big data industry. It really accelerates the value proposition of the cloud too because now you have a connected network, you can have your cake and eat it too. Central and distributed. >> There's different dynamics in the US versus Europe, as an example. US definitely we're seeing a cloud adoption that's independent of IoT. Here in Europe, I would argue the smart mobility initiatives, the smart manufacturing initiatives, and the connected grid initiatives are bringing cloud in, so it's IoT and cloud and that's opening up the cloud opportunity here. >> Interesting. So on a prospects for Hortonworks cashflow positive Q4 you guys have made a public statement, any other thoughts you want to share. >> Just continue to grow the business, focus on these customer use cases, get them to talk about them at things like DataWorks Summit, and then the more the merrier, the more data-oriented open-source driven companies that can graduate in the public markets, I think is awesome. I think it will just help the industry. >> Operating in the open, with full transparency-- >> Shaun: On the business and the code. (laughter) >> Welcome to the party baby. This is theCUBE here at DataWorks 2017 in Munich, Germany. Live coverage, I'm John Furrier with Dave Vellante. Stay with us. More great coverage coming after this short break. (upbeat music)