(upbeat music) >> Live from San Francisco, it's theCUBE covering Google Cloud Next 2018, brought to you by Google Cloud, and it's Ecosystem Partners. >> Hello everyone, and welcome back theCUBE live coverage, here in San Francisco, the Moscone South. I'm John Furrier with the SiliconANGLE on theCube, with my cohost Dave Vellante, for next three days. Day one, wrap up of Google Next here. Google Cloud's premiere event. This is a different Google. It's a world changing event, in my opinion, of Google. Dave, I want to analyze day one as we put it in the books. Let's analyze and let's look at it, and critique and observe the moves that Google's making vis-à-vis the competition. And Diane Greene, who's on theCUBE earlier, great guest. Kind of in her comfort zone here on theCUBE because she talks, she's an engineer, she's super smart. She thinks free thoughts but she really has a good chessboard view of the landscape. My big walk away today is that she's got full command of what she wants to do, but she's in an uncomfortable position that I think she's not used to. And that is at VMworld, at VMware, she didn't have competition. First mover, changes the market. Certainly, winning at all fronts when VMware was starting. And they morphed over and then you know the history of Vmware: sold to EMC and then now the rest is history. But they really changed the category. They created a category. And were very successful in IT with virtual machines. She's got competition in Cloud. She's playing from behind. She's got the big guns. She's going to bring out the howitzers, you know? I mean she's got Spanner, BigQuery, all the Scale, Kubernetes. Which the internal name is Borg which has been running on the Google infrastructure. Provisioning services on all their applications with billions and billions of users. If she can translate that, that's key. So that's one observation. And the second one is that Google is taking a data centric view. Their competitive advantage is dealing with data. And if you look at everything that they're doing from TensorFlow for AI and all the themes here. They are positioning Google as with a place to bring your data. Okay, that is clear to me as a stake in the ground. With the large scale technical infrastructure they're going to roll out with SREs. Those two things to me are the front and center major power moves that they're making. The rest wrapping around it is Kubernetes, Istio, a service oriented architecture managing services not products and providing large scale value to their customers that don't want to be Google. They want to be like Google in the benefits of Scale, which comes in automation. And I think I head room for Google Cloud is IT operations. So that's kind of like my take. I think day one, the people we've had on from Google sharp as nails, no enterprise tech. Jennifer Lin, Deepti, Diane Greene. The list goes on and on. What's your take? >> Well so, first of all with what's goin' on here and Diane Greene, the game she's playing now. Completely different obviously than VMware. Where it was all about cutting costs. Vmware, when you think about it, sold for $635 million to EMC way back when. So, it was just a little scratch compared to what we're talkin' about now. She didn't have the resources. The IT business, you remember Nick Carr's famous piece on HBR 'Does IT Matter?' That was the sentiment back then. IT, waste of time, undifferentiated. Just cut costs. Cut, cut, cut. Perfect for Vmware. The game they're playing now is totally different. As you said they were late to the enterprise. Ironically, late to the "enterprise cloud" >> They got competition >> They got competition. Obviously the two big ones Microsoft and, of course, AWS. But so what might take away here is: the differentiation. So they're not panicking. They're obviously playing the open source card. Kubernetes, TensorFlow, etc. Giving back to the community. Data, they're definitely going to lead in AI and machine intelligence. No question about it. So they're going to play that card. The database, we had the folks from Cloud Spanner on today. Amazing technology. Where as you think about it, they're talkin' about a transaction-oriented database. We heard a customer today, talking about we replaced Oracle. Right? We got rid of Oracle, now-- >> When was the last time you heard that? Not many times. >> It's not often. No, and they're only $120 million company. But to her point was it's game changing for us. It's a 10-X value proposition. And we're getting the same quality that we're getting out of our Oracle databases. They're leading with apps on Google Cloud. Twitter is there. Spotify. They obviously have a lot of history. So that's part of it, part to focus. We on SiliconANGLE.com, there's a great article by Mark Albertson. He talked about the-- he compared the partner Ecosystem. Google's only about 13,000 partners. Amazon 100,000. Azure 70,000. So a long way to go there. Serverless, this is they're catching up on serverless. But they're still behind. Kind of still in Beta, right? &But serverless, John, I'd love your take on this. Can be as profound as virtualization was. Last to developer love. They've got juice with developers. And then the technology. Massive scale. We heard things about Spanner, the relational semantics. BigQuery, Kubernetes, TensorFlow. They have this automate or die culture. You talked about this in your article. That's a bottoms-up engineering culture. Much different than the traditional enterprise top-down "Go take that hill! "You're going to get shot at but take that hill by midnight" >> It's true. Well I mean, first of all, I think developers are in charge. I think one of the things that's happening is that it's clear is that every company, whether you're a start up or large enterprise, has to come to grips with if they're going to be a software company. And that's easy to say "Oh, that's easy. You just hire some software developers" No, it's not that easy. One, there's software developers coming out. But the way IT was built and the way people were buying IT, it's just not compatible with what software developers want to do. They want to work in a company that's actually building software. They don't want to be servicing infrastructure. So, saying that everyone's going to be a software company is one thing. That's true. And so that's the challenge. And I think Google has an opportunity. Just like Oedipus has been dominating with service-oriented approach managing services. By creating building blocks that create large Scale that allow people to write software easily. And I think that's the keyword. How do I make things common interface. You asked Diane Greene about common primitives. They're going to do the foundational work needed. It might be slower. But at a core primitive, they'll do that work. Because it'll make everything a faster. This is a different mind shift. So again, you also asked one of the guests, I forget who it was, IT moves at a very slow speeds. It's like a caravan-- >> You said glacial >> But yeah, well that used to be. But they have to move faster. So the challenge is: how do you blend the speed of technology, specifically on how modern software is being written, when you have Cloud Scale opportunities? Because this is not a cost cutting environment. People want to press the gas, not the brake. So you have a flywheel developing in technology, where if you are right on a business model observation, where you can create differentiation for a business, this is now the Cloud's customers. You know, you're a bank, you're a financial institution, you're manufacturing, you're a media company. If you can see an opportunity to create a competitive advantage, the Cloud is going to get you there really fast. So, I'm not too hung up on who has the better serverless. I look at it like a car. I want to drive the car. I always want to make sure the engine doesn't fall out or tires don't break. But so you got to look at it, this is a whole 'nother world. If you're not in the Cloud, you're basically on horse and buggy. So yeah, you're not going to have to buy hay. You don't have to deal with horses and clean up all the horse crap on the street. I mean all of that goes away. So IT, buying IT, is like horse and buggy. Cloud is like the sports car. And the question is 'Do I need air-conditioning?' 'Do I need power windows?' This is a whole new view. And people just want to get the job done. So this is about business. Future work. Making money. >> So-- >> And technology is going to facilitate that. So I think the Cloud game is going to get different very fast. >> Well I want to pick up on a couple things you said. Software, every company's becoming a software company. Take Andreessen, said 'Software is eating the world' If software's eating the world, data is eating software. So you've got to become a data company, as well as, a software company. And data has to be at the core of your business in order to compete. And data is not at the core of most company's businesses. So how do they close that gap? >> Yeah >> You've talked about the innovation sandwich. Cloud, data, and AI are sort of the cocktail that's going to drive innovation in the future. So if data is not at the core of your company, how are you going to close that AI gap? Well the way you're going to close is you're going to buy AI from companies like Google and Amazon and others. So that's one point. >> Yeah, and if you don't have an innovation sandwich, if you don't have the data, it's a wish sandwich. You wish you had some meat. >> You wish you had it right (Laughing) Wish I had some meat. You know the other thing is, you mentioned Diane Greene in her keynotes said "We provide consistency "with a common core set of primitives" And I asked her about that because it's really different than what Amazon does. So Amazon, if you think about Amazon data pipeline, and we know because were customers. We use DynamoDB, we use S3, we use all these different services in the data pipeline. Well, each of those has a different API. And you got to learn that world. What Google's doing, they're just simplifying that with a common set of primitives. Now, Diane mentioned, she said there's a trade off. It takes us longer to get to market if-- >> Yeah, but the problem is, here's the problem. Multicloud is a real dynamic. So even though they have a common set of primitives, if you go to Azure or AWS you still have different primitives over there. So the world of Multicloud isn't as simple as saying 'moving workloads' yet. So although you're startin' to see good signs within Google to say 'Oh, that's on prim, that's in the Cloud' 'Okay that's hybrid' within Google. The question is when I don't have to hire an IT staff to manage my deployments on Azure or my deployments on AWS. That's a whole different world. You still got to learn skill sets on those other-- >> That's true >> On other Clouds >> But as your pipeline, as your data pipeline grows and gets more and more complex, you've got to have skill sets that grow. And that's fine. But then it's really hard to predict where I should put data sometimes and what. Until you get the bill at the end of the month and you go "Oh I should've put that in S3 instead of Aurora" Or whatever it is. And so Google is trying to simplify that and solve that problem. Just a different philosophy. Stu Miniman asked Andy Jassy about this, and his answer on theCUBE was 'Look we want to have fine grain control over those primitives in case the market changes. We can make the change and it doesn't affect all the other APIs we have' So that was the trade off that they made. Number one. Number two is that we can get to market faster. And Diane admitted it slows us down but it simplifies things. Different philosophy. Which comes back to differentiation. If you're going to win in the enterprise you have to believe. I get the sense that these guys believe. >> Well and I think there's a belief but as an architectural decision, Amazon and Google are completely different animals. If you look at Amazon and you look at some of the decisions they make. Their client base is significantly larger. They've been in business longer. The sets of services they have dwarf Google. Google is like on the bar chart Andy Jassy puts up, it's like here, and then everyone else is down here, and Google's down here. >> Yeah and the customer references, I mean, it's just off the charts >> So Google is doing, they're picking their spots to compete in. But they're doing it in a very smart engineering way. They can bring out the big guns. And this is what I would do. I love this strategy. You got hardened large scale technology that's been used internally and you're not trying to peddle that to customers. You're tweaking it and making it consumable. Bigtable, BigQuery, Spanner. This is tech. Kubernetes. This is Google essentially being smart. Consuming the tech is not necessarily shoving it down someone's throat. Amazon, on the other hand, has more of a composability side. And some people will use some services on Amazon and not others. I wouldn't judge that right now. It's too early to tell. But these are philosophy decisions. We'll see how the bet pans out. That's a little bit longer term. >> I want to ask you about the Cisco deal. It seems like a match made in heaven. And I want to talk specifically about some of the enterprise guys, particularly Dell, Cisco, and HPE. So you got Dell, with VMware, in bed with Amazon in a big way. We were just down at DC last month, we heard all about that. And we're going to hear more about it this fall at re:Invent. Cisco today does a deal with Google. Perfect match, right? Cisco needs a cloud, Google needs an enterprise partner. Boom. Where's that leave HP? HP's got no cloud. All right, and are they trying to align? I guess Azure, right? >> Google's ascension-- >> Is that where they go? They fall to Azure? >> Well that's what habit is. That's the relationship. The Wintel. >> Right >> But back up with HP for a second. The ascension of Google Cloud into the upper echelon of players will hurt a few people. One of them's obviously Oracle, right? And they've mentioned Oracle and the Cloud Spanner thing. So I think Oracle will be flat-footed by, if Google Cloud continues the ascension. HPE has to rethink, and they kind of look bad on this, because they should be partnering with Google Cloud because they have no Cloud themselves. And the same with Dell. If I'm Dell and HP, I got to get out of the ITOps decimation that's coming. Because IT operations and the manageability piece is going to absolutely be decimated in the next five years. If you're in the ITOps business or IT management, ITOM, ITIL, it's going to get crushed. It's going to get absolutely decimated. It's going to get vaporized. The value is going to be shifted to another part of the stack. And if you're not looking at that if your HPE, you could essentially get flat-footed and get crushed. So HP's got to be thinking differently. But what Google and Amazon have, in my opinion, and you could even stretch and say Alibaba if you want a gateway to China, is that what the Wintel relationship of Windows and Intel back in the 80s and 90s that created massive innovations So I see a similar dynamic going on now, where the Cloud players, we call them Cloud native, Amazon and Google for instance, are creating that new dynamic. I didn't mention Microsoft because I don't consider them yet in the formal position to be truly enabling the kind of value that Google and Amazon will value because-- >> Really? Why not? >> Because of the tech. Well and I think Amazon is more, I mean Microsoft is more of a compatibility mode (Talking over each Other) I run Microsoft. I've got a single server. I've got Office. Azure's got good enough, I'm not really looking for 10-X improvement. So I think a lot of Microsoft's success is just holding the line. And the growth and the stock has been a function of the operating model of Cloud. And we'll see what they do at their show. But I think Microsoft has got to up their game a bit. Now they're not mailing it in. They're doing a good job. But I just think that Google and Amazon are stronger Cloud native players straight up on paper, right? And if you look up their capability. So the HPEs and the Ecosystems have to figure out who's the new partner that's going to make the market. And rising tide will float all boats. So to me, if I am at HP I'm thinking to myself "Okay, I got to manage services. "I better get out in front of the next wave "or I'm driftwood" >> Well Oracle is an interesting case too. You mentioned Oracle. And somebody said to me today 'Oracle they're really hurting' And I'm like most companies would love to be hurting that badly but-- >> Oracles not hurting >> Their strategy of same-same but it's the same Oracle stack brought into the Cloud. They're sending a message to the customers 'Look you don't have to go to another Cloud. 'We've got you covered. We're investing in R&D', which they do by the way. But it was really interesting to hear from the Cloud Spanner customer today that they got a 10-X value, 10-X reduction in costs, and a 10-X capability of scaling relative to Oracle that was powerful to hear that. >> There's no doubt in my mind. Oracle's not hurting. Oracle's got thousands and thousands of customers that do hundreds of millions of dollars in revenue. And categories that people would love to have. The question on Oracle is the price pressure is an innovator's dilemma because there's no doubt that Oracle could just snap a few fingers and replicate the kind of deliverables that people are offering. The question is can they get the premium that they're used to getting. One. Number two, if everyone's a software company, are they truly delivering the value that's expected. To be a software company, to be competitive, not to make the lights run-- >> To enable >> To enable competitive-- (Talking over each other) Competitive advantage at a level, that's to me, going to be the real test of how Cloud morphs. And I question that you got to be agile and have a real top line revenue numbers where using technology at a cost benefit ratio that drives value-- >> But with Oracle-- >> If Oracle can get there then that's what we'll see >> The reason why they'll continue to win is because they move at the speed of the CIO. The CIO, and they'll say all the right things: AI-infused, block chain, and machine learning, and all that stuff. And the CIOs will eat it up because it's a safe bet. >> Well, I want to get your thoughts because I talked about this a couple years ago. Last year we started harping on it. We got it more into theCUBE conversation around Cloud being horizontally scalable yet at the top of the stack you've got vertical differentiation. That's great for data. Diane Greene in her key notes said that the vertical focus with engineering resources tied to it it's a key part of their strategy. Highlighted healthcare was their first vertical. Talked about National Institute of Health deal-- >> Retail >> NGOs, financial service, manufacturing, transportation, gaming and media. You got Fortnight on there, a customer in both Clouds. Start ups and retail. >> Yeah he had the target cities >> Vertical strategy is kind of an old enterprise play book TABE. Is that a viable one? Because now with the kind of data, if you got the data sandwich, maybe specialism and verticals can Scale. Your thoughts? >> I'll tell you why it is. I'll tell you why it's viable. Because of digital. So for years, these vertical stacks have been hardened. And the expertise and the business process and the knowledge within that vertical industry, retail, transportation, financial services, etc., has been hardened. But with digital, you're seeing it all over the place. Amazon getting into content. Apple getting into content. Amazon getting into groceries. Google getting into healthcare. So digital allows you to not only disrupt horizontally at the technology layer, but also vertically within industries. I think it's a very powerful disruption agenda. >> Analytics seems to be the killer app. That's the theme here: data. Maybe take it to the next step. That's where the specialism is. That's where the value's created. Why not have vertical specialty? >> No and >> Makes a lot of sense >> And it's a different spin. It's not the traditional-- >> Stack >> Sort of hire a bunch of people with that knowledge in that stack. No, it's really innovate and change the game and change the business model. I love it. >> That was a great surprise to me. Dave, great kicking off day one here this morning. Ending day one here with this wrap up. We got three days of wall-to-wall coverage. Go to siliconANGLE.com. We've got a great Cloud special Rob Hof, veteran chief of the team. Mark Albertson, and the rest of the crew, put some great stories together. Go to theCUBE.net and check out the video coverage there. That's where we're going to be live. And of course WIKIBAN.com for the analyst coverage from Peter Burris and his team. Check that out. Of course theCUBE here. Day one. Thanks for watching. See you tomorrow

(innovative music) >> Hi everyone, this is Dave Vallente and welcome to part one of our four part series Conquering Enterprise Cloud co-sponsored by Oracle. You know, Cloud is on everyone's minds these days and for good reason. I'm here with Chuck Hollis of Oracle, good to see you again Chuck. >> Thanks, Dave, you know it's great to be here. You know, I think we both think this is an increasingly important topic for any IT leader these days. I'm looking forward to a deep discussion. >> You know, that's right, Chuck. Our goal here is really to deconstruct Cloud computing and specifically try and address the challenges faced by most IT groups today. We really want to understand how to best utilize Cloud to create business capabilities and really have a frank conversation about Oracle's role in Cloud. So let's dig in. In our initial segment, we're going to start with the big Why. Why is there so much interest in Cloud models and why now? Let me start by sharing some data from a survey of 1,200 respondents that we just finished last month. 33% of the respondents are thinking tactically as Cloud first. 49% are thinking about deploying Cloud selectively and only 8% say Cloud only. Less than 10% say no Cloud. So this data clearly underscores that Cloud is on virtually everyone's mind. We know public Cloud is still small, but it's rapid growth has everybody trying to figure out their own Cloud strategies. >> You know what this tells me is that over 90 percent of your 1,200 respondents are thinking seriously about Cloud in some form these days. If that's not mandate, I don't know what is. >> Well Chuck, how do you think we got here? I mean in the last few years, it looks like we've gone from 90% being skeptical of Cloud, to 90% really taking it quite seriously. Large companies like Microsoft and Oracle have completely reshaped their strategies around Cloud. >> You know, you're right. Maybe we take a step back and figure out why we're having this discussion in the first place. >> I think a good starting point might be how business itself has changed over the last few years and of course when the business changes, IT really has to adapt. Chuck, you talk to a lot of customers and really a lot of IT people. What is driving the shift from your perspective? >> If you really want to talk big picture, I think we've gone from an economy of things to an economy of information. Everything an organization does, or might ever want to do, is entirely grounded in information these days. So it's no surprise to me that IT is starting to matter a lot more than it ever has. Another way of saying the same thing I think IT has become one of the big three ingredients you need for business success. Great people, great financials, now great IT. >> You know, I remember years ago when we felt like the job of IT was to support the business, you know by automating financials or HR or whatever. Now the opposite is true. In many cases, IT has really become the business. >> Right, let me offer a different view. One way to look at any organization is as a collection of business processes. Building stuff, finding customers, making them happy, learning from the experience and doing it better the next time. To do any of these things, at any scale these days, you're going to need serious IT capabilities. >> You know, it's funny, we've both been in this business for a while and it seems like it takes less and less time for the latest buzz word to become main stream reality. I mean look at Cloud, obviously, Mobile, Big Data, IOT, what used to take a decade, or even longer, it's really now happening in a few short years. Now a lot of people feel like it's the consumer of the consumerization of IT that's driven by the likes of Facebook and Google that are really responsible for this shift and of course they're the epitome of Cloud companies my question to you is are traditional enterprises finally tuning in? >> You know, sure, consumerization of IT it's a factor. But what I really think we're seeing is an entire generation of business leaders that want to use information in new ways to thrive and compete. And they're depending on IT to help them do that. You know I find today's business leaders a whole lot more IT savvy than just five or ten years ago. >> Sure, in our survey of 1,200, we asked what the key drivers were to move to Cloud and here's what people said. Number one, scalability. Number two, agility and number three was cost. So I wanted to explore this a little bit with you. People don't typically associate traditional IT and the vendors that serve that space with these attributes, particularly agility and scalability, but even cost as well. Now cost I know can be complicated and somewhat misleading, it's not just the acquisition cost or the published price of the Cloud service, but my question is, why should anyone take seriously the perspectives of someone like yourself, a long time enterprise IT guy working at a company that was founded in the 1970's. >> Ouch. Well I think that's fair enough. Look, I think longevity in this industry isn't necessarily a disadvantage, but failure to adapt sure is. For example, Intel was founded in 1968, Microsoft was founded in 1975, Cisco in 1984 and I don't think you're saying that these guys are somehow irrelevant just because they've been so successful for a long time. As far as me, I spent close to forty years in this industry and I'm still not bored. For some strange reason, I've always been fascinated with Enterprise IT. I've also had the privilege of meeting with thousands of IT leaders over these decades and learning from each and every one of them. And I've also done pretty well at calling the big shifts over the years. So, you can take it or leave it. More to the point. I can't argue with your findings. I would suggest though that there might be a deeper interpretation to some of these. >> What do you mean by that? >> Well, let's take scalability. I think it's more than just getting really big. You know, for some shops, it's also about getting global. Look, if you're going to deliver IT services close to your users, using a public Cloud provider to get global footprint can look pretty attractive. Look how popular contract workers have become in most work places. That makes it really easy for management to dial labor costs up, or down, without too much drama. I think they'd like to be able to do the same thing with their IT costs. Or maybe we consider agility. Most people would think that the ability for IT to move faster is a good thing and yeah, that's true, but there's more to it. We're now getting to the point where there's all sorts of attractive public Cloud services that just aren't practical to attempt to recreate with a traditional IT model. If you think about it, the very best IT stuff these days runs in the Cloud. That's where all the R&D is going. And you know, I agree with you on your point on costs. I think way too often, people focus on the cost of the ingredients instead of the cost of the meal. You'll hear people say it's often cheaper to buy servers instead of rent capacity. But I always wonder, are you forgetting to include things like data center cost, people cost and that sort of thing. >> Sure. >> Public Cloud providers are very good at assembling the ingredients and offering an attractive service. In house IT groups, maybe not so much. And we can't forget opportunity cost either. When those resources are freed up, what higher value activities could they be working on other than just patching infrastructure. You know I don't think this debate will be definitively answered anytime soon. >> For the customers you talk to, let me ask you a question, is Cloud becoming less of an IT thing and more of a business thing and isn't that being driven by the ascendancy of public Cloud? >> I think you're right. Step back bit and think about how virtualization came into the market. I categorize virtualization as more of an IT win than a business win. IT saw most of the benefit, but the business users got pretty much the exact same capabilities they had before and just got them a little faster and a little cheaper. It didn't really change the game for the business users. Now when we think about public Cloud, the business realizes that they can now do things that just aren't practical to attempt to do in house. >> Right. >> So if we think about this, it's quickly becoming a business thing because no business person wants to give up on a competitive advantage. So they've started to get very vocal about IT moving to a Cloud model as quickly as possible. Remember, decades ago, we were all talking about globalization, everybody had to get global. >> Sure. >> I think business leaders realized that they had to either invest in getting global to get in the game or suffer the consequences. And I think the exact same thing is happening with Cloud. >> Well staying on that trend, it's reflected in our forecast when you look at aggregate IT spending. >> Roughly about a trillion dollars are spent on IT infrastructure and related activities. And long term, our forecast show that about a third of that spend is going to go into the public Cloud, a third is going to be On-prem, Cloud like in that organizations will be attempting to operate their own Clouds on premises, and about a third will be Legacy stuff that people are just going to manage in a slowly declining fashion. >> You know that sounds about right to me. I think another way of saying the same thing is that over the long-term, two-thirds of IT spend will shift to some sort of Cloud model. Whether that's a public Cloud, or something cloud-like that lives in the data center. I also think you're seeing that shift reflected in R&D spend for the major IT players. I can't speak for the other vendors, but at Oracle, the vast majority of our R&D spend is now tied to the Cloud in some meaningful way. If you look at our recent acquisitions, they're all in that category. StackEngine, Ravello, NetSuite, Dime, on and on. Here's the point for Enterprise ITlers. It's going to be increasingly difficult to stay current without embracing some sort of Cloud model. It's where most of the industry investment is going these days. >> Okay, let's talk about the looming talent shift you know again, the data shows, in our forecast, that over the next 10 years we'll see about 200 billion dollars coming out of IT staff expense. Shifting to vendor R&D in the form of Cloud, whether that's public Cloud, or On-prem. What does that mean to you? >> You know I think that's a great factoid. And it's not that surprising to me. When you buy a Cloud service, you're not just buying infrastructure, you're also buying the expertise and the automation to run it effectively. If you think about it, that would represent a huge shift in the Enterprise IT labor market. >> Well let's follow that thread, which is the people side of the equation. The joke is you only need two things in IT, you need money and you need people. We've talked about the cost. Talk about how Cloud impacts skill and expertise requirements. How do you see CIO's thinking about this challenge? >> You know, I think you bring up a great point. IT organizations have to compete for talent just like everyone else does. And anytime I'm with a group of CIO's, the talent and staffing discussion always comes up. Because not having the right people on your team is almost worse than not having the budget you need. >> But the real point there is that the best people want to work in a modern environment. >> That's true. >> One where you can keep developing their talents and their skill sets and these days, that means Cloud. My question is, can traditional IT organizations keep up with this change? >> You know, I don't think there's a yes, no answer to that, but I'd say they've got to try really hard. Look, you can already see signs of progress. The application developer community has embraced Cloud models and Tooling in a huge way. I think their far more productive as a result and I don't think they're going back. I'd like to think the infrastructure and operations folks are starting to see the same light. Now, just to be clear, I don't think the IT infrastructure guys are being stubborn about Cloud. It's just that getting there is a lot harder than it looks. So we, as vendors, have to work to come up with strategies and approaches that works the way they do. That being said, I've got IT leaders telling me that it's a lot easier to find key talent when you can offer them a modern environment to work in. And these days, that means Cloud. Look, it's not unusual to go through an IT org chart these days and find a beginning Cloud team working alongside the traditional IT function. I see clear evidence that IT leaders know that they need to start investing in a new way of doing things. >> Okay so Chuck, I think it's time to wrap up this segment with a quick summary. Why don't you start us off? >> I guess the first key point I'd offer is that Cloud has moved from theoretical to inevitable. >> Yeah and so let's remember the findings that I shared earlier. A third of the respondents are thinking tactically as Cloud first. 49% are thinking about Cloud selectively. Only 8% say Cloud only and less than 10% say no Cloud at all. >> Yeah, congratulations, that means 90% of you are out there thinking hard about Cloud going forward. If we look at why that is, I think we can point to the macro trends, for example, every business is trying to compete in the digital economy, and no one wants to be left behind. >> And you know, the data supports that as well based on our survey. The top three motivators were scalability, agility and of course cost is always a factor. >> And the only thing I'd add to that list is that I see Cloud becoming a business strategy issue and not just an IT only discussion. I think the next big point is that Cloud has already started to transform the vendor side of the equation. What were those forecasts? >> Well long-term, we see about a third of IT spend moving to a public Cloud model, a third moving to a Cloud model that's On-prem and about a third being spent to maintain Legacy environments. >> And I think the implication is pretty clear. IT vendors are going to invest where the money is going. And that's Cloud. And I think we need to reiterate the point about how Cloud is transforming the people's side of the equation. >> Dave: Well, that's big, our forecast is that about 200 billion dollars of labor cost is going to come out of the data center and go directly into the Cloud model. >> And if you're going to want to attract the best people, which we all do, you're going to have to give them a modern environment to work in. And that's quickly becoming Cloud. So why don't we take a moment and give people a preview of what we'll be talking about next. >> Well, sure, in this segment we wanted to look at the forces behind Cloud and more importantly, why Enterprise IT can't escape its gravitational pull. In our next segment, we're going to look at why familiar approaches to the Cloud might not always work for all Enterprise organizations and what can be done about it. >> Thanks everyone. See ya next time. (innovative music)

(upbeat music) >> Welcome back, everyone to CUBE Supercloud 22. I'm John Furrier, your host. Got a great influencer, Cloud Cloud RRT segment with Sarbjeet Johal, Cloud influencer, Cloud economist, Cloud consultant, Cloud advisor. Sarbjeet, welcome back, CUBE alumni. Good to see you. >> Thanks John and nice to be here. >> Now, what's your title? Cloud consultant? Analyst? >> Consultant, actually. Yeah, I'm launching my own business right now formally, soon. It's in stealth mode right now, we'll be (inaudible) >> Well, I'll just call you a Cloud guru, Cloud influencer. You've been great, friend of theCUBE. Really powerful on social. You share a lot of content. You're digging into all the trends. Supercloud is a thing, it's getting a lot of traction. We introduced that concept last reinvent. We were riffing before that. As we kind of were seeing the structural change that is now Supercloud, it really is kind of the destination or outcome of what we're seeing with hybrid cloud as a steady state into the what's now, they call multicloud, which is kind of awkward. It feels like it's default. Like multicloud, multi-vendor, but Supercloud has much more of a comprehensive abstraction around it. What's your thoughts? >> As you said, as Dave says that too, the Supercloud has that abstraction built into it. It's built on top of cloud, right? So it's being built on top of the CapEx which is being spent by likes of AWS and Azure and Google Cloud, and many others, right? So it's leveraging that infrastructure and building software stack on top of that, which is a platform. I see that as a platform being built on top of infrastructure as code. It's another platform which is not native to the cloud providers. So it's like a kind of cross-Cloud platform. That's what I said. >> Yeah, VMware calls it that cloud-cross cloud. I'm not a big fan of the name but I get what you're saying. We had a segment on earlier with Adrian Cockcroft, Laurie McVety and Chris Wolf, all part of the Cloud RRT like ourselves, and you've involved in Cloud from day one. Remember the OpenStack days Early Cloud, AWS, when they started we saw the trajectory and we saw the change. And I think the OpenStack in those early days were tell signs because you saw the movement of API first but Amazon just grew so fast. And then Azure now is catching up, their CapEx is so large that companies like Snowflake's like, "Why should I build my own? "I just sit on top of AWS, "move fast on one native cloud, then figure it out." Seems to be one of the playbooks of the Supercloud. >> Yeah, that is true. And there are reasons behind that. And I think number one reason is the skills gravity. What I call it, the developers and/or operators are trained on one set of APIs. And I've said that many times, to out compete your competition you have to out educate the market. And we know which cloud has done that. We know what traditional vendor has done that, in '90s it was Microsoft, they had VBS number one language and they were winning. So in the cloud era, it's AWS, their marketing efforts, their go-to market strategy, the micro nature of the releasing the micro sort of features, if you will, almost every week there's a new feature. So they have got it. And other two are trying to mimic that and they're having low trouble light. >> Yeah and I think GCP has been struggling compared to the three and native cloud on native as you're right, completely successful. As you're caught up and you see the Microsoft, I think is a a great selling point around multiple clouds. And the question that's on the table here is do you stay with the native cloud or you jump right to multicloud? Now multicloud by default is kind of what I see happening. We've been debating this, I'd love to get your thoughts because, Microsoft has a huge install base. They've converted to Office 365. They even throw SQL databases in there to kind of give it a little extra bump on the earnings but I've been super critical on their numbers. I think their shares are, there's clearly overstating their share, in my opinion, compared to AWS is a need of cloud, Azure though is catching up. So you have customers that are happy with Microsoft, that are going to run their apps on Azure. So if a customer has Azure and Microsoft that's technically multiple clouds. >> Yeah, true. >> And it's not a strategy, it's just an outcome. >> Yeah, I see Microsoft cloud as friendly to the internal developers. Internal developers of enterprises. but AWS is a lot more ISV friendly which is the software shops friendly. So that's what they do. They just build software and give it to somebody else. But if you're in-house developer and you have been a Microsoft shop for a long time, which enterprise haven't been that, right? So Microsoft is well entrenched into the enterprise. We know that, right? >> Yeah. >> For a long time. >> Yeah and the old joke was developers love code and just go with a lock in and then ops people don't want lock in because they want choice. So you have the DevOps movement that's been successful and they get DevSecOps. The real focus to me, I think, is the operating teams because the ops side is really with the pressure vis-a-vis. I want to get your reaction because we're seeing kind of the script flip. DevOps worked, infrastructure's code has worked. We don't yet see security as code yet. And you have things like cloud native services which is all developer, goodness. So I think the developers are doing fine. Give 'em a thumbs up and open source's booming. So they're shifting left, CI/CD pipeline. You have some issues around repo, monolithic repos, but devs are doing fine. It's the ops that are now have to level up because that seems to be a hotspot. What's your take? What's your reaction to that? Do you agree? And if you say you agree, why? >> Yeah, I think devs are doing fine because some of the devs are going into ops. Like the whole movement behind DevOps culture is that devs and ops is one team. The people who are building that application they're also operating that as well. But that's very foreign and few in enterprise space. We know that, right? Big companies like Google, Microsoft, Amazon, Twitter, those guys can do that. They're very tech savvy shops. But when it comes to, if you go down from there to the second tier of enterprises, they are having hard time with that. Once you create software, I've said that, I sound like a broken record here. So once you create piece of software, you want to operate it. You're not always creating it. Especially when it's inhouse software development. It's not your core sort of competency to. You're not giving that software to somebody else or they're not multiple tenants of that software. You are the only user of that software as a company, or maybe maximum to your employees and partners. But that's where it stops. So there are those differences and when it comes to ops, we have to still differentiate the ops of the big companies, which are tech companies, pure tech companies and ops of the traditional enterprise. And you are right, the ops of the traditional enterprise are having tough time to cope up with the changing nature of things. And because they have to run the old traditional stacks whatever they happen to have, SAP, Oracle, financial, whatnot, right? Thousands of applications, they have to run that. And they have to learn on top of that, new scripting languages to operate the new stack, if you will. >> So for ops teams do they have to spin up operating teams for every cloud specialized tooling, there's consequences to that. >> Yeah. There's economics involved, the process, if you are learning three cloud APIs and most probably you will end up spending a lot more time and money on that. Number one, number two, there are a lot more problems which can arise from that, because of the differences in how the APIs work. The rule says if you pick one primary cloud and then you're focused on that, and most of your workloads are there, and then you go to the secondary cloud number two or three on as need basis. I think that's the right approach. >> Well, I want to get your take on something that I'm observing. And again, maybe it's because I'm old school, been around the IT block for a while. I'm observing the multi-vendors kind of as Dave calls the calisthenics, they're out in the market, trying to push their wears and convincing everyone to run their workloads on their infrastructure. multicloud to me sounds like multi-vendor. And I think there might not be a problem yet today so I want to get your reaction to my thoughts. I see the vendors pushing hard on multicloud because they don't have a native cloud. I mean, IBM ultimately will probably end up being a SaaS application on top of one of the CapEx hyperscale, some say, but I think the playbook today for customers is to stay on one native cloud, run cloud native hybrid go in on OneCloud and go fast. Then get success and then go multiple clouds. versus having a multicloud set of services out of the gate. Because if you're VMware you'd love to have cross cloud abstraction layer but that's lock in too. So what's your lock in? Success in the marketplace or vendor access? >> It's tricky actually. I've said that many times, that you don't wake up in the morning and say like, we're going to do multicloud. Nobody does that by choice. So it falls into your lab because of mostly because of what MNA is. And sometimes because of the price to performance ratio is better somewhere else for certain kind of workloads. That's like foreign few, to be honest with you. That's part of my read is, that being a developer an operator of many sort of systems, if you will. And the third tier which we talked about during the VMworld, I think 2019 that you want vendor diversity, just in case one vendor goes down or it's broken up by feds or something, and you want another vendor, maybe for price negotiation tactics, or- >> That's an op mentality. >> Yeah, yeah. >> And that's true, they want choice. They want to get locked in. >> You want choice because, and also like things can go wrong with the provider. We know that, we focus on top three cloud providers and we sort of assume that they'll be there for next 10 years or so at least. >> And what's also true is not everyone can do everything. >> Yeah, exactly. So you have to pick the provider based on all these sort of three sets of high level criteria, if you will. And I think the multicloud should be your last choice. Like you should not be gearing up for that by default but it should be by design, as Chuck said. >> Okay, so I need to ask you what does Supercloud in my opinion, look like five, 10 years out? What's the outcome of a good Supercloud structure? What's it look like? Where did it come from? How did it get there? What's your take? >> I think Supercloud is getting born in the absence of having standards around cloud. That's what it is. Because we don't have standards, we long, or we want the services at different cloud providers, Which have same APIs and there's less learning curve or almost zero learning curve for our developers and operators to learn that stuff. Snowflake is one example and VMware Stack is available at different cloud providers. That's sort of infrastructure as a service example if you will. And snowflake is a sort of data warehouse example and they're going down the stack. Well, they're trying to expand. So there are many examples like that. What was the question again? >> Is Supercloud 10 years out? What does it look like? What's the components? >> Yeah, I think the Supercloud 10 years out will expand because we will expand the software stack faster than the hardware stack and hardware stack will be expanding of course, with the custom chips and all that. There was the huge event yesterday was happening from AWS. >> Yeah, the Silicon. >> Silicon Day. And that's an eyeopening sort of movement and the whole technology consumption, if you will. >> And yeah, the differentiation with the chips with supply chain kind of herding right now, we think it's going to be a forcing function for more cloud adoption. Because if you can't buy networking gear you going to go to the cloud. >> Yeah, so Supercloud to me in 10 years, it will be bigger, better in the likes of HashiCorp. Actually, I think we need likes of HashiCorp on the infrastructure as a service side. I think they will be part of the Supercloud. They are kind of sitting on the side right now kind of a good vendor lost in transition kind of thing. That sort of thing. >> It's like Kubernetes, we'll just close out here. We'll make a statement. Is Kubernetes a developer thing or an infrastructure thing? It's an ops thing. I mean, people are coming out and saying Kubernetes is not a developer issue. >> It's ops thing. >> It's an ops thing. It's in operation, it's under the hood. So you, again, this infrastructure's a service integrating this super pass layer as Dave Vellante and Wikibon call it. >> Yeah, it's ops thing, actually, which enables developers to get that the Azure service, like you can deploy your software in sort of different format containers, and then you don't care like what VMs are those? And, but Serverless is the sort of arising as well. It was hard for a while now it's like the lull state, but I think Serverless will be better in next three to five years on. >> Well, certainly the hyperscale is like AWS and Azure and others have had great CapEx and investments. They need to stay ahead, in your opinion, final question, how do they stay ahead? 'Cause, AWS is not going to stand still nor will Azure, they're pedaling as fast as they can. Google's trying to figure out where they fit in. Are they going to be a real cloud or a software stack? Same with Oracle. To me, it's really, the big race is now with AWS and Azure's nipping at their heels. Hyperscale, what do they need to do to differentiate going forward? >> I think they are in a limbo. They, on one side, they don't want to compete with their customers who are sitting on top of them, likes of Snowflake and others, right? And VMware as well. But at the same time, they have to keep expanding and keep innovating. And they're debating within their themselves. Like, should we compete with these guys? Should we launch similar sort of features and functionality? Or should we keep it open? And what I have heard as of now that internally at AWS, especially, they're thinking about keeping it open and letting people sort of (inaudible)- >> And you see them buying some the Cerner with Oracle that bought Cerner, Amazon bought a healthcare company. I think the likes of MongoDB, Snowflake, Databricks, are perfect examples of what we'll see I think on the AWS side. Azure, I'm not so sure, they like to have a little bit more control at the top of the stack with the SaaS, but I think Databricks has been so successful open source, Snowflake, a little bit more proprietary and closed than Databricks. They're doing well is on top of data, and MongoDB has got great success. All of these things compete with AWS higher level services. So, that advantage of those companies not having the CapEx investment and then going multiple clouds on other ecosystems that's a path of customers. Stay one, go fast, get traction, then go. >> That's huge. Actually the last sort comment I want to make is that, Also, that you guys include this in the definition of Supercloud, the likes of Capital One and Soner sort of vendors, right? So they are verticals, Capital One is in this financial vertical, and then Soner which Oracle bar they are in this healthcare vertical. And remember in the beginning of the cloud and when the cloud was just getting born. We used to say that we will have the community clouds which will be serving different verticals. >> Specialty clouds. >> Specialty clouds, community clouds. And actually that is happening now at very sort of small level. But I think it will start happening at a bigger level. The Goldman Sachs and others are trying to build these services on the financial front risk management and whatnot. I think that will be- >> Well, what's interesting, which you're bringing up a great discussion. We were having discussions around these vertical clouds like Goldman Sachs Capital One, Liberty Mutual. They're going all in on one native cloud then going into multiple clouds after, but then there's also the specialty clouds around functionality, app identity, data security. So you have multiple 3D dimensional clouds here. You can have a specialty cloud just on identity. I mean, identity on Amazon is different than Azure. Huge issue. >> Yeah, I think at some point we have to distinguish these things, which are being built on top of these infrastructure as a service, in past with a platform, a service, which is very close to infrastructure service, like the lines are blurred, we have to distinguish these two things from these Superclouds. Actually, what we are calling Supercloud maybe there'll be better term, better name, but we are all industry path actually, including myself and you or everybody else. Like we tend to mix these things up. I think we have to separate these things a little bit to make things (inaudible) >> Yeah, I think that's what the super path thing's about because you think about the next generation SaaS has to be solved by innovations of the infrastructure services, to your point about HashiCorp and others. So it's not as clear as infrastructure platform, SaaS. There's going to be a lot of interplay between this levels of services. >> Yeah, we are in this flasker situation a lot of developers are lost. A lot of operators are lost in this transition and it's just like our economies right now. Like I was reading at CNBC today, and here's sort of headline that people are having hard time understanding what state the economy is in. And so same is true with our technology economy. Like we don't know what state we are in. It's kind of it's in the transition phase right now. >> Well we're definitely in a bad economy relative to the consumer market. I've said on theCUBE publicly, Dave has as well, not as aggressive. I think the tech is still in a boom. I don't think there's tech bubble at all that's bursting, I think, the digital transformation from post COVID is going to continue. And this is the first recession downturn where the hyperscalers have been in market, delivering the economic value, almost like they're pumping on all cylinders and going to the next level. Go back to 2008, Amazon web services, where were they? They were just emerging out. So the cloud economic impact has not been factored into the global GDP relationship. I think all the firms that are looking at GDP growth and tech spend as a correlation, are completely missing the boat on the fact that cloud economics and digital transformation is a big part of the new economics. So refactoring business models this is continuing and it's just the early days. >> Yeah, I have said that many times that cloud works good in the bad economy and cloud works great in the good economy. Do you know why? Because there are different type of workloads in the good economy. A lot of experimentation, innovative solutions go into the cloud. You can do experimentation that you have extra money now, but in the bad economy you don't want to spend the CapEx because don't have money. Money is expensive at that point. And then you want to keep working and you don't need (inaudible) >> I think inflation's a big factor too right now. Well, Sarbjeet, great to see you. Thanks for coming into our studio for our stage performance for Supercloud 22, this is a pilot episode that we're going to get a consortium of experts Cloud RRT like yourselves, in the conversation to discuss what the architecture is. What is a taxonomy? What are the key building blocks and what things need to be in place for Supercloud capability? Because it's clear that if without standards, without defacto standards, we're at this tipping point where if it all comes together, not all one company can do everything. Customers want choice, but they also want to go fast too. So DevOps is working. It's going the next level. We see this as Supercloud. So thank you so much for your participation. >> Thanks for having me. And I'm looking forward to listen to the other sessions (inaudible) >> We're going to take it on A stickers. We'll take it on the internet. I'm John Furrier, stay tuned for more Supercloud 22 coverage, here at the Palo Alto studios in one minute. (bright music)

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel AWS and our community partners. Welcome to the cubes Coverage of AWS reinvent 2020. The digital version I'm Lisa Martin and I'm joined by a couple of guests from Unisys. Please welcome unprompted high BP and Cloud CTO on income. Great to have you on the program. Thanks for joining me today. >>Great to be here leader >>and a new pre or a new Ram Raj, VP of Cloud Services. A new welcome. Great to have you on a swell. Great >>to be here in this virtual AWS being that great. >>Thank you. Very socially Distance We're following all the guidelines here. A new Let's start with you. I'd love to get just kind of Ah, you know, a vision of the AWS Unisys partnership. I know you guys are advanced consulting partner MSP. Tell me about that partnership. >>Absolutely. Lisa, we see our clients on a cloud journey which we accelerate with Unisys Cloud Services and AWS partnership is a big piece of that again. Way thorough. We have bean rated in aws MSP partner Come out very, very highly from those msb audited our, uh and we're investing in multiple competencies across the boat as well. So and we work very closely with AWS in terms off innovating in sharing our platform cloud 44 world map In looking at what our customers looking around the corner, what services could be co developed. So we're looking at some potential I o T engagements to jointly with AWS is, well, eso you're always co inventing and it's a great partnership with a W s >>excellent. And you let's stick with you Following on hybrid Cloud Journey you mentioned the Cloud Forte platform. I wanted to understand what that platform is, how your co developing that with AWS and how your customers are benefiting >>absolutely s. Um, every year Unisys does a cloud barometer study across thousands of our clients and and we got some interesting takeaways from that. Essentially two thirds of her clients that have started this cloud journey believe they don't really realize the benefits out of that and up thio 53% off. The the respondents said they needed some help with cloud security. And this is where I believe that Unisys Cloud Services has a strong viewpoint and can find their AWS, um, journey, no matter where, what challenges they're facing, whether it's budgetary challenges on optimizing AWS and whether it's getting I t operations right when you move your applications to AWS. Um, and is it is it getting the that I have seen cops models established? So no matter where clients are in the A journey, we look to accelerate with our set of solutions and services, and we're very proud about the fact that we respond very me to make sure our clients can innovate and achieve the business outcomes that they need. For example, with California Stink City, we were able to work with them on the AWS. John Pretty set up a native other lake and analytics on top of it so we could actually predict and influence graduation rates with students. Our scores are higher than any off are coming because of the outcomes that we deliver for our clients. And it's really about business outcomes and 40 platform, which helps us drive those outcomes. I mean, probably do you want to add on without cloud 40 platform? >>Sure, I know eso, as as I knew was saying cloud for the platform provides AH set off capabilities that allows us to create an offer highly differentiated services with Unisys Pipe and, as was mentioned earlier, our cloud solutions are are able to help customers no matter where they are in their car, in their cloud journeys, whether it's ah Greenfield opportunity, where they where the customers are intending to move to the cloud, or if it's a brownfield opportunity where they already have adopted the cloud and are looking to manage and operate and optimize their deployments. Cloud Forte Platform and our Cloud Solutions are able to provide, uh, customized solution for that customer context to really deliver the solution that addresses some of the pain points that you talked about. The keeping points really relate to security to get secured. It also relates to cost optimization and then optimizing the cloud purse, a cloud deployment hybrid cloud deployment of the key requirement. So our cloud 40 platform health drives the key use cases. The key pain points that our customers are looking for through a combination off accelerators, the number of cloud photo accelerators that enable customers to rapidly prove it provisioned customers and to rapidly migrate to the cloud with God rails so that they're the secure, their compliant. And then we've got the the Cloud Cloud 40 Cloud management platform for ensuring provisioning onda management and operations, along with cost optimization capabilities and the eyelid operations. So it's a comprehensive suite off services and solutions that addresses the key business outcomes. There are customers are are looking for >>outcomes. Focused is absolutely critical, especially these days. I knew I wanted to go back to you for a second. You talked about the Unisys Barometer study, and I like the name of that. When was that done? And I'm just wondering if there are certain things that you saw this year from a customer. Cloud journey. Need perspective because of the pandemic that have really influenced that barometer >>Wait Question. Hey said and development is study. The last version of it was done late last year, and we're still waiting on the ones from this year. So, but we're starting to see some of the trends that were influenced by the pandemic. We saw rush to cloud when the pandemic hit because business adopt to to remote workers to do more digital selling and then seeing our CEO is kind of struggle with optimizing and maximizing the results off their cloud. Spend right, So So that's a unique challenge that that we're seeing based on our tryingto interaction. So the rush to the cloud and the ask for more spend optimization and in terms of spend optimization, that's an interesting facet because, uh, it cuts through my multiple angles. It's it's cuts through having the platforms around, being able to dio right predictions on where you spend is going, and then it also it's across collaborative effort. Finn ops. As we see it, we call it as a synopsis of is that we bring to our clients it's passing with multiple organizations, including finance, to sometimes figure out. Where will this business be? Where should you spend be? What should be the reserved instance buys right. So combining cloud knowledge with financial knowledge and organizational and business knowledge. And that's the service that we bring to our clients with our phenoms services. At least a great question about how how is I kind of making the current business climate affecting our operating models? Um, like we said, there's increased ask for Finn ops is an increase. Ask for security ops because security threats have only amplified. And then the entire cloud ups model. I think hybrid cloud operations its's prompted us to rethink a lot off. How do we do? I t operations and and we're investing a lot in terms of automation and then underpinning that by ai led operation. So, um, you talked about the client management platform making sure we've got the best automation and processes which are repeatable around all the way from just doing provisioning to data operations to optimization. Just making all of that robust and repeatable um, is such a value. Add to clients because then they can see SOS can sleep at night knowing that everything is taken care off and, uh, the CIA, the CEOs can be rest assured that hey, they're not going to get that AWS bill that's going to make them hit the roof. So making sure we've got the right checks and balances and approval flow is all a part of our child management platform. And at that point, I know you really passionate AI and the role that it plays in operations and the entire cloud management platform and cloud for day platform So your thoughts in the poem? >>Yes, sir. No, thank you. But so yeah, yeah, I led operations is really part off the bigger question and the pain point that customers are faced with, which is I've reached the cloud. Now, how do I optimized and get benefits from the cloud on the benefits is around. You know, uh, utility for on demand access to resource is, uh, this cost optimization potential and the security, uh, cloud security potential that, if not managed properly, can really blow up in the face. And unfortunately, you know that in the case on the AI ops led Operation Side, that's again a huge foretell area where Unisys Investor is investing a lot off a lot off i p and creating a lot of differentiation. And the objective there is to ask Customers adopt cloud for day as they adopt Unisys Cloud services. They're able to take advantage off cost optimization capabilities, which essentially looks at historical usage on predicts future usage, based on a number off a I artificial intelligence and machine learning technologies that that is able to give you predictions that otherwise very hard to hard to get and, uh, in the cloud environment because of the sheer velocity volume and variety of the data. Doing that in a manual fashion is very, very hard. So automated machine learning driven approach is very productive is very effective on, you know, some of the outcomes that we've achieved is is just amazing. We've been able to save up to 25% off infrastructure costs through the island operations. About 40% off infrastructure incidents have bean reduced due to root cause analysis. Eso onda up to 35% off meantime, to resolution improvements in time. So huge customer benefits driven by e I led operations. The I am a approaches to following the problem. >>Let me see him If I could stick with you for a second big numbers that you just talked about and we talked a few minutes ago about outcomes. It's all about outcomes right now with this rush to cloud as as a new set. And we talked about this on the Cuba all the time. We've seen that the last eight months there is an acceleration of this digital transformation. I'm just curious una come from your perspective as the VP and CTO cloud how are you? What are some of the things that you advise customers to do if they need to rush to the cloud 21 just, you know, move their business quickly and not have the stay on life support. What are some of the things that you advise them to do when they're in this? Maybe a few months ago, when they were in the beginning of this? >>Yeah, that's that's a very interesting question, and lot off our clients are faced with that question as they either they're already in the cloud or the deciding to migrate to the cloud on the whole journey. Customer journeys for either stepping on the cloud or managing and operating the optimizing the cloud deployments is very key. So if you look at the market research that's out there and what we hear from our customers, the key challenges are really, really around. How do I migrate to the cloud without facing a lot of bottlenecks and challenges, and how do I overcome them? So that's the keeping pain point and again cloud for the advisory services and the cloud services that we offer allows customers to take up uh, toe work with us, and we work with the customer to ensure that they're able to do that on and then rapidly migrating to the cloud, managing and operating their operations. The hybrid cloud operations in optimized fashion is a huge challenge. How do they migrate? How do they migrate with security and compliance not being compromised once they're in the cloud, ensuring cloud security is and compliance is is maintained. Ensuring that the cost structure is is optimized so that they're not being mawr wants to move to the cloud compared to on premises and and then taking advantage of the whole cloud. Deployments to ensure you're looking at data are nothing the data to derive meaningful business outcomes. So if the entire end to end customer journey that needs to be looked at optimized. And that's where Unisys comes in with a cloud for the platform where we work with the customers to enhance the journeys. And in this case I want to mention CSU, which is, uh, the California State University, where the approach Unisys to really work with them to deliver uh, cloud services by enhancing the the objective was to enhance the student learning experience to enable adoption off off the technology by the students but also to achieve better performance, better adoption cost savings on we were able to deliver about 30% better performance help realize about 30 33% savings on 40% plus growth in adoption. On this was for about half a million student bodies. The 50,000 plus faculty staff spread across 23 campuses. So deploying, optimizing on and managing the infrastructure is something that Unisys does. Does that. And this is an example of that. I know you want to add anything to that. >>Absolutely Any Permanente's really well and, >>uh, >>it Z also securing, making sure securities with the >>journey >>it Z O Keefe or hybrid cloud. Um, uh, at least I'm sure you're aware of the Unisys tagline is securing tomorrow. So who better s so we really, really take that really, really seriously in terms of making sure we seek clients cloud journeys, and >>you >>probably heard the statistic from her. About 80% off cloud breaches are due to mis configuration, and this could have bean prevented. And and it doesn't. There's an element of the human angle in there. You believe strongly that can automate using our platform. So we've got 2000 plus security policies, which makes sure which again enables our clients to be compliant as well. So no matter what compliant standards, we've got several off our clients, for example, in the financial sector that are hosted on AWS and that we managed and they have to, especially the US They have to comply with Y de f s, the New York Department of Financial Services and making sure that they compliant with all the standards out there, which is next plus plus in this case. So that's part of what we do and enabling those journeys and then just keeping up with the rate of change like on different was talking about the variety and velocity of the data and and the rate of change of the applications out there, especially as businesses react to the pandemic and have to cope with the changing business paradigms out there. They have to be quick. Um, so we've got a drugmaker, one of the most premium drug makers in the US, who is who is against it on AWS, and, uh, they're racing for the cure and they are always looking at How do they get drugs quicker to the market? And that means accelerating applications. And we know that based on research by the Dora study, that if you adopt develops paradigms, you can accelerate 200 times faster than if you didn't. But then you have to underpin backward security as well. So really helping this adopt deaths are cops in all their deployments to AWS so that they can really race for the cure. That's the kind of business outcomes that we really, uh, are really, really proud to drive for our clients. >>Excellent on a pound. Let's wrap this up with you. We've just got about 30 seconds left sticking on the security front. It's such a huge topic right now. It has been for a long time, but even more so during these unprecedented times when you're talking with customers, what makes Unisys unique from a security perspective? >>So first thing is to understand what it takes to solve the hybrid cloud security problem. Like you said earlier, that's the biggest pain point that we hear from customers from our clients on. It's all over the market research all the breaches that have happened, like the zoom breach that happened that compromised about half a million, you know, user log ins. And then there was also the the Marriott breach, where about half a billion users names and credential for legal legal. So it Zaveri easy for customers, potential customers to become like a headline. And our our job really are the companies to make sure that they're not the next capital one or the next Marriott, uh, showing up in the newspaper. So we kind of look at their customer deployments situation on. We put together a comprehensive into an hybrid cloud solution, hybrid cloud security and compliance solution that includes look, securing their cloud infrastructure, their cloud workloads in terms of applications that they might have secured, and also to look at securing their applications, which may or may not be running on the cloud. So we kind of take a very holistic approach, using our homegrown solutions and partner solutions to create a comprehensive, robust hybrid cloud solution that really fits the customer context and and so we we are essentially a trusted adviser for our for our clients to create the solution, which again, at the cloud 40 ashore, which is a cloud security posture management solution. We have a cloud worker protection solution on then stealth, which is a full stack security solution if combined together with the other cloud Forte platform components on. We wrap this up in a matter of security services offering that allows US customers to have complete peace of mind as we take care off assessment remediation monitoring on, then continues Posture, posture, management. I know. Do you want to add anything to that? >>If I'm think in terms of closing, I think like you covered it well, we've got platform competence and services that run the gamut off the off the life cycle from migrations to two transformations. And one thing that I think in terms of outcomes of these, uh, when the service built around it have really helped us. Dr is, um is kind of responding especially to our public sector clients, very passionate about enabling cloud journeys for our public sector clients. And we'll take the example of Georgia Technology s So this is the G t A. Is the technology agency for all services are 14 of the agencies in Georgia and many of these public sector agencies had to quickly adopt cloud to deal with the report workers. Whether it was v D I whether it was chatbots on cloud, um, it was it was, ah, brand new world out there, the new normal. And it was just using the cloud management platform that anyone was refering to. We were able to kind of take them from taking three months. Plus to be able to provision workloads Thio thio less than 30 minutes to provision workloads. And this is this is across hybrid cloud. So and this is >>a big outcome, especially in this time where things were changing so quickly. Well, I wish we had more time, guys because I could tell you have a lot more that you can share. You're just gonna have to come back. And I like that. The tagline securing tomorrow. Adding on to what Anu Pump said So your customers don't become the next headline. I think they would all appreciate that. Thank you both. So much for joining me on the Cube today and sharing what's the latest with Unisys. We appreciate your time. Thank you. Thank >>you for having us >>aren't my pleasure for my guests. I'm Lisa Martin. And you're watching the Cube? Yeah,

>>from the Cube Studios in Palo Alto in Boston, connecting with thought leaders around the globe. These are cloud native insights. Hi, I'm stew Minimum and the host of Cloud Native Insights. And the threat that we've been pulling on with Cloud Native is that we needed to be able to take advantage of the innovation and agility that cloud in the ecosystem around it can bring, not just the location. It's It's not just the journey, but how do I take advantage of something today and keep being able to move for Happy to welcome back to the program one of our regulars and someone that I've had lots of discussion about? Cloud Cloud. Native Serverless So Cory Quinn, the Keith Cloud economists at the Duck Bill Group. Corey, always good to see you. Thanks for joining us. >>It is great to see me. And I always love having the opportunity to share my terrible opinions with people who then find themselves tarred by the mere association. And there's certainly no exception to use, too. Thanks for having me back. Although I question your judgment. >>Yeah, you know, what was that? Pandora's box. I open when I was like Hey, Corey, let's try you on video so much. And if people go out, they can look at your feet and you've spent lots of money on equipment. You have a nice looking set up. I guess you missed that one window of opportunity to get your hair cut in San Francisco during the pandemic. But be doesn't may Corey, why don't you give our audience just the update You went from a solo or mentor of the cloud? First you have a partner and a few other people, and you're now you've got economists. >>Yes, it comes down to separating out. What I'm doing with my nonsense from other people's other people's careers might very well be impacted by it considered tweet of mine. When you start having other clouds, economists and realize, okay, this is no longer just me we're talking about here. It forces a few changes. I was told one day that I would not be the chief economist. I smile drug put on a backlog item to order a new business cards because it's not like we're going to a lot of events these days, and from my perspective, things continue mostly a base. The back. To pretend people now means that there's things that my company does that I'm no longer directly involved with, which is a relief, that absolutely, ever. But it's been an interesting right. It's always strange. Is the number one thing that people who start businesses say is that if they knew what they were getting into, they'd never do it again. I'm starting to understand that. >>Yeah, well, Corey, as I mentioned you, and I have had lots of discussions about Cloud about multi Cloud server. Listen, like when you wrote an article talking about multi cloud is a worse practice. One of the things underneath is when I'm using cloud. I should really be able to leverage that cloud. One of the concerns that when you and I did a cube con and cloud native con is does multi cloud become a least common denominator? And a comment that I heard you say was if I'm just using cloud and the very basic services of it, you know, why don't I go to an AWS or an azure which have hundreds of services? Maybe I could just find something that is, you know, less expensive because I'm basically thinking of it as my server somewhere else. Which, of course, cloud is much more than so you do with a lot of very large companies that help them with their bills. What difference there differentiates the companies that get advantage from the cloud versus those that just kind of fit in another location, >>largely the stories that they tell themselves internally and how they wind up adapting to cloud. If the reason I got into my whole feel about why multi cloud is a worst practice is that of you best practices a sensible defaults, I view multi cloud as a ridiculous default. Sure, there are cases where it's important, and so I don't say I'm not suggesting for a second that those people who are deciding to go down that are necessarily making wrong decisions. But when you're building something from scratch with this idea toward taking a single workload and deploying it anywhere in almost every case, it's the wrong decision. Yes, there are going to be some workloads that are better suited. Other places. If we're talking about SAS, including that in the giant wrapper of cloud definition in terms of what was then, sure you would be nuts to wind of running on AWS and then decide you're also going to go with codecommit instead of git Hub. That's not something sensible people to use get up or got sick. But when I am suggesting, is that the idea of building absolutely every piece of infrastructure in a way that avoids any of the differentiated offerings that your primary cloud provider uses is just generally not a great occasionally you need to. But that's not the common case, and people are believing that it is >>well, and I'd like to dig a little deeper. Some of those differentiated services out there there are concerned, but some that said, You know, I think back to the past model. I want to build something. I can have it live ever anywhere. But those differentiated services are something that I should be able to get value out of it. So do you have any examples, or are there certain services that you have his favorites that you've seen customers use? And they say, Wow, it's it's something that is effective. It's something that is affordable, and I can get great value out of this because I didn't have to build it. And all of these hyper scaler have lots of engineers built, building lots of cool things. And I want to take advantage of that innovation. >>Sure, that's most of them. If we're being perfectly honest, there are remarkably few services that have no valid use cases for no customer anywhere. A lot of these solve an awful lot of pain that customers have. Dynamodb is a good example of this Is that one a lot of folks can relate to. It's super fast, charges you for what you use, and that is generally yet or a provision Great. But you don't have to worry about instances. You have to worry about scaling up or scaling down in the traditional sense. And that's great. The problem is, is great. How do I migrate off of this on to something else? Well, that's a good question. And if that is something that you need to at least have a theoretical exodus for, maybe Dynamo DV is the wrong service for you to pick your data store personally. If I have to build for a migration in mind on no sequel basis, I'll pick mongo DB every time, not because it's any easier to move it, but because it's so good at losing data, that'll have remarkably little bit left. Migrate. >>Yeah, Corey, of course. One of the things that you help customers with quite a bit is on the financial side of it. And one of the challenges if I moved from my environment and I move to the public cloud, is how do I take advantage not only of the capability to the cloud but the finances of the cloud. I've talked to many customers that when you modernize your pull things apart, maybe you start leveraging serverless capabilities. And if I tune things properly, I can have a much more affordable solution versus that. I just took my stuff and just shoved it all in the cloud kind of a traditional lift and shift. I might not have good economics. When I get to the cloud. What do you see along those lines? >>I'd say you're absolutely right with that assessment. If you are looking at hitting break even on your cloud migration in anything less than five years, it's probably wrong. The reason to go to Cloud is not to save money. There are edge cases where it makes sense, Sure, but by and large you're going to wind up spending longer in the in between state that you would believe eventually you're going to give up and call it hybrid game over. And at some point, if you stall long enough, you'll find that the cloud talent starts reaching out of your company. At which point that Okay, great. Now we're stuck in this scenario because no one wants to come in and finish the job is harder than we thought we landed. But it becomes this story of not being able to forecast what the economics are going to look like in advanced, largely because people don't understand where their workloads start and stop what the failure modes look like and how that's going to manifest itself in a cloud provider environment. That's why lift and shift is popular. People hate, lift and ship. It's a terrible direction to go in. Yeah, so are all the directions you can go in as far as migrating, short of burning it to the ground for insurance money and starting over, you've gotta have a way to get from where you are, where you're going. Otherwise, migration to be super simple. People with five weeks of experience and a certification consult that problem. It's but how do you take what's existing migrated end without causing massive outages or cost of fronts? It's harder than it looks. >>Well, okay, I remember Corey a few years ago when I talk to customers that were using AWS. Ah, common complaint was we had to dedicate an engineer just to look at the finances of what's happening. One of the early episodes I did of Cloud Native Insights talked to a company that was embracing this term called Been Ops. We have the finance team and the engineering team, not just looking back at the last quarter, but planning understanding what the engineering impacts were going forward so that the developers, while they don't need tohave all the spreadsheets and everything else, they understand what they architect and what the impact will be on the finance side. What are you hearing from your customers out there? What guidance do you give from an organizational standpoint as to how they make sure that their bill doesn't get ridiculous? >>Well, the term fin ops is a bit of a red herring in there because people immediately equate it back to cloud ability before their app. Geo acquisitions where the fin ops foundation vendors are not allowed to join except us, and it became effectively a marketing exercise that was incredibly poorly executed in sort of poisoned the well. Now the finance foundations been handed off to the Cloud Native Beauty Foundation slash Lennox Foundation. Maybe that's going to be rehabilitated, but we'll have to find out. One argument I made for a while was that developers do not need to know what the economic model in the cloud is going to be. As a general rule, I would stand by that. Now someone at your company needs to be able to have those conversations of understanding the ins and outs of various costs models. At some point you hit a point of complexity we're bringing in. Experts solve specific problems because it makes sense. But every developer you have does not need to sit with 3 to 5 days course understanding the economics of the cloud. Most of what they need to know if it's on a business card, it's on an index card or something small that is carplay and consult business and other index ramos. But the point is, is great. Big things cost more than small things. You're not charged for what you use your charger for. What you forget to turn off and being able to predict your usage model in advance is important and save money. Data transfers Weird. There are a bunch of edge cases, little slice it and ribbons, but inbound data transfer is generally free. Outbound, generally Austin arm and a leg and architect accordingly. But by and large for most development product teams, it's built something and see if it works first. We can always come back later and optimize costs as you wind up maturing the product offering. >>Yeah, Cory, it's some of those sharp edges I've love learning about in your newsletter or some of your online activities there, such as you talked about those egress fees. I know you've got a nice diagram that helps explain if you do this, it costs a lot of money. If you do this, it's gonna cost you. It cost you a lot less money. Um, you know, even something like serverless is something that in general looks like. It should be relatively expensive, but if you do something wrong, it could all of a sudden cost you a lot of money. You feel that companies are having a better understanding so that they don't just one month say, Oh my God, the CFO called us up because it was a big mistake or, you know, where are we along that maturation of cloud being a little bit more predictable? >>Unfortunately, no. Where near I'd like us to be it. The story that I think gets missed is that when you're month over, month span is 20% higher. Finance has a bunch of questions, but if they were somehow 20% lower, they have those same questions. They're trying to build out predictive models that align. They're not saying you're spending too much money, although by the time the issues of the game, yeah, it's instead help us understand and predict what's happening now. Server less is a great story around that, because you can tie charges back to individual transactions and that's great. Except find me a company that's doing that where the resulting bill isn't hilariously inconsequential. A cloud guru Before they bought Lennox, I can't get on stage and talk about this. It serverless kind of every year, but how? They're spending $600 a month in Lambda, and they have now well, over 100 employees. Yeah, no one cares about that money. You can trace the flow of capital all you want, but it grounds up to No one cares at some point that changes. But there's usually going to be far bigger fish to front with their case, I would imagine, given, you know, stream video, they're probably gonna have some data transfer questions that come into play long before we talk about their compute. >>Yeah, um, what else? Cory, when you look at the innovation in the cloud, are there things that common patterns that you see that customers are missing? Some of the opportunities there? How does the customers that you talk to, you know, other than reading your newsletter, talking Teoh their systems integrator or partner? How are they doing it? Keeping up with just the massive amount of change that happens out >>there. Get customers. AWS employees follow the newsletter specifically to figure out what's going on. We've long since passed a Rubicon where I can talk incredibly convincingly about services that don't really exist. And Amazon employees won't call me out on the joke that I've worked in there because what the world could ever say that and then single. It's well beyond any one person's ability to keep it all in their head. So what? We're increasingly seeing even one provider, let alone the rest. Their events are outpacing them and no one is keeping up. And now there's the persistent, never growing worry that there's something that just came out that could absolutely change your business for the better. And you'll never know about it because you're too busy trying to keep up with all the other number. Every release the cloud provider does is important to someone but none of its important everyone. >>Yeah, Corey, that's such a good point. When you've been using tools where you understand a certain way of doing things, how do you know that there's not a much better way of doing it? So, yeah, I guess the question is, you know, there's so much out there. How do people make sure that they're not getting left behind or, you know, keep their their their understanding of what might be able to be used >>the right answer. There, frankly, is to pick a direction and go in it. You can wind up in analysis paralysis issues very easily. And if you talk about what you've done on the Internet, the number one responsible to get immediately is someone suggesting an alternate approach you could have taken on day one. There is no one path forward for any six, and you can second guess yourself that the problem is that you have to pick a direction and go in it. Make sure it makes sense. Make sure the lines talk to people who know what's going on in the space and validate it out. But you're going to come up with a plan right head in that direction, I assure you, you are probably not the only person doing it unless you're using. Route 53 is a database. >>You know, it's an interesting thing. Corey used to be said that the best time to start a project was a year ago. But you can't turn back time, so you should start it now. I've been saying for the last few years the best time to start something would be a year from now, so you can take advantage of the latest things, but you can't wait a year, so you need to start now. So how how do you make sure you maintain flexibility but can keep moving projects moving forward? E think you touched on that with some of the analysis paralysis, Anything else as to just how do you make sure you're actually making the right bets and not going down? Some, you know, odd tangent that ends up being a debt. >>In my experience, the biggest problem people have with getting there is that they don't stop first to figure out alright a year from now. If this project has succeeded or failed, how will we know they wind up building these things and keeping them in place forever, despite the fact that cost more money to run than they bring in? In many cases, it's figure out what success looks like. Figure out what failure looks like. And if it isn't working, cut it. Otherwise, you're gonna wind up, went into this thing that you've got to support in perpetuity. One example of that one extreme is AWS. They famously never turn anything off. Google on the other spectrum turns things off as a core competence. Most folks wind up somewhere in the middle, but understand that right now between what? The day I start building this today and the time that this one's of working down the road. Well, great. There's a lot that needs to happen to make sure this is a viable business, and none of that is going to come down to, you know, build it on top of kubernetes. It's going to come down. Is its solving a problem for your customers? Are people they're people in to pay for the enhancement. Anytime you say yes to that project, you're saying no to a bunch of others. Opportunity Cost is a huge thing. >>Yeah, so it's such an important point, Cory. It's so fundamental when you look at what what cloud should enable is, I should be able to try more things. I should be able to fail fast on, and I shouldn't have to think about, you know, some cost nearly as much as I would in the past. We want to give you the final word as you look out in the cloud. Any you know, practices, guidelines, you can give practitioners out there as to make sure that they are taking advantage of the innovation that's available out there on being able to move their company just a little bit faster. >>Sure, by and large, for the practitioners out there, if you're rolling something out that you do not understand, that's usually a red flag. That's been my problem, to be blunt with kubernetes or an awful lot of the use cases that people effectively shove it into. What are you doing? What if the business problem you're trying to solve and you understand all of its different ways that it can fail in the ways that will help you succeed? In many cases, it is stupendous overkill for the scale of problem most people are throwing. It is not a multi cloud answer. It is not the way that everyone is going to be doing it or they'll make fun of you under resume. Remember, you just assume your own ego. In this sense, you need to deliver an outcome. You don't need to improve your own resume at the expense of your employer's business. One would hope, >>Well, Cory, always a pleasure catching up with you. Thanks so much for joining me on the cloud. Native insights. Thank you. Alright. Be sure to check out silicon angle dot com if you click on the cloud. There's a whole second for cloud Native insights on your host to minimum. And I look forward to hearing more from you and your cloud Native insights Yeah, yeah, yeah, yeah, yeah.

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. Hello, everyone, and welcome to this week's Cuban sites, powered by ET are in this breaking analysis, we want to accomplish three things. First thing I'll do is we'll recap the current spending outlook. Next, we want to share some of the priorities and sentiments and the outlook that we're hearing from leading tech execs that we've been interviewing in the past couple of weeks on the remote cube. And finally, we'll take a look at really what's going on in the market place, a little bit of a look forward and what we expect in the coming weeks and months ahead. Now, as you know, E. T. R was really the first to quantify with real survey data the impact of covert 19 on I t spend. So I just want to review that for a moment. This CTR graphic right here shows that results from more than 1200 CIOs and I T practitioners. That shows that they expect their I t spending how they're they're spending on the change in 2020 now, look at the gray bar shows a very large number of organizations that they're plowing ahead without any change. In overall, I spend about 35% now shown in the green bars before 21% of respondents are actually increase their budgets this year. And the red bars, of course, they show the carnage. Really, 28% of customers are expecting a decrease of more than 10% year on year. Now, as we've reported, the picture would look a lot worse were it not for the work from home infrastructure, offset by E spending on collaboration tools and related networking security. VPN, VD I interest infrastructure, etcetera. Now remember each year launched this survey on March 11th and ran it through early April. So it caught the change in sentiment literally in real time on a daily basis. And that's what I'm showing here in this graphic. What it does is it overlays key events that occurred during that time frame and what E. T. R did was they modeled and rear end the data excluding the responses prior to each event. So, of course, the forecast got progressively worse over time. But as you can see on the Purple Line. There was a little bit of an uptick in sentiment from the stimulus package, and it looked like, you know, there's another. It looks like there's another economic cash injection coming soon. Now, as we've reported, the card forecast calls for around 4% decline in I t spend from 2020. That's down from plus 4% prior to Corona virus. It's ER has now entered its self imposed quiet period for two weeks. But what we're doing here is showing some of the sectors that we're watching closely for big changes. We're gonna drill into these over the next several weeks. Now, of course, is we've reported we're seeing a substantial cut in I t spend across the board. Capex will be down. We would expect sectors like I t consulting and outsourcing to be way, way down as organizations put a lot of projects on the back burner. But there are bright spots is shown here in the green. One that we really haven't highlighted to date is cloud really haven't dug into that and also data center related services around Cloud Cloud, we think, is definitely going to remain strong and these related services to get connect clouds via Coehlo services and really reducing latency across clouds and on Prem, we think will remain strong. Now I want to shift gears a little bit and talk about some of the learnings and takeaways from our conversations with CSOs over the past couple of weeks. One of the great things about the Cube is we get to build relationships with many, many people. Over the past 10 years, I've probably personally interviewed close to 5000 people, so we've reached out to a number of those execs over the last couple of weeks to really try and understand how they're managing through this cove in 19 Crisis. So let me summarize just some of the things that we heard. And then I'll let the execs speak to you directly first, of course, like tech execs, are there half full people perpetual optimist, if you will. It was interesting to hear how many of the people that I spoke with, that they actually had early visibility on this crisis. Why? Because a lot of our operations, we're actually in China and other parts of Asia, so they saw this coming to an extent, and they saw it coming to the U. S. And so you know, there were somewhat ready and you're here. They all had on air of confidence about their long term viability and putting their put their employees ahead of profits. But the same time, once they see that their employees are okay, they want to get them focused and productive. Now what they've also done is they've increased the cadence and the frequency of their communications. Yeah, and most, if not all, are trying to get back with a free no strings attached software and other similar programs. But the bottom line is, they really don't know what's coming. They don't know when this thing will end. They don't know what a recovery really is gonna look like when people are going to feel safe traveling again what the overall economic impact is gonna be. So I think it's best summarized to say they're hoping for the best, but planning for the worst. But let's listen to this highlight clip that we put together of five execs that I talked to along with John Furrier Melissa DiDonato of Susa. Frank Sluman, who had snowflake and he's formerly the chairman and CEO of service. Now Jeremy Burton is the CEO of a company called Observe. He used to be the CMO of Dell and EMC. Before that, brand products Sanjay Poonam as the CEO of VM Ware and ST ST Vossen heads up Cisco's collaboration business. Roll the clip. >>What keeps me up at night now and how I wake up every morning is wondering about the health of my employees, that a couple of employees, one that was quite ill in Italy. We were phoning him and calling and emailing him from his hospital bed. And that's what's really keeping me going. What's inspiring me to leave this incredible company is the people and the culture that they built that I'm honoring and taking forward as part of the open source value system. My first movers, Let's not overreact. Take a deep breath. Let's really examine what we know. Let's not jump to conclusions. Let's not try to project things that were not capable of projecting death hard because, you know, we tend to have sort of levels off certainty about what's gonna happen in the next week in the next month, and so on. All of a sudden that's out of the window creates enormous anxiety with people. So, in other words, you've got a sort of a reset to Okay, what do we know? What can we do? What we control, Um, and and not let our minds sort of, you know, go out of control. So I talk to are people time of maintain a sense of normalcy focused on the work. Stay in the state in the moment. And ah, I don't turn the news feed off. Right, Because the hysteria you get through that through the media really not helpful. Just haven't been through, you know, a couple of recessions where, you know, we all went through 9 11 You know, the world just turn around and you come out the other side. And so the key thing is, you said it very much is a cliche, but you gotta live in the moment. What can I do right now? What can I affect right now? How can I make sure that you know what I'm working on is a value for when we come out the other side. And when you know more code balls come along. I think you'd better reason about that with the best information you have at the time. I always tell people the profits of VM Ware wheat. If you are not well, if your loved ones not well, if you take a picture of that first, we will be fine. You know this to show fast, but if you're healthy, let's turn our attention because we're not going to just sit in a little mini games. We're gonna so, customers, How do we do that? A lot of our customers are adjusting to this pool, and as a result they have to, you know, either order devices, but the laptop screens things were the kinds to allow work for your environment to be as close to productive as they're working today. I do see some, some things coming. Problem right? Do I expect the volumes off collaboration to go down? You know, it's never going to go back to the same level. The world as we know it is going to change forever. We are going to have a post code area, and that's going to be changed for the better. There's a number of employees who have been skeptical, reticent, working from home were suddenly going to say just work from home. Thing is not so bad after all. >>So you can hear from the execs who all either currently or one point of lead large companies in large teams. They're pretty optimistic now. The other thing that's Lukman told me, by the way, is he approves investments in engineering with no qualms because that's the future of the company. But he's much more circumspect with regard to go to market investments because he wants to see a high probability of yield from the sales teams before making investments there. I also want to share some perspectives that I've learned from small early stage companies, and we've all seen the Sequoia Black Swan memo and you might remember there onerous rest in peace, good times the alert that they put out in 2008. It basically they're essentially advising companies to stop spending on non essential items. By the way, another slew of society also somewhat scoffed at this advice, and he told me on the Cube, you should always stop spending money on non essential items. At any rate, I've talked to a number of early stage investors and portfolio companies, and I'll share a little bit of their play Bach playbook that they're using during this crisis, and it might have some value to the cut, cut cut narrative that you're hearing out there. I think the summary for these early stage startups is first focus on those customers that got you to where you are today. In other words, don't lose sight of your core. The second thing is, try to hone your go to market and align it with current conditions. In other words, paint a picture of the ideal customer and the value proposition that you deliver specifically in the context of the current market. The third thing is, they're updating their forecast more frequently and running sensitivity analysis much more often so that they can better predict outcomes. I e. Reset. You're likely best case and worst case models. The third is essentially reset your near term and midterm plans and those goals and re balance your expense portfolio to reflect these new targets. And this is important by the way, to communicate to your investors. When I've seen is those companies with annual recurring revenue there actually in pretty good shape, believe it or not, in almost all cases, I've seen targets lowered. But there are some examples of startups that are actually increasing their outlook. Think, Zoom, even those who is not a startup anymore. But generally I've seen resets of between 5 to 10% downward, which you know what often is in pretty much in line with the board level goals. And I've seen more drastic reductions as well of up to 50% now. So we've heard some pretty good stories from larger tech companies and some of these VC funded startups. Now I want to talk about small business broadly and what we're hearing from small business owners and also the banks that serve them. Look, I'm not going to sugar coat this many small businesses, as you well know, in deep trouble. They're gonna go out of business. They're laying off people on. There are a number of unemployed the aid package that the government's putting forth the small businesses. It's not working its way through the banking system. Not nearly fast enough, despite the Treasury secretaries efforts, The bottom line is banks don't want to make these loans to small businesses. Right now, there's too much that they don't understand. They're making no money on these loans they're being overwhelmed with. Volume will give you some examples. Bank of America, when the small business payroll program first hit signal that would Onley help companies with both ah banking relationship and an existing lending relationship with the bank UPS is another example said it was only gonna directly help companies with over 500 employees. And for small businesses, it was outsourcing that relationship to another firm, which, of course, meant you had to go through a new rectal exam, if you will, with that new firm. In a way, you can't blame the banks. They're being asked to execute on these programs without clear guidance on how they're supposed to enforce guidelines. And what happens if they make a mistake? Is the federal government gonna pull their guaranteed backing? What are those guidelines? They seem to be changing all the time. And what's the banks, liability and authority to enforce them? Why don't I spend time talking about this? Well, nearly half of US employees work for small businesses, and nearly 17 million workers as of this date have filed for unemployment, and I'll say the banks got bailed out in the financial crisis of 2008 and they need to step up, period, and the government needs to help them, all right. The other buzz kill data that I want to bring up is our national debt. Now many have invoked that there's no such thing as a free lunch, including the famous Milton Friedman, the Economist who I'm gonna credit. Others have said it, but I'll give it to him. Why? Because he espoused controlling the money supply and letting the market's fix themselves bailouts. The banks, airlines, Boeing, automakers, etcetera, those air antithetical to his underlying philosophy. Currently, the U. S national debt is $24 trillion. That's $194,000. Protects player Americans. Personal debt is now 20 trillion. Our unfunded liabilities, like Social Security, Medicare, etcetera now stands at a whopping 139 trillion. And that equates to about 422,000 per citizen. Think about this. The average liquid savings for US family is 15 K, and the U. S debt is now 111% of GDP. So we've been applying Kenzie and Economics for a while now. I'm gonna say it seems to have been working. Think about the predictions of inflation after the 8 4000 and nine crisis. They proved to be wrong. But my concern is I don't see how we grow our way out of this debt, and I worry about that. I've worried about this for a long time, but look, we're knee deep into it and it looks like there's no turning back so well, I'll try to keep my rhetoric to a minimum and stay positive here because I think there is light at the end of the tunnel. We're starting to see some some good opportunities emerging here just in terms of flattening the curve and the like. One of the things that pretty positive about is there gonna be some permanent changes from Cove it. It's kind of ironic that this thing hit as we're entering a new decade decade and as I said before, I expect digital transformations to be accelerated because of this crisis and the many companies that have talked digital from the corner office. But I haven't necessarily really walked the walk, I think will now I think is going to be more cloud more subscription less wasted labor, more automation, more work from home unless big physical events, at least in the next couple of years. So that's kind of the new expectation. As always, we're going to continue to report from our studios in Palo Alto and Boston, and we really welcome and appreciate your feedback. Remember, these segments are all available as podcasts, and we're publishing regularly on silicon angle dot com and on wiki bond dot com. Check out ctr dot plus for all the spending action, and you can feel free to comment on my LinkedIn post or DME at development or email me at David Volante Wiki. Sorry, David Vellante is silicon angle dot com. This is Dave Volante for the Cube Insights powered by CTR. Thanks for watching everyone. We'll see you next time. >>Yeah, yeah, yeah, yeah.

>>from San Francisco. It's the queue covering our essay conference. 2020. San Francisco Brought to you by Silicon Angle Media >>Welcome back to our C for cube coverage Here in our state conference, I'm John Furrier with the Cube. Our next guest is a car guy who's with the McAfee, and he's a technical fellow, formerly chief scientist and co founder of Sky High Networks, which was acquired by really pioneering. Some of what we're seeing is Cloud is the driver screen paradigm. Thanks for coming on, John. Thank you so much. I know a lot of times we'll jump right in. The cloud is changing the game. You guys saw the wave early at sky high. So how is it rendered itself today? Was seeing the signals out there. How all the members earnings were down this week because of their on premises is shifting to the cloud. We think we'll do well, but it's also impacting. Everyone's got a shift, including their customers. What's going >>on? This is amazing, you know, last year, I think a few months back we did a survey of large enterprises. For the first time, we found that the majority of the CIOs and CSOs felt that cloud is more secure than on Prem. That's a big deal. I mean, I've never seen that before. I didn't expect it to be this quick, but that that actually manifest itself in and Price is ready to be cloud first are very cloud friendly. And that's significantly different from when we started Sky High and even a couple of years ago on. Because of that, how you secure the data, how you secure it connects to the kind of threats I need to be looking at the different lens on. I mean, you've seen breaches happen every week. If you look back over the last year and a lot of those cloud native threats, these are not malware based breaches of data, which is what you would think of any traditional look at micro services breaches. No, these cloud breaches, because Cloud has It's very good, right? It's got transparency. It's got AP eyes. So whatever AP eyes use, a bad actor could use it as well, really. Land exfiltrate on expanding the cloud footprint is very different from how traditional malware attacks happen within the enterprise. And so we've been looking at cloud native. That's on what it means to even secure data in the cloud, which is very different from, you know, securing data in your enterprise. For example, I run a deal, be on my laptop. You know what kind of since the data's there, but in the cloud you don't do that because the data is cloud native and we've In our analysis, you've seen that 50% of traffic is cloud to cloud, so it bypasses a traditional enterprise network by positive devices. And so when you talk about data protection, you need to look at new ways of understanding, cloud and integrating into. >>It's interesting I've talked to many CSOs have been cloud native and born in the cloud, and they say their their their worst day in cloud security is better than any day they've had on premise security. There's actually more security in the cloud, but then when they start getting into hybrid, and now what we see is multi clouds. That third wave coming, you start to look at on premise to Cloud Cloud Cloud. You have a network component becomes a big part of Could you share your vision on how the network needs to evolve because Amazon and Azure they have their own networks. It's also not on premise, either, So I want to run a route from here to here. What's the network? And >>I don't think network this security controls going away. And if you look at what McAfee and insist today is what we call the unified cloud edge, we acknowledge that security's it's security at the end point at the cloud and in the network. So we are the first product really. Teoh integrated policies on visibility into data flow between the clouds you want from the cloud on any device. And so in that model you have a network components of users Secure Gateway, which is cloud hosted. So it's interesting you see that a lot of security do there also becoming cloud native. So that's what we've leveraged. Our cloud Native Cloud security platform, cloud, native Swat, Web gateway as well as ER and endpoint. Protection from the >>question is the chief scientist Andrew you, are the security posture of companies certainly is changing the cloud. How would you describe the current posture from a customer perspective? The cloud in a good way. What do they need to be thinking about. >>Yeah, I think actually, Gartner said it very well. In fact, a couple of years you last year they had a mq Mr. Actually said that 99% off your data breaches in the cloud is going to be because of customer fall. It may be the most trivial things, but those are the ones that get you right. And it turns out that cloud is easy and quick that up. It's very easy to miss configure >>stuff. So human error. >>Yeah, it's completely, and I kid you not. Majority of the shoes are failure to understand your shared responsibility >>model or the cost of a breach. When the doors wide open, they're just walking through. That's not really a breach that called just the door's open they walk through. I mean, that's what you're talking about >>exactly. I have the responsibility of the customers to configure it appropriately. I think that will take care of the lowest hanging fruit for them and then as their wall, their workloads moving into the cloud. They need to think about hybrid and not get into the trap of creating silos. That's a classic example, right? Security vendors were created building that kind of product companies around it, the container security. They're VM security. There's cloud security. At the end of the day, our customers are moving their workload and application in the cloud. They need a consistent way to ensure that configurations right data is secure and there's no threats to it. I we need to make that model of simplicity of consistency across all of these vendors. >>It's clear that McAfee is transforming their business to cloud. You guys have been a big part of that. Congratulations. How would you describe McAfee? Is current situation with respect to the cloud growth Now the on premise, cloud hybrid integration and multi cloud coming because you now have this entire systems architecture, a k a cloud, multi cloud hybrid public all need to work together. >>I think McAfee is very well positioned and honestly, when we joined McAfee, McAfee strength was in the end point and actually got a very good business in the server and pointed out with the CWS product when we came into the cloud native approach where that product was selling very well for the private data center on Prem, what we were able to do is add a cloud security story, but also create a sort of be the catalyst for ambition and vision is really this broad umbrella within McAfee for doing orderly cloud security. But, er insights, not products which can run in the cloud at scale in a multi tenant manner. >>You can create a data driven approach to make that human personalization work. Exactly. Don't forget, secure. That s three bucket. Exactly. I think when you go to your car is like you left your keys in. There's a new level of personalization coming from the data that you say that the >>video, clearly what we see with customers is going back to the shared responsibility model. It's almost like you're in the car. The center has some responsibilities rental agency and the car manufacturer responsibility that all of us have Understanding what those >>responsible. Just talking Another guest. We're saying, Hey, that role is used data to tell the human not to screw up. Yeah, you're flying on a plane, you gotta go secure your door. It's about reminding the environment you're working with getting >>doing it, doing it in real time because configurations change in the CD pipelines and real time right on being able to catch that and what we've done a part of my career the last year is do something that we call it Shift left, which is really before an application is born to make it secure. And it's possible in the cloud because it's very transparent. We can infrastructure this quote. So as the court gets checked in weaken, validate it. And >>well, I'm glad you brought that point real quick. I know you got to go. Dev. Ops has been a real influence on a lot of infrastructure as code, but now you have SEC ops dev sec off. So it's kind of the same melting pot. That's agility iteration real time. What's your version of security version of Dev Ops? >>Yeah, it is that it is basically playing whack a mole after the fact, you know, going and looking at configuration failures, DLP, whatever Push it. It actually helps the security team because they don't have bandwidth. They want to be able to coop developers and literally 100 X more developers and security folks. And so being able to integrate it with the tooling for continuous integration deployment is something we've done. It's a huge win for customers. >>Thanks for sharing the inside. We'll be able to empower event coming up. We'll do more interviews there and do a deep dive real quick. What are you working on right now? That's exciting. That's getting you motivated. That puts a little spring in your step. What's happening? >>I mean, this is a huge issue on Cloud Native sets on how we use miter and other frameworks to make the soccer teams more not get lost in all the nice on. You. See a lot of that work from us, but there's a lot of exciting >>work that innovation coming out of a lot of innovation. Software driven, obviously. Cloud. Yeah, we'll get back and talk about some of the cloud native nuances. KUBERNETES. State State. We've done a lot of data. We had a lot of action, lot of tech, a lot of potential opportunities, challenges. Thanks for coming on the Cube here with the Cube. We're here on the ground at RSA Conference. We'll be right back. Thanks for watching. >>Yeah, yeah,

>>live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Live on Welcome to the Cube. 2020 is the first Cube segment and session for 2020 next 10 years. This is the 10th year the Cube has been in operation. We're here in Barcelona for Cisco Live, but we're going to spend the next few minutes talking about the Enterprise Tech trends for 2020 and beyond. Really looking back at the past 10 years and then forward 10 years, I'm John Furrier, host of The Cube with Dave Vellante, Stew Minimum and The Cube team. The analysts want to analyze Enterprise tech. You know we love to do that day, but I think more notable is this is our first interview in 2020 for the year. We're kicking off our 10th year as we close down the Cube for 10 year anniversary in May. Quite an evolution. A lot of things we got right with Wiki bond research and the Cuban sites. Ah, lot of things we saw early, and that's the benefit of the Cube. And now, more than ever, it's more complex. It's a lot of noise. A lot of people talking about value propositions here. They're a lot of cloud. I think the reality is set in Cloud is here. It's not a question of why and when it's now. And the impact is just hitting mainstream Tech and Enterprises now leading the category in investments, venture capital, private equity M and A over consumer companies seeing much more focused emphasis on what's going on in the enterprise, which is business. Incredible opportunity ahead. 2020. What's in store? >>Well, you know, the last decade we obviously saw the consumer ization of i t. There was all that social media hype, and I think you're right, John. The enterprises now where the action is. But the last 10 years have been all about Cloud. What got us here to 2020 is not what's going to power through the next 10 years. I think it's not only Cloud, it's cloud plus data, which we definitely bet on it, right. But now the injection of machine intelligence on that data, which, of course, is running in the cloud for scale. So the real big question now is what's gonna happen in the cloud guys Amazon and Azure and clearly have momentum. Google actually beginning to pick it up a little bit, but particularly the case of Amazon who dominated the last decade. Yeah, it's gonna be not as easy for them going forward, You know, everybody now realizes. Wow, they got it right. You said many times they were misunderstood. Well, I think now people are beginning to realize how powerful they are. And the enterprise players have really begun to respond. And they don't like to give up their position to be really interesting to see how that goes. And, of course, you know we're going to talk more about Cisco, but still what? Your thoughts? >>Yeah. So, John, I think some of the things that we looked at as bleeding edge over the last 10 years are becoming a bit more mainstream. The role of the developer. We know the developers, the new king maker. You look where we are in the DEV Net zone. Definite zone. A couple years ago was small and there was people were kind of exciting everything. You look at it today, it looks much more like the regular show. It has really become mainstream. Dave said Cloud Cloud is mainstream developers mainstream that connection between the business enterprise, tech talk about and these other pieces really coming together. That's where the data really is the next fly wheel for what's happening and obviously machine learning the application developer. And still, it's about moving faster that companies are looking to do, and that is what all of the last 10 years has been building for. And now it's the new normal >>great, and I want to get into some of the ways I think when you look at this, because we can always rattle into any kind of technology. But you know, one things that we love to do is look at the ways what waves are going to come where you get your thoughts on that. But I think just let's reflect on what's going on around us right now. The Cube is the 10th year finishing up its 10th year. We're in the media business had a comment from someone here, a distinguished engineer at Cisco said. I can't believe you guys are a technology company. I had tweeted out yesterday on Barcelona about our Cube alumni list. It's turning into an expert network If you look at what's going on with Facebook and with Trump and the impeachment, you're seeing a changing of the guard in the media business. So we as media with Cube, it's looking angle has become interesting, and I think I bring this up because that's kind of out our new model that we've been doing for 10 years. But if you look at how people share information, misinformation, quality information, you're starting to see a paradigm where you don't know what the trust vendor A says they could do this vendor b so they could do that. Amazon says. This Azure says that. So I think the practitioners and consumers of I t in Enterprise Tech, the buyer's Where's the truth day? I mean, the models are completely changing. I've heard comments in the analyst firms are struggling to get modern press outlets are being dwindled down to a handful in the enterprise that new networks are being formed. The expert APS are out there. So this is a tell sign, Yeah, that the world more complex and different than ever before. >>The authentic community doesn't lie right, And your peers at the other day when you have private conversations. That's where the truth comes out. To the extent that you can like to bring that to the Cuban sessions like this, that's really where you say, extract the signal from the noise. We try to do that. We try to do it for 10 years, and I think that's part of the reason why we've been so successful. But at the same time, Look way no were funded by sponsors, which is great. We really appreciate their support, but at the end of the day, we've always gotta put forth what we think is actually happening out there. >>Let's get into some of the ways because it sets the context. So as you have these networks forming, you have cloud technology. You know, Os, I model looks, but I look back at the nineties, and I think this is a proposed to the Cisco show at that time. Dave, During the mini computer wave that set the stage for what became the PC revolution and then ultimately inter networking category, you had proprietary network operating systems, IBM s and a digital equipment corporation deck net, etcetera, etcetera and incomes. The open systems interconnect seven layer stack that changed the industry. In today's world, we have open source, but people are chirping about open core. There seems to be a trend towards proprietary now. Amazon is the big proprietary cloud. >>I don't >>mean proprietary in the sense of you can work with it, but scale is the new proprietary. So you almost have this revert back to old tactics of differentiation, and I think that's not good for customers. I think you look at the customer situation, it creates more complexity. And so I think that's why we're seeing multi Cloud really be a trend, because whoever can connect all the clouds and do that seamlessly is going to win big. And I think that's a TCP I peed like Dynamic >>John. It's a really interesting point because open source in general is more important than ever before. Enterprise companies are contributing. The big vendor community is spending more time on open source than they are on standards anymore. Over. If you look at the big projects out there limits kubernetes like more than half of the contributors have full time jobs. They work for big companies, but as you said, how am I consuming that get hub is a company at the core of open source. But get the platform itself is a proprietary, that open core model that you talked about. And of course, Microsoft built them for a big number. And some people have a little bit concerned >>when might get Lab is there >>and get lab right. Of course, similar they deliver their application itself. Is that open core model so open source is there. Open core is the model that they're doing. Absolutely. It is interesting because, as you said, open source is more pervasive than ever. But I'm consuming it more as >>a service >>from Amazon or from these >>providers face to the bitching and moaning that's going on the open source because there is kind of a lot of chirping going on around. Well, you know, if I build this in the open, is it truly open being co opted by? So the big clouds and you got Microsoft Microsoft Open Office 3 65 That's not gonna go away for the next 10 years. They've SAS ified, their core offering almost like a lock in. I mean, so so it seems to be just >>it smells >>like that old nasty >>habit. Everything we're entering this decade with four trillion years of Amazon hit Trillionaire Club in 2018. Drop town lost Akamas, Russ Hanneman would say, But but Apple, Google, Microsoft and an Amazon they looking vulnerable, don't in the trillions club. But I mean, I would point out, You're saying John, there will be a backlash. Open source Open, open distributed computing tier networks. I don't think I mean history would suggest that these big whales, they're not invulnerable. They can be taken down and open. Source is is one way out? >>Well, it's interesting. One of the things you look at one of the big threat for Cisco for a long time was like, Oh, STN is going to take over what Cisco's doing Well, Cisco still doing just fine with software defined networking and what that having the open compute model for networking is also a threat. If I look at Microsoft, Azure is leveraging their model that the big hyper scaler aren't necessarily coming to Cisco for gear. They're shifting as to where Cisco will be involved. When we talk about cloud models, they're spending much more time up the stack. John in the layer four through seven, they are down in their traditional Vera to three. >>The pressure on these monopolies, historically to continue to perform as public companies, has been enormous, and they get more proprietary to your point, John. And eventually the open markets has hold on. You know that opens up new opportunities. It takes a while, but it's always happened. >>I don't think I think your point about the big incumbent. Players are not going to yield to just being rolled over by the incumbent growing cloud companies. But you cannot deny the fact that, say, Amazon. Dave, I want to get your thoughts on this because what Amazon did to compute change the game in my mind, they completely changed the capabilities. The consumption models, the cost structures. All the economics were changed with compute looking outpost wavelengths. When things are getting in, they have their own networking. So the question is, if you have the cloud ification of the Holy Trinity of infrastructure, which is storage, compute networking. Okay, you can see almost the cloud guys almost changing radically. All three of them computes Already done. Stories is already done. Networking is left, so you have networking battleground because you got to move the packets around. You don't need Mpls route routes because you just go through the cloud. How things are stored data, backup recovery. The list goes on and on. Ultimately, that's the infrastructure as code ethos that's going to change the application environment. So it will. Amazon will Google Will azure commoditized or change networking? >>Yeah. I mean, John, we already see that happening when we came two years ago. One of the challenges for most network engineers is what I need to manage. A large part of it I can't actually touch. I have to rely on third party. It's outside. I don't control it. But if something goes wrong, I'm on the hook for it. And if you go look forward a little bit, you know, if I'm deploying serverless architectures, is their networking involved? Yes. So I know what it is. I know my platform underneath it is going to take care of it, you know, sitting here talking about that transformation of the workforce, Dave, you wrote about it in your piece. That future of work is if you're you know, really, you know, putting together, You know, I'm a CCP my job is being a Cisco certified engineer, and my role will be racking, stacking, configuring and changing and managing those boxes today, it's well, I better get involved in the security side or the application side, because that's where I'm actually connected to the business and the data of things. Because if I'm just concerned about the moving packets around, yeah, there's gonna be either automation or clarification or combination of those things. They take that away from a >>couple thoughts on this. John, you were the very first to report trillion dollar opportunity for Andy Jassy and Amazon, and there was a 35 billion, so they have a long way to go. So I think a big theme for Amazon is gonna be tam. Expansion in one of those areas is, of course, networking, and you've seen the cloud slowly eat away reported this in my Wiki Bond post from the data because slowly eating away over the last 10 years. It's the networking share, and one practitioner said, as we put our data into the cloud, we're going to spend less on traditional networking, so it's clearly a threat. So Cisco, obviously diversifying its portfolio, we're gonna talk about that this week. But but more focused, as we've said do under the leadership of Chuck Robbins than it was. >>Well, Dave, here's a question for you because if you look at enterprise spend, they're increasing their spend on public cloud. But their data center stuff. It has stayed relatively solid. We haven't yet seen the erosion there. So are you saying networking is going to road before the rest of it? Because you know the story of data gravity? What? >>I think you're seeing the networking road not necessarily in terms of shrinking Cisco, although there guiding to a flat to down quarter. But you've certainly seen their growth slowdown, and especially in their core networking space. I mean, they've tried to double down on their switching and routing, and they just made new announcements in that space that John, you know well, but unquestionably the cloud is that it had an impact on Cisco's business. >>Well, 20 point, let's look ahead to the next 10 years. We've got a lot going on, so I think wait and see the big wave. So, to me, the big wave will start David on the ways I think the big wave is value proposition. Is the business model evolution? I think that's going to be a way that will constantly be the North Star or transformation. If whatever people are buying or operating, whether it's their infrastructure or their operating model, it has to have direct contribution to the business model, the company. So I think that's 12 I think AI and data will continue to power a lot of the value. And I think networking is going to be cloud ified. And the impact of that is going to be that as cloud and hybrid computing becomes a technical solution that achieves cheese, the operation model of companies you're going to start to see Multi Cloud emerged as a solution of that meaning Multi cloud isn't a technology. It's an outcome of hybrid combination of cloud. And that's going to change how packets are routed, how packets are networked. I think data ai and a complete transformation of the of the engine of business is gonna happen the next 10 years more than we've ever seen before. And I call this Dev Ops 234 point. Oh, do this. Is it a complete new engine of innovation. Technically, with storage, compute networking, where the application focus is going to be business driven, almost dynamic, almost real time. I think that will be a 10 year horizon. I wrote a Twitter post on this just a few minutes ago, and the lead architect for Azure tweeted back and said late, See, Layton sees never changes >>John. The innovation cocktail, as you said, is, What's the driver going forward, Right? >>Yes, exactly The speed of light. You can't solve that problem without putting points of presence all over, but >>the network architecture is what defines. It's, too, and I've been talking about network automation. We talked about Dev ops. But if you think of hybrid as a technical solution, how you work with public and private premises, Edge is just now a new network configuration that is going to be a very instrumental engineering task, which will actually impact how the software engineers, >>to your point, the latency that's physics and that's the plumbing and the plumbing is going to be there. But I do feel like we're exiting the cloud era into a new era of this innovation cocktail that you talk about the sandwich, which is cloud data plus AI plus digital services. And that's really what we're gonna be talking about 8 to 10 years from now is how organizations are applying those digital services and which companies, whether they're cloud native companies or guys like Cisco and IBM, HP Deli, EMC, how they're leveraging those waves and applying them >>to their business. And I'd be curious. See how the standards evolve around, whether it's de facto standards around interoperability around data, >>and you could look at what's >>happening with data privacy. You start to see the tell signs that data is going to be starting managed, just like packets are managed. It's like a whole interesting dynamic. >>But really what? This is the payoff for what company has been working on to be able to move faster. It was before was okay, used to take 18 months, and now I could do it a few months. But now I can react to that business between the automation, the machine learning, you know, putting together cloud, and you're gonna be able to refocus your workforce to be able to respond to the business and drive new value. >>All right, guys, we got to wrap up guest coming up. Appreciate the commentary. I'll just say that Dave Tesla. You mentioned one of your bringing analysis what Tesla did to the automobile company. I think there's going to be someone in the enterprise that comes out of the woodwork that changes the game on everybody. I think opportunity for that kind of new entrant >>in the same way Amazon. >>Did you think? >>I think Amazon is now an incumbent. I mean, look at the size and scale of it is always an opportunity for that bowl start up company. So it takes a kind of new dynamic electricity with cars, so we'll see. Okay, that's a wrap up. This is a cube conversation here in Barcelona for Cisco Live. I'm John. First Minutemen. Dave Vellante breaking down the Enterprise for the next 10 >>years. Yeah, yeah, yeah, yeah

>>from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I F s. Hi, buddy. Welcome to Boston. You're watching the cubes coverage of I s s World in the Heinz Auditorium in Boston. I'm Day Volonte with my co host, Paul Gill and Paul. This is the the largest enterprise resource planning software company that our audience probably has never heard of. This is our second year covering I f s World. Last year was in Atlanta. They moved to Boston. I f s is a Swedish based company. They do about $600 million in annual revenue, about 3700 employees. And interestingly, they have a development center in Sri Lanka, of all places. Which is kind of was war torn for the last 15 years or so, but nonetheless, evidently, a lot of talent and beautiful views, but so welcome. >>Thank you, Dave. I have to admit, before our coverage last year, I had never even heard of this company been around this industry for more than 30 years. Never heard of this company. They've got 10,000 customers. They've got a full house next door in the keynote and very enthusiastic group. This is a focus company. It's a company that has a lot of ah ah, vision about where wants to go some impressive vision documents and really a company that I think it's coming out of the shadows in the U. S. And it will be a force to be reckoned with. >>So I should say they were founded in the in the mid 19 eighties, and then it kind of re architected their whole platform around Client server. You remember the component move? It was a sort of big trends in the in the nineties. In the mid nineties opened up offices in the United States. We're gonna talk to the head of North America later, and that's one of the big growth areas that growing at about three. They claim to be growing at three x the overall market rate, which is a good benchmark. They're really their focus is really three areas e r. P asset management software and field service management, and they talk about deep functionality. So, for instance, they compete with Oracle ASAP. Certainly Microsoft and in four company we've covered in four talks a lot about the last mile functionality. That's not terminology that I f s uses, but they do similar types of things. I'll give you some examples because, okay, what's last mile? Functionality? Things like, um, detailed invoicing integration, contract management. Very narrow search results on things like I just want to search for a refurbished parts so they have functionality to allow you to do that. Chain. A custom e custody chain of custody for handling dangerous toxic chemicals. Certain modules to handle FDA compliance. A real kind of nitty gritty stuff to help companies avoid custom modifications in certain industries. Energy, construction, aerospace and defense is a big area for that. For them, a CZ well as manufacturing, >>there's a segment of the e r P market that often is under uh is under seeing. There's a lot of these companies that started out in niches Peoples off being a famous example, starting out on a niche of the market and then growing into other areas. And this company continues to be very focused even after 35 years, as you mentioned, just energy aerospace, a few construction, a few basic industries that they serve serve them at a very deep level focused on the mid market primarily, but they have a new positioning this year. They're calling the challengers for the challengers, which I like. It's a it's a message that I think resonates. It's easy to understand there position their customers is being the companies that are going to challenge the big guys in their industries and this time of digital transformation and disruption. You know, that's what it's all about. I think it's a great message of bringing out this year. >>Of course I like it because the Cube is a challenger, right? Okay, even though we're number one of the segments that we cover, we started out as a sort of a challenger. Interestingly, I f s and the gardener Magic Corners actually, leader and Field Service Management. They made an acquisition that they announced today of a company called Asked. He asked, U S he is a pink sheet OTC company. I mean, they're very small is a tuck in acquisition that maybe they had a They had a sub $20 million market cap. They probably do 25 $30 million in revenue. Um, Darren rules. The CEO said that this place is them is the leader in field service management, which is interesting. We're gonna ask him about that to your other point. You look around the ecosystem here that they have 400 partners. I was surprised last night. I came early to sort of walk around the hall floor. You see large companies here like Accenture. Um and I'm surprised. I mean, I remember the early days when we did the service. Now conferences 2013 or so you didn't see accent. You're Delloye E Y p W c. Now you see them at the service now event here that you see them? I mean, and I talked to essential last night. They said, Yeah, well, we actually do a lot of business in Europe, particularly in the Scandinavian region, and we want to grow the business in the U. S. >>Europe tends to be kind of a blind spot for us cos they don't see the size of the European market, all the activities where some of the great e. R. P. Innovation has come out of Europe. This company, as you mentioned growing three times the rate of the market, they have a ah focus on your very tight with those customers that they serve and they understand them very well. And this is a you can see why it's centuries is is serving this market because, you know they're simply following the money. There's only so much growth left in the S a P market in the Oracle market. But as the CEO Darren said this morning, Ah, half of their revenues last year were from net new customers. So that's that's a great metric. That indicates that there's a lot of new business for these partners to pursue. >>Well, I think there's there's some fatigue, obviously, for big, long multi year s AP integrations, you're also seeing, you know, at the macro we work with Enterprise Technology Research and we have access to their data set. One of the things that we're seeing is a slowdown in the macro. Clearly, buyers are planning to spend less on I T in the second half of 2019 than they did in the first half of 2019 and they expect to spend less in Q four than they expected to in July. So things are clearly softening at the macro level. They're reverting back to pre 2018 levels but it's not falling off a cliff. One of the things that I've talked to e t. R about the premise we put forth love to get your thoughts is essentially we started digital transformation projects, Let's say in earnest in 2016 2017 doing a lot of pilots started kind of pre production in 2018. And during that time, what people were doing is they were had a lot of redundancy. They would maintain the legacy systems and they were experimenting with disruptive technologies. You saw, obviously a lot of you. I path a lot of snowflake and other sort of disruptive technology. Certainly an infrastructure. Pure storage was the beneficiary of that. So you had this sort of dual strategy. We had redundancy of legacy systems, and then the new stuff. What's happening now is, is the theory is that we're going into production. Would digital transformation projects and where were killing the legacy stuff? Okay, we're ready to cut over >>to a new land on that anymore, >>right? We're not going to spend them anymore. Dial that down. Number one. Number two is we're not just gonna spray and pray on all new tech Blockchain a i rp et cetera. We're gonna now focus on those areas that we think are going to drive business value. So both the incumbents and the disruptors are getting somewhat affected by that. That slowdown in that narrowing of the focused. And so I think that's really what's happening. And we're gonna, I think, have to absorb that for a year or so before we start to see new wave of spending. >>There's been a lot of spending on I t over the last three years. As you say, driven by this need, this transition that's going on now we're being going to see some of those legacy systems turned off. The more important thing I have to look at, I think the overall spending is where is that money being spent is being spent on on servers or is it being spent on cloud service is, and I think you would see a fairly dramatic shift going on. They're so the overall, the macro. I think it's still healthy for I t. There's still a lot of spending going on, but it's shifting to a new area there. They're killing off some of that redundancy. >>Well, the TR data shows couple things. There's no question that server and storage spending is has been declining and attenuating for a number of quarters now. And there's been a shift going on from that. Core infrastructure, obviously, into Cloud Cloud continues its steady march in terms of taking over market share. Other areas of bright spots security is clearly one. You're seeing a lot of spending in an analytics, especially new analytics. I mentioned Snowflake before we're disrupting kind of terror Data's traditional legacy enterprise data warehouse market. The R P. A market is also very hot. You AI path is a company that continues to extend beyond its its peers, although I have to say automation anywhere looks very strong. Blue Prison looks very strong. Cloudera interestingly used to be the darling is hitting sort of all time lows in the E. T R database, which is, by the way, that one of the best data sets I've ever seen on on spending enterprise software is actually still pretty strong. Particularly, uh, you know, workday look strong. Sales force still looks pretty strong. Splunk Because of the security uplift, it still looks pretty strong. I have a lot of data on I f s Like you said, they don't really show up in the e t R survey base. Um, but I would expect, with kind of growth, we're seeing $600 million. Company hopes to be a $1,000,000,000 by 2022 2021. I would think they're going to start showing up in the spending >>service well again in Europe. They may be They may be more dominant player than we see in the US. As I said, I really had not even heard of the company before last year, which was surprising for a company with 10,000 customers. Again, they're focused on the mid market in the mid market tends to fly a bit under the radar. Everyone thinks about what's happening in the enterprise is a huge opportunity out there. Many more mid market companies and there are enterprises. And that's a that's been historically a fertile ground for e. R. P. Companies to launch. You know J. D. Edwards came out of the mid market thes are companies that may end up being acquired by the Giants, but they build up a very healthy base of customers, sort of under the radar. >>Well, the other point I wanted to make I kind of started to about the digital transformation is, as they say, people are getting sort of sick of the big, long, ASAP complicated implementations. As small companies become midsize companies and larger midsize companies, they they look toward an enterprise resource planning, type of, of platform. And they're probably saying, All right, wait. I've got some choices here. I could go with an an I F. S, you know, or maybe another alternative. T s a p. You know, A S A P is maybe maybe the safe bet. Although, you know, it looks like i f s is got when you look around at the customers, they have has some real traction, obviously a lot of references, no question about it. One of things they've been digging for saw this gardener doing them for a P I integrations. Well, they've announced some major AP I integrations. We're gonna talk to them about that and poke it that a little bit and see if that will So to solve that criticism, that what Gardner calls caution, you know, let's see how real that is in talking to some of the customers will be talkinto the executives on members of the ecosystem. And obviously Paul and I will be giving our analysis as well. Final thoughts >>here. Just the challenge, I think, is you note for these midmarket focus Cos. Has been growing with their customers. And that's why you see of Lawson's in the JD Edwards of the World. Many of these these mid market companies eventually are acquired by the big E R P vendors. The customers eventually, if they grow, have to go through this transition. If they're going to go to Enterprise. The R P you know, they're forced into a couple of big choices. The opportunity and the challenge for F s is, can they grow those customers as they move into enterprise grade size? Can they grow them with with E. I. F s product line without having them forcing them to transition to something bigger? >>So a lot of here a lot of action here in Boston, we heard from several outside speakers. There was Linda Hill from Harvard. They had a digital transformation CEO panel, the CEO of soo say who will be on later uh PTC, a Conway, former PeopleSoft CEO was on there. And then, of course, Tony Hawk, which was a lot of fun, obviously a challenger. All right, so keep it right there, buddy. You're watching the Cube live from I F s World Conference at the Heinz in Boston right back, right after this short break.

>> from our studios in the heart of Silicon Valley. PALO ALTO, California It is a cute conversation, >> living welcome to this special Cuba conversation in Palo Alto, California We're here with our friends on Twitter and influences in the cloud computing edge and open source game. We have our distinguished power panel here talking about if every tech company, every company should be a tech company. And what does it mean in the air of a modern infrastructure? Police to have my kale with ct of everest dot org's from most Gatto's California Rob Hirschfeld, founder and CEO of Rock n Calling in From Where You Calling in from >> Austin, Texas. >> Austin, Texas. Good to have you and Mark Theo Who's with EJ Gravity brand New opportunity. Congratulations calling in Las Vegas. Thanks for coming in, guys. Thanks for spending the time on this cube power panel from the influencers. Always great to see you guys on Twitter with this morning. I woke up, was very active at a Crouch said earlier this morning. And Mark, you wrote a post that got my attention. So I think you hit a nerve that has been sparking around the Internets around the role of technology as couples, they're starting to rethink and building out there enterprise architectures in their businesses. And we're seeing some signals around cybersecurity. Dev Ops certainly has been kind of banging on this drum with cloud computing, and that is that the role of technology plays as a percentage of the business part of the business. And your tweet was simply put, you said every bit. If every business needs to become a tech business, it business has to decide to own its own infrastructure something of that effect, which which triggered me because it's like That's a good question. It isn't just a part of an organization supporting it. Tech is becoming much more instrumental. So I want to get your reaction. What was the motivation behind that tweet? What's your what's your What was your point around it? >> Yeah, I mean, like many of my tweets, they're poorly worded and rushed out, so you know, it's not as clear as it could have been. But the real point of the message wasn't Thio highlight that a technology company has to be all in the cloud or has to own its infrastructure, but rather as a company makes a change towards becoming a technology company. I mean, if we go back Thio you know, 1995 or 1996 when we wanted a library, we went to the library. But now we have Google. We didn't know that Google was gonna become an online the equivalent of a library. But it became a digital company before anybody asked for that solution or anybody was running that kind of solution in some sort of company format and then changed it over. But, you know, Google Facebook, Microsoft's into it. Adobe PayPal. We could go down the long list there. All I t cos in the end, whether you call the technology that they built to run their businesses engineering with a CTO or I t. Is the material. They are in fact, large giant I t organizations that do what they do to make money. And so, as more companies look to make the change as digital transformation takes hold as more efforts are presented to try to get a closer handle on customers to build loyalty with customers, create new engagement models, maybe at the edge, even in traditional application environments, then companies have to make a decision about how they're going toe oh, nightie and whether they're goingto own any portion of the infrastructure of I T. And if they're going to do that, then I don't think that there's any question that they have to own it. Atleast following a model of the way the large providers and the facebooks, et cetera have provided for us cannot continue. In other words, what I've been known to say before, we can't continue to throw more hardware and people at the problem. >> My mike, I want to get your thoughts on this because one of the things that I know you have been involved a lot with security on dhe I t. As well in security, which which is a canary in the coal mine. For a lot of these architectural decisions are all kind of looking at how they hire and build on premise in house around tech stacks. And one of the things that became apparent to me at Amazon Aws reinforce, which is their Amazons first cloud security conference, was most of the ceases. When I talk privately was saying, we don't really believe in multi cloud. We have multiple clouds, but We're investing in people on certain stacks that fit our guiding principles of what we're building as a company. And they said we then go to the suppliers and saying, Here's the AP eyes we want you to support So you start to see the shift from being hiring the general purpose software vendors to come in and supply them with I t stuff Were hardware. As Mark pointed out, too much more, the customer saying No, no, this is our spec build that we built it. And so the trend that points to the trend of a reinvestment of building tech at the core of the business, which would imply to Mark's point around their tech companies. What's your thoughts on this? >> So a nuance. My answer. I think their tech enabled companies more than tech companies like Tech is enabling, whether it's Google or into it or pay power of the other companies. Mark mentioned technologies the base of their companies stack, um, then to go into your security portion, security has to be architected and embedded into the core solutions not bolted on after the fact with vendor solutions like it is today, and I think we've proven time and time again, including the capital one issue as a day or two ago that the current approaches are not working. And, uh, I agree with whomever See says you've been talking thio like being driving a P I integrations and be consumptive of them and telling what you need to build is a much better approach. Would you want to build a custom house with that actually talking to your builder and finding out later? What? What features and pictures have been installed in your home. But what do you wanna have a hand in that from the ground up? I think that's the mischief. >> Well, I want to come back to the capital. One point that's gonna be a separate talk track. So let's hold that thought. Rob, I want to go to you. Because StarBeat Joel, whose prolific on these threads you know, posting is nice Twitter cards on their um, he said, If you know, talk about leasing out extra capacity in a private data centers question Mark, you know, teasing out the question. And then Ben Haines responded and said, Why the hell would you want to be in that business when you have a real business to run again to what Mark was saying about, You know, Tech is going to be everywhere. Why should I even be in the data center? Because I don't want to be in that business. I gotta figure out Tech for the business. So Ben kind of brings that practitioner perspective. What's your thought? Because you're in the middle of this with the devil's movement. Bare metal, big part of it, Your thoughts. >> Yeah, And that's why we really focus on fixing the bear mental problem. Andi, I want to come back to where a bear metal fits with all this because you really can't get away from bare metal. I think the first question is really is every day to send is every business in I t business. And you know, not every business is a Google and strictly a nighty business. But what we're seeing with machine learning and Internet of things and just extension of what was traditionally siloed I t or data center, I t into everyday operations. You can't get away from the fact that if you're not able to take in the data, work with the data, manipulate and understand what your customers were doing. Then you are going to be behind. That's That's how you're gonna lose. You're gonna be out of business on. So I think that what we're doing is we're redefining business into not just a product that you're selling, but understanding how your customers air interacting with that product, what value they're getting from it. We really redefined supply chain in a very transformative way compared to anything else. And that's an I T enabled transformation. >> Ben brings up a good point, but the Brent wanted Friends Point is essentially teasing out mark and yourself a bare metal. All this stuff is complicated. Cut and make investments. Ben's teasing as What the hell business do you want to be in? I think that becomes a lot of this digital transformation. Conversation is Hey, Cloud is an easy decision. We were start up 10 years ago. We don't have I t. We have 50 plus people on growing. We're all in the cloud. That's fine for us. Dropbox started in the cloud. All these guys started class. It's easy as hell to do it. No, no debate there. But as you start thinking, Maurin Maur integration as a big enterprise which wasn't born in the cloud. This is where the transformations happening is what business? What the hell they doing? What's what's the purpose of their >> visit? Yeah, but the reality of you, a cloud infrastructure and how cloud infrastructure is structured does not really take you away from owning how you operate and run that infrastructure, right Amazons than an amazing marketing job of telling everybody that they're not smart enough to run their own infrastructure. And it's just not true way definitely let operations get very lax. We built up a lot of technical debt that we we need to be able to fix. An Amazon walked in and said, This is too hard for you. Let us take it off your plate. But the reality is people using Amazon still have toe owned their operations of that infrastructure. The capital one didn't doesn't get to just get a pass and say, I used Amazon. Oh, well, Too bad. Talk to them. You still own your infrastructure. >> Technically, it wasn't Amazons fall, so let's get the capital. One is this brings up a good point. Converged infrastructure was the Holy Grail, savior for the I t If you go back when we started doing Cuba interviews, stupidity and I would talk about converged is awesome. You got Nutanix kicked ass and grew like crazy. And so then you have the converge kind of meat's maker. When it sees the cloud, it's like, OK, I got great converged infrastructure, but yet the breach on capital one had nothing to do with a W s. It was basically an s three bucket that the firewall Miss configured. So it was really Amazon was a victim of its simplicity there. I mean, there's a >> I mean, this is this is what we're talking about with. To me with this tweet is that we need to look, we need to be better at operating the infrastructure we have, whether it's Amazon or physical assets on your premises. What we've really done is we've eroded our ability to manage those pieces well and do it in a way that builds on itself. And so as soon as we can get on improvement there, I mean, this this is where I went with this threat is if we can really improve our operational efficiency with the infrastructure we have, whether it's in the cloud on premises. You create benefits there than everything you build on top of that is gonna have a nim prove mint, right. We're gonna change the way we look at infrastructure. Amazons already done that on. We think about infrastructure in cloud terms, but I don't think that what they've done is the end destination. They just taught us how to be better running infrastructure. >> Well, it brings up that it brings up the point, and I have so Mike shaking his head to get his thought and mark on this. If I is that I tease problem our operational technologies problem because the world's not as simple as it used to be. It was not. It wasn't. It's not simple. You got edge. You get externally incest cloud players now multi cloud. So information technology teams and operational technology teams whose fault is it? Who is responsible thing? Could you just had a AI bots managing the the filtering and access to history buckets that could have been automated away? What, Whose problem was it? Operations, technology or I t. >> So that I think, to touch upon what Rob was talking about. There's my chain and technology, uh, from the classic sound byte is people process and technology. The core cause of literally every security breach, including capital one is a lack of sophisticated process and the root cause being people, and there's no amount of a I currently that can fix that. So you have to start focusing on your operational supply chain processes, which has, Rob said. Amazon has really solidified, and the company should look to emulate that forces trying to emulate the cloud infrastructure and some of your processed and your people challenges first. And then you can leverage the technology. >> Great point. Totally agree with you on that one >> market. Yeah, I would agree with everything that both Mike and Rob just said, and I would just add that we we don't have any choice but to face the future. That is, I t. And in order to provide the best possible service to our customers for our applications that even haven't been built yet, we have to look at the service is that are available to us and utilize them the best way possible and then find appropriate management and, like so correctly put it supply chain processes for managing them. So I've talked to people who are building unique cloud platforms internally to solve a specific business problem in ways that the individual clouds offered by the Big Three is an example can't do or can't do as well or can't do is cheaply. And the same thing applies to customers who are just using more than one of the big cloud providers. Even for some in some cases, for workloads. That might seem similar because each of the clouds provide a different opportunity associated with that specific set of requirements. And so we don't have any choice but to manage it better. And whether it's we make a choice to use it in our data center because it's more cost effective long term. And that's our single most important driver. Or whether we decide to leverage every tool in our tool belt, which includes a handful of cloud providers. And some we do our own, um, or we put it all in one cloud. It doesn't change our responsibility for owning it correctly, right? And my simple message really was that you have to figure out how to own and I'll steal from Mike again. You have to figure out how to own that supply chain. But more lower down more base is ifs. Part of that supply chain is delivering compute into a data center or environment that you own. Then you have to find the tools capabilities to ensure that you're not making the kind of mistakes that were made with capital or >> or, if you have tools are networks and tools you don't know and look at the quotes. So called scare with the China hack from Super Micro. That's a silly why chain problems? Well, it's on the silicon. So again, back to the process, people an equation. I think that's right on this brings us kind of through the next talking track. I want to get your thoughts on, which is cloud two point. Oh, I mean, I'm putting that term out there on Lee is a provocative way. Remember, Web to point. It works so well in debating about what it what it was. If one if cloud one data was Amazon Web service is, thank you very much. Public cloud. You could say cloud two point. Oh, our second inning would be just what happens next because you're seeing now a confluence of different dynamics edge, um, security, industrial edge. And then you know this all coming into on premises, which is hybrid and public, all working together. And then you throw multi cloud in there from a complexity standpoint. Do you wanna have support Microsoft's Stack, Azure Stack, Google and Amazon? This is this is the fundamental 2.0 question. Because things are more real time. Things are data specific. This costs involved. There's really network innovation needed what you guys thoughts on cloud to point out. >> I think the basic cloud 2.0, is moving to the shared responsibility model. And we should stop blaming people for teams for breaches as architectures become much more complex, including network computing, storage and in service orchestration layers like kubernetes, no one team or individual, individual or one team and manage all of that. So you're all responsible for infrastructure, scalability, performance and security. So I think it's the cultural movement more than the technology movement at the base of >> Rob. What's your definition? Cloud 2.0, from your perspective. >> Oh boy, I've been calling it Post Cloud Is my feeling on this? Yeah, it to me. It's it's about rethinking the way we automate. Um, you know, we really learned that we had to interact with infrastructure via automation and eliminate the human risk elements of. This doesn't mean that we have an automation is foolproof either It's not, but what? What I think we've seen is that people have really understood that we have to bring the type of automation and power that we're seeing in clouding the benefits because they're very riel. But back into everything that we do. There's no doubt in my mind that infrastructure is moving back into the environment. Where is what? Which is EJ from my perspective, and we'll see computing in a much more distributed way and those benefits and getting that right in the automation. Is this necessary to run autonomous zero touch infrastructure in environmental situations. That is gonna be justice transformative, freighted that that environment makes the cloud look easy. Frankly, >> Mark, what's your take? I want to get because, you know, security houses, one element get self driving cars. You got kind of a new front end of of EJ devices, whether it's a Serie Buy Me a song on iTunes, which has to go out to a traditional system and purchase a song. But that that Siri priest is different than what? The back end? Does this simply database, Get it? Moving over self driving cars, You're seeing all kinds of EJ industrial activity. You know, the debate of moving compute to the data. You got Amazon with ground station, all these new infrastructure physical activities going on that needs software to power it. What, you're in cloud to point. It seems to be a nice place not just for analytics, but for operational thing. Your thoughts on cloud to point out >> Well, I mean you you describe the opportunity relatively well. I could certainly go in. I've spent a lot of time going into detail about what EJ might mean and what might populate edge and why people would use it. But I think from if we just look at it from a cloud 2.0, standpoint, maybe I'm oversimplifying. But I would say, you know, if you add on to what Mike and Rob already so well pointed out is that it's best fit right, it's best fit from compute location, Thio CPU type Thio platform on, and historically, for I t they've always had to make pragmatic choice is that I believe, limit their ability on Helped to create Maur you know, legacy Tech that they have to manage, um on and create overhead tech debt, as they call it on DSO. I think judo. And in my book the best case for two Dato is that I can put best fit work where I need it when I need it for as long as I need it. >> That's that's really kind of gasp originals. Well, people got to get the software stood up. That's where I think Kubernetes has shown a nice position. I want to extend this track to another thought, another topic around networking. So if you look at the three pillars of computing computing mean industry, compute storage and networking, cloud one daughter, you can say pretty much compute storage did a good job. Amazon has a C two as three. Everything went great. Networking always got taken to the wood shed. You know, networking was getting, you know, people were pissing and moaning about networking. But if you look at kind of things were just talking about networking seems to be an area that this cloud 2.0, could innovate on. So wanna get each of your thoughts on? If you could throw the magic wand out there around the network doesn't take the same track as Dev ops that gets abstracted away because you see VM wear now doing deals. All the cloud providers they got they're going after Cisco with the networking PCC Cisco trying to be relevant. The big guys you got edge, which is power and network connection. You need those things. So what is the role of the network? And two point If you guys could wave the magic wand and have something magically happen or innovate, what would it be? >> Oh, wait, it's part complaining. It's your world. You know, it's ironic that I said this Thio competitors to my most previous company. Ericsson Company was away. They asked me after an event in San everything was a cloud expo. I just got off stage and the gentleman came up to me and asked me So mark you the way you talked about Cloud. I appreciate the comments you made yada, yada, yada. But what do you think about networking? And I said Well, network big problem right now is that you can't follow cloud assumptions as faras usage characteristics and deployment characteristics with networking. When that problem is solved, will have moved light years ahead in how people can use and deploy i t. Because it doesn't matter if you can define workload opportunity in 30 minutes on an edge device somewhere or on a new set of data centers belonging to Google or 10 Cent or anybody else. If you can't treat the network with same functionality and flexibility and speed to value that, you can the cloud then, um, it's Unfortunately, you're really reducing your opportunity and needlessly lengthening the time to value for whatever activity it is. You're really >> so network, certainly critical in 2.0, terms have absolutely that Mike any any thoughts there? >> So I think you know, there's there's easy answers to this that are actually the answer. You know, I P v six was the answer from a couple years ago, and that hasn't solved in the fantasy of the solved. All the problems, just like five G is not gonna magically transform our edge infrastructure into this brilliant network. The reality is, networking is hard and it's hard because there's a ton of legacy embedded stuff that still has to keep working. You can't just, you know, install a new container on container system and say, I've now fixed networking. You have to deal with the globally interconnected MASH insistence. I think when we look at networking, we have to do it in a way that respects the legacy and figures out migration strategies. One of the biggest problems I see that a lot of our technology stacks here is that they just assume we're gonna pave over the problems of yesteryear, nor them and with network, when you don't get that benefit, what you described with cloud networking, never living up the potential, it's because cloud networking isn't club networking. It's it's, you know, early days of the Internet. Networking is still what we use today. It's not. It's not something you can just snap your fingers and disrupt. >> Well, I mean, networking had two major things that were big parts of a networking and who build networks knows you provisioned them and you have policy stuff that runs on them, right? You moving paintings from A to B, then you got networks you don't own right so that's kind of pedestrian, old thinking. But if you want to make networks programmable to me, it just seems like they just seem to be so much more there that needs to be developed, not just moving package. Well, >> you just said it's traditional. Networks were built first, and the infrastructure was then built around them or leveraging them, so you need to take like in zero. Trust paper. When Bugsy Siegel built Las Vegas, he built the town first and then put the roads around the infrastructure. So you need to take that approach with networking. You need to have the core infrastructure of first and then lay down the networking around to support it. And, as Mark said, that needs to be much more real time or programmable. So moving from ah, hardware to find to a software to find model, I think, is how you fix networking. It's not gonna be fixed by a new protocol or set of protocols or adding more policies or complexity to it, >> so you see a lot of change then, based on that, I'd take away that you see change coming to networking in a big way because Vegas we're gonna build >> our if it has to happen. The current way is not working. And that's why we need the bottlenecks. Wherever >> Mark you live in is the traffic's brutal. But, you know, still e gotta figure out, You know, they got some more roads. The bill change coming. What are your thoughts on the change coming with this networking paradigm >> show? I mean, there are a few companies in the space already. I'm going to refuse to name anyway at this point because one of them is a partner of my new company, not my new company, but the new company I work for and I don't want to leave them out of the discussion. But there are several companies in the space right now that are attempting to do just then just that from centralized locations, helping customers to more rapidly deploy network services to and from cloud or two and from other data centers in a chain of data centers. Programmatically as we've talked about. But in the long run, your ability to lay down networking from your office without having to create new firewall rules and spend months on on contract language and things like that on being able to take a slice of the network you already have and deploy it on DDE, not have to go through the complex Mpls or Or VPN set ups that are common today on defectively reroute destinations when you want to or make new connections when you need to. Is far as I'm concerned, that's vital to the success of anything we would call a cloud two point. Oh, >> well, we're gonna try tracks when he's hot startups. So you guys see anyone around this area? I love this topic. I think it's worth talking a lot more about love. Love to continue on with you guys on that another. Another time. Final five minutes. I'd love to spend with you guys talking about the the digital transformation paradox. Rob, we're talking before we came on camera. He loved this paradox because it's simply not as easy to saying Kill the old man, bringing the new and everything's gonna be hunky dorey. It's not that simple, but but it also brings up the fact that in all these major waves, the hype outlives the reality, too. So you're seeing so I want to get your thoughts on digital transformation. Each of you share your thoughts on what's come home to be realistic in digital transformation, which what hasn't showed up yet in terms of benefits and capability. >> I mean, this is this to me is one of the things that we see happen in every wave. They people jump on that bandwagon really hard, and then they tell everybody who's doing the current stuff, that they're doing it wrong. Um, and that that to me, actually does a lot more heart. What we what we've seen in places where people said, burn the boats, you know, we don't care. They have actually not managed to get traction and not create the long term sustainability that you would get if you created ways to bring things forward. Networking is a good example for that, right? Automating a firewall configuration and creating a soft firewall or virtual network function is just taking something that people understand and moving it into a much more control perspective in a lot of ways. That's what we saw with Cloud Cloud took working I t infrastructure that people understood added some change but also kept things that people 1% and so the paradox. Is that you? Is it the more you tell people, they just have to completely disrupt and break everything they've done and walk away from their no nighty infrastructure, the less actually you create these long term values. And I know there are people who really know you got totally changed everything that disrupted value. But a lot of the disrupted value comes from creating these incremental changes and then building something on top of that. So what? So >> what did what Indigenous in digital transformation, what has happened? That's positive and what hasn't happened that was supposed to happen. >> So when I look att Dev ops on what people thought we were going to do, just automate all things that turned out to be a much bigger lift than people expected. But when we started looking at pipelines and deployment pipelines and something very concrete for that which let people start in one or two places and then expand, I think I think, uh, pipelines and build deploy pipelines are transformative, right? Going from a continuously integrated system all the way to a continuously integrated data center. Yeah, that's transformative. And it's very concrete just telling people automate everything is not been as effective >> guys. Other thoughts there on the digital >> transformation dream. I agree with everything that Rob just said, and I would just add just because, you know, it's the boarding piece that someone always has to say, and nobody in Tech everyone is he here? But you know, every corporation at one point or another in its Kurt in its life span faces a transformative period of time because of product change or a new competitor that's doing things differently, or has figured out a way to do it cheaper or whatever it is. And they usually make or break that transformation not because of technology, not because of whether they have smart people, not because of whether they implemented the newest solution, but because of culture and organizational motivation and the vast majority of like Everything, Rob said doesn't just apply to I. T. A lot of the best I T frameworks around Agile and Dev ops apply to how the rest of the organization can and should react to opportunity so that if I t can be and should be really time, then it only makes sense that the business should be able to be real time in responding to what is being created through I t systems. And right now I would argue that the vast majority of the 80% of transformations that don't see the benefit that they're looking for have nothing to do with whether they could have gotten the right technology or done the technology correctly. But it has to do with institutional culture and motivation. And if you can fix that, then the only piece all add on to that. That again I vociferously, really agree with Robin is that if you want to lower the barrier to entry and you want to get more people into this market, you won't get more people to buy more of your stuff and grow what they own. Then you have to be able to show them a path to taking, getting the most value out of what they already have. There is no doubt in my mind that that's the only way forward, and that's where some of the tools that we're talking about and what we're talking about today on Twitter or so important >> Mike final stops on the >> docks >> on your thoughts on the transmission paradox, >> so the paradox that Robb describe think is set, the contact is set incorrectly by calling it digital transformation should be digital revolution, where the evolution process doesn't end. Transformation makes people think that there's some end state, which means let's burn the votes. That's let's get rid of all over all on prime infrastructure moved to cloud and we're done. And really, that's only the beginning. Which is why we're talking about Cloud two point. Oh, do you have to take that approach that you want to have continuous evolution and improvements, which Segways into what Rob said about de box and automating all the things you don't automate your tasks and processes and you're done? You want to keep improving upon them. Figuring out how to improve the process is and then change the automation five that the is, Mark said. It's a cultural and mental shift versus trying to get to this Holy Grail and state of transforming transformation. >> Awesome. Well, why I got you guys here first off. Thanks for spending the time and unpacking these big issue. Well, two more of it. I'd >> love to just get >> your thoughts real quick on just your opinion of Capital One. The breach, survivability and impact of the industry. Since it's still in the news, who wants to jump for us? We'll start with Mike. Mike, start with you will go down the line. Mike, Robin Mara. >> I mean, the good news for Capital One is I don't think any personal information was breached that hasn't already been exposed by the various other massive reaches. Like I do my so security number as a throw away at this point which never should have been used for identity. But I want All >> right, So there were Do you think >> it's recoverable is not gonna be as critical, say, Equifax, which was brutal. >> It doesn't sound like there was negligence where Equifax seemed like it was Maura negligent driven than just ah ah, bad process or bad hygiene around a user or roll account and access to a certain subset of data. >> I mean, this was someone who stumbled upon open history bucket and said, >> Well, well, look at this >> bragging about it on Twitter and the user groups. I mean, this >> was like from from what the press said, I think there's other companies that may or may not be affected by this as well, so that it's just capital one, which will probably defuse the attention on them and lessen the severity or backlash. >> Rob your thoughts on Capital One. >> Yeah, I wish it would move the needle. I think that we have become so used to the security of breach of the week or the hardware. Very. You know, it is we We need to really think through what it's really gonna take toe treat security as a primary thing, which means actually treating operations and infrastructure and the human processes piece of this, um, and slowed down a little bit. Um, and I always saw >> 11 lawmaker, one congressman's woman said, More regulation. >> Yeah, they don't want this. I don't think regulation is the right is the right thing. I don't know exactly what it is because I think >> regularly, we don't understand. That's Washington, DC, >> But but we're building a very, very, very fragile I T infrastructure. And so this is not a security problem. It's a It's a fact that we've built this Jenga tower of I t infrastructure, and we don't actually understand how it's built, Um, and that I don't see that slowing down. Unfortunately, >> unlike Las Vegas is, Mike pointed out, it's was built with purpose. They built the roads around the town. Mark, you live there now What's your thoughts on this capital? One piece ends and >> I have been said I would say that what I'm hoping sort of like when you have, ah, a lack of employees for a specific job type. Like right now in United States, it's incredibly difficult to find a truck driver if you're a trucking company, So what does that mean? But that means it's gonna accelerate automation and truck driving because that's the best alternative, right? If you can't solve it the old way, then you find a new way to solve it. And we have an enormous number of opportunity. He's from a process standpoint, but also, from a technology standpoint, did not build on this. Pardon my French crap that we have already >> they were digital. Then, when I ruled by the FCC, >> had build it the right way from the start. >> Well, you know what was soon? How about self driving security? We needed guys. Thanks for spending the time this cube talk. Keep conversation. Appreciate time. Mike, Rob mark. Thanks for kicking it off. Thanks. >> Thank you. >> You're watching Cute conversation with promote guests. Panel discussion Breaking down. How businesses should look at technology as part of their business. Cloud 2.0, security hacks and digital transformation Digital evolution. I'm John free. Thanks for watching.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen, brought to you by Del Technologies and its ecosystem partners. >> Okay, welcome back. Everyone's cubes. Live coverage. Day three wrap up of Del Technologies World twenty nineteen Java is Dave a lot. There's too many men on set one. We get set to over there blue set, White said. We got a lot of content. It's been a cube can, in guise of a canon of content firing into the digital sphere. Great gas. We had all the senior executive players Tech athletes. Adele Technology World. Michael Dell, Tom Sweet, Marius Haas, Howard Ally As we've had Pat Kelsey, rco v M were on the key partner in the family. They're of del technology world and we had the clients guys on who do alien where, as well as the laptops and the power machines. Um, we've had the power edge guys on. We talked about Hollywood. It's been a great run, but Dave, it's been ten years Stew. Remember, the first cube event we ever went to was DMC World in Boston. The chowder there he had and that was it wasn't slogan of of the show turning to the private cloud. Yeah, I think that was this Logan cheering to the private cloud that was twenty ten. >> Well, in twenty ten, it was Cloud Cloud Cloud Cloud Cloud twenty nineteen. It's all cloud now. That difference is back then it was like fake cloud and made up cloud and really was no substance to it. We really started to see stew, especially something that we've been talking about for years, which is substantially mimicking the public cloud on Prem. Now I know there are those who would say No, no, no, no, no. And Jessie. Probably in one of those that's not cloud. So there's still that dichotomy is a cloud. >> Well, Dave, if I could jump in on that one of the things that's really interesting is when Veum, where made that partnership with a ws It was the ripple through this ecosystem. Oh, what's that mean for Del you know Veum, wherein Del not working together Well, they set the model and they started rolling out bm where, and they took the learnings that they had. And they're bringing that data center as a service down to the Dell environment. So it's funny I always we always here, you know, eight of us, They're learning from their partners in there listening and everything like that. Well, you know, Dylan Veum where they've been listening, they've been learning to in this, and it brings into a little bit of equilibrium for me, that partnership and right, David, you said, you know that you could be that cloud washing discussion. And today it's, you know, we're talking about stacks that live in eight of us and Google and Microsoft. And now, in, you know, my hosted or service lighter or, you know, my own data center. If that makes sense, >> I mean, if you want to just simplify the high order bit, Dave Cloud. It's simply this Amazon's trying to be enterprised everyone, the enterprise, trying to claw Amazon, right? And so what? The what that basically means is it's all cloud. It's all a distributed computer system. OK, Scott McNealy had it right. The network is the computer. If you look at what's going on here, the traditional enterprise of vendors over decades of business model and technology, you know, had full stack solutions from mainframe many computers to PC the local area networking all cobble together wires it up creates applications, services. All that is completely being decimated by a new way to roll out storage, computing and networking is the same stuff. It's just being configured differently. Throw on massive computer power with Cloud and Moore's Law and Data and A. I U have a changing of the the architecture. But the end of the day the cloud is operating model of distributed computing. If you look at all the theories and pieces of computer science do and networking, all those paradigms are actually playing out in in the clouds. Everything from a IIE. In the eighties and nineties you got distributed networking and computing, but it's all one big computer. And Michael Dell, who was the master of the computer industry building PCs, looks at this. Probably leg. It's one big computer. You got a processor and subsystems. So you know this is what's interesting. Amazon has done that, and if they try to be like the enterprise, like the old way, they could fall into that trap. So if the enterprise stays in the enterprise, they know they're not going out. So I think it's interesting that I see the enterprise trying to like Amazon Amazon trying to get a price. So at the end of the day, whoever could build that system that's scalable the way I think Dell's doing, it's great. I was only scaleable using data for special. So it's a distributed computer. That's all that's going on in the world right now, and it's changing everything. Open source software is there. All that makes it completely different, and it's a huge opportunity. Whoever can crack the code on this, it's in the trillions and trillions of dollars. Total adjustable market >> well, in twenty ten we said that way, noted the gap. There's still a gap between what Amazon could do and what the on Prem guys Khun Dio, we'd argue, is a five years is seven years, maybe ten years, whatever it is. But at the time we said, if you recall, lookit, they got to close the gap. It's got to be good enough for I t to buy into it like we're starting to see that. But my view, it's still not cloud. It doesn't have to scale a cloud, doesn't have the economics cloud. When you peel the onion, it doesn't certainly doesn't have the SAS model and the consumption model of cloud nowhere close yet. Well, and you know, >> here's the drumbeat of innovation that we see from the public cloud. You know where we hit the shot to show this week, the public have allowed providers how many announcements that they probably had. Sure, there was a mega launch of announcements here, but the public lives just that regular cadence of their, you know, Public Cloud. See a CD. We're not quite there yet in this kind of environment, it's still what Amazon would say is. You put this in an environment and it's kind of frozen. Well, it's thought some, and it's now we can get data set. A service consumption model is something we can go. We're shifting in that model. It's easier to update things, but you know, how do I get access to the new features? But we're seeing that blurring of the line. I could start moving services that hybrid nature of the environment. We've talked a few times. We've been digging into that hybrid cloud taxonomy and some of the services to span because it's not public or private. It's now truly that hybrid and multi environment and customers are going to live in. And all of >> the questions Jonah's is good enough to hold serve >> well. I think the reality is is that you go back to twenty ten, the jury in the private cloud and it's enterprises almost ten years to figure out that it's real. And I think in that time frame Amazon is absolutely leveled. Everybody, we call that the tsunami. Microsoft quickly figures out that they got to get Cloud. They come in there, got a fast followers. Second, Google's trying to retool Oracle. I think Mr Bo completely get Ali Baba and IBM in there, so you got the whole cloud game happening. The problem of the enterprises is that there's no growth in terms of old school enterprise other than re consolidate in position for Cloud. My question to you guys is, Is there going to be true? True growth in the classic enterprise business or, well, all this SAS run on clouds. So, yes, if it's multi cloud or even hybrid for the reasons they talk about, that's not a lot of growth compared to what the cloud can offer. So again, I still haven't seen Dave the visibility in my mind that on premises growth is going to be massive compared to cloud. I mean, I think cloud is where Sassen lives. I think that's where the scale lives we have. How much scale can you do with consolidation? We >> are in a prolonged bull market that that started in twenty ten, and it's kind of hunger. In the tenth year of a of a decade of bull market, the enterprise market is cyclical, and it's, you know, at some point you're going to start to see a slowdown cloud. I mean, it's just a tiny little portion of the market is going to continue to gain share cloud can grow in a downturn. The no >> tell Motel pointed out on this, Michael Dell pointed out on the Cubans, as as those lieutenants, the is the consolidation of it is just that is a retooling to be cloud ready operationally. That's where hybrid comes in. So I think that realization has kicked in. But as enterprises aren't like, they're not like Google and Facebook. They're not really that fast, so So they've got to kind of get their act together on premises. That's why I think In the short term, this consolidation and new revitalisation is happening because they're retooling to be cloud ready. That is absolutely happen. But to say that's the massive growth studio >> now looked. It is. Dave pointed out that the way that there is more than the market growth is by gaining market share Share share are areas where Dell and Emcee didn't have large environment. You know, I spent ten years of DMC. I was a networking. I was mostly storage networking, some land connectivity for replication like srd Evan, like today at this show, I talked a lot of the telco people talk to the service of idle talk where the sd whan deny sirrah some of these pieces, they're really starting to do networking. That's the area where that software defined not s the end, but the only in partnership with cos like Big Switch. They're getting into that market, and they have such small market share their that there's huge up uplift to be able to dig into the giant. >> Okay, couple questions. What percent of Dell's ninety one billion today is multi cloud revenue. Great question. Okay, one percent. I mean, very small. Okay. Very small hero. Okay? And is that multi cloud revenue all incremental growth isat going to cannibalize the existing base? These? Well, these are the fundamentals weighs six local market that I'm talking to >> get into this. You led the defense of conversations. We had Tom Speed on the CFO and he nailed us. He said There's multiple levers to shareholder growth. Pay down the debt check. He's got to do that. You love that conversation. Margin expansion. Get the margins up. Use the client business to cover costs. As you said, increased go to market efficiency and leverage. The supply chain that's like their core >> fetrow of cash. And that all >> these. The one thing he said that was mind blowing to me is that no one gets the valuation of how valuable Del Technologies is. They're throwing off close to seven billion dollars in free cash flow free cash flow. Okay, so you can talk margin expansion all you want. That's great, but there got this huge cash flow coming in. You can't go out of business worth winning if you don't run out of cash >> in the market. When the market is good, these guys are it is good a position is anybody, and I would argue better position than anybody. The question on the table that I'm asking is, how long can it last? And if and when the market turns down and markets always cyclical we like again. We're in the tenth year of a bull market. I mean, it's someone >> unprecedented gel can use the war chest of the free cash flow check on these levers that they're talking about here, they're gonna have the leverage to go in during the downturn and then be the cost optimizer for great for customers. So right now, they're gonna be taking their medicine, creating this one common operating environment, which they have an advantage because they have all the puzzle pieces. You A Packer Enterprises doesn't have the gaping holes in the end to end. They can't address us, >> So that is a really good point that you're making now. So then the next question is okay. If and when the downturn turn comes, who's going to take advantage of it, who's going to come out stronger? >> I think Amazon is going to be continued to dominate, and as long as they don't fall into the enterprise trap of trying to be too enterprising, continue to operate their way for enterprises. I think jazz. He's got that covered. I think DEL Technologies is perfectly positioned toe leverage, the cash flow and the thing to do that. I think Cisco's got a great opportunity, and I think that's something that you know. You don't hear a lot of talk about the M where Cisco war happening. But Cisco has a network. They have a developer ecosystem just starting to get revitalized. That's an opportunity. So >> I got thoughts on Cisco, too. But one of things I want to say about Del being able to come out of that stronger. I keep saying I've said this a number of times and asked a lot of questions this week is the PC business is vital for Del. It's almost half the company's revenue. Maybe not quite, but it it's where the company started it. It sucks up a lot of corporate overhead. >> If Hewlett Packard did not spin out HP HP, they would be in the game. I think spinning that out was a huge mistake. I wrote about a publicly took a lot of heat for it, but you know I try to go along with the HPD focus. Del has proven bigger is better. HP has proven that smaller is not as leverage. And if it had the PC that bee have the mojo in gaming had the mojo in the edge, and Dale's got all the leverage to cross pollinate the front end and edge into the back and common cloud operate environment that is going to be an advantage. And that's going to something that will see Well, let me let me >> let me counter what you just said. I agree. You know this this minute. But the autonomy was the big mistake. Once hp autonomy, you know what Meg did was almost a fatal complete. They never should've bought autonomy >> makers. Levi Protector he was. So he was there. >> But she inherited that bag of rocks. And then what you gonna do with it? Okay, so that's why they had to spend out and did create shareholder value. If they had not purchased autonomy, then he would return much better shape, not to split it up. And they would be a much stronger competitor. >> And I share holder Pop. They had a pop on value. People made some cash with long game. I think that >> going toe peon base actually done pretty well for a first year holding a standalone PC company. So, but again, I think Del. With that leverage, assuming pieces, it's going to be really interesting. I don't know much about that market. You were loving that PC conversation, but the whole, you know, the new game or markets and and the new wayto work throwing an edge in there, I don't know is ej PC and edges that >> so the peanut butter. And so the big thing that Michael get the big thing, Michael Dell said on the Cube was We're not a conglomerate were an integrated company. And when you have an integrated company like this, with the tech the tech landscape shifting to their advantage, you have the ability to cross subsidize. So strategy game. Matt Baker was here we'd be talking about OK, I can cross subsidize margin. You've brought it up on the client side. Smaller margins, but it pays a lot of the corporate overhead. Absolutely. Then you got higher margin GMC business was, you know, those margins that's contributing. And so when you have this new configuration. You can cross, subsidize and move and shift, so I think that's a great advantage. I think that's undervalued in the market place. And I think, you know, I think Del stock price is, well, undervalue. Point out the numbers they got VM wear and their question is, What what point is? VM where blink and go All in on del technology stew. Orcas Remember that Gus was gonna partner. You don't think the phone was ringing off the hook in Palo Alto from their parties? What? What's this as your deal? So Vienna. There's gotta be the neutral party. Big problem. The opportunity. >> Well, look, if I'm a traditional historical partner of'Em are, it's not the Azure announcement that has me a little bit concerned because all of them partner with Microsoft to it is how tightly combined. Del and Veum, where are the emcee, always kept them in arms like now they're in the same. It's like Dave. They're blending it. It's like, you know Del, from a market cap standpoint, gets fifty cents on the dollar. VM wears a software company, and they get their multiples. Del is not a software company, but VM where well, people are. Well, if we can win that a little bit, maybe we could get that. >> Marty still Isn't it splendid? No, no, I think the strategy is absolutely right on. You have to go hard with VM wear and use it as a competitive weapon. But, Stuart, your point fifty cents and all, it's actually much worse than that. I mean the numbers. If you take out of'Em, wears the VM wear ownership, you take out the core debt and you look at the market value you're left with, like a billion dollars. Cordell is undervalued. Cordell is worth more than a billion or two billion dollars. Okay, so it's a really cheap way to buy Veum. Where Right that the Tom Sweet nailed this, he said. You know, basically, these company those the streets not used to tech companies having such big debt. But to your point, John, they're throwing off cash. So this company is undervalued, in my view. Now there's some risks associated with that, and that's why the investors of penalizing them for that debt there, penalizing him from Michael's ownership structure. You know, that's what this is, but >> a lack of understanding in my opinion. I think I think you're right. I just think they don't understand. Look at Dale and they think G You don't look a day Ellen Think distributed computing system with software, fill in those gaps and all that extra ten expansion. It's legit. I think they could go after new market opportunities as as a twos to us as the client business. I mean mere trade ins and just that's massive trillions of dollars. It's, I think I think that is huge. But I'm >> a bull. I'm a bull on the value of the company. I know >> guys most important developments. Del technology world. What's the big story that you think is coming out of the show here? >> Well, it's definitely, you know, the VM wear on del I mean, that is the big story, and it's to your point. It's Del basically saying we're going to integrate this. We're going to hard, we're going to go hard and you know Veum wear on Dell is a preferred solution. No doubt that is top for Dell and PacBell Singer said it. Veum wearing eight of us is the first and preferred solution. Those are the two primary vectors. They're going to drive hard and then Oh, yeah, we'Ll listen to customers Whatever else you want Google as you're fine, we're there. But those two vectors, they're going to Dr David >> build on that because we saw the, um we're building out of multi cloud strategy and what we have today is Del is now putting themselves in there as a first class citizen. Before it was like, Oh, we're doing VX rail and Anna sex and, you know, we'LL integrate all these pieces there, but infrastructure, infrastructure, infrastructure now it is. It is multi cloud. We want to see that the big table, >> right, Jeff, Jeff Clarke said, Why are you doing both? Let's just one strategy, one company. It's all one Cash registers that >> saying those heard that before. I think the biggest story to me is something that we've been seeing in the Cuban laud, you know, been Mom. This rant horizontally scaleable operating environment is the land grab and then vertically integrate with data into applications that allow each vertical industry leverage data for the kind of intimate, personalized experiences for user experiences in each industry. With oil and gas public sector, each one has got their own experiences that are unique. Data drives that, but the horizontal and tow an operating model when it's on premises hybrid or multi cloud is a huge land grab. And I think that is a major strategic win for Dell, and I think, as if no one challenges them on this. Dave, if HP doesn't go on, emanate change. If H h p e does not do it em in a complete changeover from strategy and pulling, filling their end to end, I think that going to be really hurting I think there's gonna be a tell sign and we'LL see, See who reacts and challenges Del on this in ten. And I think if they can pull it off without being contested, >> the only thing I would say that the only thing I would say that Jonah's you know, HP, you know very well I mean, they got a lot of loyal customers and is a huge market out there. So it's >> Steve. Look at economic. The economics are shifting in the new world. New use cases, new step function of user experiences. This is this is going to be new user experiences at new economic price points that's a business model. Innovation, loyal customers that's hard to sustain. They'Ll keep some clutching and grabbing, but everyone will move to the better mousetrap in the scenario. So the combination of that stability with software it's just this as a big market. >> So John twenty ten Little Table Back Corner, you know of'em See Dylan Blogger World double set. Beautiful says theatre of present lot of exchange and industry. But the partnership in support of this ecosystem. It's something that helped us along the way. >> You know, when we started doing this, Jeff came on board. The team has been amazing. We have been growing up and getting better every show. Small, incremental improvements here and there has been an amazing production, Amazing team all around us. But the support of the communities do this is has been a co creation project from day one. We love having this conversation's with smart people. Tech athletes make it unique. Make it organic, let the page stuff on on the other literature pieces go well. But here it's about conversations for four and with the community, and I think the community sponsorship has been part of funding mohr of it. You're seeing more cubes soon will be four sets of eight of US four sets of V M World four sets here. Global Partners sets I'm used to What have we missed? >> Yeah, it's phenomenal. You know, we're at a unique time in the industry and honored to be able to help documented with the two of you in the whole team. >> Dave, How it Elias sitting there giving him some kind of a victory lap because we've been doing this for ten years. He's been the one of the co captains of the integration. He says. There's a lot of credit. >> Yeah, Howard has had an amazing career. I I met him like literally decades ago, and he has always taken on the really hard jobs. I mean, that's I think, part of his secret success, because it's like he took on the integration he took on the services business at at AMC U members to when Joe did you say we're a product company? No services company. I was like, Give me services. Take it. >> It's been on the Cube ten years. Dave. He was. He was John away. He was on fire this week. I thought bad. Kelsey was phenomenal. >> Yeah, he's an amazing guest. Tom Tom Suite, You know, very strong moments. >> What's your favorite Cuban? I'LL never forget. Joe Tucci had my little camera out film and Joe Tucci, Anna. One of the sessions is some commentary in the hallway. >> Well, that was twenty ten, one of twenty eleven, I think one of my favorite twenty ten moments I go back to the first time we did. The cue was when you asked Joe Tucci, you know why a storage sexy. Remember that? >> A He never came on >> again. Ah, but that was a mean. If you're right, that was a cube mean all for the next couple of years. Remember, Tom Georges, we have because I'm not touching. That was >> so remember when we were critical of hybrid clouds like twenty, twelve, twenty, thirteen I go, Pat is a hybrid cloud, a halfway house to the final destination of public loud. He goes to a halfway house, three interviews. This was like the whole crowd was like, what just happened? Still favorite moment. >> Oh, gosh is a mean so money here, John. As you said, just such a community, love. You know, the people that we've had on for ten years and then, you know, took us, you know, three or four years to before we had Michael Dell on. Now he's a regular on our program with luminaries we've had on, you know, but yeah, I mean, twenty ten, you know, it's actually my last week working for him. See? So, Dave, thanks for popping me out. It's been a fun ride, and yeah, I mean, it's amazing to be able to talk to this whole community. >> Favorite moment was when we were at eighty bucks our first show. We're like, We still like hell on this. James Hamilton, Andy Jazzy Come on up, Very small show. Now it's a monster, David The Cube has had some good luck. Well, we've been on the right waves, and a lot of a lot of companies have sold their companies. Been part of Q comes when public Unicorns New Channel came on early on. No one understood that company. >> What I'm thrilled about to Jonah's were now a decade, and we're documenting a lot of the big waves. One of one of the most memorable moments for me was when you called me up. That said, Hey, we're doing a dupe world in New York. I got on a plane and went out. I landed in, like, two. Thirty in the morning. You met me. We did to dupe World. Nobody knew what to do was back then it became, like, the hottest thing going. Now nobody talks about her dupe. So we're seeing these waves and the Cube was able to document them. It's really >> a pleasure. The Cube can and we got the Cube studios sooner with cubes Stories with Cube Network too. Cue all the time, guys. Thanks. It's been a pleasure doing business with you here. Del Technologies shot out the letter. Chuck on the team. Sonia. Gabe. Everyone else, Guys. Great job. Excellent set. Good show. Closing down. Del Technologies rose two cubes coverage. Thanks for watching

>> Welcome to the Special Cube conversation. We're here in Palo Alto, California Cube headquarters. I'm John for a host of the Cube were Mohit parents, founder and CEO of Cohesive Serial entrepreneur. Successful Distribute computing, phD, computer science. Welcome to the Cube. Thanks for having me here. So thanks for coming. You guys been very successful. You found the couple in twenty thirteen. Great traction. Great success, Great technology. What's the vision of Cohee City? >> Let me first start by describing the problem. And then I'll go under describing the vision. The problem in a nutshell, is ah what we call mass data fragmentation. It refers to the fact that everything sets in silos, whether it's the sender or whether it's the cloud All our data sets in silos in appliances. Just expect all across the whole universe. And our vision is to basically consolidate that onto one platform I The easiest way to understand our vision is to look at it. What a smartphone that in the consumer space before the smartphone came the all used to carry multiple devices, right? Phone, music, player, camera, and so on. So forth. Uh, the smartphone came. It put all of those on one platform gave us a single U I to manage it all, um, gave us the notion ofthe marketplace from where we could download maps and run on this platform and gave us machine learning. Our vision is something very similar for the world of leader in the world. That data is the most valuable resource today in the world, much more so than oil. And he had the infrastructure. Where we put that data is very fragmented. Let's look at the ladies under backups is one silo probably bought from different renders test. And there was another side of analytics is another one five chairs and object storage is another one. Our vision is is to put all of that on one platform, make it very simple. Make that platform span the data center and the cloud manager using one us bring machine learning concepts to it and at a market place from where people >> could, you know, the smart phones. A good analogy. I like that because you had a market where they made devices to make phone calls and then text messaging. Beak was like killer half of the time. But having the computer enable the whole new class of services functionality, usability and capability and that that iPhone was a seminal moment There. You see, the same thing in Tech right now with Cloud Cloud has changed again. Seeing cloud be successful. Scale is a huge thing. So functionality, new kinds of functionality and large scales with cloud computing has proven. And APS have come around that. So I gotta ask you, you know, backup has been in category that has been dominated. Public offerings dated domain, but the list is endless of great companies built great backup solutions or a K phones. And I think that's what you're getting at the phones is the backup. You guys are building new functions. I want to explain the reels, um, capabilities that's going to come out of the data because if you have data being backed up, you're touching the data. So if you built a platform for scale, it seems that you guys have talked about that product. What is the unique thinking behind it? How did you come to it? And what are some of the examples? >> Yeah, so let's start one step at a time. So, uh, even though it's a platform that can do multiple things just like the smartphone had to be a great phone to begin with. This is a great backup product to begin with. And once we've solved the back a problem for the customer, then we encouraged them to do more on this may be to file shares, baby to object storage. Maybe start using the clouds and sunset. The next thing you'LL say that. Imagine you will work on that data. So you've ingested some data using backups and you want to get some insights from that data today? What you're forced to do is you probably have to copy that data out into another side of creating one more fragment. One more copy of the data. Why not move APS to the data? But other than dated adapts. So our whole concept is that take this platform and take whatever happened. You wanted to run outside off this just running on this platform and thereby you're moving APS to the data. Not the dinner, perhaps moving their eyes. Heart. It is. Ah, is big moving abscess. Easy. So and that's what the hell is this about On That's the platform. That's the capability of the platform. It's a distributed platform. Let's you're on APS close to where that it is. That's the underlying a lot of >> people say I remember we're going back a couple years now talking about Cloud or once I want to be like Google. I want to be like Amazon because they were offering at large scale using open source software. You can. You were lead engineer on Google file system, so you know a lot about scale. But a lot of people wanted the scale and functionality of Google, but they wanted the ease of use of Apple. And I've heard you mentioned that when were before we came on. So this is actually an interesting dynamic. But not everyone's like, Oh, but they have now data scaling similar challenges that Google has one song or another's large scale. Talk about that dynamic because you're changing the game on backup did since you touching the data, you're going to make that more valuable beyond just backing up. And this the concept of moving absolute data talkabout this dynamic of scale, functionality and ease of use because if you're doing all the work with the data, why not extend that out? This is essentially what you're doing. Can you explain that? >> Yeah. I think about the problems that Google would have if they were dealing with lots and lots of fragments of data. If everything was studying in a different appliance, Uh, with the volume of data that day deal that they'LL just be going knots pulling their hair all day long, right? So they built a web scale system that was sort of like a single platform. I was fortunate to be part ofthe some of those technologies, like the Google file system. So they built that Web scale file system to make it look like make all of that look like one platform. And now that it was one platform, they could move the APP store. And we're basically trying tow do something similar to the realm ofthe second reader naps. Because we have lots and lots of data here today. It sets and silos be the backups or passed on diver filers, Object storage. We're gonna build one big platform that scales out in a Google like fashion which can be managed very simply, using one you Iike an apple like manageability. And with this concept, we become very similar to those hyper skill er's, and we bring some of the same innovations to people out there. I >> want to share a common e we were talking about before we came on camera. You were just preferred something. You said I'd like to solve one problem at a time and then move on. But what's interesting here? Competitive strategy wise, you're solving the backup problem. But why you got your hands on the data? You're actually going to re imagine the usability of that data. So you're essentially adding value to a basic function back up, putting a platform around and extending that out, perhaps to come to it. And it's kind >> of a >> land grab that's working. This is a unique It's a different way to think about, Is that right? >> So I like to say that we like the master's off one trade at a time, nor Jack of all trades, uh, and that first trade for us that we would be masters off his backups once we're happy there. Then we can go on and focus on, you know, maybe filers or object storage. And this is how we build the platform right eye. I always say that when you architect a system, you have to think about all this from day one. You can't incrementally at patches and expect the system to grow right. I sometimes draw an analogy between why Google won the war against Yahoo. Google, Tara, Phil are all as a platform there. Thought about all the use cases they'd be, you know, putting on the platform. Yeah, who just build something that was good for search. Didn't think beyond that. That's why they you know about a bunch of naps. And >> that's where they saw it and thought of >> the Google file system and then YouTube on top and Gmail on top and blah, blah, blah. No. So I was the same approach. We've talked about the problem and the problem off. The problem We want to address mastered a recommendation up front, and our system has bean architected to solve that. Even if we start by being masters of backups first, the system has been architected tto do way more than that. >> So it be safe to say that cohesive from a software core competency standpoint is distributed computing core competence or disputed systems large scale from a computer science, you know standpoint and then data. So expertise are those two is intact. >> Yes. Oh, distributed computing and distributed file systems. Those would be there to core competencies. But then again, depending on like whether it's backups or its testing, that their competences of within those domains. >> So I want to get into the private tech. First of all, thanks for saying you have responded to that. The product text. Phenomenal. You have platform can do multiple things. I want to talk about span F S on Spann Os. You have some news. You've got something share on overview of what that is and what the new news is. >> So when you're trying to control on manage of lots and lots of data, you better have a distributed file system. So we built one, and we call it Spanish Fast. The name comes from the fact that it's supposed to span nodes in the very center that's supposed to span multiple kinds of storage in the data center. It's supposed to span the data center and your multi cloud environment, their hands the names pan a fast, But since we were building it like a platform, that's not just there for your data. It also runs apse on top off this platform. Uh, the span of fast is not enough. It becomes full scale us, if you may want to call it. What? So where's it has a file system and it has the ability to run laps on the file system, and the same ability was built here. And the name's patter well, so we can store data, but we can also naps close to that >> and with multi cloud on the horizon are actually president today. A lot of people use multiple clouds, and certainly Salesforce's considered cloud you got Amazon. So especially this moment clouds of existing today in the Enterprise, the coordinated all but hybrid and and these things they're going on. Premise. It's cloud operations. This becomes an important part of the distributed environments that need to be managed. Talk about the impact of multi cloud in today's world because it's a systems thinking. You gotta think about it from day one, which is kind of today. I got on premise. I got multiple clouds out there, and some clouds or great, depending on the workload, picked the cloud for the workload. I'm a big believer in that. Your thoughts, though, on as people tried to get their arms around this and make it, you know, one environment with a lot of decoupled elements that are highly cohesive. Talk about that dynamic. >> Yeah. So Cloud is a very, um, nice entrant into the infrastructure world. It provides a lot ofthe functionality, but it doesn't quite solve that problem off massive fragmentation. When you put your dinner in the cloud, it's still fragmented. And when you're dealing with, often our customers are big. Customers are dealing with multiple clouds and the data centers, and they have dedicated people trying to move data and applications between them. That's the problem that Cohee City can actually solve very well, because we're building a platform that spans all this. Um, all of that becomes underlying infrastructure that we use. And now through us, they can easily move APS. They could easily move data. They can access the data anywhere. That's the value we been to them. We have a customer here in California, and that was spending, uh, hundred twenty thousand dollars per month. It's a new company, uh, one hundred one hundred twenty thousand dollars per month on the eight of us both after they consolidated that stuff threw us in the cloud, their ability used to seventeen thousand dollars per month. That's the kind of value we can bring. The customers >> well, the Amazon Dana. It's interesting cause you got storage and you got E C two of the compute you need compute to manage towards so against. Not just storage. That's the cost. It's it's data is driving the economics. That's where you're getting it. >> Yeah, So I think data and storage and compute go together as I'm a big fan off hyper convergence, which me, along with the rest of my team Edna tonics. And Monday it's gonna doing multiple things on the side I'm back from. And you can't do that without storage and compute both working in tandem >> so consolidating with cohesive because I'll be using cohesive, he allows the better management lower costs on Amazon. >> That's right. That's right, because we store the data efficiently on Amazon, cutting the costs, and then you can run your raps on top. You don't have to copy out the data toe, run your wraps, you can actually land on the platform and all that saves costs. >> That's a great tidbit. Notes no to the audience out there. Great to tip their pro tip. Talk about the announcement you have now have APS coming out. You got three native cohesively absence. My word. I don't know. You guys call it Think Caps is going to the Alps and then for third party application developers. So again, this kind of teases out there beyond backup story, which is platform. What of the apse, Where this come from? What? Some of the reasons why they're being built. Can you share specifics on that news? >> This goes back to our analogy to a smartphone on one of the innovations the smartphone, brother. The world was the notion of a marketplace. You could go to the marketplace and down wrap. Some of the gaps are from the vendor who built the smartphone. Some of them are from third parties. So we are. And when the first iphone came out that I had basically five straight and then now there are millions of them. So what we have seeded the system with is we have, ah, a couple ofthe third party apse for in particular one a splunk that runs on the platform with in a container. One is from a company called Menace. One is actually two laps are anti virus absent. One vendor is scented. One when is clam? Maybe, um though that third party APS But then we've built some, um, APs from cohesively itself when his app called spotlight on the security app. One is an app called Insight searches through the data when his app called Easy Scripts allows our customers to upload scraps on drawing them from Go easy. So these are the apse that I'd be exceeded the system where were also announcing an SD came in just like your smartphone has a nasty cave. The world out there can go and use that and build ups on top if he would like people out there in the world. Third parties are partners to build ups and run on this bathroom >> so moment, what's their motivation behind the app system or functionality? As the demand grows, functionalities needed. So I'll see platforms should be enabling, so I get why APS could build on platforms. But what was the motivation that around the apse now just l of evolution capabilities? What's the thoughts >> It goes back to our philosophy that if you need to do something, you shouldn't buy one more silo to do it. You should be able to extend your existing platform and then do stuff. That's what your smartphone does. Uh, basically, even you, by your smartphone, it can be a phone, and I'm number for the things. But then you extended the functionality of that by downloading maps. It's the same motivation, you know, extend the abilities of this platform. Just download maps and then extended right. >> Give the value proposition pitch for the developers out there. Why would they want to develop on? Complicity is it is a certain kind of developer. What's the makeup of the target audience? Who would build on obesity? >> So all kinds of people we expect to build on this platform. So the value for our customers, for instance, now rather than, uh, copying the data out of this platform onto one more silo and that's very expensive, they can actually build a nap that runs on this platform so that they don't have to move the data around, and it's very, very simple. That's the value for our customers. For the developers out there. Uh, it's the same value that they get when they build an app on a smart phone. Uh, they building up some cash, but out there can download that app and the APP and then pay that developer some money so they don't have to build the whole company or the whole thing. Now they can build a nap that runs on cohesive. It's really simple for them. They get a cut of whatever the customer pays, so there's value all around. It's a ven ven for everyone >> it's not. And it's good business model, too good community going to get an ecosystem developing its a classic growth growth opportunity for you guys. Congratulate. So what a business you guys have talked about a couple quarters ago Publicly, about two million to million dollars run rate. Give us the update on the business in terms of growth. Employee headcount. Key milestones. Can you share? Seok was empty, >> so you know the momentum is phenomenal. We're very flattered by the fact that despite the fact that we're a young company we've been selling for more than three years, of seventy percent of our customers are enterprise customers. The big guys with lots and lots of data. Uh, some of the biggest banks in the world now use us. Some of the biggest credit card companies in the world use us. Uh, a lot of the secret of federal agencies. You, us? Um, uh, some of the public customers I convention Hyatt uses us. Ah, big financial. Northern Trust uses us the famous. Uh uh, you know, food chain. Wendy's uses us. So those are the names I can I can mention that are actually using and benefiting from cohesive. Um, so lots of lots of great stuff. Um, we had three hundred percent year over year growth in revenue. Our head count, actually, er this week crossed one thousand people. So we spoke to our chief people. Officer. We should mention our one thousand employees in a special way. So all that great stuff is happening. >> It's like walking through the door. All the bills go office because you guys were two hundred last year. About this time >> when you get back, we are about to enter. People's a factor of five growth and about one years phenomenal had come growth. >> Well, that's massive growth. How big is this guy's a real state growing and buy more office space. >> Yeah, well, uh, they're headquartered in a building and son who's a downtown. We start, but we got it. That building about when you're back, we only had two floors were really expanded toe like five floors now and looking toe, you know, rent more. We've also expanded to other locations. Geographically, we now have an office and rally. We have ah, uh in office and cork in Ireland. We already had an office in Bangalore. We setting one up in pony. We're setting one up in Toronto, So lots and lots of expansion worldwide. Not >> really looking good as well. I mean, let's think about the economics. >> So this is the time they're being in mustard and growth. That's looking phenomenal on DH. There's a path to profitability. Um uh, it all depends on you know, our economics and what the board decides on how and when we wanna charge towards profitability, we can get there. It's looks easy, but I think it's our productive ity off our sales reps looks phenomenal. On average, productively is very high, which basically means that you know, we can get to profitability fairly quickly. If you want. >> We're going to say, very impressed with the growth and impressed that you go out on the road, talk to customers closing business. That's sign of a great CEO. Always make sure the customers are happy. >> Um, eventually, that sort of companies about a happy employees and be happy customers. Uh, and my job is to see you is to make sure what happened >> before we get in Some of the questions I have from the community. I prepare because people want knew you were coming on. I want to ask you about entrepreneurship in your journey. You've had quite the career Google image in that nutanix. And now here, >> Look at look at >> today's environment. I mean, it was a lot of talk about how entrepreneurship changed and starting a company, you know, you got a rocket ship, so you had a lot people coming on Now from the your journey you're on now. But a lot of other offers out there right now, kind of like looking transition. People say tech is bad, not good for society. Seen bad, negative press in their entrepreneurship is a great opportunity right now in tech. What's your thoughts on the current landscape and opportunities for, you know, folks out there building new things and going in solving a problem from old market and reimagining it for the new. Because a lot of new going on seeing a new sea change with cloud. And on premise, >> I would say, Um, this is probably the best time to do a company then ever in the past because technology is there to help people. Young entrepreneurs. Uh, there's plenty of money to be raised from the sea. Species are very happy to be helping. End of news a couple of pieces of caution that I wantto give to would be entrepreneurs. Uh, number one. Don't be in a hurry. Learn their hopes of doing a company first. Ah, before jumping and doing it because often I find that they burn their fingers and then they don't want to do a company again. First, go to a good company, learn the ropes of playing a company, and then do a company. That's number one number two. Uh, I would like to incorrigible and avenues to think about their ideas in the context. Off the following two thoughts one is, uh, the company needs to have a great entry point. That's how the company takes off. But then it also needs to have a bigger vision to look up to. And I often find that company's lack one or the other of these, Uh, and that's why they eventually fail or they never take off the ground. In our case, the entry point was backups, and the big vision is the consolidation off seconded and haps that I spoke about, Ah, one or the other if they're missing, it's not >> an extensive abilities key there, too. You get the beachheads real specific seconds, and then you see you point >> out of a vision. That's >> what broader beachhead without trying to take it all too fast or not knowing where to lay. That's gonna much the analogy. >> That's what I say. I beat master of one traitor, go ahead in the beachhead and then expanded the bigger >> and by the way, that's a classic proven way to do it. So, you know, just stay with what works, All right, let's get to the questions from the community. A lot of people wanted to ask your first question moment. You've a great perspective on the difference between hyper scale on enterprise worlds Is the enterprise still ten plus years behind the Giants in Tech? And how have you helped bring hyper scale thinking to the enterprise architecture? >> Um, the enterprise is, actually, surprisingly is getting closer and closer. Uh, with all the great technologies available, hyper convergence has bean. One of those technologies that has made hyper convergence combined with upscale, uh, is one of those technologies that has brought the enterprise were very close to the hyper scholars. Now they can buy products that are hyper energy that scale out in a group like fashion, and they can get some of the same benefits that the hyper scholars have enjoyed over the years, eh? So I won't say they have that far behind anymore. They're catching up, and they're catching up. Eyes >> used to be a few years ago, you could look at saying old relic, you know, modern cloud >> the and and the companies that I have found it have. I'm very flattered to say that have gonna, uh, hasten that journey. Uh, happy convergence. And he's even solving this problem of massive fragmentation. The hyper skills have kind of, you know, already solved that problem. They have massive, upscale systems that don't deliver data fragmentation. It's one platform, and you're gonna bring that value to the world through cohesive, >> great, great success. Okay, second question. There's a ton of money pouring into the data protection space again, a category that's there's a card in magic water for that. But again, you start Cummings that don't have magic watches because it's new. Why is this money pouring into space? Why now? >> Number one dealer is exploding. There's lots of lots of data. Ah, bulk off the data sets in what we call second story. It comes to it through back up straight. Your your production stuff has some production data, but eventually that data. Nobody wants to believe that they would keep it in there for at least six seven years, maybe forever. All dated, it comes to backups. The opportunity that people have seen is that they can actually now doom or with that data. It's not just dumb waiter sitting there, so it's not just data protection. It becomes more of a data management and you do data management through APS. That's what cohesion is exploding. We get the data onto a platform through backups, but then we expand into arrest of the vision and Kendra naps to extract value from the dealer right? That's why the money is coming. >> Well, you just answer the next question, which is, you know, why cohesively wind now the space is crowded, a lot of competition, So I'll just move on Ransomware, what's going on there and what's unique about Kohi City and what do you bring to the table with respect to Ransomware. >> So Ransomware is, uh, uh, something that we now live in. Its every enterprise is at risk, uh, being affected by ransomware. So what we have announced recently eating a month back, we announced our ransomware support. Uh, we can offer not just the detection, but also a number for the things we can detect Ransom where we can allow our customers toe apply fixes. When When that happens, we really allow things to be recovered once ransomware happened. So it's built into our data protection environment, right? That's how customers like it. So it adds value to the data that they already have. It's not just a dumb backup. >> And with all the third party and S t k stuff happening potential extensive bility on that core, >> that's right. Now we can have apse that can detect more round somewhere by virtue of the fact that we can support running absolutes to data. Some of those APs could be Andy dancing, perhaps help protect the data, do some custom stuff. Once said handsome, it is detected. All that becomes possible >> last question from the crowd here, the community multi cloud. Everyone's going up to the space. What is multi cloud data protection really about? And why cohesive? Isn't this just really a multi cloud vendor? Khun, do it all mean a lot of people saying they're multi cloud vendors. Y you what is multi cloud data protection all about? >> So, you know, big enterprise customers probably have a foot in every cloud, and they call it a multi cloud infrastructure. And if they want to protect the data and forced me, the data is very fragmented. So they need a backup solution for one for every cloud that's roughly multi cloudy. The production. Uh, we're cool. Here's the adds value. It's building one platform that spans your multicolored environment. So one platform can now take care ofall that those backups eso it really simplifies the job off doing backups or data protection in a multicolored environment. And that's where the Queen's devalue comes in. >> Well, congratulations. Final question for this interview. How would you summarize the state of cohesive the right now? Thousand employees growth on the customer traction side and revenue business funding. Males look good economic with a platform, certainly software margins looking very good growth. What's it all about right now? Culture value, proposition don't. >> It's kind of like a rocket ship, and we're just hanging on. But it's Ah, I think that focus is, um, when you grow this fast, uh, the challenge becomes, uh, keeping your culture intact and we tryto put a lot of effort on our culture. Our core values are cultural guidelines were fanatics about that. So we want everyone to feel that they're coming in and this is home away from home, and they treat others to make them feel it's home away from home. We're trying to build a family here, so there's a lot of emphasis on that. But at the same time, you know, we all work hard and let the company >> and the new ecosystem opportunity for you is looking really good because if he zaps takeoff, certainly the cohesively APS. And now you got third party with an S t. K. This is potentially a game changer for you as a company to a CZ Wells, you have product company. Software company makes a lot of scared, but now you're gonna be bringing developers and impact there. >> The impact, the talk, leadership impact. Uh, you know, I'm personally very fun off er you know I do these companies because I want to change the world. I won't change the way the world thinks this is the way I think. And if I can help the world think in this fashion contributed something to the world. And so that's the excitement that sort of mission is. Team is excited about that. It's just >> we got a great mind phD in computer science and two ships systems entrepreneur that thinks up new things that disrupt the status quo. And the old guard certainly track record their congratulations. Know what? Thanks for coming on The Cube. This's the Cube conversation here. Palo Alto. I'm John every year. Thanks for watching. What?

>> Hi, I'm Peter Burroughs Wellcome to wicked bon action >> item from the Cube Studios in Palo Alto, California So today we've got a great conversation, and what we're going to be talking about is hybrid cloud hybrid. Claude's been in the news a lot lately. Largest consequences from changes made by a Ws is they announced Outpost and acknowledged for the first time that there's going to be a greater distribution of data on a greater distribution of function as enterprise has moved to the cloud. We've been on top of this for quite some time, and it actually coined what we call true hybrid cloud, which is the idea that increasingly, we're going to see a need for a common set of capabilities and services in multiple locations so that the cloud could move to the data and not the data automatically being presumed to move to the cloud. >> Now to have that >> conversation and to reveal some new research on what the cost in value propositions of the different options are available. Today. We've >> got David Foyer. David. Welcome to the Cube. Thank you. So, David, let's start. When we talk about Hybrid Cloud, we're seeing a continuum of different options start to emerge. What are the defining characteristics? >> Yes, we're seeing it could continue him emerging. We have what we've called standalone off course. That one is end of the spectrum on DH. There we have multi cloud, and then we have loosely and tightly coupled, and then we have true and as you go up the spectrum. So the dependence upon data depends on the data plane dependence upon low latent see dependance on writing does a systems of record records. All of those increase as we going from from lonely for High Leighton Sea and High Band with all way up to low late. >> So let me see if I got this right. It's true. I've a cloud is at one end and true. Either cloud is low late and see right on into workloads simplest possible administration. That means we're typically goingto have a common stack in all locations. Next to that is this notion of tightly coupled hybrid cloud, which could be higher late. And see, right oriented could probably has a common set of software on all no common mental state. And then, kind of this. This notion of loosely coupled right multi or hybrid cloud, which is low, high late and see, write or read oriented, which may have just a P I level coordination and commonality and all >> that's right. And then you go down even further to just multi cloud, where you're just connecting things, and each of them is independent off each other. >> So if I'm a CEO and I'm looking at a move to a cloud, I have to think about Greenfield applications and the natural distribution of data for those Greenfield applications. And that's going to help me choose which class of hybrid clawed him and he used. But let's talk about the more challenging from a set of scenarios for most CEOs, which is the existing legacy applications as I cry that Rangel yeah, systems of record. As I try to bring those those cloud like experience to those applications, how am I going through that thought process? >> So we have some choices. The choices are I could move it up to lift and shift up to on a one of the clouds by the large clouds, many of them around. And what if I if I do that what I'm need to be looking at is, what is the cost of moving that data? And what is the cost of pushing that up into the cloud and lost the conversion cast if I need to move to another database, >> and I think that's the biggest one. So it just costs of moving the data, which is just uninterested. It's a cost of format changes at our migration and all the other out conversion changes. >> So what I did in my research was focus on systems of record, the the highly expensive, very, very important systems of record, which obviously are fed by a lot of other things their systems, the engagement analytics, etcetera. But those systems of record have to work. They you need to know if you've taken on order, you need to have consistency about that order. You need to know always that you can recover any data you need in your financials, etcetera. All of that is mission critical systems of record. Andi, that's the piece that I focused on here, and I focused on >> sort of. These are loaded and she >> low, very low, latent, right oriented, very right orientated types of applications. And I focused on the oracle because the majority ofthe systems of record run on Oracle databases on the large scale ones, at least so that's what we're we're focusing on here. So I looking at the different options for a C I O off. How they would go on DH. There are three main options open at the moment. There's there's Arkalyk Cloud Cloud, a customer, which gives thie the cloud experience. There is Microsoft as your stack, which has a a Oracle database version of it on DH outposts. But we eliminated outposts not because it's not going to be any good, but because it's not there yet, is >> you get your Razor John thing. >> That's right. So we focused on Oracle on DH as you and we focused on what was the benefit of moving from a traditional environment where you've got best of breed essentially on site to this cloud environment. >> So if we think about it, the normal way of thinking about this kind of a research is that people talk about R. A Y and historically that's been done by looking by keeping the amount of work that's performed has given constant and then looking at how the different technology components compare from a call standpoint. But a move to cloud the promise of a move to cloud is not predicated on lowering costs per se, but may have other financial considerations, of course, but it's really predicated on the notion of the cod experience, which is intended to improve business results. So we think about our lives being a numerator question. Value is the amount of work you do versus the denominator question, which is what resources are consumed to perform that work. It's not just the denominator side we really need to think about. The numerator side is well, you create. So what? What kind of things are we focused >> on? What we think about that value created his consequence of possibilities and options of the cloud. >> Right? So both are important. So so Obviously, when you move to a cloud environment, you can simplify operations. In particular, you can simplify recovery. You, Khun simplify a whole number of things within the shop and those give you extra resources on. Then the question is, Do you just cash in on those resources and say OK, I've made some changes, Or do you use those resources to improve the ability of your systems to work and one important characteristic off it alight and systems of record in particular is that you get depreciation of that asset. Over time, it becomes less fitted to the environment it has started with, so you have to do maintenance on it. You have to do maintenance and work, and as you know most means most work done in my tea shop is on the maintenance side minutes. An enhancement. It's maintenance. An enhancement, yes. So making more resources available on making it easier to do that maintenance are making less, less things that are going to interfere with that faster time to to to maintenance faster time. Two new applications or improvements is really fundamental to systems of record, so that is the value that you can bring to it. And you also bring value with lower of better availability, higher availability as well. So those are the things that we put into the model to see how the different approaches. And we were looking at really a total one. One supplier being responsible for everything, which was the Oracle environment of Oracle clouded customer to a sort of hybrid invite more hybrid environment where you had the the the work environment where you had the equipment coming from different place vendor that the service, the oracle, the as your service coming from Microsoft and, of course, the database coming then from Arkham itself. And we found from tremendous improvement in the value that you could get because of this single source. We found that a better model. >> So the common source led to efficiencies that then allowed a business to generate new classes of value. Because, as you said, you know, seventy plus percent of a night organ orb business is spending. Biology is associate with maintaining which they're enhancing. What's there in a very limited amount is focused on new greenfield or new types of applications. So if you can reduce the amount of time energy that goes into that heritage set of applications those systems of record, the not opens up that frees up resources to do some of the things >> on DH Having inflexibility now with things like As your stack conned in the future E. W. S off. Putting that resource either on premise or in the cloud, means that you can make decisions about where you process things things about where the data is about, where the data needs to be, the best placement of the data for what you're trying to do >> and that that decision is predicated on things like late in sea, but also regulatory, environment and intellectual property, controlling >> the custom moving data up and down. So the three laws of off off the cloud so having that flexibility of moving, keeping it where you want to, is a tremendous value in again in terms ofthe the speed of deployment on the speed of improved. >> So we'll get to the issues surrounding the denominator side of this. I want to come back to that numerator sites that the denominator again is the resources consumed to deliver the work to the business. But when we talk about that denominator side, know you perhaps opening up additional monies to do new types of development new times of work. But take us through some of the issues like you know what is a cloud experience associated with single vendor Faster development. Give us some of the issues that are really driving the value proposition. Look above the line. >> I mean, the whole issue about cloud is that you go on, take away all of the requirements to deal with the hardware deal with the orchestration off the storage deal with all of these things. So instead of taking weeks, months to put in extra resources, you say I want them on is there. >> So you're taking out administrate your taking administrative tasks out of the flow out of the flow, and as a consequence, things happen. Faster is the time of values. One of the first one. Give us another one. >> So obviously the ability to no I have it's a cloud environment. So if you're a vendor of that cloud, what you want to be able to do is to make incremental changes quickly, as opposed to awaiting for a new release and work on a release basis. So that fundamental speed to change speed to improve, bring in new features. Bringing new services a cloud first type model that is a very powerful way for the vendor to push out new things. And for the consumer, too, has absorbed them. >> Right? So the first one is time to value, but also it's lower cost to innovation. >> Yes, faster innovation ability to innovate. And then the third. The third most important part is if you if you re invest those resources that you've saved into new services new capabilities of doing that. To me, the most important thing long term for systems of record is to be able to make them go faster and use that extra Leighton see time there to bring in systems off systems of analytics A. I systems other systems on provide automation of individual business processes, increased automation that is gonna happen over time. That's that's a slow adding to it. But it means you can use those cloud mechanisms, those additional resources, wherever they are. You can use those to provide a clear path to improving the current systems of record. And that is a much faster and more cost effective way than going in for a conversion or moving the data upto the cloud or shifting lift and shift. For these types of acts, >> what kind of they're all kind of related? So I get, I get. I get superior innovation speeds because I'm taking new technology and faster. I get faster time to value because I'm not having to perform much of tasks, and I could get future could imbue additional types of work in support of automation without dramatically expanding the transactional wait and see on arrival rate of turns actions within the system of record. Okay, So how did Oracle and Azure with Oracle stack up in your analysis? >> So first of all, important is both a viable solutions. They both would work okay, but the impact in terms of the total business value, including obviously any savings on people and things like that, was two hundred nineteen eighty three hundred million dollars additional. This was for Robert to come in for a a Fortune two thousand customer, so it was around two billion dollars. So a lot of money over five years, a lot of money. Either way, you would save two hundred million if you were with with the zero but three hundred with the oracle, so that that to me, is far, far higher than the costs of I T. For that particular company, it's It is a strategic decision to be able to get more value out quicker. And for this class of workload on Oracle than Arkalyk, Cloud was the best decision to be absolutely fair If you were on Microsoft's database. And you wanted to go to Microsoft as you. That would be the better bet you would. You would get back a lot of those benefits, >> so stay with him. The stack, if you can't. Correct. All right, So So two billion dollars a year. Five years, ten billion dollars in revenue, roughly between two hundred million and saving for one Congress all around three. Treasure Quest. Oracle three hundred millions were one percent swing. Talk to us about speed value. What >> happens in the numerator side of that equation >> S Oh, so it is lower in caste, but you have a higher. The cast of the actual cloud is a little a little higher. So overall, the pure hardware equipment Cass is is awash is not going to change much. It might be a little bit more expensive. You make the savings a cz? Well, because of the people you less less operators, simpler environment. Those are the savings you're going to make. And then you're going to push those back into into the organization a cz increased value that could be given to the line of business. >> So the closure of the researchers If your CEO, you look at your legacy application going to be difficult to move, and you go with stack. That's best for those legacy applications. And since the vast majority of systems of record or running all scale large scale, then that means work. A cloud of customers is a superior fit for most from a lot of chances. So if you're not there, though, when you look at other options, all right, David Floy er thank you. Thanks very much for being on the Cube today, and you've been watching other wicked bon action >> item from the Cube Studios and Power Rialto, California on Peter Burke's Thanks very much for watching.

>> Announcer: Live from San Francisco it's The Cube covering Oracle OpenWorld 2016 brought to you by Oracle. Now here's your host, John Furrier and Peter Burris. >> Hey welcome back everyone. We are live in San Francisco at Oracle OpenWorld 2016. This is SiliconANGLE, the key of our flagship program. We go out to the events, extract a signal from the noise. I'm John Furrier, Co-CEO of SiliconANGLE with Peter Burris, head of Research at SiliconANGLE as well as the General Manager of Wikibon Research, our next guest is Siddhartha Agarwal, Vice-President of Product Management and Strategy of Oracle Cloud Platform. Welcome back to the Cube, good to see you. >> Yes, hi John. Great to be here. >> So I've seen a lot of great stuff. The core messaging from the corporate headquarters Cloud Cloud Cloud, but there's so much stuff going on in Oracle on all the applications. We've had many great conversations around the different, kind of, how the price are all fitting into the cloud model. But Peter and I were talking yesterday in our wrap-up about, we're the developers. >> Siddhartha: Yeah. >> Now and someone made a joke, oh they're at JavaOne, which is great. A lot of them are at JavaOne, but there's a huge developer opportunity within the Oracle core ecosystem because Cloud is very developer friendly. Devops, agile, cloud-native environments really cater to, really, software developers. >> Yeah, absolutely and that's a big focus area for us because we want to get developers excited about the ability to build the next generation of applications on the Oracle Cloud. Cloud-native applications, microservices-based applications and having that environment be open with choice of programming languages, open in terms of choice of which databases they want, not just Oracle database. NoSQL, MySQL, other databases and then choice of the computeship that you're using. Containers, bare metal, virtual environments and an open standard. So it's giving a very open, modern easy platform for developers so that they'll build on our platform. >> You know, one of the things that we always talk about at events is when we talk to companies really trying to win the hearts and minds of developers. You always hear, we're going to win the developers. They're like an object, like you don't really win developers. Developers are very fickle but very loyal if you can align with what they're trying to do. >> Siddartha: Yeah. >> And they'll reject hardcore tactics of selling and lock-in so that's a concern. It's a psychology of the developers. They want cool but they want relevance and they want to align with their goals. How do you see that 'cause I think Oracle is a great ecosystem for a developer. How do you manage that psychology 'cause Oracle has traditionally been an enterprise software company, so software's great but... Amazon has a good lead on the developers right now. You know, look at the end of the day you have to get developers realizing that they can build excellent, fun creative applications to create differentiation for their organizations, right, and do it fast with cool technologies. So we're giving them, for example, not just the ability to build with Java EE but now they can build in Java SE with Tomcat, they can build with Node, they can build with PHP and soon they'll be able to do it with Ruby and Daikon. And we're giving that in a container-based platform where they don't necessarily have to manage the container. They get automatic scalability, they get back up batching, all of that stuff taken care of for them. Also, you know, being able to build rich, mobile applications, that's really important for them. So how they can build mobile applications using Ionic, Angular, whatever JavaScript framework they want, but on the back end they have to be able to connect these mobile apps to the enterprise. They have to get location-based inside and to where the person is who's using the mobile app. They need to be able to get inside and tell how the mobile app's been used, and you've heard Larry talk about the Chatbot platform, right? How do you engage with customers in a different way through Facebook Messenger? So those are some of the new technologies that we're making very easily available and then at the end of the day we're giving them choice of databases so it's not just Oracle database that you get up and running in the Cloud and it's provision managed, automated for you. But now you can ask for NoSQL databases. You can have Cassandra, MongoDB run on our IaaS and MySQL. We just announced MySQL enterprise edition available as a service in the Public Cloud. >> Yeah one of the things that developers love, you know, being an ex-developer myself in the old days, is, and we've talked to them... They're very loyal but they're very pragmatic and they're engineers, basically they're software engineers. They love tools, great tools that work, they want support, but they want distribution of their product that they create, they're creators, so distribution ultimately means modernization but developers don't harp too much on money-making although they'd want to make money. They don't want to be abandoned on those three areas. They don't want to be disloyal. They want to be loyal, they want support and they want to have distribution. What does Oracle bring to the table to address those three things? >> Yeah, they're a few ways in which we're thinking of helping developers with distributions. For example, one is, developers are building applications that they exposing their APIs and they want to be able to monetize those APIs because they are exposing business process and a logic from their organization as APIs so we're giving them the ability to have portals where they can expose their APIs and monetize the APIs. The other thing is we've also got the Oracle Cloud Marketplace where developers can put their stuff on Oracle Cloud Marketplace so others can be leveraging that content and they're getting paid for that. >> How does that work? Do they plug it into the pass layer? How does the marketplace fit in if I'm a developer? >> Sure, the marketplace is a catalog, right, and you can put your stuff on the catalog. Then when you want to drag and drop something, you drop it onto Oracle PaaS or onto Oracle IaaS. So you're taking the application that you've built and then you got it to have something that-- >> John: So composing a solution on the fly of your customer? >> Well, yeah exactly, just pulling a pre-composed solution that a developer had built and being able to drop it onto the Oracle PaaS and IaaS platform. >> So the developer gets a customer and they get paid for that through the catalog? >> Yes, yes, yes and it's also better for customers, right? They're getting all sorts of capability pre-built for them, available for them, ready for them. >> So one of the things that's come up, and we've heard it, it was really amplified too much but we saw it and it got some play. In developer communities, the messaging on the containers and microservers as you mentioned earlier. Huge deal right now. They love that ability to have the containerization. We even heard containers driving down into the IaaS area, so with the network virtualization stuff going on, so how is that going to help developers? What confidence will you share to developers that you guys are backing the container standards-- >> Siddhartha: Absolutely. >> Driving that, participating in that. >> Well I think there are a couple of things. First of all, containers are not that easy in terms of when you have to orchestrate under the containers, you have to register these containers. Today the technology is for containers to be managed, the orchestration technology which is things like Swarm, Kubernetes, MISO, et cetera. They're changing very rapidly and then in order to use these technologies, you have to have a scheduler and things like that. So there's a stack of three or four, relatively recent technologies, changing at a relatively fast pace and that creates a very unstable stack for someone who create production level stuff for them, right? The docker container that they built actually run from this slightly shaky stack. >> Like Kubernetes or what not. >> Yeah yeah and so what we've done is we're saying, look, we're giving you container as a service so if you've already created docker containers, you can now bring those containers as is to the Oracle Public Cloud. You can take this application, these 20 containers and then from that point on we've taken care of putting the containers out, scaling the containers up, registering the containers, managing the containers for you, so you're just being able to use that environment as a developer. And if you want to use the PaaS, that's that IaaS. If you want to use the PaaS, then the PhP node, JavaSE capability that I told you was also containerized. You're just not exposed to docker there. Actually, I know he's got a question, but I want to just point out Juan Loaiza, who was on Monday, he pointed out the JSON aspect of the database was I thought was pretty compelling. From a developer's standpoing, JSON's very really popular with managing APIs. So having that in the database is really kind of a good thing so people should check out that interview. >> Very quickly, one of the historical norm for developers is you start with a data model and then you take various types of tools and you build code that operates against that development for that basic data model. And Oracle obviously has, that's a big part of what your business has historically been. As you move forward, as we start looking at big data and the enormous investment that businesses are making in trying to understand how to utilize that technology, it's not going as well as a lot folks might've thought it would in part because the developer community hasn't fully engaged how to generate value out of those basic stacks of technology. How is Oracle, who has obviously a leadership position in database and is now re-committing itself to some of these new big data technologies, how're you going to differentially, or do you anticipate differentially presenting that to developers so they can do more with big data-like technologies? >> They're a few things that we've done, wonderful question. First of all, just creating the Hadoop cluster, managing the Hadoop cluster, scaling out the Hadoop cluster requires a lot of effort. So we're giving you big data as a service where you don't have to worry about that underlying infrastructure. The next problem is how do you get data into the data lake, and the data has been generated at tremendous volume. You think about internet of things, you think about devices, et cetera. They're generating data at tremendous volume. We're giving you the ability to actually be able to use a streaming, Kafka, Sparc-based serviced to be able to bring data in or to use Oracle data intergration to be able to stream data in from, let's say, something happening on the Oracle database into your big data hub. So it's giving you very easy ways to get your data into the data hub and being able to do that with HDFS, with Hive, whichever target system you want to use. Then on top of that data, the next challenge is what do you visualize, right? I mean, you've got all this data together but a very small percentage is actually giving you insight. So how do you look at this and find that needle in the haystack? So for that we've given you the ability to do analytics with the BI Cloud service to get inside into the data where we're actually doing machine learning. And we're getting inside from the data and presenting those data sets to the most relevant to the most insightful by giving you some smart insights upfront and by giving you visualizations. So for example, you search for, in all these forms, what are the users says as they entered in the data. The best way to present that is by a tag cloud. So giving you visualization that makes sense, so you can do rich discovery and get rich insight from BI Cloud service and the data visualization cloud service. Lastly, if you have, let's say, five years of data on an air conditioner and the product manager's trying to get inside into that data saying, hey what should I fix so that that doesn't happen next time around. We're giving you the big data discovery cloud service where you don't have to set up that data lab, you don't have to set up the models, et cetera. You could just say replicate two billing rows, we'll replicate it in the cloud for you within our data store and you can start getting insight from it. >> So how are developers going to start using these tools 'cause it's clear that data scientists can use it, it's clear that people that have more of analytic's background can use it. How're developers going to start grabbing a lot of these capabilities, especially with machine learning and AI and some of the other things on the horizon? And how do you guys anticipate you're going to present this stuff to a developer community so that they can, again, start creating more value for the business? Is that something that's on the horizon? >> You know it's here, it's not on the horizon, it's here. We're helping developers, for example, build a microservice that wants to get data from a treadmill that one of the customers is running on, right? We're trying to get data from one of the customers on the treadmills. Well the developer now creates a microservice where the data from the treadmill has been ingested into a data lake. We've made it very easy for them to ingest into the data lake and then that microservice will be able to very easily access the data, expose only the portion of the data that's interesting. For example, the developer wants to create a very rich mobile app that presents the customer running with all the insight into the average daily calorie burn and what they're doing, et cetera. Now they can take that data, do analytics on it and very easily be able to present it in the mobile platform without having to work through all the plumbing of the data lake, of the ingestion, of the visualization, of the mobile piece, of the integration of the backend system. All of that is being provided so developers can really plug and play and have fun. >> Yeah, they want that fun. Building is the fun part, they want to have fun-- >> They want relevance, great tools and not have to worry about the infrastructure. >> John: They want distribution. They want their work to be showcased. >> Peter: That's what I mean about relevance, that's really about relevance. >> They want to work on the cool stuff and again-- >> And be relevant. >> Developers are starting to have what I call the nightclub effect. Coding is so much fun now, there's new stuff that comes out. They want to hack with the new codes. They want to play with some that fit the form factor with either a device or whatnot. >> Yeah and one other thing that we've done is, we've made the... All developers today are doing containers delivery because they need to release code really fast, right. It's no longer about months, it's about days or hours that they have to release. So we're giving a complete continuous delivery framework where people can leverage Git for their code depository, they can use Maven for continuous integration, they can use Puppet and Chef for stripping. The can manage the backlog of their task. They can do code reviews, et cetera, all done in the cloud for them. >> So lifestyles, hospitality. Taking care of developers, that's what you got to do. >> Exactly, that's a great analogy. You know all these things, they have to have these tools that they put together and what we're doing is we're saying, you don't have to worry about putting together those tools, just use them. But if you have some, you can plug in. >> Well we think, Wikibon and SiliconeANGLE, believe that there's going to be a tsunami of enterprise developers with the consumerization of IT, now meaning the Cloud, that you're going to see enterprise development, just a boom in development. You're going to see a lot more activity. Now I know it's different in development by it's not just pure Cloud need, it's some Legacy, but it's going to be a boom so we think you guys are very set up for that. Certainly with the products, so my final question for you Siddhartha is, what's your plans? I mean, sounds great. What're you going to do about it? Is there a venture happening? How're you guys going to develop this opportunity? What're you guys going to do? >> So the product sets are already there but we're evolving those products sets to a significant pace. So first of all, you can go to cloud.oracle.com/tryit and try these cloud services and build the applications on it, that's there. We've got a portal called developer.oracle.com where you can get resources on, for example, I'm a JavaScript developer. What's everything that Oracle's doing to help JavaScript developers? I'm a MySQL developer. what's everyone doing to help with that? So they've got that. Then starting at the beginning of next year, we're going to roll out a set of workshops that happen in many cities around the world where we go work with developers, hands on, and getting them inside an experience of how to build these rich, cloud-native, microservices-based applications. So those are some of the things and then our advocacy program. We already have the ACE Program, the ACE Directive Program. Working with that program to really make it a very vibrant, energetic ecosystem that is helping, building a sort of sample codes and building expert knowledge around how the Oracle environment can be used to build really cool microservices-based, cloud-native-- >> So you're investing, you're investing. >> Siddhartha: Oh absolutely. >> Any big events, you're just more little events, any big events, any developer events you guys going to do? >> So we'll be doing these workshops and we'll be sponsoring a bunch non-Oracle developer events and then we'll be launching a big developer event of our own. >> Great, so final question. What's in it for the developer? If I'm a developer, what's in it for me? Hey I love Oracle, thanks for spending the money and investing in this. What's in it for me? Why, why should I give you a look? >> Because you can do it faster with higher quality. So that microservices application that I was talking about, if you went to any other cloud and tried to build that microservices-based application that got data from the treadmill into a data lake using IoT and the analytics integration with backend applications, it would've taken you a lot longer. You can get going in the language of your choice using the database of your choice, using standards of your choice and have no lock-in. You can take your data out, you can take your code out whenever you want. So do it faster with openness. >> Siddhartha, thanks for sharing that developer update. We were talking about it yesterday. Our prayers were answered. (laughing) You came on The Cube. We were like, where is the developer action? I mean we see that JavaOne, we love Java, certainly JavaScript is awesome and a lot of good stuff going on. Thanks for sharing and congratulations on the investments and to continuing bringing developer goodness out there. >> Thank you, John. >> This The Cube, we're sharing that data with you and we're going to bring more signal from the noise here after this short break. You're watching The Cube. (electronic beat)