(upbeat techno music) >> From Mountain View California, it's the Cube covering the 15th Annual Grow Awards. Brought to you by ACG SV. >> Hi, Lisa Martin with the Cube on the ground at the Computer History Museum for the 15th annual ACG SV Awards. And in Mountain View California excited to welcome to the Cube for the first time, John Hennessy, the chairman of Alphabet and the co-founder of the Knight-Hennessy Scholars Program at Stanford. JOHN, it's truly a pleasure to have you on the Cube today. >> Well delighted to be here, Lisa. >> So I was doing some research on you. And I see Marc Andreessen has called you the godfather of Silicon Valley. >> Marc very generous (loughs) >> so I thought I was pretty cool I'm going to sit down with the godfather tonight. (loughs) >> I have not done that yet. So you are keynoting the 15th Annual ACG SV Awards tonight. Talk to us a little bit about the takeaways that the audience is going to hear from you tonight. >> Well, they're going to hear some things about leadership the importance of leadership, obviously the importance of innovation. We're in the middle of Silicon Valley innovation is a big thing. And the role that technology plays in our lives and how we should be thinking about that, and how do we ensure the technology is something that serves the public good. >> Definitely. So there's about I think over 230 attendees expected tonight over 100 sea levels, the ACG SV Is has been it's it's much more than a networking organization. there's a lot of opportunities for collaboration for community. Tell me a little bit about your experience with that from a collaboration standpoint? >> Well, I think collaboration is a critical ingredient. I mean, for so many years, you look at the collaboration is gone. Just take between between the universities, my own Stanford and Silicon Valley and how that collaboration has developed over time and lead the founding of great companies, but also collaboration within the valley. This is the place to be a technology person in the whole world it's the best place partly because of this collaboration, and this innovative spirit that really is a core part of what we are as a place. >> I agree. The innovative spirit is one of the things that I enjoy, about not only being in technology, but also living in Silicon Valley. You can't go to a Starbucks without hearing a conversation or many conversations about new startups or cloud technology. So the innovative spirit is pervasive here. And it's also one that I find in an in an environment like ASG SV. You just hear a lot of inspiring stories and I was doing some research on them in the last 18 months. Five CEO positions have been seated and materialized through ACG SV. Number of venture deals initiated several board positions. So a lot of opportunity in this group here tonight. >> Right, well I think that's important because so much of the leadership has got to come by recruiting new young people. And with the increase in concerned about diversity and our leadership core and our boards, I think building that network out and trying to stretch it a little bit from the from perhaps the old boys network of an earlier time in the Valley is absolutely crucial. >> Couldn't agree more. So let's now talk a little bit about the Knight-Hennessy Scholars Program at Stanford. Tell us a little bit about it. When was it founded? >> So we are we are in our very first year, actually, this year, our first year of scholars, we founded it in 2016. The motivation was, I think, an increasing gap we perceived in terms of the need for great leadership and what was available. And it was in government. It was in the nonprofit world, it was in the for profit world. So I being a lifelong educator said, What can we do about this? Let's try to recruit and develop a core of younger people who show that they're committed to the greater good and who are excellent, who are innovative, who are creative, and prepare them for leadership roles in the future. >> So you're looking for are these undergraduate students? >> They are graduate students, so they've completed their undergraduate, it's a little hard to tell when somebody's coming out of high school, what their civic commitment is, what their ability to lead is. But coming out of coming out of undergraduate experience, and often a few years of work experience, we can tell a lot more about whether somebody has the potential to be a future leader. >> So you said, found it just in 2016. And one of the things I saw that was very interesting is projecting in the next 50 years, there's going to be 5000 Knight-Hennessy scholars at various stages of their careers and government organizations, NGOs, as you mentioned, so looking out 50 years you have a strong vision there, but really expect this organization to be able to make a lasting impact. >> That's what our goal is lasting impact over decades, because people who go into leadership positions often take a decade or two to rise to that position. But that's what our investment is our investment is in the in the future. And when I went to Phil Knight who's my co-founder and donor, might lead donor to the program, he was enthusiastic. His view was that we had a we had a major gap in leadership. And we needed to begin training, we need to do multiple things. We need to do things like we're doing tonight. But we also need to think about that next younger generation is up and coming. >> Some terms of inspiring the next generation of innovative diversity thinkers. Talk to me about some of the things that this program is aimed at, in addition to just, you know, some of the knowledge about leadership, but really helping them understand this diverse nature in which we now all find ourselves living. >> So one of the things we do is we try to bring in leaders from all different walks of life to meet and have a conversation with our scholars. This morning, we had the UN High Commissioner for Human Rights in town, Michelle Bachelet, and she sat down and talked about how she thought about her role as addressing human rights, how to move things forward in very complex situations we face around the world with collapse of many governments and many human rights violations. And how do you how do you make that forward progress with a difficult problem? So that kind of exposure to leaders who are grappling with really difficult problems is a critical part of our program. >> And they're really seeing and experiencing real world situations? >> Absolutely. They're seeing them up close as they're really occurring. They see the challenges we had, we had Governor Brown and just before he went out of office here in California, to talk about criminal justice reform a major issue in California and around the country. And how do we make progress on that on that particular challenge? >> So you mentioned a couple of other leaders who the students I've had the opportunity to learn from and engage with, but you yourself are quite the established leader. You went to Stanford as a professor in 1977. You are a President Emeritus you were president of Stanford from 2000 to 2016. So these students also get the opportunity to learn from all that you have experienced as it as a professor of Computer Science, as well as in one of your current roles as chairman of Alphabet. Talk to us a little bit about just the massive changes that you have seen, not just in Silicon Valley, but in technology and innovation over the last 40 plus years. >> Well, it is simply amazing. When I arrived at Stanford, there was no internet. The ARPANET was in its young days, email was something that a bunch of engineers and scientists use to communicate, nobody else did. I still remember going and seeing the first demonstration of what would become Yahoo. Well, while David Filo and Jerry Yang had it set up in their office. And the thing that immediately convinced me Lisa was they showed me that their favorite Pizza Parlor would now allow orders to go online. And when I saw that I said, the World Wide Web is not just about a bunch of scientists and engineers exchanging information. It's going to change our lives and it did. And we've seen wave after wave that with Google and Facebook, social media rise. And now the rise of AI I mean this this is a transformative technology as big as anything I think we've ever seen. In terms of its potential impact. >> It is AI is so transformative. I was I was in Hawaii recently on vacation and Barracuda Networks was actually advertising about AI in Hawaii and I thought that's interesting that the people that are coming to to Hawaii on vacation, presumably, people have you know, many generations who now have AI as a common household word may not understand the massive implications and opportunities that it provides. But it is becoming pervasive at every event we're at at the Cube and there's a lot of opportunity there. It's it's a very exciting subject. Last question for you. You mentioned that this that the Knight-Hennessy Scholars Program is really aimed towards graduate students. What is your advice to those BB stem kids in high school right now who are watching this saying, oh, John, what, what? How do you advise me to be able to eventually get into a program like this? >> Well, I think it begins by really finding your passion, finding something you're really dedicated to pushing yourself challenging yourself, showing that you can do great things with it. And then thinking about the bigger role you want to have with technology. In the after all, technology is not an end in itself. It's a tool to make human lives better and that's the sort of person we're looking for in the knight-Hennessy Scholars Program, >> Best advice you've ever gotten. >> Best advice ever gotten is remember that leadership is about service to the people in the institution you lead. >> It's fantastic not about about yourself but really about service to those. >> About service to others >> JOHN, it's been a pleasure having you on the Cube tonight we wish you the best of luck in your keynote at the 15th annual ACG SV Awards and we thank you for your time. >> Thank you, Lisa. I've enjoyed it. Lisa Martin, you're watching the Cube on the ground. Thanks for watching. (upbeat tech music)

(upbeat techno 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 the co-host on theCUBE, founder of SiliconANGLE Media. We are here at Sand Hill Road, at Mayfield for the 50th anniversary celebration and content series called The People First Network. This is a co-developed program. We're going to bring thought leaders, inspirational entrepreneurs and tech executives to talk about their experience and their journey around a people first society. This is the focus of entrepreneurship these days. I'm here with Navin Chaddha who's the managing director of Mayfield. Navin, you're kicking off the program. Tell us, why the program? Why People First Network? Is this a cultural thing? Is this part of a program? What's the rationale? What's the message? >> Yeah, first of all I want to thank, John, you and your team and theCUBE for co-hosting the People First Network with us. It's been a real delight working with you. Shifting to people first, Mayfield has had a long standing philosophy that people build companies and it's not the other way around. We believe in betting on great people because even if their initial idea doesn't pan out, they'll quickly pivot to find the right market opportunity. Similarly we believe when the times get tough it's our responsibility to stand behind people and the purpose of this People First Network is people like me were extremely lucky to have mentors along the way, when I was an entrepreneur and now as a venture capitalist, who are helping me achieve my dreams. Mayfield and me want to give back to other entrepreneurs, by bringing in people who are luminaries in their own fields to share their learnings with other entrepreneurs. >> This is a really great opportunity and I want to thank you guys for helping us put this together with you guys. It's a great co-creation. The observation that we're seeing in Silicon Valley and certainly in talking to some of the guests we've already interviewed and that will be coming up on the program, is the spirit of community and the culture of innovation is around the ecosystem of Silicon Valley. This has been the bedrock. >> Mm-hmm. >> Of Silicon Valley, Mayfield, one of the earliest if not the first handful of venture firms. >> Mm-hmm. >> Hanging around Stanford, doing entrepreneurship, this is a people culture in Silicon Valley and this is now going global. >> Mm-hmm. >> So great opportunity. What can we expect to see from some of the interviews? What are you looking for and what's the hope? >> Yeah, so I think what you're going to see from the interviews is, we are trying to bring around 20 plus people, and they'll be many John on the interview besides you. So there will be John Chambers, ex-chairman and CEO of Cisco. There'll be John Zimmer, president and co founder of Lyft. And there also will be John Hennessy who will be our first interview, with him, from Stanford University. And jokes apart, there'll be like 20 plus other people who will be part of this network. So I think what you're going to see is, goings always don't go great. There's a lot of learnings that happen when things don't work out. And our hope is, when these luminaries from their professions, share their learnings the entrepreneurs will benefit from it. As we all know, being an entrepreneur is hard. But sometimes, and many times, actually it's also a lonely road and our belief is, and I strongly personally also believe in it, that great entrepreneurs believe in continuous learning and are continuously adapting themselves to succeed. So our hope is, this People First Network serves as a learning opportunity from entrepreneurs to learn from great leaders. >> You said a few things I really admire about Mayfield and I want to get your reaction because I think is a fundamental for society. Building durable companies is about the long game because people fail and people succeed but they always move on. >> Mm-hmm. >> They move on to another opportunity. They move on to another pursuit. >> Mm-hmm. >> And this pay it forward culture has been a key thing for Silicon Valley. >> It absolutely has been. >> What's the inspiration behind it, from your perspective? You mentioned your experiences. Tell us a story and experience you've had? >> Yeah, so I would say, first of all, right, since we strongly believe people make products and products don't make people, we believe venture capital and entrepreneurship is about like running a marathon, it's not a sprint. So if you take a longterm view, have a strong vision and mission which is supported with great beliefs and values? You can do wonders. And our whole aim, not only as Mayfield but other venture capitalists, is to build iconic companies which are built to last which beyond creating jobs and economic wealth, can give back to the society and make the world a better place to work, live and play. >> You know one of the things that we are passionate about at theCUBE, and on SiliconANGLE Media is standing by our community. >> Mm-hmm. >> Because people do move around and I think one of the things that is key in venture capital now, than ever before is not looking for the quick hit. >> Mm-hmm. >> It's standing by your companies in good times and in bad. >> Mm-hmm. >> Because this is about people and you don't know how things might turn out, how a company might end up in a different place. We've heard some of your entrepreneurs talk about that, that the outcome was not how they envisioned it when they started. >> Mm-hmm. >> This is a key mindset for a business. >> It absolutely is, right? Let's look at a few examples. One of our most successful companies is Lyft. When we backed it at Series A, it was called Zimride. They weren't doing what they were doing, but the company had a strong vision and mission of changing the way people transport and given that, they were A plus people, as I mentioned earlier. The initial idea wasn't going to be a massive opportunity. They quickly pivoted to go after the right market opportunity. And hence, again and again, right? Like to me, it's all about the people. >> Navigating those boards is sometimes challenging and we hope that this content will help people, inspire people, help them discover their passion, discover people that they might want to work with. We really appreciate your support and thank you for contributing your network and your brand and your team in supporting our mission. >> Yeah, it's been an absolute pleasure and we hope the viewers and especially entrepreneurs can learn from the journeys of many iconic people who have built great things in their careers. >> Were here at Sand Hill Road, at Mayfield's venture capital headquarters in sunny Silicon Valley, California, Stanford, California, Palo Alto California, all one big melting pot of innovation. I'm here with John Hennessy, who's the Stanford President Emeritus, also the director of the Knight Hennessy Scholarship. Thanks for joining me today for this conversation. >> Delighted to be here, John. >> So I wanted to get your thoughts on the history of the valley. Obviously, Mayfield, celebrating their 50th anniversary and Mayfield was one of those early venture capital firms that kind of hung around the barbershop, looking for a haircut. Stanford University was that place. Early on this was the innovation spark that created the valley. A lot of other early VCs as well, but not that many in the early days and now 50 years later, so much has changed. What's your thoughts on the arc of entrepreneurship around Stanford, around Silicon Valley? >> Well, you're right, it's been an explosive force. I mean, I think there were a few companies out here on Sand Hill Road at that time. Now nearly the number of venture firms there are today. But I think the biggest change has been the kinds of technologies we build. You know, in those days, we built technologies that were primarily for other engineers or perhaps they were tandem computers being built for business interest. Now we build technologies that change people's lives, every single day and the impact on the world is so much larger than it was and these companies have grown incredibly fast. I mean, you look at the growth rate? We had the stars of the earlier compared to the Googles and Facebooks of today, it's small growth rates, so those are big changes. >> I'm excited to talk with you, because you're one of the only people that I can think of that has seen so many different waves of innovation. You've been involved in many of them yourself, one of the co-founders of MIPS, chairman of the board of Alphabet, which is Google, Google's holding company, the large holdings they have and just Stanford in general has been, you know, now with CAL, kind of the catalyst for a lot of the change. What's interesting is, you know, the Hewlett-Packards, the birthplace of Silicon Valley, that durable company view. >> Mm-hmm. >> Of how to build a company and the people that are involved is really a, still, essential part of it. Certainly happening faster, differently. When you look at the waves of innovation, is there anything that you could look at and say, hey, this is the consistent pattern that we see emerging of these waves? Is it a classic formula of engineers getting together trying to solve problems? Is it the Stanford drop out PH.d program? Is there a playbook? Is there a pattern that you see in the entrepreneurship over the years? >> You know, I think there are these waves that are often induced by big technology changes, right? The beginning of the personal computer. The beginning of the internet. The world wide web, social media. The other observation is that it's very hard to predict what the next one will be. (laughing) If it was easier to predict, there would be one big company, rather than lots of companies riding each one of these waves. The other thing I think that's fascinating about them is these waves don't create just one company. They create a whole new microcosm of companies around that technology which exploit it and bring it to the people and change people's lives with it. >> And another thing is interesting about that point is that even the failures have DNA. You see people, big venture backed company, I think Go is a great example, you think about those kinds of companies. The early work on mobile computing, the early work on processors that you were involved in MIPS. >> Mm-hmm. >> They become successful and/or may/may not have the outcomes but the people move on to other companies to either start companies. This is a nice flywheel, this is one of the things that Silicon Valley has enjoyed over the years. >> Yeah, and just look at the history of RISC technology that I was involved in. We initially thought it would take over the general purpose computing industry and I think Intel responded in an incredible way and eventually reduced the advantage. Now here we are 30 years later and 95%/98% of the processors in the world are RISC because of the rise of mobile, internet of things, dramatically changing where the processors were. >> Yeah. >> They're not on the desktop anymore, they're scattered around in very different ways. >> It's interesting, I was having a conversation with Andy Kessler, who used to be an analyst back at the time for Morgan Stanley. He then became an investor. And he was talking about, with me, the DRAM days when the Japanese were dumping DRAMs and then that was low margin business, and then Intel said, "Hey, no problem. "We'll let go of the DRAM business." but they created Pentium and then the micro processor. >> Right. >> That spawned a whole nother wave, so you see the global economy today, you see China, you see people manufacturing things at very low cost, Apple does work out there. What's your view and reaction to the global landscape? Because certainly things are changed a bit but it seems to be some of the same? What's your thoughts on the global landscape and the impact of entrepreneurs? >> It certainly is global. I mean, I think in two ways. First of all, supply chains have become completely global. Look at how many companies in the valley rely on TSMC as their primary source of silicon? It's a giant engine for the valley. But we also see, increasingly, even in young companies a kind of global, distributed engineering scheme where they'll have a group in Taiwan, or in China or in India that'll be doing part of the engineering work and they're basically outsourcing some of that and balancing their costs and bringing in other talent that might be very hard to hire right now in the valley or very expensive in the valley. And I think that's exciting to see. >> The future of Silicon Valley is interesting because you have a lot of the fast pace, it seems like ventures have shrink down in terms of the acceleration of the classic building blocks of how to get a company started. You get some funding, engineers build a product, they get a prototype, they get it out. Now it seems to be condensed. You'll see valuations of a billion dollars. Can Silicon Valley survive the current pace given the real estate prices and some of the transportation challenges? What's your view on the future of Silicon Valley? >> Well my view is there is no place like the valley. The interaction between great universities, Stanford and Cal, UCSF if you're interested in biomedical innovation and the companies makes it just a microcosm of innovation and excellence. It's challenges, if it doesn't solve it's problems on housing and transportation, it will eventually cause a second Silicon Valley to rise and challenge it and I think that's really up to us to solve and I think we're going to have to, the great leaders, the great companies in the valley are going to have to take a leadership role working with the local governments to solve that problem. >> On the Silicon Valley vision of replicating it, I've seen many people try, other regions try over the years and over the 20 years, my observation is, they kind of get it right on paper but kind of fail in the execution. It's complicated but it's nuanced in a lot of ways but now we're seeing with remote working and the future of work changing a little bit differently and all kinds of new tech from block chain to, you name it, remote working. >> Right. >> That it might be a perfect storm now to actually have a formula to replicate Silicon Valley. If you were advising folks to say, hey, if you want to replicate Silicon Valley, what would be your advice to people? >> Well you got to start with the weather. (laughing) Always a challenge to replicate that. But then the other pieces, right? Some great universities, an ecosystem that supports risk taking and smart failure. One of the great things about the valley is, you're a young engineer/computer scientist graduating, you come here. You go to a start up company, so what it fails? There's 10 other companies you can get a job with. So there's a sense of this is a really exciting place to be, that kind of innovation. Creating that, replicating that ecosystem, I think and getting all the pieces together is going to be the challenge and I think the area that does that will have a chance at building something that could eventually be a real contestant for the second Silicon Valley. >> And I think the ecosystem and community is the key word. >> And community, absolutely. >> So I'll get your thoughts on your journey. Take us through your journey. MIPS co-founder, life at Stanford, now with the Knights Scholarship Program that you're involved in, the Knight Hennessy Scholarship. What lessons have you learned from each kind of big sequence of your life? Obviously in the start up days. Take us through some of the learnings. >> Yeah. >> Whether it's the scar tissue or the success, you know? >> Well, no, the time I spent starting MIPS and I took a leave for about 18 months full-time from the university, but I stayed involved after that on a part time basis but that 18 months was an intensive learning experience because I was an engineer. I knew a lot about the technology we're building, I didn't know anything about starting a company. And I had to go through all kinds of things, you know? Determining who to hire for CEO. Whether or not the CEO would be able to scale with the company. We had to do a layoff when we almost ran out of cash and that was a grueling experience but I learned how to get through that and that was a lesson when I came back to return to the university, to really use those lessons from the valley, they were invaluable. I also became a much better teacher, because here I had actually built something in industry and after all, most of our students are going to build things, they're not going to become future academics. So I went back and reengaged with the university and started taking on a variety of leadership roles there. Which was a wonderful experience. I never thought I'd be university president, not in a million years would I have told you that was, and it wasn't my goal. It was sort of the proverbial frog in the pot of water and the temperature keeps going up and then you're cooking before you know it. >> Well one of the things you did I thought was interesting during your time in the 90's as the head of the computer science department is a lot of that Stanford innovation started to come out with the internet and you had Yahoo, you had Google, you had PH.ds and you guys were okay with people dropping out, coming back in. >> Yeah. >> So you had this culture of building? >> Yup. >> Tell us some of the stories there, I mean Yahoo was a server under the desk and the web exploded. >> Yeah, it was a server under the desk. In fact, Dave and Jerry's office was in a trailer and you go into their room and they'd have pizza boxes and Coke cans stacked around because Yahoo use was exploding and they were trying to build this portal out to serve this growing community of users. Their machine was called Akebono because they were both big sumo wrestling fans. Then eventually, the university had to say, "You guys need to move this off campus "because it's generating 3/4 of the internet traffic "at the university and we can't afford it." (laughing) So they moved off campus and of course figured out how to use advertising as a monetization model. And that changed a lot of things on the internet because that made it possible for Google to come along years later. Redo search in a way that lots of us thought, there's nothing left to do in search, there's just not a lot there. But Larry and Sergey came up with a much better search algorithm. >> Talk about the culture that you guys fostered there because this, I think, is notable, in my mind, as well as some of the things I want to get into about the interdisciplinary. But at that time, you guys fostered a culture of creating and taking things out and there was an investment group of folks around Stanford. Was it a policy? Was it more laid back? >> No, I think-- >> Take us through some of the cultural issues. >> It was a notion of what really matters in the world. How do you get impact? Because in the end that's what the university really wants to do. Some people will do impact by publishing a paper or a book but some technologies, the real impact will occur when you take it out into the real world. And that was a vision that a lot of us had, dating back to Hewlett-Packard, of course but Jim Clark at Silicon Graphics, the Cisco work, MIPS and then, of course, Yahoo and Google years later. That was something that was supported by both the leadership of the university and that made it much easier for people to go out and take their work and take it out to the world. >> Well thank you for doing that, because I think the impact has been amazing and had transcended a lot of society today. You're seeing some challenges now with society. Now we have our own problems. (laughing) The impact has been massive but now lives are being changed. You're seeing technology better lives so it's changing the educational system. It's also changing how people are doing work. Talk about your current role right now with the Knight Hennessy Scholarship. What is that structured like and how are you shaping that? What's the vision? >> Well our vision, I became concerned as I was getting ready to leave the president's office that we, as a human society, were failing to develop the kinds of leaders that we needed. It seemed to me it was true in government. It was true in the corporate world. It was even true in some parts of the nonprofit world. And we needed to step back and say, how do we generate a new community of young leaders who are going to go out, determined to do the right thing, who see their role as service to society? And their success aligned with the success of others? We put together a small program. We put together a vision of this. I got support from the trustees. I went to ask my good friend Phil Knight, talked to him about it, and I said, "Phil I have this great idea," and I explained it to him and he said, "That's terrific." So I said, "Phil I need 400 million dollars." (laughing) A month later he said, "Yes," and we were off and running. Now we've got 50 truly extraordinary scholars from around the world, 21 different birth countries. Really, some of them have already started nonprofits that are making a big difference in their home communities. Others will do it in the future. >> What are some of the things they're working on? And how did you guys roll this out? Because, obviously, getting the funding's key but now you got to execute. What are some of the things that you went through? How did you recruit? How did you deploy? How did you get it up and running? >> We recruited by going out to universities around the world, and meeting with them and, of course, using social media as well. If you want get 21 year and 22 year olds to apply? Go to social media. So that gave us a feed on some students and then we thought a lot, our goal is to educate people who will be leaders in all walks of life. So we have MBAs, we have MDs, we have PH.ds, we have JDs. >> Yeah. >> A broad cohort of people, build a community. Build a community that will last far beyond their time at Stanford so they have a connection to a community of like minded individuals long after they graduate and then try to build their leadership skills. Bringing in people who they can meet with and hear from. George Schultz is coming in on Thursday night to talk about his journey through government service in four different cabinet positions and how did he address some of the challenges that he encountered. Build up their speaking skills and their ability to collaborate with others. And hopefully, these are great people. >> Yeah. >> We just hope to push their trajectory a little higher. >> One of the things I want you is that when Steve Jobs gave his commencement speech at Stanford, which is up on YouTube, it's got zillions and zillions of views, before he passed away, that has become kind of a famous call to arms for a lot of young people. A lot of parents, I have four kids and the question always comes up, how do I get into Stanford? But the question I want to ask you is more of, as you have the program, and you look for these future leaders, what advice would you give? Because we're seeing a lot of people saying, hey you know people build their resume, they say what they think people want to hear to get into a school, you know Steve Job's point said, "Follow your passion, don't live other people's dogma" these are some of the themes that he shared during that famous commencement speech in Stanford. Your advice for the next generation of leaders? How should they develop their skills? What are some of the things that they can acquire? Steve Jobs was famous to say in interviews, "What have you built?" >> Yeah. >> "Tell me something that you've built." It's kind of a qualifying question. So this brings up the question of, how should young people develop? How should they think about, not just applying and getting in but being a candidate for some of these programs? >> Well I think the first thing is you really want to challenge yourself. You really want to engage your intellectual passions. Find something you really like to do. Find something that you're also good at because that's the thing that'll get you out of bed on weekends early, and you'll go do it. I mean, if you asked me about my career? And asked me about my number one hobby for most of my career? It was my career. I loved being a professor. I loved research, I love teaching. That made it very easy to do it with energy and excitement and passion. You know there's a great quote in Steve Job's commencement speech where he says, "I look in the mirror every morning "and if too many days in a row I find out "I don't like what I'm going to do that day, "it's time for a change." Well I think it's that commitment to something. It's that belief in something that's bigger than yourself, that's about a journey that you're going to go on with others in that leadership role. >> I want to get your thoughts on the future for young people and society and business. It's very people centric now. You're seeing a lot of the younger generation look for mission driven ventures, they want to make a difference. But there's a lot of skills out there that are not yet born, yet. There's jobs that haven't been invented yet. Who handles autonomous vehicles? What's the policy? These are societal and technology questions. What are some of things that you see that are important to focus on for some of these new skills? There's a zillion new cyber security jobs open, for instance. >> Right. I mean there's thousands and thousands of openings for people that don't have those skills. >> Well I think we're going to need two different types of people. The traditional techno experts that we've always had but we're also going to need people that have a deep understanding of technology but are deeply committed to understanding it's impact on people. One of the problems we're going to have with the rise of artificial intelligence is we're going to have job displacements. In the longterm, I'm a believer that the number of opportunities created will exceed those that get destroyed but there'll be a lot of jobs that are deskilled or actually eliminated. How are we going to help educate that cohort of people and minimize the disruption of this technology? Because that disruption is really people's live that you're playing with. >> It's interesting, the old expression of ATMs will kill the bank branch but yet, now there's more bank branches than ever before. >> Than ever before, right? >> So, I think you're right on that, I think there'll be new opportunities. Entrepreneurship certainly is changing and I want to get your thoughts. This is the number one question I get from young entrepreneurs is, how should I raise money? How should I leverage money investors and my board? As you build your early foundational successes whether you're an engineer or a team, putting that E team together, entrepreneurial team is critical and that's just not people around the table of the venture. >> Correct. >> It's the support service providers and advisors and board of directors. How should they leverage their investors and board? How should they leverage that resource and not make it contentious, make it positive? >> Make is positive, right? So the best boards are collaborative with the management team, they work together to try to move the company forward. With so many angels now investing in these young companies there's an opportunity to bring in experience from somebody who's already had a successful entrepreneurial venture and looking for really deciding who do you want your investor to be? And it's not just about who gives you the highest valuation. It's also about who'll be there when things get tough? When the cash squeeze occurs and you're about to run out of money and you're really in a difficult situation? Who will help you build out the rest of your management team? Lots of young entrepreneurs, they're excited about their technology. >> Yeah. >> They don't have any management experience. (laughing) They need help. >> Yeah. >> They need help building that team and finding the right people for the company to be successful. >> I want to get thoughts on Mayfield. The 50th anniversary, obviously, they've been around longer than me, I'm going to be 53 this year. I remember when I first pitched Yogan DeGaulle in 1990, my first venture, he passed, but, Mayfield's been around for a while. I mean, Mayfield was the name of the town around here? >> Right. >> And has a lot of history. How do you see the relationship with the ventures and Stanford evolving? Are they still solid? They're doing well? Is it evolved? There's a new program going on? I see much more integration. What's the future of venture? >> Well I think the university's still a source of many ideas, obviously the notion of entrepreneurship has spread much more broadly than the university. And lots of creative start ups are spun out of existing companies or a group of young entrepreneurs that were in Google or Facebook early and now decide they want to go do their own thing. That's certainly happens but I think that ongoing innovation cycle is still alive. It's still dependent on the venture community and their experience having built companies. Particularly when you're talking about first time entrepreneurs. >> Yeah. >> Who really don't have a lot of depth. >> My final question I want to ask you is obviously one relating, pure to my heart, is computer science. I got my degree in the 80's during the systems revolution. Fun time, a lots changed. Women in computer science, the surface area of what computer science is. >> Mm-hmm. >> It was interesting, there was a story in Bloomberg that was debunked but people were debating if the super micros was being hacked by a chip in the system. >> Right. >> And more people don't even know what computer architecture is, I was like, hey now, the drivers might able to inject malware. So you need computer architecture, a book you've written. >> Mm-hmm. >> Academically, to programming so the range of computer science has changed. The diversity has changed. What's your thoughts on the current computer science curriculums? The global programs? Where's it going and what's your perspective on that? >> So I think computer science has changed dramatically. When I was a graduate student, you could arguably take a full set of breadth courses across the discipline. Maybe only one course in AI or one course in data base if you were a hardware or systems person but you could do everything. I could go to basically any Ph.d defense and understand what was going on. No more, the field has just exploded. And the impact? I mean you have people who do bio computation, for example, and you have to understand a lot of biology in order to understand how computer science applies to that. So that's the excitement. The excitement of having computer science have this broad impact. The other thing that's exciting is to see more women, more people of color, coming into the field, really injecting new energy and new perspective into the field and I think that will stand the discipline well in the future. >> And open source has been growing. I mean if you think about what it's like now to write software, all this goodness coming in with open source, it just adds over the top. >> Yeah. >> More goodness. >> I think today a, even a young undergraduate, writing in Python, using all these open libraries, could write more code in two weeks than I could have written in a year when I was graduate student. >> If we were 21 together, sitting here you and I, today, we're 21 years old, what would we do? What would you do? >> Well I think the opportunity created by the rise of machine learning and artificial intelligence is just unrivaled. This is a technology which we have invested in for 50 or 60 years, that was disappointing us for 50 or 60 years, in terms of not meeting it's projections and then, all of a sudden, turning point. It was a radical breakthrough and we're still at the very beginning of that radical breakthrough so I think it's going to be a really exciting time. >> Diane Green had a great quote at her last Google Cloud conference. She said, "It's like butter, everything's great with it." (laughing) AI is the-- >> Yeah, it's great with it. And of course, it can be overstated but I think there really is a fundamental breakthrough in terms of how we use the technology. Driven, of course, by the amount of data available for training these neural networks and far more computational resources than we ever thought we'd have. >> John it's been a great pleasure. Thanks for spending the time with us here for our People First interview, appreciate it. >> My pleasure, John. >> I'm John Furrier with theCUBE, we are here in Sand Hill Road for the People First program, thanks for watching. (upbeat techno music)

>> From Palo Alto, California, it's theCUBE. Covering VMware Women Transforming Technology 2019. Brought to you by VMware. >> Hi, Lisa Martin on the ground with theCUBE at the fourth annual Women Transforming Technology event VMware, WT squared, one of my favorite events and I'm joined by two PhDs, both from, I'm going to say this one time, the Stanford VMware Women's Leadership Innovation Lab, we've got Shannon Gilmartin, senior research scholar. Hi, Shannon. >> Hi, great to be here. >> And we've got, great to have you, we've got Caroline Simard, managing director of the lab. Ladies, thank you so much for joining. >> Thank you, it's a pleasure to be here. >> So this event, we were talking about before we started, that you, walk into the keynote, opening keynote which in and of itself was electric but the energy that comes into the room with, VMware was telling me a little while ago, about 1500 live attendees. >> Incredible. >> Not even including those that were watching the livestream. The energy comes into the room and then, of course, this morning with Joy, I'm going to try to say her name, Buolamwini. The poet of code, the MIT researcher who started really, sharing with us the significant biases in AI. The energy, if it could even be down that more, I can't even imagine it, so. I can imagine the panel that you guys were on this morning was quite charged. The panel title was, I found interesting, Inclusive Innovators Designing For Change. So Caroline, talk to us about designing for change. You look through a design lens, what does that mean? >> Yeah, so I think what, to frame the morning, and then Shannon was the moderator, so I want, she picked the topic of design. But I think what Joy really showed is the power that is possible to realize when women and women of color and people from different dimensions of identity are included in creating technology and how much better technology will be for society, right? If all voices are included, and I would also say that some of her comments also make it clear that it is fundamentally irresponsible not to have diversity at the table in designing the technology of tomorrow. The consequences on different kinds of people and different populations are significant. And so this is why Shannon really picked this idea of, as engineers and designers and creators of this technology, how do you keep in mind the responsibility that you have? >> So yeah, talk to us more about the design and why that is so critical. >> And the way we positioned it for our panelists, it was titled Inclusive Innovators Designing For Change, and we were going to explore how meaningful change towards greater diversity and equity is realized in engineering cultures. And in the very technology that's being created. More specifically though, how do individuals and communities of people design for change in their technical environments? Even when this environment may not be initially very receptive to new ways of interacting. To new ways of thinking, to new ways of achieving. And so the whole panel was premised on this idea of people are designers of change in their environments. How does that happen? How do people interface with barriers to those design processes? And what is advice for the younger generation as they look ahead to their pathways as designers for change? >> Yeah, 'cause change in any context of life is hard. >> Yep. >> Yes. >> Right, it's an uphill battle. But designing for that change, I'm curious what some of the commentary was from the panelists about, when you're encountering, whether it's a company or a leadership group within a company that, to your point, isn't receptive, what were some of the comments or stories of how that was changed over time to become receptive and understand, the massive potential that that change can have? I mean we look at numbers like, companies with women on the leadership communities are far more profitable, so what were some of those, from, I don't get it, to, oh my gosh, why aren't we doing sooner? >> And we have this amazing range of perspectives represented on the panel, so we had a VMware CTO, chief technology officer Ray O'Farrell. And he was really talking about from a leader perspective, a key idea here when there are barriers and blocks and inertia, is to open things up and really start listening. And this is a skill and a talent and a group practice that is so little done, so infrequently done. So poorly done, sometimes. But really key in the face of those barriers is to actually say, instead of shutting down, open up and start listening to what's happening. Another one of our panelists, Susan Fowler who is the Time Magazine Person of the Year as one of the silence breakers in 2017, she was really talking about how, expect the steps, you're going to need to go through a lot of steps to make your voice heard. And ultimately, for Susan, she made the decision to go public with what she had encountered and was facing and grappling with and struggling, as were many of her colleagues. But she was really talking about the step by step process that's involved in a large organization, when you're hitting blocks, you just got to keep on fighting that good fight, and you also need to be doing your very best work at the same time, it's a high pressure situation. >> Yeah, absolutely. >> So. >> Absolutely, we also heard from Lisa Gelobter who is the CEO of tEQuitable, an organization that's creating a safe place for change agents to share their stories when they're encountering these blocks and this kind of unfair treatment. And she talked about, also, the need to do your best work but also the critical importance of community in being more resilient as you're trying drive change in your environment, right? And this is the kind of community that is being built today with this event, right? It's really paying attention especially for her, as a black woman engineer, being the only one constantly at the table fighting for change has been something that she has realized she needs to pay a lot of attention to so that she can be much more resilient as a leader for longterm change. Another topic that I think, in terms of generating change, that really came through both in the panel and during this morning's keynote, and that we pay a lot of attention to at the lab, is to really highlight bias. Is to really diagnose what is really happening in organizations? Or in AI, as we heard from Joy this morning. So a lot of people genuinely aspire to treat others fairly, right? But they don't realize that their workplaces are so far from being a meritocracy, that there's these structural inequalities that are really embedded in all of the ways that people are working. And so when you're able to show people exactly how it shows up in their company, right? The promotion rates for women of color for example, being lower than for other people, the exact points of data that they need to see, that they're not treating people the same way and creating the same kind of pathways for impact for different kinds of people, then that has a lot of power to drive change because a lot of people, then, will be very motivated to say, okay, I see this is happening in my org every day. Now I can design a different approach, right? How do I redesign the way I'm working today? In my units. >> And take action. >> And take action. >> 'Cause you actually have the data, it's such a dichotomy at times, that we have, we're surrounded by data especially in Silicon Valley. But one of the things that shocked me, what Joy showed this morning is, when she put on blast, IBM, Microsoft, and what was it, Face++, about looking at all of the built in biases to facial recognition. But, one of the things that really also, I thought, was interesting, was that, she went and showed this to these companies, who responded, and those numbers are actually improving. And then when she said, hey Amazon, so, the fact that even that one person is able to show, look at some of the massive problems that you're training these models to have, they need to be able to see that. So the highlight, I think, the highlight the bias, and the communicate, communicate, communicate and listen, are three critical elements to any place being successful. >> Exactly. >> Exactly. One additional part of both Joy's presentation and Lisa's comments too, really spoke to action needing to take an intersectional approach. So Joy's data breaks it down by race and gender and all of a sudden, you see completely different trends. Lisa spoke to that as well in her comments. Key to this designing for change process is really wearing the hat of someone who is looking through the world with an intersectional lens. And understanding how different axes operate together uniquely for different groups. And that's when you see these biases being highlighted really in full force, in full relief. So both of these points and these presentations really brought that up. >> Yeah and the intersectionality that Joy talked about was even evident and you could parallel it to, why it was important to look at all these different sources of facial recognition data, how disparate some of them were. >> Right, right. >> I know. >> Without that lens you couldn't see all of that variation even across the different providers. >> Exactly. >> Yeah, and she talked, too, about how everything is classified in a binary way, right? In terms of gender identity, and then where data doesn't even see people who are Non-Binary. >> Exactly. >> So it's like, >> That's still a huge omission >> again, exactly. That we have a lot more work to do to have data that truly captures all the dimensions we're interested in. >> It does, it does. Long way to go, but the fact that it's being highlighted and opportunities like, not just what VMware does but the lab as well. So let's talk a little bit about the lab. It kind of got its start in 2013 when then Stanford president Doctor John Hennessy, provided some funding. I had the opportunity to interview him last week, lovely man. Last year VMware did a big endowment of about 15 million. What's going on, Caroline, we'll start with you, what's going on at the lab? What are you guys studying now? What are some of the breakthroughs that have been uncovered in the last 12 months? >> Yeah, so a big part of our lab's work and since we began this work, has been to really bridge the gap between research and practice, right? And so a lot of why there's little progress being made is because you have a lot of research happening in the academy, in the ivory tower, if you will. And then you have a lot of innovative practices being tested but without necessarily the research foundation and the research frameworks to truly evaluate it. And so, our work has been to really bridge those two things together. And explore those boundaries so we can have more innovative research but also more evidence based practices come in, right? And since the VMware endowment we've been able to, really grow in our aspirations in the kind of data, in the kind of research questions that we can really ask. One of them is this focus on the more intersectional, longterm study of really documenting the experience of women of color. And really understanding the nature of their career pathways across racial dimensions, right? And really highlighting a lot more of, qualitative deep insight, generate their stories, right? And really centering their experience. The other one is, investing in large scale datasets that capture gender, race, age, and other identity dimensions and look at their longterm career trajectories. This is actually work that Shannon is leading. So we have an exciting dataset where we have people through five years and we see what happens to them, who gets promoted? Who doesn't? Who gets top talent designation, who gets a salary increase? Who, and then we're excitingly, looking at social network data, so who's meeting with who? And then what kind of connections do you need to be able to advance in your career? And are there some systematic inequalities there, right? And a big part of our work then is to design these interventions where we work with companies to test what we call a small wins approach. It always starts with diagnosis, here's what's going on in your very specific workplace and your culture. And then we co-design with leaders and managers. It doesn't work for us or HR or anybody to say, go do this, or you should do this. It's really about really engaging managers who want to do better in coming up with the design fix, if you will, that they can come up with. Informed by our research, so it's a co-design process. And then we roll it out and we test the outcomes pre and post, so. We're doing a lot more work now to disseminate what we're learning through these interventions so that other organizations can implement this very similar approach. >> First I love that it's called an intervention. 'Cause I think that's incredibly appropriate. (Shannon and Caroline laughing) Second, are you seeing an uptick in the last year of companies, obviously VMware and Dell being two great companies that are very focused on, not just women in technology, but I loved how Joy said today, it's women and people of color are the underrepresented majority. Are you seeing an uptick in companies willing to, accept the intervention and collaborate with you to really design from within for that change? >> Yes absolutely. And I would say that in this industry people are comfortable with piloting things and doing a little R and D experiment, right? So it's also a culturally appropriate way of thinking, okay, what if we try this, and see what happens? And so I see a lot of energy from organizations and based on what you were talking about, it's also, I think companies are aware that it's, the overlapping dimensions of identity increasingly aware, are within their own walls, but then, in their consumer base, right? So how is their product affecting different kinds of people? Are their customers experiencing bias from the very platforms that they build? And so I think that's also a very powerful, entryway into this intersectional conversation because, the product is, so foundational to the business of the company. >> It is, and especially event after event that we cover on theCUBE, customer experience in any industry, is critical because as consumers of whatever it is, we have so much choice. Shannon last question for you. One of the things that always interests me is the attrition rate being so high in technology. I'm curious what you guys are finding in the lab with, mentioning following women on maybe their first five years. Are you seeing any glaringly obvious, challenges that are driving that attrition? Is it, it's got to be more than the motherhood penalty. >> Right, right. We're looking at a range of, what we call pathway outcomes really for young people just starting out in their very first, second jobs, where they are several years later, we're looking at odds of promotion, odds of leaving the company, odds of moving and making a lateral move into some other kind of line of business, maybe taking them out of, let's say, a technical role and moving them into a non technical role. Each and every one of those critical moments is worthy of deeper study for us. And what we're doing, really, is taking this intersectional lens and understanding how do those different moments vary for different groups of women? It's not enough just to say, all women have some x percentage of an attrition rate. We're trying to understand how attrition really varies by sub-groups of women. And how that varies over time with what interactions that precede it and then follow. One of the themes that we've really been looking at in, for instance, attrition stories, is the assignment. Which projects, what kinds of assignments are people getting in their first few years on the job? How are some of those make or break? With what net consequence for women, men, from different racial ethnic backgrounds, different ages, different countries? And understanding, really, the role of those assignments in someone's longer term career pathway, just how important they are. And what kinds of interventions we can hand design to really elevate access to the best assignments for everyone, basically. >> Gosh, you guys, this is so fascinating and so inspiring what you're doing at the lab I wish we had more time, but you'll have to come back next year! >> Exactly. >> Absolutely we will thank you so much for having us. >> Thank you so much, Lisa. >> Thank you. >> Thank you. >> Thank you so much. For theCUBE I'm Lisa Martin, on the ground at WT squared, thanks for watching. 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>> From Sand Hill Road in the heart of Silicon Valley, it's theCUBE, presenting the People First Network, insights from entrepreneurs and tech leaders. (techno music) >> Hello everyone, I'm John Furrier, the co-host of theCUBE, founder of SiliconANGLE Media. We are here at Sand Hill Road at Mayfield for the 50th anniversary celebration and content series called the People First Network. This is a co-developed program where we're going to bring thought leaders, inspirational entrepreneurs, and tech executives to talk about their experiences and their journey around a people first society. This is the focus of entrepreneurship these days. I'm here with Navin Chaddha who's the managing director of Mayfield. Navin, we're kicking off the program. Tell us why the program, why People First Network, is this a cultural thing, is this part of a program, what's the rationale, what's the message? >> First of all I want to thank John, you and your team and theCUBE for co-hosting the People First Network with us. It's been a real delight working with you. Shifting to People First, Mayfield had had a long-standing philosophy that people build companies and it's not the other way around. We believe in betting on great people because even if their initial idea doesn't pan out, they'll quickly pivot to find the right market opportunity. Similarly, we believe when the times get tough, it's our responsibility to stand behind people. And the purpose of this People First Network is people like me were extremely lucky to have mentors along the way when I was an entrepreneur and now as a venture capitalist, who are helping me achieve my dreams, and Mayfield and me want to give back to other entrepreneurs by bringing in people who are luminaries in their own fields to share their learnings with other entrepreneurs. >> This is a really great opportunity and I want to thank you guys for helping us put this together with you guys. It's great co-creation. The observation I was seeing in Silicon Valley and certainly in talking with some of the guests we've already interviewed, and that'll be coming up on the program, is the spirit of community and the culture of innovation is around the ecosystem of Silicon Valley. This has been the bedrock of Silicon Valley, Mayfield, one of the earliest, if not the first, handful of venture firms hanging around Stanford, doing entrepreneurship, this is a people culture in Silicon Valley and this is now going global. So, great opportunity. What can we expect to see from some of the interviews, what are you looking for, and what's the hope? >> Yeah, so I think what you're going to see from the interviews is, we are trying to bring around 20 plus people and they'll be many Johns on the interview besides you. So there'll be John Chambers, ex-chairman and CEO of Cisco, there'll be John Zimmer, president and co-founder of Lyft, and there also will be John Hennessy, who'll be our first interview with him, from Stanford University. And jokes apart, there'll be like 20 plus other people who'll be part of this network. So I think what you're going to see is goings always don't go great. There's a lot of learnings that happen when things don't work out. And our hope is when these luminaries from their professions share their learnings, the entrepreneurs will benefit from it. As we all know, being an entrepreneur is hard, but sometimes, and many times actually, it's also a lonely road. And our belief is, and I strongly personally also believe in it, that great entrepreneurs believe in continuous learning and are continuously adapting themselves to succeed. So our hope is this People First Network serves as a learning opportunity from entrepreneurs to learn from great leaders. >> You said a few things I really admire about Mayfield and I want to get your reactions. I think this is fundamental for society. Building durable companies is about the long game and people fail and people succeed, but they always move on. They move on to another opportunity, they move on to another pursuit, and this pay-it-forward culture has been a key thing for Silicon Valley. >> It absolutely has been. >> What's the inspiration behind it from your perspective? You mentioned your experiences. Tell us a story of an experience you've had. >> Yeah, so I would say first of all right since we strongly believe people make products and products don't make people, we believe venture capital and entrepreneurship is about like running a marathon. It's not a sprint. So if you take a long-term view, have a strong vision and mission, which is supported with great beliefs and values, you can do wonders. And our whole aim, not only as Mayfield, but other venture capitalists, is to build iconic companies which are built to last, which beyond creating jobs and economic wealth, can give back to the society and make the world a better place to work, live, and play. >> You know, one of the things that we are passionate about at theCUBE and on SiliconANGLE Media is standing by our community, because people do move around. And I think one of the things that is key in venture capital now than ever before is not looking for the quick hit. It's standing by your companies in good times and in bad. Because this is about people, and you don't know how things might turn out, how a company might end up in a different place. We've heard so many entrepreneurs talk about that that the outcome was not how they envisioned it when they started. This is a key mindset for-- >> It absolutely is, right? Like, let's look at a few examples. One of out most successful companies is Lyft. When we backed it at Series A, it was called Zimride. They weren't doing what they were doing, but the company had a strong vision and mission of changing the way people transport and given that they were A+ people, as I mentioned earlier, the initial idea wasn't going to be a massive opportunity, they quickly pivoted to go after the right market opportunity. And hence again and again, right to me, it's all about the people. >> Navigating those boards is sometimes challenging and we hope that this content will help people, inspire people, help them discover their passion, discover people that they might want to work with. Really appreciate your support. And thank you for contributing your network and your brand and your team in supporting our mission. >> It's been an absolute pleasure, and we hope the viewers and especially entrepreneurs can learn from the journeys of many iconic people who have built great things in their careers. >> Navin, thank you so much, great vision. >> Pleasure. >> Yeah, it's a pleasure working with you, John. >> Okay, I'm John Furrier, stay tuned for more People First Network content as part of our ongoing open collaboration with Mayfield. Trying to get the brightest minds to share their stories, their experiences, with you. I'm John Furrier, thanks for watching. (techno music)

>> Covering VMWorld 2015. Brought to you by VMWare, and its ecosystem sponsors. Now your hosts, Jon Furrier, and Dave Velante. >> Okay, welcome back everyone, we are here live in Muscone North Lobby at VMWorld 2015 San Francisco, this is theCUBE, SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier the founder of SiliconANGLE, joining my cohost Dave Velante, confounder of Wikibon.com Our next guest is Pat Kelsinger, CEO of VMware. Welcome back to theCUBE. Again every year. >> Hey my pleasure. >> Six years now in a row. CUBE alum in all our CUBEs. Thanks for taking the time. I know you're super busy. Thanks for-- >> My pleasure. >> Number one for the record. Number one guest. Number one CUBE. >> That's on the record. >> Yeah I was bugging you guys yesterday, that you tell that to all your guests. >> It's definitive that you are number one. >> Now you're the only one who's outlast us. 34 minutes is a record and your handlers were so mad at us. But that's okay. Thanks for coming on. >> My pleasure. >> So keynote was great. Just everyone who didn't watch the keynote, go check out the replay. It's on siliconangle.tv, on VMware.com under vmworld. Really good speech this year. I like how you laid out the future. Really set the canvas for the next generation. So was that kind of by design? Were you thinking hey I want to paint the picture. A lot of talk about VMware in the news that recently, speeds and feeds, Vcloud, all this product stuff. On day one. What was the purpose of the speech? >> Yeah and it really was as Rob and Carl and I were sort of architecting the speeches, and this whole idea of run, build, deploy, secure, and how we were trying to carry that theme through everything that we were doing. And having me kick it off would have been very traditional, right, and we says well what would it mean if I was wrapping it up with a much more visionary and future looking speech and ask Carl to set context. And the more we tried that idea, right it really sort allowed me to I'll say go to a different altitude, and you know rise up from some of the more techy things that I love but to put it in a context that's much more industry and futuristic. So the more we played with the idea, the more we liked the idea, and given the good response from this morning, I think it worked pretty well. >> And it brings a long term perspective, versus the short term myopic you know, what we can do and stock prices, all that stuff today so congratulations. But one of the things I noticed was this asymmetric messaging around the future. And I want to ask you because I asked you three years ago, Pat is hybrid cloud the resting, full destination or is it just a way station in between public, private cloud. Oh it's the future. So hybrid cloud I've been asking all the guests. What is hybrid cloud and what is it today, because clouds are different. Every company will have a different cloud. Is hybrid cloud a product or the outcome of deployment or engineering like distributed computing? >> You know clearly from our perspective is, you know it is the culmination right, of bringing together these capabilities. And to deliver to our users the ability to treat a range of different clouds, you know from SAS providers, through what they're doing in their own private data center, and be able to treat that in a homogeneous way. That they can look at the set of resources, they can manage across those secure, across those environments right, and in many cases have increasing flexibility of how they run their workloads and you know scale them across. That is the vision of what we're off to build. That is what unified hybrid cloud is about. Now obviously underneath that right, there's a whole lot of work to get done. And from us and a product perspective, hey that means our management products got to be heterogeneous. Right it means that they networking layer, hmm there's some things I can do when it's Vcloud Air on the other end of the wire, and you know VMware stacked within the data center, and you know wasn't that cross cloud VMotion, wasn't that cool? You know to me that was my favorite demo of the show. And then in other cases, boy there's more limited things. And we are starting to demonstrate even connectivity at the core networking layer into Amazon, right and one of the work bench will show let me show you how we can extend the NSX connection all the way into an Amazon node, I mean so those pieces are part of that broader set of vision, but we want our customers to be able to say, VMware you are my best partner to deliver that complete set of cloud services that I require. >> I like how you brought in the history lesson there, brought us some early intel days, and I want to ask you this question, the futuristic question around what's possible, because really you laid out the future. And I want to bring in kind of the Moore's law analogy. I just interviewed Jerry Chen at Graylock, and he said I was talking about cloud, and VMware's role potentially in the future, whether it's openstack today or containers tomorrow, he said, "Is this technology the best "of the last generation, or the first "of the next generation?" And I want you to take that quote in context. Talk about what Moore's laws could look like in the cloud, in the future if you assume that the market's going to be you know 10x improved, 100x improvements in these areas. How does Moore's law apply to the cloud, because the cloud is an accelerant? >> Yeah, and you know the beauty of Moore's law, you know I mean if you go down to it's fundamentals, right it's not a law in the physics sense. Right it's an observation in the economic and technology sense, right, this doubling every two years. And the power of the cloud though, is it allows you to benefit from both the scale, right you know the performant capabilities, as well as the economics right, because it's saying you know you can scale out, as well as scale up in each processor capacity. And that really is the magic of the cloud, and you're able to do that dynamically. And essentially I can rent the biggest computer in the world now I mean for ten bucks I can rent the largest supercomputer that's ever been built. It might be only for you know a few milliseconds, right but the ability to aggregate essentially an unlimited scale resource for my application you know is just fabulous. So you really benefit from Moore's law both economically as well as the scale. Each node gets bigger and faster as well. And that ability right is why every cloud is built on x86 is because you see this engine of innovation that has not stopped. >> So do you see creativity being unleashed on that, because I mean I know there's all these different themes of them over the years of unleash your creativity, but unleashing now think about that concept of unlimited as you were pointing out. What are some of the things that you see, and you guys on the VMware team see around what creatively is going to get done in that new world? >> Yeah and you know clearly some of the things that we described here as well, I mean some of the things with respect to security. Right you know these are very much game changing, and you know people as they build more and more of their mission critical environments, you have to address it. You know enabling some of these forward looking analytics environment that we described, and very much the proactive future that we described that you know, I mean you know it's not like machine learning and some of these AI algorithms. I mean these are 30 year kinds of investigations, and now you've just got this enormous compute resource that I can even take some mediocre algorithms with extraordinary amounts of data, and start bringing some incredible insights that predict behavior and opportunity. Right I mean those are exciting capabilities. If you start going into different domains as well, where all of a sudden you're, I mean you can ask almost any question, and get an answer very quickly to those when you've put your services and capabilities into the cloud. So it's so many ways, you know we're just creating you know this next phase of innovation that, as we described the proactive phase of the internet. >> You said recently, "We've committed ourselves "to the heterogeneous management strategy, "which allows us to be managing "in a multicloud environment both on and off premise, "including AWS and Microsoft Azure." Two questions. How much of AWS and Microsoft Azure are you managing today, and do you expect to be managing in the future? Let me start there. >> Yeah, and you know today we have a small amount that is being managed by a lot of customers. Right and you know it's interesting because almost every customer's asking, right but it's putting those CMP layers in, those cloud management platforms layer using those in the day and many cases it's I want to do a little bit, so I know that it works. Right I want to know that the proof point is there, that I can use it in that capacity. But what we're finding for customers is okay I need the promise of where I might go, but I got so much work to do just to operationalize my own private cloud environment that the reality of how much they're really doing in that way is fairly modest. Right now we're not bothered by that. In the sense that you know they are going through this fundamental transformative phase, and most of the private cloud automation for our management stack today is in this phase where they are going from ITIL, CMDB, trouble ticket dominated environments to self-service automated provisioning catalog environments. And they are so deep into that transition that taking advantage of some of the heterogeneous cloud things is sort of number four on their list and they haven't clicked off number one two and three yet. But that promise is definitely there, and we're seeing an increasing amount of customers taking advantage of it. >> So the second part of my question, and I want you to help me square a circle. So we've heard Joe Tucci in the past talk about the advantages that some of the big hyperscale guys have in homogeneity, and part of VMware strategy over the years has really been to get VMware out into the cloud service provider space. At the same time we live in this heterogeneous world, so how can you achieve that vision, with all that heterogeneity? What is the underlying strategy and technology that enables you to do that? >> Yeah in different layers of the stack, you need to do different things. And for instance at the lowest layer, cross cloud VMotion, that's going to be homogeneous for quite a while, right? (laughs) Just is, right and there's lots of things in terms of copying page tables, synchronizing page tables. Fail forward, fail back environments. >> You've got your best people working on it, but. >> Yeah. >> It's not trivial. >> And yeah right and that kind of stuff. But at higher levels of the stack, depositing work loads, observing work loads, getting telemetry on work loads, okay there you can be highly heterogeneous, so really I'd say the higher you are in the stack, the more heterogeneous you can be. Right the lower you go in stack, you know to deliver a value proposition, right you know it's exciting the customers, the more homogeneous you tend to be. And obviously technologies tend to sediment down over time. So our commitment is you know, a broader and broader set of cloud capabilities across other party clouds, and of course we want to enable as many of our partner clouds as well, and those technologies. I mean one of my most exciting products NSX, right you know one of the fastest growing segments, is into service providers who are running that as part of their cloud as well. So that's going to build some of those hybrid networking capabilities into non-VMware hosted cloud environments as well. >> You talked in your keynote about your Cinderella career. Is VMware your glass slipper? >> Is it my-- >> Is it your glass slipper? (all laugh) >> Well you know I'm loving what I'm doing right now. It's a great place to be in the industry. I don't expect to go anywhere else, so you know at this point in time I'd say yep sure is. >> Well so you were asked yesterday on CNBC, you know they want to know about how you touch consumers, and you gave some very good examples of ways that you power companies that power consumers. You also gave some internet of things, I would call internet of things examples, you said, "There are 7,200 objects orbiting the earth." And IT in your bloodstream were two, sort of two examples that you gave, so you upleveled your keynote this morning. Wondered if you could talk about VMware's role in powering things like the internet of things, and things like consumer technologies. >> Yeah you know one of the, maybe my favorite examples right now on some of the internet of things that we're doing, one is a medical devices. You know heart monitors, you know being able to pain medication injection devices and so on. It's ends, you know the next generation of those is going to be managed through a cell phone. Right you know so you'll be able to go to your cell phone, you click oh, my pacemaker kicked me three times last night, right kind of things. But those devices need to be managed and secured. So how's the next generation going to be done? The leveraging, air watch and our horizon suite. We're going to be doing that kind of capability. Right and those things are just, you know I mean we're talking about people's lives, and changing the lives, but then it's also about the telemetry that goes on the other end. You know my wife has a heart monitor in right now. Just, and you how painful it is to get access to that data? Right you know. >> It's my heart. >> Yeah and you know why is it so hard. It's going to be hosted in the cloud, and we're building those clouds for those environments and to me, some of those applications, you know it's not just about going to an IT guy and let me tell you how you can save a bunch of money. You know let me go to that IT guy and say let's go partner into your line of business and say how can we change your business? Right and that's really where I try to end this morning's speech is very much, right that is the role that everybody at VMworld gets to play. You're the smartest tech guys. Go be the evangelists, the entrepreneurs, inside of your business. Because you are the person who's going to enable them to take advantage of these core trends to change their business. >> Yeah one thing on that point is that people looking at, we talked to some, a lot of customers and CIOs, and they're looking at the different vendors. Oracle, you know they're looking at VMware, wherever, IBM, HP and everyone else. But the trend that we're seeing is kind of pivoting off the appliance and engineered systems concept and end to end, you mentioned homogeneity and heterogeneous at the top of the stack. They want an end to end solution. They want it to work so it can kind of outcomes you described. In order to have that they need developers, and you guys have an ecosystem that has a big focus on dev ops. So very geeky company, a lot of engineering at VMware. A lot of people know what dev ops is. Is that servicing up at the top of the senior management team where dev ops is top priority? The API-ification, these kinds of things. Can you share some of the mindset and some of the conversations you're having at the senior level with dev ops and developers. >> Yeah I find the conversation, by the way I'd be very interested in your guys' perspective on this. You know with one of the recent dev ops conferences recently that we had a team go and attend, and we're presenting some of our products and value propositions there, and a survey was done of how many of those were IT folks versus how many of those were developers. And what was the answer? >> Ops dev. >> It was almost all IT folk. >> It's, yeah. >> Operations guys. >> Right because do developers really want to carry pagers at midnight? Right you know it's. You know, no. Right you know and there's this funny-- >> No they're too busy writing code. >> Exactly, right. >> They write code at night. >> And so there's this aspect of hey, they want programmable infrastructure, right because they don't want some long, trouble ticket kind of model to go get infrastructure, so they want API access that's automated, self provisioned and so on. But do they really want to take over infrastructure operations? And that the answer to that is no freakin' way. >> Yeah, no way. >> At that point of way. >> Because they you know, so it's very much they don't want to be bottlenecked right, they want to be enabled by infrastructure right for it. And so a lot of this dev ops is how do we bring those two worlds together so the developers can go do what they want to do, right develop, innovate, and at the pace of that that they are never limited by any of the infrastructure deployment or lifecycle management capacities. So as we're having those conversations, it's very much how can we present more and more API access to a more, and more automated set of our products. And that's why we've embraced openstack. That's why we've embraced containers. It's why we've done the cloud foundry. Right it's why we continue to have our own traditional vsim interfaces that we've supported forever. We're just going to give them more API surface area than any other guy on the planet, and the next thing that comes up, right if the Volante development environment emerges, hey we're going to support that. If they get more than 10 developers on it, we'll be there. >> Right, CrowdChat. >> You support CrowdChat APIs, so I got to ask, the development's a good point, I love that point, because IT is where your wheelhouse is. Certainly in the ops side of VMware's install base. But now you bring up the developer community, those guys have embraced containers. That's changed the game a lot, because now you can abstract away the complexity you guys can provide, and kind of harden that top. So how do you see that market? So two questions. Containers, comment on the containers. We asked that last year. And where's the line on the hardened top? Where's the line where developers, hey don't look here you're cool, programmable interface whatever you want to call it, infrastructurous code, where's the line on the stack? And then develop this new developer ecosystem that's developing? >> And I think as I said last year when I was on the CUBE that you know we see the container trend as a more significant, a long term one even than openstack. Right and I think it really does become the biggest issue in the future for developers because it's an application value proposition right and at that level, how can I make application development, deployment, lifecycle management in a more effective and productive way. And software does eat the world, and everybody needs to become more productive in their application experience. And then the hardened top question. You know it's a great question because developers, do they want to reach, I mean do they want to go worry about infrastructure? No they don't, but they don't want to be hindered by infrastructure right at that level, so the question is can we present in a light way, open way that they can take care and not worry about oh how do I get enough storage for this. How do I secure that network, how do I connect to this other thing, what is my directory service. We're trying to present an infrastructure that gives them the surface area that they require, so that they don't need to go down the stack. Because they're not going down the stack because they want to but because there isn't a flexible, easy way for them to get there another way. >> To them it's just like smashing rocks, I mean they don't want to do that. They want to program some code. >> That's right you know. They want application code, interface code, you know things that create business value. So our job is to present them a capability that makes those things easy. And that's what the Photon platform announcement was all about, making it easy. Making it easy for traditional IT. >> NSX is playing a role there, too, big time. >> Oh yeah absolutely. NSX you know we're doing the bindings in the storage layers. We're absolutely bundling in the right way so that IT gets visibility into that environment so they can manage and secure it, you know deploy it, but the developers get the flexible interfaces that they like as well and really, sort of, if you remember the old Oklahoma movie, can the cowboys and the farmers be friends? Right you know and that's our objective is to bring those two worlds together. >> So I got to bring up the cloud native question, because we're seeing this transition now to, Dave and I were talking in theCUBE on the intro here about the old mini computer trend and how that spawned a whole level, you know you had Sun, HP, back, and Intel writing chips and this x86 servers. The whole SAP, workflow, ERP systems, manufacturing got innovated, all this new automation happened. So we're seeing cloud native take on a similar role there where you're seeing people at the services level, the big consulting firms want to deploy more apps fast. And you mentioned the apps are taking over Hollywood. So where do you see the pressure point for the services-- >> Bird Man or Angry Bird, I don't know. >> So that trend's happening right now. So what's the pressure, what's holding back that explosion of new services that are going to roll out, consulting services, big firms rolling out apps for banks and every vertical, as you said they're being disrupted. What in the infrastructure is holding back that? >> You know I think that, and part of the reason we're so excited about some of the Photon announcements in that sense is because it is too hard and too slow today. You know at the, it's heavy, complicated. Right the IT processes aren't nimble, and you know self service environments are minimally deployed. Right you got the application guys over here, hey they're innovating at pace, and these scale outs, container oriented microservices architectures that are beginning to, they're not scalable, they're not manageable, they're not secure. Right so the problems are so obvious on both sides of it. Right but it's these worlds are coming together, some of the early embodiments you know of the new applications et cetera are so thrilling that people are really are moving into the space. So the fundamental limiters right we think are, you know an agile, light weight infrastructure with the right set of northbounds APIs that give programmatic access to the infrastructure. And on the other end is a developer environment that can take advantage of those, that's highly productive with the level of software skills. I think ultimately you know on that side of things, you're going to be developing, you're going to be limited by software development capacity. And that's what we are finding when we meet, and particular Pivotal meets with the largest companies in the world right their biggest issue is, do I have the software development skills to do that? Can I be productive at that level? You know the app is now more important than the color and the warrantee on the car. You know that's the shift that's occurring. >> Pat I want to ask you a couple public policy questions. I don't want to get into politics, but as a CEO in Silicon Valley, you know you hear folks like Donald Trump sort of saying well we should really clamp down, he goes after Zuckerberg for example. >> Build that wall. >> Right build a wall. But he goes after Zuckerberg in particular. I'm talking about H1b visas so. What's your take I mean presumably, you want more talent, we educate talent, what do you say as a CEO of a public company regarding educating and then keeping folks here? >> I think it's wonderful that the world wants to export our top talent, their top talent, to the United States right. And almost-- >> Right, thank you. >> I mean please. >> Where's your best. >> Absolutely. >> And smartest people. >> And the fact that we want to close our doors to the most talented human beings on the planet that want to come and work, develop, create the next generation of startups in our, right in our communities and on our soil, right to me that's a stupid policy. >> Yeah great, and then the second question. You mentioned self driving cars. I wanted to ask you about, you know for decades, millennia, we've seen machines replace humans. And we're seeing now that GDP grows, you know income grows, but the average, median income has dropped from $55,000 down to say $50,000. From '99 til today. Yet you guys and I'll be interested in you, too John. You live out in Silicon Valley. And it's like okay well there's always opportunities. Because you guys live in a virtual reality field, and you're positive thinkers right. So are you concerned as again a CEO of a public company, and somebody who's pretty prominent, about that effect and what's the answer? Is it more education, and what can companies like VMware do to support that? Not that trend, but to reverse that trend? >> You know at the heart you know you mentioned education, to me that's so right, you know so foundational at that level and increasing you know STEM education, beginning at the earliest ages, you know we need more software programmers. We need more women in software programming in particular. I mean we have almost half the population is excluded from that potential right today by the very low entry rates into those areas. We got to fix those issues. The quality of U.S. education at the secondary level, you know at the collegiate and university level's unmatched on the planet, right. You know at the high school and junior high level it's pretty weak on a world scale. Those things are fundamental, got to be fixed in that respect. I also believe that you know many of these technology shifts are actually going to enable a, let's say a renaissance of some of the communities that some of the areas that have been not available for American workers and this whole idea of, I'll say just briefly mention in my speech this morning, the idea of customized, automated manufacturing. Well as that emerges you know now, right if I can have highly automated, customized manufacturing, you know 3D printing, et cetera that occurs, boy you know I believe we will see a resurgence of some of the manufacturing sectors you know back onto mature market, to soils, to back onto American soil as well. Because it isn't just going to be a cost arbitrage question anymore to find the lowest cost labor on the planet. Transportation costs become you know, essentially a barrier to export. >> And you're unlocking like, see big data as an example. You're unlocking new jobs around data analysis, and development. >> Right. >> You know that's very much what we see as one of the huge opportunities associated with internet connectivity in a global basis, whether it's health care, education, or unlocking new jobs-- >> Internet of things. >> I mean machines like airplanes, throwing off data, they're going to need people to analyze that. So I got to ask the question along with Dave, is that you know when I was talking with some young college kids and my wife and I talked to our two youngest, who are, one's in eighth grade, and one's a freshman in high school, around how to think about technologies. Not just oh you need to be computer science and have two daughters, so obviously we're talking to them about hey don't be bullied out of computer science. If you love technology there's plenty of things. So what's your take on that? What's your view on different opportunities for young people? Women, boys, girls. All across the board. It used to be just programming, electrical engineering, computer science. And now it's kind of like the two pillars. But now what new opportunities do you see to a young physics major, or someone in high school who just loves technology? Because they're all connected. They're all on Instagram, they're doing their thing. >> Uh-huh. >> They're breathing technology, they're natives. >> Yeah. >> So what academic, what things might inspire young people? >> Yeah I think some of-- (coughs) Excuse me. You know some of it is taking down some of those, I'll say false barriers or perceptions as well, and John Hennessy, president of Stanford, you know he and I have a great relationship, and Stanford now is almost 50/50 in the incoming class for women into computer science. I mean obviously they put huge emphasis on that, and so they said you know getting away from first player shooter games as the first touchpoint of technology and into much more social experiences has changed the perception, right, of you know females into that sector. Excuse me. You know I've still got two more days of VMWorld to go. I need a voice. >> The CUBE is tiring. >> We might outlast you this time. You beat us last time, 34 minutes that was a record. >> I think it was longer. >> It was more like 50 minutes. >> Yeah, right at that-- >> But there's a lot of >> opportunities to your point. I mean there's not just programming. There's a lot of interdisciplinary stuff now. >> Yeah and that was exactly the next point I was going to make. Because computer science and programming ends up being cool in every aspect. Right you know whether you're in economics. Hey you know I mean you got to build models. Hey if you're in the medical field. Hey there's an increasing amount of telemetry, big data, other things coming into it. Every field is touching on it, and to me that cross disciplinary view of the impact of technology, into every segment and every interest, becomes more and more powerful going forward. And I think some of those are the ways that we can actually change the perception even right that everybody, it's sort of like, imagine if you would go to school, and you would say our school does not teach math. I mean would you send your kid to that school? Of course not. >> Only if they had programming on top, instead of math. >> Right but... And they say, but you know your daughter, she wants to be a psychologist. But you're not going to teach her math? You know it's a basic life skill. She got to learn math. That is the essential of technology and computer science going forward. It is a basic life skill that we have to teach everybody, and have to participate in it regardless of what field that may pursue. >> So we're getting crunched on time here. I want to ask you my final question. Dave probably may have a final, final question. Seems to be the new thing going on here at the CUBE. This year at Vmworld, what do you think will happen this week when you look back down the road? You've got a great career here. Looking great with VMware, we love working with you on the CUBE here and the keynotes. What about this year is so transitional for VMware? Is it the fact that now we have full dev ops, now the cloud is mainstream? Is it the fact that the company's transforming itself into a whole, another power. Is it because the ecosystem, all of the above? What's your take on this year's kind of inflection point for VMware? >> Yeah I think you know obviously at the front of the list for us is this whole unified hybrid cloud. And really getting people to view, because you know three years ago, cloud was ooh I'm an enterprise customer. Now it's really how can I take advantage of these resources that will be heterogeneous across multiple environments and the value proposition that we can be and everybody needs to be doing that. So that's one of the takeaways. You know second is the engagement into the developer community, the Photon announcements are probably the most second, the second most important shift to thinking that we've delivered here. Maybe the third is you know the thing that I'm always thrilled about when I show up at VMworld is the ecosystem. You know friends and foe alike here show up to talk about how they're collaborating together to bring more from the things that we do, and that's what's just so energizing about it. When you go around the show floor it's just overwhelming. >> And you've got investors too after the VCs. Top tier VCs, NEA's here. Graylock, XL, all of them are here. >> Well a lot of startups coming out of the woodworks, too. >> Oh yeah. >> They launch at VMworld. >> Absolutely. >> You know it's just wonderful that way, and this ecosystem effect just couldn't be more powerful, and alive and well than it is here at the show this year. >> And we're six years here, we love watching the transformation. We've seen everyone. Palmer has produced that first slide that was there and now here so great job. >> Yeah and thank you for expanding our space this year. That's really great. >> Hey you know what. >> Us going north. >> You know. >> You said you were in a corner of Moscone North. I mean I said this is the CUBE. (all laugh) I think you mispositioned that. >> We were in the lobby, the big lobby of Moscone North. >> Half the lobby. >> We have the lobby. >> Thanks for everything, we appreciate six years. And great to see you every year, and thanks for taking the time out of your busy schedule to share your insight, >> Oh thank you I love it. and the data, and your vision, and product news. Thanks so much. >> Thank you. >> Pat Kelsinger here live inside theCUBE, here in San Francisco, Moscone North lobby. We got the big lobby here, and of course it's Vmworld 2015. I'm John Furrier with Dave Velante. We'll be right back. (light rock music)

the cube at emc world 2014 is brought to you by emc redefine b.c.e innovating the world's first converged infrastructure solution for private cloud computing brocade say goodbye to the status quo and hello to rokade okay welcome back everyone here live in las vegas for emc world 20 at 2040 i was going to say vmworld because you're a new CEO of vm role here I'm John for a bounder still hanging with Dave vellante my co-host he would Pat Gelsinger cube alumni friend of the cube it's our fifth season we opened up at emc world 2010 in Boston Pat was on the cube then set a great time ever since pad welcome back to the cube just got off the plane from Istanbul how do you feel I feel a little bit yet like that's been a long long day okay we'll get a lot of information out of you did so first time I ask you about the D SSD acquisition I'll see you you known Andy for a while what does that all mean for the industry software at the center of the value proposition is is the hardware and compute going to be this abundant resource that no one ever sees what's your take on all this well i think you know first I think of Andy is like the Rembrandt of hardware design right you know he's just done all the amazing system design work in the industry for many years he's been a friend for many years and just great great respect for him individually obviously d SSD is doing some great work you know I think it's going to prove to be a critical technology in the entire converged infrastructure space and clearly this high-performance flash capacity there's going to be a game changer for what you're able to do in the rack and obviously with bills participation from sa p they see it as a very very critical capability for in-memory environments and some of the data analytics that they want to do so i think this is a a bold move by emc i was a fully supportive of it and i think it's going to yield very very powerful hardware for software to take advantage they bring you in on a deal like that and consult with you is it is it it's about hey Pat we need your advice I saw the board meetings I sit in the M&A meetings and I'm an Oni and so for decades okay yeah so it wasn't just a cursory glance a little bit more than it's been in the works for a while so we've been fine we'll get more information we'll be digging for home sources I'll talk about cloud I've seen last time we're at vmworld we talked about the cloud I said hey is hybrid cloud really going to be the destination you like what are you talking about it's going to be the destination it is the hybrid cloud is the way here at ian's emc world you hear joe tucci up there even using the words AWS disruption amazon is clearly on the radar public cloud is still it is out there as a viable alternative and the words like reinvent which is the conference name for amazon redefine is this conference it's ok to have amazon out there but hybrids cloud is still the deal with containers and what not I mean has a hybrid cloud narrative change for you amplified straight narrow foot pedal to the metal ya know we are absolutely convinced hybrid is the answer and maybe start with a few facts I mean it's always good to ground ourselves in a little bit of data and today on premise is ninety two percent of IT spent so eight percent is in the cloud whereas sales pass so you sort of say wow great and predictions would say by 2020 it's seventy-five percent on-premise the twenty-five percent in the public cloud so you look at that and say boy you know even just from the spin perspective it's going to be hybrid and then you look at facts like security privacy governance s la's liability cost performance all of those things will keep people on premise so it's clearly a hybrid world right where it is the on and off premise and we've clearly seen that as we've laid out this positioning of hybrid the industry is following us we're seeing amazon talk about we're seeing Microsoft talk about or seeing google talk about it all the other big cloud players are saying yo yo VMware got it right hybrid is the answer it seems they all the territory is being claimed now it's like we almost seen in almost not bubble bursts are you seeing box pull there s one obviously their economic of buying customers isn't working so I see that the pullback for they're you're seeing some other companies get massive valuations that aren't publicly traded yeah there's really kind of know really market there and then other companies in the flash marker fusion-io by the memory kind of sub that wasted well below but the container technology so I got to ask you about some of the new stuff that you seeing one valuations and also the new containers we heard da cars pretty hot right now what do you make sense of the containers in particular well on the first of the valuations I mean clearly the Pease of these very high growth you know early stage not money-making companies were just out of control and I have comment on that before at the Wall Street Journal CIO event that they were just way out of range and it's good to see those coming into more reasonable ranges now and I think that will wash through the entire industry because there was this mini bubble of you know just crazy Pease you know and you know with respect to docker and some of the other container technologies that clearly is you know enthusiasm around some of the lightweight stateless mechanisms but what I'll point out is that there have been different container approaches over the last 30 years and the only one that has had sustained architectural influence and investment has been the vm and our effort is continuing to pound the overhead continue to add value security networking management you know all the things that we've been able to build around that's idea of the vm container and of course if people are really you know see lightweight containers is valuable but we'll stick a bunch of them in a vm i mean it's just another management model for a lightweight deployment of stateless apps so John I've been thinking about you know Joe's waves right and we think okay with this next wave that we're in what's different about this way you've laid out a 50 billion dollar tam you just talked about how much of that the public clouds going to get I wonder if we could make an observation to get your feedback on it the economics of cloud they start to look so you've got software economics ninety percent gross margins hardware you know the economics at volume the marginal economics are talking about you know aren't as attractive but they're still good and then services is negative you know but diseconomies of scale if you will it seems like in the cloud that online cloud services are now taking shape the same way software is so at volume you're getting software like economics so the question is how does VMware and VMware you know cloud vcloud hybrid service get to that scale and that volume so that you can participate in that so first of all is it is it a reasonable premise to note and can you get to that scale and how do you get to that scale yeah and you know you'll see a little bit of my keynote tomorrow I'll talk about this a little bit more one is you know we're investing we're growing very rapidly as we expand the number of presences in the u.s. you know second we're very aggressively partnering and we announced their first partnership with savvis you'll see us announce other partnerships like that that we're going to leverage their capital as well right and who invests the most in capital of any industry in the room service providers all right they blow away everybody else so partnering with them the other view of that would be with vGHS is is that we also have our bspp program where you know i'll give some of the stats in the keynote tomorrow but we have an overwhelming right Brett for those vs PP partners that already has us very much at scale as one of the largest clouds not just what we do but through this broad range of partnerships that we form so overall you know we have a very powerful strategy when you add up all of those and given our business model of software and services you know it's very unique and combine that with these statistics I was giving you up on and off-premise and the private cloud you have 40 million VMs 500,000 customers you know we bring a lot to the table once all about a AirWatch so big acquisition the Federation helped a little bit o financing that's absurd yet right so talk about the importance of air watch you know where it fits into the end-user computing strategy and and what gives you excitement about air watch well you know I think one is in the whole end-user computing space you know two years ago people viewed it like VMware had a hobby you know hey we're selling these fear and a you know growing some of this yeah yeah well and you know hiring Sanjay rebuilding the leadership team investing in our end user computing sales force and now the air watch acquisition everybody realizes this ain't a hobby anymore we are taking the space very very seriously and really redefining the industry quite rapidly with the breadth of what we've done with horizon six plus the inorganic move with air watch you know we are here to win in this space and taking share substantially from Citrix and others in the category yo secondly and as part of the whole secular shift not just the cloud but it's the mobile cloud era so it's to redefine and deliver that PC experience but it's also uniquely right to enable the secure managed experience for all the mobile devices as well that's where AirWatch is clearly you know tearing up the track and you know we believe it's separating from the rest of the industry of players as that leader and really gives us the unrivaled portfolio of assets now I talked about the obviously the compute trend is moving to the data center you're seeing the commoditization now the data centers want to do the same way you talk about that publicly so with the software at the software-defined enterprises joe tucci calls we've called the sava define data center how does that change from your standpoint from a focus standpoint because you mentioned you got AirWatch is no longer a hobby you're building a you know business got a tam expansion strategy aggressively investing you have an ecosystem that you've kind of had from your hobby days now you're kind of nurturing it and expanding it what is the focus and from a software-defined perspective what is that focus specifically and how do you keep your troops marching to the cadence of that focus yeah we laid out our three areas for VMware over a year ago we said we're going to do three things software-defined data center virtualized the whole data center second do the hybrid cloud this on and off-premise and then go from the data center to the device pcs and mobile devices you know with what we've done we have all the pieces in place now the acquisitions are all in place the execution and that consistency that we've laid out now for almost a year and a half you know has really resonated both internally to my teams you know to our sales teams through our customers and our partners as well and they get it and you know that consistency has really gotten us more and more momentum we're seeing all of those limits you know really firing on all cylinders at this point so I saw the news that Gould is no longer involved kind of he was kind of cuz he's now the CEO of e mc2 you're the free captain of VMware and the Federation of the ship what is that like for you now and what are you tapping into the Federation what is pure VMware can you kind of square that off in terms of Aussie VMware what are you tap to the Federation what do you have available to you sure sure and you know with the Federation perspective you know we got a lot of benefit from I will say you know the layer that emc provides you know I call up Joe we have a shareholders meeting right yoyo cage oh yeah I'm okay good done shareholders really finish I mean yo some of those things are just elegant definitely right you know we can get things done by John date and at the same time yeah we're accountable to the street for all the financial metrics all the things that you want to be accountable to public shareholders for you know we also get the benefit like you saw an air watch your the cash position we're better aligning ourselves and global accounts were both of us our prep presence so we get the leverage of both sales teams the capacity that we have you're seeing some of the solutions work that we're doing be pivotal assets recently right you know moving things around to you know best position things for the different players as customers or seeing that you know to line those assets between it between us and also very very clearly saying okay you know here are the areas and i'll hit on this in my keynote tomorrow right this is how the vmware assets work with the emc assets and we're going to leverage each other as we go forward but as we say you know the Federation motto is strategically aligned right you know while remain you know loosely coupled so continuing to be able to go partner right with others in the industry to facilitate that flexible ecosystem I want to ask you about Silicon Valley right so obviously you have a great campus VMware means one of the most beautiful campuses in Silicon Valley well done it's fits into the hillside there my favorite areas but as you guys go global Silicon Valley's also going global and there's also kind of like a let's say bubble ish environment out there right now evaluation we just talked about control Silicon Valley's changing what's your take of the currents data Silicon Valley in terms of the innovation I know you're going to be talking with Stanford University and Mark injuries and coming up on a panel has it changed over the past few years and it does it still have that innovation and visit is it bringing it back Alan's of cycles change which you're taken so that well we're going to have a nice campus opening you know beautiful VMware a campus we're gonna have a little party yes I don't know this is the cube invited okay thanks i hope so yes so we're going to be the ribbon cutting ceremony ins and that's going to be great and mark is going to be there john hennessy my thesis advisor now the president of Stanford is going to be there Joe the board so we're gonna have a great event talking about that exact question right and really talking about the future of the valley unquestionably today it remains the hottest bed of innovation anywhere in the world but I think you always look at that and say you know where the recipe is still there as you look to the future and you know competition for labor is intense you know tax rates you know people move out of the valley because of justification and San Francisco big discussion yeah right you know toyota just moved to texas I mean there's always this you know you know do you still have that recipe right nowhere else has even close to the valley and that today race you that in your travels oh absolutely absolutely but every place in the world says I want to be like the valley right every place in the world is saying what do I need to do to create that same recipe you know whether that's bangalore or whether that's beijing or shenzhen right or whether that's a israel or you know many spots in the world well Silicon Valley export that knowledge and is that is that a good thing you know I don't think silicon but you know knowledge ideas right you know this is bubbling cauldron but there's something special about the valley that it's been able to maintain now for you know three decades and it doesn't look like it's coming to an end hey Chuck house is pretty excited about v san are you as excited oh very excited about these why what why you so excited what does it all mean well you know if you're a V admin right which you know is the heart of our customer base you say check find me local disk check provision local disk well I've just done storage right it's powerful it is you know amazingly simple and gives great performance and it redefines the hot edge right for you know via for virtual storage a new tier of storage so we're very excited about it certainly doesn't replace all of storage but it gives a new cheer a new capacity that for a virtual admin is just perfect is that new tier incremental I mean must replace some storage of sexually it's right you know I mean the good news is storage continues to grow right you know it's one of the right the areas of IT that just continues to grow as capacity grows an application demands take and I'm of course there's going to be some trade-offs to the some places and we do see lower capacity lower end of the market test dead some vb i use cases dr use cases where hey people might trade it off versus other all tournaments good news for you MC obviously they're mostly up market right is where their strength is but so we're very excited about be San and really see it as a critical new component of the vmware family and we stream i/o acquisition you made seems to be working out okay you happy about that yeah yeah nothing's been tons of time on extreme I oh these days but you made that that was all a lot of the acquisitions they did at the MC we're doing just fine hey you know and I cheer my team on back there when I meet it was like huh why did that would slip so that's not what the JC we were talking earlier the dream team is now kind of spread thin running their own little ships if you will in the Federation but back when 2010 we started doing the cube it was all kind of under one roof and we kind of said hey you got to get the meat on the bone we talked about in the queue hey the product portfolio is in transition you talk about some of the acquisitions looking back what are you most proud of for the team not just yourself but the group what you guys made some of those calls that might have been on the fence what was some of the highlights you look back and then where you are today well you think about some of the key decisions that we made and you know we did green pump that's now in the center of a pivotal now we did I salon that's performed extremely well we have done the data domain and clearly the whole back up space is performed very well we've also laid some of the seeds for the future right like extreme i/o like Viper were done when I was there so all these things you don't it's done well EMC gained significant share since I joined and they have the tools to really be positioned to help go through this next phase of the transition and obviously under David and his team's a leadership you know the industry remains in transition and that's still affecting EMC and they're having to you know carefully navigate that next phase and I think you've heard a lot from him today we love pulling the sound bites out I have a quote here 430 two days ago from you but I want to don't talk about that now but the quote we had on the cube you said is that if you don't get out from that next wave you'll be driftwood Joe Tucci said today if you don't take an offensive approach with this platform you're going to wither away so let's talk about that getting out in front that next wave in your mind share it the folks out there in your world words why at this point in time so important from an industry perspective you seen in movies before you've seen the massive inflection points you've seen Moore's Law at full tilt you know try to compare where we are today from irrelevance and making sense of the excitement and controversy opportunity yeah well we are as we would say as we're going that you know from client server to mobile cloud right this will be tectonic shifts and write the amount that's going to shift to cloud the amount that's going to shift away from PCs to mobile devices in the industry and all the vendors that have their value propositions tied to a hardware defined approach guess what yeah that's going to be a secular decline where people are going to be competing for a premise based the revenue that way into the mime ironmen that's going to be flat to down right and there's going to be no possibility of growth and you look at what's happened right you know consecutive quarters at IBM for instance boy you know they're feeling the pain right of this transition and the cloud transition it's barely underway right mobile is just scratching the surface yeah you know so these trends are just about to get started you know the analogy I'll give them my keynote tomorrow is 1989 and we're Digital Equipment Corporation and over the next seven years guess what right the entire business is going to shift that guessing always great to have you on the cube just any final parting words about what you're going to work on this week some things you're highlighting customer events us you keynote what do you expect to see here at emc world this week well you know I always see OEMC role is a great place and you know just feel incredibly embraced and our partners at emc and just happy that they give me the opportunity to address the audience here that's always a great joy and it is this period of extraordinary transition and everybody here right as the conference's has to redefine themselves on the other side of these tectonic shifts that are underway and EMC is you know doing that and there you know to all of their partners and customers saying here's what you need to do to go with us event in August right around the corner fat thank you inside of you when he finds one of my closest friends off we love talking with you and we'll see you at your event we're going to be actually attending the ribbon-cutting ceremony I was talking to the folks but getting the cube they're going back and forth but we'll get it done Pat Gessling you inside the cube the CEO VMware friend of the cube would love having you on be right back after this short break Pat glad to see you're like I could see it you